Alliance Fiber Optic Products (AFOP) 10-Q 2 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 20, 2016
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Entity Registrant Name	ALLIANCE FIBER OPTIC PRODUCTS INC
Entity Central Index Key	1,122,342
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		15,803,585
Trading Symbol	AFOP

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 13,076	$ 6,157
Short-term investments	13,135	17,831
Accounts receivable, net	8,988	12,547
Inventories, net	11,905	10,919
Deferred tax asset, net	3,848	3,848
Prepaid expenses and other current assets	1,683	2,121
Total current assets	52,635	53,423
Long-term investments	10,868	10,821
Property and equipment, net	16,032	16,183
Other assets	208	206
Total assets	79,743	80,633
Current liabilities:
Accounts payable	7,214	6,059
Accrued expenses	7,149	9,510
Total current liabilities	14,363	15,569
Other long-term liabilities	2,079	2,194
Total liabilities	$ 16,442	$ 17,763
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, 2016 and December 31, 2015
Common stock, $0.001 par value: 100,000,000 shares authorized; 15,791,585 and 15,786,785 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	$ 16	$ 16
Additional paid-in-capital	77,358	76,462
Accumulated deficit	(14,315)	(13,779)
Accumulated other comprehensive income	242	171
Stockholders' equity	63,301	62,870
Total liabilities and stockholders' equity	$ 79,743	$ 80,633

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
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)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	15,791,585	15,786,785
Common stock, shares outstanding	15,791,585	15,786,785

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenues	$ 12,485	$ 21,663
Cost of revenues	8,783	12,871
Gross profit	3,702	8,792
Operating expenses:
Research and development	1,200	1,143
Selling, marketing and administrative	3,151	2,231
Total operating expenses	4,351	3,374
(Loss) income from operations	(649)	5,418
Interest and other income, net	102	196
(Loss) Income before income taxes	(547)	5,614
Benefit (Provision) for income taxes	11	(2,056)
Net (loss) income	(536)	3,558
Other comprehensive income:
Cumulative translation adjustments	70	436
Unrealized gain (loss) on investments	1	(4)
Comprehensive (loss) income	$ (465)	$ 3,990
Net (loss) income per share:
Basic	$ (0.03)	$ 0.20
Diluted	$ (0.03)	$ 0.19
Shares used in computing net (loss) income per share:
Basic	15,789	17,872
Diluted	15,789	18,296

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net (loss) income	$ (536)	$ 3,558
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	843	$ 659
Loss on disposal of property and equipment	3
Stock-based compensation	877	$ 496
Provision for (recovery of) inventory valuation	$ (46)	139
Deferred taxes		1,168
Changes in assets and liabilities:
Accounts receivable	$ 3,563	(3,354)
Inventories	(823)	(1,100)
Prepaid expenses and other current assets	579	(388)
Other assets	(5)	(9)
Accounts payable	1,071	1,104
Accrued expenses	(2,419)	386
Other long-term liabilities	(296)	(78)
Net cash provided by operating activities	2,811	2,581
Cash flows from investing activities:
Purchase of short-term investments	(9,360)	(31,847)
Proceeds from sales and maturities of short-term investments	14,121	31,537
Purchase of long-term investments	(47)	(46)
Purchase of property and equipment	(479)	(1,015)
Net cash provided by (used in) investing activities	4,235	(1,371)
Cash flows from financing activities:
Proceeds from the exercise of stock options	$ 19	93
Repurchase of common stock		(3,986)
Net cash provided by (used in) financing activities	$ 19	(3,893)
Effect of exchange rate changes on cash and cash equivalents	(146)	341
Net increase (decrease) in cash and cash equivalents	6,919	(2,342)
Cash and cash equivalents at beginning of period	6,157	22,723
Cash and cash equivalents at end of period	13,076	20,381
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$ 81	$ 216

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [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, 2015, 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, 2016 and 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, 2015. The unaudited condensed consolidated financial statements as of March 31, 2016, and for the three months ended March 31, 2016 and 2015, 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, 2016 as compared to those disclosed in the Company’s Form 10-K for the fiscal year ended December 31, 2015. 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 71.9% and 79.7% of the Company’s revenues for the three months ended March 31, 2016 and 2015, respectively. The Company’s optical passive products contributed 28.1% and 20.3% of the Company’s revenues for the three months ended March 31, 2016 and 2015, respectively. In the three month ended March 31, 2016 and 2015, the Company’s 10 largest customers comprised 62.2% and 77.9% of the Company’s revenues, respectively. One customer accounted for 10.7% and 45.1% of the Company’s revenues for the three months ended March 31, 2016 and 2015, respectively. The amount due from this customer was $0.7 million at March 31, 2016.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	2. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, "Leases (Topic 842)". The amendments under this pronouncement will change the way all leases with a duration of one year of more are treated. Under this guidance, lessees will be required to capitalize virtually all leases on the balance sheet as a right-of-use asset and an associated financing lease liability or capital lease liability. The right-of-use asset represents the lessee’s right to use, or control the use of, a specified asset for the specified lease term. The lease liability represents the lessee’s obligation to make lease payments arising from the lease, measured on a discounted basis. Based on certain characteristics, leases are classified as financing leases or operating leases. Financing lease liabilities, those that contain provisions similar to capitalized leases, are amortized like capital leases are under current accounting, as amortization expense and interest expense in the statement of operations. Operating lease liabilities are amortized on a straight-line basis over the life of the lease as lease expense in the statement of operations. This update is effective for annual reporting periods, and interim periods within those reporting periods, beginning after December 15, 2018. The Company is currently evaluating the impact this standard will have on its policies and procedures pertaining to its existing and future lease arrangements, disclosure requirements and on its consolidated financial statements. In July 2015, FASB issued new accounting guidance on simplifying the measurement of inventory which requires that inventory within the scope of the guidance be measured at the lower of cost and net realizable value. Prior to the issuance of the standard, inventory was measured at the lower of cost or market (where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin). The accounting guidance is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In January 2015, the 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 August 2014, 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 adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. 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.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity Note [Abstract]
Stockholders' Equity	3. Stockholders’ Equity Stock Repurchase Program.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [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 (the ”2000 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, over four years at a rate of 25 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 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, 2016: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Life Value Outstanding at December 31, 2015 571,600 $ 9.71 Granted - - Exercised (4,800 ) 3.88 Forfeited - - Outstanding at March 31, 2016 566,800 $ 9.76 7.51 Years $ 2,894,971 Vested and expected to vest at March 31, 2016 566,800 $ 9.76 7.51 Years $ 2,894,971 Exercisable at March 31, 2016 207,614 $ 7.25 6.31 Years $ 1,577,556 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 2016 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, 2016. 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, 2016 and 2015 was $0.01 million and $0.3 million, respectively. Cash received from option exercises was $0.02 million and $0.1 million during the three months ended March 31, 2016 and 2015, respectively. Such amounts are included within the financing activities section in the accompanying condensed consolidated statements of cash flows. No options were granted during the three months ended March 31, 2016. 60,000 RSUs were granted during the three months ended March 31, 2016, which RSUs vest as to one half of the shares on each of January 1, 2017 and 2018. At March 31, 2016, there was $6.2 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, 2016 2015 Included in cost of revenue $ 103 $ 121 Included in operating expenses: Research and development 67 46 Selling, marketing and administrative 707 329 Total 774 375 Total stock-based compensation expense $ 877 $ 496

Inventories, net

Inventories, net	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Inventories, net	5. Inventories, net March 31, December 31, 2016 2015 Inventories Finished goods $ 3,257 $ 3,438 Work-in-process 4,793 4,409 Raw materials 3,855 3,072 $ 11,905 $ 10,919 The inventory balances shown above are presented net of an allowance for excess and obsolete inventories of $1.4 million at each of March 31, 2016 and December 31, 2015.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2016
Net (loss) income per share:
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, 2016 2015 Numerator: Net (loss) income $ (536 ) $ 3,558 Denominator: Shares used in computing net (loss) income per share: Basic 15,789 17,872 Diluted 15,789 18,296 Net (loss) income per share: Basic $ (0.03 ) $ 0.20 Diluted $ (0.03 ) $ 0.19

Comprehensive Income

Comprehensive Income	3 Months Ended
	Mar. 31, 2016
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [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 (loss) income and comprehensive (loss) income for the Company is due to foreign exchange translations adjustments and unrealized gain (loss) on available-for-sale securities.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [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 recorded an income tax benefit in 2016 to reflect the net loss incurred during the three months ended March 31, 2016. 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.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [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. See Note 13 for information with respect to litigation after the date of the financial statements. 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, 2016, 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 $0.07 million for warranty reserves at March 31, 2016 and December 31, 2015. 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 as of March 31, 2016 were as follows (in thousands): Years ending December 31: 2016 (remaining nine months of the year) $ 820 2017 647 2018 419 2019 367 Total $ 2,253

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	10. Related Party Transactions As of March 31, 2016, and based on information filed with the Securities and Exchange Commission in March 2016, Foxconn Holding Limited (“Foxconn”) and Hon Hai Precision Industry Co. Ltd. (“Hon Hai”) held 13.74% 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 to Hon Hai were $0.001 million for the three months ended March 31, 2016. No sales to Hon Hai were made in the three months ended March 31, 2015. Purchases of raw materials from Hon Hai were $0.3 million and $0.5 million in the three months ended March 31, 2016 and 2015, respectively. The amount due from Hon Hai was $0.001 million as of March 31, 2016. No amount was due from Hon Hai as of December 31, 2015. Amounts due to Hon Hai were $0.4 million and $0.3 million at March 31, 2016 and December 31, 2015, respectively.

Fair Value of Financial instrum

Fair Value of Financial instruments	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [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, 2016 and December 31, 2015 (in thousands): 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 2016 (Level 1) (Level 2) (Level 3) Cash equivalents: Money market funds $ 115 $ 115 $ - $ - Marketable Securities: Time deposits 7,977 7,977 - - Corporate bonds 5,158 - 5,158 - Long-term investments: Time deposits 10,868 10,868 - - Total $ 24,118 $ 18,960 $ 5,158 $ - 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 2015 (Level 1) (Level 2) (Level 3) Cash equivalents: Money market funds $ 281 $ 281 $ - $ - Marketable Securities: Time deposits 12,825 12,825 - - Corporate bonds 5,006 - 5,006 - Long-term investments: Time deposits 10,821 10,821 - - Total $ 28,933 $ 23,927 $ 5,006 $ - As of March 31, 2016 and December 31, 2015, 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, 2016
Segment Reporting [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, 2016 2015 Revenues North America $ 5,386 $ 15,535 Europe 2,266 2,861 Asia 4,833 3,267 $ 12,485 $ 21,663 Three Months Ended March 31, 2016 2015 Revenues Connectivity Products $ 8,978 $ 17,263 Optical Passive Products 3,507 4,400 $ 12,485 $ 21,663 March 31, December 31, 2016 2015 Property and Equipment. Net United States $ 199 $ 191 Taiwan 8,891 9,016 China 6,942 6,976 $ 16,032 $ 16,183

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Event	13. Subsequent Events Merger Agreement On April 7, 2016, Corning Incorporated, (“Parent”) a New York corporation, Apricot Merger Company, a Delaware corporation and a wholly-owned subsidiary of Parent (“Merger Sub”), and the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the Merger Agreement, Parent caused Merger Sub to commence, on April 21, 2016, a tender offer (the “Offer”) to purchase all of the issued and outstanding shares of the Company’s common stock, $0.001 par value and the related rights to purchase shares of Series A Preferred Stock (the “Shares”), at a price of $18.50 per share (the “Offer Price”). Consummation of the Offer is subject to various conditions set forth in the Merger Agreement, including, but not limited to (i) at least a majority of Shares being tendered in the Offer and (ii) the satisfaction or waiver by Merger Sub of certain other customary conditions and requirements set forth in the Merger Agreement. The Offer expires at 12:00 midnight, New York City (end of day) time on Thursday, May 19, 2016 unless the Offer is extended in accordance with the terms of the Merger Agreement. Pursuant to the Merger Agreement, as of the effective time of the Merger (the “Effective Time”), Merger Sub will merge with and into the Company with the Company surviving as a wholly-owned subsidiary of Parent (the “Merger”). In the Merger, each Share that is not tendered and accepted pursuant to the Offer (other than the Shares held in treasury, Shares held directly or indirectly by Parent or its subsidiaries, and Shares as to which appraisal rights have been perfected in accordance with applicable law) will be cancelled and converted into the right to receive the Offer Price, on the terms and conditions set forth in the Merger Agreement. Pursuant to the terms of the Merger Agreement, at the Effective Time, each outstanding and unexercised option to purchase Shares to the extent vested as of the Effective Time (each, a ‘‘Vested Option’’) will be cancelled and converted into the right to a payment in cash of an amount equal to the product of (a) the total number of Shares subject to such Vested Option immediately prior to such cancellation and (b) the excess, if any, of the Offer Price over the exercise price per Share of such Vested Option immediately prior to such cancellation, less any applicable tax withholding. Any Vested Option with an exercise price per Share in excess of the Offer Price will be cancelled without any consideration due in exchange. Pursuant to the terms of the Merger Agreement, at the Effective Time, each RSU to the extent it is vested and outstanding as of the Effective Time (each, a ‘‘Vested RSU’’) will be cancelled and exchanged for the right to a payment in cash of an amount equal to the product of (a) the total number of Shares subject to such Vested RSU immediately prior to such cancellation and (b) the Offer Price, less any applicable tax withholding. Pursuant to the terms of the Merger Agreement, at the Effective Time, each outstanding and unexercised option to purchase Shares to the extent unvested as of the Effective Time (each, an ‘‘Unvested Option’’) will be assumed by Parent and converted into an option to purchase that number of shares of common stock of Parent as is determined by multiplying the number of Shares that were subject to such Unvested Option immediately prior to the Effective Time by the ‘‘conversion ratio’’ (as defined below), at a per Share exercise price as is determined by dividing the per Share exercise price of such Unvested Option as in effect immediately prior to the Effective Time by such conversion ratio and rounding the resulting exercise price up to the nearest whole cent. The resulting option to purchase shares of common stock of Parent will be subject to the same vesting terms and conditions as in effect immediately prior to the Effective Time. The ‘‘conversion ratio’’ means a fraction having a numerator equal to the Offer Price and a denominator equal to the average closing sales price of Parent’s common stock as reported on the New York Stock Exchange for the ten consecutive trading day period ending (and including) the second trading day prior to the Effective Time. Pursuant to the terms of the Merger Agreement, at the Effective Time, each RSU that is outstanding and unvested as of the Effective Time (each, an ‘‘Unvested RSU’’) will be assumed by Parent and converted into an award with the same vesting terms and conditions entitling the holder to a payment in cash of an amount equal to the product of (a) the total number of Shares subject to such Unvested RSU immediately prior to such conversion and (b) the Offer Price, less any applicable tax withholding. Litigation On April 22, 2016, a complaint captioned Stephen Bushansky v. Alliance Fiber Optic Products, Inc et al. On April 27, 2016, a complaint captioned Rudy Luck v. Alliance Fiber Optic Products, Inc. The outcome of this litigation cannot be predicted with certainty; however, the Company believes that the actions are without merit and intends to defend them vigorously. A reasonable estimate of the amount of any possible loss or range of loss, if any, cannot be made at this time and, as such, the Company has not recorded an accrual for any possible loss.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated balance sheet as of December 31, 2015, 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, 2016 and 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, 2015. The unaudited condensed consolidated financial statements as of March 31, 2016, and for the three months ended March 31, 2016 and 2015, 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, 2016 as compared to those disclosed in the Company’s Form 10-K for the fiscal year ended December 31, 2015.
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 71.9% and 79.7% of the Company’s revenues for the three months ended March 31, 2016 and 2015, respectively. The Company’s optical passive products contributed 28.1% and 20.3% of the Company’s revenues for the three months ended March 31, 2016 and 2015, respectively. In the three month ended March 31, 2016 and 2015, the Company’s 10 largest customers comprised 62.2% and 77.9% of the Company’s revenues, respectively. One customer accounted for 10.7% and 45.1% of the Company’s revenues for the three months ended March 31, 2016 and 2015, respectively. The amount due from this customer was $0.7 million at March 31, 2016.

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Options Activity	Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Life Value Outstanding at December 31, 2015 571,600 $ 9.71 Granted - - Exercised (4,800 ) 3.88 Forfeited - - Outstanding at March 31, 2016 566,800 $ 9.76 7.51 Years $ 2,894,971 Vested and expected to vest at March 31, 2016 566,800 $ 9.76 7.51 Years $ 2,894,971 Exercisable at March 31, 2016 207,614 $ 7.25 6.31 Years $ 1,577,556
Schedule of Employee Stock-Based Compensation Expense	Three Months Ended March 31, 2016 2015 Included in cost of revenue $ 103 $ 121 Included in operating expenses: Research and development 67 46 Selling, marketing and administrative 707 329 Total 774 375 Total stock-based compensation expense $ 877 $ 496

Inventories, net (Tables)

Inventories, net (Tables)	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventories	March 31, December 31, 2016 2015 Inventories Finished goods $ 3,257 $ 3,438 Work-in-process 4,793 4,409 Raw materials 3,855 3,072 $ 11,905 $ 10,919

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Net (loss) income per share:
Schedule of Computation of Basic and Diluted Net Income Per Share	Three Months Ended March 31, 2016 2015 Numerator: Net (loss) income $ (536 ) $ 3,558 Denominator: Shares used in computing net (loss) income per share: Basic 15,789 17,872 Diluted 15,789 18,296 Net (loss) income per share: Basic $ (0.03 ) $ 0.20 Diluted $ (0.03 ) $ 0.19

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Aggregate Future Minimum Facility Lease Payments	Years ending December 31: 2016 (remaining nine months of the year) $ 820 2017 647 2018 419 2019 367 Total $ 2,253

Fair Value of Financial instr24

Fair Value of Financial instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [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 2016 (Level 1) (Level 2) (Level 3) Cash equivalents: Money market funds $ 115 $ 115 $ - $ - Marketable Securities: Time deposits 7,977 7,977 - - Corporate bonds 5,158 - 5,158 - Long-term investments: Time deposits 10,868 10,868 - - Total $ 24,118 $ 18,960 $ 5,158 $ - 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 2015 (Level 1) (Level 2) (Level 3) Cash equivalents: Money market funds $ 281 $ 281 $ - $ - Marketable Securities: Time deposits 12,825 12,825 - - Corporate bonds 5,006 - 5,006 - Long-term investments: Time deposits 10,821 10,821 - - Total $ 28,933 $ 23,927 $ 5,006 $ -

Geographic Segment Information

Geographic Segment Information (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	Three Months Ended March 31, 2016 2015 Revenues North America $ 5,386 $ 15,535 Europe 2,266 2,861 Asia 4,833 3,267 $ 12,485 $ 21,663 Three Months Ended March 31, 2016 2015 Revenues Connectivity Products $ 8,978 $ 17,263 Optical Passive Products 3,507 4,400 $ 12,485 $ 21,663 March 31, December 31, 2016 2015 Property and Equipment. Net United States $ 199 $ 191 Taiwan 8,891 9,016 China 6,942 6,976 $ 16,032 $ 16,183

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Concentration Risk [Line Items]
Accounts receivable, net	$ 8,988		$ 12,547
Customer A [Member]
Concentration Risk [Line Items]
Accounts receivable, net	$ 700
Sales [Member] | Product Concentration Risk [Member] | Connectivity Products [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	71.90%	79.70%
Sales [Member] | Product Concentration Risk [Member] | Optical Passive Products [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	28.10%	20.30%
Sales [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	62.20%	77.90%
Sales [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	10.70%	45.10%

Stockholders' Equity (Details)

Stockholders' Equity (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)shares
Class of Stock [Line Items]
Shares repurchased during period | shares	2,196,632
November 2015 Program [Member]
Class of Stock [Line Items]
Stock Repurchase Program, Authorized Amount (in dollars) | $	$ 10,000
2015 August Program [Member]
Class of Stock [Line Items]
Stock Repurchase Program, Authorized Amount (in dollars) | $	$ 25,000
Number of shares repurchased | shares	0

Stock-based Compensation (Sched

Stock-based Compensation (Schedule of Stock Option Activity) (Details) - Employee Stock Option [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)$ / sharesshares
Shares
Outstanding, beginning balance | shares	571,600
Granted | shares
Exercised | shares	(4,800)
Forfeited | shares
Outstanding, ending balance | shares	566,800
Vested and expected to vest, end of period | shares	566,800
Exercisable, end of period | shares	207,614
Weighted Average Exercise Price
Outstanding, beginning balance | $ / shares	$ 9.71
Granted | $ / shares
Exercised | $ / shares	$ 3.88
Forfeited | $ / shares
Outstanding, ending balance | $ / shares	$ 9.76
Vested and expected to vest, end of period | $ / shares	9.76
Exercisable, end of period | $ / shares	$ 7.25
Weighted Average Remaining Contractual Life
Outstanding, ending balance	7 years 6 months 4 days
Vested and expected to vest, end of period	7 years 6 months 4 days
Exercisable, end of period	6 years 3 months 22 days
Aggregate Intrinsic Value
Outstanding, ending balance | $	$ 2,894,971
Vested and expected to vest, end of period | $	2,894,971
Exercisable, end of period | $	$ 1,577,556

Stock-based Compensation (Sch29

Stock-based Compensation (Schedule of Employee Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 877	$ 496
Cost of Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	103	121
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	67	46
Selling, Marketing and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	707	329
Operating Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 774	$ 375

Stock-based Compensation (Narra

Stock-based Compensation (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted	60,000
Cash received from option exercises	$ 20	$ 100
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%
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 One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Vesting rate	25.00%
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	$ 10	$ 300
Unrecognized compensation cost	$ 6,200
Unrecognized compensation cost, recognition period	3 years

Inventories, net (Details)

Inventories, net (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Finished goods	$ 3,257	$ 3,438
Work-in-process	4,793	4,409
Raw materials	3,855	3,072
Inventory, Net	11,905	10,919
Allowance for excess and obsolete inventories, net	$ 1,400	$ 1,400

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Numerator:
Net income	$ (536)	$ 3,558
Shares used in computing net (loss) income per share:
Basic	15,789	17,872
Diluted	15,789	18,296
Net (loss) income per share:
Basic	$ (0.03)	$ 0.20
Diluted	$ (0.03)	$ 0.19

Commitments and Contingencies33

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Indemnification and Product Warranty:
Accrued warranty reserves	$ 90	$ 70
Operating Leases:
2016 (remaining nine months of the year)	820
2,017	647
2,018	419
2,019	367
Total	$ 2,253

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Foxconn and Hon Hai [Member]
Related Party Transaction [Line Items]
Ownership percentage	13.74%
Hon Hai Precision Industry Co. Ltd. [Member]
Related Party Transaction [Line Items]
Purchases of raw materials from related party	$ 300	$ 500
Amounts due from related party	1
Amounts due to related party	$ 400		$ 300

Fair Value of Financial instr35

Fair Value of Financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 115	$ 281
Total	24,118	28,933
Short-Term Time Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	7,977	12,825
Corporate Bond Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 5,158	$ 5,006
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments
Corporate Bond Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments
Long-Term Time Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 10,868	$ 10,821
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	115	281
Total	18,960	23,927
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	7,977	12,825
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	$ 10,868	$ 10,821
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents
Total	$ 5,158	$ 5,006
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	$ 5,158	$ 5,006
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] | Long-Term Time Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments

Geographic Segment Informatio36

Geographic Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues
Revenues	$ 12,485	$ 21,663
North America [Member]
Revenues
Revenues	5,386	15,535
Europe [Member]
Revenues
Revenues	2,266	2,861
Asia [Member]
Revenues
Revenues	$ 4,833	$ 3,267

Geographic Segment Informatio37

Geographic Segment Information (Schedule of Segment Reporting Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues
Revenues	$ 12,485	$ 21,663
Connectivity Products [Member]
Revenues
Revenues	8,978	17,263
Optical Passive Products [Member]
Revenues
Revenues	$ 3,507	$ 4,400

Geographic Segment Informatio38

Geographic Segment Information (Schedule of Segment Reporting Property and Equipment) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property and Equipment
Property and Equipment, net	$ 16,032	$ 16,183
United States [Member]
Property and Equipment
Property and Equipment, net	199	191
Taiwan [Member]
Property and Equipment
Property and Equipment, net	8,891	9,016
China [Member]
Property and Equipment
Property and Equipment, net	$ 6,942	$ 6,976

Subsequent Event (Details)

Subsequent Event (Details) - $ / shares	Apr. 21, 2016	Mar. 31, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Purchase of common stock issued and outstanding, par value		$ 0.001	$ 0.001
Subsequent Event [Member] | Series A Preferred Stock [Member]
Subsequent Event [Line Items]
Right to repurchase of shares, par value	$ 18.50
Subsequent Event [Member] | Tender Offer [Member]
Subsequent Event [Line Items]
Purchase of common stock issued and outstanding, par value	$ 0.001