ClearOne (CLRO) 10-K 16 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Mar. 15, 2017	Jun. 30, 2016
Document And Entity Information
Entity Registrant Name	CLEARONE INC
Entity Central Index Key	840,715
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 65,200
Entity Common Stock, Shares Outstanding		8,746,870
Trading Symbol	CLRO
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 12,100	$ 13,412
Marketable securities	5,030	7,161
Receivables, net of allowance for doubtful accounts of $187 and $54, as of December 31, 2016 and 2015 respectively	7,461	8,692
Inventories	11,377	13,447
Distributor channel inventories	1,530	1,628
Prepaid expenses and other assets	2,642	1,806
Total current assets	40,140	46,146
Long-term marketable securities	21,365	19,204
Long-term inventories, net	1,664	2,018
Property and equipment, net	1,513	1,589
Intangibles, net	5,677	6,638
Goodwill	12,724	12,724
Deferred income taxes	4,654	5,093
Other assets	387	117
Total assets	88,124	93,529
Current liabilities:
Accounts payable	3,545	2,815
Accrued liabilities	1,894	2,243
Deferred product revenue	3,882	4,549
Total current liabilities	9,321	9,607
Deferred rent	103	150
Other long-term liabilities	1,251	1,203
Total liabilities	10,675	10,960
Shareholders' equity:
Common stock, par value $0.001, 50,000,000 shares authorized, 8,812,644 and 9,183,957 shares issued and outstanding as of December 31, 2016 and 2015 respectively	9	9
Additional paid-in capital	46,669	46,291
Accumulated other comprehensive loss	(205)	(166)
Retained earnings	30,976	36,435
Total shareholders' equity	77,449	82,569
Total liabilities and shareholders' equity	$ 88,124	$ 93,529

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 187	$ 54
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	50,000,000	50,000,000
Common stock shares issued	8,812,644	9,183,957
Common stock shares outstanding	8,812,644	9,183,957

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenue	$ 48,637	$ 57,796	$ 57,909
Cost of goods sold	19,150	21,077	22,586
Gross profit	29,487	36,719	35,323
Operating expenses:
Sales and marketing	10,032	10,646	11,227
Research and product development	8,584	8,318	8,969
General and administrative	7,325	7,493	7,152
Total operating expenses	25,921	26,457	27,348
Operating income	3,566	10,262	7,975
Other income, net	312	289	254
Income before income taxes	3,878	10,551	8,229
Provision for income taxes	(1,434)	(3,775)	(2,633)
Net income	$ 2,444	$ 6,776	$ 5,596
Basic earnings per common share	$ 0.27	$ 0.74	$ 0.61
Diluted earnings per common share	$ 0.26	$ 0.71	$ 0.58
Basic weighted average shares outstanding	9,021,980	9,127,385	9,166,769
Diluted weighted average shares outstanding	9,306,034	9,594,659	9,581,326
Comprehensive income:
Net income	$ 2,444	$ 6,776	$ 5,596
Other comprehensive income:
Unrealized gain (loss) on available-for-sale securities, net of tax	(1)	(81)	14
Change in foreign currency translation adjustment	(38)	(77)	(45)
Comprehensive income	$ 2,405	$ 6,618	$ 5,565

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2013	$ 9	$ 41,311	$ 23	$ 28,992	$ 70,335
Balance, shares at Dec. 31, 2013	8,986,080
Exercise of stock options		1,337			$ 1,337
Exercise of stock options, shares	234,432				(234,432)
Stock repurchased				(2,598)	$ (2,598)
Stock repurchased, shares	(272,767)
Cash dividends, per share				(914)	(914)
Stock issued - Sabine acquisition		1,679			1,679
Stock issued - Sabine acquisition, shares	150,000
Tax benefit - stock option exercises		211			211
Stock-based compensation expense		401			401
Stock-based compensation expense, shares
Proceeds from employee stock purchase plan
Proceeds from employee stock purchase plan, shares	82
Unrealized gain on available-for-sale securities, net of tax			14		14
Foreign currency translation adjustment			(45)		(45)
Net income				5,596	5,596
Balance at Dec. 31, 2014	$ 9	44,939	(8)	31,076	76,016
Balance, shares at Dec. 31, 2014	9,097,827
Exercise of stock options		308			$ 308
Exercise of stock options, shares	56,143				(56,143)
Cash dividends, per share				(1,417)	$ (1,417)
Stock issued - Sabine acquisition
Tax benefit - stock option exercises		41			41
Stock-based compensation expense		848			848
Stock-based compensation expense, shares	15,005
Proceeds from employee stock purchase plan		155			155
Proceeds from employee stock purchase plan, shares	14,982
Unrealized gain on available-for-sale securities, net of tax			(81)		(81)
Foreign currency translation adjustment			(77)		(77)
Net income				6,776	6,776
Balance at Dec. 31, 2015	$ 9	46,291	(166)	36,435	$ 82,569
Balance, shares at Dec. 31, 2015	9,183,957				9,183,957
Exercise of stock options		686			$ 686
Exercise of stock options, shares	149,315				(374,857)
Stock repurchased				(6,086)	$ (6,086)
Stock repurchased, shares	(542,259)
Cash dividends, per share				(1,817)	(1,817)
Stock issued - Sabine acquisition
Tax benefit - stock option exercises		690			690
Stock-based compensation expense		667			667
Stock-based compensation expense, shares	12,491
Proceeds from employee stock purchase plan		87			87
Proceeds from employee stock purchase plan, shares	9,140
Unrealized gain on available-for-sale securities, net of tax			(1)		(1)
Foreign currency translation adjustment			(38)		(38)
Options repurchased		(1,752)			(1,752)
Net income				2,444	2,444
Balance at Dec. 31, 2016	$ 9	$ 46,669	$ (205)	$ 30,976	$ 77,449
Balance, shares at Dec. 31, 2016	8,812,644				8,812,644

Consolidated Statements of Sha6

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Stockholders' Equity [Abstract]
Cash dividends, per share	$ 0.20	$ 0.155	$ 0.10

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 2,444	$ 6,776	$ 5,596
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	1,873	2,058	1,972
Amortization of deferred rent	(73)	(95)	(79)
Stock-based compensation expense	667	848	401
Provision for (recoveries of) doubtful accounts, net	132	(4)	(71)
Write-down of inventory to net realizable value	653	496	946
Loss on disposal of assets	54	7
Tax benefit from exercise of stock options	(690)	(41)	(211)
Deferred income taxes	439	(4)	(495)
Changes in operating assets and liabilities:
Receivables	1,085	1,201	(251)
Inventories	1,869	(2,249)	(2,614)
Prepaid expenses and other assets	(209)	824	844
Accounts payable	733	(242)	(84)
Accrued liabilities	(319)	(1,219)	1,451
Income taxes payable	(207)	323	(947)
Deferred product revenue	(665)	(447)	858
Other long-term liabilities	48	(638)	(606)
Net cash provided by operating activities	7,834	7,594	6,710
Cash flows from investing activities:
Payment towards business acquisitions			(13,068)
Purchase of property and equipment	(730)	(359)	(642)
Purchase of intangibles	(161)		(90)
Proceeds from maturities and sales of marketable securities	9,795	7,341	4,650
Purchase of marketable securities	(9,826)	(7,630)	(5,266)
Net cash used in investing activities	(922)	(648)	(14,416)
Cash flows from financing activities:
Net proceeds from equity-based compensation programs	773	463	1,337
Repurchase and cancellation of stock options	(1,752)
Tax benefits from equity-based compensation programs	690	41	211
Stock registration costs			(55)
Dividend payments	(1,817)	(1,417)	(914)
Payments for stock repurchases	(6,086)		(2,598)
Net cash used in financing activities	(8,192)	(913)	(2,019)
Effect of exchange rate changes on cash and cash equivalents	(32)	(61)	(27)
Net increase (decrease) in cash and cash equivalents	(1,312)	5,972	(9,752)
Cash and cash equivalents at the beginning of the year	13,412	7,440	17,192
Cash and cash equivalents at the end of the year	12,100	13,412	7,440
Supplemental disclosure of cash flow information:
Cash paid for interest			3
Cash paid for income taxes	1,154	3,730	3,017
Supplemental disclosure of non-cash investing and financing activities:
Issuance of common stock in connection with acquisition of Sabine			$ 1,679

Business Description, Basis of

Business Description, Basis of Presentation and Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description, Basis of Presentation and Significant Accounting Policies	1. Business Description, Basis of Presentation and Significant Accounting Policies Business Description: ClearOne, Inc., together with its subsidiaries (collectively, “ClearOne” or the “Company”), is a global Company that designs, develops and sells conferencing, collaboration, network streaming and digital signage solutions for audio and visual communications. The performance and simplicity of our advanced comprehensive solutions offer unprecedented levels of functionality, reliability, and scalability. Basis of Presentation: Fiscal Year Consolidation Use of Estimates Foreign Currency Translation Concentration Risk Significant Accounting Policies: Cash Equivalents Marketable Securities - A decline in the market value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and establishes a new cost basis for the security. Losses are charged against “Other income” when a decline in fair value is determined to be other than temporary. We review several factors to determine whether a loss is other than temporary. These factors include, but are not limited to: (i) the extent to which the fair value is less than cost and the cause for the fair value decline, (ii) the financial condition and near term prospects of the issuer, (iii) the length of time a security is in an unrealized loss position and (iv) our ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. There were no other-than-temporary impairments recognized during the years ended December 31, 2016, 2015 and 2014. Accounts Receivable The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Management regularly analyzes accounts receivable including current aging, historical write-off experience, customer concentrations, customer creditworthiness, and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. We review customer accounts quarterly by first assessing accounts with aging over a specific duration and balance over a specific amount. We review all other balances on a pooled basis based on past collection experience. Accounts identified in our customer-level review as exceeding certain thresholds are assessed for potential allowance adjustment if we conclude the financial condition of that customer has deteriorated, adversely affecting their ability to make payments. Delinquent account balances are written off if the Company determines that the likelihood of collection is not probable. If the assumptions that are used to determine the allowance for doubtful accounts change, the Company may have to provide for a greater level of expense in future periods or reverse amounts provided in prior periods. The Company’s allowance for doubtful accounts activity for the years ended as follows: Year Ended December 31, 2016 2015 2014 Balance at beginning of the year $ 54 $ 58 $ 129 Allowance increase (decrease) 148 36 (49 ) Write offs, net of recoveries (15 ) (40 ) (22 ) Balance at end of the year $ 187 $ 54 $ 58 Inventories Distributor channel inventories include products that have been delivered to customers for which revenue recognition criteria have not been met. The inventory also includes advance replacement units (valued at cost) provided by the Company to end-users to service defective products under warranty. The value of advance replacement units included in the inventory was $21 and $75, as of December 31, 2016 and 2015, respectively. Property and Equipment Goodwill and Intangible Assets – Intangibles – Goodwill and Other Note 3 – Business Combinations, Goodwill and Intangibles Impairment of Long-Lived Assets – Revenue Recognition The Company provides a right of return on product sales to certain distributors and other resellers under a product rotation program. Under this seldom-used program, once a quarter, a distributor or reseller is allowed to return products purchased during the prior 180 days for a total value generally not exceeding 15% of the distributor’s or reseller’s net purchases during the preceding quarter. The distributor or reseller is, however, required to place a new purchase order for an amount not less than the value of products returned under the stock rotation program. When products are returned, the associated revenue, cost of goods sold, inventory and accounts receivable originally recorded are reversed. When the new order is fulfilled, the revenue, associated cost of goods sold, inventory and accounts receivable are recorded and the product revenue is subject to the deferral analysis described below. In a small number of cases, the distributors are also permitted to return products for other business reasons. Revenue from product sales to distributors is not recognized until the return privilege has expired or until it can be determined with reasonable certainty that the return privilege has expired, which approximates when product is sold-through to customers of the Company’s distributors (dealers, system integrators, value-added resellers, and end-users) rather than when the product is initially shipped to a distributor. At each quarter-end, the Company evaluates the inventory in the channel through information provided by our distributors. The level of inventory in the channel will fluctuate up-ward or down-ward each quarter, based upon its distributors’ individual operations. Accordingly, at each quarter-end, the deferral for revenue and associated cost of goods sold are calculated and recorded based upon the actual channel inventory reported at quarter-end. Further, with respect to distributors and other channel partners not reporting the channel inventory, the revenue and associated cost of goods sold are deferred until the Company receives payment for the product sales made to such distributors or channel partners. The amount of deferred cost of goods sold is included in distributor channel inventories. The details of deferred revenue and associated cost of goods sold and gross profit are as follows: As of December 31, 2016 2015 Deferred revenue $ 3,882 $ 4,549 Deferred cost of goods sold 1,530 1,628 Deferred gross profit $ 2,352 $ 2,921 The Company offers rebates and market development funds to certain of its distributors, dealers/resellers, and end-users based upon the volume of product purchased by them. The Company records rebates as a reduction of revenue in accordance with GAAP. The Company provides, at its discretion, advance replacement units to end-users on defective units of certain products under warranty. Since the purpose of these units is not revenue generating, the Company tracks the units due from the end-user, until the defective unit has been returned. Any amount due from the customer upon failure to return the products is accounted as receivable only after establishing customer's failure to return the products. The inventory due from the customer is accounted at cost or market value whichever is lower. Sales and Similar Taxes - Shipping and Handling Costs – Warranty Costs The details of changes in the Company’s warranty accrual are as follows: Year Ended December 31, 2016 2015 2014 Balance at the beginning of year $ 288 $ 331 $ 338 Accruals/additions 361 442 511 Usage/claims (403 ) (485 ) (518 ) Balance at end of year $ 246 $ 288 $ 331 Advertising Research and Product Development Costs Income Taxes Company’s income tax provision or benefit. As of December 31, 2016 and 2015, the Company had a valuation allowance of $1,404 and $1,071, respectively against foreign net operating losses, foreign intangible assets, capital losses carryforwards, and state research and development credits. The Company follows the provisions c o Income Taxes. Judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company’s tax returns are subject to audit by various tax authorities. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates. Earnings Per Share Year Ended December 31, 2016 2015 2014 Numerator: Net income $ 2,444 $ 6,776 $ 5,596 Denominator: Basic weighted average shares 9,021,980 9,127,385 9,166,769 Dilutive common stock equivalents using treasury stock method 284,054 467,274 414,557 Diluted weighted average shares 9,306,034 9,594,659 9,581,326 Basic earnings per common share: $ 0.27 $ 0.74 $ 0.61 Diluted earnings per common share: $ 0.26 $ 0.71 $ 0.58 Weighted average options outstanding 885,163 1,053,785 975,696 Anti-dilutive options not included in the computation 323,644 177,125 209,751 Share-Based Payment Recent Accounting Pronouncements - In May 2015, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method. Early adoption is permitted. The updated standard becomes effective for the Company on January 1, 2018. The Company expects to adopt this accounting standard update on a modified retrospective basis in the first quarter of fiscal 2019, and it is currently evaluating the impact of this accounting standard update on the consolidated financial statements. On February 25, 2016, FASB released Accounting Standards Update No. 2016-02, Leases (Topic 842) to bring transparency to lessee balance sheets. The ASU will require organizations that lease assets (lessees) to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The standard will apply to both types of leases-capital (or finance) leases and operating leases. Previously, GAAP has required only capital leases to be recognized on lessee balance sheets. The standard will take effect the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early application will be permitted for all organizations. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Shared-Based Payment Accounting. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for the Company on January 1, 2017 and it is currently evaluating the impact that ASU 2016-09 will have on our consolidated financial statements.

Marketable Securities

Marketable Securities	12 Months Ended
	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	2. Marketable Securities The Company has classified its marketable securities as available-for-sale securities. These securities are carried at estimated fair value with unrealized holding gains and losses included in accumulated other comprehensive income/loss in shareholders’ equity until realized. Gains and losses on marketable security transactions are reported on the specific-identification method. Dividend and interest income are recognized when earned. The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of security at December 31, 2016 and 2015 were as follows: Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value December 31, 2016 Available-for-sale securities: Corporate bonds and notes $ 20,028 $ 64 $ (122 ) $ 19,970 Municipal bonds 6,463 6 (44 ) 6,425 Total available-for-sale securities $ 26,491 $ 70 $ (166 ) $ 26,395 December 31, 2015 Available-for-sale securities: Corporate bonds and notes $ 20,827 $ 50 $ (133 ) $ 20,744 Municipal bonds 5,608 18 (5 ) 5,621 Total available-for-sale securities $ 26,435 $ 68 $ (138 ) $ 26,365 Maturities of marketable securities classified as available-for-sale securities were as follows at December 31, 2016: Amortized Estimated cost fair value Due within one year $ 5,029 $ 5,030 Due after one year through five years 21,353 21,256 Due after five years through ten years 109 109 Total available-for-sale securities $ 26,491 $ 26,395 Debt securities in an unrealized loss position as of December 31, 2016 were not deemed impaired at acquisition and subsequent declines in fair value are not deemed attributed to declines in credit quality. Management believes that it is more likely than not that the securities will receive a full recovery of par value. The available-for-sale marketable securities in a gross unrealized loss position as of December 31, 2016 are summarized as follows: Less than 12 months More than 12 months Total Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses As of December 31, 2016 Corporate bonds and notes $ 10,294 $ (112 ) 1,029 $ (9 ) $ 11,323 $ (121 ) Municipal bonds 3,910 (45 ) — — 3,910 (45 ) $ 14,204 $ (157 ) $ 1,029 $ (9 ) $ 15,233 $ (166 )

Business Combinations, Goodwill

Business Combinations, Goodwill and Intangibles	12 Months Ended
	Dec. 31, 2016
Business Combinations [Abstract]
Business Combinations, Goodwill and Intangibles	3. Business Combinations, Goodwill and Intangibles Acquisition of Sabine On March 7, 2014, the Company completed the acquisition of Sabine, Inc. (“Sabine”) through a stock purchase agreement (“SPA”). Sabine manufactures, designs and sells Sacom professional wireless microphone systems for live and installed audio. It also makes FBX Feedback Exterminator for reliable automatic feedback control. With the addition of Sabine, ClearOne will have reliable and exclusive access to the wireless microphones that are a critical component of ClearOne’s complete microphone portfolio. Pursuant to the SPA, the Company (i) paid initial consideration of $8,141 in cash, (ii) accrued for possible additional earn-out payments over the next two years, estimated to be $657, and (iii) issued 150,000 shares of restricted common stock of the Company, valued at $1,679 (determined on the basis of the closing market price of the Company’s stock on the acquisition date). The purchase price was paid out of cash on hand. The SPA contains representations, warranties and indemnifications customary for a transaction of this type. The following table summarizes the consideration paid for the acquisition: Consideration Cash $ 8,141 Common stock 1,679 Contingent consideration 657 Total $ 10,477 The fair values of Sabine assets acquired and liabilities assumed are based on the information that was available during the measurement period of twelve months from the date of acquisition. The fair value of identified assets and liabilities acquired and goodwill is as follows: Fair value Cash $ 125 Accounts receivable 255 Inventories 844 Prepaid and other 105 Intangibles 3,970 Property and equipment 292 Other long-term assets 11 Goodwill 5,510 Deferred tax asset 245 Trade accounts payable (420 ) Accrued liabilities (405 ) Stock registration costs (55 ) Total $ 10,477 The goodwill of $5,510 related to the acquisition of Sabine is composed of expected synergies in utilizing Sabine technology in ClearOne product offerings, reduction in future combined research and development expenses, and intangible assets including acquired workforce that do not qualify for separate recognition. The goodwill balance of $5,510 related to the acquisition of Sabine is expected to be deductible for tax purposes. Spontania business of Spain-based Dialcom Networks, S.L. On April 1, 2014 ClearOne closed on the acquisition of the Spontania business of Spain-based Dialcom Networks, S.L. The Spontania cloud-based service empowers customers to deploy HD video conferencing, web collaboration, and more with equipment most businesses have and use every day - video-conferencing endpoints, desktops, laptops, web browsers, tablets, and smartphones. With Spontania there is no hardware investment and the service operates off of a reservation-less model, enabling on-demand video communications from virtually anywhere, anytime, with anyone on any device. The aggregate purchase price under the terms of the transaction was approximately €3.66 million in cash (approximately US$5.1 million), after certain closing adjustments. ClearOne did not assume any debt or cash. The cash purchase price was paid out of cash on hand. The addition of this technology was an integral part of the Company’s strategy to build an all-inclusive video collaboration portfolio. The fair value of identified assets and liabilities acquired from the Spontania acquisition was as follows: Fair value Intangibles $ 1,335 Property and equipment 47 Goodwill 3,741 Accrued liabilities (71 ) Total $ 5,052 The goodwill of $3,741 relates to the acquisition of Spontania cloud-based technology and intangible assets including acquired workforce that does not qualify for separate recognition. Acquisitions Expenses The Company incurred $588 in acquisition related expenses for the Sabine and Spontania acquisitions, all of which were categorized under General and administrative expenses in the Consolidated Statement of Income and Comprehensive Income for the year ended December 31, 2014. Goodwill Changes in the carrying amount of the Company’s goodwill for the years ended December 31, 2016, 2015, and 2014 were as follows: 2016 2015 2014 Balance as of January 1, Goodwill $ 12,724 $ 12,724 $ 3,472 Accumulated impairment losses — — — 12,724 12,724 3,472 Goodwill acquired during the year — — 9,252 Balance as of December 31, Goodwill 12,724 12,724 12,724 Accumulated impairment losses — — — $ 12,724 $ 12,724 $ 12,724 Intangible Assets Intangible assets as of December 31, 2016, and 2015 consisted of the following: Estimated As of December 31, useful lives 2016 2015 Tradename 5 to 7 years $ 555 $ 555 Patents and technological know-how 10 years 6,010 5,850 Proprietary software 3 to 15 years 4,341 4,341 Other 3 to 5 years 324 324 11,230 11,230 Accumulated amortization (5,553 ) (4,432 ) Total intangible assets, net $ 5,677 $ 6,638 During the years ended December 31, 2016, 2015 and 2014, amortization of these intangible assets were $1,121, $1,258, and 1,210 respectively. The estimated future amortization expense of intangible assets is as follows: Years ending December 31, 2017 $ 928 2018 853 2019 781 2020 602 2021 602 Thereafter 1,911 $ 5,677

Inventories

Inventories	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventories	4. Inventories Inventories, net of reserves, consisted of the following: As of December 31, 2016 2015 Current: Raw materials $ 2,291 $ 2,735 Finished goods 9,086 10,712 $ 11,377 $ 13,447 Long-term: Raw materials $ 599 $ 375 Finished goods 1,065 1,643 $ 1,664 $ 2,018 Long-term inventory represents inventory held in excess of our current (next 12 months) requirements based on our recent sales and forecasted level of sales. We have developed programs to reduce the inventory to normal operating levels in the near future. We expect to sell the above inventory, net of reserves, at or above the stated cost and believe that no loss will be incurred on its sale. Current finished goods do not include distributor channel inventories in the amounts of approximately $1,530 and $1,628 as of December 31, 2016 and 2015, respectively. Distributor channel inventories represent inventory at distributors and other customers where revenue recognition criteria have not been achieved. The losses incurred on valuation of inventory at the lower of cost or market value and write-off of obsolete inventory amounted to $653, $496 and $946 during the years ended December 31, 2016, 2015 and 2014, respectively.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	5. Property and Equipment Major classifications of property and equipment and estimated useful lives were as follows: Estimated As of December 31, useful lives 2016 2015 Office furniture and equipment 3 to 10 years $ 4,835 $ 4,412 Leasehold improvements 1 to 6 years 1,495 1,488 Manufacturing and test equipment 2 to 10 years 2,537 2,483 8,867 8,383 Accumulated depreciation and amortization (7,354 ) (6,794 ) Property and equipment, net $ 1,513 $ 1,589 Depreciation expense on property and equipment for the years ended December 31, 2016, 2015 and 2014 was $723, $801, and $761, respectively.

Leases and Deferred Rent

Leases and Deferred Rent	12 Months Ended
	Dec. 31, 2016
Leases [Abstract]
Leases and Deferred Rent	6. Leases and Deferred Rent Rent expense is recognized on a straight-line basis over the period of the lease taking into account future rent escalation and holiday periods. Rent expense was $1,099, $1,420 and $1,236, including amortization of deferred rent of $73, $95, and $79 for the years ended December 31, 2016, 2015 and 2014, respectively. We occupy a 5,000 square-foot facility in Gainsville, Florida under the terms of an operating lease that expires in February 2021 with the possibility of renewing the lease for 10 more years. The Gainesville facility was used primarily to support out research and development activities. We currently occupy a 31,000 square-foot facility in Salt Lake City, Utah under the terms of an operating lease expiring in May 2019, which supports our principal administrative, sales, marketing, customer support, and research and product development activities. We occupy a 7,070 square-foot facility in Austin, Texas - under the terms of an operating lease expiring in October 2019. This facility support our administrative, sales, marketing, customer support, and research and development activities. We occupy a 40,000 square-foot warehouse in Salt Lake City, Utah under the terms of an operating lease expiring in December 2021, which serves as our primary inventory fulfillment and repair center. This facility also serves as our assembly workshop for digital signage products. Future minimum lease payments under non-cancellable operating leases with initial terms of one year or more are as follows: Years ending December 31, 2017 $ 928 2018 872 2019 467 2020 239 2021 204 Total minimum lease payments $ 2,710

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued Liabilities	7. Accrued Liabilities Accrued liabilities consist of the following: As of December 31, 2016 2015 Accrued salaries and other compensation $ 1,098 $ 1,170 Sales and marketing programs 319 477 Product warranty 246 288 Other accrued liabilities 231 308 Total $ 1,894 $ 2,243

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies We establish contingent liabilities when a particular contingency is both probable and estimable. The Company is not aware of any pending claims or assessments, other than as described below, which may have a material adverse impact on the Company’s financial position or results of operations. Outsource Manufacturers. Uncertain Tax Positions. Legal Proceedings. On or about October 24, 2016, the Company received written notice from the United States Department of Labor, Occupational Health and Safety Administration (“OSHA”) that a complaint had been filed against it by a former employee. Among other things, the former employee’s OSHA complaint alleges harassment, retaliation, and violations of 18 U.S.C.A. Section 1514A, et seq. In 2016, the Company recorded $927 of pretax gross expenses related to the defense of the OSHA Complaint and review of the allegations underlying the former employee’s OSHA complaint. We expect to incur additional expenses related to legal and other professional services rendered in connection with the defense of OSHA Complaint and/or related matters in future periods and will recognize these expenses as services are received. Expenses related to the defense of the OSHA Complaint and/or related matters may include additional liabilities from OSHA’s expected investigation; future governmental investigations and/or enforcement proceedings; future civil litigation; and future unspecified expenses. The Company maintains an Employment Practices Liability policy with Chubb/Federal Insurance Company (the “EPL Policy”). Based on the allegations contained in the OSHA Complaint, the Company has tendered a claim for coverage under the EPL Policy. In addition, the Company is also involved from time to time in various claims and legal proceedings which arise in the normal course of our business. Such matters are subject to many uncertainties and outcomes that are not predictable. However, based on the information available to us, we do not believe any such other proceedings will have a material adverse effect on our business, results of operations, financial position, or liquidity. Conclusion We believe there are no other items that will have a material adverse impact on the Company’s financial position or results of operations. Legal proceedings are subject to all of the risks and uncertainties of legal proceedings and there can be no assurance as to the probable result of any legal proceedings. The Company believes it has adequately accrued for the aforementioned contingent liabilities. If adverse outcomes were to occur, our financial position, results of operations and cash flows could be negatively affected materially for the period in which the adverse outcomes are known.

Share-Based Payments

Share-Based Payments	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Payments	9. Share-Based Payments Employee Stock Option Plans The Company’s share-based incentive plans offering stock options primarily consists of two plans. Under both plans, one new share is issued for each stock option exercised. The plans are described below. The Company’s 1998 Incentive Plan (the “1998 Plan”) was the Company’s primary plan through November 2007. Under this plan shares of common stock was made available for issuance to employees and directors. Through December 1999, 1,066,000 options were granted that would cliff vest after 9.8 years; however, such vesting was accelerated for 637,089 of these options upon meeting certain earnings per share goals through the fiscal year ended June 30, 2003. Subsequent to December 1999 and through June 2002, 1,248,250 options were granted that would cliff vest after 6.0 years; however, such vesting was accelerated for 300,494 of these options upon meeting certain earnings per share goals through the fiscal year ended June 30, 2005. The Company’s 2007 Equity Incentive Plan (the “2007 Plan”) was restated and approved by the shareholders on December 12, 2015. Provisions of the restated 2007 Plan include the granting of up to 2,000,000 incentive and non-qualified stock options, stock appreciation rights, restricted stock and restricted stock units. Options may be granted to employees, officers, non-employee directors and other service providers and may be granted upon such terms as the Compensation Committee of the Board of Directors determines in their sole discretion. Of the options granted subsequent to June 2002, all vesting schedules are based on 3 or 4-year vesting schedules, with either one-third or one-fourth vesting on the first anniversary and the remaining options vesting ratably over the remainder of the vesting term. Generally, directors and officers have 3-year vesting schedules and all other employees have 4-year vesting schedules. Additionally, in the event of a change in control or the occurrence of a corporate transaction, the Company’s Board of Directors has the authority to elect that all unvested options shall vest and become exercisable immediately prior to the event or closing of the transaction. All options outstanding as of December 31, 2016 had contractual lives of ten years. Under the 1998 Plan, 2,500,000 shares were authorized for grant. As of December 31, 2016, there were 150,000 options outstanding under the 1998 Plan, which includes the cliff vesting and 3 or 4-year vesting options discussed above. As of December 31, 2016, there were 700,232 options outstanding under the 2007 Plan. As of December 31, 2016, the 2007 Plan had 826,268 authorized unissued options, while there were no options remaining that could be granted under the 1998 Plan. The Company uses judgment in determining the fair value of the share-based payments on the date of grant using an option-pricing model with assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the risk-free interest rate of the awards, the expected life of the awards, the expected volatility over the term of the awards, and the expected dividends of the awards. The Company uses the Black-Scholes option pricing model to determine the fair value of share-based payments granted under the guidelines of ASC Topic 718. In applying the Black-Scholes methodology to the options granted, the Company used the following assumptions: Year ended December 31, 2016 2015 2014 Risk-free interest rate, average 1.52 % 2.00 % 2.20 % Expected option life, average 6.1 years 6.1 years 8.2 years Expected price volatility, average 43.75 % 44.30 % 47.60 % Expected dividend yield 1.71 % 1.10 % -% The risk-free interest rate is determined using the U.S. Treasury rate in effect as of the date of the grant, based on the expected life of the stock option. The expected life of the stock option is determined using historical data. The expected price volatility is determined using a weighted average of daily historical volatility of the Company’s stock price over the corresponding expected option life. Under guidelines of ASC Topic 718, the Company recognizes compensation cost net of an expected forfeiture rate and recognized the associated compensation cost for only those awards expected to vest on a straight-line basis over the underlying requisite service period. The Company estimated the forfeiture rates based on its historical experience and expectations about future forfeitures. The following table shows the stock option activity: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value As of December 31, 2013 1,111,274 $ 5.15 Granted 193,500 8.83 Expired and canceled (29,532 ) 6.87 Forfeited prior to vesting (729 ) 8.88 Exercised (234,432 ) 5.72 As of December 31, 2014 1,040,081 $ 5.65 5.60 $ 4,286 Granted 56,666 13.03 Reinstated 4,583 4.47 Expired and canceled (1,000 ) 3.42 Forfeited prior to vesting (15,252 ) 7.85 Exercised (56,143 ) 5.51 As of December 31, 2015 1,028,935 $ 6.03 4.73 $ 7,104 Granted 217,700 11.73 Expired and canceled (4,186 ) 12.03 Forfeited prior to vesting (17,360 ) 10.67 Exercised (374,857 ) 4.46 As of December 31, 2016 850,232 $ 8.06 5.78 $ 3,001 Vested and Expected to Vest at December 31, 2014 1,040,081 $ 5.65 5.60 $ 4,286 Vested at December 31, 2014 730,016 $ 4.67 4.15 $ 3,271 Vested and Expected to Vest at December 31, 2015 1,028,935 $ 6.03 4.73 $ 7,104 Vested at December 31, 2015 820,022 $ 5.10 3.74 $ 6,419 Vested and Expected to Vest at December 31, 2016 850,232 $ 8.06 5.78 $ 3,001 Vested at December 31, 2016 552,097 $ 6.33 4.09 $ 2,843 The weighted average per share fair value of options granted during the years ending December 31, 2016, 2015 and 2014 was $4.27, $5.27, and $ 4.85 respectively. The total intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014 was $2,824, $404, and $1,337 respectively. The total pre-tax compensation cost related to stock options recognized during the years ended December 31, 2016, 2015, and 2014 was $628, $552 and $401, respectively. Tax benefit from compensation cost related to stock options during the years ended December 31, 2016, 2015 and 2014 was $107, $41 and $211, respectively. As of December 31, 2016, the total compensation cost related to stock options not yet recognized and before the effect of any forfeitures was $1,127, which is expected to be recognized over approximately the next 2.19 years on a straight-line basis. Employee Stock Purchase Plan During 2016, the Company issued shares to employees under the Company’s 2015 Employee Stock Purchase Plan (the “ESPP”). The ESPP was approved by the Company’s shareholders on December 12, 2015. As of December 31, 2016, 475,893 of the originally approved 500,000 shares were available for offerings under the ESPP. Offering periods under the ESPP commence on each Jan 1 and July 1, and continue for a duration of six months. The ESPP is available to all employees who do not own, or are deemed to own, shares of stock making up an excess of 5% of the combined voting power of the Company, its parent or subsidiary. During each offering period, each eligible employee may purchase shares under the ESPP after authorizing payroll deductions. Under the ESPP, each employee may purchase up to the lesser of 2,500 shares or $25 of fair market value (based on the established purchase price) of the Company’s stock for each offering period. Unless the employee has previously withdrawn from the offering, his or her accumulated payroll deductions will be used to purchase common stock on the last business day of the period at a price equal to 85% (or a 15% discount) of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. Shares purchased and compensation expense associated Employee Stock Purchase Plans were as follows: 2016 2015 2014 Shares purchased under ESPP plans 9,140 14,982 82 Plan compensation expense $ 18 $ 31 $ - Stock Repurchase Program and Cash Dividends In May 2012, our Board of Directors authorized a stock repurchase program to purchase the Company’s common stock in the open market. A total of 272,767 shares costing $2,598 were purchased under this program during the year ended December 31, 2014. The cost of shares purchased were recorded as a reduction to shareholders’ equity. On December 2, 2015, the Company announced the discontinuance of the stock repurchase program along with the initiation of a cash dividend plan. On January 31, 2017, the Company declared its most recent dividend under this plan of $0.05 per share of ClearOne common stock, payable on March 1, 2017 to shareholders of record on February 15, 2017. In addition, on March 1, 2017, our Board of Directors authorized an increase in our quarterly dividend from $0.05 per share to $0.07 per share beginning with the second quarter dividend in 2017 expected to be paid on or about June 1, 2017. On March 9, 2016, the Board of Directors of the Company authorized the repurchase of up to $10,000 of the Company’s outstanding shares of common stock under a new stock repurchase program. In connection with the repurchase authorization, the Company was authorized to complete the repurchase through open market transactions or through an accelerated share repurchase program, in each case to be executed at management’s discretion based on business and market conditions, stock price, trading restrictions, acquisition activity and other factors. The repurchase program may be suspended or discontinued at any time without prior notice. The transactions effectuated to date occurred in open market purchases. On March 1, 2017, the Board of Directors of the Company renewed and extended the repurchase program for up to an additional $10 million of common stock over the next twelve months. In connection with the repurchase extension authorization, the Company was authorized to complete the repurchase through open market transactions or through an accelerated share repurchase program, in each case to be executed at management’s discretion based on business and market conditions, stock price, trading restrictions, acquisition activity and other factors. The repurchase program may be suspended or discontinued at any time without prior notice. The transactions effectuated to date occurred in open market purchases. During the twelve months ended December 31, 2016, we acquired the following shares of common stock under the current stock repurchase program: $ in thousands except per share price Total Number of Shares Purchased (a) Average Price Paid per Share (b) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (c) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs ($ thousands) (d) March 9 to March 31 33,600 $ 12.02 33,600 $ 9,596 April 1 to June 30 330,515 11.25 330,515 5,885 July 1 to September 30 91,965 11.16 91,965 4,861 October 1 to December 31 86,179 11.00 86,179 3,914 Total 542,259 $ 11.25 542,259 From March 11, 2016 to March 17, 2016, the Company offered to repurchase eligible vested options to purchase shares under the 1998 Plan and the 2007 Plan from employees and directors. The Company repurchased delivered options at a repurchase price equal to the difference between the closing market price on the date of the employee’s communication of accepting the repurchase offer and the exercise price of such employee’s delivered options, subject to applicable withholding taxes and charges. The Company repurchased 225,542 stock options from employees and directors at an average purchase price of $7.77.

Significant Customers

Significant Customers	12 Months Ended
	Dec. 31, 2016
Risks and Uncertainties [Abstract]
Significant Customers	10. Significant Customers Sales to significant customers that represented more than 10 percent of total revenues are as follows: Year ended December 31, 2016 2015 2014 Customer A 16.3 % 14.2 % 16.0 % Customer B - %* 10.4 % - %* Total 16.3 % 24.6 % 16.0 % * Sales didn’t exceed 10% of the revenue. The following table summarizes the percentage of total gross accounts receivable from significant customers: As of December 31, 2016 2015 Customer A 13.40 % 18 % Customer B 11.70 % 16 % Total 25.10 % 34 % These customers facilitate product sales to a large number of end-users, none of which is known to account for more than 10 percent of the Company’s revenue from product sales. Nevertheless, the loss of one or more of these customers could reduce revenue and have a material adverse effect on the Company’s business and results of operations.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	11. Fair Value Measurements The fair value of the Company’s financial instruments reflects the amounts that the Company estimates it will receive in connection with the sale of an asset or pay in connection with the transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value hierarchy prioritizes the use of inputs used in valuation techniques into the following three levels: Level 1 Level 2 Level 3 The substantial majority of the Company’s financial instruments are valued using quoted prices in active markets or based on other observable inputs. The following tables set forth the fair value of the financial instruments re-measured by the Company as of December 31, 2016 and 2015: Level 1 Level 2 Level 3 Total December 31, 2016 Corporate bonds and notes $ — $ 19,970 $ — $ 19,970 Municipal bonds — 6,425 — 6,425 Total $ — $ 26,395 $ — $ 26,395 December 31, 2015 Corporate bonds and notes $ — $ 20,744 $ — $ 20,744 Municipal bonds — 5,621 — 5,621 Total $ — $ 26,365 $ — $ 26,365

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes Consolidated income before taxes for domestic and foreign operations consisted of the following: Year ended December 31, 2016 2015 2014 Domestic $ 6,332 $ 13,295 $ 9,615 Foreign (2,454 ) (2,744 ) (1,386 ) Total $ 3,878 $ 10,551 $ 8,229 The Company’s (provision) for income taxes consisted of the following: Year ended December 31, 2016 2015 2014 Current: Federal $ (593 ) $ (3,386 ) $ (2,750 ) State 63 (344 ) (173 ) Foreign (37 ) — (109 ) Total current (567 ) (3,730 ) (3,032 ) Deferred: Federal (633 ) (220 ) 379 State (17 ) (10 ) 27 Foreign 115 470 401 (535 ) 240 807 Change in valuation allowance (332 ) (285 ) (408 ) Total deferred (867 ) (45 ) 399 (Provision) for income taxes $ (1,434 ) $ (3,775 ) $ (2633 ) The income tax (provision) differs from that computed at the federal statutory corporate income tax rate as follows: Year ended December 31, 2016 2015 2014 Tax (provision) at Federal statutory rate $ (1,318 ) $ (3,587 ) $ (2,798 ) State income tax (provision), net of federal benefit (148 ) (408 ) (257 ) Research and development tax credits 423 456 549 Foreign earnings or losses taxed at different rates (292 ) (231 ) (102 ) Other 233 280 383 Change in valuation allowance (332 ) (285 ) (408 ) Tax (provision) $ (1,434 ) $ (3,775 ) $ (2,633 ) The tax effects of significant temporary differences representing net deferred tax assets and liabilities consisted of the following: 2016 2015 Deferred revenue $ 845 $ 1,019 Basis difference in intangible assets (56 ) 26 Inventory reserve 2,650 2,452 Net operating loss carryforwards 1,391 1,347 Research and development tax credits 88 — Accrued expenses 92 165 Stock-based compensation 584 672 Allowance for sales returns and doubtful accounts 70 20 Difference in property and equipment basis (350 ) (423 ) Other 743 886 Total net deferred income tax asset 6,057 6,164 Less: Valuation allowance (1,403 ) (1,071 ) Net deferred income tax asset (liability) $ 4,654 $ 5,093 The Company has not provided for U.S. deferred income taxes or foreign withholding taxes on undistributed earnings of its non-U.S. subsidiaries since these earnings are intended to be reinvested indefinitely, in accordance with guidelines contained in ASC Topic 740, Accounting for Income Taxes In accordance with ASC Topic 740, the Company analyzed its valuation allowance at December 31, 2016 and determined that, based upon available evidence, it is more likely than not that certain of its deferred tax assets may not be realized and, as such, has established a valuation allowance against certain deferred tax assets. These deferred tax assets include foreign net operating loss carryforwards, foreign intangible assets, state R&D tax credit carryforwards, and capital loss carryforwards. The Company has federal net operating loss (“NOL”) carryforwards of approximately $755 (pre-tax), Hong Kong NOL carryforwards of approximately $255, and Spain NOL carryforwards of approximately $855. The federal NOL carryforwards will begin to expire in 2029. The Hong Kong and Spain NOL carryforwards do not expire. Effective July 1, 2007, the Company adopted the accounting standards related to uncertain tax positions. This standard requires that tax positions be assessed using a two-step process. A tax position is recognized if it meets a “more likely than not” threshold, and is measured at the largest amount of benefit that is greater than 50 percent likely of being realized. Uncertain tax positions must be reviewed at each balance sheet date. Liabilities recorded as a result of this analysis must generally be recorded separately from any current or deferred income tax accounts. The total amount of unrecognized tax benefits at December 31, 2016 and 2015, that would favorably impact our effective tax rate if recognized was $233 and $176, respectively. As of December 31, 2016 and 2015, we accrued $87 and $55, respectively, in interest and penalties related to unrecognized tax benefits. We account for interest expense and penalties for unrecognized tax benefits as part of our income tax provision. Although we believe our estimates are reasonable, we can make no assurance that the final tax outcome of these matters will not be different from that which we have reflected in our historical income tax provisions and accruals. Such difference could have a material impact on our income tax provision and operating results in the period in which we make such determination. A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows: Year ended December 31, 2016 2015 Balance - beginning of year $ 1,126 $ 1,678 Additions based on tax positions related to the current year 16 52 Additions for tax positions of prior years 47 5 Reductions for tax positions of prior years - (503 ) Settlements - — Lapse in statutes of limitations - (106 ) Uncertain tax positions, ending balance $ 1,189 $ 1,126 The Company’s U.S. federal income tax returns for 2012 through 2015 are subject to examination. The Company also files in various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to federal, state, or non-U.S. income tax examinations by tax authorities for years prior to 2012. The Company completed its audit by the Internal Revenue Service (“IRS”) for its 2006 tax return in 2010. As a result of the audit by the IRS, there were no material adjustments made to the Company’s tax return. The IRS commenced an examination of the Company’s 2012 tax return. We do not anticipate the examination will result in a material change to its financial position. The Inland Revenue Department of Hong Kong, a Special Administrative Region (the “IRD”), commenced an examination of the Company’s Hong Kong profits tax returns for 2009 through 2011 in the fourth quarter of 2012, which was completed subsequent to December 31, 2016. As a result of the audit, there were no material changes to the Company’s financial position. During the next twelve months, it is reasonably possible that the amount of the Company’s unrecognized income tax benefits could change significantly. These changes could be the result of our ongoing tax audits or the settlement of outstanding audit issues. However, due to the issues being examined, at the current time, an estimate of the range of reasonably possible outcomes cannot be made, beyond amounts currently accrued.

Geographic Sales Information

Geographic Sales Information	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Geographic Sales Information	13. Geographic Sales Information The United States was the only country to contribute more than 10 percent of total revenues in each fiscal year. The Company’s revenues are substantially denominated in U.S. dollars and are summarized geographically as follows: Year ended December 31, 2016 2015 2014 United States $ 31,838 $ 39,563 $ 39,837 All other countries 16,799 18,233 18,072 Total $ 48,637 $ 57,796 $ 57,909

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	14. Subsequent Events On January 31, 2017, the Company declared a stock dividend of $0.05 per share of ClearOne common stock payable on March 1, 2017 to shareholders of record on February 15, 2017. In March 2017, the Company renewed and extended its common stock repurchase program of $10,000 to continue through March 9, 2018.

Business Description, Basis o22

Business Description, Basis of Presentation and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Fiscal Year	Fiscal Year
Consolidation	Consolidation
Use of Estimates	Use of Estimates
Foreign Currency Translation	Foreign Currency Translation
Concentration Risk	Concentration Risk
Cash Equivalents	Cash Equivalents
Marketable Securities	Marketable Securities - A decline in the market value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and establishes a new cost basis for the security. Losses are charged against “Other income” when a decline in fair value is determined to be other than temporary. We review several factors to determine whether a loss is other than temporary. These factors include, but are not limited to: (i) the extent to which the fair value is less than cost and the cause for the fair value decline, (ii) the financial condition and near term prospects of the issuer, (iii) the length of time a security is in an unrealized loss position and (iv) our ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. There were no other-than-temporary impairments recognized during the years ended December 31, 2016, 2015 and 2014.
Accounts Receivable	Accounts Receivable The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Management regularly analyzes accounts receivable including current aging, historical write-off experience, customer concentrations, customer creditworthiness, and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. We review customer accounts quarterly by first assessing accounts with aging over a specific duration and balance over a specific amount. We review all other balances on a pooled basis based on past collection experience. Accounts identified in our customer-level review as exceeding certain thresholds are assessed for potential allowance adjustment if we conclude the financial condition of that customer has deteriorated, adversely affecting their ability to make payments. Delinquent account balances are written off if the Company determines that the likelihood of collection is not probable. If the assumptions that are used to determine the allowance for doubtful accounts change, the Company may have to provide for a greater level of expense in future periods or reverse amounts provided in prior periods. The Company’s allowance for doubtful accounts activity for the years ended as follows: Year Ended December 31, 2016 2015 2014 Balance at beginning of the year $ 54 $ 58 $ 129 Allowance increase (decrease) 148 36 (49 ) Write offs, net of recoveries (15 ) (40 ) (22 ) Balance at end of the year $ 187 $ 54 $ 58
Inventories	Inventories Distributor channel inventories include products that have been delivered to customers for which revenue recognition criteria have not been met. The inventory also includes advance replacement units (valued at cost) provided by the Company to end-users to service defective products under warranty. The value of advance replacement units included in the inventory was $21 and $75, as of December 31, 2016 and 2015, respectively.
Property and Equipment	Property and Equipment
Goodwill and Intangible Assets	Goodwill and Intangible Assets – Intangibles – Goodwill and Other Note 3 – Business Combinations, Goodwill and Intangibles
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets –
Revenue Recognition	Revenue Recognition The Company provides a right of return on product sales to certain distributors and other resellers under a product rotation program. Under this seldom-used program, once a quarter, a distributor or reseller is allowed to return products purchased during the prior 180 days for a total value generally not exceeding 15% of the distributor’s or reseller’s net purchases during the preceding quarter. The distributor or reseller is, however, required to place a new purchase order for an amount not less than the value of products returned under the stock rotation program. When products are returned, the associated revenue, cost of goods sold, inventory and accounts receivable originally recorded are reversed. When the new order is fulfilled, the revenue, associated cost of goods sold, inventory and accounts receivable are recorded and the product revenue is subject to the deferral analysis described below. In a small number of cases, the distributors are also permitted to return products for other business reasons. Revenue from product sales to distributors is not recognized until the return privilege has expired or until it can be determined with reasonable certainty that the return privilege has expired, which approximates when product is sold-through to customers of the Company’s distributors (dealers, system integrators, value-added resellers, and end-users) rather than when the product is initially shipped to a distributor. At each quarter-end, the Company evaluates the inventory in the channel through information provided by our distributors. The level of inventory in the channel will fluctuate up-ward or down-ward each quarter, based upon its distributors’ individual operations. Accordingly, at each quarter-end, the deferral for revenue and associated cost of goods sold are calculated and recorded based upon the actual channel inventory reported at quarter-end. Further, with respect to distributors and other channel partners not reporting the channel inventory, the revenue and associated cost of goods sold are deferred until the Company receives payment for the product sales made to such distributors or channel partners. The amount of deferred cost of goods sold is included in distributor channel inventories. The details of deferred revenue and associated cost of goods sold and gross profit are as follows: As of December 31, 2016 2015 Deferred revenue $ 3,882 $ 4,549 Deferred cost of goods sold 1,530 1,628 Deferred gross profit $ 2,352 $ 2,921 The Company offers rebates and market development funds to certain of its distributors, dealers/resellers, and end-users based upon the volume of product purchased by them. The Company records rebates as a reduction of revenue in accordance with GAAP. The Company provides, at its discretion, advance replacement units to end-users on defective units of certain products under warranty. Since the purpose of these units is not revenue generating, the Company tracks the units due from the end-user, until the defective unit has been returned. Any amount due from the customer upon failure to return the products is accounted as receivable only after establishing customer's failure to return the products. The inventory due from the customer is accounted at cost or market value whichever is lower.
Sales and Similar Taxes	Sales and Similar Taxes -
Shipping and Handling Costs	Shipping and Handling Costs –
Warranty Costs	Warranty Costs The details of changes in the Company’s warranty accrual are as follows: Year Ended December 31, 2016 2015 2014 Balance at the beginning of year $ 288 $ 331 $ 338 Accruals/additions 361 442 511 Usage/claims (403 ) (485 ) (518 ) Balance at end of year $ 246 $ 288 $ 331
Advertising	Advertising
Research and Product Development Costs	Research and Product Development Costs
Income Taxes	Income Taxes Company’s income tax provision or benefit. As of December 31, 2016 and 2015, the Company had a valuation allowance of $1,404 and $1,071, respectively against foreign net operating losses, foreign intangible assets, capital losses carryforwards, and state research and development credits. The Company follows the provisions c o Income Taxes. Judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company’s tax returns are subject to audit by various tax authorities. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates.
Earnings Per Share	Earnings Per Share Year Ended December 31, 2016 2015 2014 Numerator: Net income $ 2,444 $ 6,776 $ 5,596 Denominator: Basic weighted average shares 9,021,980 9,127,385 9,166,769 Dilutive common stock equivalents using treasury stock method 284,054 467,274 414,557 Diluted weighted average shares 9,306,034 9,594,659 9,581,326 Basic earnings per common share: $ 0.27 $ 0.74 $ 0.61 Diluted earnings per common share: $ 0.26 $ 0.71 $ 0.58 Weighted average options outstanding 885,163 1,053,785 975,696 Anti-dilutive options not included in the computation 323,644 177,125 209,751
Share-Based Payment	Share-Based Payment
Recent Accounting Pronouncements	Recent Accounting Pronouncements - In May 2015, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method. Early adoption is permitted. The updated standard becomes effective for the Company on January 1, 2018. The Company expects to adopt this accounting standard update on a modified retrospective basis in the first quarter of fiscal 2019, and it is currently evaluating the impact of this accounting standard update on the consolidated financial statements. On February 25, 2016, FASB released Accounting Standards Update No. 2016-02, Leases (Topic 842) to bring transparency to lessee balance sheets. The ASU will require organizations that lease assets (lessees) to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The standard will apply to both types of leases-capital (or finance) leases and operating leases. Previously, GAAP has required only capital leases to be recognized on lessee balance sheets. The standard will take effect the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early application will be permitted for all organizations. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Shared-Based Payment Accounting. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for the Company on January 1, 2017 and it is currently evaluating the impact that ASU 2016-09 will have on our consolidated financial statements.

Business Description, Basis o23

Business Description, Basis of Presentation and Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Allowance for Doubtful Accounts Activity	The Company’s allowance for doubtful accounts activity for the years ended as follows: Year Ended December 31, 2016 2015 2014 Balance at beginning of the year $ 54 $ 58 $ 129 Allowance increase (decrease) 148 36 (49 ) Write offs, net of recoveries (15 ) (40 ) (22 ) Balance at end of the year $ 187 $ 54 $ 58
Schedule of Deferred Revenue and Associated Cost of Goods Sold and Gross Profit	The details of deferred revenue and associated cost of goods sold and gross profit are as follows: As of December 31, 2016 2015 Deferred revenue $ 3,882 $ 4,549 Deferred cost of goods sold 1,530 1,628 Deferred gross profit $ 2,352 $ 2,921
Schedule of Product Warranty Liability	The details of changes in the Company’s warranty accrual are as follows: Year Ended December 31, 2016 2015 2014 Balance at the beginning of year $ 288 $ 331 $ 338 Accruals/additions 361 442 511 Usage/claims (403 ) (485 ) (518 ) Balance at end of year $ 246 $ 288 $ 331
Schedule of Basic and Earnings Per Common Share	The following table sets forth the computation of basic and diluted earnings per common share: Year Ended December 31, 2016 2015 2014 Numerator: Net income $ 2,444 $ 6,776 $ 5,596 Denominator: Basic weighted average shares 9,021,980 9,127,385 9,166,769 Dilutive common stock equivalents using treasury stock method 284,054 467,274 414,557 Diluted weighted average shares 9,306,034 9,594,659 9,581,326 Basic earnings per common share: $ 0.27 $ 0.74 $ 0.61 Diluted earnings per common share: $ 0.26 $ 0.71 $ 0.58 Weighted average options outstanding 885,163 1,053,785 975,696 Anti-dilutive options not included in the computation 323,644 177,125 209,751

Marketable Securities (Tables)

Marketable Securities (Tables)	12 Months Ended
	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-sale Securities Reconciliation	The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of security at December 31, 2016 and 2015 were as follows: Amortized cost Gross unrealized holding gains Gross unrealized holding losses Estimated fair value December 31, 2016 Available-for-sale securities: Corporate bonds and notes $ 20,028 $ 64 $ (122 ) $ 19,970 Municipal bonds 6,463 6 (44 ) 6,425 Total available-for-sale securities $ 26,491 $ 70 $ (166 ) $ 26,395 December 31, 2015 Available-for-sale securities: Corporate bonds and notes $ 20,827 $ 50 $ (133 ) $ 20,744 Municipal bonds 5,608 18 (5 ) 5,621 Total available-for-sale securities $ 26,435 $ 68 $ (138 ) $ 26,365
Schedule of Maturities of Marketable Securities	Maturities of marketable securities classified as available-for-sale securities were as follows at December 31, 2016: Amortized Estimated cost fair value Due within one year $ 5,029 $ 5,030 Due after one year through five years 21,353 21,256 Due after five years through ten years 109 109 Total available-for-sale securities $ 26,491 $ 26,395
Schedule of Available-for-sale Securities	The available-for-sale marketable securities in a gross unrealized loss position as of December 31, 2016 are summarized as follows: Less than 12 months More than 12 months Total Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses Estimated fair value Gross unrealized holding losses As of December 31, 2016 Corporate bonds and notes $ 10,294 $ (112 ) 1,029 $ (9 ) $ 11,323 $ (121 ) Municipal bonds 3,910 (45 ) — — 3,910 (45 ) $ 14,204 $ (157 ) $ 1,029 $ (9 ) $ 15,233 $ (166 )

Business Combinations, Goodwi25

Business Combinations, Goodwill and Intangibles (Tables)	12 Months Ended
	Dec. 31, 2016
Business Acquisition [Line Items]
Schedule of Goodwill	Changes in the carrying amount of the Company’s goodwill for the years ended December 31, 2016, 2015, and 2014 were as follows: 2016 2015 2014 Balance as of January 1, Goodwill $ 12,724 $ 12,724 $ 3,472 Accumulated impairment losses — — — 12,724 12,724 3,472 Goodwill acquired during the year — — 9,252 Balance as of December 31, Goodwill 12,724 12,724 12,724 Accumulated impairment losses — — — $ 12,724 $ 12,724 $ 12,724
Schedule of Intangible Assets	Intangible assets as of December 31, 2016, and 2015 consisted of the following: Estimated As of December 31, useful lives 2016 2015 Tradename 5 to 7 years $ 555 $ 555 Patents and technological know-how 10 years 6,010 5,850 Proprietary software 3 to 15 years 4,341 4,341 Other 3 to 5 years 324 324 11,230 11,230 Accumulated amortization (5,553 ) (4,432 ) Total intangible assets, net $ 5,677 $ 6,638
Schedule of Estimated Future Amortization Expense of Intangible Assets	The estimated future amortization expense of intangible assets is as follows: Years ending December 31, 2017 $ 928 2018 853 2019 781 2020 602 2021 602 Thereafter 1,911 $ 5,677
Sabine, Inc. [Member]
Business Acquisition [Line Items]
Schedule of Business Acquisition, Consideration Transferred	The following table summarizes the consideration paid for the acquisition: Consideration Cash $ 8,141 Common stock 1,679 Contingent consideration 657 Total $ 10,477
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The fair value of identified assets and liabilities acquired and goodwill is as follows: Fair value Cash $ 125 Accounts receivable 255 Inventories 844 Prepaid and other 105 Intangibles 3,970 Property and equipment 292 Other long-term assets 11 Goodwill 5,510 Deferred tax asset 245 Trade accounts payable (420 ) Accrued liabilities (405 ) Stock registration costs (55 ) Total $ 10,477
Spontania [Member]
Business Acquisition [Line Items]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The fair value of identified assets and liabilities acquired from the Spontania acquisition was as follows: Fair value Intangibles $ 1,335 Property and equipment 47 Goodwill 3,741 Accrued liabilities (71 ) Total $ 5,052

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Net of Reserves	Inventories, net of reserves, consisted of the following: As of December 31, 2016 2015 Current: Raw materials $ 2,291 $ 2,735 Finished goods 9,086 10,712 $ 11,377 $ 13,447 Long-term: Raw materials $ 599 $ 375 Finished goods 1,065 1,643 $ 1,664 $ 2,018

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Major classifications of property and equipment and estimated useful lives were as follows: Estimated As of December 31, useful lives 2016 2015 Office furniture and equipment 3 to 10 years $ 4,835 $ 4,412 Leasehold improvements 1 to 6 years 1,495 1,488 Manufacturing and test equipment 2 to 10 years 2,537 2,483 8,867 8,383 Accumulated depreciation and amortization (7,354 ) (6,794 ) Property and equipment, net $ 1,513 $ 1,589

Leases and Deferred Rent (Table

Leases and Deferred Rent (Tables)	12 Months Ended
	Dec. 31, 2016
Leases [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Future minimum lease payments under non-cancellable operating leases with initial terms of one year or more are as follows: Years ending December 31, 2017 $ 928 2018 872 2019 467 2020 239 2021 204 Total minimum lease payments $ 2,710

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following: As of December 31, 2016 2015 Accrued salaries and other compensation $ 1,098 $ 1,170 Sales and marketing programs 319 477 Product warranty 246 288 Other accrued liabilities 231 308 Total $ 1,894 $ 2,243

Share-Based Payments (Tables)

Share-Based Payments (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation - Black-Scholes Assumptions	In applying the Black-Scholes methodology to the options granted, the Company used the following assumptions: Year ended December 31, 2016 2015 2014 Risk-free interest rate, average 1.52 % 2.00 % 2.20 % Expected option life, average 6.1 years 6.1 years 8.2 years Expected price volatility, average 43.75 % 44.30 % 47.60 % Expected dividend yield 1.71 % 1.10 % -%
Schedule of Stock Option Activity	The following table shows the stock option activity: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value As of December 31, 2013 1,111,274 $ 5.15 Granted 193,500 8.83 Expired and canceled (29,532 ) 6.87 Forfeited prior to vesting (729 ) 8.88 Exercised (234,432 ) 5.72 As of December 31, 2014 1,040,081 $ 5.65 5.60 $ 4,286 Granted 56,666 13.03 Reinstated 4,583 4.47 Expired and canceled (1,000 ) 3.42 Forfeited prior to vesting (15,252 ) 7.85 Exercised (56,143 ) 5.51 As of December 31, 2015 1,028,935 $ 6.03 4.73 $ 7,104 Granted 217,700 11.73 Expired and canceled (4,186 ) 12.03 Forfeited prior to vesting (17,360 ) 10.67 Exercised (374,857 ) 4.46 As of December 31, 2016 850,232 $ 8.06 5.78 $ 3,001 Vested and Expected to Vest at December 31, 2014 1,040,081 $ 5.65 5.60 $ 4,286 Vested at December 31, 2014 730,016 $ 4.67 4.15 $ 3,271 Vested and Expected to Vest at December 31, 2015 1,028,935 $ 6.03 4.73 $ 7,104 Vested at December 31, 2015 820,022 $ 5.10 3.74 $ 6,419 Vested and Expected to Vest at December 31, 2016 850,232 $ 8.06 5.78 $ 3,001 Vested at December 31, 2016 552,097 $ 6.33 4.09 $ 2,843
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity	Shares purchased and compensation expense associated Employee Stock Purchase Plans were as follows: 2016 2015 2014 Shares purchased under ESPP plans 9,140 14,982 82 Plan compensation expense $ 18 $ 31 $ -
Schedule of Current Stock Repurchase Program	During the twelve months ended December 31, 2016, we acquired the following shares of common stock under the current stock repurchase program: $ in thousands except per share price Total Number of Shares Purchased (a) Average Price Paid per Share (b) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (c) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs ($ thousands) (d) March 9 to March 31 33,600 $ 12.02 33,600 $ 9,596 April 1 to June 30 330,515 11.25 330,515 5,885 July 1 to September 30 91,965 11.16 91,965 4,861 October 1 to December 31 86,179 11.00 86,179 3,914 Total 542,259 $ 11.25 542,259

Significant Customers (Tables)

Significant Customers (Tables)	12 Months Ended
	Dec. 31, 2016
Risks and Uncertainties [Abstract]
Schedules of Concentration of Risk, by Risk Factor of Sales Revenue and Accounts Receivable	Sales to significant customers that represented more than 10 percent of total revenues are as follows: Year ended December 31, 2016 2015 2014 Customer A 16.3 % 14.2 % 16.0 % Customer B - %* 10.4 % - %* Total 16.3 % 24.6 % 16.0 % * Sales didn’t exceed 10% of the revenue. The following table summarizes the percentage of total gross accounts receivable from significant customers: As of December 31, 2016 2015 Customer A 13.40 % 18 % Customer B 11.70 % 16 % Total 25.10 % 34 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of Fair Value Assets and Liabilities Measured On Recurring Basis	The following tables set forth the fair value of the financial instruments re-measured by the Company as of December 31, 2016 and 2015: Level 1 Level 2 Level 3 Total December 31, 2016 Corporate bonds and notes $ — $ 19,970 $ — $ 19,970 Municipal bonds — 6,425 — 6,425 Total $ — $ 26,395 $ — $ 26,395 December 31, 2015 Corporate bonds and notes $ — $ 20,744 $ — $ 20,744 Municipal bonds — 5,621 — 5,621 Total $ — $ 26,365 $ — $ 26,365

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Income Before Income Tax, Domestic and Foreign	Consolidated income before taxes for domestic and foreign operations consisted of the following: Year ended December 31, 2016 2015 2014 Domestic $ 6,332 $ 13,295 $ 9,615 Foreign (2,454 ) (2,744 ) (1,386 ) Total $ 3,878 $ 10,551 $ 8,229
Schedule of Components of Provision for Income Taxes	The Company’s (provision) for income taxes consisted of the following: Year ended December 31, 2016 2015 2014 Current: Federal $ (593 ) $ (3,386 ) $ (2,750 ) State 63 (344 ) (173 ) Foreign (37 ) — (109 ) Total current (567 ) (3,730 ) (3,032 ) Deferred: Federal (633 ) (220 ) 379 State (17 ) (10 ) 27 Foreign 115 470 401 (535 ) 240 807 Change in valuation allowance (332 ) (285 ) (408 ) Total deferred (867 ) (45 ) 399 (Provision) for income taxes $ (1,434 ) $ (3,775 ) $ (2633 )
Schedule of Income Tax Provision for Federal Statutory Income Tax Rate	The income tax (provision) differs from that computed at the federal statutory corporate income tax rate as follows: Year ended December 31, 2016 2015 2014 Tax (provision) at Federal statutory rate $ (1,318 ) $ (3,587 ) $ (2,798 ) State income tax (provision), net of federal benefit (148 ) (408 ) (257 ) Research and development tax credits 423 456 549 Foreign earnings or losses taxed at different rates (292 ) (231 ) (102 ) Other 233 280 383 Change in valuation allowance (332 ) (285 ) (408 ) Tax (provision) $ (1,434 ) $ (3,775 ) $ (2,633 )
Schedule of Deferred Tax Assets and Liabilities	The tax effects of significant temporary differences representing net deferred tax assets and liabilities consisted of the following: 2016 2015 Deferred revenue $ 845 $ 1,019 Basis difference in intangible assets (56 ) 26 Inventory reserve 2,650 2,452 Net operating loss carryforwards 1,391 1,347 Research and development tax credits 88 — Accrued expenses 92 165 Stock-based compensation 584 672 Allowance for sales returns and doubtful accounts 70 20 Difference in property and equipment basis (350 ) (423 ) Other 743 886 Total net deferred income tax asset 6,057 6,164 Less: Valuation allowance (1,403 ) (1,071 ) Net deferred income tax asset (liability) $ 4,654 $ 5,093
Schedule of Reconciliation of Uncertain Tax Positions	A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows: Year ended December 31, 2016 2015 Balance - beginning of year $ 1,126 $ 1,678 Additions based on tax positions related to the current year 16 52 Additions for tax positions of prior years 47 5 Reductions for tax positions of prior years - (503 ) Settlements - — Lapse in statutes of limitations - (106 ) Uncertain tax positions, ending balance $ 1,189 $ 1,126

Geographic Sales Information (T

Geographic Sales Information (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Schedule of Revenue by Geographic Area	The Company’s revenues are substantially denominated in U.S. dollars and are summarized geographically as follows: Year ended December 31, 2016 2015 2014 United States $ 31,838 $ 39,563 $ 39,837 All other countries 16,799 18,233 18,072 Total $ 48,637 $ 57,796 $ 57,909

Business Description, Basis o35

Business Description, Basis of Presentation and Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Marketable securities recognized, other than temporary impairments, amount	$ 0	$ 0	$ 0
Value of advance replacement units	$ 21	75
Product return policy, number of days	180 days
Product return policy not to exceed net purchases during preceeding quarter, percent	15.00%
Advertising expenses	$ 836	728	$ 768
Valuation allowance	$ 1,404	$ 1,071
Minimum [Member]
Property and equipment estimated useful lives	3 years
Maximum [Member]
Property and equipment estimated useful lives	10 years

Business Description, Basis o36

Business Description, Basis of Presentation and Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance at beginning of the year	$ 54	$ 58	$ 129
Allowance increase (decrease)	148	36	(49)
Write offs, net of recoveries	(15)	(40)	(22)
Balance at end of the year	$ 187	$ 54	$ 58

Business Description, Basis o37

Business Description, Basis of Presentation and Significant Accounting Policies - Schedule of Deferred Revenue and Associated Cost of Goods Sold and Gross Profit (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue	$ 3,882	$ 4,549
Deferred cost of goods sold	1,530	1,628
Deferred gross profit	$ 2,352	$ 2,921

Business Description, Basis o38

Business Description, Basis of Presentation and Significant Accounting Policies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance at the beginning of year	$ 288	$ 331	$ 338
Accruals/additions	361	442	511
Usage/claims	(403)	(485)	(518)
Balance at end of year	$ 246	$ 288	$ 331

Business Description, Basis o39

Business Description, Basis of Presentation and Significant Accounting Policies - Schedule of Basic and Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income	$ 2,444	$ 6,776	$ 5,596
Basic weighted average shares	9,021,980	9,127,385	9,166,769
Dilutive common stock equivalents using treasury stock method	284,054	467,274	414,557
Diluted weighted average shares	9,306,034	9,594,659	9,581,326
Basic earnings per common share:	$ 0.27	$ 0.74	$ 0.61
Diluted earnings per common share:	$ 0.26	$ 0.71	$ 0.58
Weighted average options outstanding	885,163	1,053,785	975,696
Anti-dilutive options not included in the computation	323,644	177,125	209,751

Marketable Securities - Schedul

Marketable Securities - Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Amortized cost	$ 26,491	$ 26,435
Gross unrealized holding gains	70	68
Gross unrealized holding losses	(166)	(138)
Estimated fair value	26,395	26,365
Corporate Bonds and Notes [Member]
Amortized cost	20,028	20,827
Gross unrealized holding gains	64	50
Gross unrealized holding losses	(122)	(133)
Estimated fair value	19,970	20,744
Municipal Bonds [Member]
Amortized cost	6,463	5,608
Gross unrealized holding gains	6	18
Gross unrealized holding losses	(44)	(5)
Estimated fair value	$ 6,425	$ 5,621

Marketable Securities - Sched41

Marketable Securities - Schedule of Maturities of Marketable Securities (Details) $ in Thousands	Dec. 31, 2016USD ($)
Investments, Debt and Equity Securities [Abstract]
Amortized cost Due within one year	$ 5,029
Amortized cost Due after one year through five years	21,353
Amortized cost Due after five years through ten years	109
Amortized cost Total available-for-sale securities	26,491
Estimated fair value Due within one year	5,030
Estimated fair value Due after one year through five years	21,256
Estimated fair value Due after five years through ten years	109
Estimated fair value Total available-for-sale securities	$ 26,395

Marketable Securities - Sched42

Marketable Securities - Schedule of Available-for-sale Securities (Details) $ in Thousands	Dec. 31, 2016USD ($)
Less than 12 Months - Estimated Fair Value	$ 14,204
Less than 12 Months - Gross Unrealized Holding Losses	(157)
More than 12 Months - Estimated Fair Value	1,029
More than 12 Months - Gross Unrealized Holding Losses	(9)
Total Estimated Fair Value	15,233
Total Gross Unrealized Holding Losses	(166)
Corporate Bonds and Notes [Member]
Less than 12 Months - Estimated Fair Value	10,294
Less than 12 Months - Gross Unrealized Holding Losses	(112)
More than 12 Months - Estimated Fair Value	1,029
More than 12 Months - Gross Unrealized Holding Losses	(9)
Total Estimated Fair Value	11,323
Total Gross Unrealized Holding Losses	(121)
Municipal Bonds [Member]
Less than 12 Months - Estimated Fair Value	3,910
Less than 12 Months - Gross Unrealized Holding Losses	(45)
More than 12 Months - Estimated Fair Value
More than 12 Months - Gross Unrealized Holding Losses
Total Estimated Fair Value	3,910
Total Gross Unrealized Holding Losses	$ (45)

Business Combinations, Goodwi43

Business Combinations, Goodwill and Intangibles (Details Narrative) € in Thousands, $ in Thousands	Apr. 02, 2014USD ($)	Apr. 02, 2014EUR (€)	Mar. 07, 2014USD ($)shares	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Goodwill				$ 12,724	$ 12,724	$ 12,724	$ 3,472
Total acquisition related expenses						588
Amortization of intangibles				$ 1,121	$ 1,258	$ 1,210
Sabine, Inc. [Member]
Consideration paid			$ 10,477
Goodwill			5,510
Sabine, Inc. [Member] | Cash [Member]
Consideration paid			8,141
Sabine, Inc. [Member] | Earn-out Payments [Member]
Consideration paid			657
Sabine, Inc. [Member] | Restricted Stock [Member]
Consideration paid			$ 1,679
Number of shares of restricted common stock issued | shares			150,000
Spontania [Member]
Consideration paid	$ 5,100
Goodwill	$ 3,741
Spontania [Member] | EURO [Member]
Consideration paid | €		€ 3,660

Business Combinations, Goodwi44

Business Combinations, Goodwill and Intangibles - Schedule of Business Acquisition, Consideration Transferred (Details) - Sabine, Inc. [Member] $ in Thousands	Mar. 07, 2014USD ($)
Consideration paid	$ 10,477
Cash [Member]
Consideration paid	8,141
Common Stock [Member]
Consideration paid	1,679
Contingent Consideration [Member]
Consideration paid	$ 657

Business Combinations, Goodwi45

Business Combinations, Goodwill and Intangibles - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Apr. 02, 2014	Mar. 07, 2014
Sabine, Inc. [Member]
Business Acquisition [Line Items]
Cash		$ 125
Accounts receivable		255
Inventories		844
Prepaid and other		105
Intangibles		3,970
Property and equipment		292
Other long-term assets		11
Goodwill		5,510
Deferred tax asset		245
Trade accounts payable		(420)
Accrued liabilities		(405)
Stock registration costs		(55)
Total		$ 10,477
Spontania [Member]
Business Acquisition [Line Items]
Intangibles	$ 1,335
Property and equipment	47
Goodwill	3,741
Accrued liabilities	(71)
Total	$ 5,052

Business Combinations, Goodwi46

Business Combinations, Goodwill and Intangibles - Schedule of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Business Combinations [Abstract]
Beginning goodwill, gross	$ 12,724	$ 12,724	$ 3,472
Beginning accumulated impairment losses
Balance at the beginning of the year	12,724	12,724	3,472
Goodwill acquired during the year			9,252
Ending goodwill, gross	12,724	12,724	12,724
Ending accumulated impairment losses
Balance at end of year	$ 12,724	$ 12,724	$ 12,724

Business Combinations, Goodwi47

Business Combinations, Goodwill and Intangibles - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Total intangible assets	$ 11,230	$ 11,230
Accumulated amortization	(5,553)	(4,432)
Total intangible assets, net	5,677	6,638
Trade Names [Member]
Total intangible assets	$ 555	555
Trade Names [Member] | Minimum [Member]
Estimated useful lives	5 years
Trade Names [Member] | Maximum [Member]
Estimated useful lives	7 years
Patents and Technological Know-how [Member]
Estimated useful lives	10 years
Total intangible assets	$ 6,010	5,850
Proprietary Software [Member]
Total intangible assets	$ 4,341	4,341
Proprietary Software [Member] | Minimum [Member]
Estimated useful lives	3 years
Proprietary Software [Member] | Maximum [Member]
Estimated useful lives	15 years
Other Intangible Assets [Member]
Total intangible assets	$ 324	$ 324
Other Intangible Assets [Member] | Minimum [Member]
Estimated useful lives	3 years
Other Intangible Assets [Member] | Maximum [Member]
Estimated useful lives	5 years

Business Combinations, Goodwi48

Business Combinations, Goodwill and Intangibles - Schedule of Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
2,017	$ 928
2,018	853
2,019	781
2,020	602
2,021	602
Thereafter	1,911
Finite-Lived Intangible Assets, Net	$ 5,677	$ 6,638

Inventories (Details Narrative)

Inventories (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Current finished goods do not include distributor channel inventories amount	$ 1,530	$ 1,628
Losses incurred on valuation of inventory and write-off of obsolete inventory	$ 653	$ 496	$ 946

Inventories - Schedule of Inven

Inventories - Schedule of Inventory, Net of Reserves (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 2,291	$ 2,735
Finished goods	9,086	10,712
Current Inventories	11,377	13,447
Raw materials	599	375
Finished goods	1,065	1,643
Long-term Inventories	$ 1,664	$ 2,018

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Depreciation expense on property and equipment	$ 723	$ 801	$ 761

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property and equipment, gross	$ 8,867	$ 8,383
Accumulated depreciation and amortization	(7,354)	(6,794)
Property and equipment, net	$ 1,513	1,589
Minimum [Member]
Property and equipment, Estimated useful life	3 years
Maximum [Member]
Property and equipment, Estimated useful life	10 years
Office Furniture and Equipment [Member]
Property and equipment, gross	$ 4,835	4,412
Office Furniture and Equipment [Member] | Minimum [Member]
Property and equipment, Estimated useful life	3 years
Office Furniture and Equipment [Member] | Maximum [Member]
Property and equipment, Estimated useful life	10 years
Leasehold Improvements [Member]
Property and equipment, gross	$ 1,495	1,488
Leasehold Improvements [Member] | Minimum [Member]
Property and equipment, Estimated useful life	1 year
Leasehold Improvements [Member] | Maximum [Member]
Property and equipment, Estimated useful life	6 years
Manufacturing and Test Equipment [Member]
Property and equipment, gross	$ 2,537	$ 2,483
Manufacturing and Test Equipment [Member] | Minimum [Member]
Property and equipment, Estimated useful life	2 years
Manufacturing and Test Equipment [Member] | Maximum [Member]
Property and equipment, Estimated useful life	10 years

Leases and Deferred Rent (Detai

Leases and Deferred Rent (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)ft²	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Rent expense | $	$ 1,099	$ 1,420	$ 1,236
Amortization of deferred rent | $	$ 73	$ 95	$ 79
Gainsville, Florida [Member] | Office Building [Member]
Area leased	5,000
Lease expiration date	February 2,021
Lease renewal term	10 years
Salt Lake City, Utah [Member] | Office Building [Member]
Area leased	31,000
Lease expiration date	May 2,019
Salt Lake City, Utah [Member] | Warehouse [Member]
Area leased	40,000
Lease expiration date	December 2,021
Austin, Texas [Member] | Office Building [Member]
Area leased	7,070
Lease expiration date	October 2,019

Leases and Deferred Rent - Sche

Leases and Deferred Rent - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands	Dec. 31, 2016USD ($)
Leases [Abstract]
2,017	$ 928
2,018	872
2,019	467
2,020	239
2,021	204
Total minimum lease payments	$ 2,710

Accrued Liabilities - Schedule

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued salaries and other compensation	$ 1,098	$ 1,170
Sales and marketing programs	319	477
Product warranty	246	288
Other accrued liabilities	231	308
Total	$ 1,894	$ 2,243

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Long-term purchase commitment, amount	$ 13,563
Uncertain tax positions	1,189	$ 1,126	$ 1,678
Attorneys' fees
Pretax gross expenses	$ 927

Share-Based Payments (Details N

Share-Based Payments (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands

Mar. 17, 2016

Dec. 31, 1999

Jun. 30, 2005

Jun. 30, 2003

Jun. 30, 2002

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Jun. 30, 2002

Mar. 09, 2016

Dec. 12, 2014

Dec. 31, 2013

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of stock options granted

217,700

56,666

193,500

Stock options vesting description

The options granted subsequent to September 2002, all vesting schedules are based on 3 or 4-year vesting schedules, with either one-third or one-fourth vesting on the first anniversary and the remaining options vesting ratably over the remainder of the vesting term. Generally, directors and officers have 3-year vesting schedules and all other employees have 4-year vesting schedules. Additionally, in the event of a change in control or the occurrence of a corporate transaction, the Company’s Board of Directors has the authority to elect that all unvested options shall vest and become exercisable immediately prior to the event or closing of the transaction.

Share-based payment award, expiration period

10 years

Number of stock options shares outstanding

837,232

1,028,935

1,040,081

1,111,274

Weighted average per share fair value of option granted

$ 4.27

$ 5.27

$ 4.85

Total intrinsic value of options exercised

$ 2,824

$ 404

$ 1,337

Total pre-tax compensation cost related to stock options

628

552

401

Tax benefit compensation cost related to stock options

107

41

211

Unrecognized compensation cost related to stock options

$ 1,127

Unrecognized compensation cost related to stock options, recognized period

2 years 2 months 9 days

Percentage of shares excess of combined voting power of parents and subsidiary

5.00%

Number of stock options fair value purchased under the plan during the period

$ 87

$ 155

Percentage of common stock purchase of period at price equal to fair market value

85.00%

Percentage of fair value of common stock discount

15.00%

Stock repurchase program share amount

$ 2,598

$ 10,000

Stock repurchase program shares

542,259,000

272,767

Dividend per share

$ 0.05

Dividend declared date

Jan. 31, 2017

Dividend date to be paid

Mar. 1, 2017

Dividend date of record

Feb. 15, 2017

Average purchase price per share

$ 11.25

Directors And Officers [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock options vested period

3 years

Other Employees [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock options vested period

4 years

Board of Directors [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Dividend declared date

Mar. 1, 2017

Dividend date to be paid

Jun. 1, 2017

Board of Directors [Member] | Minimum [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Dividend per share

$ 0.05

Board of Directors [Member] | Maximum [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Dividend per share

$ 0.07

Board of Directors [Member] | Maximum [Member] | March 1, 2017 [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock repurchase program share amount

$ 10,000

1998 Incentive Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of stock options granted

1,066,000

1,248,250

Stock options vested period

9 years 9 months 18 days

6 years

Stock options accelerated vesting shares

300,494

637,089

Maximum number of stock options grants

2,500,000

Number of stock options shares outstanding

150,000

Number of stock options shares authorized and unissued

0

1998 Incentive Plan [Member] | Minimum [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock options vested period

3 years

1998 Incentive Plan [Member] | Maximum [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock options vested period

4 years

2007 Equity Incentive Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Maximum number of stock options grants

2,000,000

Number of stock options shares outstanding

700,232

Number of stock options shares authorized and unissued

826,268

2015 Employee Stock Purchase Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of stock options granted

475,893

Number of shares available for offerings

500,000

Employee Stock Purchase Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of stock options shares purchased under the plan during the period

9,140

14,982

82

Employee Stock Purchase Plan [Member] | Maximum [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of stock options shares purchased under the plan during the period

2,500

Number of stock options fair value purchased under the plan during the period

$ 25

1998 Incentive Plan and 2007 Equity Incentive Plan [Member] | Employees and Directors [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock repurchase program shares

225,542

Average purchase price per share

$ 7.77

Share-Based Payments - Schedule

Share-Based Payments - Schedule of Share-based Compensation - Black-scholes Assumptions (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Risk-free interest rate, average	1.52%	2.00%	2.20%
Expected option life, average	6 years 1 month 6 days	6 years 1 month 6 days	8 years 2 months 12 days
Expected price volatility, average	43.75%	44.30%	47.60%
Expected dividend yield	1.71%	1.10%	0.00%

Share-Based Payments - Schedu59

Share-Based Payments - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of shares Options, Outstanding at beginning of period	1,028,935	1,040,081	1,111,274
Number of shares Options, Granted	217,700	56,666	193,500
Number of shares Options, Reinstated		4,583
Number of shares Options, Expired and canceled	(4,186)	(1,000)	(29,532)
Number of shares Options, Forfeited prior to vesting	(17,360)	(15,252)	(729)
Number of shares Options, Exercised	(374,857)	(56,143)	(234,432)
Number of shares Options, Outstanding at end of period	837,232	1,028,935	1,040,081
Number of shares Options, Vested and Expected to Vest	850,232	1,028,935	1,040,081
Number of shares Options, Vested at end of period	552,097	820,022	730,016
Weighted Average Exercise Price, Outstanding at beginning of period	$ 6.03	$ 5.65	$ 5.15
Weighted Average Exercise Price, Granted	11.73	13.03	8.83
Weighted Average Exercise Price, Reinstated		4.47
Weighted Average Exercise Price, Expired and canceled	12.03	3.42	6.87
Weighted Average Exercise Price, Forfeited prior to vesting	10.67	7.85	8.88
Weighted Average Exercise Price, Exercised	4.46	5.51	5.72
Weighted Average Exercise Price, Outstanding at end of period	8.06	6.03	5.65
Weighted Average Exercise Price, Vested and Expected to Vest	8.06	6.03	5.65
Weighted Average Exercise Price, Vested at end of period	$ 6.33	$ 5.10	$ 4.67
Weighted Average Remaining Contractual Term (Years)	5 years 9 months 11 days	4 years 8 months 23 days	5 years 7 months 6 days
Weighted Average Remaining Contractual Term (Years), Vested and Expected to Vest	5 years 9 months 11 days	4 years 8 months 23 days	5 years 7 months 6 days
Weighted Average Remaining Contractual Term (Years), Vested	4 years 1 month 2 days	3 years 8 months 27 days	4 years 1 month 24 days
Aggregate Intrinsic Value	$ 3,001	$ 7,104	$ 4,286
Aggregate Intrinsic Value, Vested and Expected to Vest	3,001	7,104	4,286
Aggregate Intrinsic Value, Vested	$ 2,843	$ 6,419	$ 3,271

Share-Based Payments - Schedu60

Share-Based Payments - Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity (Details) - Employee Stock Purchase Plan [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Shares purchased under ESPP plans	9,140	14,982	82
Plan compensation expense	$ 18	$ 31

Share-Based Payments - Schedu61

Share-Based Payments - Schedule of Current Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2014
Total Number of Shares Purchased	542,259,000	272,767
Average Price Paid per Share	$ 11.25
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	542,259,000
March 9 to March 31 [Member]
Total Number of Shares Purchased	33,600,000
Average Price Paid per Share	$ 12.02
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	33,600,000
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	$ 9,596
April 1 to June 30 [Member]
Total Number of Shares Purchased	330,515,000
Average Price Paid per Share	$ 11.25
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	330,515,000
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	$ 5,885
July 1 to September 30 [Member]
Total Number of Shares Purchased	91,965,000
Average Price Paid per Share	$ 11.16
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	91,965,000
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	$ 4,861
October 1 to December 31 [Member]
Total Number of Shares Purchased	86,179,000
Average Price Paid per Share	$ 11
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	86,179,000
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	$ 3,914

Significant Customers - Schedul

Significant Customers - Schedules of Concentration of Risk, by Risk Factor of Sales Revenue and Accounts Receivable (Details)	12 Months Ended
	Dec. 31, 2016		Dec. 31, 2015	Dec. 31, 2014
Concentration risk, percentage	10.00%
Sales Revenues [Member]
Concentration risk, percentage	16.30%		24.60%	16.00%
Sales Revenues [Member] | Customer A [Member]
Concentration risk, percentage	16.30%		14.20%	16.00%
Sales Revenues [Member] | Customer B [Member]
Concentration risk, percentage	0.00%	[1]	10.40%	0.00%	[1]
Accounts Receivable [Member]
Concentration risk, percentage	25.10%		34.00%
Accounts Receivable [Member] | Customer A [Member]
Concentration risk, percentage	13.40%		18.00%
Accounts Receivable [Member] | Customer B [Member]
Concentration risk, percentage	11.70%		16.00%
[1]	Sales didn't exceed 10% of the revenue

Significant Customers - Sched63

Significant Customers - Schedules of Concentration of Risk, by Risk Factor of Sales Revenue and Accounts Receivable (Details) (Parenthetical)	12 Months Ended
	Dec. 31, 2016
Risks and Uncertainties [Abstract]
Concentration risk, percentage	10.00%

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	$ 26,395	$ 26,365
Corporate Bonds and Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	19,970	20,744
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	6,425	5,621
Fair Value, Inputs, Level 1 [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure
Fair Value, Inputs, Level 1 [Member] | Corporate Bonds and Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure
Fair Value, Inputs, Level 1 [Member] | Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure
Fair Value, Inputs, Level 2 [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	26,395	26,365
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds and Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	19,970	20,744
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	6,425	5,621
Fair Value, Inputs, Level 3 [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure
Fair Value, Inputs, Level 3 [Member] | Corporate Bonds and Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure
Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Discrete tax benefit	$ 233	$ 176
Unrecognized tax benefits, income tax penalties and interest accrued	87	$ 55
Internal Revenue Service (IRS) [Member]
Operating loss carryforwards	$ 755
Foreign Tax Authority [Member]
Operating loss carryforwards expiration date description	expire in 2029
Foreign Tax Authority [Member] | HONG KONG [Member]
Operating loss carryforwards	$ 255
Foreign Tax Authority [Member] | SPAIN [Member]
Operating loss carryforwards	$ 855

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Domestic	$ 6,332	$ 13,295	$ 9,615
Foreign	(2,454)	(2,744)	(1,386)
Total	$ 3,878	$ 10,551	$ 8,229

Income Taxes - Schedule of Comp

Income Taxes - Schedule of Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Current, Federal	$ (593)	$ (3,386)	$ (2,750)
Current, State	63	(344)	(173)
Current, Foreign	(37)		(109)
Total current	(567)	(3,730)	(3,032)
Deferred, Federal	(633)	(220)	379
Deferred, State	(17)	(10)	27
Deferred, foreign	115	470	401
Deferred provision before change in valuation allowance	(535)	240	807
Change in valuation allowance	(332)	(285)	(408)
Total deferred	(867)	(45)	399
(Provision) for income taxes	$ (1,434)	$ (3,775)	$ (2,633)

Income Taxes - Schedule of In68

Income Taxes - Schedule of Income Tax Provision for Federal Statutory Income Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Tax (provision) at Federal statutory rate	$ (1,318)	$ (3,587)	$ (2,798)
State income tax (provision), net of federal benefit	(148)	(408)	(257)
Research and development tax credits	423	456	549
Foreign earnings or losses taxed at different rates	(292)	(231)	(102)
Other	233	280	383
Change in valuation allowance	(332)	(285)	(408)
Tax (provision)	$ (1,434)	$ (3,775)	$ (2,633)

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Deferred revenue	$ 845	$ 1,019
Basis difference in intangible assets	(56)	26
Inventory reserve	2,650	2,452
Net operating loss carryforwards	1,391	1,347
Research and development tax credits	88
Accrued expenses	92	165
Stock-based compensation	584	672
Allowance for sales returns and doubtful accounts	70	20
Difference in property and equipment basis	(350)	(423)
Other	743	886
Total net deferred income tax asset	6,057	6,164
Less: Valuation allowance	(1,404)	(1,071)
Net deferred income tax asset (liability)	$ 4,654	$ 5,093

Income Taxes - Schedule of Reco

Income Taxes - Schedule of Reconciliation of Uncertain Tax Positions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Balance - beginning of year	$ 1,126	$ 1,678
Additions based on tax positions related to the current year	16	52
Additions for tax positions of prior years	47	5
Reductions for tax positions of prior years		(503)
Settlements
Lapse in statutes of limitations		(106)
Uncertain tax positions, ending balance	$ 1,189	$ 1,126

Geographic Sales Information -

Geographic Sales Information - Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue	$ 48,637	$ 57,796	$ 57,909
United States [Member]
Revenue	31,838	39,563	39,837
All Other Countries [Member]
Revenue	$ 16,799	$ 18,233	$ 18,072

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jan. 31, 2017	Dec. 31, 2016	Mar. 01, 2017	Mar. 09, 2016	Dec. 31, 2014
Dividend price per share		$ 0.05
Dividend paid date		Mar. 1, 2017
Dividend record date		Feb. 15, 2017
Repurchase shares of common stock				$ 10,000	$ 2,598
Subsequent Event [Member]
Dividend price per share	$ 0.05
Dividend paid date	Mar. 1, 2017
Dividend record date	Feb. 15, 2017
Subsequent Event [Member] | Renewed and Extended [Member]
Repurchase shares of common stock			$ 10,000