Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 03, 2014 | Jun. 29, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'ALLIANCE FIBER OPTIC PRODUCTS INC | ' | ' |
Entity Central Index Key | '0001122342 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 18,427,461 | ' |
Entity Public Float | ' | ' | $124,011,283 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $18,603 | $4,793 |
Short-term investments | 28,076 | 28,482 |
Accounts receivable, net | 11,566 | 8,046 |
Inventories, net | 10,630 | 6,933 |
Deferred tax asset, net | 6,036 | 1,234 |
Prepaid expense and other current assets | 1,745 | 1,166 |
Total current assets | 76,656 | 50,654 |
Long-term investments | 10,453 | 10,274 |
Property and equipment, net | 13,258 | 7,708 |
Deferred tax asset, net | ' | 2,468 |
Other assets | 198 | 249 |
Total assets | 100,565 | 71,353 |
Current liabilities: | ' | ' |
Accounts payable | 11,657 | 6,591 |
Accrued expenses and other current liabilities | 7,134 | 4,115 |
Total current liabilities | 18,791 | 10,706 |
Long-term liabilities: | 600 | 616 |
Total liabilities | 19,391 | 11,322 |
Commitments and contingencies (Note 10) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, par value $0.001: 5,000,000 shares authorized; no shares issued and outstanding at December 31, 2013 and 2012, respectively | ' | ' |
Common stock, par value $0.001: 100,000,000 shares authorized; 18,408,261 and 17,264,926 shares issued and outstanding at December 31, 2013 and 2012, respectively | 18 | 18 |
Additional paid-in-capital | 117,369 | 111,891 |
Accumulated deficit | -38,625 | -54,672 |
Accumulated other comprehensive income | 2,412 | 2,794 |
Total stockholders' equity | 81,174 | 60,031 |
Total liabilities and stockholders' equity | $100,565 | $71,353 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
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 | 100,000,000 | 20,000,000 |
Common stock, shares issued | 18,408,261 | 17,264,926 |
Common stock, shares outstanding | 18,408,261 | 17,264,926 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Comprehensive Income (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Income and Comprehensive Income [Abstract] | ' | ' |
Revenues | $76,070 | $46,611 |
Cost of revenues | 46,952 | 30,617 |
Gross profit | 29,118 | 15,994 |
Operating expenses: | ' | ' |
Research and development | 3,702 | 3,298 |
Selling, marketing and administrative | 8,315 | 6,967 |
Total operating expenses | 12,017 | 10,265 |
Income from operations | 17,101 | 5,729 |
Interest and other income, net | 708 | 727 |
Income before benefit for income taxes | 17,809 | 6,456 |
Benefit for income taxes | 999 | 3,185 |
Net income | 18,808 | 9,641 |
Foreign currency translation adjustments | -392 | 792 |
Net unrealized gain on investments available for sale | 10 | 1 |
Comprehensive income | $18,426 | $10,434 |
Net income per share: | ' | ' |
Basic | $1.06 | $0.55 |
Diluted | $1.02 | $0.54 |
Shares used in computing net income per share: | ' | ' |
Basic | 17,785 | 17,596 |
Diluted | 18,481 | 17,861 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $18,808 | $9,641 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 2,175 | 1,609 |
Amortization of stock-based compensation | 1,917 | 1,066 |
Loss on disposal of property and equipment | 107 | 13 |
Deferred restricted stock unit compensation | -1,326 | -647 |
Provision for inventory valuation | -84 | 88 |
Deferred tax assets | -2,334 | -3,702 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -3,520 | -1,416 |
Inventories | -3,613 | -258 |
Prepaid expenses and other current assets | -579 | -452 |
Other assets | 51 | -87 |
Accounts payable | 5,066 | 2,944 |
Accrued expenses and other current liabilities | 3,019 | 491 |
Other long-term liabilities | -16 | 53 |
Net cash provided by operating activities | 19,671 | 9,343 |
Cash flows from investing activities: | ' | ' |
Purchase of short-term investments | -21,492 | -32,140 |
Proceeds from sales and maturities of short-term investments | 21,908 | 29,427 |
Purchase of long-term investments | -179 | -176 |
Purchase of property and equipment | -7,830 | -1,450 |
Net cash used in investing activities | -7,593 | -4,339 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of stock under ESPP | 521 | 416 |
Proceeds from the exercise of common stock options and RSUs | 5,239 | 888 |
Repurchase of common stock | -873 | -4,780 |
Payment of dividends | -2,761 | -10,960 |
Repayment of bank borrowings | ' | -230 |
Net cash provided by (used in) financing activities | 2,126 | -14,666 |
Effect of exchange rate changes on cash and cash equivalents | -394 | 635 |
Net increase (decrease) in cash and cash equivalents | 13,810 | -9,027 |
Cash and cash equivalents at beginning of year | 4,793 | 13,820 |
Cash and cash equivalents at end of year | 18,603 | 4,793 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | ' | -4 |
Cash paid for income taxes | ($433) | ($450) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Deferred Stock-based Compensation [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, except Share data | ||||||
Balance at Dec. 31, 2011 | $63,614 | $18 | $112,961 | $1,987 | ($53,353) | $2,001 |
Balance, shares at Dec. 31, 2011 | ' | 17,783,000 | ' | ' | ' | ' |
Deferred stock-based compensation | 1,066 | ' | ' | 1,066 | ' | ' |
Issuance of stock on exercise of options and RSUs | 241 | ' | 888 | -647 | ' | ' |
Issuance of stock on exercise of options and RSUs, shares | ' | 340,000 | ' | ' | ' | ' |
Issuance of stock purchased through ESPP | 416 | ' | 416 | ' | ' | ' |
Issuance of stock purchased through ESPP, shares | ' | 118,000 | ' | ' | ' | ' |
Issuance of cash dividends | -10,960 | ' | ' | ' | -10,960 | ' |
Repurchase of common stock | -4,780 | ' | -4,780 | ' | ' | ' |
Repurchase of common stock, shares | ' | -976,000 | ' | ' | ' | ' |
Net income | 9,641 | ' | ' | ' | 9,641 | ' |
Other comprehensive gain (loss) | 793 | ' | ' | ' | ' | 793 |
Balance at Dec. 31, 2012 | 60,031 | 18 | 109,485 | 2,406 | -54,672 | 2,794 |
Balance, shares at Dec. 31, 2012 | ' | 17,265,000 | ' | ' | ' | ' |
Deferred stock-based compensation | 1,917 | ' | ' | 1,917 | ' | ' |
Issuance of stock on exercise of options and RSUs | 3,913 | ' | 5,239 | -1,326 | ' | ' |
Issuance of stock on exercise of options and RSUs, shares | ' | 1,083,000 | ' | ' | ' | ' |
Issuance of stock purchased through ESPP | 521 | ' | 521 | ' | ' | ' |
Issuance of stock purchased through ESPP, shares | ' | 66,000 | ' | ' | ' | ' |
Issuance of cash dividends | -2,761 | ' | ' | ' | -2,761 | ' |
Repurchase of common stock | -873 | ' | -873 | ' | ' | ' |
Repurchase of common stock, shares | ' | -6,000 | ' | ' | ' | ' |
Net income | 18,808 | ' | ' | ' | 18,808 | ' |
Other comprehensive gain (loss) | -382 | ' | ' | ' | ' | -382 |
Balance at Dec. 31, 2013 | $81,174 | $18 | $114,372 | $2,997 | ($38,625) | $2,412 |
Balance, shares at Dec. 31, 2013 | ' | 18,408,000 | ' | ' | ' | ' |
The_Company_and_summary_of_sig
The Company and summary of significant accounting policies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
The Company and summary of significant accounting policies [Abstract] | ' | |||
The Company and summary of significant accounting policies | ' | |||
1. The Company and 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. The Company's headquarters are located in Sunnyvale, California, and it has operations in Taiwan and China. | ||||
Use of estimates | ||||
The preparation of consolidated financial statements in accordance with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates involve those required in the assessment of the allowance for sales returns, doubtful accounts and/or potential excess obsolete inventory. Actual results could differ from those estimates. | ||||
Basis of presentation | ||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. | ||||
Foreign currency translation | ||||
The Company's operations through foreign subsidiaries use the local currency as their functional currency. All assets and liabilities of the subsidiaries are translated at rates of exchange as of the balance sheet date. Revenues and expenses are translated at the average rate of exchange for the period. Gains and losses resulting from foreign currency translation are recorded as a separate component of other comprehensive income in stockholders' equity. Foreign currency transaction gains and losses are recorded in interest and other income and have not been material. | ||||
Cash, cash equivalents, short-term and long-term investments | ||||
The Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of cash deposited in money market, certificate of deposit, and checking accounts. | ||||
The Company accounts for its investments under the provisions of Accounting Standards Codification ("ASC") 320 "Investments - Debt and Equity Securities." Investments in highly liquid financial instruments with remaining maturities greater than three months and maturities of less than one year are classified as short-term investments. Financial instruments with remaining maturities greater than one year are classified as long-term investments. Investments in related party companies are included in "Other Assets" in the Consolidated Balance Sheets. All investments are classified as available-for-sale and are reported at fair value using the specific identification method with net unrealized gain/(loss) reported, net of tax as other comprehensive gain/(loss) in stockholders' equity. The fair value of the Company's available-for-sale securities are based on quoted market prices or other methodologies for those investments with no quoted market prices at the balance sheet dates. | ||||
The Company's financial instruments also include accounts receivable, accounts payable and debts, and are carried at cost, which approximates the fair value of these instruments. | ||||
Fair value of financial instruments | ||||
The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company 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, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | ||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | ||||
Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||
Level 3 - Inputs that are generally unobservable and typically reflect management's estimate of assumptions that market participants would use in pricing the asset or liability. | ||||
The Company's valuation techniques used to measure the fair value of money market funds and certain marketable equity securities were derived from quoted prices in active markets for identical assets or liabilities. | ||||
In accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other items at fair value. The Company has not elected the fair value option for any eligible financial instruments. | ||||
Allowance for doubtful accounts | ||||
The Company performs periodic credit evaluations of its customers' financial condition. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability or unwillingness of customers to make required payments. When the Company becomes aware that a specific customer is unable to meet its financial obligations, for example, as a result of bankruptcy or deterioration in the customer's operating results or financial position, the Company records a specific allowance to reflect the level of credit risk in the customer's outstanding receivable balance. In addition, the Company records additional allowances based on historical sales returns. The Company is not able to predict changes in the financial condition of customers, and if circumstances related to customers deteriorate, estimates of the recoverability of trade receivables could be materially affected and the Company may be required to record additional allowances. Alternatively, if the Company provides more allowances than the Company needs, the Company may reverse a portion of such provisions in future periods based on actual collection experience. | ||||
Inventories | ||||
Inventories are stated at the lower of cost or market, with cost being determined using standard cost, which approximates actual cost on a first-in, first-out basis. Market value is determined as the lower of replacement cost or net realizable value. Provisions are made for excess and obsolete inventory based on historical usage and management's estimates of future demand. Inventory reserves, once established, are only reversed upon sale or disposition of related inventory. | ||||
Property and equipment | ||||
Property and equipment is stated at cost less accumulated depreciation and impairment charges. Depreciation is computed using the straight-line method using estimated useful lives of 25 years for building, two to 10 years for machinery and equipment and five years for furniture and fixtures. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the estimated life of the assets, generally two to four years, or the lease term. Depreciation and amortization expense was $2.1 million in 2013 and $1.6 million in 2012. | ||||
Impairment of Long-lived Assets | ||||
The Company reviews its long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted future cash flows to the recorded value of the asset. If an impairment is indicated, the asset is written down to its estimated fair value based on fair market values. | ||||
Revenue recognition | ||||
The Company recognizes revenue upon shipment of its products to its customers, provided that the Company 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 its products, the Company has no obligation to provide any modification or customization upgrades, enhancements or post contract customer support. | ||||
Allowances are provided for estimated returns. A provision for estimated sales return allowances is 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. Such adjustments, which are recorded against revenue in the period, have generally not been material. The Company accrued $0.06 million and $0.02 million for warranty reserves as of December 31, 2013 and 2012, respectively. | ||||
Shipping and handling expenses | ||||
Shipping and handling expenses are included in cost of revenue. | ||||
Research and development expenses | ||||
Research and development costs are charged to expense as incurred. | ||||
Advertising expenses | ||||
Advertising costs are charged to expense as incurred and have not been material in 2013 and 2012. | ||||
Sales taxes | ||||
The Company accounts for taxes charged to its customers and collected on behalf of taxing authorities on a net basis. | ||||
Income taxes | ||||
The Company accounts for income taxes in accordance with ASC 740 which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all deferred tax assets will not be realized. | ||||
The Company applies ASC 740 which utilizes a two-step approach wherein a tax benefit is recognized if a position is more-likely-than-not to be sustained. The amount of the benefit is then measured to be the highest tax benefit that is greater than 50% likely to be realized. The Company has elected to include interest and penalties related to its tax contingencies in income tax expense. The Company files a U.S. federal tax return and a return with the State of California. The Company has determined that its major tax jurisdictions are the United States, California, Taiwan and China. The tax years of 2008 through 2013 remain open and subject to examination by the appropriate aforementioned governmental agencies. | ||||
The Company follows the provisions of ASC 740-10-25, Income Taxes: Recognition ("ASC 740-10-25"). The total amount of unrecognized tax benefit as of December 31, 2013 and 2012 was $0.7 million and $0 million respectively. The total amount of unrecognized tax benefit that, if recognized, would affect the effective tax rate was $0.3 million and $0 million as of December 31, 2013 and 2012, respectively. The increase in unrecognized tax benefit during the year ended December 31, 2013 was mainly due to the increase in the valuation of the Company's research credit for federal and state income taxes purposes. | ||||
A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefit for the year ended December 31, 2013 is as follows: | ||||
Balance at January 1, 2013 | $ | - | ||
Additions based on tax positions related to the current year | 683 | |||
Balance at December 31, 2013 | $ | 683 | ||
The Company recognizes interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes. During the years ended December 31, 2013 and 2012, the Company recognized approximately $0.1 million and $0 million, respectively, for interest and penalties. | ||||
Deferred tax assets pertaining to windfall tax benefits on the exercise of share awards and the corresponding credit to additional paid-in capital are recorded if the related tax deduction reduces tax payable. The Company has elected the "with-and-without approach" regarding ordering of windfall tax benefits to determine whether the windfall tax benefit did reduce taxes payable in the current year. Under this approach, the windfall tax benefits would be recognized in additional paid-in capital only if an incremental tax benefit is realized after considering all other tax benefits presently available to the Company. The Company's deferred tax assets as of December 31, 2013 do not include $0.6 million of excess tax benefits from employee stock option exercises that are a component of its net operating loss carryovers. Stockholder's equity will be increased by $0.6 million if and when such excess tax benefits are ultimately realized. | ||||
The Company files income tax returns in the United States (federal) and in various state and local jurisdictions. In most instances, the Company is no longer subject to federal, state and local income tax examinations by tax authorities for years prior to 2010, and is not currently under examination by any federal, state or local jurisdiction. It is not anticipated that unrecognized tax benefits will significantly change in the next twelve months. | ||||
Stock-based compensation | ||||
The Company estimates the fair value of the share-based payment awards on the date of grant using an option pricing model. The value of awards that are ultimately expected to vest is recognized as an expense over the requisite employee service period. | ||||
Comprehensive income | ||||
Comprehensive income is defined as the change in equity of a company from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income consists of cumulative translation adjustments and unrealized gains on short-term investments and is disclosed in the consolidated statements of stockholders' equity. | ||||
Recent accounting pronouncements | ||||
In July 2013, 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 | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity [Abstract] | ' |
Stockholders' Equity | ' |
2. Stockholders' Equity | |
Preferred Stock. The Company is authorized to issue 5,000,000 shares of preferred stock, none of which was outstanding as of December 31, 2013. The Board of Directors may determine the rights, preferences and privileges of any preferred stock issued in the future. | |
Common Stock. On November 1, 2013, the Company amended its Amended and Restated Certificate of Incorporation to increase the number of shares of common stock authorized for issuance from 20,000,000 to 100,000,000. | |
On August 30, 2013, the Company effected a 2-for-1 split of its outstanding common stock, pursuant to previously obtained stockholder authorization. The number of authorized shares of common stock was not changed. The stock split increased the Company's issued and outstanding shares of common stock as of August 30, 2013 from approximately 9,061,568 shares to approximately 18,123,136 shares. All share and per share numbers reflect the split and were applied on a retroactive basis. | |
Stock Repurchase Program. On November 30, 2011, the Company announced a program to repurchase up to $6.0 million worth of the Company's outstanding common stock. Repurchases under the program may be made in open market and privately negotiated transactions in compliance with Securities and Exchange Commission Rule 10b-18, subject to market conditions, applicable legal requirements and other factors. The Company is not required to repurchase any amount of common stock in any period and the program may be modified or suspended at any time. The duration of the repurchase program is open-ended. As of December 31, 2013, an aggregate of 602,256 shares of common stock had been repurchased under the program. | |
Dividends. On November 7, 2013, the Company announced it had declared a cash dividend of fifteen cents per share, which was payable on December 23, 2013 to holders of record on December 6, 2013. | |
Stockholder Rights Plan. On March 10, 2011, the Board of Directors entered into an Amended and Restated Rights Agreement (the "Restated Rights Plan"), which amended and restated the original rights agreement dated as of May 29, 2001 (the "Original Agreement"). In connection with the adoption of the Original Agreement, one preferred stock purchase right (a "Right") was distributed for each outstanding share of common stock. Since the occurrence of a one-for-five reverse split of the common stock at the close of business on August 7, 2010, five Rights had been associated with each outstanding share of common stock. The Restated Rights Plan restores the initial one Right per share of common stock ratio of the Original Agreement, but is also subject to adjustment as provided in the Restated Rights Plan. Rights continue to be attached to all outstanding shares of common stock, and no separate Rights certificates have been distributed. | |
Rights will separate from the common stock and a "Distribution Date" will occur upon the earliest of the following: (i) a public announcement that a person, entity or group of affiliated or associated persons and/or entities (an "Acquiring Person") has acquired, or obtained the right to acquire, beneficial ownership of fifteen percent (15%) or more of the outstanding shares of common stock (other than (A) as a result of repurchases of stock by the Company or certain inadvertent actions by institutional or certain other stockholders, (B) the Company, any subsidiary of the Company or any employee benefit plan of the Company or any subsidiary, (C) Foxconn Holding Limited (which owned in excess of fifteen percent (15%) of the outstanding shares of common stock when the Original Agreement was implemented), so long as such entity, together with its affiliated or associated persons and/or entities, does not increase its beneficial ownership by more than one percent (1%) of the outstanding shares of common stock above the percentage held in May 2001 (or such lesser percentage as may result following any transfer of securities after such date until Foxconn beneficially owns less than fifteen percent (15%) of the outstanding shares of common stock)) and (D) certain other instances set forth in the Restated Rights Plan); or (ii) ten (10) business days (unless such date is extended by the Board of Directors) following the commencement of a tender offer or exchange offer which would result in any person, entity or group of affiliated or associated persons and/or entities becoming an Acquiring Person (unless such tender offer or exchange offer is a Permitted Offer as defined in the Restated Rights Plan). As soon as practicable following the Distribution Date, separate certificates evidencing the Rights ("Rights Certificates") will be mailed to holders of record of the common stock as of the close of business on the Distribution Date, and the separate Rights Certificates alone will evidence the Rights. | |
The Rights are not exercisable until the Distribution Date. The Rights will expire on the earliest of (i) May 29, 2021, (ii) consummation of a merger transaction with a person, entity or group who (x) acquired common stock pursuant to a Permitted Offer and (y) is offering in the merger the same price per share and form of consideration paid in the Permitted Offer or (iii) redemption or exchange of the Rights by the Company as described in the Amended Rights Plan. | |
Stockbased_Compensation
Stock-based Compensation | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Stock-based Compensation [Abstract] | ' | ||||||||||||||
Stock-based Compensation | ' | ||||||||||||||
3. Stock-based Compensation | |||||||||||||||
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. The Company adopted the Black-Scholes valuation model for stock options granted and stock purchased pursuant to the ESPP after June 30, 2010. The Company believes that the Black-Scholes model is more appropriate in determining fair value of its stock-based compensation and does not differ materially from the previous valuation model used. | |||||||||||||||
At December 31, 2013, the Company had one stock-based compensation plan, the 2000 Stock Incentive Plan (the "Stock Incentive Plan"), which is described below. | |||||||||||||||
In November 2000, the Company adopted the Stock Incentive Plan under which 300,000 shares of common stock were reserved for issuance to eligible employees, directors and consultants upon exercise of stock options and stock purchase rights. On October 21, 2013, the stockholders approved an increase by 900,000 the number of shares of common stock available for issuance under the Stock Incentive Plan. The number of shares reserved for issuance under the Company's 2000 Stock Incentive Plan may be increased on the first day of the Company's fiscal year by the lesser of 680,000 shares, 5% of the fully diluted outstanding shares of the Company's common stock on that date or a lesser amount determined by the Company's Board of Directors. There was no increase on January 1, 2013, because the Board determined there were enough shares available for issuance in 2013 pursuant to the Plan. Stock options, restricted stock, restricted stock units ("RSUs") or stock appreciation rights may be awarded under the 2000 Stock Incentive Plan. | |||||||||||||||
The plan was amended and restated in 2010 to, among other things, extend the term under which awards may be granted under the plan until March 17, 2020, eliminate a 10 million share ceiling on the aggregate number of shares of common stock that may be issued under the plan, and to include certain qualifying performance criteria and annual award limits so that awards granted under the plan qualify as "performance-based compensation" under the requirements of Section 162(m) of the Internal Revenue Code of 1986, as amended. | |||||||||||||||
Under the Stock Incentive Plan, participants may be granted RSUs, representing an unfunded, unsecured right to receive common stock 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, over three years at a rate of 33.3 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 applicable vesting term of the award. | |||||||||||||||
During the year ended December 31, 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 year ended December 31, 2013 and 2012 was approximately $0.5 million and $0.7 million, respectively. At December 31, 2013, there was $0.8 million of unrecognized compensation cost related to RSUs, which is expected to be realized over three years. | |||||||||||||||
During the year ended December 31, 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 year ended December 31, 2013 was approximately $0.6 million. At December 31, 2013, there was $1.6 million of unrecognized compensation cost related to RSUs, of which $0.1 million is expected to be realized over one year, $0.7 million is expected to be realized over two years and $0.8 million is expected to be realized over three years. | |||||||||||||||
Options granted under the Stock Incentive Plan generally vest over four years and are exercisable for not more than ten years. However, most options granted in the past four years have been fully vested at the time of grant. | |||||||||||||||
The following information relates to stock option activity for the year ended December 31, 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 | (1,082,920 | ) | 3.84 | ||||||||||||
Forfeited | (600 | ) | 3.9 | ||||||||||||
Outstanding at December 31, 2013 | 565,640 | $ | 5.28 | 7.89 Years | $ | 5,528,898 | |||||||||
Vested and expected to vest at December 31, 2013 | 565,640 | $ | 5.28 | 7.89 Years | $ | 5,528,898 | |||||||||
Exercisable at December 31, 2013 | 115,400 | $ | 4.01 | 4.45 Years | $ | 1,273,598 | |||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price on the last trading day of the fourth quarter of fiscal 2012 and 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 December 31, 2013 and 2012. This amount changes based on the fair market value of the Company's common stock. The total intrinsic value of options exercised for the years ended December 31, 2013 and 2012 were $12.8 million and $1.3 million, respectively. | |||||||||||||||
The dividend rate was 0.15% and 1.25% for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||
Cash received from option exercises during the year ended December 31, 2013 and 2012 was approximately $5.2 million and $0.9 million, respectively, and is included within the financing activities section in the accompanying consolidated statements of cash flows. | |||||||||||||||
Information relating to stock options outstanding at December 31, 2013 is as follows: | |||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||
Weighted | |||||||||||||||
Average | Weighted | Weighted | |||||||||||||
Range of | Number | Remaining | Average | Number | Average | ||||||||||
Exercise | Outstanding | Contractual | Exercise | Exercisable | Exercise | ||||||||||
Price | As of 12/31/13 | Term | Price | As of 12/31/13 | Price | ||||||||||
$2.03 | - | $3.88 | 103,140 | 6.03 | $ | 3.35 | 33,840 | $ | 2.29 | ||||||
$3.91 | - | $4.45 | 168,100 | 7.62 | $ | 4.26 | 33,465 | $ | 4.11 | ||||||
$4.50 | - | $5.15 | 69,600 | 7.73 | $ | 4.79 | 36,095 | $ | 4.88 | ||||||
$6.03 | - | $6.03 | 12,000 | 3.58 | $ | 6.03 | 12,000 | $ | 6.03 | ||||||
$6.87 | - | $6.87 | 170,400 | 9.29 | $ | 6.87 | - | $ | - | ||||||
$8.17 | - | $8.17 | 42,400 | 9.38 | $ | 8.17 | - | $ | - | ||||||
565,640 | 7.89 | $ | 5.28 | 115,400 | $ | 4.01 | |||||||||
Options exercisable as of December 31, 2013 and 2012 were 115,400 and 489,110 at an average exercise price of $4.01 and $7.59 per share, respectively. | |||||||||||||||
There were 990,524 shares available for future issuance under the Stock Incentive Plan as of December 31, 2013. | |||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||
In November 2000, the Company adopted its ESPP. The Company reserved 600,000 shares of common stock for issuance under the ESPP. The ESPP was amended and restated in 2010. On April 29, 2011, the stockholders approved an increase by 600,000 in the number of shares of common stock available for issuance. On the first day of January of each year beginning January 1, 2001 through December 31, 2010, additional shares of common stock were reserved for issuance under the ESPP as determined by the Board of Directors. The ESPP limited the annual increase to the lesser of 1% of the Company's issued and outstanding common stock or 400,000 shares. The ESPP provides eligible employees with the opportunity to acquire shares of common stock at a price of 85% of the lower of the fair market value of the common stock on the first day of the offering period or the last day of the offering period, whichever is lower. The ESPP is structured as a qualified employee stock purchase plan under Section 423 of the Internal Revenue Code of 1986, as amended. However, the ESPP is not intended to be a qualified pension, profit sharing or stock bonus plan under Section 401(a) of the 1986 Code and is not subject to the provisions of the Employee Retirement Security Act of 1974. The Board may amend, suspend, or terminate the Plan at any time without notice. A total of 92,111 and 117,920 shares were issued under the ESPP in 2013 and 2012, respectively. | |||||||||||||||
There were 318,900 shares available for future issuance under the ESPP as of December 31, 2013. | |||||||||||||||
The following information relates to the ESPP: | |||||||||||||||
2013 | 2012 | ||||||||||||||
Weighted average fair value per share of shares purchased | $ | 5.66 | $ | 7.07 | |||||||||||
Total compensation expense for ESPP | $ | 409,079 | $ | 139,595 | |||||||||||
Total amount of cash received from the purchase of stock through ESPP | $ | 521,308 | $ | 416,741 | |||||||||||
Total intrinsic value of ESPP stock purchased at December 31st | $ | 863,120 | $ | 291,958 | |||||||||||
The following table summarizes employee stock-based compensation expense resulting from stock options, RSUs, and the ESPP (in thousands): | |||||||||||||||
Years Ended December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Included in cost of revenue | $ | 373 | $ | 119 | |||||||||||
Included in operating expenses: | |||||||||||||||
Research and development | 232 | 125 | |||||||||||||
Sales, marketing and administrative | 1,312 | 822 | |||||||||||||
Total | 1,544 | 947 | |||||||||||||
Total stock-based compensation expenses | $ | 1,917 | $ | 1,066 |
Net_Income_Per_Share
Net Income Per Share | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Net Income Per Share [Abstract] | ' | ||||||
Net Income Per Share | ' | ||||||
4. 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 the 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 common shares 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 years indicated (in thousands, except per share amounts): | |||||||
Years Ended December 31, | |||||||
2013 | 2012 | ||||||
Numerator: | |||||||
Net income attributable to common stockholders | $ | 18,808 | $ | 9,641 | |||
Denominator: | |||||||
Shares used in computing net income per share: | |||||||
Weighted average of common shares outstanding | |||||||
Basic | 17,785 | 17,596 | |||||
Diluted | 18,481 | 17,861 | |||||
Net income per share attributable to common stockholders: | |||||||
Basic | $ | 1.06 | $ | 0.55 | |||
Diluted | $ | 1.02 | $ | 0.54 | |||
The following outstanding options that were out-of-the money were excluded from the computation of diluted net income per share (in thousands) as the effect would have been anti-dilutive: | |||||||
Years Ended December 31, | |||||||
2013 | 2012 | ||||||
Options to purchase common stock | - | 133 |
Balance_Sheet_Components
Balance Sheet Components | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Balance Sheet Components [Abstract] | ' | ||||||||
Balance Sheet Components | ' | ||||||||
5. Balance Sheet Components (in thousands) | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Cash and cash equivalents: | |||||||||
Cash | $ | 17,676 | $ | 3,392 | |||||
Money market instruments and funds | 927 | 1,401 | |||||||
$ | 18,603 | $ | 4,793 | ||||||
Accounts receivable, net: | |||||||||
Accounts receivable | $ | 11,687 | $ | 8,167 | |||||
Less: Allowance for doubtful accounts and sales returns | (121 | ) | (121 | ) | |||||
$ | 11,566 | $ | 8,046 | ||||||
Allowance for doubtful accounts and sales returns: | |||||||||
Balance at beginning of year | $ | 121 | $ | 121 | |||||
Utilized | - | - | |||||||
Balance at end of year | $ | 121 | $ | 121 | |||||
Inventories, net: | |||||||||
Finished goods | $ | 2,455 | $ | 1,824 | |||||
Work-in-process | 4,134 | 2,546 | |||||||
Raw materials | 4,041 | 2,563 | |||||||
$ | 10,630 | $ | 6,933 | ||||||
Accrued expenses and other current liabilities: | |||||||||
Compensation costs | $ | 5,104 | $ | 2,976 | |||||
Professional fees | 38 | 62 | |||||||
Outside commissions | 112 | 90 | |||||||
Royalities | 74 | 32 | |||||||
ESPP | 151 | 107 | |||||||
Deferred rent | 57 | 74 | |||||||
Warranty | 57 | 21 | |||||||
Operating related (Taiwan and China) | 289 | 529 | |||||||
Income tax | 890 | 55 | |||||||
Others | 362 | 169 | |||||||
$ | 7,134 | $ | 4,115 | ||||||
Long-term liabilities: | |||||||||
Accrued pension liability (Taiwan) | $ | 600 | $ | 591 | |||||
Other liabilities | - | 25 | |||||||
$ | 600 | $ | 616 | ||||||
Accumulated other comprehensive Income: | |||||||||
Cumulative translation adjustments | $ | 2,408 | $ | 2,800 | |||||
Unrealized gain/(loss) on short-term investments | 4 | (6 | ) | ||||||
$ | 2,412 | $ | 2,794 |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment, Net [Abstract] | ' | ||||||||
Property and Equipment, Net | ' | ||||||||
6. Property and Equipment, Net | |||||||||
December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Machinery and equipment | $ | 20,696 | $ | 15,678 | |||||
Furniture and fixtures | 673 | 618 | |||||||
Leasehold improvements | 986 | 901 | |||||||
Building and equipment prepayments | 2,948 | 1,098 | |||||||
$ | 25,303 | $ | 18,295 | ||||||
Less: Accumulated depreciation | (12,045 | ) | (10,587 | ) | |||||
Total property and equipment, net | $ | 13,258 | $ | 7,708 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
7. Income Taxes | |||||||||
The components of income (loss) before income taxes are as follows (in thousands): | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Income subject to domestic income taxes only | 17,645 | 4,000 | |||||||
Income subject to foreign income taxes only | 164 | 2,456 | |||||||
17,809 | 6,456 | ||||||||
The following is a reconciliation of the effective tax rates and the United States statutory federal income tax rate: | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Statutory federal income tax rate | (34.0 | )% | (34.0 | )% | |||||
State income tax | (5.8 | ) | (5.8 | ) | |||||
Effect of permanent differences | (1.1 | ) | - | ||||||
Stock compensation | 10.1 | 2.4 | |||||||
Deferred compensation | (2.9 | ) | (1.5 | ) | |||||
Minimum tax | (1.7 | ) | (1.4 | ) | |||||
Foreign tax differential | (0.1 | ) | (4.4 | ) | |||||
Research and development credits | - | 1.1 | |||||||
Investment credits | 0.9 | 0.3 | |||||||
Valuation allowance | 47.4 | 88.7 | |||||||
Accrual of uncertain tax positions | (2.3 | ) | - | ||||||
Other | (4.9 | ) | 4 | ||||||
Effective tax rate | 5.6 | % | 49.3 | % | |||||
Deferred tax assets consisted of the following (in thousands): | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforwards | $ | 3,501 | $ | 8,230 | |||||
Windfall tax benefit carryforwards | (580 | ) | - | ||||||
Credit carryforwards | 1,841 | 2,245 | |||||||
Depreciation and amortization | 6 | - | |||||||
Stock compensation | (264 | ) | 649 | ||||||
Accruals and allowances | 1,532 | 788 | |||||||
6,036 | 11,912 | ||||||||
Less: valuation allowance | - | (8,210 | ) | ||||||
Net deferred tax assets | $ | 6,036 | $ | 3,702 | |||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Valuation allowance on deferred tax assets: | |||||||||
Balance at beginning of year | $ | 8,210 | $ | 13,397 | |||||
Addition | - | - | |||||||
Utilized | (8,210 | ) | (5,187 | ) | |||||
Balance at end of year | $ | - | $ | 8,210 | |||||
The income tax provision (benefit) is composed of the following (in thousands): | |||||||||
Years Ended December 31, | |||||||||
Current: | 2013 | 2012 | |||||||
Federal | $ | 382 | $ | 107 | |||||
State | 1 | - | |||||||
Foreign | 953 | 409 | |||||||
1,336 | 516 | ||||||||
Deferred: | |||||||||
Federal | (1,450 | ) | (3,160 | ) | |||||
State | (232 | ) | (541 | ) | |||||
Foreign | (653 | ) | - | ||||||
Total benefit for income taxes | $ | (999 | ) | $ | (3,185 | ) | |||
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 a reduction in the valuation allowance. 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 December 31, 2013, the Company's valuation allowance was fully released. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income are reduced. | |||||||||
As of December 31, 2013, the Company has a net operating loss carryforward of approximately $7.5 million for federal and $6.5 million for state income tax purposes. If not utilized, these carryforwards will begin to expire after 2022 for federal and after 2016 for state purposes. | |||||||||
As of December 31, 2013, the Company has research credit carryforwards of approximately $1.2 million and $0.9 million for federal and state income tax purposes, respectively. If not utilized, the federal carryforwards will expire in various amounts beginning in 2019. The California tax credits can be carried forward indefinitely. | |||||||||
Internal Revenue Code Section 382 limits the use of net operating loss and tax credit carryforwards in certain situations where changes occur in the stock ownership of a company. In the event the Company has had a change in ownership, utilization of the carryforwards could be restricted. The Company has concluded no change in stock ownership has occurred during 2013. | |||||||||
Concentrations_of_Certain_Risk
Concentrations of Certain Risks | 12 Months Ended |
Dec. 31, 2013 | |
Concentrations of Certain Risks [Abstract] | ' |
Concentrations of Certain Risks | ' |
8. Concentrations of Certain Risks | |
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, short-term and long-term investments and accounts receivable. The Company limits the amount of deposits in any one financial institution and any one financial instrument. The Company invests its excess cash principally in certificates of deposit, debt instruments issued by high-credit quality financial institutions and corporations and money market accounts with financial institutions in the United States. | |
The Company performs periodic credit evaluations of its customers' financial condition, and limits the amount of credit extended when deemed necessary, but generally does not require collateral. | |
Two customers accounted for 46.0% and 18.0% of the Company's accounts receivable at December 31, 2013 and 2012, respectively. | |
One customer accounted for 35.3% and another customer accounted for 10.0% of revenues in the year ended December 31, 2013 and 2012, respectively. | |
Certain components used in manufacturing the Company's products have relatively few alternative sources of supply, and establishing additional or replacement suppliers for such components may not be accomplished quickly. | |
Geographic_Segment_Information
Geographic Segment Information | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Geographic Segment Information [Abstract] | ' | ||||||
Geographic Segment Information | ' | ||||||
9. 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): | |||||||
Years Ended December 31, | |||||||
2013 | 2012 | ||||||
Revenues | |||||||
North America | $ | 42,815 | $ | 27,299 | |||
Europe | 15,604 | 8,933 | |||||
Asia | 17,651 | 10,379 | |||||
$ | 76,070 | $ | 46,611 | ||||
Years Ended December 31, | |||||||
2013 | 2012 | ||||||
Revenues | |||||||
Connectivity Products | $ | 57,660 | $ | 32,622 | |||
Optical Passive Products | 18,410 | 13,989 | |||||
$ | 76,070 | $ | 46,611 | ||||
Years Ended December 31, | |||||||
2013 | 2012 | ||||||
Property and Equipment, net | |||||||
United States | $ | 40 | $ | 43 | |||
Taiwan | 7,148 | 3,473 | |||||
China | 6,070 | 4,192 | |||||
$ | 13,258 | $ | 7,708 |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
10. 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. | ||||
Off-Balance Sheet Arrangements | ||||
The Company had no off-balance sheet arrangements as of December 31, 2013 and 2012, respectively. | ||||
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 December 31, 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 warranty reserves as of December 31, 2013 and 2012, respectively. | ||||
Operating Leases | ||||
The Company leases certain office space under long-term operating leases expiring at various dates through 2017. Total rent expense under these operating leases was approximately $0.7 million for each of the years ended December 31, 2013 and 2012. | ||||
Total future minimum lease payments under operating leases as of December 31, 2013 are summarized below (in thousands): | ||||
Years ending December 31, | ||||
2014 | 684 | |||
2015 | 275 | |||
2016 | 23 | |||
2017 and after | 2 | |||
Total | $ | 984 |
Bank_Loans
Bank Loans | 12 Months Ended |
Dec. 31, 2013 | |
Bank Loans [Abstract] | ' |
Bank Loans | ' |
11. 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 repaid all of the loans. | |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
12. Related Party Transactions | |
As of December 31, 2013, and 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 17.38% 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. | |
Sales of products to Hon Hai Precision Co., Ltd. were $0.01 million and $0.06 million in the years ended December 31, 2013 and 2012, respectively. Amounts due from Hon Hai Precision Co., Ltd. were $0.01 and $0 at December 31, 2013 and 2012, respectively. | |
Purchases of raw materials from Hon Hai Precision Co., Ltd. were $1.5 million and $1.0 million in the years ended December 31, 2013 and 2012 respectively. Amounts due to Hon Hai Precision Co., Ltd. were $0.3 million at each of the years ended December 31, 2013 and 2012. | |
Fair_Value_of_Financial_instru
Fair Value of Financial instruments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value of Financial instruments [Abstract] | ' | ||||||||||||
Fair Value of Financial instruments | ' | ||||||||||||
13. 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 year ended December 31, 2013. | |||||||||||||
The adoption of ASU 2011-04 did not have a significant impact on the Company's financial statements. | |||||||||||||
The following table represents the fair value hierarchy for the Company's financial assets (investments) measured at fair value on a recurring basis at December 31, 2013 and December 31, 2012 (in thousands): | |||||||||||||
Fair Value Measurements at | |||||||||||||
Reporting Date Using | |||||||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | Significant | |||||||||||
Balance at | Markets for | Observable | Unobservable | ||||||||||
December 31, | Identical Assets | Inputs | Inputs | ||||||||||
2013 | (Level 1) | (level 2) | (Level 3) | ||||||||||
Cash equivalents: | |||||||||||||
Money market mutual funds | $ | 927 | $ | 927 | $ | - | $ | - | |||||
Short-term investments: | |||||||||||||
Time deposits | 15,065 | 15,065 | - | - | |||||||||
Corporate bonds | 13,011 | - | 13,011 | - | |||||||||
Long-term investments: | |||||||||||||
Time deposits | 10,453 | 10,453 | - | - | |||||||||
Total | $ | 39,456 | $ | 26,445 | $ | 13,011 | $ | - | |||||
Fair Value Measurements at | |||||||||||||
Reporting Date Using | |||||||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | Significant | |||||||||||
Balance at | Markets for | Observable | Unobservable | ||||||||||
December 31, | Identical Assets | Inputs | Inputs | ||||||||||
2012 | (Level 1) | (level 2) | (Level 3) | ||||||||||
Cash equivalents: | |||||||||||||
Money market mutual funds | $ | 1,401 | $ | 1,401 | $ | - | $ | - | |||||
Short-term investments: | |||||||||||||
Time deposits | 19,378 | 19,378 | - | - | |||||||||
Corporate bonds | 9,104 | - | 9,104 | - | |||||||||
Long-term investments: | |||||||||||||
Time deposits | 10,274 | 10,274 | - | - | |||||||||
Total | $ | 40,157 | $ | 31,053 | $ | 9,104 | $ | - | |||||
As of December 31, 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 are comprised of certificates of deposit with original maturities of 365 days or more from the date of purchase. | |||||||||||||
The_Company_and_summary_of_sig1
The Company and summary of significant accounting policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
The Company and summary of significant accounting policies [Abstract] | ' | |||
Use of estimates | ' | |||
Use of estimates | ||||
The preparation of consolidated financial statements in accordance with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates involve those required in the assessment of the allowance for sales returns, doubtful accounts and/or potential excess obsolete inventory. Actual results could differ from those estimates. | ||||
Basis of presentation | ' | |||
Basis of presentation | ||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. | ||||
Foreign currency translation | ' | |||
Foreign currency translation | ||||
The Company's operations through foreign subsidiaries use the local currency as their functional currency. All assets and liabilities of the subsidiaries are translated at rates of exchange as of the balance sheet date. Revenues and expenses are translated at the average rate of exchange for the period. Gains and losses resulting from foreign currency translation are recorded as a separate component of other comprehensive income in stockholders' equity. Foreign currency transaction gains and losses are recorded in interest and other income and have not been material. | ||||
Cash, cash equivalents, short-term and long-term investments | ' | |||
Cash, cash equivalents, short-term and long-term investments | ||||
The Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of cash deposited in money market, certificate of deposit, and checking accounts. | ||||
The Company accounts for its investments under the provisions of Accounting Standards Codification ("ASC") 320 "Investments - Debt and Equity Securities." Investments in highly liquid financial instruments with remaining maturities greater than three months and maturities of less than one year are classified as short-term investments. Financial instruments with remaining maturities greater than one year are classified as long-term investments. Investments in related party companies are included in "Other Assets" in the Consolidated Balance Sheets. All investments are classified as available-for-sale and are reported at fair value using the specific identification method with net unrealized gain/(loss) reported, net of tax as other comprehensive gain/(loss) in stockholders' equity. The fair value of the Company's available-for-sale securities are based on quoted market prices or other methodologies for those investments with no quoted market prices at the balance sheet dates. | ||||
The Company's financial instruments also include accounts receivable, accounts payable and debts, and are carried at cost, which approximates the fair value of these instruments. | ||||
Fair value of financial instruments | ' | |||
Fair value of financial instruments | ||||
The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company 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, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | ||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | ||||
Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||
Level 3 - Inputs that are generally unobservable and typically reflect management's estimate of assumptions that market participants would use in pricing the asset or liability. | ||||
The Company's valuation techniques used to measure the fair value of money market funds and certain marketable equity securities were derived from quoted prices in active markets for identical assets or liabilities. | ||||
In accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other items at fair value. The Company has not elected the fair value option for any eligible financial instruments. | ||||
Allowance for doubtful accounts | ' | |||
Allowance for doubtful accounts | ||||
The Company performs periodic credit evaluations of its customers' financial condition. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability or unwillingness of customers to make required payments. When the Company becomes aware that a specific customer is unable to meet its financial obligations, for example, as a result of bankruptcy or deterioration in the customer's operating results or financial position, the Company records a specific allowance to reflect the level of credit risk in the customer's outstanding receivable balance. In addition, the Company records additional allowances based on historical sales returns. The Company is not able to predict changes in the financial condition of customers, and if circumstances related to customers deteriorate, estimates of the recoverability of trade receivables could be materially affected and the Company may be required to record additional allowances. Alternatively, if the Company provides more allowances than the Company needs, the Company may reverse a portion of such provisions in future periods based on actual collection experience. | ||||
Inventories | ' | |||
Inventories | ||||
Inventories are stated at the lower of cost or market, with cost being determined using standard cost, which approximates actual cost on a first-in, first-out basis. Market value is determined as the lower of replacement cost or net realizable value. Provisions are made for excess and obsolete inventory based on historical usage and management's estimates of future demand. Inventory reserves, once established, are only reversed upon sale or disposition of related inventory. | ||||
Property and equipment | ' | |||
Property and equipment | ||||
Property and equipment is stated at cost less accumulated depreciation and impairment charges. Depreciation is computed using the straight-line method using estimated useful lives of 25 years for building, two to 10 years for machinery and equipment and five years for furniture and fixtures. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the estimated life of the assets, generally two to four years, or the lease term. Depreciation and amortization expense was $2.1 million in 2013 and $1.6 million in 2012. | ||||
Impairment of Long-lived Assets | ' | |||
Impairment of Long-lived Assets | ||||
The Company reviews its long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted future cash flows to the recorded value of the asset. If an impairment is indicated, the asset is written down to its estimated fair value based on fair market values. | ||||
Revenue recognition | ' | |||
Revenue recognition | ||||
The Company recognizes revenue upon shipment of its products to its customers, provided that the Company 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 its products, the Company has no obligation to provide any modification or customization upgrades, enhancements or post contract customer support. | ||||
Allowances are provided for estimated returns. A provision for estimated sales return allowances is 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. Such adjustments, which are recorded against revenue in the period, have generally not been material. The Company accrued $0.06 million and $0.02 million for warranty reserves as of December 31, 2013 and 2012, respectively. | ||||
Shipping and handling expenses | ' | |||
Shipping and handling expenses | ||||
Shipping and handling expenses are included in cost of revenue. | ||||
Research and development expenses | ' | |||
Research and development expenses | ||||
Research and development costs are charged to expense as incurred. | ||||
Advertising expenses | ' | |||
Advertising expenses | ||||
Advertising costs are charged to expense as incurred and have not been material in 2013 and 2012. | ||||
Sales taxes | ' | |||
Sales taxes | ||||
The Company accounts for taxes charged to its customers and collected on behalf of taxing authorities on a net basis. | ||||
Income taxes | ' | |||
Income taxes | ||||
The Company accounts for income taxes in accordance with ASC 740 which requires that the Company recognize deferred tax liabilities and assets based on the differences between the financial statement carrying amounts and the tax bases of assets and liabilities, using enacted tax rates in effect in the years the differences are expected to reverse. Deferred income tax benefit (expense) results from the change in net deferred tax assets or deferred tax liabilities. A valuation allowance is recorded when it is more likely than not that some or all deferred tax assets will not be realized. | ||||
The Company applies ASC 740 which utilizes a two-step approach wherein a tax benefit is recognized if a position is more-likely-than-not to be sustained. The amount of the benefit is then measured to be the highest tax benefit that is greater than 50% likely to be realized. The Company has elected to include interest and penalties related to its tax contingencies in income tax expense. The Company files a U.S. federal tax return and a return with the State of California. The Company has determined that its major tax jurisdictions are the United States, California, Taiwan and China. The tax years of 2008 through 2013 remain open and subject to examination by the appropriate aforementioned governmental agencies. | ||||
The Company follows the provisions of ASC 740-10-25, Income Taxes: Recognition ("ASC 740-10-25"). The total amount of unrecognized tax benefit as of December 31, 2013 and 2012 was $0.7 million and $0 million respectively. The total amount of unrecognized tax benefit that, if recognized, would affect the effective tax rate was $0.3 million and $0 million as of December 31, 2013 and 2012, respectively. The increase in unrecognized tax benefit during the year ended December 31, 2013 was mainly due to the increase in the valuation of the Company's research credit for federal and state income taxes purposes. | ||||
A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefit for the year ended December 31, 2013 is as follows: | ||||
Balance at January 1, 2013 | $ | - | ||
Additions based on tax positions related to the current year | 683 | |||
Balance at December 31, 2013 | $ | 683 | ||
The Company recognizes interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes. During the years ended December 31, 2013 and 2012, the Company recognized approximately $0.1 million and $0 million, respectively, for interest and penalties. | ||||
Deferred tax assets pertaining to windfall tax benefits on the exercise of share awards and the corresponding credit to additional paid-in capital are recorded if the related tax deduction reduces tax payable. The Company has elected the "with-and-without approach" regarding ordering of windfall tax benefits to determine whether the windfall tax benefit did reduce taxes payable in the current year. Under this approach, the windfall tax benefits would be recognized in additional paid-in capital only if an incremental tax benefit is realized after considering all other tax benefits presently available to the Company. The Company's deferred tax assets as of December 31, 2013 do not include $0.6 million of excess tax benefits from employee stock option exercises that are a component of its net operating loss carryovers. Stockholder's equity will be increased by $0.6 million if and when such excess tax benefits are ultimately realized. | ||||
The Company files income tax returns in the United States (federal) and in various state and local jurisdictions. In most instances, the Company is no longer subject to federal, state and local income tax examinations by tax authorities for years prior to 2010, and is not currently under examination by any federal, state or local jurisdiction. It is not anticipated that unrecognized tax benefits will significantly change in the next twelve months. | ||||
Stock-based compensation | ' | |||
Stock-based compensation | ||||
The Company estimates the fair value of the share-based payment awards on the date of grant using an option pricing model. The value of awards that are ultimately expected to vest is recognized as an expense over the requisite employee service period. | ||||
Comprehensive income | ' | |||
Comprehensive income | ||||
Comprehensive income is defined as the change in equity of a company from transactions and other events and circumstances excluding transactions resulting from investments from owners and distributions to owners. Accumulated other comprehensive income consists of cumulative translation adjustments and unrealized gains on short-term investments and is disclosed in the consolidated statements of stockholders' equity. | ||||
Recent accounting pronouncements | ' | |||
Recent accounting pronouncements | ||||
In July 2013, 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. | ||||
The_Company_and_summary_of_sig2
The Company and summary of significant accounting policies (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
The Company and summary of significant accounting policies [Abstract] | ' | |||
Reconciliation of Unrecognized Tax Benefits | ' | |||
A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefit for the year ended December 31, 2013 is as follows: | ||||
Balance at January 1, 2013 | $ | - | ||
Additions based on tax positions related to the current year | 683 | |||
Balance at December 31, 2013 | $ | 683 |
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Stock-based Compensation [Abstract] | ' | ||||||||||||||
Schedule of Stock Options Activity | ' | ||||||||||||||
The following information relates to stock option activity for the year ended December 31, 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 | (1,082,920 | ) | 3.84 | ||||||||||||
Forfeited | (600 | ) | 3.9 | ||||||||||||
Outstanding at December 31, 2013 | 565,640 | $ | 5.28 | 7.89 Years | $ | 5,528,898 | |||||||||
Vested and expected to vest at December 31, 2013 | 565,640 | $ | 5.28 | 7.89 Years | $ | 5,528,898 | |||||||||
Exercisable at December 31, 2013 | 115,400 | $ | 4.01 | 4.45 Years | $ | 1,273,598 | |||||||||
Schedule of Information Relating to Stock Options Outstanding | ' | ||||||||||||||
Information relating to stock options outstanding at December 31, 2013 is as follows: | |||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||
Weighted | |||||||||||||||
Average | Weighted | Weighted | |||||||||||||
Range of | Number | Remaining | Average | Number | Average | ||||||||||
Exercise | Outstanding | Contractual | Exercise | Exercisable | Exercise | ||||||||||
Price | As of 12/31/13 | Term | Price | As of 12/31/13 | Price | ||||||||||
$2.03 | - | $3.88 | 103,140 | 6.03 | $ | 3.35 | 33,840 | $ | 2.29 | ||||||
$3.91 | - | $4.45 | 168,100 | 7.62 | $ | 4.26 | 33,465 | $ | 4.11 | ||||||
$4.50 | - | $5.15 | 69,600 | 7.73 | $ | 4.79 | 36,095 | $ | 4.88 | ||||||
$6.03 | - | $6.03 | 12,000 | 3.58 | $ | 6.03 | 12,000 | $ | 6.03 | ||||||
$6.87 | - | $6.87 | 170,400 | 9.29 | $ | 6.87 | - | $ | - | ||||||
$8.17 | - | $8.17 | 42,400 | 9.38 | $ | 8.17 | - | $ | - | ||||||
565,640 | 7.89 | $ | 5.28 | 115,400 | $ | 4.01 | |||||||||
Schedule of Information relating to the ESPP | ' | ||||||||||||||
The following information relates to the ESPP: | |||||||||||||||
2013 | 2012 | ||||||||||||||
Weighted average fair value per share of shares purchased | $ | 5.66 | $ | 7.07 | |||||||||||
Total compensation expense for ESPP | $ | 409,079 | $ | 139,595 | |||||||||||
Total amount of cash received from the purchase of stock through ESPP | $ | 521,308 | $ | 416,741 | |||||||||||
Total intrinsic value of ESPP stock purchased at December 31st | $ | 863,120 | $ | 291,958 | |||||||||||
Schedule of Employee Stock-Based Compensation Expense | ' | ||||||||||||||
The following table summarizes employee stock-based compensation expense resulting from stock options, RSUs, and the ESPP (in thousands): | |||||||||||||||
Years Ended December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Included in cost of revenue | $ | 373 | $ | 119 | |||||||||||
Included in operating expenses: | |||||||||||||||
Research and development | 232 | 125 | |||||||||||||
Sales, marketing and administrative | 1,312 | 822 | |||||||||||||
Total | 1,544 | 947 | |||||||||||||
Total stock-based compensation expenses | $ | 1,917 | $ | 1,066 |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Net Income Per Share [Abstract] | ' | ||||||
Schedule of Computation of Basic and Diluted Net Income Per Share | ' | ||||||
The following table sets forth the computation of basic and diluted net income per share for the years indicated (in thousands, except per share amounts): | |||||||
Years Ended December 31, | |||||||
2013 | 2012 | ||||||
Numerator: | |||||||
Net income attributable to common stockholders | $ | 18,808 | $ | 9,641 | |||
Denominator: | |||||||
Shares used in computing net income per share: | |||||||
Weighted average of common shares outstanding | |||||||
Basic | 17,785 | 17,596 | |||||
Diluted | 18,481 | 17,861 | |||||
Net income per share attributable to common stockholders: | |||||||
Basic | $ | 1.06 | $ | 0.55 | |||
Diluted | $ | 1.02 | $ | 0.54 | |||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ||||||
The following outstanding options that were out-of-the money were excluded from the computation of diluted net income per share (in thousands) as the effect would have been anti-dilutive: | |||||||
Years Ended December 31, | |||||||
2013 | 2012 | ||||||
Options to purchase common stock | - | 133 |
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Balance Sheet Components [Abstract] | ' | ||||||||
Schedule of Cash and Cash Equivalents | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Cash and cash equivalents: | |||||||||
Cash | $ | 17,676 | $ | 3,392 | |||||
Money market instruments and funds | 927 | 1,401 | |||||||
$ | 18,603 | $ | 4,793 | ||||||
Schedule of Accounts Receivable, Net | ' | ||||||||
Accounts receivable, net: | |||||||||
Accounts receivable | $ | 11,687 | $ | 8,167 | |||||
Less: Allowance for doubtful accounts and sales returns | (121 | ) | (121 | ) | |||||
$ | 11,566 | $ | 8,046 | ||||||
Schedule of Allowance for Doubtful Accounts and Sales Returns | ' | ||||||||
Allowance for doubtful accounts and sales returns: | |||||||||
Balance at beginning of year | $ | 121 | $ | 121 | |||||
Utilized | - | - | |||||||
Balance at end of year | $ | 121 | $ | 121 | |||||
Schedule of Inventories, Net | ' | ||||||||
Inventories, net: | |||||||||
Finished goods | $ | 2,455 | $ | 1,824 | |||||
Work-in-process | 4,134 | 2,546 | |||||||
Raw materials | 4,041 | 2,563 | |||||||
$ | 10,630 | $ | 6,933 | ||||||
Schedule of Accrued Expenses | ' | ||||||||
Accrued expenses and other current liabilities: | |||||||||
Compensation costs | $ | 5,104 | $ | 2,976 | |||||
Professional fees | 38 | 62 | |||||||
Outside commissions | 112 | 90 | |||||||
Royalities | 74 | 32 | |||||||
ESPP | 151 | 107 | |||||||
Deferred rent | 57 | 74 | |||||||
Warranty | 57 | 21 | |||||||
Operating related (Taiwan and China) | 289 | 529 | |||||||
Income tax | 890 | 55 | |||||||
Others | 362 | 169 | |||||||
$ | 7,134 | $ | 4,115 | ||||||
Schedule of Other Long-Term Liabilities | ' | ||||||||
Long-term liabilities: | |||||||||
Accrued pension liability (Taiwan) | $ | 600 | $ | 591 | |||||
Other liabilities | - | 25 | |||||||
$ | 600 | $ | 616 | ||||||
Schedule of Accumulated Other Comprehensive Income | ' | ||||||||
Accumulated other comprehensive Income: | |||||||||
Cumulative translation adjustments | $ | 2,408 | $ | 2,800 | |||||
Unrealized gain/(loss) on short-term investments | 4 | (6 | ) | ||||||
$ | 2,412 | $ | 2,794 |
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and Equipment, Net [Abstract] | ' | ||||||||
Schedule of Property and Equipment, Net | ' | ||||||||
December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Machinery and equipment | $ | 20,696 | $ | 15,678 | |||||
Furniture and fixtures | 673 | 618 | |||||||
Leasehold improvements | 986 | 901 | |||||||
Building and equipment prepayments | 2,948 | 1,098 | |||||||
$ | 25,303 | $ | 18,295 | ||||||
Less: Accumulated depreciation | (12,045 | ) | (10,587 | ) | |||||
Total property and equipment, net | $ | 13,258 | $ | 7,708 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
Schedule of Components of Income (Loss) before Income Taxes | ' | ||||||||
The components of income (loss) before income taxes are as follows (in thousands): | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Income subject to domestic income taxes only | 17,645 | 4,000 | |||||||
Income subject to foreign income taxes only | 164 | 2,456 | |||||||
17,809 | 6,456 | ||||||||
Reconciliation of Effective Tax Rates and Statutory Federal Income Tax Rate | ' | ||||||||
The following is a reconciliation of the effective tax rates and the United States statutory federal income tax rate: | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Statutory federal income tax rate | (34.0 | )% | (34.0 | )% | |||||
State income tax | (5.8 | ) | (5.8 | ) | |||||
Effect of permanent differences | (1.1 | ) | - | ||||||
Stock compensation | 10.1 | 2.4 | |||||||
Deferred compensation | (2.9 | ) | (1.5 | ) | |||||
Minimum tax | (1.7 | ) | (1.4 | ) | |||||
Foreign tax differential | (0.1 | ) | (4.4 | ) | |||||
Research and development credits | - | 1.1 | |||||||
Investment credits | 0.9 | 0.3 | |||||||
Valuation allowance | 47.4 | 88.7 | |||||||
Accrual of uncertain tax positions | (2.3 | ) | - | ||||||
Other | (4.9 | ) | 4 | ||||||
Effective tax rate | 5.6 | % | 49.3 | % | |||||
Schedule of Deferred Tax Assets | ' | ||||||||
Deferred tax assets consisted of the following (in thousands): | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforwards | $ | 3,501 | $ | 8,230 | |||||
Windfall tax benefit carryforwards | (580 | ) | - | ||||||
Credit carryforwards | 1,841 | 2,245 | |||||||
Depreciation and amortization | 6 | - | |||||||
Stock compensation | (264 | ) | 649 | ||||||
Accruals and allowances | 1,532 | 788 | |||||||
6,036 | 11,912 | ||||||||
Less: valuation allowance | - | (8,210 | ) | ||||||
Net deferred tax assets | $ | 6,036 | $ | 3,702 | |||||
Schedule of Changes in Valuation Allowances on Deferred Tax Assets | ' | ||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Valuation allowance on deferred tax assets: | |||||||||
Balance at beginning of year | $ | 8,210 | $ | 13,397 | |||||
Addition | - | - | |||||||
Utilized | (8,210 | ) | (5,187 | ) | |||||
Balance at end of year | $ | - | $ | 8,210 | |||||
Schedule of Income Tax Provision (Benefit) | ' | ||||||||
The income tax provision (benefit) is composed of the following (in thousands): | |||||||||
Years Ended December 31, | |||||||||
Current: | 2013 | 2012 | |||||||
Federal | $ | 382 | $ | 107 | |||||
State | 1 | - | |||||||
Foreign | 953 | 409 | |||||||
1,336 | 516 | ||||||||
Deferred: | |||||||||
Federal | (1,450 | ) | (3,160 | ) | |||||
State | (232 | ) | (541 | ) | |||||
Foreign | (653 | ) | - | ||||||
Total benefit for income taxes | $ | (999 | ) | $ | (3,185 | ) |
Geographic_Segment_Information1
Geographic Segment Information (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Geographic Segment Information [Abstract] | ' | ||||||
Schedule of Segment Reporting Information | ' | ||||||
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): | |||||||
Years Ended December 31, | |||||||
2013 | 2012 | ||||||
Revenues | |||||||
North America | $ | 42,815 | $ | 27,299 | |||
Europe | 15,604 | 8,933 | |||||
Asia | 17,651 | 10,379 | |||||
$ | 76,070 | $ | 46,611 | ||||
Years Ended December 31, | |||||||
2013 | 2012 | ||||||
Revenues | |||||||
Connectivity Products | $ | 57,660 | $ | 32,622 | |||
Optical Passive Products | 18,410 | 13,989 | |||||
$ | 76,070 | $ | 46,611 | ||||
Years Ended December 31, | |||||||
2013 | 2012 | ||||||
Property and Equipment, net | |||||||
United States | $ | 40 | $ | 43 | |||
Taiwan | 7,148 | 3,473 | |||||
China | 6,070 | 4,192 | |||||
$ | 13,258 | $ | 7,708 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies [Abstract] | ' | |||
Schedule of Aggregate Future Minimum Facility Lease Payments | ' | |||
Total future minimum lease payments under operating leases as of December 31, 2013 are summarized below (in thousands): | ||||
Years ending December 31, | ||||
2014 | 684 | |||
2015 | 275 | |||
2016 | 23 | |||
2017 and after | 2 | |||
Total | $ | 984 |
Fair_Value_of_Financial_instru1
Fair Value of Financial instruments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value of Financial instruments [Abstract] | ' | ||||||||||||
Schedule of Financial Assets at Fair Value | ' | ||||||||||||
The following table represents the fair value hierarchy for the Company's financial assets (investments) measured at fair value on a recurring basis at December 31, 2013 and December 31, 2012 (in thousands): | |||||||||||||
Fair Value Measurements at | |||||||||||||
Reporting Date Using | |||||||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | Significant | |||||||||||
Balance at | Markets for | Observable | Unobservable | ||||||||||
December 31, | Identical Assets | Inputs | Inputs | ||||||||||
2013 | (Level 1) | (level 2) | (Level 3) | ||||||||||
Cash equivalents: | |||||||||||||
Money market mutual funds | $ | 927 | $ | 927 | $ | - | $ | - | |||||
Short-term investments: | |||||||||||||
Time deposits | 15,065 | 15,065 | - | - | |||||||||
Corporate bonds | 13,011 | - | 13,011 | - | |||||||||
Long-term investments: | |||||||||||||
Time deposits | 10,453 | 10,453 | - | - | |||||||||
Total | $ | 39,456 | $ | 26,445 | $ | 13,011 | $ | - | |||||
Fair Value Measurements at | |||||||||||||
Reporting Date Using | |||||||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | Significant | |||||||||||
Balance at | Markets for | Observable | Unobservable | ||||||||||
December 31, | Identical Assets | Inputs | Inputs | ||||||||||
2012 | (Level 1) | (level 2) | (Level 3) | ||||||||||
Cash equivalents: | |||||||||||||
Money market mutual funds | $ | 1,401 | $ | 1,401 | $ | - | $ | - | |||||
Short-term investments: | |||||||||||||
Time deposits | 19,378 | 19,378 | - | - | |||||||||
Corporate bonds | 9,104 | - | 9,104 | - | |||||||||
Long-term investments: | |||||||||||||
Time deposits | 10,274 | 10,274 | - | - | |||||||||
Total | $ | 40,157 | $ | 31,053 | $ | 9,104 | $ | - |
The_Company_and_summary_of_sig3
The Company and summary of significant accounting policies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property and equipment | ' | ' |
Depreciation | $2,175,000 | $1,609,000 |
Revenue recognition | ' | ' |
Accrued warranty reserves | 60,000 | 20,000 |
Income taxes | ' | ' |
Unrecognized tax benefit that, if recognized, would affect the effective tax rate | 300,000 | 0 |
Reconciliation of Unrecognized Tax Benefits: | ' | ' |
Balance at January 1, 2013 | ' | ' |
Additions based on tax positions related to the current year | 683,000 | ' |
Balance at December 31, 2013 | 683,000 | ' |
Expense for interest and penalties | 100,000 | 0 |
Deferred tax asset not recognized, excess tax benefits from employee stock option exercises | $600,000 | ' |
Buildings [Member] | ' | ' |
Property and equipment | ' | ' |
Estimated useful life | '25 years | ' |
Machinery and Equipment [Member] | Minimum [Member] | ' | ' |
Property and equipment | ' | ' |
Estimated useful life | '2 years | ' |
Machinery and Equipment [Member] | Maximum [Member] | ' | ' |
Property and equipment | ' | ' |
Estimated useful life | '10 years | ' |
Furniture and Fixtures [Member] | ' | ' |
Property and equipment | ' | ' |
Estimated useful life | '5 years | ' |
Leasehold Improvements [Member] | Minimum [Member] | ' | ' |
Property and equipment | ' | ' |
Estimated useful life | '2 years | ' |
Leasehold Improvements [Member] | Maximum [Member] | ' | ' |
Property and equipment | ' | ' |
Estimated useful life | '4 years | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Nov. 07, 2013 | Aug. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 27, 2011 | Aug. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Scenario, Previously Reported [Member] | Foxconn Holding Limited [Member] | Affiliate Or Associates and Enitities [Member] | ||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | 5,000,000 | 5,000,000 | ' | ' | ' | ' |
Preferred stock, shares outstanding | ' | ' | 0 | 0 | ' | ' | ' | ' |
Common stock, shares authorized | ' | ' | 100,000,000 | 20,000,000 | 80,000,000 | ' | ' | ' |
Stock split, conversion ratio | ' | 2 | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | 18,123,136 | 18,408,261 | 17,264,926 | ' | 9,061,568 | ' | ' |
Common stock, shares outstanding | ' | 18,123,136 | 18,408,261 | 17,264,926 | ' | 9,061,568 | ' | ' |
Stock Repurchase Program, Authorized Amount (in dollars) | ' | ' | $6 | ' | ' | ' | ' | ' |
Number of shares repurchased | ' | ' | 602,256 | ' | ' | ' | ' | ' |
Dividends declared, per share | $0.15 | ' | ' | ' | ' | ' | ' | ' |
Beneficial Ownership Of Outstanding Shares | ' | ' | 15.00% | ' | ' | ' | 15.00% | 1.00% |
Stockbased_Compensation_Narrat
Stock-based Compensation (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||
Oct. 21, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2009 | Nov. 30, 2000 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 29, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2000 | Dec. 31, 2013 | |
Scenario, Plan [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | |||||||
2011 Grant [Member] | 2011 Grant [Member] | 2011 Grant [Member] | 2013 Grant [Member] | Vesting Tranche One [Member] | Vesting Tranche Two [Member] | Vesting Tranche Three [Member] | Scenario, Plan [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock were reserved for issuance | ' | ' | ' | 10,000,000 | 10,000,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' |
Stock incentive plan, additional shares authorized | 900,000 | ' | ' | ' | ' | ' | 680,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | 400,000 |
Increase to number of shares reserved for issuance as a percentage of outstanding shares | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '3 years | '5 years | '4 years | ' | ' | ' | ' | ' | ' |
Vesting rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 33.30% | 20.00% | ' | ' | ' | ' | ' | ' | ' |
Plan duration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' |
Intrinsic value of options exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12,800,000 | $1,300,000 | ' | ' | ' | ' | ' |
Dividend rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.15% | 1.25% | ' | ' | ' | ' | ' |
Cash received from option exercises | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,200,000 | 900,000 | ' | ' | ' | ' | ' |
Options exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 115,400 | 978,220 | ' | ' | ' | ' | ' |
Options exercisable, average exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.01 | $7.59 | ' | ' | ' | ' | ' |
Shares available for future issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 990,524 | ' | ' | 318,900 | ' | ' | ' |
Common stock purchase price, percentage of fair market value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' |
Shares issued under ESPP | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 92,111 | 117,920 | ' | ' |
Restricted stock units granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | 546,000 | 342,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grant-date fair value of units granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | ' | 1,917,000 | 1,066,000 | ' | ' | ' | ' | 500,000 | 700,000 | ' | 600,000 | ' | ' | ' | ' | ' | ' | 409,079 | 139,595 | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, recognition period | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, year one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, year two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, year three | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockbased_Compensation_Schedu
Stock-based Compensation (Schedule of Stock Option Activity) (Details) (Employee Stock Option [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Option [Member] | ' | ' |
Shares | ' | ' |
Outstanding, beginning balance | 1,436,360 | ' |
Granted | 212,800 | ' |
Exercised | -1,082,920 | ' |
Forfeited | 600 | ' |
Outstanding, ending balance | 565,640 | ' |
Vested and expected to vest, end of period | 565,640 | ' |
Exercisable, end of period | 115,400 | 978,220 |
Weighted Average Exercise Price | ' | ' |
Outstanding, beginning balance | $3.92 | ' |
Granted | $7.12 | ' |
Exercised | $3.84 | ' |
Forfeited | $3.90 | ' |
Outstanding, ending balance | $5.28 | ' |
Vested and expected to vest, end of period | $5.28 | ' |
Exercisable, end of period | $4.01 | $7.59 |
Weighted Average Remaining Contractual Life | ' | ' |
Outstanding, ending balance | '7 years 10 months 21 days | ' |
Vested and expected to vest, end of period | '7 years 10 months 21 days | ' |
Exercisable, end of period | '4 years 5 months 12 days | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding, ending balance | $5,528,898 | ' |
Vested and expected to vest, end of period | 5,528,898 | ' |
Exercisable, end of period | $1,273,598 | ' |
Stockbased_Compensation_Schedu1
Stock-based Compensation (Schedule of Information Relating to Stock Options Outstanding) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options Outstanding, Number Outstanding | 565,640 |
Options Outstanding, Weighted Average Remaining Contractual Term | '7 years 10 months 21 days |
Options Outstanding, Weighted Average Exercise Price | $5.28 |
Options Exercisable, Number Exercisable | 115,400 |
Options Exercisable, Weighted Average Exercise Price | $4.01 |
Exercise Price Range One [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Price Minimum | $2.03 |
Range of Exercise Price Maximum | $3.88 |
Options Outstanding, Number Outstanding | 103,140 |
Options Outstanding, Weighted Average Remaining Contractual Term | '6 years 11 days |
Options Outstanding, Weighted Average Exercise Price | $3.35 |
Options Exercisable, Number Exercisable | 33,840 |
Options Exercisable, Weighted Average Exercise Price | $2.29 |
Exercise Price Range Two [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Price Minimum | $3.91 |
Range of Exercise Price Maximum | $4.45 |
Options Outstanding, Number Outstanding | 168,100 |
Options Outstanding, Weighted Average Remaining Contractual Term | '7 years 7 months 13 days |
Options Outstanding, Weighted Average Exercise Price | $4.26 |
Options Exercisable, Number Exercisable | 33,465 |
Options Exercisable, Weighted Average Exercise Price | $4.11 |
Exercise Price Range Three [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Price Minimum | $4.50 |
Range of Exercise Price Maximum | $5.15 |
Options Outstanding, Number Outstanding | 69,600 |
Options Outstanding, Weighted Average Remaining Contractual Term | '7 years 8 months 23 days |
Options Outstanding, Weighted Average Exercise Price | $4.79 |
Options Exercisable, Number Exercisable | 36,095 |
Options Exercisable, Weighted Average Exercise Price | $4.88 |
Exercise Price Range Four [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Price Minimum | $6.03 |
Range of Exercise Price Maximum | $6.03 |
Options Outstanding, Number Outstanding | 12,000 |
Options Outstanding, Weighted Average Remaining Contractual Term | '3 years 6 months 29 days |
Options Outstanding, Weighted Average Exercise Price | $6.03 |
Options Exercisable, Number Exercisable | 12,000 |
Options Exercisable, Weighted Average Exercise Price | $6.03 |
Exercise Price Range Five [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Price Minimum | $6.87 |
Range of Exercise Price Maximum | $6.87 |
Options Outstanding, Number Outstanding | 170,400 |
Options Outstanding, Weighted Average Remaining Contractual Term | '9 years 3 months 15 days |
Options Outstanding, Weighted Average Exercise Price | $6.87 |
Options Exercisable, Number Exercisable | ' |
Options Exercisable, Weighted Average Exercise Price | ' |
Exercise Price Range Six [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Price Minimum | $8.17 |
Range of Exercise Price Maximum | $8.17 |
Options Outstanding, Number Outstanding | 42,400 |
Options Outstanding, Weighted Average Remaining Contractual Term | '9 years 4 months 17 days |
Options Outstanding, Weighted Average Exercise Price | $8.17 |
Options Exercisable, Number Exercisable | ' |
Options Exercisable, Weighted Average Exercise Price | ' |
Stockbased_Compensation_Schedu2
Stock-based Compensation (Schedule of Information Relating to ESPP) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total compensation expense for ESPP | $1,917,000 | $1,066,000 |
Total amount of cash received from the purchase of stock through ESPP | 521,000 | 416,000 |
Employee Stock Purchase Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average fair value per share of shares purchased | $5.66 | $7.07 |
Total compensation expense for ESPP | 409,079 | 139,595 |
Total amount of cash received from the purchase of stock through ESPP | 521,308 | 416,741 |
Total intrinsic value of ESPP stock purchased at December 31st | $863,120 | $291,958 |
Stockbased_Compensation_Schedu3
Stock-based Compensation (Schedule of Employee Stock-Based Compensation Expense) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $1,917,000 | $1,066,000 |
Cost of Revenue [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 373,000 | 119,000 |
Research and Development [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 232,000 | 125,000 |
Sales, Marketing and Administrative [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 1,312,000 | 822,000 |
Operating Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $1,544,000 | $947,000 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | ' | ' |
Net income attributable to common stockholders | $18,808 | $9,641 |
Weighted average of common shares outstanding | ' | ' |
Basic | 17,785 | 17,596 |
Diluted | 18,481 | 17,861 |
Net income per share attributable to common stockholders: | ' | ' |
Basic | $1.06 | $0.55 |
Diluted | $1.02 | $0.54 |
Securities excluded from computation of diluted net income per share as the effect would have been anti-dilutive: | ' | ' |
Options to purchase common stock | ' | 133 |
Balance_Sheet_Components_Detai
Balance Sheet Components (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash and cash equivalents: | ' | ' | ' |
Cash | $17,676 | $3,392 | ' |
Money market instruments and funds | 927 | 1,401 | ' |
Cash and Cash Equivalents, At Carrying Value | 18,603 | 4,793 | 13,820 |
Accounts receivable, net: | ' | ' | ' |
Accounts receivable | 11,687 | 8,167 | ' |
Less: Allowance for doubtful accounts and sales returns | -121 | -121 | ' |
Accounts Receivable, Net, Current | 11,566 | 8,046 | ' |
Allowance for doubtful accounts and sales returns: | ' | ' | ' |
Balance at beginning of year | 121 | 121 | ' |
Utilized | ' | ' | ' |
Balance at end of year | 121 | 121 | ' |
Inventories, net: | ' | ' | ' |
Finished goods | 2,455 | 1,824 | ' |
Work-in-process | 4,134 | 2,546 | ' |
Raw materials | 4,041 | 2,563 | ' |
Inventory, Net | 10,630 | 6,933 | ' |
Accrued expenses and other current liabilities: | ' | ' | ' |
Compensation costs | 5,104 | 2,976 | ' |
Professional fees | 38 | 62 | ' |
Outside commissions | 112 | 90 | ' |
Royalties | 74 | 32 | ' |
ESPP | 151 | 107 | ' |
Deferred rent | 57 | 74 | ' |
Warranty | 57 | 21 | ' |
Operating related (Taiwan and China) | 289 | 529 | ' |
Income tax | 890 | 55 | ' |
Others | 362 | 169 | ' |
Accrued Liabilities, Current, Total | 7,134 | 4,115 | ' |
Long-term liabilities: | ' | ' | ' |
Accrued pension liability (Taiwan) | 600 | 591 | ' |
Other liabilities | ' | 25 | ' |
Liabilities, Noncurrent, Total | 600 | 616 | ' |
Accumulated other comprehensive Income: | ' | ' | ' |
Cumulative translation adjustments | 2,408 | 2,800 | ' |
Unrealized gain/(loss) on short-term investments | 4 | -6 | ' |
Accumulated Other Comprehensive Income (Loss), Net Of Tax | $2,412 | $2,794 | ' |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment | $25,303 | $18,295 |
Less: Accumulated depreciation | -12,045 | -10,587 |
Total property and equipment, net | 13,258 | 7,708 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment | 20,696 | 15,678 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment | 673 | 618 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment | 986 | 901 |
Building and Equipment Prepayments [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and Equipment | $2,948 | $1,098 |
Income_Taxes_Schedule_of_Compo
Income Taxes (Schedule of Components of Income (Loss) before Income Taxes) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | ' | ' |
Income subject to domestic income taxes only | $17,645 | $4,000 |
Income subject to foreign income taxes only | 164 | 2,456 |
Income before benefit for income taxes | $17,809 | $6,456 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Effective Tax Rates and Statutory Federal Income Tax Rate) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | ' | ' |
Statutory federal income tax rate | -34.00% | -34.00% |
State income tax | -5.80% | -5.80% |
Effect of permanent differences | -1.10% | ' |
Stock compensation | 10.10% | 2.40% |
Deferred compensation | -2.90% | -1.50% |
Minimum tax | -1.70% | -1.40% |
Foreign tax differential | -0.10% | -4.40% |
Research and development credits | ' | 1.10% |
Investment credits | 0.90% | 0.30% |
Valuation allowance | 47.40% | 88.70% |
Accrual of uncertain tax positions | -2.30% | ' |
Other | -4.90% | 4.00% |
Effective tax rate | 5.60% | 49.30% |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Tax Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Net operating loss carryforwards | $3,501 | $8,230 |
Windfall tax benefit carryforwards | -580 | ' |
Credit carryforwards | 1,841 | 2,245 |
Depreciation and amortization | 6 | ' |
Stock compensation | -264 | 649 |
Accruals and allowances | 1,532 | 788 |
Deferred Tax Assets, Gross | 6,036 | 11,912 |
Less: valuation allowance | ' | -8,210 |
Net deferred tax assets | $6,036 | $3,702 |
Income_Taxes_Schedule_of_Chang
Income Taxes (Schedule of Changes in Valuation Allowances on Deferred Tax Assets) (Details) (Valuation Allowances on Deferred Tax Assets [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation Allowances on Deferred Tax Assets [Member] | ' | ' |
Valuation Allowance [Abstract] | ' | ' |
Balance at beginning of year | $8,210 | $13,397 |
Addition | ' | ' |
Utilized | -8,210 | -5,187 |
Balance at end of year | ' | $8,210 |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income Tax Provision (Benefit)) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | ' | ' |
Federal | $382 | $107 |
State | 1 | ' |
Foreign | 953 | 409 |
Current Income Tax Expense (Benefit) | 1,336 | 516 |
Deferred: | ' | ' |
Federal | -1,450 | -3,160 |
State | -232 | -541 |
Foreign | -653 | ' |
Total benefit for income taxes | ($999) | ($3,185) |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Internal Revenue Service (IRS) [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Operating Loss Carryforwards | $7.50 |
Net operating loss carryforwards, expiration date | 31-Dec-22 |
Tax Credit Carryforward, Amount | 1.2 |
Research credit carryforwards , expiration date | 1-Jan-19 |
State and Local Jurisdiction [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Operating Loss Carryforwards | 6.5 |
Net operating loss carryforwards, expiration date | 31-Dec-16 |
Tax Credit Carryforward, Amount | $0.90 |
Concentrations_of_Certain_Risk1
Concentrations of Certain Risks (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 46.00% | 18.00% |
Sales [Member] | Customer Concentration Risk [Member] | Customer A [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 35.30% | ' |
Sales [Member] | Customer Concentration Risk [Member] | Customer B [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | ' | 10.00% |
Geographic_Segment_Information2
Geographic Segment Information (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | ' | ' |
Revenues | $76,070 | $46,611 |
Property and Equipment | ' | ' |
Property and Equipment, net | 13,258 | 7,708 |
North America [Member] | ' | ' |
Revenues | ' | ' |
Revenues | 42,815 | 27,299 |
Europe [Member] | ' | ' |
Revenues | ' | ' |
Revenues | 15,604 | 8,933 |
Asia [Member] | ' | ' |
Revenues | ' | ' |
Revenues | 17,651 | 10,379 |
United States [Member] | ' | ' |
Property and Equipment | ' | ' |
Property and Equipment, net | 40 | 43 |
Taiwan [Member] | ' | ' |
Property and Equipment | ' | ' |
Property and Equipment, net | 7,148 | 3,473 |
China [Member] | ' | ' |
Property and Equipment | ' | ' |
Property and Equipment, net | 6,070 | 4,192 |
Connectivity Products [Member] | ' | ' |
Revenues | ' | ' |
Revenues | 57,660 | 32,622 |
Optical Passive Products [Member] | ' | ' |
Revenues | ' | ' |
Revenues | $18,410 | $13,989 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Indemnification and Product Warranty: | ' | ' |
Accrued warranty reserves | $60,000 | $20,000 |
Operating Leases: | ' | ' |
Total rent expense | 700,000 | 700,000 |
2014 | 684,000 | ' |
2015 | 275,000 | ' |
2016 | 23,000 | ' |
2017 and after | 2,000 | ' |
Total | $984,000 | ' |
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 $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | ' | ' |
Ownership percentage | 17.38% | ' |
Hon Hai Precision Industry Co. Ltd. [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Net sales to related party | $10,000 | $60,000 |
Purchases of raw materials from related party | 1,500,000 | 1,000,000 |
Amounts due from related party | 10,000 | 0 |
Amounts due to related party | $300,000 | $300,000 |
Fair_Value_of_Financial_instru2
Fair Value of Financial instruments (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | $927 | $1,401 |
Total | 39,456 | 40,157 |
Short-Term Time Deposits [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 15,065 | 19,378 |
Corporate Bond Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 13,011 | 9,104 |
Long-Term Time Deposits [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 10,453 | 10,274 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 927 | 1,401 |
Total | 26,445 | 31,053 |
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 | 15,065 | 19,378 |
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 | 10,453 | 10,274 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | ' | ' |
Total | 13,011 | 9,104 |
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 | 13,011 | 9,104 |
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 | ' | ' |