Applied Optoelectronics (AAOI) 10-K 9 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Mar. 06, 2017	Jun. 30, 2016
Document And Entity Information
Entity Registrant Name	APPLIED OPTOELECTRONICS, INC.
Entity Central Index Key	1,158,114
Document Type	10-K
Document Period End Date	Dec. 31, 2016
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	Accelerated Filer
Entity Public Float			$ 180.9
Entity Common Stock, Shares Outstanding		18,677,878
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current Assets
Cash and cash equivalents	$ 50,224	$ 28,074
Restricted cash	1,732	4,719
Short-term investments	44	7,886
Accounts receivable - trade, net of allowance of $31 and $51, respectively	49,766	38,775
Inventories	51,817	66,238
Prepaid expenses and other current assets	3,969	8,236
Total current assets	157,552	153,928
Cash restricted for construction in progress	8
Property, plant and equipment, net of accumulated depreciation of $49,174 and $37,980, respectively	144,098	109,699
Land use rights, net	778	854
Intangible assets, net	3,993	3,900
Deferred income tax assets	11,421
Other assets, net	4,468	5,094
TOTAL ASSETS	322,318	273,475
Current liabilities
Current portion of notes payable and long-term debt	7,865	30,908
Accounts payable	36,375	28,668
Bank acceptance payable	307	2,998
Accrued liabilities	15,426	11,506
Total current liabilities	59,973	74,080
Notes payable and long-term debt, less current portion	34,961	33,997
TOTAL LIABILITIES	94,934	108,077
Stockholders' equity:
Common Stock; 45,000 shares authorized at $0.001 par value; 18,400 and 16,839 shares issued and outstanding at December 31, 2016 and 2015 respectively	18	17
Additional Paid in Capital	265,264	233,336
Accumulated other comprehensive gain	(885)	292
Accumulated deficit	(37,013)	(68,247)
TOTAL STOCKHOLDERS' EQUITY	227,384	165,398
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 322,318	$ 273,475

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for Doubtful Accounts Receivable	$ 31	$ 51
Accumulated depreciation	$ 49,175	$ 37,970
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	$ 0.001	$ 0.001
Common stock shares authorized	45,000,000	45,000,000
Common stock shares issued	18,400,000	16,839,000
Common stock shares outstanding	18,400,000	16,839,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenue, net	$ 260,713	$ 189,903	$ 130,449
Cost of goods sold	173,759	129,450	86,203
Gross profit	86,954	60,453	44,246
Operating expenses
Research and development	31,780	20,852	15,970
Sales and marketing	6,627	6,381	6,043
General and administrative	25,527	19,771	17,095
Total operating expenses	63,934	47,004	39,108
Income from operations	23,020	13,449	5,138
Other income (expense)
Interest income	247	328	369
Interest expense	(1,717)	(1,018)	(326)
Other expense, net	(547)	(1,591)	(699)
Total other expense	(2,017)	(2,281)	(656)
Income(loss) before income taxes	21,003	11,168	4,482
Income tax (expense) benefit	10,231	(375)	(199)
Net income (loss) after taxes	$ 31,234	$ 10,793	$ 4,283
Net income (loss) per share basic	$ 1.82	$ 0.69	$ 0.30
Net income (loss) per share diluted	$ 1.76	$ 0.65	$ 0.28
Weighted average shares used to compute net income per share: basic	17,201,731	15,626,753	14,307,477
Weighted average shares used to compute net income per share: Diluted	17,712,928	16,532,850	15,186,961

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 31,234	$ 10,793	$ 4,283
Loss on foreign currency translation adjustment, net of tax	(1,177)	(1,633)	(439)
Comprehensive income	$ 30,057	$ 9,160	$ 3,844

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated other comprehensive gain [Member]	Accumulated Deficit	Total
Beginning balance, shares at Dec. 31, 2013	12,644
Beginning balance, value at Dec. 31, 2013	$ 13	$ 144,023	$ 2,364	$ (83,323)	$ 63,077
Issuance of common stock, net shares	2,025
Public offering of common stock, net, value	$ (2)	(45,679)			(45,681)
Stock Issued During Period, Shares, Share-based Compensation, Gross	33
Stock options exercised, shares	103
Stock options exercised, value		365			365
Warrants exercised, shares issued	19
Stock based compensation		2,045			2,045
Net income				4,283	4,283
Loss on foreign currency translation adjustment			(439)		(439)
Ending balance, shares at Dec. 31, 2014	14,824
Ending balance, value at Dec. 31, 2014	$ 15	192,112	1,925	(79,040)	115,012
Issuance of common stock, net shares	1,857
Public offering of common stock, net, value	$ (2)	(38,646)			(38,648)
Stock Issued During Period, Shares, Share-based Compensation, Gross	77
Stock options exercised, shares	81
Stock options exercised, value		452			452
Stock based compensation		2,120			2,120
Net income				10,793	10,793
Loss on foreign currency translation adjustment			(1,633)		(1,633)
Adjustments to Additional Paid in Capital, Other		6			6
Ending balance, shares at Dec. 31, 2015	16,839
Ending balance, value at Dec. 31, 2015	$ 17	233,336	292	(68,247)	165,398
Issuance of common stock, net shares	1,126
Public offering of common stock, net, value	$ (1)	(27,236)			(27,237)
Stock Issued During Period, Shares, Share-based Compensation, Gross	276
Stock options exercised, shares	159
Stock options exercised, value		859			859
Stock based compensation		3,833			3,833
Net income				31,234	31,234
Loss on foreign currency translation adjustment			(1,177)		(1,177)
Ending balance, shares at Dec. 31, 2016	18,400
Ending balance, value at Dec. 31, 2016	$ 18	$ 265,264	$ (885)	$ (37,013)	$ 227,384

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating activities:
Net income	$ 31,234	$ 10,793	$ 4,283
Net Income (Loss) Available to Common Stockholders, Basic	31,234	10,793	4,283
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Lowerof Cost or Market Adjustment	3,707	2,832	941
Depreciation and amortization	14,188	9,424	6,169
Deferred income taxes, net	11,426
Loss on disposal of assets	126	78	12
Share-based compensation	3,833	2,120	2,061
Unrealized foreign exchange loss (gain)	(937)	2,462	1,288
Changes in operating assets and liabilities:
Accounts receivable, trade	(11,147)	(7,531)	(9,703)
Notes receivable		977	(977)
Inventories	10,207	(37,502)	(16,105)
Other current assets	4,119	(2,624)	(745)
Accounts payable	9,105	(1,258)	18,947
Accrued liabilities	4,095	5,017	2,359
Net cash provided by (used in) operating activities	57,104	(15,212)	8,530
Investing activities:
Purchase of short-term investments		(175)	(246)
Maturities of short-term investments	7,752
Change in restricted cash for construction in progress	(8)
Purchase of property, plant and equipment	(49,442)	(57,080)	(41,129)
Proceeds from disposal of equipment	14	351	47
Deposits and deferred charges	688	(4,238)	(720)
Purchase of intangible assets	(547)	(478)	(3,340)
Net cash used in investing activities	(41,543)	(61,620)	(45,388)
Financing activities:
Proceeds from issuance notes payable and long-term debt	28,858	16,944	8,150
Principal payments of long-term debt and notes payable	(5,855)	(2,413)	(8,076)
Proceeds from line of credit borrowings	117,172	144,386	53,658
Repayments of line of credit borrowings	(163,068)	(121,386)	(50,733)
Proceeds from bank acceptance payable	5,850	8,257	5,925
Repayments of bank acceptance payable	(8,398)	(6,361)	(6,986)
Repayments of notes payable	(1,000)	(1,000)	(1,000)
Decrease (increase) in restricted cash	2,987	(4,419)	266
Exercise of stock options	859	452	365
Proceeds from common stock offering, net	27,237	38,648	45,681
Other		6
Net cash provided by financing activities	4,642	73,114	47,250
Effect of exchange rate changes on cash	1,947	(383)	(223)
Net increase (decrease) in cash	22,150	(4,101)	10,169
Cash and cash equivalents at beginning of period	28,074	32,175	22,006
Cash and cash equivalents at end of period	50,224	28,074	32,175
Cash paid for (received from):
Interest	1,689	1,070	329
Income taxes	$ (12)	$ 650	148
Non-cash investing and financing activities:
Purchase of intangible assets with notes payable			$ 3,000

A. ORGANIZATION AND OPERATIONS

A. ORGANIZATION AND OPERATIONS	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND OPERATIONS	NOTE A—ORGANIZATION AND OPERATIONS Applied Optoelectronics, Inc. (“AOI” or the “Company”) was incorporated in the State of Texas on February 28, 1997. In March 2013, the Company converted into a Delaware corporation. The Company is a leading, vertically integrated provider of fiber-optic networking products, primarily for four networking end-markets: internet data center, cable television, fiber-to-the-home and telecommunications. 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. Prime World also operates a division in 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, 2016
Accounting Policies [Abstract]
Significant Accounting Policies	NOTE B—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. Reclassifications Certain amounts in the prior year’s financial statements have been reclassified to conform to the current year presentation. This reclassification includes the presentation of revenue in Note N – Segment and Geographic Revenue. In 2015, revenue by geographic region was reclassified between the United States, Taiwan and China to conform to the current year presentation by classifying consigned inventory revenue based on manufacturing location rather than consignment sale location. 3. 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, product warranty costs, share-based compensation expense, estimated useful lives of property and equipment, and taxes. 4. Foreign Currency Translation The functional currency for the Company’s foreign operations is the local currency. The assets and liabilities of these operations are translated at the rate of exchange in effect on the balance sheet date and sales and expenses are translated at monthly average rates. The resulting gains or losses from translation are included in a separate component of other comprehensive income. There is no tax effect on the foreign currency translation because it is management’s intent to reinvest the undistributed earnings of its foreign subsidiaries indefinitely. Transaction gains and losses resulting from re-measuring monetary asset and liability accounts that are denominated in a currency other than a subsidiary’s functional currency are included in net foreign exchange gain and loss and are included in net income except for intercompany long-term investment nature. The after-tax translation gain or losses from long-term investment nature of intercompany balances are treated as translation adjustments and included in comprehensive income. 5. 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. 6. 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 $10.7 million and $8.9 million at December 31, 2016 and 2015, 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, 2016, approximately $40.8 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. 7. Restricted Cash/Compensating Balances The Company is required to maintain a compensation deposit equal to 30% of its bank acceptance notes to vendors and a standby letter of credit issued for guaranty of its Taiwan credit facility with a China bank. The Company’s Taiwan subsidiary also uses time deposits for customs guarantees as well as compensation balances with a Taiwan bank for its credit facility. As of December 31, 2016 and 2015, the amount of restricted cash was $1.7 million and $4.7 million, respectively. 8. Short-Term Investments The Company invested its excess cash in bank certificates of deposit. As of December 31, 2016 and 2015, the Company invested $0.0 million and $7.9 million in certificates of deposit in RMB currencies with Taiwan banks, respectively. The maturity dates ranged 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, 2016 and 2015, the pledged certificate of deposit for such arrangement amount was $0.0 and $7.9 million, respectively. 9. 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. 10. Notes Receivable The Company carries its bank acceptance receivables at face value or discounted value if they are interest bearing. The maturity date of the receivables are all within one year of the original issuance date and are carried at face value. 11. 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 2016, 2015 and 2014, its top five customers represented 87.8%, 81.8% and 72.0% of its revenue, respectively. In 2016, Amazon, Microsoft and Arris represented 54.6%, 18.3% and 5.8% of its revenue, respectively. In 2015, Amazon, Microsoft and Cisco respresented 52.5%, 11.6% and 10.4% of its revenue, respectively. In 2014, Amazon, Cisco and a leading internet service provider represented 45.8%, 8.9% and 6.7% of its revenue, respectively. The five largest receivable balances for customers represented an aggregate of 88.3%, and 80.0% of total accounts receivable at December 31, 2016 and 2015, respectively. As of December 31, 2016, Amazon and Arris represented 62.1% and 10.6% of total accounts receivable, respectively. As of December 31, 2015, Amazon and Wesco represented 51.4% and 14.4% of total accounts receivable, respectively. 12. 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. 13. 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 3 - 7 years Computer equipment and software 3 - 10 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. 14. Intangible Assets Intangible assets consist of intellectual property that is stated at cost less accumulated amortization. As of December 31, 2016, the Company had 210 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. 15. 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 , (“ASC 360”). Long-lived assets consist primarily of property, plant and equipment. In accordance with ASC 360, the Company periodically evaluates long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When triggering event indicators are present, the Company obtains appraisals on an asset by asset basis, and will recognize an impairment loss when the sum of the appraised values is less than the carrying amounts of such assets. The appraised values, based on reasonable and supportable assumptions and projections, require subjective judgments. Depending on the assumptions and estimates used, the appraised values projected in the evaluation of long-lived assets can vary within a range of outcomes. The appraisals consider the likelihood of possible outcomes in determining the best estimate for the value of the assets. The measurement for such an impairment loss is then based on the fair value of the asset as determined by the appraisals. 16. Comprehensive Income (Loss) ASC 220, Comprehensive Income , (“ASC 220”) establishes rules for reporting and display of comprehensive income and its components. ASC 220 requires that unrealized gains and losses on the Company’s foreign currency translation adjustments be included in comprehensive income. 17. Share-based Compensation The Company accounts for share-based compensation in accordance with the provisions of ASC 718, Compensation—Stock Compensation . Share-based compensation expense is recognized based on the estimated grant date fair value, net of an estimated forfeiture rate, in order to recognize compensation cost for those shares expected to vest. Compensation cost is recognized on a straight-line basis over the vesting period of the options. 18. 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 . Specifically, the Company recognizes revenue when persuasive evidence exists of an arrangement with a customer, usually in the form of a customer purchase order; performance obligations have been satisfied; title and risk of loss have transferred to the customer; the price is fixed or determinable; and collectability is reasonably assured. The Company may offer units (samples) to current and potential customers at no charge for evaluation or qualification purposes. 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 the Company believes that its warranty accrual is adequate, the actual warranty costs may exceed the accrual, cost of sales will increase in the future. As of December 31, 2016 and 2015, the amount of accrued warranty was $705,000 and $412,000, respectively. 20. Advertising Costs Advertising costs are charged to operations as incurred and amounted to approximately $157,000, $104,000 and $100,000 for the years ended December 31, 2016, 2015 and 2014, respectively. 21. 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. 22. 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 the Company’s 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. 23. New Accounting Standards In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, providing guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. ASU 2016-18 is effective for interim and annual periods beginning after December 31, 2017, with early adoption permitted. The amendments in this ASU would be applied using a retrospective approach. The Company is evaluating the impact of the accounting standard on the financial statements. In August 2016, the FASB issued ASU NO. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The ASU update addresses eight specific cash flow issues that currently result in diverse practices, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination and separately identifiable cash flows and applicable of the predominance principle. ASU 2016-15 is effective for interim and annual periods beginning after December 31, 2017, with early adoption permitted. The Company is evaluating the impact of the accounting standard on the financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, to simplify several aspects of accounting for share-based payment transactions, including the following areas: accounting for excess tax benefits and tax deficiencies; classifying excess tax benefits on the statement of cash flows; accounting for forfeitures; classifying awards that permit share repurchases to satisfy statutory tax withholding requirements; classifying tax payments on behalf of employees on the statement of cash flows; and, for nonpublic entities only, determining the expected term and electing the intrinsic value measurement alternative for stock option awards. The new guidance is effective for public business entities in fiscal years beginning after December 15, 2016, and in the interim periods within those fiscal years. The guidance requires a mix of prospective, modified retrospective and retrospective transition. The Company expects to recognize approximately $1.3 million of windfall tax benefits as a cumulative effect adjustment to opening retained earnings in the first quarter of 2017 upon adoption of ASU 2016-09. . On February 25, 2016, the FASB released Accounting Standards Update (ASU) No. 2016-02, Leases to complete its project to overhaul lease accounting. The ASU codifies ASC 842, Leases, which will replace the guidance in ASC 840. The new guidance will require lessees to recognize most leases on the balance sheet for capital and operating leases. The new guidance is effective for public business entities in fiscal years beginning after December 15, 2018. The Company is evaluating the impact of the accounting standard on its financial statements, by reviewing the standard itself as well as reviewing literature about the new standard produced by nationally-recognized accounting firms and other third parties. The FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance is intended to improve the recognition and measurement of financial instruments. The ASU affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact of the accounting standard on its financial statements. The FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes during November 2015 , which simplifies the presentation of deferred income taxes. This ASU provides presentation requirements to classify deferred tax assets and liabilities as noncurrent in a statement of financial position. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted for any interim and annual financial statements that have not yet been issued. The ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We early adopted this standard effective December 31, 2015 on a retrospective basis which resulted in a reclassification of our net current deferred tax asset to the net non-current deferred tax asset as of December 31, 2015. The adoption of this ASU had no impact on the balance sheet or income statement as the Company had a full valuation allowance as of December 31, 2015. The FASB issued ASU No. 2015-11, Inventory in July 2015 to require entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The Company early adopted this ASU which had no material impact on the financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires the presentation of debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company early adopted this ASU which had no material impact on the financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. Public business entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company continues to evaluate the impact of the accounting standard on its financial statements. In order to determine the effect of the new standard, during 2016 the Company attended live and web-based training sessions hosted by experts on the new standard, identified key areas in our business that could be affected by the standard and hosted internal training sessions on the new standard for accounting staff. The Company has also began to evaluate its internal controls framework to identify any new controls that may be necessary to comply with the new standard. Although this determination is subject to change as the Company continues to evaluate the new standard, based on our review to date, the Company does not believe that the new standard will have a material effect on our financial statements. The Company plans to adopt the new standards after December 15, 2017. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern (Subtopic 205-40), which provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern. The update is effective for annual periods ending after December 15, 2016, and interim periods thereafter. In the fourth quarter of 2016, the Company adopted this ASU, which resulted in a determination that no going concern disclosure is needed at this time.

C. EARNINGS PER SHARE

C. EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2016
Net income per share
Earnings Per Share	NOTE C—EARNINGS PER SHARE Basic net income per share has been computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income 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, 2016 2015 2014 (in thousands, except per share data) Numerator: Net income $ $ $ Denominator: Weighted average shares used to compute net income per share Basic Effective of dilutive options, restricted stock units and warrants Diluted Net income per share Basic $ $ $ Diluted $ $ $

D. INVENTORIES

D. INVENTORIES	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
INVENTORIES	NOTE D—INVENTORIES At December 31, 2016 and 2015, inventories consisted of the following: 2016 2015 Raw materials $ $ Work in process and sub-assemblies Finished goods $ $ For the years ended December 31, 2016, 2015 and 2014, the lower of cost or market adjustment expensed for inventory was $3.7 million, $2.8 million and $0.9 million, respectively.

E. PROPERTY, PLANT AND EQUIPMEN

E. PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	NOTE E—PROPERTY, PLANT AND EQUIPMENT At December 31, 2016 and 2015, property, plant and equipment consisted of the following: 2016 2015 (in thousands) Land improvements $ $ Building and improvements Machinery and equipment Furniture and fixtures Computer equipment and software Transportation equipment Less accumulated depreciation and amortization Construction in progress Land Property, plant and equipment, net $ $ For the years ended December 31, 2016, 2015 and 2014, depreciation expense of property, plant and equipment was $13.7 million $9.0 million and $5.8 million, respectively. During the year ended December 31, 2016 and 2015, there was $0.0 million and $0.1 million of capitalized interest recorded in construction in progress, respectively

F. INTANGIBLE ASSETS

F. INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE F—INTANGIBLE ASSETS At December 31, 2016 and 2015, intangible assets consisted of the following: 2016 Gross Accumulated Intangible Amount amortization assets, net (in thousands) Patents $ $ $ Trademarks Total intangible assets $ $ $ 2015 Gross Accumulated Intangible Amount amortization assets, net (in thousands) Patents $ $ $ Trademarks Total intangible assets $ $ $ 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. For the years ended December 31, 2016, 2015 and 2014, amortization expense for intangible assets, included in general and administrative expenses on the income statement, was $0.5 million, $0.4 million and $0.4 million, respectively. The remaining weighted average amortization period for intangible assets is approximately 8.6 years. At December 31, 2016, approximate amortization expense for intangible assets was as follows (in thousands): 2017 $ 2018 2019 2020 2021 thereafter $

G. FAIR VALUE OF FINANCIAL INST

G. FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	NOTE G—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, 2016 (in thousands): Quoted prices Significant in active other markets for observable Significant identical remaining unobservable assets (Level 1) inputs (Level 2) inputs (Level 3) Total Assets: Cash and cash equivalents $ $ — $ — $ Restricted cash — — Short term investments — — Total assets $ $ — $ — $ Liabilities: Bank acceptance payable — $ — $ Total liabilities $ — $ $ — $ The following table presents a summary of the Company’s financial instruments measured at fair value on a recurring basis as of December 31, 2015 (in thousands): Quoted prices Significant in active other markets for observable Significant identical remaining unobservable assets (Level 1) inputs (Level 2) inputs (Level 3) Total Assets: Cash and cash equivalents $ $ — $ — $ Restricted cash — — Short term investments — — Total assets $ $ — $ — $ Liabilities: Bank acceptance payable — $ — $ Total liabilities $ — $ $ — $

H. NOTES PAYABLE AND LONG-TERM

H. NOTES PAYABLE AND LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Notes Payable and Long-Term Debt	NOTE H—NOTES PAYABLE AND LONG-TERM DEBT Notes payable and long-term debt consisted of the following for the periods indicated (in thousands): December 31, 2016 2015 Revolving line of credit with a U.S. bank up to $25,000 with interest at LIBOR plus 2%, maturing June 30, 2018 $ — $ Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2%, maturing July 31, 2019 Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2%, maturing June 30, 2020 Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2%, maturing January 26, 2022 Revolving line of credit with a Taiwan bank up to $10,333 with interest based on the bank's corporate interest rate index+ 1.5%, or 1.7%, matured on November 30, 2016 — Revolving line of credit with a Taiwan bank up to $6,600 with interest at Taiwan deposit index plus 0.41% or LIBOR plus 1.7%, maturing on February 6, 2017 — Revolving line of credit with a Taiwan bank up to $6,000 with interest at Taiwan Time Deposit Interest Rate Index plus 1% or LIBOR plus 1%, matured on November 27, 2016 — Revolving line of credit with the Taiwan branch of a China bank up to $10,000 with interest at LIBOR plus 1.5% or Taiwan Interbank Offered Rate plus 0.9%, maturing March 15, 2017 — Notes payable to a finance company due in monthly installments with 4.5% interest, maturing May 27, 2018 and June 30, 2018 Notes payable to a finance company due in monthly installments with 4% interest, maturing March 31, 2019 — Revolving line of credit with a China bank up to $13,300 with interest of 3.15% for 3-month term — Total Less current portion Non-current portion $ $ Bank Acceptance Notes Payable Bank acceptance notes issued to vendors with a zero percent interest rate, a 30% guarantee deposit of $638, and maturity dates ranging from January 2017 to March 2017 The current portion of long-term debt is the amount payable within one year of the balance sheet date of December 31, 2016. Maturities of notes payable and long-term debt are as follows for the future years ending December 31(in thousands): 2017 $ 2018 2019 2020 2021 2022 thereafter Total outstanding $ On June 24, 2016, the Company entered into a First Amendment to the Credit Agreement with East West Bank and Comerica Bank (“First Amendment”), a second lien deed of trust, multiple security agreements and promissory notes evidencing two credit facilities and a term loan originally entered into on June 30, 2015. The First Amendment increased the Company’s revolving lines of credit from $25 million to $40 million, which mature on June 30, 2018, and retains a $10.0 million term loan maturing on June 30, 2020. The First Amendment also provides for an additional $10.0 million equipment term loan with a one year drawdown period commencing on April 1, 2016 and maturing five years from the closing date of the First Amendment. The interest rate on these loans was lowered by the First Amendment from the LIBOR Borrowing Rate plus 2.75% or 3.0% to LIBOR Borrowing Rate plus 2.0%. As of December 31, 2016, no balance was outstanding under the revolving line of credit. As of December 31, 2016, $9.5 million was outstanding under the term loan. The Company also has a term loan with East West Bank of $5.0 million with monthly payments of principal and interest that matures on July 31, 2019. As of December 31, 2016, the outstanding balance was $2.9 million. On June 24, 2016, the Company executed a Change in Terms Agreement, Notice of Final Agreement and Modification of the Construction Loan Agreement (“Modification Agreement”) to the Construction Loan Agreement with East West Bank for up to $22.0 million dollars to finance the construction of the Company’s campus expansion plan in Sugar Land, Texas, originally dated January 26, 2015. Upon signing the original Construction Loan Agreement, the Company deposited $11.0 million into a restricted bank account for owner’s contribution of construction costs. The Modification Agreement has a fifteen-month draw down period with monthly interest payments commencing on February 26, 2015 and ending on July 31, 2016. Thereafter, the entire outstanding principal balance shall be converted to a sixty-six month term loan with principal and interest payments due monthly amortized over three hundred months. The first principal and interest payment commenced on August 26, 2016, and 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 Construction Loan Agreement, the loan bears interest at an annual rate based on the one-month LIBOR Borrowing Rate plus 2.75%, and the interest rate is reduced to LIBOR Borrowing Rate plus 2.0% under the Modification Agreement. On September 27, 2016, the Company executed a Change in Terms Agreement, Notice of Final Agreement and Second Modification to the Construction Loan Agreement (“Second Modifications”) to the Construction Loan Agreement with East West Bank. The Second Modifications amends and restates in part the Company’s Promissory Note and Construction Loan Agreement, which was originally executed on January 26, 2015, and the Modification Agreement. The draw down period end date, under the Second Modifications, was amended from July 31, 2016 to September 30, 2016. And thereafter, the entire outstanding principal balance shall be converted to a sixty-four (64) month term loan, amended from a sixty (66) month term loan, with principal and interest payments due monthly amortized over three hundred (300) months. The first principal and interest payment was due on October 26, 2016 and will continue on 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. Except as expressly changed by the Second Modifications, the terms of the original obligation and the Modification Agreement remain unchanged. As of December 31, 2016, $21.7 million was outstanding under the construction loan. The loan and security agreements with East West Bank and Comerica Bank require the Company to maintain certain financial covenants, including a minimum cash balance, a current ratio, a maximum leverage ratio and a minimum fixed charge coverage ratio. Collateral for the U.S. bank loans and line of credit includes substantially all of the assets of the Company. As of December 31, 2016, the Company was in compliance with all covenants contained in these agreements. On February 19, 2016, the Company’s Taiwan branch renewed and increased its credit facility originally dated January 6, 2015 with CTBC Bank Co. Ltd. in Taipei, Taiwan for 320 million New Taiwan dollars, or approximately $10.3 million, one-year revolving credit facility. The obligations under the credit facility are unsecured up to $6.3 million; the remaining $4.0 million is available provided that the Company purchase the same amount of secured certificates of deposit with the bank. Borrowings under the credit facility bear interest at a rate based on the bank’s corporate interest rate index plus 1.5% for the unsecured portion of the credit facility and bank’s corporate interest rate index plus 0.93% for the secured portion of the credit facility, adjusted monthly. As of the execution of the credit facility, the bank’s corporate interest rate index is 0.71%. As of December 31, 2016, there was no outstanding balance for the secured loan or under the unsecured credit facility and both credit facilities expired without renewal. On April 8, 2016, the Company’s Taiwan branch renewed its 90 million New Taiwan dollars, or approximately $2.6 million, and 120 million New Taiwan dollars, or approximately $4.0 million, one-year revolving credit facilities, originally dated March 9, 2015, with E. Sun Commercial Bank Co., Ltd. in Taipei, Taiwan. Borrowings under the 90 million New Taiwan dollars credit facility bear interest at a rate equal to the LIBOR plus 1.7% divided by 0.946. Borrowings under the 120 million New Taiwan dollars credit facility bear interest at a rate equal to the bank’s personal monthly time deposit interest rate plus 0.480%. Any future borrowings under the 120 million New Taiwan dollars credit facility are available provided that the Company purchase certificates of deposit in amounts equal to the borrowing from the bank. As of December 31, 2016, there was no outstanding balance under the 120 million New Taiwan dollars credit facility or under the 90 million New Taiwan dollars credit facility. On December 22, 2015, the Company’s Taiwan branch renewed its $4.0 million credit facility, originally dated December 20, 2013, and entered into a $2.0 million, one-year revolving credit facility agreement with Mega International Commercial Bank (“Mega Bank”). Obligations under the $4.0 million credit facility are available provided that the Company purchase certificates of deposit in amounts equal to the borrowing from Mega Bank. Borrowings under the $4.0 million credit facility bear interest at a rate not less than the LIBOR borrowing rate plus 1.0%, divided by 0.946 for U.S. and other currency borrowings; New Taiwan dollars borrowings bear interest at a rate equal to the bank’s base lending rate plus 0.76%. Borrowings under the $2.0 million credit facility bear interest at a rate not less than the LIBOR borrowing rate plus 1.2%, divided by 0.946 for U.S. dollar borrowings; New Taiwan dollars borrowings bear interest at a rate equal to the bank’s base lending rate plus 0.76% but shall not be less than 1.90%; and other currency borrowings shall bear interest at a rate at the bank’s based lending rate plus 1.0%, divided by 0.946. As of December 31, 2016, there was no outstanding balance under either credit facility and both credit facilities expired without renewal. On April 22, 2016, the Company’s Taiwan branch entered into a Comprehensive Credit Line Agreement originally dated April 1, 2015, with the Taipei branch of China Construction Bank, providing a revolving credit line of $10 million, maturing on March 15, 2017. Borrowings under the Comprehensive Credit Line Agreement are secured by a standby letter of credit issued by the China branch of the bank under existing agreements between the bank and the Company’s China subsidiary. Borrowings under the Comprehensive Credit Line Agreement reduce the amounts available under the existing credit line between the bank and the Company’s China subsidiary and cannot exceed 97% of the amount of the standby letter of credit issued by the China branch of the bank. Borrowings under the Comprehensive Credit Line Agreement bear interest at a rate negotiated separately for each drawing depending on the nature of the borrowings. As of December 31, 2016, there was no outstanding balance under this credit facility. On June 30, 2015, the Company’s Taiwan branch entered into a Purchase and Sale Contract and a Finance Lease Agreement with Chailease Finance Co, Ltd. (“Chailease”) in connection with certain equipment, structured as a sale lease-back transaction. Pursuant to the sale contract, the Company’s Taiwan branch sold certain equipment to Chailease for a purchase price of 115,240,903 New Taiwan dollars, approximately $3.7 million, and simultaneously leased the equipment back from Chailease pursuant to the Finance Lease Agreement. The monthly lease payments range from 2,088,804 New Taiwan dollars, approximately $0.1 million, to 2,364,650 New Taiwan dollars, approximately $0.1 million, during the term of the Finance Lease Agreement, including an initial payment in an amount of 40,240,903 New Taiwan dollars, approximately $1.3 million. The Finance Lease Agreement has a three-year term, with monthly payments, maturing on May 27 and June 30, 2018 respectively. The title to the equipment will be transferred to the Company’s Taiwan branch upon the expiration of the Finance Lease Agreement. As of December 31, 2016, $2.9 million was outstanding under this Finance Lease Agreement. On March 31, 2016, the Company’s Taiwan branch entered into a Purchase and Sale Contract and a Finance Lease Agreement with Chailease in connection with certain equipment, structured as a sale lease-back transaction. Pursuant to the Purchase and Sale Contract, the Company’s Taiwan branch sold certain equipment to Chailease for a purchase price of 312,927,180 New Taiwan dollars, approximately $10.1 million, and simultaneously leased the equipment back from Chailease pursuant to the Finance Lease Agreement. The Finance Lease Agreement has a three-year term with monthly lease payments range from 6,772,500 New Taiwan dollars, approximately $0.2 million, to 7,788,333 New Taiwan dollars, approximately $0.3 million, during the term of the Finance Lease Agreement, including an initial payment in an amount of 62,927,180 New Taiwan dollars, approximately $2.0 million. Based on the payments made under the Finance Lease Agreement, the annual interest rate is calculated to be 4.0%. The title to the equipment will be transferred to the Company’s Taiwan branch upon the expiration of the Finance Lease Agreement. As of December 31, 2016, $5.8 million was outstanding under this Finance Lease Agreement. As of December 31, 2016, the Company’s Chinese subsidiary had credit facilities with China Construction Bank totaling $13.2 million, which can be drawn in U.S. currency, RMB currency, issuing bank acceptance notes to vendors with different interest rates or issuing standby letters of credit. The Company pledged the land use rights and buildings of our Chinese subsidiary as collateral for the credit facility. As of December 31, 2016, the Company’s Chinese subsidiary used $10.0 million of its credit facility to issue standby letters of credit as collateral for the Company’s Taiwan branch line of credit with China Construction Bank. As of December 31, 2016, no balance was outstanding for the U.S. currency based loan. The outstanding balances of bank acceptance notes issued to vendors were $0.3 million with zero interest rate as of December 31, 2016. As of December 31, 2016 and 2015, the Company had $75.8 million and $37.7 million of unused borrowing capacity, respectively. One-month LIBOR rates were 0.77167% and 0.42950% at December 31, 2016 and 2015, respectively. As of December 31, 2016 and 2015, there was $1.7 million and $12.6 million of restricted cash, investments or security deposit associated mainly with the loan facilities, respectively.

I. ACCRUED LIABILITIES

I. ACCRUED LIABILITIES	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
ACCRUED LIABILITIES	NOTE I—ACCRUED LIABILITIES Accrued liabilities consisted of the following as of December 31: 2016 2015 (in thousands) Accrued payroll $ $ Accrued rent Accrued employee benefits Accrued state and local taxes Accrued income taxes — Advance payments Accrued product warranty Accrued commission expenses — Accrued professional fees — Accrued other $ $

J. OTHER INCOME AND EXPENSE

J. OTHER INCOME AND EXPENSE	12 Months Ended
	Dec. 31, 2016
Other income (expense)
Other Income and Expense	NOTE J—OTHER INCOME AND EXPENSE Other income and expense consisted of the following as of December 31: 2016 2015 2014 (in thousands) Foreign exchange transaction loss Government subsidy income Other non-operating gain Loss on disposal of assets $ $ $

K. INCOME TAXES

K. INCOME TAXES	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE K—INCOME TAXES The sources of the Company’s income from operations before income taxes were as follows: Year ended December 31, 2016 2015 2014 (in thousands) Domestic $ $ Foreign Total income before income taxes $ $ The provision for income tax expense for the years ended December 31, was as follows: 2016 2015 2014 Current: (in thousands) Federal $ $ $ State Foreign — — Total $ $ $ Deferred: Federal $ $ — $ — State — — Foreign — — Total $ $ — $ — Income tax (benefit) expense $ $ $ 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: 2016 2015 (in thousands) NOL carryforward $ $ Inventory reserves AMT credit Unrealized gains and losses Stock compensation Fixed assets and intangibles Other Less valuation allowance 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 was 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 $13.1 million in 2016 and increased by approximately $2.1 million in 2015. The decrease in 2016 was primarily the result of the removal of our valuation allowance on U.S. and Taiwan deferred income tax assets. The increase in 2015 was primarily the result of current year changes in deferred income tax assets and liabilities, including increases in our net operating loss carryforwards. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. In considering whether or not to continue to maintain the valuation allowance, the Company considers all available positive and negative evidence, including: historical profits and losses, forecasts of future profits or losses, and trends in the industries that the Company serves that may affect its ability to continue to generate profits. Objective evidence, such as historical losses, limits the ability to consider other subjective evidence, such as its projections for future growth. On the basis of this evaluation, as of December 31, 2016, a valuation allowance of $1.7 million has been recorded to recognize only the portion of the deferred tax asset that is more likely than not to be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased or if objective negative evidence is no longer present and additional weight is given to subjective evidence such as its projections for growth. The Company has a U.S. net operating loss carry forward of approximately $37.7 million, which expires between 2025 and 2032. The Company also has U.S. research and development tax credits of $1.5 million, which expire between 2024 and 2036. The Company has a net operating loss carryforward from its China operations of approximately $8.3 million, which expires between 2017 and 2021. Utilization of U.S. net operating losses and tax credit carry forwards are subject to an annual limitation due to the ownership change limitations set forth in Internal Revenue Code Section 382. During 2015 and 2016, the Company updated its Section 382 analysis resulting in the recognition of additional utilizable net operating losses. Additional ownership changes could result in the expiration of the net operating loss and tax credit carryforward before utilization. The U.S. NOL carryforwards and research and development tax credit carryforwards in the income tax returns filed included unrecognized tax benefits. The deferred tax assets recognized for those NOLs and tax credits are presented net of these unrecognized tax benefits. The Company has approximately $1.3 million of windfall tax benefits from previous stock option exercises that have not been recognized as of December 31, 2016. This amount will not be recognized until such time the deduction would reduce our U.S. income taxes payable. The Company used ASC 740 ordering when determining when excess tax benefits had been realized. Effective January 1, 2017, the Company will adopt new guidance (ASU 2016-09) and will record excess tax benefits or tax deficiencies from stock based compensation to the consolidated statement of income within the provision for income taxes rather than in the consolidated balance sheet within additional paid-in capital. However, the Company expects to recognize approximately $1.3 million of windfall tax benefits as a cumulative effect adjustment to opening retained earnings in the first quarter of 2017 upon adoption of ASU 2016-09. See Note B “New Accounting Standards” for additional information. A reconciliation of the U.S. federal income tax rate of 35% for the years ended December 31, to the Company’s effective income tax rate follows: 2016 2015 2014 (in thousands) Expected taxes $ $ $ Non-deductible/non-taxable items Foreign rate differences Foreign permanent differences — — Increase (decrease) in valuation allowance Section 382 limitation — Changes in tax laws or rates — — Other, net Tax (benefit) expense $ $ $ Foreign permanent differences includes the effects of this deduction, along with the effects of other foreign permanent differences and intercompany transactions. 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 2014. Global Technology, Inc. renewed its National high-tech enterprise certificate and was therefore extended its three - year tax preferential status from November 2014 to September 2017. Effective January 1, 2016, China expanded the scope of the National high-tech enterprise to include additional deductions for qualifying research and development. In general, it is the Company’s practice and intention to reinvest the earnings of its non-U.S. subsidiaries in those operations. As of December 31, 2016, the Company had not made a provision for U.S. or additional foreign withholding taxes on approximately $6.6 million of the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability related to investments in these foreign subsidiaries. As of December 31, 2016, December 31, 2015 and December 31, 2014, the total amount of unrecognized tax benefit was $1.8 million, $1.8 million, and $1.7 million, respectively. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: 2016 2015 2014 (in thousands) Unrecognized tax benefits — January 1 $ $ $ Gross increases — tax positions in prior period — Gross decreases — tax positions in prior period — Unrecognized tax benefits — December 31 $ $ $ As of December 31, 2016 and 2015, the Company had $1.8 million of unrecognized tax benefits related to U.S. tax benefits recognized for prior branch losses and research and development credits, respectively. As of December 31, 2014, the Company had $1.7 million of unrecognized tax benefits related to U.S. tax benefits recognized for prior year branch losses. If recognized, $1.8 million would have an impact on the Company’s effective tax rate. The Company believes that it is reasonably possible that none of its remaining unrecognized tax positions may be recognized by the end of 2017. 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 2016 as a result of net operating losses. During 2015, the Company also accrued no penalties or interest. The Company is subject to taxation in the United States and various states and foreign jurisdictions. The Company’s open tax years subject to examination in the U.S. federal and state jurisdictions are 2013 through 2015. To the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make adjustments up to the amount of the net operating loss or tax credit carryforward. The Company is subject to examination for tax years 2008 forward for various foreign jurisdictions.

L. SHARE-BASED COMPENSATION

L. SHARE-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION	NOTE L—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 in September 2013, 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: Weighted Weighted Weighted Average Average Average Share Price Weighted Remaining Aggregate Number of Exercise on Date of Average Contractual Intrinsic shares Price Exercise Fair Value Life Value (in thousands, except price data) Outstanding, January 1, 2014 $ $ Granted — Exercised Forfeited Expired Outstanding, December 31, 2014 Exercised $ Forfeited Outstanding, December 31, 2015 Exercised $ Forfeited Outstanding, December 31, 2016 $ $ $ Exercisable, December 31, 2016 $ $ $ Vested and expected to vest $ $ $ As of December 31, 2016, there was approximately $0.8 million of unrecognized stock option expense, net of estimated forfeitures, which is expected to be recognized over 0.8 years. Restricted Stock Unit/Awards The following is a summary of RSU/RSA activity: Weighted Average Share Weighted Aggregate Number of Price on Date Average Fair Intrinsic shares of Release Value Value (in thousands, except price data) Outstanding at January 1, 2014 Granted Released Cancelled/Forfeited Outstanding, December 31, 2014 Granted $ Released Cancelled/Forfeited Outstanding, December 31, 2015 Granted Released $ Cancelled/Forfeited Outstanding, December 31, 2016 $ $ Exercisable, December 31, 2016 $ $ Vested and expected to vest $ $ The aggregate intrinsic value of RSUs and RSAs outstanding at December 31, 2016 was $12.1 million. Unrecognized compensation expense related to these RSUs and RSAs at December 31, 2016 was $6.3 million. This expense is expected to be recognized over 2.91 years. Share-Based Compensation The Company recognizes compensation expense on a straight-line basis over the applicable vesting term of the award. The Company estimated the fair value of employee stock options at the date of the grant using the Black-Scholes option-pricing model with the following assumptions: 2014 Expected volatility % Risk-free interest rate % Expected term (years) Expected dividend yield — Estimated forfeitures % In 2016, the Company issued RSUs and RSAs as share-based compensation to employees and ceased issuing stock options. The Company estimates the fair value of RSU and RSA at the fair market value on the grant date and assumes an estimated forfeiture rate. 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 had been determined using an average of the expected volatility reported by this peer group of companies. The Company used a risk free interest rate based on the 10-year Treasury as reported during the period. The expected term of the options had 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 2016 2015 2014 (in thousands) Cost of goods sold $ $ $ Research and development Sales and marketing General and administrative Total share-based compensation expense $ $ $ Share-Based compensation - by award type 2016 2015 2014 (in thousands) Employee stock options $ $ $ Restricted stock units Warrants — — Total share-based compensation expense $ $ $

M. STOCKHOLDERS' EQUITY

M. STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Stockholders' Equity	NOTE M—STOCKHOLDERS’ EQUITY Common Stock The Company’s Amended and Restated Certificate of Incorporation authorizes the issuance of up to 45,000,000 shares of common stock, all of which have been designated voting common stock. Preferred Stock The Company’s Amended and Restated Certificate of Incorporation authorizes the issuance of up to 5,000,000 shares of preferred stock. Warrants As of December 31, 2016 and 2015, the Company had no outstanding warrants to purchase common or preferred stock. Public Offerings of Common Stock On September 25, 2013, the Company’s registration statement on Form S-1 for its 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. On June 3, 2015, the Company filed a Registration Statement on Form S-3 (the “Form S-3”) with the Securities and Exchange Commission effective June 23, 2015, providing for the public offer and sale of certain securities of the Company from time to time, at its discretion, up to an aggregate amount of $140 million. In connection with the Company’s Form S-3, the Company entered into an Equity Distribution Agreement with Raymond James & Associates, Inc. (the “sales agent”) pursuant to which the Company may issue and sell shares of the Company’s stock having an aggregate offering price of up to $40 million (the “ATM Offering”) from time to time through the sales agent. On July 16, 2015, the Company commenced sales of common stock through the ATM Offering. The Company completed its ATM Offering in August 2015 and sold 1.9 million shares at a weighted average price of $21.54 per share, providing proceeds of $38.6 million, net of expenses and underwriting discounts and commissions. On October 17, 2016, the Company filed a Registration Statement on Form S-3 (the “Form S-3”) with the Securities and Exchange Commission effective November 1, 2016, providing for the public offer and sale of certain securities of the Company from time to time, at its discretion, up to an aggregate amount of $250 million. In connection with the Company’s Form S-3, the Company entered into an Equity Distribution Agreement with Raymond James & Associates, Inc. (the “sales agent”) pursuant to which the Company may issue and sell shares of the Company’s stock having an aggregate offering price of up to $50.0 million (the “Second ATM Offering”) from time to time through the sales agent. On November 22, 2016, the Company commenced sales of common stock through the ATM Offering. As of December 31, 2016, the Company sold 1.1 million shares of common stock at a weighted average price of $24.85 per share, providing proceeds of $27.2 million, net of expenses and underwriting discounts and commissions. Recovery of Stockholder Short Swing Profit In November 2015, a member of the board of directors of the Company paid $6,000 to the Company, representing the disgorgement of short swing profits under Section 16(b) under the Exchange Act. The amount was recorded as additional paid-in capital.

N. SEGMENT AND GEOGRAPHIC INFOR

N. SEGMENT AND GEOGRAPHIC INFORMATION	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Geographic Information	NOTE N—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 where the product is manufactured. Long-lived assets in the tables below comprise only property, plant, equipment and intangible assets (in thousands): For the year ended December 31, 2016 2015 2014 Revenues: (in thousands) United States $ $ $ Taiwan China $ $ $ As of December 31, 2016 2015 2014 Long-lived assets: (in thousands) United States $ $ $ Taiwan China $ $ $ The Company serves four primary markets, the internet data center, CATV, FTTH and telecom markets. Of the Company’s total revenues in 2016, the Company earned $201.3 million, or 77.2%, from the internet data center market, $43.6 million, or 16.7%, from the CATV market, $1.6 million, or 0.6%, from the FTTH market and $12.9 million, or 5.0%, from the telecom market. Of the Company’s total revenues in 2015, the Company earned $123.2 million, or 64.9%, from the internet data center market, $53.7 million, or 28.3%, from the CATV market, $2.5 million, or 1.3%, from the FTTH market and $9.7 million, or 5.1%, from the telecom market. Of the Company’s total revenues in 2014, the Company earned $64.4 million, or 49.4%, from the internet data center market, $47.4 million, or 36.3%, from the CATV market, $13.6 million, or 10.4%, from the FTTH market and $3.9 million, or 3.0%, from the telecom market.

O. MAJOR CUSTOMERS

O. MAJOR CUSTOMERS	12 Months Ended
	Dec. 31, 2016
O. Major Customers
MAJOR CUSTOMERS	NOTE O—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 2016, 2015 and 2014, its top five customers represented 87.8%, 81.8% and 72.0% of its revenue, respectively. In 2016, Amazon, Microsoft and Arris represented 54.6%, 18.3 % and 5.8% of its revenue, respectively. In 2015, Amazon, Microsoft and Cisco represented 52.5%, 11.6% and 10.4% of its revenue, respectively. In 2014, Amazon, Cisco and a leading internet service provider represented 45.8%, 8.9% and 6.7% of its revenue, respectively. The five largest receivable balances for customers represented an aggregate of 88.3%, and 80.0% of total accounts receivable at December 31, 2016 and 2015, respectively. As of December 31, 2016, Amazon and Arris represented 62.1% and 10.6% of total accounts receivable, respectively. As of December 31, 2015, Amazon and Wesco represented 51.4% and 14.4% of total accounts receivable, respectively.

P. EMPLOYEE BENEFIT PLANS

P. EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLANS	NOTE P—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 contributions of $0.6 million, $0.4 million and $0.2 million to the 401(k) plan for the years ended December 31, 2016, 2015 and 2014, 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 the Company’s Taiwan branch participate in a pension program under the Taiwan Labor Pension Act. Pension expense for Global was $0.6 million, $0.3 million and $0.4 million in the years ended for the year ended December 31, 2016, 2015 and 2014, respectively. Pension expense for the Company’s Taiwan branch was $0.8 million, $0.6 million and $0.4 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Q. COMMITMENTS AND CONTINGENCIE

Q. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE Q—COMMITMENTS AND CONTINGENCIES Commitments The Company conducts part of its operations from leased facilities and also leases equipment. Rent expense was $1.1 million, $1.1 million and $0.8 million for the years ended December 31, 2016, 2015 and 2014, respectively. At December 31, 2016, 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) 2017 $ 2018 2019 2020 thereafter $ 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 agreement with one other executive officer. 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. 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.

R. SUBSEQUENT EVENTS

R. SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	NOTE R—SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date the financial statements were issued. On January 25, 2017, the Company’s Taiwan branch entered into an early Termination Agreement with Chailease Finance Company Ltd. (Chailease), to terminate the Purchase and Sale Contract and the Finance Lease Agreement (Lease Agreement) executed on June 30, 2015. Under the terms of the Termination Agreement, the Company agreed to pay approximately $1.2 million to Chailease which includes all costs and expenses associated with the early termination. Chailease agreed to transfer title to the Company of all property contemplated under the Lease Agreement. On February 27, 2017, the Company repaid the outstanding balance of $2.9 million on an existing $5.0 million term loan and repaid the outstanding balance of $9.5 million on an existing $10.0 million equipment term loan with East West Bank. As a result of such repayments, both the term loan and the equipment loan with East West Bank have been terminated. Between February 28, 2017 and March 2, 2017, the Company had sold 459,020 shares under the ATM Offering at a weighted average price $47.98 per share, providing proceeds of $21.6 million, net of expenses and underwriting discounts and commissions. As of March 2, 2017, the Company had completed its ATM Offering and sold a total of 1,584,620 shares at a weighted average price of $31.55, raising net proceeds of $48.8 million, net of expenses and underwriting discounts and commissions.

S. SELECTED QUARTERLY FINANCIAL

S. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)	NOTE S—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, 2016 and 2015. First Second Third Fourth Year ended December 31, 2016 Quarter Quarter Quarter Quarter Revenue $ $ $ $ Cost of goods sold Gross profit $ $ $ $ Gross margin Operating expenses: Research and development $ $ $ $ Sales and marketing General and administrative Total operating expenses $ $ $ $ Income (loss) from operations $ $ $ $ Interest and other income (expense), net Net income (loss) before taxes $ $ $ $ Income tax (expense) benefit Net income (loss) $ $ $ $ Net income (loss) per share—basic Net income (loss) per share—diluted First Second Third Fourth Year ended December 31, 2015 Quarter Quarter Quarter Quarter Revenue $ $ $ $ Cost of goods sold Gross profit $ $ $ $ Gross margin Operating expenses: Research and development $ $ $ $ Sales and marketing General and administrative Total operating expenses $ $ $ $ Income (loss) from operations $ $ $ $ Interest and other income (expense), net Net income (loss) before taxes $ $ $ $ Income tax (expense) benefit — Net income (loss) $ $ $ $ Net income (loss) per share—basic $ Net income (loss) per share—diluted $

B. SUMMARY OF SIGNIFICANT ACC27

B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	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.
Reclassifications	2. Reclassifications Certain amounts in the prior year’s financial statements have been reclassified to conform to the current year presentation. This reclassification includes the presentation of revenue in Note N – Segment and Geographic Revenue. In 2015, revenue by geographic region was reclassified between the United States, Taiwan and China to conform to the current year presentation by classifying consigned inventory revenue based on manufacturing location rather than consignment sale location.
Use of Estimates	3. 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, product warranty costs, share-based compensation expense, estimated useful lives of property and equipment, and taxes.
Foreign Currency Translation	4. Foreign Currency Translation The functional currency for the Company’s foreign operations is the local currency. The assets and liabilities of these operations are translated at the rate of exchange in effect on the balance sheet date and sales and expenses are translated at monthly average rates. The resulting gains or losses from translation are included in a separate component of other comprehensive income. There is no tax effect on the foreign currency translation because it is management’s intent to reinvest the undistributed earnings of its foreign subsidiaries indefinitely. Transaction gains and losses resulting from re-measuring monetary asset and liability accounts that are denominated in a currency other than a subsidiary’s functional currency are included in net foreign exchange gain and loss and are included in net income except for intercompany long-term investment nature. The after-tax translation gain or losses from long-term investment nature of intercompany balances are treated as translation adjustments and included in comprehensive income.
Fair Value	5. 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	6. 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 $10.7 million and $8.9 million at December 31, 2016 and 2015, 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, 2016, approximately $40.8 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	7. Restricted Cash/Compensating Balances The Company is required to maintain a compensation deposit equal to 30% of its bank acceptance notes to vendors and a standby letter of credit issued for guaranty of its Taiwan credit facility with a China bank. The Company’s Taiwan subsidiary also uses time deposits for customs guarantees as well as compensation balances with a Taiwan bank for its credit facility. As of December 31, 2016 and 2015, the amount of restricted cash was $1.7 million and $4.7 million, respectively.
Short-Term Investments	8. Short-Term Investments The Company invested its excess cash in bank certificates of deposit. As of December 31, 2016 and 2015, the Company invested $0.0 million and $7.9 million in certificates of deposit in RMB currencies with Taiwan banks, respectively. The maturity dates ranged 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, 2016 and 2015, the pledged certificate of deposit for such arrangement amount was $0.0 and $7.9 million, respectively.
Accounts Receivable/Allowance for Doubtful Accounts	. 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. 10
Note Receivable	10. Notes Receivable The Company carries its bank acceptance receivables at face value or discounted value if they are 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	11. 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 2016, 2015 and 2014, its top five customers represented 87.8%, 81.8% and 72.0% of its revenue, respectively. In 2016, Amazon, Microsoft and Arris represented 54.6%, 18.3% and 5.8% of its revenue, respectively. In 2015, Amazon, Microsoft and Cisco respresented 52.5%, 11.6% and 10.4% of its revenue, respectively. In 2014, Amazon, Cisco and a leading internet service provider represented 45.8%, 8.9% and 6.7% of its revenue, respectively. The five largest receivable balances for customers represented an aggregate of 88.3%, and 80.0% of total accounts receivable at December 31, 2016 and 2015, respectively. As of December 31, 2016, Amazon and Arris represented 62.1% and 10.6% of total accounts receivable, respectively. As of December 31, 2015, Amazon and Wesco represented 51.4% and 14.4% of total accounts receivable, respectively.
Inventories	12. 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	13. 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 3 - 7 years Computer equipment and software 3 - 10 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	14. Intangible Assets Intangible assets consist of intellectual property that is stated at cost less accumulated amortization. As of December 31, 2016, the Company had 210 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	15. 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 , (“ASC 360”). Long-lived assets consist primarily of property, plant and equipment. In accordance with ASC 360, the Company periodically evaluates long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When triggering event indicators are present, the Company obtains appraisals on an asset by asset basis, and will recognize an impairment loss when the sum of the appraised values is less than the carrying amounts of such assets. The appraised values, based on reasonable and supportable assumptions and projections, require subjective judgments. Depending on the assumptions and estimates used, the appraised values projected in the evaluation of long-lived assets can vary within a range of outcomes. The appraisals consider the likelihood of possible outcomes in determining the best estimate for the value of the assets. 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)	16. Comprehensive Income (Loss) ASC 220, Comprehensive Income , (“ASC 220”) establishes rules for reporting and display of comprehensive income and its components. ASC 220 requires that unrealized gains and losses on the Company’s foreign currency translation adjustments be included in comprehensive income.
Share-based Compensation	17. Share-based Compensation The Company accounts for share-based compensation in accordance with the provisions of ASC 718, Compensation—Stock Compensation . Share-based compensation expense is recognized based on the estimated grant date fair value, net of an estimated forfeiture rate, in order to recognize compensation cost for those shares expected to vest. Compensation cost is recognized on a straight-line basis over the vesting period of the options.
Revenue Recognition	18. 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 . Specifically, the Company recognizes revenue when persuasive evidence exists of an arrangement with a customer, usually in the form of a customer purchase order; performance obligations have been satisfied; title and risk of loss have transferred to the customer; the price is fixed or determinable; and collectability is reasonably assured. The Company may offer units (samples) to current and potential customers at no charge for evaluation or qualification purposes.
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 the Company believes that its warranty accrual is adequate, the actual warranty costs may exceed the accrual, cost of sales will increase in the future. As of December 31, 2016 and 2015, the amount of accrued warranty was $705,000 and $412,000, respectively.
Advertising Costs	20. Advertising Costs Advertising costs are charged to operations as incurred and amounted to approximately $157,000, $104,000 and $100,000 for the years ended December 31, 2016, 2015 and 2014, respectively.
Research and Development	21. 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	22. 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 the Company’s 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	23. New Accounting Standards In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash, providing guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. ASU 2016-18 is effective for interim and annual periods beginning after December 31, 2017, with early adoption permitted. The amendments in this ASU would be applied using a retrospective approach. The Company is evaluating the impact of the accounting standard on the financial statements. In August 2016, the FASB issued ASU NO. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The ASU update addresses eight specific cash flow issues that currently result in diverse practices, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination and separately identifiable cash flows and applicable of the predominance principle. ASU 2016-15 is effective for interim and annual periods beginning after December 31, 2017, with early adoption permitted. The Company is evaluating the impact of the accounting standard on the financial statements. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, to simplify several aspects of accounting for share-based payment transactions, including the following areas: accounting for excess tax benefits and tax deficiencies; classifying excess tax benefits on the statement of cash flows; accounting for forfeitures; classifying awards that permit share repurchases to satisfy statutory tax withholding requirements; classifying tax payments on behalf of employees on the statement of cash flows; and, for nonpublic entities only, determining the expected term and electing the intrinsic value measurement alternative for stock option awards. The new guidance is effective for public business entities in fiscal years beginning after December 15, 2016, and in the interim periods within those fiscal years. The guidance requires a mix of prospective, modified retrospective and retrospective transition. The Company expects to recognize approximately $1.3 million of windfall tax benefits as a cumulative effect adjustment to opening retained earnings in the first quarter of 2017 upon adoption of ASU 2016-09. . On February 25, 2016, the FASB released Accounting Standards Update (ASU) No. 2016-02, Leases to complete its project to overhaul lease accounting. The ASU codifies ASC 842, Leases, which will replace the guidance in ASC 840. The new guidance will require lessees to recognize most leases on the balance sheet for capital and operating leases. The new guidance is effective for public business entities in fiscal years beginning after December 15, 2018. The Company is evaluating the impact of the accounting standard on its financial statements, by reviewing the standard itself as well as reviewing literature about the new standard produced by nationally-recognized accounting firms and other third parties. The FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance is intended to improve the recognition and measurement of financial instruments. The ASU affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact of the accounting standard on its financial statements. The FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes during November 2015 , which simplifies the presentation of deferred income taxes. This ASU provides presentation requirements to classify deferred tax assets and liabilities as noncurrent in a statement of financial position. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted for any interim and annual financial statements that have not yet been issued. The ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We early adopted this standard effective December 31, 2015 on a retrospective basis which resulted in a reclassification of our net current deferred tax asset to the net non-current deferred tax asset as of December 31, 2015. The adoption of this ASU had no impact on the balance sheet or income statement as the Company had a full valuation allowance as of December 31, 2015. The FASB issued ASU No. 2015-11, Inventory in July 2015 to require entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The Company early adopted this ASU which had no material impact on the financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires the presentation of debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company early adopted this ASU which had no material impact on the financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. Public business entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company continues to evaluate the impact of the accounting standard on its financial statements. In order to determine the effect of the new standard, during 2016 the Company attended live and web-based training sessions hosted by experts on the new standard, identified key areas in our business that could be affected by the standard and hosted internal training sessions on the new standard for accounting staff. The Company has also began to evaluate its internal controls framework to identify any new controls that may be necessary to comply with the new standard. Although this determination is subject to change as the Company continues to evaluate the new standard, based on our review to date, the Company does not believe that the new standard will have a material effect on our financial statements. The Company plans to adopt the new standards after December 15, 2017. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern (Subtopic 205-40), which provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern. The update is effective for annual periods ending after December 15, 2016, and interim periods thereafter. In the fourth quarter of 2016, the Company adopted this ASU, which resulted in a determination that no going concern disclosure is needed at this time.

B. SUMMARY OF SIGNIFICANT ACC28

B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule of useful lives of property, plant and equipment	Useful lives Buildings 20 - 40 years Land improvements 10 years Machinery and equipment 3 - 20 years Furniture and fixtures 3 - 7 years Computer equipment and software 3 - 10 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, 2016
Net income per share
Computation of basic and diluted net loss per share	Year ended December 31, 2016 2015 2014 (in thousands, except per share data) Numerator: Net income $ $ $ Denominator: Weighted average shares used to compute net income per share Basic Effective of dilutive options, restricted stock units and warrants Diluted Net income per share Basic $ $ $ Diluted $ $ $

D. INVENTORIES (Tables)

D. INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of inventories	2016 2015 Raw materials $ $ Work in process and sub-assemblies Finished goods $ $

E. PROPERTY, PLANT AND EQUIPM31

E. PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	2016 2015 (in thousands) Land improvements $ $ Building and improvements Machinery and equipment Furniture and fixtures Computer equipment and software Transportation equipment Less accumulated depreciation and amortization Construction in progress Land Property, plant and equipment, net $ $

F. INTANGIBLE ASSETS (Tables)

F. INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	2016 Gross Accumulated Intangible Amount amortization assets, net (in thousands) Patents $ $ $ Trademarks Total intangible assets $ $ $ 2015 Gross Accumulated Intangible Amount amortization assets, net (in thousands) Patents $ $ $ Trademarks Total intangible assets $ $ $
Approximate amortization expense for intangible assets	At December 31, 2016, approximate amortization expense for intangible assets was as follows (in thousands): 2017 $ 2018 2019 2020 2021 thereafter $

G. FAIR VALUE OF FINANCIAL IN33

G. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
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, 2016 (in thousands): Quoted prices Significant in active other markets for observable Significant identical remaining unobservable assets (Level 1) inputs (Level 2) inputs (Level 3) Total Assets: Cash and cash equivalents $ $ — $ — $ Restricted cash — — Short term investments — — Total assets $ $ — $ — $ Liabilities: Bank acceptance payable — $ — $ Total liabilities $ — $ $ — $ The following table presents a summary of the Company’s financial instruments measured at fair value on a recurring basis as of December 31, 2015 (in thousands): Quoted prices Significant in active other markets for observable Significant identical remaining unobservable assets (Level 1) inputs (Level 2) inputs (Level 3) Total Assets: Cash and cash equivalents $ $ — $ — $ Restricted cash — — Short term investments — — Total assets $ $ — $ — $ Liabilities: Bank acceptance payable — $ — $ Total liabilities $ — $ $ — $

H. NOTES PAYABLE AND LONG-TER34

H. NOTES PAYABLE AND LONG-TERM DEBT (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule of notes payable and long-term debt	Notes payable and long-term debt consisted of the following for the periods indicated (in thousands): December 31, 2016 2015 Revolving line of credit with a U.S. bank up to $25,000 with interest at LIBOR plus 2%, maturing June 30, 2018 $ — $ Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2%, maturing July 31, 2019 Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2%, maturing June 30, 2020 Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2%, maturing January 26, 2022 Revolving line of credit with a Taiwan bank up to $10,333 with interest based on the bank's corporate interest rate index+ 1.5%, or 1.7%, matured on November 30, 2016 — Revolving line of credit with a Taiwan bank up to $6,600 with interest at Taiwan deposit index plus 0.41% or LIBOR plus 1.7%, maturing on February 6, 2017 — Revolving line of credit with a Taiwan bank up to $6,000 with interest at Taiwan Time Deposit Interest Rate Index plus 1% or LIBOR plus 1%, matured on November 27, 2016 — Revolving line of credit with the Taiwan branch of a China bank up to $10,000 with interest at LIBOR plus 1.5% or Taiwan Interbank Offered Rate plus 0.9%, maturing March 15, 2017 — Notes payable to a finance company due in monthly installments with 4.5% interest, maturing May 27, 2018 and June 30, 2018 Notes payable to a finance company due in monthly installments with 4% interest, maturing March 31, 2019 — Revolving line of credit with a China bank up to $13,300 with interest of 3.15% for 3-month term — Total Less current portion Non-current portion $ $ Bank Acceptance Notes Payable Bank acceptance notes issued to vendors with a zero percent interest rate, a 30% guarantee deposit of $638, and maturity dates ranging from January 2017 to March 2017
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): 2017 $ 2018 2019 2020 2021 2022 thereafter Total outstanding $

I. ACCRUED LIABILITIES (Tables)

I. ACCRUED LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Schedule of accrued liabilities	2016 2015 (in thousands) Accrued payroll $ $ Accrued rent Accrued employee benefits Accrued state and local taxes Accrued income taxes — Advance payments Accrued product warranty Accrued commission expenses — Accrued professional fees — Accrued other $ $

J. OTHER INCOME AND EXPENSE (Ta

J. OTHER INCOME AND EXPENSE (Tables)	12 Months Ended
	Dec. 31, 2016
Other income (expense)
Schedule of other income and expense	2016 2015 2014 (in thousands) Foreign exchange transaction loss Government subsidy income Other non-operating gain Loss on disposal of assets $ $ $

K. INCOME TAXES (Tables)

K. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income or loss from operations before income taxes	Year ended December 31, 2016 2015 2014 (in thousands) Domestic $ $ Foreign Total income before income taxes $ $
Provision for income tax expense	2016 2015 2014 Current: (in thousands) Federal $ $ $ State Foreign — — Total $ $ $ Deferred: Federal $ $ — $ — State — — Foreign — — Total $ $ — $ — Income tax (benefit) expense $ $ $
Net deferred tax assets and liabilities	2016 2015 (in thousands) NOL carryforward $ $ Inventory reserves AMT credit Unrealized gains and losses Stock compensation Fixed assets and intangibles Other Less valuation allowance Deferred tax assets, net $ $ —
Reconciliation of the U.S. federal income tax rate	2016 2015 2014 (in thousands) Expected taxes $ $ $ Non-deductible/non-taxable items Foreign rate differences Foreign permanent differences — — Increase (decrease) in valuation allowance Section 382 limitation — Changes in tax laws or rates — — Other, net Tax (benefit) expense $ $ $
Schedule of unrecognized tax benefits	2016 2015 2014 (in thousands) Unrecognized tax benefits — January 1 $ $ $ Gross increases — tax positions in prior period — Gross decreases — tax positions in prior period — Unrecognized tax benefits — December 31 $ $ $

L. SHARE-BASED COMPENSATION (Ta

L. SHARE-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of option activity	Weighted Weighted Weighted Average Average Average Share Price Weighted Remaining Aggregate Number of Exercise on Date of Average Contractual Intrinsic shares Price Exercise Fair Value Life Value (in thousands, except price data) Outstanding, January 1, 2014 $ $ Granted — Exercised Forfeited Expired Outstanding, December 31, 2014 Exercised $ Forfeited Outstanding, December 31, 2015 Exercised $ Forfeited Outstanding, December 31, 2016 $ $ $ Exercisable, December 31, 2016 $ $ $ Vested and expected to vest $ $ $
Summary of RSU activity	Weighted Average Share Weighted Aggregate Number of Price on Date Average Fair Intrinsic shares of Release Value Value (in thousands, except price data) Outstanding at January 1, 2014 Granted Released Cancelled/Forfeited Outstanding, December 31, 2014 Granted $ Released Cancelled/Forfeited Outstanding, December 31, 2015 Granted Released $ Cancelled/Forfeited Outstanding, December 31, 2016 $ $ Exercisable, December 31, 2016 $ $ Vested and expected to vest $ $
Assumptions used	2014 Expected volatility % Risk-free interest rate % Expected term (years) Expected dividend yield — Estimated forfeitures %
Schedule of employee stock-based compensation expenses	Share-Based compensation - by expense type 2016 2015 2014 (in thousands) Cost of goods sold $ $ $ Research and development Sales and marketing General and administrative Total share-based compensation expense $ $ $ Share-Based compensation - by award type 2016 2015 2014 (in thousands) Employee stock options $ $ $ Restricted stock units Warrants — — Total share-based compensation expense $ $ $

N. SEGMENT AND GEOGRAPHIC INF39

N. SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Revenue and asset information by geographic region	For the year ended December 31, 2016 2015 2014 Revenues: (in thousands) United States $ $ $ Taiwan China $ $ $ As of December 31, 2016 2015 2014 Long-lived assets: (in thousands) United States $ $ $ Taiwan China $ $ $

Q. COMMITMENTS AND CONTINGENC40

Q. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum rental commitments	Year ending December 31, Amount (in thousands) 2017 $ 2018 2019 2020 thereafter $

S. SELECTED QUARTERLY FINANCI41

S. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Selected Quarterly Financial Data	First Second Third Fourth Year ended December 31, 2016 Quarter Quarter Quarter Quarter Revenue $ $ $ $ Cost of goods sold Gross profit $ $ $ $ Gross margin Operating expenses: Research and development $ $ $ $ Sales and marketing General and administrative Total operating expenses $ $ $ $ Income (loss) from operations $ $ $ $ Interest and other income (expense), net Net income (loss) before taxes $ $ $ $ Income tax (expense) benefit Net income (loss) $ $ $ $ Net income (loss) per share—basic Net income (loss) per share—diluted First Second Third Fourth Year ended December 31, 2015 Quarter Quarter Quarter Quarter Revenue $ $ $ $ Cost of goods sold Gross profit $ $ $ $ Gross margin Operating expenses: Research and development $ $ $ $ Sales and marketing General and administrative Total operating expenses $ $ $ $ Income (loss) from operations $ $ $ $ Interest and other income (expense), net Net income (loss) before taxes $ $ $ $ Income tax (expense) benefit — Net income (loss) $ $ $ $ Net income (loss) per share—basic $ Net income (loss) per share—diluted $

B. SUMMARY OF SIGNIFICANT ACC42

B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - PROPERTY, PLANT AND EQUIPMENT (Details)	12 Months Ended
	Dec. 31, 2016
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	3 years
Furniture and fixtures [Member] | Maximum
Estimated useful lives	7 years
Computer equipment and software [Member] | Minimum
Estimated useful lives	3 years
Computer equipment and software [Member] | Maximum
Estimated useful lives	10 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 ACC43

B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - VARIOUS POLICIES (Details)	12 Months Ended
	Dec. 31, 2016USD ($)patent	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Cash and cash equivalents	$ 50,224,000	$ 28,074,000	$ 32,175,000	$ 22,006,000
Cash in excess of FDIC insurance	$ 40,800,000
Percentage of compensation deposit	30.00%
Restricted cash	$ 1,732,000	4,719,000
Pledged certificate of deposit for line of credit	0	7,900,000
Accrued product warranty	$ 705,000	412,000
Number of years of land use rights	50 years
Land use rights expiration date	October 7, 2054
Number of patents | patent	210
Estimated useful life	8 years 7 months 6 days
Advertising Costs	$ 157,000	$ 104,000	$ 100,000
Windfall tax benefits	$ 1,300,000
Patents [Member]
Estimated useful life	20 years
Sales Revenue, Net [Member] | Five Customers [Member]
Concentration of credit risk	87.80%	81.80%	72.00%
Sales Revenue, Net [Member] | Amazon [Member]
Concentration of credit risk	54.60%	52.50%	45.80%
Sales Revenue, Net [Member] | Microsoft [Member]
Concentration of credit risk	18.30%	11.60%
Sales Revenue, Net [Member] | Cisco [Member]
Concentration of credit risk		10.40%	8.90%
Sales Revenue, Net [Member] | Arris [Member]
Concentration of credit risk	5.80%
Sales Revenue, Net [Member] | Leading Internet Service Provider [Member]
Concentration of credit risk			6.70%
Accounts Receivable [Member] | Five Customers [Member]
Concentration of credit risk	88.30%	80.00%
Accounts Receivable [Member] | Amazon [Member]
Concentration of credit risk	62.10%	51.40%
Accounts Receivable [Member] | Arris [Member]
Concentration of credit risk	10.60%
Accounts Receivable [Member] | Wesco [Member]
Concentration of credit risk		14.40%
Foreign Accounts [Member]
Cash and cash equivalents	$ 10,700,000	$ 8,900,000
TAIWAN, PROVINCE OF CHINA
Certificates of deposit	$ 0	$ 7,900,000
Percentage of collateral pledged	100
TAIWAN, PROVINCE OF CHINA | Minimum
Maturity dates	6 months
TAIWAN, PROVINCE OF CHINA | Maximum
Maturity dates	12 months

C. EARNINGS PER SHARE - (Detail

C. EARNINGS PER SHARE - (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Numerator:
Net income	$ 14,225	$ 17,736	$ 603	$ (1,330)	$ 2,679	$ 2,700	$ 6,089	$ (675)	$ 31,234	$ 10,793	$ 4,283
Weighted average shares used to compute net income per share
Basic									17,201,731	15,626,753	14,307,477
Effective of dilutive options, restricted stock units and warrants									511,000	906,000	880,000
Weighted average shares used to compute net income per share: Diluted									17,712,928	16,532,850	15,186,961
Net income per share
Basic	$ 0.81	$ 1.03	$ 0.04	$ (0.08)	$ 0.16	$ 0.17	$ 0.41	$ (0.05)	$ 1.82	$ 0.69	$ 0.30
Diluted	$ 0.77	$ 0.97	$ 0.03	$ (0.08)	$ 0.15	$ 0.16	$ 0.38	$ (0.05)	$ 1.76	$ 0.65	$ 0.28

D. INVENTORIES (Details)

D. INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 21,518	$ 22,240
Work in process and sub-assemblies	24,334	30,766
Finished goods	5,965	13,232
Inventories	$ 51,817	$ 66,238

D. INVENTORIES - NARRATIVE (Det

D. INVENTORIES - NARRATIVE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Lower of cost or market adjustment for inventory	$ 3.7	$ 2.8	$ 0.9

E. PROPERTY, PLANT AND EQUIPM47

E. PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property, plant and equipment, gross	$ 190,183	$ 125,331
Less accumulated depreciation and amortization	(49,175)	(37,970)
Property, plant and equipment after accumulated depreciation and amortization, excluding construction in progress and land	141,008	87,361
Construction in progress	1,989	21,237
Land	1,101	1,101
Property, plant and equipment, net	144,098	109,699
Land improvements [Member]
Property, plant and equipment, gross	792	863
Building and improvements [Member]
Property, plant and equipment, gross	69,368	27,255
Machinery and equipment [Member]
Property, plant and equipment, gross	108,724	88,882
Furniture and fixtures [Member]
Property, plant and equipment, gross	4,227	2,422
Computer equipment and software [Member]
Property, plant and equipment, gross	6,836	5,615
Transportation equipment [Member]
Property, plant and equipment, gross	$ 236	$ 294

E. PROPERTY, PLANT AND EQUIPM48

E. PROPERTY, PLANT AND EQUIPMENT - NARRATIVE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 13.7	$ 9	$ 5.8
Capitalized interest on construction in progress	$ 0	$ 0.1

F. INTANGIBLE ASSETS - (Details

F. INTANGIBLE ASSETS - (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Gross Amount	$ 6,001	$ 5,460
Accumulated amortization	(2,008)	(1,560)
Intangible assets, net	3,993	3,900
Patents [Member]
Gross Amount	5,987	5,446
Accumulated amortization	(1,997)	(1,551)
Intangible assets, net	3,990	3,895
Trademarks [Member]
Gross Amount	14	14
Accumulated amortization	(11)	(9)
Intangible assets, net	$ 3	$ 5

F. INTANGIBLE ASSETS - AMORTIZA

F. INTANGIBLE ASSETS - AMORTIZATION SCHEDULE (Details) $ in Thousands	Dec. 31, 2016USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2,017	$ 466
2,018	466
2,019	466
2,020	466
2,021	467
Thereafter	1,662
Amortization expense for intangible assets	$ 3,993

F. INTANGIBLE ASSETS - NARRATIV

F. INTANGIBLE ASSETS - NARRATIVE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Amortization expense for intangible assets	$ 0.5	$ 0.4	$ 0.4
Weighted average amortization period	8 years 7 months 6 days
License
Weighted average amortization period			10 years

G. FAIR VALUE OF FINANCIAL IN52

G. FAIR VALUE OF FINANCIAL INSTRUMENTS - SUMMARY (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets:
Cash and cash equivalents	$ 50,224	$ 28,074
Restricted cash	1,740	4,719
Short term investments	44	7,886
Total assets	52,008	40,679
Liabilities:
Bank acceptance payable	307	2,998
Total liabilities	307	2,998
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Cash and cash equivalents	50,224	28,074
Restricted cash	1,740	4,719
Short term investments	44	7,886
Total assets	52,008	40,679
Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Liabilities:
Bank acceptance payable	307	2,998
Total liabilities	$ 307	$ 2,998

H. NOTES PAYABLE AND LONG_TERM

H. NOTES PAYABLE AND LONG_TERM DEBT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Notes payable and long-term debt	$ 42,826	$ 64,905
Current portion of notes payable and long-term debt	7,865	30,908
Long term portion of notes payable and long-term debt	34,961	33,997
Bank acceptance notes	$ 307	$ 2,998
London Interbank Offered Rate (LIBOR) [Member]
Basis spread on variable rate	0.77167%	0.4295%
Term loan 1
Notes payable and long-term debt	$ 2,925	$ 4,150
Debt maturity date	Jul. 31, 2019
Term loan 1 | London Interbank Offered Rate (LIBOR) [Member]
Basis spread on variable rate	2.00%
Term loan 2
Notes payable and long-term debt	$ 9,500	2,000
Debt maturity date	Jun. 30, 2020
Term loan 2 | London Interbank Offered Rate (LIBOR) [Member]
Basis spread on variable rate	2.00%
Term loan 3
Notes payable and long-term debt	$ 21,670	8,588
Debt maturity date	Jan. 26, 2022
Term loan 3 | London Interbank Offered Rate (LIBOR) [Member]
Basis spread on variable rate	2.00%
Note payable 1
Notes payable and long-term debt	$ 2,919	4,851
Debt maturity date	Jun. 30, 2018
Stated interest rate	4.50%
Note payable 2
Notes payable and long-term debt	$ 5,812
Debt maturity date	Mar. 31, 2019
Interest rate	4%
Bank Acceptance Notes Payable
Bank acceptance notes	$ 307	2,998
Revolving Line of Credit | Revolving Line of Credit 1
Notes payable and long-term debt		23,000
Debt maturity date	Jun. 30, 2018
Revolving line of credit maximum borrowing capacity	$ 25,000
Revolving Line of Credit | Revolving Line of Credit 1 | London Interbank Offered Rate (LIBOR) [Member]
Basis spread on variable rate	2.00%
Revolving Line of Credit | Revolving Line of Credit 2
Notes payable and long-term debt		2,588
Debt maturity date	Nov. 30, 2016
Revolving line of credit maximum borrowing capacity	$ 10,333
Revolving Line of Credit | Revolving Line of Credit 3
Notes payable and long-term debt		4,475
Debt maturity date	Feb. 6, 2017
Revolving line of credit maximum borrowing capacity	$ 6,600
Revolving Line of Credit | Revolving Line of Credit 3 | London Interbank Offered Rate (LIBOR) [Member]
Basis spread on variable rate	1.70%
Revolving Line of Credit | Revolving Line of Credit 3 | Taiwan Deposit Index [Member]
Basis spread on variable rate	0.41%
Revolving Line of Credit | Revolving Line of Credit 4
Notes payable and long-term debt		3,407
Debt maturity date	Nov. 27, 2016
Revolving line of credit maximum borrowing capacity	$ 6,000
Revolving Line of Credit | Revolving Line of Credit 4 | Taiwan Time Deposit Interest Rate Index [Member]
Basis spread on variable rate	1.00%
Revolving Line of Credit | Revolving Line of Credit 5
Notes payable and long-term debt		9,418
Debt maturity date	Mar. 15, 2017
Revolving line of credit maximum borrowing capacity	$ 10,000
Revolving Line of Credit | Revolving Line of Credit 5 | London Interbank Offered Rate (LIBOR) [Member]
Basis spread on variable rate	1.50%
Revolving Line of Credit | Revolving Line of Credit 5 | Taiwan Interbank Offered Rate [Member]
Basis spread on variable rate	0.90%
Revolving Line of Credit | Revolving Line of Credit 6
Notes payable and long-term debt		$ 2,428
Stated interest rate	3.15%
Revolving line of credit maximum borrowing capacity	$ 13,300
Revolving Line of Credit | Minimum | Revolving Line of Credit 2 | Corporate Interest Rate Index [Member]
Basis spread on variable rate	1.50%
Maturity dates ranging from January 2016 to June 2016
Percentage of guarantee deposit	30.00%
Guarantee deposit	$ 638
Stated interest rate	0.00%

H. NOTES PAYABLE AND LONG-TER54

H. NOTES PAYABLE AND LONG-TERM DEBT - DEBT MATURITIES (Details) $ in Thousands	Dec. 31, 2016USD ($)
Maturities of notes payable and long-term debt
2,017	$ 7,865
2,018	8,200
2,019	5,034
2,020	2,681
2,021	700
2022 thereafter	18,346
Total outstanding	$ 42,826

H. NOTES PAYABLE AND LONG-TER55

H. NOTES PAYABLE AND LONG-TERM DEBT - NARRATIVE 2 (Details) $ in Thousands	Jun. 25, 2016	Jun. 24, 2016	Feb. 19, 2016USD ($)	Jun. 30, 2015	Dec. 31, 2016TWD	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2016USD ($)
Repayments of outstanding balance						$ 163,068	$ 121,386	$ 50,733
Interest rate on line of credit description					not less than the LIBOR borrowing rate plus 1.0%, divided by 0.946 for U.S	not less than the LIBOR borrowing rate plus 1.0%, divided by 0.946 for U.S
Bank acceptance notes outstanding							2,998		$ 307
Unused borrowing capacity							37,700		75,800
Restricted cash, investments or security deposit associated with loan facilities							$ 12,600		1,700
Construction Loan 1
Interest rate on line of credit description					LIBOR Borrowing Rate plus 2.0%	LIBOR Borrowing Rate plus 2.0%
London Interbank Offered Rate (LIBOR) [Member]
Basis spread on variable rate					0.77167%	0.77167%	0.4295%
Letter of Credit [Member]
Revolving line of credit maximum borrowing capacity									10,000
TAIWAN, PROVINCE OF CHINA | Minimum
Maturity dates					6 months	6 months
TAIWAN, PROVINCE OF CHINA | Maximum
Maturity dates					12 months	12 months
Comprehensive Credit Line Agreement [Member]
Revolving line of credit maximum borrowing capacity									10,000
Revolving line of credit, maturity date					Mar. 15, 2017	Mar. 15, 2017
Debt maturity date					Mar. 15, 2017	Mar. 15, 2017
Note payable									0
Revolving line of credit, maturity date					Apr. 22, 2016	Apr. 22, 2016
East West Bank and Comerica Bank [Member]
Revolving line of credit maximum borrowing capacity									10,000
Interest rate on line of credit description					LIBOR Borrowing Rate plus 2.0%	LIBOR Borrowing Rate plus 2.0%
Interest rate description	LIBOR	LIBOR
Basis spread on variable rate	31.00%
Term of revolving credit facility		5 years
East West Bank and Comerica Bank [Member] | Minimum
Basis spread on variable rate		2.75%
East West Bank and Comerica Bank [Member] | Maximum
Basis spread on variable rate		3.00%
East West Bank and Comerica Bank [Member] | Term Loan [Member]
Revolving line of credit maximum borrowing capacity									10,000
Revolving line of credit amount outstanding									9,500
Revolving line of credit, maturity date					Jun. 30, 2020	Jun. 30, 2020
Debt maturity date					Jun. 30, 2020	Jun. 30, 2020
East West Bank and Comerica Bank [Member] | Credit Agreement [Member]
Revolving line of credit maximum borrowing capacity									25,000
Interest rate on line of credit description					LIBOR Borrowing Rate plus 2.75% or 3.0%	LIBOR Borrowing Rate plus 2.75% or 3.0%
East West Bank [Member] | Construction Loan 1
Revolving line of credit maximum borrowing capacity									22,000
Revolving line of credit, maturity date					Sep. 27, 2016	Sep. 27, 2016
Interest rate on line of credit description					LIBOR Borrowing Rate plus 2.75%	LIBOR Borrowing Rate plus 2.75%
Debt maturity date					Sep. 27, 2016	Sep. 27, 2016
East West Bank [Member] | Term Loan [Member]
Revolving line of credit maximum borrowing capacity									5,000
Deposit for owners contribution									11,000
Revolving line of credit amount outstanding									2,900
CTBC Bank Co. Ltd. [Member]
Revolving line of credit maximum borrowing capacity			$ 4,000						10,300
Revolving line of credit amount outstanding									6,300
Revolving line of credit, maturity date					Feb. 19, 2016	Feb. 19, 2016
Interest rate on line of credit description			bank's corporate interest rate index plus 0.93% for the secured portion of the credit facility, adjusted monthly. As of the execution of the credit facility, the bank's corporate interest rate index is 0.71%		Bank's corporate interest rate plus 1.5% for unsecured facility and plus 0.93% for secured facility, adjusted monthly, as of execution bank corporate interest rate is 0.71%	Bank's corporate interest rate plus 1.5% for unsecured facility and plus 0.93% for secured facility, adjusted monthly, as of execution bank corporate interest rate is 0.71%
Debt maturity date					Feb. 19, 2016	Feb. 19, 2016
Note payable									0
CTBC Bank Co. Ltd. [Member] | Taiwan, New Dollars
Revolving line of credit maximum borrowing capacity | TWD					TWD 320,000,000
E. Sun Commercial Bank [Member] | Credit Agreement [Member]
Interest rate on line of credit description					LIBOR plus 1.7% divided by 0.946	LIBOR plus 1.7% divided by 0.946
E. Sun Commercial Bank [Member] | First Credit Facility [Member]
Revolving line of credit maximum borrowing capacity									2,600
Revolving line of credit, maturity date					Apr. 8, 2016	Apr. 8, 2016
Debt maturity date					Apr. 8, 2016	Apr. 8, 2016
E. Sun Commercial Bank [Member] | First Credit Facility [Member] | Taiwan, New Dollars
Revolving line of credit maximum borrowing capacity | TWD					TWD 90,000,000
E. Sun Commercial Bank [Member] | Second Credit Facility [Member]
Revolving line of credit maximum borrowing capacity									4,000
Revolving line of credit amount outstanding									0
Interest rate on line of credit description					bank's personal monthly time deposit interest rate plus 0.480%	bank's personal monthly time deposit interest rate plus 0.480%
E. Sun Commercial Bank [Member] | Second Credit Facility [Member] | Taiwan, New Dollars
Revolving line of credit maximum borrowing capacity | TWD					TWD 120,000,000
Mega International Commercial Bank [Member] | First Credit Facility [Member]
Revolving line of credit maximum borrowing capacity									4,000
Revolving line of credit amount outstanding									0
Revolving line of credit, maturity date					Dec. 22, 2015	Dec. 22, 2015
Interest rate on line of credit description					not less than the LIBOR borrowing rate plus 1.0%, divided by 0.946 for U.S. and other currency borrowings	not less than the LIBOR borrowing rate plus 1.0%, divided by 0.946 for U.S. and other currency borrowings
Debt maturity date					Dec. 22, 2015	Dec. 22, 2015
Mega International Commercial Bank [Member] | Second Credit Facility [Member]
Revolving line of credit maximum borrowing capacity									2,000
Revolving line of credit amount outstanding									2,000
Interest rate on line of credit description					not less than the LIBOR borrowing rate plus 1.2%, divided by 0.946 for U.S. dollar borrowings	not less than the LIBOR borrowing rate plus 1.2%, divided by 0.946 for U.S. dollar borrowings
Mega International Commercial Bank [Member] | Second Credit Facility [Member] | Base Rate
Basis spread on variable rate					0.76%	0.76%
Base lending rate plus					1	1
Mega International Commercial Bank [Member] | Second Credit Facility [Member] | Base Rate | Minimum
Basis spread on variable rate					1.90%	1.90%
China Construction Bank
Revolving line of credit maximum borrowing capacity									13,200
Revolving line of credit, maturity date					Dec. 31, 2016	Dec. 31, 2016
Debt maturity date					Dec. 31, 2016	Dec. 31, 2016
Note payable									$ 0
Effective interest rate					0.00%				0.00%
Bank acceptance notes outstanding									$ 300
Chailease Finance Co. Ltd. [Member] | Finance Lease [Member]
Note payable									2,900
Chailease Finance Co. Ltd. [Member] | Finance Lease 1 [Member]
Revolving line of credit, maturity date					Jun. 30, 2015	Jun. 30, 2015
Debt maturity date					Jun. 30, 2015	Jun. 30, 2015
Revolving line of credit, maturity date					Jun. 30, 2018	Jun. 30, 2018
Chailease Finance Co. Ltd. [Member] | Finance Lease 1 [Member] | Purchase and Sale Contract and a Finance Lease Agreement
Note payable									3,700
Lease purchase price | TWD					TWD 115,240,903
Intial payment amount					40,240,903	$ 1,300
Financial lease term				3 years
Chailease Finance Co. Ltd. [Member] | Finance Lease 1 [Member] | Purchase and Sale Contract and a Finance Lease Agreement | Minimum
Lease payment range price					2,088,804	100
Chailease Finance Co. Ltd. [Member] | Finance Lease 1 [Member] | Purchase and Sale Contract and a Finance Lease Agreement | Maximum
Lease payment range price					TWD 2,364,650	$ 100
Chailease Finance Co. Ltd. [Member] | Finance Lease 2 [Member]
Revolving line of credit, maturity date					Mar. 31, 2016	Mar. 31, 2016
Debt maturity date					Mar. 31, 2016	Mar. 31, 2016
Note payable									5,800
Lease purchase price					TWD 312,927,180	$ 10,100
Financial lease term					3 years	3 years
Financial lease Interest rate					4.00%	4.00%
Chailease Finance Co. Ltd. [Member] | Finance Lease 2 [Member] | Minimum
Intial payment amount					TWD 6,772,500	$ 200
Lease payment range price | TWD					62,927,180
Chailease Finance Co. Ltd. [Member] | Finance Lease 2 [Member] | Maximum
Intial payment amount					TWD 7,788,333	300
Lease payment range price						$ 2,000
Revolving Line of Credit | Revolving Line of Credit 2
Revolving line of credit maximum borrowing capacity									10,333
Revolving line of credit, maturity date					Nov. 30, 2016	Nov. 30, 2016
Debt maturity date					Nov. 30, 2016	Nov. 30, 2016
Revolving Line of Credit | Revolving Line of Credit 2 | Corporate Interest Rate Index [Member] | Minimum
Basis spread on variable rate					1.50%	1.50%
Revolving Line of Credit | Revolving Line of Credit 3
Revolving line of credit maximum borrowing capacity									6,600
Revolving line of credit, maturity date					Feb. 6, 2017	Feb. 6, 2017
Debt maturity date					Feb. 6, 2017	Feb. 6, 2017
Revolving Line of Credit | Revolving Line of Credit 3 | London Interbank Offered Rate (LIBOR) [Member]
Basis spread on variable rate					1.70%	1.70%
Revolving Line of Credit | Revolving Line of Credit 3 | Taiwan Deposit Index [Member]
Basis spread on variable rate					0.41%	0.41%
Revolving Line of Credit | Revolving Line of Credit 4
Revolving line of credit maximum borrowing capacity									6,000
Revolving line of credit, maturity date					Nov. 27, 2016	Nov. 27, 2016
Debt maturity date					Nov. 27, 2016	Nov. 27, 2016
Revolving Line of Credit | Revolving Line of Credit 5
Revolving line of credit maximum borrowing capacity									10,000
Revolving line of credit, maturity date					Mar. 15, 2017	Mar. 15, 2017
Debt maturity date					Mar. 15, 2017	Mar. 15, 2017
Revolving Line of Credit | Revolving Line of Credit 5 | London Interbank Offered Rate (LIBOR) [Member]
Basis spread on variable rate					1.50%	1.50%
Revolving Line of Credit | Revolving Line of Credit 5 | Taiwan Interbank Offered Rate [Member]
Basis spread on variable rate					0.90%	0.90%
Revolving Line of Credit | East West Bank and Comerica Bank [Member]
Revolving line of credit maximum borrowing capacity									$ 40,000
Revolving line of credit, maturity date					Jun. 24, 2016	Jun. 24, 2016
Debt maturity date					Jun. 24, 2016	Jun. 24, 2016
Revolving line of credit, maturity date					Jun. 30, 2018	Jun. 30, 2018

I. ACCRUED LIABILITIES SCHEDULE

I. ACCRUED LIABILITIES SCHEDULES (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued payroll	$ 9,231	$ 6,757
Accrued rent	959	792
Accrued employee benefits	1,572	1,379
Accrued state and local taxes	607	372
Accrued income taxes	974
Advance payments	252	1,258
Accrued product warranty	705	412
Accrued commission expenses	205
Accrued professional fees	163
Accrued other	758	536
Total accrued liabilities	$ 15,426	$ 11,506

J. OTHER INCOME AND EXPENSE (De

J. OTHER INCOME AND EXPENSE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other income (expense)
Foreign exchange transaction loss	$ (617)	$ (1,847)	$ (1,002)
Government subsidy income	164	217	271
Other non-operating gain	32	117	44
Loss on disposal of assets	(126)	(78)	(12)
Other income and expense, net	$ (547)	$ (1,591)	$ (699)

K. INCOME TAXES - OPERATIONS IN

K. INCOME TAXES - OPERATIONS INCOME (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Domestic									$ 10,047	$ 14,062	$ 1,226
Foreign (loss) income									10,956	(2,894)	3,256
Income(loss) before income taxes	$ 15,466	$ 6,404	$ 655	$ (1,522)	$ 2,513	$ 3,106	$ 6,224	$ (675)	$ 21,003	$ 11,168	$ 4,482

K. INCOME TAXES - PROVISION FOR

K. INCOME TAXES - PROVISION FOR INCOME TAX EXPENSE (Details) - USD ($) $ in Thousands	3 Months Ended							12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current
Federal								$ (15)	$ 168	$ 193
State								256	207	6
Foreign								962
Total								1,203	375	199
Deferred:
Federal								(10,794)
State								(130)
Foreign								(510)
Total								(11,434)
Tax (benefit) expense	$ 1,241	$ (11,332)	$ 52	$ (192)	$ (166)	$ 406	$ 135	$ (10,231)	$ 375	$ 199

K. INCOME TAXES - DEFERRED INCO

K. INCOME TAXES - DEFERRED INCOME TAXES (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
NOL Carryforward	$ 12,866	$ 14,318
Inventory reserves	869	1,616
AMT credit	424	347
Unrealized gains and losses		1,549
Unrealized gains	(6)
Stock compensation	1,453	1,084
Fixed assets and intangibles	(2,777)	(4,432)
Other	255	244
Deferred tax assets, gross	13,084	14,726
Less valuation allowance	(1,663)	$ (14,726)
Deferred tax assets, net	$ 11,421

K. INCOME TAXES - RECONCILIATIO

K. INCOME TAXES - RECONCILIATION (Details) - USD ($) $ in Thousands	3 Months Ended							12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Expected (benefit) taxes								$ 7,351	$ 3,797	$ 1,524
Non-deductible/non-taxable items								565	157	138
Foreign rate differences								(654)	(1,267)	295
Foreign permanent differences								(1,005)
Increase (decrease) in valuation allowance								(13,063)	2,052	(1,729)
Section 382 limitation								(3,065)	(4,382)
Changes in tax laws or rates								(361)
Other, net								1	18	(29)
Tax (benefit) expense	$ 1,241	$ (11,332)	$ 52	$ (192)	$ (166)	$ 406	$ 135	$ (10,231)	$ 375	$ 199

K. INCOME TAXES - UNRECOGNIZED

K. INCOME TAXES - UNRECOGNIZED TAX BENEFIT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Unrecognized tax benefits - January 1	$ 1,659	$ 2,200
Gross increases - tax positions in prior period	332	1,659
Gross decreases - tax positions in prior period	194	2,200
Unrecognized tax benefits - December 31	$ 1,797	$ 1,659

K. INCOME TAXES - NARRATIVE (De

K. INCOME TAXES - NARRATIVE (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Windfall tax benefits unrecognized	$ 1,300,000
Valuation allowance increase (decrease)	13,100,000	$ 2,100,000
Valuation allowance	1,663,000	14,726,000
Net operating loss carryforward	$ 37,700,000
Loss carryforward expiration date	Dec. 31, 2032
Research and development tax credits	$ 1,500,000
Research and development tax credit expiration date	Dec. 31, 2036
Federal income tax rate	35.00%
China income tax rate	25.00%
Provision on foreign subsidiariess	$ 6,600,000
Impact on effective tax rate	1,800,000
Unrecognized tax benefits	1,797,000	1,797,000	$ 1,659,000	$ 2,200,000
Accrued penalties or interest		$ 0
CHINA
Net operating loss carryforward	$ 8,300,000
Loss carryforward expiration date	Dec. 31, 2021
Global [Member]
China income tax rate	15.00%
Tax rate effective period	3 years
Extended period of tax preferential status	3 years

L. SHARE-BASED COMPENSATION - O

L. SHARE-BASED COMPENSATION - OPTION ACTIVITY (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of Shares
Outstanding, beginning balance	1,310	1,423	1,468
Granted			108
Exercised	(159)	(81)	(104)
Forfeited	(21)	(32)	(48)
Expired			(1)
Outstanding, ending balance	1,130	1,310	1,423
Exericsable, ending balance	877
Vested and expected to vest	1,122
Weighted Average Exercise Price
Outstanding, beginning balance	$ 9.07	$ 8.96	$ 8.38
Granted			13.84
Exercised	6.91	7.09	6.22
Forfeited	7.96	8.96	8.23
Expired			6.21
Outstanding, ending balance	9.40	9.07	8.96
Exericsable, ending balance	9.18
Vested and expected to vest	9.39
Weighted Average Share Price on Date of Exercise	19.90	16.53
Weighted Average Fair Value [Abstract]
Outstanding, beginning balance	4.59	4.48	4.17
Granted			7.24
Exercised	2.56	2.62	2.57
Forfeited	3.29	4.43	5.43
Expired			2.21
Outstanding, ending balance	4.90	$ 4.59	$ 4.48
Exericsable, ending balance	4.78
Vested and expected to vest	$ 4.90
Weighted Average Remaining Contractual Life
Outstanding, ending balance	6 years 4 months 29 days
Exercisable, ending balance	6 years 4 months
Vested and expected to vest	6 years 4 months 28 days
Aggregate Intrinsic Value
Aggregate intrinsic value, beginning balance	$ 10,598	$ 3,486	$ 9,731
Exercised	2,071	762	1,476
Forfeited	273	212	628
Expired			11
Aggregate intrinsic value, ending balance	15,872	$ 10,598	$ 3,486
Exercisable, ending balance	12,499
Vested and expected to vest	$ 15,767

L. SHARE-BASED COMPENSATION - R

L. SHARE-BASED COMPENSATION - RESTRICTED STOCK UNITS (Details) - Restricted stock units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of shares
Outstanding, beginning balance	152	21	33
Granted	497	156	25
Released	(122)	(19)	(33)
Cancelled/Forfeited	(10)	(6)	(4)
Outstanding, ending balance	517	152	21
Exercisable, ending balance	25
Vested and expected to vest	501
Weighted Average Share Price On Date Of Granted		$ 13.62
Weighted Average Share Price on Date of Release	$ 13.50
Weighted Average Fair Value
Outstanding, beginning balance	11.20	18.22	$ 10
Granted	15.73	11.06	18.45
Released	14.08	18.24	10.57
Cancelled/Forfeited	15.38	10	18.20
Outstanding, ending balance	14.79	$ 11.20	$ 18.22
Exercisable, ending balance	11.41
Vested and expected to vest	$ 14.77
Aggregate Intrinsic Value [Abstract]
Aggregate intrinsic value, outstanding	$ 2,611	$ 238
Granted	7,815	1,722
Released	1,644	257
Cancelled/Forfeited	180	99
Aggregate intrinsic value, outstanding	12,128	$ 2,611	$ 238
Exercisable, ending balance	575
Vested and expected to vest	$ 11,752

L. SHARE-BASED COMPENSATION - A

L. SHARE-BASED COMPENSATION - ASSUMPTIONS (Details) - Employee Stock Option [Member]	12 Months Ended
	Dec. 31, 2014
Expected volatility	52.00%
Risk-free interest rate	1.89%
Expected term (years)	6 years 3 months
Estimated forfeitures	7.50%

L. SHARE-BASED COMPENSATION - S

L. SHARE-BASED COMPENSATION - SHARE-BASED COMPENSATION BY AWARD TYPE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Total share-based compensation expense	$ 3,833	$ 2,120	$ 2,061
Employee Stock Option [Member]
Total share-based compensation expense	1,460	1,538	1,660
Restricted stock units
Total share-based compensation expense	$ 2,373	$ 582	385
Warrants [Member]
Total share-based compensation expense			$ 16

L. SHARE-BASED COMPENSATION - N

L. SHARE-BASED COMPENSATION - NARRATIVE (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)plan	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Number of incentive plans | plan	5
Options Exercisable (as a percent)	25.00%
Options Expiration Period	10 years
Unrecognized compensation expense	$ 800
Unrecognized compensation expense recognized period	9 months 18 days
Minimum
Vesting period	4 years
Maximum
Vesting period	10 years
Restricted stock units
Unrecognized compensation expense	$ 6,300
Unrecognized compensation expense recognized period	2 years 10 months 28 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding	$ 12,128	$ 2,611	$ 238

L. SHARE-BASED COMPENSATION -69

L. SHARE-BASED COMPENSATION - SHARE-BASED COMPENSATION EXPENSE 1 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Total share-based compensation expense	$ 3,833	$ 2,120	$ 2,061
Employee Stock Option [Member]
Total share-based compensation expense	1,460	1,538	1,660
Restricted stock units
Total share-based compensation expense	2,373	582	385
Warrants [Member]
Total share-based compensation expense			16
Cost of sales [Member]
Total share-based compensation expense	190	70	88
Research and development [Member]
Total share-based compensation expense	591	230	115
Sales and marketing [Member]
Total share-based compensation expense	357	217	98
General and administrative [Member]
Total share-based compensation expense	$ 2,695	$ 1,603	$ 1,760

L. SHARE-BASED COMPENSATION -70

L. SHARE-BASED COMPENSATION - SHARE-BASED COMPENSATION EXPENSE 2 (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016USD ($)
Compensation cost on unvested options not yet recognized	$ 0.8
Compensation cost unrecognized weighted average period	9 months 18 days
Restricted stock units
Compensation cost on unvested options not yet recognized	$ 6.3
Compensation cost unrecognized weighted average period	2 years 10 months 28 days

M. STOCKHOLDERS' EQUITY - NARRA

M. STOCKHOLDERS' EQUITY - NARRATIVE (Details) - USD ($)	Mar. 02, 2017	Oct. 17, 2016	Jun. 03, 2015	Mar. 28, 2014	Mar. 25, 2014	Mar. 19, 2014	Oct. 01, 2013	Aug. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Nov. 30, 2015
Common stock shares authorized									45,000,000	45,000,000		45,000,000
Preferred Stock shares authorized									5,000,000	5,000,000		5,000,000
Warrants outstanding									$ 0			$ 0
Stock sold new, shares issued					1,600,000	2,000,000	3,600,000
Issuance of common stock, net value									27,237,000	$ 38,648,000	$ 45,681,000
Net proceeds from sale of stock						$ 45,700,000	$ 31,500,000
Additional paid in capital													$ 6,000,000
Weighted average price per share						$ 24.25	$ 10
Aggregate share price			$ 140,000,000
Common stock, shares					1,600,000	2,000,000	3,600,000
Share price						$ 24.25	$ 10
Proceeds from common share									$ 27,237,000	$ 38,648,000	$ 45,681,000
ATM Offering [Member]
Stock sold new, shares issued		250,000,000						1,900,000
Issuance of common stock, net value								$ 38,600,000
Weighted average price per share								$ 21.54
Common stock, shares		250,000,000						1,900,000
Proceeds from common share	$ 48,800,000
Second ATM Offering [Member]
Stock sold new, shares issued		50,000,000							1.10
Weighted average price per share									$ 24.85
Common stock, shares		50,000,000							1.10
Proceeds from common share									$ 27,200,000
Raymond James & Associates [Member] | ATM Offering [Member]
Aggregate share price												$ 40,000,000
Over-Allotment Option [Member]
Stock sold new, shares issued				400,000
Common stock, shares				400,000

N. SEGMENT AND GEOGRAPHIC INF72

N. SEGMENT AND GEOGRAPHIC INFORMATION - REVENUES (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2016USD ($)item	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Number of Reportable segment | item									1
Revenues	$ 84,900	$ 70,137	$ 55,254	$ 50,422	$ 52,952	$ 57,085	$ 49,632	$ 30,234	$ 260,713	$ 189,903	$ 130,449
UNITED STATES
Revenues									18,035	16,766	30,723
TAIWAN, PROVINCE OF CHINA
Revenues									161,611	141,107	77,680
CHINA
Revenues									$ 81,067	$ 32,030	$ 22,046

N. SEGMENT AND GEOGRAPHIC INF73

N. SEGMENT AND GEOGRAPHIC INFORMATION - LONG LIVED ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Long-lived assets	$ 148,869	$ 114,453	$ 69,571
UNITED STATES
Long-lived assets	66,028	44,280	15,875
TAIWAN, PROVINCE OF CHINA
Long-lived assets	48,728	45,420	35,688
CHINA
Long-lived assets	$ 34,113	$ 24,753	$ 18,008

N. SEGMENT AND GEOGRAPHIC INF74

N. SEGMENT AND GEOGRAPHIC INFORMATION - NARRATIVE (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues	$ 84,900	$ 70,137	$ 55,254	$ 50,422	$ 52,952	$ 57,085	$ 49,632	$ 30,234	$ 260,713	$ 189,903	$ 130,449
Internet data center [Member] | Sales Revenue, Net [Member]
Revenues									$ 201,300	$ 123,200	$ 64,400
Concentration percentage									77.20%	64.90%	49.40%
CATV markets [Member] | Sales Revenue, Net [Member]
Revenues									$ 43,600	$ 53,700	$ 47,400
Concentration percentage									16.70%	28.30%	36.30%
FTTH markets [Member] | Sales Revenue, Net [Member]
Revenues									$ 1,600	$ 2,500	$ 13,600
Concentration percentage									0.60%	1.30%	10.40%
Telecom markets [Member] | Sales Revenue, Net [Member]
Revenues									$ 12,900	$ 9,700	$ 3,900
Concentration percentage									5.00%	5.10%	3.00%

O. MAJOR CUSTOMERS - NARRATIVE

O. MAJOR CUSTOMERS - NARRATIVE (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Sales Revenue, Segment [Member] | Five Customers [Member]
Concentration risk	87.80%	81.80%	72.00%
Sales Revenue, Segment [Member] | Amazon [Member]
Concentration risk	54.60%	52.50%	45.80%
Sales Revenue, Segment [Member] | Microsoft [Member]
Concentration risk	18.30%	11.60%
Sales Revenue, Segment [Member] | Cisco Systems, Inc. [Member]
Concentration risk		10.40%	8.90%
Sales Revenue, Segment [Member] | Leading Internet Service Provider [Member]
Concentration risk			6.70%
Sales Revenue, Segment [Member] | Arris [Member]
Concentration risk	5.80%
Accounts Receivable [Member] | Five Customers [Member]
Concentration risk	88.30%	80.00%
Accounts Receivable [Member] | Amazon [Member]
Concentration risk	62.10%	51.40%
Accounts Receivable [Member] | Wesco [Member]
Concentration risk		14.40%
Accounts Receivable [Member] | Arris [Member]
Concentration risk	10.60%

P. EMPLOYEE BENEFIT PLANS - NAR

P. EMPLOYEE BENEFIT PLANS - NARRATIVE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Company contributions for 401(k)	$ 0.6	$ 0.4	$ 0.2
Global [Member]
Pension expense	0.6	0.3	0.4
Parent Company [Member]
Pension expense	$ 0.8	$ 0.6	$ 0.4

Q. COMMITMENTS AND CONTINGENC77

Q. COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Dec. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,017	$ 902
2,018	945
2,019	1,000
2,020	995
thereafter	8,882
Total future rental commitment	$ 12,724

Q. COMMITMENTS AND CONTINGENC78

Q. COMMITMENTS AND CONTINGENCIES - NARRATIVE (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 1.1	$ 1.1	$ 0.8

R. SUBSEQUENT EVENTS - NARRATIV

R. SUBSEQUENT EVENTS - NARRATIVE (Details) - USD ($)	Mar. 02, 2017	Mar. 02, 2017	Feb. 27, 2017	Jan. 25, 2017	Oct. 17, 2016	Jun. 25, 2016	Jun. 24, 2016	Mar. 25, 2014	Mar. 19, 2014	Oct. 01, 2013	Aug. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Repayments of debt												$ 5,855,000	$ 2,413,000	$ 8,076,000
Repayments of outstanding balance												163,068,000	121,386,000	50,733,000
Common stock, value												27,237,000	38,648,000	45,681,000
Common stock, shares								1,600,000	2,000,000	3,600,000
Proceeds from common stock offering, net												27,237,000	$ 38,648,000	$ 45,681,000
East West Bank and Comerica Bank [Member]
Revolving line of credit maximum borrowing capacity												$ 10,000,000
Term of revolving credit facility							5 years
Interest rate description						LIBOR	LIBOR
Subsequent Event [Member] | East West Bank [Member]
Repayments of outstanding balance			$ 9,500,000
Revolving line of credit maximum borrowing capacity			10,000,000
ATM Offering [Member]
Common stock, value											$ 38,600,000
Common stock, shares					250,000,000						1,900,000
Weighted average price per share											$ 21.54
Proceeds from common stock offering, net		$ 48,800,000
ATM Offering [Member] | Subsequent Event [Member]
Common stock, value	$ 21,600,000
Common stock, shares	459,020	1,584,620
Weighted average price per share	$ 47.98	$ 31.55
Second ATM Offering [Member]
Common stock, shares					50,000,000							1.10
Weighted average price per share												$ 24.85
Proceeds from common stock offering, net												27,200,000
Purchase and Sale Contract and a Finance Lease Agreement | Subsequent Event [Member] | Chailease Finance Co. Ltd. [Member]
Termination agreement payment				$ 1,200,000
Term Loan [Member] | East West Bank [Member]
Revolving line of credit maximum borrowing capacity												5,000,000
Term Loan [Member] | East West Bank and Comerica Bank [Member]
Revolving line of credit maximum borrowing capacity												10,000,000
Term Loan [Member] | Subsequent Event [Member] | East West Bank and Comerica Bank [Member]
Repayments of outstanding balance			2,900,000
Revolving line of credit maximum borrowing capacity			$ 5,000,000
Letter of Credit [Member]
Revolving line of credit maximum borrowing capacity												$ 10,000,000

S. SELECTED QUARTERLY FINANCI80

S. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 84,900	$ 70,137	$ 55,254	$ 50,422	$ 52,952	$ 57,085	$ 49,632	$ 30,234	$ 260,713	$ 189,903	$ 130,449
Cost of goods sold	52,662	46,976	37,952	36,169	37,334	39,032	32,901	20,183	173,759	129,450	86,203
Gross Profit	$ 32,238	$ 23,161	$ 17,302	$ 14,253	$ 15,618	$ 18,053	$ 16,731	$ 10,051	86,954	60,453	44,246
Gross margin	38.00%	33.00%	31.30%	28.30%	29.50%	31.60%	33.70%	33.20%
Operating expenses:
Research and development	$ 7,208	$ 8,362	$ 7,814	$ 8,396	$ 5,960	$ 5,386	$ 4,701	$ 4,805	31,780	20,852	15,970
Sales and marketing	1,743	1,594	1,610	1,680	1,633	1,582	1,607	1,559	6,627	6,381	6,043
General and administrative	7,443	6,445	5,906	5,733	5,271	4,963	4,534	5,003	25,527	19,771	17,095
Total operating expenses	16,394	16,401	15,330	15,809	12,864	11,931	10,842	11,367	63,934	47,004	39,108
Income (loss) from operations	15,844	6,760	1,972	(1,556)	2,754	6,122	5,889	(1,316)	23,020	13,449	5,138
Interest and other income (expense), net	(378)	(356)	(1,317)	34	(241)	(3,016)	335	641	(2,017)	(2,281)	(656)
Income(loss) before income taxes	15,466	6,404	655	(1,522)	2,513	3,106	6,224	(675)	21,003	11,168	4,482
Income taxes	1,241	(11,332)	52	(192)	(166)	406	135		(10,231)	375	199
Net income (loss)	$ 14,225	$ 17,736	$ 603	$ (1,330)	$ 2,679	$ 2,700	$ 6,089	$ (675)	$ 31,234	$ 10,793	$ 4,283
Net income (loss) per share basic	$ 0.81	$ 1.03	$ 0.04	$ (0.08)	$ 0.16	$ 0.17	$ 0.41	$ (0.05)	$ 1.82	$ 0.69	$ 0.30
Net income (loss) per share diluted	$ 0.77	$ 0.97	$ 0.03	$ (0.08)	$ 0.15	$ 0.16	$ 0.38	$ (0.05)	$ 1.76	$ 0.65	$ 0.28