Neophotonics (NPTN) 10-Q 9 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Trading Symbol	NPTN
Entity Registrant Name	NEOPHOTONICS CORP
Entity Central Index Key	1,227,025
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		41,815,100

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 82,476	$ 76,088
Short-term investments	28,427	23,294
Restricted cash	2,580	2,660
Accounts receivable, net of allowance for doubtful accounts	86,859	83,161
Inventories	61,515	65,602
Prepaid expenses and other current assets	13,410	12,393
Total current assets	275,267	263,198
Property, plant and equipment, net	76,625	62,618
Purchased intangible assets, net	7,528	9,852
Goodwill	1,115	1,115
Other long-term assets	4,888	5,095
Total assets	365,423	341,878
Current liabilities:
Accounts payable	64,133	50,620
Notes payable and short-term borrowing	32,389	32,657
Current portion of long-term debt	892	760
Accrued and other current liabilities	21,919	27,950
Total current liabilities	119,333	111,987
Long-term debt, net of current portion	12,144	10,759
Other noncurrent liabilities	8,456	7,476
Total liabilities	139,933	130,222
Commitments and contingencies (Note 10)
Stockholders' equity:
Preferred stock, $0.0025 par value, 10,000 shares authorized, no shares issued or outstanding
Common stock, $0.0025 par value, 100,000 shares authorized At June 30, 2016, 41,753 shares issued and outstanding; at December 31, 2015, 40,986 shares issued and outstanding	104	102
Additional paid-in capital	520,249	511,750
Accumulated other comprehensive loss	(1,376)	(1,723)
Accumulated deficit	(293,487)	(298,473)
Total stockholders' equity	225,490	211,656
Total liabilities and stockholders' equity	$ 365,423	$ 341,878

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.0025	$ 0.0025
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0025	$ 0.0025
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	41,753	40,986
Common stock, shares outstanding	41,753	40,986

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Revenue	$ 99,129	$ 85,372	$ 198,274	$ 166,756
Cost of goods sold	71,600	59,226	139,623	116,557
Gross profit	27,529	26,146	58,651	50,199
Operating expenses:
Research and development	11,780	11,457	24,732	21,939
Sales and marketing	3,807	3,906	7,738	7,650
General and administrative	7,841	7,419	16,925	15,615
Amortization of purchased intangible assets	460	448	913	897
Acquisition-related costs	775	147	775	287
Restructuring charges		20		26
Total operating expenses	24,663	23,397	51,083	46,414
Income from operations	2,866	2,749	7,568	3,785
Interest income	77	23	132	53
Interest expense	(99)	(456)	(201)	(962)
Other income (expense), net	458	602	(846)	556
Total interest and other income (expense), net	436	169	(915)	(353)
Income before income taxes	3,302	2,918	6,653	3,432
Provision for income taxes	(626)	(1,127)	(1,667)	(1,541)
Net income	$ 2,676	$ 1,791	$ 4,986	$ 1,891
Basic net income per share	$ 0.06	$ 0.05	$ 0.12	$ 0.06
Diluted net income per share	$ 0.06	$ 0.05	$ 0.11	$ 0.05
Weighted average shares used to compute basic net income per share	41,603	35,684	41,362	34,240
Weighted average shares used to compute diluted net income per share	44,320	37,294	44,042	35,128

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 2,676	$ 1,791	$ 4,986	$ 1,891
Other comprehensive income:
Foreign currency translation adjustments net of zero tax	(1,750)	(98)	314	590
Unrealized gains (losses) on available-for-sale securities, net of zero tax	4	(2)	33	(5)
Total other comprehensive loss	(1,746)	(100)	347	585
Comprehensive loss	$ 930	$ 1,691	$ 5,333	$ 2,476

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement Of Income And Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax	$ 0	$ 0	$ 0	$ 0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities
Net income	$ 4,986	$ 1,891
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,137	12,046
Stock-based compensation expense	5,669	3,982
Investment, debt related, and other amortization	94	216
Loss (gain) on disposal of property and equipment	48	(27)
Adjustment to fair value of penalty payment derivative		(141)
Allowance for doubtful accounts	(393)	86
Write-down of inventories	1,740	2,135
Foreign currency remeasurement and other, net	248	702
Change in assets and liabilities, net of effects of acquisitions:
Accounts receivable	(3,288)	7,470
Inventories	1,892	(12,513)
Prepaid expenses and other assets	(501)	3,026
Accounts payable	8,224	(2,340)
Accrued and other liabilities	(6,678)	(1,411)
Net cash provided by operating activities	23,178	15,122
Cash flows from investing activities
Purchase of property, plant and equipment	(14,595)	(5,634)
Proceeds from sale of property, plant and equipment and other assets	19	98
Purchase of marketable securities	(47,807)	(409)
Proceeds from sale of marketable securities	34,682
Proceeds from maturity of securities	8,000	400
Change in restricted cash	19	9,020
Net cash (used in) provided by investing activities	(19,682)	3,475
Cash flows from financing activities
Proceeds from public stock offering, net of offering costs		46,279
Proceeds from exercise of stock options and issuance of stock under ESPP	3,538	1,020
Tax withholding on restricted stock units	(77)	(191)
Proceeds from bank loans	47,600	32,816
Repayment of bank and acquisition-related loans	(48,047)	(49,092)
Proceeds from issuance of notes payable	9,217	11,590
Repayment of notes payable	(9,283)	(11,756)
Net cash provided by financing activities	2,948	30,666
Effect of exchange rates on cash and cash equivalents	(56)	(163)
Net increase in cash and cash equivalents	6,388	49,100
Cash and cash equivalents at the beginning of the period	76,088	43,035
Cash and cash equivalents at the end of the period	82,476	92,135
Supplemental disclosure of noncash investing and financing activities:
Changes in unpaid property, plant and equipment	$ (4,872)	(643)
Modification of bank loan with Comerica		15,786
Issuance of note to seller of acquired business		15,482
Transfer of restricted investments to short-term investments		8,296
Unpaid public stock offering costs		$ 634

Basis of presentation and signi

Basis of presentation and significant accounting policies	6 Months Ended
	Jun. 30, 2016
Basis of presentation and significant accounting policies
Basis of presentation and significant accounting policies	Note 1. Basis of presentation and significant accounting policies Basis of Presentation and Consolidation The condensed consolidated financial statements of NeoPhotonics Corporation (“NeoPhotonics” or the “Company”) as of June 30, 2016 and for the three and six months ended June 30, 2016 and 2015, have been prepared in accordance with the instructions on Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In accordance with those rules and regulations, the Company has omitted certain information and notes normally provided in the Company’s annual consolidated financial statements. In the opinion of management, the condensed consolidated financial statements contain all adjustments, consisting only of normal recurring items, except as otherwise noted, necessary for the fair presentation of the Company’s financial position and results of operations for the interim periods. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”). 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 for the fiscal year ended December 31, 2015. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results expected for the entire fiscal year. All intercompany accounts and transactions have been eliminated. Certain Significant Risks and Uncertainties The Company operates in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, any of the following areas could have a negative effect on the Company in terms of its future financial position, results of operations or cash flows: the general state of the U.S., China and world economies; the highly cyclical nature of the industries the Company serves; the loss of any of a small number of its larger customers; ability to obtain additional financing; inability to meet certain debt covenants; failure to successfully integrate completed acquisitions; fundamental changes in the technology underlying the Company’s products; the hiring, training and retention of key employees; successful and timely completion of product design efforts; and new product design introductions by competitors. Reclassification Reclassification has been made to combine the deferred income tax liabilities amount into the other noncurrent liabilities in the prior year to conform to the current year’s presentation. Concentration In the three months ended June 30, 2016, Huawei Technologies Co. Ltd. and their affiliate HiSilicon Technologies (together with Huawei Technologies Co. Ltd., “Huawei”) and Ciena Corporation (“Ciena”) accounted for approximately 45% and 16% of the Company’s total revenue, respectively, and the Company’s top ten customers represented approximately 91% of the Company’s total revenue. In the three months ended June 30, 2015, Huawei, Ciena and Nokia Corporation each accounted for approximately 40% , 22% and 11% of the Company’s total revenue, respectively, and the Company’s top ten customers represented approximately 91% of the Company’s total revenue. In the six months ended June 30, 2016, Huawei and Ciena each accounted for approximately 49% and 16% of the Company’s total revenue, respectively, and the top ten customers represented approximately 91% of its total revenue. In the six months ended June 30, 2015, Huawei and Ciena accounted for approximately 40% and 23% of the Company’s total revenue, respectively, and the Company’s top ten customers represented approximately 90% of its total revenue. As of June 30, 2016 and December 31, 2015, one customer accounted for approximately 45% and 59% , respectively, of the Company’s total accounts receivable. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenue and expenses during the reporting period. Significant estimates made by management include: the useful lives of property, plant and equipment and intangible assets as well as future cash flows to be generated by those assets; fair values of identifiable assets acquired and liabilities assumed in business combinations; allowances for doubtful accounts; valuation allowances for deferred tax assets; valuation of excess and obsolete inventories; warranty reserves; litigation accrual and recognition of stock-based compensation, among others. Actual results could differ from these estimates. Summary of Significant Accounting Policies There have been no significant changes in the Company’s significant accounting policies in the three and six months ended June 30 , 2016, as compared to the significant accounting policies described in its Annual Report on Form 10-K for the year ended December 31, 2015. Recent accounting pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 amends existing guidance on the impairment of financial assets and adds an impairment model that is based on expected losses rather than incurred losses. Under this guidance, an entity recognizes as an allowance its estimate of expected credit losses for its financial assets. An entity will apply this guidance through a cumulative-effect adjustment to retained earnings upon adoption (a modified-retrospective approach) while a prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. ASU 2016-13 is effective for the Company’s annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for the Company’s annual and interim reporting periods beginning after December 15, 2016. Early adoption is permitted. A retrospective transition method is required for the changes related to the recognition timing of excess tax benefits, minimum statutory withholding requirements, forfeitures and intrinsic value. A retrospective transition method is required for changes related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement. A prospective transition method is required for the recognition of excess tax benefits and tax deficiencies in the income statement for estimating expected term. Changes related to the presentation of excess tax benefits on the statement of cash flows can be applied using either a prospective transition method or a retrospective transition method. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 introduces a lessee model that requires recognition of assets and liabilities arising from qualified leases on the consolidated balance sheets and consolidated statements of operations and to disclose qualitative and quantitative information about lease transactions. This guidance is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition is required with certain optional practical expedients allowed. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. A modified retrospective transition method is required except for the equity securities without readily determinable fair values which will require a prospective transition method. ASU 2016-01 is effective for the Company’s annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted for certain provisions. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 requires entities to measure most inventory “at the lower of cost and net realizable value” but does not apply to inventories that are measured by using either the last-in, first-out method or the retail inventory method. For the Company, this ASU is effective for annual and interim periods beginning after December 15, 2016. Prospective transition method is required and e a rly adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In May 2014, the FASB issued ASU N o. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. In August 2015, the FASB issued an accounting standard update for a one-year deferral of the effective date of ASU 2014-09 to annual and interim periods beginning after December 15, 2017 and permits entities to early adopt the standard of ASU 2014-09 for annual and interim reporting periods beginning after December 15, 2016. Companies are permitted to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”), which amends the principal-versus-agent implementation guidance in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606: Identifying performance obligations and Licensing amending certain aspects of ASU 2014-09 on (1) identifying performance obligations and (2) licensing. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients amending certain aspects of ASU 2016-09 including collectability, presentation of sales tax and other similar taxes collected from customers, noncash transaction, contract modifications and completed contracts at transition and the disclosure requirements for entities that use the full retrospective transition method. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements.

Net income per share

Net income per share	6 Months Ended
	Jun. 30, 2016
Net income per share
Net income per share	Note 2. Net income 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator: Net income $ $ $ $ Denominator: Weighted average shares used to compute per share amount: Basic Dilutive effect of equity awards Diluted Basic net income per share $ $ $ $ Diluted net income per share $ $ $ $ The Company has excluded the impact of the following employee stock options, restricted stock units and shares expected to be issued under its employee stock purchase plan from the computation of diluted net income per share, as their effect would have been antidilutive (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Employee stock options Restricted stock units — Employee stock purchase plan — — —

Cash, cash equivalents, short-t

Cash, cash equivalents, short-term investments, and restricted cash and investments	6 Months Ended
	Jun. 30, 2016
Restricted Cash and Investment
Cash, cash equivalents and short-term investments and restricted cash and investments	Note 3. Cash, cash equivalents, short-term investments, and restricted cash The following table summarizes the Company’s cash, cash equivalents, short-term investments, and restricted cash at June 30, 2016 and December 31, 2015 (in thousands): June 30, December 31, 2016 2015 Cash and cash equivalents: Cash $ $ Cash equivalents Cash and cash equivalents $ $ Short-term investments $ $ Restricted cash $ $ The following table summarizes the Company’s unrealized gains and losses related to its cash equivalents and short-term investments in marketable securities designated as available-for-sale (in thousands): As of June 30, 2016 As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Marketable securities: Money market accounts $ $ — $ — $ $ $ — $ — $ Money market funds — — — — Corporate bonds — Government-sponsored enterprise obligations — — Commercial paper — — — — U.S. government securities — — Sovereign government bonds — — Total $ $ $ $ $ $ — $ $ Reported as: Cash equivalents $ $ — $ — $ $ $ — $ — $ Short-term investments — Total $ $ $ $ $ $ — $ $ As of June 30, 2016 and December 31, 2015, maturities of marketable securities were as follows (in thousands): June 30, December 31, 2016 2015 Less than 1 year $ $ Due in 1 to 2 years Due after 5 years — — Total $ $ Realized gains and losses on the sale of marketable securities during the three and six months ended June 30, 2016 and 2015 were immaterial. The Company did not recognize any impairment losses on its marketable securities during the three and six months ended June 30 , 2016 or 2015. As of June 30 , 2016, the Company did not have any investments in marketable securities that were in an unrealized loss position for a period in excess of 12 months.

Fair value disclosures

Fair value disclosures	6 Months Ended
	Jun. 30, 2016
Fair value disclosures
Fair value disclosures	Note 4. Fair value disclosures Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the Company's assets that are measured at fair value on a recurring basis (in thousands): As of June 30, 2016 As of December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents and short-term investments: Money market funds $ $ — $ — $ $ $ — $ — $ U.S. government securities — — — — Money market accounts — — — — Corporate bonds — — — — Government-sponsored enterprise obligations — — — — Commercial papers — — — — Sovereign government bonds — — — — Total $ $ $ — $ $ $ $ — $ Mutual funds held in Rabbi Trust, recorded in other long-term assets $ $ — $ — $ $ $ — $ — $ The Company offers a Non-Qualified Deferred Compensation Plan (“NQDC Plan”) to a select group of its highly compensated employees. The NQDC Plan provides participants the opportunity to defer payment of certain compensation as defined in the NQDC Plan. A Rabbi Trust has been established to fund the NQDC Plan obligation, which was fully funded at June 30, 2016. The assets held by the Rabbi Trust are substantially in the form of exchange traded mutual funds and are included in the Company’s other long-term assets on its condensed consolidated balance sheets as of June 30, 2016 and December 31, 2015. The following table presents the Company's liabilities that are measured at fair value on a recurring basis (in thousands): As of June 30, 2016 As of December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Penalty payment derivative (Note 10) $ — $ — $ $ $ — $ — $ $ Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis There were no assets or liabilities measured at fair value on a nonrecurring basis as of June 30, 2016 . In the year ended December 31, 2015, the Company wrote off $0.2 million of property, plant and equipment and $0.2 million of held-for-sale assets. These assets were measured at fair value due to events or circumstances the Company identified as having significant impact on their fair value during the period. To arrive at the valuation of these assets, the Company considered the discounted cash flows to determine fair value using best estimates and unobservable inputs (Level 3). Assets and Liabilities Not Measured at Fair Value The carrying values of accounts receivable, accounts payable, notes payable and short-term borrowings approximate their fair values due to the short-term nature and liquidity of these financial instruments. The fair values of the Company’s long-term debt have been calculated using an estimate of the interest rate the Company would have had to pay on the issuance of liabilities with a similar maturity and discounting the cash flows at that rate which it considers to be a level 2 fair value measurement. The fair values do not necessarily give an indication of the amount that the Company would currently have to pay to extinguish any of this debt.

Business combination

Business combination	6 Months Ended
	Jun. 30, 2016
Business combination
Business combination	Note 5. Business combination EMCORE Corporation On January 2, 2015, the Company closed an acquisition of the tunable laser product lines of EMCORE Corporation (“EMCORE”) for an original purchase price of $17.5 million, pursuant to the terms of the Asset Purchase Agreement between the parties dated October 22, 2014, under which the Company purchased certain assets and assumed certain liabilities of EMCORE’s tunable laser product lines . Consideration for the transaction consisted of $1.5 million in cash and a promissory note (the “EMCORE Note”) of approximately $16.0 million, which was subject to certain adjustments for inventory, net accounts receivable and pre-closing revenues, and was subsequently adjusted to $15.5 million in connection with a True-Up Confirmation Agreement (the “True-Up Agreement”) executed by and between the Company and EMCORE on April 16, 2015. The True-Up Agreement made several final adjustments to the Asset Purchase Agreement, including, among other things, (i) adjusting the principal amount of the EMCORE Note from approximately $16.0 million to approximately $15.5 million, (ii) agreeing upon final amounts for inventory value adjustment, net accounts receivable adjustment, and revenue purchase price adjustment, and (iii) resolving the treatment of certain accounts receivable for products sold by EMCORE prior to the closing of the transaction. The adjusted purchase price for the acquisition was approximately $17.0 million. The Company accounted for this acquisition as a business combination. With this acquisition, the Company strengthens its narrow line width tunable laser product portfolio. In connection with the acquisition, the Company incurred approximately $0.9 million in total acquisition-related costs related to legal, accounting and other professional services. The acquisition costs were expensed as incurred and included in operating expenses in the Company’s condensed consolidated statement of operations. The Company’s preliminary allocation of the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed was based on estimated fair values as of the close of the acquisition. The fair values assigned to intangible assets acquired are based on valuations using estimates and assumptions provided by management, with the assistance of an independent third party appraisal firm. The excess purchase price over those fair values is recorded as goodwill. These estimates were determined through established and generally accepted valuation techniques. While the Company used best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date, estimates and assumptions were subject to refinement, including the acquired property, plant and equipment, prepaid and other current assets and accounts payable, as the Company was in the process of obtaining further information. As a result, during the preliminary measurement period, which was completed in 2015, the Company recorded adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Subsequent to the initial allocation of the assets acquired and liabilities assumed, the Company adjusted the acquired net accounts receivable, the acquired net inventories, the assumed sales tax accrual and the acquired prepaid expenses and other current assets by immaterial amounts, and decreased goodwill by a corresponding net amount. As of June 30, 2016 and December 31 , 2015, goodwill was $ 1.1 million, which represented the excess of the purchase price over the aggregate net estimated fair values of the assets acquired and liabilities assumed in the acquisition. The following table summarizes the allocation of the assets acquired and liabilities assumed from EMCORE as of the acquisition date and subsequent adjustments (in thousands): Total purchase consideration: Cash paid $ Notes payable Total $ Fair value of assets acquired: Accounts receivable $ Inventories Prepaid expenses and other current assets Property, plant and equipment Intangible assets acquired: Developed technology Customer relationships Total $ Less: fair value of liabilities assumed: Accounts payable $ Accrued liabilities Total $ Goodwill $ Purchased intangibles with finite lives will be amortized on a straight-line basis over their respective estimated useful lives. The following table presents details of the purchase price allocated to the acquired intangible assets at the acquisition date: Useful Purchased Life intangible assets (In years) (In thousands) Developed technology 7 $ Customer relationships 2 Total purchased intangible assets $ The following unaudited supplemental pro forma information presents the combined results of operations of NeoPhotonics Corporation for the three and six months ended June 30 , 2016 and 2015 as though the companies had been combined as of the beginning of 2014. In the three months ended June 30, 2016 and 2015, revenue related to products acquired from EMCORE was $19.0 million and $13.9 million, respectively. In the six months ended June 30, 2016 and 2015, revenue related to products acquired from EMCORE was $ 38. 0 million and $26.2 million, respectively. The pro forma financial information reflects adjustments related to transaction costs of zero and $0.1 million, respectively, in the three months ended June 30, 2016 and 2015 and zero and $0.3 million, respectively, in the six months ended June 30 , 2016 and 2015, related to transaction costs as well as immaterial employee expense. There were no sales between the business acquired from EMCORE and the Company in the three and six months ended June 30 , 2016 and 2015. The unaudited pro forma results do not assume any operating efficiencies as a result of the consolidation of operations (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Revenue $ $ $ $ Net income $ $ $ $ Basic net income per share $ $ $ $ Diluted net income per share $ $ $ $ EigenLight Corporation In November 2015, the Company closed an acquisition of the business and products of EigenLight Corporation for cash consideration of $0.4 million in an asset transaction. The Company accounted for this as a business combination and the majority of the purchase price was allocated to inventory and property, plant and equipment.

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jun. 30, 2016
Balance Sheet Components [Abstract]
Balance sheet components	Note 6. Balance sheet components Accounts receivable, net Accounts receivable, net consists of the following (in thousands): June 30, 2016 December 31, 2015 Accounts receivable $ $ Trade notes receivable Allowance for doubtful accounts $ $ Inventories, net Inventories, net consist of the following (in thousands): June 30, 2016 December 31, 2015 Raw materials $ $ Work in process Finished goods (1) $ $ (1) Finished goods inventory at customer vendor managed inventory locations was $6.1 million and $14.2 million as of June 30, 2016 and December 31, 2015, respectively. Purchased intangible assets Purchased intangible assets consist of the following (in thousands): June 30, 2016 December 31, 2015 Gross Accumulated Net Gross Accumulated Net Assets Amortization Assets Assets Amortization Assets Technology and patents $ $ $ $ $ $ Customer relationships Leasehold interest $ $ $ $ $ $ Amortization expense relating to technology and patents and the leasehold interest intangible assets is included within cost of goods sold and customer relationships within operating expenses. The following table presents details of the amortization expense of the Company’s purchased intangible assets as reported in the condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Cost of goods sold $ $ $ $ Operating expenses Total $ $ $ $ The estimated future amortization expense of purchased intangible assets as of June 30, 2016, is as follows (in thousands): 2016 (remaining six months) $ 2017 2018 2019 2020 Thereafter $ Accrued and other current liabilities Accrued and other current liabilities consist of the following (in thousands): June 30, 2016 December 31, 2015 Employee-related $ $ Income and other taxes payable Accrued warranty Penalty payment derivative Other accrued expenses $ $ Warranty Accrual The table below summarizes the movement in the warranty accrual , which is included in accrued and other current liabilities (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Beginning balance $ $ $ $ Warranty accruals Settlements Ending balance $ $ $ $ Other noncurrent liabilities Other noncurrent liabilities consist of the following (in thousands): June 30, 2016 December 31, 2015 Pension and other employee-related $ $ Deferred income tax liabilities Other $ $

Restructuring

Restructuring	6 Months Ended
	Jun. 30, 2016
Restructuring
Restructuring	Note 7. Restructuring In 2014, the Company initiated a restructuring plan (the “2014 Restructuring Plan”) to refocus on its strategy execution, optimize its structure, and improve operational efficiencies. The 2014 Restructuring Plan consisted of workforce reductions primarily in the U.S. and in China. Restructuring ch arges recorded in the three and six months ended June 30, 2015 were immaterial and were included within operating expenses. The remaining restructuring liability was paid through October 2015. There were no restructuring liabilities as of June 30, 2016 or December 31, 2015.

Debt

Debt	6 Months Ended
	Jun. 30, 2016
Debt
Debt	Note 8. Debt The table below summarizes the carrying amount and weighted average interest rate of the Company’s debt (in thousands, except percentages): June 30, 2016 December 31, 2015 Carrying Interest Carrying Interest Amount Rate Amount Rate Notes payable $ — $ — Bank borrowings-Comerica Bank % % Total notes payable and short-term borrowing $ $ Long-term debt, current and non-current: Bank borrowings-Mitsubishi Bank $ % $ % Total long-term debt, current and non-current $ $ Unaccreted discount within current portion of long-term debt Unaccreted discount within long-term debt, net of current portion Total long-term debt, net of unaccreted discount $ $ Reported as: Current portion of long-term debt $ $ Long-term debt, net of current portion Total long-term debt, net of unaccreted discount $ $ Notes payable The Company regularly issues notes payable to its suppliers in China. These notes are supported by non-interest bearing bank acceptance drafts issued under the Company’s existing line of credit facilities and are due three to six months after issuance. As a condition of the notes payable arrangements, the Company is required to keep a compensating balance at the issuing banks that is a percentage of the total notes payable balance until the amounts are settled. In June 2015, the Company’s subsidiary i n China renewed its short-term line of credit facility with a banking institution that expired in June 2016 . Under the agreement, the Company could borrow up to RMB 120.0 million ( $18. 1 million) for short-term loans, which bore interest at varying rates, or up to approximately RMB 171.4 million ( $2 5.8 million) for bank acceptance drafts (with a 30% compensating balance requirement). This short-term line of credit facility was renewed in August 2016 and will expire in July 2019. In September 2015, the Company’s China subsidiary renewed its second short-term line of credit facility with a banking institution, under which the Company can borrow up to RMB 133.0 million ( $20.0 million) for short-term loan or up to approximately RMB 190.0 million ( $28.6 million ) for bank acceptance drafts (with a 30% compensating balance requirement). This line of credit facility expires in September 2016 . In August 2016, the Company’s China subsidiary entered into a third line of credit facility, with a banking institution, that expires in July 2019. Under this line of credit, the Company can borrow up to RMB 30.0 million (approximately $4.5 million) for short-term loans, which bear interest at varying rates, or up to approximately RMB 42.9 million (approximately $6.5 million) for bank acceptance drafts (with a 30% compensating balance requirement). The non-interest bearing bank acceptance drafts issued in connection with the Company’s notes payable to its suppliers in China, under these line of credit facilities, had an outstanding balance of $8.6 million and $8.9 million as of June 30, 2016 and December 31, 2015, respectively. As of June 30, 2016 and December 31, 2015, compensating balances relating to these bank acceptance drafts issued to suppliers and the Company’s subsidiaries totaled $2.6 million and $2.7 million, respectively. Compensating balances are classified as restricted cash on the Company’s condensed consolidated balance sheets. Short-term borrowing In April 2015, the Company repaid the interest and principal of its $5.0 million short-term advance financing agreement, dated October 2014, under one of its China subsidiary’s line of credit facilities. This financing agreement bore interest at 4.02% per annum. In May 2015, the Company repaid the interest and principal of its second $5.0 million short-term advance financing agreement, dated November 2014, under one of its China subsidiary’s line of credit facilities. This financing agreement bore interest at 2.33% per annum and service fees at 1.00% per annum. In September 2015, the Company repaid the interest and principal of its $5.0 million advance financing agreement, dated April 2015, under one of its China subsidiary’s line of credit facilities. This financing agreement bore interest at a six-month LIBOR plus 330 basis points, or approximately 3.71% per annum. Acquisition-related In connection with the purchase consideration to acquire the tunable laser products of EMCORE in January 2015 (See Note 5), the Company issued the EMCORE Note, as amended, of $15.5 million, which had a maturity of two years from the closing of the transaction and an interest rate of 5% per annum for the first year and 13% per annum for the second year. The interest was payable semi-annually in cash. The EMCORE Note was subordinated to the Company’s existing bank debt in the U.S. and was repaid in full in April 2015. Bank borrowings The Company has a credit agreement with Comerica Bank as lead bank in the U.S. (the “Comerica Bank Credit Facility”). The Company amended the Comerica Bank Credit Facility in January 2015 to modify the EBITDA and liquidity covenants and eliminate the need to maintain compensating balances (restricted cash). In March 2015, the Company further amended the Comerica Bank Credit Facility to increase borrowing capacity to $30.0 million. Borrowings under the Comerica Bank Credit Facility bear interest at an interest rate option of a base rate as defined in the agreement plus 1.75% or LIBOR plus 2.75% . Base rate is based on the greater of (a) the effective prime rate, (b) the Federal Funds effective rate plus one percent, and (c) the daily adjusting LIBOR rate plus one percent . The Comerica Bank Credit Facility requires the maintenance of a modified EBITDA and certain liquidity covenants. The credit agreement also restricts the Company’s ability to incur certain additional debt or to engage in specified transactions, restricts the payment of dividends and is secured by substantially all of the Company’s U.S. assets, other than intellectual property assets. As of each of June 30, 2016 and December 31, 2015, the Company was in compliance with the covenants of the credit facility. Amounts borrowed, if any, are due on or before November 2, 2016. As of June 30 , 2016, the rate on the LIBOR option was 3.22% . The outstanding balance under the Comerica Bank Credit Facility of $23.8 million as of June 30, 2016 was repaid in July 2016. As of December 31, 2015, there was $23.8 million outstanding. On February 25, 2015, the Company entered into certain loan agreements and related special agreements with the Bank of Tokyo-Mitsubishi UFJ, Ltd. (the “Mitsubishi Bank”) that provided for (i) a term loan in the aggregate principal amount of 500 million JPY ( $4.2 million) (the “Term Loan A”) and (ii) a term loan in the aggregate principal amount of one billion JPY ( $8.4 million) (the “Term Loan B” and together with the Term Loan A, the “Mitsubishi Bank Loans”). The Mitsubishi Bank Loans are secured by a mortgage on certain real property and buildings owned by our Japanese subsidiary. The full amount of each of the Mitsubishi Bank Loans was drawn on the closing date of February 25, 2015 . Interest on the Mitsubishi Bank Loans accrues and is paid monthly based upon the annual rate of the monthly Tokyo Interbank Offer Rate (TIBOR) plus 1.40% . The Term Loan A requires interest only payments until the maturity date of February 23, 2018 , with a lump sum payment of the aggregate principal amount on the maturity date. The Term Loan B requires equal monthly payments of principal equal to 8,333,000 JPY until the maturity date of February 25, 2025 , with a lump sum payment of the balance of 8,373,000 JPY on the maturity date. Interest on the Term Loan B is accrued based upon monthly TIBOR plus 1.40% and is secured by real estate collateral. In conjunction with the execution of the Bank Loans, the Company paid a loan structuring fee, including consumption tax, of 40,500,000 JPY ( $0.3 million) . The Mitsubishi Bank Loans contain customary representations and warranties and customary affirmative and negative covenants applicable to the Company’s Japanese subsidiary, including, among other things, restrictions on cessation in business, management, mergers or acquisitions. The Mitsubishi Bank Loans contain financial covenants relating to minimum net assets, maximum ordinary loss and a dividends covenant. The Mitsubishi Bank Loans also include customary events of default, including but not limited to the nonpayment of principal or interest, violations of covenants, restraint on business, dissolution, bankruptcy, attachment and misrepresentations. In February 2015, the Company used a portion of the proceeds of the Mitsubishi Bank Loans to repay the then-outstanding loan related to the acquisition of NeoPhotonics Semiconductor, which had an outstanding principal and interest amount of approximately 710 million JPY ( $6.0 million) and the remaining proceeds will be used for general working capital. Outstanding principal balance under the Mitsubishi Bank Loans was approximately 1.3 billion JPY (approximately $13.1 million), net of unamortized debt issuance costs of 25.8 million JPY (approximately $0.3 million), as of June 30, 2016 and 1.4 billion JPY (approximately $11.5 million), net of unamortized debt issuance costs of 30.1 million JPY (approximately $0.3 million) as of December 31, 2015. The Company was in compliance with the related covenants. At June 30, 2016, maturities of long-term debt were as follows (in thousands): 2016 (remaining six months) $ 2017 2018 2019 2020 Thereafter $

Japan pension plans

Japan pension plans	6 Months Ended
	Jun. 30, 2016
Japan pension plans
Japan pension plans	Note 9 . Japan pension plans In connection with its acquisition of NeoPhotonics Semiconductor on March 29, 2013 from LAPIS Semiconductor Co., Ltd. (“LAPIS”), the Company assumed responsibility for two defined benefit plans that provide retirement benefits to its NeoPhotonics Semiconductor employees in Japan: the Retirement Allowance Plan (“RAP”) and the Defined Benefit Corporate Pension Plan (“DBCPP”). The RAP is an unfunded plan administered by the Company. Effective February 28, 2014, the DBCPP was converted to a defined contribution plan (“DCP”). In May 2014, in accordance with the acquisition agreements, the seller transferred approximately $2.0 million into the newly formed DCP which is the allowable amount that can be transferred according to the Japanese regulations. LAPIS also paid the Company approximately $0.3 million in connection with the conversion of the plan. Additionally, the Company transferred the net unfunded projected benefit obligation amount from the DBCPP to the RAP and froze the RAP benefit at the February 28, 2014 amount. The pension liability at June 30, 2016 and December 31, 2015 was $5.7 million and $5.1 million, respectively, of which $0.3 million and $0.1 million, respectively, was recorded in accrued and other current liabilities and the remainder in other noncurrent liabilities on the Company’s condensed consolidated balance sheet. As the Company transitioned the DBCPP to the DCP effective February 2014, no further contributions to the DBCPP are required. Net periodic pension cost associated with these plans was immaterial in the three and six months ended June 30, 2016 and 2015.

Commitments and contingencies

Commitments and contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Note 10. Commitments and contingencies Litigation From time to time, the Company is subject to various claims and legal proceedings, either asserted or unasserted, that arise in the ordinary course of business. The Company accrues for legal contingencies if the Company can estimate the potential liability and if the Company believes it is probable that the case will be ruled against it. If a legal claim for which the Company did not accrue is resolved against it, the Company would record the expense in the period in which the ruling was made. The Company believes that the likelihood of an ultimate amount of liability, if any, for any pending claims of any type (alone or combined) that will materially affect the Company’s financial position, results of operations or cash flows is remote. The ultimate outcome of any litigation is uncertain, however, and unfavorable outcomes could have a material negative impact on the Company’s financial condition and operating results. Regardless of outcome, litigation can have an adverse impact on the Company because of defense costs, negative publicity, diversion of management resources and other factors. On January 5, 2010, Finisar Corporation, or Finisar, filed a complaint in the U.S. District Court for the Northern District of California, or the Court, against Source Photonics, Inc., MRV Communications, Inc., Oplink Communications, Inc. and the Company, or collectively, the co-defendants. In the complaint Finisar alleged infringement of certain of its U.S. patents. In 2010 the Company filed an answer to the complaint and counterclaims, asserting two claims of patent infringement and additional claims. The Court dismissed without prejudice all co-defendants (including the Company) except Source Photonics, Inc., on grounds that such claims should have been asserted in four separate lawsuits, one against each defendant. This dismissal does not prevent Finisar from bringing a new similar lawsuit against the Company. In 2011 the Company and Finisar agreed to suspend their respective claims and in 2012 the Company and Finisar further agreed to toll their respective claims. While there has been no action on this matter since 2012, the Company is currently unable to predict the outcome of this dispute and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. On January 2, 2013, the Company was served with a lawsuit, filed in Belgium by a distributor called Laser 2000 Beneluo SA (“Laser 2000”) claiming unpaid commissions. The distributor agreement was formally terminated as of January 3, 2012. The Company paid $492,000 to Laser 2000 as partial settlement of claims and to avoid penalties from the Belgian Court and submitted a legal brief to court on September 16, 2013. Laser 2000 filed a response on December 16, 2013 and the Company filed the final rebuttal brief on January 30, 2014. On March 23, 2015, the Belgian Court issued a ruling awarding Laser 2000 approximately one million euros in damages (approximately $1,100,000 at current exchange rates). The Company was served with the judgment on September 28, 2015. The Company is appealing this verdict, but is unable to predict the duration or outcome of the appeal or the overall lawsuit at this time. The Company does not believe it will ultimately be liable for the full amount of damage; however, in light of developments in the case, the Company increased its accrual for estimated probable net litigation expense relating to this matter in March 2015. There was no change in such accrual subsequent to March 2015. Indemnifications In the normal course of business, the Company enters into agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. As of June 30, 2016 , the Company did not have any material indemnification claims that were probable or reasonably possible. Leases The Company leases various facilities under non-cancelable operating leases expiring through 2023. In the three months ended June 30, 2016, the Company renewed one of its leases for its facility in Fremont, California. As of June 30, 2016 , future minimum payments under these operating leases totaled $8.0 million and future minimum sublease receipts was approximately $1.2 million. Rent expense was $0.5 million and $1.1 million in the three and six months ended June 30, 2016 , respectively, and $0.6 million and $1.1 million in the three and six months ended June 30, 2015, respectively . Penalty Payment Derivative In connection with a private placement transaction with Joint Stock Company “Rusnano” (formerly Open Joint Stock Company “RUSNANO” ), or Rusnano, or in 2012, the Company agreed to certain performance obligations including establishing a wholly-owned subsidiary in Russia and making a $30.0 million investment commitment (the ‘Investment Commitment’) towards the Company’s Russian operations, which could be partially satisfied by cash and/or non-cash investment inside or outside of Russia and/or by way of non-cash asset transfers. In March 2015, the Company extended the Investment Commitment deadline to June 30, 2015 and then further amended the Investment Commitment in July 2015. The latter amendment, or the Rights Agreement, became effective on June 30, 2015 and provides that the maximum amount of penalties, or the Penalty Payment, to be paid by the Company will not exceed $5.0 million in the aggregate. In addition, the amendment also provides for an updated investment plan for the Company’s Russian subsidiaries that includes non-cash transfer of licensing rights to intellectual property, non-cash transfers of existing equipment and commitments to complete the remaining investment milestones through fiscal year 2019. The Company fulfilled its investment commitment required by 2015 and had contributed over $15.4 million in cash and assets to its subsidiaries in Russia as of December 31, 2015. Although the Company met its investment commitment for 2015, certain required equipment was delivered but not fully installed and operational as of the required date to fulfill certain manufacturing milestones under the Rights Agreement. The Company has remediated these issues and, in August 2016, entered into the second amendment to the Rights Agreement with Rusnano (the “Amended Rights Agreement”) to address this matter. The amendment extended the foregoing manufacturing deadlines to June 30, 2016 and confirmed that the Company had completed these milestones as of June 30, 2016. Therefore, the Company will not be held liable for the $5.0 million Penalty Payment as of each of December 31, 2015 and June 30, 2016. In the event the Company’s cumulative investment and spending contributed to its subsidiaries in Russia is less than $18.8 million by December 31, 2016, the Company will be subject to a $1.5 million penalty within 30 days after the end of a 90 -day cure period. If certain of the Investment Commitments are not achieved in the indicated time frames in 2016 and 2019, the Company also has the ability to cease the operations of its Russian subsidiaries by paying exit fees of $3.5 million or $2.0 million at the end of 2016 or 2019, respectively . In August 2016, the Company entered into a letter of agreement with Rusnano to agree to transfer a product line and incur expected costs of approximately $0.1 million by July 30, 2017. The purchaser of the common stock has non-transferable veto rights over the Company’s Russian subsidiaries’ annual budget during the investment period and must approve non-cash asset transfers to be made in satisfaction of the Investment Commitment. Spending and/or commitments to spend for general working capital and research and development do not require approval by the purchaser. There are no legal restrictions on the specific usage of the $39.8 million received in the private placement transaction or on withdrawal from the Company’s bank accounts for use in general corporate purposes. The Company accounted for the Penalty Payment as an embedded derivative instrument, with the underlying being the performance or nonperformance of meeting the Investment Commitment and initially classified $4.9 million of the $5.0 million as additional paid-in capital and the remaining $0.1 million, representing the estimated fair value of the Penalty Payment derivative, in other noncurrent liabilities. The fair value of the Penalty Payment derivative has been estimated at the date of the original common stock sale (April 27, 2012) and at each subsequent balance sheet date using a probability-weighted discounted future cash flow approach using unobservable inputs, which are classified as Level 3 within the fair value hierarchy. The primary inputs for this approach include the probability of achieving the Investment Commitment and a discount rate that approximates the Company’s incremental borrowing rate. After the initial measurement, changes in the fair value of this derivative were recorded in other expense, net. The estimated fair value of this derivative, after taking into consideration the non-compliance regarding the manufacturing milestone and the Amended Rights Agreement, was $0.4 million as of each of June 30, 2016 and December 31, 2015, and reported within accrued and other current liabilities on the Company’s condensed consolidated balance sheets. Separately, in December 2014, the Company entered into a Commitment to File a Registration Statement and Related Waiver of Registration Rights, whereby Rusnano waived certain registration rights in connection with a potential offering by the Company of shares of the Company’s common stock, and the Company committed to file with the U.S. Securities and Exchange Commission a resale registration statement on Form S-1 covering the resale of all shares of the Company’s common stock held by Rusnano, or the 2015 Registration Statement. The Company filed the 2015 Registration Statement in April 2015 (See Note 11). Rusnano also waived its demand registration rights under the original rights agreement and agreed to enter into a lock up agreement with the Company whereby it would agree not to sell any shares of the Company’s common stock, or engage in certain other transactions relating to the Company’s securities, for a period of 60 days from the filing date of the 2015 Registration Statement. Rusnano signed such lock up agreement with the Company on April 2, 2015. In addition, in connection with the Company’s public stock offering completed in the second quarter of 2015, or the 2015 Follow-On Offering, Rusnano entered into a separate lock up agreement with Needham & Company, LLC, the lead underwriter of the 2015 Follow-On Offering, whereby it agreed not to sell any shares of the Company’s common stock, or engage in certain other transactions relating to the Company’s securities, for a period of 180 days from May 21, 2015. Such lock up agreement expired in November 2015.

Stockholders' equity

Stockholders' equity	6 Months Ended
	Jun. 30, 2016
Stockholders’ Equity
Stockholders’ Equity	Note 11. Stockholders’ equity Common Stock As of June 30, 2016, the Company had reserved 7,783,305 common stock shares for issuance under its stock option plans and 776,613 common stock shares for issuance under its employee stock purchase plan. Resale Registration Statement In April 2015, the Company filed the 2015 Registration Statement, which registered 4,972,905 shares of the Company’s common stock, at a par value of $0.0025 per share, held by Rusnano. The Company does not receive any proceeds from any sales of the Company’s common stock held by Rusnano (See Note 10). Follow-On Public Offering In the second quarter of 2015, the Company completed the 2015 Follow-On Offering, in which the Company sold 6,866,689 shares of its common stock, including 895,655 shares of common stock sold upon the exercise in full of the overallotment option by the underwriters, at a public offering price of $7.25 per share. The Company raised approximately $45.6 million, net of underwriting discounts of $3.0 million and other offering expenses of approximately $1.2 million. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of related taxes, were as follows (in thousands): Foreign Currency Translation Adjustments Unrealized (loss) Gain on Available-For-Sale Securities Defined Benefit Pension Plan Adjustment Total Accumulated Other Comprehensive Loss Balance at December 31, 2015 $ $ $ $ Other comprehensive income, net of taxes of zero and reclassifications — Balance at June 30, 2016 $ $ $ $ No material amounts were reclassified out of accumulated other comprehensive income during the three and six months ended June 30, 2016 and 2015 for realized gains or losses on available-for-sale securities. Accumulated Deficit Approximately $7.9 million of the Company’s retained earnings within its total accumulated deficit at December 31, 2015 was subject to restriction due to the fact that the Company’s subsidiaries in China are required to set aside at least 10% of their respective accumulated profits each year end to fund statutory common reserves as well as allocate a discretional portion of their after-tax profits to their staff welfare and bonus fund.

Stock-based compensation

Stock-based compensation	6 Months Ended
	Jun. 30, 2016
Stock-based compensation
Stock-based compensation	Note 12. Stock-based compensation The following table summarizes the stock-based compensation expense recognized in the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Cost of goods sold $ $ $ $ Research and development Sales and marketing General and administrative $ $ $ $ Determining Fair Value The Company estimated the fair value of certain stock-based awards using a Black-Scholes-Merton valuation model or a binomial lattice model with the following assumptions: Three Months Ended June 30, Six Months Ended June 30, Stock options 2016 2015 2016 2015 Weighted-average expected term (years) 5.3 5.6 5.2 5.4 Weighted-average volatility 63% 64% 63% 64% Risk-free interest rate 1.21% - 1.38% 1.37% – 1.54% 1.21% -1.76% 1.37% – 1.65% Expected dividends — % — % — % — % Stock appreciation units Weighted-average expected term (years) 2.84 3.60 2.94 3.70 Weighted-average volatility 62% 62% 62% 63% Risk-free interest rate 0.59% -0.95% 0.26% – 1.24% 0.59% -1.47% 0.25% – 1.57% Expected dividends — % — % — % — % ESPP Weighted-average expected term (years) 0.70 0.50 0.70 0.50 Weighted-average volatility 70% 59% 70% 59% Risk-free interest rate 0.08% -0.39% 0.14% 0.08% -0.39% 0.14% Expected dividends — % — % — % — % Stock Options and Restricted Stock Units (RSUs) The following table summarizes the Company’s stock option and RSU activity during the six months ended June 30, 2016 : Stock Options Restricted Stock Units Weighted Weighted Average Average Number of Exercise Number of Grant Date Shares Price Units Fair Value Balance at December 31, 2015 $ $ Granted Exercised/Converted Cancelled/Forfeited Balance at June 30, 2016 $ $ Stock appreciation units (“SAUs”) SAUs are liability classified share-based awards. The Company did not grant any SAUs during the three and six months ended June 30, 2016 or 2015. As of June 30, 2016 and December 31, 2015, there were 32 1 , 196 and 342,316 SAUs outstanding. Outstanding SAUs are re-measured each reporting period at fair value. Employee Stock Purchase Plan (“ESPP”) As of June 30, 2016, there was $0.2 million of unrecognized stock-based compensation expense for employee stock purchase rights that will be recognized over the remaining offering period through November 2016.

Income taxes

Income taxes	6 Months Ended
	Jun. 30, 2016
Income taxes
Income taxes	Note 13. Income taxes The provision for income taxes in the periods presented is based upon the income (loss) before income taxes: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Provision for income taxes $ $ $ $ The Company’s income tax provision in the three and six months ended June 30, 2016 and 2015 was primarily related to income taxes of the Company’s non-U.S. operations. The Company conducts its business globally and its operating income is subject to varying rates of tax in the U.S., China and Japan. Consequently, the Company’s effective tax rate is dependent upon the geographic distribution of its earnings or losses and the tax laws and regulations in each geographical region. Historically, the Company has experienced net losses in the U.S. and in the short term, expects this trend to continue. One of the Company’s subsidiaries in China has historically qualified for a preferential 15% tax rate available for high technology enterprises as opposed to the statutory 25% tax rate. The preferential tax rate is subject to renewal for periods after 2016. Due to historic losses in the U.S., the Company has a full valuation allowance on its U.S. federal and state deferred tax assets. Management continues to evaluate the realizability of deferred tax assets and the related valuation allowance. If management's assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income during the period in which management makes the determination. As of June 30, 2016, there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended December 31, 2015.

Subsequent event

Subsequent event	6 Months Ended
	Jun. 30, 2016
Subsequent Event
Subsequent event	Note 14. Subsequent event Subsequent event, through the filing of this report, included the following: Repayment of Comerica Credit Facility In July 2016, the Company repaid the outstanding balance under its Comerica Bank Credit Facility, which was $23.8 million as of June 30, 2016.

Basis of presentation and sig22

Basis of presentation and significant accounting policies (Policies)	6 Months Ended
	Jun. 30, 2016
Basis of presentation and significant accounting policies
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The condensed consolidated financial statements of NeoPhotonics Corporation (“NeoPhotonics” or the “Company”) as of June 30, 2016 and for the three and six months ended June 30, 2016 and 2015, have been prepared in accordance with the instructions on Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In accordance with those rules and regulations, the Company has omitted certain information and notes normally provided in the Company’s annual consolidated financial statements. In the opinion of management, the condensed consolidated financial statements contain all adjustments, consisting only of normal recurring items, except as otherwise noted, necessary for the fair presentation of the Company’s financial position and results of operations for the interim periods. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”). 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 for the fiscal year ended December 31, 2015. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results expected for the entire fiscal year. All intercompany accounts and transactions have been eliminated. Certain Significant Risks and Uncertainties The Company operates in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, any of the following areas could have a negative effect on the Company in terms of its future financial position, results of operations or cash flows: the general state of the U.S., China and world economies; the highly cyclical nature of the industries the Company serves; the loss of any of a small number of its larger customers; ability to obtain additional financing; inability to meet certain debt covenants; failure to successfully integrate completed acquisitions; fundamental changes in the technology underlying the Company’s products; the hiring, training and retention of key employees; successful and timely completion of product design efforts; and new product design introductions by competitors.
Reclassification	Reclassification Reclassification has been made to combine the deferred income tax liabilities amount into the other noncurrent liabilities in the prior year to conform to the current year’s presentation.
Concentration	Concentration In the three months ended June 30, 2016, Huawei Technologies Co. Ltd. and their affiliate HiSilicon Technologies (together with Huawei Technologies Co. Ltd., “Huawei”) and Ciena Corporation (“Ciena”) accounted for approximately 45% and 16% of the Company’s total revenue, respectively, and the Company’s top ten customers represented approximately 91% of the Company’s total revenue. In the three months ended June 30, 2015, Huawei, Ciena and Nokia Corporation each accounted for approximately 40% , 22% and 11% of the Company’s total revenue, respectively, and the Company’s top ten customers represented approximately 91% of the Company’s total revenue. In the six months ended June 30, 2016, Huawei and Ciena each accounted for approximately 49% and 16% of the Company’s total revenue, respectively, and the top ten customers represented approximately 91% of its total revenue. In the six months ended June 30, 2015, Huawei and Ciena accounted for approximately 40% and 23% of the Company’s total revenue, respectively, and the Company’s top ten customers represented approximately 90% of its total revenue. As of June 30, 2016 and December 31, 2015, one customer accounted for approximately 45% and 59% , respectively, of the Company’s total accounts receivable.
Use of estimates	Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenue and expenses during the reporting period. Significant estimates made by management include: the useful lives of property, plant and equipment and intangible assets as well as future cash flows to be generated by those assets; fair values of identifiable assets acquired and liabilities assumed in business combinations; allowances for doubtful accounts; valuation allowances for deferred tax assets; valuation of excess and obsolete inventories; warranty reserves; litigation accrual and recognition of stock-based compensation, among others. Actual results could differ from these estimates.
Recent accounting pronouncements	Recent accounting pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 amends existing guidance on the impairment of financial assets and adds an impairment model that is based on expected losses rather than incurred losses. Under this guidance, an entity recognizes as an allowance its estimate of expected credit losses for its financial assets. An entity will apply this guidance through a cumulative-effect adjustment to retained earnings upon adoption (a modified-retrospective approach) while a prospective transition approach is required for debt securities for which an other-than-temporary impairment had been recognized before the effective date. ASU 2016-13 is effective for the Company’s annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for the Company’s annual and interim reporting periods beginning after December 15, 2016. Early adoption is permitted. A retrospective transition method is required for the changes related to the recognition timing of excess tax benefits, minimum statutory withholding requirements, forfeitures and intrinsic value. A retrospective transition method is required for changes related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement. A prospective transition method is required for the recognition of excess tax benefits and tax deficiencies in the income statement for estimating expected term. Changes related to the presentation of excess tax benefits on the statement of cash flows can be applied using either a prospective transition method or a retrospective transition method. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 introduces a lessee model that requires recognition of assets and liabilities arising from qualified leases on the consolidated balance sheets and consolidated statements of operations and to disclose qualitative and quantitative information about lease transactions. This guidance is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. A modified retrospective transition is required with certain optional practical expedients allowed. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. A modified retrospective transition method is required except for the equity securities without readily determinable fair values which will require a prospective transition method. ASU 2016-01 is effective for the Company’s annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted for certain provisions. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 requires entities to measure most inventory “at the lower of cost and net realizable value” but does not apply to inventories that are measured by using either the last-in, first-out method or the retail inventory method. For the Company, this ASU is effective for annual and interim periods beginning after December 15, 2016. Prospective transition method is required and e a rly adoption is permitted. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements. In May 2014, the FASB issued ASU N o. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. In August 2015, the FASB issued an accounting standard update for a one-year deferral of the effective date of ASU 2014-09 to annual and interim periods beginning after December 15, 2017 and permits entities to early adopt the standard of ASU 2014-09 for annual and interim reporting periods beginning after December 15, 2016. Companies are permitted to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”), which amends the principal-versus-agent implementation guidance in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606: Identifying performance obligations and Licensing amending certain aspects of ASU 2014-09 on (1) identifying performance obligations and (2) licensing. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients amending certain aspects of ASU 2016-09 including collectability, presentation of sales tax and other similar taxes collected from customers, noncash transaction, contract modifications and completed contracts at transition and the disclosure requirements for entities that use the full retrospective transition method. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements.

Net income per share (Tables)

Net income per share (Tables)	6 Months Ended
	Jun. 30, 2016
Net income per share
Computation of Basic and Diluted Net Income 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 Six Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator: Net income $ $ $ $ Denominator: Weighted average shares used to compute per share amount: Basic Dilutive effect of equity awards Diluted Basic net income per share $ $ $ $ Diluted net income per share $ $ $ $
Potentially Dilutive Securities Excluded from Computation of Diluted Net Income per Share Attributable to Common Stockholders	The Company has excluded the impact of the following employee stock options, restricted stock units and shares expected to be issued under its employee stock purchase plan from the computation of diluted net income per share, as their effect would have been antidilutive (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Employee stock options Restricted stock units — Employee stock purchase plan — — —

Cash, cash equivalents, short24

Cash, cash equivalents, short-term investments, and restricted cash and investments (Tables)	6 Months Ended
	Jun. 30, 2016
Restricted Cash and Investment
Summary of Cash, Cash Equivalents and Short-Term investments and Restricted Cash and Investments	The following table summarizes the Company’s cash, cash equivalents, short-term investments, and restricted cash at June 30, 2016 and December 31, 2015 (in thousands): June 30, December 31, 2016 2015 Cash and cash equivalents: Cash $ $ Cash equivalents Cash and cash equivalents $ $ Short-term investments $ $ Restricted cash $ $
Summary of Unrealized Gains and Losses Related to Cash Equivalents and Investments in Marketable Securities	The following table summarizes the Company’s unrealized gains and losses related to its cash equivalents and short-term investments in marketable securities designated as available-for-sale (in thousands): As of June 30, 2016 As of December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Marketable securities: Money market accounts $ $ — $ — $ $ $ — $ — $ Money market funds — — — — Corporate bonds — Government-sponsored enterprise obligations — — Commercial paper — — — — U.S. government securities — — Sovereign government bonds — — Total $ $ $ $ $ $ — $ $ Reported as: Cash equivalents $ $ — $ — $ $ $ — $ — $ Short-term investments — Total $ $ $ $ $ $ — $ $
Maturities of Marketable Securities	As of June 30, 2016 and December 31, 2015, maturities of marketable securities were as follows (in thousands): June 30, December 31, 2016 2015 Less than 1 year $ $ Due in 1 to 2 years Due after 5 years — — Total $ $

Fair value disclosures (Tables)

Fair value disclosures (Tables)	6 Months Ended
	Jun. 30, 2016
Fair value disclosures
Fair Value of Financial Assets	The following table presents the Company's assets that are measured at fair value on a recurring basis (in thousands): As of June 30, 2016 As of December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents and short-term investments: Money market funds $ $ — $ — $ $ $ — $ — $ U.S. government securities — — — — Money market accounts — — — — Corporate bonds — — — — Government-sponsored enterprise obligations — — — — Commercial papers — — — — Sovereign government bonds — — — — Total $ $ $ — $ $ $ $ — $ Mutual funds held in Rabbi Trust, recorded in other long-term assets $ $ — $ — $ $ $ — $ — $
Fair Value of Financial Liabilities	The following table presents the Company's liabilities that are measured at fair value on a recurring basis (in thousands): As of June 30, 2016 As of December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Penalty payment derivative (Note 10) $ — $ — $ $ $ — $ — $ $

Business combination (Tables)

Business combination (Tables)	6 Months Ended
	Jun. 30, 2016
Business combination
Summary of Purchase Accounting and Tangible and Intangible Assets Acquired and Liabilities Assumed	The following table summarizes the allocation of the assets acquired and liabilities assumed from EMCORE as of the acquisition date and subsequent adjustments (in thousands): Total purchase consideration: Cash paid $ Notes payable Total $ Fair value of assets acquired: Accounts receivable $ Inventories Prepaid expenses and other current assets Property, plant and equipment Intangible assets acquired: Developed technology Customer relationships Total $ Less: fair value of liabilities assumed: Accounts payable $ Accrued liabilities Total $ Goodwill $
Purchase Price Allocation of Intangible Assets	The following table presents details of the purchase price allocated to the acquired intangible assets at the acquisition date: Useful Purchased Life intangible assets (In years) (In thousands) Developed technology 7 $ Customer relationships 2 Total purchased intangible assets $
Pro forma Information for Business Acquisition	The unaudited pro forma results do not assume any operating efficiencies as a result of the consolidation of operations (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Revenue $ $ $ $ Net income $ $ $ $ Basic net income per share $ $ $ $ Diluted net income per share $ $ $ $

Balance sheet components (Table

Balance sheet components (Tables)	6 Months Ended
	Jun. 30, 2016
Balance Sheet Components [Abstract]
Accounts Receivable, Net	Accounts receivable, net consists of the following (in thousands): June 30, 2016 December 31, 2015 Accounts receivable $ $ Trade notes receivable Allowance for doubtful accounts $ $
Inventories, net	Inventories, net consist of the following (in thousands): June 30, 2016 December 31, 2015 Raw materials $ $ Work in process Finished goods (1) $ $ (1) Finished goods inventory at customer vendor managed inventory locations was $6.1 million and $14.2 million as of June 30, 2016 and December 31, 2015, respectively.
Purchased Intangible Assets	Purchased intangible assets consist of the following (in thousands): June 30, 2016 December 31, 2015 Gross Accumulated Net Gross Accumulated Net Assets Amortization Assets Assets Amortization Assets Technology and patents $ $ $ $ $ $ Customer relationships Leasehold interest $ $ $ $ $ $
Amortization Expense of Purchased Intangible Assets	The following table presents details of the amortization expense of the Company’s purchased intangible assets as reported in the condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Cost of goods sold $ $ $ $ Operating expenses Total $ $ $ $
Estimated Future Amortization Expense of Purchased Intangible Assets	The estimated future amortization expense of purchased intangible assets as of June 30, 2016, is as follows (in thousands): 2016 (remaining six months) $ 2017 2018 2019 2020 Thereafter $
Accrued Expenses and Other Current Liabilities	Accrued and other current liabilities consist of the following (in thousands): June 30, 2016 December 31, 2015 Employee-related $ $ Income and other taxes payable Accrued warranty Penalty payment derivative Other accrued expenses $ $
Summary of Movement in Warranty Accrual	The table below summarizes the movement in the warranty accrual , which is included in accrued and other current liabilities (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Beginning balance $ $ $ $ Warranty accruals Settlements Ending balance $ $ $ $
Other Noncurrent Liabilities	Other noncurrent liabilities consist of the following (in thousands): June 30, 2016 December 31, 2015 Pension and other employee-related $ $ Deferred income tax liabilities Other $ $

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2016
Debt
Components of Debt, Obligations, Weighted Average Interest Rate and Additional Fair Value Information Relating to Outstanding Debt Instruments	The table below summarizes the carrying amount and weighted average interest rate of the Company’s debt (in thousands, except percentages): June 30, 2016 December 31, 2015 Carrying Interest Carrying Interest Amount Rate Amount Rate Notes payable $ — $ — Bank borrowings-Comerica Bank % % Total notes payable and short-term borrowing $ $ Long-term debt, current and non-current: Bank borrowings-Mitsubishi Bank $ % $ % Total long-term debt, current and non-current $ $ Unaccreted discount within current portion of long-term debt Unaccreted discount within long-term debt, net of current portion Total long-term debt, net of unaccreted discount $ $ Reported as: Current portion of long-term debt $ $ Long-term debt, net of current portion Total long-term debt, net of unaccreted discount $ $
Maturities of Long-term Debt	At June 30, 2016, maturities of long-term debt were as follows (in thousands): 2016 (remaining six months) $ 2017 2018 2019 2020 Thereafter $

Stockholders' equity (Tables)

Stockholders' equity (Tables)	6 Months Ended
	Jun. 30, 2016
Stockholders’ Equity
Schedule of Accumulated Other Comprehensive Income, Net of Related Taxes	The components of accumulated other comprehensive loss, net of related taxes, were as follows (in thousands): Foreign Currency Translation Adjustments Unrealized (loss) Gain on Available-For-Sale Securities Defined Benefit Pension Plan Adjustment Total Accumulated Other Comprehensive Loss Balance at December 31, 2015 $ $ $ $ Other comprehensive income, net of taxes of zero and reclassifications — Balance at June 30, 2016 $ $ $ $

Stock-based compensation (Table

Stock-based compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Stock-based compensation
Summary of Stock Based Compensation Expense	The following table summarizes the stock-based compensation expense recognized in the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Cost of goods sold $ $ $ $ Research and development Sales and marketing General and administrative $ $ $ $
Estimated Fair Value of Certain Stock-Based Awards Using Black-Scholes-Merton Valuation Model	The Company estimated the fair value of certain stock-based awards using a Black-Scholes-Merton valuation model or a binomial lattice model with the following assumptions: Three Months Ended June 30, Six Months Ended June 30, Stock options 2016 2015 2016 2015 Weighted-average expected term (years) 5.3 5.6 5.2 5.4 Weighted-average volatility 63% 64% 63% 64% Risk-free interest rate 1.21% - 1.38% 1.37% – 1.54% 1.21% -1.76% 1.37% – 1.65% Expected dividends — % — % — % — % Stock appreciation units Weighted-average expected term (years) 2.84 3.60 2.94 3.70 Weighted-average volatility 62% 62% 62% 63% Risk-free interest rate 0.59% -0.95% 0.26% – 1.24% 0.59% -1.47% 0.25% – 1.57% Expected dividends — % — % — % — % ESPP Weighted-average expected term (years) 0.70 0.50 0.70 0.50 Weighted-average volatility 70% 59% 70% 59% Risk-free interest rate 0.08% -0.39% 0.14% 0.08% -0.39% 0.14% Expected dividends — % — % — % — %
Summary of Stock Option and Restricted Stock Unit Activity	The following table summarizes the Company’s stock option and RSU activity during the six months ended June 30, 2016 : Stock Options Restricted Stock Units Weighted Weighted Average Average Number of Exercise Number of Grant Date Shares Price Units Fair Value Balance at December 31, 2015 $ $ Granted Exercised/Converted Cancelled/Forfeited Balance at June 30, 2016 $ $

Income taxes (Tables)

Income taxes (Tables)	6 Months Ended
	Jun. 30, 2016
Income taxes
Components of Provision for Income Taxes	The provision for income taxes in the periods presented is based upon the income (loss) before income taxes: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Provision for income taxes $ $ $ $

Basis of Presentation and Sig32

Basis of Presentation and Significant Accounting Policies - Additional Information (Details) - customer	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Huawei Technologies [Member] | Revenue [Member]
Concentration Risk [Line Items]
Percentage of concentration of credit risk	45.00%	40.00%	49.00%	40.00%
Ciena Corporation [Member] | Revenue [Member]
Concentration Risk [Line Items]
Percentage of concentration of credit risk	16.00%	22.00%	16.00%	23.00%
Alcatel-Lucent SA [Member] | Revenue [Member]
Concentration Risk [Line Items]
Percentage of concentration of credit risk		11.00%
Company Top Ten Customers [Member] | Revenue [Member]
Concentration Risk [Line Items]
Percentage of concentration of credit risk	91.00%	91.00%	91.00%	90.00%
Number of customers	10	10	10	10
Customer One [Member] | Accounts Receivable [Member]
Concentration Risk [Line Items]
Percentage of concentration of credit risk			45.00%		59.00%
Number of customers			1		1

Net Income Per Share - Computat

Net Income Per Share - Computation of Basic and Diluted Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Numerator:
Net income	$ 2,676	$ 1,791	$ 4,986	$ 1,891
Denominator:
Basic	41,603	35,684	41,362	34,240
Dilutive effect of equity awards	2,717	1,610	2,680	888
Diluted	44,320	37,294	44,042	35,128
Basic net income per share	$ 0.06	$ 0.05	$ 0.12	$ 0.06
Diluted net income per share	$ 0.06	$ 0.05	$ 0.11	$ 0.05

Net Income Per Share - Potentia

Net Income Per Share - Potentially Dilutive Securities Excluded From Computation of Diluted Net Loss per Share Attributable to Common Stockholders (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities, excluded from computation of diluted net income (loss) per share	508	1,227	526	2,353
Employee Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities, excluded from computation of diluted net income (loss) per share	474	1,227	492	2,316
Restricted stock units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities, excluded from computation of diluted net income (loss) per share	34		34	21
Employee Stock Purchase Plan
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive securities, excluded from computation of diluted net income (loss) per share				16

Summary of Cash, Cash Equivalen

Summary of Cash, Cash Equivalents, Short-Term investments, and Restricted Cash and Investments - Summary of cash, cash equivalents, short-term investments and restricted cash and investments (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Cash and cash equivalents:
Cash	$ 50,518	$ 29,133
Cash equivalents	31,958	46,955
Cash and cash equivalents	82,476	76,088	$ 92,135	$ 43,035
Short-term investments	28,427	23,294
Restricted cash and investments:
Restricted cash and investments, current	$ 2,580	$ 2,660

Summary of Cash, Cash Equival36

Summary of Cash, Cash Equivalents, Short-Term investments, and Restricted Cash and Investments - Summary of unrealized gains and losses (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 60,381	$ 70,278
Gross Unrealized Gains	8
Gross Unrealized Losses	(4)	(29)
Fair Value	60,385	70,249
Money market accounts
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	31,958	46,955
Fair Value	31,958	46,955
Money market funds [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	5,688	11,318
Fair Value	5,688	11,318
Corporate bonds [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	7,687	5,694
Gross Unrealized Gains	3
Gross Unrealized Losses	(4)	(18)
Fair Value	7,686	5,676
Government-sponsored enterprise obligations
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	5,541	3,290
Gross Unrealized Gains	1
Gross Unrealized Losses		(6)
Fair Value	5,542	3,284
Commercial papers
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	6,384	1,398
Fair Value	6,384	1,398
U.S. government securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	2,500	1,000
Gross Unrealized Gains	3
Gross Unrealized Losses		(3)
Fair Value	2,503	997
Sovereign government bonds [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	623	623
Gross Unrealized Gains	1
Gross Unrealized Losses		(2)
Fair Value	624	621
Cash equivalents
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	31,958	46,955
Fair Value	31,958	46,955
Short-term investments [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	28,423	23,323
Gross Unrealized Gains	8
Gross Unrealized Losses	(4)	(29)
Fair Value	$ 28,427	$ 23,294

Summary of Cash, Cash Equival37

Summary of Cash, Cash Equivalents, Short-Term investments, and Restricted Cash and Investments - Maturities of marketable securities and additional information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)item	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)item	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Fair value disclosures
Less than 1 year	$ 57,614		$ 57,614		$ 66,974
Due in 1 to 2 years	2,771		2,771		3,275
Total	60,385		60,385		$ 70,249
Impairment losses on its marketable securities	$ 0	$ 0	$ 0	$ 0
Investments in marketable securities in unrealized loss position in excess of 12 months | item	0		0

Fair value disclosures - Assets

Fair value disclosures - Assets and liabilities measured at fair value on recurring basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	$ 60,385	$ 70,249
Fair Value, Inputs, Level 1 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	8,191	12,315
Fair Value, Inputs, Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	52,194	57,934
Money market funds [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	5,688	11,318
Money market funds [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	5,688	11,318
U.S. government securities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	2,503	997
U.S. government securities | Fair Value, Inputs, Level 1 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	2,503	997
Money market accounts
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	31,958	46,955
Money market accounts | Fair Value, Inputs, Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	31,958	46,955
Corporate bonds [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	7,686	5,676
Corporate bonds [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	7,686	5,676
Government-sponsored enterprise obligations
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	5,542	3,284
Government-sponsored enterprise obligations | Fair Value, Inputs, Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	5,542	3,284
Commercial papers
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	6,384	1,398
Commercial papers | Fair Value, Inputs, Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	6,384	1,398
Sovereign government bonds [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	624	621
Sovereign government bonds [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	624	621
Mutual Funds Held in Rabbi Trust [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	589	435
Mutual Funds Held in Rabbi Trust [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets, fair value	$ 589	$ 435

Fair value disclosures - Liabil

Fair value disclosures - Liabilities measured at fair value on recurring basis (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Penalty payment derivative	$ 400
Fair Value, Measurements, Recurring [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Penalty payment derivative	389	$ 389
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Penalty payment derivative	$ 389	$ 389

Fair value disclosures - Additi

Fair value disclosures - Additional information (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($)	12 Months Ended
	Dec. 31, 2015	Jun. 30, 2016
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Assets Fair Value Disclosure		$ 0
Liabilities measured at fair value		$ 0
Loss on sale of property, plant and equipment	$ 200,000
Write off of assets held-for-sale	$ 200,000

Business Combination (Details)

Business Combination (Details) - USD ($) $ in Thousands	Apr. 16, 2015	Jan. 02, 2015	Jan. 02, 2015	Nov. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Acquisition [Line Items]
Acquisition-related costs					$ 775	$ 147	$ 775	$ 287
Revenue					99,129	85,372	198,274	166,756
Tunable Laser Product Lines From EMCORE Corporation [Member]
Business Acquisition [Line Items]
Total consideration	$ 16,982	$ 17,500
Cash consideration paid		1,500	$ 1,500
Issuance of notes to the seller of acquired business	$ 15,482	$ 16,000
Acquisition-related costs								900
Tunable Laser Product Lines From EMCORE Corporation [Member] | Pro Forma [Member]
Business Acquisition [Line Items]
Acquisition-related costs					0	100	0	300
Revenue					19,000	13,900	38,000	26,200
Tunable Laser Product Lines From EMCORE Corporation [Member] | Intersegment Eliminations [Member] | Pro Forma [Member]
Business Acquisition [Line Items]
Revenue					$ 0	$ 0	$ 0	$ 0
EigenLight Corporation
Business Acquisition [Line Items]
Cash consideration paid				$ 400

Business Combination - Allocati

Business Combination - Allocation of Assets acquired, liabilites assumed and Purchase price (Details) - USD ($) $ in Thousands	Apr. 16, 2015	Jan. 02, 2015	Jan. 02, 2015	Jun. 30, 2016	Dec. 31, 2015
Liabilities assumed:
Goodwill				$ 1,115	$ 1,115
Tunable Laser Product Lines From EMCORE Corporation [Member]
Total purchase consideration:
Cash paid		$ 1,500	$ 1,500
Notes payable	$ 15,482	16,000
Total consideration	$ 16,982	17,500
Fair value of assets acquired:
Accounts receivable		9,274	9,274
Inventories		1,693	1,693
Prepaid expenses and other current assets		670	670
Property, plant and equipment		6,917	6,917
Intangible assets acquired:
Intangible assets acquired				4,800
Fair value of assets acquired		23,354	23,354
Liabilities assumed:
Accounts payable		(7,427)	(7,427)
Accrued liabilities		(60)	(60)
Fair value of liabilities assumed total		(7,487)	(7,487)
Goodwill		1,115	1,115	$ 1,100	$ 1,100
Tunable Laser Product Lines From EMCORE Corporation [Member] | Developed Technology [Member]
Fair value of assets acquired:
Useful Life (in years)				7 years
Intangible assets acquired:
Intangible assets acquired		4,100	4,100	$ 4,100
Tunable Laser Product Lines From EMCORE Corporation [Member] | Customer relationships
Fair value of assets acquired:
Useful Life (in years)				2 years
Intangible assets acquired:
Intangible assets acquired		$ 700	$ 700	$ 700

Business Combination - Pro form

Business Combination - Pro forma results (Details) - Tunable Laser Product Lines From EMCORE Corporation [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items]
Revenue	$ 99,129	$ 85,372	$ 198,274	$ 166,756
Net income (loss)	$ 2,676	$ 1,938	$ 4,986	$ 2,129
Basic net income (loss) per share	$ 0.06	$ 0.05	$ 0.12	$ 0.06
Diluted net income (loss) per share	$ 0.06	$ 0.05	$ 0.11	$ 0.06

Balance sheet components - Acco

Balance sheet components - Accounts Receivable, net (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounts receivable, net
Accounts receivable	$ 84,790	$ 82,235
Trade notes receivable	2,516	1,769
Allowance for doubtful accounts	(447)	(843)
Accounts receivable, Net ,Total	$ 86,859	$ 83,161

Balance sheet components - Inve

Balance sheet components - Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventories
Raw materials	$ 24,609	$ 23,793
Work in process	18,243	12,165
Finished goods	18,663	29,644
Inventories	61,515	65,602
Finished goods, at vendor managed inventory locations	$ 6,100	$ 14,200

Balance sheet components - Purc

Balance sheet components - Purchased intangible assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Finite Lived Intangible Assets [Line Items]
Gross Assets	$ 54,112	$ 53,843
Accumulated Amortization	(46,584)	(43,991)
Net Assets	7,528	9,852
Technology and patents
Finite Lived Intangible Assets [Line Items]
Gross Assets	37,434	37,430
Accumulated Amortization	(32,662)	(31,061)
Net Assets	4,772	6,369
Customer relationships
Finite Lived Intangible Assets [Line Items]
Gross Assets	15,396	15,101
Accumulated Amortization	(13,607)	(12,623)
Net Assets	1,789	2,478
Leasehold interest
Finite Lived Intangible Assets [Line Items]
Gross Assets	1,282	1,312
Accumulated Amortization	(315)	(307)
Net Assets	$ 967	$ 1,005

Balance sheet components - Amor

Balance sheet components - Amortization expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Purchased intangible assets
Cost of goods sold	$ 848	$ 837	$ 1,689	$ 1,676
Operating expenses	460	448	913	897
Total	$ 1,308	$ 1,285	$ 2,602	$ 2,573

Balance sheet components - Esti

Balance sheet components - Estimated future amortization expense (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Purchased intangible assets
2016 (remaining six months)	$ 1,879
2,017	1,430
2,018	1,224
2,019	810
2,020	689
Thereafter	1,496
Net Assets	$ 7,528	$ 9,852

Balance sheet components - Accr

Balance sheet components - Accrued and other current liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Accrued and other current liabilities
Employee-related	$ 13,162		$ 17,420
Income and other taxes payable	2,264		3,720
Accrued warranty	669	$ 1,143	1,175	$ 1,254	$ 1,647	$ 1,751
Penalty payment derivative	389		389
Other accrued expenses	5,435		5,246
Accrued and other current liabilities	$ 21,919		$ 27,950

Balance sheet components - Warr

Balance sheet components - Warranty accrual (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Summary of significant accounting policies
Beginning balance	$ 1,143	$ 1,647	$ 1,175	$ 1,751
Warranty accruals	(203)	(243)	(101)	(175)
Settlements	(271)	(150)	(405)	(322)
Ending balance	$ 669	$ 1,254	$ 669	$ 1,254

Balance sheet components - Othe

Balance sheet components - Other noncurrent liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Other Noncurrent liabilites
Pension and other employee-related	$ 5,973	$ 5,036
Deferred income tax liabilities	111	88
Other	2,372	2,352
Other noncurrent liabilities	$ 8,456	$ 7,476

Restructuring (Details)

Restructuring (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Restructuring
Restructuring liability	$ 0	$ 0

Debt - Components of Debt, Obli

Debt - Components of Debt, Obligations, Weighted Average Interest Rate (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Notes payable	$ 8,589	$ 8,857
Total notes payable and short-term borrowing	32,389	32,657
Total long-term debt, current and non-current	13,287	11,769
Unaccreted discount within current portion of long-term debt	(80)	(71)
Unaccrreted discount within long-term debt, net of current portion	(171)	(179)
Total long-term debt, net of unaccreted discount	13,036	11,519
Current portion of long-term debt	892	760
Long-term debt, net of current portion	12,144	10,759
Comerica Bank Term Loan
Debt Instrument [Line Items]
Bank borrowings-Comerica Bank	$ 23,800	$ 23,800
Short-term Debt Weighted Average Interest Rate	3.22%	2.99%
Mitsubishi Bank [Member]
Debt Instrument [Line Items]
Bank borrowings-Mitsubishi Bank	$ 13,287	$ 11,769
Long-term Debt Weighted Average Interest Rate	1.43%	1.53%

Debt - Additional Information (

Debt - Additional Information (Details) $ in Thousands, ¥ in Millions

Apr. 16, 2015USD ($)

Feb. 25, 2015JPY (¥)

Feb. 25, 2015USD ($)

Jan. 02, 2015USD ($)

Aug. 31, 2016CNY (¥)

Sep. 30, 2015CNY (¥)

Jun. 30, 2015CNY (¥)

May 31, 2015USD ($)

Apr. 30, 2015USD ($)

Feb. 28, 2015JPY (¥)

Feb. 28, 2015USD ($)

Jan. 31, 2015USD ($)

Jun. 30, 2016USD ($)

Jun. 30, 2015USD ($)

Aug. 31, 2016USD ($)

Jun. 30, 2016JPY (¥)

Jun. 30, 2016USD ($)

Dec. 31, 2015JPY (¥)

Dec. 31, 2015USD ($)

Sep. 30, 2015USD ($)

Jun. 30, 2015USD ($)

Feb. 25, 2015USD ($)

Debt Instrument [Line Items]

Repayment of notes payable

$ 9,283

$ 11,756

Comerica [Member] | Revolving Credit Facility [Member]

Debt Instrument [Line Items]

Short-term line of credit facility

$ 23,800

Mitsubishi Bank [Member]

Debt Instrument [Line Items]

Short-term line of credit facility

¥ 1,300,000,000

13,100

¥ 1,400,000,000

$ 11,500

Unamortized debt issuance costs

¥ 25,800,000

$ 300

¥ 30,100,000

300

Tunable Laser Product Lines From EMCORE Corporation [Member]

Debt Instrument [Line Items]

Issuance of notes to the seller of acquired business

$ 15,482

$ 16,000

Debt Instrument, Term

2 years

Libor Plus Rate [Member] | Comerica [Member] | Revolving Credit Facility [Member]

Debt Instrument [Line Items]

Short-term line of credit facility

23,800

Line of credit facility, interest rate

3.22%

3.22%

First Year [Member] | Tunable Laser Product Lines From EMCORE Corporation [Member]

Debt Instrument [Line Items]

Note payable, interest rate

5.00%

Second Year [Member] | Tunable Laser Product Lines From EMCORE Corporation [Member]

Debt Instrument [Line Items]

Note payable, interest rate

13.00%

First Credit Facility Expires June 2016 [Member] | China

Debt Instrument [Line Items]

Percentage of compensating balance requirement for bank acceptance drafts

30.00%

Second Credit Facility Expires September 2016 [Member] | China

Debt Instrument [Line Items]

Percentage of compensating balance requirement for bank acceptance drafts

30.00%

First Short-Term Advance Financing Agreement Expires April 2015 [Member]

Debt Instrument [Line Items]

Debt repaid

$ 5,000

Interest rate

4.02%

First Short-Term Advance Financing Agreement Expires April 2015 [Member] | China

Debt Instrument [Line Items]

Short-term line of credit facility

$ 5,000

First Short-Term Advance Financing Agreement Expires April 2015 [Member] | China | Libor Plus Rate [Member]

Debt Instrument [Line Items]

Debt Instrument, Basis Spread on Variable Rate

3.30%

Obligation bear variable interest

3.71%

3.71%

Second Short-Term Advance Financing Agreement Expires May 2015 [Member]

Debt Instrument [Line Items]

Debt repaid

$ 5,000

Interest rate

2.33%

Service fees interest percentage

1.00%

Term Loan B [Member] | Mitsubishi Bank [Member]

Debt Instrument [Line Items]

Debt, aggregate principal amount

¥ 1,000,000,000

$ 8,400

Debt, periodic principal payments | ¥

8,333,000

Debt, lump sum payment on the maturity date | ¥

8,373,000

Loan structuring fee including consumption tax

¥ 40,500,000

$ 300

Term Loan B [Member] | Tunable Laser Product Lines From EMCORE Corporation [Member] | Mitsubishi Bank [Member]

Debt Instrument [Line Items]

Issuance of notes to the seller of acquired business

$ 15,500

Term Loan B [Member] | Tokyo Interbank Offer Rate [Member] | Mitsubishi Bank [Member]

Debt Instrument [Line Items]

Debt Instrument, Basis Spread on Variable Rate

1.40%

1.40%

Senior Secured Revolving Credit Facility Expires November 2016 [Member] | Comerica [Member]

Debt Instrument [Line Items]

Line of Credit Facility, Maximum Borrowing Capacity

$ 30,000

Senior Secured Revolving Credit Facility Expires November 2016 [Member] | Libor Plus Rate [Member] | Comerica [Member]

Debt Instrument [Line Items]

Debt Instrument, Basis Spread on Variable Rate

2.75%

Senior Secured Revolving Credit Facility Expires November 2016 [Member] | Credit Facility Base Rate [Member] | Comerica [Member]

Debt Instrument [Line Items]

Debt Instrument, Basis Spread on Variable Rate

1.75%

Senior Secured Revolving Credit Facility Expires November 2016 [Member] | Federal Funds Effective Rate [Member]

Debt Instrument [Line Items]

Debt Instrument, Basis Spread on Variable Rate

1.00%

Senior Secured Revolving Credit Facility Expires November 2016 [Member] | Daily Adjusting LIBOR Rate [member]

Debt Instrument [Line Items]

Debt Instrument, Basis Spread on Variable Rate

1.00%

Term Loan A [Member] | Mitsubishi Bank [Member]

Debt Instrument [Line Items]

Debt, aggregate principal amount

¥ 500,000,000

$ 4,200

Term Loan A [Member] | Tokyo Interbank Offer Rate [Member] | Mitsubishi Bank [Member]

Debt Instrument [Line Items]

Debt Instrument, Basis Spread on Variable Rate

1.40%

1.40%

Loans Payable | First Credit Facility Expires June 2016 [Member] | China

Debt Instrument [Line Items]

Line of Credit Facility, Maximum Borrowing Capacity

¥ 120

$ 18,100

Loans Payable | Second Credit Facility Expires September 2016 [Member] | China

Debt Instrument [Line Items]

Short-term line of credit facility

¥ 133

$ 20,000

Notes Payable | NeoPhotonics Semiconductor [Member]

Debt Instrument [Line Items]

Repayment of notes payable

¥ 710,000,000

$ 6,000

Bankers Acceptance

Debt Instrument [Line Items]

Restricted cash and investments, current

2,600

2,700

Bankers Acceptance | China

Debt Instrument [Line Items]

Short-term line of credit facility

$ 8,600

$ 8,900

Bankers Acceptance | China | Minimum [Member]

Debt Instrument [Line Items]

Debt Instrument, Term

3 months

Bankers Acceptance | China | Maximum [Member]

Debt Instrument [Line Items]

Debt Instrument, Term

6 months

Bankers Acceptance | First Credit Facility Expires June 2016 [Member] | China

Debt Instrument [Line Items]

Line of Credit Facility, Maximum Borrowing Capacity

¥ 171.4

$ 25,800

Bankers Acceptance | Second Credit Facility Expires September 2016 [Member] | China

Debt Instrument [Line Items]

Short-term line of credit facility

¥ 190

$ 28,600

Subsequent Event [Member] | Bankers Acceptance | Third Credit Facility Expires July 2019 [Member] | China

Debt Instrument [Line Items]

Percentage of compensating balance requirement for bank acceptance drafts

30.00%

Subsequent Event [Member] | China | Loans Payable | Third Credit Facility Expires July 2019 [Member]

Debt Instrument [Line Items]

Line of Credit Facility, Maximum Borrowing Capacity

¥ 30

$ 4,500

Subsequent Event [Member] | China | Bank Overdrafts | Third Credit Facility Expires July 2019 [Member]

Debt Instrument [Line Items]

Line of Credit Facility, Maximum Borrowing Capacity

¥ 42.9

$ 6,500

Debt - Maturities of Long -Term

Debt - Maturities of Long -Term debt (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Maturities Of Long Term Debt [Abstract]
2016 (remaining nine months)	$ 486
2,017	972
2,018	5,833
2,019	972
2,020	972
Thereafter	4,052
Long Term Debt	$ 13,287	$ 11,769

Japan pension plans (Details)

Japan pension plans (Details) $ in Millions	1 Months Ended
	May 31, 2014USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Mar. 29, 2013item
Japan pension plans
Number of Defined Benefit Pension Plans | item				2
Employer contributions	$ 2
Conversion of plan, proceed from LAPIS	$ 0.3
Pension liability		$ 5.7	$ 5.1
Pension liability included in accrued and other current liabilities		$ 0.3	$ 0.1

Commitments and Contingencies (

Commitments and Contingencies (Details) € in Millions	Apr. 02, 2015	Mar. 23, 2015EUR (€)	Mar. 23, 2015USD ($)	Sep. 16, 2013USD ($)	Aug. 31, 2016USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2010defendant
Loss Contingencies [Line Items]
Number of defendants | defendant											4
Probable or reasonably possible loss						$ 0		$ 0
Operating leases, future minimum payments due						8,000,000		8,000,000
Operating leases, future minimum, sublease receipts						1,200,000		1,200,000
Rent expense						500,000	$ 600,000	1,100,000	$ 1,100,000
Amount of contribution										$ 15,400,000
Amount of companies cumulative investment and spending								18,800,000
Penalty amount								$ 1,500,000
Number of days in which penalty needs to be paid								30 days
Cure period								90 days
Penalty payment derivative						400,000		$ 400,000
Proceeds from public stock offering, net of offering costs								39,800,000
Revenue						99,129,000	$ 85,372,000	198,274,000	$ 166,756,000
Securities lock up agreement period	60 days						180 days
Pending Litigation Member
Loss Contingencies [Line Items]
Partial settlement of claims				$ 492,000
Accrual for estimated net litigation expense		€ 1	$ 1,100,000
Embedded Derivative Financial Instruments [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Other non-current liability						5,000,000		5,000,000
Russia
Loss Contingencies [Line Items]
Exit fees								3,500,000
Exit fees for future								2,000,000
Subsequent Event [Member]
Loss Contingencies [Line Items]
Expected Costs to Transfer Product Line					$ 100,000
Private Placement [Member] | Embedded Derivative Financial Instruments [Member]
Loss Contingencies [Line Items]
Penalty payment derivative						100,000		100,000
Additional paid-in capital						4,900,000		4,900,000
Private Placement [Member] | Performance Guarantee [Member]
Loss Contingencies [Line Items]
Other non-current liability						$ 30,000,000		$ 30,000,000

Stockholders' equity - Common s

Stockholders' equity - Common stock, resale registration statement, and follow-on public offering (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Apr. 30, 2015
Class Of Stock [Line Items]
Common Stock Shares Authorized	100,000,000		100,000,000		100,000,000
Common stock, par value	$ 0.0025		$ 0.0025		$ 0.0025
Issuance of common stock from public stock offering, net of discount and offering costs (in shares)		6,866,689
Sale of common stock upon the exercise of overallotment option		895,655
Public offering price		$ 7.25		$ 7.25
Consideration raised on transaction		$ 45.6
Underwriting discounts		3
Other offering expenses		1.2
Reclassified out of accumulated other comprehensive income for realized gains or losses on available for sale securities	$ 0	$ 0	$ 0	$ 0
Accumulated deficit subject to restriction					$ 7.9
Resale Registration Statement [Member]
Class Of Stock [Line Items]
Common Stock Shares Authorized						4,972,905
Common stock, par value						$ 0.0025
Minimum [Member]
Class Of Stock [Line Items]
Accumulated profits					10.00%
Employee Stock Options
Class Of Stock [Line Items]
Common stock	7,783,305		7,783,305
Sale of common stock upon the exercise of overallotment option			551,724
Employee Stock Purchase Plan
Class Of Stock [Line Items]
Common stock	776,613		776,613

Stockholders Equity - Accumulat

Stockholders Equity - Accumulated Other Comprehensive Income, Net of Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Balance			$ (1,723)
Other Comprehensive Income Loss Net Of Tax	$ (1,746)	$ (100)	347	$ 585
Balance	(1,376)		(1,376)
Foreign Currency Translation Adjustments
Balance			(1,595)
Other Comprehensive Income Loss Net Of Tax			314
Balance	(1,281)		(1,281)
Unrealized (Loss) Gain on Available-For-Sale Securities
Balance			(29)
Other Comprehensive Income Loss Net Of Tax			33
Balance	4		4
Defined Benefit Pension Plan Adjustment
Balance			(99)
Balance	$ (99)		$ (99)

Stock-based compensation - Stoc

Stock-based compensation - Stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 2,230	$ 1,926	$ 5,669	$ 3,982
Cost of Goods Sold [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	719	410	1,308	780
Research and Development Expense [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	556	501	1,527	994
Selling and Marketing Expense [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	365	447	1,252	900
General and Administrative Expense [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 590	$ 568	$ 1,582	$ 1,308

Stock-based compensation - Esti

Stock-based compensation - Estimated fair vale of stock-based awards (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Employee Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average expected term (years)	5 years 3 months 18 days	5 years 7 months 6 days	5 years 2 months 12 days	5 years 4 months 24 days
Weighted-average volatility	63.00%	64.00%	63.00%	64.00%
Risk-free interest rate Minimum	1.21%	1.37%	1.21%	1.37%
Risk-free interest rate Maximum	1.38%	1.54%	1.76%	1.65%
Expected dividends	0.00%	0.00%	0.00%	0.00%
Stock Appreciation Units (SARs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average expected term (years)	2 years 10 months 2 days	3 years 7 months 6 days	2 years 11 months 9 days	3 years 8 months 12 days
Weighted-average volatility	62.00%	62.00%	62.00%	63.00%
Risk-free interest rate Minimum	0.59%	0.26%	0.59%	0.25%
Risk-free interest rate Maximum	0.95%	1.24%	1.47%	1.57%
Expected dividends	0.00%	0.00%	0.00%	0.00%
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average expected term (years)	8 months 12 days	6 months	8 months 12 days	6 months
Weighted-average volatility	70.00%	59.00%	70.00%	59.00%
Risk-free interest rate		0.14%		0.14%
Risk-free interest rate Minimum	0.08%		0.08%
Risk-free interest rate Maximum	0.39%		0.39%
Expected dividends	0.00%	0.00%	0.00%	0.00%

Stock-based compensation - St62

Stock-based compensation - Stock Options and RSUs (Details) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2016
Number of Shares
Exercised/Converted	(895,655)
Employee Stock Options
Number of Shares
Beginning Balance		5,007,797
Granted		75,036
Exercised/Converted		(551,724)
Cancelled/Forfeited		(49,128)
Ending Balance		4,481,981
Weighted Average Exercise Price
Beginning Balance		$ 4.34
Granted		10.94
Exercised/Converted		3.52
Cancelled/Forfeited		5.34
Ending Balance		$ 4.55
Restricted stock units
Number of Units
Beginning Balance		1,213,686
Granted		72,580
Exercised/Converted		(20,681)
Cancelled/Forfeited		(29,019)
Ending Balance		1,236,566
Weighted Average Exercise Price
Beginning Balance		$ 7.46
Granted		11
Exercised/Converted		7.01
Cancelled/Forfeited		7.23
Ending Balance		$ 7.68

Stock-based compensation - St63

Stock-based compensation - Stock appreciation units (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Stock Appreciation Units (SARs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance-based stock appreciation units	0	0	0	0
Shares outstanding	321,196		321,196		342,316
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 0.2		$ 0.2

Income taxes - Provision for in

Income taxes - Provision for income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income taxes
Provision for income taxes	$ (626)	$ (1,127)	$ (1,667)	$ (1,541)

Income taxes - Additional infor

Income taxes - Additional information (Details) - Foreign Country [Member] - Subsidiaries [Member]	6 Months Ended
	Jun. 30, 2016
Income Taxes [Line Items]
Effective income tax rate	15.00%
Income tax statutory rate	25.00%

Subsequent event (Details)

Subsequent event (Details) $ in Millions	1 Months Ended
	Jul. 31, 2016USD ($)
Comerica [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Repayments of credit facility	$ 23.8