Applied Optoelectronics (AAOI) 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 03, 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	Sep. 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		19,382,186
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 70,930	$ 50,224
Restricted cash	1,072	1,732
Short-term investments	36	44
Accounts receivable - trade, net of allowance of $31	73,029	49,766
Inventories	74,552	51,817
Prepaid expenses and other current assets	10,448	3,969
Total current assets	230,067	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	181,481	144,098
Land use rights, net	797	778
Intangible assets, net	4,041	3,993
Deferred income tax assets	15,167	11,421
Other assets, net	7,151	4,468
TOTAL ASSETS	438,704	322,318
Current liabilities
Current portion of notes payable and long-term debt	3,638	7,865
Accounts payable	50,993	36,375
Bank acceptance payable		307
Accrued income taxes	5,459	974
Accrued liabilities	16,801	14,452
Total current liabilities	76,891	59,973
Notes payable and long-term debt, less current portion	37,371	34,961
TOTAL LIABILITIES	114,262	94,934
Stockholders' equity:
Common Stock; 45,000 shares authorized at $0.001 par value; 19,359 and 18,400 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	19	18
Additional Paid in Capital	285,600	265,264
Accumulated other comprehensive gain (loss)	6,400	(885)
Retained earnings (accumulated deficit)	32,423	(37,013)
TOTAL STOCKHOLDERS' EQUITY	324,442	227,384
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 438,704	$ 322,318

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 31		$ 31
Accumulated depreciation	$ 63,903		$ 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	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	19,359,000		18,400,000
Common stock shares outstanding	19,359,000		18,400,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenue, net	$ 88,879	$ 70,137	$ 302,474	$ 175,813
Cost of goods sold	49,507	46,976	168,348	121,097
Gross profit	39,372	23,161	134,126	54,716
Operating expenses
Research and development	9,190	8,362	24,695	24,572
Sales and marketing	2,551	1,594	6,612	4,884
General and administrative	9,580	6,445	26,188	18,084
Total operating expenses	21,321	16,401	57,495	47,540
Income from operations	18,051	6,760	76,631	7,176
Other income (expense)
Interest income	61	40	166	206
Interest expense	(248)	(462)	(792)	(1,313)
Other income (expense), net	(354)	66	(898)	(532)
Total other income (expense)	(541)	(356)	(1,524)	(1,639)
Income(loss) before income taxes	17,510	6,404	75,107	5,537
Income tax (expense) benefit	1,865	11,332	(6,872)	11,472
Net income (loss)	$ 19,375	$ 17,736	$ 68,235	$ 17,009
Net income (loss) per share basic	$ 1	$ 1.03	$ 3.59	$ 1
Net income (loss) per share diluted	$ 0.95	$ 0.97	$ 3.39	$ 0.95
Weighted average shares used to compute net income (loss) per share: basic	19,294,022	17,151,031	18,993,068	17,057,687
Weighted average shares used to compute net income (loss)per share: Diluted	20,422,609	18,360,531	20,133,644	17,954,229

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 19,375	$ 17,736	$ 68,235	$ 17,009
Gain on foreign currency translation adjustment	2,032	1,323	7,285	1,821
Comprehensive income (loss)	$ 21,407	$ 19,059	$ 75,520	$ 18,830

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - 9 months ended Sep. 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	356
Stock options exercised, net of shares withheld for employee tax, value		(4,930)			(4,930)
Issuance of restricted stock, net of shares withheld for employee tax, value		(2,161)			(2,161)
Issuance of restricted stock, net of shares withheld for employee tax, in shares	144
Share based compensation		5,849			5,849
Cumulative effect of previously unrecognized tax benefits				(1,207)	(1,207)
Foreign currency translation adjustment			7,285		7,285
Other		7		(6)	1
Net income				68,235	68,235
Ending balance, shares at Sep. 30, 2017	19,359
Ending balance, value at Sep. 30, 2017	$ 19	$ 285,600	$ 6,400	$ 32,423	$ 324,442

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities:
Net income (loss)	$ 68,235	$ 17,009
Adjustments to reconcile net income to net cash provided by operating activities:
Lower of cost or market adjustment to inventory	1,365	2,799
Depreciation and amortization	14,332	9,926
Deferred income taxes, net	(2,495)	(11,856)
Loss on disposal of assets	51	89
Share-based compensation	5,849	2,830
Unrealized foreign exchange loss	308	3,509
Changes in operating assets and liabilities:
Accounts receivable, trade	(23,261)	(5,412)
Inventories	(21,113)	9,423
Other current assets	(6,062)	3,450
Accounts payable	14,618	3,886
Accrued income taxes	4,360	177
Accrued liabilities	1,927	(444)
Net cash provided by operating activities	57,498	28,368
Investing activities:
Maturities of short-term investments	8	7,749
Change in restricted cash for construction in progress	8	(847)
Purchase of property, plant and equipment	(46,529)	(40,333)
Proceeds from disposal of equipment	171	1,306
Deposits and prepaid charges	(2,369)	659
Purchase of intangible assets	(407)	(440)
Net cash used in investing activities	(49,118)	(31,906)
Financing activities:
Proceeds from issuance notes payable and long-term debt		28,858
Principal payments of long-term debt and notes payable	(38,300)	(3,995)
Proceeds from line of credit borrowings	36,000	115,798
Repayments of line of credit borrowings		(114,542)
Proceeds from bank acceptance payable		5,850
Repayments of bank acceptance payable	(307)	(5,531)
Repayments of notes payable		(750)
Exercise of stock options	1,399	480
Payments of tax withholding on behalf of employees related to share-based compensation	(8,490)
Proceeds from common stock offering, net	21,572
Net cash provided by financing activities	11,874	26,168
Effect of exchange rate changes on cash	(208)	4,769
Net increase in cash, cash equivalents and restricted cash	20,046	27,399
Cash and cash equivalents at beginning of period	50,224	28,074
Cash, cash equivalents and restricted cash, at beginning of period	51,956	32,793
Cash, cash equivalents and restricted cash, at end of period	72,002	60,192
Cash and cash equivalents at end of period	70,930	55,907
Cash paid for:
Interest	730	1,277
Income taxes	4,992	$ (12)
Non-cash investing and financing activities:
Net change in accounts payable related to property and equipment additions	$ (1,091)

Description of Business

Description of Business	9 Months Ended
	Sep. 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 September 30, 2017 and December 31, 2016 and for the three and nine months ended September 30, 2017 and September 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 nine months ended September 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	9 Months Ended
	Sep. 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 nine months ended September 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 Accounting Standards Update (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. 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 15, 2017, with early adoption permitted. The amendments in this ASU would be applied using a retrospective approach. The Company adopted the provisions of ASU 2016-18 as of July 1, 2017 with no material impact 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 adopted the provisions of ASU 2016-15 as of July 1, 2017 with no material impact on the financial statements. 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 adopted the provisions of ASU 2017-09 as of July 1, 2017 with no material impact on the financial statements. Recent Accounting Pronouncements Yet to be Adopted 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. In applying the new guidance, the Company will: 1) identify the contracts with its customers, 2) identify the performance obligations in the contracts, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations of the contract, and 5) recognize revenue when (or as) the Company satisfies a performance obligation. Since this guidance was issued, the Company has undertaken an accounting assessment phase focusing on developing a scoping plan and a review plan to determine the gaps between existing revenue recognition policies and the requirements of the new revenue guidance. This accounting assessment involved developing a training and education process for the Company personnel, performing sales contract walkthroughs to identify financial obligations, reviewing existing revenue streams and mapping contract features to revenue streams. The Company is in the process of developing any necessary accounting policy changes to adopt new standards on the effective date. The Company’s assessment has determined that nearly all of the Company’s revenue is derived from sales of products to customers. Contracts governing the terms and conditions of these sales include purchase orders and various master purchase agreements or similar contracts. These contracts specify terms associated with these sales and the Company recognizes revenue when the products are delivered according to the terms specified in the contracts. The new guidance will not affect this revenue recognition practice. For this reason, the Company does not believe that the new standard will have a material effect on its financial statements. The Company is continuing its evaluation of any required disclosures and changes to its accounting policies, as well as any other potential effects on its consolidated financial position, results of operations and cash flows as a result of this new standard. The Company plans to adopt the new standards after December 15, 2017. 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.

Cash, Cash Equivalents and Rest

Cash, Cash Equivalents and Restricted Cash	9 Months Ended
	Sep. 30, 2017
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Abstract
Cash and Cash Equivalents Disclosure	Note 3. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the statement of financial position that sum to the total of the same such amounts in the statement of cash flows (in thousands): September 30, December 31, September 30, December 31, 2017 2016 2016 2015 Cash and cash equivalents $ 70,930 $ 50,224 $ 55,907 $ 28,074 Restricted cash 1,072 1,732 4,285 4,719 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 72,002 $ 51,956 $ 60,192 $ 32,793 Restricted cash includes guarantee deposits for customs duties and compensating balances required for certain credit facilities.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 4. Fair Value of Financial Instruments The following table presents a summary of the Company’s financial instruments measured at fair value on a recurring basis for the periods indicated (in thousands): As of September 30, 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 $ 70,930 $ — $ — $ 70,930 $ 50,224 $ — $ — $ 50,224 Restricted cash 1,072 — — 1,072 1,740 — — 1,740 Short term investments 36 — — 36 44 — — 44 Total assets $ 72,038 $ — $ — $ 72,038 $ 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	9 Months Ended
	Sep. 30, 2017
Net income per share
Earnings Per Share	Note 5. 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 stock options and restricted stock units outstanding during the period. The following table sets forth the computation of the basic and diluted net income per share for the periods indicated (in thousands, except per share amounts): Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Numerator: Net income $ 19,375 $ 17,736 $ 68,235 $ 17,009 Denominator: Weighted average shares used to compute net income per share Basic 19,294 17,151 18,993 17,058 Effective of dilutive options and restricted stock units 1,129 1,210 1,141 897 Diluted 20,423 18,361 20,134 17,954 Net income per share Basic $ 1.00 $ 1.03 $ 3.59 $ 1.00 Diluted $ 0.95 $ 0.97 $ 3.39 $ 0.95 There were no securities that were excluded from the computation of diluted net income per share.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventories	Note 6. Inventories Inventories, net of inventory writedowns, consist of the following for the periods indicated (in thousands): September 30, 2017 December 31, 2016 Raw materials $ 22,574 $ 21,518 Work in process and sub-assemblies 30,906 24,334 Finished goods 21,072 5,965 $ 74,552 $ 51,817 The lower of cost or market adjustment expensed for inventory for the three months ended September 30, 2017 and 2016 was $0.7 million and $0.9 million, respectively. The lower of cost or market adjustment expensed for inventory for the nine months ended September 30, 2017 and 2016 was $1.4 million and $2.8 million, respectively.

Property, Plant & Equipment

Property, Plant & Equipment	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Property, Plant & Equipment	Note 7. Property, Plant & Equipment Property, plant and equipment consisted of the following for the periods indicated (in thousands): September 30, 2017 December 31, 2016 Land improvements $ 797 $ 792 Building and improvements 73,729 69,368 Machinery and equipment 149,510 108,724 Furniture and fixtures 4,595 4,227 Computer equipment and software 7,768 6,836 Transportation equipment 706 236 237,105 190,183 Less accumulated depreciation and amortization (63,903) (49,175) 173,202 141,008 Construction in progress 7,178 1,989 Land 1,101 1,101 Property, plant and equipment, net $ 181,481 $ 144,098 For the three months ended September 30, 2017 and 2016, depreciation expense of property, plant and equipment was $5.3 million and $3.6 million, respectively. For the nine months ended September 30, 2017 and 2016, depreciation expense of property, plant and equipment was $14.0 million and $9.6 million, respectively. Included in depreciation expense was $3.4 million and $2.1 million recorded as cost of sales for the three months ended September 30, 2017 and 2016, respectively. Included in depreciation expense was $8.7 million and $6.0 million recorded as cost of sales for the nine months ended September 30, 2017 and 2016, respectively.

Intangible Assets, net

Intangible Assets, net	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, net	Note 8. Intangible Assets, net Intangible assets consisted of the following for the periods indicated (in thousands): September 30, 2017 Gross Accumulated Intangible Amount amortization assets, net Patents $ 6,425 $ (2,387) $ 4,038 Trademarks 14 (11) 3 Total intangible assets $ 6,439 $ (2,398) $ 4,041 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 September 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 nine months ended September 30, 2017 and 2016, amortization expense for intangible assets, included in general and administrative expenses on the income statement, were each $0.4 million. 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	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Notes Payable and Long-Term Debt	Note 9. Notes Payable and Long-Term Debt Notes payable and long-term debt consisted of the following for the periods indicated (in thousands): September 30, 2017 December 31, 2016 Revolving line of credit with a U.S. bank up to $50,000 with interest at LIBOR plus 1.5%, maturing September 28, 2020 $ 36,000 $ — Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2% — 2,925 Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2% — 9,500 Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2% — 21,670 Notes payable to a finance company due in monthly installments with 4.5% interest, maturing May 27, 2018 and June 30, 2018 881 2,919 Notes payable to a finance company due in monthly installments with 4% interest, maturing March 31, 2019 4,128 5,812 Total 41,009 42,826 Less current portion (3,638) (7,865) Non-current portion $ 37,371 $ 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 September 30, 2017. The one-month London Interbank Offered Rate (LIBOR) was 1.23% on September 30, 2017. Maturities of long-term debt are as follows for the future one-year periods ending September 30, (in thousands): 2018 $ 3,638 2019 1,371 2020 36,000 2021 — 2022 — 2023 and thereafter — Total outstanding $ 41,009 On June 14, 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 had 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 would have been due on January 26, 2022 and would have included 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 was adjusted to LIBOR Borrowing Rate plus 2.0% under the Modification Agreement. 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 would have matured on June 30, 2018, and retained a $10.0 million term loan which would have matured on June 30, 2020. The First Amendment also provided 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%. On September 28, 2017, the Company terminated the Credit Agreement and all outstanding balances of the loans had been repaid. 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 October 5, 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 amended and restated 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-six (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 would have continued on the same day of each month thereafter. The final principal and interest payment was due on January 26, 2022 and would have included 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 remained unchanged. On September 28, 2017, the Company repaid the outstanding balance of $11.2 million and terminated the loan. On September 28, 2017, the Company entered into a Loan Agreement, a Promissory Note, an Addendum to the Promissory Note, a BB&T Security Agreement, a Trademark Security Agreement, and a Patent Security Agreement (together the “Credit Facility”) with Branch Banking and Trust Company (“BB&T”). The Credit Facility provides the Company with a three year, $50 million, revolving line of credit. Borrowings under the Credit Facility will be used for general corporate purposes. The Company will make monthly payments of accrued interest with the final monthly payment being for all principal and all accrued interest not yet paid.The Company’s obligations under the Credit Facility will be secured by the Company’s accounts receivable, inventory, intellectual property, all business assets with the exception of real estate and equipment. Borrowings under the Credit Facility will bear interest at a rate equal to the one-month LIBOR plus 1.50%. The Credit Facility requires the Company to maintain certain financial covenants and also contains representations and warranties, and events of default applicable to the Company that are customary for agreements of this type. As of September 30, 2017, the Company was in compliance with all covenants under the Credit Facility. As of September 30, 2017, $36.0 million was outstanding under the Credit Facility. 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 Purchase and 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 September 30, 2017, $0.9 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 September 30, 2017, $4.1 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. On March 29, 2017, the Company repaid the outstanding balance and terminated the loan. As of September 30, 2017 and December 31, 2016, the Company had $14.0 million and $75.8 million of unused borrowing capacity, respectively. As of September 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	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Accrued Liabilities	Note 10. Accrued Liabilities Accrued liabilities consisted of the following for the periods indicated (in thousands): September 30, 2017 December 31, 2016 Accrued payroll $ 9,483 $ 9,231 Accrued rent 1,124 959 Accrued employee benefits 2,120 1,572 Accrued state and local taxes 709 607 Advance payments 312 252 Accrued product warranty 1,004 705 Accrued commission expenses 327 205 Accrued professional fees 765 163 Accrued capital expenditures 95 — Accrued other 862 758 $ 16,801 $ 14,452

Other Income and Expense

Other Income and Expense	9 Months Ended
	Sep. 30, 2017
Other income (expense)
Other Income and Expense	Note 11. Other Income and Expense Other income and (expense) consisted of the following for the periods indicated (in thousands): Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Foreign exchange transaction loss (442) (69) (1,141) (614) Government subsidy income 41 125 116 145 Other non-operating gain 58 14 178 26 Loss on disposal of assets (11) (4) (51) (89) $ (354) $ 66 $ (898) $ (532)

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Note 12. 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 stock 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 (357) 8.35 $ 61.81 4.41 19,056 Forfeited (110) 9.10 4.89 6,125 Outstanding, September 30, 2017 663 $ 10.01 $ 5.17 5.89 $ 36,266 Exercisable, September 30, 2017 652 $ 9.94 5.89 $ 35,698 Vested and expected to vest 663 $ 10.01 5.89 $ 36,266 As of September 30, 2017, there was approximately $0.1 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 507 38.85 19,676 Released (232) $ 66.03 19.97 15,294 Cancelled/Forfeited (27) 22.27 1,787 Outstanding, September 30, 2017 765 $ 28.89 $ 49,444 Exercisable, September 30, 2017 2 $ 120 Vested and expected to vest 765 $ 49,444 As of September 30, 2017, there was $20.6 million of unrecognized compensation expense related to these RSUs and RSAs. This expense is expected to be recognized over 3 years. Share-Based Compensation Employee share-based compensation expenses recognized for the periods indicated (in thousands): Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Share-based compensation - by expense type Cost of goods sold $ 124 $ 53 $ 336 $ 140 Research and development 400 165 1,106 437 Sales and marketing 118 97 367 264 General and administrative 1,439 732 4,040 1,989 Total share-based compensation expense $ 2,081 $ 1,047 $ 5,849 $ 2,830 Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Share-based compensation - by award type Employee stock options $ 263 $ 374 $ 810 $ 1,111 Restricted stock units 1,818 673 5,039 1,719 Total share-based compensation expense $ 2,081 $ 1,047 $ 5,849 $ 2,830

Stockholders Equity

Stockholders Equity	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Stockholders' Equity	Note 13. 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	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Geographic Information	Note 14. 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 September 30, Nine months ended September 30, 2017 2016 2017 2016 Revenues: United States $ 4,887 $ 7,277 $ 13,519 $ 15,314 Taiwan 19,405 44,723 183,906 126,991 China 64,587 18,137 105,049 33,508 $ 88,879 $ 70,137 $ 302,474 $ 175,813 As of the period ended September 30, December 31, 2017 2016 Long-lived assets: United States $ 71,023 $ 66,028 Taiwan 62,697 48,728 China 52,598 34,113 $ 186,318 $ 148,869

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Note 15. 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	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 16. Subsequent Events The Company has evaluated subsequent events through the date the financial statements were available to be issued. On October 5, 2017, the Company’s Taiwan branch entered into an Early Termination Agreement (the “Termination Agreement”) with Chailease Finance Co., Ltd. (“Chailease”), pursuant to which the Finance Lease Agreement executed on March 31, 2016 (the “Original Agreement”) was terminated effective on October 6, 2017. Under the terms of the Termination Agreement, the Company agreed to pay Chailease 124,788,007 New Taiwan Dollars, or approximately $4.1 million, which includes all costs and expenses associated with the early termination, and Chailease agreed to transfer title to the Company of all property contemplated under the Original Agreement.

Significant Accounting Polici24

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Business Overview	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	Interim Financial Statements The unaudited condensed consolidated financial statements of the Company as of September 30, 2017 and December 31, 2016 and for the three and nine months ended September 30, 2017 and September 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 nine months ended September 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	Note 2. Significant Accounting Policies There have been no changes in the Company’s significant accounting policies for the three and nine months ended September 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 Accounting Standards Update (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. 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 15, 2017, with early adoption permitted. The amendments in this ASU would be applied using a retrospective approach. The Company adopted the provisions of ASU 2016-18 as of July 1, 2017 with no material impact 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 adopted the provisions of ASU 2016-15 as of July 1, 2017 with no material impact on the financial statements. 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 adopted the provisions of ASU 2017-09 as of July 1, 2017 with no material impact on the financial statements. Recent Accounting Pronouncements Yet to be Adopted 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. In applying the new guidance, the Company will: 1) identify the contracts with its customers, 2) identify the performance obligations in the contracts, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations of the contract, and 5) recognize revenue when (or as) the Company satisfies a performance obligation. Since this guidance was issued, the Company has undertaken an accounting assessment phase focusing on developing a scoping plan and a review plan to determine the gaps between existing revenue recognition policies and the requirements of the new revenue guidance. This accounting assessment involved developing a training and education process for the Company personnel, performing sales contract walkthroughs to identify financial obligations, reviewing existing revenue streams and mapping contract features to revenue streams. The Company is in the process of developing any necessary accounting policy changes to adopt new standards on the effective date. The Company’s assessment has determined that nearly all of the Company’s revenue is derived from sales of products to customers. Contracts governing the terms and conditions of these sales include purchase orders and various master purchase agreements or similar contracts. These contracts specify terms associated with these sales and the Company recognizes revenue when the products are delivered according to the terms specified in the contracts. The new guidance will not affect this revenue recognition practice. For this reason, the Company does not believe that the new standard will have a material effect on its financial statements. The Company is continuing its evaluation of any required disclosures and changes to its accounting policies, as well as any other potential effects on its consolidated financial position, results of operations and cash flows as a result of this new standard. The Company plans to adopt the new standards after December 15, 2017. 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.

Cash Cash Equivalents and Restr

Cash Cash Equivalents and Restricted Cash (Tables)	9 Months Ended
	Sep. 30, 2017
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Abstract
Schedule of Cash and Cash Equivalents [Table Text Block]	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the statement of financial position that sum to the total of the same such amounts in the statement of cash flows (in thousands): September 30, December 31, September 30, December 31, 2017 2016 2016 2015 Cash and cash equivalents $ 70,930 $ 50,224 $ 55,907 $ 28,074 Restricted cash 1,072 1,732 4,285 4,719 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 72,002 $ 51,956 $ 60,192 $ 32,793

Fair Value of Financial Instr26

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 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 September 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 $ 70,930 $ — $ — $ 70,930 $ 50,224 $ — $ — $ 50,224 Restricted cash 1,072 — — 1,072 1,740 — — 1,740 Short term investments 36 — — 36 44 — — 44 Total assets $ 72,038 $ — $ — $ 72,038 $ 52,008 $ — $ — $ 52,008 Liabilities: Bank acceptance payable — — — — — 307 — 307 Total liabilities $ — $ — $ — $ — $ — $ 307 $ — $ 307

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 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 per share for the periods indicated (in thousands, except per share amounts): Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Numerator: Net income $ 19,375 $ 17,736 $ 68,235 $ 17,009 Denominator: Weighted average shares used to compute net income per share Basic 19,294 17,151 18,993 17,058 Effective of dilutive options and restricted stock units 1,129 1,210 1,141 897 Diluted 20,423 18,361 20,134 17,954 Net income per share Basic $ 1.00 $ 1.03 $ 3.59 $ 1.00 Diluted $ 0.95 $ 0.97 $ 3.39 $ 0.95
Schedule of potentially dilutive securities	There were no securities that were excluded from the computation of diluted net income per share.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories, net of inventory writedowns, consist of the following for the periods indicated (in thousands): September 30, 2017 December 31, 2016 Raw materials $ 22,574 $ 21,518 Work in process and sub-assemblies 30,906 24,334 Finished goods 21,072 5,965 $ 74,552 $ 51,817

Property, Plant & Equipment (Ta

Property, Plant & Equipment (Tables)	9 Months Ended
	Sep. 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): September 30, 2017 December 31, 2016 Land improvements $ 797 $ 792 Building and improvements 73,729 69,368 Machinery and equipment 149,510 108,724 Furniture and fixtures 4,595 4,227 Computer equipment and software 7,768 6,836 Transportation equipment 706 236 237,105 190,183 Less accumulated depreciation and amortization (63,903) (49,175) 173,202 141,008 Construction in progress 7,178 1,989 Land 1,101 1,101 Property, plant and equipment, net $ 181,481 $ 144,098

Intangible Assets, net (Tables)

Intangible Assets, net (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	Intangible assets consisted of the following for the periods indicated (in thousands): September 30, 2017 Gross Accumulated Intangible Amount amortization assets, net Patents $ 6,425 $ (2,387) $ 4,038 Trademarks 14 (11) 3 Total intangible assets $ 6,439 $ (2,398) $ 4,041 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 D31

Notes Payable and Long-Term Debt (Tables)	9 Months Ended
	Sep. 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): September 30, 2017 December 31, 2016 Revolving line of credit with a U.S. bank up to $50,000 with interest at LIBOR plus 1.5%, maturing September 28, 2020 $ 36,000 $ — Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2% — 2,925 Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2% — 9,500 Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2% — 21,670 Notes payable to a finance company due in monthly installments with 4.5% interest, maturing May 27, 2018 and June 30, 2018 881 2,919 Notes payable to a finance company due in monthly installments with 4% interest, maturing March 31, 2019 4,128 5,812 Total 41,009 42,826 Less current portion (3,638) (7,865) Non-current portion $ 37,371 $ 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 September 30, (in thousands): 2018 $ 3,638 2019 1,371 2020 36,000 2021 — 2022 — 2023 and thereafter — Total outstanding $ 41,009

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2017
Payables and Accruals [Abstract]
Schedule of accrued liabilities	Accrued liabilities consisted of the following for the periods indicated (in thousands): September 30, 2017 December 31, 2016 Accrued payroll $ 9,483 $ 9,231 Accrued rent 1,124 959 Accrued employee benefits 2,120 1,572 Accrued state and local taxes 709 607 Advance payments 312 252 Accrued product warranty 1,004 705 Accrued commission expenses 327 205 Accrued professional fees 765 163 Accrued capital expenditures 95 — Accrued other 862 758 $ 16,801 $ 14,452

Other Income and Expense (Table

Other Income and Expense (Tables)	9 Months Ended
	Sep. 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 September 30, Nine months ended September 30, 2017 2016 2017 2016 Foreign exchange transaction loss (442) (69) (1,141) (614) Government subsidy income 41 125 116 145 Other non-operating gain 58 14 178 26 Loss on disposal of assets (11) (4) (51) (89) $ (354) $ 66 $ (898) $ (532)

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 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 (357) 8.35 $ 61.81 4.41 19,056 Forfeited (110) 9.10 4.89 6,125 Outstanding, September 30, 2017 663 $ 10.01 $ 5.17 5.89 $ 36,266 Exercisable, September 30, 2017 652 $ 9.94 5.89 $ 35,698 Vested and expected to vest 663 $ 10.01 5.89 $ 36,266
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 507 38.85 19,676 Released (232) $ 66.03 19.97 15,294 Cancelled/Forfeited (27) 22.27 1,787 Outstanding, September 30, 2017 765 $ 28.89 $ 49,444 Exercisable, September 30, 2017 2 $ 120 Vested and expected to vest 765 $ 49,444
Schedule of employee stock-based compensation expenses	Employee share-based compensation expenses recognized for the periods indicated (in thousands): Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Share-based compensation - by expense type Cost of goods sold $ 124 $ 53 $ 336 $ 140 Research and development 400 165 1,106 437 Sales and marketing 118 97 367 264 General and administrative 1,439 732 4,040 1,989 Total share-based compensation expense $ 2,081 $ 1,047 $ 5,849 $ 2,830 Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Share-based compensation - by award type Employee stock options $ 263 $ 374 $ 810 $ 1,111 Restricted stock units 1,818 673 5,039 1,719 Total share-based compensation expense $ 2,081 $ 1,047 $ 5,849 $ 2,830

Geographic Information (Tables)

Geographic Information (Tables)	9 Months Ended
	Sep. 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 September 30, Nine months ended September 30, 2017 2016 2017 2016 Revenues: United States $ 4,887 $ 7,277 $ 13,519 $ 15,314 Taiwan 19,405 44,723 183,906 126,991 China 64,587 18,137 105,049 33,508 $ 88,879 $ 70,137 $ 302,474 $ 175,813
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 September 30, December 31, 2017 2016 Long-lived assets: United States $ 71,023 $ 66,028 Taiwan 62,697 48,728 China 52,598 34,113 $ 186,318 $ 148,869

Description of Business (Detail

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

Significant Accounting Polici37

Significant Accounting Policies (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Windfall tax benefits	$ 1,200
Accounting Standards Update 2016-09
Retained earnings	$ 10

Cash, Cash Equivalents and Re38

Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Abstract
Cash and cash equivalents	$ 70,930	$ 50,224	$ 55,907	$ 28,074
Restricted cash	1,072	1,732	4,285	4,719
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$ 72,002	$ 51,956	$ 60,192	$ 32,793

Fair Value of Financial Instr39

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents	$ 70,930	$ 50,224
Restricted cash	1,072	1,740
Short term investments	36	44
Total assets	72,038	52,008
Liabilities:
Bank acceptance payable		307
Total liabilities		307
Level 1
Assets:
Cash and cash equivalents	70,930	50,224
Restricted cash	1,072	1,740
Short term investments	36	44
Total assets	$ 72,038	52,008
Level 2
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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net income	$ 19,375	$ 17,736	$ 68,235	$ 17,009
Weighted average shares used to compute net income per share
Basic	19,294,022	17,151,031	18,993,068	17,057,687
Effective of dilutive options and restricted stock units	1,129,000	1,210,000	1,141,000	897,000
Diluted	20,422,609	18,360,531	20,133,644	17,954,229
Net income (loss) per share
Basic	$ 1	$ 1.03	$ 3.59	$ 1
Diluted	$ 0.95	$ 0.97	$ 3.39	$ 0.95

Earnings Per Share (Details - P

Earnings Per Share (Details - Potentially Dilutive Shares) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income per share
Potentially dilutive securities excluded from EPS	0	0	0	0

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 22,574	$ 21,518
Work in process and sub-assemblies	30,906	24,334
Finished goods	21,072	5,965
Inventories	$ 74,552	$ 51,817

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Inventory Disclosure [Abstract]
Lower of cost or market adjustment for inventory	$ 0.7	$ 0.9	$ 1.4	$ 2.8

Property, Plant & Equipment (De

Property, Plant & Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property, plant and equipment, gross	$ 237,105	$ 190,183
Less accumulated depreciation and amortization	(63,903)	(49,175)
Property, plant and equipment after accumulated depreciation and amortization, excluding construction in progress and land	173,202	141,008
Construction in progress	7,178	1,989
Land	1,101	1,101
Property, plant and equipment, net	181,481	144,098
Land improvements
Property, plant and equipment, gross	797	792
Building and improvements
Property, plant and equipment, gross	73,729	69,368
Machinery and equipment
Property, plant and equipment, gross	149,510	108,724
Furniture and fixtures
Property, plant and equipment, gross	4,595	4,227
Computer equipment and software
Property, plant and equipment, gross	7,768	6,836
Transportation equipment
Property, plant and equipment, gross	$ 706	$ 236

Property, Plant & Equipment - (

Property, Plant & Equipment - (Details Narrative) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 5.3		$ 3.6	$ 14	$ 9.6
Cost of Sales, depreciation	$ 3.4	$ 2.1		$ 8.7	$ 6

Intangible Assets, net (Details

Intangible Assets, net (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Gross Amount	$ 6,439	$ 6,001
Accumulated amortization	(2,398)	(2,008)
Intangible assets, net	4,041	3,993
Patents
Gross Amount	6,425	5,987
Accumulated amortization	(2,387)	(1,997)
Intangible assets, net	4,038	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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Amortization expense for intangible assets	$ 0.1	$ 0.1	$ 0.4	$ 0.4
License
Weighted average amortization period			8 years

Notes Payable and Long-Term D48

Notes Payable and Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Notes payable and long-term debt	$ 41,009	$ 41,009	$ 42,826
Current portion of notes payable and long-term debt	3,638	3,638	7,865
Long term portion of notes payable and long-term debt	$ 37,371	$ 37,371	34,961
Bank acceptance notes			307
One Month LIBOR Rate [Member]
Interest rate description	LIBOR Borrowing Rate plus 1.23%
Basis spread on variable rate	1.23%
Term loan 1
Notes payable and long-term debt			2,925
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
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
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	$ 881	$ 881	2,919
Debt maturity date		Jun. 30, 2018
Stated interest rate	4.50%	4.50%
Note payable 2
Notes payable and long-term debt	$ 4,128	$ 4,128	5,812
Debt maturity date		Mar. 31, 2019
Stated interest rate	4.00%	4.00%
Bank Acceptance Notes Payable
Bank acceptance notes			$ 307
Stated interest rate	0.00%	0.00%
Revolving Line of Credit | Revolving Line of Credit 1
Notes payable and long-term debt	$ 36,000	$ 36,000
Debt maturity date		Sep. 28, 2020
Revolving line of credit maximum borrowing capacity	$ 50,000	$ 50,000
Revolving Line of Credit | Revolving Line of Credit 1 | London Interbank Offered Rate (LIBOR) [Member]
Basis spread on variable rate		1.50%

Notes Payable and Long-Term D49

Notes Payable and Long-Term Debt - Debt Maturities (Details) $ in Thousands	Sep. 30, 2017USD ($)
Maturities of notes payable and long-term debt
2,018	$ 3,638
2,019	1,371
2,020	36,000
Total outstanding	$ 41,009

Notes Payable and Long-Term D50

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

Sep. 30, 2017USD ($)

Sep. 28, 2017USD ($)

Feb. 27, 2017USD ($)

Oct. 01, 2016

Sep. 27, 2016

Sep. 25, 2016

Sep. 24, 2016

Jun. 25, 2016USD ($)

Jun. 24, 2016USD ($)loanfacility

May 27, 2015TWD

May 27, 2015USD ($)

Sep. 30, 2016

Mar. 31, 2016TWD

Mar. 31, 2016USD ($)

Sep. 30, 2017USD ($)

Sep. 30, 2016USD ($)

Dec. 31, 2016USD ($)

Repayments of Lines of Credit

$ 114,542

Notes payable and long-term debt

$ 41,009

$ 41,009

$ 42,826

Restricted Cash and Cash Equivalents, Current

1,072

1,072

1,732

Bank acceptance notes outstanding

307

Unused borrowing capacity

14,000

14,000

75,800

Restricted cash, investments or security deposit associated with loan facilities

$ 0

0

$ 1,700

One Month LIBOR Rate [Member]

Interest rate description

LIBOR Borrowing Rate plus 1.23%

Basis spread on variable rate

1.23%

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

66 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 and Cash Equivalents, Current

11,000

11,000

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

900

900

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

4,100

4,100

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

Branch Banking and Trust Company [Member] | First Credit Facility [Member]

Revolving line of credit maximum borrowing capacity

$ 50,000

Notes payable and long-term debt

36,000

$ 36,000

Term of loan

3 years

Branch Banking and Trust Company [Member] | First Credit Facility [Member] | One Month LIBOR Rate [Member]

Basis spread on variable rate

1.50%

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, 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	Sep. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued payroll	$ 9,483	$ 9,231
Accrued rent	1,124	959
Accrued employee benefits	2,120	1,572
Accrued state and local taxes	709	607
Advance payments	312	252
Accrued product warranty	1,004	705
Accrued commission expenses	327	205
Accrued professional fees	765	163
Accrued capital expenditures	95
Accrued other	862	758
Total accrued liabilities	$ 16,801	$ 14,452

Other Income and Expense (Detai

Other Income and Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other income (expense)
Foreign exchange transaction loss	$ (442)	$ (69)	$ (1,141)	$ (614)
Government subsidy income	41	125	116	145
Other non-operating gain	58	14	178	26
Gain (loss) on disposal of assets	(11)	(4)	(51)	(89)
Other income and expense, net	$ (354)	$ 66	$ (898)	$ (532)

Share-Based Compensation - Opti

Share-Based Compensation - Option Activity (Details) - Employee Stock Option $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Number of Shares
Outstanding, beginning balance | shares	1,130
Exercised | shares	(357)
Forfeited | shares	(110)
Outstanding, ending balance | shares	663
Exercisable, ending balance | shares	652
Vested and expected to vest | shares	663
Weighted Average Exercise Price
Outstanding, beginning balance	$ 9.40
Exercised	8.35
Forfeited	9.10
Outstanding, ending balance	10.01
Exercisable, ending balance	9.94
Vested and expected to vest	10.01
Weighted Average Share Price on Date of Exercise	61.81
Weighted Average Fair Value [Abstract]
Outstanding, beginning balance	4.90
Exercised	4.41
Forfeited	4.89
Outstanding, ending balance	$ 5.17
Weighted Average Remaining Contractual Life
Outstanding, ending balance	5 years 10 months 21 days
Exercisable, ending balance	5 years 10 months 21 days
Vested and expected to vest	5 years 10 months 21 days
Aggregate Intrinsic Value
Aggregate intrinsic value, beginning balance | $	$ 15,872
Exercised | $	19,056
Forfeited | $	6,125
Aggregate intrinsic value, ending balance | $	36,266
Exercisable, ending balance | $	35,698
Vested and expected to vest | $	$ 36,266

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Units (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)$ / sharesshares
Number of shares
Outstanding, beginning balance | shares	517
Granted | shares	507
Released | shares	(232)
Cancelled/Forfeited | shares	(27)
Outstanding, ending balance | shares	765
Exercisable, ending balance | shares	2
Vested and expected to vest | shares	765
Weighted Average Share Price on Date of Release | $ / shares	$ 66.03
Weighted Average Fair Value
Outstanding, beginning balance | $ / shares	14.79
Granted | $ / shares	38.85
Released | $ / shares	19.97
Cancelled/Forfeited | $ / shares	22.27
Outstanding, ending balance | $ / shares	$ 28.89
Aggregate Intrinsic Value [Abstract]
Aggregate intrinsic value, outstanding | $	$ 12,128
Granted | $	19,676
Released | $	15,294
Cancelled/Forfeited | $	1,787
Aggregate intrinsic value, outstanding | $	49,444
Exercisable, ending balance | $	120
Vested and expected to vest | $	$ 49,444
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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Total share-based compensation expense	$ 2,081	$ 1,047	$ 5,849	$ 2,830
Employee Stock Option
Total share-based compensation expense	263	374	810	1,111
Restricted stock units
Total share-based compensation expense	1,818	673	5,039	1,719
Cost of sales [Member]
Total share-based compensation expense	124	53	336	140
Research and development [Member]
Total share-based compensation expense	400	165	1,106	437
Sales and marketing [Member]
Total share-based compensation expense	118	97	367	264
General and administrative [Member]
Total share-based compensation expense	$ 1,439	$ 732	$ 4,040	$ 1,989

Share-Based Compensation - Narr

Share-Based Compensation - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 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	$ 0.1
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	$ 20.6
Compensation cost unrecognized weighted average period	3 years
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	Sep. 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		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)item	Sep. 30, 2016USD ($)
Number of Reportable segment | item			1
Revenues	$ 88,879	$ 70,137	$ 302,474	$ 175,813
UNITED STATES
Revenues	4,887	7,277	13,519	15,314
TAIWAN, PROVINCE OF CHINA
Revenues	19,405	44,723	183,906	126,991
CHINA
Revenues	$ 64,587	$ 18,137	$ 105,049	$ 33,508

Geographic Information - Long L

Geographic Information - Long Lived Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Long-lived assets	$ 186,318	$ 148,869
UNITED STATES
Long-lived assets	71,023	66,028
TAIWAN, PROVINCE OF CHINA
Long-lived assets	62,697	48,728
CHINA
Long-lived assets	$ 52,598	$ 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

Subsequent Events - NARRATIVE (

Subsequent Events - NARRATIVE (Details) $ in Thousands, shares in Millions	Oct. 05, 2017TWD	Oct. 05, 2017USD ($)	Oct. 17, 2016shares	Mar. 31, 2017USD ($)shares	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)
Repayments of debt					$ 38,300	$ 3,995
Repayments of outstanding balance						$ 114,542
Common stock, value					21,572
Proceeds from common stock offering, net					21,572
ATM Offering [Member]
Common stock, shares | shares			250	1.6
Proceeds from common stock offering, net				$ 48,800
Termination Agreement [Member] | Subsequent Event [Member] | Chailease Finance Co. Ltd. [Member]
Termination agreement payment	TWD 124,788,007	$ 4,100
Letter of Credit [Member]
Revolving line of credit maximum borrowing capacity					$ 10,000