Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Entity Registrant Name | 'ALLIANCE FIBER OPTIC PRODUCTS INC | ' |
Entity Central Index Key | '0001122342 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 18,652,605 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $33,425 | $18,603 |
Short-term investments | 29,201 | 28,076 |
Accounts receivable, net | 10,654 | 11,566 |
Inventories, net | 8,905 | 10,630 |
Deferred tax asset | 3,411 | 6,036 |
Prepaid expense and other current assets | 1,604 | 1,745 |
Total current assets | 87,200 | 76,656 |
Long-term investments | 10,589 | 10,453 |
Property and equipment, net | 14,529 | 13,258 |
Other assets | 165 | 198 |
Total assets | 112,483 | 100,565 |
Current liabilities: | ' | ' |
Accounts payable | 9,345 | 11,657 |
Accrued expenses | 8,240 | 7,134 |
Total current liabilities | 17,585 | 18,791 |
Other long-term liabilities | 620 | 600 |
Total liabilities | 18,205 | 19,391 |
Commitments and contingencies (Note 8) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, par value $0.001: 5,000,000 shares authorized: no shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | ' | ' |
Common stock, $0.001 par value: 100,000,000 shares authorized; 18,649,105 and 18,408,261 shares issued and outstanding at September 30, 2014 and December 31, 2013. | 18 | 18 |
Additional paid-in-capital | 117,760 | 117,369 |
Accumulated deficit | -25,526 | -38,625 |
Accumulated other comprehensive income | 2,026 | 2,412 |
Stockholders' equity | 94,278 | 81,174 |
Total liabilities and stockholders' equity | $112,483 | $100,565 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 18,649,105 | 18,408,261 |
Common stock, shares outstanding | 18,649,105 | 18,408,261 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income and Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Consolidated Statements of Income and Comprehensive Income [Abstract] | ' | ' | ' | ' |
Revenues | $18,096 | $23,074 | $67,177 | $54,266 |
Cost of revenues | 10,957 | 14,218 | 40,429 | 33,722 |
Gross profit | 7,139 | 8,856 | 26,748 | 20,544 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 1,068 | 1,024 | 3,243 | 2,696 |
Selling, marketing and administrative | 1,924 | 2,174 | 6,321 | 5,978 |
Total operating expenses | 2,992 | 3,198 | 9,564 | 8,674 |
Income from operations | 4,147 | 5,658 | 17,184 | 11,870 |
Interest and other income, net | 226 | 173 | 559 | 469 |
Net income before income tax | 4,373 | 5,831 | 17,743 | 12,339 |
Income tax | -70 | -210 | -4,643 | -586 |
Net income | 4,303 | 5,621 | 13,100 | 11,753 |
Cumulative translation adjustments | -319 | 183 | -380 | -97 |
Unrealized (loss) gain on investments | -2 | 3 | -6 | 2 |
Comprehensive income | $3,982 | $5,807 | $12,714 | $11,658 |
Net income per share: | ' | ' | ' | ' |
Basic | $0.23 | $0.31 | $0.71 | $0.67 |
Diluted | $0.23 | $0.30 | $0.69 | $0.65 |
Shares used in computing net income per share: | ' | ' | ' | ' |
Basic | 18,629 | 18,056 | 18,529 | 17,584 |
Diluted | 19,103 | 18,754 | 19,036 | 18,107 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net Income | $13,100 | $11,753 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 2,140 | 1,513 |
Loss (Gain) on disposal of property and equipment | 3 | -5 |
Amortization of stock-based compensation | 1,683 | 1,254 |
Provision for inventory | -115 | -222 |
Deferred tax assets | 2,625 | ' |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 912 | -4,318 |
Inventories | 1,840 | -3,081 |
Prepaid expenses and other assets | 141 | -956 |
Other assets | 32 | 53 |
Accounts payable | -2,312 | 5,651 |
Accrued expenses | 1,106 | 1,923 |
Other long-term liabilities | 20 | -12 |
Net cash provided by operating activities | 21,175 | 13,553 |
Cash flows from investing activities: | ' | ' |
Purchase of short-term investments | -25,620 | -16,028 |
Proceeds from sales and maturities of short-term investments | 24,489 | 14,075 |
Purchase of long-term investments | -136 | -134 |
Purchase of property and equipment | -3,615 | -4,025 |
Net cash used in investing activities | -4,882 | -6,112 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock under ESPP | 340 | 235 |
Proceeds from the exercise of stock options | 580 | 5,131 |
Tax payments related to net share settlements of RSUs | -2,211 | -1,326 |
Repurchase of common stock | ' | -873 |
Net cash (used in) provided by financing activities | -1,291 | 3,167 |
Effect of exchange rate changes on cash and cash equivalents | -180 | -164 |
Net increase in cash and cash equivalents | 14,822 | 10,444 |
Cash and cash equivalents at beginning of period | 18,603 | 4,793 |
Cash and cash equivalents at end of period | 33,425 | 15,237 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for income tax | ($922) | ($340) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
1. Summary of Significant Accounting Policies | |
The Company | |
Alliance Fiber Optic Products, Inc. (the “Company”) was incorporated in California on December 12, 1995 and reincorporated in Delaware on October 19, 2000. The Company designs, manufactures and markets fiber optic components for communications equipment manufacturers. The Company's headquarters are located in Sunnyvale, California, and it has operations in Taiwan and China. | |
Basis of Presentation | |
The accompanying condensed consolidated balance sheet as of December 31, 2013, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of September 30, 2014 and for the three months and nine months ended September 30, 2014 and 2013 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and include the accounts of Alliance Fiber Optic Products, Inc. and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. | |
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. The unaudited condensed consolidated financial statements as of September 30, 2014, and for the three and nine months ended September 30, 2014 and 2013, reflect, in the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to state fairly the financial information set forth herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for any subsequent interim period or for an entire year. | |
There have been no significant changes in the Company's critical accounting policies during the nine months ended September 30, 2014 as compared to what was previously disclosed in the Company's Form 10-K for the fiscal year ended December 31, 2013. | |
Revenue Recognition | |
The Company recognizes revenue upon shipment of its products to customers, provided that it has received a purchase order, the price is fixed, collection of the resulting receivable is reasonably assured and transfer of title and risk of loss has occurred. Subsequent to the sale of products, the Company has no obligation to provide any modification or customization upgrades, enhancements or post contract customer support. | |
Allowance for Doubtful Accounts | |
Allowances are provided for estimated returns and potential uncollectable trade receivables. Provisions for return allowances are recorded at the time revenue is recognized based on historical returns, current economic trends and changes in customer demand. Such allowances are adjusted periodically to reflect actual and anticipated experience. The Company also identifies specific accounts considered to have a high risk of un-collectability and reserves the full amount. Material differences may result in the amount and timing of revenue for any period than if management had made different judgments or utilized different estimates. | |
Reclassifications | |
Certain prior year items have been reclassified to conform to current year presentation. | |
Cash and Cash Equivalents | |
The Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist primarily of market rate accounts, corporate bonds, and certificates of deposit. | |
Short-Term and Long-Term Investments | |
The Company generally invests its excess cash in certificates of deposit, corporate bonds. Such investments are made in accordance with the Company's investment policy, which establishes guidelines relative to diversification and maturities designed to maintain safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates. | |
Concentrations of Risk | |
Connectivity products contributed 77.1% and 76.2% of the Company's revenues for the three months ended September 30, 2014 and 2013, respectively. The Company's optical passive products contributed 22.9% and 23.8% of the Company's revenues for the three months ended September 30, 2014 and 2013, respectively. | |
Connectivity products contributed 74.6% and 75.5% of the Company's revenues for the nine months ended September 30, 2014 and 2013, respectively. Optical passive products contributed 25.4% and 24.5% of the Company's revenues for the nine months ended September 30, 2014 and 2013, respectively. | |
In the three months ended September 30, 2014 and 2013, the Company's 10 largest customers comprised 71.2% and 79.1% of the Company's revenues, respectively. For the three months ended September 30, 2014, one customer accounted for 35.5% of the Company's revenues. Amounts due from this customer was $2.7 million at September 30, 2014. For the three months ended September 30, 2013, two customers accounted for 40.1% and 11.2% of the Company's revenues, respectively. | |
In the nine months ended September 30, 2014 and 2013, the Company's 10 largest customers comprised 76.2% and 74.5% of the Company's revenues, respectively. For the nine months ended September 30, 2014, two customers accounted for 40.5% and 10.0% of the Company's revenues, respectively. For the nine months ended September 30, 2013, two customers accounted for 32.4% and 10.4% of the Company's revenues, respectively. | |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements and Accounting Changes | 9 Months Ended |
Sep. 30, 2014 | |
Recent Accounting Pronouncements and Accounting Changes [Abstract] | ' |
Recent Accounting Pronouncements and Accounting Changes | ' |
2. Recent Accounting Pronouncements and Accounting Changes | |
In August 2014, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard which requires management to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern for each annual and interim reporting period and to provide related footnote disclosures in certain circumstances. The accounting standard is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of this accounting standard. | |
In May 2014, the FASB issued a new financial accounting standard which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance. The accounting standard is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early adoption is not permitted. The Company is currently evaluating the impact of this accounting standard on its consolidated financial statements. | |
In July 2013, the 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 adoption of this guidance did not have a material impact on the Company's 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 adoption of this guidance did not have a material impact on the Company's 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. | |
Stockbased_Compensation
Stock-based Compensation | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Stock-based Compensation [Abstract] | ' | |||||||||||||||||
Stock-based Compensation | ' | |||||||||||||||||
3. Stock-based Compensation | ||||||||||||||||||
The Accounting Standards Codification (“ASC”) 718 requires companies to record compensation expense for stock options measured at fair value, on the date of grant, using an option-pricing model. The fair value of stock options granted and stock purchased pursuant to the Employee Stock Purchase Plan (“ESPP”) was determined using the Black-Scholes Model. | ||||||||||||||||||
Pursuant to the Company's 2000 Stock Incentive Plan, participants may be granted restricted stock units (“RSUs”), representing an unfunded, unsecured right to receive shares of the Company's 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 vesting term of each award. | ||||||||||||||||||
Options granted under the 2000 Stock Incentive Plan generally vest over four years. Options are exercisable for not more than ten years. | ||||||||||||||||||
The following information relates to stock option activity for the nine months ended September 30, 2014: | ||||||||||||||||||
Weighted | ||||||||||||||||||
Weighted | Average | |||||||||||||||||
Average | Remaining | Aggregate | ||||||||||||||||
Exercise | Contractual | Intrinsic | ||||||||||||||||
Options | Shares | Price | Life | Value | ||||||||||||||
Outstanding at December 31, 2013 | 565,640 | $ | 5.28 | |||||||||||||||
Granted | 274,400 | 12.5 | ||||||||||||||||
Exercised | (124,640 | ) | 4.65 | |||||||||||||||
Forfeited | (90,000 | ) | - | |||||||||||||||
Outstanding at September 30, 2014 | 625,400 | $ | 8.69 | 8.39 Years | $ | 2,359,538 | ||||||||||||
Vested and expected to vest at September 30, 2014 | 588,281 | $ | 8.63 | 8.35 Years | $ | 2,251,683 | ||||||||||||
Exercisable at September 30, 2014 | 118,661 | $ | 4.81 | 5.94 Years | $ | 903,966 | ||||||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company's closing stock price on the last trading day of the third quarter of fiscal 2014 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2014. This amount changes were based on the fair market value of the Company's stock. The total intrinsic value of options exercised was $0.3 million and $1.3 million for the three and nine months ended September 30, 2014, respectively. The total intrinsic value of options exercised was $9.5 million and $12.3 million for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||||
No options were granted during the three months ended September 30, 2014. Options to purchase 274,400 shares of common stock were granted during the nine months ended September 30, 2014. As of September 30, 2014, there was $3.6 million of unrecognized compensation cost related to share-based compensation arrangements granted under the Plan. The compensation cost is expected to be realized over four years. | ||||||||||||||||||
Cash received from option exercises during the nine months ended September 30, 2014 and 2013 were $0.6 million and $5.1 million, respectively, and are included within the financing activities section in the accompanying condensed consolidated statements of cash flows. | ||||||||||||||||||
During the nine months ended September 30, 2014, a total of 21,579 shares were issued under the Company's ESPP and cash received from purchases of common stock was $0.3 million. Compensation expense recorded in the quarter ended September 30, 2014 related to the ESPP was approximately $0.06 million. As of September 30, 2014, there was $0.02 million of unrecognized compensation cost related to the ESPP which is expected to be realized over the next month. | ||||||||||||||||||
The following table summarizes employee stock-based compensation expense resulting from stock options, RSUs, and the ESPP (in thousands): | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Included in cost of revenue | $ | 87 | $ | 116 | $ | 379 | $ | 215 | ||||||||||
Included in operating expenses: | ||||||||||||||||||
Research and development | 44 | 71 | 191 | 149 | ||||||||||||||
Selling, marketing and administrative | 305 | 376 | 1,113 | 890 | ||||||||||||||
Total | 349 | 447 | 1,304 | 1,039 | ||||||||||||||
Total stock-based compensation expense | $ | 436 | $ | 563 | $ | 1,683 | $ | 1,254 | ||||||||||
Inventories_net
Inventories, net | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Inventories, net [Abstract] | ' | ||||||||||
Inventories, net | ' | ||||||||||
4. Inventories, net (in thousands) | |||||||||||
September 30, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
Inventories: | |||||||||||
Finished goods | $ | 2,206 | $ | 2,455 | |||||||
Work-in-process | 2,929 | 4,134 | |||||||||
Raw materials | 3,770 | 4,041 | |||||||||
$ | 8,905 | $ | 10,630 | ||||||||
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Net Income Per Share [Abstract] | ' | |||||||||||||||||
Net Income Per Share | ' | |||||||||||||||||
5. Net Income Per Share | ||||||||||||||||||
Basic net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income for the period by the combination of dilutive common share equivalents, comprised of shares issuable under the Company's stock-based compensation plans, and the weighted-average number of shares of common stock outstanding during the period. There were no incremental dilutive common share equivalents in the periods presented. | ||||||||||||||||||
The following table sets forth the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share data): | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Numerator: | ||||||||||||||||||
Net income | $ | 4,303 | $ | 5,621 | $ | 13,100 | $ | 11,753 | ||||||||||
Denominator: | ||||||||||||||||||
Shares used in computing net income per share: | ||||||||||||||||||
Basic | 18,629 | 18,056 | 18,529 | 17,584 | ||||||||||||||
Diluted | 19,103 | 18,754 | 19,036 | 18,107 | ||||||||||||||
Net income per share: | ||||||||||||||||||
Basic | $ | 0.23 | $ | 0.31 | $ | 0.71 | $ | 0.67 | ||||||||||
Diluted | $ | 0.23 | $ | 0.3 | $ | 0.69 | $ | 0.65 | ||||||||||
Comprehensive_Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2014 | |
Comprehensive Income [Abstract] | ' |
Comprehensive Income | ' |
6. Comprehensive Income | |
Comprehensive income is defined as the change in equity of a company during a period resulting from transactions and other events and circumstances, excluding transactions resulting from investments by owners and distributions to owners. The difference between net income and comprehensive income for the Company is due to foreign exchange translations adjustments and unrealized gain on available-for-sale securities. | |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
7. Income Taxes | |
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | |
The Company 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's effective tax rate was 26.2% and 4.8% for the nine months ended September 30, 2014 and 2013, respectively. The Company's effective tax rate for the September 30, 2014 and 2013 period differs from its expected federal statutory rate primarily as a result of state taxes, foreign tax rate differences, permanent items and the change in valuation allowance. | |
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. | |
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. The Company increased its deferred tax asset by $0.2 million and reduced its deferred tax asset by $2.6 million for the three and nine months ended September 30, 2014, respectively, as a result of net operating losses utilized against current taxable income. | |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
8. Commitments and Contingencies | |||||
Litigation: | |||||
From time to time, the Company may be involved in litigation in the normal course of business. As of the date of these financial statements, the Company is not aware of any material legal proceedings pending or threatened against the Company. | |||||
Indemnification and Product Warranty: | |||||
The Company indemnifies certain customers, suppliers and subcontractors for attorney fees and damages and costs awarded against these parties in certain circumstances in which products are alleged to infringe third party intellectual property rights, including patents, trade secrets, trademarks or copyrights. In all cases, there are limits on and exceptions to the potential liability for indemnification relating to intellectual property infringement claims. The Company cannot estimate the amount of potential future payments, if any, that it might be required to make as a result of these agreements. As of September 30, 2014, 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 nonconformance 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 $0.09 million and $0.06 million for warranty reserves at each of September 30, 2014 and 2013, respectively. | |||||
Operating Leases: | |||||
The Company leases office space under long-term operating leases expiring at various dates through 2018. | |||||
The Company's aggregate future minimum facility lease payments are as follows (in thousands): | |||||
Years ending December 31: | |||||
2014 (remainning three months of the year) | $ | 140 | |||
2015 | 317 | ||||
2016 | 68 | ||||
2017 | 3 | ||||
2018 and after | 1 | ||||
Total | $ | 529 | |||
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
9. Related Party Transactions | |
As of September 30, 2014, 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 17.2% 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 were zero and $0.03 million for the nine months ended September 30, 2014. Purchases of raw materials from Hon Hai were $1.4 million for the nine months ended September 30, 2014. Amounts due from Hon Hai were $0.01 million for the nine months ended at September 30, 2014. Amounts due to Hon Hai were $0.4 million for the nine months ended at September 30, 2014. | |
There were no sales of products to Hon Hai in either of the nine months ended September 30, 2013. Purchases of raw materials from Hon Hai were $1.2 million for the nine months ended September 30, 2013. No amounts were due from Hon Hai at September 30, 2013. Amounts due to Hon Hai were $0.4 million at September 30, 2013. | |
Fair_Value_of_Financial_instru
Fair Value of Financial instruments | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Fair Value of Financial instruments [Abstract] | ' | ||||||||||||||||||
Fair Value of Financial instruments | ' | ||||||||||||||||||
10. 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 accordance with the U.S. GAAP Codification Topic 820, the following table represents the fair value hierarchy for the Company's financial assets (investments) measured at fair value on a recurring basis as of September 30, 2014: | |||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||
Reporting Date Using | |||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||
Balance at | Markets for | Observable | Unobservable | ||||||||||||||||
September 30, | Identical Assets | Inputs | Inputs | ||||||||||||||||
2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Cash equivalents: | |||||||||||||||||||
Money market mutual funds | $ | 3,931 | $ | 3,931 | $ | - | $ | - | |||||||||||
Marketable Securities: | |||||||||||||||||||
Time deposits | 19,046 | 19,046 | - | - | |||||||||||||||
Corporate bonds | 10,155 | - | 10,155 | - | |||||||||||||||
Long-term investments: | |||||||||||||||||||
Time deposits | 10,589 | 10,589 | - | - | |||||||||||||||
Total | $ | 43,721 | $ | 33,566 | $ | 10,155 | $ | - | |||||||||||
As of September 30, 2014, the Company held investments in corporate bonds, certificates of deposit, and money market securities. The Company's cash and cash equivalents consist of investments with original maturities of 90 days or less from the date of purchase. The Company's short-term investments consist of corporate bonds and certificates of deposit with original maturities of 91 days or more from the date of purchase. The Company's long-term investments comprise certificates of deposit with original maturities of 365 days or more from the date of purchase. | |||||||||||||||||||
Geographic_Segment_Information
Geographic Segment Information | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Geographic Segment Information [Abstract] | ' | |||||||||||||||||
Geographic Segment Information | ' | |||||||||||||||||
11. Geographic Segment Information | ||||||||||||||||||
The Company operates in a single industry segment. This industry segment is characterized by rapid technological change and significant competition. | ||||||||||||||||||
The following is a summary of the Company's revenues generated by geographic segments, revenues generated by product lines and identifiable assets located in these segments (in thousands): | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Revenues | ||||||||||||||||||
North America | $ | 11,594 | $ | 13,085 | $ | 40,202 | $ | 32,260 | ||||||||||
Europe | 2,596 | 4,379 | 14,754 | 10,519 | ||||||||||||||
Asia | 3,906 | 5,610 | 12,221 | 11,487 | ||||||||||||||
$ | 18,096 | $ | 23,074 | $ | 67,177 | $ | 54,266 | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Revenues | ||||||||||||||||||
Connectivity Products | $ | 13,943 | $ | 17,572 | $ | 50,143 | $ | 40,990 | ||||||||||
Optical Passive Products | 4,153 | 5,502 | 17,034 | 13,276 | ||||||||||||||
$ | 18,096 | $ | 23,074 | $ | 67,177 | $ | 54,266 | |||||||||||
September 30, | December 31, | |||||||||||||||||
2014 | 2013 | |||||||||||||||||
Property and Equipment | ||||||||||||||||||
United States | $ | 166 | $ | 40 | ||||||||||||||
Taiwan | 9,113 | 7,148 | ||||||||||||||||
China | 5,250 | 6,070 | ||||||||||||||||
$ | 14,529 | $ | 13,258 | |||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying condensed consolidated balance sheet as of December 31, 2013, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of September 30, 2014 and for the three months and nine months ended September 30, 2014 and 2013 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and include the accounts of Alliance Fiber Optic Products, Inc. and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. | |
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. The unaudited condensed consolidated financial statements as of September 30, 2014, and for the three and nine months ended September 30, 2014 and 2013, reflect, in the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to state fairly the financial information set forth herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for any subsequent interim period or for an entire year. | |
There have been no significant changes in the Company's critical accounting policies during the nine months ended September 30, 2014 as compared to what was previously disclosed in the Company's Form 10-K for the fiscal year ended December 31, 2013. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company recognizes revenue upon shipment of its products to customers, provided that it has received a purchase order, the price is fixed, collection of the resulting receivable is reasonably assured and transfer of title and risk of loss has occurred. Subsequent to the sale of products, the Company has no obligation to provide any modification or customization upgrades, enhancements or post contract customer support. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts | |
Allowances are provided for estimated returns and potential uncollectable trade receivables. Provisions for return allowances are recorded at the time revenue is recognized based on historical returns, current economic trends and changes in customer demand. Such allowances are adjusted periodically to reflect actual and anticipated experience. The Company also identifies specific accounts considered to have a high risk of un-collectability and reserves the full amount. Material differences may result in the amount and timing of revenue for any period than if management had made different judgments or utilized different estimates. | |
Reclassifications | ' |
Reclassifications | |
Certain prior year items have been reclassified to conform to current year presentation. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
The Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist primarily of market rate accounts, corporate bonds, and certificates of deposit. | |
Short-Term and Long-Term Investments | ' |
Short-Term and Long-Term Investments | |
The Company generally invests its excess cash in certificates of deposit, corporate bonds. Such investments are made in accordance with the Company's investment policy, which establishes guidelines relative to diversification and maturities designed to maintain safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates. | |
Concentrations of Risk | ' |
Concentrations of Risk | |
Connectivity products contributed 77.1% and 76.2% of the Company's revenues for the three months ended September 30, 2014 and 2013, respectively. The Company's optical passive products contributed 22.9% and 23.8% of the Company's revenues for the three months ended September 30, 2014 and 2013, respectively. | |
Connectivity products contributed 74.6% and 75.5% of the Company's revenues for the nine months ended September 30, 2014 and 2013, respectively. Optical passive products contributed 25.4% and 24.5% of the Company's revenues for the nine months ended September 30, 2014 and 2013, respectively. | |
In the three months ended September 30, 2014 and 2013, the Company's 10 largest customers comprised 71.2% and 79.1% of the Company's revenues, respectively. For the three months ended September 30, 2014, one customer accounted for 35.5% of the Company's revenues. Amounts due from this customer was $2.7 million at September 30, 2014. For the three months ended September 30, 2013, two customers accounted for 40.1% and 11.2% of the Company's revenues, respectively. | |
In the nine months ended September 30, 2014 and 2013, the Company's 10 largest customers comprised 76.2% and 74.5% of the Company's revenues, respectively. For the nine months ended September 30, 2014, two customers accounted for 40.5% and 10.0% of the Company's revenues, respectively. For the nine months ended September 30, 2013, two customers accounted for 32.4% and 10.4% of the Company's revenues, respectively. | |
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Stock-based Compensation [Abstract] | ' | |||||||||||||||||
Schedule of Stock Options Activity | ' | |||||||||||||||||
The following information relates to stock option activity for the nine months ended September 30, 2014: | ||||||||||||||||||
Weighted | ||||||||||||||||||
Weighted | Average | |||||||||||||||||
Average | Remaining | Aggregate | ||||||||||||||||
Exercise | Contractual | Intrinsic | ||||||||||||||||
Options | Shares | Price | Life | Value | ||||||||||||||
Outstanding at December 31, 2013 | 565,640 | $ | 5.28 | |||||||||||||||
Granted | 274,400 | 12.5 | ||||||||||||||||
Exercised | (124,640 | ) | 4.65 | |||||||||||||||
Forfeited | (90,000 | ) | - | |||||||||||||||
Outstanding at September 30, 2014 | 625,400 | $ | 8.69 | 8.39 Years | $ | 2,359,538 | ||||||||||||
Vested and expected to vest at September 30, 2014 | 588,281 | $ | 8.63 | 8.35 Years | $ | 2,251,683 | ||||||||||||
Exercisable at September 30, 2014 | 118,661 | $ | 4.81 | 5.94 Years | $ | 903,966 | ||||||||||||
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): | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Included in cost of revenue | $ | 87 | $ | 116 | $ | 379 | $ | 215 | ||||||||||
Included in operating expenses: | ||||||||||||||||||
Research and development | 44 | 71 | 191 | 149 | ||||||||||||||
Selling, marketing and administrative | 305 | 376 | 1,113 | 890 | ||||||||||||||
Total | 349 | 447 | 1,304 | 1,039 | ||||||||||||||
Total stock-based compensation expense | $ | 436 | $ | 563 | $ | 1,683 | $ | 1,254 | ||||||||||
Inventories_net_Tables
Inventories, net (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Inventories, net [Abstract] | ' | ||||||||||
Schedule of Inventories | ' | ||||||||||
September 30, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
Inventories: | |||||||||||
Finished goods | $ | 2,206 | $ | 2,455 | |||||||
Work-in-process | 2,929 | 4,134 | |||||||||
Raw materials | 3,770 | 4,041 | |||||||||
$ | 8,905 | $ | 10,630 | ||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
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 periods indicated (in thousands, except per share data): | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Numerator: | ||||||||||||||||||
Net income | $ | 4,303 | $ | 5,621 | $ | 13,100 | $ | 11,753 | ||||||||||
Denominator: | ||||||||||||||||||
Shares used in computing net income per share: | ||||||||||||||||||
Basic | 18,629 | 18,056 | 18,529 | 17,584 | ||||||||||||||
Diluted | 19,103 | 18,754 | 19,036 | 18,107 | ||||||||||||||
Net income per share: | ||||||||||||||||||
Basic | $ | 0.23 | $ | 0.31 | $ | 0.71 | $ | 0.67 | ||||||||||
Diluted | $ | 0.23 | $ | 0.3 | $ | 0.69 | $ | 0.65 | ||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Schedule of Aggregate Future Minimum Facility Lease Payments | ' | ||||
The Company's aggregate future minimum facility lease payments are as follows (in thousands): | |||||
Years ending December 31: | |||||
2014 (remainning three months of the year) | $ | 140 | |||
2015 | 317 | ||||
2016 | 68 | ||||
2017 | 3 | ||||
2018 and after | 1 | ||||
Total | $ | 529 | |||
Fair_Value_of_Financial_instru1
Fair Value of Financial instruments (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Fair Value of Financial instruments [Abstract] | ' | ||||||||||||||||||
Schedule of Financial Assets at Fair Value | ' | ||||||||||||||||||
In accordance with the U.S. GAAP Codification Topic 820, the following table represents the fair value hierarchy for the Company's financial assets (investments) measured at fair value on a recurring basis as of September 30, 2014: | |||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||
Reporting Date Using | |||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||
Balance at | Markets for | Observable | Unobservable | ||||||||||||||||
September 30, | Identical Assets | Inputs | Inputs | ||||||||||||||||
2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Cash equivalents: | |||||||||||||||||||
Money market mutual funds | $ | 3,931 | $ | 3,931 | $ | - | $ | - | |||||||||||
Marketable Securities: | |||||||||||||||||||
Time deposits | 19,046 | 19,046 | - | - | |||||||||||||||
Corporate bonds | 10,155 | - | 10,155 | - | |||||||||||||||
Long-term investments: | |||||||||||||||||||
Time deposits | 10,589 | 10,589 | - | - | |||||||||||||||
Total | $ | 43,721 | $ | 33,566 | $ | 10,155 | $ | - |
Geographic_Segment_Information1
Geographic Segment Information (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
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): | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Revenues | ||||||||||||||||||
North America | $ | 11,594 | $ | 13,085 | $ | 40,202 | $ | 32,260 | ||||||||||
Europe | 2,596 | 4,379 | 14,754 | 10,519 | ||||||||||||||
Asia | 3,906 | 5,610 | 12,221 | 11,487 | ||||||||||||||
$ | 18,096 | $ | 23,074 | $ | 67,177 | $ | 54,266 | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Revenues | ||||||||||||||||||
Connectivity Products | $ | 13,943 | $ | 17,572 | $ | 50,143 | $ | 40,990 | ||||||||||
Optical Passive Products | 4,153 | 5,502 | 17,034 | 13,276 | ||||||||||||||
$ | 18,096 | $ | 23,074 | $ | 67,177 | $ | 54,266 | |||||||||||
September 30, | December 31, | |||||||||||||||||
2014 | 2013 | |||||||||||||||||
Property and Equipment | ||||||||||||||||||
United States | $ | 166 | $ | 40 | ||||||||||||||
Taiwan | 9,113 | 7,148 | ||||||||||||||||
China | 5,250 | 6,070 | ||||||||||||||||
$ | 14,529 | $ | 13,258 | |||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Customer A [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | Sales [Member] | ||
Product Concentration Risk [Member] | Product Concentration Risk [Member] | Product Concentration Risk [Member] | Product Concentration Risk [Member] | Product Concentration Risk [Member] | Product Concentration Risk [Member] | Product Concentration Risk [Member] | Product Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | ||||
Connectivity Products [Member] | Connectivity Products [Member] | Connectivity Products [Member] | Connectivity Products [Member] | Optical Passive Products [Member] | Optical Passive Products [Member] | Optical Passive Products [Member] | Optical Passive Products [Member] | Customer A [Member] | Customer A [Member] | Customer A [Member] | Customer A [Member] | Customer B [Member] | Customer B [Member] | Customer B [Member] | ||||||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | ' | ' | 77.10% | 76.20% | 74.60% | 75.50% | 22.90% | 23.80% | 25.40% | 24.50% | 71.20% | 79.10% | 76.20% | 74.50% | 35.50% | 40.10% | 40.50% | 32.40% | 11.20% | 10.00% | 10.40% |
Accounts receivable, net | $10,654 | $11,566 | $2,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockbased_Compensation_Schedu
Stock-based Compensation (Schedule of Stock Option Activity) (Details) (Employee Stock Option [Member], USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Employee Stock Option [Member] | ' |
Shares | ' |
Outstanding, beginning balance | 565,640 |
Granted | 274,400 |
Exercised | -124,640 |
Forfeited | -90,000 |
Outstanding, ending balance | 625,400 |
Vested and expected to vest, end of period | 588,281 |
Exercisable, end of period | 118,661 |
Weighted Average Exercise Price | ' |
Outstanding, beginning balance | $5.28 |
Granted | $12.50 |
Exercised | $4.65 |
Forfeited | ' |
Outstanding, ending balance | $8.69 |
Vested and expected to vest, end of period | $8.63 |
Exercisable, end of period | $4.81 |
Weighted Average Remaining Contractual Life | ' |
Outstanding, ending balance | '8 years 4 months 20 days |
Vested and expected to vest, end of period | '8 years 4 months 6 days |
Exercisable, end of period | '5 years 11 months 8 days |
Aggregate Intrinsic Value | ' |
Outstanding, ending balance | $2,359,538 |
Vested and expected to vest, end of period | 2,251,683 |
Exercisable, end of period | $903,966 |
Stockbased_Compensation_Narrat
Stock-based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Proceeds from issuance of common stock under ESPP | ' | ' | $340,000 | $235,000 |
Compensation costs | 436,000 | 563,000 | 1,683,000 | 1,254,000 |
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche One [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period | ' | ' | '2 years | ' |
Vesting rate | ' | ' | 50.00% | ' |
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche Two [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period | ' | ' | '3 years | ' |
Vesting rate | ' | ' | 33.30% | ' |
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche Three [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period | ' | ' | '5 years | ' |
Vesting rate | ' | ' | 20.00% | ' |
Employee Stock Option [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period | ' | ' | '4 years | ' |
Plan duration | ' | ' | '10 years | ' |
Intrinsic value of options exercised | 300,000 | 9,500,000 | 1,300,000 | 12,300,000 |
Cash received from option exercises | ' | ' | 600,000 | 5,100,000 |
Unrecognized compensation cost | 3,600,000 | ' | 3,600,000 | ' |
Unrecognized compensation cost, recognition period | ' | ' | '4 years | ' |
Employee Stock Purchase Plan [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Shares were issued under ESPP | ' | ' | 21,579 | ' |
Proceeds from issuance of common stock under ESPP | ' | ' | 300,000 | ' |
Compensation costs | 60,000 | ' | ' | ' |
Unrecognized compensation cost | $20,000 | ' | $20,000 | ' |
Stockbased_Compensation_Schedu1
Stock-based Compensation (Schedule of Employee Stock-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $436 | $563 | $1,683 | $1,254 |
Cost of Revenue [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 87 | 116 | 379 | 215 |
Research and Development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 44 | 71 | 191 | 149 |
Sales, Marketing and Administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 305 | 376 | 1,113 | 890 |
Operating Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $349 | $447 | $1,304 | $1,039 |
Inventories_net_Details
Inventories, net (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories, net [Abstract] | ' | ' |
Finished goods | $2,206 | $2,455 |
Work-in-process | 2,929 | 4,134 |
Raw materials | 3,770 | 4,041 |
Inventory, Net | $8,905 | $10,630 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income | $4,303 | $5,621 | $13,100 | $11,753 |
Weighted average of common shares outstanding | ' | ' | ' | ' |
Basic | 18,629 | 18,056 | 18,529 | 17,584 |
Diluted | 19,103 | 18,754 | 19,036 | 18,107 |
Net income per share: | ' | ' | ' | ' |
Basic | $0.23 | $0.31 | $0.71 | $0.67 |
Diluted | $0.23 | $0.30 | $0.69 | $0.65 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Taxes [Abstract] | ' | ' | ' |
Effective tax rate | ' | 26.20% | 4.80% |
Net operating losses utilized against current taxable income | ($0.20) | $2.60 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
Indemnification and Product Warranty: | ' | ' |
Accrued warranty reserves | $90,000 | $60,000 |
Operating Leases: | ' | ' |
2014 (remaining three months of the year) | 140,000 | ' |
2015 | 317,000 | ' |
2016 | 68,000 | ' |
2017 | 3,000 | ' |
2018 and after | 1,000 | ' |
Total | $529,000 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Ownership percentage | 17.20% | ' |
Hon Hai Precision Industry Co. Ltd. [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Net sales to related party | $0.03 | ' |
Purchases of raw materials from related party | 1.4 | 1.2 |
Amounts due from related party | 0.01 | ' |
Amounts due to related party | $0.40 | $0.40 |
Fair_Value_of_Financial_instru2
Fair Value of Financial instruments (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Cash equivalents | $3,931 |
Total | 43,721 |
Short-Term Time Deposits [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | 19,046 |
Corporate Bond Securities [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | 10,155 |
Long-Term Time Deposits [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | 10,589 |
Fair Value, Inputs, Level 1 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Cash equivalents | 3,931 |
Total | 33,566 |
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 | 19,046 |
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 | 10,589 |
Fair Value, Inputs, Level 2 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Cash equivalents | ' |
Total | 10,155 |
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 | 10,155 |
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 | ' |
Fair Value, Inputs, Level 3 [Member] | Short-Term Time Deposits [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | ' |
Fair Value, Inputs, Level 3 [Member] | Corporate Bond Securities [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | ' |
Fair Value, Inputs, Level 3 [Member] | Long-Term Time Deposits [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Investments | ' |
Geographic_Segment_Information2
Geographic Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Revenues | ' | ' | ' | ' | ' |
Revenues | $18,096 | $23,074 | $67,177 | $54,266 | ' |
Property and Equipment | ' | ' | ' | ' | ' |
Property and Equipment, net | 14,529 | ' | 14,529 | ' | 13,258 |
North America [Member] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Revenues | 11,594 | 13,085 | 40,202 | 32,260 | ' |
Europe [Member] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Revenues | 2,596 | 4,379 | 14,754 | 10,519 | ' |
Asia [Member] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Revenues | 3,906 | 5,610 | 12,221 | 11,487 | ' |
United States [Member] | ' | ' | ' | ' | ' |
Property and Equipment | ' | ' | ' | ' | ' |
Property and Equipment, net | 166 | ' | 166 | ' | 40 |
Taiwan [Member] | ' | ' | ' | ' | ' |
Property and Equipment | ' | ' | ' | ' | ' |
Property and Equipment, net | 9,113 | ' | 9,113 | ' | 7,148 |
China [Member] | ' | ' | ' | ' | ' |
Property and Equipment | ' | ' | ' | ' | ' |
Property and Equipment, net | 5,250 | ' | 5,250 | ' | 6,070 |
Connectivity Products [Member] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Revenues | 13,943 | 17,572 | 50,143 | 40,990 | ' |
Optical Passive Products [Member] | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' |
Revenues | $4,153 | $5,502 | $17,034 | $13,276 | ' |