v2.4.1.9
Document And Entity Information
12 Months Ended
Dec. 31, 2014
Document Information [Line Items]  
Entity Registrant Name MAGIC SOFTWARE ENTERPRISES LTD
Entity Central Index Key 0000876779
Current Fiscal Year End Date --12-31
Entity Filer Category Accelerated Filer
Trading Symbol MGIC
Entity Common Stock, Shares Outstanding 44,174,217dei_EntityCommonStockSharesOutstanding
Document Type 20-F
Amendment Flag false
Document Period End Date Dec. 31, 2014
Document Fiscal Period Focus FY
Document Fiscal Year Focus 2014
Entity Well-known Seasoned Issuer No
Entity Voluntary Filers No
Entity Current Reporting Status Yes
v2.4.1.9
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
ASSETS    
Cash and cash equivalents $ 72,515us-gaap_CashAndCashEquivalentsAtCarryingValue $ 35,134us-gaap_CashAndCashEquivalentsAtCarryingValue
Available-for-sale marketable securities (Note 4) 11,915us-gaap_AvailableForSaleSecuritiesCurrent 854us-gaap_AvailableForSaleSecuritiesCurrent
Trade receivables (net of allowance for doubtful accounts of $ 3,313 and $ 2,380 at December 31, 2013 and 2014, respectively) 40,358us-gaap_AccountsReceivableNetCurrent 31,976us-gaap_AccountsReceivableNetCurrent
Other accounts receivable and prepaid expenses (Note 6) 3,973us-gaap_PrepaidExpenseAndOtherAssetsCurrent 5,209us-gaap_PrepaidExpenseAndOtherAssetsCurrent
Total current assets 128,761us-gaap_AssetsCurrent 73,173us-gaap_AssetsCurrent
LONG-TERM RECEIVABLES:    
Severance pay fund 1,426mgic_SeverancePayFund 403mgic_SeverancePayFund
Long term deferred tax asset (Note 12) 1,583us-gaap_DeferredTaxAssetsLiabilitiesNetNoncurrent 1,674us-gaap_DeferredTaxAssetsLiabilitiesNetNoncurrent
Other long-term receivables 2,376us-gaap_OtherReceivables 2,118us-gaap_OtherReceivables
Total long-term receivables 5,385us-gaap_LongTermAccountsNotesAndLoansReceivableNetNoncurrent 4,195us-gaap_LongTermAccountsNotesAndLoansReceivableNetNoncurrent
PROPERTY AND EQUIPMENT, NET (Note 7) 2,005us-gaap_PropertyPlantAndEquipmentNet 1,773us-gaap_PropertyPlantAndEquipmentNet
INTANGIBLE ASSETS, NET (Note 8) 32,543us-gaap_IntangibleAssetsNetExcludingGoodwill 32,549us-gaap_IntangibleAssetsNetExcludingGoodwill
GOODWILL (Note 9) 55,490us-gaap_Goodwill 55,313us-gaap_Goodwill
Total assets 224,184us-gaap_Assets 167,003us-gaap_Assets
LIABILITIES AND EQUITY    
Short term debt (Note 11) 2,853us-gaap_ShortTermBorrowings 1,055us-gaap_ShortTermBorrowings
Trade payables 3,861us-gaap_AccountsPayableTradeCurrent 4,149us-gaap_AccountsPayableTradeCurrent
Accrued expenses and other accounts payable (Note 10) 15,013us-gaap_AccountsPayableAndAccruedLiabilitiesCurrent 16,937us-gaap_AccountsPayableAndAccruedLiabilitiesCurrent
Deferred tax liability (Note 12) 760us-gaap_DeferredTaxLiabilitiesCurrent 2,567us-gaap_DeferredTaxLiabilitiesCurrent
Deferred revenues 3,431us-gaap_DeferredRevenueCurrent 3,294us-gaap_DeferredRevenueCurrent
Total current liabilities 25,918us-gaap_LiabilitiesCurrent 28,002us-gaap_LiabilitiesCurrent
ACCRUED SEVERANCE PAY 2,562us-gaap_SupplementalUnemploymentBenefitsSeveranceBenefits 1,275us-gaap_SupplementalUnemploymentBenefitsSeveranceBenefits
LONG TERM LIABILITIES:    
Long term debt (Note 11) 490us-gaap_LongTermDebt 2,274us-gaap_LongTermDebt
Liabilities due to acquisition activities and other (Note 3) 474us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedContingentLiability 1,396us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedContingentLiability
Long term deferred tax liability (Note 12) 4,086us-gaap_DeferredTaxLiabilitiesNoncurrent 2,204us-gaap_DeferredTaxLiabilitiesNoncurrent
Total noncurrent liabilities 5,050us-gaap_LiabilitiesNoncurrent 5,874us-gaap_LiabilitiesNoncurrent
COMMITMENTS AND CONTINGENCIES (Note 15)      
REDEEMABLE NON-CONTROLLING INTEREST 2,930us-gaap_RedeemableNoncontrollingInterestEquityCarryingAmount 2,721us-gaap_RedeemableNoncontrollingInterestEquityCarryingAmount
EQUITY (Note 13):    
Ordinary shares of NIS 0.1 par value - Authorized: 50,000,000 shares at December 31, 2013 and 2014; Issued and Outstanding: 37,155,355 and 44,174,217 shares at December 31, 2013 and 2014, respectively 1,029us-gaap_CommonStockValue 826us-gaap_CommonStockValue
Additional paid-in capital 182,114us-gaap_AdditionalPaidInCapitalCommonStock 127,060us-gaap_AdditionalPaidInCapitalCommonStock
Accumulated other comprehensive loss (5,347)us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax (172)us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax
Accumulated (deficit) earnings 7,269us-gaap_RetainedEarningsAccumulatedDeficit 430us-gaap_RetainedEarningsAccumulatedDeficit
Total Magic Software Enterprises equity 185,065us-gaap_StockholdersEquity 128,144us-gaap_StockholdersEquity
Non-controlling interests 2,659us-gaap_MinorityInterest 987us-gaap_MinorityInterest
Total equity 187,724us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest 129,131us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
Total liabilities, redeemable non-controlling interest and equity $ 224,184us-gaap_LiabilitiesAndStockholdersEquity $ 167,003us-gaap_LiabilitiesAndStockholdersEquity
v2.4.1.9
CONSOLIDATED BALANCE SHEETS [Parenthetical]
In Thousands, except Share data, unless otherwise specified
Dec. 31, 2014
USD ($)
Dec. 31, 2014
ILS
Dec. 31, 2013
USD ($)
Dec. 31, 2013
ILS
Allowance for doubtful accounts trade receivables, net (in dollars) $ 2,380us-gaap_AllowanceForDoubtfulAccountsReceivableCurrent   $ 3,313us-gaap_AllowanceForDoubtfulAccountsReceivableCurrent  
Ordinary stock, par value (in dollars per share)   0.1us-gaap_CommonStockParOrStatedValuePerShare   0.1us-gaap_CommonStockParOrStatedValuePerShare
Ordinary stock, shares authorized 50,000,000us-gaap_CommonStockSharesAuthorized 50,000,000us-gaap_CommonStockSharesAuthorized 50,000,000us-gaap_CommonStockSharesAuthorized 50,000,000us-gaap_CommonStockSharesAuthorized
Ordinary stock, shares issued 44,174,217us-gaap_CommonStockSharesIssued 44,174,217us-gaap_CommonStockSharesIssued 37,155,355us-gaap_CommonStockSharesIssued 37,155,355us-gaap_CommonStockSharesIssued
Ordinary stock, shares outstanding 44,174,217us-gaap_CommonStockSharesOutstanding 44,174,217us-gaap_CommonStockSharesOutstanding 37,155,355us-gaap_CommonStockSharesOutstanding 37,155,355us-gaap_CommonStockSharesOutstanding
v2.4.1.9
CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Revenues (Note 17):      
Software $ 25,351us-gaap_SalesRevenueGoodsNet $ 23,254us-gaap_SalesRevenueGoodsNet $ 23,684us-gaap_SalesRevenueGoodsNet
Maintenance and technical support 22,780us-gaap_MaintenanceRevenue 22,685us-gaap_MaintenanceRevenue 22,384us-gaap_MaintenanceRevenue
Consulting services 116,173us-gaap_TechnologyServicesRevenue 99,019us-gaap_TechnologyServicesRevenue 80,312us-gaap_TechnologyServicesRevenue
Total revenues 164,304us-gaap_SalesRevenueNet 144,958us-gaap_SalesRevenueNet 126,380us-gaap_SalesRevenueNet
Cost of revenues:      
Software 7,646us-gaap_CostOfGoodsSold 6,648us-gaap_CostOfGoodsSold 7,439us-gaap_CostOfGoodsSold
Maintenance and technical support 2,921us-gaap_CostOfServicesMaintenanceCosts 2,949us-gaap_CostOfServicesMaintenanceCosts 3,238us-gaap_CostOfServicesMaintenanceCosts
Consulting services 89,160us-gaap_TechnologyServicesCosts 76,296us-gaap_TechnologyServicesCosts 62,716us-gaap_TechnologyServicesCosts
Total cost of revenues 99,727us-gaap_CostOfGoodsAndServicesSold 85,893us-gaap_CostOfGoodsAndServicesSold 73,393us-gaap_CostOfGoodsAndServicesSold
Gross profit 64,577us-gaap_GrossProfit 59,065us-gaap_GrossProfit 52,987us-gaap_GrossProfit
Operating costs and expenses:      
Research and development, net (Note 14a) 4,750us-gaap_ResearchAndDevelopmentExpense 3,706us-gaap_ResearchAndDevelopmentExpense 2,947us-gaap_ResearchAndDevelopmentExpense
Selling and marketing 24,580us-gaap_SellingAndMarketingExpense 23,066us-gaap_SellingAndMarketingExpense 22,990us-gaap_SellingAndMarketingExpense
General and administrative 14,521us-gaap_GeneralAndAdministrativeExpense 13,166us-gaap_GeneralAndAdministrativeExpense 10,642us-gaap_GeneralAndAdministrativeExpense
Total operating costs and expenses 43,851us-gaap_OperatingExpenses 39,938us-gaap_OperatingExpenses 36,579us-gaap_OperatingExpenses
Operating income 20,726us-gaap_OperatingIncomeLoss 19,127us-gaap_OperatingIncomeLoss 16,408us-gaap_OperatingIncomeLoss
Financial income (expense), net (Note 14b) (1,786)us-gaap_NonoperatingGainsLosses (684)us-gaap_NonoperatingGainsLosses 10us-gaap_NonoperatingGainsLosses
Other income (expense), net (67)us-gaap_OtherNonoperatingIncomeExpense (12)us-gaap_OtherNonoperatingIncomeExpense 136us-gaap_OtherNonoperatingIncomeExpense
Income before taxes on income 18,873us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments 18,431us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments 16,554us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
Taxes on income (Note 12) 2,307us-gaap_IncomeTaxExpenseBenefit 1,575us-gaap_IncomeTaxExpenseBenefit 94us-gaap_IncomeTaxExpenseBenefit
Net income 16,566us-gaap_IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest 16,856us-gaap_IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest 16,460us-gaap_IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest
Net income attributable to redeemable non-controlling interests 425us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest 546us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest 184us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest
Net income attributable to non-controlling interests 621us-gaap_NetIncomeLossAttributableToNoncontrollingInterest 430us-gaap_NetIncomeLossAttributableToNoncontrollingInterest 93us-gaap_NetIncomeLossAttributableToNoncontrollingInterest
Net income attributable to Magic Software Enterprises Shareholders $ 15,520us-gaap_NetIncomeLoss $ 15,880us-gaap_NetIncomeLoss $ 16,183us-gaap_NetIncomeLoss
Net earnings per share attributable to Magic Software Enterprises' shareholders (Note 16):      
Basic and diluted earnings per share (in dollars per share) $ 0.36us-gaap_EarningsPerShareBasicAndDiluted $ 0.43us-gaap_EarningsPerShareBasicAndDiluted $ 0.44us-gaap_EarningsPerShareBasicAndDiluted
v2.4.1.9
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Net income $ 16,566us-gaap_ProfitLoss $ 16,856us-gaap_ProfitLoss $ 16,460us-gaap_ProfitLoss
Other comprehensive income (loss), net of tax      
Foreign currency translation adjustments, net (5,469)us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax 495us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax (621)us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
Unrealized gain from derivative instruments, net 0us-gaap_OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax 0us-gaap_OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax 29us-gaap_OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
Unrealized loss (gain) from available-for-sale securities (259)us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax (35)us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax 28us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
Total other comprehensive income (loss), net of tax (5,728)us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent 460us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent (564)us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
Total comprehensive income 10,838us-gaap_ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest 17,316us-gaap_ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest 15,896us-gaap_ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest
Comprehensive income attributable to redeemable non-controlling interests 51mgic_ComprehensiveIncomeNetOfTaxattributableToRedeemableNoncontrollingInterest 807mgic_ComprehensiveIncomeNetOfTaxattributableToRedeemableNoncontrollingInterest 157mgic_ComprehensiveIncomeNetOfTaxattributableToRedeemableNoncontrollingInterest
Comprehensive income attributable to non-controlling interests 442us-gaap_ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest 476us-gaap_ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest 96us-gaap_ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest
Comprehensive income attributable to Magic Software Enterprises' shareholders $ 10,345us-gaap_ComprehensiveIncomeNetOfTax $ 16,033us-gaap_ComprehensiveIncomeNetOfTax $ 15,643us-gaap_ComprehensiveIncomeNetOfTax
v2.4.1.9
STATEMENTS OF CHANGES IN EQUITY (USD $)
In Thousands, except Share data
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Retained Earnings [Member]
Noncontrolling Interest [Member]
Balance at Dec. 31, 2011 $ 105,625us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest $ 808us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
$ 124,616us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
$ (19)us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
$ (20,249)us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
$ 469us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Balance (in shares) at Dec. 31, 2011   36,490,020us-gaap_SharesOutstanding
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       
Exercise of stock options 309us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised 3us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
306us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
0us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
0us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
0us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Exercise of stock options (in shares)   136,708us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       
Stock-based compensation expenses 515us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet 0us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
515us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
0us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
0us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
0us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Dividend (3,661)us-gaap_DividendsCommonStock 0us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
0us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
0us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
(3,661)us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
0us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Acquisition of non-controlling interests in Xsell (see Note 3) (314)us-gaap_MinorityInterestDecreaseFromRedemptions 0us-gaap_MinorityInterestDecreaseFromRedemptions
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
(149)us-gaap_MinorityInterestDecreaseFromRedemptions
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
0us-gaap_MinorityInterestDecreaseFromRedemptions
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
0us-gaap_MinorityInterestDecreaseFromRedemptions
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
(165)us-gaap_MinorityInterestDecreaseFromRedemptions
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Other comprehensive income (564)us-gaap_OtherComprehensiveIncomeLossNetOfTax 0us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
0us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
(567)us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
0us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
3us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Net income 16,451mgic_ProfitLossExcludingRedeemableNoncontrollingInterest 0mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
0mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
0mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
16,183mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
268mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Balance at Dec. 31, 2012 118,361us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest 811us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
125,288us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
(586)us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
(7,727)us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
575us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Balance (in shares) at Dec. 31, 2012   36,626,728us-gaap_SharesOutstanding
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       
Exercise of stock options 1,462us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised 15us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
1,447us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
0us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
0us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
0us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Exercise of stock options (in shares)   528,627us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       
Stock-based compensation expenses 325us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet 0us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
325us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
0us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
0us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
0us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Dividend (7,787)us-gaap_DividendsCommonStock 0us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
0us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
0us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
(7,723)us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
(64)us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Other comprehensive income 460us-gaap_OtherComprehensiveIncomeLossNetOfTax 0us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
0us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
414us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
0us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
46us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Net income 16,310mgic_ProfitLossExcludingRedeemableNoncontrollingInterest 0mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
0mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
0mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
15,880mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
430mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Balance at Dec. 31, 2013 129,131us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest 826us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
127,060us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
(172)us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
430us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
987us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Balance (in shares) at Dec. 31, 2013   37,155,355us-gaap_SharesOutstanding
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       
Issuance of shares 54,726us-gaap_StockIssuedDuringPeriodValueOther 201us-gaap_StockIssuedDuringPeriodValueOther
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
54,525us-gaap_StockIssuedDuringPeriodValueOther
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
0us-gaap_StockIssuedDuringPeriodValueOther
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
0us-gaap_StockIssuedDuringPeriodValueOther
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
0us-gaap_StockIssuedDuringPeriodValueOther
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Issuance of shares (in shares)   6,903,141us-gaap_StockIssuedDuringPeriodSharesOther
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       
Exercise of stock options 204us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised 2us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
202us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
0us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
0us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
0us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Exercise of stock options (in shares)   115,721us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       
Stock-based compensation expenses 1,557us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet 0us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
327us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
0us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
0us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
1,230us-gaap_AdjustmentToAdditionalPaidInCapitalIncomeTaxEffectFromShareBasedCompensationNet
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Dividend (8,681)us-gaap_DividendsCommonStock 0us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
0us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
0us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
(8,681)us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
0us-gaap_DividendsCommonStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Other comprehensive income (5,354)us-gaap_OtherComprehensiveIncomeLossNetOfTax 0us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
0us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
(5,175)us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
0us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
(179)us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Net income 16,141mgic_ProfitLossExcludingRedeemableNoncontrollingInterest 0mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
0mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
0mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
15,520mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
621mgic_ProfitLossExcludingRedeemableNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Balance at Dec. 31, 2014 $ 187,724us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest $ 1,029us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
$ 182,114us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
$ (5,347)us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
$ 7,269us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
$ 2,659us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_NoncontrollingInterestMember
Balance (in shares) at Dec. 31, 2014   44,174,217us-gaap_SharesOutstanding
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
       
v2.4.1.9
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Cash flows from operating activities:      
Net income $ 16,566us-gaap_ProfitLoss $ 16,856us-gaap_ProfitLoss $ 16,460us-gaap_ProfitLoss
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 8,660us-gaap_DepreciationAndAmortization 8,380us-gaap_DepreciationAndAmortization 7,444us-gaap_DepreciationAndAmortization
Interest expenses related to liabilities in connection with acquisitions 0us-gaap_InterestAndDebtExpense 0us-gaap_InterestAndDebtExpense 48us-gaap_InterestAndDebtExpense
Accrued severance pay, net 0us-gaap_SeveranceCosts1 0us-gaap_SeveranceCosts1 8us-gaap_SeveranceCosts1
Loss on sale of property and equipment 0us-gaap_GainLossOnSaleOfPropertyPlantEquipment 10us-gaap_GainLossOnSaleOfPropertyPlantEquipment 0us-gaap_GainLossOnSaleOfPropertyPlantEquipment
Stock-based compensation expenses 1,557us-gaap_ShareBasedCompensation 325us-gaap_ShareBasedCompensation 515us-gaap_ShareBasedCompensation
Amortization of marketable securities premium, accretion of discount 62us-gaap_AccretionAmortizationOfDiscountsAndPremiumsInvestments 0us-gaap_AccretionAmortizationOfDiscountsAndPremiumsInvestments 0us-gaap_AccretionAmortizationOfDiscountsAndPremiumsInvestments
Gain on sale of subsidiary's operation 0us-gaap_GainOrLossOnSaleOfStockInSubsidiary 0us-gaap_GainOrLossOnSaleOfStockInSubsidiary (136)us-gaap_GainOrLossOnSaleOfStockInSubsidiary
Decrease (increase) in trade receivables, net (9,378)us-gaap_IncreaseDecreaseInAccountsReceivable 473us-gaap_IncreaseDecreaseInAccountsReceivable 11us-gaap_IncreaseDecreaseInAccountsReceivable
Decrease (increase) in other long term and short term accounts receivable and prepaid expenses (23)us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets (397)us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets 145us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
Increase in trade payables (342)us-gaap_IncreaseDecreaseInAccountsPayableTrade (700)us-gaap_IncreaseDecreaseInAccountsPayableTrade 780us-gaap_IncreaseDecreaseInAccountsPayableTrade
Increase (decrease) in accrued expenses and other accounts payable (303)us-gaap_IncreaseDecreaseInOtherAccountsPayableAndAccruedLiabilities (1,589)us-gaap_IncreaseDecreaseInOtherAccountsPayableAndAccruedLiabilities (2,279)us-gaap_IncreaseDecreaseInOtherAccountsPayableAndAccruedLiabilities
Increase (decrease) in deferred revenues 191us-gaap_IncreaseDecreaseInDeferredRevenue (1,765)us-gaap_IncreaseDecreaseInDeferredRevenue (1,131)us-gaap_IncreaseDecreaseInDeferredRevenue
Change in deferred income taxes, net 1,204us-gaap_IncreaseDecreaseInDeferredIncomeTaxes 687us-gaap_IncreaseDecreaseInDeferredIncomeTaxes 1,083us-gaap_IncreaseDecreaseInDeferredIncomeTaxes
Net cash provided by operating activities 18,194us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations 22,280us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations 22,948us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
Cash flows from investing activities:      
Capitalized software development costs (4,267)us-gaap_PaymentsToDevelopSoftware (4,713)us-gaap_PaymentsToDevelopSoftware (4,969)us-gaap_PaymentsToDevelopSoftware
Purchase of property and equipment (993)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment (497)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment (510)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment
Cash paid in conjunction with acquisitions, net of acquired cash (9,363)us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired (16,557)us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired (7,627)us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired
Proceeds from sale of subsidiary's operation 0us-gaap_ProceedsFromDivestitureOfBusinesses 0us-gaap_ProceedsFromDivestitureOfBusinesses 136us-gaap_ProceedsFromDivestitureOfBusinesses
Proceeds from sale of property and equipment 0us-gaap_ProceedsFromSaleOfPropertyPlantAndEquipment 60us-gaap_ProceedsFromSaleOfPropertyPlantAndEquipment 0us-gaap_ProceedsFromSaleOfPropertyPlantAndEquipment
Proceeds from maturity of marketable securities 596us-gaap_ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities 0us-gaap_ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities 343us-gaap_ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
Proceeds from short-term bank deposits 0us-gaap_ProceedsFromOtherDeposits 0us-gaap_ProceedsFromOtherDeposits 3,601us-gaap_ProceedsFromOtherDeposits
Change in loans to employees and other deposits ,net (58)us-gaap_PaymentsForOtherDeposits 0us-gaap_PaymentsForOtherDeposits (34)us-gaap_PaymentsForOtherDeposits
Investment in marketable securities (11,976)us-gaap_PaymentsToAcquireMarketableSecurities 0us-gaap_PaymentsToAcquireMarketableSecurities 0us-gaap_PaymentsToAcquireMarketableSecurities
Investment in short-term bank deposit 0us-gaap_PaymentsToAcquireShortTermInvestments 0us-gaap_PaymentsToAcquireShortTermInvestments (1,366)us-gaap_PaymentsToAcquireShortTermInvestments
Net cash used in investing activities (26,061)us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations (21,707)us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations (10,426)us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
Cash flows from financing activities:      
Proceeds from exercise of options by employees 204us-gaap_ProceedsFromStockOptionsExercised 1,462us-gaap_ProceedsFromStockOptionsExercised 309us-gaap_ProceedsFromStockOptionsExercised
Issuance of Ordinary shares, net 54,726us-gaap_ProceedsFromIssuanceOfCommonStock 0us-gaap_ProceedsFromIssuanceOfCommonStock 0us-gaap_ProceedsFromIssuanceOfCommonStock
Dividend paid (8,681)us-gaap_PaymentsOfDividends (7,787)us-gaap_PaymentsOfDividends (3,661)us-gaap_PaymentsOfDividends
Short-term credit, net 2,974us-gaap_ProceedsFromRepaymentsOfShortTermDebt (47)us-gaap_ProceedsFromRepaymentsOfShortTermDebt 14us-gaap_ProceedsFromRepaymentsOfShortTermDebt
Purchase of non-controlling interest 0us-gaap_PaymentsToMinorityShareholders (168)us-gaap_PaymentsToMinorityShareholders (87)us-gaap_PaymentsToMinorityShareholders
Long term loan received 0us-gaap_ProceedsFromIssuanceOfLongTermDebt 3,307us-gaap_ProceedsFromIssuanceOfLongTermDebt 0us-gaap_ProceedsFromIssuanceOfLongTermDebt
Repayment of long-term loans (2,905)us-gaap_RepaymentsOfLongTermDebt (95)us-gaap_RepaymentsOfLongTermDebt 0us-gaap_RepaymentsOfLongTermDebt
Net cash used in financing activities 46,318us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations (3,328)us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations (3,425)us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
Effect of exchange rate changes on cash and cash equivalents (1,070)us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents 145us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents (64)us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents
Increase (decrease) in cash and cash equivalents 37,381us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease (2,610)us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease 9,033us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease
Cash and cash equivalents at the beginning of the year 35,134us-gaap_CashAndCashEquivalentsAtCarryingValue 37,744us-gaap_CashAndCashEquivalentsAtCarryingValue 28,711us-gaap_CashAndCashEquivalentsAtCarryingValue
Cash and cash equivalents at end of the year 72,515us-gaap_CashAndCashEquivalentsAtCarryingValue 35,134us-gaap_CashAndCashEquivalentsAtCarryingValue 37,744us-gaap_CashAndCashEquivalentsAtCarryingValue
Supplementary information on investing and financing activities not involving cash flows:      
Deferred acquisition payment 250mgic_DeferredPayment 1,581mgic_DeferredPayment 3,103mgic_DeferredPayment
Contingent acquisition payment 0mgic_ContingentPayment 3,981mgic_ContingentPayment 1,192mgic_ContingentPayment
Supplemental disclosure of cash flow activities:      
Income taxes 1,601us-gaap_IncomeTaxesPaid 1,519us-gaap_IncomeTaxesPaid 1,250us-gaap_IncomeTaxesPaid
Interest $ 74us-gaap_InterestPaid $ 34us-gaap_InterestPaid $ 17us-gaap_InterestPaid
v2.4.1.9
GENERAL
12 Months Ended
Dec. 31, 2014
Organization, Consolidation and Presentation Of Financial Statements [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
NOTE 1:-
GENERAL
 
Magic Software Enterprises Ltd., an Israeli company, and its subsidiaries ("the Group") is a global provider of software platforms and professional services that accelerate the planning, development, deployment and integration of on-premise, mobile and cloud business applications ("the Magic technology"). Magic technology enables enterprises to accelerate the process of delivering business solutions that meet current and future needs and allow customers to dramatically improve their business performance and return on investment. To complement its software products and to increase its traction with customers, the Group also offers a complete portfolio of IT professional services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, and supplemental staffing services. The Company reports its results on the basis of two reportable business segments: software services (which include proprietary and non-proprietary software and related services) and IT professional services (see Note 17 for further details). The principal markets of the Group are Europe, United States, Japan and Israel (see Note 17).
 
For information about the Company's holdings in subsidiaries and affiliates, see Appendix A to the consolidated financial statements.
v2.4.1.9
SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Dec. 31, 2014
Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]
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"), applied on a consistent basis, as follows:
 
Use of estimates
 
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. 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. The most significant assumptions are employed in estimates used in determining values of goodwill and identifiable intangible assets and their subsequent impairment analysis, revenue recognition, tax assets and tax positions, legal contingencies, research and development capitalization, contingent consideration related to acquisitions and stock-based compensation costs. Actual results could differ from those estimates.
 
Financial statements in United States dollars
 
A substantial portion of the revenues and expenses of the Company and certain of its subsidiaries is generated in U.S. dollars ("dollar"). The Company's management believes that the dollar is the currency of the primary economic environment in which the Company and certain of  its subsidiaries operate. Thus, the functional and reporting currency of the Company and certain of its subsidiaries is the dollar.
 
Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into dollars in accordance with the Financial Accounting Standards Board ("FASB) Accounting Standards Codification ("ASC") 830, "Foreign Currency Matters". All transaction gains and losses of the remeasurement of monetary balance sheet items are reflected in the statements of income as financial income or expenses, as appropriate.
 
For those foreign subsidiaries whose functional currency is not the dollar, all balance sheet amounts have been translated using the exchange rates in effect at each balance sheet date. Statement of income amounts have been translated using the average exchange rate prevailing during each year. Such translation adjustments are reported as a component of other comprehensive income (loss) in equity.
 
Principles of consolidation
 
The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions, including profit from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation.
 
Changes in the parent's ownership interest in a subsidiary with no change of control are treated as equity transactions, with any difference between the amount of consideration paid and the change in the carrying amount of the non-controlling interest, recognized in equity.
 
Non-controlling interests of subsidiaries represent the non-controlling share of the total comprehensive income (loss) of the subsidiaries and fair value of the net assets upon the acquisition of the subsidiaries. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. Redeemable non-controlling interests are classified as mezzanine equity, separate from permanent equity, on the consolidated balance sheets and measured at each reporting period at the higher of their redemption amount or the Non controlling interest book value, in accordance with the requirements of ASC 810 "Consolidation" and ASC 480-10-S99-3A, "Distinguishing Liabilities from Equity".
 
The following table provides a reconciliation of the redeemable non-controlling interests:
 
January 1, 2014
 
2,721
 
Net income attributable to redeemable non-controlling interests
 
425
 
Non-controlling interest as part of acquisitions
 
158
 
Foreign currency translation adjustments
 
(374)
 
 
 
 
 
December 31, 2014
 
2,930
 
 
Cash and cash equivalents
 
Cash and cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired.
Cash and cash equivalent includes amounts held primarily in NIS, U.S. dollars, Euro, Japanese Yen and British Pound.
 
Short-term deposits and restricted deposits
 
Short-term deposits include deposits with original maturities of more than three months and less than one year. Such deposits are presented at cost (including accrued interest) which approximates their fair value. Restricted deposits are used to secure certain Group's ongoing projects and are classified under other receivables.
 
Marketable securities
 
The Company accounts for investments in marketable securities in accordance with ASC No. 320, “Investments – Debt and Equity Securities”. Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. 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 equity. Realized gains and losses on sale of investments are included in “financial income, net” and are derived using the specific identification method for determining the cost of securities.
 
The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in “financial income, net”.
 
The Company recognizes an impairment charge when a decline in the fair value of its investments in debt 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, the amount of impairment is recognized in “net gain (impairment net of gains) on sale of marketable securities previously impaired” in the statements of income and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income.
  
Property and equipment, net
 
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates:
 
 
 
Years
 
 
 
 
 
Computers and peripheral equipment
 
3
 
Office furniture and equipment
 
7 - 15 (mainly 7)
 
Motor vehicles
 
7
 
Software
 
3 – 5 (mainly 5)
 
Leasehold improvements
 
Over the shorter of the lease term or useful economic life
 
 
Business combinations
 
The Company accounts for business combinations under ASC 805, "Business Combinations". ASC 805 requires recognition of assets acquired, liabilities assumed, non-controlling interest and redeemable non-controlling interest in the acquiree at the acquisition date, measured at their fair values as of that date. As required by ASC 820, "Fair Value Measurements and disclosures" the Company applies assumptions that marketplace participants would consider in determining the fair value of assets acquired, liabilities assumed, non-controlling interest and redeemable non-controlling interest in the acquiree at the acquisition 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 earnings.
 
Variable interest entities
 
ASC 810, "Consolidation" provides a framework for identifying variable interest entities (or "VIEs") and determining when a company should include the assets, liabilities, non-controlling interests and results of activities of a VIE in its consolidated financial statements.
 
The Company's assessment of whether an entity is a VIE and the determination of the primary beneficiary requires judgment and involves the use of significant estimates and assumptions. Those include, among others, forecasted cash flows, their respective probabilities and the economic value of certain preference rights. In addition, such assessment also involves estimates of whether a group entity can finance its current activities, until it reaches profitability, without additional subordinated financial support.
 
Effective as of January 1, 2010, the Company applies updated guidance for the consolidation of VIEs. The guidance qualitative approach, based on which enterprise has both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the variable interest entity. Determination about whether an enterprise should consolidate a VIE is required to be evaluated continuously as changes to existing relationships or future transactions.
 
One of the Company's U.S. based consulting and staffing services business acquired through one of its wholly owned subsidiaries on January 17, 2010 is considered to be a VIE. The subsidiary is the primary beneficiary of the VIE, as a result of the fact that it holds the power to direct the activities of the acquired business, which significantly impacts its economic performance, and has the right to receive benefits accruing from the acquired business.
 
Research and development costs
 
Research and development costs incurred in the process of software development before establishment of technological feasibility are charged to expenses as incurred. Costs incurred subsequent to the establishment of technological feasibility are capitalized according to the principles set forth in ASC 985-20, "Costs of Software to be Sold, Leased or Marketed".
 
The Company and its subsidiaries establish technological feasibility upon completion of a detailed program design or working model.
 
Research and development costs incurred in the process of developing product enhancements are generally charged to expenses as incurred.
 
Capitalized software costs are amortized on a product by product basis by the straight-line method over the estimated useful life of the software product (between 4-5 years). The Company assesses the recoverability of these intangible assets on a regular basis by determining whether the amortization of the asset over its remaining economical useful life can be recovered through undiscounted future operating cash flows from the specific software product sold. During the years ended December 31, 2012, 2013 and 2014, no such unrecoverable amounts were identified.
 
Long-Lived Assets
 
The Company long-lived, non-current assets are comprised mainly of goodwill, identifiable intangible assets and property, plants and equipment.
 
Impairment of long-lived assets and intangible assets subject to amortization
 
The Company's long-lived assets are reviewed for impairment in accordance with ASC 360, "Property, Plant and Equipment" 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.
 
As required by ASC 820, "Fair Value Measurements and disclosures" the Company applies assumptions that marketplace participants would consider in determining the fair value of long-lived assets (or asset groups).
 
Intangible assets with finite lives are amortized over their economic useful life using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used up. Distribution rights, acquired technology and non-compete were amortized on a straight line basis and customer relationships and backlog were amortized on an accelerated method basis over a period between 3.5 - 15 years based on the intangible assets identified.
 
During the years ended December 31, 2012, 2013 and 2014, no impairment was identified.
 
Goodwill
 
Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350,"Intangibles - Goodwill and Other", goodwill is subject to an annual impairment test or more frequently if impairment indicators are present. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. As of December 31, 2014, the Company operates in four reporting units within its operating  segments.
 
Goodwill reflects the excess of the consideration paid or transferred plus the fair value of contingent consideration and any non-controlling interest in the acquiree at the acquisition date over the fair values of the identifiable net assets acquired. The goodwill impairment test is performed according to the following principles:
 
An initial qualitative assessment of the likelihood of impairment may be performed. If this step does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the impairment test is performed.
 
In step one of the impairment test, the company compares the fair value of the reporting units to the carrying value of net assets allocated to the reporting units. If the fair value of the reporting unit exceeds the carrying value of the net assets allocated to that unit, goodwill is not impaired, and no further testing is required. Otherwise, the company must perform the second step of the impairment test to measure the amount of the impairment.
 
In the second step, the reporting unit’s fair value is allocated to all the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that simulates the business combination principles to derive an implied goodwill value. If the implied fair value of the reporting unit’s goodwill is less than its carrying value, the difference is recorded as impairment
  
The Company performed an annual impairment tests as of December 31, of each of 2012, 2013 and 2014 and did not identify any impairment losses (see Note 9).
 
Revenue recognition
 
The Company derives its revenues from licensing the rights to use software (proprietary and non-proprietary), provision of related professional services, maintenance and technical support as well as from other IT professional services. The Company sells its products and services primarily through its direct sales force and indirectly through distributors and value added resellers.
 
The Company accounts for its software sales in accordance with ASC 985-605, "Software Revenue Recognition". Software license revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the vendor's fee is fixed or determinable, no further obligation exists and collectability is probable.
 
Maintenance and support includes annual maintenance contracts providing for unspecified upgrades for new versions and enhancements on a when-and-if-available basis for an annual fee. The right for an unspecified upgrade for new versions and enhancements on a when-and-if-available basis do not specify the features, functionality and release date of future product enhancements for the customer to know what will be made available and the general timeframe in which it will be delivered.
 
Maintenance and support revenue included in multiple element arrangements is deferred and recognized on a straight-line basis over the term of the maintenance and support agreement.
 
As required by ASC 985-605, the Company allocates revenues to the software component of its multiple-element arrangements using the residual method when vendor specific objective evidence ("VSOE") of fair value exists for the undelivered elements of the support and maintenance agreements. VSOE is based on the price charged when an element is sold separately or renewed. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is allocated to the delivered elements and is recognized as revenue.
 
The Company generally does not grant a right of return to its customers. When a right of return exists, the Company defers revenue until the right of return expires, at which time revenue is recognized provided that all other revenue recognition criteria are met.
 
Revenue from professional services related to both software and the IT professional services businesses consists of billable hours for services provided and is recognized as the services are rendered.
 
Arrangements that include professional services bundled with licensed software and other software related elements, are evaluated to determine whether those services are essential to the functionality of other elements of the arrangement. When services are considered essential to the software, revenues under the arrangement are recognized using contract accounting based on ASC 605-35, "Construction-Type and Production-Type Contracts", on a percentage of completion method based on inputs measures. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are first determined, in the amount of the estimated loss for the entire contract. During the years ended December 31, 2012, 2013 and 2014, no such estimated losses were identified.
 
When professional services are not considered essential to the functionality of other elements of the arrangement, revenue allocable to the services is recognized as the services are performed, using VSOE of fair value. In most cases, the Company has determined that the services are not considered essential to the functionality of other elements of the arrangement.
 
Deferred revenue includes unearned amounts received under maintenance, support and services contracts, and amounts received from customers but not yet recognized as revenues.
 
Revenue from third-party sales is recorded at a gross or net amount according to certain indicators. The application of these indicators for gross and net reporting of revenue depends on the relative facts and circumstances of each sale and requires significant judgment.
 
Severance pay
 
The Company's and its Israeli subsidiary's obligation for severance pay with respect to their Israeli employees (for the period for which the employees were not included under Section 14 of the Severance Pay Law, 1963) is calculated pursuant to the Israeli Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date, and are presented on an undiscounted basis (referred to as the "Shut Down Method"). Employees are entitled to one month's salary for each year of employment or a portion thereof. The Company's obligation for all of its Israeli employees is fully provided for by monthly deposits with insurance policies and by an accrual.
 
The Group has a number of savings plans in the United States that qualify under Section 401(k) of the Internal Revenue Code. U.S employees may contribute up to 100% of their pretax salary, but not more than statutory limits. Matching contributions are discretionary and are up to 3% of the participants contributions.  When contributions are granted, they are invested in proportion to each participant's voluntary contributions in the investment options provided under the plan.
 
The carrying value of deposited funds includes profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligations pursuant to the Israeli Severance Pay Law or labor agreements and are recorded as an asset in the Company's consolidated balance sheet.
 
The Company and its Israeli subsidiaries’ agreements with most of their Israeli employees are in accordance with Section 14 of the Severance Pay Law -1963, mandating that upon termination of such employees' employment; all the amounts accrued in their insurance policies shall be released to them instead of severance compensation. Upon release of deposited amounts to the employee, no additional liability exists between the parties regarding the matter of severance pay and no additional payments shall be made by the Company or its subsidiaries to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company and its subsidiaries are is legally released from their obligations to employees once the deposit amounts have been paid.
 
Severance expenses for the years ended December 31, 2012, 2013 and 2014 amounted to approximately $  829, $  1,371 and $ 1,673, respectively.
 
Advertising expenses
 
Advertising expenses are charged to selling and marketing expenses, as incurred. Advertising expenses for the years ended December 31, 2012, 2013 and 2014 amounted to $  556, $  306 and $ 466, respectively.
 
Income taxes
 
The Company and its subsidiaries account for income taxes in accordance with ASC 740, "Income Taxes". The ASC prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on 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 and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. Deferred tax assets and liabilities are classified as current or non-current according to the expected reversal dates.
 
The Company utilizes a two-step approach for recognizing and measuring uncertain tax positions accounted for in accordance with an amendment of ASC 740 "Income Taxes." Under the first step the Company evaluates a 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, based on its 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 with the tax authorities. The Company accrued interest and penalties related to unrecognized tax benefits in its provisions for income taxes.  
 
Basic and diluted net earnings per share
 
Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year, plus dilutive potential ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings Per Share."
 
A portion of the outstanding stock options have been excluded from the calculation of the diluted earnings per share because such securities are anti-dilutive. The total weighted average number of Ordinary shares related to the outstanding options excluded from the calculations of diluted earnings per share was 669,887, 536,877 and 35,010 for the years ended December 31, 2012, 2013 and 2014, respectively.
 
Stock-based compensation
 
The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" which 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 portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of income.
 
The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on the accelerated method over the requisite service period of each of the awards, net of estimated forfeitures.
 
The Company measures and recognizes compensation expense for share-based awards based on estimated fair values on the date of grant using the Binomial option-pricing model ("the Binomial model"). The Binomial model for option pricing requires a number of assumptions, of which the most significant are the suboptimal exercise factor and expected stock price volatility. The suboptimal exercise factor is estimated based on employees' historical option exercise behavior.
 
The suboptimal exercise factor is the ratio by which the stock price must increase over the exercise price before employees are expected to exercise their stock options. Expected volatility is based upon actual historical stock price movements and was calculated as of the grant dates for different periods, since the Binomial model can be used for different expected volatilities for different periods. The risk-free interest rate is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term to the contractual term of the options. Historically the Company did not hold any foreseeable plans to pay dividends and therefore used an expected dividend yield of zero in its past years option pricing models. In September 2012, the Company adopted a dividend distribution policy according to which it will distribute in each year a dividend of up to 50% of its annual distributable profits. 
 
The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. Estimated forfeitures are based on actual historical pre-vesting forfeitures.
 
For awards with performance conditions, compensation cost is recognized over the requisite service period if it is 'probable' that the performance conditions will be satisfied, as defined in ASC 450-20-20, "Loss Contingencies."
 
The fair value for the Company's stock options granted to employees and directors was estimated using the following assumptions:
 
 
 
2013
 
2014
 
 
 
 
 
 
 
Dividend yield
 
0%
 
0%
 
Expected volatility
 
32% - 59%
 
32% - 59%
 
Risk-free interest rate
 
0.1% - 2.6%
 
0.1% - 2.6%
 
Expected forfeiture (employees)
 
-
 
-
 
Expected forfeiture (executives)
 
-
 
-
 
Contractual term of up to
 
10 years
 
10 years
 
Suboptimal exercise multiple (employees)
 
2
 
-
 
Suboptimal exercise multiple (executives)
 
2
 
2
 
 
During the years ended December 31, 2012, 2013 and 2014, the Company recognized stock-based compensation expense related to employee stock options in the amount of $  515, $ 325 and $ 1,557, respectively, as follows:
 
 
 
Year ended December 31,
 
 
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
Cost of revenue
 
$
16
 
$
11
 
$
30
 
Research and development
 
 
114
 
 
67
 
 
29
 
Selling and marketing
 
 
82
 
 
85
 
 
220
 
General and administrative
 
 
303
 
 
162
 
 
1,278
 
 
 
 
 
 
 
 
 
 
 
 
Total stock-based compensation expense
 
$
515
 
$
325
 
$
1,557
 
 
Concentrations of credit risk
 
Financial instruments that potentially subject the Company and its subsidiaries to concentration of credit risk consist principally of cash and cash equivalents, short-term deposits, marketable securities, trade receivables and foreign currency derivative contracts.
  
The Company's cash and cash equivalents and short-term deposits are invested primarily in deposits with major banks worldwide, mainly in the United States and Israel, however, such cash and cash equivalents and short-term deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. The Company believes that such institutions are of high rating and therefore bear low risk.
 
The Company's marketable securities include investments in commercial and government bonds and foreign banks. The Company's marketable securities are considered to be highly liquid and have a high credit standing. In addition, management considered its portfolios in foreign banks to be well-diversified (also refer to Note 4).
 
Trade receivables of the Company and its subsidiaries are derived from sales to customers located primarily in the United States, Europe, Japan, South Africa and Israel. The Company performs ongoing credit evaluations of its customers and excluding 2013 to date has not experienced any material losses. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. The expense related to doubtful accounts for the years ended December 31, 2012, 2013 and 2014 was $  420, $ 1,285 and $ 735, respectively.
 
The Company has entered into foreign exchange forward contracts intended to protect against the changes in value of forecasted non-dollar currency cash flows related to salary and related expenses. These derivative instruments are designed to offset the Company's non-dollar currency exposure (see "Derivative instruments" below).
 
Fair value measurements
 
The Company accounts for certain assets and liabilities at fair value under ASC 820, "Fair Value Measurements and Disclosures". Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
 
Level 1 -
Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets;
 
Level 2 -
Significant other observable inputs based on market data obtained from sources independent of the reporting entity;
 
Level 3 -
Unobservable inputs which are supported by little or no market activity;
 
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 Company categorized each of its fair value measurements in one of these three levels of hierarchy.
  
Assets and liabilities measured at fair value on a recurring basis are comprised of marketable securities, foreign currency forward contracts and contingent consideration of acquisitions (see Note 5).
 
The carrying amounts reported in the balance sheet for cash and cash equivalents, short term bank deposits, trade receivables, other accounts receivable, short-term bank credit, trade payables and other accounts payable approximate their fair values due to the short-term maturities of such instruments.
 
Comprehensive income (loss)
 
The Company accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income." This Statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income (loss) relate to gain and loss on foreign currency translation adjustments, unrealized gain and loss on derivative instruments designated as hedges and unrealized gain and loss on available-for-sale marketable securities.
 
Derivative instruments
 
A material portion of the Company's revenues, expenses and earnings is exposed to changes in foreign exchange rates. Depending on market conditions, foreign exchange risk is also managed through the use of derivative financial instruments. These financial instruments serve to protect net income against the impact of the translation into U.S. dollars of certain foreign exchange-denominated transactions. The derivative instruments hedge or offset exposures to Euro, Japanese Yen and NIS exchange rate fluctuations.
 
ASC 815, "Derivatives and Hedging," requires companies to recognize all of their derivative instruments as either assets or liabilities in their balance sheet at fair value. Derivative instruments that are designated and qualify as hedges of forecasted transactions (i.e., cash flow hedges) are carried at fair value with the effective portion of a derivative's gain or loss recorded in other comprehensive income and subsequently recognized in earnings in the same period or periods in which the hedged forecasted transaction affects earnings. For derivative instruments that are not designated and qualified as hedging instruments, the gains or losses on the derivative instruments are recognized in current earnings during the period of the change in fair values.
 
The derivative instruments used by the Company are designed to reduce the market risk associated with the exposure of its underlying transactions to fluctuations in currency exchange rates.
  
The Company has instituted a foreign currency cash flow hedging program in order to hedge against the risk of overall changes in future cash flows. The Company hedges portions of its forecasted expenses denominated in NIS with currency forwards contracts and put and call options. These forward and option contracts are designated as cash flow hedges.
 
For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, is recognized in current earnings during the period of change.
 
For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change.
 
The notional principal of foreign exchange contracts to purchase NIS with U.S. dollars was $ 0 and  $ 1,736 as of December 31, 2013 and 2014, respectively.
 
At December 31, 2014, the Company did not have any cash flow hedges.
 
The following tables present fair value amounts and gains and losses of derivative instruments and related hedged items:
 
 
 
Fair values of derivative instruments
 
 
 
Assets
 
 
 
 
 
December 31,
 
 
 
Balance sheet item
 
2013
 
 
2014
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging
 
"Other accounts receivable and prepaid expenses"
 
$
-
 
$
9
 
 
 
 
 
 
 
 
 
 
 
Total derivatives
 
 
 
$
-
 
$
9
 
 
 
 
 
 
Gain (loss)
 
 
 
 
 
recognized in the
 
 
 
Statements
 
statements of income
 
 
 
of
 
Year ended December 31,
 
 
 
income item
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging:
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
 
"Financial expenses, net"
 
 
245
 
 
139
 
 
24
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total derivatives
 
 
 
$
245
 
$
139
 
$
24
 
 
Reclassification
 
Certain amounts in prior years' financial statements have been reclassified to conform with the current year's presentation. The reclassification had no effect on previously reported net income, equity or cash flow.
 
Recently Issued Accounting Pronouncement:
 
In August 2014, the Financial Accounting Standards Board (“FASB”) issued amended guidance related to disclosure of uncertainties about an entity’s ability to continue as a going concern. The new guidance requires management to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, as necessary, to provide related footnote disclosures. The guidance has an effective date of December 31, 2016.
 
In May 2014, Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", a comprehensive new revenue recognition standard that will supersede existing revenue guidance under US GAAP and IFRS ("ASU 2014-09"). ASU 2014-09's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for annual periods beginning after December 15, 2016, including interim periods within that period. Early adoption is not permitted under US GAAP. The Company is currently evaluating the method of adoption, as well as the effect that adoption of this ASU will have on its consolidated financial statements. 
 
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-08 (ASU 2014-08) “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The new guidance limits the presentation of discontinued operations to business circumstances when the disposal of the business operation represents a strategic shift that has had or will have a major effect on operations and financial results. This guidance is effective for fiscal years beginning January 1, 2015. The company believes that the adoption of this new standard will not materially impact its consolidated financial statements.
v2.4.1.9
BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS
12 Months Ended
Dec. 31, 2014
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]
NOTE 3:-
BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS
  
a.
On December 27, 2011, the Company completed the acquisition of the AppBuilder activity of BluePhoenix Solutions ("AppBuilder"), a leading provider of value-driven legacy IT modernization solutions, for $  12,565. During 2012, the Company paid an additional amount of $ 140 with respect to the acquisition. AppBuilder is a comprehensive application development infrastructure used by many enterprises around the world. This premier enterprise application development environment is a powerful, model-driven tool that enables development teams to build, deploy, and maintain large-scale, custom-built business applications. The Company believes the acquisition will broaden its product portfolio and strengthens the presence in numerous global markets. Acquisition related costs were immaterial.
 
The acquisition was accounted for by the purchase method. The results of operations were included in the consolidated financial statements of the Company commencing January 1, 2012.
 
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed:
 
Net liabilities
 
$
(3,248)
 
Intangible assets
 
 
7,251
 
Goodwill
 
 
8,702
 
 
 
 
 
 
Net assets acquired
 
$
12,705
 
 
Identifiable intangible assets, including customer relationship were valued using a variation of the income approach. This method utilized a forecast of expected cash inflows, cash outflows and contributory charges for economic returns on tangible and intangible assets employed.
 
Amounts of $  4,430, $ 2,138 and $ 683 of the purchase price were allocated to customer relationships, developed technology and backlog, respectively. The Company amortizes the customer relationships, backlog and acquired technology over periods of 15 years, 15 years and 3.5 years, respectively.
 
b.
In July 2012, the Company acquired an 80% interest in Comm-IT Group, (including "Comm-IT Technology Solutions" and "Comm-IT Software"), a software and systems development house that specializes in providing advanced IT and communications services and solutions, for a total consideration of $  8,933, of which $  4,990 was paid upon closing and the remaining $ 3,943 is to be paid during the next two years, of which, $  1,192 is contingent upon the acquired business meeting certain operational targets in 2012 and 2013, and $  2,751 in deferred payments. The Purchaser and the seller hold mutual Call and Put options respectively for the remaining 20% interest in the group. As a result of the Put option, the Company recorded redeemable non-controlling interest in the amount of $  1,750. In March 2014, the paid the sellers the remaining deferred payments.
 
The company believes that the acquisition of this business will enable it to expand its professional services offering and leverage its relationships with top tier customers. Acquisition related costs were immaterial.
 
In accordance with ASC 805-30-35-1, the Company re-measures the contingent consideration based on the fair value at each reporting date until the contingency is resolved or the payment is made, while the changes in fair value are recognized in earnings in the financial expenses using the interest method over the period. The contingent payment was recorded at present value and was amortized using the interest method during the relevant period into financial expenses.
 
The acquisition was accounted for by the purchase method. The results of operations were included in the consolidated financial statements of the Company commencing July 1, 2012.
 
On May 2013 the company finalized the process of identifying the tangible and intangible assets for its acquisition. The following table summarize the fair value of the assets and liabilities acquired:
 
 
 
As reported
 
 
 
 
 
 
 
on December
 
 
 
 
 
 
 
31, 2012
 
Adjustment
 
Modified
 
 
 
 
 
 
 
 
 
Net assets
 
$
1,219
 
$
14
 
$
1,233
 
Non-controlling interest
 
 
(1,880)
 
 
130
 
 
(1,750)
 
Intangible assets
 
 
3,873
 
 
397
 
 
4,270
 
Goodwill
 
 
5,809
 
 
439
 
 
6,248
 
Deferred tax liability, net
 
 
-
 
 
(1,068)
 
 
(1,068)
 
 
 
 
 
 
 
 
 
 
 
 
Net assets acquired
 
$
9,021
 
$
(88)
 
$
8,933
 
  
c.
On February 26, 2013, the Company purchased Pilat Europe Limited Ltd. and Pilat (North America) Inc. which provides custom human capital management solutions, for a total consideration of $  1,233. The Company believes the acquisition will broaden its application product portfolio, customer base and strengthen its presence in numerous global markets. Acquisition related costs were immaterial.
 
 
The acquisition was accounted for by the purchase method. The results of operations of these entities were included in the consolidated financial statements of the Company commencing March 1, 2013.
  
The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:
 
Net assets
 
$
490
 
Intangible assets
 
 
715
 
 
 
 
 
 
Total assets acquired
 
$
1,205
 
 
d.
On May 16, 2013, the Company purchased Valinor Ltd, a consulting company specializing in project and product consultation, installation and implementation of databases for a total consideration of $  1,618, of which $  339 was paid upon closing, $  339 was paid in November 2013, $340 paid on May 25, 2014, and $  600 is contingently payable upon the business meeting certain operational targets in 2013 and 2014. The amount related to operational targets of 2013 was paid in September 2014. On December 2013 the company increased the total consideration according to 2013 results by $230 recorded in the Company’s statement of operations. The Company believes the acquisition will broaden its professional service offering to its existing and new customers in the fields of projects and product consultation and installation and implementation of databases. Acquisition related costs were immaterial.
 
The acquisition was accounted for by the purchase method.
 
The results of operations of these entities were included in the consolidated financial statements of the Company commencing May 15, 2013.
  
The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:
 
Net assets
 
$
119
 
Intangible assets
 
 
464
 
Goodwill
 
 
1,035
 
 
 
 
 
 
Total assets acquired
 
$
1,618
 
   
e.
On May 30, 2013, the Company purchased Dario Solutions IT Ltd, a consulting company specializing in integration services of Microsoft products in enterprise IT environments for a total consideration of $  3,723, of which $  1,100 was paid upon closing, $  906 is to be paid by February 28, 2014 and the remaining $  1,717 is contingently payable upon the business meeting certain operational targets in 2013, 2014 and 2015. The amount related to operational targets of 2013 was paid in September 2014. On September 2014 the company decreased the total consideration according to 2014 results by $997 recorded in the Company’s statement of operations. The company believes the acquisition will complement the company’s’ professional services offering to its existing and new customers in the field of software integration and advanced on target IT solutions for large and mid- range customers. Acquisition related costs were immaterial.
 
The acquisition was accounted for by the purchase method.
 
The results of operations of these entities were included in the consolidated financial statements of the Company commencing June 1, 2013.
 
The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:
 
Net Assets
 
$
371
 
Intangible assets
 
 
707
 
Goodwill
 
 
2,645
 
 
 
 
 
 
Total assets acquired
 
$
3,723
 
 
f.
On November 11, 2013 the Company acquired the operations of Allstates Technical Services, LLC, a US-based full-service provider of consulting and staffing solutions for IT, Engineering and Telecom personnel, for a total consideration of $10,963. The company believes the acquisition will broadens its existing US footprint and adds leading Fortune 500 companies to its customer base, making an important contribution to its growth strategy in the IT professional services operating segment. The results of operations were included in the consolidated financial statements of the Company commencing November 11, 2013.
  
The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:
 
Net Assets
 
$
3,063
 
Intangible assets
 
 
2,874
 
Goodwill
 
 
5,026
 
 
 
 
 
 
Total assets acquired
 
$
10,963
 
 
g.
In addition, the Company acquired additional activities during the years ended December 31, 2013 and 2014, whose influence on the financial statements of the Company was immaterial, for a total consideration of $  0.9 million and $0.7 million, respectively.
  
h.
On October 1, 2014 the Company acquired the operations Formula Telecom Solutions Ltd. (FTS), an Israel-based software vendor, for a total consideration of $5,800. FTS specializes in the development, sale, service and support of Business Support Systems (BSS), including convergent charging, billing, customer management, policy control and payment software solutions for the telecommunications. The Company believes the acquisition will broaden its professional service offering to its existing and new customers in the fields of Business Support Systems, including convergent charging, billing, customer management and policy control. Acquisition related costs were immaterial. The acquisition was accounted for by the purchase method.
 
The results of operations were included in the consolidated financial statements of the Company commencing October 1, 2014.
 
The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:
 
Net Assets
 
$
(57)
 
Intangible assets
 
 
2,951
 
Goodwill
 
 
2,906
 
 
 
 
 
 
Total assets acquired
 
$
5,800
 
v2.4.1.9
MARKETABLE SECURITIES
12 Months Ended
Dec. 31, 2014
Marketable Securities [Abstract]  
Marketable Securities [Text Block]
 
NOTE 4:-
MARKETABLE SECURITIES
 
The Group invests in marketable debt and equity securities, which are classified as available-for-sale. The following is a summary of marketable securities:
 
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
Amortized
cost
 
Unrealized
losses
 
Unrealized
gains
 
Market
value
 
Amortized
cost
 
Unrealized
losses
 
Unrealized
gains
 
Market
value
 
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Governmental bonds
 
$
407
 
$
-
 
$
3
 
$
410
 
$
11,916
 
$
(232)
 
$
-
 
$
11,684
 
Commercial bonds
 
 
190
 
 
-
 
 
25
 
 
215
 
 
-
 
 
-
 
 
-
 
 
-
 
Equity funds
 
 
119
 
 
-
 
 
110
 
 
229
 
 
116
 
 
-
 
 
115
 
 
231
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total available-for-sale marketable securities
 
$
716
 
$
-
 
$
138
 
$
854
 
$
12,032
 
$
(232)
 
$
115
 
$
11,915
 
 
Marketable securities with contractual maturities from one to three years are as follows:
 
 
 
 
 
 
Unrealized gains (losses)
 
 
 
 
 
 
Amortized
cost
 
Gains
 
Losses
 
Market value
 
Due between one to three years
 
$
6,219
 
$
-
 
$
(124)
 
$
6,095
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
6,219
 
$
-
 
$
(124)
 
$
6,095
 
 
Marketable securities with contractual maturities from three to five years are as follows:
 
 
 
 
 
 
Unrealized gains (losses)
 
 
 
 
 
 
Amortized
cost
 
Gains
 
Losses
 
Market value
 
Due between three to five years
 
$
5,697
 
$
-
 
$
(108)
 
$
5,589
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
5,697
 
$
-
 
$
(108)
 
$
5,589
 
  
The following is the change in the other comprehensive income of available-for-sale securities during 2013: 
 
 
 
Other
 
 
 
comprehensive
 
 
 
income
 
 
 
 
 
 
Other comprehensive income from available-for-sale securities as of January 1, 2013
 
$
173
 
 
 
 
 
 
Unrealized loss from available-for-sale securities
 
 
(35)
 
 
 
 
 
 
Other comprehensive income from available-for-sale securities as of December 31, 2013
 
$
138
 
 
The following is the change in the other comprehensive income of available-for-sale securities during 2014:
 
 
 
Other
comprehensive
income
 
 
 
 
 
 
Other comprehensive income from available-for-sale securities as of January 1, 2014
 
$
138
 
 
 
 
 
 
Unrealized losses from available-for-sale securities
 
 
(259)
 
 
 
 
 
 
Other comprehensive income from available-for-sale securities as of December 31, 2014
 
$
(121)
 
v2.4.1.9
FAIR VALUE MEASUREMENTS
12 Months Ended
Dec. 31, 2014
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
NOTE 5:-
FAIR VALUE MEASUREMENTS
 
In accordance with ASC 820, the Company measures its investment in marketable securities and foreign currency derivative contracts at fair value. Generally marketable securities are classified within Level 1, this is because these assets are valued using quoted prices in active markets. Foreign currency derivative contracts and certain corporate bonds are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.
 
Contingent consideration is classified within Level 3. The Company values the Level 3 contingent consideration using discounted cash flow of the expected future payments, whose inputs include interest rate.
 
The Company's financial assets measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments as of the following dates:
 
 
 
December 31, 2013
 
 
 
Fair value measurements using input type
 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Government bonds
 
$
410
 
$
-
 
$
-
 
$
410
 
Corporate bonds
 
 
-
 
 
215
 
 
-
 
 
215
 
Equity fund
 
 
229
 
 
-
 
 
-
 
 
229
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total financial assets
 
$
639
 
$
215
 
$
-
 
$
854
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration
 
$
-
 
$
-
 
$
3,981
 
$
3,981
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total financials liabilities
 
$
-
 
$
-
 
$
3,981
 
$
3,981
 
 
 
 
December 31, 2014
 
 
 
Fair value measurements using input type
 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
 
$
-
 
$
11,684
 
$
-
 
$
11,684
 
Equity fund
 
 
231
 
 
-
 
 
-
 
 
231
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total financial assets
 
$
231
 
$
11,684
 
$
-
 
$
11,915
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration
 
$
-
 
$
-
 
$
382
 
$
382
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total financials liabilities
 
$
-
 
$
-
 
$
382
 
$
382
 
 
Fair value measurements using significant unobservable inputs (Level 3):
 
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
 
 
 
 
 
Opening balance
 
$
1,942
 
$
3,981
 
Increase in contingent consideration
 
 
2,459
 
 
250
 
Payment in contingent consideration
 
 
(750)
 
 
(3,053)
 
Change in fair value of contingent consideration
 
 
-
 
 
(948)
 
Amortization of interest
 
 
330
 
 
152
 
 
 
 
 
 
 
 
 
Closing balance
 
$
3,981
 
$
382
 
v2.4.1.9
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES
12 Months Ended
Dec. 31, 2014
Receivables [Abstract]  
Other Accounts Receivable and Prepaid Expenses Disclosure [Text Block]
NOTE 6:-
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES
 
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
 
 
 
 
Prepaid expenses
 
$
1,156
 
$
1,159
 
Government authorities
 
 
862
 
 
1,081
 
Deferred tax assets, net
 
 
1,949
 
 
554
 
Restricted deposits
 
 
289
 
 
149
 
Related parties
 
 
92
 
 
447
 
Other
 
 
861
 
 
583
 
 
 
 
 
 
 
 
 
 
 
$
5,209
 
$
3,973
 
v2.4.1.9
PROPERTY AND EQUIPMENT
12 Months Ended
Dec. 31, 2014
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure [Text Block]
NOTE 7:-
PROPERTY AND EQUIPMENT
 
 
 
December 31,
 
 
 
2013
 
2014
 
Cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leasehold improvements
 
$
546
 
$
523
 
Computers and peripheral equipment
 
 
10,106
 
 
12,942
 
Office furniture and equipment
 
 
2,639
 
 
2,620
 
Motor vehicles
 
 
98
 
 
177
 
Software
 
 
1,962
 
 
3,478
 
 
 
 
 
 
 
 
 
 
 
 
15,351
 
 
19,740
 
Accumulated depreciation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leasehold improvements
 
 
288
 
 
175
 
Computers and peripheral equipment
 
 
9,657
 
 
12,426
 
Office furniture and equipment
 
 
1,947
 
 
1,985
 
Motor vehicles
 
 
68
 
 
133
 
Software
 
 
1,618
 
 
3,016
 
 
 
 
 
 
 
 
 
 
 
 
13,578
 
 
17,735
 
 
 
 
 
 
 
 
 
Depreciated cost
 
$
1,773
 
$
2,005
 
 
Depreciation expenses amounted to $  757, $ 656 and $ 675 for the years ended December 31, 2012, 2013 and 2014, respectively.
v2.4.1.9
INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Disclosure [Text Block]
NOTE 8:-
INTANGIBLE ASSETS
 
a.
Intangible assets:
 
 
 
December 31,
 
 
 
2013
 
2014
 
Original amounts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized software costs
 
$
59,069
 
$
63,260
 
Customer relationships
 
 
23,843
 
 
26,618
 
Backlog and non-compete agreement
 
 
1,554
 
 
1,623
 
Acquired technology
 
 
3,112
 
 
4,862
 
 
 
 
 
 
 
 
 
 
 
 
87,578
 
 
96,363
 
Accumulated amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized software costs
 
 
45,075
 
 
49,072
 
Customer relationships
 
 
8,895
 
 
12,817
 
Backlog and non-compete agreement
 
 
630
 
 
1,142
 
Acquired technology
 
 
429
 
 
789
 
 
 
 
 
 
 
 
 
 
 
 
55,029
 
 
63,820
 
 
 
 
 
 
 
 
 
Intangible assets, net
 
$
32,549
 
$
32,543
 
 
b.
Amortization expenses amounted to $  6,687, $ 7,724 and $ 7,919 for the years ended December 31, 2012, 2013 and 2014, respectively.
 
c.
The estimated future amortization expense of intangible assets as of December 31, 2014 is as follows:
 
2015
 
 
8,230
 
2016
 
 
7,140
 
2017
 
 
5,764
 
2018
 
 
4,383
 
2019
 
 
3,043
 
2020 and thereafter
 
 
3,983
 
 
 
 
 
 
 
 
$
32,543
 
v2.4.1.9
GOODWILL
12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Disclosure [Text Block]
NOTE 9:-
GOODWILL
 
Changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2014 according to the Company's reporting units are as follows (see also 16):
 
 
 
IT
professional
services
 
Software services
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
As of January 1, 2013
 
$
18,036
 
$
26,627
 
$
44,663
 
 
 
 
 
 
 
 
 
 
 
 
Business combination
 
 
9,007
 
 
1,036
 
 
10,043
 
Classifications
 
 
430
 
 
-
 
 
430
 
Foreign currency translation adjustments
 
 
1,022
 
 
(845)
 
 
177
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2013
 
 
28,495
 
 
26,818
 
 
55,313
 
 
 
 
 
 
 
 
 
 
 
 
Business combination
 
 
-
 
 
3,664
 
 
3,664
 
Classifications
 
 
-
 
 
(496)
 
 
(735)
 
Foreign currency translation adjustments
 
 
(1,906)
 
 
(1,085)
 
 
(2,752)
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2014
 
 
26,589
 
 
28,901
 
 
55,490
 
 
The Company performed an annual impairment tests as of December 31, of each of 2012, 2013 and 2014 and did not identify any impairment losses (see Note 2).
v2.4.1.9
ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE
12 Months Ended
Dec. 31, 2014
Accounts Payable and Accrued Liabilities, Current [Abstract]  
Accrued Expenses and Other Accounts Payable [Text Block]
NOTE 10:-
ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE
 
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
 
 
 
 
Employees and payroll accruals
 
$
6,675
 
$
7,243
 
Accrued expenses
 
 
2,925
 
 
5,191
 
Deferred and contingent payments related to acquisitions
 
 
4,167
 
 
170
 
Government authorities
 
 
2,495
 
 
1,395
 
Other
 
 
675
 
 
1,014
 
 
 
 
 
 
 
 
 
 
 
$
16,937
 
$
15,013
 
v2.4.1.9
LONG TERM DEBT
12 Months Ended
Dec. 31, 2014
Debt Disclosure [Abstract]  
Long-term Debt [Text Block]
NOTE 11:-
LONG TERM DEBT
 
 
 
Interest rate as
 
 
 
 
 
of December 31,
 
December 31,
 
 
 
2014
 
2013
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
%
 
 
 
 
 
Loans from banks in USD (1)
 
3.7%
 
$
2,904
 
$
-
 
Loan from banks and other in NIS
 
4.1%-5.9%
 
 
405
 
 
481
 
Other long term debt
 
 
 
 
 
20
 
 
8
 
 
 
 
 
 
 
 
 
 
 
 
Less – Current maturities (included under “short-term debt”)
 
 
 
 
 
(1,055)
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
2,274
 
$
490
 
 
(1)
Loan from a US bank, received on November 2013 in the amount of $3,000, paid monthly in equal payment, for a period of 36 months bearing interest of Libor+3.5%. The loan agreement contains various covenants which require us to maintain certain financial ratios. The Company has met the financial ratios as of December 31, 2013. During 2014 the company repaid the loan.
 
(2)
On November 2013, the Company entered into a credit line agreement with a U.S. bank, under which the bank provides the Company with a credit line of $3 million for a period of three years. As of December 31, 2014, the Company had drawn down an amount of approximately $2.8 million from the credit line, which is subject to interest equal to the Prime Rate in effect from time to time, plus 3% per annum; provided that the interest rate in effect on any day shall not be less than 6.0% per annum. In relation to this credit line, the Company is obliged by the bank to comply with certain financial covenants, as defined in the agreement. As of December 31, 2014, the Company was in full compliance with the financial covenants. During January 2015 the company fully repaid the credit line.
v2.4.1.9
TAXES ON INCOME
12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
 
NOTE 12:-
TAXES ON INCOME
 
 
a.
Israeli taxation:
 
 
1.
Corporate tax rate in Israel:
 
Taxable income of Israeli companies is subject to tax at the rate of 25% in 2012, 25% in 2013 and 26.5% in 2014.
 
 
2.
Tax benefits under the Israeli Law for the Encouragement of Capital Investments, 1959 ("the Law"):
 
Certain production and development facilities of the Company have been granted "Approved Enterprise" status pursuant to the Law, which provides certain tax benefits to its investment programs including tax exemptions and reduced tax rates. Income not eligible for Approved Enterprise benefits is taxed at regular rates.
 
In the event of distribution of dividends from the said tax-exempt income, the amount distributed will be subject to corporate tax at the rate ordinarily applicable to the Approved Enterprise's income. 
 
The entitlement to the above benefits is conditional upon the fulfilling of the conditions stipulated by the Laws and regulations. Should they fail to meet such requirements in the future, income attributable to its Approved Enterprise programs could be subject to the statutory Israeli corporate tax rate and they could be required to refund a portion of the tax benefits already received, with respect to such programs. As of December 31, 2014, management believes that the Company's Israeli subsidiaries are in compliance with all the conditions required by the Law.
 
Effective January 1, 2011, the Knesset enacted the Law for Economic Policy for 2011 and 2012 (Amended Legislation), and among other things, amended the Law, ("the Amendment"). According to the Amendment, the benefit tracks in the Investment Law were modified and a flat tax rate applies to the Company's entire preferred income. The Company will be able to opt to apply (the waiver is non-recourse) the Amendment and from then on it will be subject to the amended tax rates as follows: 2014 - 16%. As of December 31, 2014, the Company has not applied for this amendment. The profits of these “Industrial Companies” will be freely distributable as dividends, subject to a withholding tax of 20% (on distribution commencing January 1, 2014) or lower, under an applicable tax treaty.
 
The Company and certain of its Israeli subsidiaries intend to apply the new incentives regime under the Amendment to their industrial activity in Israel starting in 2014 and believes it will qualify as an “Beneficiary Company” under the Amendment.
  
 
3.
The Company's Israeli entities have received final tax assessments for their Israeli tax return filings through the year 2010.
 
 
4.
Tax benefits under the Law for the Encouragement of Industry (Taxes), 1969:
 
The Company qualifies as an Industrial Company within the meaning of the Law for the Encouragement of Industry (Taxes), 1969 (the "Industrial Encouragement Law"). The Industrial Encouragement Law defines an "Industrial Company" as a company that is resident in Israel and that derives at least 90% of its income in any tax year, other than income from defense loans, capital gains, interest and dividends, from an enterprise whose major activity in a given tax year is industrial production. Under the Industrial Encouragement Law, the Company is entitled to amortization of the cost of purchased know-how and patents over an eight-year period for tax purposes as well as accelerated depreciation rates on equipment and buildings.
 
Eligibility for the benefits under the Industrial Encouragement Law is not subject to receipt of prior approval from any governmental authority.
 
 
b.
Non-Israeli subsidiaries:
 
Non-Israeli subsidiaries are taxed according to the tax laws in their respective domiciles of residence. If earnings are distributed to Israel in the form of dividends or otherwise, the Company may be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. 
 
The amount of the Company cash and cash equivalents that are currently held outside of Israel that would be subject to income taxes if distributed as dividends is $21.2 million. However, a determination of the amount of the unrecognized deferred tax liability for temporary difference related to those undistributed earnings of foreign subsidiaries is not practicable due to the complexity of the structure of our group of subsidiaries for tax purposes and the difficulty of projecting the amount of future tax liability
 
 
c.
Net operating loss carryforwards:
 
As of December 31, 2014, the Company and its Israeli subsidiaries had operating loss carryforwards of $  15,929, which can be carried forward and offset against taxable income in the future for an indefinite period.
 
The Company's subsidiaries in Europe had estimated total available tax loss carryforwards of $  4,999 as of December 31, 2014, to offset against future taxable income.
 
The Company's subsidiaries in the U.S. had estimated total available tax loss carryforwards of $  427 as of December 31, 2014, which can be carried forward and offset against taxable income for a period of up to 20 years, from the year the loss was incurred.
 
Utilization of U.S. net operating losses may be subject to substantial annual limitations due to the "change in ownership" provisions ("annual limitations") of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization.
 
 
d.
Income before taxes on income:
 
 
 
Year ended December 31,
 
 
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
10,462
 
$
16,165
 
$
14,690
 
Foreign
 
 
6,092
 
 
2,266
 
 
4,183
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
16,554
 
$
18,431
 
$
18,873
 
 
 
e.
Taxes on income:
 
Taxes on income (tax benefit) consist of the following:
 
 
 
Year ended December 31,
 
 
 
2012
 
2013
 
2014
 
Current:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
(1,291)
 
$
(1,277)
 
$
241
 
Foreign
 
 
302
 
 
781
 
 
689
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(989)
 
 
(496)
 
 
930
 
Deferred taxes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
 
414
 
 
2,673
 
 
2,575
 
Foreign
 
 
669
 
 
(602)
 
 
(1,198)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,083
 
 
2,071
 
 
1,377
 
 
 
 
 
 
 
 
 
 
 
 
Taxes on income (tax benefit)
 
$
94
 
$
1,575
 
$
2,307
 
  
 
f.
Deferred tax assets and liabilities:
 
Deferred 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 and its subsidiaries deferred tax assets are as follows:
 
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
 
 
 
 
 
 
Net operating loss carryforwards
 
$
5,293
 
$
4,627
 
Allowances, reserves and intangible assets
 
 
1,207
 
 
1,080
 
 
 
 
 
 
 
 
 
Deferred tax assets before valuation allowance
 
 
6,500
 
 
5,707
 
Less - valuation allowance
 
 
(1,154)
 
 
(3,570)
 
 
 
 
 
 
 
 
 
Deferred tax assets
 
 
5,346
 
 
2,137
 
Capitalized software costs
 
 
(1,723)
 
 
-
 
 
 
 
 
 
 
 
 
Deferred tax assets, net
 
$
3,623
 
$
2,137
 
 
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
 
 
 
 
Current tax assets
 
$
1,949
 
$
554
 
Non-current tax assets
 
 
1,674
 
 
1,583
 
 
 
 
 
 
 
 
 
Deferred tax assets
 
$
3,623
 
$
2,137
 
 
Current taxes are included under other accounts receivable and prepaid expenses.
 
Significant components of the Company and its subsidiaries deferred tax liability are as follows:
 
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
 
 
 
 
Current tax liabilities
 
$
2,567
 
$
760
 
Non-current tax liabilities
 
 
2,204
 
 
4,086
 
 
 
 
 
 
 
 
 
Net deferred tax liabilities
 
$
4,771
 
$
4,846
 
  
Both current deferred tax liabilities and long term deferred tax liabilities are in respect of acquired intangible assets.
 
g.
Reconciliation of the theoretical tax expense to the actual tax expense:
 
Reconciling items between the 2012, 2013 and 2014 statutory tax rate (25%, 25% and 26.5%, respectively) of the Company and the effective tax rate is presented in the following table:
 
 
 
Year ended December 31,
 
 
 
2012
 
 
2013
 
 
2014
 
 
 
 
 
 
 
 
 
 
 
Income before taxes, as reported in the consolidated statements of income
 
$
16,554
 
 
$
18,431
 
 
$
18,873
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statutory tax rate
 
 
25
%
 
 
25
%
 
 
26.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Theoretical tax expenses on the above amount at the Israeli statutory tax rate
 
$
4,139
 
 
$
4,609
 
 
$
5,001
 
Tax adjustment in respect of different tax rates
 
 
444
 
 
 
484
 
 
 
80
 
Deferred taxes on losses for which full valuation allowance was provided in the past
 
 
651
 
 
 
(304)
 
 
 
236
 
Changes in valuation allowance
 
 
(2,003)
 
 
 
-
 
 
 
-
 
Tax benefits in respect of prior years, net
 
 
(1,126)
*)
 
 
203
 
 
 
(516)
 
Nondeductible expenses
 
 
20
 
 
 
95
 
 
 
82
 
Uncertain tax position and other differences
 
 
(2,031)
**)
 
 
(3,512)
 
 
 
(2,576)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax (tax benefit)
 
$
94
 
 
$
1,575
 
 
$
2,307
 
 
*)
In 2012, the Company reversed its write-off of tax prepayment advances from prior years since the Company believes the utilization of the prepayments is more-likely-than not in the near future.
 
**)
This amount is mainly comprised of tax provisions reversal due to statute of limitation of prior years' tax assessments amounting to $1,270.
  
h.
The Company applies ASC 740, "Income Taxes" with regards to tax uncertainties. During the years ended December 31, 2012, 2013 and 2014, the Company recorded $  219, $2,811 and $ 156 of tax income, respectively, as a result of this application.
 
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
 
Gross unrecognized tax benefits at January 1, 2012
 
$
3,528
 
 
 
 
 
 
Increase in tax positions taken in prior years
 
 
270
 
 
 
 
 
 
Decrease in tax positions taken in prior years
 
 
(489)
 
 
 
 
 
 
Gross unrecognized tax benefits at December 31, 2012
 
 
3,309
 
Increase in tax positions taken in prior years
 
 
-
 
 
 
 
 
 
Decrease in tax positions taken in prior years
 
 
(2,811)
 
 
 
 
 
 
Gross unrecognized tax benefits at December 31, 2013
 
 
498
 
 
 
 
 
 
Increase in tax positions taken in prior years
 
 
-
 
 
 
 
 
 
Decrease in tax positions taken in prior years
 
 
(156)
 
 
 
 
 
 
Gross unrecognized tax benefits at December 31, 2014
 
$
342
 
 
As of December 31, 2014, the entire amount of unrecognized tax benefit could affect the Company's income tax provision and the effective tax rate.
v2.4.1.9
EQUITY
12 Months Ended
Dec. 31, 2014
Equity [Abstract]  
Shareholders' Equity and Share-based Payments [Text Block]
NOTE 13:-
EQUITY
 
a.
The ordinary shares of the Company are listed on the NASDAQ Global Select Market in the United States and are traded on the Tel-Aviv Stock Exchange in Israel.
 
b.
Issuance of ordinary shares:
 
On December 23, 2010, the Company issued 3,287,616 ordinary shares at a price of $  6.5 per share and in a total amount of $  20,290 net of issuance expenses. The shares were issued to institutional investors in a private placement. In addition, certain of the purchasers received warrants to purchase up to an aggregate of 1,134,231 ordinary shares at an exercise price of $  8.26 per share.  The warrants are exercisable as of six months from the date of issuance, have a term of three years, and the exercise price is subject to future adjustment for various events, such as stock splits or dividend distributions. Following the Company's dividend distribution and in respect to warrants issuance agreement. The warrants expired on June 2014.
   
c.
Stock Option Plans:
 
Under the Company's 2007 Stock Option Plan, as amended ("the Plan"), options may be granted to employees, officers, directors and consultants of the Company and its subsidiaries. Pursuant to the 2007 Stock Option Plan, the Company reserved for issuance 1,500,000 ordinary shares. In 2012, the Company increased the amount of ordinary shares reserved for issuance by additional 1,000,000 ordinary shares in connection with the 2007 Stock Option Plan (mentioned above). As of December 31, 2014, an aggregate of 1,001,563 ordinary shares of the Company are available for future grants under the Plan. Each option granted under the Plan is exercisable for a period of ten years from the date of the grant of the option. The 2007 Plan will expire on August 1, 2017.
 
The exercise price for each option is determined by the Board of Directors and set forth in the Company's award agreement. Unless determined otherwise by the Board of Directors, the option exercise price shall be equal to or higher than the share market price at the grant date. The options generally vest over 3-4 years. Any option that is forfeited or canceled before expiration becomes available for future grants under the Plans.
 
A summary of employee option activity under the Plans as of December 31, 2014 and changes during the year ended December 31, 2014 are as follows:
 
 
 
 
 
 
 
 
Weighted
 
 
 
 
 
 
 
 
 
 
average
 
 
 
 
 
 
 
 
 
 
remaining
 
 
 
 
 
 
 
 
Weighted
 
contractual
 
Aggregate
 
 
 
Number
 
average
 
term
 
intrinsic
 
 
 
of options
 
exercise
price
 
(in years)
 
value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding at January 1, 2014
 
703,110
 
$
3.16
 
 
6.68
 
$
2,298
 
Granted
 
155,000
 
$
7.47
 
 
 
 
 
 
 
Exercised
 
(115,721)
 
$
1.86
 
 
 
 
 
 
 
Forfeited
 
(3,500)
 
$
4.00
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding at December 31, 2014
 
738,889
 
$
4.26
 
 
6.42
 
$
1,248
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable at December 31, 2014
 
448,639
 
$
2.95
 
 
5.03
 
$
1,348
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested and expected to vest at December 31, 2014
 
738,889
 
$
4.26
 
 
6.42
 
$
1,248
 
 
The weighted-average grant-date fair value of options granted during the years ended December 31, 2012, 2013 and 2014 was $4, $ 6 and $ 3.76, respectively. The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the option holders had all option holders exercised their options on December 31, 2014. This amount is changed based on the market value of the Company's ordinary shares. Total intrinsic value of options exercised during the years ended December 31, 2012, 2013 and 2014 was $ 572, $ 529 and $ 741, respectively. As of December 31, 2014, there was $ 646 of unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plans. This cost is expected to be recognized over a period of approximately three years.
 
The options outstanding as of December 31, 2014, have been separated into ranges of exercise price categories, as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Weighted
 
 
 
 
 
 
Weighted
 
 
 
 
 
average
 
 
 
 
 
 
average
 
 
 
 
 
exercise
 
 
 
 
 
 
remaining
 
Weighted
 
 
 
price
 
 
 
Options
 
contractual life
 
average
 
Options
 
of exercisable
 
Exercise price
 
outstanding
 
(years)
 
exercise price
 
exercisable
 
options
 
In $
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0-1
 
 
4,000
 
 
4.24
 
$
-
 
 
4,000
 
$
-
 
1.01-2
 
 
69,200
 
 
1.85
 
$
1.20
 
 
69,200
 
$
1.20
 
2.01-3
 
 
173,667
 
 
4.80
 
$
2.30
 
 
173,667
 
$
2.30
 
3.01-4
 
 
252,022
 
 
6.12
 
$
3.96
 
 
180,522
 
$
3.95
 
4.01-5
 
 
-
 
 
-
 
$
-
 
 
-
 
$
-
 
5.01-6
 
 
85,000
 
 
8.61
 
$
6.00
 
 
21,250
 
$
6.00
 
6.01-7
 
 
75,000
 
 
9.87
 
$
6.89
 
 
-
 
$
-
 
7.01-8
 
 
-
 
 
-
 
$
-
 
 
-
 
$
-
 
8.01-9
 
 
80,000
 
 
9.36
 
$
8.01
 
 
-
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
738,889
 
 
6.42
 
$
4.26
 
 
448,639
 
$
2.95
 
 
d.
Accumulated other comprehensive income:
 
 
 
December 31,
 
 
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
 
Accumulated realized and unrealized gain on available-for-sale securities, net
 
$
173
 
$
138
 
$
(121)
 
Accumulated foreign currency translation adjustments
 
 
(776)
 
 
(327)
 
 
(5,243)
 
Accumulated unrealized gain (loss) on derivative instruments, net
 
 
17
 
 
17
 
 
17
 
 
 
 
 
 
 
 
 
 
 
 
Total other comprehensive income
 
$
(586)
 
$
(172)
 
$
(5,347)
 
 
e.
On September 4, 2012, the Company's Board of Directors adopted a dividend distribution policy, subject to any applicable law. According to this policy, each year the Company will distribute a dividend of up to 50% of its annual distributable profits. It is possible that the Board of Directors will decide, subject to the conditions stated above, to declare additional dividend distributions. The Company's Board of Directors may at its discretion and at any time, change, whether as a result of a one-time decision or a change in policy, the rate of dividend distributions and/or not to distribute a dividend, all at its discretion.
 
In respect to the policy mentioned above, on September 10, 2012 and on February 14, 2013 , the Company declared a dividend distribution of $  0.10 per share ($ 3,661 in the aggregate) and $  0.12 per share ($ 4,397 in the aggregate) which were paid on October 17, 2012 and on March 14, 2013, respectively. On August 12, 2013 the Company declared a dividend distribution of $  0.09 per share ($ 3,390 in the aggregate) which was paid on September 3, 2013. On February 18, 2014, the Company declared a dividend distribution of $  0.12 per share ($ 4,468 in the aggregate) which was paid on March 14, 2014. On August 19, 2014 the Company declared a dividend distribution of $ 0.095 per share ($ 4,195 in the aggregate) which was paid on September 4, 2014. On February 4, 2015, the Company declared a dividend distribution of $  0.081 per share (see also note 18).
 
f.
     On November 2014, a Company's subsidiary granted one of its executive options exercisable for 1,167 ordinary shares in its subsidiary. The options are vested in equal quarterly installments, over a four year period that commences in January 1, 2013 and concludes in March 31, 2016, if meeting a certain operational margin during 2013, 2014 and 2015. The exercise price of the options is NIS 1 per share.  Total fair value of the grant was calculated based on the Company subsidiary’s fair value on the grant date and totaled NIS 5,910 thousand (NIS 5 thousand per share). 
v2.4.1.9
SELECTED STATEMENTS OF INCOME DATA
12 Months Ended
Dec. 31, 2014
Selected Statement Of Income Data [Abstract]  
Selected Statement Of Income Data [Text Block]
NOTE 14:-
SELECTED STATEMENTS OF INCOME DATA
 
a.
Research and development costs, net:
 
 
 
Year ended December 31,
 
 
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
Total costs
 
$
7,916
 
$
8,419
 
$
9,017
 
Less - capitalized software costs
 
 
(4,969)
 
 
(4,713)
 
 
(4,267)
 
 
 
 
 
 
 
 
 
 
 
 
Research and development, net
 
$
2,947
 
$
3,706
 
$
4,750
 
 
b.
Financial income (expenses), net:
 
Interest income net of bank charges
 
$
20
 
$
(170)
 
$
(156)
 
Interest expenses related to liabilities in connection with acquisitions
 
 
(48)
 
 
(407)
 
 
(152)
 
Interest income from debt instruments
 
 
49
 
 
46
 
 
91
 
Loss arising from foreign currency translation and other
 
 
(11)
 
 
(153)
 
 
(1,569)
 
 
 
 
 
 
 
 
 
 
 
 
Financial income(expenses), net
 
$
10
 
$
(684)
 
$
(1,786)
 
v2.4.1.9
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
NOTE 15:-
COMMITMENTS AND CONTINGENCIES
 
a.
Lease commitments:
 
Certain of the motor vehicles, facilities and equipment of the Company and its subsidiaries are rented under long-term operating lease agreements. Future minimum lease commitments under non-cancelable operating leases as of December 31, 2014, are as follows:
 
2015
 
$
1,798
 
2016
 
 
773
 
2017
 
 
578
 
2018 and thereafter
 
 
583
 
 
 
 
 
 
 
 
$
3,732
 
 
Rent expenses for the years ended December 31, 2012, 2013 and 2014 were approximately $1,701, $1,911 and $1,736, respectively.
 
The Company leases motor vehicles under a cancelable lease agreement. The Company has an option to be released from this lease agreement, which may result in penalties in a maximum amount of $147.
 
The Company currently occupies approximately 59,546 square feet of space based on a lease agreement expiring in December, 2014. The Company has an option to terminate the lease agreement in Israel and India upon six months prior written notice.
 
The aggregated amount of lease commitment for the next 6 months in Israel and India mentioned above is approximately $259.
 
b.
Guarantees and Collaterals:
 
The Company and certain of its subsidiaries have provided three of their clients with performance bank guarantees totaling $295, which are linked to the New Israeli Shekels, all of which will be terminated during 2015 and 2016.
 
Several of the Company’s subsidiaries have pledged their accounts receivables to a financial institution, with respect to a US dollar loan received in 2013 (see also note 11).
 
c.
From time to time, the Company and/or its subsidiaries are subject to legal, administrative and regulatory proceedings, claims, demands and investigations in the ordinary course of business, including claims with respect to intellectual property, contracts, employment and other matters. The Company accrues a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. These accruals are reviewed and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter.
 
Lawsuits have been brought against the Company in the ordinary course of business. The Company intends to defend itself vigorously against those lawsuits.
  
1.
In August 2009, a software company and one of its owners filed an arbitration proceeding against the company and one of its subsidiaries, claiming an alleged breach of a non-disclosure agreement between the parties. The plaintiffs sought damages in the amount of approximately NIS 52 million (approximately $15 million). The arbitrator determined that both the company and its subsidiary breached the non-disclosure agreement. In January 2015 the arbitrator rendered his ruling and determined that the company should pay damages to the plaintiffs. The company financial results of operations include a net impact of $1.6 million resulting from the arbitration. The company is considering its options following this ruling.
   
2.
In addition to the above mentioned legal proceedings, the Company is also involved in various legal proceedings arising in the normal course of its business. Based upon the advice of counsel, the Company does not believe that the ultimate resolution of these matters will have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows.
v2.4.1.9
NET EARNINGS PER SHARE
12 Months Ended
Dec. 31, 2014
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
NOTE 16:-
NET EARNINGS PER SHARE
 
The following table sets forth the computation of basic and diluted net earnings per share:
 
 
 
Year ended December 31,
 
 
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
Numerator for basic and diluted earnings per share - net income available to Magic shareholders
 
$
16,183
 
$
15,880
 
$
15,403
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average ordinary shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator for basic net earnings per share
 
 
36,502,264
 
 
36,835,163
 
 
43,287,523
 
Effect of dilutive securities
 
 
605,406
 
 
458,753
 
 
17,291
 
 
 
 
 
 
 
 
 
 
 
 
Denominator for diluted net earnings per share
 
 
37,107,670
 
 
37,293,916
 
 
43,304,814
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted earnings per share
 
$
0.44
 
$
0.43
 
$
0.36
 
v2.4.1.9
SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS
12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
NOTE 17:-
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 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
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
services
 
IT
professional
services
 
Unallocated
expense
 
Total
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
$
67,453
 
$
77,505
 
$
-
 
$
144,958
 
Expenses
 
 
53,164
 
 
68,846
 
 
3,821
 
 
125,831
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment operating income (loss)
 
$
14,289
 
$
8,659
 
$
(3,821)
 
$
19,127
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
5,917
 
$
2,210
 
$
253
 
$
8,380
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
  
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 following table presents total revenues classified according to geographical destination for the years ended December 31, 2012, 2013 and 2014:
 
 
 
Year ended December 31,
 
 
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
Israel
 
$
11,561
 
$
24,006
 
$
29,198
 
Europe
 
 
29,139
 
 
31,386
 
 
37,409
 
United States
 
 
64,591
 
 
70,872
 
 
78,606
 
Japan
 
 
12,661
 
 
11,965
 
 
11,299
 
Other
 
 
8,428
 
 
6,729
 
 
3,927
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
126,380
 
$
144,958
 
$
164,304
 
 
d.
The Company's long-lived assets are located as follows:
 
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
 
 
 
 
Israel
 
$
54,656
 
$
58,263
 
Europe
 
 
3,117
 
 
1,523
 
United States
 
 
23,287
 
 
22,174
 
Japan
 
 
5,180
 
 
4,786
 
Other
 
 
3,395
 
 
3,291
 
 
 
 
 
 
 
 
 
 
 
$
89,634
 
$
90,039
 
 
e.
The Company does not allocate its assets to its reportable segments; accordingly, asset information by reportable segments is not presented.
 
f.
In 2012, 2013 and 2014, the Company had one customer, included in the IT professional services segment, which accounted for 19%, 13% and 10% of the group revenues, respectively.
v2.4.1.9
SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2014
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
NOTE 18:-
SUBSEQUENT EVENTS
 
a.
On February 25, 2015 the Company entered into a definitive agreement to acquire a 70% stake, with an option to increase the holding to 100%, in an Israeli-based company specializes in software professional services for mainframes and complex large-scale environments. The acquisition is subject to the fulfillment of certain conditions defined in the acquisition agreement.
 
b.
On February 4, 2015, the Company declared a dividend distribution of $  0.081 per share ($ 3,582 in the aggregate) which will be paid on March 11, 2015. The dividend distribution relates to the Company's earnings in the second half of 2014.
v2.4.1.9
SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2014
Accounting Policies [Abstract]  
Use of Estimates, Policy [Policy Text Block]
Use of estimates
 
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. 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. The most significant assumptions are employed in estimates used in determining values of goodwill and identifiable intangible assets and their subsequent impairment analysis, revenue recognition, tax assets and tax positions, legal contingencies, research and development capitalization, contingent consideration related to acquisitions and stock-based compensation costs. Actual results could differ from those estimates.
Foreign Currency Transactions and Translations Policy [Policy Text Block]
Financial statements in United States dollars
 
A substantial portion of the revenues and expenses of the Company and certain of its subsidiaries is generated in U.S. dollars ("dollar"). The Company's management believes that the dollar is the currency of the primary economic environment in which the Company and certain of  its subsidiaries operate. Thus, the functional and reporting currency of the Company and certain of its subsidiaries is the dollar.
 
Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into dollars in accordance with the Financial Accounting Standards Board ("FASB) Accounting Standards Codification ("ASC") 830, "Foreign Currency Matters". All transaction gains and losses of the remeasurement of monetary balance sheet items are reflected in the statements of income as financial income or expenses, as appropriate.
 
For those foreign subsidiaries whose functional currency is not the dollar, all balance sheet amounts have been translated using the exchange rates in effect at each balance sheet date. Statement of income amounts have been translated using the average exchange rate prevailing during each year. Such translation adjustments are reported as a component of other comprehensive income (loss) in equity.
Consolidation, Policy [Policy Text Block]
Principles of consolidation
 
The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions, including profit from intercompany sales not yet realized outside the Group, have been eliminated upon consolidation.
 
Changes in the parent's ownership interest in a subsidiary with no change of control are treated as equity transactions, with any difference between the amount of consideration paid and the change in the carrying amount of the non-controlling interest, recognized in equity.
 
Non-controlling interests of subsidiaries represent the non-controlling share of the total comprehensive income (loss) of the subsidiaries and fair value of the net assets upon the acquisition of the subsidiaries. The non-controlling interests are presented in equity separately from the equity attributable to the equity holders of the Company. Redeemable non-controlling interests are classified as mezzanine equity, separate from permanent equity, on the consolidated balance sheets and measured at each reporting period at the higher of their redemption amount or the Non controlling interest book value, in accordance with the requirements of ASC 810 "Consolidation" and ASC 480-10-S99-3A, "Distinguishing Liabilities from Equity".
 
The following table provides a reconciliation of the redeemable non-controlling interests:
 
January 1, 2014
 
2,721
 
Net income attributable to redeemable non-controlling interests
 
425
 
Non-controlling interest as part of acquisitions
 
158
 
Foreign currency translation adjustments
 
(374)
 
 
 
 
 
December 31, 2014
 
2,930
 
Cash and Cash Equivalents, Policy [Policy Text Block]
Cash and cash equivalents
 
Cash and cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired.
Cash and cash equivalent includes amounts held primarily in NIS, U.S. dollars, Euro, Japanese Yen and British Pound.
Short Term Deposits [Policy Text Block]
Short-term deposits and restricted deposits
 
Short-term deposits include deposits with original maturities of more than three months and less than one year. Such deposits are presented at cost (including accrued interest) which approximates their fair value. Restricted deposits are used to secure certain Group's ongoing projects and are classified under other receivables.
Marketable Securities, Policy [Policy Text Block]
Marketable securities
 
The Company accounts for investments in marketable securities in accordance with ASC No. 320, “Investments – Debt and Equity Securities”. Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. 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 equity. Realized gains and losses on sale of investments are included in “financial income, net” and are derived using the specific identification method for determining the cost of securities.
 
The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in “financial income, net”.
 
The Company recognizes an impairment charge when a decline in the fair value of its investments in debt 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, the amount of impairment is recognized in “net gain (impairment net of gains) on sale of marketable securities previously impaired” in the statements of income and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income.
Property, Plant and Equipment, Policy [Policy Text Block]
Property and equipment, net
 
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates:
 
 
 
Years
 
 
 
 
 
Computers and peripheral equipment
 
3
 
Office furniture and equipment
 
7 - 15 (mainly 7)
 
Motor vehicles
 
7
 
Software
 
3 – 5 (mainly 5)
 
Leasehold improvements
 
Over the shorter of the lease term or useful economic life
 
Business Combinations Policy [Policy Text Block]
Business combinations
 
The Company accounts for business combinations under ASC 805, "Business Combinations". ASC 805 requires recognition of assets acquired, liabilities assumed, non-controlling interest and redeemable non-controlling interest in the acquiree at the acquisition date, measured at their fair values as of that date. As required by ASC 820, "Fair Value Measurements and disclosures" the Company applies assumptions that marketplace participants would consider in determining the fair value of assets acquired, liabilities assumed, non-controlling interest and redeemable non-controlling interest in the acquiree at the acquisition 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 earnings.
Consolidation, Variable Interest Entity, Policy [Policy Text Block]
Variable interest entities
 
ASC 810, "Consolidation" provides a framework for identifying variable interest entities (or "VIEs") and determining when a company should include the assets, liabilities, non-controlling interests and results of activities of a VIE in its consolidated financial statements.
 
The Company's assessment of whether an entity is a VIE and the determination of the primary beneficiary requires judgment and involves the use of significant estimates and assumptions. Those include, among others, forecasted cash flows, their respective probabilities and the economic value of certain preference rights. In addition, such assessment also involves estimates of whether a group entity can finance its current activities, until it reaches profitability, without additional subordinated financial support.
 
Effective as of January 1, 2010, the Company applies updated guidance for the consolidation of VIEs. The guidance qualitative approach, based on which enterprise has both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the variable interest entity. Determination about whether an enterprise should consolidate a VIE is required to be evaluated continuously as changes to existing relationships or future transactions.
 
One of the Company's U.S. based consulting and staffing services business acquired through one of its wholly owned subsidiaries on January 17, 2010 is considered to be a VIE. The subsidiary is the primary beneficiary of the VIE, as a result of the fact that it holds the power to direct the activities of the acquired business, which significantly impacts its economic performance, and has the right to receive benefits accruing from the acquired business.
Research and Development Expense, Policy [Policy Text Block]
Research and development costs
 
Research and development costs incurred in the process of software development before establishment of technological feasibility are charged to expenses as incurred. Costs incurred subsequent to the establishment of technological feasibility are capitalized according to the principles set forth in ASC 985-20, "Costs of Software to be Sold, Leased or Marketed".
 
The Company and its subsidiaries establish technological feasibility upon completion of a detailed program design or working model.
 
Research and development costs incurred in the process of developing product enhancements are generally charged to expenses as incurred.
 
Capitalized software costs are amortized on a product by product basis by the straight-line method over the estimated useful life of the software product (between 4-5 years). The Company assesses the recoverability of these intangible assets on a regular basis by determining whether the amortization of the asset over its remaining economical useful life can be recovered through undiscounted future operating cash flows from the specific software product sold. During the years ended December 31, 2012, 2013 and 2014, no such unrecoverable amounts were identified.
Long Lived Assets [Policy Text Block]
Long-Lived Assets
 
The Company long-lived, non-current assets are comprised mainly of goodwill, identifiable intangible assets and property, plants and equipment.
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]
Impairment of long-lived assets and intangible assets subject to amortization
 
The Company's long-lived assets are reviewed for impairment in accordance with ASC 360, "Property, Plant and Equipment" 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.
 
As required by ASC 820, "Fair Value Measurements and disclosures" the Company applies assumptions that marketplace participants would consider in determining the fair value of long-lived assets (or asset groups).
 
Intangible assets with finite lives are amortized over their economic useful life using a method of amortization that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used up. Distribution rights, acquired technology and non-compete were amortized on a straight line basis and customer relationships and backlog were amortized on an accelerated method basis over a period between 3.5 - 15 years based on the intangible assets identified.
 
During the years ended December 31, 2012, 2013 and 2014, no impairment was identified.
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]
Goodwill
 
Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Under ASC 350,"Intangibles - Goodwill and Other", goodwill is subject to an annual impairment test or more frequently if impairment indicators are present. Goodwill impairment is deemed to exist if the net book value of a reporting unit exceeds its estimated fair value. As of December 31, 2014, the Company operates in four reporting units within its operating  segments.
 
Goodwill reflects the excess of the consideration paid or transferred plus the fair value of contingent consideration and any non-controlling interest in the acquiree at the acquisition date over the fair values of the identifiable net assets acquired. The goodwill impairment test is performed according to the following principles:
 
An initial qualitative assessment of the likelihood of impairment may be performed. If this step does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the impairment test is performed.
 
In step one of the impairment test, the company compares the fair value of the reporting units to the carrying value of net assets allocated to the reporting units. If the fair value of the reporting unit exceeds the carrying value of the net assets allocated to that unit, goodwill is not impaired, and no further testing is required. Otherwise, the company must perform the second step of the impairment test to measure the amount of the impairment.
 
In the second step, the reporting unit’s fair value is allocated to all the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that simulates the business combination principles to derive an implied goodwill value. If the implied fair value of the reporting unit’s goodwill is less than its carrying value, the difference is recorded as impairment
  
The Company performed an annual impairment tests as of December 31, of each of 2012, 2013 and 2014 and did not identify any impairment losses (see Note 9).
Revenue Recognition, Policy [Policy Text Block]
Revenue recognition
 
The Company derives its revenues from licensing the rights to use software (proprietary and non-proprietary), provision of related professional services, maintenance and technical support as well as from other IT professional services. The Company sells its products and services primarily through its direct sales force and indirectly through distributors and value added resellers.
 
The Company accounts for its software sales in accordance with ASC 985-605, "Software Revenue Recognition". Software license revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the vendor's fee is fixed or determinable, no further obligation exists and collectability is probable.
 
Maintenance and support includes annual maintenance contracts providing for unspecified upgrades for new versions and enhancements on a when-and-if-available basis for an annual fee. The right for an unspecified upgrade for new versions and enhancements on a when-and-if-available basis do not specify the features, functionality and release date of future product enhancements for the customer to know what will be made available and the general timeframe in which it will be delivered.
 
Maintenance and support revenue included in multiple element arrangements is deferred and recognized on a straight-line basis over the term of the maintenance and support agreement.
 
As required by ASC 985-605, the Company allocates revenues to the software component of its multiple-element arrangements using the residual method when vendor specific objective evidence ("VSOE") of fair value exists for the undelivered elements of the support and maintenance agreements. VSOE is based on the price charged when an element is sold separately or renewed. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is allocated to the delivered elements and is recognized as revenue.
 
The Company generally does not grant a right of return to its customers. When a right of return exists, the Company defers revenue until the right of return expires, at which time revenue is recognized provided that all other revenue recognition criteria are met.
 
Revenue from professional services related to both software and the IT professional services businesses consists of billable hours for services provided and is recognized as the services are rendered.
 
Arrangements that include professional services bundled with licensed software and other software related elements, are evaluated to determine whether those services are essential to the functionality of other elements of the arrangement. When services are considered essential to the software, revenues under the arrangement are recognized using contract accounting based on ASC 605-35, "Construction-Type and Production-Type Contracts", on a percentage of completion method based on inputs measures. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are first determined, in the amount of the estimated loss for the entire contract. During the years ended December 31, 2012, 2013 and 2014, no such estimated losses were identified.
 
When professional services are not considered essential to the functionality of other elements of the arrangement, revenue allocable to the services is recognized as the services are performed, using VSOE of fair value. In most cases, the Company has determined that the services are not considered essential to the functionality of other elements of the arrangement.
 
Deferred revenue includes unearned amounts received under maintenance, support and services contracts, and amounts received from customers but not yet recognized as revenues.
 
Revenue from third-party sales is recorded at a gross or net amount according to certain indicators. The application of these indicators for gross and net reporting of revenue depends on the relative facts and circumstances of each sale and requires significant judgment.
Severance Pay [Policy Text Block]
Severance pay
 
The Company's and its Israeli subsidiary's obligation for severance pay with respect to their Israeli employees (for the period for which the employees were not included under Section 14 of the Severance Pay Law, 1963) is calculated pursuant to the Israeli Severance Pay Law based on the most recent salary of the employees multiplied by the number of years of employment as of the balance sheet date, and are presented on an undiscounted basis (referred to as the "Shut Down Method"). Employees are entitled to one month's salary for each year of employment or a portion thereof. The Company's obligation for all of its Israeli employees is fully provided for by monthly deposits with insurance policies and by an accrual.
 
The Group has a number of savings plans in the United States that qualify under Section 401(k) of the Internal Revenue Code. U.S employees may contribute up to 100% of their pretax salary, but not more than statutory limits. Matching contributions are discretionary and are up to 3% of the participants contributions.  When contributions are granted, they are invested in proportion to each participant's voluntary contributions in the investment options provided under the plan.
 
The carrying value of deposited funds includes profits (losses) accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligations pursuant to the Israeli Severance Pay Law or labor agreements and are recorded as an asset in the Company's consolidated balance sheet.
 
The Company and its Israeli subsidiaries’ agreements with most of their Israeli employees are in accordance with Section 14 of the Severance Pay Law -1963, mandating that upon termination of such employees' employment; all the amounts accrued in their insurance policies shall be released to them instead of severance compensation. Upon release of deposited amounts to the employee, no additional liability exists between the parties regarding the matter of severance pay and no additional payments shall be made by the Company or its subsidiaries to the employee. Further, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company and its subsidiaries are is legally released from their obligations to employees once the deposit amounts have been paid.
 
Severance expenses for the years ended December 31, 2012, 2013 and 2014 amounted to approximately $  829, $  1,371 and $ 1,673, respectively.
Advertising Costs, Policy [Policy Text Block]
Advertising expenses
 
Advertising expenses are charged to selling and marketing expenses, as incurred. Advertising expenses for the years ended December 31, 2012, 2013 and 2014 amounted to $  556, $  306 and $ 466, respectively.
Income Tax, Policy [Policy Text Block]
Income taxes
 
The Company and its subsidiaries account for income taxes in accordance with ASC 740, "Income Taxes". The ASC prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined based on 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 and its subsidiaries provide a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value. Deferred tax assets and liabilities are classified as current or non-current according to the expected reversal dates.
 
The Company utilizes a two-step approach for recognizing and measuring uncertain tax positions accounted for in accordance with an amendment of ASC 740 "Income Taxes." Under the first step the Company evaluates a 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, based on its 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 with the tax authorities. The Company accrued interest and penalties related to unrecognized tax benefits in its provisions for income taxes.
Earnings Per Share, Policy [Policy Text Block]
Basic and diluted net earnings per share
 
Basic net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted net earnings per share are computed based on the weighted average number of ordinary shares outstanding during each year, plus dilutive potential ordinary shares considered outstanding during the year, in accordance with ASC 260, "Earnings Per Share."
 
A portion of the outstanding stock options have been excluded from the calculation of the diluted earnings per share because such securities are anti-dilutive. The total weighted average number of Ordinary shares related to the outstanding options excluded from the calculations of diluted earnings per share was 669,887, 536,877 and 35,010 for the years ended December 31, 2012, 2013 and 2014, respectively.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]
Stock-based compensation
 
The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" which 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 portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statement of income.
 
The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on the accelerated method over the requisite service period of each of the awards, net of estimated forfeitures.
 
The Company measures and recognizes compensation expense for share-based awards based on estimated fair values on the date of grant using the Binomial option-pricing model ("the Binomial model"). The Binomial model for option pricing requires a number of assumptions, of which the most significant are the suboptimal exercise factor and expected stock price volatility. The suboptimal exercise factor is estimated based on employees' historical option exercise behavior.
 
The suboptimal exercise factor is the ratio by which the stock price must increase over the exercise price before employees are expected to exercise their stock options. Expected volatility is based upon actual historical stock price movements and was calculated as of the grant dates for different periods, since the Binomial model can be used for different expected volatilities for different periods. The risk-free interest rate is based on the yield from U.S. Treasury zero-coupon bonds with an equivalent term to the contractual term of the options. Historically the Company did not hold any foreseeable plans to pay dividends and therefore used an expected dividend yield of zero in its past years option pricing models. In September 2012, the Company adopted a dividend distribution policy according to which it will distribute in each year a dividend of up to 50% of its annual distributable profits. 
 
The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. Estimated forfeitures are based on actual historical pre-vesting forfeitures.
 
For awards with performance conditions, compensation cost is recognized over the requisite service period if it is 'probable' that the performance conditions will be satisfied, as defined in ASC 450-20-20, "Loss Contingencies."
 
The fair value for the Company's stock options granted to employees and directors was estimated using the following assumptions:
 
 
 
2013
 
2014
 
 
 
 
 
 
 
Dividend yield
 
0%
 
0%
 
Expected volatility
 
32% - 59%
 
32% - 59%
 
Risk-free interest rate
 
0.1% - 2.6%
 
0.1% - 2.6%
 
Expected forfeiture (employees)
 
-
 
-
 
Expected forfeiture (executives)
 
-
 
-
 
Contractual term of up to
 
10 years
 
10 years
 
Suboptimal exercise multiple (employees)
 
2
 
-
 
Suboptimal exercise multiple (executives)
 
2
 
2
 
 
During the years ended December 31, 2012, 2013 and 2014, the Company recognized stock-based compensation expense related to employee stock options in the amount of $  515, $ 325 and $ 1,557, respectively, as follows:
 
 
 
Year ended December 31,
 
 
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
Cost of revenue
 
$
16
 
$
11
 
$
30
 
Research and development
 
 
114
 
 
67
 
 
29
 
Selling and marketing
 
 
82
 
 
85
 
 
220
 
General and administrative
 
 
303
 
 
162
 
 
1,278
 
 
 
 
 
 
 
 
 
 
 
 
Total stock-based compensation expense
 
$
515
 
$
325
 
$
1,557
 
Concentration Risk, Credit Risk, Policy [Policy Text Block]
Concentrations of credit risk
 
Financial instruments that potentially subject the Company and its subsidiaries to concentration of credit risk consist principally of cash and cash equivalents, short-term deposits, marketable securities, trade receivables and foreign currency derivative contracts.
  
The Company's cash and cash equivalents and short-term deposits are invested primarily in deposits with major banks worldwide, mainly in the United States and Israel, however, such cash and cash equivalents and short-term deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. The Company believes that such institutions are of high rating and therefore bear low risk.
 
The Company's marketable securities include investments in commercial and government bonds and foreign banks. The Company's marketable securities are considered to be highly liquid and have a high credit standing. In addition, management considered its portfolios in foreign banks to be well-diversified (also refer to Note 4).
 
Trade receivables of the Company and its subsidiaries are derived from sales to customers located primarily in the United States, Europe, Japan, South Africa and Israel. The Company performs ongoing credit evaluations of its customers and excluding 2013 to date has not experienced any material losses. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. The expense related to doubtful accounts for the years ended December 31, 2012, 2013 and 2014 was $  420, $ 1,285 and $ 735, respectively.
 
The Company has entered into foreign exchange forward contracts intended to protect against the changes in value of forecasted non-dollar currency cash flows related to salary and related expenses. These derivative instruments are designed to offset the Company's non-dollar currency exposure (see "Derivative instruments" below).
Fair Value Measurement, Policy [Policy Text Block]
Fair value measurements
 
The Company accounts for certain assets and liabilities at fair value under ASC 820, "Fair Value Measurements and Disclosures". Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
 
Level 1 -
Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets;
 
Level 2 -
Significant other observable inputs based on market data obtained from sources independent of the reporting entity;
 
Level 3 -
Unobservable inputs which are supported by little or no market activity;
 
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 Company categorized each of its fair value measurements in one of these three levels of hierarchy.
  
Assets and liabilities measured at fair value on a recurring basis are comprised of marketable securities, foreign currency forward contracts and contingent consideration of acquisitions (see Note 5).
 
The carrying amounts reported in the balance sheet for cash and cash equivalents, short term bank deposits, trade receivables, other accounts receivable, short-term bank credit, trade payables and other accounts payable approximate their fair values due to the short-term maturities of such instruments.
Comprehensive Income, Policy [Policy Text Block]
Comprehensive income (loss)
 
The Company accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income." This Statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its items of other comprehensive income (loss) relate to gain and loss on foreign currency translation adjustments, unrealized gain and loss on derivative instruments designated as hedges and unrealized gain and loss on available-for-sale marketable securities.
Derivatives, Policy [Policy Text Block]
Derivative instruments
 
A material portion of the Company's revenues, expenses and earnings is exposed to changes in foreign exchange rates. Depending on market conditions, foreign exchange risk is also managed through the use of derivative financial instruments. These financial instruments serve to protect net income against the impact of the translation into U.S. dollars of certain foreign exchange-denominated transactions. The derivative instruments hedge or offset exposures to Euro, Japanese Yen and NIS exchange rate fluctuations.
 
ASC 815, "Derivatives and Hedging," requires companies to recognize all of their derivative instruments as either assets or liabilities in their balance sheet at fair value. Derivative instruments that are designated and qualify as hedges of forecasted transactions (i.e., cash flow hedges) are carried at fair value with the effective portion of a derivative's gain or loss recorded in other comprehensive income and subsequently recognized in earnings in the same period or periods in which the hedged forecasted transaction affects earnings. For derivative instruments that are not designated and qualified as hedging instruments, the gains or losses on the derivative instruments are recognized in current earnings during the period of the change in fair values.
 
The derivative instruments used by the Company are designed to reduce the market risk associated with the exposure of its underlying transactions to fluctuations in currency exchange rates.
  
The Company has instituted a foreign currency cash flow hedging program in order to hedge against the risk of overall changes in future cash flows. The Company hedges portions of its forecasted expenses denominated in NIS with currency forwards contracts and put and call options. These forward and option contracts are designated as cash flow hedges.
 
For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, is recognized in current earnings during the period of change.
 
For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change.
 
The notional principal of foreign exchange contracts to purchase NIS with U.S. dollars was $ 0 and  $ 1,736 as of December 31, 2013 and 2014, respectively.
 
At December 31, 2014, the Company did not have any cash flow hedges.
 
The following tables present fair value amounts and gains and losses of derivative instruments and related hedged items:
 
 
 
Fair values of derivative instruments
 
 
 
Assets
 
 
 
 
 
December 31,
 
 
 
Balance sheet item
 
2013
 
 
2014
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging
 
"Other accounts receivable and prepaid expenses"
 
$
-
 
$
9
 
 
 
 
 
 
 
 
 
 
 
Total derivatives
 
 
 
$
-
 
$
9
 
 
 
 
 
 
Gain (loss)
 
 
 
 
 
recognized in the
 
 
 
Statements
 
statements of income
 
 
 
of
 
Year ended December 31,
 
 
 
income item
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging:
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
 
"Financial expenses, net"
 
 
245
 
 
139
 
 
24
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total derivatives
 
 
 
$
245
 
$
139
 
$
24
 
Reclassification, Policy [Policy Text Block]
Reclassification
 
Certain amounts in prior years' financial statements have been reclassified to conform with the current year's presentation. The reclassification had no effect on previously reported net income, equity or cash flow.
New Accounting Pronouncements, Policy [Policy Text Block]
Recently Issued Accounting Pronouncement:
 
In August 2014, the Financial Accounting Standards Board (“FASB”) issued amended guidance related to disclosure of uncertainties about an entity’s ability to continue as a going concern. The new guidance requires management to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, as necessary, to provide related footnote disclosures. The guidance has an effective date of December 31, 2016.
 
In May 2014, Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)", a comprehensive new revenue recognition standard that will supersede existing revenue guidance under US GAAP and IFRS ("ASU 2014-09"). ASU 2014-09's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for annual periods beginning after December 15, 2016, including interim periods within that period. Early adoption is not permitted under US GAAP. The Company is currently evaluating the method of adoption, as well as the effect that adoption of this ASU will have on its consolidated financial statements. 
 
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-08 (ASU 2014-08) “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The new guidance limits the presentation of discontinued operations to business circumstances when the disposal of the business operation represents a strategic shift that has had or will have a major effect on operations and financial results. This guidance is effective for fiscal years beginning January 1, 2015. The company believes that the adoption of this new standard will not materially impact its consolidated financial statements.
v2.4.1.9
SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2014
Accounting Policies [Abstract]  
Redeemable Noncontrolling Interest [Table Text Block]
The following table provides a reconciliation of the redeemable non-controlling interests:
 
January 1, 2014
 
2,721
 
Net income attributable to redeemable non-controlling interests
 
425
 
Non-controlling interest as part of acquisitions
 
158
 
Foreign currency translation adjustments
 
(374)
 
 
 
 
 
December 31, 2014
 
2,930
 
Property, Plant and Equipment [Table Text Block]
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the assets, at the following annual rates:
 
 
 
Years
 
 
 
 
 
Computers and peripheral equipment
 
3
 
Office furniture and equipment
 
7 - 15 (mainly 7)
 
Motor vehicles
 
7
 
Software
 
3 – 5 (mainly 5)
 
Leasehold improvements
 
Over the shorter of the lease term or useful economic life
 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
The fair value for the Company's stock options granted to employees and directors was estimated using the following assumptions:
 
 
 
2013
 
2014
 
 
 
 
 
 
 
Dividend yield
 
0%
 
0%
 
Expected volatility
 
32% - 59%
 
32% - 59%
 
Risk-free interest rate
 
0.1% - 2.6%
 
0.1% - 2.6%
 
Expected forfeiture (employees)
 
-
 
-
 
Expected forfeiture (executives)
 
-
 
-
 
Contractual term of up to
 
10 years
 
10 years
 
Suboptimal exercise multiple (employees)
 
2
 
-
 
Suboptimal exercise multiple (executives)
 
2
 
2
 
Schedule Of Stock Based Compensation Expense [Table Text Block]
During the years ended December 31, 2012, 2013 and 2014, the Company recognized stock-based compensation expense related to employee stock options in the amount of $  515, $ 325 and $ 1,557, respectively, as follows:
 
 
 
Year ended December 31,
 
 
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
Cost of revenue
 
$
16
 
$
11
 
$
30
 
Research and development
 
 
114
 
 
67
 
 
29
 
Selling and marketing
 
 
82
 
 
85
 
 
220
 
General and administrative
 
 
303
 
 
162
 
 
1,278
 
 
 
 
 
 
 
 
 
 
 
 
Total stock-based compensation expense
 
$
515
 
$
325
 
$
1,557
 
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
The following tables present fair value amounts and gains and losses of derivative instruments and related hedged items:
 
 
 
Fair values of derivative instruments
 
 
 
Assets
 
 
 
 
 
December 31,
 
 
 
Balance sheet item
 
2013
 
 
2014
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging
 
"Other accounts receivable and prepaid expenses"
 
$
-
 
$
9
 
 
 
 
 
 
 
 
 
 
 
Total derivatives
 
 
 
$
-
 
$
9
 
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
 
 
 
 
Gain (loss)
 
 
 
 
 
recognized in the
 
 
 
Statements
 
statements of income
 
 
 
of
 
Year ended December 31,
 
 
 
income item
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging:
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
 
"Financial expenses, net"
 
 
245
 
 
139
 
 
24
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total derivatives
 
 
 
$
245
 
$
139
 
$
24
 
v2.4.1.9
BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS (Tables)
12 Months Ended
Dec. 31, 2014
App Builder [Member]  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed:
 
Net liabilities
 
$
(3,248)
 
Intangible assets
 
 
7,251
 
Goodwill
 
 
8,702
 
 
 
 
 
 
Net assets acquired
 
$
12,705
 
Comm It Group [Member]  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The following table summarize the fair value of the assets and liabilities acquired:
 
 
 
As reported
 
 
 
 
 
 
 
on December
 
 
 
 
 
 
 
31, 2012
 
Adjustment
 
Modified
 
 
 
 
 
 
 
 
 
Net assets
 
$
1,219
 
$
14
 
$
1,233
 
Non-controlling interest
 
 
(1,880)
 
 
130
 
 
(1,750)
 
Intangible assets
 
 
3,873
 
 
397
 
 
4,270
 
Goodwill
 
 
5,809
 
 
439
 
 
6,248
 
Deferred tax liability, net
 
 
-
 
 
(1,068)
 
 
(1,068)
 
 
 
 
 
 
 
 
 
 
 
 
Net assets acquired
 
$
9,021
 
$
(88)
 
$
8,933
 
Pilat Europe Limited Ltd and Pilat North America Inc [Member]  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:
 
Net assets
 
$
490
 
Intangible assets
 
 
715
 
 
 
 
 
 
Total assets acquired
 
$
1,205
 
Valinor Ltd [Member]  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:
 
Net assets
 
$
119
 
Intangible assets
 
 
464
 
Goodwill
 
 
1,035
 
 
 
 
 
 
Total assets acquired
 
$
1,618
 
Dario solutions IT Ltd [Member]  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:
 
Net Assets
 
$
371
 
Intangible assets
 
 
707
 
Goodwill
 
 
2,645
 
 
 
 
 
 
Total assets acquired
 
$
3,723
 
Allstates Technical Services, LLC [Member]  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:
 
Net Assets
 
$
3,063
 
Intangible assets
 
 
2,874
 
Goodwill
 
 
5,026
 
 
 
 
 
 
Total assets acquired
 
$
10,963
 
Formula Telecom Solutions Ltd [Member]  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The following table summarizes the estimated fair values of the assets acquired and liabilities at the date of acquisition:
 
Net Assets
 
$
(57)
 
Intangible assets
 
 
2,951
 
Goodwill
 
 
2,906
 
 
 
 
 
 
Total assets acquired
 
$
5,800
 
v2.4.1.9
MARKETABLE SECURITIES (Tables)
12 Months Ended
Dec. 31, 2014
Marketable Securities [Abstract]  
Schedule of Available-for-sale Securities Reconciliation [Table Text Block]
The Group invests in marketable debt and equity securities, which are classified as available-for-sale. The following is a summary of marketable securities:
 
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
Amortized
cost
 
Unrealized
losses
 
Unrealized
gains
 
Market
value
 
Amortized
cost
 
Unrealized
losses
 
Unrealized
gains
 
Market
value
 
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Governmental bonds
 
$
407
 
$
-
 
$
3
 
$
410
 
$
11,916
 
$
(232)
 
$
-
 
$
11,684
 
Commercial bonds
 
 
190
 
 
-
 
 
25
 
 
215
 
 
-
 
 
-
 
 
-
 
 
-
 
Equity funds
 
 
119
 
 
-
 
 
110
 
 
229
 
 
116
 
 
-
 
 
115
 
 
231
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total available-for-sale marketable securities
 
$
716
 
$
-
 
$
138
 
$
854
 
$
12,032
 
$
(232)
 
$
115
 
$
11,915
 
Investments Classified by Contractual Maturity Date [Table Text Block]
Marketable securities with contractual maturities from one to three years are as follows:
 
 
 
 
 
 
Unrealized gains (losses)
 
 
 
 
 
 
Amortized
cost
 
Gains
 
Losses
 
Market value
 
Due between one to three years
 
$
6,219
 
$
-
 
$
(124)
 
$
6,095
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
6,219
 
$
-
 
$
(124)
 
$
6,095
 
 
Marketable securities with contractual maturities from three to five years are as follows:
 
 
 
 
 
 
Unrealized gains (losses)
 
 
 
 
 
 
Amortized
cost
 
Gains
 
Losses
 
Market value
 
Due between three to five years
 
$
5,697
 
$
-
 
$
(108)
 
$
5,589
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
5,697
 
$
-
 
$
(108)
 
$
5,589
 
Schedule Of Changes In Other Comprehensive Income Of Available For Sale Securities [Table Text Block]
The following is the change in the other comprehensive income of available-for-sale securities during 2013: 
 
 
 
Other
 
 
 
comprehensive
 
 
 
income
 
 
 
 
 
 
Other comprehensive income from available-for-sale securities as of January 1, 2013
 
$
173
 
 
 
 
 
 
Unrealized loss from available-for-sale securities
 
 
(35)
 
 
 
 
 
 
Other comprehensive income from available-for-sale securities as of December 31, 2013
 
$
138
 
 
The following is the change in the other comprehensive income of available-for-sale securities during 2014:
 
 
 
Other
comprehensive
income
 
 
 
 
 
 
Other comprehensive income from available-for-sale securities as of January 1, 2014
 
$
138
 
 
 
 
 
 
Unrealized losses from available-for-sale securities
 
 
(259)
 
 
 
 
 
 
Other comprehensive income from available-for-sale securities as of December 31, 2014
 
$
(121)
 
v2.4.1.9
FAIR VALUE MEASUREMENTS (Tables)
12 Months Ended
Dec. 31, 2014
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The Company's financial assets measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments as of the following dates:
 
 
 
December 31, 2013
 
 
 
Fair value measurements using input type
 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Government bonds
 
$
410
 
$
-
 
$
-
 
$
410
 
Corporate bonds
 
 
-
 
 
215
 
 
-
 
 
215
 
Equity fund
 
 
229
 
 
-
 
 
-
 
 
229
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total financial assets
 
$
639
 
$
215
 
$
-
 
$
854
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration
 
$
-
 
$
-
 
$
3,981
 
$
3,981
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total financials liabilities
 
$
-
 
$
-
 
$
3,981
 
$
3,981
 
 
 
 
December 31, 2014
 
 
 
Fair value measurements using input type
 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate bonds
 
$
-
 
$
11,684
 
$
-
 
$
11,684
 
Equity fund
 
 
231
 
 
-
 
 
-
 
 
231
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total financial assets
 
$
231
 
$
11,684
 
$
-
 
$
11,915
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Contingent consideration
 
$
-
 
$
-
 
$
382
 
$
382
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total financials liabilities
 
$
-
 
$
-
 
$
382
 
$
382
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
Fair value measurements using significant unobservable inputs (Level 3):
 
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
 
 
 
 
 
Opening balance
 
$
1,942
 
$
3,981
 
Increase in contingent consideration
 
 
2,459
 
 
250
 
Payment in contingent consideration
 
 
(750)
 
 
(3,053)
 
Change in fair value of contingent consideration
 
 
-
 
 
(948)
 
Amortization of interest
 
 
330
 
 
152
 
 
 
 
 
 
 
 
 
Closing balance
 
$
3,981
 
$
382
 
v2.4.1.9
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Tables)
12 Months Ended
Dec. 31, 2014
Receivables [Abstract]  
Schedule Of Accounts Receivable and Prepaid Expenses [Table Text Block]
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
 
 
 
 
Prepaid expenses
 
$
1,156
 
$
1,159
 
Government authorities
 
 
862
 
 
1,081
 
Deferred tax assets, net
 
 
1,949
 
 
554
 
Restricted deposits
 
 
289
 
 
149
 
Related parties
 
 
92
 
 
447
 
Other
 
 
861
 
 
583
 
 
 
 
 
 
 
 
 
 
 
$
5,209
 
$
3,973
 
v2.4.1.9
PROPERTY AND EQUIPMENT (Tables)
12 Months Ended
Dec. 31, 2014
Property, Plant and Equipment [Abstract]  
Property Plant And Equipment And Intangible Assets [Table Text Block]
 
 
December 31,
 
 
 
2013
 
2014
 
Cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leasehold improvements
 
$
546
 
$
523
 
Computers and peripheral equipment
 
 
10,106
 
 
12,942
 
Office furniture and equipment
 
 
2,639
 
 
2,620
 
Motor vehicles
 
 
98
 
 
177
 
Software
 
 
1,962
 
 
3,478
 
 
 
 
 
 
 
 
 
 
 
 
15,351
 
 
19,740
 
Accumulated depreciation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leasehold improvements
 
 
288
 
 
175
 
Computers and peripheral equipment
 
 
9,657
 
 
12,426
 
Office furniture and equipment
 
 
1,947
 
 
1,985
 
Motor vehicles
 
 
68
 
 
133
 
Software
 
 
1,618
 
 
3,016
 
 
 
 
 
 
 
 
 
 
 
 
13,578
 
 
17,735
 
 
 
 
 
 
 
 
 
Depreciated cost
 
$
1,773
 
$
2,005
 
v2.4.1.9
INTANGIBLE ASSETS (Tables)
12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets [Table Text Block]
a.
Intangible assets:
 
 
 
December 31,
 
 
 
2013
 
2014
 
Original amounts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized software costs
 
$
59,069
 
$
63,260
 
Customer relationships
 
 
23,843
 
 
26,618
 
Backlog and non-compete agreement
 
 
1,554
 
 
1,623
 
Acquired technology
 
 
3,112
 
 
4,862
 
 
 
 
 
 
 
 
 
 
 
 
87,578
 
 
96,363
 
Accumulated amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized software costs
 
 
45,075
 
 
49,072
 
Customer relationships
 
 
8,895
 
 
12,817
 
Backlog and non-compete agreement
 
 
630
 
 
1,142
 
Acquired technology
 
 
429
 
 
789
 
 
 
 
 
 
 
 
 
 
 
 
55,029
 
 
63,820
 
 
 
 
 
 
 
 
 
Intangible assets, net
 
$
32,549
 
$
32,543
 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]
c.
The estimated future amortization expense of intangible assets as of December 31, 2014 is as follows:
 
2015
 
 
8,230
 
2016
 
 
7,140
 
2017
 
 
5,764
 
2018
 
 
4,383
 
2019
 
 
3,043
 
2020 and thereafter
 
 
3,983
 
 
 
 
 
 
 
 
$
32,543
 
v2.4.1.9
GOODWILL (Tables)
12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill [Table Text Block]
Changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2014 according to the Company's reporting units are as follows (see also 16):
 
 
 
IT
professional
services
 
Software services
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
As of January 1, 2013
 
$
18,036
 
$
26,627
 
$
44,663
 
 
 
 
 
 
 
 
 
 
 
 
Business combination
 
 
9,007
 
 
1,036
 
 
10,043
 
Classifications
 
 
430
 
 
-
 
 
430
 
Foreign currency translation adjustments
 
 
1,022
 
 
(845)
 
 
177
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2013
 
 
28,495
 
 
26,818
 
 
55,313
 
 
 
 
 
 
 
 
 
 
 
 
Business combination
 
 
-
 
 
3,664
 
 
3,664
 
Classifications
 
 
-
 
 
(496)
 
 
(735)
 
Foreign currency translation adjustments
 
 
(1,906)
 
 
(1,085)
 
 
(2,752)
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2014
 
 
26,589
 
 
28,901
 
 
55,490
 
v2.4.1.9
ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE (Tables)
12 Months Ended
Dec. 31, 2014
Accounts Payable and Accrued Liabilities [Abstract]  
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
 
 
 
 
Employees and payroll accruals
 
$
6,675
 
$
7,243
 
Accrued expenses
 
 
2,925
 
 
5,191
 
Deferred and contingent payments related to acquisitions
 
 
4,167
 
 
170
 
Government authorities
 
 
2,495
 
 
1,395
 
Other
 
 
675
 
 
1,014
 
 
 
 
 
 
 
 
 
 
 
$
16,937
 
$
15,013
 
v2.4.1.9
LONG TERM DEBT (Tables)
12 Months Ended
Dec. 31, 2014
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments [Table Text Block]
 
 
Interest rate as
 
 
 
 
 
of December 31,
 
December 31,
 
 
 
2014
 
2013
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
%
 
 
 
 
 
Loans from banks in USD (1)
 
3.7%
 
$
2,904
 
$
-
 
Loan from banks and other in NIS
 
4.1%-5.9%
 
 
405
 
 
481
 
Other long term debt
 
 
 
 
 
20
 
 
8
 
 
 
 
 
 
 
 
 
 
 
 
Less – Current maturities (included under “short-term debt”)
 
 
 
 
 
(1,055)
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
2,274
 
$
490
 
 
(1)
Loan from a US bank, received on November 2013 in the amount of $3,000, paid monthly in equal payment, for a period of 36 months bearing interest of Libor+3.5%. The loan agreement contains various covenants which require us to maintain certain financial ratios. The Company has met the financial ratios as of December 31, 2013. During 2014 the company repaid the loan.
 
(2)
On November 2013, the Company entered into a credit line agreement with a U.S. bank, under which the bank provides the Company with a credit line of $3 million for a period of three years. As of December 31, 2014, the Company had drawn down an amount of approximately $2.8 million from the credit line, which is subject to interest equal to the Prime Rate in effect from time to time, plus 3% per annum; provided that the interest rate in effect on any day shall not be less than 6.0% per annum. In relation to this credit line, the Company is obliged by the bank to comply with certain financial covenants, as defined in the agreement. As of December 31, 2014, the Company was in full compliance with the financial covenants. During January 2015 the company fully repaid the credit line.
v2.4.1.9
TAXES ON INCOME (Tables)
12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]
Income before taxes on income:
 
 
 
Year ended December 31,
 
 
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
10,462
 
$
16,165
 
$
14,690
 
Foreign
 
 
6,092
 
 
2,266
 
 
4,183
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
16,554
 
$
18,431
 
$
18,873
 
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
Taxes on income (tax benefit) consist of the following:
 
 
 
Year ended December 31,
 
 
 
2012
 
2013
 
2014
 
Current:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
$
(1,291)
 
$
(1,277)
 
$
241
 
Foreign
 
 
302
 
 
781
 
 
689
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(989)
 
 
(496)
 
 
930
 
Deferred taxes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
 
 
414
 
 
2,673
 
 
2,575
 
Foreign
 
 
669
 
 
(602)
 
 
(1,198)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,083
 
 
2,071
 
 
1,377
 
 
 
 
 
 
 
 
 
 
 
 
Taxes on income (tax benefit)
 
$
94
 
$
1,575
 
$
2,307
 
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
Deferred 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 and its subsidiaries deferred tax assets are as follows:
 
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
 
 
 
 
 
 
Net operating loss carryforwards
 
$
5,293
 
$
4,627
 
Allowances, reserves and intangible assets
 
 
1,207
 
 
1,080
 
 
 
 
 
 
 
 
 
Deferred tax assets before valuation allowance
 
 
6,500
 
 
5,707
 
Less - valuation allowance
 
 
(1,154)
 
 
(3,570)
 
 
 
 
 
 
 
 
 
Deferred tax assets
 
 
5,346
 
 
2,137
 
Capitalized software costs
 
 
(1,723)
 
 
-
 
 
 
 
 
 
 
 
 
Deferred tax assets, net
 
$
3,623
 
$
2,137
 
Schedule Of Deferred Tax Assets [Table Text Block]
 
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
 
 
 
 
Current tax assets
 
$
1,949
 
$
554
 
Non-current tax assets
 
 
1,674
 
 
1,583
 
 
 
 
 
 
 
 
 
Deferred tax assets
 
$
3,623
 
$
2,137
 
Schedule Of Deferred Tax Liabilities [Table Text Block]
Significant components of the Company and its subsidiaries deferred tax liability are as follows:
 
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
 
 
 
 
Current tax liabilities
 
$
2,567
 
$
760
 
Non-current tax liabilities
 
 
2,204
 
 
4,086
 
 
 
 
 
 
 
 
 
Net deferred tax liabilities
 
$
4,771
 
$
4,846
 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
Reconciling items between the 2012, 2013 and 2014 statutory tax rate (25%, 25% and 26.5%, respectively) of the Company and the effective tax rate is presented in the following table:
 
 
 
Year ended December 31,
 
 
 
2012
 
 
2013
 
 
2014
 
 
 
 
 
 
 
 
 
 
 
Income before taxes, as reported in the consolidated statements of income
 
$
16,554
 
 
$
18,431
 
 
$
18,873
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statutory tax rate
 
 
25
%
 
 
25
%
 
 
26.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Theoretical tax expenses on the above amount at the Israeli statutory tax rate
 
$
4,139
 
 
$
4,609
 
 
$
5,001
 
Tax adjustment in respect of different tax rates
 
 
444
 
 
 
484
 
 
 
80
 
Deferred taxes on losses for which full valuation allowance was provided in the past
 
 
651
 
 
 
(304)
 
 
 
236
 
Changes in valuation allowance
 
 
(2,003)
 
 
 
-
 
 
 
-
 
Tax benefits in respect of prior years, net
 
 
(1,126)
*)
 
 
203
 
 
 
(516)
 
Nondeductible expenses
 
 
20
 
 
 
95
 
 
 
82
 
Uncertain tax position and other differences
 
 
(2,031)
**)
 
 
(3,512)
 
 
 
(2,576)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax (tax benefit)
 
$
94
 
 
$
1,575
 
 
$
2,307
 
 
*)
In 2012, the Company reversed its write-off of tax prepayment advances from prior years since the Company believes the utilization of the prepayments is more-likely-than not in the near future.
 
**)
This amount is mainly comprised of tax provisions reversal due to statute of limitation of prior years' tax assessments amounting to $1,270.
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
 
Gross unrecognized tax benefits at January 1, 2012
 
$
3,528
 
 
 
 
 
 
Increase in tax positions taken in prior years
 
 
270
 
 
 
 
 
 
Decrease in tax positions taken in prior years
 
 
(489)
 
 
 
 
 
 
Gross unrecognized tax benefits at December 31, 2012
 
 
3,309
 
Increase in tax positions taken in prior years
 
 
-
 
 
 
 
 
 
Decrease in tax positions taken in prior years
 
 
(2,811)
 
 
 
 
 
 
Gross unrecognized tax benefits at December 31, 2013
 
 
498
 
 
 
 
 
 
Increase in tax positions taken in prior years
 
 
-
 
 
 
 
 
 
Decrease in tax positions taken in prior years
 
 
(156)
 
 
 
 
 
 
Gross unrecognized tax benefits at December 31, 2014
 
$
342
 
v2.4.1.9
EQUITY (Tables)
12 Months Ended
Dec. 31, 2014
Equity [Abstract]  
Schedule Of Share Based Compensation, Employee Stock Option Plan, Activity [Table Text Block]
A summary of employee option activity under the Plans as of December 31, 2014 and changes during the year ended December 31, 2014 are as follows:
 
 
 
 
 
 
 
 
Weighted
 
 
 
 
 
 
 
 
 
 
average
 
 
 
 
 
 
 
 
 
 
remaining
 
 
 
 
 
 
 
 
Weighted
 
contractual
 
Aggregate
 
 
 
Number
 
average
 
term
 
intrinsic
 
 
 
of options
 
exercise
price
 
(in years)
 
value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding at January 1, 2014
 
703,110
 
$
3.16
 
 
6.68
 
$
2,298
 
Granted
 
155,000
 
$
7.47
 
 
 
 
 
 
 
Exercised
 
(115,721)
 
$
1.86
 
 
 
 
 
 
 
Forfeited
 
(3,500)
 
$
4.00
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding at December 31, 2014
 
738,889
 
$
4.26
 
 
6.42
 
$
1,248
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable at December 31, 2014
 
448,639
 
$
2.95
 
 
5.03
 
$
1,348
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested and expected to vest at December 31, 2014
 
738,889
 
$
4.26
 
 
6.42
 
$
1,248
 
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]
The options outstanding as of December 31, 2014, have been separated into ranges of exercise price categories, as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Weighted
 
 
 
 
 
 
Weighted
 
 
 
 
 
average
 
 
 
 
 
 
average
 
 
 
 
 
exercise
 
 
 
 
 
 
remaining
 
Weighted
 
 
 
price
 
 
 
Options
 
contractual life
 
average
 
Options
 
of exercisable
 
Exercise price
 
outstanding
 
(years)
 
exercise price
 
exercisable
 
options
 
In $
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0-1
 
 
4,000
 
 
4.24
 
$
-
 
 
4,000
 
$
-
 
1.01-2
 
 
69,200
 
 
1.85
 
$
1.20
 
 
69,200
 
$
1.20
 
2.01-3
 
 
173,667
 
 
4.80
 
$
2.30
 
 
173,667
 
$
2.30
 
3.01-4
 
 
252,022
 
 
6.12
 
$
3.96
 
 
180,522
 
$
3.95
 
4.01-5
 
 
-
 
 
-
 
$
-
 
 
-
 
$
-
 
5.01-6
 
 
85,000
 
 
8.61
 
$
6.00
 
 
21,250
 
$
6.00
 
6.01-7
 
 
75,000
 
 
9.87
 
$
6.89
 
 
-
 
$
-
 
7.01-8
 
 
-
 
 
-
 
$
-
 
 
-
 
$
-
 
8.01-9
 
 
80,000
 
 
9.36
 
$
8.01
 
 
-
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
738,889
 
 
6.42
 
$
4.26
 
 
448,639
 
$
2.95
 
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
d.
Accumulated other comprehensive income:
 
 
 
December 31,
 
 
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
 
Accumulated realized and unrealized gain on available-for-sale securities, net
 
$
173
 
$
138
 
$
(121)
 
Accumulated foreign currency translation adjustments
 
 
(776)
 
 
(327)
 
 
(5,243)
 
Accumulated unrealized gain (loss) on derivative instruments, net
 
 
17
 
 
17
 
 
17
 
 
 
 
 
 
 
 
 
 
 
 
Total other comprehensive income
 
$
(586)
 
$
(172)
 
$
(5,347)
 
v2.4.1.9
SELECTED STATEMENTS OF INCOME DATA (Tables)
12 Months Ended
Dec. 31, 2014
Selected Statement Of Income Data [Abstract]  
Schedule Of Research and Development Expense [Table Text Block]
a.
Research and development costs, net:
 
 
 
Year ended December 31,
 
 
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
Total costs
 
$
7,916
 
$
8,419
 
$
9,017
 
Less - capitalized software costs
 
 
(4,969)
 
 
(4,713)
 
 
(4,267)
 
 
 
 
 
 
 
 
 
 
 
 
Research and development, net
 
$
2,947
 
$
3,706
 
$
4,750
 
Schedule of Other Nonoperating Income (Expense) [Table Text Block]
b.
Financial income (expenses), net:
 
Interest income net of bank charges
 
$
20
 
$
(170)
 
$
(156)
 
Interest expenses related to liabilities in connection with acquisitions
 
 
(48)
 
 
(407)
 
 
(152)
 
Interest income from debt instruments
 
 
49
 
 
46
 
 
91
 
Loss arising from foreign currency translation and other
 
 
(11)
 
 
(153)
 
 
(1,569)
 
 
 
 
 
 
 
 
 
 
 
 
Financial income(expenses), net
 
$
10
 
$
(684)
 
$
(1,786)
 
v2.4.1.9
COMMITMENTS AND CONTINGENCIES (Tables)
12 Months Ended
Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
Future minimum lease commitments under non-cancelable operating leases as of December 31, 2014, are as follows:
 
2015
 
$
1,798
 
2016
 
 
773
 
2017
 
 
578
 
2018 and thereafter
 
 
583
 
 
 
 
 
 
 
 
$
3,732
 
v2.4.1.9
NET EARNINGS PER SHARE (Tables)
12 Months Ended
Dec. 31, 2014
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
The following table sets forth the computation of basic and diluted net earnings per share:
 
 
 
Year ended December 31,
 
 
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
Numerator for basic and diluted earnings per share - net income available to Magic shareholders
 
$
16,183
 
$
15,880
 
$
15,403
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average ordinary shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Denominator for basic net earnings per share
 
 
36,502,264
 
 
36,835,163
 
 
43,287,523
 
Effect of dilutive securities
 
 
605,406
 
 
458,753
 
 
17,291
 
 
 
 
 
 
 
 
 
 
 
 
Denominator for diluted net earnings per share
 
 
37,107,670
 
 
37,293,916
 
 
43,304,814
 
 
 
 
 
 
 
 
 
 
 
 
Basic and diluted earnings per share
 
$
0.44
 
$
0.43
 
$
0.36
 
v2.4.1.9
SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Tables)
12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
The following is information about reported segment results of operation:
 
 
 
Software
services
 
IT
professional
services
 
Unallocated
expense
 
Total
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
services
 
IT
professional
services
 
Unallocated
expense
 
Total
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
$
67,453
 
$
77,505
 
$
-
 
$
144,958
 
Expenses
 
 
53,164
 
 
68,846
 
 
3,821
 
 
125,831
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment operating income (loss)
 
$
14,289
 
$
8,659
 
$
(3,821)
 
$
19,127
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
5,917
 
$
2,210
 
$
253
 
$
8,380
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
Schedule Of Revenues From Geographical Segments [Table Text Block]
The following table presents total revenues classified according to geographical destination for the years ended December 31, 2012, 2013 and 2014:
 
 
 
Year ended December 31,
 
 
 
2012
 
2013
 
2014
 
 
 
 
 
 
 
 
 
Israel
 
$
11,561
 
$
24,006
 
$
29,198
 
Europe
 
 
29,139
 
 
31,386
 
 
37,409
 
United States
 
 
64,591
 
 
70,872
 
 
78,606
 
Japan
 
 
12,661
 
 
11,965
 
 
11,299
 
Other
 
 
8,428
 
 
6,729
 
 
3,927
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
126,380
 
$
144,958
 
$
164,304
 
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]
d.
The Company's long-lived assets are located as follows:
 
 
 
December 31,
 
 
 
2013
 
2014
 
 
 
 
 
 
 
Israel
 
$
54,656
 
$
58,263
 
Europe
 
 
3,117
 
 
1,523
 
United States
 
 
23,287
 
 
22,174
 
Japan
 
 
5,180
 
 
4,786
 
Other
 
 
3,395
 
 
3,291
 
 
 
 
 
 
 
 
 
 
 
$
89,634
 
$
90,039
 
v2.4.1.9
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Redeemable Noncontrolling Interest [Line Items]      
January 1, 2014 $ 2,721us-gaap_RedeemableNoncontrollingInterestEquityCarryingAmount    
Net income attributable to redeemable non-controlling interests 425us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest 546us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest 184us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest
Non-controlling interest as part of acquisitions 158us-gaap_NoncontrollingInterestIncreaseFromBusinessCombination    
Foreign currency translation adjustments (374)us-gaap_TemporaryEquityForeignCurrencyTranslationAdjustments    
December 31, 2014 $ 2,930us-gaap_RedeemableNoncontrollingInterestEquityCarryingAmount $ 2,721us-gaap_RedeemableNoncontrollingInterestEquityCarryingAmount  
v2.4.1.9
SIGNIFICANT ACCOUNTING POLICIES (Details 1)
12 Months Ended
Dec. 31, 2014
Computers and Peripheral Equipment [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 3 years
Motor vehicles [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 7 years
Leasehold Improvements [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Estimated Useful Lives Over the shorter of the lease term or useful economic life
Maximum [Member] | Office Furniture and Equipment [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 15 years
Maximum [Member] | Software [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 5 years
Minimum [Member] | Office Furniture and Equipment [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 7 years
Minimum [Member] | Software [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 3 years
v2.4.1.9
SIGNIFICANT ACCOUNTING POLICIES (Details 2)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Dividend yield 0.00%us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate 0.00%us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
Expected volatility, Minimum 32.00%us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum 32.00%us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum
Expected volatility, Maximum 59.00%us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum 59.00%us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum
Risk-free interest rate, Minimum 0.10%us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum 0.10%us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
Risk-free interest rate, Maximum 2.60%us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum 2.60%us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum
Expected forfeiture (employees) 0.00%mgic_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedForfeitureRateEmployees 0.00%mgic_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedForfeitureRateEmployees
Expected forfeiture (executives) 0.00%mgic_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedForfeitureRateExecutives 0.00%mgic_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedForfeitureRateExecutives
Contractual term of up to 10 years 10 years
Suboptimal exercise multiple (employees) 0mgic_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsSuboptimalExerciseMultipleEmployees 2mgic_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsSuboptimalExerciseMultipleEmployees
Suboptimal exercise multiple (executives) 2mgic_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsSuboptimalExerciseMultipleExecutives 2mgic_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsSuboptimalExerciseMultipleExecutives
v2.4.1.9
SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 1,557us-gaap_ShareBasedCompensation $ 325us-gaap_ShareBasedCompensation $ 515us-gaap_ShareBasedCompensation
Cost Of Revenue [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense 30us-gaap_ShareBasedCompensation
/ us-gaap_IncomeStatementLocationAxis
= us-gaap_CostOfSalesMember
11us-gaap_ShareBasedCompensation
/ us-gaap_IncomeStatementLocationAxis
= us-gaap_CostOfSalesMember
16us-gaap_ShareBasedCompensation
/ us-gaap_IncomeStatementLocationAxis
= us-gaap_CostOfSalesMember
Research and Development Expense [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense 29us-gaap_ShareBasedCompensation
/ us-gaap_IncomeStatementLocationAxis
= us-gaap_ResearchAndDevelopmentExpenseMember
67us-gaap_ShareBasedCompensation
/ us-gaap_IncomeStatementLocationAxis
= us-gaap_ResearchAndDevelopmentExpenseMember
114us-gaap_ShareBasedCompensation
/ us-gaap_IncomeStatementLocationAxis
= us-gaap_ResearchAndDevelopmentExpenseMember
Selling and Marketing Expense [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense 220us-gaap_ShareBasedCompensation
/ us-gaap_IncomeStatementLocationAxis
= us-gaap_SellingAndMarketingExpenseMember
85us-gaap_ShareBasedCompensation
/ us-gaap_IncomeStatementLocationAxis
= us-gaap_SellingAndMarketingExpenseMember
82us-gaap_ShareBasedCompensation
/ us-gaap_IncomeStatementLocationAxis
= us-gaap_SellingAndMarketingExpenseMember
General and Administrative Expense [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 1,278us-gaap_ShareBasedCompensation
/ us-gaap_IncomeStatementLocationAxis
= us-gaap_GeneralAndAdministrativeExpenseMember
$ 162us-gaap_ShareBasedCompensation
/ us-gaap_IncomeStatementLocationAxis
= us-gaap_GeneralAndAdministrativeExpenseMember
$ 303us-gaap_ShareBasedCompensation
/ us-gaap_IncomeStatementLocationAxis
= us-gaap_GeneralAndAdministrativeExpenseMember
v2.4.1.9
SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
ASSETS    
Total derivatives $ 9us-gaap_DerivativeFairValueOfDerivativeNet $ 0us-gaap_DerivativeFairValueOfDerivativeNet
Other Accounts Receivable and Prepaid Expenses [Member]    
ASSETS    
Derivatives not designated as hedging $ 9us-gaap_DerivativeInstrumentsNotDesignatedAsHedgingInstrumentsAssetAtFairValue
/ us-gaap_BalanceSheetLocationAxis
= mgic_OtherAccountsReceivableAndPrepaidExpensesMember
$ 0us-gaap_DerivativeInstrumentsNotDesignatedAsHedgingInstrumentsAssetAtFairValue
/ us-gaap_BalanceSheetLocationAxis
= mgic_OtherAccountsReceivableAndPrepaidExpensesMember
v2.4.1.9
SIGNIFICANT ACCOUNTING POLICIES (Details 5) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Derivatives not designated as hedging:      
Total derivatives $ 24us-gaap_DerivativeGainLossOnDerivativeNet $ 139us-gaap_DerivativeGainLossOnDerivativeNet $ 245us-gaap_DerivativeGainLossOnDerivativeNet
Financial Expenses [Member]      
Derivatives not designated as hedging:      
Foreign exchange forward contracts $ 24us-gaap_GainLossOnForeignCurrencyDerivativeInstrumentsNotDesignatedAsHedgingInstruments
/ us-gaap_IncomeStatementLocationAxis
= mgic_FinancialExpensesMember
$ 139us-gaap_GainLossOnForeignCurrencyDerivativeInstrumentsNotDesignatedAsHedgingInstruments
/ us-gaap_IncomeStatementLocationAxis
= mgic_FinancialExpensesMember
$ 245us-gaap_GainLossOnForeignCurrencyDerivativeInstrumentsNotDesignatedAsHedgingInstruments
/ us-gaap_IncomeStatementLocationAxis
= mgic_FinancialExpensesMember
v2.4.1.9
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $)
In Thousands, except Share data, unless otherwise specified
0 Months Ended 12 Months Ended
Sep. 04, 2012
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Advertising Expense   $ 466us-gaap_AdvertisingExpense $ 306us-gaap_AdvertisingExpense $ 556us-gaap_AdvertisingExpense
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount   35,010us-gaap_AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount 536,877us-gaap_AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount 669,887us-gaap_AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
Unrecognized Tax Benefits Income (Expenses)   735mgic_UnrecognizedTaxBenefitsIncomeExpenses 1,285mgic_UnrecognizedTaxBenefitsIncomeExpenses 420mgic_UnrecognizedTaxBenefitsIncomeExpenses
Dividend Distribution Maximum Percentage 50.00%mgic_DividendDistributionMaximumPercentage 50.00%mgic_DividendDistributionMaximumPercentage   50.00%mgic_DividendDistributionMaximumPercentage
Allocated Share-based Compensation Expense   1,557us-gaap_AllocatedShareBasedCompensationExpense 325us-gaap_AllocatedShareBasedCompensationExpense 515us-gaap_AllocatedShareBasedCompensationExpense
Severance Costs   0us-gaap_SeveranceCosts1 0us-gaap_SeveranceCosts1 8us-gaap_SeveranceCosts1
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent   100.00%us-gaap_DefinedContributionPlanMaximumAnnualContributionsPerEmployeePercent    
Defined Contribution Plan, Employer Matching Contribution, Percent of Match   3.00%us-gaap_DefinedContributionPlanEmployerMatchingContributionPercentOfMatch    
Purchase Of NIS With US Dollars [Member]        
Foreign Currency Derivatives Notional Amount   $ 1,736mgic_ForeignCurrencyDerivativesNotionalAmount
/ us-gaap_MajorTypesOfDebtAndEquitySecuritiesAxis
= mgic_PurchaseOfNisWithUsDollarsMember
$ 0mgic_ForeignCurrencyDerivativesNotionalAmount
/ us-gaap_MajorTypesOfDebtAndEquitySecuritiesAxis
= mgic_PurchaseOfNisWithUsDollarsMember
 
Minimum [Member]        
Finite-Lived Intangible Asset, Useful Life   3 years 6 months    
Capitalized Computer Software Amortization Term   4 years    
Maximum [Member]        
Finite-Lived Intangible Asset, Useful Life   15 years    
Capitalized Computer Software Amortization Term   5 years    
v2.4.1.9
BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
May 31, 2013
Dec. 27, 2011
Feb. 26, 2013
May 16, 2013
May 30, 2013
Nov. 30, 2013
Oct. 01, 2014
Business Acquisition [Line Items]                    
Goodwill $ 55,490us-gaap_Goodwill $ 55,313us-gaap_Goodwill $ 44,663us-gaap_Goodwill              
Scenario, Previously Reported [Member]                    
Business Acquisition [Line Items]                    
Net assets     1,219us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedFinancialAssets
/ us-gaap_StatementScenarioAxis
= us-gaap_ScenarioPreviouslyReportedMember
             
Non-controlling interest     (1,880)us-gaap_BusinessCombinationAcquisitionOfLessThan100PercentNoncontrollingInterestFairValue
/ us-gaap_StatementScenarioAxis
= us-gaap_ScenarioPreviouslyReportedMember
             
Intangible assets     3,873us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill
/ us-gaap_StatementScenarioAxis
= us-gaap_ScenarioPreviouslyReportedMember
             
Goodwill     5,809us-gaap_Goodwill
/ us-gaap_StatementScenarioAxis
= us-gaap_ScenarioPreviouslyReportedMember
             
Deferred tax liability, net     0us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNoncurrent
/ us-gaap_StatementScenarioAxis
= us-gaap_ScenarioPreviouslyReportedMember
             
Total assets acquired     9,021us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet
/ us-gaap_StatementScenarioAxis
= us-gaap_ScenarioPreviouslyReportedMember
             
Restatement Adjustment [Member]                    
Business Acquisition [Line Items]                    
Net assets       14us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedFinancialAssets
/ us-gaap_StatementScenarioAxis
= us-gaap_RestatementAdjustmentMember
           
Non-controlling interest       130us-gaap_BusinessCombinationAcquisitionOfLessThan100PercentNoncontrollingInterestFairValue
/ us-gaap_StatementScenarioAxis
= us-gaap_RestatementAdjustmentMember
           
Intangible assets       397us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill
/ us-gaap_StatementScenarioAxis
= us-gaap_RestatementAdjustmentMember
           
Goodwill       439us-gaap_Goodwill
/ us-gaap_StatementScenarioAxis
= us-gaap_RestatementAdjustmentMember
           
Deferred tax liability, net       (1,068)us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNoncurrent
/ us-gaap_StatementScenarioAxis
= us-gaap_RestatementAdjustmentMember
           
Total assets acquired       (88)us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet
/ us-gaap_StatementScenarioAxis
= us-gaap_RestatementAdjustmentMember
           
Modified [Member]                    
Business Acquisition [Line Items]                    
Net assets       1,233us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedFinancialAssets
/ us-gaap_BusinessAcquisitionAxis
= mgic_ModifiedMember
           
Non-controlling interest       (1,750)us-gaap_BusinessCombinationAcquisitionOfLessThan100PercentNoncontrollingInterestFairValue
/ us-gaap_BusinessAcquisitionAxis
= mgic_ModifiedMember
           
Intangible assets       4,270us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill
/ us-gaap_BusinessAcquisitionAxis
= mgic_ModifiedMember
           
Goodwill       6,248us-gaap_Goodwill
/ us-gaap_BusinessAcquisitionAxis
= mgic_ModifiedMember
           
Deferred tax liability, net       (1,068)us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxLiabilitiesNoncurrent
/ us-gaap_BusinessAcquisitionAxis
= mgic_ModifiedMember
           
Total assets acquired       8,933us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet
/ us-gaap_BusinessAcquisitionAxis
= mgic_ModifiedMember
           
App Builder [Member]                    
Business Acquisition [Line Items]                    
Net liabilities         (3,248)us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedLiabilities
/ us-gaap_BusinessAcquisitionAxis
= mgic_AppBuilderMember
         
Intangible assets         7,251us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill
/ us-gaap_BusinessAcquisitionAxis
= mgic_AppBuilderMember
         
Goodwill         8,702us-gaap_Goodwill
/ us-gaap_BusinessAcquisitionAxis
= mgic_AppBuilderMember
         
Total assets acquired         12,705us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet
/ us-gaap_BusinessAcquisitionAxis
= mgic_AppBuilderMember
         
Pilat Europe Limited Ltd and Pilat North America Inc [Member]                    
Business Acquisition [Line Items]                    
Net assets           490us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedFinancialAssets
/ us-gaap_BusinessAcquisitionAxis
= mgic_PilatEuropeLimitedLtdAndPilatNorthAmericaIncMember
       
Intangible assets           715us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill
/ us-gaap_BusinessAcquisitionAxis
= mgic_PilatEuropeLimitedLtdAndPilatNorthAmericaIncMember
       
Total assets acquired           1,205us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet
/ us-gaap_BusinessAcquisitionAxis
= mgic_PilatEuropeLimitedLtdAndPilatNorthAmericaIncMember
       
Valinor Ltd [Member]                    
Business Acquisition [Line Items]                    
Net assets             119us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedFinancialAssets
/ us-gaap_BusinessAcquisitionAxis
= mgic_ValinorLtdMember
     
Intangible assets             464us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill
/ us-gaap_BusinessAcquisitionAxis
= mgic_ValinorLtdMember
     
Goodwill             1,035us-gaap_Goodwill
/ us-gaap_BusinessAcquisitionAxis
= mgic_ValinorLtdMember
     
Total assets acquired             1,618us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet
/ us-gaap_BusinessAcquisitionAxis
= mgic_ValinorLtdMember
     
Dario solutions IT Ltd [Member]                    
Business Acquisition [Line Items]                    
Net assets               371us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedFinancialAssets
/ us-gaap_BusinessAcquisitionAxis
= mgic_DarioSolutionsItLtdMember
   
Intangible assets               707us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill
/ us-gaap_BusinessAcquisitionAxis
= mgic_DarioSolutionsItLtdMember
   
Goodwill               2,645us-gaap_Goodwill
/ us-gaap_BusinessAcquisitionAxis
= mgic_DarioSolutionsItLtdMember
   
Total assets acquired               3,723us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet
/ us-gaap_BusinessAcquisitionAxis
= mgic_DarioSolutionsItLtdMember
   
Allstates Technical Services [Member]                    
Business Acquisition [Line Items]                    
Net assets                 3,063us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedFinancialAssets
/ us-gaap_BusinessAcquisitionAxis
= mgic_AllstatesTechnicalServicesMember
 
Intangible assets                 2,874us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill
/ us-gaap_BusinessAcquisitionAxis
= mgic_AllstatesTechnicalServicesMember
 
Goodwill                 5,026us-gaap_Goodwill
/ us-gaap_BusinessAcquisitionAxis
= mgic_AllstatesTechnicalServicesMember
 
Total assets acquired                 10,963us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet
/ us-gaap_BusinessAcquisitionAxis
= mgic_AllstatesTechnicalServicesMember
 
Formula Telecom Solutions Ltd [Member]                    
Business Acquisition [Line Items]                    
Net assets                   (57)us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedFinancialAssets
/ us-gaap_BusinessAcquisitionAxis
= mgic_FormulaTelecomSolutionsLtdMember
Intangible assets                   2,951us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill
/ us-gaap_BusinessAcquisitionAxis
= mgic_FormulaTelecomSolutionsLtdMember
Goodwill                   2,906us-gaap_Goodwill
/ us-gaap_BusinessAcquisitionAxis
= mgic_FormulaTelecomSolutionsLtdMember
Total assets acquired                   $ 5,800us-gaap_BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet
/ us-gaap_BusinessAcquisitionAxis
= mgic_FormulaTelecomSolutionsLtdMember
v2.4.1.9
BUSINESS COMBINATION, SIGNIFICANT TRANSACTION AND SALE OF BUSINESS (Details Textual) (USD $)
In Thousands, unless otherwise specified
12 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended 1 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 27, 2011
Jul. 31, 2012
Feb. 26, 2013
May 16, 2013
May 31, 2013
May 30, 2013
Nov. 11, 2013
Oct. 01, 2014
Dec. 31, 2011
Nov. 30, 2013
May 25, 2014
Feb. 28, 2014
Business Acquisition [Line Items]                              
Business Combination, Consideration Transferred, Total $ 700us-gaap_BusinessCombinationConsiderationTransferred1 $ 900us-gaap_BusinessCombinationConsiderationTransferred1                          
Net Income (Loss) Attributable To Redeemable Noncontrolling Interest 425us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest 546us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest 184us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest                        
App Builder [Member]                              
Business Acquisition [Line Items]                              
Payments to Acquire Businesses, Gross     140us-gaap_PaymentsToAcquireBusinessesGross
/ us-gaap_BusinessAcquisitionAxis
= mgic_AppBuilderMember
12,565us-gaap_PaymentsToAcquireBusinessesGross
/ us-gaap_BusinessAcquisitionAxis
= mgic_AppBuilderMember
                     
Comm It Group [Member]                              
Business Acquisition [Line Items]                              
Equity Method Investment, Ownership Percentage         20.00%us-gaap_EquityMethodInvestmentOwnershipPercentage
/ us-gaap_BusinessAcquisitionAxis
= mgic_CommItGroupMember
                   
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage         80.00%us-gaap_BusinessCombinationStepAcquisitionEquityInterestInAcquireePercentage
/ us-gaap_BusinessAcquisitionAxis
= mgic_CommItGroupMember
                   
Business Acquisition Contingent Consideration Deferred Payment         2,751mgic_BusinessAcquisitionContingentConsiderationDeferredPayment
/ us-gaap_BusinessAcquisitionAxis
= mgic_CommItGroupMember
                   
Business Acquisitions Contingent Consideration At Fair Value         3,943mgic_BusinessAcquisitionsContingentConsiderationAtFairValue
/ us-gaap_BusinessAcquisitionAxis
= mgic_CommItGroupMember
                   
Business Combination, Consideration Transferred, Total         8,933us-gaap_BusinessCombinationConsiderationTransferred1
/ us-gaap_BusinessAcquisitionAxis
= mgic_CommItGroupMember
                   
Business Acquisitions Contingent Consideration Potential Cash Payment         1,192mgic_BusinessAcquisitionsContingentConsiderationPotentialCashPayment
/ us-gaap_BusinessAcquisitionAxis
= mgic_CommItGroupMember
                   
Net Income (Loss) Attributable To Redeemable Noncontrolling Interest         1,750us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest
/ us-gaap_BusinessAcquisitionAxis
= mgic_CommItGroupMember
                   
Payments to Acquire Businesses, Gross         4,990us-gaap_PaymentsToAcquireBusinessesGross
/ us-gaap_BusinessAcquisitionAxis
= mgic_CommItGroupMember
                   
Pilat Europe Limited Ltd and Pilat North America Inc [Member]                              
Business Acquisition [Line Items]                              
Payments to Acquire Businesses, Gross           1,233us-gaap_PaymentsToAcquireBusinessesGross
/ us-gaap_BusinessAcquisitionAxis
= mgic_PilatEuropeLimitedLtdAndPilatNorthAmericaIncMember
                 
Valinor Ltd [Member]                              
Business Acquisition [Line Items]                              
Business Combination, Consideration Transferred, Total   230us-gaap_BusinessCombinationConsiderationTransferred1
/ us-gaap_BusinessAcquisitionAxis
= mgic_ValinorLtdMember
        339us-gaap_BusinessCombinationConsiderationTransferred1
/ us-gaap_BusinessAcquisitionAxis
= mgic_ValinorLtdMember
1,618us-gaap_BusinessCombinationConsiderationTransferred1
/ us-gaap_BusinessAcquisitionAxis
= mgic_ValinorLtdMember
             
Business Combination Consideration Contingent On Operational Target             600mgic_BusinessCombinationConsiderationContingentOnOperationalTarget
/ us-gaap_BusinessAcquisitionAxis
= mgic_ValinorLtdMember
          339mgic_BusinessCombinationConsiderationContingentOnOperationalTarget
/ us-gaap_BusinessAcquisitionAxis
= mgic_ValinorLtdMember
   
Valinor Ltd [Member] | Subsequent Event [Member]                              
Business Acquisition [Line Items]                              
Business Combination Consideration Contingent On Operational Target                           340mgic_BusinessCombinationConsiderationContingentOnOperationalTarget
/ us-gaap_BusinessAcquisitionAxis
= mgic_ValinorLtdMember
/ us-gaap_SubsequentEventTypeAxis
= us-gaap_SubsequentEventMember
 
Dario solutions IT Ltd [Member]                              
Business Acquisition [Line Items]                              
Business Combination, Consideration Transferred, Total 997us-gaap_BusinessCombinationConsiderationTransferred1
/ us-gaap_BusinessAcquisitionAxis
= mgic_DarioSolutionsItLtdMember
            3,723us-gaap_BusinessCombinationConsiderationTransferred1
/ us-gaap_BusinessAcquisitionAxis
= mgic_DarioSolutionsItLtdMember
1,100us-gaap_BusinessCombinationConsiderationTransferred1
/ us-gaap_BusinessAcquisitionAxis
= mgic_DarioSolutionsItLtdMember
           
Business Combination Consideration Contingent On Operational Target 1,717mgic_BusinessCombinationConsiderationContingentOnOperationalTarget
/ us-gaap_BusinessAcquisitionAxis
= mgic_DarioSolutionsItLtdMember
                          906mgic_BusinessCombinationConsiderationContingentOnOperationalTarget
/ us-gaap_BusinessAcquisitionAxis
= mgic_DarioSolutionsItLtdMember
Allstates Technical Services, LLC [Member]                              
Business Acquisition [Line Items]                              
Business Combination, Consideration Transferred, Total                   10,963us-gaap_BusinessCombinationConsiderationTransferred1
/ us-gaap_BusinessAcquisitionAxis
= mgic_AllstatesTechnicalServicesLlcMember
         
Formula Telecom Solutions Ltd [Member]                              
Business Acquisition [Line Items]                              
Business Combination, Consideration Transferred, Total                     5,800us-gaap_BusinessCombinationConsiderationTransferred1
/ us-gaap_BusinessAcquisitionAxis
= mgic_FormulaTelecomSolutionsLtdMember
       
Customer Relationships [Member] | App Builder [Member]                              
Business Acquisition [Line Items]                              
Business Acquisition Purchase Price Allocation Customer Relationships       4,430mgic_BusinessAcquisitionPurchasePriceAllocationCustomerRelationships
/ us-gaap_BusinessAcquisitionAxis
= mgic_AppBuilderMember
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= us-gaap_CustomerRelationshipsMember
                     
Amortization Of Acquired Intangible Assets Term                       15 years      
Backlog [Member] | App Builder [Member]                              
Business Acquisition [Line Items]                              
Amortization Of Acquired Intangible Assets Term                       15 years      
Business Acquisition Purchase Price Allocation Backlog       683mgic_BusinessAcquisitionPurchasePriceAllocationBacklog
/ us-gaap_BusinessAcquisitionAxis
= mgic_AppBuilderMember
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= mgic_BacklogMember
                     
Technology-Based Intangible Assets [Member] | App Builder [Member]                              
Business Acquisition [Line Items]                              
Amortization Of Acquired Intangible Assets Term                       3 years 6 months      
Business Acquisition Purchase Price Allocation Developed Technology       $ 2,138mgic_BusinessAcquisitionPurchasePriceAllocationDevelopedTechnology
/ us-gaap_BusinessAcquisitionAxis
= mgic_AppBuilderMember
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= us-gaap_TechnologyBasedIntangibleAssetsMember
                     
v2.4.1.9
MARKETABLE SECURITIES (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Available-for-sale:    
Amortized cost $ 12,032us-gaap_AvailableForSaleSecuritiesAmortizedCost $ 716us-gaap_AvailableForSaleSecuritiesAmortizedCost
Unrealized losses (232)us-gaap_AvailableForSaleSecuritiesGrossUnrealizedLoss 0us-gaap_AvailableForSaleSecuritiesGrossUnrealizedLoss
Unrealized gains 115us-gaap_AvailableForSaleSecuritiesGrossUnrealizedGains 138us-gaap_AvailableForSaleSecuritiesGrossUnrealizedGains
Market value 11,915us-gaap_AvailableForSaleSecurities 854us-gaap_AvailableForSaleSecurities
Equity funds [Member]    
Available-for-sale:    
Amortized cost 116us-gaap_AvailableForSaleSecuritiesAmortizedCost
/ us-gaap_DefinedBenefitPlanByPlanAssetCategoriesAxis
= us-gaap_EquityFundsMember
119us-gaap_AvailableForSaleSecuritiesAmortizedCost
/ us-gaap_DefinedBenefitPlanByPlanAssetCategoriesAxis
= us-gaap_EquityFundsMember
Unrealized losses 0us-gaap_AvailableForSaleSecuritiesGrossUnrealizedLoss
/ us-gaap_DefinedBenefitPlanByPlanAssetCategoriesAxis
= us-gaap_EquityFundsMember
0us-gaap_AvailableForSaleSecuritiesGrossUnrealizedLoss
/ us-gaap_DefinedBenefitPlanByPlanAssetCategoriesAxis
= us-gaap_EquityFundsMember
Unrealized gains 115us-gaap_AvailableForSaleSecuritiesGrossUnrealizedGains
/ us-gaap_DefinedBenefitPlanByPlanAssetCategoriesAxis
= us-gaap_EquityFundsMember
110us-gaap_AvailableForSaleSecuritiesGrossUnrealizedGains
/ us-gaap_DefinedBenefitPlanByPlanAssetCategoriesAxis
= us-gaap_EquityFundsMember
Market value 231us-gaap_AvailableForSaleSecurities
/ us-gaap_DefinedBenefitPlanByPlanAssetCategoriesAxis
= us-gaap_EquityFundsMember
229us-gaap_AvailableForSaleSecurities
/ us-gaap_DefinedBenefitPlanByPlanAssetCategoriesAxis
= us-gaap_EquityFundsMember
Government bonds [Member]    
Available-for-sale:    
Amortized cost 11,916us-gaap_AvailableForSaleSecuritiesAmortizedCost
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_GovernmentBondsMember
407us-gaap_AvailableForSaleSecuritiesAmortizedCost
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_GovernmentBondsMember
Unrealized losses (232)us-gaap_AvailableForSaleSecuritiesGrossUnrealizedLoss
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_GovernmentBondsMember
0us-gaap_AvailableForSaleSecuritiesGrossUnrealizedLoss
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_GovernmentBondsMember
Unrealized gains 0us-gaap_AvailableForSaleSecuritiesGrossUnrealizedGains
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_GovernmentBondsMember
3us-gaap_AvailableForSaleSecuritiesGrossUnrealizedGains
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_GovernmentBondsMember
Market value 11,684us-gaap_AvailableForSaleSecurities
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_GovernmentBondsMember
410us-gaap_AvailableForSaleSecurities
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_GovernmentBondsMember
Commercial bonds [Member]    
Available-for-sale:    
Amortized cost 0us-gaap_AvailableForSaleSecuritiesAmortizedCost
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_CommercialBondsMember
190us-gaap_AvailableForSaleSecuritiesAmortizedCost
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_CommercialBondsMember
Unrealized losses 0us-gaap_AvailableForSaleSecuritiesGrossUnrealizedLoss
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_CommercialBondsMember
0us-gaap_AvailableForSaleSecuritiesGrossUnrealizedLoss
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_CommercialBondsMember
Unrealized gains 0us-gaap_AvailableForSaleSecuritiesGrossUnrealizedGains
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_CommercialBondsMember
25us-gaap_AvailableForSaleSecuritiesGrossUnrealizedGains
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_CommercialBondsMember
Market value $ 0us-gaap_AvailableForSaleSecurities
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_CommercialBondsMember
$ 215us-gaap_AvailableForSaleSecurities
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_CommercialBondsMember
v2.4.1.9
MARKETABLE SECURITIES (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Unrealized gains (losses), Amortized cost $ 12,032us-gaap_AvailableForSaleSecuritiesAmortizedCost $ 716us-gaap_AvailableForSaleSecuritiesAmortizedCost
Unrealized gains (losses), Gains 115us-gaap_AvailableForSaleSecuritiesGrossUnrealizedGains 138us-gaap_AvailableForSaleSecuritiesGrossUnrealizedGains
Unrealized gains (losses), Losses (232)us-gaap_AvailableForSaleSecuritiesGrossUnrealizedLoss 0us-gaap_AvailableForSaleSecuritiesGrossUnrealizedLoss
Unrealized gains (losses), Market value 11,915us-gaap_AvailableForSaleSecurities 854us-gaap_AvailableForSaleSecurities
Marketable Securities Due Between One To Three Years [Member]    
Unrealized gains (losses), Amortized cost 6,219us-gaap_AvailableForSaleSecuritiesAmortizedCost
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_MarketableSecuritiesDueBetweenOneToThreeYearsMember
 
Unrealized gains (losses), Gains 0us-gaap_AvailableForSaleSecuritiesGrossUnrealizedGains
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_MarketableSecuritiesDueBetweenOneToThreeYearsMember
 
Unrealized gains (losses), Losses (124)us-gaap_AvailableForSaleSecuritiesGrossUnrealizedLoss
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_MarketableSecuritiesDueBetweenOneToThreeYearsMember
 
Unrealized gains (losses), Market value 6,095us-gaap_AvailableForSaleSecurities
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_MarketableSecuritiesDueBetweenOneToThreeYearsMember
 
Total Marketable Securities Due Between One To Three Years [Member]    
Unrealized gains (losses), Amortized cost 6,219us-gaap_AvailableForSaleSecuritiesAmortizedCost
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_TotalMarketableSecuritiesDueBetweenOneToThreeYearsMember
 
Unrealized gains (losses), Gains 0us-gaap_AvailableForSaleSecuritiesGrossUnrealizedGains
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_TotalMarketableSecuritiesDueBetweenOneToThreeYearsMember
 
Unrealized gains (losses), Losses (124)us-gaap_AvailableForSaleSecuritiesGrossUnrealizedLoss
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_TotalMarketableSecuritiesDueBetweenOneToThreeYearsMember
 
Unrealized gains (losses), Market value 6,095us-gaap_AvailableForSaleSecurities
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_TotalMarketableSecuritiesDueBetweenOneToThreeYearsMember
 
Marketable Securities Due From Three To Five Years [Member]    
Unrealized gains (losses), Amortized cost 5,697us-gaap_AvailableForSaleSecuritiesAmortizedCost
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_MarketableSecuritiesDueFromThreeToFiveYearsMember
 
Unrealized gains (losses), Gains 0us-gaap_AvailableForSaleSecuritiesGrossUnrealizedGains
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_MarketableSecuritiesDueFromThreeToFiveYearsMember
 
Unrealized gains (losses), Losses (108)us-gaap_AvailableForSaleSecuritiesGrossUnrealizedLoss
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_MarketableSecuritiesDueFromThreeToFiveYearsMember
 
Unrealized gains (losses), Market value 5,589us-gaap_AvailableForSaleSecurities
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_MarketableSecuritiesDueFromThreeToFiveYearsMember
 
Total Marketable Securities Due From Three To Five Years [Member]    
Unrealized gains (losses), Amortized cost 5,697us-gaap_AvailableForSaleSecuritiesAmortizedCost
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_TotalMarketableSecuritiesDueFromThreeToFiveYearsMember
 
Unrealized gains (losses), Gains 0us-gaap_AvailableForSaleSecuritiesGrossUnrealizedGains
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_TotalMarketableSecuritiesDueFromThreeToFiveYearsMember
 
Unrealized gains (losses), Losses (108)us-gaap_AvailableForSaleSecuritiesGrossUnrealizedLoss
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_TotalMarketableSecuritiesDueFromThreeToFiveYearsMember
 
Unrealized gains (losses), Market value $ 5,589us-gaap_AvailableForSaleSecurities
/ us-gaap_SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesByTypeAxis
= mgic_TotalMarketableSecuritiesDueFromThreeToFiveYearsMember
 
v2.4.1.9
MARKETABLE SECURITIES (Details 2) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]    
Other comprehensive income from available-for-sale securities as of January 1, 2014 $ 138us-gaap_AccumulatedOtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentNetOfTax $ 173us-gaap_AccumulatedOtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentNetOfTax
Unrealized loss from available-for-sale securities (259)mgic_OtherComprehensiveIncomeLossUnrealizedLossFromAvailableForSaleSecurities (35)mgic_OtherComprehensiveIncomeLossUnrealizedLossFromAvailableForSaleSecurities
Other comprehensive income from available-for-sale securities as of December 31, 2014 $ (121)us-gaap_AccumulatedOtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentNetOfTax $ 138us-gaap_AccumulatedOtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentNetOfTax
v2.4.1.9
FAIR VALUE MEASUREMENTS (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Assets:    
Government bonds   $ 410mgic_GovernmentBondsFairValueDisclosure
Corporate bonds 11,684mgic_CorporateBondsFairValueDisclosure 215mgic_CorporateBondsFairValueDisclosure
Equity fund 231mgic_EquityFundFairValueDisclosure 229mgic_EquityFundFairValueDisclosure
Total financial assets 11,915us-gaap_AssetsFairValueDisclosure 854us-gaap_AssetsFairValueDisclosure
Liabilities:    
Contingent consideration 382us-gaap_ContingentConsiderationClassifiedAsEquityFairValueDisclosure 3,981us-gaap_ContingentConsiderationClassifiedAsEquityFairValueDisclosure
Total financials liabilities 382us-gaap_LiabilitiesFairValueDisclosure 3,981us-gaap_LiabilitiesFairValueDisclosure
Fair Value, Inputs, Level 1 [Member]    
Assets:    
Government bonds   410mgic_GovernmentBondsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel1Member
Corporate bonds 0mgic_CorporateBondsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel1Member
0mgic_CorporateBondsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel1Member
Equity fund 231mgic_EquityFundFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel1Member
229mgic_EquityFundFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel1Member
Total financial assets 231us-gaap_AssetsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel1Member
639us-gaap_AssetsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel1Member
Liabilities:    
Contingent consideration 0us-gaap_ContingentConsiderationClassifiedAsEquityFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel1Member
0us-gaap_ContingentConsiderationClassifiedAsEquityFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel1Member
Total financials liabilities 0us-gaap_LiabilitiesFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel1Member
0us-gaap_LiabilitiesFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel1Member
Fair Value, Inputs, Level 2 [Member]    
Assets:    
Government bonds   0mgic_GovernmentBondsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel2Member
Corporate bonds 11,684mgic_CorporateBondsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel2Member
215mgic_CorporateBondsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel2Member
Equity fund 0mgic_EquityFundFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel2Member
0mgic_EquityFundFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel2Member
Total financial assets 11,684us-gaap_AssetsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel2Member
215us-gaap_AssetsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel2Member
Liabilities:    
Contingent consideration 0us-gaap_ContingentConsiderationClassifiedAsEquityFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel2Member
0us-gaap_ContingentConsiderationClassifiedAsEquityFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel2Member
Total financials liabilities 0us-gaap_LiabilitiesFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel2Member
0us-gaap_LiabilitiesFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel2Member
Fair Value, Inputs, Level 3 [Member]    
Assets:    
Government bonds   0mgic_GovernmentBondsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel3Member
Corporate bonds 0mgic_CorporateBondsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel3Member
0mgic_CorporateBondsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel3Member
Equity fund 0mgic_EquityFundFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel3Member
0mgic_EquityFundFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel3Member
Total financial assets 0us-gaap_AssetsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel3Member
0us-gaap_AssetsFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel3Member
Liabilities:    
Contingent consideration 382us-gaap_ContingentConsiderationClassifiedAsEquityFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel3Member
3,981us-gaap_ContingentConsiderationClassifiedAsEquityFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel3Member
Total financials liabilities $ 382us-gaap_LiabilitiesFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel3Member
$ 3,981us-gaap_LiabilitiesFairValueDisclosure
/ us-gaap_FairValueByFairValueHierarchyLevelAxis
= us-gaap_FairValueInputsLevel3Member
v2.4.1.9
FAIR VALUE MEASUREMENTS (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Opening balance $ 3,981us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue $ 1,942us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue
Increase in contingent consideration 250us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityIssues 2,459us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityIssues
Payment in contingent consideration (3,053)us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilitySettlements (750)us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilitySettlements
Change in fair value of contingent consideration (948)us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityPeriodIncreaseDecrease 0us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityPeriodIncreaseDecrease
Unrealized gains (losses), Losses 152us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityGainLossIncludedInEarnings 330us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisLiabilityGainLossIncludedInEarnings
Closing balance $ 382us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue $ 3,981us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationsRecurringBasisLiabilityValue
v2.4.1.9
OTHER ACCOUNTS RECEIVABLE AND PREPAID EXPENSES (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Prepaid expenses $ 1,159us-gaap_PrepaidExpenseCurrent $ 1,156us-gaap_PrepaidExpenseCurrent
Government authorities 1,081mgic_ReceivableFromGovernmentAuthorities 862mgic_ReceivableFromGovernmentAuthorities
Deferred tax assets, net 554us-gaap_DeferredIncomeTaxesAndOtherTaxReceivableCurrent 1,949us-gaap_DeferredIncomeTaxesAndOtherTaxReceivableCurrent
Restricted deposits 149mgic_RestrictedDeposits 289mgic_RestrictedDeposits
Related parties 447us-gaap_DueFromRelatedPartiesCurrent 92us-gaap_DueFromRelatedPartiesCurrent
Other 583us-gaap_OtherPrepaidExpenseCurrent 861us-gaap_OtherPrepaidExpenseCurrent
Prepaid Expense and Other Assets, Current, Total $ 3,973us-gaap_PrepaidExpenseAndOtherAssetsCurrent $ 5,209us-gaap_PrepaidExpenseAndOtherAssetsCurrent
v2.4.1.9
PROPERTY AND EQUIPMENT (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross $ 19,740us-gaap_PropertyPlantAndEquipmentGross $ 15,351us-gaap_PropertyPlantAndEquipmentGross
Accumulated depreciation 17,735us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment 13,578us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
Depreciated cost 2,005us-gaap_PropertyPlantAndEquipmentNet 1,773us-gaap_PropertyPlantAndEquipmentNet
Leasehold improvements [Member]    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross 523us-gaap_PropertyPlantAndEquipmentGross
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= mgic_BuildingsAndLeaseholdImprovementsMember
546us-gaap_PropertyPlantAndEquipmentGross
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= mgic_BuildingsAndLeaseholdImprovementsMember
Accumulated depreciation 175us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= mgic_BuildingsAndLeaseholdImprovementsMember
288us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= mgic_BuildingsAndLeaseholdImprovementsMember
Computers and peripheral equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross 12,942us-gaap_PropertyPlantAndEquipmentGross
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= us-gaap_ComputerEquipmentMember
10,106us-gaap_PropertyPlantAndEquipmentGross
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= us-gaap_ComputerEquipmentMember
Accumulated depreciation 12,426us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= us-gaap_ComputerEquipmentMember
9,657us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= us-gaap_ComputerEquipmentMember
Office furniture and equipment [Member]    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross 2,620us-gaap_PropertyPlantAndEquipmentGross
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= mgic_OfficeFurnitureAndEquipmentMember
2,639us-gaap_PropertyPlantAndEquipmentGross
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= mgic_OfficeFurnitureAndEquipmentMember
Accumulated depreciation 1,985us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= mgic_OfficeFurnitureAndEquipmentMember
1,947us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= mgic_OfficeFurnitureAndEquipmentMember
Motor vehicles [Member]    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross 177us-gaap_PropertyPlantAndEquipmentGross
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= us-gaap_VehiclesMember
98us-gaap_PropertyPlantAndEquipmentGross
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= us-gaap_VehiclesMember
Accumulated depreciation 133us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= us-gaap_VehiclesMember
68us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= us-gaap_VehiclesMember
Software [Member]    
Property, Plant and Equipment [Line Items]    
Property, Plant and Equipment, Gross 3,478us-gaap_PropertyPlantAndEquipmentGross
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= us-gaap_ComputerSoftwareIntangibleAssetMember
1,962us-gaap_PropertyPlantAndEquipmentGross
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= us-gaap_ComputerSoftwareIntangibleAssetMember
Accumulated depreciation $ 3,016us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= us-gaap_ComputerSoftwareIntangibleAssetMember
$ 1,618us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
/ us-gaap_PropertyPlantAndEquipmentByTypeAxis
= us-gaap_ComputerSoftwareIntangibleAssetMember
v2.4.1.9
PROPERTY AND EQUIPMENT (Details Textual) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Property, Plant and Equipment [Line Items]      
Depreciation $ 675us-gaap_Depreciation $ 656us-gaap_Depreciation $ 757us-gaap_Depreciation
v2.4.1.9
INTANGIBLE ASSETS (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross $ 96,363us-gaap_FiniteLivedIntangibleAssetsGross $ 87,578us-gaap_FiniteLivedIntangibleAssetsGross
Finite-Lived Intangible Assets, Accumulated Amortization 63,820us-gaap_FiniteLivedIntangibleAssetsAccumulatedAmortization 55,029us-gaap_FiniteLivedIntangibleAssetsAccumulatedAmortization
Intangible assets, net 32,543us-gaap_FiniteLivedIntangibleAssetsNet 32,549us-gaap_FiniteLivedIntangibleAssetsNet
Capitalized software costs [Member]    
Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross 63,260us-gaap_FiniteLivedIntangibleAssetsGross
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= mgic_CapitalizedSoftwareCostsMember
59,069us-gaap_FiniteLivedIntangibleAssetsGross
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= mgic_CapitalizedSoftwareCostsMember
Finite-Lived Intangible Assets, Accumulated Amortization 49,072us-gaap_FiniteLivedIntangibleAssetsAccumulatedAmortization
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= mgic_CapitalizedSoftwareCostsMember
45,075us-gaap_FiniteLivedIntangibleAssetsAccumulatedAmortization
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= mgic_CapitalizedSoftwareCostsMember
Customer relationships [Member]    
Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross 26,618us-gaap_FiniteLivedIntangibleAssetsGross
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= us-gaap_CustomerRelationshipsMember
23,843us-gaap_FiniteLivedIntangibleAssetsGross
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= us-gaap_CustomerRelationshipsMember
Finite-Lived Intangible Assets, Accumulated Amortization 12,817us-gaap_FiniteLivedIntangibleAssetsAccumulatedAmortization
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= us-gaap_CustomerRelationshipsMember
8,895us-gaap_FiniteLivedIntangibleAssetsAccumulatedAmortization
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= us-gaap_CustomerRelationshipsMember
Backlog and non-compete agreement [Member]    
Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross 1,623us-gaap_FiniteLivedIntangibleAssetsGross
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= us-gaap_NoncompeteAgreementsMember
1,554us-gaap_FiniteLivedIntangibleAssetsGross
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= us-gaap_NoncompeteAgreementsMember
Finite-Lived Intangible Assets, Accumulated Amortization 1,142us-gaap_FiniteLivedIntangibleAssetsAccumulatedAmortization
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= us-gaap_NoncompeteAgreementsMember
630us-gaap_FiniteLivedIntangibleAssetsAccumulatedAmortization
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= us-gaap_NoncompeteAgreementsMember
Acquired technology [Member]    
Finite-Lived Intangible Assets [Line Items]    
Finite-Lived Intangible Assets, Gross 4,862us-gaap_FiniteLivedIntangibleAssetsGross
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= mgic_AcquiredTechnologyMember
3,112us-gaap_FiniteLivedIntangibleAssetsGross
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= mgic_AcquiredTechnologyMember
Finite-Lived Intangible Assets, Accumulated Amortization $ 789us-gaap_FiniteLivedIntangibleAssetsAccumulatedAmortization
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= mgic_AcquiredTechnologyMember
$ 429us-gaap_FiniteLivedIntangibleAssetsAccumulatedAmortization
/ us-gaap_FiniteLivedIntangibleAssetsByMajorClassAxis
= mgic_AcquiredTechnologyMember
v2.4.1.9
INTANGIBLE ASSETS (Details 1) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]    
2015 $ 8,230us-gaap_FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths  
2016 7,140us-gaap_FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo  
2017 5,764us-gaap_FiniteLivedIntangibleAssetsAmortizationExpenseYearThree  
2018 4,383us-gaap_FiniteLivedIntangibleAssetsAmortizationExpenseYearFour  
2019 3,043us-gaap_FiniteLivedIntangibleAssetsAmortizationExpenseYearFive  
2020 and thereafter 3,983us-gaap_FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive  
Finite-Lived Intangible Assets, Net $ 32,543us-gaap_FiniteLivedIntangibleAssetsNet $ 32,549us-gaap_FiniteLivedIntangibleAssetsNet
v2.4.1.9
INTANGIBLE ASSETS (Details Textual) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]      
Amortization of Intangible Assets $ 7,919us-gaap_AmortizationOfIntangibleAssets $ 7,724us-gaap_AmortizationOfIntangibleAssets $ 6,687us-gaap_AmortizationOfIntangibleAssets
v2.4.1.9
GOODWILL (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Goodwill [Line Items]    
Goodwill, Beginning Balance $ 55,313us-gaap_Goodwill $ 44,663us-gaap_Goodwill
Business combination 3,664mgic_BusinessCombinationGoodwill 10,043mgic_BusinessCombinationGoodwill
Classifications (735)mgic_BusinessCombinationGoodwillAdjustmentsDueToPurchasePriceAllocation 430mgic_BusinessCombinationGoodwillAdjustmentsDueToPurchasePriceAllocation
Foreign currency translation adjustments (2,752)us-gaap_GoodwillTranslationAdjustments 177us-gaap_GoodwillTranslationAdjustments
Goodwill, Ending Balance 55,490us-gaap_Goodwill 55,313us-gaap_Goodwill
IT Professional Services [Member]    
Goodwill [Line Items]    
Goodwill, Beginning Balance 28,495us-gaap_Goodwill
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
18,036us-gaap_Goodwill
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
Business combination 0mgic_BusinessCombinationGoodwill
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
9,007mgic_BusinessCombinationGoodwill
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
Classifications 0mgic_BusinessCombinationGoodwillAdjustmentsDueToPurchasePriceAllocation
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
430mgic_BusinessCombinationGoodwillAdjustmentsDueToPurchasePriceAllocation
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
Foreign currency translation adjustments (1,906)us-gaap_GoodwillTranslationAdjustments
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
1,022us-gaap_GoodwillTranslationAdjustments
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
Goodwill, Ending Balance 26,589us-gaap_Goodwill
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
28,495us-gaap_Goodwill
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
Software Services [Member]    
Goodwill [Line Items]    
Goodwill, Beginning Balance 26,818us-gaap_Goodwill
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
26,627us-gaap_Goodwill
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
Business combination 3,664mgic_BusinessCombinationGoodwill
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
1,036mgic_BusinessCombinationGoodwill
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
Classifications (496)mgic_BusinessCombinationGoodwillAdjustmentsDueToPurchasePriceAllocation
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
0mgic_BusinessCombinationGoodwillAdjustmentsDueToPurchasePriceAllocation
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
Foreign currency translation adjustments (1,085)us-gaap_GoodwillTranslationAdjustments
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
(845)us-gaap_GoodwillTranslationAdjustments
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
Goodwill, Ending Balance $ 28,901us-gaap_Goodwill
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
$ 26,818us-gaap_Goodwill
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
v2.4.1.9
ACCRUED EXPENSES AND OTHER ACCOUNTS PAYABLE (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Schedule Of Accrued Expenses And Other Accounts Payable [Line Items]    
Employees and payroll accruals $ 7,243us-gaap_EmployeeRelatedLiabilitiesCurrent $ 6,675us-gaap_EmployeeRelatedLiabilitiesCurrent
Accrued expenses 5,191us-gaap_AccruedLiabilitiesCurrent 2,925us-gaap_AccruedLiabilitiesCurrent
Deferred and contingent payments related to acquisitions 170mgic_DeferredPaymentsRelatedToAcquisition 4,167mgic_DeferredPaymentsRelatedToAcquisition
Government authorities 1,395mgic_OtherReceivableFromGovernmentAuthorities 2,495mgic_OtherReceivableFromGovernmentAuthorities
Other 1,014us-gaap_OtherAccountsPayableAndAccruedLiabilities 675us-gaap_OtherAccountsPayableAndAccruedLiabilities
Accrued Expenses And Other Accounts Payable $ 15,013mgic_AccruedExpensesAndOtherAccountsPayable $ 16,937mgic_AccruedExpensesAndOtherAccountsPayable
v2.4.1.9
LONG TERM DEBT (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Debt Instrument [Line Items]    
Other long term debt $ 8us-gaap_OtherLongTermDebt $ 20us-gaap_OtherLongTermDebt
Less - Current maturities (included under “short-term debt”) 0us-gaap_LongTermDebtCurrent (1,055)us-gaap_LongTermDebtCurrent
Long-term Debt, Total 490us-gaap_LongTermDebt 2,274us-gaap_LongTermDebt
Loans from banks in USD, Interest rate 3.70%us-gaap_DebtInstrumentInterestRateStatedPercentage [1]  
Loan from banks and other in NIS, Interest rate Maximum 5.90%us-gaap_DebtInstrumentInterestRateStatedPercentageRateRangeMaximum  
Loan from banks and other in NIS, Interest rate Minimum 4.10%us-gaap_DebtInstrumentInterestRateStatedPercentageRateRangeMinimum  
United States of America, Dollars [Member]    
Debt Instrument [Line Items]    
Loans from banks 0us-gaap_LongTermLoansFromBank
/ us-gaap_CurrencyAxis
= currency_USD
[1] 2,904us-gaap_LongTermLoansFromBank
/ us-gaap_CurrencyAxis
= currency_USD
[1]
Israel, New Shekels [Member]    
Debt Instrument [Line Items]    
Loans from banks $ 481us-gaap_LongTermLoansFromBank
/ us-gaap_CurrencyAxis
= currency_ILS
$ 405us-gaap_LongTermLoansFromBank
/ us-gaap_CurrencyAxis
= currency_ILS
[1] Loan from a US bank, received on November 2013 in the amount of $3,000, paid monthly in equal payment, for a period of 36 months bearing interest of Libor+3.5%. The loan agreement contains various covenants which require us to maintain certain financial ratios. The Company has met the financial ratios as of December 31, 2013. During 2014 the company repaid the loan.
v2.4.1.9
LONG TERM DEBT (Details Textual) (USD $)
12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2013
Nov. 30, 2013
Dec. 31, 2014
Debt Instrument [Line Items]      
Debt Instrument, Periodic Payment $ 3,000,000us-gaap_DebtInstrumentPeriodicPayment    
Debt Instrument, Description of Variable Rate Basis Libor+3.5%    
Debt Instrument, Payment Terms paid monthly in equal payment, for a period of 36 months    
Debt Instrument, Basis Spread on Variable Rate 3.50%us-gaap_DebtInstrumentBasisSpreadOnVariableRate1    
US Bank [Member]      
Debt Instrument [Line Items]      
Line of Credit Facility, Maximum Borrowing Capacity   3,000,000us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity
/ us-gaap_CreditFacilityAxis
= mgic_UsBankMember
 
Proceeds from Lines of Credit     $ 2,800,000us-gaap_ProceedsFromLinesOfCredit
/ us-gaap_CreditFacilityAxis
= mgic_UsBankMember
Line of Credit Facility, Interest Rate Description   interest equal to the Prime Rate in effect from time to time, plus 3% per annum; provided that the interest rate in effect on any day shall not be less than 6.0% per annum  
v2.4.1.9
TAXES ON INCOME (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Taxes [Line Items]      
Domestic $ 14,690us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic $ 16,165us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic $ 10,462us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic
Foreign 4,183us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign 2,266us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign 6,092us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
Income before taxes on income $ 18,873us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments $ 18,431us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments $ 16,554us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
v2.4.1.9
TAXES ON INCOME (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Current:      
Domestic $ 241us-gaap_CurrentFederalTaxExpenseBenefit $ (1,277)us-gaap_CurrentFederalTaxExpenseBenefit $ (1,291)us-gaap_CurrentFederalTaxExpenseBenefit
Foreign 689us-gaap_CurrentForeignTaxExpenseBenefit 781us-gaap_CurrentForeignTaxExpenseBenefit 302us-gaap_CurrentForeignTaxExpenseBenefit
Current Income Tax Expense (Benefit), Total 930us-gaap_CurrentIncomeTaxExpenseBenefit (496)us-gaap_CurrentIncomeTaxExpenseBenefit (989)us-gaap_CurrentIncomeTaxExpenseBenefit
Deferred taxes:      
Domestic 2,575us-gaap_DeferredFederalIncomeTaxExpenseBenefit 2,673us-gaap_DeferredFederalIncomeTaxExpenseBenefit 414us-gaap_DeferredFederalIncomeTaxExpenseBenefit
Foreign (1,198)us-gaap_DeferredForeignIncomeTaxExpenseBenefit (602)us-gaap_DeferredForeignIncomeTaxExpenseBenefit 669us-gaap_DeferredForeignIncomeTaxExpenseBenefit
Deferred Income Tax Expense (Benefit) 1,377us-gaap_DeferredIncomeTaxExpenseBenefit 2,071us-gaap_DeferredIncomeTaxExpenseBenefit 1,083us-gaap_DeferredIncomeTaxExpenseBenefit
Taxes on income (tax benefit) $ 2,307us-gaap_IncomeTaxExpenseBenefit $ 1,575us-gaap_IncomeTaxExpenseBenefit $ 94us-gaap_IncomeTaxExpenseBenefit
v2.4.1.9
TAXES ON INCOME (Details 2) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Deferred Tax Assets [Line Items]    
Net operating loss carryforwards $ 4,627us-gaap_DeferredTaxAssetsOperatingLossCarryforwards $ 5,293us-gaap_DeferredTaxAssetsOperatingLossCarryforwards
Allowances, reserves and intangible assets 1,080us-gaap_DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsReturnsAndAllowances 1,207us-gaap_DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsReturnsAndAllowances
Deferred tax assets before valuation allowance 5,707us-gaap_DeferredTaxAssetsGross 6,500us-gaap_DeferredTaxAssetsGross
Less - valuation allowance (3,570)us-gaap_DeferredTaxAssetsValuationAllowance (1,154)us-gaap_DeferredTaxAssetsValuationAllowance
Deferred tax assets 2,137us-gaap_DeferredTaxAssetsNet 5,346us-gaap_DeferredTaxAssetsNet
Capitalized software costs 0us-gaap_DeferredTaxLiabilitiesDeferredExpenseCapitalizedSoftware (1,723)us-gaap_DeferredTaxLiabilitiesDeferredExpenseCapitalizedSoftware
Deferred tax assets $ 2,137us-gaap_DeferredTaxAssetsLiabilitiesNet $ 3,623us-gaap_DeferredTaxAssetsLiabilitiesNet
v2.4.1.9
TAXES ON INCOME (Details 3) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Income Taxes [Line Items]    
Current tax assets $ 554us-gaap_DeferredTaxAssetsNetCurrent $ 1,949us-gaap_DeferredTaxAssetsNetCurrent
Non-current tax assets 1,583us-gaap_DeferredTaxAssetsNetNoncurrent 1,674us-gaap_DeferredTaxAssetsNetNoncurrent
Deferred tax assets $ 2,137us-gaap_DeferredTaxAssetsLiabilitiesNet $ 3,623us-gaap_DeferredTaxAssetsLiabilitiesNet
v2.4.1.9
TAXES ON INCOME (Details 4) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Income Taxes [Line Items]    
Current tax liabilities $ 760us-gaap_DeferredTaxLiabilitiesCurrent $ 2,567us-gaap_DeferredTaxLiabilitiesCurrent
Non-current tax liabilities 4,086us-gaap_DeferredTaxLiabilitiesNoncurrent 2,204us-gaap_DeferredTaxLiabilitiesNoncurrent
Net deferred tax liabilities $ 4,846us-gaap_DeferredTaxLiabilities $ 4,771us-gaap_DeferredTaxLiabilities
v2.4.1.9
TAXES ON INCOME (Details 5) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Taxes [Line Items]      
Income before taxes, as reported in the consolidated statements of income $ 18,873us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments $ 18,431us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments $ 16,554us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
Statutory tax rate 26.50%us-gaap_EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate 25.00%us-gaap_EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate 25.00%us-gaap_EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
Theoretical tax expenses on the above amount at the Israeli statutory tax rate 5,001us-gaap_IncomeTaxReconciliationStateAndLocalIncomeTaxes 4,609us-gaap_IncomeTaxReconciliationStateAndLocalIncomeTaxes 4,139us-gaap_IncomeTaxReconciliationStateAndLocalIncomeTaxes
Tax adjustment in respect of different tax rates 80us-gaap_IncomeTaxReconciliationOtherAdjustments 484us-gaap_IncomeTaxReconciliationOtherAdjustments 444us-gaap_IncomeTaxReconciliationOtherAdjustments
Deferred taxes on losses for which full valuation allowance was provided in the past 236mgic_IncomeTaxReconciliationDeferredTaxOnLosses (304)mgic_IncomeTaxReconciliationDeferredTaxOnLosses 651mgic_IncomeTaxReconciliationDeferredTaxOnLosses
Changes in valuation allowance 0us-gaap_IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance 0us-gaap_IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance (2,003)us-gaap_IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
Tax benefits in respect of prior years, net (516)us-gaap_IncomeTaxReconciliationPriorYearIncomeTaxes 203us-gaap_IncomeTaxReconciliationPriorYearIncomeTaxes (1,126)us-gaap_IncomeTaxReconciliationPriorYearIncomeTaxes [1]
Nondeductible expenses 82us-gaap_IncomeTaxReconciliationNondeductibleExpense 95us-gaap_IncomeTaxReconciliationNondeductibleExpense 20us-gaap_IncomeTaxReconciliationNondeductibleExpense
Uncertain tax position and other differences (2,576)mgic_IncomeTaxReconciliationUncertainTaxPositionAndOtherDifferences (3,512)mgic_IncomeTaxReconciliationUncertainTaxPositionAndOtherDifferences (2,031)mgic_IncomeTaxReconciliationUncertainTaxPositionAndOtherDifferences [2]
Income tax (tax benefit) $ 2,307us-gaap_IncomeTaxExpenseBenefit $ 1,575us-gaap_IncomeTaxExpenseBenefit $ 94us-gaap_IncomeTaxExpenseBenefit
[1] In 2012, the Company reversed its write-off of tax prepayment advances from prior years since the Company believes the utilization of the prepayments is more-likely-than not in the near future.
[2] This amount is mainly comprised of tax provisions reversal due to statute of limitation of prior years' tax assessments amounting to $1,270.
v2.4.1.9
TAXES ON INCOME (Details 6) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Tax Contingency [Line Items]      
Gross unrecognized tax benefits $ 498us-gaap_UnrecognizedTaxBenefits $ 3,309us-gaap_UnrecognizedTaxBenefits $ 3,528us-gaap_UnrecognizedTaxBenefits
Increase in tax positions taken in prior years 0us-gaap_UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions 0us-gaap_UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions 270us-gaap_UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
Decrease in tax positions taken in prior years (156)us-gaap_UnrecognizedTaxBenefitsDecreasesResultingFromCurrentPeriodTaxPositions (2,811)us-gaap_UnrecognizedTaxBenefitsDecreasesResultingFromCurrentPeriodTaxPositions (489)us-gaap_UnrecognizedTaxBenefitsDecreasesResultingFromCurrentPeriodTaxPositions
Gross unrecognized tax benefits $ 342us-gaap_UnrecognizedTaxBenefits $ 498us-gaap_UnrecognizedTaxBenefits $ 3,309us-gaap_UnrecognizedTaxBenefits
v2.4.1.9
TAXES ON INCOME (Details Textual) (USD $)
In Thousands, unless otherwise specified
1 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income Taxes [Line Items]          
Effective Income Tax Rate Reconciliation, State and Local Income Taxes   26.50%us-gaap_EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes 25.00%us-gaap_EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes 25.00%us-gaap_EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes  
Operating Loss Carryforwards   $ 15,929us-gaap_OperatingLossCarryforwards      
Effective Income Tax Rate Reconciliation Tax Withholding Percent 90.00%mgic_EffectiveIncomeTaxRateReconciliationTaxWithholdingPercent   20.00%mgic_EffectiveIncomeTaxRateReconciliationTaxWithholdingPercent    
Income Tax Expense Benefit Continue Operations   156mgic_IncomeTaxExpenseBenefitContinueOperations 2,811mgic_IncomeTaxExpenseBenefitContinueOperations 219mgic_IncomeTaxExpenseBenefitContinueOperations  
Provisions Tax Reversal For Limitation Of Prior Tax     1,270mgic_ProvisionsTaxReversalForLimitationOfPriorTax    
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate   26.50%us-gaap_EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate 25.00%us-gaap_EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate 25.00%us-gaap_EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate  
Cash and Cash Equivalents, at Carrying Value 35,134us-gaap_CashAndCashEquivalentsAtCarryingValue 72,515us-gaap_CashAndCashEquivalentsAtCarryingValue 35,134us-gaap_CashAndCashEquivalentsAtCarryingValue 37,744us-gaap_CashAndCashEquivalentsAtCarryingValue 28,711us-gaap_CashAndCashEquivalentsAtCarryingValue
Non-Israel Subsidiaries [Member]          
Income Taxes [Line Items]          
Cash and Cash Equivalents, at Carrying Value   21,200us-gaap_CashAndCashEquivalentsAtCarryingValue
/ invest_InvestmentGeographicRegionAxis
= mgic_NonisraelSubsidiariesMember
     
Europe [Member]          
Income Taxes [Line Items]          
Operating Loss Carryforwards   4,999us-gaap_OperatingLossCarryforwards
/ us-gaap_StatementGeographicalAxis
= us-gaap_EuropeMember
     
United States [Member]          
Income Taxes [Line Items]          
Operating Loss Carryforwards   $ 427us-gaap_OperatingLossCarryforwards
/ us-gaap_StatementGeographicalAxis
= mgic_UnitedStatesMember
     
Other Areas [Member] | Year Two Thousand Fourteen [Member]          
Income Taxes [Line Items]          
Effective Income Tax Rate Reconciliation, State and Local Income Taxes   16.00%us-gaap_EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes
/ mgic_CountrZoneAxis
= mgic_OtherAreasMember
/ mgic_YearAxis
= mgic_YearTwoThousandFourteenMember
     
v2.4.1.9
EQUITY (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Outstanding- Number of options 703,110us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber  
Granted - Number of options 155,000us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross  
Exercised - Number of options (115,721)mgic_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisedInPeriodGross  
Forfeited - Number of options (3,500)us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod  
Outstanding- Number of options 738,889us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber 703,110us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
Exercisable - Number of options 448,639us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber  
Vested and expected to vest - Number of options 738,889us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber  
Outstanding - Weighted average exercise price $ 3.16us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice  
Granted - Weighted average exercise price $ 7.47us-gaap_ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice  
Exercised - Weighted average exercise price $ 1.86us-gaap_ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice  
Forfeited - Weighted average exercise price $ 4.00us-gaap_ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice  
Outstanding - Weighted average exercise price $ 4.26us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice $ 3.16us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
Exercisable - Weighted average exercise price $ 2.95us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice  
Vested and expected to vest - Weighted average exercise price $ 4.26us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice  
Outstanding - Weighted average remaining contractual term (in years) 6 years 5 months 1 day 6 years 8 months 5 days
Exercisable - Weighted average remaining contractual term (in years) 5 years 11 days  
Vested and expected to vest - Weighted average remaining contractual term (in years) 6 years 5 months 1 day  
Outstanding - Aggregate intrinsic value $ 2,298us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue  
Outstanding - Aggregate intrinsic value 1,248us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue 2,298us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
Exercisable - Aggregate intrinsic value 1,348us-gaap_SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1  
Vested and expected to vest - Aggregate intrinsic value $ 1,248us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue  
v2.4.1.9
EQUITY (Details 1) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Options Outstanding 738,889us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber 703,110us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
Weighted average remaining contractual Life (years) 6 years 5 months 1 day 6 years 8 months 5 days
Weighted average exercise price $ 4.26us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice $ 3.16us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
Options exercisable 448,639us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber  
Weighted averageexercise price of exercisable $ 2.95us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice  
Exercise Price One [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Options Outstanding 4,000us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceOneMember
 
Weighted average remaining contractual Life (years) 4 years 2 months 26 days  
Weighted average exercise price $ 0us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceOneMember
 
Options exercisable 4,000us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceOneMember
 
Weighted averageexercise price of exercisable $ 0us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceOneMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit $ 0us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceOneMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit $ 1us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeUpperRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceOneMember
 
Exercise Price Two [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Options Outstanding 69,200us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceTwoMember
 
Weighted average remaining contractual Life (years) 1 year 10 months 6 days  
Weighted average exercise price $ 1.20us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceTwoMember
 
Options exercisable 69,200us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceTwoMember
 
Weighted averageexercise price of exercisable $ 1.20us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceTwoMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit $ 1.01us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceTwoMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit $ 2us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeUpperRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceTwoMember
 
Exercise Price Three [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Options Outstanding 173,667us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceThreeMember
 
Weighted average remaining contractual Life (years) 4 years 9 months 18 days  
Weighted average exercise price $ 2.30us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceThreeMember
 
Options exercisable 173,667us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceThreeMember
 
Weighted averageexercise price of exercisable $ 2.30us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceThreeMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit $ 2.01us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceThreeMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit $ 3us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeUpperRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceThreeMember
 
Exercise Price Four [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Options Outstanding 252,022us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceFourMember
 
Weighted average remaining contractual Life (years) 6 years 1 month 13 days  
Weighted average exercise price $ 3.96us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceFourMember
 
Options exercisable 180,522us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceFourMember
 
Weighted averageexercise price of exercisable $ 3.95us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceFourMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit $ 3.01us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceFourMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit $ 4us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeUpperRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceFourMember
 
Exercise Price Five [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Options Outstanding 0us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceFiveMember
 
Weighted average remaining contractual Life (years) 0 years  
Weighted average exercise price $ 0us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceFiveMember
 
Options exercisable 0us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceFiveMember
 
Weighted averageexercise price of exercisable $ 0us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceFiveMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit $ 4.01us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceFiveMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit $ 5us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeUpperRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceFiveMember
 
Exercise Price Six [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Options Outstanding 85,000us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceSixMember
 
Weighted average remaining contractual Life (years) 8 years 7 months 10 days  
Weighted average exercise price $ 6.00us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceSixMember
 
Options exercisable 21,250us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceSixMember
 
Weighted averageexercise price of exercisable $ 6.00us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceSixMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit $ 5.01us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceSixMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit $ 6us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeUpperRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceSixMember
 
Exercise Price Seven [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Options Outstanding 75,000us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceSevenMemberMember
 
Weighted average remaining contractual Life (years) 9 years 10 months 13 days  
Weighted average exercise price $ 6.89us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceSevenMemberMember
 
Options exercisable 0us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceSevenMemberMember
 
Weighted averageexercise price of exercisable $ 0us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceSevenMemberMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit $ 6.01us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceSevenMemberMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit $ 7us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeUpperRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceSevenMemberMember
 
Exercise Price Eight [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Options Outstanding 0us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceEightMemberMember
 
Weighted average remaining contractual Life (years) 0 years  
Weighted average exercise price $ 0us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceEightMemberMember
 
Options exercisable 0us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceEightMemberMember
 
Weighted averageexercise price of exercisable $ 0us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceEightMemberMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit $ 7.01us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceEightMemberMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit $ 8us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeUpperRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceEightMemberMember
 
Exercise Price Nine [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Options Outstanding 80,000us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceNineMemberMember
 
Weighted average remaining contractual Life (years) 9 years 4 months 10 days  
Weighted average exercise price $ 8.01us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceNineMemberMember
 
Options exercisable 0us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceNineMemberMember
 
Weighted averageexercise price of exercisable $ 0us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceNineMemberMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit $ 8.01us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeLowerRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceNineMemberMember
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit $ 9us-gaap_ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeUpperRangeLimit
/ mgic_ExercisePriceAxis
= mgic_ExercisePriceNineMemberMember
 
v2.4.1.9
EQUITY (Details 2) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Accumulated realized and unrealized gain on available-for-sale securities, net $ (121)us-gaap_AccumulatedOtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentNetOfTax $ 138us-gaap_AccumulatedOtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentNetOfTax $ 173us-gaap_AccumulatedOtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentNetOfTax
Accumulated foreign currency translation adjustments (5,243)us-gaap_AccumulatedOtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentNetOfTax (327)us-gaap_AccumulatedOtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentNetOfTax (776)us-gaap_AccumulatedOtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentNetOfTax
Accumulated unrealized gain (loss) on derivative instruments, net 17mgic_AccumulatedOtherComprehensiveIncomeLossUnrealizedGainLossOnDerivativeInstrumentsNet 17mgic_AccumulatedOtherComprehensiveIncomeLossUnrealizedGainLossOnDerivativeInstrumentsNet 17mgic_AccumulatedOtherComprehensiveIncomeLossUnrealizedGainLossOnDerivativeInstrumentsNet
Total other comprehensive income $ (5,347)us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax $ (172)us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax $ (586)us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax
v2.4.1.9
EQUITY (Details Textual)
In Thousands, except Share data, unless otherwise specified
0 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended
Sep. 04, 2012
Nov. 30, 2014
ILS
Dec. 31, 2014
USD ($)
Dec. 31, 2013
USD ($)
Dec. 31, 2012
USD ($)
Dec. 31, 2010
USD ($)
Aug. 19, 2014
USD ($)
Feb. 18, 2014
USD ($)
Aug. 12, 2013
USD ($)
Feb. 14, 2013
USD ($)
Sep. 10, 2012
USD ($)
Dec. 23, 2010
USD ($)
Feb. 04, 2015
Subsequent Event [Member]
USD ($)
Dec. 31, 2014
Payment One [Member]
Dec. 31, 2014
Payment Two [Member]
Dec. 31, 2013
Payment Three [Member]
Dec. 31, 2013
Payment Four [Member]
Dec. 31, 2013
Payment Five [Member]
Dec. 31, 2007
2007 Plan [Member]
Dec. 31, 2014
2007 Plan [Member]
Minimum [Member]
Dec. 31, 2014
2007 Plan [Member]
Maximum [Member]
Dec. 31, 2010
Common Stock [Member]
USD ($)
Class of Stock [Line Items]                                            
Issuance of Ordinary shares and warrants (net of issuance expenses $ 1,080) (in shares)                                           3,287,616us-gaap_StockIssuedDuringPeriodSharesNewIssues
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
Class of Warrant or Right, Number of Securities Called by Warrants or Rights                       1,134,231us-gaap_ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights                    
Class Of Warrant Exercise Price Of Warrants Or Rights                       $ 8.26mgic_ClassOfWarrantExercisePriceOfWarrantsOrRights                    
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant     1,001,563us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant                                      
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized   1,167us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized                                 1,500,000us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized
/ us-gaap_AwardTypeAxis
= mgic_TwoThousandAndSevenPlanMember
     
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value     $ 3.76us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue $ 6us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue $ 4us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue                                  
Exercised - Aggregate intrinsic value     $ 741us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue $ 529us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue $ 572us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue                                  
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options     646us-gaap_EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions                                      
Dividends Payable, Amount Per Share             $ 0.095us-gaap_DividendsPayableAmountPerShare $ 0.12us-gaap_DividendsPayableAmountPerShare $ 0.09us-gaap_DividendsPayableAmountPerShare $ 0.12us-gaap_DividendsPayableAmountPerShare $ 0.10us-gaap_DividendsPayableAmountPerShare   $ 0.081us-gaap_DividendsPayableAmountPerShare
/ us-gaap_SubsequentEventTypeAxis
= us-gaap_SubsequentEventMember
                 
Issuance of Ordinary shares           20,290us-gaap_PaymentsOfStockIssuanceCosts                                
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized                                     1,000,000us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfAdditionalSharesAuthorized
/ us-gaap_AwardTypeAxis
= mgic_TwoThousandAndSevenPlanMember
     
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period   4 years                                   3 years 4 years  
Dividends Payable             4,195us-gaap_DividendsPayableCurrentAndNoncurrent 4,468us-gaap_DividendsPayableCurrentAndNoncurrent 3,390us-gaap_DividendsPayableCurrentAndNoncurrent 4,397us-gaap_DividendsPayableCurrentAndNoncurrent 3,661us-gaap_DividendsPayableCurrentAndNoncurrent   3,582us-gaap_DividendsPayableCurrentAndNoncurrent
/ us-gaap_SubsequentEventTypeAxis
= us-gaap_SubsequentEventMember
                 
Dividends Payable, Date to be Paid                           Oct. 17, 2012 Mar. 14, 2013 Sep. 03, 2013 Mar. 14, 2014 Sep. 04, 2014        
Dividend Distribution Maximum Percentage 50.00%mgic_DividendDistributionMaximumPercentage   50.00%mgic_DividendDistributionMaximumPercentage   50.00%mgic_DividendDistributionMaximumPercentage                                  
Shares Issued, Price Per Share                                           $ 6.5us-gaap_SharesIssuedPricePerShare
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value   5,000us-gaap_SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue                                        
Share-based Compensation Arrangement By Share-based Payment Award Options Nonvested Grant Date Fair Value   5,910mgic_SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedGrantDateFairvalue                                        
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price   1us-gaap_SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1                                        
v2.4.1.9
SELECTED STATEMENTS OF INCOME DATA (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Research and Development Expense [Line Items]      
Total costs $ 9,017mgic_ResearchAndDevelopmentExpenseGross $ 8,419mgic_ResearchAndDevelopmentExpenseGross $ 7,916mgic_ResearchAndDevelopmentExpenseGross
Less - capitalized software costs (4,267)us-gaap_ResearchAndDevelopmentExpenseSoftwareExcludingAcquiredInProcessCost (4,713)us-gaap_ResearchAndDevelopmentExpenseSoftwareExcludingAcquiredInProcessCost (4,969)us-gaap_ResearchAndDevelopmentExpenseSoftwareExcludingAcquiredInProcessCost
Research and development, net $ 4,750us-gaap_ResearchAndDevelopmentExpense $ 3,706us-gaap_ResearchAndDevelopmentExpense $ 2,947us-gaap_ResearchAndDevelopmentExpense
v2.4.1.9
SELECTED STATEMENTS OF INCOME DATA (Details1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Other Nonoperating Income Expense [Line Items]      
Interest income net of bank charges $ (156)us-gaap_InterestIncomeExpenseNet $ (170)us-gaap_InterestIncomeExpenseNet $ 20us-gaap_InterestIncomeExpenseNet
Interest expenses related to liabilities in connection with acquisitions (152)mgic_InterestExpensesRelatedToAcquisition (407)mgic_InterestExpensesRelatedToAcquisition (48)mgic_InterestExpensesRelatedToAcquisition
Interest income from debt instruments 91mgic_InterestIncomeFromDebtInstruments 46mgic_InterestIncomeFromDebtInstruments 49mgic_InterestIncomeFromDebtInstruments
Loss arising from foreign currency translation and other (1,569)us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossBeforeReclassificationAndTax (153)us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossBeforeReclassificationAndTax (11)us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossBeforeReclassificationAndTax
Financial income(expenses), net $ (1,786)us-gaap_NonoperatingGainsLosses $ (684)us-gaap_NonoperatingGainsLosses $ 10us-gaap_NonoperatingGainsLosses
v2.4.1.9
COMMITMENTS AND CONTINGENCIES (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Operating Leased Assets [Line Items]  
2015 $ 1,798us-gaap_OperatingLeasesFutureMinimumPaymentsDueCurrent
2016 773us-gaap_OperatingLeasesFutureMinimumPaymentsDueInTwoYears
2017 578us-gaap_OperatingLeasesFutureMinimumPaymentsDueInThreeYears
2018 and thereafter 583us-gaap_OperatingLeasesFutureMinimumPaymentsDueThereafter
Operating Leases, Future Minimum Payments Due $ 3,732us-gaap_OperatingLeasesFutureMinimumPaymentsDue
v2.4.1.9
COMMITMENTS AND CONTINGENCIES (Details Textual)
1 Months Ended 12 Months Ended
Aug. 31, 2009
USD ($)
Aug. 31, 2009
ILS
Dec. 31, 2014
USD ($)
sqft
Dec. 31, 2013
USD ($)
Dec. 31, 2012
USD ($)
Dec. 31, 2014
New Israeli Shekel [Member]
USD ($)
Loss Contingencies [Line Items]            
Operating Leases, Rent Expense     $ 1,736,000us-gaap_LeaseAndRentalExpense $ 1,911,000us-gaap_LeaseAndRentalExpense $ 1,701,000us-gaap_LeaseAndRentalExpense  
Lease Agreement Maximum Penalties Amount     147,000mgic_LeaseAgreementMaximumPenaltiesAmount      
Guarantee Obligations Total           295,000mgic_GuaranteeObligationsTotal
/ mgic_LossContingencyAxis
= mgic_NewIsraeliShekelMember
Loss Contingency, Damages Sought, Value 15,000,000us-gaap_LossContingencyDamagesSoughtValue 52,000,000us-gaap_LossContingencyDamagesSoughtValue        
Lease Commitment Description     amount of lease commitment for the next 6 months in Israel and India mentioned above is approximately $259      
Area of Land     59,546us-gaap_AreaOfLand      
Net Impact On Results Of Operation $ 1,600,000mgic_NetImpactOnResultsOfOperation          
v2.4.1.9
NET EARNINGS PER SHARE (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Earnings Per Share [Line Items]      
Numerator for basic and diluted earnings per share - net income available to Magic shareholders $ 15,520us-gaap_NetIncomeLoss $ 15,880us-gaap_NetIncomeLoss $ 16,183us-gaap_NetIncomeLoss
Weighted average ordinary shares outstanding:      
Denominator for basic net earnings per share 43,287,523us-gaap_WeightedAverageNumberOfSharesOutstandingBasic 36,835,163us-gaap_WeightedAverageNumberOfSharesOutstandingBasic 36,502,264us-gaap_WeightedAverageNumberOfSharesOutstandingBasic
Effect of dilutive securities 17,291us-gaap_WeightedAverageNumberDilutedSharesOutstandingAdjustment 458,753us-gaap_WeightedAverageNumberDilutedSharesOutstandingAdjustment 605,406us-gaap_WeightedAverageNumberDilutedSharesOutstandingAdjustment
Denominator for diluted net earnings per share 43,304,814us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding 37,293,916us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding 37,107,670us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding
Basic and diluted earnings per share (in dollars per share) $ 0.36us-gaap_EarningsPerShareBasicAndDiluted $ 0.43us-gaap_EarningsPerShareBasicAndDiluted $ 0.44us-gaap_EarningsPerShareBasicAndDiluted
v2.4.1.9
SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]      
Total revenues $ 164,304us-gaap_SalesRevenueNet $ 144,958us-gaap_SalesRevenueNet $ 126,380us-gaap_SalesRevenueNet
Expenses 143,578us-gaap_OtherGeneralExpense 125,831us-gaap_OtherGeneralExpense 109,972us-gaap_OtherGeneralExpense
Segment operating income (loss) 20,726us-gaap_OperatingIncomeLoss 19,127us-gaap_OperatingIncomeLoss 16,408us-gaap_OperatingIncomeLoss
Depreciation and amortization 8,594us-gaap_OtherDepreciationAndAmortization 8,380us-gaap_OtherDepreciationAndAmortization 7,463us-gaap_OtherDepreciationAndAmortization
Software Services [Member]      
Segment Reporting Information [Line Items]      
Total revenues 69,861us-gaap_SalesRevenueNet
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
67,453us-gaap_SalesRevenueNet
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
65,410us-gaap_SalesRevenueNet
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
Expenses 54,464us-gaap_OtherGeneralExpense
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
53,164us-gaap_OtherGeneralExpense
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
50,497us-gaap_OtherGeneralExpense
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
Segment operating income (loss) 15,397us-gaap_OperatingIncomeLoss
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
14,289us-gaap_OperatingIncomeLoss
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
14,913us-gaap_OperatingIncomeLoss
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
Depreciation and amortization 6,065us-gaap_OtherDepreciationAndAmortization
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
5,917us-gaap_OtherDepreciationAndAmortization
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
5,937us-gaap_OtherDepreciationAndAmortization
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_SoftwareServicesMember
IT Professional Services [Member]      
Segment Reporting Information [Line Items]      
Total revenues 94,443us-gaap_SalesRevenueNet
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
77,505us-gaap_SalesRevenueNet
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
60,970us-gaap_SalesRevenueNet
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
Expenses 84,873us-gaap_OtherGeneralExpense
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
68,846us-gaap_OtherGeneralExpense
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
55,456us-gaap_OtherGeneralExpense
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
Segment operating income (loss) 9,570us-gaap_OperatingIncomeLoss
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
8,659us-gaap_OperatingIncomeLoss
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
5,514us-gaap_OperatingIncomeLoss
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
Depreciation and amortization 2,263us-gaap_OtherDepreciationAndAmortization
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
2,210us-gaap_OtherDepreciationAndAmortization
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
1,182us-gaap_OtherDepreciationAndAmortization
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_ItProfessionalServicesMember
Unallocated Expense [Member]      
Segment Reporting Information [Line Items]      
Total revenues 0us-gaap_SalesRevenueNet
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_UnallocatedExpensesMember
0us-gaap_SalesRevenueNet
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_UnallocatedExpensesMember
0us-gaap_SalesRevenueNet
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_UnallocatedExpensesMember
Expenses 4,241us-gaap_OtherGeneralExpense
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_UnallocatedExpensesMember
3,821us-gaap_OtherGeneralExpense
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_UnallocatedExpensesMember
4,019us-gaap_OtherGeneralExpense
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_UnallocatedExpensesMember
Segment operating income (loss) (4,241)us-gaap_OperatingIncomeLoss
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_UnallocatedExpensesMember
(3,821)us-gaap_OperatingIncomeLoss
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_UnallocatedExpensesMember
(4,019)us-gaap_OperatingIncomeLoss
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_UnallocatedExpensesMember
Depreciation and amortization $ 266us-gaap_OtherDepreciationAndAmortization
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_UnallocatedExpensesMember
$ 253us-gaap_OtherDepreciationAndAmortization
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_UnallocatedExpensesMember
$ 344us-gaap_OtherDepreciationAndAmortization
/ us-gaap_StatementBusinessSegmentsAxis
= mgic_UnallocatedExpensesMember
v2.4.1.9
SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Details 1) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Revenue, Major Customer [Line Items]      
Total revenues $ 164,304us-gaap_SalesRevenueNet $ 144,958us-gaap_SalesRevenueNet $ 126,380us-gaap_SalesRevenueNet
Israel [Member]      
Revenue, Major Customer [Line Items]      
Total revenues 29,198us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= mgic_IsraelMember
24,006us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= mgic_IsraelMember
11,561us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= mgic_IsraelMember
Europe [Member]      
Revenue, Major Customer [Line Items]      
Total revenues 37,409us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= us-gaap_EuropeMember
31,386us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= us-gaap_EuropeMember
29,139us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= us-gaap_EuropeMember
United States [Member]      
Revenue, Major Customer [Line Items]      
Total revenues 78,606us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= mgic_UnitedStatesMember
70,872us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= mgic_UnitedStatesMember
64,591us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= mgic_UnitedStatesMember
Japan [Member]      
Revenue, Major Customer [Line Items]      
Total revenues 11,299us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= mgic_JapanMember
11,965us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= mgic_JapanMember
12,661us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= mgic_JapanMember
Other [Member]      
Revenue, Major Customer [Line Items]      
Total revenues $ 3,927us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= mgic_OthersMember
$ 6,729us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= mgic_OthersMember
$ 8,428us-gaap_SalesRevenueNet
/ us-gaap_StatementGeographicalAxis
= mgic_OthersMember
v2.4.1.9
SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Details 2) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Segment Reporting Information [Line Items]    
Long-Lived Assets $ 90,039us-gaap_NoncurrentAssets $ 89,634us-gaap_NoncurrentAssets
Israel [Member]    
Segment Reporting Information [Line Items]    
Long-Lived Assets 58,263us-gaap_NoncurrentAssets
/ us-gaap_StatementGeographicalAxis
= mgic_IsraelMember
54,656us-gaap_NoncurrentAssets
/ us-gaap_StatementGeographicalAxis
= mgic_IsraelMember
Europe [Member]    
Segment Reporting Information [Line Items]    
Long-Lived Assets 1,523us-gaap_NoncurrentAssets
/ us-gaap_StatementGeographicalAxis
= us-gaap_EuropeMember
3,117us-gaap_NoncurrentAssets
/ us-gaap_StatementGeographicalAxis
= us-gaap_EuropeMember
United States [Member]    
Segment Reporting Information [Line Items]    
Long-Lived Assets 22,174us-gaap_NoncurrentAssets
/ us-gaap_StatementGeographicalAxis
= mgic_UnitedStatesMember
23,287us-gaap_NoncurrentAssets
/ us-gaap_StatementGeographicalAxis
= mgic_UnitedStatesMember
Japan [Member]    
Segment Reporting Information [Line Items]    
Long-Lived Assets 4,786us-gaap_NoncurrentAssets
/ us-gaap_StatementGeographicalAxis
= mgic_JapanMember
5,180us-gaap_NoncurrentAssets
/ us-gaap_StatementGeographicalAxis
= mgic_JapanMember
Others [Member]    
Segment Reporting Information [Line Items]    
Long-Lived Assets $ 3,291us-gaap_NoncurrentAssets
/ us-gaap_StatementGeographicalAxis
= mgic_OthersMember
$ 3,395us-gaap_NoncurrentAssets
/ us-gaap_StatementGeographicalAxis
= mgic_OthersMember
v2.4.1.9
SEGMENT GEOGRAPHICAL INFORMATION AND MAJOR CUSTOMERS (Details Textual)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]      
Concentration Risk, Percentage 10.00%us-gaap_ConcentrationRiskPercentage1 13.00%us-gaap_ConcentrationRiskPercentage1 19.00%us-gaap_ConcentrationRiskPercentage1
v2.4.1.9
SUBSEQUENT EVENTS (Details Textual) (USD $)
In Thousands, except Per Share data, unless otherwise specified
Aug. 19, 2014
Feb. 18, 2014
Aug. 12, 2013
Feb. 14, 2013
Sep. 10, 2012
Feb. 25, 2015
Feb. 04, 2015
Subsequent Event [Line Items]              
Dividends Payable, Amount Per Share $ 0.095us-gaap_DividendsPayableAmountPerShare $ 0.12us-gaap_DividendsPayableAmountPerShare $ 0.09us-gaap_DividendsPayableAmountPerShare $ 0.12us-gaap_DividendsPayableAmountPerShare $ 0.10us-gaap_DividendsPayableAmountPerShare    
Dividends Payable $ 4,195us-gaap_DividendsPayableCurrentAndNoncurrent $ 4,468us-gaap_DividendsPayableCurrentAndNoncurrent $ 3,390us-gaap_DividendsPayableCurrentAndNoncurrent $ 4,397us-gaap_DividendsPayableCurrentAndNoncurrent $ 3,661us-gaap_DividendsPayableCurrentAndNoncurrent    
Subsequent Event [Member]              
Subsequent Event [Line Items]              
Dividends Payable, Amount Per Share             $ 0.081us-gaap_DividendsPayableAmountPerShare
/ us-gaap_SubsequentEventTypeAxis
= us-gaap_SubsequentEventMember
Dividends Payable             $ 3,582us-gaap_DividendsPayableCurrentAndNoncurrent
/ us-gaap_SubsequentEventTypeAxis
= us-gaap_SubsequentEventMember
Business Acquisition, Percentage of Voting Interests Acquired           70.00%us-gaap_BusinessAcquisitionPercentageOfVotingInterestsAcquired
/ us-gaap_SubsequentEventTypeAxis
= us-gaap_SubsequentEventMember
 
Business Acquisition Percentage Of Definitive Agreement           100.00%mgic_BusinessAcquisitionPercentageOfDefinitiveAgreement
/ us-gaap_SubsequentEventTypeAxis
= us-gaap_SubsequentEventMember