Applied Optoelectronics (AAOI) 10-K/A 21 Dec 15 2014 FY Annual report (amended) Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Mar. 02, 2015	Jun. 30, 2014
Document And Entity Information
Entity Registrant Name	Applied Optoelectronics, Inc.
Entity Central Index Key	1,158,114
Document Type	10-K/A
Document Period End Date	Dec. 31, 2014
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 Public Float			$ 332,700
Entity Common Stock, Shares Outstanding		14,887,794
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,014

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Current Assets
Cash and cash equivalents	$ 32,175	$ 22,006
Restricted cash	509	775
Short-term investments	8,189	7,970
Accounts receivable - trade, net of allowance of $43 and $42, respectively	31,589	22,089
Inventories	33,780	19,608
Notes receivable	980	0
Prepaid expenses and other current assets	6,017	5,488
Total current assets	113,239	77,936
Property, plant and equipment, net of $32,412 and $28,145, respectively	64,808	31,134
Land use rights, net	930	959
Intangible assets, net	3,833	851
Other assets, net	860	177
TOTAL ASSETS	183,670	111,057
Current liabilities
Current portion of notes payable and long-term debt	9,591	17,185
Accounts payable	30,799	15,010
Bank acceptance payable	1,271	2,347
Accrued liabilities	6,940	4,515
Total current liabilities	48,601	39,057
Notes payable and long-term debt, less current portion	19,057	8,923
Other long-term liabilities	1,000	0
TOTAL LIABILITIES	68,658	47,980
Stockholders' equity (deficit):
Preferred Stock; 5,000 shares authorized; no shares issued and outstanding at December 31, 2014 or 2013, respectively, $0.001 par value	0	0
Common Stock; 45,000 shares authorized; 14,824 shares issued and outstanding at December 31, 2014, $0.001 par value; 12,644 shares issued and outstanding at December 31, 2013, $0.001 par value	15	13
Additional paid-in capital	192,112	144,023
Accumulated other comprehensive gain	1,925	2,364
Accumulated deficit	(79,040)	(83,323)
TOTAL STOCKHOLDERS' EQUITY	115,012	63,077
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 183,670	$ 111,057

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Accounts receivable allowance	$ 43	$ 42
Accumulated depreciation	$ 32,412	$ 28,145
Preferred Stock par value	$ 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	$ .001	$ 0.001
Common stock shares authorized	45,000,000	45,000,000
Common stock shares issued	14,824,000	12,644,000
Common stock shares outstanding	14,824,000	12,644,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Statement [Abstract]
Revenue, net	$ 130,449	$ 78,424	$ 63,421
Cost of goods sold	86,203	55,396	44,492
Gross profit	44,246	23,028	18,929
Operating expenses
Research and development	15,970	8,512	7,603
Sales and marketing	6,043	4,191	3,135
General and administrative	17,095	10,632	8,012
Total operating expenses	39,108	23,335	18,750
Income (loss) from operations	5,138	(307)	179
Other income (expense)
Interest income	369	104	26
Interest expense	(326)	(1,125)	(1,381)
Other income (expense), net	(699)	(78)	231
Total other expense	(656)	(1,099)	(1,124)
Income (loss) before income taxes	4,482	(1,406)	(945)
Income taxes	(199)	0	0
Net income (loss)	$ 4,283	$ (1,406)	$ (945)
Net income (loss) per share - Basic	$ 0.30	$ (0.14)	$ (3.56)
Net income (loss) per share - Diluted	$ 0.28	$ (0.14)	$ (3.56)
Weighted average shares used to compute net income (loss) per share: basic	14,307,477	9,964,955	265,576
Weighted average shares used to compute net income (loss) per share: Diluted	15,186,961	9,964,955	265,576

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 4,283	$ (1,406)	$ (945)
Foreign currency translation adjustment, net of tax of $0, $0 and $0	(439)	348	44
Comprehensive income (loss)	$ 3,844	$ (1,058)	$ (901)

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
Foreign currency translation tax	$ 0	$ 0	$ 0

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated other comprehensive gain	Accumulated deficit	Total
Beginning balance, shares at Dec. 31, 2011	4,341,000	265,000
Beginning balance, value at Dec. 31, 2011	$ 94,373	$ 1,069	$ 4,234	$ 1,972	$ (80,972)	$ 20,676
Preferred stock issued, net, shares	1,206,000
Preferred stock issued, net, value	$ 10,994					10,994
Stock options exercised, shares		1,000
Stock options exercised, value		$ 5				5
Stock based compensation			161			161
Issuance of warrants			73			73
Net income (loss)					(945)	(945)
Foreign currency translation adjustment				44		44
Ending balance, shares at Dec. 31, 2012	5,547,000	266,000
Ending balance, value at Dec. 31, 2012	$ 105,367	$ 1,074	4,468	2,016	(81,917)	31,008
Public offering of common stock, net, shares		3,600
Public offering of common stock, net, value		$ 3	31,445			31,448
Convert preferred stock common stock upon public offering, shares	(5,601,000)	8,739,000
Convert preferred stock common stock upon public offering, value	$ (105,801)	$ (1,211)	107,012
Stock options exercised, shares		29,000
Stock options exercised, value		$ 87	86			173
Stock based compensation			1,012			1,012
Warrants exercised, shares issued	54,000	10,000
Warrants exercised, value	$ 434	$ 60				494
Net income (loss)					(1,406)	(1,406)
Foreign currency translation adjustment				348		348
Ending balance, shares at Dec. 31, 2013	0	12,644,000
Ending balance, value at Dec. 31, 2013	$ 0	$ 13	144,023	2,364	(83,323)	63,077
Public offering of common stock, net, shares		2,025,000
Public offering of common stock, net, value		$ 2	45,679			45,681
Issuance of shares under equity plans, shares		33,000
Stock options exercised, shares		103,000
Stock options exercised, value			365			365
Stock based compensation			2,045			2,045
Warrants exercised, shares issued		19,000
Net income (loss)					4,283	4,283
Foreign currency translation adjustment				(439)		(439)
Ending balance, shares at Dec. 31, 2014	0	14,824,000
Ending balance, value at Dec. 31, 2014	$ 0	$ 15	$ 192,112	$ 1,925	$ (79,040)	$ 115,012

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Operating activities:
Net income (loss)	$ 4,283	$ (1,406)	$ (945)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for obsolete inventory	941	492	858
Depreciation and amortization	6,169	3,407	2,942
Loss on disposal of assets	12	1	36
Share-based compensation and warrant expense	2,061	1,069	161
Changes in operating assets and liabilities:
Accounts receivable	(9,703)	(8,457)	(1,158)
Bank acceptance receivable	(977)	1,036	(1,034)
Inventory	(16,105)	(7,520)	(538)
Other current assets	(745)	(4,622)	(261)
Accounts payable	18,758	8,079	(961)
Accrued liabilities	2,548	1,369	542
Net cash provided by (used in) operating activities	7,242	(6,552)	(358)
Investing activities:
Purchase of short-term investments	(246)	(7,970)	0
Purchase of property, plant and equipment	(41,129)	(9,600)	(3,178)
Proceeds from disposal of equipment	47	0	138
Deposits and deferred charges	(720)	(43)	(41)
Purchase of intangible assets	(3,340)	(123)	(209)
Net cash used in investing activities	(45,388)	(17,736)	(3,290)
Financing activities:
Proceeds from issuance of notes payable and long-term debt	8,150	2,851	845
Principal payments of long-term debt and notes payable	(8,076)	(285)	(707)
Proceeds from line of credit borrowings	53,658	23,192	15,560
Repayments of line of credit borrowings	(50,733)	(23,008)	(13,692)
Proceeds from bank acceptance payable	5,925	6,778	3,746
Repayments of bank acceptance payable	(6,986)	(6,026)	(2,894)
Repayments of note payable	(1,000)	0	0
Repayments of shareholder loans	0	0	(150)
Decrease (increase) in restricted cash	266	(249)	(193)
Exercise of stock options	365	173	5
Exercise of warrants	0	494	0
Proceeds from common stock offering, net	45,681	31,448	0
Issuance of preferred stock, net	0	0	10,234
Net cash provided by financing activities	47,250	35,368	12,754
Effect of exchange rate changes on cash	1,065	203	(150)
Net increase in cash	10,169	11,283	8,956
Cash and cash equivalents at beginning of year	22,006	10,723	1,767
Cash and cash equivalents at end of year	32,175	22,006	10,723
Cash paid for:
Interest	329	1,133	1,469
Income taxes	148	1	0
Non-cash investing and financing activities:
Purchase of intangible assets with notes payable	3,000	0	0
Conversion of shareholders' loan to preferred stock	$ 0	$ 0	$ 760

A. ORGANIZATION AND OPERATIONS

A. ORGANIZATION AND OPERATIONS	12 Months Ended
	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND OPERATIONS	Applied Optoelectronics, Inc. (“AOI” or the “Company”) was incorporated in the State of Texas on February 28, 1997. 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 range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment. Prime World International Holdings, Ltd. (“Prime World”) is a wholly-owned subsidiary of the Company incorporated in the British Virgin Islands on January 13, 2006. Prime World is the parent company of Global Technology, Inc. (“Global”). Global was established in June 2002 in the People’s Republic of China (“PRC”) and was acquired by Prime World on March 30, 2006. The Company also operates a division, AOI—Taiwan, which is qualified to do business in Taiwan and primarily manufactures transceivers and performs research and development activities.

B. SUMMARY OF SIGNIFICANT ACCOU

B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. Basis of Presentation The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries and are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation. 2. 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 relate to, among other things, allowance for doubtful accounts, inventory reserve, share-based compensation expense, estimated useful lives of property and equipment, and taxes. 3. Foreign Currency Translation All assets and liabilities of foreign subsidiaries are translated into U.S. dollars at the exchange rate as of the balance sheet date. Revenue and expense accounts are translated at weighted-average rates for the reporting period. Translation adjustments do not impact the results of operations and are reported as a separate component of stockholders’ equity. Foreign currency transaction gains and losses are included in the consolidated statements of operations. 4. Fair Value The carrying value of cash, cash equivalents and short-term investments, accounts receivable, accounts payable, and note receivable approximate their historical fair values due to their short-term maturities. The carrying value of the debt approximates its fair value due to the short-term nature of the debt since it renews frequently at current interest rates. Management believes that the interest rates in effect at each year end represent the current market rates for similar borrowings. The fair value measurement standard defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard characterizes inputs used in determining fair value according to a hierarchy that prioritized inputs based on the degree to which they are observable. The three levels of the fair value hierarchy are as follows: Level 1—Inputs represent quoted prices in active markets for identical assets or liabilities. Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3—Inputs that are not observable from objective sources, such as management’s internally developed assumptions used in pricing an asset or liability. Assets and liabilities that are required to be fair valued on a recurring basis include money market funds, marketable securities, equity instruments and contingent consideration. Money market funds are valued with Level 1 inputs, using quoted market prices, and are included in cash and cash equivalents on the Company’s consolidated balance sheets. 5. Cash and Cash Equivalents The Company considers all highly liquid securities with an original maturity of ninety days or less from the date of purchase to be cash equivalents. Cash in foreign accounts was approximately $4.6 million and $6.6 million at December 31, 2014 and 2013, respectively. The Company maintains cash and cash equivalents at U.S. financial institutions for which the combined account balances in individual institutions may exceed Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. As of December 31, 2014, approximately $25.4 million of U.S. deposits were not covered by FDIC insurance. The Company has not experienced any losses and believes it is not exposed to any significant risk with such accounts. 6. Restricted Cash/Compensating Balances The Company is required to maintain a compensation deposit equal to 30% of its bank acceptance notes to vendors with a China bank. The Company’s Taiwan subsidiary also uses time deposits for customs guarantees. As of December 31, 2014 and 2013, the amount of restricted cash was $0.5 million and $0.8 million, respectively. 7. Short-Term Investments The Company invests its excess cash in bank certificates of deposit. As of December 31, 2014, the Company invested $8.2 million in certificates of deposit in RMB currencies with Taiwan banks. The maturity dates range from 6 months to 12 months. The Company arranged a revolving line of credit agreement with the same Taiwan bank by pledging 100% of its certificates of deposit. As of December 31, 2014, the pledged certificate of deposit for such arrangement amount is $8.2 million. 8. Accounts Receivable/Allowance for Doubtful Accounts The Company carries its accounts receivable at the net amount that it estimates to be collectible. An allowance for uncollectable accounts is maintained through a charge against operations. The allowance is determined by management review of outstanding amounts per customer, historical payments and the aging of accounts. 9. Bank Acceptance Receivable The Company carries its bank acceptance receivables at face value or discounted value if they are not interest bearing. The maturity date of the receivables are all within one year of the original issuance date and are carried at face value. 10. Concentration of Credit Risk and Significant Customers Financial instruments which potentially subject the Company to concentrations of credit risk include cash, cash equivalents and accounts receivable. The Company places all cash and cash equivalents with high-credit quality financial institutions. The Company performs ongoing credit valuations of its customers’ financial condition whenever deemed necessary and generally does not require deposits or collateral to support customer receivables. The historical amount of losses on uncollectible accounts has been within the Company’s estimates. The Company generates much of its revenue from a limited number of customers. In 2014, 2013 and 2012, its top ten customers represented 87.2%, 76.9% and 77.6% of its revenue, respectively. In 2014, Amazon represented 45.8% of its revenue, Cisco Systems, Inc. represented 8.9% of its revenue and a leading internet service provider represented 6.7% of its total revenue. The five largest receivable balances for customers represented an aggregate of 70%, and 66% of total accounts receivable at December 31, 2014 and 2013, respectively. 11. Inventories Inventories are stated at the lower of cost (average-cost method) or market. Work in process and finished goods includes materials, labor and allocated overhead. The Company assesses the valuation of its inventory on a periodic basis and provides write-offs for the value of estimated excess and obsolete inventory based on estimates of future demand. 12. Property, Plant and Equipment Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. The Company calculates depreciation using the straight-line method over the following estimated useful lives: Useful lives Buildings 20 - 40 years Land improvements 10 years Machinery and equipment 3 - 20 years Furniture and fixtures 1 - 8 years Computer equipment and software 3 - 7 years Leasehold improvements The shorter of the life of the applicable lease or the useful life of the improvement Transportation equipment 5 years Major improvements are capitalized and expenditures for maintenance and repairs are expensed as incurred. Construction in progress represents property, plant and equipment under construction or being installed. Costs include original cost, installation, construction and other direct costs which include interest on borrowings used to finance the asset. Construction in progress is transferred to the appropriate fixed asset account and depreciation commences when the asset has been substantially completed and placed in service. Land use rights allow the Company rights for 50 years to certain land in Ningbo, China on which the Company built a facility that included office space, manufacturing operations and employee dormitories. The land use rights are recorded at cost and are amortized on the straight-line basis over the useful life of the related contract. The land use rights expire on October 7, 2054. 13. Intangible Assets Intangible assets consist of intellectual property that is stated at cost less accumulated amortization. As of December 31, 2014, the Company had 152 total patents issued. The costs incurred to obtain such patents have been capitalized and are being amortized over an estimated life of 20 years. The Company periodically evaluates its intangible assets to determine whether events or changes in circumstances indicate that a patent or trademark may not be applicable to the Company’s current products or is no longer in use. If such a determination is made, the intangible asset is impaired and the remaining value of the patent or trademark will be expensed at that time. 14. Impairment of Long-Lived Assets The Company accounts for impairment of long-lived assets in accordance with Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment The measurement for such an impairment loss is then based on the fair value of the asset as determined by the appraisals. 15. Comprehensive Income (Loss) ASC 220, Comprehensive Income 16. Share-based Compensation The Company accounts for share-based compensation in accordance with the provisions of ASC 718, Compensation—Stock Compensation 17. Revenue Recognition The Company derives revenue from the manufacture and sale of fiber optic networking products. Revenue recognition follows the criteria of ASC 605, Revenue Recognition 18 Product Warranty The Company generally offers a one-year limited warranty for its products but it can extend for longer periods of three to five years for certain products sold to certain customers. The Company estimates the costs that may be incurred under its basic limited warranty and records a liability for the amount of such costs at the time when product defective occurs. Factors that affect the Company’s warranty liability include the historical and anticipated rates of warranty claims and cost to repair. While we believe that our warranty accrual is adequate, our actual warranty costs may exceed the accrual, cost of sales will increase in the future. As of December 31, 2014 and 2013, the amount of accrued warranty was $247,000 and $0, respectively. 19. Advertising Costs Advertising costs are charged to operations as incurred and amounted to approximately $100,000, $121,000 and $80,000 for the years ended December 31, 2014, 2013 and 2012, respectively. 20. Research and Development Research and development costs are charged to operations as incurred. The Company receives reimbursement for certain development costs, which are capitalized when incurred, up to the reimbursable amount. 21. Income Taxes The Company accounts for income taxes in accordance with the provisions of ASC 740, Income Taxes. The liability method is used to account for deferred income taxes. Under the liability method, deferred tax assets and liabilities are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The ability to realize deferred tax assets is evaluated annually and a valuation allowance is provided if it is unlikely that the deferred tax assets will not give rise to future benefits in our tax returns The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, it recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statement of operations. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheet. 22. New Accounting Standards Adopted in this Report In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers 23. Reverse Stock Split In May 1, 2013, the Company’s board of directors approved, and holders of the requisite number of outstanding shares of our capital stock approved on May 21, 2013, an amendment to our certificate of incorporation to effect a reverse stock split with respect to our securities. Based on the prior board and stockholder approvals, on August 16, 2013 the Company’s board of directors determined that the ratio for the reverse stock split would be 30-to-one. The reverse stock split was effected on August 20, 2013, the date that the amendment to our certificate of incorporation was filed with the Delaware Secretary of State. The reverse stock split is reflected in the accompanying consolidated financial statements and related notes on a retroactive basis for all periods presented.

C. EARNINGS PER SHARE

C. EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2014
Earnings Per Share [Abstract]
EARNINGS PER SHARE	Basic net loss per share has been computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share has been computed using the weighted-average number of shares of common stock and dilutive potential common shares from options, restricted stock units and warrants outstanding during the period. In periods with net losses, normally dilutive shares become anti-dilutive. Therefore, basic and dilutive earnings per share are the same. The following table presents the calculation of basic and diluted EPS: Year ended December 31, 2014 2013 2012 (in thousands, except per share data) Numerator: Net income (loss) $ 4,283 $ (1,406 ) $ (945 ) Denominator: Weighted average shares used to compute net income (loss) per share Basic 14,307 9,965 266 Effective of dilutive options and warrants 880 – – Diluted 15,187 9,965 266 Net income (loss) per share Basic $ 0.30 $ (0.14 ) $ (3.56 ) Diluted $ 0.28 $ (0.14 ) $ (3.56 ) The following potentially dilutive securities were excluded from the computation of diluted net loss per share as their effect would have been antidilutive: 2014 2013 2012 (in thousands) Employee stock options – 595 419 Preferred stock warrants – 33 96 Restricted stock units – 33 – – 661 515

D. INVENTORIES

D. INVENTORIES	12 Months Ended
	Dec. 31, 2014
Inventory Disclosure [Abstract]
4. INVENTORIES	At December 31, 2014 and 2013, inventories consisted of the following: 2014 2013 (in thousands) Raw materials $ 16,243 $ 8,832 Work in process 13,379 8,708 Finished goods 4,158 2,068 $ 33,780 $ 19,608 For the years ended December 31, 2014, 2013 and 2012, the lower of cost or market adjustment expensed for inventory was $0.9 million, $0.5 million and $0.9 million, respectively.

E. PROPERTY, PLANT AND EQUIPMEN

E. PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	At December 31, 2014 and 2013, property, plant and equipment consisted of the following: 2014 2013 (in thousands) Land improvements $ 103 $ 103 Building and improvements 16,196 16,016 Machinery and equipment 61,529 37,490 Furniture and fixtures 1,938 1,047 Computer equipment and software 4,712 3,563 Transportation equipment 270 188 84,748 58,407 Less accumulated depreciation and amortization (32,412 ) (28,145 ) 52,336 30,262 Construction in progress 11,371 139 Land 1,101 733 Property, plant and equipment, net $ 64,808 $ 31,134 For the years ended December 31, 2014, 2013 and 2012, depreciation expense of property, plant and equipment was $5.8 million $3.3 million and $2.9 million, respectively.

F. INTANGIBLE ASSETS

F. INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	At December 31, 2014 and 2013, intangible assets consisted of the following: 2014 Gross Amount Accumulated amortization Intangible assets, net (in thousands) Patents $ 4,968 $ (1,141 ) $ 3,827 Trademarks 14 (8 ) 6 Total intangible assets 4,982 (1,149 ) 3,833 2013 Gross Amount Accumulated amortization Intangible assets, net (in thousands) Patents $ 1,632 $ (784 ) $ 848 Trademarks 10 (7 ) 3 Total intangible assets 1,642 (791 ) 851 For the years ended December 31, 2014, 2013 and 2012, amortization expense for intangible assets, included in general and administrative expenses on the income statement, was $356,000 $68,000 and $60,000, respectively. The remaining weighted average amortization period for intangible assets is approximately 11 years. In 2014 the Company acquired an intangible asset from an unrelated company in the form of a license to various patents related to transceiver product technology. The weighted-average amortization period for the license is 10 years. At December 31, 2014, approximate amortization expense for intangible assets was as follows (in thousands): 2015 $ 356 2016 356 2017 356 2018 356 2019 356 thereafter 2,053 $ 3,833

G. FAIR VALUE OF FINANCIAL INST

G. FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2014
Fair Value Disclosures [Abstract]
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 as of December 31, 2014 (in thousands): Quoted prices in active markets for identical assets (Level 1) Significant other observable remaining inputs (Level 2) Significant unobservable inputs (Level 3) Total Assets: Cash and cash equivalents $ 32,175 $ – $ – $ 32,175 Restricted cash 509 – – 509 Short term investments 8,189 – – 8,189 Notes receivable – 980 – 980 Total assets $ 40,873 $ 980 $ – $ 41,853 Liabilities: Bank acceptance payable – $ 1,271 – $ 1,271 Total liabilities $ – $ 1,271 $ – $ 1,271 The following table presents a summary of the Company’s financial instruments measured at fair value on a recurring basis as of December 31, 2013 (in thousands): Quoted prices in active markets for identical assets (Level 1) Significant other observable remaining inputs (Level 2) Significant unobservable inputs (Level 3) Total Assets: Cash and cash equivalents $ 22,006 $ – $ – $ 22,006 Restricted cash 775 – – 775 Short term investments 7,970 – – 7,970 Total assets $ 30,751 $ – $ – $ 30,751 Liabilities: Bank acceptance payable – $ 2,347 – $ 2,347 Total liabilities $ – $ 2,347 $ – $ 2,347

H. NOTES PAYABLE AND LONG-TERM

H. NOTES PAYABLE AND LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2014
Debt Disclosure [Abstract]
NOTES PAYABLE AND LONG-TERM DEBT	Notes payable and long-term debt consisted of the following: December 31, 2013 2014 2013 (in thousands) Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 0.75% (floor rate: 4%), maturing November 15, 2014 – 3,076 Revolving line of credit with a U.S. bank up to $15,000 with interest at LIBOR plus 2.75%, maturing July 15, 2017 15,000 7,000 Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2.75%, maturing July 31, 2019 5,000 1,850 Revolving line of credit with a China bank up to $12,100 with interest at 108% of China Prime rate which ranged from 6.48% in 2013 – 7,053 Revolving line of credit with a China bank up to $3,250 with interest ranged from 0.73% to 1.73% with various maturity dates from February 2015 to March 2015 1,064 2,413 Revolving line of credit with a Taiwan bank up to $4,000 with interest at Taiwan Time Deposit Interest Rate Index plus 0.41% or LIBOR plus 1.28% maturing on May 24, 2015 3,536 3,795 Revolving line of credit with a Taiwan bank up to $4,000 with interest at Taiwan Time Deposit Interest Rate Index plus 0.41% or LIBOR plus 1.28% maturing on June 15, 2015 3,605 – Note payable to a finance company due in monthly installments with 4.95% interest, maturing July 30, 2015 443 921 Total 28,648 26,108 Less current portion (9,591 ) (17,185 ) Long term portion $ 19,057 $ 8,923 Bank Acceptance Payable Bank acceptance notes issued to vendors with a zero percent interest rate, a 30% guarantee deposit of $741, and maturity dates ranging from January 2015 to June 2015 1,271 2,347 The current portion of long-term debt is the amount payable within one year of the balance sheet date of December 31, 2014. Maturities of notes payable and long-term debt are as follows for the future years ending December 31(in thousands): 2015 $ 9,591 2016 1,132 2017 16,132 2018 1,132 2019 661 Total outstanding $ 28,648 The loan and security agreements with the U.S. banks require us to maintain certain financial covenants, including a minimum current ratio and minimum annual EBITDA. Collateral for the U.S. bank loans and line of credit includes substantially all of the assets of the Company. As of December 31, 2014, the Company was in compliance with all covenants contained in these agreements. On July 15, 2014, the Company renewed its revolving line of credit with a U.S. bank, increasing the line from $7.0 million to $15.0 million, and extending the maturity date to July 15, 2017. The interest rate on this line of credit is the LIBOR Borrowing Rate plus 2.75%. On July 31, 2014, the Company renewed its $5.0 million credit agreement with a U.S. bank, extending the maturity date to July 31, 2019. The interest rate on this line of credit is the LIBOR Borrowing Rate plus 2.75%. The Company, through its China subsidiary, established RMB and USD currency lines of credit for $12.1 million and $3.3 million, respectively, with a China bank as of December 31, 2014. The interest rate for the RMB line of credit is 108% of the China prime rate. The interest rate for the USD line of credit ranged from 0.73% to 1.73%. These credit lines are revolving lines that are renewable by its anniversary. Collateral for the loans includes the land use rights, building and equipment located in China. The Company extended its equipment financing agreement of $1.0 million with a Taiwan bank in 2013. The financing agreement required equipment collateral. The agreement requires monthly installment payments over 24 months and ends in July 2015. The financing agreement bears interest at the rate of 4.95%. The Company, through its Taiwan branch, established two $4.0 million revolving lines of credit with Taiwan banks in 2013 totaling $8.0 million. The financing agreements require collateral of its time deposits of $8.0 million that is included in short-term investment. The two revolving lines of credit bear interest at a rate (which adjusts quarterly) equal to the Taiwan Time Deposit Interest Rate Index plus 0.41%, currently 1.78%, and at a base rate equal to TAIBOR plus 1%, currently 1.75%. As of December 31, 2014, $7.1 million was outstanding under these credit facilities. As of December 31, 2014, the Company had $14.3 million of unused borrowing capacity.

I. SHORT-TERM LOAN WITH SHAREHO

I. SHORT-TERM LOAN WITH SHAREHOLDERS	12 Months Ended
	Dec. 31, 2014
I. Short-term Loan With Shareholders
SHORT-TERM LOAN WITH SHAREHOLDERS	In 2010, the Company borrowed $3.2 million from 12 shareholders under the terms of unsecured promissory note agreements. These notes bore an interest rate of 6% with maturity dates of 18 months from the effective dates of the notes originally maturing on October 21, 2011, but extended to December 31, 2012. The note holders were also issued warrants that expire by April 23, 2020, to purchase 51,200 shares of the Company’s Series F Preferred Stock, with an exercise price of $7.50 per share. As part of the loan maturity date extension, additional warrants to purchase 6,081 shares of the Company’s Series G Preferred Stock were issued in 2011 with an exercise price of $18.00 per share that expire on April 23, 2020. In 2011, two of the note holders converted their respective notes into shares of Series G Preferred Stock and four of the notes were repaid in full. In 2012, five of the remaining note holders converted their respective notes into shares of Series G Preferred Stock and one of the notes was repaid. As of December 31, 2012, all principal and interest related to these notes had been fully satisfied. During the year ended December 31, 2013, warrants related to these loans were exercised for 64,219 shares of common stock.

J. ACCRUED LIABILITIES

J. ACCRUED LIABILITIES	12 Months Ended
	Dec. 31, 2014
Payables and Accruals [Abstract]
ACCRUED LIABILITIES	Accrued liabilities consisted of the following as of December 31: 2014 2013 (in thousands) Accrued payroll $ 3,662 $ 2,279 Accrued employee benefits 808 489 Accrued income taxes 52 – Accrued state and local taxes 330 270 Advance payments 528 128 Accrued product warranty 247 – Accrued other 1,313 1,349 $ 6,940 $ 4,515

K. OTHER INCOME AND EXPENSE

K. OTHER INCOME AND EXPENSE	12 Months Ended
	Dec. 31, 2014
Other income (expense)
OTHER INCOME AND EXPENSE	Other income and expense consisted of the following as of December 31: 2014 2013 2012 (in thousands) Unrealized foreign exchange gain (loss) $ (1,299 ) $ (342 ) $ 217 Realized foreign exchange gain (loss) 297 (70 ) (79 ) Government subsidy income 271 322 92 Other non-operating gain (loss) 44 4 38 Gain (loss) on disposal of assets (12 ) 8 (37 ) $ (699 ) $ (78) $ 231

L. INCOME TAXES

L. INCOME TAXES	12 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
INCOME TAXES	The sources of our income or loss from operations before income taxes were as follows: Year ended December 31, 2014 2013 2012 (in thousands) Domestic $ 1,226 $ (684 ) $ (3,077 ) Foreign (loss) income 3,256 (722 ) 2,132 Total income (loss) $ 4,482 $ (1,406 ) $ (945 ) The provision for income tax expense for the years ended December 31, is as follows: 2014 2013 2012 Current: (in thousands) Federal $ 193 $ – $ – State 6 – – Foreign – – – Total $ 199 $ – $ – Deferred: Federal $ – $ – $ – State – – – Foreign – – – Total $ – $ – $ – Income tax expense $ 199 $ – $ – Deferred income tax assets and liabilities result principally from net operating losses, different methods of recognizing depreciation, reserve for doubtful accounts, inventory reserves for obsolescence and accrued vacation, together with timing differences between book and tax reporting. At December 31, the net deferred tax assets and liabilities are comprised of the following approximate amounts: 2014 2013 (in thousands) NOL carryforward $ 12,266 $ 14,908 Inventory reserves 676 489 AMT credit 224 – Unrealized gains and losses 470 – Stock compensation 550 624 Fixed assets and intangibles (1,537 ) (1,631 ) Impairment loss – (615 ) Other 25 335 12,674 14,110 Less valuation allowance (12,674 ) (14,110 ) Deferred tax assets, net $ – $ – The valuation allowance was established to reduce the deferred tax asset for the amount that will likely not be realized. This reduction is primarily necessary due to the uncertainty of the Company’s ability to utilize all of the net operating loss carry forwards. The valuation allowance decreased by $1.5 million in 2014 and decreased by $7.5 million in 2013. The decrease in 2014 was primarily the result of current year changes in deferred income tax assets and liabilities. The 2013 decrease was primarily due to a reduction of the deferred tax asset for our U.S. net operating losses, as a consequence of the changes in ownership discussed below. The Company has a U.S. net operating loss carry forward of approximately $56.5 million, which expires between 2020 and 2032. The Company has a net operating loss carryforward from its China operations of approximately $5.7 million, which expires between 2015 and 2019. Utilization of net operating losses and tax credit carry forwards are subject to a substantial annual limitation due to the ownership change limitations set forth in Internal Revenue Code Section 382. Based upon analysis performed with respect to Section 382 of the Internal Revenue Code, approximately $21.6 million of the total available U.S. net operating loss carry forwards and $0.3 million of U.S. research and development credits will not be available for utilization as an offset to taxable income in future periods. Because of changes in control that are deemed to have occurred under Section 382, the Company’s net operating loss carry forward available in calendar year 2014 to offset taxable income was limited to $40.7 million, with an additional $3.4 million becoming available between 2015 and 2025. The additional $3.4 million is subject to an annual limitation of the $0.3 million. Additional ownership changes could result in the expiration of the net operating loss and tax credit carryforward before utilization. The Company has approximately $0.6 million of windfall tax benefits from previous stock option exercises that have not been recognized as of December 31, 2014. This amount will not be recognized until the deduction would reduce our U.S. income taxes payable. At such time, the amount will be recorded as an increase in paid-in-capital. The Company uses ASC 740 ordering when determining when excess tax benefits have been realized. The Company files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. As of December 31, 2014, the Company’s U.S. and China federal returns for the year ended December 31, 2011 through the current period are still open to examination. In addition, all of the net operating losses and research and development credit carry forwards that may be utilized in future years are still subject to examination. With few exceptions, as of December 31, 2014, the Company is no longer subject to examinations by tax authorities in Taiwan for the taxable years before 2013. The Company is not currently subject to U.S. federal, state and local, or non-U.S. income tax examinations by any tax authorities. A reconciliation of the U.S. federal income tax rate of 34% for the years ended December 31, to the Company’s effective income tax rate follows: 2014 2013 2012 (in thousands) Expected (benefit) taxes $ 1,524 $ (467 ) $ (293 ) Non-deductible expenses 138 619 (760 ) Foreign rate differences 295 – – Increase (decrease) in valuation allowance (1,729 ) (7,533 ) 1,545 Section 382 limitation – 7,423 – Other (29 ) (42 ) (492 ) Tax expense $ 199 $ – $ – The Company’s wholly owned subsidiary, Prime World is a tax-exempt entity under the Income Tax Code of the British Virgin Islands. The Company’s wholly owned subsidiary, Global Technology, Inc., has enjoyed preferential tax concessions in China as a national high-tech enterprise. In March 2007, China’s parliament enacted the PRC Enterprise Income Tax Law, or the EIT Law, under which, effective January 1, 2008, China adopted a uniform income tax rate of 25% for all enterprises including foreign invested enterprises. Global Technology, Inc. was recognized as a National high-tech enterprise in 2008 and was entitled to a 15% tax rate for a three year period from November 2008 to November 2011. In 2011, Global Technology, Inc. renewed its National high-tech enterprise certificate and was therefore extended its three year tax preferential status from November 2011 to November 2014. An application to extend the tax preferential status to September 2017 has been approved by the Chinese government. As of December 31, 2014 and December 31, 2013, the total amount of unrecognized tax benefit was $1.6 million and $2.2 million, respectively. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: 2014 2013 2012 (in thousands) Unrecognized tax benefits — January 1 $ 2,200 $ 0 $ 0 Gross increases — tax positions in prior period 1,659 2,200 – Gross decreases — tax positions in prior period (2,200 ) – – Gross increases — tax positions in current period – – – Settlements – – – Lapse of statute of limitations – – – Unrecognized tax benefits — December 31 $ 1,659 $ 2,200 $ 0 As of December 31, 2014, we had $1.6 million of unrecognized tax benefits related to US tax benefits recognized for prior branch losses and research and development credits. As of December 31, 2013, we had $2.2 million of unrecognized tax benefits related to US tax benefits recognized for prior year branch losses. If recognized, there would be no impact our effective tax rate as a result of the full valuation allowance previously recognized. We believe that it is reasonably possible that $0.3 million of our remaining unrecognized tax positions may be recognized by the end of 2015. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. Related to the unrecognized tax benefits noted above, it has not accrued penalties or interest during 2014 as a result of net operating losses. During 2013, the Company also accrued no penalties or interest.

M. SHARE-BASED COMPENSATION

M. SHARE-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION	Equity Plans The Company’s board of directors and stockholders approved the following equity plans: • the 1998 Share Incentive Plan • the 2000 Share Incentive Plan • the 2004 Share Incentive Plan • the 2006 Share Incentive Plan • the 2013 Equity Incentive Plan (“2013 Plan”) The Company issues stock options to employees, consultants and non-employee directors. Stock option awards generally vest over a four year period and have a maximum term of ten years. Stock options under these plans have been granted with an exercise price equal to the fair market value on the date of the grant. Nonqualified and Incentive Stock Options and restrictive stock units (“RSUs”) may be granted from these plans. Prior to the Company’s initial public offering, the fair market value of the Company’s stock had been historically determined by the board of directors and from time to time with the assistance of third party valuation specialists. Stock Options Options have been granted to the Company’s employees under the five incentive plans and generally become exercisable as to 25% of the shares on the first anniversary date following the date of grant and semi-annually thereafter. All options expire ten years after the date of grant. The following is a summary of option activity: Number of shares Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands, except price data) Outstanding, January 1, 2012 377 $ 5.88 Granted 88 6.00 Exercised (1 ) 6.29 (4 ) Forfeited (19 ) 6.00 Expired (26 ) 5.30 Outstanding, December 31, 2012 419 5.94 Granted 1,099 9.21 Exercised (29 ) 5.87 178 Forfeited (16 ) 7.10 Expired (5 ) 5.99 Outstanding, December 31, 2013 1,468 8.38 4.17 9,731 Granted 108 13.84 7.24 – Exercised (103 ) 6.22 2.57 1,476 Forfeited (49 ) 8.23 5.43 628 Expired (1 ) 6.21 2.21 11 Outstanding, December 31, 2014 1,423 $ 8.96 4.48 8.097 $ 3,486 Exercisable, December 31, 2014 537 $ 7.68 3.24 7.319 $ 1,899 Vested and expected to vest 1,397 $ 8.94 4.46 8.087 $ 3,444 The following table summarizes information about the options outstanding at December 31, 2014: Range of exercise prices Number of shares outstanding Weighted average remaining contractual life (years) Weighted average exercise price Number of shares exercisable Weighted average remaining contractual life (years) Weighted average exercise price (in thousands, except price data) $6.00 - $6.75 274 6.047 $ 6.00 243 5.906 $ 6.00 $6.76 - $8.25 298 8.045 7.50 106 8.039 7.50 $8.26 - $9.48 3 8.279 9.00 1 8.279 9.00 $9.49 - $11.55 747 8.736 9.96 187 8.736 9.96 $11.56 - $13.49 1 8.808 13.13 – 8.808 13.13 $13.50 - $13.84 100 9.080 13.84 – – – Total 1,423 8.097 $ 8.96 537 7.319 $ 7.68 As of December 31, 2014, there was approximately $3.9 million of unrecognized stock option expense, net of estimated forfeitures, which is expected to be recognized over 2.61 years. Restricted Stock Units The following is a summary of RSU activity: Number of shares Weighted Average Fair Value (in thousands, except price data) Outstanding at January 1, 2013 – – Granted 33 $ 10.00 Exercised/Released – Cancelled/Forfeited – Outstanding at December 31, 2013 33 $ 10.00 Granted 25 $ 18.45 Exercised/Released (33 ) $ 10.57 Cancelled/Forfeited (4 ) $ 18.20 Outstanding at December 31, 2014 21 $ 18.22 The aggregate intrinsic value of RSUs outstanding at December 31, 2014 was $0.2 million. Unrecognized compensation expense related to these RSU’s at December 31, 2014 was $0.1 million. This expense is expected to be recognized over 1.48 years. Share-Based Compensation The Company recognizes compensation expense on a straight-line basis over the applicable vesting term of the award. The Company estimates the fair value of employee stock options at the date of the grant using the Black-Scholes option-pricing model with the following assumptions: 2014 2013 2012 Expected volatility 52% 52 to 70% 70% Risk-free interest rate 1.89% 0.96% to 2.97% 1.01% Expected term (years) 6.25 6.25 6.25 Expected dividend yield – – – Estimated forfeitures 7.5% 7.5% 10% As there had been no market for the Company’s common stock prior to its initial public offering, the expected volatility for options granted to date 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 the 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 are based on historical experience and future work force projections. Employee share-based compensation expenses recognized for the years ended December 31, were as follows: Share-Based compensation - by expense type 2014 2013 2012 (in thousands) Cost of goods sold $ 88 $ 56 $ 7 Research and development 115 53 8 Sales and marketing 98 52 9 General and administrative 1,760 908 137 Total share-based compensation expense $ 2,061 $ 1,069 $ 161 Share-Based compensation - by award type 2014 2013 2012 (in thousands) Employee stock options $ 1,660 $ 793 $ 140 Restricted stock units 385 220 – Warrants 16 56 21 Total share-based compensation expense $ 2,061 $ 1,069 $ 161

N. STOCKHOLDERS' EQUITY

N. STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2014
Equity [Abstract]
STOCKHOLDERS' EQUITY	Common Stock The Company has authorized the issuance of up to 45,000,000 shares of common stock, all of which have been designated voting common stock, under its Amended and Restated Certificate of Incorporation. Convertible Preferred Stock The Company has authorized the issuance of up to 5,000,000 shares of preferred stock under the Company’s Amended and Restated Certificate of Incorporation. Warrants As of December 31, 2014, the Company had no outstanding warrants to purchase common or preferred stock. Public Offerings of Common Stock On September 25, 2013, our registration statement on Form S-1 for our initial public offering was declared effective by the Securities and Exchange Commission. The offering commenced on September 26, and 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 $31.5 million, net of expenses and underwriting discounts and commissions. The Company’s initial public offering closed on October 1, 2013. On March 19, 2014, the Company sold 2.0 million shares of its common stock in a secondary offering at a price of $24.25 per share, providing proceeds of $45.7 million, net of expenses and underwriting discounts and commissions. The Company’s sale of 1.6 million shares in the secondary offering closed on March 25, 2014 and the Company’s sale of an additional 0.4 million shares as a result of the underwriters’ exercise of their option to purchase additional shares closed on March 28, 2014.

O. SEGMENT AND GEOGRAPHIC INFOR

O. SEGMENT AND GEOGRAPHIC INFORMATION	12 Months Ended
	Dec. 31, 2014
Segment Reporting [Abstract]
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 product manufacturing plants. Long-lived assets in the tables below comprise only property, plant, equipment and intangible assets (in thousands): For the year ended December 31, 2014 2013 2012 Revenues: (in thousands) United States $ 30,723 $ 14,705 $ 12,192 Taiwan 77,680 31,863 15,200 China 22,046 31,856 36,029 $ 130,449 $ 78,424 $ 63,421 As of December 31, 2014 2013 2012 Long-lived assets: (in thousands) United States $ 15,875 $ 9,415 $ 8,966 Taiwan 35,688 7,192 3,719 China 18,008 16,337 13,595 $ 69,571 $ 32,944 $ 26,280 The Company serves three primary markets, the CATV, internet data center and FTTH markets. Of the Company’s total revenues in 2014, the Company earned $47.4 million, or 36.6%, from the CATV market, $64.5 million, or 49.4%, from the internet data center market, $13.6 million, or 10.4%, from the FTTH market, and $5.0 million, or 3.9%, from other markets. Of the Company’s total revenues in 2013, the Company earned $47.4 million, or 60.4%, from the CATV market, $19.4 million, or 24.7%, from the internet data center market, $4.4 million, or 5.6% from the FTTH market, and $7.3 million, or 9.3% from other markets.

P. MAJOR CUSTOMERS

P. MAJOR CUSTOMERS	12 Months Ended
	Dec. 31, 2014
P. Major Customers
MAJOR CUSTOMERS	The Company currently derives its revenues from customers in the United States and throughout the rest of the world. Generally, the Company does not require deposits or other collateral to support customer receivables. The Company performs an initial and periodic credit evaluation of its customers and maintains an allowance for uncollectible accounts for potential uncollectible accounts. The historical amount of losses on uncollectible accounts has been within the Company’s estimates. The Company generates much of its revenue from a limited number of customers. In 2014, 2013 and 2012, its top ten customers represented 87.2%, 76.9% and 77.6% of its revenue, respectively. In 2014, Amazon represented 45.8% of its revenue, Cisco Systems, Inc. represented 8.9% of its revenue and a leading internet service provider represented 6.7% of its total revenue. The five largest receivable balances for customers represented an aggregate of 70%, and 66% of total accounts receivable at December 31, 2014 and 2013, respectively.

Q. EMPLOYEE BENEFIT PLANS

Q. EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLANS	On August 1, 2000, the Company established a 401(k) profit sharing plan covering employees meeting certain age and service requirements. The plan provides for discretionary Company contributions to be allocated based on the employee’s eligible contributions. The Company made a contribution of $0.2 million to the 401(k) plan for the year ended December 31, 2014, and no contributions for the years ended December 31, 2013 and 2012, respectively. Employees of Global participate in a state-mandated social security program in China. Under this program, pension costs are recorded on the basis of required monthly contributions to employees’ individual accounts during their service periods. Under the regulations of the People’s Republic of China, Global is required to make fixed contributions to a fund, which is under the administration of the local labor departments. Employees of AOI—Taiwan participates in a pension program under the Taiwan Labor Pension Act. Pension expense for Global was $390,000, $384,000 and $244,000 in 2014, 2013 and 2012, respectively. Pension expense for AOI—Taiwan was $291,000, $203,000 and $168,000 in 2014, 2013 and 2012, respectively.

R. COMMITMENTS AND CONTINGENCIE

R. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Commitments The Company conducts part of its operations from leased facilities and also leases equipment. Rent expense was $0.8 million, $0.6 million and $0.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. At December 31, 2014, the approximate minimum rental commitments under noncancellable leases in excess of one year that expire at varying dates through 2029 were as follows: Year ending December 31, Amount (in thousands) 2015 $ 926 2016 860 2017 800 2018 882 2019 981 2020-2029 10,055 $ 14,504 Employment Agreements and Consultancy Agreements The Company has entered into employment and indemnification agreements with three executive officers. These agreements provide that if their employment is terminated as a result of a change of control of the Company, or if their employment is terminated for certain other reasons set forth in the agreements, the Company will be required to pay a severance payment in an amount equal to their annual base salary, and other additional compensation due under the terms of the agreements. The Company has also entered into employment and indemnification agreements with two other executive officers. These agreements provide that if their employment is terminated as a result of a change of control of the Company, the Company will be required to pay a severance payment in an amount equal to their six months of their annual base salary, and other additional compensation due under the terms of the agreements. In 2012, the Company entered into consulting agreements with two of its shareholders and board members for a period of one year from June 2012 to June 2013. Each agreement provides that a consulting fee will be paid to the consultant within 30 days after submission of the invoice by the consultant. The Company incurred $35,000 and $41,000 of consulting service fees to these consultants in 2013 and 2012, respectively. Contingencies The Company may be party to litigation, claims or assessments in the ordinary course of business. Management is not aware of any of these matters that would have a material effect on the financial condition, results of operations or cash flows of the Company.

S. RELATED PARTY TRANSACTIONS

S. RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2014
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	The Company had the following related parties’ activities with its shareholders: For the year ended December 31, 2014 2013 2012 (in thousands) Interest expense $ – $ – $ 36 Consulting service fees – 35 41

T. SUBSEQUENT EVENTS

T. SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2014
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	We have evaluated subsequent events through the date the financial statements were available to be issued. On January 6, 2015, the Company entered into a Credit Facility Agreement (the “Credit Facility”) with CTBC Bank Co. Ltd. in Taipei, Taiwan (the “Bank”) for 90,000,000.00 NTD (New Taiwan Dollars), one year revolving credit facility. Borrowings under the Credit Facility will be used for general corporate purposes. The Company’s obligations under the Credit Facility are unsecured. Borrowings under the Credit Facility will bear interest at a rate based on the Bank’s corporate interest rate swap index plus 1.5%, adjusted monthly. As of the execution of the Credit Facility the Bank’s corporate interest rate swap index is 0.91%. The Credit Facility contains representations and warranties, affirmative, restrictive and financial covenants, and events of default (applicable to the Company) which are customary for credit facilities of this type. On January 26, 2015, the Company entered into a construction loan agreement with East West Bank for up to $22.0 million dollars to finance the construction of its campus expansion plan in Sugar Land, Texas. The loan will have a fifteen month draw down period with monthly interest payments commencing on February 26, 2015 and ending April 26, 2016. Thereafter, the entire outstanding principal balance shall be converted to a sixty-nine month term loan with principal and interest payments due monthly amortized over three hundred months. The first principal and interest payment is due on May 26, 2016 and will continue the same day of each month thereafter. The final principal and interest payment is due on January 26, 2022 and will include all unpaid principal and all accrued and unpaid interest. The Company may pay without penalty all or a portion of the amount owed earlier than due. Under the loan agreement, the loan bears interest, at an annual rate based on the one-month LIBOR Borrowing Rate plus 2.75%. In connection with the Company’s campus expansion plan, the Company finalized the terms of its construction agreement with Skanska USA Building Inc. on January 19, 2015.

U. SELECTED QUARTERLY FINANCIAL

U. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)	The following tables set forth a summary of the Company’s quarterly financial information for each of the four quarters for the years ended December 31, 2014 and 2013. First Second Third Fourth Year ended December 31, 2014 Quarter Quarter Quarter Quarter Revenue $ 24,859 $ 32,650 $ 36,549 $ 36,391 Cost of goods sold 16,206 21,462 24,403 24,132 Gross profit $ 8,653 $ 11,188 $ 12,146 $ 12,259 Gross margin 34.8% 34.3% 33.2% 33.7% Operating expenses: Research and development $ 3,546 $ 4,009 $ 4,194 $ 4,221 Sales and marketing 1,333 1,497 1,622 1,591 General and administrative 3,554 3,952 4,458 5,131 Total operating expenses $ 8,433 $ 9,458 $ 10,274 $ 10,943 Income from operations $ 220 $ 1,730 $ 1,872 $ 1,316 Interest and other income (expense), net (110 ) 274 (218 ) (602 ) Net income before taxes $ 110 $ 2,004 $ 1,654 $ 714 Income taxes (25 ) (85 ) (77 ) (12 ) Net income $ 85 $ 1,919 $ 1,577 $ 702 Net income per share—basic $ 0.01 $ 0.13 $ 0.11 $ 0.05 Net income per share—diluted $ 0.01 $ 0.12 $ 0.10 $ 0.05 First Second Third Fourth Year ended December 31, 2013 Quarter Quarter Quarter Quarter Revenue $ 14,317 $ 19,597 $ 20,766 $ 23,744 Cost of goods sold 9,732 14,150 14,445 17,068 Gross profit $ 4,585 $ 5,447 $ 6,321 $ 6,676 Gross margin 32.0% 27.8% 30.4% 28.1% Operating expenses: Research and development $ 2,004 $ 1,898 $ 2,211 $ 2,400 Sales and marketing 907 1,053 1,034 1,198 General and administrative 2,374 2,447 2,436 3,375 Total operating expenses $ 5,285 $ 5,398 $ 5,681 $ 6,973 Income (loss) from operations $ (700 ) $ 49 $ 640 $ (297 ) Interest and other income (expense), net (294 ) (331 ) (250 ) (223 ) Net income (loss) $ (994 ) $ (282 ) $ 390 $ (520 ) Net income (loss) per share—basic $ (3.74 ) $ (1.04 ) $ 0.04 $ (0.04 ) Net income (loss) per share—diluted $ (3.74 ) $ (1.04 ) $ 0.04 $ (0.04 )

B. SUMMARY OF SIGNIFICANT ACC30

B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
Basis of Presentation	The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries and are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation.
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 relate to, among other things, allowance for doubtful accounts, inventory reserve, share-based compensation expense, estimated useful lives of property and equipment, and taxes.
Foreign Currency Translation	All assets and liabilities of foreign subsidiaries are translated into U.S. dollars at the exchange rate as of the balance sheet date. Revenue and expense accounts are translated at weighted-average rates for the reporting period. Translation adjustments do not impact the results of operations and are reported as a separate component of stockholders’ equity. Foreign currency transaction gains and losses are included in the consolidated statements of operations.
Fair Value	The carrying value of cash, cash equivalents and short-term investments, accounts receivable, accounts payable, and note receivable approximate their historical fair values due to their short-term maturities. The carrying value of the debt approximates its fair value due to the short-term nature of the debt since it renews frequently at current interest rates. Management believes that the interest rates in effect at each year end represent the current market rates for similar borrowings. The fair value measurement standard defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard characterizes inputs used in determining fair value according to a hierarchy that prioritized inputs based on the degree to which they are observable. The three levels of the fair value hierarchy are as follows: Level 1—Inputs represent quoted prices in active markets for identical assets or liabilities. Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3—Inputs that are not observable from objective sources, such as management’s internally developed assumptions used in pricing an asset or liability. Assets and liabilities that are required to be fair valued on a recurring basis include money market funds, marketable securities, equity instruments and contingent consideration. Money market funds are valued with Level 1 inputs, using quoted market prices, and are included in cash and cash equivalents on the Company’s consolidated balance sheets.
Cash and Cash Equivalents	The Company considers all highly liquid securities with an original maturity of ninety days or less from the date of purchase to be cash equivalents. Cash in foreign accounts was approximately $4.6 million and $6.6 million at December 31, 2014 and 2013, respectively. The Company maintains cash and cash equivalents at U.S. financial institutions for which the combined account balances in individual institutions may exceed Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. As of December 31, 2014, approximately $25.4 million of U.S. deposits were not covered by FDIC insurance. The Company has not experienced any losses and believes it is not exposed to any significant risk with such accounts.
Restricted Cash/Compensating Balances	The Company is required to maintain a compensation deposit equal to 30% of its bank acceptance notes to vendors with a China bank. The Company’s Taiwan subsidiary also uses time deposits for customs guarantees. As of December 31, 2014 and 2013, the amount of restricted cash was $0.5 million and $0.8 million, respectively.
Short-Term Investments	The Company invests its excess cash in bank certificates of deposit. As of December 31, 2014, the Company invested $8.2 million in certificates of deposit in RMB currencies with Taiwan banks. The maturity dates range from 6 months to 12 months. The Company arranged a revolving line of credit agreement with the same Taiwan bank by pledging 100% of its certificates of deposit. As of December 31, 2014, the pledged certificate of deposit for such arrangement amount is $8.2 million.
Accounts Receivable/Allowance for Doubtful Accounts	The Company carries its accounts receivable at the net amount that it estimates to be collectible. An allowance for uncollectable accounts is maintained through a charge against operations. The allowance is determined by management review of outstanding amounts per customer, historical payments and the aging of accounts.
Bank Acceptance Receivable	The Company carries its bank acceptance receivables at face value or discounted value if they are not interest bearing. The maturity date of the receivables are all within one year of the original issuance date and are carried at face value.
Concentration of Credit Risk and Significant Customers	10. Concentration of Credit Risk and Significant Customers Financial instruments which potentially subject the Company to concentrations of credit risk include cash, cash equivalents and accounts receivable. The Company places all cash and cash equivalents with high-credit quality financial institutions. The Company performs ongoing credit valuations of its customers’ financial condition whenever deemed necessary and generally does not require deposits or collateral to support customer receivables. The historical amount of losses on uncollectible accounts has been within the Company’s estimates. The Company generates much of its revenue from a limited number of customers. In 2014, 2013 and 2012, its top ten customers represented 87.2%, 76.9% and 77.6% of its revenue, respectively. In 2014, Amazon represented 45.8% of its revenue, Cisco Systems, Inc. represented 8.9% of its revenue and a leading internet service provider represented 6.7% of its total revenue. The five largest receivable balances for customers represented an aggregate of 70%, and 66% of total accounts receivable at December 31, 2014 and 2013, respectively.
Inventories	Inventories are stated at the lower of cost (average-cost method) or market. Work in process and finished goods includes materials, labor and allocated overhead. The Company assesses the valuation of its inventory on a periodic basis and provides write-offs for the value of estimated excess and obsolete inventory based on estimates of future demand.
Property, Plant and Equipment	Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. The Company calculates depreciation using the straight-line method over the following estimated useful lives: Useful lives Buildings 20 - 40 years Land improvements 10 years Machinery and equipment 3 - 20 years Furniture and fixtures 1 - 8 years Computer equipment and software 3 - 7 years Leasehold improvements The shorter of the life of the applicable lease or the useful life of the improvement Transportation equipment 5 years Major improvements are capitalized and expenditures for maintenance and repairs are expensed as incurred. Construction in progress represents property, plant and equipment under construction or being installed. Costs include original cost, installation, construction and other direct costs which include interest on borrowings used to finance the asset. Construction in progress is transferred to the appropriate fixed asset account and depreciation commences when the asset has been substantially completed and placed in service. Land use rights allow the Company rights for 50 years to certain land in Ningbo, China on which the Company built a facility that included office space, manufacturing operations and employee dormitories. The land use rights are recorded at cost and are amortized on the straight-line basis over the useful life of the related contract. The land use rights expire on October 7, 2054.
Intangible Assets	Intangible assets consist of intellectual property that is stated at cost less accumulated amortization. As of December 31, 2014, the Company had 152 total patents issued. The costs incurred to obtain such patents have been capitalized and are being amortized over an estimated life of 20 years. The Company periodically evaluates its intangible assets to determine whether events or changes in circumstances indicate that a patent or trademark may not be applicable to the Company’s current products or is no longer in use. If such a determination is made, the intangible asset is impaired and the remaining value of the patent or trademark will be expensed at that time.
Impairment of Long-Lived Assets	The Company accounts for impairment of long-lived assets in accordance with Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment The measurement for such an impairment loss is then based on the fair value of the asset as determined by the appraisals.
Comprehensive Income (Loss)	ASC 220, Comprehensive Income
Share-based Compensation	The Company accounts for share-based compensation in accordance with the provisions of ASC 718, Compensation—Stock Compensation
Revenue Recognition	The Company derives revenue from the manufacture and sale of fiber optic networking products. Revenue recognition follows the criteria of ASC 605, Revenue Recognition
Product Warranty	19 Product Warranty The Company generally offers a one-year limited warranty for its products but it can extend for longer periods of three to five years for certain products sold to certain customers. The Company estimates the costs that may be incurred under its basic limited warranty and records a liability for the amount of such costs at the time when product defective occurs. Factors that affect the Company’s warranty liability include the historical and anticipated rates of warranty claims and cost to repair. While we believe that our warranty accrual is adequate, our actual warranty costs may exceed the accrual, cost of sales will increase in the future. As of December 31, 2014 and 2013, the amount of accrued warranty was $247,000 and $0, respectively.
Advertising Costs	Advertising costs are charged to operations as incurred and amounted to approximately $100,000, $121,000 and $80,000 for the years ended December 31, 2014, 2013 and 2012, respectively.
Research and Development	Research and development costs are charged to operations as incurred. The Company receives reimbursement for certain development costs, which are capitalized when incurred, up to the reimbursable amount.
Income Taxes	The Company accounts for income taxes in accordance with the provisions of ASC 740, Income Taxes. The liability method is used to account for deferred income taxes. Under the liability method, deferred tax assets and liabilities are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The ability to realize deferred tax assets is evaluated annually and a valuation allowance is provided if it is unlikely that the deferred tax assets will not give rise to future benefits in our tax returns The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, it recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statement of operations. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheet.
New Accounting Standards Adopted in this Report	23. New Accounting Standards Adopted in this Report In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers
Reverse Stock Split	24. Reverse Stock Split In May 1, 2013, the Company’s board of directors approved, and holders of the requisite number of outstanding shares of our capital stock approved on May 21, 2013, an amendment to our certificate of incorporation to effect a reverse stock split with respect to our securities. Based on the prior board and stockholder approvals, on August 16, 2013 the Company’s board of directors determined that the ratio for the reverse stock split would be 30-to-one. The reverse stock split was effected on August 20, 2013, the date that the amendment to our certificate of incorporation was filed with the Delaware Secretary of State. The reverse stock split is reflected in the accompanying consolidated financial statements and related notes on a retroactive basis for all periods presented.

B. SUMMARY OF SIGNIFICANT ACC31

B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
Property, Plant and Equipment	Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. The Company calculates depreciation using the straight-line method over the following estimated useful lives: Useful lives Buildings 20 - 40 years Land improvements 10 years Machinery and equipment 3 - 20 years Furniture and fixtures 1 - 8 years Computer equipment and software 3 - 7 years Leasehold improvements The shorter of the life of the applicable lease or the useful life of the improvement Transportation equipment 5 years

C. EARNINGS PER SHARE (Tables)

C. EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2014
Earnings Per Share [Abstract]
Computation of basic and diluted net loss per share	The following table presents the calculation of basic and diluted EPS: Year ended December 31, 2014 2013 2012 (in thousands, except per share data) Numerator: Net income (loss) $ 4,283 $ (1,406 ) $ (945 ) Denominator: Weighted average shares used to compute net income (loss) per share Basic 14,307 9,965 266 Effective of dilutive options and warrants 880 – – Diluted 15,187 9,965 266 Net income (loss) per share Basic $ 0.30 $ (0.14 ) $ (3.56 ) Diluted $ 0.28 $ (0.14 ) $ (3.56 )
Schedule of potentially dilutive securites	The following potentially dilutive securities were excluded from the computation of diluted net loss per share as their effect would have been antidilutive: 2014 2013 2012 (in thousands) Employee stock options – 595 419 Preferred stock warrants – 33 96 Restricted stock units – 33 – – 661 515

D. INVENTORIES (Tables)

D. INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2014
Inventory Disclosure [Abstract]
Schedule of inventories	At December 31, 2014 and 2013, inventories consisted of the following: 2014 2013 (in thousands) Raw materials $ 16,243 $ 8,832 Work in process 13,379 8,708 Finished goods 4,158 2,068 $ 33,780 $ 19,608

E. PROPERTY, PLANT AND EQUIPM34

E. PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	At December 31, 2014 and 2013, property, plant and equipment consisted of the following: 2014 2013 (in thousands) Land improvements $ 103 $ 103 Building and improvements 16,196 16,016 Machinery and equipment 61,529 37,490 Furniture and fixtures 1,938 1,047 Computer equipment and software 4,712 3,563 Transportation equipment 270 188 84,748 58,407 Less accumulated depreciation and amortization (32,412 ) (28,145 ) 52,336 30,262 Construction in progress 11,371 139 Land 1,101 733 Property, plant and equipment, net $ 64,808 $ 31,134

F. INTANGIBLE ASSETS (Tables)

F. INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	At December 31, 2014 and 2013, intangible assets consisted of the following: 2014 Gross Amount Accumulated amortization Intangible assets, net (in thousands) Patents $ 4,968 $ (1,141 ) $ 3,827 Trademarks 14 (8 ) 6 Total intangible assets 4,982 (1,149 ) 3,833 2013 Gross Amount Accumulated amortization Intangible assets, net (in thousands) Patents $ 1,632 $ (784 ) $ 848 Trademarks 10 (7 ) 3 Total intangible assets 1,642 (791 ) 851
Amortization expense for intangible assets	At December 31, 2014, approximate amortization expense for intangible assets was as follows (in thousands): 2015 $ 356 2016 356 2017 356 2018 356 2019 356 thereafter 2,053 $ 3,833

G. FAIR VALUE OF FINANCIAL IN36

G. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Schedule of assets and liabilities at fair value	The following table presents a summary of the Company’s financial instruments measured at fair value on a recurring basis as of December 31, 2014 (in thousands): Quoted prices in active markets for identical assets (Level 1) Significant other observable remaining inputs (Level 2) Significant unobservable inputs (Level 3) Total Assets: Cash and cash equivalents $ 32,175 $ – $ – $ 32,175 Restricted cash 509 – – 509 Short term investments 8,189 – – 8,189 Notes receivable – 980 – 980 Total assets $ 40,873 $ 980 $ – $ 41,853 Liabilities: Bank acceptance payable – $ 1,271 – $ 1,271 Total liabilities $ – $ 1,271 $ – $ 1,271 The following table presents a summary of the Company’s financial instruments measured at fair value on a recurring basis as of December 31, 2013 (in thousands): Quoted prices in active markets for identical assets (Level 1) Significant other observable remaining inputs (Level 2) Significant unobservable inputs (Level 3) Total Assets: Cash and cash equivalents $ 22,006 $ – $ – $ 22,006 Restricted cash 775 – – 775 Short term investments 7,970 – – 7,970 Total assets $ 30,751 $ – $ – $ 30,751 Liabilities: Bank acceptance payable – $ 2,347 – $ 2,347 Total liabilities $ – $ 2,347 $ – $ 2,347

H. NOTES PAYABLE AND LONG-TER37

H. NOTES PAYABLE AND LONG-TERM DEBT (Tables)	12 Months Ended
	Dec. 31, 2014
Debt Disclosure [Abstract]
Schedule of notes payable and long-term debt	Notes payable and long-term debt consisted of the following: December 31, 2013 2014 2013 (in thousands) Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 0.75% (floor rate: 4%), maturing November 15, 2014 – 3,076 Revolving line of credit with a U.S. bank up to $15,000 with interest at LIBOR plus 2.75%, maturing July 15, 2017 15,000 7,000 Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2.75%, maturing July 31, 2019 5,000 1,850 Revolving line of credit with a China bank up to $12,100 with interest at 108% of China Prime rate which ranged from 6.48% in 2013 – 7,053 Revolving line of credit with a China bank up to $3,250 with interest ranged from 0.73% to 1.73% with various maturity dates from February 2015 to March 2015 1,064 2,413 Revolving line of credit with a Taiwan bank up to $4,000 with interest at Taiwan Time Deposit Interest Rate Index plus 0.41% or LIBOR plus 1.28% maturing on May 24, 2015 3,536 3,795 Revolving line of credit with a Taiwan bank up to $4,000 with interest at Taiwan Time Deposit Interest Rate Index plus 0.41% or LIBOR plus 1.28% maturing on June 15, 2015 3,605 – Note payable to a finance company due in monthly installments with 4.95% interest, maturing July 30, 2015 443 921 Total 28,648 26,108 Less current portion (9,591 ) (17,185 ) Long term portion $ 19,057 $ 8,923 Bank Acceptance Payable Bank acceptance notes issued to vendors with a zero percent interest rate, a 30% guarantee deposit of $741, and maturity dates ranging from January 2015 to June 2015 1,271 2,347
Maturities of notes payable and long-term debt	Maturities of notes payable and long-term debt are as follows for the future years ending December 31(in thousands): 2015 $ 9,591 2016 1,132 2017 16,132 2018 1,132 2019 661 Total outstanding $ 28,648

J. ACCRUED LIABILITIES (Tables)

J. ACCRUED LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2014
Payables and Accruals [Abstract]
Schedule of accrued liabilities	2014 2013 (in thousands) Accrued payroll $ 3,662 $ 2,279 Accrued employee benefits 808 489 Accrued income taxes 52 – Accrued state and local taxes 330 270 Advance payments 528 128 Accrued product warranty 247 – Accrued other 1,313 1,349 $ 6,940 $ 4,515

K. OTHER INCOME AND EXPENSE (Ta

K. OTHER INCOME AND EXPENSE (Tables)	12 Months Ended
	Dec. 31, 2014
Other income (expense)
Schedule of other income and expense	2014 2013 2012 (in thousands) Unrealized foreign exchange gain (loss) $ (1,299 ) $ (342 ) $ 217 Realized foreign exchange gain (loss) 297 (70 ) (79 ) Government subsidy income 271 322 92 Other non-operating gain (loss) 44 4 38 Gain (loss) on disposal of assets (12 ) 8 (37 ) $ (699 ) $ (78) $ 231

L. INCOME TAXES (Tables)

L. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income or loss from operations before income taxes	The sources of our income or loss from operations before income taxes were as follows: Year ended December 31, 2014 2013 2012 (in thousands) Domestic $ 1,226 $ (684 ) $ (3,077 ) Foreign (loss) income 3,256 (722 ) 2,132 Total income (loss) $ 4,482 $ (1,406 ) $ (945 )
Net deferred tax assets and liabilities	At December 31, the net deferred tax assets and liabilities are comprised of the following approximate amounts: 2014 2013 (in thousands) NOL carryforward $ 12,266 $ 14,908 Inventory reserves 676 489 AMT credit 224 – Unrealized gains and losses 470 – Stock compensation 550 624 Fixed assets and intangibles (1,537 ) (1,631 ) Impairment loss – (615 ) Other 25 335 12,674 14,110 Less valuation allowance (12,674 ) (14,110 ) Deferred tax assets, net $ – $ –
Provision for income tax expense	The provision for income tax expense for the years ended December 31, is as follows: 2014 2013 2012 Current: (in thousands) Federal $ 193 $ – $ – State 6 – – Foreign – – – Total $ 199 $ – $ – Deferred: Federal $ – $ – $ – State – – – Foreign – – – Total $ – $ – $ – Income tax expense $ 199 $ – $ –
Reconciliation of the U.S. federal income tax rate	A reconciliation of the U.S. federal income tax rate of 34% for the years ended December 31, to the Company’s effective income tax rate follows: 2014 2013 2012 (in thousands) Expected (benefit) taxes $ 1,524 $ (467 ) $ (293 ) Non-deductible expenses 138 619 (760 ) Foreign rate differences 295 – – Increase (decrease) in valuation allowance (1,729 ) (7,533 ) 1,545 Section 382 limitation – 7,423 – Other (29 ) (42 ) (492 ) Tax expense $ 199 $ – $ –
Unrecognized tax benefit	The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: 2014 2013 2012 (in thousands) Unrecognized tax benefits — January 1 $ 2,200 $ 0 $ 0 Gross increases — tax positions in prior period 1,659 2,200 – Gross decreases — tax positions in prior period (2,200 ) – – Gross increases — tax positions in current period – – – Settlements – – – Lapse of statute of limitations – – – Unrecognized tax benefits — December 31 $ 1,659 $ 2,200 $ 0

M. SHARE-BASED COMPENSATION (Ta

M. SHARE-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of option activity	The following is a summary of option activity: Number of shares Weighted Average Exercise Price Weighted Average Fair Value Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands, except price data) Outstanding, January 1, 2012 377 $ 5.88 Granted 88 6.00 Exercised (1 ) 6.29 (4 ) Forfeited (19 ) 6.00 Expired (26 ) 5.30 Outstanding, December 31, 2012 419 5.94 Granted 1,099 9.21 Exercised (29 ) 5.87 178 Forfeited (16 ) 7.10 Expired (5 ) 5.99 Outstanding, December 31, 2013 1,468 8.38 4.17 9,731 Granted 108 13.84 7.24 – Exercised (103 ) 6.22 2.57 1,476 Forfeited (49 ) 8.23 5.43 628 Expired (1 ) 6.21 2.21 11 Outstanding, December 31, 2014 1,423 $ 8.96 4.48 8.097 $ 3,486 Exercisable, December 31, 2014 537 $ 7.68 3.24 7.319 $ 1,899 Vested and expected to vest 1,397 $ 8.94 4.46 8.087 $ 3,444
Options outstanding	The following table summarizes information about the options outstanding at December 31, 2014: Range of exercise prices Number of shares outstanding Weighted average remaining contractual life (years) Weighted average exercise price Number of shares exercisable Weighted average remaining contractual life (years) Weighted average exercise price (in thousands, except price data) $6.00 - $6.75 274 6.047 $ 6.00 243 5.906 $ 6.00 $6.76 - $8.25 298 8.045 7.50 106 8.039 7.50 $8.26 - $9.48 3 8.279 9.00 1 8.279 9.00 $9.49 - $11.55 747 8.736 9.96 187 8.736 9.96 $11.56 - $13.49 1 8.808 13.13 – 8.808 13.13 $13.50 - $13.84 100 9.080 13.84 – – – Total 1,423 8.097 $ 8.96 537 7.319 $ 7.68
Summary of RSU activity	The following is a summary of RSU activity: Number of shares Weighted Average Fair Value (in thousands, except price data) Outstanding at January 1, 2013 – – Granted 33 $ 10.00 Exercised/Released – Cancelled/Forfeited – Outstanding at December 31, 2013 33 $ 10.00 Granted 25 $ 18.45 Exercised/Released (33 ) $ 10.57 Cancelled/Forfeited (4 ) $ 18.20 Outstanding at December 31, 2014 21 $ 18.22
Fair value of employee stock options	The Company estimates the fair value of employee stock options at the date of the grant using the Black-Scholes option-pricing model with the following assumptions: 2014 2013 2012 Expected volatility 52% 52 to 70% 70% Risk-free interest rate 1.89% 0.96% to 2.97% 1.01% Expected term (years) 6.25 6.25 6.25 Expected dividend yield – – – Estimated forfeitures 7.5% 7.5% 10%
Schedule of employee stock-based compensation expenses	Employee share-based compensation expenses recognized for the years ended December 31, were as follows: Share-Based compensation - by expense type 2014 2013 2012 (in thousands) Cost of goods sold $ 88 $ 56 $ 7 Research and development 115 53 8 Sales and marketing 98 52 9 General and administrative 1,760 908 137 Total share-based compensation expense $ 2,061 $ 1,069 $ 161 Share-Based compensation - by award type 2014 2013 2012 (in thousands) Employee stock options $ 1,660 $ 793 $ 140 Restricted stock units 385 220 – Warrants 16 56 21 Total share-based compensation expense $ 2,061 $ 1,069 $ 161

O. SEGMENT AND GEOGRAPHIC INF42

O. SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2014
Segment Reporting [Abstract]
Revenue and asset information by geographic region	Long-lived assets in the tables below comprise only property, plant, equipment and intangible assets (in thousands): For the year ended December 31, 2014 2013 2012 Revenues: (in thousands) United States $ 30,723 $ 14,705 $ 12,192 Taiwan 77,680 31,863 15,200 China 22,046 31,856 36,029 $ 130,449 $ 78,424 $ 63,421 As of December 31, 2014 2013 2012 Long-lived assets: (in thousands) United States $ 15,875 $ 9,415 $ 8,966 Taiwan 35,688 7,192 3,719 China 18,008 16,337 13,595 $ 69,571 $ 32,944 $ 26,280

R. COMMITMENTS AND CONTINGENC43

R. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Minimum rental commitments under noncancellable leases	At December 31, 2014, the approximate minimum rental commitments under noncancellable leases in excess of one year that expire at varying dates through 2029 were as follows: Year ending December 31, Amount (in thousands) 2015 $ 926 2016 860 2017 800 2018 882 2019 981 2020-2029 10,055 $ 14,504

S. RELATED PARTY TRANSACTIONS (

S. RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2014
Related Party Transactions [Abstract]
Related parties activities	For the year ended December 31, 2014 2013 2012 (in thousands) Interest expense $ – $ – $ 36 Consulting service fees – 35 41

U. SELECTED QUARTERLY FINANCI45

U. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
Selected Quarterly Financial Data	The following tables set forth a summary of the Company’s quarterly financial information for each of the four quarters for the years ended December 31, 2014 and 2013. First Second Third Fourth Year ended December 31, 2014 Quarter Quarter Quarter Quarter Revenue $ 24,859 $ 32,650 $ 36,549 $ 36,391 Cost of goods sold 16,206 21,462 24,403 24,132 Gross profit $ 8,653 $ 11,188 $ 12,146 $ 12,259 Gross margin 34.8% 34.3% 33.2% 33.7% Operating expenses: Research and development $ 3,546 $ 4,009 $ 4,194 $ 4,221 Sales and marketing 1,333 1,497 1,622 1,591 General and administrative 3,554 3,952 4,458 5,131 Total operating expenses $ 8,433 $ 9,458 $ 10,274 $ 10,943 Income from operations $ 220 $ 1,730 $ 1,872 $ 1,316 Interest and other income (expense), net (110 ) 274 (218 ) (602 ) Net income before taxes $ 110 $ 2,004 $ 1,654 $ 714 Income taxes (25 ) (85 ) (77 ) (12 ) Net income $ 85 $ 1,919 $ 1,577 $ 702 Net income per share—basic $ 0.01 $ 0.13 $ 0.11 $ 0.05 Net income per share—diluted $ 0.01 $ 0.12 $ 0.10 $ 0.05 First Second Third Fourth Year ended December 31, 2013 Quarter Quarter Quarter Quarter Revenue $ 14,317 $ 19,597 $ 20,766 $ 23,744 Cost of goods sold 9,732 14,150 14,445 17,068 Gross profit $ 4,585 $ 5,447 $ 6,321 $ 6,676 Gross margin 32.0% 27.8% 30.4% 28.1% Operating expenses: Research and development $ 2,004 $ 1,898 $ 2,211 $ 2,400 Sales and marketing 907 1,053 1,034 1,198 General and administrative 2,374 2,447 2,436 3,375 Total operating expenses $ 5,285 $ 5,398 $ 5,681 $ 6,973 Income (loss) from operations $ (700 ) $ 49 $ 640 $ (297 ) Interest and other income (expense), net (294 ) (331 ) (250 ) (223 ) Net income (loss) $ (994 ) $ (282 ) $ 390 $ (520 ) Net income (loss) per share—basic $ (3.74 ) $ (1.04 ) $ 0.04 $ (0.04 ) Net income (loss) per share—diluted $ (3.74 ) $ (1.04 ) $ 0.04 $ (0.04 )

B. Summary Of Significant Acc46

B. Summary Of Significant Accounting Policies (Details - Property, Plant and Equipment)	12 Months Ended
	Dec. 31, 2014
Buildings [Member] | Minimum
Estimated useful lives	20 years
Buildings [Member] | Maximum
Estimated useful lives	40 years
Land Improvements [Member]
Estimated useful lives	10 years
Machinery and equipment [Member] | Minimum
Estimated useful lives	3 years
Machinery and equipment [Member] | Maximum
Estimated useful lives	20 years
Furniture and fixtures [Member] | Minimum
Estimated useful lives	1 year
Furniture and fixtures [Member] | Maximum
Estimated useful lives	8 years
Computer equipment and software [Member] | Minimum
Estimated useful lives	3 years
Computer equipment and software [Member] | Maximum
Estimated useful lives	7 years
Leasehold Improvements [Member]
Property, plant and equipment useful lives	The shorter of the life of the applicable lease or the useful life of the improvement
Transportation equipment [Member]
Estimated useful lives	5 years

B. Summary Of Significant Acc47

B. Summary Of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash and cash equivalents	$ 32,175	$ 22,006	$ 10,723	$ 1,767
Cash in excess of FDIC insurance	25,400
Accrued warranty	247	0
Advertising Costs	100	121	$ 80
Foreign Accounts
Cash and cash equivalents	4,600	6,600
Taiwan
Restricted cash	500	$ 800
Certificates of deposit	8,200
Pledged certificate of deposit for line of credit	$ 8,200

C. Earnings Per Share (Details-

C. Earnings Per Share (Details-Calculation EPS) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Earnings Per Share [Abstract]
Net income (loss)	$ 702	$ 1,577	$ 1,919	$ 85	$ (520)	$ 390	$ (282)	$ (994)	$ 4,283	$ (1,406)	$ (945)
Weighted average shares used to compute net income (loss) per share
Basic									14,307,477	9,964,955	265,576
Effective of dilutive options and warrants									880,000	0	0
Diluted									15,186,961	9,964,955	265,576
Net income (loss) per share
Basic	$ 0.05	$ 0.11	$ 0.13	$ 0.01	$ (0.04)	$ 0.04	$ (1.04)	$ (3.74)	$ 0.30	$ (0.14)	$ (3.56)
Diluted	$ 0.05	$ 0.10	$ 0.12	$ 0.01	$ (0.04)	$ 0.04	$ (1.04)	$ (3.74)	$ 0.28	$ (0.14)	$ (3.56)

C. Earnings Per Share (Details

C. Earnings Per Share (Details - Potentially Dilutive Shares) - shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Potentially dilutive securities excluded from EPS	0	661	515
Employee Stock Options
Potentially dilutive securities excluded from EPS	0	595	419
Preferred Stock Warrants
Potentially dilutive securities excluded from EPS	0	33	96
Restricted Stock Units
Potentially dilutive securities excluded from EPS	0	33	0

D. Inventory (Details)

D. Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]
Raw materials	$ 16,243	$ 8,832
Work in process	13,379	8,708
Finished goods	4,158	2,068
Inventories	$ 33,780	$ 19,608

D. Inventory (Details Narrative

D. Inventory (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Inventory Disclosure [Abstract]
Lower of cost or market adjustment for inventory	$ 900	$ 500	$ 900

E. Property, Plant and Equipm52

E. Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Property, plant and equipment, gross	$ 84,748	$ 58,407
Less accumulated depreciation and amortization	(32,412)	(28,145)
Property, plant and equipment	52,336	30,262
Construction in progress	11,371	139
Land	1,101	733
Property, plant and equipment, net	64,808	31,134
Land Improvements [Member]
Property, plant and equipment, gross	103	103
Building and improvements [Member]
Property, plant and equipment, gross	16,196	16,016
Machinery and equipment [Member]
Property, plant and equipment, gross	61,529	37,490
Furniture and fixtures [Member]
Property, plant and equipment, gross	1,938	1,047
Computer equipment and software [Member]
Property, plant and equipment, gross	4,712	3,563
Transportation equipment [Member]
Property, plant and equipment, gross	$ 270	$ 188

E. Property, Plant and Equipm53

E. Property, Plant and Equipment (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 5,800	$ 3,300	$ 2,900

F. Intangible Assets (Details)

F. Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Gross Amount	$ 4,982	$ 1,642
Accumulated amortization	(1,149)	(791)
Intangible assets, net	3,833	851
Patents [Member]
Gross Amount	4,968	1,632
Accumulated amortization	(1,141)	(784)
Intangible assets, net	3,827	848
Trademarks [Member]
Gross Amount	14	10
Accumulated amortization	(8)	(7)
Intangible assets, net	$ 6	$ 3

F. Intangible Assets (Details-A

F. Intangible Assets (Details-Amortization Schedule) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
2,015	$ 356
2,016	356
2,017	356
2,018	356
2,019	356
Thereafter	2,053
Amortization expense for intangible assets	$ 3,833	$ 851

F. Intangible Assets (Details N

F. Intangible Assets (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense for intangible assets	$ 356	$ 68	$ 60

G. Fair Value of Financial In57

G. Fair Value of Financial Instruments (Details-Summary) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Assets:
Cash and cash equivalents	$ 32,175	$ 22,006
Restricted cash	509	775
Short term investments	8,189	7,970
Notes receivable	980
Total assets	41,853	30,751
Liabilities:
Bank acceptance payable	1,271	2,347
Total liabilities	1,271	2,347
Fair Value, Inputs, Level 1 [Member]
Assets:
Cash and cash equivalents	32,175	22,006
Restricted cash	509	775
Short term investments	8,189	7,970
Notes receivable	0
Total assets	40,873	30,751
Liabilities:
Total liabilities	0	0
Fair Value, Inputs, Level 2 [Member]
Assets:
Cash and cash equivalents	0	0
Restricted cash	0	0
Short term investments	0	0
Notes receivable	980
Total assets	980	0
Liabilities:
Bank acceptance payable	1,271	2,347
Total liabilities	1,271	2,347
Fair Value, Inputs, Level 3 [Member]
Assets:
Cash and cash equivalents	0	0
Restricted cash	0	0
Short term investments	0	0
Notes receivable	0
Total assets	0	0
Liabilities:
Total liabilities	$ 0	$ 0

H. Notes Payable and Long-Ter58

H. Notes Payable and Long-Term Debt (Details-Schedule of Debt) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Notes payable and long-term debt total	$ 28,648	$ 26,108
Current portion of notes payable and long-term debt	(9,591)	(17,185)
Long term portion of notes payable and long-term debt	19,057	8,923
Bank acceptance notes	1,271	2,347
Term loan 1
Notes payable and long-term debt total	$ 0	3,076
Debt maturity date	Nov. 15, 2014
Interest rate	prime plus 0.75%
Line of Credit
Notes payable and long-term debt total	$ 15,000	7,000
Debt maturity date	Jul. 15, 2017
Interest rate	LIBOR plus 2.75%
Term loan 2
Notes payable and long-term debt total	$ 5,000	1,850
Debt maturity date	Jul. 31, 2019
Interest rate	LIBOR plus 2.75%
Line of Credit 2
Notes payable and long-term debt total	$ 0	7,053
Interest rate	108% of China Prime rate
Line of Credit 3
Notes payable and long-term debt total	$ 1,064	2,413
Debt maturity date	Mar. 31, 2015
Interest rate	0.73% to 1.73%
Line of Credit 4
Notes payable and long-term debt total	$ 3,536	3,795
Debt maturity date	May 24, 2015
Interest rate	Interest Rate Index plus 0.41% or LIBOR plus 1.28%
Line of Credit 5
Notes payable and long-term debt total	$ 3,605	0
Debt maturity date	Jun. 15, 2015
Interest rate	Index plus 0.41% or LIBOR plus 1.28%
Note payable
Notes payable and long-term debt total	$ 443	$ 921
Debt maturity date	Jul. 30, 2015
Interest rate	4.95%

H. Notes Payable and Long-Ter59

H. Notes Payable and Long-Term Debt (Details-Maturities) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Maturities of notes payable and long-term debt
2,015	$ 9,591
2,016	1,132
2,017	16,132
2,018	1,132
2,019	661
Total outstanding	$ 28,648	$ 26,108

H. Notes Payable and Long-Ter60

H. Notes Payable and Long-Term Debt (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Unused borrowing capacity	$ 14,300
China | China, Yuan Renminbi
Revolving line of credit maximum borrowing capacity	$ 12,100
Interest rate on line of credit	108% of the China prime rate
China | United States of America, Dollars
Revolving line of credit maximum borrowing capacity	$ 3,300
Interest rate on line of credit	0.73% to 1.73%
Taiwan
Revolving line of credit amount outstanding	$ 7,100
Revolving line of credit maximum borrowing capacity		$ 8,000
Interest rate on line of credit		Taiwan Time Deposit Interest Rate Index plus 0.41%, currently 1.78%, and at a base rate equal to TAIBOR plus 1%, currently 1.75%

I. Short-Term Loan With Share61

I. Short-Term Loan With Shareholders (Details Narrative)	Dec. 31, 2013shares
I. Short-term Loan With Shareholders
Warrants exercised	64,219

J. Accrued Liabilities (Details

J. Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Payables and Accruals [Abstract]
Accrued payroll	$ 3,662	$ 2,279
Accrued employee benefits	808	489
Accrued income taxes	52	0
Accrued state and local taxes	330	270
Advance payments	528	128
Accrued product warranty	247	0
Accrued other	1,313	1,349
Total accrued liabilities	$ 6,940	$ 4,515

K. Other Income and Expense (De

K. Other Income and Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Other income (expense)
Unrealized foreign exchange gain (loss)									$ (1,299)	$ (342)	$ 217
Realized foreign exchange gain (loss)									297	(70)	(79)
Government subsidy income									271	322	92
Other non-operating gain (loss)									44	4	38
Gain (loss) on disposal of assets									(12)	8	(37)
Total other income and expense	$ (602)	$ (218)	$ 274	$ (110)	$ (223)	$ (250)	$ (331)	$ (294)	$ (699)	$ (78)	$ 231

L. Income Taxes (Details-Operat

L. Income Taxes (Details-Operations Income) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Domestic	$ 1,226	$ (684)	$ (3,077)
Foreign (loss) income	3,256	(722)	2,132
Total income (loss)	$ 4,482	$ (1,406)	$ (945)

L. Income Taxes (Details-provis

L. Income Taxes (Details-provision for income tax expense) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Current
Federal					$ 193	$ 0	$ 0
State					6	0	0
Foreign					0	0	0
Total					199	0	0
Deferred:
Federal					0	0	0
State					0	0	0
Foreign					0	0	0
Total					0	0	0
Income tax expense	$ (12)	$ (77)	$ (85)	$ (25)	$ 199	$ 0	$ 0

L. Income Taxes (Details-Deferr

L. Income Taxes (Details-Deferred Income Taxes) - USD ($) $ in Thousands	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
NOL Carryforward	$ 12,266	$ 14,908
Inventory reserves	676	489
AMT credit	224	0
Unrealized gains and losses	470	0
Stock compensation	550	624
Fixed assets and intangibles	(1,537)	(1,631)
Impairment loss	0	(615)
Other	25	335
Deferred tax assets, gross	12,674	14,110
Less valuation allowance	(12,674)	(14,110)
Deferred tax assets, net	$ 0	$ 0

L. Income Taxes (Details-Reconc

L. Income Taxes (Details-Reconciliation) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Expected (benefit) taxes					$ 1,524	$ (467)	$ (293)
Non-deductible expenses					138	619	(760)
Foreign rate differences					295	0	0
Increase (decrease) in valuation allowance					(1,729)	(7,533)	1,545
Section 382 limitation					0	7,423	0
Other					(29)	(42)	(492)
Tax expense	$ (12)	$ (77)	$ (85)	$ (25)	$ 199	$ 0	$ 0

L. Income Taxes (Details-Unreco

L. Income Taxes (Details-Unrecognized tax benefit) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 2,200	$ 0	$ 0
Gross increases - tax positions in prior period	1,659	2,200	0
Gross decreases - tax positions in prior period	(2,200)	0	0
Gross increases - tax positions in current period	0	0	0
Settlements	0	0	0
Lapse of statute of limitations	0	0	0
Unrecognized tax benefits	$ 1,659	$ 2,200	$ 0

L. Income Taxes (Details Narrat

L. Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2013
Valuation allowance increase (decrease)		$ (1,500)	$ (7,500)
Net operating loss carryforward	$ 56,500	$ 56,500
Loss carryforward expiration date		Dec. 31, 2032
Research and development tax credits	1,600	$ 1,600	$ 2,200
China
Net operating loss carryforward	$ 5,700	$ 5,700
Loss carryforward expiration date	Dec. 31, 2019

M. Share-Based Compensation (De

M. Share-Based Compensation (Details-Option Activity) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Number of Shares
Outstanding, ending balance	1,423,000
Employee Stock Options
Number of Shares
Outstanding, beginning balance	1,468,000	419,000	377,000
Granted	108,000	1,099,000	88,000
Exercised	(103,000)	(29,000)	(1,000)
Forfeited	(49,000)	(16,000)	(19,000)
Expired	(1,000)	(5,000)	(26,000)
Outstanding, ending balance	1,423,000	1,468,000	419,000
Exericsable, ending balance	537,000
Vested and expected to vest	1,397,000
Weighted Average Exercise Price
Outstanding, beginning balance	$ 8.38	$ 5.94	$ 5.88
Granted	13.84	9.21	6
Exercised	6.22	5.87	6.29
Forfeited	8.23	7.10	6
Expired	6.21	5.99	5.30
Outstanding, ending balance	8.96	8.38	$ 5.94
Exericsable, ending balance	7.68
Vested and expected to vest	8.94
Weighted Average Fair Value
Outstanding, beginning balance	4.17
Granted	7.24
Exercised	2.57
Forfeited	5.43
Expired	2.21
Outstanding, ending balance	4.48	$ 4.17
Exericsable, ending balance	3.24
Vested and expected to vest	$ 4.46
Weighted Average Remaining Contractual Life
Outstanding, ending balance	8 years 1 month 5 days
Exericsable, ending balance	7 years 3 months 25 days
Vested and expected to vest	8 years 1 month 1 day
Granted	$ 0
Exercised	1,476	$ 178	$ (4)
Forfeited	628
Expired	11
Aggregate intrinsic value, outstanding	3,489	$ 9,731
Exericsable, ending balance	1,899
Vested and expected to vest	$ 3,444

M. Share-Based Compensation (71

M. Share-Based Compensation (Details-Options Summary)	12 Months Ended
	Dec. 31, 2014$ / sharesshares
Number of shares outstanding | shares	1,423,000
Weighted average remaining contractual life (years)	8 years 1 month 5 days
Weighted average exercise price | $ / shares	$ 8.96
Number of shares exercisable | shares	537,000
Weighted average remaining contractual life (years)	7 years 3 months 25 days
Weighted average exercise price | $ / shares	$ 7.68
$6.00 - $6.75
Number of shares outstanding | shares	274,000
Weighted average remaining contractual life (years)	6 years 17 days
Weighted average exercise price | $ / shares	$ 6
Number of shares exercisable | shares	243,000
Weighted average remaining contractual life (years)	5 years 10 months 27 days
Weighted average exercise price | $ / shares	$ 6
$6.76 - $8.25
Number of shares outstanding | shares	298,000
Weighted average remaining contractual life (years)	8 years 16 days
Weighted average exercise price | $ / shares	$ 7.50
Number of shares exercisable | shares	106,000
Weighted average remaining contractual life (years)	8 years 14 days
Weighted average exercise price | $ / shares	$ 7.50
$8.26 - $9.48
Number of shares outstanding | shares	3,000
Weighted average remaining contractual life (years)	8 years 3 months 11 days
Weighted average exercise price | $ / shares	$ 9
Number of shares exercisable | shares	1,000
Weighted average remaining contractual life (years)	8 years 3 months 11 days
Weighted average exercise price | $ / shares	$ 9
$9.49 - $11.55
Number of shares outstanding | shares	747,000
Weighted average remaining contractual life (years)	8 years 8 months 25 days
Weighted average exercise price | $ / shares	$ 9.96
Number of shares exercisable | shares	187,000
Weighted average remaining contractual life (years)	8 years 8 months 25 days
Weighted average exercise price | $ / shares	$ 9.96
$11.56 - $13.49
Number of shares outstanding | shares	1,000
Weighted average remaining contractual life (years)	8 years 9 months 21 days
Weighted average exercise price | $ / shares	$ 13.13
Number of shares exercisable | shares	0
Weighted average remaining contractual life (years)	8 years 9 months 21 days
Weighted average exercise price | $ / shares	$ 13.13
$13.50 - $13.84
Number of shares outstanding | shares	100,000
Weighted average remaining contractual life (years)	9 years 29 days
Weighted average exercise price | $ / shares	$ 13.84
Number of shares exercisable | shares	0
Weighted average remaining contractual life (years)	0 years
Weighted average exercise price | $ / shares	$ 0

M. Share-Based Compensation (72

M. Share-Based Compensation (Details-Restricted Stock Units) - Restricted Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Number of shares
Outstanding, beginning balance	33,000	0
Granted	25,000	33,000
Exercised/Released	(33,000)	0
Cancelled/Forfeited	(4,000)	0
Outstanding, ending balance	21,000	33,000
Weighted Average Fair Value
Outstanding, beginning balance	$ 10	$ 0
Granted	18.45	10
Exercised/Released	10.57
Cancelled/Forfeited	18.20
Outstanding, ending balance	$ 18.22	$ 10

M. Share-Based Compensation (73

M. Share-Based Compensation (Details-Assumptions) - Employee Stock Options	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Expected volatility	52.00%		70.00%
Risk-free interest rate	1.89%		1.01%
Expected term (years)	6 years 3 months	6 years 3 months	6 years 3 months
Expected dividend yield	0.00%	0.00%	0.00%
Estimated forfeitures	7.50%	7.50%	7.50%
Minimum
Expected volatility		52.00%
Risk-free interest rate		0.96%
Maximum
Expected volatility		70.00%
Risk-free interest rate		2.97%

M. Share-Based Compensation (74

M. Share-Based Compensation (Details-Share-based Compensation by expense type) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Total share-based compensation expense	$ 2,061	$ 1,069	$ 161
Cost of goods sold [Member]
Total share-based compensation expense	88	56	7
Research and development [Member]
Total share-based compensation expense	115	53	8
Sales and marketing [Member]
Total share-based compensation expense	98	52	9
General and administrative [Member]
Total share-based compensation expense	$ 1,760	$ 908	$ 137

M. Share-Based Compensation (75

M. Share-Based Compensation (Details-Share-Based compensation by award type) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Total share-based compensation expense	$ 2,061	$ 1,069	$ 161
Employee Stock Options
Total share-based compensation expense	1,660	793	140
Restricted Stock Units
Total share-based compensation expense	385	220	0
Warrants
Total share-based compensation expense	$ 16	$ 56	$ 21

M. Stock-Based Compensation (De

M. Stock-Based Compensation (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2014USD ($)
Compensation cost on unvested options not yet recognized	$ 3,900
Compensation cost unrecognized weighted average period	2 years 7 months 10 days
Restricted Stock Units
Compensation cost on unvested options not yet recognized	$ 100
Compensation cost unrecognized weighted average period	1 year 5 months 23 days
Aggregate intrinsic value of options outstanding	$ 200

O. Segment And Geographic Inf77

O. Segment And Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenues	$ 36,391	$ 36,549	$ 32,650	$ 24,859	$ 23,744	$ 20,766	$ 19,597	$ 14,317	$ 130,449	$ 78,424	$ 63,421
Long-lived assets	69,571				32,944				69,571	32,944	26,280
United States
Revenues									30,723	14,705	12,192
Long-lived assets	15,875				9,415				15,875	9,415	8,966
Taiwan
Revenues									77,680	31,863	15,200
Long-lived assets	35,688				7,192				35,688	7,192	3,719
China
Revenues									22,046	31,856	36,029
Long-lived assets	$ 18,008				$ 16,337				$ 18,008	$ 16,337	$ 13,595

O. Segment and Geographic Inf78

O. Segment and Geographic Information (Details Narrative) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenues	$ 36,391	$ 36,549	$ 32,650	$ 24,859	$ 23,744	$ 20,766	$ 19,597	$ 14,317	$ 130,449	$ 78,424	$ 63,421
CATV markets [Member]
Revenues									$ 47,400	$ 47,400
Concentration percentage									36.60%	60.40%
Internet data center [Member]
Revenues									$ 64,500	$ 19,400
Concentration percentage									49.40%	24.70%
FTTH markets [Member]
Revenues									$ 13,600	$ 4,400
Concentration percentage									10.40%	5.60%
Other markets [Member]
Revenues									$ 500	$ 7,300
Concentration percentage									3.90%	9.30%

P. Major Customers (Details Nar

P. Major Customers (Details Narrative)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Sales Revenue, Segment [Member] | Ten Customers
Concentration risk	87.20%	76.90%	77.60%
Sales Revenue, Segment [Member] | Cisco Systems, Inc. [Member]
Concentration risk	8.90%
Sales Revenue, Segment [Member] | Amazon [Member]
Concentration risk	45.80%
Sales Revenue, Segment [Member] | Biogenomics Corp [Member]
Concentration risk	6.20%
Accounts Receivable [Member] | Five Customers [Member]
Concentration risk	70.00%	66.00%

Q. Employee Benefit Plans (Deta

Q. Employee Benefit Plans (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Global [Member]
Pension expense	$ 390	$ 384	$ 244
AOI - Taiwan [Member]
Pension expense	$ 291	$ 203	$ 168

R. Commitments And Contingenc81

R. Commitments And Contingencies (Details) $ in Thousands	Dec. 31, 2014USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,015	$ 926
2,016	860
2,017	800
2,018	882
2,019	981
2020-2029	10,055
Total	$ 14,504

R. Commitments And Contingenc82

R. Commitments And Contingencies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 800	$ 600	$ 600
Consulting service fees	$ 0	$ 35	$ 41

S. Related Party Transactions83

S. Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Related Party Transactions [Abstract]
Interest expense	$ 0	$ 0	$ 36
Consulting service fees	$ 0	$ 35	$ 41

U. SELECTED QUARTERLY FINANCI84

U. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 36,391	$ 36,549	$ 32,650	$ 24,859	$ 23,744	$ 20,766	$ 19,597	$ 14,317	$ 130,449	$ 78,424	$ 63,421
Cost of goods sold	24,132	24,403	21,462	16,206	17,068	14,445	14,150	9,732	86,203	55,396	44,492
Gross profit	$ 12,259	$ 12,146	$ 11,188	$ 8,653	$ 6,676	$ 6,321	$ 5,447	$ 4,585	44,246	23,028	18,929
Gross margin	33.70%	33.20%	34.30%	34.80%	28.10%	30.40%	27.80%	32.00%
Operating expenses:
Research and development	$ 4,221	$ 4,194	$ 4,009	$ 3,546	$ 2,400	$ 2,211	$ 1,898	$ 2,004	15,970	8,512	7,603
Sales and marketing	1,591	1,622	1,497	1,333	1,198	1,034	1,053	907	6,043	4,191	3,135
General and administrative	5,131	4,458	3,952	3,554	3,375	2,436	2,447	2,374	17,095	10,632	8,012
Total operating expenses	10,943	10,274	9,458	8,433	6,973	5,681	5,398	5,285	39,108	23,335	18,750
Income (loss) from operations	1,316	1,872	1,730	220	(297)	640	49	(700)	5,138	(307)	179
Interest and other income (expense), net	(602)	(218)	274	(110)	(223)	(250)	(331)	(294)	(699)	(78)	231
Net income before taxes	714	1,654	2,004	110
Income taxes	(12)	(77)	(85)	(25)					199	0	0
Net income (loss)	$ 702	$ 1,577	$ 1,919	$ 85	$ (520)	$ 390	$ (282)	$ (994)	$ 4,283	$ (1,406)	$ (945)
Net income (loss) per share - basic	$ 0.05	$ 0.11	$ 0.13	$ 0.01	$ (0.04)	$ 0.04	$ (1.04)	$ (3.74)	$ 0.30	$ (0.14)	$ (3.56)
Net income (loss) per share - diluted	$ 0.05	$ 0.10	$ 0.12	$ 0.01	$ (0.04)	$ 0.04	$ (1.04)	$ (3.74)	$ 0.28	$ (0.14)	$ (3.56)