Interphase (INPH) 10-Q 7 May 15 2015 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 27, 2015
Entity Registrant Name	INTERPHASE CORP
Entity Central Index Key	728249
Current Fiscal Year End Date	-19
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		8,393,981
Document Type	10-Q
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014
In Thousands, unless otherwise specified
ASSETS
Cash and cash equivalents	$2,295	$3,517
Marketable securities		3,579
Trade accounts receivable, less allowances of $10 and $32, respectively	1,767	1,925
Inventories	2,148	2,136
Prepaid expenses and other current assets	566	528
Total current assets	6,776	11,685
Machinery and equipment	6,999	6,992
Leasehold improvements	591	587
Furniture and fixtures	152	159
	7,742	7,738
Less-accumulated depreciation and amortization	-6,257	-6,174
Total property and equipment, net	1,485	1,564
Capitalized software, net	24	32
Other assets	423	403
Total assets	8,708	13,684
Liabilities
Accounts payable	1,197	1,273
Deferred revenue	115	44
Accrued liabilities	1,340	1,540
Accrued compensation	180	103
Short-term debt		3,500
Total current liabilities	2,832	6,460
Deferred lease obligations	1,142	1,215
Total liabilities	3,974	7,675
Commitments and Contingencies
Shareholders’ Equity
Common stock, $0.10 par value; 100,000,000 shares authorized; 8,393,981 and 8,393,981 shares issued and outstanding, respectively	839	839
Additional paid in capital	50,321	50,157
Accumulated deficit	-45,864	-44,355
Cumulative other comprehensive loss	-562	-632
Total shareholders' equity	4,734	6,009
Total liabilities and shareholders' equity	$8,708	$13,684

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, except Share data, unless otherwise specified
Trade accounts receivable, allowances	$10	$32
Common stock, par value (in dollars per share)	$0.10	$0.10
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	8,393,981	8,393,981
Common stock, shares outstanding (in shares)	8,393,981	8,393,981

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Revenues:
Product	$1,579	$1,786
Service	500	1,647
Total revenues	2,079	3,433
Cost of sales:
Product	1,121	907
Service	331	1,452
Total cost of sales	1,452	2,359
Gross margin	627	1,074
Research and development	654	606
Sales and marketing	704	625
General and administrative	752	850
Total operating expenses	2,110	2,081
Loss from operations	-1,483	-1,007
Other loss, net	-17	-1
Loss before income tax	-1,500	-1,008
Income tax provision	9	8
Net loss	($1,509)	($1,016)
Net loss per share:
Basic net loss per share (in dollars per share)	($0.18)	($0.14)
Diluted net loss per share (in dollars per share)	($0.18)	($0.14)

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive (Loss) (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Net loss	($1,509)	($1,016)
Other comprehensive income (loss):
Foreign currency translation adjustment	71	-1
Realized gain on marketable securities	-1
Other comprehensive income (loss)	70	-1
Comprehensive loss	($1,439)	($1,017)

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net loss	($1,509)	($1,016)
Allowance for doubtful accounts and returns	-21	14
Writedowns of excess and obsolete inventories	7	14
Depreciation and amortization	92	58
Amortization of stock-based compensation	164	123
Loss on retirement of machinery and equipment		14
Realized gain on marketable securities	-1
Trade accounts receivable	179	293
Inventories	-19	-251
Prepaid expenses and other current assets	-74	-597
Other assets	-27	-54
Accounts payable, deferred revenue and accrued liabilities	-92	123
Accrued compensation	77	-58
Deferred lease obligations	-73	568
Net cash used in operating activities	-1,297	-769
Cash flows from investing activities:
Purchases of property and equipment	-4	-646
Purchases of capitalized software		-1
Proceeds from the sale of marketable securities	3,579	4,514
Purchases of marketable securities		-4,010
Net cash provided by (used in) investing activities	3,575	-143
Cash flows from financing activities:
Borrowings under credit facility		3,500
Payments on credit facility	-3,500	-3,500
Net cash used in financing activities	-3,500
Effect of exchange rate changes on cash and cash equivalents		-1
Net decrease in cash and cash equivalents	-1,222	-913
Cash and cash equivalents at beginning of period	3,517	1,478
Cash and cash equivalents at end of period	$2,295	$565

Note_1_Basis_of_Presentation

Note 1 - Basis of Presentation	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	NOTE 1. - BASIS OF PRESENTATION
	Company Background
	Interphase Corporation and its subsidiaries (“Interphase” or the “Company”) is a diversified information and communications technology company, committed to innovation through the process of identifying, developing and introducing new products and services. The Company offers products and services from embedded computing solutions, engineering design services, and contract manufacturing services to a new line of embedded computer vision products.
	Embedded solutions include communications networking products for connectivity, interworking and packet processing. Clients for this product line include Alcatel-Lucent, GENBAND, Hewlett Packard, and Samsung.
	The engineering design and manufacturing services serve a wide variety of industries within the electronics market, from machine-to-machine (“M2M”) and Internet of Things (“IoT”) designs utilizing Cellular, GPS and Wi-Fi tracking solutions to cost-saving redesigns for manufacturability. Interphase Productization services provide customers with the full suite of rapid design and manufacturing services required to quickly take a project from design concept to full production in the marketplace.
	The penveu® product line, from the embedded computer vision line of business, addresses both the education and enterprise markets. penveu® is a handheld device that adds interactivity to projectors and large screen displays, turning flat surfaces into an interactive display.
	Founded in 1974, the Company is located in Carrollton, Texas, with sales offices in the United States and Europe. See Note 8 for information regarding the Company’s revenues related to North America and foreign regions.
	Management’s Plans
	The Company has incurred recurring losses, including a loss of $1.5 million during the three months ended March 31, 2015, has an accumulated deficit of $45.9 million as of March 31, 2015 and has used $1.3 million in net cash from operating activities for the three months ended March 31, 2015.  These factors, among others, have resulted in management taking steps to reduce costs through restructuring activities and to engage in various capital generating initiatives.  Increased revenue generation from penveu is critical to the Company’s future success and management’s plans and activities are focused on generating the necessary capital to allow penveu to be a success in the market.  If the Company is unable to achieve sufficient near-term revenue growth, the Company could be required to make near-term decisions to provide the liquidity needed to fund marketing and product launch activities related to the introduction of penveu.  However, there can be no assurance that management will be able to successfully generate sufficient capital through these activities, nor that management will be successful in commercializing existing and new product and service offerings.
	Basis of Presentation
	The accompanying condensed consolidated financial statements include the accounts of Interphase Corporation and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. While the accompanying condensed consolidated financial statements are unaudited, they have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of the Company, all material adjustments and disclosures necessary to fairly present the results of such periods have been made. All such adjustments are of a normal, recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.  These financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2014.

Note_2_Stockbased_Compensation

Note 2 - Stock-based Compensation	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE 2. -
	STOCK-BASED COMPENSATION
	Stock Options
	The Interphase Corporation 2014 Long-Term Stock Incentive Plan has been adopted by the Company’s Board of Directors and approved by its shareholders. Awards granted subsequent to May 5, 2014 have been made under this plan. All other awards granted before May 5, 2014 were made under the Interphase Corporation 2004 Long-Term Stock Incentive Plan, which expired on May 5, 2014 (so that no new awards could be made or granted under the Interphase Corporation 2004 Long-Term Stock Incentive Plan).
	During the three months ended March 31, 2015 and 2014, the Company issued no stock options without performance-based vesting conditions. Compensation expense related to stock options without performance-based vesting conditions was $32,000 and $55,000 for the three months ended March 31, 2015 and 2014, respectively.
	During the three months ended March 31, 2015 and 2014, the Company issued no stock options with performance-based vesting conditions. All stock options with performance-based conditions expire ten years from date of grant. Of the unvested stock options outstanding at March 31, 2015, 694,760 are subject to the achievement of certain performance conditions. The performance conditions related to approximately 17,721 and 18,000 of these stock options were deemed probable as of March 31, 2015 and 2014, respectively. Compensation expense related to performance-based stock options, for which vesting was deemed probable, was approximately $115,000 and $53,000 for the three months ended March 31, 2015 and 2014, respectively. The performance conditions related to the remaining options were not deemed probable at March 31, 2015; therefore no compensation expense related to these options has been recorded.
	The weighted-average remaining contractual life of stock options outstanding and exercisable at March 31, 2015 and 2014 was 6.50 years and 6.84 years, respectively.
	As of March 31, 2015, there were 770,385 unvested stock options expected to vest over a weighted-average period of 8.2 years. As of December 31, 2014, there were 1,166,200 unvested stock options expected to vest over a weighted-average period of 8.3 years.
	The following table summarizes the combined stock option activity under both of the plans:
		Number of			Weighted Average
		Options			Option Price
	Balance, December 31, 2014		1,782,749		$	3.79
	Granted		-			-
	Exercised		-			-
	Cancelled		(299,903	)		4.28
	Balance, March 31, 2015		1,482,846		$	3.69
	Option Valuation
	The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model with weighted-average assumptions based on the grant date.
	Restricted Stock
	Each of the Interphase Corporation 2014 Long-Term Stock Incentive Plan and the Interphase Corporation 2004 Long-Term Stock Incentive Plan provides for grants of bonus stock awards (“restricted stock”) to the Company’s directors and certain employees at no cost to the recipient. The total amount of restricted stock with respect to which awards may be granted under the current (2014) plan is 75,000 shares. Holders of restricted stock are entitled to cash dividends, if any, and to vote their respective shares.
	Restrictions limit the sale or transfer of these shares during a predefined vesting period, currently ranging from three to four years, and in some cases vesting is subject to the achievement of certain performance conditions. There were no shares of restricted stock issued during the three months ended
	March 31, 2015 or 2014. Upon issuance of restricted stock under a plan, unearned compensation equivalent to the market value at the date of grant is recorded as a reduction to shareholders’ equity and subsequently amortized to expense over the respective restriction periods. Compensation expense related to previously granted restricted stock was
	$17,000 and $15,000 for the three months ended March 31, 2015 and 2014, respectively. As of
	March 31, 2015, there was $44,000 of total unamortized compensation cost related to unvested restricted stock remaining to be recognized. The expense is expected to be recognized over a weighted-average period of less than 1 year. As of December 31, 2014, there was $61,000 of total unamortized compensation cost related to unvested restricted stock remaining to be recognized. The expense is expected to be recognized over a weighted-average period of less than 1 year. The following table summarizes the restricted stock activity for the three months ended
	March 31, 2015:
		Restricted Stock Shares			Weighted Average Grant Date Value
	Nonvested restricted stock at December 31, 2014		29,155		$	3.29
	Granted		-			-
	Vested		(14,155	)		1.82
	Cancelled/Forfeited		-			-
	Nonvested restricted stock at March 31, 2015		15,000		$	4.67

Note_3_Marketable_Securities

Note 3 - Marketable Securities	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Fair Value Disclosures [Text Block]	NOTE 3. - MARKETABLE SECURITIES
	Fair value is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company classified the levels used to measure fair value into the following hierarchy:
	Level 1 – Valuations based on quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to obtain at the measurement date. This level provides the most reliable evidence of fair value.
	Level 2 – Valuations based on observable inputs other than Level 1, such as: quoted prices for similar assets or liabilities in active markets; quoted prices in markets that are not active; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Valuations in the category are inherently less reliable than Level 1 due to the degree of subjectivity involved in determining appropriate methodologies and the applicable observable market underlying assumptions.
	Level 3 – Valuations based on inputs that are unobservable, supported by little or no market activity, and significant to the overall fair value measurement.
	The Company’s investments in marketable securities primarily consisted of investments in debt securities, which were classified as available-for-sale and were presented as current assets on the accompanying condensed consolidated balance sheets. Earnings from debt securities were calculated on a yield to maturity basis and recorded in the results of operations. Unrealized gains or losses for the periods presented were included in other comprehensive income (loss). Realized gains and losses were computed based on the specific identification method and were reclassified from other comprehensive income (loss) to other loss, net, included in the statement of operations. Marketable securities were previously used to secure the Company’s credit facility. The Company discontinued its investment in marketable securities during the three months ended March 31, 2015, when it paid off its borrowings under the credit facility during that period (see Note 6 below).
	The fair values of marketable securities were estimated using the market approach using prices and other relevant information generated by market transactions involving identical or comparable assets. The Company used quoted market prices in active markets or quoted market prices in markets that are not active to measure fair value. When developing fair value estimates, the Company maximized the use of observable inputs and minimized the use of unobservable inputs.
	Financial assets, measured at fair value, by level within the fair value hierarchy were as follows (in thousands):
			31-Mar-15						31-Dec-14
		Fair Value	Cost		Unrealized		Fair		Cost		Unrealized		Fair
		Hierarchy			Gain		Value				Gain		Value
	Asset Backed	Level 2	$	-	$	-	$	-	$	96	$	7	$	103
	Corporate Bonds	Level 2		-		-		-		76		-		76
	US Treasuries	Level 2		-		-		-		3,400		-		3,400
	Total		$	-	$	-	$	-	$	3,572	$	7	$	3,579

Note_4_Inventories

Note 4 - Inventories	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Inventory Disclosure [Text Block]	NOTE 4. - INVENTORIES
	Inventories are valued at the lower of cost or market and include material, labor and manufacturing overhead. Cost, determined on a first-in, first-out basis, is as follows (in thousands):
		31-Mar-15		31-Dec-14
	Raw Materials	$	1,304	$	1,510
	Work-in-Process		494		467
	Finished Goods		350		159
	Total	$	2,148	$	2,136
	Valuing inventory at the lower of cost or market involves an inherent level of risk and uncertainty due to technology trends in the industry and customer demand for the Company’s products. Future events may cause significant fluctuations in the Company’s operating results. Inventories are written down when needed to ensure the Company carries inventory at the lower of cost or market. The Company’s reserve requirements increased by $7,000 and $14,000 during the three months ended March 31, 2015 and 2014, respectively.

Note_5_Income_Taxes

Note 5 - Income Taxes	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE 5. - INCOME TAXES
	The Company records a valuation allowance when it is “more likely than not” that all or a portion of a deferred tax asset will not be realized. Management reviews all available positive and negative evidence, including the Company’s current and past performance, the market environment in which the Company operates, the utilization of past tax credits, length of carry back and carry forward periods, existing contracts or sales backlog that will result in future profits, as well as other factors. The Company continues to maintain a valuation allowance on all of the net deferred tax assets for the periods presented. Until an appropriate level of profitability is sustained, the Company expects to continue to record a full valuation allowance on future tax benefits except for those that may be generated in foreign jurisdictions. The effective income tax rates for the periods presented differ from the U.S. statutory rate as the Company continues to provide a full valuation allowance for the net deferred tax assets at March 31, 2015 and 2014.

Note_6_Credit_Facility

Note 6 - Credit Facility	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Debt Disclosure [Text Block]	NOTE
	6
	. - CREDIT FACILITY
	The Company maintains a $5.0 million revolving bank credit facility that is scheduled to mature on December 19, 2016. The applicable interest rate on outstanding balances is LIBOR plus 1.0% to 1.5% based on certain factors included in the credit agreement. At December 31, 2014, the Company’s interest rate on the $3.5 million outstanding balance was 1.7%. The unused portion of the credit facility is subject to an unused facility fee ranging from .25% to .75% depending on total deposits with the creditor. All borrowings under this facility were secured by marketable securities. The outstanding balance of $3.5 million as of December 31, 2014 was classified as short-term debt on the Company’s condensed consolidated balance sheets. The Company did not make any borrowings under this facility in the three months ended March 31, 2015, and there was no outstanding amount due as of March 31, 2015. The Company is in the final stages of negotiating an agreement for a new revolving credit facility with another bank lender which would replace the existing credit facility and which management believes would include terms and conditions that, on the whole, are more favorable to the Company than the existing credit facility.

Note_7_Earnings_Per_Share

Note 7 - Earnings Per Share	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	NOTE 7. - EARNINGS PER SHARE
	Basic earnings per share are computed by dividing reported earnings available to common shareholders by weighted average common shares outstanding.  Diluted earnings per share give effect to dilutive potential common shares. Earnings per share are calculated as follows (in thousands, except per share data):
		Three months ended
		March 31,
		2015			2014
	Basic net loss per share:
	Net loss	$	(1,509	)	$	(1,016	)
	Weighted average common shares outstanding		8,394			7,011
	Basic net loss per share	$	(0.18	)	$	(0.14	)
	Diluted net loss per share:
	Net loss	$	(1,509	)	$	(1,016	)
	Weighted average common shares outstanding		8,394			7,011
	Dilutive stock options		-			-
	Weighted average common shares outstanding		8,394			7,011
	– assuming dilution
	Diluted net loss per share	$	(0.18	)	$	(0.14	)
	Outstanding stock options that were not included in the diluted calculation because their effect would be anti-dilutive		388			392

Note_8_Segment_Information

Note 8 - Segment Information	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	NOTE
	8
	. -
	SEGMENT INFORMATION
	Interphase is a diversified information and communications technology company, committed to innovation through the process of identifying, developing and introducing new products and services. The Company offers products and services from embedded computing solutions, engineering design services, and contract manufacturing services to a new line of embedded computer vision products.
	Except for revenues, which are monitored by product line, the chief operating decision-makers review financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. Accordingly, the Company considers itself to have only a single reporting segment.
	Geographic revenue related to North America and foreign regions is as follows (in thousands):
		Three months ended
		March 31,
		2015		2014
	Revenues:
	North America	$	999	$	2,468
	Pacific Rim		611		586
	Europe		469		379
	Total	$	2,079	$	3,433
	Additional information regarding revenue by product line is as follows (in thousands):
		Three months ended
		March 31,
		2015		2014
	Product Revenues:
	Communications networking	$	1,491	$	1,735
	Services		500		1,647
	Other		88		51
	Total	$	2,079	$	3,433

Note_9_Recently_Issued_Account

Note 9 - Recently Issued Accounting Pronouncements	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	NOTE 9. -
	RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. The International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard 15 with the same title. The standard represents the culmination of the FASB and IASB efforts to improve revenue recognition guidance. ASU 2014-09 creates a new, principles-based revenue recognition framework that will affect nearly every revenue-generating entity. ASU 2014-09 also creates a new topic in the Codification, Topic 606. Accounting Standards Codification (“ASC”) 606 establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific aspects of revenue recognition, and expands and improves disclosures about revenue. ASC 606 is effective for public business entities for annual reporting periods beginning after December 15, 2016, including interim periods therein. Early application is not permitted for public business entities. Entities are permitted to apply the new revenue standard either retrospectively, subject to some practical expedients, or through an alternative transition method. The Company is currently evaluating the impact of adopting this new accounting guidance.

Note_10_Subsequent_Events

Note 10 - Subsequent Events	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
Subsequent Events [Text Block]	NOTE
	10
	. -
	SUBSEQUENT EVENTS
	On April 10, 2015 the Company committed to a plan intended to result in savings of approximately $750,000 to $1.5 million in annualized operating costs. These actions aim to mitigate gross margin erosion by reducing manufacturing costs, streamlining research and development and sales and marketing expenses to focus remaining resources on key strategic growth areas, and reducing administrative expenses through consolidation of support functions. As part of this plan, the Company expects to reduce the number of its employees by approximately 15% to 25%. The Company expects to incur charges for one-time termination benefits in the range of $50,000 to $150,000, most of which will be cash expenditures. The Company expects to substantially complete the actions associated with this plan during the second quarter of 2015.
	The Company is under a tax audit in France related to the years ended December 31, 2011, 2010, and 2009 and has previously recorded an uncertain tax position of $730,000 related to an exposure of $5.2 million on research and development tax credits, including estimated penalties and interest, taken in all prior years. However, based on discussions between the Company’s French tax attorneys and the French Tax Administration, the Company expects to receive a tax bill from the French Tax Administration in May 2015 that may cause a significant change to this tax position. The Company believes its tax estimates at March 31, 2015 are reasonable under ASC 740; but if the Company receives a tax bill that significantly exceeds its estimates, it may have to decide whether to institute litigation to dispute the tax bill. The final outcome of tax audits and potential related litigation is inherently uncertain. As a result, the adverse resolution of this audit or any related litigation could be significantly different from amounts reflected in the Company’s income tax provisions and accruals.

Note_2_Stockbased_Compensation1

Note 2 - Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2015
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]		Number of			Weighted Average
		Options			Option Price
	Balance, December 31, 2014		1,782,749		$	3.79
	Granted		-			-
	Exercised		-			-
	Cancelled		(299,903	)		4.28
	Balance, March 31, 2015		1,482,846		$	3.69
Nonvested Restricted Stock Shares Activity [Table Text Block]		Restricted Stock Shares			Weighted Average Grant Date Value
	Nonvested restricted stock at December 31, 2014		29,155		$	3.29
	Granted		-			-
	Vested		(14,155	)		1.82
	Cancelled/Forfeited		-			-
	Nonvested restricted stock at March 31, 2015		15,000		$	4.67

Note_3_Marketable_Securities_T

Note 3 - Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2015
Notes Tables
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]			31-Mar-15						31-Dec-14
		Fair Value	Cost		Unrealized		Fair		Cost		Unrealized		Fair
		Hierarchy			Gain		Value				Gain		Value
	Asset Backed	Level 2	$	-	$	-	$	-	$	96	$	7	$	103
	Corporate Bonds	Level 2		-		-		-		76		-		76
	US Treasuries	Level 2		-		-		-		3,400		-		3,400
	Total		$	-	$	-	$	-	$	3,572	$	7	$	3,579

Note_4_Inventories_Tables

Note 4 - Inventories (Tables)	3 Months Ended
	Mar. 31, 2015
Notes Tables
Schedule of Inventory, Current [Table Text Block]		31-Mar-15		31-Dec-14
	Raw Materials	$	1,304	$	1,510
	Work-in-Process		494		467
	Finished Goods		350		159
	Total	$	2,148	$	2,136

Note_7_Earnings_Per_Share_Tabl

Note 7 - Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]		Three months ended
		March 31,
		2015			2014
	Basic net loss per share:
	Net loss	$	(1,509	)	$	(1,016	)
	Weighted average common shares outstanding		8,394			7,011
	Basic net loss per share	$	(0.18	)	$	(0.14	)
	Diluted net loss per share:
	Net loss	$	(1,509	)	$	(1,016	)
	Weighted average common shares outstanding		8,394			7,011
	Dilutive stock options		-			-
	Weighted average common shares outstanding		8,394			7,011
	– assuming dilution
	Diluted net loss per share	$	(0.18	)	$	(0.14	)
	Outstanding stock options that were not included in the diluted calculation because their effect would be anti-dilutive		388			392

Note_8_Segment_Information_Tab

Note 8 - Segment Information (Tables)	3 Months Ended
	Mar. 31, 2015
Notes Tables
Revenue from External Customers by Geographic Areas [Table Text Block]		Three months ended
		March 31,
		2015		2014
	Revenues:
	North America	$	999	$	2,468
	Pacific Rim		611		586
	Europe		469		379
	Total	$	2,079	$	3,433
Revenue from External Customers by Products and Services [Table Text Block]		Three months ended
		March 31,
		2015		2014
	Product Revenues:
	Communications networking	$	1,491	$	1,735
	Services		500		1,647
	Other		88		51
	Total	$	2,079	$	3,433

Note_1_Basis_of_Presentation_D

Note 1 - Basis of Presentation (Details Textual) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Net Income (Loss) Attributable to Parent	($1,509)	($1,016)
Retained Earnings (Accumulated Deficit)	-45,864		-44,355
Net Cash Provided by (Used in) Operating Activities	($1,297)	($769)

Note_2_Stockbased_Compensation2

Note 2 - Stock-based Compensation (Details Textual) (USD $)	3 Months Ended	12 Months Ended	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	1,482,846	1,782,749
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares	770,385	1,166,200
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	8 years 73 days	8 years 109 days
Stock Options with Performance-Based Vesting Condition [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0		0
Allocated Share-based Compensation Expense	115,000		$53,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	694,760
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	17,721		18,000
Remaining Stock Options [Member]
Allocated Share-based Compensation Expense	0
Stock Options without Performance-based Vesting Condition [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0		0
Allocated Share-based Compensation Expense	32,000		55,000
Restricted Stock [Member] | 2014 Long-Term Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	75,000
Restricted Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Restricted Stock [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year	1 year
Restricted Stock [Member]
Allocated Share-based Compensation Expense	17,000		15,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	0		0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	44,000	61,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term	6 years 182 days		6 years 306 days

Note_2_Stockbased_Compensation3

Note 2 - Stock-based Compensation - Summary of Combined Stock Option Activity (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Balance, December 31, 2014 (in shares)	1,782,749
Balance, December 31, 2014 (in dollars per share)	$3.79
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0
Granted (in dollars per share)	$0
Exercised (in shares)	0
Exercised (in dollars per share)	$0
Cancelled (in shares)	-299,903
Cancelled (in dollars per share)	$4.28
Balance, March 31, 2015 (in shares)	1,482,846
Balance, March 31, 2015 (in dollars per share)	$3.69

Note_2_Stockbased_Compensation4

Note 2 - Stock-based Compensation - Nonvested Restricted Stock Units Activity (Details) (Restricted Stock [Member], USD $)	3 Months Ended
	Mar. 31, 2015
Restricted Stock [Member]
Nonvested restricted stock at December 31, 2014 (in shares)	29,155
Nonvested restricted stock at December 31, 2014 (in dollars per share)	$3.29
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	0
Granted (in dollars per share)	$0
Vested (in shares)	-14,155
Vested (in dollars per share)	$1.82
Cancelled/Forfeited (in shares)	0
Cancelled/Forfeited (in dollars per share)	$0
Nonvested restricted stock at March 31, 2015 (in shares)	15,000
Nonvested restricted stock at March 31, 2015 (in dollars per share)	$4.67

Note_3_Marketable_Securities_F

Note 3 - Marketable Securities - Fair Value, Financial Assets Measured by Level within the Fair Value Hierarchy (Details) (USD $)	Dec. 31, 2014
In Thousands, unless otherwise specified
Cost	$3,572
Unrealized Gain	7
Fair Value	3,579
Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member]
Cost	96
Unrealized Gain	7
Fair Value	103
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Cost	76
Fair Value	76
Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member]
Cost	3,400
Fair Value	$3,400

Note_4_Inventories_Details_Tex

Note 4 - Inventories (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Inventory Valuation Reserves Increase	$7,000	$14,000

Note_4_Inventories_Inventory_D

Note 4 - Inventories - Inventory (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Raw Materials	$1,304	$1,510
Work-in-Process	494	467
Finished Goods	350	159
Total	$2,148	$2,136

Note_6_Credit_Facility_Details

Note 6 - Credit Facility (Details Textual) (Revolving Credit Facility [Member], USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Long-term Line of Credit	$0	$3,500,000
Proceeds from Lines of Credit	0
Line of Credit Facility, Maximum Borrowing Capacity	5,000,000
Line of Credit Facility, Interest Rate at Period End		1.70%
Short-Term Borrowings [Member]
Long-term Line of Credit		$3,500,000
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	1.00%
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	1.50%
Minimum [Member]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.25%
Maximum [Member]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.75%

Note_7_Earnings_Per_Share_Earn

Note 7 - Earnings Per Share - Earnings Per Share (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Basic net loss per share:
Net loss	($1,509)	($1,016)
Weighted average common shares outstanding (in shares)	8,394,000	7,011,000
Basic net loss per share (in dollars per share)	($0.18)	($0.14)
Diluted net loss per share:
Net loss	($1,509)	($1,016)
Weighted average common shares outstanding (in shares)	8,394,000	7,011,000
Weighted average common shares outstanding – assuming dilution (in shares)	8,394,000	7,011,000
Diluted net loss per share (in dollars per share)	($0.18)	($0.14)
Employee Stock Option [Member]
Diluted net loss per share:
Dilutive stock options (in shares)	0	0
Equity Option [Member]
Diluted net loss per share:
Outstanding stock options that were not included in the diluted calculation because their effect would be anti-dilutive (in shares)	388,000	392,000

Note_8_Segment_Information_Geo

Note 8 - Segment Information - Geographic Revenue Related to North America and Foreign Regions (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Revenues	$2,079	$3,433
North America [Member]
Revenues	999	2,468
Pacific Rim [Member]
Revenues	611	586
Europe [Member]
Revenues	$469	$379

Note_8_Segment_Information_Rev

Note 8 - Segment Information - Revenue by Product Line (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Revenues	$2,079	$3,433
Telecommunications [Member]
Revenues	1,491	1,735
Services [Member]
Revenues	500	1,647
Other Products [Member]
Revenues	$88	$51

Note_10_Subsequent_Events_Deta

Note 10 - Subsequent Events (Details Textual) (USD $)	3 Months Ended	1 Months Ended	0 Months Ended
	Mar. 31, 2015	5-May-15	Apr. 10, 2015
Liability for Uncertain Tax Positions, Current	$730,000
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount	5,200,000
Subsequent Event [Member] | Foreign Tax Authority [Member] | Ministry of the Economy, Finance and Industry, France [Member] | Tax Year 2011 [Member]
Income Tax Examination, Year under Examination		2011
Subsequent Event [Member] | Foreign Tax Authority [Member] | Ministry of the Economy, Finance and Industry, France [Member] | Tax Year 2010 [Member]
Income Tax Examination, Year under Examination		2010
Subsequent Event [Member] | Foreign Tax Authority [Member] | Ministry of the Economy, Finance and Industry, France [Member] | Tax Year 2009 [Member]
Income Tax Examination, Year under Examination		2009
Subsequent Event [Member] | Minimum [Member] | Operating Expense [Member]
Effect on Future Earnings, Amount			750,000
Subsequent Event [Member] | Minimum [Member] | One-time Termination Benefits [Member]
Restructuring and Related Cost, Expected Cost			50,000
Subsequent Event [Member] | Minimum [Member]
Restructuring and Related Cost, Expected Number of Positions Eliminated, Percent			15.00%
Subsequent Event [Member] | Maximum [Member] | Operating Expense [Member]
Effect on Future Earnings, Amount			1,500,000
Subsequent Event [Member] | Maximum [Member] | One-time Termination Benefits [Member]
Restructuring and Related Cost, Expected Cost			$150,000
Subsequent Event [Member] | Maximum [Member]
Restructuring and Related Cost, Expected Number of Positions Eliminated, Percent			25.00%