Applied Optoelectronics (AAOI) 10-Q 8 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 02, 2017
Document And Entity Information
Entity Registrant Name	APPLIED OPTOELECTRONICS, INC.
Entity Central Index Key	1,158,114
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		19,303,210
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 74,825	$ 50,224
Restricted cash	1,054	1,732
Short-term investments	42	44
Accounts receivable - trade, net of allowance of $31 at June 30, 2017 and December 31, 2016, respectively	73,759	49,766
Inventories	59,701	51,817
Prepaid expenses and other current assets	9,131	3,969
Total current assets	218,512	157,552
Cash restricted for construction in progress		8
Property, plant and equipment, net of accumulated depreciation of $58,596 and $49,175 at June 30, 2017 and December 31, 2016, respectively	165,154	144,098
Land use rights, net	786	778
Intangible assets, net	4,007	3,993
Deferred income tax assets	10,026	11,421
Other assets, net	8,501	4,468
TOTAL ASSETS	406,986	322,318
Current liabilities
Current portion of notes payable and long-term debt	4,552	7,865
Accounts payable	53,321	36,375
Bank acceptance payable		307
Accrued income taxes	4,947	974
Accrued liabilities	13,850	14,452
Total current liabilities	76,670	59,973
Notes payable and long-term debt, less current portion	22,814	34,961
TOTAL LIABILITIES	99,484	94,934
Stockholders' equity:
Common Stock; 45,000 shares authorized at $0.001 par value; 19,192 and 18,400 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively	19	18
Additional Paid in Capital	290,067	265,264
Accumulated other comprehensive gain (loss)	4,369	(885)
Retained earnings (accumulated deficit)	13,047	(37,013)
TOTAL STOCKHOLDERS' EQUITY	307,502	227,384
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 406,986	$ 322,318

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 31	$ 31
Accumulated depreciation	$ 58,596	$ 49,175
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	19,192,000	18,400,000
Common stock shares outstanding	19,192,000	18,400,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenue, net	$ 117,371	$ 55,254	$ 213,595	$ 105,676
Cost of goods sold	64,089	37,952	118,841	74,121
Gross profit	53,282	17,302	94,754	31,555
Operating expenses
Research and development	8,073	7,814	15,505	16,210
Sales and marketing	2,158	1,610	4,061	3,290
General and administrative	8,786	5,906	16,608	11,639
Total operating expenses	19,017	15,330	36,174	31,139
Income from operations	34,265	1,972	58,580	416
Other income (expense)
Interest income	70	65	105	166
Interest expense	(245)	(450)	(544)	(851)
Other income (expense), net	64	(932)	(544)	(598)
Total other income (expense)	(111)	(1,317)	(983)	(1,283)
Income(loss) before income taxes	34,154	655	57,597	(867)
Income tax (expense) benefit	(5,083)	(52)	(8,737)	140
Net income (loss)	$ 29,071	$ 603	$ 48,860	$ (727)
Net income (loss) per share basic	$ 1.52	$ 0.04	$ 2.59	$ (0.04)
Net income (loss) per share diluted	$ 1.43	$ 0.03	$ 2.45	$ (0.04)
Weighted average shares used to compute net income (loss) per share: basic	19,081,034	17,090,750	18,840,656	17,010,506
Weighted average shares used to compute net income (loss)per share: Diluted	20,367,127	17,454,552	19,956,097	17,010,506

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 29,071	$ 603	$ 48,860	$ (727)
(Loss) gain on foreign currency translation adjustment, net of tax	797	(956)	5,254	(38)
Comprehensive income (loss)	$ 29,868	$ (353)	$ 54,114	$ (765)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - 6 months ended Jun. 30, 2017 - USD ($) shares in Thousands, $ in Thousands	Common stock	Additional paid-in capital	Accumulated other comprehensive gain (loss)	Retained earnings/(Accumulated deficit	Total
Beginning balance, shares at Dec. 31, 2016	18,400
Beginning balance, value at Dec. 31, 2016	$ 18	$ 265,264	$ (885)	$ (37,013)	$ 227,384
Public offering of common stock, net, in shares	459
Public offering of common stock, net, value	$ (1)	(21,571)			(21,572)
Stock options exercised, net of shares withheld for employee tax, in shares	262
Stock options exercised, net of shares withheld for employee tax, value		(176)			(176)
Issuance of restricted stock, net of shares withheld for employee tax, value		(366)			(366)
Issuance of restricted stock, net of shares withheld for employee tax, in shares	71
Stock based compensation		3,767			3,767
Cumulative effect of previously unrecognized tax benefits				(1,207)	(1,207)
Foreign currency translation adjustment			5,254		5,254
Other		7		(7)
Net income				48,860	48,860
Ending balance, shares at Jun. 30, 2017	19,192
Ending balance, value at Jun. 30, 2017	$ 19	$ 290,067	$ 4,369	$ 13,047	$ 307,502

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating activities:
Net income (loss)	$ 48,860	$ (727)
Adjustments to reconcile net income to net cash provided by operating activities:
Lower of cost or market adjustment to inventory	675	1,794
Depreciation and amortization	8,929	6,241
Deferred income taxes, net	(2,638)
Loss on disposal of assets	40	85
Share-based compensation	3,767	1,783
Unrealized foreign exchange loss	(254)	767
Changes in operating assets and liabilities:
Accounts receivable, trade	(23,992)	(2,798)
Inventories	(6,357)	4,743
Other current assets	(4,845)	3,111
Accounts payable	17,481	4,862
Accrued income taxes	3,870
Accrued liabilities	(928)	2,276
Net cash provided by operating activities	49,884	22,137
Investing activities:
Maturities of short-term investments	2	7,749
Change in restricted cash for construction in progress	8
Purchase of property, plant and equipment	(26,687)	(33,768)
Proceeds from disposal of equipment	170	755
Deposits and prepaid charges	(3,838)	(863)
Purchase of intangible assets	(251)	(283)
Net cash used in investing activities	(30,596)	(26,410)
Financing activities:
Proceeds from issuance notes payable and long-term debt		24,864
Principal payments of long-term debt and notes payable	(15,911)	(2,200)
Proceeds from line of credit borrowings		71,981
Repayments of line of credit borrowings		(75,243)
Proceeds from bank acceptance payable		3,501
Repayments of bank acceptance payable	(307)	(3,995)
Repayments of notes payable		(500)
Decrease (increase) in restricted cash	742	(271)
Exercise of stock options	1,301	219
Payments of tax withholding on behalf of employees related to share-based compensation	(1,843)
Proceeds from common stock offering, net	21,572
Net cash provided by financing activities	5,554	18,356
Effect of exchange rate changes on cash	(241)	132
Net increase in cash	24,601	14,215
Cash and cash equivalents at beginning of period	50,224	28,074
Cash and cash equivalents at end of period	74,825	42,289
Cash paid for:
Interest	539	443
Income taxes	2,226	$ 1
Non-cash investing and financing activities:
Net change in accounts payable related to property and equipment additions	$ 535

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Note 1. Description of Business Business Overview Applied Optoelectronics, Inc., (“AOI” or the “Company”) was incorporated in 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 wide range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment. The Company has manufacturing and research and development facilities located in the U.S., Taiwan and China. At its corporate headquarters and manufacturing facilities in Sugar Land, Texas, the Company primarily manufactures lasers and laser components and performs research and development activities for laser component and optical module products. The Company operates in Taipei, Taiwan and Ningbo, China through its wholly-owned subsidiary Prime World International Holdings, Ltd. (“Prime World”, incorporated in the British Virgin Islands) Prime World is the parent of Global Technology, Inc. (“Global”, incorporated in the People’s Republic of China). Through Global, the Company primarily manufactures certain of our data center transceiver products, including subassemblies, as well as Cable TV Broadband (“CATV”) systems and equipment, and performs research and development activities for the CATV products. Prime World also operates a branch in Taiwan, which primarily manufactures transceivers. The Company also has a research and development center in Lawrenceville, Georgia. Interim Financial Statements The unaudited condensed consolidated financial statements of the Company as of June 30, 2017 and December 31, 2016 and for the three and six months ended June 30, 2017 and June 30, 2016, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim information and with the instructions on Form 10-Q and Rule 10-01 of Regulation S-X pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In accordance with those rules and regulations, the Company has omitted certain information and notes required by GAAP for annual consolidated financial statements. In the opinion of management, the condensed consolidated financial statements contain all adjustments, except as otherwise noted, necessary for the fair presentation of the Company’s financial position and results of operations for the periods presented. The year-end condensed balance sheet data was derived from audited financial statements. These condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K (“Annual Report”) for the fiscal year ended December 31, 2016. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of the results expected for the entire fiscal year. All significant intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates in the consolidated financial statements and accompanying notes. Significant estimates and assumptions that impact these financial statements and the accompanying notes relate to, among other things, allowance for doubtful accounts, inventory reserve, product warranty costs, share-based compensation expense, estimated useful lives of property and equipment, and taxes.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	Note 2. Significant Accounting Policies There have been no changes in the Company’s significant accounting policies for the three and six months ended June 30, 2017, as compared to the significant accounting policies described in its 2016 Annual Report, except as described below. Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted in 2017 I n 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 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 adopted the provisions of ASU 2016-09 as of January 1, 2017. The impact from adoption of the provisions related to forfeiture rates was reflected in the Company's condensed consolidated financial statements on a modified retrospective basis, resulting in an adjustment of $0.01 million to retained earnings. Provisions related to windfall tax benefits have been adopted prospectively resulting in an adjustment of $1.2 million to retained earnings. Provisions related to the statement of cash flows remain unchanged from prior periods. Recent Accounting Pronouncements Yet to be Adopted In November 2016, the FASB issued Accounting Standards Update (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 15, 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 applicability of the predominance principle. ASU 2016-15 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the impact of the accounting standard on the financial statements. The FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The 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 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. 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 begun 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 its financial statements. The Company plans to adopt the new standards after December 15, 2017. In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, which clarifies when modification accounting should be applied for changes to terms or conditions of a share-based payment award. This ASU will be applied prospectively and is effective for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. The Company does not expect this standard to have a material impact on its financial statements. On February 25, 2016, the FASB released 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 guidance will require lessees to recognize most leases on the balance sheet for capital and operating leases. The 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.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 3. Fair Value of Financial Instruments The following table presents a summary of the Company’s financial instruments measured at fair value on a recurring basis for the periods indicated (in thousands): As of June 30, 2017 As of December 31, 2016 (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Assets: Cash and cash equivalents $ 74,825 $ — $ — $ 74,825 $ 50,224 $ — $ — $ 50,224 Restricted cash 1,054 — — 1,054 1,740 — — 1,740 Short term investments 42 — — 42 44 — — 44 Total assets $ 75,921 $ — $ — $ 75,921 $ 52,008 $ — $ — $ 52,008 Liabilities: Bank acceptance payable — $ — — $ — — $ 307 — $ 307 Total liabilities $ — $ — $ — $ — $ — $ 307 $ — $ 307 The carrying value amounts of accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities approximate fair value because of the short-term maturity of these instruments. The carrying value of the term loans approximate fair value due to the variable interest rates.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2017
Net income per share
Earnings Per Share	Note 4. Earnings Per Share Basic net income (loss) per share has been computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share has been computed using the weighted-average number of shares of common stock and dilutive potential common shares from stock options and restricted stock units outstanding during the period. The following table sets forth the computation of the basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share amounts): Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Numerator: Net income (loss) $ 29,071 $ 603 $ 48,860 $ (727) Denominator: Weighted average shares used to compute net income (loss) per share Basic 19,081 17,091 18,841 17,011 Effective of dilutive options and restricted stock units 1,286 364 1,115 — Diluted 20,367 17,455 19,956 17,011 Net income (loss) per share Basic $ 1.52 $ 0.04 $ 2.59 $ (0.04) Diluted $ 1.43 $ 0.03 $ 2.45 $ (0.04) The following potentially dilutive securities were excluded from the computation of diluted net loss per share as their effect would have been anti-dilutive (in thousands): Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Employee stock options — — — 898 Restricted stock units — — — 62 — — — 960

Inventories

Inventories	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	Note 5. Inventories Inventories, net of inventory writedowns, consist of the following for the periods indicated (in thousands): June 30, 2017 December 31, 2016 Raw materials $ 25,824 $ 21,518 Work in process and sub-assemblies 27,607 24,334 Finished goods 6,270 5,965 $ 59,701 $ 51,817 The lower of cost or market adjustment expensed for inventory for the three months ended June 30, 2017 and 2016 was $0.2 million and $1.5 million, respectively. The lower of cost or market adjustment expensed for inventory for the six months ended June 30, 2017 and 2016 was $0.7 million and $1.8 million, respectively.

Property, Plant & Equipment

Property, Plant & Equipment	6 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Property, Plant & Equipment	Note 6. Property, Plant & Equipment Property, plant and equipment consisted of the following for the periods indicated (in thousands): June 30, 2017 December 31, 2016 Land improvements $ 797 $ 792 Building and improvements 71,253 69,368 Machinery and equipment 130,851 108,724 Furniture and fixtures 4,510 4,227 Computer equipment and software 7,502 6,836 Transportation equipment 645 236 215,558 190,183 Less accumulated depreciation and amortization (58,596) (49,175) 156,962 141,008 Construction in progress 7,091 1,989 Land 1,101 1,101 Property, plant and equipment, net $ 165,154 $ 144,098 For the three months ended June 30, 2017 and 2016, depreciation expense of property, plant and equipment was $4.5 million and $3.2 million, respectively. For the six months ended June 30, 2017 and 2016, depreciation expense of property, plant and equipment was $8.7 million and $6.0 million, respectively. Included in depreciation expense was $2.8 million and $2.1 million recorded as cost of sales for the three months ended June 30, 2017 and 2016, respectively. Included in depreciation expense was $5.4 million and $4.0 million recorded as cost of sales for the six months ended June 30, 2017 and 2016, respectively.

Intangible Assets, net

Intangible Assets, net	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, net	Note 7. Intangible Assets, net Intangible assets consisted of the following for the periods indicated (in thousands): June 30, 2017 Gross Accumulated Intangible Amount amortization assets, net Patents $ 6,266 $ (2,262) $ 4,004 Trademarks 14 (11) 3 Total intangible assets $ 6,280 $ (2,273) $ 4,007 December 31, 2016 Gross Accumulated Intangible Amount amortization assets, net Patents $ 5,987 $ (1,997) $ 3,990 Trademarks 14 (11) 3 Total intangible assets $ 6,001 $ (2,008) $ 3,993 For the three months ended June 30, 2017 and 2016, amortization expense for intangible assets, included in general and administrative expenses on the income statement, was each $0.1 million. For the six months ended June 30, 2017 and 2016, amortization expense for intangible assets, included in general and administrative expenses on the income statement, was $0.3 million, respectively. The remaining weighted average amortization period for intangible assets is approximately 8 years.

Notes Payable and Long-Term Deb

Notes Payable and Long-Term Debt	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Notes Payable and Long-Term Debt	Note 8. Notes Payable and Long-Term Debt Notes payable and long-term debt consisted of the following for the periods indicated (in thousands): June 30, 2017 December 31, 2016 Revolving line of credit with a U.S. bank up to $40,000 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 — 2,925 Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2%, maturing June 30, 2020 — 9,500 Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2%, maturing January 26, 2022 21,370 21,670 Notes payable to a finance company due in monthly installments with 4.5% interest, maturing May 27, 2018 and June 30, 2018 1,205 2,919 Notes payable to a finance company due in monthly installments with 4% interest, maturing March 31, 2019 4,791 5,812 Total 27,366 42,826 Less current portion (4,552) (7,865) Non-current portion $ 22,814 $ 34,961 Bank Acceptance Notes Payable Bank acceptance notes issued to vendors with a zero percent interest rate $ — $ 307 The current portion of long-term debt is the amount payable within one year of the balance sheet date of June 30, 2017. The one-month London Interbank Offered Rate (LIBOR) was 1.22389% on June 30, 2017. Maturities of long-term debt are as follows for the future one-year periods ending June 30, (in thousands): 2018 $ 4,552 2019 2,673 2020 641 2021 662 2022 18,838 2023 and thereafter — Total outstanding $ 27,366 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 retained 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 adjusted by the First Amendment from the LIBOR Borrowing Rate plus 2.75% or 3.0% to LIBOR Borrowing Rate plus 2.0%. As of June 30, 2017, no balance was outstanding under the revolving line of credit. On February 27, 2017, the Company repaid the outstanding balance of $9.4 million under the term loan and terminated the loan. The Company also had a term loan with East West Bank of $5.0 million with monthly payments of principal and interest that matured on July 31, 2019. On February 27, 2017, the Company repaid the outstanding balance of $2.8 million and terminated the loan. On June 24, 2016, the Company executed a Change in Terms Agreement, Notice of Final Agreement and Modification of the Construction Loan Agreement (the “Modification Agreement”) in connection with 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 (the “Construction Loan Agreement”). 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 adjusted 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 (the “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 June 30, 2017, $21.4 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 June 30, 2017, the Company was in compliance with all covenants contained in these agreements. On May 27, 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 180,148,532 New Taiwan dollars, approximately $6 million, and simultaneously leased the equipment back from Chailease pursuant to the Finance Lease Agreement. The monthly lease payments range from 3,784,000 New Taiwan dollars, approximately $0.1 million, to 3,322,413 New Taiwan dollars, approximately $0.1 million, during the term of the Finance Lease Agreement, including an initial payment in an amount of 60,148,532 New Taiwan dollars, approximately $2 million. The Finance Lease Agreement has a three-year term, with monthly payments, maturing on May 27, 2018. The title to the equipment will be transferred to the Company’s Taiwan branch upon the expiration of the Finance Lease Agreement. As of June 30, 2017, $1.2 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 June 30, 2017, $4.8 million was outstanding under this Finance Lease Agreement. The Company’s Chinese subsidiary had credit facilities with China Construction Bank totaling $13.2 million, which could 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 its Chinese subsidiary as collateral for the credit facility. 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 June 30, 2017, the Company had repaid all outstanding balances and terminated the loan agreement with China Construction Bank. As of June 30, 2017 and December 31, 2016, the Company had $50.0 million and $75.8 million of unused borrowing capacity, respectively. As of June 30, 2017, there was no restricted cash, investments or security deposit associated with the loan facilities. As of December 31, 2016, there was $1.7 million of restricted cash, investments or security deposit associated with the loan facilities.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Accrued Liabilities	Note 9. Accrued Liabilities Accrued liabilities consisted of the following for the periods indicated (in thousands): June 30, 2017 December 31, 2016 Accrued payroll $ 7,249 $ 9,231 Accrued rent 1,081 959 Accrued employee benefits 1,292 1,572 Accrued state and local taxes 495 607 Advance payments 490 252 Accrued product warranty 853 705 Accrued commission expenses 322 205 Accrued professional fees 663 163 Accrued capital expenditures 250 — Accrued other 1,155 758 $ 13,850 $ 14,452

Other Income and Expense

Other Income and Expense	6 Months Ended
	Jun. 30, 2017
Other income (expense)
Other Income and Expense	Note 10. Other Income and Expense Other income and (expense) consisted of the following for the periods indicated (in thousands): Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Foreign exchange transaction loss (128) (877) (700) (545) Government subsidy income 75 20 75 20 Other non-operating gain 108 6 121 12 Gain (loss) on disposal of assets 9 (81) (40) (85) $ 64 $ (932) $ (544) $ (598)

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Note 11. 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 issued stock options, restricted stock awards (“RSAs”) and restricted units (“RSUs”) 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, RSAs and 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 12.5% on a semi-annual basis thereafter. All options expire ten years after the date of grant. The following is a summary of option activity (in thousands, except per share data): 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 Outstanding, January 1, 2017 1,130 $ 9.40 $ 4.90 $ 15,872 Exercised (262) 7.77 $ 51.56 4.14 11,475 Forfeited (41) 7.61 4.49 2,230 Outstanding, June 30, 2017 827 $ 10.00 $ 5.16 6.16 $ 42,826 Exercisable, June 30, 2017 713 $ 9.88 6.13 $ 37,021 Vested and expected to vest 827 $ 10.00 6.16 $ 42,826 As of June 30, 2017, there was approximately $0.3 million of unrecognized stock option expense, which is expected to be recognized over 0.3 years. Restricted Stock Units/Awards RSUs or RSAs have been granted to the Company’s employees under the 2013 Plan and generally vest over a period of four years with 25% of the shares vesting over each of the one-year periods. The following is a summary of RSU/RSA activity (in thousands, except per share data): Weighted Average Share Weighted Aggregate Number of Price on Date Average Fair Intrinsic shares of Release Value Value Outstanding at January 1, 2017 517 $ 14.79 $ 12,128 Granted 500 38.08 19,043 Released (103) $ 48.55 13.40 4,987 Cancelled/Forfeited (25) 20.36 1,537 Outstanding, June 30, 2017 889 $ 27.88 $ 54,986 Exercisable, June 30, 2017 — $ — Vested and expected to vest 889 $ 54,986 As of June 30, 2017, there was $21.8 million of unrecognized compensation expense related to these RSUs and RSAs. This expense is expected to be recognized over 3.3 years. Share-Based Compensation Employee share-based compensation expenses recognized for the periods indicated (in thousands): Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Share-Based compensation - by expense type Cost of goods sold $ 134 $ 50 $ 212 $ 87 Research and development 441 154 706 272 Sales and marketing 169 94 249 167 General and administrative 1,516 677 2,600 1,257 Total share-based compensation expense $ 2,260 $ 975 $ 3,767 $ 1,783 Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Share-Based compensation - by award type Employee stock options $ 268 $ 359 $ 547 $ 737 Restricted stock units 1,992 616 3,220 1,046 Total share-based compensation expense $ 2,260 $ 975 $ 3,767 $ 1,783

Stockholders Equity

Stockholders Equity	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Stockholders' Equity	Note 12. 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. Public Offerings of Common Stock On October 17, 2016, the Company filed a Registration Statement on 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 such Form S-3, the Company entered into an Equity Distribution Agreement with Raymond James & Associates, Inc. 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 “ATM Offering”) from time to time through Raymond James & Associates, Inc. On November 22, 2016, the Company commenced sales of common stock through the ATM Offering. The Company completed its ATM Offering in March 2017 and sold 1.6 million shares of common stock at a weighted average price of $31.55 per share, providing proceeds of $48.8 million, net of expenses and underwriting discounts and commissions.

Geographic Information

Geographic Information	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Geographic Information	Note 13. 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): Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Revenues: United States $ 4,112 $ 18,018 $ 8,631 $ 41,257 Taiwan 67,696 28,470 119,321 52,288 China 45,563 8,766 85,643 12,131 $ 117,371 $ 55,254 $ 213,595 $ 105,676 As of the period ended June 30, December 31, 2017 2016 Long-lived assets: United States $ 68,515 $ 66,028 Taiwan 57,335 48,728 China 44,097 34,113 $ 169,947 $ 148,869

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Note 14. Contingencies Litigation Overview From time to time, the Company may be subject to legal proceedings and litigation arising in the ordinary course of business, including, but not limited to, inquiries, investigations, audits and other regulatory proceedings, such as described below. The Company records a loss provision when it believes it is both probable that a liability has been incurred and the amount can be reasonably estimated. Unless otherwise disclosed, the Company is unable to estimate the possible loss or range of loss for the legal proceeding described below. Except for the lawsuit described below, the Company believes that there are no claims or actions pending or threatened against it, the ultimate disposition of which would have a material adverse effect on it. Class Action and Shareholder Derivative Litigation On August 5, 2017, a lawsuit was filed in the U.S. District Court for the Southern District of Texas against the Company and two of its officers in Mona Abouzied v. Applied Optoelectronics, Inc., Chih-Hsiang (Thompson) Lin, and Stefan J. Murry, et al. , Case No. 4:17-cv-02399. The complaint in this matter seeks class action status on behalf of the Company’s shareholders, alleging violations of Sections 10(b) and 20(a) of the Exchange Act against the Company, its chief executive officer, and its chief financial officer, arising out of its announcement on August 3, 2017 that “we see softer than expected demand for our 40G solutions with one of our large customers that will offset the sequential growth and increased demand we expect in 100G.” The complaint requests unspecified damages and other relief. The Company disputes the allegations and intends to vigorously contest the matter.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 15. Subsequent Events The Company has evaluated subsequent events through the date the financial statements were available to be issued.

Significant Accounting Polici23

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Interim Financial Statements	Interim Financial Statements The unaudited condensed consolidated financial statements of the Company as of June 30, 2017 and December 31, 2016 and for the three and six months ended June 30, 2017 and June 30, 2016, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim information and with the instructions on Form 10-Q and Rule 10-01 of Regulation S-X pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In accordance with those rules and regulations, the Company has omitted certain information and notes required by GAAP for annual consolidated financial statements. In the opinion of management, the condensed consolidated financial statements contain all adjustments, except as otherwise noted, necessary for the fair presentation of the Company’s financial position and results of operations for the periods presented. The year-end condensed balance sheet data was derived from audited financial statements. These condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K (“Annual Report”) for the fiscal year ended December 31, 2016. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of the results expected for the entire fiscal year. All significant intercompany accounts and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates in the consolidated financial statements and accompanying notes. Significant estimates and assumptions that impact these financial statements and the accompanying notes relate to, among other things, allowance for doubtful accounts, inventory reserve, product warranty costs, share-based compensation expense, estimated useful lives of property and equipment, and taxes.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted in 2017 I n 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 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 adopted the provisions of ASU 2016-09 as of January 1, 2017. The impact from adoption of the provisions related to forfeiture rates was reflected in the Company's condensed consolidated financial statements on a modified retrospective basis, resulting in an adjustment of $0.01 million to retained earnings. Provisions related to windfall tax benefits have been adopted prospectively resulting in an adjustment of $1.2 million to retained earnings. Provisions related to the statement of cash flows remain unchanged from prior periods. Recent Accounting Pronouncements Yet to be Adopted In November 2016, the FASB issued Accounting Standards Update (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 15, 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 applicability of the predominance principle. ASU 2016-15 is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the impact of the accounting standard on the financial statements. The FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The 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 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. 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 begun 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 its financial statements. The Company plans to adopt the new standards after December 15, 2017. In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, which clarifies when modification accounting should be applied for changes to terms or conditions of a share-based payment award. This ASU will be applied prospectively and is effective for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. The Company does not expect this standard to have a material impact on its financial statements. On February 25, 2016, the FASB released 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 guidance will require lessees to recognize most leases on the balance sheet for capital and operating leases. The 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.

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
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 for the periods indicated (in thousands): As of June 30, 2017 As of December 31, 2016 (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Assets: Cash and cash equivalents $ 74,825 $ — $ — $ 74,825 $ 50,224 $ — $ — $ 50,224 Restricted cash 1,054 — — 1,054 1,740 — — 1,740 Short term investments 42 — — 42 44 — — 44 Total assets $ 75,921 $ — $ — $ 75,921 $ 52,008 $ — $ — $ 52,008 Liabilities: Bank acceptance payable — $ — — $ — — $ 307 — $ 307 Total liabilities $ — $ — $ — $ — $ — $ 307 $ — $ 307

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Net income per share
Computation of basic and diluted net loss per share	The following table sets forth the computation of the basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share amounts): Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Numerator: Net income (loss) $ 29,071 $ 603 $ 48,860 $ (727) Denominator: Weighted average shares used to compute net income (loss) per share Basic 19,081 17,091 18,841 17,011 Effective of dilutive options and restricted stock units 1,286 364 1,115 — Diluted 20,367 17,455 19,956 17,011 Net income (loss) per share Basic $ 1.52 $ 0.04 $ 2.59 $ (0.04) Diluted $ 1.43 $ 0.03 $ 2.45 $ (0.04)
Schedule of potentially dilutive securities	The following potentially dilutive securities were excluded from the computation of diluted net loss per share as their effect would have been anti-dilutive (in thousands): Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Employee stock options — — — 898 Restricted stock units — — — 62 — — — 960

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories, net of inventory writedowns, consist of the following for the periods indicated (in thousands): June 30, 2017 December 31, 2016 Raw materials $ 25,824 $ 21,518 Work in process and sub-assemblies 27,607 24,334 Finished goods 6,270 5,965 $ 59,701 $ 51,817

Property, Plant & Equipment (Ta

Property, Plant & Equipment (Tables)	6 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	Property, plant and equipment consisted of the following for the periods indicated (in thousands): June 30, 2017 December 31, 2016 Land improvements $ 797 $ 792 Building and improvements 71,253 69,368 Machinery and equipment 130,851 108,724 Furniture and fixtures 4,510 4,227 Computer equipment and software 7,502 6,836 Transportation equipment 645 236 215,558 190,183 Less accumulated depreciation and amortization (58,596) (49,175) 156,962 141,008 Construction in progress 7,091 1,989 Land 1,101 1,101 Property, plant and equipment, net $ 165,154 $ 144,098

Intangible Assets, net (Tables)

Intangible Assets, net (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	Intangible assets consisted of the following for the periods indicated (in thousands): June 30, 2017 Gross Accumulated Intangible Amount amortization assets, net Patents $ 6,266 $ (2,262) $ 4,004 Trademarks 14 (11) 3 Total intangible assets $ 6,280 $ (2,273) $ 4,007 December 31, 2016 Gross Accumulated Intangible Amount amortization assets, net Patents $ 5,987 $ (1,997) $ 3,990 Trademarks 14 (11) 3 Total intangible assets $ 6,001 $ (2,008) $ 3,993

Notes Payable and Long-Term D29

Notes Payable and Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2017
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): June 30, 2017 December 31, 2016 Revolving line of credit with a U.S. bank up to $40,000 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 — 2,925 Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2%, maturing June 30, 2020 — 9,500 Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2%, maturing January 26, 2022 21,370 21,670 Notes payable to a finance company due in monthly installments with 4.5% interest, maturing May 27, 2018 and June 30, 2018 1,205 2,919 Notes payable to a finance company due in monthly installments with 4% interest, maturing March 31, 2019 4,791 5,812 Total 27,366 42,826 Less current portion (4,552) (7,865) Non-current portion $ 22,814 $ 34,961 Bank Acceptance Notes Payable Bank acceptance notes issued to vendors with a zero percent interest rate $ — $ 307
Maturities of notes payable and long-term debt	Maturities of long-term debt are as follows for the future one-year periods ending June 30, (in thousands): 2018 $ 4,552 2019 2,673 2020 641 2021 662 2022 18,838 2023 and thereafter — Total outstanding $ 27,366

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities consisted of the following for the periods indicated (in thousands): June 30, 2017 December 31, 2016 Accrued payroll $ 7,249 $ 9,231 Accrued rent 1,081 959 Accrued employee benefits 1,292 1,572 Accrued state and local taxes 495 607 Advance payments 490 252 Accrued product warranty 853 705 Accrued commission expenses 322 205 Accrued professional fees 663 163 Accrued capital expenditures 250 — Accrued other 1,155 758 $ 13,850 $ 14,452

Other Income and Expense (Table

Other Income and Expense (Tables)	6 Months Ended
	Jun. 30, 2017
Other income (expense)
Schedule of other income and expense	Other income and (expense) consisted of the following for the periods indicated (in thousands): Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Foreign exchange transaction loss (128) (877) (700) (545) Government subsidy income 75 20 75 20 Other non-operating gain 108 6 121 12 Gain (loss) on disposal of assets 9 (81) (40) (85) $ 64 $ (932) $ (544) $ (598)

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of option activity	The following is a summary of option activity (in thousands, except per share data): 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 Outstanding, January 1, 2017 1,130 $ 9.40 $ 4.90 $ 15,872 Exercised (262) 7.77 $ 51.56 4.14 11,475 Forfeited (41) 7.61 4.49 2,230 Outstanding, June 30, 2017 827 $ 10.00 $ 5.16 6.16 $ 42,826 Exercisable, June 30, 2017 713 $ 9.88 6.13 $ 37,021 Vested and expected to vest 827 $ 10.00 6.16 $ 42,826
Summary of RSU/RSA activity	RSUs or RSAs have been granted to the Company’s employees under the 2013 Plan and generally vest over a period of four years with 25% of the shares vesting over each of the one-year periods. The following is a summary of RSU/RSA activity (in thousands, except per share data): Weighted Average Share Weighted Aggregate Number of Price on Date Average Fair Intrinsic shares of Release Value Value Outstanding at January 1, 2017 517 $ 14.79 $ 12,128 Granted 500 38.08 19,043 Released (103) $ 48.55 13.40 4,987 Cancelled/Forfeited (25) 20.36 1,537 Outstanding, June 30, 2017 889 $ 27.88 $ 54,986 Exercisable, June 30, 2017 — $ — Vested and expected to vest 889 $ 54,986
Schedule of employee stock-based compensation expenses	Employee share-based compensation expenses recognized for the periods indicated (in thousands): Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Share-Based compensation - by expense type Cost of goods sold $ 134 $ 50 $ 212 $ 87 Research and development 441 154 706 272 Sales and marketing 169 94 249 167 General and administrative 1,516 677 2,600 1,257 Total share-based compensation expense $ 2,260 $ 975 $ 3,767 $ 1,783 Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Share-Based compensation - by award type Employee stock options $ 268 $ 359 $ 547 $ 737 Restricted stock units 1,992 616 3,220 1,046 Total share-based compensation expense $ 2,260 $ 975 $ 3,767 $ 1,783

Geographic Information (Tables)

Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Revenue information by geographic region	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): Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Revenues: United States $ 4,112 $ 18,018 $ 8,631 $ 41,257 Taiwan 67,696 28,470 119,321 52,288 China 45,563 8,766 85,643 12,131 $ 117,371 $ 55,254 $ 213,595 $ 105,676
Long-lived assets by geographic region	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): As of the period ended June 30, December 31, 2017 2016 Long-lived assets: United States $ 68,515 $ 66,028 Taiwan 57,335 48,728 China 44,097 34,113 $ 169,947 $ 148,869

Description of Business (Detail

Description of Business (Details)	Jun. 30, 2017item
Accounting Policies [Abstract]
Number of networking end markets	4

Significant Accounting Polici35

Significant Accounting Policies (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Windfall tax benefits	$ 1,200
Accounting Standards Update 2016-09
Retained earnings	$ 10

Fair Value of Financial Instr36

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Liabilities:
Bank acceptance payable		$ 307
Fair Value, Measurements, Recurring
Assets:
Cash and cash equivalents	$ 74,825	50,224
Restricted cash	1,054	1,740
Short term investments	42	44
Total assets	75,921	52,008
Liabilities:
Bank acceptance payable		307
Total liabilities		307
Level 1 | Fair Value, Measurements, Recurring
Assets:
Cash and cash equivalents	74,825	50,224
Restricted cash	1,054	1,740
Short term investments	42	44
Total assets	$ 75,921	52,008
Level 2 | Fair Value, Measurements, Recurring
Liabilities:
Bank acceptance payable		307
Total liabilities		$ 307

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Numerator:
Net income (loss)	$ 29,071	$ 603	$ 48,860	$ (727)
Weighted average shares used to compute net income (loss) per share
Basic	19,081,034	17,090,750	18,840,656	17,010,506
Effective of dilutive options and restricted stock units	1,286,000	364,000	1,115,000
Diluted	20,367,127	17,454,552	19,956,097	17,010,506
Net income (loss) per share
Basic	$ 1.52	$ 0.04	$ 2.59	$ (0.04)
Diluted	$ 1.43	$ 0.03	$ 2.45	$ (0.04)

Earnings Per Share (Details - P

Earnings Per Share (Details - Potentially Dilutive Shares) shares in Thousands	6 Months Ended
	Jun. 30, 2016shares
Potentially dilutive securities excluded from EPS	960
Employee Stock Option
Potentially dilutive securities excluded from EPS	898
Restricted stock units
Potentially dilutive securities excluded from EPS	62

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 25,824	$ 21,518
Work in process and sub-assemblies	27,607	24,334
Finished goods	6,270	5,965
Inventories	$ 59,701	$ 51,817

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Inventory Disclosure [Abstract]
Lower of cost or market adjustment for inventory	$ 0.2	$ 1.5	$ 0.7	$ 1.8

Property, Plant & Equipment (De

Property, Plant & Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Property, plant and equipment, gross	$ 215,558	$ 190,183
Less accumulated depreciation and amortization	(58,596)	(49,175)
Property, plant and equipment after accumulated depreciation and amortization, excluding construction in progress and land	156,962	141,008
Construction in progress	7,091	1,989
Land	1,101	1,101
Property, plant and equipment, net	165,154	144,098
Land improvements
Property, plant and equipment, gross	797	792
Building and improvements
Property, plant and equipment, gross	71,253	69,368
Machinery and equipment
Property, plant and equipment, gross	130,851	108,724
Furniture and fixtures
Property, plant and equipment, gross	4,510	4,227
Computer equipment and software
Property, plant and equipment, gross	7,502	6,836
Transportation equipment
Property, plant and equipment, gross	$ 645	$ 236

Property, Plant & Equipment - (

Property, Plant & Equipment - (Details Narrative) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 4.5	$ 3.2	$ 8.7	$ 6
Cost of Sales, depreciation	$ 2.8	$ 2.1	$ 5.4	$ 4

Intangible Assets, net (Details

Intangible Assets, net (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Gross Amount	$ 6,280	$ 6,001
Accumulated amortization	(2,273)	(2,008)
Intangible assets, net	4,007	3,993
Patents
Gross Amount	6,266	5,987
Accumulated amortization	(2,262)	(1,997)
Intangible assets, net	4,004	3,990
Trademarks
Gross Amount	14	14
Accumulated amortization	(11)	(11)
Intangible assets, net	$ 3	$ 3

Intangible Assets, net - (Detai

Intangible Assets, net - (Details Narrative) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Amortization expense for intangible assets	$ 0.1	$ 0.1	$ 0.3	$ 0.3
License
Weighted average amortization period			8 years

Notes Payable and Long-Term D45

Notes Payable and Long-Term Debt (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Notes payable and long-term debt	$ 27,366	$ 42,826
Current portion of notes payable and long-term debt	4,552	7,865
Long term portion of notes payable and long-term debt	$ 22,814	34,961
Bank acceptance notes		307
London Interbank Offered Rate (LIBOR) [Member]
Interest rate description	1.22389%
Term loan 1
Notes payable and long-term debt		2,925
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
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	$ 21,370	21,670
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	$ 1,205	2,919
Debt maturity date	Jun. 30, 2018
Stated interest rate	4.50%
Note payable 2
Notes payable and long-term debt	$ 4,791	5,812
Debt maturity date	Mar. 31, 2019
Stated interest rate	4.00%
Bank Acceptance Notes Payable
Bank acceptance notes		$ 307
Stated interest rate	0.00%
Revolving Line of Credit | Revolving Line of Credit 1
Debt maturity date	Jun. 30, 2018
Revolving line of credit maximum borrowing capacity	$ 40,000
Revolving Line of Credit | Revolving Line of Credit 1 | London Interbank Offered Rate (LIBOR) [Member]
Basis spread on variable rate	2.00%

Notes Payable and Long-Term D46

Notes Payable and Long-Term Debt - Debt Maturities (Details) $ in Thousands	Jun. 30, 2017USD ($)
Maturities of notes payable and long-term debt
2,018	$ 4,552
2,019	2,673
2,020	641
2,021	662
2,022	18,838
Total outstanding	$ 27,366

Notes Payable and Long-Term D47

Notes Payable and Long-Term Debt - Term Debt - Narrative2 (Details) $ in Thousands

Feb. 27, 2017USD ($)

Oct. 01, 2016

Sep. 27, 2016

Sep. 25, 2016

Sep. 24, 2016

Jun. 25, 2016USD ($)

Jun. 24, 2016USD ($)

May 27, 2015TWD

May 27, 2015USD ($)

Jun. 30, 2017USD ($)loanfacility

Sep. 30, 2016

Mar. 31, 2016TWD

Mar. 31, 2016USD ($)

Jun. 30, 2017USD ($)

Jun. 30, 2016USD ($)

Mar. 31, 2017

Dec. 31, 2016USD ($)

Repayments of Lines of Credit

$ 75,243

Restricted cash

$ 1,054

$ 1,054

$ 1,732

Bank acceptance notes outstanding

307

Unused borrowing capacity

50,000

50,000

75,800

Restricted cash, investments or security deposit associated with loan facilities

0

$ 0

$ 1,700

London Interbank Offered Rate (LIBOR) [Member]

Interest rate description

1.22389%

Letter of Credit [Member]

Revolving line of credit maximum borrowing capacity

$ 10,000

$ 10,000

First Amendment [Member]

Number of credit facilities | loanfacility

2

East West Bank and Comerica Bank [Member] | Construction Loan 1

Term of revolving credit facility

64 months

East West Bank and Comerica Bank [Member] | Modification Agreement [Member]

Draw down period

15 months

Term of revolving credit facility

66 months

Amortization Period

300 months

East West Bank and Comerica Bank [Member] | Second Modification [Member]

Term of revolving credit facility

60 months

Amortization Period

300 months

East West Bank and Comerica Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Modification Agreement [Member]

Interest rate description

LIBOR Borrowing Rate plus 2.0%

Basis spread on variable rate

2.00%

East West Bank and Comerica Bank [Member] | One Month LIBOR Rate [Member] | Modification Agreement [Member]

Interest rate description

one-month LIBOR Borrowing Rate plus 2.75%

Basis spread on variable rate

2.75%

East West Bank and Comerica Bank [Member] | First Amendment [Member] | London Interbank Offered Rate (LIBOR) [Member]

Interest rate on line of credit description

LIBOR Borrowing Rate plus 2.0%

LIBOR Borrowing Rate plus 2.75%

East West Bank [Member] | Modification Agreement [Member]

Revolving line of credit maximum borrowing capacity

$ 22,000

22,000

Restricted cash

11,000

11,000

East West Bank [Member] | Second Modification [Member]

Revolving line of credit amount outstanding

21,400

21,400

China Construction Bank

Revolving line of credit maximum borrowing capacity

13,200

13,200

Chailease Finance Co. Ltd. [Member] | Finance Lease 1 [Member]

Note payable

1,200

1,200

Lease purchase price

TWD 180,148,532

$ 6,000

Initial payment amount

TWD 60,148,532

$ 2,000

Financial lease term

3 years

3 years

Chailease Finance Co. Ltd. [Member] | Finance Lease 1 [Member] | Minimum

Lease payment range price

TWD 3,322,413

$ 100

Chailease Finance Co. Ltd. [Member] | Finance Lease 1 [Member] | Maximum

Lease payment range price

TWD 3,784,000

$ 100

Chailease Finance Co. Ltd. [Member] | Finance Lease 2 [Member]

Note payable

4,800

4,800

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

Initial payment amount | TWD

TWD 62,927,180

Lease payment range price

6,772,500

$ 200

Chailease Finance Co. Ltd. [Member] | Finance Lease 2 [Member] | Maximum

Initial payment amount

2,000

Lease payment range price

TWD 7,788,333

$ 300

Revolving Line of Credit | East West Bank and Comerica Bank [Member] | First Amendment [Member]

Revolving line of credit maximum borrowing capacity

$ 40,000

$ 25,000

Revolving line of credit amount outstanding

$ 9,400

0

$ 0

Revolving line of credit, maturity date

Jun. 30, 2018

Draw down period

1 year

Term of revolving credit facility

5 years

Revolving Line of Credit | East West Bank and Comerica Bank [Member] | First Amendment [Member] | London Interbank Offered Rate (LIBOR) [Member]

Basis spread on variable rate

2.00%

Revolving Line of Credit | East West Bank and Comerica Bank [Member] | First Amendment [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum

Basis spread on variable rate

2.75%

Revolving Line of Credit | East West Bank and Comerica Bank [Member] | First Amendment [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum

Basis spread on variable rate

3.00%

Term Loan [Member] | East West Bank and Comerica Bank [Member] | First Amendment [Member]

Revolving line of credit maximum borrowing capacity

10,000

$ 10,000

Revolving line of credit, maturity date

Jun. 30, 2020

Term Loan [Member] | East West Bank [Member]

Revolving line of credit maximum borrowing capacity

5,000

$ 5,000

Repayments of Lines of Credit

$ 2,800

Revolving line of credit, maturity date

Jul. 31, 2019

Equipment Term Loan [Member] | East West Bank and Comerica Bank [Member] | First Amendment [Member]

Revolving line of credit maximum borrowing capacity

$ 10,000

$ 10,000

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued payroll	$ 7,249	$ 9,231
Accrued rent	1,081	959
Accrued employee benefits	1,292	1,572
Accrued state and local taxes	495	607
Advance payments	490	252
Accrued product warranty	853	705
Accrued commission expenses	322	205
Accrued professional fees	663	163
Accrued capital expenditures	250
Accrued other	1,155	758
Total accrued liabilities	$ 13,850	$ 14,452

Other Income and Expense (Detai

Other Income and Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other income (expense)
Foreign exchange transaction loss	$ (128)	$ (877)	$ (700)	$ (545)
Government subsidy income	75	20	75	20
Other non-operating gain	108	6	121	12
Gain (loss) on disposal of assets	9	(81)	(40)	(85)
Other income and expense, net	$ 64	$ (932)	$ (544)	$ (598)

Share-Based Compensation - Opti

Share-Based Compensation - Option Activity (Details) - Employee Stock Option $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares
Number of Shares
Outstanding, beginning balance | shares	1,130
Exercised | shares	(262)
Forfeited | shares	(41)
Outstanding, ending balance | shares	827
Exercisable, ending balance | shares	713
Vested and expected to vest | shares	827
Weighted Average Exercise Price
Outstanding, beginning balance	$ 9.40
Exercised	7.77
Forfeited	7.61
Outstanding, ending balance	10
Exercisable, ending balance	9.88
Vested and expected to vest	10
Weighted Average Share Price on Date of Exercise	51.56
Weighted Average Fair Value [Abstract]
Outstanding, beginning balance	4.90
Exercised	4.14
Forfeited	4.49
Outstanding, ending balance	$ 5.16
Weighted Average Remaining Contractual Life
Outstanding, ending balance	6 years 1 month 28 days
Exercisable, ending balance	6 years 1 month 17 days
Vested and expected to vest	6 years 1 month 28 days
Aggregate Intrinsic Value
Aggregate intrinsic value, beginning balance | $	$ 15,872
Exercised | $	11,475
Forfeited | $	2,230
Aggregate intrinsic value, ending balance | $	42,826
Exercisable, ending balance | $	37,021
Vested and expected to vest | $	$ 42,826

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Units (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares
Number of shares
Outstanding, beginning balance | shares	517
Granted | shares	500
Released | shares	(103)
Cancelled/Forfeited | shares	(25)
Outstanding, ending balance | shares	889
Vested and expected to vest | shares	889
Weighted Average Share Price on Date of Release | $ / shares	$ 48.55
Weighted Average Fair Value
Outstanding, beginning balance | $ / shares	14.79
Granted | $ / shares	38.08
Released | $ / shares	13.40
Cancelled/Forfeited | $ / shares	20.36
Outstanding, ending balance | $ / shares	$ 27.88
Aggregate Intrinsic Value [Abstract]
Aggregate intrinsic value, outstanding | $	$ 12,128
Granted | $	19,043
Released | $	4,987
Cancelled/Forfeited | $	1,537
Aggregate intrinsic value, outstanding | $	54,986
Vested and expected to vest | $	$ 54,986
2013 Plan
Vesting period	4 years
Maximum term	10 years

Share-Based Compensation - Shar

Share-Based Compensation - Share Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Total share-based compensation expense	$ 2,260	$ 975	$ 3,767	$ 1,783
Employee Stock Option
Total share-based compensation expense	268	359	547	737
Restricted stock units
Total share-based compensation expense	1,992	616	3,220	1,046
Cost of sales [Member]
Total share-based compensation expense	134	50	212	87
Research and development [Member]
Total share-based compensation expense	441	154	706	272
Sales and marketing [Member]
Total share-based compensation expense	169	94	249	167
General and administrative [Member]
Total share-based compensation expense	$ 1,516	$ 677	$ 2,600	$ 1,257

Share-Based Compensation - Narr

Share-Based Compensation - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2017USD ($)plan
Employee Stock Option
Number of incentive plans | plan	5
Options expiration period	10 years
Compensation cost on unvested options not yet recognized	$ 0.3
Compensation cost unrecognized weighted average period	3 months 18 days
Employee Stock Option | Share-based Compensation Award, Tranche One
Vesting rights (as a percent)	25.00%
Employee Stock Option | Share-based Compensation Award, Tranche Two
Vesting rights (as a percent)	12.50%
Restricted stock units
Compensation cost on unvested options not yet recognized	$ 21.8
Compensation cost unrecognized weighted average period	3 years 3 months 18 days
2013 Plan | Restricted stock units | Share-based Compensation Award, Tranche One
Vesting rights (as a percent)	25.00%

Stockholders Equity - Narrative

Stockholders Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 17, 2016	Mar. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Common stock shares authorized			45,000,000	45,000,000
Preferred Stock shares authorized			5,000,000	5,000,000
Issuance of common stock, net value			$ 21,572
Proceeds from common share			$ 21,572
ATM Offering [Member]
Public offering of common stock, net, in shares	250,000,000	1,600,000
Weighted average price per share		$ 31.55
Common stock, shares	250,000,000	1,600,000
Share price		$ 31.55
Proceeds from common share		$ 48,800
Raymond James & Associates [Member] | ATM Offering [Member]
Public offering of common stock, net, in shares	50,000,000
Common stock, shares	50,000,000

Geographic Information - Revenu

Geographic Information - Revenues (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)item	Jun. 30, 2016USD ($)
Number of Reportable segment | item			1
Revenues	$ 117,371	$ 55,254	$ 213,595	$ 105,676
UNITED STATES
Revenues	4,112	18,018	8,631	41,257
TAIWAN, PROVINCE OF CHINA
Revenues	67,696	28,470	119,321	52,288
CHINA
Revenues	$ 45,563	$ 8,766	$ 85,643	$ 12,131

Geographic Information - Long L

Geographic Information - Long Lived Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Long-lived assets	$ 169,947	$ 148,869
UNITED STATES
Long-lived assets	68,515	66,028
TAIWAN, PROVINCE OF CHINA
Long-lived assets	57,335	48,728
CHINA
Long-lived assets	$ 44,097	$ 34,113

Contingencies - Narrative (Deta

Contingencies - Narrative (Details)	Aug. 05, 2017itemcustomer
Commitments and Contingencies Disclosure [Abstract]
Number of officers | item	2
Number of customers | customer	1