Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Entity Registrant Name | 'ALLIANCE FIBER OPTIC PRODUCTS INC | ' |
Entity Central Index Key | '0001122342 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 18,335,022 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $15,237 | $4,793 |
Short-term investments | 30,437 | 28,482 |
Accounts receivable, net | 12,365 | 8,046 |
Inventories, net | 10,236 | 6,933 |
Deferred tax asset | 1,234 | 1,234 |
Prepaid expense and other current assets | 2,122 | 1,166 |
Total current assets | 71,631 | 50,654 |
Long-term investments | 10,408 | 10,274 |
Property and equipment, net | 10,292 | 7,708 |
Deferred tax asset | 2,468 | 2,468 |
Other assets | 197 | 249 |
Total assets | 94,996 | 71,353 |
Current liabilities: | ' | ' |
Accounts payable | 12,242 | 6,591 |
Accrued expenses | 6,038 | 4,115 |
Total current liabilities | 18,280 | 10,706 |
Other long-term liabilities | 604 | 616 |
Total liabilities | 18,884 | 11,322 |
Commitments and contingencies (Note 9) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, par value $0.001: 5,000,000 shares authorized: no shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | ' | ' |
Common stock, $0.001 par value: 20,000,000 shares authorized; 18,331,022 and 17,264,926 shares issued and outstanding at September 30, 2013 and December 31, 2012. | 18 | 9 |
Additional paid-in-capital | 116,313 | 111,900 |
Accumulated deficit | -42,919 | -54,672 |
Accumulated other comprehensive income | 2,700 | 2,794 |
Stockholders' equity | 76,112 | 60,031 |
Total liabilities and stockholders' equity | $94,996 | $71,353 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 18,331,022 | 17,264,926 |
Common stock, shares outstanding | 18,331,022 | 17,264,926 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income and Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidated Statements of Income and Comprehensive Income[Abstract] | ' | ' | ' | ' |
Revenues | $23,074 | $12,390 | $54,266 | $34,452 |
Cost of revenues | 14,218 | 7,979 | 33,722 | 22,688 |
Gross profit | 8,856 | 4,411 | 20,544 | 11,764 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 1,024 | 819 | 2,696 | 2,465 |
Sales and marketing | 835 | 614 | 2,338 | 1,951 |
General and administrative | 1,339 | 1,079 | 3,640 | 3,281 |
Total operating expenses | 3,198 | 2,512 | 8,674 | 7,697 |
Income from operations | 5,658 | 1,899 | 11,870 | 4,067 |
Interest and other income, net | 173 | 194 | 469 | 504 |
Net income before income tax | 5,831 | 2,093 | 12,339 | 4,571 |
Income tax | -210 | -201 | -586 | -526 |
Net income | 5,621 | 1,892 | 11,753 | 4,045 |
Cumulative translation adjustments | 183 | 303 | -97 | 585 |
Unrealized gain on investments | 3 | 42 | 2 | 33 |
Comprehensive income | $5,807 | $2,237 | $11,658 | $4,663 |
Net income per share: | ' | ' | ' | ' |
Basic | $0.31 | $0.11 | $0.67 | $0.23 |
Diluted | $0.30 | $0.11 | $0.65 | $0.22 |
Shares used in computing net income per share: | ' | ' | ' | ' |
Basic | 18,056 | 17,581 | 17,584 | 17,638 |
Diluted | 18,754 | 17,977 | 18,107 | 18,000 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net Income | $11,753 | $4,045 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,513 | 1,189 |
(Gain) Loss on disposal of property and equipment | -5 | 6 |
Amortization of stock-based compensation | 1,254 | 786 |
Deferred restricted stock unit compensation | -1,326 | -647 |
Provision for inventory | -222 | 164 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -4,318 | -1,662 |
Inventories | -3,081 | -703 |
Prepaid expenses and other assets | -956 | -1,056 |
Other assets | 53 | -52 |
Accounts payable | 5,651 | 2,592 |
Accrued expenses | 1,923 | 649 |
Other long-term liabilities | -12 | 34 |
Net cash provided by operating activities | 12,227 | 5,345 |
Cash flows from investing activities: | ' | ' |
Purchase of short-term investments | -16,028 | -17,193 |
Proceeds from sales and maturities of short-term investments | 14,075 | 8,850 |
Purchase of long-term investments | -134 | -131 |
Purchase of property and equipment | -4,025 | -717 |
Net cash used in investing activities | -6,112 | -9,191 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of stock under ESPP | 235 | 207 |
Proceeds from the exercise of stock options | 5,131 | 477 |
Repurchase of common stock | -873 | -2,395 |
Repayments of bank borrowings | ' | -230 |
Net cash provided by (used in) financing activities | 4,493 | -1,941 |
Effect of exchange rate changes on cash and cash equivalents | -164 | 485 |
Net increase (decrease) in cash and cash equivalents | 10,444 | -5,302 |
Cash and cash equivalents at beginning of period | 4,793 | 13,820 |
Cash and cash equivalents at end of period | 15,237 | 8,518 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | ' | -4 |
Cash paid for income tax | ($340) | ($379) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
1. Summary of Significant Accounting Policies | |
The Company | |
Alliance Fiber Optic Products, Inc. (the "Company") was incorporated in California on December 12, 1995 and reincorporated in Delaware on October 19, 2000. The Company designs, manufactures and markets fiber optic components for communications equipment manufacturers and service providers. The Company's headquarters are located in Sunnyvale, California, and it has operations in Taiwan and China. | |
Basis of Presentation | |
The accompanying condensed consolidated balance sheet as of December 31, 2012, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and include the accounts of Alliance Fiber Optic Products, Inc. and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. | |
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. The unaudited condensed consolidated financial statements as of September 30, 2013, and for the three and nine months ended September 30, 2013 and 2012, reflect, in the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to state fairly the financial information set forth herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for any subsequent interim period or for an entire year. | |
There have been no significant changes in the Company's critical accounting policies during the nine months ended September 30, 2013 as compared to what was previously disclosed in the Company's Form 10-K for the fiscal year ended December 31, 2012. | |
Revenue Recognition | |
The Company recognizes revenue upon shipment of its products to customers, provided that it has received a purchase order, the price is fixed, collection of the resulting receivable is reasonably assured and transfer of title and risk of loss has occurred. Subsequent to the sale of products, the Company has no obligation to provide any modification or customization upgrades, enhancements or post contract customer support. | |
Allowance for Doubtful Accounts | |
Allowances are provided for estimated returns and potential uncollectable trade receivables. Provisions for return allowances are recorded at the time revenue is recognized based on historical returns, current economic trends and changes in customer demand. Such allowances are adjusted periodically to reflect actual and anticipated experience. The Company also identifies specific accounts considered to have a high risk of uncollectibility and reserves the full amount. Material differences may result in the amount and timing of revenue for any period than if management had made different judgments or utilized different estimates. | |
Cash and Cash Equivalents | |
The Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist primarily of market rate accounts, corporate bonds and certificates of deposit. | |
Short-Term and Long-Term Investments | |
The Company generally invests its excess cash in certificates of deposit, corporate bonds, and commercial paper. Such investments are made in accordance with the Company's investment policy, which establishes guidelines relative to diversification and maturities designed to maintain safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates. | |
Concentrations of Risk | |
Connectivity products contributed 76.2% and 67.0% of the Company's revenues for the three months ended September 30, 2013 and 2012, respectively. The Company's optical passive products contributed 23.8% and 33.0% of the Company's revenues for the three months ended September 30, 2013 and 2012, respectively. | |
Connectivity products contributed 75.5% and 71.4% of the Company's revenues for the nine months ended September 30, 2013 and 2012, respectively. The Company's optical passive products contributed 24.5% and 28.6% of the Company's revenues for the nine months ended September 30, 2013 and 2012, respectively. | |
In the three months ended September 30, 2013 and 2012, the Company's 10 largest customers comprised 79.1% and 66.3% of the Company's revenues, respectively. For the three months ended September 30, 2013, two customers accounted for 40.1% and 11.2% of the Company's total revenues, respectively. Amounts due from these customers were $4.5 million and $1.4 million, respectively, at September 30, 2013. For the three months ended September 30, 2012, three customers accounted for 14.1%, 11.0% and 10.1% of the Company's total revenues, respectively. Amounts due from these customers were $1.5 million, $1.0 million and $0.8 million, respectively, at September 30, 2012. | |
In the nine months ended September 30, 2013 and 2012, the Company's 10 largest customers comprised 74.5% and 62.9% of the Company's revenues, respectively. For the nine months ended September 30, 2013, two customers accounted for 32.4% and 10.4% of the Company's total revenues. For the nine months ended September 30, 2012, no customer accounted for 10% or more of the Company's revenues. | |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements and Accounting Changes | 9 Months Ended |
Sep. 30, 2013 | |
Recent Accounting Pronouncements and Accounting Changes [Abstract] | ' |
Recent Accounting Pronouncements and Accounting Changes | ' |
2. Recent Accounting Pronouncements and Accounting Changes | |
In July 2013, the Financial Accounting Standards Board ("FASB") issued guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss or tax carryforward exists. The FASB concluded that an unrecognized tax benefit should be presented as a reduction of a deferred tax asset except in certain circumstances the unrecognized tax benefit should be presented as a liability and should not be combined with deferred tax assets. The amendment is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013, with early adoption permitted. The Company is currently evaluating the impact this amendment may have on its consolidated financial statements. | |
In March 2013, the FASB issued guidance to clarify when to release cumulative foreign currency translation adjustments when an entity ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity. The amendment is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013 and should be applied prospectively to derecognition events occurring after the effective date. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. | |
In February 2013, the FASB issued guidance requiring presentation of amounts reclassified from each component of accumulated other comprehensive income. In addition, disclosure is required of the effects of significant reclassifications on income statement line items either on the face of the statement where net income is presented or as a separate disclosure in the notes to the financial statements. For public entities, this guidance is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. | |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity [Abstract] | ' |
Stockholders' Equity | ' |
3. Stockholders' Equity | |
On August 15, 2013, the Company announced it had declared a 2-for-1 stock split of the Common Stock of the Company ("Common Stock"), for distribution on September 16, 2013 to stockholders of record holding shares of Common Stock at the close of business on August 30, 2013. All share and per share amounts in the accompanying financial statements have been retroactively restated to reflect such stock split. | |
Stockbased_Compensation
Stock-based Compensation | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Stock-based Compensation [Abstract] | ' | |||||||||||
Stock-based Compensation | ' | |||||||||||
4. Stock-based Compensation | ||||||||||||
The Accounting Standards Codification ("ASC") 718 requires companies to record compensation expense for stock options measured at fair value, on the date of grant, using an option-pricing model. The fair value of stock options granted and stock purchased pursuant to the Employee Stock Purchase Plan ("ESPP") prior to June 30, 2010 was determined using the Binomial Lattice Model. | ||||||||||||
Pursuant to the Company's 2000 Stock Incentive Plan, participants may be granted restricted stock units ("RSUs"), representing an unfunded, unsecured right to receive a Company common share on the date specified in the recipient's award. The RSUs granted under the plan generally vest over two years at a rate of 50 percent per year or over five years at a rate of 20 percent per year. The Company recognizes compensation expense on a straight-line basis over the vesting term of each award. | ||||||||||||
Options granted under the 2000 Stock Incentive Plan generally vest over four years. Options are exercisable for not more than ten years. | ||||||||||||
The following information relates to stock option activity for the nine months ended September 30, 2013: | ||||||||||||
Weighted | ||||||||||||
Weighted | Average | |||||||||||
Average | Remaining | Aggregate | ||||||||||
Exercise | Contractual | Intrinsic | ||||||||||
Options | Shares | Price | Life | Value | ||||||||
Outstanding at December 31, 2012 | 1,436,360 | $ | 3.92 | |||||||||
Granted | 212,800 | 7.12 | ||||||||||
Exercised | (1,046,560 | ) | 3.87 | |||||||||
Forfeited | - | - | ||||||||||
Outstanding at September 30, 2013 | 602,600 | $ | 5.14 | 7.86 Years | $ | 9,240,663 | ||||||
Vested and expected to vest at September 30, 2013 | 602,600 | $ | 5.14 | 7.86 Years | $ | 9,240,663 | ||||||
Exercisable at September 30, 2013 | 148,360 | $ | 3.74 | 4.25 Years | $ | 2,481,962 | ||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day of the third quarter of fiscal 2013 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2013. This amount changes based on the fair market value of the Company's stock. The total intrinsic value of options exercised was $9.5 million and $12.3 million for the three and nine months ended September 30, 2013, respectively. The total intrinsic value of options exercised was $0.08 million and $0.5 million for the three and nine months ended September 30, 2012, respectively. | ||||||||||||
No options were granted during the three months ended September 30, 2013 or 2012. As of September 30, 2013, there was $3.6 million of unrecognized compensation cost related to share-based compensation arrangements granted under the Plan. The compensation cost is expected to be realized over four years. | ||||||||||||
Cash received from option exercises during the three and nine months ended September 30, 2013 was $2.4 million and $3.8 million, respectively, and is included within the financing activities section in the accompanying condensed consolidated statements of cash flows. | ||||||||||||
During the nine months ended September 30, 2013, a total of 51,232 shares were issued under the Company's ESPP and cash received from purchases of common stock was $0.2 million. Compensation expense recorded in the quarter ended September 30, 2013 related to the ESPP was approximately $0.09 million. As of September 30, 2013, there was $0.03 million of unrecognized compensation cost related to the ESPP which is expected to be realized over the next month. | ||||||||||||
During the nine months ended September 30, 2011, the Company granted 546,000 RSUs with a total grant-date fair value of $2.5 million. The resulting compensation expense recorded in the quarter ended September 30, 2013 was $0.1 million. There was $1.0 million of total unrecognized compensation cost related to RSUs granted under the Plan, all of which is expected to be realized over three years. | ||||||||||||
During the nine months ended September 30, 2013, the Company granted 342,000 RSUs with a total grant-date fair value of $2.3 million. The resulting compensation expense recorded in the quarter ended September 30, 2013 was $0.3 million. There was $1.9 million of total unrecognized compensation cost related to RSUs granted under the Plan, of which $1.0 million is expected to be realized over two years and $0.9 million is expected to be realized over three years. | ||||||||||||
The following table summarizes employee stock-based compensation expense resulting from stock options, RSUs, and the ESPP (in thousands): | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Included in cost of revenue | $ | 116 | $ | 28 | $ | 215 | $ | 86 | ||||
Included in operating expenses: | ||||||||||||
Research and development | 71 | 32 | 149 | 92 | ||||||||
Sales and marketing | 132 | 65 | 295 | 188 | ||||||||
General and administrative | 244 | 143 | 595 | 420 | ||||||||
Total | 447 | 240 | 1,039 | 700 | ||||||||
Total stock-based compensation expense | $ | 563 | $ | 268 | $ | 1,254 | $ | 786 |
Inventories_net
Inventories, net | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Inventories, net [Abstract] | ' | |||||
Inventories, net | ' | |||||
5. Inventories, net (in thousands) | ||||||
September 30, | December 31, | |||||
2013 | 2012 | |||||
Inventories: | ||||||
Finished goods | $ | 2,635 | $ | 1,824 | ||
Work-in-process | 4,019 | 2,546 | ||||
Raw materials | 3,582 | 2,563 | ||||
$ | 10,236 | $ | 6,933 |
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Net Income Per Share [Abstract] | ' | |||||||||||
Net Income Per Share | ' | |||||||||||
6. Net Income Per Share | ||||||||||||
Basic net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income for the period by the combination of dilutive common share equivalents, comprised of shares issuable under the Company's stock-based compensation plans, and the weighted-average number of shares of common stock outstanding during the period. There were no incremental dilutive common share equivalents in the periods presented. | ||||||||||||
The following table sets forth the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share data): | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Numerator: | ||||||||||||
Net income | $ | 5,621 | $ | 1,892 | $ | 11,753 | $ | 4,045 | ||||
Denominator: | ||||||||||||
Shares used in computing net income per share: | ||||||||||||
Basic | 18,056 | 17,581 | 17,584 | 17,638 | ||||||||
Diluted | 18,754 | 17,977 | 18,107 | 18,000 | ||||||||
Net income per share: | ||||||||||||
Basic | $ | 0.31 | $ | 0.11 | $ | 0.67 | $ | 0.23 | ||||
Diluted | $ | 0.3 | $ | 0.11 | $ | 0.65 | $ | 0.22 |
Comprehensive_Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2013 | |
Comprehensive Income [Abstract] | ' |
Comprehensive Income | ' |
7. Comprehensive Income | |
Comprehensive income is defined as the change in equity of a company during a period resulting from transactions and other events and circumstances, excluding transactions resulting from investments by owners and distributions to owners. The difference between net income and comprehensive income for the Company is due to foreign exchange translations adjustments and unrealized gain on available-for-sale securities. | |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
8. Income Taxes | |
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | |
The Company's effective tax rate was below the U.S. statutory rate primarily because of the tax benefit arising from net operating loss carryforwards. The Company is subject to income tax in both the United States and various foreign jurisdictions. The effective tax rate is also affected by the taxable earnings in foreign jurisdictions with various different statutory tax rates. The Company reviews its expected annual effective income tax rates and makes changes on a quarterly basis as necessary based on certain factors such as forecasted annual operating income and valuation of deferred tax assets. | |
The Company records net deferred tax assets to the extent it believes these assets will more likely than not be realized. In making such determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event the Company was to determine that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance, which would reduce the provision for income taxes. | |
Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. Based on this assessment, as of September 30, 2013, reduction in the valuation allowance in the amount of $3.7 million has been recorded in order to measure only the portion of the deferred tax asset that more likely than not will be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carry forward period are reduced or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as expectations for growth. | |
The Company adopted ASC 740, Accounting for Uncertainty in Income Taxes on January 1, 2007. As per ASC 740, a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits. The Company did not have any material unrecognized tax benefits or uncertain tax positions at September 30, 2013. | |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||
Sep. 30, 2013 | |||
Commitments and Contingencies [Abstract] | ' | ||
Commitments and Contingencies | ' | ||
9. Commitments and Contingencies | |||
Litigation | |||
From time to time, the Company may be involved in litigation in the normal course of business. As of the date of these financial statements, the Company is not aware of any material legal proceedings pending or threatened against the Company. | |||
Indemnification and Product Warranty | |||
The Company indemnifies certain customers, suppliers and subcontractors for attorney fees and damages and costs awarded against these parties in certain circumstances in which products are alleged to infringe third party intellectual property rights, including patents, trade secrets, trademarks or copyrights. In all cases, there are limits on and exceptions to the potential liability for indemnification relating to intellectual property infringement claims. The Company cannot estimate the amount of potential future payments, if any, that it might be required to make as a result of these agreements. As of September 30, 2013, the Company has not paid any claim or been required to defend any action related to indemnification obligations, and accordingly, the Company has not accrued any amounts for such indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. | |||
The Company generally warrants products against defects in materials and workmanship and non-conformance to specifications for varying lengths of time. If there is a material increase in customer claims compared with historical experience, or if costs of servicing warranty claims are greater than expected, the Company may record a charge against cost of revenues. The Company accrued $0.06 million and $0.02 million for warranty reserves at each of September 30, 2013 and 2012, respectively. | |||
Operating Leases | |||
The Company leases office space under long-term operating leases expiring at various dates through 2017. | |||
The Company's aggregate future minimum facility lease payments are as follows (in thousands): | |||
Years ending December 31: | |||
2013 (remaining three months of the year) | $ | 182 | |
2014 | 680 | ||
2015 | 239 | ||
2016 | 22 | ||
2017 and after | 2 | ||
Total | $ | 1,125 |
Bank_Loans
Bank Loans | 9 Months Ended |
Sep. 30, 2013 | |
Bank Loans [Abstract] | ' |
Bank Loans | ' |
10. Bank Loans | |
In November 2004, the Company entered into a ten-year loan of $0.5 million in Taiwan with an interest rate of 2.3% for the first two years and 3.6% for the following years. In November 2006, the Company entered into a seven-year loan of $0.2 million in Taiwan with an interest rate of 2.8%. Both loans were secured by the Company's building in Taiwan. In September 2007, the Company also entered a five-year equipment loan of $0.1 million with an interest rate of 3.68%. In July 2012, the Company paid off all of the loans. | |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
11. Related Party Transactions | |
As of September 30, 2013, based on information filed with the Securities and Exchange Commission on January 4, 2002 for the year ended December 31, 2000, Foxconn Holding Limited ("Foxconn") and Hon Hai Precision Industry Co. Ltd. ("Hon Hai") held 17.46% of the Company's common stock. In the normal course of business, the Company sells products to and purchases raw materials from Hon Hai, who is the parent company of Foxconn. These transactions were made at prices and terms consistent with those of unrelated third parties. | |
There were no sales of products to Hon Hai in either of the three or nine months ended September 30, 2013. Purchases of raw materials from Hon Hai were $0.5 million and $1.2 million for the three and nine months ended September 30, 2013, respectively. No amounts were due from Hon Hai at September 30, 2013. Amounts due to Hon Hai were $0.4 million at September 30, 2013. | |
Sales of products to Hon Hai were zero and $0.06 million for the three and nine months ended September 30, 2012, respectively. Purchases of raw materials from Hon Hai were $0.2 million and $0.8 million for the three and nine months ended September 30, 2012, respectively. Amounts due from Hon Hai were $0.03 million for both the three and nine months ended September 30, 2012. Amounts due to Hon Hai were $0.3 million for both the three and nine months ended September 30, 2012. | |
Fair_Value_of_Financial_instru
Fair Value of Financial instruments | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Fair Value of Financial instruments [Abstract] | ' | |||||||||||
Fair Value of Financial instruments | ' | |||||||||||
12. Fair Value of Financial instruments | ||||||||||||
U.S. GAAP defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact a purchase or sale and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability. | ||||||||||||
The Company uses a fair value hierarchy established by U.S. GAAP that established a three-tiered fair value hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable to prioritize inputs used to measure fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is available and significant to the fair value measurement. Those tiers are defined as follows: | ||||||||||||
Level 1 - | inputs are quoted prices in active markets for identical assets or liabilities. | |||||||||||
Level 2 - | inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly. | |||||||||||
Level 3 - | inputs are unobservable and shall be used to the extent that observable inputs are not available in the overall fair value measurement. | |||||||||||
In 2012, the Company adopted Accounting Standards Update ("ASU") No. 2011-04 "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards ("IFRS")" ("ASU 2011-04"). ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 requires a reporting entity to disclose the reason for the measurement, where for recurring fair value measurements, the reason for measuring an asset or liability at fair value is often that either 1) it is required under other existing U.S. GAAP codification guidance or 2) the reporting entity has elected the fair value option under ASC 825. In regards to the Company, it is required under U.S. GAAP. | ||||||||||||
ASU 2011-04 also requires reporting entities to disclose the following information for all Level 2 and Level 3 fair value measurement, where it requires that an entity must disclose a description of the valuation techniques and the inputs used in those measurements. | ||||||||||||
For its Level 2 investments, the Company uses quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset. | ||||||||||||
For all Level 3 measurements, ASU 2011-04 requires that an entity disclose quantitative information about the significant unobservable inputs used in those measurements. The Company has no Level 3 measurements. | ||||||||||||
In addition, ASU 2011-04 requires reporting entities to make disclosure about amounts and reasons for all the transfers out of Level 1 and Level 2 fair value measurements. The Company had no such transfers for the nine months ended September 30, 2013. | ||||||||||||
The adoption of ASU 2011-04 did not have a significant impact on the Company's financial statements. | ||||||||||||
In accordance with the U.S. GAAP Codification Topic 820, the following table represent the fair value hierarchy for the Company's financial assets (investments) measured at fair value on a recurring basis as of September 30, 2013: | ||||||||||||
Fair Value Measurements at | ||||||||||||
Reporting Date Using | ||||||||||||
Quoted Prices | Significant | |||||||||||
in Active | Other | Significant | ||||||||||
Balance at | Markets for | Observable | Unobservable | |||||||||
September 30, | Identical Assets | Inputs | Inputs | |||||||||
2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||
Cash equivalents: | ||||||||||||
Money market mutual funds | $ | 2,277 | $ | 2,277 | $ | - | $ | - | ||||
Marketable Securities: | ||||||||||||
Time deposits | 17,284 | 17,284 | - | - | ||||||||
Corporate bonds | 13,153 | - | 13,153 | - | ||||||||
Long-term investments: | ||||||||||||
Time deposits | 10,408 | 10,408 | - | - | ||||||||
Total | $ | 43,122 | $ | 29,969 | $ | 13,153 | $ | - | ||||
As of September 30, 2013, the Company held investments in corporate bonds, certificates of deposit, and money market securities. The Company's cash and cash equivalents consist of investments with original maturities of 90 days or less from the date of purchase. The Company's short-term investments consist of corporate bonds and certificates of deposit with original maturities of 91 days or more from the date of purchase. The Company's long-term investments comprise certificates of deposit with original maturities of 365 days or more from the date of purchase. | ||||||||||||
Geographic_Segment_Information
Geographic Segment Information | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Geographic Segment Information [Abstract] | ' | |||||||||||
Geographic Segment Information | ' | |||||||||||
13. Geographic Segment Information | ||||||||||||
The Company operates in a single industry segment. This industry segment is characterized by rapid technological change and significant competition. | ||||||||||||
The following is a summary of the Company's revenues generated by geographic segments, revenues generated by product lines and identifiable assets located in these segments (in thousands): | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Revenues | ||||||||||||
North America | $ | 13,085 | $ | 7,184 | $ | 32,260 | $ | 20,435 | ||||
Europe | 4,379 | 2,327 | 10,519 | 6,178 | ||||||||
Asia | 5,610 | 2,879 | 11,487 | 7,839 | ||||||||
$ | 23,074 | $ | 12,390 | $ | 54,266 | $ | 34,452 | |||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Revenues | ||||||||||||
Connectivity Products | $ | 17,572 | $ | 8,307 | $ | 40,990 | $ | 24,591 | ||||
Optical Passive Products | 5,502 | 4,083 | 13,276 | 9,861 | ||||||||
$ | 23,074 | $ | 12,390 | $ | 54,266 | $ | 34,452 | |||||
September 30, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Property and Equipment | ||||||||||||
United States | $ | 42 | $ | 43 | ||||||||
Taiwan | 4,769 | 3,473 | ||||||||||
China | 5,481 | 4,192 | ||||||||||
$ | 10,292 | $ | 7,708 |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Event [Abstract] | ' |
Subsequent Event | ' |
14. Subsequent Event | |
On November 1, 2013, the Company held a special meeting of its stockholders (the "Special Meeting") at which stockholders approved an increase in the number of shares of authorized Common Stock from 20,000,000 to 100,000,000 shares and an increase by 900,000 the number of shares of Common Stock available for issuance under the 2000 Stock Incentive Plan. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying condensed consolidated balance sheet as of December 31, 2012, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and include the accounts of Alliance Fiber Optic Products, Inc. and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to such rules and regulations. | |
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. The unaudited condensed consolidated financial statements as of September 30, 2013, and for the three and nine months ended September 30, 2013 and 2012, reflect, in the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to state fairly the financial information set forth herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for any subsequent interim period or for an entire year. | |
There have been no significant changes in the Company's critical accounting policies during the nine months ended September 30, 2013 as compared to what was previously disclosed in the Company's Form 10-K for the fiscal year ended December 31, 2012. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company recognizes revenue upon shipment of its products to customers, provided that it has received a purchase order, the price is fixed, collection of the resulting receivable is reasonably assured and transfer of title and risk of loss has occurred. Subsequent to the sale of products, the Company has no obligation to provide any modification or customization upgrades, enhancements or post contract customer support. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts | |
Allowances are provided for estimated returns and potential uncollectable trade receivables. Provisions for return allowances are recorded at the time revenue is recognized based on historical returns, current economic trends and changes in customer demand. Such allowances are adjusted periodically to reflect actual and anticipated experience. The Company also identifies specific accounts considered to have a high risk of uncollectibility and reserves the full amount. Material differences may result in the amount and timing of revenue for any period than if management had made different judgments or utilized different estimates. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
The Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist primarily of market rate accounts, corporate bonds and certificates of deposit. | |
Short-Term and Long-Term Investments | ' |
Short-Term and Long-Term Investments | |
The Company generally invests its excess cash in certificates of deposit, corporate bonds, and commercial paper. Such investments are made in accordance with the Company's investment policy, which establishes guidelines relative to diversification and maturities designed to maintain safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates. | |
Concentrations of Risk | ' |
Concentrations of Risk | |
Connectivity products contributed 76.2% and 67.0% of the Company's revenues for the three months ended September 30, 2013 and 2012, respectively. The Company's optical passive products contributed 23.8% and 33.0% of the Company's revenues for the three months ended September 30, 2013 and 2012, respectively. | |
Connectivity products contributed 75.5% and 71.4% of the Company's revenues for the nine months ended September 30, 2013 and 2012, respectively. The Company's optical passive products contributed 24.5% and 28.6% of the Company's revenues for the nine months ended September 30, 2013 and 2012, respectively. | |
In the three months ended September 30, 2013 and 2012, the Company's 10 largest customers comprised 79.1% and 66.3% of the Company's revenues, respectively. For the three months ended September 30, 2013, two customers accounted for 40.1% and 11.2% of the Company's total revenues, respectively. Amounts due from these customers were $4.5 million and $1.4 million, respectively, at September 30, 2013. For the three months ended September 30, 2012, three customers accounted for 14.1%, 11.0% and 10.1% of the Company's total revenues, respectively. Amounts due from these customers were $1.5 million, $1.0 million and $0.8 million, respectively, at September 30, 2012. | |
In the nine months ended September 30, 2013 and 2012, the Company's 10 largest customers comprised 74.5% and 62.9% of the Company's revenues, respectively. For the nine months ended September 30, 2013, two customers accounted for 32.4% and 10.4% of the Company's total revenues. For the nine months ended September 30, 2012, no customer accounted for 10% or more of the Company's revenues. | |
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Stock-based Compensation [Abstract] | ' | |||||||||||
Schedule of Stock Options Activity | ' | |||||||||||
Weighted | ||||||||||||
Weighted | Average | |||||||||||
Average | Remaining | Aggregate | ||||||||||
Exercise | Contractual | Intrinsic | ||||||||||
Options | Shares | Price | Life | Value | ||||||||
Outstanding at December 31, 2012 | 1,436,360 | $ | 3.92 | |||||||||
Granted | 212,800 | 7.12 | ||||||||||
Exercised | (1,046,560 | ) | 3.87 | |||||||||
Forfeited | - | - | ||||||||||
Outstanding at September 30, 2013 | 602,600 | $ | 5.14 | 7.86 Years | $ | 9,240,663 | ||||||
Vested and expected to vest at September 30, 2013 | 602,600 | $ | 5.14 | 7.86 Years | $ | 9,240,663 | ||||||
Exercisable at September 30, 2013 | 148,360 | $ | 3.74 | 4.25 Years | $ | 2,481,962 | ||||||
Schedule of Employee Stock-Based Compensation Expense | ' | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Included in cost of revenue | $ | 116 | $ | 28 | $ | 215 | $ | 86 | ||||
Included in operating expenses: | ||||||||||||
Research and development | 71 | 32 | 149 | 92 | ||||||||
Sales and marketing | 132 | 65 | 295 | 188 | ||||||||
General and administrative | 244 | 143 | 595 | 420 | ||||||||
Total | 447 | 240 | 1,039 | 700 | ||||||||
Total stock-based compensation expense | $ | 563 | $ | 268 | $ | 1,254 | $ | 786 |
Inventories_net_Tables
Inventories, net (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Inventories, net [Abstract] | ' | |||||
Schedule of Inventories | ' | |||||
September 30, | December 31, | |||||
2013 | 2012 | |||||
Inventories: | ||||||
Finished goods | $ | 2,635 | $ | 1,824 | ||
Work-in-process | 4,019 | 2,546 | ||||
Raw materials | 3,582 | 2,563 | ||||
$ | 10,236 | $ | 6,933 |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Net Income Per Share [Abstract] | ' | |||||||||||
Schedule of Computation of Basic and Diluted Net Income Per Share | ' | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Numerator: | ||||||||||||
Net income | $ | 5,621 | $ | 1,892 | $ | 11,753 | $ | 4,045 | ||||
Denominator: | ||||||||||||
Shares used in computing net income per share: | ||||||||||||
Basic | 18,056 | 17,581 | 17,584 | 17,638 | ||||||||
Diluted | 18,754 | 17,977 | 18,107 | 18,000 | ||||||||
Net income per share: | ||||||||||||
Basic | $ | 0.31 | $ | 0.11 | $ | 0.67 | $ | 0.23 | ||||
Diluted | $ | 0.3 | $ | 0.11 | $ | 0.65 | $ | 0.22 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Commitments and Contingencies [Abstract] | ' | ||
Schedule of Aggregate Future Minimum Facility Lease Payments | ' | ||
Years ending December 31: | |||
2013 (remaining three months of the year) | $ | 182 | |
2014 | 680 | ||
2015 | 239 | ||
2016 | 22 | ||
2017 and after | 2 | ||
Total | $ | 1,125 |
Fair_Value_of_Financial_instru1
Fair Value of Financial instruments (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Fair Value of Financial instruments [Abstract] | ' | |||||||||||
Schedule of Financial Assets at Fair Value | ' | |||||||||||
Fair Value Measurements at | ||||||||||||
Reporting Date Using | ||||||||||||
Quoted Prices | Significant | |||||||||||
in Active | Other | Significant | ||||||||||
Balance at | Markets for | Observable | Unobservable | |||||||||
September 30, | Identical Assets | Inputs | Inputs | |||||||||
2013 | (Level 1) | (Level 2) | (Level 3) | |||||||||
Cash equivalents: | ||||||||||||
Money market mutual funds | $ | 2,277 | $ | 2,277 | $ | - | $ | - | ||||
Marketable Securities: | ||||||||||||
Time deposits | 17,284 | 17,284 | - | - | ||||||||
Corporate bonds | 13,153 | - | 13,153 | - | ||||||||
Long-term investments: | ||||||||||||
Time deposits | 10,408 | 10,408 | - | - | ||||||||
Total | $ | 43,122 | $ | 29,969 | $ | 13,153 | $ | - |
Geographic_Segment_Information1
Geographic Segment Information (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Geographic Segment Information [Abstract] | ' | |||||||||||
Schedule of Segment Reporting Information | ' | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Revenues | ||||||||||||
North America | $ | 13,085 | $ | 7,184 | $ | 32,260 | $ | 20,435 | ||||
Europe | 4,379 | 2,327 | 10,519 | 6,178 | ||||||||
Asia | 5,610 | 2,879 | 11,487 | 7,839 | ||||||||
$ | 23,074 | $ | 12,390 | $ | 54,266 | $ | 34,452 | |||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Revenues | ||||||||||||
Connectivity Products | $ | 17,572 | $ | 8,307 | $ | 40,990 | $ | 24,591 | ||||
Optical Passive Products | 5,502 | 4,083 | 13,276 | 9,861 | ||||||||
$ | 23,074 | $ | 12,390 | $ | 54,266 | $ | 34,452 | |||||
September 30, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Property and Equipment | ||||||||||||
United States | $ | 42 | $ | 43 | ||||||||
Taiwan | 4,769 | 3,473 | ||||||||||
China | 5,481 | 4,192 | ||||||||||
$ | 10,292 | $ | 7,708 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | Customer A [Member] | Customer A [Member] | Customer B [Member] | Customer B [Member] | Customer C [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | ||
Product Concentration Risk [Member] | Product Concentration Risk [Member] | Product Concentration Risk [Member] | Product Concentration Risk [Member] | Product Concentration Risk [Member] | Product Concentration Risk [Member] | Product Concentration Risk [Member] | Product Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | ||||||||
Connectivity Products [Member] | Connectivity Products [Member] | Connectivity Products [Member] | Connectivity Products [Member] | Optical Passive Products [Member] | Optical Passive Products [Member] | Optical Passive Products [Member] | Optical Passive Products [Member] | Customer A [Member] | Customer A [Member] | Customer A [Member] | Customer B [Member] | Customer B [Member] | Customer B [Member] | Customer C [Member] | ||||||||||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | ' | ' | ' | ' | ' | ' | 76.20% | 67.00% | 75.50% | 71.40% | 23.80% | 33.00% | 24.50% | 28.60% | 79.10% | 66.30% | 74.50% | 62.90% | 40.10% | 14.10% | 32.40% | 11.20% | 11.00% | 10.40% | 10.10% |
Accounts receivable, net | $12,365 | $8,046 | $4,500 | $1,500 | $1,400 | $1,000 | $800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) | 1 Months Ended |
Aug. 15, 2013 | |
Stockholders' Equity [Abstract] | ' |
Stock split, conversion ratio | 2 |
Stockbased_Compensation_Schedu
Stock-based Compensation (Schedule of Stock Option Activity) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Shares | ' |
Outstanding, beginning balance | 1,436,360 |
Granted | 212,800 |
Exercised | -1,046,560 |
Forfeited | ' |
Outstanding, ending balance | 602,600 |
Vested and expected to vest, end of period | 602,600 |
Exercisable, end of period | 148,360 |
Weighted Average Exercise Price | ' |
Outstanding, beginning balance | $3.92 |
Granted | $7.12 |
Exercised | $3.87 |
Forfeited | ' |
Outstanding, ending balance | $5.14 |
Vested and expected to vest, end of period | $5.14 |
Exercisable, end of period | $3.74 |
Weighted Average Remaining Contractual Life | ' |
Outstanding, ending balance | '7 years 10 months 10 days |
Vested and expected to vest, end of period | '7 years 10 months 10 days |
Exercisable, end of period | '4 years 3 months |
Aggregate Intrinsic Value | ' |
Outstanding, ending balance | $9,240,663 |
Vested and expected to vest, end of period | 9,240,663 |
Exercisable, end of period | $2,481,962 |
Stockbased_Compensation_Narrat
Stock-based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2010 | Nov. 30, 2000 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock were reserved for issuance | ' | ' | ' | ' | 10,000,000 | 300,000 |
Intrinsic value of options exercised | $9,500,000 | $80,000 | $12,300,000 | $500,000 | ' | ' |
Cash received from option exercises | 2,400,000 | 100,000 | 3,800,000 | 500,000 | ' | ' |
Shares were issued under ESPP | ' | ' | 51,232 | ' | ' | ' |
Proceeds from issuance of stock under ESPP | ' | ' | 235,000 | 207,000 | ' | ' |
Compensation expense | 563,000 | 268,000 | 1,254,000 | 786,000 | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Compensation expense | 3,000 | ' | ' | ' | ' | ' |
Unrecognized compensation cost | 1,900,000 | ' | 1,900,000 | ' | ' | ' |
Unrecognized compensation cost, recognition period | ' | ' | '3 years | ' | ' | ' |
Unrecognized compensation cost, year two | 10,000 | ' | 10,000 | ' | ' | ' |
Unrecognized compensation cost, year three | 9,000 | ' | 9,000 | ' | ' | ' |
Restricted Stock Units (RSUs) [Member] | 2011 Grant [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Restricted stock units granted | ' | ' | 546,000 | ' | ' | ' |
Grant-date fair value of units granted | ' | ' | 2,500,000 | ' | ' | ' |
Compensation expense | 100,000 | ' | ' | ' | ' | ' |
Unrecognized compensation cost | 1,000,000 | ' | 1,000,000 | ' | ' | ' |
Unrecognized compensation cost, recognition period | ' | ' | '3 years | ' | ' | ' |
Restricted Stock Units (RSUs) [Member] | 2013 Grant [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Restricted stock units granted | ' | ' | 342,000 | ' | ' | ' |
Grant-date fair value of units granted | ' | ' | 2,300,000 | ' | ' | ' |
Compensation expense | 300,000 | ' | ' | ' | ' | ' |
Unrecognized compensation cost | 1,900,000 | ' | 1,900,000 | ' | ' | ' |
Unrecognized compensation cost, recognition period | ' | ' | '3 years | ' | ' | ' |
Unrecognized compensation cost, year two | 1,000,000 | ' | 1,000,000 | ' | ' | ' |
Unrecognized compensation cost, year three | 900,000 | ' | 900,000 | ' | ' | ' |
Restricted Stock Units (RSUs) [Member] | Vesting Tranche One [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '2 years | ' | ' | ' |
Vesting rate | ' | ' | 50.00% | ' | ' | ' |
Restricted Stock Units (RSUs) [Member] | Vesting Tranche Two [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '5 years | ' | ' | ' |
Vesting rate | ' | ' | 20.00% | ' | ' | ' |
Employee Stock Option [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '4 years | ' | ' | ' |
Plan duration | ' | ' | '10 years | ' | ' | ' |
Unrecognized compensation cost | 3,600,000 | ' | 3,600,000 | ' | ' | ' |
Unrecognized compensation cost, recognition period | ' | ' | '4 years | ' | ' | ' |
Employee Stock Purchase Plan [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Compensation expense | 90,000 | ' | ' | ' | ' | ' |
Unrecognized compensation cost | $30,000 | ' | $30,000 | ' | ' | ' |
Unrecognized compensation cost, recognition period | ' | ' | '1 month | ' | ' | ' |
Stockbased_Compensation_Schedu1
Stock-based Compensation (Schedule of Employee Stock-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $563 | $268 | $1,254 | $786 |
Cost of Revenue [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 116 | 28 | 215 | 86 |
Research and Development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 71 | 32 | 149 | 92 |
Selling and Marketing [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 132 | 65 | 295 | 188 |
General and Administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 244 | 143 | 595 | 420 |
Operating Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $447 | $240 | $1,039 | $700 |
Inventories_net_Details
Inventories, net (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories, net [Abstract] | ' | ' |
Finished goods | $2,635 | $1,824 |
Work-in-process | 4,019 | 2,546 |
Raw materials | 3,582 | 2,563 |
Inventory, Net | $10,236 | $6,933 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator: | ' | ' | ' | ' |
Net income | $5,621 | $1,892 | $11,753 | $4,045 |
Denominator: | ' | ' | ' | ' |
Basic | 18,056 | 17,581 | 17,584 | 17,638 |
Diluted | 18,754 | 17,977 | 18,107 | 18,000 |
Net income per share: | ' | ' | ' | ' |
Basic | $0.31 | $0.11 | $0.67 | $0.23 |
Diluted | $0.30 | $0.11 | $0.65 | $0.22 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Income Taxes [Abstract] | ' |
Change in valuation allowance | ($3.70) |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Indemnification and Product Warranty: | ' | ' |
Accrued warranty reserves | $60,000 | $20,000 |
Operating Leases: | ' | ' |
2013 (remaining three months of the year) | 182,000 | ' |
2014 | 680,000 | ' |
2015 | 239,000 | ' |
2016 | 22,000 | ' |
2017 and after | 2,000 | ' |
Total | $1,125,000 | ' |
Bank_Loans_Details
Bank Loans (Details) (USD $) | 1 Months Ended | ||||
In Millions, unless otherwise specified | Nov. 30, 2004 | Nov. 30, 2006 | Sep. 30, 2007 | Nov. 30, 2004 | Nov. 30, 2004 |
Loan One [Member] | Loan Two [Member] | Loan Three [Member] | First Two Years [Member] | More Than Two Years [Member] | |
Loan One [Member] | Loan One [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Initial term of loan | '10 years | '7 years | '5 years | ' | ' |
Interest rate on loan | ' | 2.80% | 3.68% | 2.30% | 3.60% |
Long-term Debt | $0.50 | $0.20 | $0.10 | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Ownership percentage | 17.46% | ' | 17.46% | ' |
Hon Hai Precision Industry Co. Ltd. [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Net sales to related party | ' | $0.06 | ' | $0.06 |
Purchases of raw materials from related party | 0.5 | 0.2 | 1.2 | 0.8 |
Amounts due from related party | ' | 0.03 | ' | 0.03 |
Amounts due to related party | $0.40 | $0.30 | $0.40 | $0.30 |
Fair_Value_of_Financial_instru2
Fair Value of Financial instruments (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Cash equivalents | $2,277 |
Total | 43,122 |
Short-Term Time Deposits [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | 17,284 |
Corporate Bond Securities [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | 13,153 |
Long-Term Time Deposits [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | 10,408 |
Fair Value, Inputs, Level 1 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Cash equivalents | 2,277 |
Total | 29,969 |
Fair Value, Inputs, Level 1 [Member] | Short-Term Time Deposits [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | 17,284 |
Fair Value, Inputs, Level 1 [Member] | Corporate Bond Securities [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | ' |
Fair Value, Inputs, Level 1 [Member] | Long-Term Time Deposits [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | 10,408 |
Fair Value, Inputs, Level 2 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Cash equivalents | ' |
Total | 13,153 |
Fair Value, Inputs, Level 2 [Member] | Short-Term Time Deposits [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | ' |
Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | 13,153 |
Fair Value, Inputs, Level 2 [Member] | Long-Term Time Deposits [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | ' |
Fair Value, Inputs, Level 3 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Cash equivalents | ' |
Total | ' |
Fair Value, Inputs, Level 3 [Member] | Short-Term Time Deposits [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | ' |
Fair Value, Inputs, Level 3 [Member] | Corporate Bond Securities [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | ' |
Fair Value, Inputs, Level 3 [Member] | Long-Term Time Deposits [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | ' |
Geographic_Segment_Information2
Geographic Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Revenues | ' | ' | ' | ' | ' |
Revenues | $23,074 | $12,390 | $54,266 | $34,452 | ' |
Property and Equipment | ' | ' | ' | ' | ' |
Property and Equipment, net | 10,292 | ' | 10,292 | ' | 7,708 |
North America [Member] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Revenues | 13,085 | 7,184 | 32,260 | 20,435 | ' |
Europe [Member] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Revenues | 4,379 | 2,327 | 10,519 | 6,178 | ' |
Asia [Member] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Revenues | 5,610 | 2,879 | 11,487 | 7,839 | ' |
United States [Member] | ' | ' | ' | ' | ' |
Property and Equipment | ' | ' | ' | ' | ' |
Property and Equipment, net | 42 | ' | 42 | ' | 43 |
Taiwan [Member] | ' | ' | ' | ' | ' |
Property and Equipment | ' | ' | ' | ' | ' |
Property and Equipment, net | 4,769 | ' | 4,769 | ' | 3,473 |
China [Member] | ' | ' | ' | ' | ' |
Property and Equipment | ' | ' | ' | ' | ' |
Property and Equipment, net | 5,481 | ' | 5,481 | ' | 4,192 |
Connectivity Products [Member] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Revenues | 17,572 | 8,307 | 40,990 | 24,591 | ' |
Optical Passive Products [Member] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Revenues | $5,502 | $4,083 | $13,276 | $9,861 | ' |
Subsequent_Event_Details
Subsequent Event (Details) | Sep. 30, 2013 | Dec. 31, 2012 | Nov. 01, 2013 |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | ' | ' | ' |
Common Stock, shares authorized | 20,000,000 | 20,000,000 | 100,000,000 |
Stock incentive plan, additional shares authorized | ' | ' | 900,000 |