Applied Optoelectronics (AAOI) 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 07, 2013
Document And Entity Information	'	'
Entity Registrant Name	'Applied Optoelectronics, Inc.	'
Entity Central Index Key	'0001158114	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Non-accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	12,629,095
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current Assets	'	'
Cash and cash equivalents	$7,325	$10,723
Restricted cash	1,031	503
Accounts receivable - trade, net	17,043	13,525
Bank acceptance receivable	0	1,034
Inventories	16,421	12,493
Prepaid expenses and other current assets	3,765	968
Total current assets	45,585	39,246
Property, plant and equipment, net	27,125	24,838
Land use rights, net	957	674
Intangible assets, net	828	795
Other assets, net	1,439	195
TOTAL ASSETS	75,934	65,748
Current liabilities	'	'
Current portion of notes payable and long-term debt	12,095	13,900
Accounts payable	11,282	6,913
Bank acceptance payable	3,040	1,521
Accrued liabilities	3,557	3,243
Total current liabilities	29,974	25,577
Notes payable and long-term debt, less current portion	14,618	9,163
TOTAL LIABILITIES	44,592	34,740
Stockholders' equity (deficit):	'	'
Redeemable Convertible Preferred Stock and Convertible Preferred Stock; 172,200 shares authorized; 5,547 shares issued and outstanding at December 31, 2012, no par value; 5,600 shares issued and outstanding at September 30, 2013, $0.001 par value	105,801	105,367
Common Stock; 300,000 shares authorized; 266 shares issued and outstanding at December 31, 2012, no par value; 290 shares issued and outstanding at September 30, 2013, $0.001 par value	1,222	1,074
Additional paid-in capital	4,801	4,468
Accumulated other comprehensive gain	2,320	2,016
Accumulated deficit	-82,802	-81,917
TOTAL STOCKHOLDERS' EQUITY	31,342	31,008
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$75,934	$65,748

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]	'	'
Convertible Preferred Stock par value	$0.00	$0
Convertible Preferred Stock shares authorized	172,200,000	172,200,000
Convertible Preferred Stock shares issued	5,600,000	5,547,000
Convertible Preferred Stock shares outstanding	5,600,000	5,547,000
Common stock par value	$0.00	$0
Common stock shares authorized	300,000,000	300,000,000
Common stock shares issued	290,000	266,000
Common stock shares outstanding	290,000	266,000

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]	'	'	'	'
Revenue, net	$20,766	$16,416	$54,680	$44,559
Cost of goods sold	14,445	11,743	38,327	31,074
Gross profit	6,321	4,673	16,353	13,485
Operating expenses	'	'	'	'
Research and development	2,211	2,095	6,112	5,379
Sales and marketing	1,034	756	2,994	2,369
General and administrative	2,436	1,978	7,257	5,890
Total operating expenses	5,681	4,829	16,363	13,638
Income (loss) from operations	640	-156	-10	-153
Other income (expense)	'	'	'	'
Interest expense	-323	-350	-925	-1,067
Other income (expense), net	73	125	50	223
Total other expense	-250	-225	-875	-844
Income (loss) before income taxes	390	-381	-885	-997
Income taxes	0	0	0	0
Net income (loss)	$390	($381)	($885)	($997)
Net income (loss) per share - basic	$0.04	($1.43)	($3.24)	($3.76)
Net income (loss) per share - diluted	$0.04	($1.43)	($3.24)	($3.76)
Weighted average shares used to compute net income (loss) per share - basic	8,995,000	266,000	273,000	265,000
Weighted average shares used to compute net income (loss) per share - diluted	9,155,000	266,000	273,000	265,000
Pro forma net income (loss) per share - basic	$0.04	'	($0.10)	'
Pro forma net income (loss) per share - diluted	$0.04	'	($0.10)	'
Pro forma weighted average shares used to compute net income (loss) per share - basic	9,034,000	'	9,004,000	'
Pro forma weighted average shares used to compute net income (loss) per share - diluted	9,194,000	'	9,004,000	'

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statement of Comprehensive Income [Abstract]	'	'	'	'
Net income (loss)	$390	($381)	($885)	($997)
Foreign currency translation adjustment, net of tax	66	-49	304	-60
Comprehensive income (loss)	$456	($430)	($581)	($1,057)

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Operating activities:	'	'
Net loss	($885)	($997)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Provision for obsolete inventory	550	556
Depreciation and amortization	2,436	2,213
Gain (loss) on disposal of assets	0	36
Stock-based compensation and warrant expense	375	51
Changes in operating assets and liabilities:	'	'
Accounts receivable	-3,446	438
Bank acceptance receivable	1,036	-174
Inventory	-4,389	-1,588
Other current assets	-2,886	-933
Accounts payable	4,350	-687
Accrued liabilities	405	278
Net cash used in operating activities	-2,454	-807
Investing activities:	'	'
Purchase of property, plant and equipment	-4,697	-2,711
Proceeds from disposal of equipment	0	138
Deposits and deferred charges	-37	-41
Purchase of intangible assets	-83	-159
Net cash used in investing activities	-4,817	-2,773
Financing activities:	'	'
Proceeds from issuance of notes payable and long-term debt	2,851	845
Principal payments of long-term debt and notes payable	-192	-427
Proceeds from line of credit borrowings	16,159	4,466
Repayments of line of credit borrowings	-15,406	-2,106
Proceeds from bank acceptance payable	4,746	8,412
Repayments of bank acceptance payable	-3,282	-8,885
Repayments of shareholder loans	0	-150
(Increase) decrease in restricted cash	-511	-193
Exercise of stock options	87	6
Exercise of warrants	494	0
Deferred offering costs	-1,251	0
Issuance of preferred stock, net	0	10,234
Net cash provided by financing activities	3,695	12,202
Effect of exchange rate changes on cash	178	-59
Net increase (decrease) in cash	-3,398	8,563
Cash and cash equivalents at beginning of year	10,723	1,768
Cash and cash equivalents at end of year	7,325	10,331
Cash paid for:	'	'
Interest	959	1,122
Income taxes	2	0
Conversion of shareholders' loan to preferred stock	$0	$760

1_Description_of_Business

1. Description of Business	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
1. Description of Business	'
	Business Overview
	Applied Optoelectronics, Inc., or AOI, was originally incorporated in Texas in February of 1997 and then converted to a Delaware corporation in March of 2013. AOI together with its wholly-owned subsidiaries are collectively referred to as the Company. The Company is a leading, vertically integrated provider of fiber-optic networking products, primarily for three networking end-markets: cable television, fiber-to-the-home and internet data centers. The Company designs and manufactures a wide range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment.
	The Company has manufacturing and research and development facilities in all three of its U.S., Taiwan and China locations. At its corporate headquarters and manufacturing facilities in Sugar Land, Texas, the Company primarily manufactures lasers and laser components and performs research and development activities for the laser component products. The Company operates a division in Taipei, Taiwan that primarily manufactures transceivers and performs research and development activities for the transceiver products. The Company operates in Ningbo, China through its wholly-owned subsidiary Prime World International Holdings, Ltd. (incorporated in the British Virgin Islands), the sole parent of Global Technology, Inc. (incorporated in the People’s Republic of China). Through Global Technology, the Company primarily manufactures Cable TV Broadband (“CATV”) systems and equipment and performs research and development activities for the CATV products.
	Interim Financial Statements
	The condensed consolidated financial statements of the Company, as of September 30, 2013 and December 31, 2012 and for the three and nine months ended September 30, 2013 and 2012, have been prepared in accordance with the instructions on Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In accordance with those rules and regulations, the Company has omitted certain information and notes normally provided in the Company’s annual consolidated financial statements. In the opinion of management, the condensed consolidated financial statements contain all adjustments, except as otherwise noted, necessary for the fair presentation of the Company’s financial position and results of operations for the periods presented. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“GAAP”). These condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Registration Statement on Form S-1 that was effective on September 25, 2013 as filed with the SEC (the “Registration Statement”). The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results expected for the entire fiscal year. All significant intercompany accounts and transactions have been eliminated.
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates in the consolidated financial statements and accompanying notes. Significant estimates and assumptions that impact these financial statements and the accompanying notes relate to, among other things, allowance for doubtful accounts, valuation allowances for deferred tax assets, inventory reserve, stock-based compensation expense, estimated useful lives of property and equipment, and taxes.

2_Significant_Accounting_Polic

2. Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
2. Significant Accounting Policies	'
	There have been no changes in the Company’s significant accounting policies for the three months ended September 30, 2013, as compared to the significant accounting policies described in its Registration Statement.
	Recent accounting pronouncements
	There have been no recent accounting pronouncements for the three months ended September 30, 2013, as compared to the recent accounting pronouncements described in its Registration Statement.

3_Fair_Value_of_Financial_Inst

3. Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
3. Fair Value of Financial Instruments	'
	The following table presents a summary of the Company’s financial instruments measured at fair value on a recurring basis for the periods indicated (in thousands):
		As of September 30, 2013								As of December 31, 2012
		(Level 1)		(Level 2)		(Level 3)		Total		(Level 1)		(Level 2)		(Level 3)		Total
	Assets:
	Cash and cash equivalents	$	7,325	$	–	$	–	$	7,325	$	10,723	$	–	$	–	$	10,723
	Restricted cash		1,031		–		–		1,031		503		–		–		503
	Bank acceptance receivable		–		–		–		–		–		1,034		–		1,034
	Total assets	$	8,356	$	–	$	–	$	8,356	$	11,226	$	1,034	$	–	$	12,260
	Liabilities:
	Interest rate swap	$	–	$	–	$	–	$	–	$	–	$	11	$	–	$	11
	Bank acceptance payable				3,040				3,040				1,521				1,521
	Total liabilities	$	–	$	3,040	$	–	$	3,040	$	–	$	1,532	$	–	$	1,532
	The carrying value amounts of accounts receivable, prepaid expenses and other current assets, borrowings from our credit facility, accounts payable, accrued expenses and other current liabilities approximate fair value because of the short-term maturity of these instruments.

4_Earnings_Per_Share

4. Earnings Per Share	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
4. Earnings Per Share	'
	Basic net income (loss) per share has been computed using the weighted-average number of shares of common stock outstanding during the period. The Company’s preferred shares that were outstanding prior to the completion of the Company’s initial public offering had the right to participate in the Company’s earnings and dividends; however, since there is not a contractual obligation for the preferred shareholders to share in losses, the preferred shares should not be included in loss periods, as their effect is anti-dilutive. Therefore, for those periods presented below that ended with a net loss, the Company has presented both basic and diluted loss per share excluding those preferred shares. For periods with net income, shares used in computing basic and diluted earnings per share include common shares assuming conversion of the preferred stock.
	Diluted net income (loss) per share has been computed using the weighted-average number of shares of common stock and dilutive potential common shares from options and warrants outstanding during the period. In periods with net losses, normally dilutive shares become anti-dilutive, and therefore for those periods basic and dilutive earnings per share are the same.
	The following table sets forth the computation of the basic and diluted net loss per share for the periods indicated (in thousands, except per share amounts):
		Three months ended September 30,					Nine months ended September 30,
		2013		2012			2013			2012
	Numerator:
	Net income (loss)	$	390	$	(381	)	$	(885	)	$	(997	)
	Denominator:
	Weighted average shares used to
	compute net income (loss) per share
	Basic		8,995		266			273			265
	Effective of dilutive options and warrants		160		–			–			–
	Diluted		9,155		266			273			265
	Net income (loss) per share
	Basic	$	0.04	$	(1.43	)	$	(3.24	)	$	(3.76	)
	Diluted	$	0.04	$	(1.43	)	$	(3.24	)	$	(3.76	)
	Pro Forma earnings per share (unaudited)
	The Company’s registration statement on Form S-1 was declared effective on September 25, 2013 by the SEC and the Company’s common stock began trading on the NASDAQ Global Market (“NASDAQ”), on September 26, 2013. On October 1, 2013, the Company completed and closed its initial public offering (the “Offering”), selling 3,600,000 shares of common stock, at a price of $10.00 per share, providing $33.5 million in net proceeds after underwriting discounts and commissions. Accordingly, events that were to be triggered on completion of an Offering did not occur until October 1st, post-period. Because the Offering priced within the third quarter but closed post-period, the Company has presented Pro Forma share and earnings per share information, for comparative purposes only. This pro forma presentation presumes that there was a qualified Offering that was completed on the first day of trading on September 26, 2013. The following unaudited calculation of the numerator and denominator of basic and diluted earnings per share, or EPS gives effect to the automatic conversion of all outstanding shares of the Company’s convertible preferred stock (using the as if-converted method) into common stock as though the conversion had occurred as of the beginning of the period or the original date of issuance, if later, together with the IPO shares that would have been issued using the weighted average shares outstanding (in thousands, except per share amounts):
		Three months ended September 30,					Nine months ended September 30,
		2013		2012			2013			2012
	Numerator:
	Net income (loss)	$	390	$	(381	)	$	(885	)	$	(997	)
	Denominator:
	Number of shares used to compute net income (loss) per share
	Basic		8,995					8,965
	Effective of dilutive options and warrants		160					–
	Diluted		9,155					8,965
	Assumed issuance of shares in IPO to new investors		39					39
	Number of shares used to compute pro forma net income (loss) per share
	Basic		9,034					9,004
	Effective of dilutive options and warrants		160					–
	Diluted		9,194					9,004
	Pro forma net income (loss) per share
	Basic	$	0.04				$	(0.10	)
	Diluted	$	0.04				$	(0.10	)
	The following potentially dilutive securities were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive (in thousands):
		Three months ended September 30,					Nine months ended September 30,
		2013		2012			2013			2012
	Employee stock options		1,347		412			1,484			412
	Preferred stock warrants		10		89			33			89
			1,357		501			1,517			501

5_Inventory

5. Inventory	9 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
5. Inventory	'
	Inventories consist of the following for the periods indicated (in thousands):
		30-Sep-13		31-Dec-12
	Raw materials	$	6,710	$	4,755
	Work in process		6,539		4,434
	Finished goods		3,172		3,304
		$	16,421	$	12,493
	The lower of cost or market adjustment expensed for inventory for the three and nine months ended September 30, 2013 was $0.1 million and $0.5 million, respectively. For the three and nine months ended September 30, 2012, the lower of cost or market adjustment expensed for inventory was $0.1 million and $0.3 million, respectively.

6_Property_Plant_and_Equipment

6. Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2013
Property, Plant and Equipment [Abstract]	'
6. Property, Plant and Equipment	'
	Property, plant and equipment consisted of the following for the periods indicated (in thousands):
		30-Sep-13			31-Dec-12
	Land improvements	$	96		$	93
	Building and improvements		15,560			15,239
	Machinery and equipment		33,690			29,977
	Furniture and fixtures		853			739
	Computer equipment and software		3,183			2,851
	Transportation equipment		188			173
			53,570			49,072
	Less accumulated depreciation and amortization		(27,178	)		(24,967	)
			26,392			24,105
	Land		733			733
	Property, plant and equipment, net	$	27,125		$	24,838
	For the three and nine months ended September 30, 2013, depreciation expense of property, plant and equipment was $0.9 million and $2.4 million, respectively.

7_Notes_Payable_and_LongTerm_D

7. Notes Payable and Long-Term Debt	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
7. Notes Payable and Long-Term Debt	'
	Notes payable and long-term debt consisted of the following for the periods indicated (in thousands):
		30-Sep-13		31-Dec-12
	Long-Term and Short-Term Debt
	Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 1.125% (floor rate: 4.375%), maturing May 3, 2014	$	67	$	141
	Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 0.75% (floor rate: 4%) or swap contract (fixed 5%), maturing November 15, 2014		3,103		3,181
	Revolving line of credit with a U.S. bank up to $10,500 with interest at prime plus 1.0% (floor rate: 4.25%), maturing November 15, 2014		9,360		8,637
	Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 1.25% (floor rate: 4.50%), maturing September 10, 2017		1,850		–
	Revolving line of credit with a China bank up to $12,074 with interest at 110% of China Prime rate which ranged from 4.10% to 6.60% in 2013 with various maturity dates from October 2013 to August 2014		11,089		10,668
	Revolving line of credit with a China bank up to $1,627 with 6.16% interest and various maturity dates from January 2014 to February 2014		266		–
	Note payable to a finance company due in monthly installments with 9% interest, maturing October 31, 2013		–		38
	Note payable to a finance company due in monthly installments with 4.95% interest, maturing July 30, 2015		978		398
	Total		26,713		23,063
	Less current portion		12,095		13,900
	Long term portion	$	14,618	$	9,163
	Bank Acceptance Payable
	Bank acceptance notes issued to vendors with a zero percent interest rate, a 30% guarantee deposit of $997, and maturity dates ranging from October 2013 to January 2014	$	3,040	$	1,521
	The U.S. bank loans and line of credit agreement require the Company to meet certain financial covenants including a minimum current ratio, minimum quarterly debt service coverage requirements, a minimum unrestricted cash balance as well as maximum debt to tangible net worth ratio and reporting requirements. Collateral for the U.S. bank loans and line of credit includes substantially all of the assets of the Company. As of September 30, 2013, the Company was in compliance with all of its financial and operational covenants associated with these loans. As of September 30, 2013, the Company had $1.1 million of unused borrowing capacity.
	On September 10, 2013, the Company’s outstanding loan agreement with East West Bank was amended to add $5.0 million of borrowing capability to the existing credit line, for the purpose of financing equipment. The additional equipment term loan allows the Company to draw up to the lesser of (i) $5.0 million, or (ii) 90% of the costs of equipment purchased between March 31, 2013 and March 10, 2014. Through March 10, 2014, the Company is required to pay interest only on the then-outstanding balance, and then pay equal principal payments plus accrued interest monthly for the following 42 months. The interest rate for such equipment term loan is the bank’s prime lending rate plus 1.25%, or as of September 30, 2013, a total of 4.5%. As of September 30, 2013, the Company drew $1.85 million on this equipment line in reimbursement for capital equipment expenditures.
	As of September 30, 2013, the Company’s China subsidiary had a line of credit facility with China banks totaling $13.7 million. As of September 30, 2013, a total of $11.4 million was outstanding under various notes, each with its own maturity date and each renewing annually from December 2013 to August 2014. The notes that begin to mature in December 2013 are expected to be renewed on the same terms and with new one year terms. These loans have renewed each year for the past three years. While there can be no assurance of renewal as each loan matures, these loans are expected to renew this year as they have over the past periods. As of September 30, 2013, the Company had $2.3 million of unused borrowing capacity.
	In July 2013, the Company entered into a 24-month equipment financing agreement of $1.0 million in Taiwan with a financing company. The financing agreement requires equipment collateral and is payable in monthly installment payments over 24 months, maturing in July 2015.
	A customary business practice in China is to pay accounts payable with bank acceptance notes issued by a bank (so-called Bank Acceptances). From time to time the Company issues Bank Acceptances to its suppliers in China. These Bank Acceptances are non-interest bearing and are generally due within six months, and such Bank Acceptances may be redeemed with the issuing bank prior to maturity at a discount. As a condition of the Bank Acceptances lending arrangements, the Company is required to keep a compensating balance at the issuing bank that is a percentage of the total bank acceptances balance until the Bank Acceptances are paid by our China subsidiary. These balances are classified as restricted cash on our consolidated balance sheets. As of September 30, 2013, our restricted cash and Bank Acceptance payable totaled $1.0 million and $3.0 million respectively

8_Accrued_Liabilites

8. Accrued Liabilites	9 Months Ended
	Sep. 30, 2013
Payables and Accruals [Abstract]	'
8. Accrued Liabilites	'
	Accrued liabilities consisted of the following for the periods indicated (in thousands):
		30-Sep-13		31-Dec-12
	Accrued payroll	$	2,003	$	1,631
	Accrued employee benefits		447		429
	Accrued property taxes		125		167
	Accrued interest		70		74
	Accrued payments		153		189
	Accrued commission		100		69
	Accrued professional fees		71		22
	Accrued other		588		662
		$	3,557	$	3,243

9_Other_Income_and_Expense

9. Other Income and Expense	9 Months Ended
	Sep. 30, 2013
Other income (expense)	'
9. Other Income and Expense	'
	Other income and expense consisted of the following for the periods indicated (in thousands):
		Three months ended September 30,						Nine months ended September 30,
		2013			2012			2013			2012
	Interest income	$	15		$	5		$	49		$	12
	Unrealized foreign exchange gain (loss)		(65	)		119			(256	)		150
	Realized foreign exchange gain (loss)		57			–			(8	)		(1	)
	Government subsidy income		75			20			269			86
	Other non-operating gain (loss)		(9	)		(18	)		(13	)		14
	Gain (loss) on disposal of assets		–			(1	)		9			(38	)
		$	73		$	125		$	50		$	223

10_StockBased_Compensation

10. Stock-Based Compensation	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
10. Stock-Based Compensation	'
	The Company’s board of directors and stockholders previously approved, the 1998 Share Incentive Plan, the 2000 Share Incentive Plan, the 2004 Share Incentive Plan and the 2006 Share Incentive Plan, (collectively the “Prior Plans”). As of September 30, 2013, the Company had options outstanding to purchase 725,277 shares of common stock under its Prior Plans with a weighted average exercise price of $6.66. Following the Offering, no further awards will be granted under the Prior Plans. However, all outstanding awards under the Prior Plans will continue to exist and will continue to be governed by their existing terms.
	On April 12, 2013, our board of directors adopted and approved the Company’s 2013 Equity Incentive Plan, (the “2013 Plan”), and it was subsequently approved by the Company’s stockholders on May 21, 2013. As of September 30, 2013, the Company had options outstanding to purchase 759,163 shares of common stock under the 2013 Plan with a weighted average exercise price of $9.96.
	The Company issues stock options to employees, consultants and non-employee directors. Stock option awards for the Prior Plans and the 2013 Plan generally vest over a four year period and have a maximum term of ten years. Stock options under these plans have been granted at the fair market value on the date of the grant. Nonqualified and Incentive Stock Options and restrictive stock units may be granted from these plans. The fair market value of the Company’s stock has been historically determined by the board of directors and from time to time with the assistance of third party valuation specialists.
	In 2010, 2011 and 2012, the Company had estimated the fair value of employee stock options at the date of the grant using the Black-Scholes option-pricing model with the following assumptions: expected volatility of 70%, risk free interest rate of 1.01%, 2.32% and 1.72%, respectively, expected term of 6.25 years, no expected dividend yield, and estimated forfeitures of 10%. For grants issued after September 25, 2013, the same factors were used except that the expected volatility of 52% was used. Prior to the Offering, there had been no public market for the Company’s common stock. Therefore the expected volatility for options granted was derived from an analysis of reported data for a peer group of companies that issued options with similar terms. The expected volatility has been determined using an average of the expected volatility reported by this peer group of companies. The Company uses a risk free interest rate based on the 10-year Treasury as reported during the period. The expected term of options has been determined utilizing the simplified method which calculates a simple average based on vesting period and option life. The Company does not anticipate paying dividends in the near future. Estimated forfeitures were based on historical experience and future work force projections.
	Employee stock-based compensation expenses recognized for three and nine months ended September 30, were as follows (in thousands):
		Three months ended September 30,					Nine months ended September 30,
		2013			2012		2013		2012
	Cost of sales	$	14		$	2	$	40	$	6
	Research and development		12			2		37		6
	Sales and marketing		11			1		31		6
	General and administrative		98			10		267		33
		$	135		$	15	$	375	$	51
	Options have been granted to the Company’s employees under the Prior Plans and the 2013 Plan and generally become exercisable as to 25% of the shares on the first anniversary date following the vesting commencement date, generally the date of grant, and semi-annually thereafter. All options expire ten years after the date of grant. As of September 30, 2013, the Company had outstanding options to purchase 3,862 shares under the 1998 plan; 20,840 shares under the 2000 plan; 25,075 shares under the 2004 plan; 675,500 shares under the 2006 plan; and 759,163 shares under the 2013 plan.
	The following is a summary of option activity during the nine month period ending September 30, 2013 (in thousands, except price data):
		Number of shares			Exercise price		Weighted average exercise price
	Outstanding, December 31, 2012		419			3.00 - 9.00		5.935
	Granted		1,097			7.50 - 9.96		9.207
	Exercised		(14	)		6		6
	Forfeited		(13	)		6.00 - 7.50		6.629
	Expired		(5	)		6.00 - 7.50		5.985
	Outstanding, September 30, 2013		1,484			3.00 - 9.00		8.347
	Exercisable, September 30, 2013		277			3.00 - 7.50		5.901
	Vested and expected to vest		1,244			3.00 - 9.00		8.18
	As of September 30, 2013, total compensation cost related to unvested stock options not yet recognized was $5.5 million, which is expected to be expensed over a weighted-average period of 3.74 years. The aggregate intrinsic value of options outstanding and options exercisable as of September 30, 2013 was $1.1 million.

11_Stockholders_Equity

11. Stockholders' Equity	9 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
11. Stockholders' Equity	'
	Common Stock
	The Company had authorized the issuance of up to 300,000,000 shares of common stock, all of which have been designated voting common stock, under its Certificate of Incorporation as of September 30, 2013.
	Convertible Preferred Stock
	The Company had authorized the issuance of up to 172,200,000 shares of preferred stock under the Company’s Certificate of Incorporation as of September 30, 2013. As of September 30, 2013 and prior to the completion of the Offering, the number of authorized and issued shares and the conversion rate from a preferred share into a common share by series was as follows:
			Authorized		Issued		Carrying		Conversion
			shares		shares		value		rate
			(in thousands, except for conversion rate)
	Series A (Redeemable)			4,900		160	$	7,105	0103.2
	Series C			17,500		582		21,802	0102.3
	Series D			11,800		380		14,184	0102.5
	Series E			11,000		345		28,055	0103.6
	Series F			82,000		2,702		19,662	0101.2
	Series G			45,000		1,431		14,993	0101.0
				172,200		5,600	$	105,801
	The conversion, participation and redemption rights associated with the preferred stock are further described in Note N of the notes to the financial statements and within the section titled Description of Capital Stock of the Registration Statement.
	Warrants
	As of September 30, 2013, we had outstanding warrants to purchase:
		·	21,666 shares of our Series F preferred stock with a weighted average exercise price of $11.5384 per share of which 13,333 shares are exercisable under a warrant issued to our U.S. lender with an exercise price of $7.50 and 8,333 shares are exercisable under a warrant issued to our U.S. lender with an exercise price of $18.00 per share. If these warrants have not been exercised prior to the closing of the Offering, then the warrants automatically adjust to be exercisable for an aggregate of 26,000 shares of common stock at a weighted average exercise price of $9.6152 per share.
		·	3,304 shares of our Series G preferred stock with an exercise price of $18.00 per share. These warrants, if not exercised prior to the completion of the Offering, will expire.
		·	6,667 shares of our Series G preferred stock with an exercise price of $10.50 per share which are exercisable under a warrant issued to our U.S. lender. If this warrant has not been exercised prior to closing of the Offering, then pursuant to its terms, the warrant shall automatically adjust to be exercisable for 6,667 shares of common stock at $10.50 per share.
	For the nine months ended September 30, 2013, $42,000 of expense was recorded related to these warrants. At September 30, 2013 $31,000 of deferred compensation remains to be expensed for these warrants. During the nine month period ended September 30, 2013, warrants were exercised for 74,219 of common shares.
	Public Offering of Common Stock
	On September 25, 2013, the Company sold 3.6 million shares of its common stock in its initial public offering at a price of $10.00 per share, providing proceeds of $33.5 million net of underwriting discounts and commissions. The Offering closed on October 1, 2013 and therefore the proceeds from the Offering and the issuance of common stock from the Offering are not reflected on the Company’s balance sheet as of September 30, 2013.

12_Segment_and_Geographic_Info

12. Segment and Geographic Information	9 Months Ended
	Sep. 30, 2013
Segment Reporting [Abstract]	'
12. Segment and Geographic Information	'
	The Company operates in one reportable segment. The Company’s Chief Executive Officer, who is considered to be the chief operating decision maker, manages the Company’s operations as a whole and reviews financial information presented on a consolidated basis, accompanied by information about product revenue, for purposes of evaluating financial performance and allocating resources.
	The following tables set forth the Company’s revenue and asset information by geographic region. Revenue is classified based on the location of the Company’s product manufacturing plants. Long-lived assets in the tables below comprise only property, plant, equipment and intangible assets (in thousands):
		Three months ended September 30,				Nine months ended September 30,
		2013		2012		2013		2012
	Revenues:
	United States		3,742		2,685		8,364		8,652
	Taiwan		7,576		3,757		22,616		9,760
	China		9,448		9,974		23,700		26,147
		$	20,766	$	16,416	$	54,680	$	44,559
		For the period ending
		September 30,		December 31,
		2013		2012
	Long-lived assets:
	United States		9,105		9,009
	Taiwan		4,860		3,738
	China		14,945		13,560
		$	28,910	$	26,307

13_Subsequent_Events

13. Subsequent Events	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
13. Subsequent Events	'
	Public Offering of Common Stock
	On October 1, 2013, the Company completed its Offering and issued and sold 3,600,000 shares of common stock at a public offering price of $10.00 per share for proceeds. The Company received proceeds of $33.5 million, net of underwriting discounts and commissions. Expenses incurred by the Company for the Offering were approximately $2.0 million and will be recorded against the proceeds received from the Offering. The Offering closed on October 1, 2013 and therefore the proceeds from the Offering and the issuance of the common stock are not reflected on the Company’s balance sheet as of September 30, 2013.
	On October 22, 2013, the Company’s existing stockholders sold an aggregate of 540,000 shares of common stock, at a price of $10.00 per share, before underwriting discount and commission, as a result of the underwriters’ exercise of their over-allotment option to purchase additional shares.
	Conversion of Preferred Stock to Common Stock
	On October 1, 2013, the Company filed with the Delaware Secretary of State an Amended and Restated Certificate of Incorporation that converted all of its then outstanding preferred stock to common stock. Immediately after conversion of the preferred stock, the company had 9,029,095 shares of common stock outstanding, prior to issuance of shares to new investors from the Offering. The Amended and Restated Certificate of Incorporation changed the authorized shares to provide for 45,000,000 shares of common stock, par value of $0.001 per share, and 5,000,000 shares of preferred stock, par value $0.001 per share.

2_Significant_Accounting_Polic1

2. Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Recent accounting pronouncements	'
	Recent accounting pronouncements
	There have been no recent accounting pronouncements for the three months ended September 30, 2013, as compared to the recent accounting pronouncements described in its Registration Statement.
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates in the consolidated financial statements and accompanying notes. Significant estimates and assumptions that impact these financial statements and the accompanying notes relate to, among other things, allowance for doubtful accounts, valuation allowances for deferred tax assets, inventory reserve, stock-based compensation expense, estimated useful lives of property and equipment, and taxes.

3_Fair_Value_of_Financial_Inst1

3. Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Schedule of assets and liabilities at fair value	'
		As of September 30, 2013								As of December 31, 2012
		(Level 1)		(Level 2)		(Level 3)		Total		(Level 1)		(Level 2)		(Level 3)		Total
	Assets:
	Cash and cash equivalents	$	7,325	$	–	$	–	$	7,325	$	10,723	$	–	$	–	$	10,723
	Restricted cash		1,031		–		–		1,031		503		–		–		503
	Bank acceptance receivable		–		–		–		–		–		1,034		–		1,034
	Total assets	$	8,356	$	–	$	–	$	8,356	$	11,226	$	1,034	$	–	$	12,260
	Liabilities:
	Interest rate swap	$	–	$	–	$	–	$	–	$	–	$	11	$	–	$	11
	Bank acceptance payable				3,040				3,040				1,521				1,521
	Total liabilities	$	–	$	3,040	$	–	$	3,040	$	–	$	1,532	$	–	$	1,532

4_Earnings_Per_Share_Tables

4. Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
Computation of basic and diluted net loss per share	'
		Three months ended September 30,					Nine months ended September 30,
		2013		2012			2013			2012
	Numerator:
	Net income (loss)	$	390	$	(381	)	$	(885	)	$	(997	)
	Denominator:
	Weighted average shares used to
	compute net income (loss) per share
	Basic		8,995		266			273			265
	Effective of dilutive options and warrants		160		–			–			–
	Diluted		9,155		266			273			265
	Net income (loss) per share
	Basic	$	0.04	$	(1.43	)	$	(3.24	)	$	(3.76	)
	Diluted	$	0.04	$	(1.43	)	$	(3.24	)	$	(3.76	)
Pro Forma earnings per share	'
		Three months ended September 30,					Nine months ended September 30,
		2013		2012			2013			2012
	Numerator:
	Net income (loss)	$	390	$	(381	)	$	(885	)	$	(997	)
	Denominator:
	Number of shares used to compute net income (loss) per share
	Basic		8,995					8,965
	Effective of dilutive options and warrants		160					–
	Diluted		9,155					8,965
	Assumed issuance of shares in IPO to new investors		39					39
	Number of shares used to compute pro forma net income (loss) per share
	Basic		9,034					9,004
	Effective of dilutive options and warrants		160					–
	Diluted		9,194					9,004
	Pro forma net income (loss) per share
	Basic	$	0.04				$	(0.10	)
	Diluted	$	0.04				$	(0.10	)
Schedule of potentially dilutive securites	'
		Three months ended September 30,					Nine months ended September 30,
		2013		2012			2013			2012
	Employee stock options		1,347		412			1,484			412
	Preferred stock warrants		10		89			33			89
			1,357		501			1,517			501

5_Inventory_Tables

5. Inventory (Tables)	9 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Schedule of inventories	'
		30-Sep-13		31-Dec-12
	Raw materials	$	6,710	$	4,755
	Work in process		6,539		4,434
	Finished goods		3,172		3,304
		$	16,421	$	12,493

6_Property_Plant_and_Equipment1

6. Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2013
Property, Plant and Equipment [Abstract]	'
Schedule of property, plant and equipment	'
		30-Sep-13			31-Dec-12
	Land improvements	$	96		$	93
	Building and improvements		15,560			15,239
	Machinery and equipment		33,690			29,977
	Furniture and fixtures		853			739
	Computer equipment and software		3,183			2,851
	Transportation equipment		188			173
			53,570			49,072
	Less accumulated depreciation and amortization		(27,178	)		(24,967	)
			26,392			24,105
	Land		733			733
	Property, plant and equipment, net	$	27,125		$	24,838

7_Notes_Payable_and_LongTerm_D1

7. Notes Payable and Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Schedule of notes payable and long-term debt	'
		30-Sep-13		31-Dec-12
	Long-Term and Short-Term Debt
	Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 1.125% (floor rate: 4.375%), maturing May 3, 2014	$	67	$	141
	Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 0.75% (floor rate: 4%) or swap contract (fixed 5%), maturing November 15, 2014		3,103		3,181
	Revolving line of credit with a U.S. bank up to $10,500 with interest at prime plus 1.0% (floor rate: 4.25%), maturing November 15, 2014		9,360		8,637
	Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 1.25% (floor rate: 4.50%), maturing September 10, 2017		1,850		–
	Revolving line of credit with a China bank up to $12,074 with interest at 110% of China Prime rate which ranged from 4.10% to 6.60% in 2013 with various maturity dates from October 2013 to August 2014		11,089		10,668
	Revolving line of credit with a China bank up to $1,627 with 6.16% interest and various maturity dates from January 2014 to February 2014		266		–
	Note payable to a finance company due in monthly installments with 9% interest, maturing October 31, 2013		–		38
	Note payable to a finance company due in monthly installments with 4.95% interest, maturing July 30, 2015		978		398
	Total		26,713		23,063
	Less current portion		12,095		13,900
	Long term portion	$	14,618	$	9,163
	Bank Acceptance Payable
	Bank acceptance notes issued to vendors with a zero percent interest rate, a 30% guarantee deposit of $997, and maturity dates ranging from October 2013 to January 2014	$	3,040	$	1,521

8_Accrued_Liabilites_Tables

8. Accrued Liabilites (Tables)	9 Months Ended
	Sep. 30, 2013
Payables and Accruals [Abstract]	'
Schedule of accrued liabilities	'
		30-Sep-13		31-Dec-12
	Accrued payroll	$	2,003	$	1,631
	Accrued employee benefits		447		429
	Accrued property taxes		125		167
	Accrued interest		70		74
	Accrued payments		153		189
	Accrued commission		100		69
	Accrued professional fees		71		22
	Accrued other		588		662
		$	3,557	$	3,243

9_Other_Income_and_Expense_Tab

9. Other Income and Expense (Tables)	9 Months Ended
	Sep. 30, 2013
Other income (expense)	'
Schedule of other income and expense	'
		Three months ended September 30,						Nine months ended September 30,
		2013			2012			2013			2012
	Interest income	$	15		$	5		$	49		$	12
	Unrealized foreign exchange gain (loss)		(65	)		119			(256	)		150
	Realized foreign exchange gain (loss)		57			–			(8	)		(1	)
	Government subsidy income		75			20			269			86
	Other non-operating gain (loss)		(9	)		(18	)		(13	)		14
	Gain (loss) on disposal of assets		–			(1	)		9			(38	)
		$	73		$	125		$	50		$	223

10_StockBased_Compensation_Tab

10. Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Schedule of employee stock-based compensation expenses	'
		Three months ended September 30,					Nine months ended September 30,
		2013			2012		2013		2012
	Cost of sales	$	14		$	2	$	40	$	6
	Research and development		12			2		37		6
	Sales and marketing		11			1		31		6
	General and administrative		98			10		267		33
		$	135		$	15	$	375	$	51
Summary of option activity	'
		Number of shares			Exercise price		Weighted average exercise price
	Outstanding, December 31, 2012		419			3.00 - 9.00		5.935
	Granted		1,097			7.50 - 9.96		9.207
	Exercised		(14	)		6		6
	Forfeited		(13	)		6.00 - 7.50		6.629
	Expired		(5	)		6.00 - 7.50		5.985
	Outstanding, September 30, 2013		1,484			3.00 - 9.00		8.347
	Exercisable, September 30, 2013		277			3.00 - 7.50		5.901
	Vested and expected to vest		1,244			3.00 - 9.00		8.18

11_Stockholders_Equity_Tables

11. Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
Schedule of convertible preferred stock	'
		Authorized		Issued		Carrying		Conversion
		shares		shares		value		rate
		(in thousands, except for conversion rate)
	Series A (Redeemable)		4,900		160	$	7,105	0103.2
	Series C		17,500		582		21,802	0102.3
	Series D		11,800		380		14,184	0102.5
	Series E		11,000		345		28,055	0103.6
	Series F		82,000		2,702		19,662	0101.2
	Series G		45,000		1,431		14,993	0101.0
			172,200		5,600	$	105,801

12_Segment_and_Geographic_Info1

12. Segment and Geographic Information (Tables)	9 Months Ended
	Sep. 30, 2013
Segment Reporting [Abstract]	'
Revenue and asset information by geographic region	'
		Three months ended September 30,				Nine months ended September 30,
		2013		2012		2013		2012
	Revenues:
	United States		3,742		2,685		8,364		8,652
	Taiwan		7,576		3,757		22,616		9,760
	China		9,448		9,974		23,700		26,147
		$	20,766	$	16,416	$	54,680	$	44,559
		For the period ending
		September 30,		December 31,
		2013		2012
	Long-lived assets:
	United States		9,105		9,009
	Taiwan		4,860		3,738
	China		14,945		13,560
		$	28,910	$	26,307

3_Fair_Value_of_Financial_Inst2

3. Fair Value of Financial Instruments (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Assets:	'	'
Cash and cash equivalents	$7,325	$10,723
Restricted cash	1,031	503
Bank acceptance receivable	0	1,034
Total assets	8,356	12,260
Liabilities:	'	'
Interest rate swap	0	11
Bank acceptance payable	3,040	1,521
Total liabilities	3,040	1,532
Fair Value, Inputs, Level 1 [Member]	'	'
Assets:	'	'
Cash and cash equivalents	7,325	10,723
Restricted cash	1,031	503
Bank acceptance receivable	0	0
Total assets	8,356	11,226
Liabilities:	'	'
Interest rate swap	0	0
Bank acceptance payable	0	0
Total liabilities	0	0
Fair Value, Inputs, Level 2 [Member]	'	'
Assets:	'	'
Cash and cash equivalents	0	0
Restricted cash	0	0
Bank acceptance receivable	0	1,034
Total assets	0	1,034
Liabilities:	'	'
Interest rate swap	0	11
Bank acceptance payable	3,040	1,521
Total liabilities	3,040	1,532
Fair Value, Inputs, Level 3 [Member]	'	'
Assets:	'	'
Cash and cash equivalents	0	0
Restricted cash	0	0
Bank acceptance receivable	0	0
Total assets	0	0
Liabilities:	'	'
Interest rate swap	0	0
Bank acceptance payable	0	0
Total liabilities	$0	$0

4_Earnings_Per_Share_Details

4. Earnings Per Share (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share [Abstract]	'	'	'	'
Net income (loss)	$390	($381)	($885)	($997)
Basic	8,995,000	266,000	273,000	265,000
Effective of dilutive options and warrants	160,000	0	0	0
Diluted	9,155,000	266,000	273,000	265,000
Net income (loss) per share	'	'	'	'
Basic	$0.04	($1.43)	($3.24)	($3.76)
Diluted	$0.04	($1.43)	($3.24)	($3.76)

4_Earnings_Per_Share_Pro_Forma

4. Earnings Per Share Pro Forma (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share [Abstract]	'	'	'	'
Net income (loss)	$390	($381)	($885)	($997)
Number of shares used to compute net income (loss) per share	'	'	'	'
Basic	8,995,000	266,000	8,965,000	265,000
Effective of dilutive options and warrants	160,000	0	0	0
Diluted	9,155,000	'	8,965,000	'
Assumed issuance of shares in IPO to new investors	39,000	'	39,000	'
Number of shares used to compute pro forma net income (loss) per share	'	'	'	'
Basic	9,034,000	'	9,004,000	'
Effective of dilutive options and warrants	160,000	0	0	0
Diluted	9,194,000	'	9,004,000	'
Pro forma net income (loss) per share	'	'	'	'
Basic	$0.04	'	($0.10)	'
Diluted	$0.04	'	($0.10)	'

4_Potentially_dilutive_securit

4. Potentially dilutive securities (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Potentially dilutive securires excluded from computation of diluted net income (loss) per share	1,357,000	501,000	1,517,000	501,000
Employee Stock Option [Member]	'	'	'	'
Potentially dilutive securires excluded from computation of diluted net income (loss) per share	1,347,000	412,000	1,484,000	412,000
Warrant [Member]	'	'	'	'
Potentially dilutive securires excluded from computation of diluted net income (loss) per share	10,000	89,000	33,000	89,000

5_Inventory_Details

5. Inventory (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Inventory Details	'	'
Raw materials	$6,710	$4,755
Work in process	6,539	4,434
Finished goods	3,172	3,304
Inventories	$16,421	$12,493

5_Inventory_Details_Narrative

5. Inventory (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Inventory Details Narrative	'	'	'	'
Lower of cost or market adjustment for inventory	$100	$100	$500	$300

6_Property_Plant_and_Equipment2

6. Property, Plant and Equipment (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Property, plant and equipment, gross	$53,570	$49,072
Less accumulated depreciation and amortization	-27,178	-24,967
Property, plant and equipment	26,392	24,105
Land	733	733
Property, plant and equipment, net	27,125	24,838
Land Improvements [Member]	'	'
Property, plant and equipment, gross	96	93
Building and Building Improvements [Member]	'	'
Property, plant and equipment, gross	15,560	15,239
Machinery and Equipment [Member]	'	'
Property, plant and equipment, gross	33,690	29,977
Furniture and Fixtures [Member]	'	'
Property, plant and equipment, gross	853	739
Computer Equipment [Member]	'	'
Property, plant and equipment, gross	3,183	2,851
Transportation Equipment [Member]	'	'
Property, plant and equipment, gross	$188	$173

6_Property_Plant_and_Equipment3

6. Property, Plant and Equipment (Details Narrative) (USD $)	3 Months Ended	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2013
Property Plant And Equipment Details Narrative	'	'
Depreciation expense	$900	$2,400

7_Notes_Payable_and_LongTerm_D2

7. Notes Payable and Long-Term Debt (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Notes payable and long-term debt total	$26,713	$23,063
Current portion of notes payable and long-term debt	12,095	13,900
Long term portion of notes payable and long-term debt	14,618	9,163
Bank acceptance notes	3,040	1,521
Term loan 1	'	'
Notes payable and long-term debt total	67	141
Debt maturity date	3-May-14	'
Interest rate	'prime plus 1.125%	'
Term loan 2	'	'
Notes payable and long-term debt total	3,103	3,181
Debt maturity date	15-Nov-14	'
Interest rate	'prime plus 0.75%	'
Line of Credit	'	'
Notes payable and long-term debt total	9,360	8,637
Debt maturity date	15-Nov-14	'
Interest rate	'prime plus 1.0%	'
Term Loan 3	'	'
Notes payable and long-term debt total	1,850	0
Debt maturity date	10-Sep-17	'
Interest rate	'prime plus 1.25%	'
Line of Credit 2	'	'
Notes payable and long-term debt total	11,089	10,668
Debt maturity date	15-Aug-14	'
Interest rate	'110% of China Prime rate	'
Line of Credit 3	'	'
Notes payable and long-term debt total	266	0
Debt maturity date	28-Feb-14	'
Interest rate	'6.16%	'
Note payable 1	'	'
Notes payable and long-term debt total	0	38
Debt maturity date	31-Oct-13	'
Interest rate	'9%	'
Note payable 2	'	'
Notes payable and long-term debt total	$978	$398
Debt maturity date	30-Jul-15	'
Interest rate	'4.95%	'

7_Notes_Payable_and_LongTerm_D3

7. Notes Payable and Long-Term Debt (Details Narrative) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified
US Bank loans	'
Line of credit unused borrowing capacity	$1,100
China Banks	'
Line of credit unused borrowing capacity	2,300
Line of credit outstanding	11,400
Restricted cash	1,000
Bank acceptance payable	$3,000

8_Accrued_Liabilities_Details

8. Accrued Liabilities (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Accrued Liabilities Details	'	'
Accrued payroll	$2,003	$1,631
Accrued employee benefits	447	429
Accrued property taxes	125	167
Accrued interest	70	74
Accrued payments	153	189
Accrued commission	100	69
Accrued professional fees	71	22
Accrued other	588	662
Total accrued liabilities	$3,557	$3,243

9_Other_Income_and_Expense_Det

9. Other Income and Expense (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Other Income And Expense Details	'	'	'	'
Interest income	$15	$5	$49	$12
Unrealized foreign exchange gain (loss)	-65	119	-256	150
Realized foreign exchange gain (loss)	57	0	-8	-1
Government subsidy income	75	20	269	86
Other non-operating gain (loss)	-9	-18	-13	14
Gain (loss) on disposal of assets	0	-1	9	-38
Total other income and expense	$73	$125	$50	$223

10_Employeee_stockbased_compen

10. Employeee stock-based compensation (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Employee stock-based compensation expense	$135	$15	$375	$51
Cost of Sales [Member]	'	'	'	'
Employee stock-based compensation expense	14	2	40	6
Research and Development Expense [Member]	'	'	'	'
Employee stock-based compensation expense	12	2	37	6
Selling and Marketing Expense [Member]	'	'	'	'
Employee stock-based compensation expense	11	1	31	6
General and Administrative Expense [Member]	'	'	'	'
Employee stock-based compensation expense	$98	$10	$267	$33

10_Option_Activity_Details

10. Option Activity (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Number of Shares	'
Outstanding, beginning balance	419,000
Granted	1,097,000
Exercised	-14,000
Forfeited	-13,000
Expired	-5,000
Outstanding, ending balance	1,484,000
Exericsable, ending balance	277,000
Vested and expected to vest	1,244,000
Weighted Average Exercise Price	'
Outstanding, beginning balance	$5.93
Granted	$9.21
Exercised	$6
Forfeited	$6.66
Expired	$5.99
Outstanding, ending balance	$8.35
Exericsable, ending balance	$5.90
Vested and expected to vest	$8.18

10_StockBased_Compensation_Det

10. Stock-Based Compensation (Details Narrative) (USD $)	9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Options outstanding	1,484,000	419,000
Compensation cost on unvested options not yet recognized	$5,500	'
Compensation cost unrecognized weighted average period	'3 years 8 months 26 days	'
Aggregate intrinsic value of options outstanding	1,100	'
Aggregate intrinsic value of options exercisable	$1,100	'
1998 Plan	'	'
Options outstanding	3,862	'
2000 Plan	'	'
Options outstanding	20,840	'
2004 Plan	'	'
Options outstanding	25,075	'
2006 Plan	'	'
Options outstanding	675,500	'
2013 Plan	'	'
Options outstanding	759,163	'

11_Convertible_Preferred_Stock

11. Convertible Preferred Stock (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
In Thousands, except Share data, unless otherwise specified			Series A Preferred Stock [Member]	Series C Preferred Stock [Member]	Series D Preferred Stock [Member]	Series E Preferred Stock [Member]	Series F Preferred Stock [Member]	Series G Preferred Stock [Member]
Authorized shares	172,200,000	172,200,000	4,900,000	17,500,000	11,800,000	11,000,000	82,000,000	45,000,000
Issued shares	5,600,000	5,547,000	160,000	582,000	380,000	345,000	2,702,000	1,431,000
Carrying value	$105,801	$105,367	$7,105	$21,802	$14,184	$28,055	$19,662	$14,993
Conversion rate	'	'	'1:3:1731	'1:2:3107	'1:2:5360	'1:3:6186	'1:1:2000	'1:1:0000

11_Stockholders_Equity_Details

11. Stockholders Equity (Details Narrative) (USD $)	9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013
Stockholders Equity Details Narrative	'
Warrant expense	$42
Deferred compensation expense	$31
Warrants exercised for common stock, shares	74,219

12_Segment_and_Geographic_Info2

12. Segment and Geographic Information (Details) (USD $)

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

In Thousands, unless otherwise specified

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2013

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2013

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2013

UNITED STATES

UNITED STATES

UNITED STATES

UNITED STATES

UNITED STATES

TAIWAN

TAIWAN

TAIWAN

TAIWAN

TAIWAN

CHINA

CHINA

CHINA

CHINA

CHINA

Revenues

$20,766

$16,416

$54,680

$44,559

'

$3,742

$2,685

$8,364

$8,652

'

$7,576

$3,757

$22,616

$9,760

'

$9,448

$9,974

$23,700

$26,147

'

Long-lived assets

$28,910

'

$28,910

'

$26,307

$9,105

'

$9,105

'

$9,009

$4,860

'

$4,860

'

$3,738

$14,945

'

$14,945

'

$13,560