Alliance Fiber Optic Products (AFOP) 10-Q 11 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 30, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Mar-15
Entity Registrant Name	ALLIANCE FIBER OPTIC PRODUCTS INC
Entity Central Index Key	1122342
Current Fiscal Year End Date	-19
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		17,727,713
Trading Symbol	AFOP

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$20,381	$22,723
Short-term investments	32,163	31,857
Accounts receivable, net	14,160	10,806
Inventories, net	10,266	9,305
Deferred tax asset	2,949	3,690
Prepaid expense and other current assets	2,465	2,077
Total current assets	82,384	80,458
Long-term investments	10,681	10,635
Property and equipment, net	14,319	13,868
Other assets	220	212
Total assets	107,604	105,173
Current liabilities:
Accounts payable	10,340	9,236
Accrued expenses	9,085	8,699
Total current liabilities	19,425	17,935
Other long-term liabilities	900	978
Total liabilities	20,325	18,913
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock, par value $0.001: 5,000,000 shares authorized: no shares issued and outstanding at March 31, 2015 and December 31, 2014.
Common stock, $0.001 par value: 100,000,000 shares authorized; 17,719,958 and 17,942,595 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively.	18	18
Additional paid-in-capital	108,651	111,622
Accumulated deficit	-23,259	-26,817
Accumulated other comprehensive income	1,869	1,437
Stockholders' equity	87,279	86,260
Total liabilities and stockholders' equity	$107,604	$105,173

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
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	17,719,958	17,942,595
Common stock, shares outstanding	17,719,958	17,942,595

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Income and Comprehensive Income (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Condensed Consolidated Statements of Income and Comprehensive Income [Abstract]
Revenues	$21,663	$24,882
Cost of revenues	12,871	14,968
Gross profit	8,792	9,914
Operating expenses:
Research and development	1,143	1,108
Selling, marketing and administrative	2,231	2,336
Total operating expenses	3,374	3,444
Income from operations	5,418	6,470
Interest and other income, net	196	147
Net income before tax	5,614	6,617
Provision for income taxes	-2,056	-1,602
Net income	3,558	5,015
Other comprehensive income:
Cumulative translation adjustments	436	-412
Unrealized loss on investments	-4	-6
Comprehensive income	$3,990	$4,597
Net income per share:
Basic	$0.20	$0.27
Diluted	$0.19	$0.26
Shares used in computing net income per share:
Basic	17,872	18,422
Diluted	18,296	19,070

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income	$3,558	$5,015
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	659	684
Amortization of stock-based compensation	496	717
Provision for inventory valuation	139	-31
Deferred taxes	1,168	658
Changes in assets and liabilities:
Accounts receivable	-3,354	-2,395
Inventories	-1,100	331
Prepaid expenses and other current assets	-388	-70
Other assets	-9	20
Accounts payable	1,104	104
Accrued expenses	386	515
Other long-term liabilities	-78	1
Net cash provided by operating activities	2,581	5,549
Cash flows from investing activities:
Purchase of short-term investments	-31,847	-10,631
Proceeds from sales and maturities of short-term investments	31,537	6,842
Purchase of long-term investments	-46	-45
Purchase of property and equipment	-1,015	-648
Net cash used in investing activities	-1,371	-4,482
Cash flows from financing activities:
Proceeds from the exercise of stock options	93	80
Repurchase of common stock	-3,986
Net cash (used in) provided by financing activities	-3,893	80
Effect of exchange rate changes on cash and cash equivalents	341	-259
Net (decrease) increase in cash and cash equivalents	-2,342	888
Cash and cash equivalents at beginning of period	22,723	18,603
Cash and cash equivalents at end of period	20,381	19,491
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$216	$203

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2015
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, 2014, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of and for the three months ended March 31, 2015 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, 2014. The unaudited condensed consolidated financial statements as of March 31, 2015, and for the three months ended March 31, 2015 and 2014, 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 three months ended March 31, 2015 as compared to those disclosed in the Company's Form 10-K for the fiscal year ended December 31, 2014.
	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 and Returns
	Allowances are provided for estimated returns and potential uncollectable trade receivables. Provisions for return allowances are recorded at the time revenue is recognized based on historical returns, current economic trends and changes in customer demand. Such allowances are adjusted periodically to reflect actual and anticipated experience. The Company also identifies specific accounts considered to have a high risk of uncollectibility and records an allowance for the full amount. Material differences may result in the amount and timing of revenue for any period than if management had made different judgments or utilized different estimates.
	Cash and Cash Equivalents
	The Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist primarily of money market accounts, corporate bonds and certificates of deposit.
	Short-Term and Long-Term Investments
	The Company generally invests its excess cash in certificates of deposit and 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 79.7% and 78.7% of the Company's revenues for the three months ended March 31, 2015 and 2014, respectively. The Company's optical passive products contributed 20.3% and 21.3% of the Company's revenues for the three months ended March 31, 2015 and 2014, respectively.
	In the three month ended March 31, 2015 and 2014, the Company's 10 largest customers comprised 77.9% and 72.6% of the Company's revenues, respectively. One Web 2.0 customer accounted for 45.1% and 40.6% of the Company's total revenues for the three months ended March 31, 2015 and 2014, respectively. The amount due from this customer was $5.6 million at March 31, 2015.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2015
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	2. Recent Accounting Pronouncements
	In January 2015, the Financial Accounting Standards Board (“FASB”) issued guidance which eliminates the concept of extraordinary items in an entity's income statement. The changes in ASU 2015-01 are effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements.
	In May 2014, 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.

Stockholders_Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2015
Stockholders' Equity [Abstract]
Stockholders' Equity	2. Stockholders' Equity
	Stock Repurchase Program. On October 29, 2014, the Company announced a program to repurchase up to $15.0 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. For the three months ended March, 31, 2015, an aggregate of 243,737 shares of common stock had been repurchased under the program. For the year ended December 31, 2014, an aggregate of 740,190 shares of common stock had been repurchased under the program. For the years ended December 31, 2013 and 2012, an aggregate of 158,798 and 976,332 shares of common stock, respectively, had been repurchased under the November 2011 program.

Stockbased_Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2015
Stock-based Compensation [Abstract]
Stock-based Compensation	4. Stock-based Compensation
	The Accounting Standards Codification (“ASC”) 718 requires companies to record compensation expense for stock options measured at fair value, on the date of grant, using an option-pricing model. The fair value of stock options granted and stock purchased pursuant to the Employee Stock Purchase Plan (“ESPP”) 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 have a ten year contractual term.
	The following information relates to stock option activity for the three months ended March 31, 2015:
								Weighted
					Weighted			Average
					Average			Remaining	Aggregate
					Exercise			Contractual	Intrinsic
	Options	Shares			Price			Life	Value
	Outstanding at December 31, 2014	693,100			$	9.08
	Granted	10,000				14.48
	Exercised	(21,100	)			4.4
	Forfeited	(2,000	)			3.91
	Outstanding at March 31, 2015	680,000			$	9.32		8.17 Years	$	5,506,558
	Vested and expected to vest at March 31, 2015	663,219			$	9.3		8.16 Years	$	5,387,025
	Exercisable at March 31, 2015	128,765			$	4.62		5.85 Years	$	1,647,886
	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 first quarter of fiscal 2015 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 March 31, 2015. This amount changes based on the fair market value of the Company's stock. The total intrinsic value of options exercised during the three months ended March 31, 2015 and 2014 was $0.3 million and $0.2 million, respectively.
	Cash received from option exercises during the three months ended March 31 was $0.1 million for each of 2015 and 2014. Such amounts are included within the financing activities section in the accompanying condensed consolidated statements of cash flows.
	Options to purchase 10,000 shares of common stock were granted during the three months ended March 31, 2015. At March 31, 2015, there was $2.8 million of unrecognized compensation cost related to stock options and RSUs, all of which is expected to be realized over three years.
	The following table summarizes employee stock-based compensation expense resulting from stock options, RSUs and the ESPP (in thousands):
			Three Months Ended March 31,
			2015				2014
	Included in cost of revenue		$	121			$	176
	Included in operating expenses:
	Research and development			46				83
	Selling, marketing and administrative			329				458
	Total			375				541
	Total stock-based compensation expense		$	496			$	717

Inventories_net

Inventories, net	3 Months Ended
	Mar. 31, 2015
Inventories, net [Abstract]
Inventories, net	5. Inventories, net (in thousands)
		March 31,		December 31,
		2015		2014
	Inventories:
	Finished goods	$	2,047	$	2,545
	Work-in-process		4,126		2,970
	Raw materials		4,093		3,790
		$	10,266	$	9,305

Net_Income_Per_Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2015
Net Income Per Share [Abstract]
Net Income Per Share	6. Net Income Per Share
	Basic net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income for the period by the combination of dilutive common share equivalents, comprised of shares issuable under the Company's stock-based compensation plans, and the weighted average number of shares of common stock outstanding during the period.
	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 March 31,
		2015		2014
	Numerator:
	Net income	$	3,558	$	5,015
	Denominator:
	Shares used in computing net income per share:
	Basic		17,872		18,422
	Diluted		18,296		19,070
	Net income per share:
	Basic	$	0.2	$	0.27
	Diluted	$	0.19	$	0.26

Comprehensive_Income

Comprehensive Income	3 Months Ended
	Mar. 31, 2015
Comprehensive Income [Abstract]
Comprehensive Income	7. Comprehensive Income
	Comprehensive income is defined as the change in equity of a company during a period resulting from transactions and other events and circumstances, excluding transactions resulting from investments by owners and distributions to owners. The difference between net income and comprehensive income for the Company is due to foreign exchange translations adjustments and unrealized loss on available-for-sale securities.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2015
Income Taxes [Abstract]
Income Taxes	8. Income Taxes
	The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
	The Company 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 36.6% and 24.2% for the three months ended March 31, 2015 and 2014, respectively. The Company's effective rate differs from its expected federal statutory rate primarily as a result of state taxes, foreign tax rate differences and permanent items.
	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 reduced its deferred tax assets by $0.7 million as of March 31, 2015 as a result of research credits utilized against current taxable income.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies
	Litigation:
	From time to time, the Company may be involved in litigation in the normal course of business. As of the date of these financial statements, the Company is not aware of any material legal proceedings pending or threatened against the Company.
	Indemnification and Product Warranty:
	The Company indemnifies certain customers, suppliers and subcontractors for attorney fees and damages and costs awarded against these parties in certain circumstances in which products are alleged to infringe third party intellectual property rights, including patents, trade secrets, trademarks or copyrights. In all cases, there are limits on and exceptions to the potential liability for indemnification relating to intellectual property infringement claims. The Company cannot estimate the amount of potential future payments, if any, that it might be required to make as a result of these agreements. As of March 31, 2015, 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 $0.09 million and $0.08 million for warranty reserves at March 31, 2015 and December 31, 2014.
	Operating Leases:
	The Company leases office space under long-term operating leases expiring at various dates through 2019.
	The Company's aggregate future minimum facility lease payments are as follows (in thousands):
	Years ending December 31:
	2015 (remaining nine months of the year)	$	722
	2016		698
	2017		450
	2018		445
	2019 and after		390
	Total	$	2,705

Related_Party_Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions	10. Related Party Transactions
	As of March 31, 2015, 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 18.06% 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.
	No sales to Hon Hai were made in either of the quarters ended March 31, 2015 and 2014. Purchases of raw materials from Hon Hai were $0.5 million and $0.4 million in the quarters ended March 31, 2015 or 2014. No amounts were due from Hon Hai at either of March 31, 2015 and December 31, 2014. Amounts due to Hon Hai were $0.5 million and $0.4 million at March 31, 2015 and December 31, 2014, respectively.

Fair_Value_of_Financial_instru

Fair Value of Financial instruments	3 Months Ended
	Mar. 31, 2015
Fair Value of Financial instruments [Abstract]
Fair Value of Financial instruments	11. 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 March 31, 2015 and December 31, 2014:
			Fair Value Measurements at
			Reporting Date Using
					Quoted Prices		Significant
					in Active		Other		Significant
			Balance at		Markets for		Observable		Unobservable
			March 31,		Identical Assets		Inputs		Inputs
			2015		(Level 1)		(Level 2)		(Level 3)
	Cash equivalents:
	Money market mutual funds		$	4,040	$	4,040	$	-	$	-
	Marketable Securities:
	Time deposits			22,030		22,030		-		-
	Corporate bonds			10,133		-		10,133		-
	Long-term investments:
	Time deposits			10,681		10,681		-		-
	Total		$	46,884	$	36,751	$	10,133	$	-
			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
			2014		(Level 1)		(Level 2)		(Level 3)
	Cash equivalents:
	Money market mutual funds		$	4,070	$	4,070	$	-	$	-
	Marketable Securities:
	Time deposits			21,782		21,782		-		-
	Corporate bonds			10,075		-		10,075		-
	Long-term investments:
	Time deposits			10,635		10,635		-		-
	Total		$	46,562	$	36,487	$	10,075	$	-
	As of March 31, 2015 and December 31, 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 consist of certificates of deposit with original maturities of 365 days or more from the date of purchase.

Geographic_Segment_Information

Geographic Segment Information	3 Months Ended
	Mar. 31, 2015
Geographic Segment Information [Abstract]
Geographic Segment Information	12. 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 March 31,
		2015		2014
	Revenues
	North America	$	15,535	$	15,881
	Europe		2,861		5,279
	Asia		3,267		3,722
		$	21,663	$	24,882
		Three Months Ended March 31,
			2015		2014
	Revenues
	Connectivity Products	$	17,263	$	19,581
	Optical Passive Products		4,400		5,301
		$	21,663	$	24,882
		March 31,		December 31,
		2015		2014
	Property and Equipment
	United States	$	219	$	185
	Taiwan		8,588		8,568
	China		5,512		5,115
		$	14,319	$	13,868

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation
	The accompanying condensed consolidated balance sheet as of December 31, 2014, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of and for the three months ended March 31, 2015 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, 2014. The unaudited condensed consolidated financial statements as of March 31, 2015, and for the three months ended March 31, 2015 and 2014, 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 three months ended March 31, 2015 as compared to those disclosed in the Company's Form 10-K for the fiscal year ended December 31, 2014.
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 and Returns	Allowance for Doubtful Accounts and Returns
	Allowances are provided for estimated returns and potential uncollectable trade receivables. Provisions for return allowances are recorded at the time revenue is recognized based on historical returns, current economic trends and changes in customer demand. Such allowances are adjusted periodically to reflect actual and anticipated experience. The Company also identifies specific accounts considered to have a high risk of uncollectibility and records an allowance for the full amount. Material differences may result in the amount and timing of revenue for any period than if management had made different judgments or utilized different estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents
	The Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist primarily of money market 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 and 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 79.7% and 78.7% of the Company's revenues for the three months ended March 31, 2015 and 2014, respectively. The Company's optical passive products contributed 20.3% and 21.3% of the Company's revenues for the three months ended March 31, 2015 and 2014, respectively.
	In the three month ended March 31, 2015 and 2014, the Company's 10 largest customers comprised 77.9% and 72.6% of the Company's revenues, respectively. One Web 2.0 customer accounted for 45.1% and 40.6% of the Company's total revenues for the three months ended March 31, 2015 and 2014, respectively. The amount due from this customer was $5.6 million at March 31, 2015.

Stockbased_Compensation_Tables

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2015
Stock-based Compensation [Abstract]
Schedule of Stock Options Activity								Weighted
					Weighted			Average
					Average			Remaining	Aggregate
					Exercise			Contractual	Intrinsic
	Options	Shares			Price			Life	Value
	Outstanding at December 31, 2014	693,100			$	9.08
	Granted	10,000				14.48
	Exercised	(21,100	)			4.4
	Forfeited	(2,000	)			3.91
	Outstanding at March 31, 2015	680,000			$	9.32		8.17 Years	$	5,506,558
	Vested and expected to vest at March 31, 2015	663,219			$	9.3		8.16 Years	$	5,387,025
	Exercisable at March 31, 2015	128,765			$	4.62		5.85 Years	$	1,647,886
Schedule of Employee Stock-Based Compensation Expense			Three Months Ended March 31,
			2015				2014
	Included in cost of revenue		$	121			$	176
	Included in operating expenses:
	Research and development			46				83
	Selling, marketing and administrative			329				458
	Total			375				541
	Total stock-based compensation expense		$	496			$	717

Inventories_net_Tables

Inventories, net (Tables)	3 Months Ended
	Mar. 31, 2015
Inventories, net [Abstract]
Schedule of Inventories		March 31,		December 31,
		2015		2014
	Inventories:
	Finished goods	$	2,047	$	2,545
	Work-in-process		4,126		2,970
	Raw materials		4,093		3,790
		$	10,266	$	9,305

Net_Income_Per_Share_Tables

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Net Income Per Share [Abstract]
Schedule of Computation of Basic and Diluted Net Income Per Share		Three Months Ended March 31,
		2015		2014
	Numerator:
	Net income	$	3,558	$	5,015
	Denominator:
	Shares used in computing net income per share:
	Basic		17,872		18,422
	Diluted		18,296		19,070
	Net income per share:
	Basic	$	0.2	$	0.27
	Diluted	$	0.19	$	0.26

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies [Abstract]
Schedule of Aggregate Future Minimum Facility Lease Payments	Years ending December 31:
	2015 (remaining nine months of the year)	$	722
	2016		698
	2017		450
	2018		445
	2019 and after		390
	Total	$	2,705

Fair_Value_of_Financial_instru1

Fair Value of Financial instruments (Tables)	3 Months Ended
	Mar. 31, 2015
Fair Value of Financial instruments [Abstract]
Schedule of Financial Assets at Fair Value		Fair Value Measurements at
		Reporting Date Using
				Quoted Prices		Significant
				in Active		Other		Significant
		Balance at		Markets for		Observable		Unobservable
		March 31,		Identical Assets		Inputs		Inputs
		2015		(Level 1)		(Level 2)		(Level 3)
	Cash equivalents:
	Money market mutual funds	$	4,040	$	4,040	$	-	$	-
	Marketable Securities:
	Time deposits		22,030		22,030		-		-
	Corporate bonds		10,133		-		10,133		-
	Long-term investments:
	Time deposits		10,681		10,681		-		-
	Total	$	46,884	$	36,751	$	10,133	$	-
		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
		2014		(Level 1)		(Level 2)		(Level 3)
	Cash equivalents:
	Money market mutual funds	$	4,070	$	4,070	$	-	$	-
	Marketable Securities:
	Time deposits		21,782		21,782		-		-
	Corporate bonds		10,075		-		10,075		-
	Long-term investments:
	Time deposits		10,635		10,635		-		-
	Total	$	46,562	$	36,487	$	10,075	$	-

Geographic_Segment_Information1

Geographic Segment Information (Tables)	3 Months Ended
	Mar. 31, 2015
Geographic Segment Information [Abstract]
Schedule of Segment Reporting Information		Three Months Ended March 31,
		2015		2014
	Revenues
	North America	$	15,535	$	15,881
	Europe		2,861		5,279
	Asia		3,267		3,722
		$	21,663	$	24,882
		Three Months Ended March 31,
			2015		2014
	Revenues
	Connectivity Products	$	17,263	$	19,581
	Optical Passive Products		4,400		5,301
		$	21,663	$	24,882
		March 31,		December 31,
		2015		2014
	Property and Equipment
	United States	$	219	$	185
	Taiwan		8,588		8,568
	China		5,512		5,115
		$	14,319	$	13,868

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Concentration Risk [Line Items]
Accounts receivable, net	14,160		$10,806
Customer A [Member]
Concentration Risk [Line Items]
Accounts receivable, net	5,600
Sales [Member] | Product Concentration Risk [Member] | Connectivity Products [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	79.70%	78.70%
Sales [Member] | Product Concentration Risk [Member] | Optical Passive Products [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	20.30%	21.30%
Sales [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	77.90%	72.60%
Sales [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	45.10%	40.60%

Stockholders_Equity_Details

Stockholders' Equity (Details) (USD $)	3 Months Ended	12 Months Ended
In Millions, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Class of Stock [Line Items]
Stock Repurchase Program, Authorized Amount (in dollars)	15
2014 October Program [Member]
Class of Stock [Line Items]
Shares repurchased during period	243,737	740,190
November 2011 Program [Member]
Class of Stock [Line Items]
Shares repurchased during period			158,798	976,332

Stockbased_Compensation_Schedu

Stock-based Compensation (Schedule of Stock Option Activity) (Details) (Employee Stock Option [Member], USD $)	3 Months Ended
	Mar. 31, 2015
Employee Stock Option [Member]
Shares
Outstanding, beginning balance	693,100
Granted	10,000
Exercised	-21,100
Forfeited	-2,000
Outstanding, ending balance	680,000
Vested and expected to vest, end of period	663,219
Exercisable, end of period	128,765
Weighted Average Exercise Price
Outstanding, beginning balance	$9.08
Granted	$14.48
Exercised	$4.40
Forfeited	$3.91
Outstanding, ending balance	$9.32
Vested and expected to vest, end of period	$9.30
Exercisable, end of period	$4.62
Weighted Average Remaining Contractual Life
Outstanding, ending balance	8 years 2 months 1 day
Vested and expected to vest, end of period	8 years 1 month 28 days
Exercisable, end of period	5 years 10 months 6 days
Aggregate Intrinsic Value
Outstanding, ending balance	$5,506,558
Vested and expected to vest, end of period	5,387,025
Exercisable, end of period	$1,647,886

Stockbased_Compensation_Narrat

Stock-based Compensation (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from the exercise of stock options	$93,000	$80,000
Compensation costs	496,000	717,000
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	200,000
Unrecognized compensation cost	$2,800,000
Unrecognized compensation cost, recognition period	3 years

Stockbased_Compensation_Schedu1

Stock-based Compensation (Schedule of Employee Stock-Based Compensation Expense) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$496	$717
Cost of Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	121	176
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	46	83
Sales, Marketing and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	329	458
Operating Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$375	$541

Inventories_net_Details

Inventories, net (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Inventories, net [Abstract]
Finished goods	$2,047	$2,545
Work-in-process	4,126	2,970
Raw materials	4,093	3,790
Inventory, Net	$10,266	$9,305

Net_Income_Per_Share_Details

Net Income Per Share (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Numerator:
Net income	$3,558	$5,015
Weighted average of common shares outstanding
Basic	17,872	18,422
Diluted	18,296	19,070
Net income per share:
Basic	$0.20	$0.27
Diluted	$0.19	$0.26

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Income Taxes [Abstract]
Effective tax rate	36.60%	24.20%
Net operating losses utilized against current taxable income	$0.70

Commitments_and_Contingencies_1

Commitments and Contingencies (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Indemnification and Product Warranty:
Accrued warranty reserves	$90,000	$80,000
Operating Leases:
2015 (remaining nine months of the year)	722,000
2016	698,000
2017	450,000
2018	445,000
2019 and after	390,000
Total	$2,705,000

Related_Party_Transactions_Det

Related Party Transactions (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Ownership percentage	18.06%
Hon Hai Precision Industry Co. Ltd. [Member]
Related Party Transaction [Line Items]
Purchases of raw materials from related party	$0.50	$0.40
Amounts due to related party	$0.50		$0.40

Fair_Value_of_Financial_instru2

Fair Value of Financial instruments (Details) (Fair Value, Measurements, Recurring [Member], USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$4,040	$4,070
Total	46,884	46,562
Short-Term Time Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	22,030	21,782
Corporate Bond Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	10,133	10,075
Long-Term Time Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	10,681	10,635
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	4,040	4,070
Total	36,751	36,487
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	22,030	21,782
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	10,681	10,635
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents
Total	10,133	10,075
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	10,133	10,075
Fair Value, Inputs, Level 2 [Member] | Long-Term Time Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents
Total
Fair Value, Inputs, Level 3 [Member] | Short-Term Time Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments
Fair Value, Inputs, Level 3 [Member] | Corporate Bond Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments
Fair Value, Inputs, Level 3 [Member] | Long-Term Time Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments

Geographic_Segment_Information2

Geographic Segment Information (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Revenues
Revenues	$21,663	$24,882
Property and Equipment
Property and Equipment, net	14,319		13,868
North America [Member]
Revenues
Revenues	15,535	15,881
Europe [Member]
Revenues
Revenues	2,861	5,279
Asia [Member]
Revenues
Revenues	3,267	3,722
United States [Member]
Property and Equipment
Property and Equipment, net	219		185
Taiwan [Member]
Property and Equipment
Property and Equipment, net	8,588		8,568
China [Member]
Property and Equipment
Property and Equipment, net	5,512		5,115
Connectivity Products [Member]
Revenues
Revenues	17,263	19,581
Optical Passive Products [Member]
Revenues
Revenues	$4,400	$5,301