GigPeak (GIG.U) 10-Q 6 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 28, 2015	Jul. 24, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	GigOptix, Inc.
Entity Central Index Key	1,432,150
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		33,072,877
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 28, 2015

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 31, 2014	[1]
Current assets:
Cash and cash equivalents	$ 18,382	$ 18,438
Accounts receivable, net	7,843	7,955
Inventories	6,824	5,139
Prepaid and other current assets	789	433
Total current assets	33,838	31,965
Property and equipment, net	2,309	1,916
Intangible assets, net	1,947	2,394
Goodwill	10,395	10,306
Restricted cash	56	53
Other assets	133	116
Total assets	48,678	46,750
Current liabilities:
Accounts payable	2,702	2,731
Accrued compensation	1,221	730
Other current liabilities	2,637	2,902
Total current liabilities	6,560	6,363
Pension liabilities	346	326
Other long term liabilities	658	556
Total liabilities	$ 7,564	$ 7,245
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock, $0.001 par value; 1,000,000 shares authorized; no shares issued and outstanding as of June 28, 2015 and December 31, 2014, respectively	$ 0	$ 0
Common stock, $0.001 par value; 100,000,000 shares authorized; 33,774,631 and 33,112,086 shares issued and outstanding as of June 28, 2015 and December 31, 2014, respectively	33	32
Additional paid-in capital	145,380	143,661
Treasury stock, at cost; 701,754 shares as of June 28, 2015 and December 31, 2014	(2,209)	(2,209)
Accumulated other comprehensive income	288	285
Accumulated deficit	(102,378)	(102,264)
Total stockholders' equity	41,114	39,505
Total liabilities and stockholders' equity	$ 48,678	$ 46,750
[1]	The condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements as of that date.

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 28, 2015	Dec. 31, 2014
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	33,774,631	33,112,086
Common stock, outstanding (in shares)	33,774,631	33,112,086
Treasury stock, at cost (in shares)	701,754	701,754

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]
Total revenue	$ 9,840	$ 8,037	$ 18,900	$ 15,423
Total cost of revenue	3,611	3,487	7,278	6,613
Gross profit	6,229	4,550	11,622	8,810
Operating expenses
Research and development expense	3,224	3,358	6,472	7,100
Selling, general and administrative expense	2,442	2,567	5,212	4,965
Restructuring expense, net	0	307	0	307
Total operating expenses	5,666	6,232	11,684	12,372
Income (loss) from operations	563	(1,682)	(62)	(3,562)
Interest expense, net	(3)	(10)	(6)	(27)
Other income (loss), net	(19)	0	(18)	10
Income (loss) before provision for income taxes	541	(1,692)	(86)	(3,579)
Provision for income taxes	16	21	25	31
Income (loss) from consolidated companies	525	(1,713)	(111)	(3,610)
Loss on equity investment	3	331	3	331
Net income (loss)	$ 522	$ (2,044)	$ (114)	$ (3,941)
Net income (loss) per share-basic (in dollars per share)	$ 0.02	$ (0.06)	$ 0	$ (0.13)
Net income (loss) per share-diluted (in dollars per share)	$ 0.02	$ (0.06)	$ 0	$ (0.13)
Weighted average number of shares used in basic net income (loss) per share calculations (in shares)	32,885	31,607	32,705	31,521
Weighted average number of shares used in diluted net income (loss) per share calculations (in shares)	33,922	31,607	32,705	31,521

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) [Abstract]
Net income (loss)	$ 522	$ (2,044)	$ (114)	$ (3,941)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment	(17)	(10)	3	(12)
Other comprehensive income (loss), net of tax	(17)	(10)	3	(12)
Comprehensive income (loss)	$ 505	$ (2,054)	$ (111)	$ (3,953)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 28, 2015		Jun. 29, 2014
Cash flows from operating activities:
Net loss	$ (114)		$ (3,941)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,775		1,813
Stock-based compensation	2,189		2,127
Change in fair value of warrants	4		(3)
Loss (gain) on property and equipment	0		8
Non-cash restructuring expense	0		210
Loss on equity investment	3		331
Changes in operating assets and liabilities:
Accounts receivable	112		(2,008)
Inventories	(1,685)		85
Prepaid and other current assets	(888)		(582)
Other assets	(20)		23
Accounts payable	(91)		1,754
Accrued restructuring	0		(29)
Accrued compensation	491		(268)
Other current liabilities	(381)		(248)
Other long-term liabilities	104		(10)
Net cash provided by (used in) operating activities	1,499		(738)
Cash flows from investing activities:
Purchases of property and equipment	(1,118)		(682)
Net cash used in investing activities	(1,118)		(682)
Cash flows from financing activities:
Proceeds from issuance of stock	32		40
Taxes paid related to net share settlement of restricted stock units	(501)		(266)
Repayment of capital lease	(2)		(181)
Net cash used in financing activities	(471)		(407)
Effect of exchange rates on cash and cash equivalents	34		(9)
Net decrease in cash and cash equivalents	(56)		(1,836)
Cash and cash equivalents, beginning of period	18,438	[1]	20,377
Cash and cash equivalents, end of period	18,382		18,541
Supplemental disclosure of cash flow information
Interest paid	8		29
Property and equipment acquired with accounts payable	136		90
Investment in unconsolidated affiliate acquired with property and equipment and inventories	$ 0		$ 456
[1]	The condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements as of that date.

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 28, 2015
ORGANIZATION AND BASIS OF PRESENTATION [Abstract]
ORGANIZATION AND BASIS OF PRESENTATION	NOTE 1—ORGANIZATION AND BASIS OF PRESENTATION Organization GigOptix Inc. (“GigOptix” or the “Company”) is a leading fabless supplier of high speed semiconductor components that enable end-to-end information streaming over the networks. Its products address the needs of emerging high-growth markets, such as long haul and metro telecommunications (“telecom”) applications, as well as Cloud and datacenter connectivity, point-to-point wireless backhaul, and interactive high speed applications for the consumer electronics, industrial, defense and avionics industries. The business is made up of two product lines: the High-Speed Communications (“HSC”) product line and the Industrial product line. Its products are highly customized and typically developed in partnership with key “Lighthouse” customers, generating engineering project revenues through the development stage and larger future product revenues through these customers and general market availability. The HSC product line offers a broad portfolio of high performance semiconductor devices and multi-chip-modules (“MCMs”) aimed predominantly at the telecom, datacom and consumer-electronics markets, and includes, among others, (i) mixed signal radio frequency integrated circuits (“RFIC”) at 50 GHz and above; (ii) 10 to 400 gigabit per second (“Gbps”) laser and optical-modulator drivers, and trans-impedance amplifiers (“TIA”); (iii) power amplifiers and transceivers for microwave and millimeter monolithic microwave integrated circuit (“MMIC”) wireless applications at frequencies higher than 50 GHz; (iv) integrated systems in a package (“SIP”) solutions for both fiber-optic and wireless communication systems; and (v) radio frequency (“RF”) chips for various consumer applications such as global navigation satellite systems (“GNSS”). The Industrial product line offers a wide range of digital and mixed-signal application specific integrated circuit (“ASIC”) solutions for various industrial applications used in the military, avionics, automotive, security and surveillance, medical and communications markets. GigOptix, Inc., the successor to GigOptix LLC, was formed as a Delaware corporation in March 2008 in order to facilitate a combination between GigOptix LLC and Lumera Corporation (“Lumera”). Before the combination, GigOptix LLC acquired the assets of iTerra Communications LLC in July 2007 (“iTerra”) and Helix Semiconductors AG (“Helix”) in January 2008. On November 9, 2009, GigOptix acquired ChipX, Incorporated (“ChipX”). On June 17, 2011, GigOptix acquired Endwave Corporation (“Endwave”). As a result of the acquisitions, Helix, Lumera, ChipX and Endwave all became wholly-owned subsidiaries of GigOptix. In March 2013, the Company established a German wholly-owned subsidiary, GigOptix GmbH; however it is currently in the process of being dissolved. In February 2014, together with Fundação CPqD – Centro De Pesquisa e Desenvolvimento em Telecomunicações (“CPqD”), the Company formed a new joint venture of which the Company owns 49% and CPqD owns 51%, BrPhotonics Produtos Optoeletrônicos LTDA. (“BrP”), based in Campinas, Brazil, which will be a provider of advanced high-speed devices for optical communications and integrated transceiver components that enable information streaming over fiber-optics communication networks. This joint venture is also engaged in research and development of Silicon-Photonics (“SiPh”) advanced electro-optical products. During the second quarter of 2014, the Company transferred all of its inventory and assets related to the Thin Film Polymer on Silicon TM ” platform and the production line equipment for use by BrP (see also Note 8). In June 30, 2014, the Company acquired, for cash only by way of assuming specified liabilities, substantially all of the assets of Tahoe RF Semiconductor, Inc. (“Tahoe RF”). In June 2015, the Company established a Japanese wholly-owned subsidiary, GigOptix Japan GK. The Company’s fiscal year ends on December 31. For quarterly reporting, the Company employs a five-week, four-week, four-week, reporting period. The second quarter of 2015 ended on Sunday, June 28, 2015. The second quarter of 2014 ended on Sunday, June 29, 2014. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements as of June 28, 2015 and for the three and six months ended June 28, 2015 and June 29, 2014, have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions of Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. The statements include the accounts of the Company and all of its subsidiaries and they do not include all of the information and footnotes required by such accounting principles for annual financial statements. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position as of June 28, 2015, . The condensed consolidated results of operations for the three and six months ended June 28, 2015 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending December 31, 2015. 2014 Form 10-K. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reported periods. These judgments can be subjective and complex, and consequently, actual results could differ materially from those estimates and assumptions. Descriptions of these estimates and assumptions are included in the 2014 Form 10-K and the Company encourages you to read its 2014 Form 10-K for more information about such estimates and assumptions.

BALANCE SHEET COMPONENTS

BALANCE SHEET COMPONENTS	6 Months Ended
	Jun. 28, 2015
BALANCE SHEET COMPONENTS [Abstract]
BALANCE SHEET COMPONENTS	NOTE 2—BALANCE SHEET COMPONENTS Accounts receivable, net consisted of the following (in thousands): June 28, December 31, 2015 2014 Accounts receivable $ 7,889 $ 8,003 Allowance for doubtful accounts (46 ) (48 ) $ 7,843 $ 7,955 Inventories consisted of the following (in thousands): June 28, December 31, 2015 2014 Raw materials $ 3,180 $ 1,676 Work in process 1,997 1,421 Finished goods 1,647 2,042 $ 6,824 $ 5,139 Property and equipment, net consisted of the following (in thousands, except depreciable life): Life June 28, December 31, (In years) 2015 2014 Network and laboratory equipment 3 – 5 $ 12,544 $ 11,252 Computer software and equipment 2 – 3 3,959 3,877 Furniture and fixtures 3 – 7 165 165 Office equipment 3 – 5 134 131 Leasehold improvements 1 – 5 298 276 17,100 15,701 Accumulated depreciation and amortization (14,791 ) (13,785 ) Property and equipment, net $ 2,309 $ 1,916 For the three and six months ended June 28, 2015, depreciation expense related to property and equipment was $380,000 and $795,000, respectively. For the three and six months ended June 29, 2014, depreciation expense related to property and equipment was $548,000 and $1.1 million, respectively. In addition to the property and equipment above, the Company has prepaid licenses. For the three and six months ended June 28, 2015, amortization related to these prepaid licenses was $281,000 and $533,000, respectively. For the three and six months ended June 29, 2014, amortization related to these prepaid licenses was $125,000 and $276,000, respectively. Accrued and other current liabilities consisted of the following (in thousands): June 28, December 31, 2015 2014 Amounts billed to the U.S. government in excess of approved rates $ 191 $ 191 Warranty liability 357 334 Customer deposits 671 599 Capital lease obligations, current portion 3 3 Sales return reserve 470 412 Deferred revenue 342 327 Other 603 1,036 $ 2,637 $ 2,902 The Company generally offers a one-year warranty on its products. The Company records a liability based on estimates of the costs that may be incurred under its warranty obligations and charges to the cost of product revenue the amount of such costs at the time revenues are recognized. The warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. The estimates of anticipated rates of warranty claims and costs per claim are primarily based on historical information and future forecasts. Changes in the Company’s product warranty liability during the six months ended June 28, 2015 and June 29, 2014 are as follows (in thousands): Six months ended June 28, 2015 June 29, 2014 Beginning balance $ 334 $ 330 Warranties accrued 280 226 Warranties settled or reversed (257 ) (211 ) Ending balance $ 357 $ 345

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 28, 2015
FAIR VALUE [Abstract]
FAIR VALUE	NOTE 3—FAIR VALUE The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 28, 2015 and December 31, 2014 (in thousands): Fair Value Measurements Using Carrying Value Quoted Prices in Active Identical Significant Other Inputs Significant Unobservable Inputs June 28, 2015: Assets: Cash equivalents: Money market funds $ 12,362 $ 12,362 $ - $ - $ 12,362 $ 12,362 $ - $ - Current liabilities: Liability warrants $ 12 $ - $ - $ 12 December 31, 2014: Assets: Cash equivalents: Money market funds $ 12,360 $ 12,360 $ - $ - $ 12,360 $ 12,360 $ - $ - Current liabilities: Liability warrants $ 8 $ - $ - $ 8 The Company’s financial assets and liabilities are valued using market prices on active markets (“Level 1”), less active markets (“Level 2”) and unobservable markets (“Level 3”). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily-available pricing sources for comparable instruments. Level 3 instruments are valued using unobservable market values in which there is little or no market data, and which require the Company to apply judgment to determine the fair value. For the period ended June 28, 2015, the Company did not have any significant transfers between Level 1, Level 2 and Level 3. The amounts reported as cash and cash equivalents, accounts receivable, accounts payable, accrued compensation and other current liabilities approximate fair value due to their short-term maturities. The carrying value of the Company’s line of credit and capital lease obligations approximates fair value and is based upon borrowing rates currently available to the Company for loans and capital leases with similar terms. Liability Warrants The Company issued warrants to Bridge Bank in connection with a waiver of certain events of default that arose under a November 2009 loan and security agreement with Bridge Bank. Certain provisions in the warrant agreements provided for down-round protection if the Company raised equity capital at a per share price which was less than the per share price of the warrants. Such down-round protection also requires the Company to classify the value of the warrants as a liability on the issuance date and then record changes in the fair value through the consolidated statements of operations for each reporting period until the warrants are either exercised or cancelled. The fair value of the liability is recalculated and adjusted each quarter with the differences being charged to other income (expense), net on the consolidated statements of operations. The fair value of these warrants was determined using a Black-Scholes option-pricing model, which requires the use of significant unobservable market values. As a result, these warrants are classified as Level 3 financial instruments. On July 7, 2010, the Company raised additional equity through an offering of 2,760,000 shares at $1.75 per share, thus triggering the down-round protection and adjustment of the number of warrants issued to Bridge Bank. On December 24, 2013, the Company raised additional equity through an offering of 9,573,750 shares at $1.42 per share, thus triggering the down-round protection and adjustment of the number of warrants issued to Bridge Bank. The fair value of the warrants was estimated using the following assumptions: As of June 28, 2015 As of December 31, 2014 Stock price $ 1.60 $ 1.20 Exercise price $ 2.51 $ 2.51 Expected life 2.05 years 2.55 years Risk-free interest rate 0.72 % 1.10 % Volatility 69 % 69 % Fair value per share $ 0.40 $ 0.27 The following table summarizes the warrants subject to liability accounting as of June 28, 2015 and December 31, 2014 (in thousands, except share and per share amounts) (see also Note 6): Three Months Ended June 28, 2015 Six Months Ended June 28, 2015 Holder Original Warrants Adjusted Warrants Grant Date Expiration Date Price per Share Fair Value June 28, 2015 Fair Value December 31, 2014 Exercise of Warrants Change in Fair Value Exercise of Warrants Change in Fair Value Related Agreement Bridge Bank 20,000 29,115 4/7/2010 7/7/2017 $ 2.51 $ 12 $ 8 - $ 5 - $ 4 Credit Agreement The change in the fair value of the Level 3 liability warrants during the three and six months ended June 28, 2015 is as follows (in thousands): Fair value as of December 31, 2014 $ 8 Exercise of warrants - Change in fair value (1 ) Fair value as of March 29, 2015 7 Exercise of warrants - Change in fair value 5 Fair value as of June 28, 2015 $ 12 The warrant liability is included in other current liabilities on the condensed consolidated balance sheets.

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL	6 Months Ended
	Jun. 28, 2015
INTANGIBLE ASSETS AND GOODWILL [Abstract]
INTANGIBLE ASSETS AND GOODWILL	NOTE 4—INTANGIBLE ASSETS AND GOODWILL Intangible assets consist of the following (in thousands): June 28, 2015 December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $ 3,277 $ (2,331 ) $ 946 $ 3,277 $ (2,119 ) $ 1,158 Existing technology 3,783 (3,084 ) 699 3,783 (2,881 ) 902 Order backlog 732 (732 ) - 732 (732 ) - Patents 457 (405 ) 52 457 (402 ) 55 Trade name 659 (409 ) 250 659 (380 ) 279 Total $ 8,908 $ (6,961 ) $ 1,947 $ 8,908 $ (6,514 ) $ 2,394 For the three and six months ended June 28, 2015 and June 29, 2014, amortization of intangible assets was as follows (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Cost of revenue $ 104 $ 103 $ 207 $ 206 Selling, general and administrative expense 120 121 240 241 $ 224 $ 224 $ 447 $ 447 Estimated future amortization expense related to intangible assets as of June 28, 2015 is as follows (in thousands): Years ending December 31, 2015 (remainder of year) $ 446 2016 869 2017 487 2018 63 2019 54 Thereafter 28 Total $ 1,947 As of June 28, 2015, the Company had $10.4 million of goodwill in connection with the acquisitions of ChipX, Endwave and Tahoe RF. During the third quarter of 2014, the Company completed its acquisition of Tahoe RF which resulted in $446,000 of goodwill. During 2014, the Company assumed approximately $446,000 of liabilities of Tahoe RF and added RF/analog RFIC technology to the Company’s product portfolio and approximately 10 employees, primarily High-Speed and High-Frequency SiGe RF engineers focused on high growth areas such as wireless – E-Band and V-Band and GPS technologies. The Company agreed to pay up to an additional $254,000 in Tahoe RF expenses of which $20,000 had been accrued in other current liabilities on the Company’s condensed consolidated balance sheet as of December 31, 2014. The condensed consolidated financial statements include the operating results of Tahoe RF from the date of acquisition. Pro forma results of operations for the Tahoe RF acquisition have not been presented because the effect of the acquisition was not material to the Company’s financial results.

CREDIT FACILITIES

CREDIT FACILITIES	6 Months Ended
	Jun. 28, 2015
CREDIT FACILITIES [Abstract]
CREDIT FACILITIES	NOTE 5—CREDIT FACILITIES On March 25, 2013, the Company and its wholly owned subsidiaries, ChipX, Incorporated and Endwave Corporation (together with the Company, the “Borrowers”) previously entered into a second amended and restated loan and security agreement (“Loan Agreement”) with Silicon Valley Bank (“SVB”) to replace the amended and restated loan and security agreement entered on December 9, 2011. On May 15, 2015, SVB and the Borrowers entered into a Second Amendment to the Second Restated Loan Agreement, effective as of May 8, 2015 (the “Second Amendment”). Pursuant to the Second Amendment, the total aggregate amount that the Company is entitled to borrow from SVB under a Revolving Loan facility is $7 million, based on net eligible accounts receivable after an 80% advance rate and subject to limits based on the Company’s eligible accounts as determined by SVB. In addition, the Applicable Rate was decreased from Prime Rate plus 0.6% to Prime Rate plus 0.4%, and the default interest rate increase was decreased from 5% to 3%. The terms of the Second Amendment are set to expire on May 6, 2016. The Loan Agreement with SVB, as amended, is collateralized by all of the Company’s assets, including all accounts, equipment, inventory, receivables, and general intangibles. The Loan Agreement contains certain restrictive covenants that will impose significant operating and financial restrictions on its operations, including, but not limited to restrictions that limit its ability to: · Sell, lease, or otherwise transfer, or permit any of its subsidiaries to sell, lease or otherwise transfer, all or any part of its business or property, except in the ordinary course of business or in connection with certain indebtedness or investments permitted under the amended and restated loan agreement; · Merge or consolidate, or permit any of its subsidiaries to merge or consolidate, with or into any other business organization, or acquire, or permit any of its subsidiaries to acquire, all or substantially all of the capital stock or property of another person; · Create, incur, assume or be liable for any indebtedness, other than certain indebtedness permitted under the amended and restated loan and security agreement; · Pay any dividends or make any distribution or payment on, or redeem, retire, or repurchase, any capital stock; and · Make any investment, other than certain investments permitted under the amended and restated loan and security agreement. The Company had no outstanding balance on its line of credit as of June 28, 2015.

STOCKHOLDERS' EQUITY AND STOCK-

STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 28, 2015
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION [Abstract]
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION	NOTE 6—STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION Common and Preferred Stock In December 2008, the Company’s stockholders approved an amendment to the Certificate of Incorporation to authorize 50,000,000 shares of common stock of par value $0.001. In November 2014, the Company’s stockholders approved an amendment to the Amended and Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 50,000,000 shares to 100,000,000 shares of par value $0.001. In addition, the Company is authorized to issue 1,000,000 shares of preferred stock of $0.001 par value of which 750,000 shares have been designated Series A Junior Preferred Stock with powers, preferences and rights as set forth in the amended and restated certificate of designation dated December 15, 2014; the remainder of the shares of preferred stock are undesignated, for which the Board of Directors is authorized to fix the designation, powers, preferences and rights. As of June 28, 2015 and December 31, 2014, there were no shares of preferred stock issued or outstanding. On December 16, 2014, the Company entered into an Amended and Restated Rights Agreement to extend the expiration date of its stockholder rights plan that may have the effect of deterring, delaying, or preventing a change in control. The Amended and Restated Rights Agreement amends the Rights Agreement previously adopted by (i) extending the expiration date by three years to December 16, 2017, (ii) decreasing the exercise price per right issued to stockholders pursuant to the stockholder rights plan from $8.50 to $5.25, and (iii) making certain other technical and conforming changes. The Amended and Restated Rights Agreement was not adopted in response to any acquisition proposal. Under the rights plan, the Company issued a dividend of one preferred share purchase right for each share of common stock held by stockholders of record as of January 6, 2012, and the Company will issue one preferred stock purchase right to each share of common stock issued between January 6, 2012 and the earlier of either the rights’ exercisability or the expiration of the Rights Agreement. Each right entitles stockholders to purchase one one-thousandth of the Company’s Series A Junior Preferred Stock. In general, the exercisability of the rights to purchase preferred stock will be triggered if any person or group, including persons knowingly acting in concert to affect the control of the Company, is or becomes a beneficial owner of 10% or more of the outstanding shares of the Company’s common stock after the Adoption Date. Stockholders or beneficial ownership groups who owned 10% or more of the outstanding shares of common stock of the Company on or before the Adoption Date will not trigger the preferred share purchase rights unless they acquire an additional 1% or more of the outstanding shares of the Company’s common stock. Each right entitles a holder with the right upon exercise to purchase one one-thousandth of a share of preferred stock at an exercise price that is currently set at $5.25 per right, subject to purchase price adjustments as set forth in the rights agreement. Each share of preferred stock has voting rights equal to one thousand shares of common stock. In the event that exercisability of the rights is triggered, each right held by an acquiring person or group would become void. As a result, upon triggering of exercisability of the rights, there would be significant dilution in the ownership interest of the acquiring person or group, making it difficult or unattractive for the acquiring person or group to pursue an acquisition of the Company. These rights expire in December of 2017, unless earlier redeemed or exchanged by the Company. 2008 Equity Incentive Plan In December 2008, the Company adopted the 2008 Equity Incentive Plan (the “2008 Plan”) for directors, employees, consultants and advisors to the Company or its affiliates. Under the 2008 Plan, 2,500,000 shares of common stock were reserved for issuance upon the completion of a merger with Lumera Corporation (“Lumera”) on December 9, 2008. On January 1 of each year, starting in 2009, the aggregate number of shares reserved for issuance under the 2008 Plan increase automatically by the lesser of (i) 5% of the number of shares of common stock outstanding as of the Company’s immediately preceding fiscal year, or (ii) a number of shares determined by the Board of Directors. The maximum number of shares of common stock to be granted is up to 21,000,000 shares. Forfeited options or awards generally become available for future awards. As of December 31, 2014, the stockholders had approved 16,624,634 shares for future issuance. As of June 28, 2015, 11,462,545 options to purchase common stock and restricted stock units (“RSUs”) were outstanding and 3,003,051 shares are authorized for future issuance under the 2008 equity incentive plan. Under the 2008 Plan, the exercise price of a stock option is at least 100% of the stock’s fair market value on the date of grant, and if an incentive stock option (“ISO”) is granted to a 10% stockholder at least 110% of the stock’s fair market value on the date of grant. Vesting periods for awards are recommended by the Chief Executive Officer and generally provide for stock options to vest over a four-year period, with a one year vesting cliff of 25%, and have a maximum life of ten years from the date of grant. The Company has also issued RSUs which generally vest over a three quarters to four year period. 2007 Equity Incentive Plan In August 2007, GigOptix LLC adopted the GigOptix LLC Equity Incentive Plan (the “2007 Plan”). The 2007 Plan provided for grants of options to purchase membership units, membership awards and restricted membership units to employees, officers and non-employee directors, and upon the completion of the merger with Lumera were converted into grants of up to 632,500 shares of stock. Vesting periods are determined by the Board of Directors and generally provide for stock options to vest over a four-year period and expire ten years from date of grant. Vesting for certain shares of restricted stock is contingent upon both service and performance criteria. The 2007 Plan was terminated upon the completion of merger with Lumera on December 9, 2008 and the remaining 864 stock in options not granted under the 2007 Plan were cancelled. No shares of the Company’s common stock remain available for issuance of new grants under the 2007 Plan other than for satisfying exercises of stock options granted under this plan prior to its termination. As of June 28, 2015, options to purchase a total of 376,436 shares of common stock and 4,125 warrants to purchase common stock were outstanding. Lumera 2000 and 2004 Stock Option Plan In December 2008, in connection with the merger with Lumera, the Company assumed the existing Lumera 2000 Equity Incentive Plan and the Lumera 2004 Stock Option Plan (the “Lumera Plan”). All unvested options granted under the Lumera Plan were assumed by the Company as part of the merger. All contractual terms of the assumed options remain the same, except for the converted number of shares and exercise price based on merger conversion ratio of 0.125. As of June 28, 2015, no additional options can be granted under the Lumera Plan, and options to purchase a total of 57,191 shares of common stock were outstanding. Warrants As of June 28, 2015, the Company had a total of 158,240 warrants to purchase common stock outstanding under all warrant arrangements. During the six months ended June 28, 2015, no warrants were exercised and 500,000 warrants expired. Some of the warrants have anti-dilution provisions which adjust the number of warrants available to the holder such as, but not limited to, stock dividends, stock splits and certain reclassifications, exchanges, combinations or substitutions. These provisions are specific to each warrant agreement. Stock-based Compensation Expense The following table summarizes the Company’s stock-based compensation expense for the three and six months ended June 28, 2015 and June 29, 2014 (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Cost of revenue $ 139 $ 88 $ 221 $ 164 Research and development expense 362 292 609 567 Selling, general and administrative expense 799 728 1,359 1,387 Restructuring expense - 9 - 9 $ 1,300 $ 1,117 $ 2,189 $ 2,127 For the six months ended June 29, 2014, included in the $2.1 million of stock-based compensation expense was $9,000 in restructuring expense to modify the exercise period and accelerate the vesting of (see Note 7). The Company did not grant any options during the three months ended June 28, 2015. During the three months ended June 29, 2014, the Company granted options to purchase 25,000 of common stock with an estimated total grant-date fair value of $28,000. The Company did not grant any RSUs during the three months ended June 28, 2015. During the three months ended June 29, 2014, the Company granted 70,000 RSUs with a grant-date fair value of $113,000 or $1.62 per share. The Company did not grant any options during the six months ended June 28, 2015. During the six months ended June 29, 2014, the Company granted options to purchase 25,000 of common stock with an estimated total grant-date fair value of $28,000. During the six months ended June 28, 2015 and June 29, 2014, the Company granted 2,815,822 and 1,475,085 RSUs, respectively, with a grant-date fair value of $3.5 million and $2.5 million or $1.25 and $1.70 per share, respectively. As of June 28, 2015, the total compensation cost not yet recognized in connection with unvested stock options and RSUs under the Company’s equity compensation plans was approximately $717,000 and $4.2 million, respectively. Unrecognized compensation will be amortized on a straight-line basis over a weighted-average period of approximately 1.15 years for stock options and approximately 2.87 years for RSUs. Stock Option and RSU Activity The following is a summary of option activity for the Company’s equity incentive plans, including both the 2008 Plan and other prior plans for which there are outstanding options but no new grants since the 2008 Plan was adopted: Options Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term, in Years Outstanding, December 31, 2014 8,801,160 $ 2.35 5.91 Granted - Exercised (32,747 ) $ 0.96 Forfeited/Expired (522,885 ) $ 3.12 Ending balance, June 28, 2015 8,245,528 $ 2.31 5.37 Vested and exercisable and expected to vest, June 28, 2015 8,227,603 $ 2.31 5.37 Vested and exercisable, June 28, 2015 7,661,443 $ 2.33 5.23 The aggregate intrinsic value of options vested, exercisable and expected to vest, based on the fair value of the underlying stock options as of June 28, 2015 was approximately $1.3 million. The aggregate intrinsic value reflects the difference between the exercise price of the underlying stock options and the Company’s closing share price of $1.60 as of June 26, 2015. The total intrinsic value of options exercised during the six months ended June 28, 2015 was approximately $11,000. During the six months ended June 29, 2014 RSUs are converted into shares of the Company’s common stock upon vesting on a one-for-one basis. Typically, vesting of RSUs is subject to the employee’s continuing service to the Company. RSUs generally vest over a period of three quarters to four years and are expensed ratably on a straight line basis over their respective vesting period net of estimated forfeitures. The fair value of the RSUs granted is the product of the number of shares granted and the grant date fair value of the Company’s common stock. The following is a summary of RSU activity for the indicated periods: Number of Shares Weighted- Average Grant Date Fair Value Weighted- Average Remaining Vesting Term, Years Aggregate (In thousands) Outstanding, December 31, 2014 1,915,858 $ 1.55 3.11 $ 1,990 Granted 2,815,822 1.25 Released (980,899 ) 1.37 Forfeited/expired (100,137 ) 1.91 Outstanding, June 28, 2015 3,650,644 $ 1.36 2.87 $ 5,841 The majority of the RSUs that vested in the six months ended June 28, 2015 were net-share settled such that the Company withheld shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. The total shares withheld were based on the value of the RSUs on their vesting date as determined by the Company’s closing stock price. These net-share settlements had the effect of share repurchases by the Company as they reduced and retired the number of shares that would have otherwise been issued as a result of the vesting and did not represent an expense to the Company. For the six months ended June 28, 2015, 980,899 shares of RSUs vested with an intrinsic value of approximately $1.4 million. The Company withheld 351,000 shares to satisfy approximately $501,000 of employees’ minimum tax obligation on the vested RSUs.

RESTRUCTURING

RESTRUCTURING	6 Months Ended
	Jun. 28, 2015
RESTRUCTURING [Abstract]
RESTRUCTURING	NOTE 7—RESTRUCTURING During the second of quarter of 2014, the Company The components of the restructuring charge included $43,000 of cash expenses for cleanup services, $210,000 of restricted cash and rent deposit forfeiture to move out of the Bothell facility, $45,000 of cash expenses for severance, benefits and payroll taxes and other costs associated with employee terminations, and $9,000 of non-cash expenses associated with the acceleration of RSUs. The total charge for these restructuring activities was $307,000. The following is a summary of the restructuring activity (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Beginning balance $ - $ - $ - $ 30 Charges - 307 - 307 Uses and adjustments - (307 ) - (337 ) Ending balance $ - $ - $ - $ - The Company did not have any restructuring activity during the three and six months ended June 28, 2015.

INVESTMENT IN UNCONSOLIDATED AF

INVESTMENT IN UNCONSOLIDATED AFFILIATE	6 Months Ended
	Jun. 28, 2015
INVESTMENT IN UNCONSOLIDATED AFFILIATE [Abstract]
INVESTMENT IN UNCONSOLIDATED AFFILIATE	NOTE 8— In February 2014, together with CPqD, the Company incepted a new joint venture, named BrP, of which the Company owns 49% and CPqD owns 51% of BrP. It is based in Campinas, Brazil. BrP will be a provider of advanced high-speed devices for optical communications and integrated transceiver components for information networks. It is engaged in research and development of SiPh advanced electro-optical products. The Company transferred into BrP its knowledge-base and intellectual property of TM technology. The Company transferred to CPqD, its inventory related to the TM platform and the complete production line equipment that previously resided at its Bothell, Washington, facility for CPqD to use for the BrP joint venture. As of the transfer date, the Company’s net book value of the inventory and property and equipment was $245,000 and $211,000, respectively. During the second quarter of 2015, the Company made an additional capital contribution of $3,000 pursuant BrP’s Amended Articles of Association which resulted in a $459,000 investment in BrP. For the three and six months ended June 28, 2015, the Company’s allocated portion of BrP’s results was a loss of $3,000. For the three and six months ended June 29, 2014, the Company’s allocated portion of BrP’s results was a loss of $331,000. Since the Company’s share of the loss exceeded the Company’s carrying cost of its investment in BrP, the Company’s investment in an unconsolidated affiliate was written down to zero as of December 31, 2014 and June 28, 2015.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 28, 2015
INCOME TAXES [Abstract]
INCOME TAXES	NOTE 9—INCOME TAXES The Company recorded a provision for income taxes of $16,000 and $25,000 for the three and six months ended June 28, 2015, respectively, and $21,000 and $31,000 for the three and six months ended June 29, 2014, respectively. the three months ended June 28, 2015 was 3% based upon the Company’s income before provision for income taxes. The income tax provision for the three and six months ended June 28, 2015 and June 29, 2014 In assessing the potential realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. In making such a determination, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial performance. In order to support a conclusion that a valuation allowance is not needed, positive evidence of sufficient quantity and quality is necessary to overcome negative evidence. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences become deductible. A valuation allowance has been recorded for the entire deferred tax asset as a result of uncertainties regarding realization of the asset including lack of profitability through June 28, 2015 and the uncertainty over future operating profitability and taxable income. The Company will continue to evaluate the potential realization of the deferred tax assets on a quarterly basis. The Company files tax returns in the U.S. federal, U.S. state and foreign tax jurisdictions. The Company’s major tax jurisdictions are the U.S., California, Switzerland, Germany, Israel and Japan. The Company’s fiscal years through June 28, 2015 remain subject to examination by the tax authorities for U.S. federal, U.S. state and foreign tax purpose.

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	6 Months Ended
	Jun. 28, 2015
NET INCOME (LOSS) PER SHARE [Abstract]
NET LOSS PER SHARE	NOTE 10—NET INCOME (LOSS) PER SHARE The following table summarizes total securities outstanding which were not included in the calculation of diluted net income (loss) per share because to do so would have been anti-dilutive: Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Stock options and RSUs 6,013,177 12,276,382 11,896,172 12,276,382 Common stock warrants 156,162 683,240 158,240 683,240 Total 6,169,339 12,959,622 12,054,412 12,959,622

SEGMENT AND GEOGRAPHIC INFORMAT

SEGMENT AND GEOGRAPHIC INFORMATION	6 Months Ended
	Jun. 28, 2015
SEGMENT AND GEOGRAPHIC INFORMATION [Abstract]
SEGMENT AND GEOGRAPHIC INFORMATION	NOTE 11—SEGMENT AND GEOGRAPHIC INFORMATION The Company has determined that it operates as a single operating and reportable segment. The following tables reflect the results of the Company’s reportable segment consistent with the management system used by the Company’s Chief Executive Officer, the chief operating decision maker. The following table summarizes revenue by geographic region (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 North America $ 3,231 33 % $ 1,875 23 % $ 6,262 33 % $ 4,102 27 % Asia 2,757 28 % 2,456 31 % 5,576 30 % 4,614 30 % Europe 3,702 38 % 3,647 45 % 6,655 35 % 6,556 42 % Other 150 1 % 59 1 % 407 2 % 151 1 % $ 9,840 100 % $ 8,037 100 % $ 18,900 100 % $ 15,423 100 % The Company determines geographic location of its revenue based upon the destination of shipments of its products. For the three months ended June 28, 2015, two customers accounted for greater than 10% of total revenue and combined they accounted for 40% of total revenue, of which the largest accounted for 25% of the Company’s total revenue. For the three months ended June 29, 2014, two customers accounted for greater than 10% of total revenue and combined they accounted for 35% of total revenue, of which the largest accounted for 24% of the Company’s total revenue. For the six months ended June 28, 2015, three customers accounted for 50% of total revenue, of which the largest accounted for 27% of the Company’s total revenue. For the six months ended June 29, 2014, one customer accounted for 26% of total revenue. During the three months ended June 28, 2015, the United States, Italy, and Hong Kong accounted for 31%, 31%, and 13% of total revenue, respectively. During the three months ended June 29, 2014, Italy and the United States accounted for 36% and 20% of total revenue, respectively. No other countries accounted for more than 10% of the Company’s total revenue during the three months ended June 28, 2015 and June 29, 2014. During the six months ended June 28, 2015, Italy, the United States, and Hong Kong accounted for 30%, 29%, and 13% of total revenue, respectively. During the six months ended June 29, 2014, Italy, the United States, and Japan accounted for 36%, 24%, and 10% of total revenue, respectively. No other countries accounted for more than 10% of the Company’s total revenue during the six months ended June 28, 2015 and June 29, 2014. The following table summarizes revenue by product line (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 HSC $ 6,586 $ 5,609 $ 12,787 $ 10,891 Industrial 3,254 2,428 6,113 4,532 Total revenue $ 9,840 $ 8,037 $ 18,900 $ 15,423 The following table summarizes long-lived assets by country (in thousands): June 28, 2015 December 31, 2014 United States $ 2,147 93 % $ 1,687 88 % Switzerland 162 7 % 229 12 % $ 2,309 100 % $ 1,916 100 % Long-lived assets, comprised of property and equipment, are reported based on the location of the assets as of each balance sheet date.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 28, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12—COMMITMENTS AND CONTINGENCIES Commitments Leases The Company leases its domestic and foreign sales offices under non-cancelable operating leases. These leases contain various expiration dates and renewal options. The Company also leases certain software licenses under operating leases. Total facilities rent expense for the three and six months ended June 28, 2015 was $117,000 and 228,000, respectively, and for the three and six months ended June 29, 2014 was $93,000 and $234,000, respectively. As of April 2014, the Company moved out of its Bothell, Washington facility which comprised 11,666 square feet and entered into a one-year lease located in Bellevue, Washington which comprises approximately 2,100 square feet. In April 2015, the Company entered into a new one-year lease located in Bellevue, Washington which comprises approximately 1,951 square feet. Aggregate non-cancelable future minimum rental payments under capital and operating leases are as follows (in thousands): Capital Leases Operating Leases Years ending December 31, Minimum lease payments Minimum lease payments 2015 (remainder of year) $ 2 $ 259 2016 3 516 2017 3 130 2018 - 73 2019 - 73 Thereafter - 61 Total minimum lease payments 8 $ 1,112 Less: Amount representing interest - Total capital lease obligations 8 Less: current portion (3 ) Long-term portion of capital lease obligations $ 5 Legal Contingencies From time to time, the Company may become involved in legal proceedings, claims and litigation arising in the ordinary course of business. When the Company believes a loss is probable and can be reasonably estimated, the Company accrues the estimated loss in the consolidated financial statements. Where the outcome of these matters is not determinable, the Company does not make a provision in the financial statements until the loss, if any, is probable and can be reasonably estimated or the outcome becomes known. There are no known losses at this time.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 28, 2015
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 13—RECENT ACCOUNTING PRONOUNCEMENTS In July 2015, the Financial Accounting Standard Board issued an accounting standard applicable to inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This standard is effective for annual reporting periods beginning after December 15, 2016 and early adoption is permitted. The Company is currently evaluating the impact of the adoption on the Company’s condensed consolidated financial statements.

ORGANIZATION AND BASIS OF PRE20

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 28, 2015
ORGANIZATION AND BASIS OF PRESENTATION [Abstract]
Organization	Organization GigOptix Inc. (“GigOptix” or the “Company”) is a leading fabless supplier of high speed semiconductor components that enable end-to-end information streaming over the networks. Its products address the needs of emerging high-growth markets, such as long haul and metro telecommunications (“telecom”) applications, as well as Cloud and datacenter connectivity, point-to-point wireless backhaul, and interactive high speed applications for the consumer electronics, industrial, defense and avionics industries. The business is made up of two product lines: the High-Speed Communications (“HSC”) product line and the Industrial product line. Its products are highly customized and typically developed in partnership with key “Lighthouse” customers, generating engineering project revenues through the development stage and larger future product revenues through these customers and general market availability. The HSC product line offers a broad portfolio of high performance semiconductor devices and multi-chip-modules (“MCMs”) aimed predominantly at the telecom, datacom and consumer-electronics markets, and includes, among others, (i) mixed signal radio frequency integrated circuits (“RFIC”) at 50 GHz and above; (ii) 10 to 400 gigabit per second (“Gbps”) laser and optical-modulator drivers, and trans-impedance amplifiers (“TIA”); (iii) power amplifiers and transceivers for microwave and millimeter monolithic microwave integrated circuit (“MMIC”) wireless applications at frequencies higher than 50 GHz; (iv) integrated systems in a package (“SIP”) solutions for both fiber-optic and wireless communication systems; and (v) radio frequency (“RF”) chips for various consumer applications such as global navigation satellite systems (“GNSS”). The Industrial product line offers a wide range of digital and mixed-signal application specific integrated circuit (“ASIC”) solutions for various industrial applications used in the military, avionics, automotive, security and surveillance, medical and communications markets. GigOptix, Inc., the successor to GigOptix LLC, was formed as a Delaware corporation in March 2008 in order to facilitate a combination between GigOptix LLC and Lumera Corporation (“Lumera”). Before the combination, GigOptix LLC acquired the assets of iTerra Communications LLC in July 2007 (“iTerra”) and Helix Semiconductors AG (“Helix”) in January 2008. On November 9, 2009, GigOptix acquired ChipX, Incorporated (“ChipX”). On June 17, 2011, GigOptix acquired Endwave Corporation (“Endwave”). As a result of the acquisitions, Helix, Lumera, ChipX and Endwave all became wholly-owned subsidiaries of GigOptix. In March 2013, the Company established a German wholly-owned subsidiary, GigOptix GmbH; however it is currently in the process of being dissolved. In February 2014, together with Fundação CPqD – Centro De Pesquisa e Desenvolvimento em Telecomunicações (“CPqD”), the Company formed a new joint venture of which the Company owns 49% and CPqD owns 51%, BrPhotonics Produtos Optoeletrônicos LTDA. (“BrP”), based in Campinas, Brazil, which will be a provider of advanced high-speed devices for optical communications and integrated transceiver components that enable information streaming over fiber-optics communication networks. This joint venture is also engaged in research and development of Silicon-Photonics (“SiPh”) advanced electro-optical products. During the second quarter of 2014, the Company transferred all of its inventory and assets related to the Thin Film Polymer on Silicon TM ” platform and the production line equipment for use by BrP (see also Note 8). In June 30, 2014, the Company acquired, for cash only by way of assuming specified liabilities, substantially all of the assets of Tahoe RF Semiconductor, Inc. (“Tahoe RF”). In June 2015, the Company established a Japanese wholly-owned subsidiary, GigOptix Japan GK.
Basis of Presentation	Basis of Presentation The Company’s fiscal year ends on December 31. For quarterly reporting, the Company employs a five-week, four-week, four-week, reporting period. The second quarter of 2015 ended on Sunday, June 28, 2015. The second quarter of 2014 ended on Sunday, June 29, 2014. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements as of June 28, 2015 and for the three and six months ended June 28, 2015 and June 29, 2014, have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions of Article 10 of Securities and Exchange Commission (“SEC”) Regulation S-X. The statements include the accounts of the Company and all of its subsidiaries and they do not include all of the information and footnotes required by such accounting principles for annual financial statements. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial position as of June 28, 2015, . The condensed consolidated results of operations for the three and six months ended June 28, 2015 are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year ending December 31, 2015. 2014 Form 10-K.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reported periods. These judgments can be subjective and complex, and consequently, actual results could differ materially from those estimates and assumptions. Descriptions of these estimates and assumptions are included in the 2014 Form 10-K and the Company encourages you to read its 2014 Form 10-K for more information about such estimates and assumptions.

BALANCE SHEET COMPONENTS (Table

BALANCE SHEET COMPONENTS (Tables)	6 Months Ended
	Jun. 28, 2015
BALANCE SHEET COMPONENTS [Abstract]
Accounts receivable, net	Accounts receivable, net consisted of the following (in thousands): June 28, December 31, 2015 2014 Accounts receivable $ 7,889 $ 8,003 Allowance for doubtful accounts (46 ) (48 ) $ 7,843 $ 7,955
Inventories	Inventories consisted of the following (in thousands): June 28, December 31, 2015 2014 Raw materials $ 3,180 $ 1,676 Work in process 1,997 1,421 Finished goods 1,647 2,042 $ 6,824 $ 5,139
Property and equipment, net	Property and equipment, net consisted of the following (in thousands, except depreciable life): Life June 28, December 31, (In years) 2015 2014 Network and laboratory equipment 3 – 5 $ 12,544 $ 11,252 Computer software and equipment 2 – 3 3,959 3,877 Furniture and fixtures 3 – 7 165 165 Office equipment 3 – 5 134 131 Leasehold improvements 1 – 5 298 276 17,100 15,701 Accumulated depreciation and amortization (14,791 ) (13,785 ) Property and equipment, net $ 2,309 $ 1,916
Accrued and other current liabilities	Accrued and other current liabilities consisted of the following (in thousands): June 28, December 31, 2015 2014 Amounts billed to the U.S. government in excess of approved rates $ 191 $ 191 Warranty liability 357 334 Customer deposits 671 599 Capital lease obligations, current portion 3 3 Sales return reserve 470 412 Deferred revenue 342 327 Other 603 1,036 $ 2,637 $ 2,902
Summary of changes in warranty accrual	Changes in the Company’s product warranty liability during the six months ended June 28, 2015 and June 29, 2014 are as follows (in thousands): Six months ended June 28, 2015 June 29, 2014 Beginning balance $ 334 $ 330 Warranties accrued 280 226 Warranties settled or reversed (257 ) (211 ) Ending balance $ 357 $ 345

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Jun. 28, 2015
FAIR VALUE [Abstract]
Financial assets and liabilities measured at fair value, recurring basis	The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 28, 2015 and December 31, 2014 (in thousands): Fair Value Measurements Using Carrying Value Quoted Prices in Active Identical Significant Other Inputs Significant Unobservable Inputs June 28, 2015: Assets: Cash equivalents: Money market funds $ 12,362 $ 12,362 $ - $ - $ 12,362 $ 12,362 $ - $ - Current liabilities: Liability warrants $ 12 $ - $ - $ 12 December 31, 2014: Assets: Cash equivalents: Money market funds $ 12,360 $ 12,360 $ - $ - $ 12,360 $ 12,360 $ - $ - Current liabilities: Liability warrants $ 8 $ - $ - $ 8
Estimate of fair value for warrants assumptions	The fair value of the warrants was estimated using the following assumptions: As of June 28, 2015 As of December 31, 2014 Stock price $ 1.60 $ 1.20 Exercise price $ 2.51 $ 2.51 Expected life 2.05 years 2.55 years Risk-free interest rate 0.72 % 1.10 % Volatility 69 % 69 % Fair value per share $ 0.40 $ 0.27
Warrants subject to liability accounting	The following table summarizes the warrants subject to liability accounting as of June 28, 2015 and December 31, 2014 (in thousands, except share and per share amounts) (see also Note 6): Three Months Ended June 28, 2015 Six Months Ended June 28, 2015 Holder Original Warrants Adjusted Warrants Grant Date Expiration Date Price per Share Fair Value June 28, 2015 Fair Value December 31, 2014 Exercise of Warrants Change in Fair Value Exercise of Warrants Change in Fair Value Related Agreement Bridge Bank 20,000 29,115 4/7/2010 7/7/2017 $ 2.51 $ 12 $ 8 - $ 5 - $ 4 Credit Agreement
Change in the fair value of level 3 liabilities	The change in the fair value of the Level 3 liability warrants during the three and six months ended June 28, 2015 is as follows (in thousands): Fair value as of December 31, 2014 $ 8 Exercise of warrants - Change in fair value (1 ) Fair value as of March 29, 2015 7 Exercise of warrants - Change in fair value 5 Fair value as of June 28, 2015 $ 12

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL (Tables)	6 Months Ended
	Jun. 28, 2015
INTANGIBLE ASSETS AND GOODWILL [Abstract]
Intangible assets	Intangible assets consist of the following (in thousands): June 28, 2015 December 31, 2014 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $ 3,277 $ (2,331 ) $ 946 $ 3,277 $ (2,119 ) $ 1,158 Existing technology 3,783 (3,084 ) 699 3,783 (2,881 ) 902 Order backlog 732 (732 ) - 732 (732 ) - Patents 457 (405 ) 52 457 (402 ) 55 Trade name 659 (409 ) 250 659 (380 ) 279 Total $ 8,908 $ (6,961 ) $ 1,947 $ 8,908 $ (6,514 ) $ 2,394
Amortization of intangible assets	For the three and six months ended June 28, 2015 and June 29, 2014, amortization of intangible assets was as follows (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Cost of revenue $ 104 $ 103 $ 207 $ 206 Selling, general and administrative expense 120 121 240 241 $ 224 $ 224 $ 447 $ 447
Estimated future amortization expense	Estimated future amortization expense related to intangible assets as of June 28, 2015 is as follows (in thousands): Years ending December 31, 2015 (remainder of year) $ 446 2016 869 2017 487 2018 63 2019 54 Thereafter 28 Total $ 1,947

STOCKHOLDERS' EQUITY AND STOC24

STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 28, 2015
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION [Abstract]
Schedule of stock-based compensation expense	The following table summarizes the Company’s stock-based compensation expense for the three and six months ended June 28, 2015 and June 29, 2014 (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Cost of revenue $ 139 $ 88 $ 221 $ 164 Research and development expense 362 292 609 567 Selling, general and administrative expense 799 728 1,359 1,387 Restructuring expense - 9 - 9 $ 1,300 $ 1,117 $ 2,189 $ 2,127
Summary of option activity	The following is a summary of option activity for the Company’s equity incentive plans, including both the 2008 Plan and other prior plans for which there are outstanding options but no new grants since the 2008 Plan was adopted: Options Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term, in Years Outstanding, December 31, 2014 8,801,160 $ 2.35 5.91 Granted - Exercised (32,747 ) $ 0.96 Forfeited/Expired (522,885 ) $ 3.12 Ending balance, June 28, 2015 8,245,528 $ 2.31 5.37 Vested and exercisable and expected to vest, June 28, 2015 8,227,603 $ 2.31 5.37 Vested and exercisable, June 28, 2015 7,661,443 $ 2.33 5.23
Summary of RSU activity	The following is a summary of RSU activity for the indicated periods: Number of Shares Weighted- Average Grant Date Fair Value Weighted- Average Remaining Vesting Term, Years Aggregate (In thousands) Outstanding, December 31, 2014 1,915,858 $ 1.55 3.11 $ 1,990 Granted 2,815,822 1.25 Released (980,899 ) 1.37 Forfeited/expired (100,137 ) 1.91 Outstanding, June 28, 2015 3,650,644 $ 1.36 2.87 $ 5,841

RESTRUCTURING (Tables)

RESTRUCTURING (Tables)	6 Months Ended
	Jun. 28, 2015
RESTRUCTURING [Abstract]
Summary of restructuring activity	The following is a summary of the restructuring activity (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Beginning balance $ - $ - $ - $ 30 Charges - 307 - 307 Uses and adjustments - (307 ) - (337 ) Ending balance $ - $ - $ - $ -

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	6 Months Ended
	Jun. 28, 2015
NET INCOME (LOSS) PER SHARE [Abstract]
Antidilutive securities excluded from computation of earnings per share	The following table summarizes total securities outstanding which were not included in the calculation of diluted net income (loss) per share because to do so would have been anti-dilutive: Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 Stock options and RSUs 6,013,177 12,276,382 11,896,172 12,276,382 Common stock warrants 156,162 683,240 158,240 683,240 Total 6,169,339 12,959,622 12,054,412 12,959,622

SEGMENT AND GEOGRAPHIC INFORM27

SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	6 Months Ended
	Jun. 28, 2015
SEGMENT AND GEOGRAPHIC INFORMATION [Abstract]
Revenue by geographic region and long lived assets by country	The following table summarizes revenue by geographic region (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 North America $ 3,231 33 % $ 1,875 23 % $ 6,262 33 % $ 4,102 27 % Asia 2,757 28 % 2,456 31 % 5,576 30 % 4,614 30 % Europe 3,702 38 % 3,647 45 % 6,655 35 % 6,556 42 % Other 150 1 % 59 1 % 407 2 % 151 1 % $ 9,840 100 % $ 8,037 100 % $ 18,900 100 % $ 15,423 100 %
Revenue by product line	The following table summarizes revenue by product line (in thousands): Three Months Ended Six Months Ended June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014 HSC $ 6,586 $ 5,609 $ 12,787 $ 10,891 Industrial 3,254 2,428 6,113 4,532 Total revenue $ 9,840 $ 8,037 $ 18,900 $ 15,423
Long lived assets by country	The following table summarizes long-lived assets by country (in thousands): June 28, 2015 December 31, 2014 United States $ 2,147 93 % $ 1,687 88 % Switzerland 162 7 % 229 12 % $ 2,309 100 % $ 1,916 100 %

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 28, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
Aggregate non-cancelable future minimum rental payments	Aggregate non-cancelable future minimum rental payments under capital and operating leases are as follows (in thousands): Capital Leases Operating Leases Years ending December 31, Minimum lease payments Minimum lease payments 2015 (remainder of year) $ 2 $ 259 2016 3 516 2017 3 130 2018 - 73 2019 - 73 Thereafter - 61 Total minimum lease payments 8 $ 1,112 Less: Amount representing interest - Total capital lease obligations 8 Less: current portion (3 ) Long-term portion of capital lease obligations $ 5

ORGANIZATION AND BASIS OF PRE29

ORGANIZATION AND BASIS OF PRESENTATION (Details) - ProductLine	6 Months Ended
	Jun. 28, 2015	Feb. 28, 2014
Organization [Abstract]
Number of product lines	2
CPqD [Member]
Schedule of Investments [Line Items]
Joint venture ownership percentage (in hundredths)		51.00%
GigOptix, Inc. [Member]
Schedule of Investments [Line Items]
Joint venture ownership percentage (in hundredths)		49.00%

BALANCE SHEET COMPONENTS (Detai

BALANCE SHEET COMPONENTS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014	Dec. 31, 2014
BALANCE SHEET COMPONENTS [Abstract]
Accounts receivable	$ 7,889,000		$ 7,889,000		$ 8,003,000
Allowance for doubtful accounts	(46,000)		(46,000)		(48,000)
Accounts receivable, net	7,843,000		7,843,000		7,955,000	[1]
Property and equipment [Line Items]
Property and equipment, gross	17,100,000		17,100,000		15,701,000
Accumulated depreciation and amortization	(14,791,000)		(14,791,000)		(13,785,000)
Property and equipment, net	2,309,000		2,309,000		1,916,000	[1]
Depreciation expense related to property and equipment	380,000	$ 548,000	795,000	$ 1,100,000
Amortization	281,000	125,000	533,000	276,000
Inventory, net [Abstract]
Raw materials	3,180,000		3,180,000		1,676,000
Work in process	1,997,000		1,997,000		1,421,000
Finished goods	1,647,000		1,647,000		2,042,000
Inventories	6,824,000		6,824,000		5,139,000	[1]
Other current liabilities [Abstract]
Amounts billed to the U.S. government in excess of approved rates	191,000		191,000		191,000
Warranty liability	357,000		357,000		334,000
Customer deposits	671,000		671,000		599,000
Capital lease obligations, current portion	3,000		3,000		3,000
Sales return reserve	470,000		470,000		412,000
Deferred Revenue	342,000		342,000		327,000
Other	603,000		603,000		1,036,000
Accrued and other current liabilities	2,637,000		$ 2,637,000		2,902,000	[1]
Period of product warranty			1 year
Movement in product warranty liability [Roll Forward]
Beginning balance			$ 334,000	330,000
Warranties accrued			280,000	226,000
Warranties settled or reversed			(257,000)	(211,000)
Ending balance	357,000	$ 345,000	357,000	$ 345,000
Network and Laboratory Equipment [Member]
Property and equipment [Line Items]
Property and equipment, gross	12,544,000		$ 12,544,000		11,252,000
Network and Laboratory Equipment [Member] | Minimum [Member]
Property and equipment [Line Items]
Property and equipment, useful life			3 years
Network and Laboratory Equipment [Member] | Maximum [Member]
Property and equipment [Line Items]
Property and equipment, useful life			5 years
Computer Software and Equipment [Member]
Property and equipment [Line Items]
Property and equipment, gross	3,959,000		$ 3,959,000		3,877,000
Computer Software and Equipment [Member] | Minimum [Member]
Property and equipment [Line Items]
Property and equipment, useful life			2 years
Computer Software and Equipment [Member] | Maximum [Member]
Property and equipment [Line Items]
Property and equipment, useful life			3 years
Furniture And Fixtures [Member]
Property and equipment [Line Items]
Property and equipment, gross	165,000		$ 165,000		165,000
Furniture And Fixtures [Member] | Minimum [Member]
Property and equipment [Line Items]
Property and equipment, useful life			3 years
Furniture And Fixtures [Member] | Maximum [Member]
Property and equipment [Line Items]
Property and equipment, useful life			7 years
Office Equipment [Member]
Property and equipment [Line Items]
Property and equipment, gross	134,000		$ 134,000		131,000
Office Equipment [Member] | Minimum [Member]
Property and equipment [Line Items]
Property and equipment, useful life			3 years
Office Equipment [Member] | Maximum [Member]
Property and equipment [Line Items]
Property and equipment, useful life			5 years
Leasehold Improvements [Member]
Property and equipment [Line Items]
Property and equipment, gross	$ 298,000		$ 298,000		$ 276,000
Leasehold Improvements [Member] | Minimum [Member]
Property and equipment [Line Items]
Property and equipment, useful life			1 year
Leasehold Improvements [Member] | Maximum [Member]
Property and equipment [Line Items]
Property and equipment, useful life			5 years
[1]	The condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements as of that date.

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 24, 2013	Jul. 07, 2010	Jun. 28, 2015	Mar. 29, 2015	Jun. 28, 2015	Dec. 31, 2014	Dec. 16, 2014
Class of Warrant or Right [Line Items]
Additional equity shares issued (in shares)	9,573,750	2,760,000
Share price of additional equity offering (in dollars per share)	$ 1.42	$ 1.75	$ 1.60		$ 1.60	$ 1.20
Fair value assumptions [Abstract]
Stock price (in dollars per share)	$ 1.42	$ 1.75	1.60		1.60	1.20
Exercise price (in dollars per share)			2.51		$ 2.51	$ 2.51
Expected life					2 years 18 days	2 years 6 months 18 days
Risk-free interest rate (in hundredths)					0.72%	1.10%
Volatility (in hundredths)					69.00%	69.00%
Fair value per share (in dollars per share)			$ 0.40		$ 0.40	$ 0.27
Warrants subject to liability accounting [Abstract]
Adjusted warrants (in shares)			158,240		158,240
Price per share (in dollars per share)			$ 5.25		$ 5.25		$ 8.50
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Cash equivalents [Abstract]
Total assets, fair value			$ 12,362		$ 12,362	$ 12,360
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member]
Cash equivalents [Abstract]
Cash equivalents			12,362		12,362	12,360
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Liability Warrants [Member]
Current liabilities [Abstract]
Liability warrants			0		0	0
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Cash equivalents [Abstract]
Total assets, fair value			0		0	0
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Money Market Funds [Member]
Cash equivalents [Abstract]
Cash equivalents			0		0	0
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Liability Warrants [Member]
Current liabilities [Abstract]
Liability warrants			0		0	0
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Cash equivalents [Abstract]
Total assets, fair value			0		0	0
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Money Market Funds [Member]
Cash equivalents [Abstract]
Cash equivalents			0		0	0
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Liability Warrants [Member]
Current liabilities [Abstract]
Liability warrants			12		12	8
Carrying Value [Member] | Recurring [Member]
Cash equivalents [Abstract]
Total assets, fair value			12,362		12,362	12,360
Carrying Value [Member] | Recurring [Member] | Money Market Funds [Member]
Cash equivalents [Abstract]
Cash equivalents			12,362		12,362	12,360
Carrying Value [Member] | Recurring [Member] | Liability Warrants [Member]
Current liabilities [Abstract]
Liability warrants			$ 12		$ 12	8
Liability Warrants [Member]
Warrants subject to liability accounting [Abstract]
Holder					Bridge Bank
Original warrants (in shares)			20,000		20,000
Adjusted warrants (in shares)			29,115		29,115
Grant date					Apr. 7, 2010
Expiration date					Jul. 7, 2017
Price per share (in dollars per share)			$ 2.51		$ 2.51
Fair value			$ 12	$ 8	$ 12	8
Exercise of warrants			0	0	0
Change in fair value			5	(1)	$ 4
Related agreement					Credit Agreement
Change in fair value of Level 3 liability warrants [Roll Forward]
Fair value, beginning of period			7	8	$ 8
Exercise of warrants			0	0	0
Change in fair value			5	(1)	4
Fair value, end of period			$ 12	$ 7	$ 12	$ 8

INTANGIBLE ASSETS AND GOODWIL32

INTANGIBLE ASSETS AND GOODWILL (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross intangible asset	$ 8,908		$ 8,908		$ 8,908
Accumulated amortization	(6,961)		(6,961)		(6,514)
Net intangible asset	1,947		1,947		2,394	[1]
Amortization of intangible assets	224	$ 224	447	$ 447
Cost of Revenue [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	104	103	207	206
Selling, General and Administrative Expenses [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	120	$ 121	240	$ 241
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross intangible asset	3,277		3,277		3,277
Accumulated amortization	(2,331)		(2,331)		(2,119)
Net intangible asset	946		946		1,158
Existing Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross intangible asset	3,783		3,783		3,783
Accumulated amortization	(3,084)		(3,084)		(2,881)
Net intangible asset	699		699		902
Order Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Gross intangible asset	732		732		732
Accumulated amortization	(732)		(732)		(732)
Net intangible asset	0		0		0
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross intangible asset	457		457		457
Accumulated amortization	(405)		(405)		(402)
Net intangible asset	52		52		55
Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Gross intangible asset	659		659		659
Accumulated amortization	(409)		(409)		(380)
Net intangible asset	$ 250		$ 250		$ 279
[1]	The condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements as of that date.

INTANGIBLE ASSETS AND GOODWILL,

INTANGIBLE ASSETS AND GOODWILL, Schedule of Acquired Finite-Lived Intangible Asset by Major Class (Details)	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 28, 2015USD ($)	Sep. 28, 2014USD ($)	Jun. 28, 2015USD ($)Employee	Dec. 31, 2014USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill related to acquisition	$ 10,395,000		$ 10,395,000	$ 10,306,000	[1]
Future amortization expense [Abstract]
2,015	446,000		446,000
2,016	869,000		869,000
2,017	487,000		487,000
2,018	63,000		63,000
2,019	54,000		54,000
Thereafter	28,000		28,000
Total	1,947,000		1,947,000
Tahoe RF [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill related to acquisition	535,000		$ 535,000
Goodwill acquired due to acquisition		$ 446,000
Liabilities incurred				446,000
Liabilities assumed - current				20,000
Number of employees added as part of acquisition | Employee			10
Tax and legal expenses	89,000
Liabilities incurred maximum	254,000		$ 254,000	$ 254,000
Bonus payable to employees	128,000
Retention bonus payable, during the period July 2016 through July 2020			$ 70,000
Number of employees remaining and payable retention bonus | Employee			8
Accrued bonuses noncurrent	$ 109,000		$ 109,000
[1]	The condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements as of that date.

CREDIT FACILITIES (Details)

CREDIT FACILITIES (Details) - Jun. 28, 2015 - Line of Credit - Silicon Valley Bank [Member] - USD ($) $ in Millions	Total
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 7
Borrowing base percentage used for maximum borrowing capacity (in hundredths)	80.00%
Debt instrument, increase in default interest rate (in hundredths)	5.00%
Debt instrument, default interest rate actually increased (in hundredths)	3.00%
Loan agreement expiration date	May 6, 2016
Amount outstanding	$ 0
Prime Rate [Member]
Line of Credit Facility [Line Items]
Debt instrument, applicable interest rate (in hundredths)	0.60%
Debt instrument, applicable interest rate after decrease (in hundredths)	0.40%

STOCKHOLDERS' EQUITY AND STOC35

STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Details) - $ / shares	6 Months Ended
	Jun. 28, 2015	Dec. 31, 2014	Dec. 16, 2014	Nov. 30, 2014	Jan. 06, 2012	Dec. 31, 2008
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Fractional share of preferred stock each preferred share purchase right is entitled to (in shares)	1
Common and preferred stock [Abstract]
Common stock, authorized (in shares)	100,000,000	100,000,000		100,000,000		50,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001		$ 0.001		$ 0.001
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Stockholders rights plan number of years to extend expiration date	3 years
Stockholders rights plan expiration date	Dec. 16, 2017
Exercise price per share (in dollars per share)	$ 5.25		$ 8.50
Common stock dividends, number of preferred stock purchase rights per share (in shares)	1				1
Minimum ownership percentage of beneficial owner for exercisability of rights to purchase preferred stock to be triggered (in hundredths)	10.00%
Minimum percentage of additional purchase of outstanding shares by existing owner of 10 percent or more for exercisability of rights to purchase preferred stock to be triggered (in hundredths)	1.00%
Preferred stock, voting rights	Each share of preferred stock has voting rights equal to one thousand shares of common stock
Series A Junior Preferred Stock [Member]
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock, authorized (in shares)	750,000
Fractional share of preferred stock each preferred share purchase right is entitled to (in shares)	1

STOCKHOLDERS' EQUITY AND STOC36

STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Warrants (Details) - Jun. 28, 2015 - shares	Total
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION [Abstract]
Warrants outstanding (in shares)	158,240
Number of warrants exercised (in shares)	0
Number of warrants expired (in shares)	500,000

STOCKHOLDERS' EQUITY AND STOC37

STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Share-based Compensation Arrangements by Share-based Payment Award (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014	Dec. 31, 2014	Jun. 26, 2015	Dec. 24, 2013	Jul. 07, 2010	Dec. 31, 2008
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding (in shares)	158,240		158,240
Stock price (in dollars per share)	$ 1.60		$ 1.60		$ 1.20		$ 1.42	$ 1.75
Total grant date fair value options	$ 0	$ 28,000	$ 28,000	$ 0
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 717,000		$ 717,000
Weighted average period of recognition for unrecognized compensation cost			1 year 1 month 24 days
Stock price (in dollars per share)						$ 1.60
Stock options activity, number of shares [Roll Forward]
Granted (in shares)	0	25,000	0	25,000
Aggregate Intrinsic Value [Abstract]
Aggregate intrinsic value, exercised			$ 11,000	$ 18,000
Aggregate intrinsic value, vested and expected to vest	$ 1,300,000		1,300,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 4,200,000		$ 4,200,000
Weighted average period of recognition for unrecognized compensation cost			2 years 10 months 13 days
Restricted stock activity, number of shares [Roll Forward]
Outstanding, beginning of period (in shares)			1,915,858
Granted (in shares)		70,000	2,815,822	1,475,085
Released (in shares)			(980,899)
Forfeited/expired (in shares)			(100,137)
Outstanding, end of period (in shares)	3,650,644		3,650,644		1,915,858
Total grant date fair value		$ 113,000	$ 3,500,000	$ 2,500,000
Restricted stock activity, Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding, beginning of period (in dollars per share)			$ 1.55
Granted (in dollars per share)		$ 1.62	1.25	$ 1.70
Released (in dollars per share)			1.37
Forfeited/expired (in dollars per share)			1.91
Outstanding, end of period (in dollars per share)	$ 1.36		$ 1.36		$ 1.55
Restricted stock activity, Weighted-average Remaining Vesting Term, Years [Abstract]
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms			2 years 10 months 13 days		3 years 1 month 10 days
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms			2 years 10 months 13 days		3 years 1 month 10 days
Restricted stock activity, Aggregate Intrinsic Value [Roll Forward]
Aggregate intrinsic value outstanding beginning balance			$ 1,990,000
Aggregate intrinsic value outstanding ending balance	$ 5,841,000		5,841,000		$ 1,990,000
Aggregate intrinsic value of vested and expected to vest awards	$ 1,400,000		$ 1,400,000
Shares withheld to satisfy minimum tax obligation (in shares)			351,000
Amount withheld to satisfy minimum tax obligation			$ 501,000
Restricted Stock Units (RSUs) [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			9 months
Restricted Stock Units (RSUs) [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
2007 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	632,500		632,500
2007 Equity Incentive Plan [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Life from date of grant			10 years
Stock options cancelled (in shares)			864
Stock options activity, number of shares [Roll Forward]
Outstanding, ending balance (in shares)	376,436		376,436
2007 Equity Incentive Plan [Member] | Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding (in shares)	4,125		4,125
2008 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	21,000,000		21,000,000		16,624,634				2,500,000
Automatic annual increase in shares authorized			lesser of (i) 5% of the number of shares of common stock outstanding as of the Company’s immediately preceding fiscal year, or (ii) a number of shares determined by the Board of Directors
Percentage of outstanding common stock (in hundredths)			5.00%
Automatic increase in number of shares reserved for future issuance (in shares)					1,655,604
Number of options and restricted stock units outstanding (in shares)	11,462,545		11,462,545
2008 Equity Incentive Plan [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Cliff vesting per year (in hundredths)			25.00%
Life from date of grant			10 years
Stock options activity, number of shares [Roll Forward]
Outstanding, ending balance (in shares)	11,462,545		11,462,545
2008 Equity Incentive Plan [Member] | Stock Options [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of stock options as percentage of fair market value on date of grant (in hundredths)	100.00%		100.00%
2008 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	3,003,051		3,003,051
2008 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 quarters
2008 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
2008 Equity Incentive Plan [Member] | 10% Stockholder [Member] | Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of stock options as percentage of fair market value on date of grant (in hundredths)	110.00%		110.00%
Lumera 2000 and 2004 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Merger conversion ratio (in hundredths)			12.50%
Lumera 2000 and 2004 Stock Option Plan [Member] | Stock Options [Member]
Stock options activity, number of shares [Roll Forward]
Outstanding, ending balance (in shares)	57,191		57,191
Equity Incentive Plans 2000 through 2008 [Member] | Stock Options [Member]
Stock options activity, number of shares [Roll Forward]
Outstanding, beginning of year (in shares)			8,801,160
Granted (in shares)			0
Exercised (in shares)			(32,747)
Forfeited/Expired (in shares)			(522,885)
Outstanding, ending balance (in shares)	8,245,528		8,245,528		8,801,160
Vested and exercisable and expected to vest (in shares)	8,227,603		8,227,603
Vested and exercisable (in shares)	7,661,443		7,661,443
Stock option activity, weighted-average exercise price [Roll Forward]
Weighted average exercise price, beginning balance (in dollars per shares)			$ 2.35
Weighted average exercise price, exercised (in dollars per shares)			0.96
Weighted average exercise price, forfeited/expired (in dollars per shares)			3.12
Outstanding, ending balance (in dollars per shares)	$ 2.31		2.31		$ 2.35
Weighted average exercise price, vested and exercisable and expected to vest (in dollars per share)	2.31		2.31
Weighted average exercise price, vested and exercisable (in dollars per share)	$ 2.33		$ 2.33
Weighted average remaining contractual term [Abstract]
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2			5 years 4 months 13 days		5 years 10 months 28 days
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2			5 years 4 months 13 days		5 years 10 months 28 days
Weighted average remaining contractual term, vested and exercisable and expected to vest			5 years 4 months 13 days
Weighted average remaining contractual term, vested and exercisable			5 years 2 months 23 days

STOCKHOLDERS' EQUITY AND STOC38

STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock based compensation expense	$ 1,300	$ 1,117	$ 2,189	$ 2,127
Cost of Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock based compensation expense	139	88	221	164
Research and Development Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock based compensation expense	362	292	609	567
Selling, General and Administrative Expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock based compensation expense	799	728	1,359	1,387
Restructuring Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock based compensation expense	$ 0	$ 9	$ 0	$ 9

RESTRUCTURING (Details)

RESTRUCTURING (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	$ 307,000	$ 0	$ 307,000
Summary of restructuring activity [Roll forward]
Beginning balance	0	0	0	30,000
Charges	0	307,000	0	307,000
Uses and adjustments	0	(307,000)	0	(337,000)
Ending balance	$ 0	0	$ 0	$ 0
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		43,000
Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		210,000
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		45,000
RSUs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 9,000

INVESTMENT IN UNCONSOLIDATED 40

INVESTMENT IN UNCONSOLIDATED AFFILIATE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014	Dec. 31, 2014		Feb. 28, 2014
Schedule of Investments [Line Items]
Inventory	$ 6,824,000		$ 6,824,000		$ 5,139,000	[1]
Property and equipment	2,309,000		2,309,000		1,916,000	[1]
Loss attributable to affiliate	3,000	$ 331,000	3,000	$ 331,000
CPqD [Member]
Schedule of Investments [Line Items]
Joint venture ownership percentage (in hundredths)							51.00%
BrP [Member]
Schedule of Investments [Line Items]
Inventory	245,000		245,000
Property and equipment	211,000		211,000
Additional capital contribution	3,000
Investment in affiliate	459,000		459,000
Loss attributable to affiliate	(3,000)	$ (331,000)	(3,000)	$ (331,000)
Written down value in investment in unconsolidated affiliate	$ 0		$ 0		$ 0
GigOptix, Inc. [Member]
Schedule of Investments [Line Items]
Joint venture ownership percentage (in hundredths)							49.00%
[1]	The condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements as of that date.

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
INCOME TAXES [Abstract]
Provision for income taxes	$ 16	$ 21	$ 25	$ 31
Effective tax rate (in hundredths)	3.00%

NET INCOME (LOSS) PER SHARE (De

NET INCOME (LOSS) PER SHARE (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding anti-dilutive securities (in shares)	6,169,339	12,959,622	12,054,412	12,959,622
Stock options and RSUs [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding anti-dilutive securities (in shares)	6,013,177	12,276,382	11,896,172	12,276,382
Common Stock Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding anti-dilutive securities (in shares)	156,162	683,240	158,240	683,240

SEGMENT AND GEOGRAPHIC INFORM43

SEGMENT AND GEOGRAPHIC INFORMATION (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 28, 2015USD ($)Customer	Jun. 29, 2014USD ($)Customer	Jun. 28, 2015USD ($)Customer	Jun. 29, 2014USD ($)Customer	Dec. 31, 2014USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 9,840	$ 8,037	$ 18,900	$ 15,423
Revenue by geographic region (in hundredths)	100.00%	100.00%	100.00%	100.00%	100.00%
Number of customers | Customer	2	2	3	1
Long-lived assets	$ 2,309		$ 2,309		$ 1,916
HSC [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	6,586	$ 5,609	12,787	$ 10,891
Industrial [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 3,254	$ 2,428	$ 6,113	$ 4,532
Customer One and Two [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Major customer percentage (in hundredths)	40.00%	35.00%
Customer One [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Major customer percentage (in hundredths)				26.00%
Major Customer [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Major customer percentage (in hundredths)	25.00%	24.00%	27.00%
Customer One, Two and Three [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Major customer percentage (in hundredths)			50.00%
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue by geographic region (in hundredths)	31.00%	20.00%	29.00%	24.00%
Italy [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue by geographic region (in hundredths)	31.00%	36.00%	30.00%	36.00%
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue by geographic region (in hundredths)				10.00%
Hong Kong [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue by geographic region (in hundredths)	13.00%		13.00%
Reportable Geographical Components [Member] | North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 3,231	$ 1,875	$ 6,262	$ 4,102
Revenue by geographic region (in hundredths)	33.00%	23.00%	33.00%	27.00%
Reportable Geographical Components [Member] | Asia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 2,757	$ 2,456	$ 5,576	$ 4,614
Revenue by geographic region (in hundredths)	28.00%	31.00%	30.00%	30.00%
Reportable Geographical Components [Member] | Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 3,702	$ 3,647	$ 6,655	$ 6,556
Revenue by geographic region (in hundredths)	38.00%	45.00%	35.00%	42.00%
Reportable Geographical Components [Member] | Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 150	$ 59	$ 407	$ 151
Revenue by geographic region (in hundredths)	1.00%	1.00%	2.00%	1.00%
Reportable Geographical Components [Member] | United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue by geographic region (in hundredths)			93.00%		88.00%
Long-lived assets	$ 2,147		$ 2,147		$ 1,687
Reportable Geographical Components [Member] | Switzerland [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue by geographic region (in hundredths)			7.00%		12.00%
Long-lived assets	$ 162		$ 162		$ 229

COMMITMENTS AND CONTINGENCIES44

COMMITMENTS AND CONTINGENCIES (Details)	Apr. 01, 2014ft²	Jun. 28, 2015USD ($)ft²	Jun. 29, 2014USD ($)	Jun. 28, 2015USD ($)	Jun. 29, 2014USD ($)	Dec. 31, 2014USD ($)
COMMITMENTS AND CONTINGENCIES [Abstract]
Facilities rent expense		$ 117,000	$ 93,000	$ 228,000	$ 234,000
Bothell facility, sq ft. | ft²	11,666
Lease term	1 year	1 year
Bellevue Facility, sq ft | ft²	2,100	1,951
Aggregate non-cancelable future minimum rental payments under capital leases [Abstract]
Capital leases, 2015 (remainder of year)		$ 2,000		2,000
Capital leases, 2016		3,000		3,000
Capital leases, 2017		3,000		3,000
Capital leases, 2018		0		0
Capital leases, 2019		0		0
Capital Leases, Thereafter		0		0
Capital leases, total minimum lease payments		8,000		8,000
Less: Amount representing interest		0		0
Total capital lease obligations		8,000		8,000
Less: current portion		(3,000)		(3,000)		$ (3,000)
Long-term portion of capital lease obligations		5,000		5,000
Aggregate non-cancelable future minimum rental payments under operating leases [Abstract]
Operating leases, 2015 (remainder of year)		259,000		259,000
Operating leases, 2016		516,000		516,000
Operating leases, 2017		130,000		130,000
Operating Leases, 2018		73,000		73,000
Operating Leases, 2019		73,000		73,000
Operating Leases, Thereafter		61,000		61,000
Operating leases, total minimum lease payments		$ 1,112,000		$ 1,112,000