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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Aug. 02, 2018
Document And Entity Information
Entity Registrant Name	APPLIED OPTOELECTRONICS, INC.
Entity Central Index Key	0001158114
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		19,697,996
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2018

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 76,190	$ 82,936
Restricted cash	1,753	1,012
Short-term investments		36
Accounts receivable - trade, net of allowance of $32 and $33, respectively	48,668	59,850
Inventories	93,269	75,768
Prepaid income tax	638	1,394
Prepaid expenses and other current assets	10,070	8,701
Total current assets	230,588	229,697
Property, plant and equipment, net	212,105	197,943
Land use rights, net	6,096	804
Intangible assets, net	3,978	4,007
Deferred income tax assets	13,151	12,801
Other assets, net	6,286	7,732
TOTAL ASSETS	472,204	452,984
Current liabilities
Current portion of notes payable and long-term debt	3,161	559
Accounts payable	51,429	43,624
Accrued income taxes	464	7,422
Accrued liabilities	16,651	19,103
Total current liabilities	71,705	70,708
Notes payable and long-term debt, less current portion	57,868	49,000
TOTAL LIABILITIES	129,573	119,708
Stockholders' equity:
Preferred Stock; 5,000 shares authorized at $0.001 par value; no shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively
Common Stock; 45,000 shares authorized at $0.001 par value; 19,634 and 19,451 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	20	19
Additional paid-in capital	288,686	285,376
Accumulated other comprehensive income	5,633	9,743
Retained earnings	48,292	38,138
TOTAL STOCKHOLDERS' EQUITY	342,631	333,276
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 472,204	$ 452,984

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 32	$ 33
Preferred Stock par value	$ 0.001	$ 0.001
Preferred Stock shares authorized	5,000	5,000
Preferred Stock shares issued	0	0
Preferred Stock shares outstanding	0	0
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	45,000	45,000
Common stock shares issued	19,634	19,451
Common stock shares outstanding	19,634	19,451

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue, net	$ 87,822	$ 117,371	$ 153,061	$ 213,595
Cost of goods sold	53,959	64,089	93,362	118,841
Gross profit	33,863	53,282	59,699	94,754
Operating expenses
Research and development	12,645	8,073	24,381	15,505
Sales and marketing	2,377	2,158	4,851	4,061
General and administrative	9,898	8,786	19,354	16,608
Total operating expenses	24,920	19,017	48,586	36,174
Income from operations	8,943	34,265	11,113	58,580
Other income (expense)
Interest income	85	70	137	105
Interest expense	(279)	(245)	(350)	(544)
Other income (expense), net	1,581	64	554	(544)
Total other income (expense), net	1,387	(111)	341	(983)
Income before income taxes	10,330	34,154	11,454	57,597
Income tax expense	(2,296)	(5,083)	(1,300)	(8,737)
Net income	$ 8,034	$ 29,071	$ 10,154	$ 48,860
Net income per share
Net income per share basic	$ 0.41	$ 1.52	$ 0.52	$ 2.59
Net income per share diluted	$ 0.40	$ 1.43	$ 0.51	$ 2.45
Weighted average shares used to compute net income per share:
Weighted average shares used to compute net income per share: basic	19,590,164	19,081,034	19,541,478	18,840,656
Weighted average shares used to compute net income per share: Diluted	20,079,702	20,367,127	20,012,344	19,956,097

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income	$ 8,034	$ 29,071	$ 10,154	$ 48,860
Gain (loss) on foreign currency translation adjustment	(10,445)	797	(4,110)	5,254
Comprehensive income (loss)	$ (2,411)	$ 29,868	$ 6,044	$ 54,114

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 6 months ended Jun. 30, 2018 - USD ($) shares in Thousands, $ in Thousands	Common stock	Additional paid-in capital	Accumulated other comprehensive gain (loss)	Retained earnings	Total
Beginning balance, shares at Dec. 31, 2017	19,451
Beginning balance, value at Dec. 31, 2017	$ 19	$ 285,376	$ 9,743	$ 38,138	$ 333,276
Stock options exercised, net of shares withheld for employee tax, in shares	78
Stock options exercised, net of shares withheld for employee tax, value		(1,228)			(1,228)
Issuance of restricted stock, net of shares withheld for employee tax, in shares	105
Issuance of restricted stock, net of shares withheld for employee tax, value	$ 1	(930)			(929)
Share-based compensation		5,468			5,468
Foreign currency translation adjustment			(4,110)		(4,110)
Net income				10,154	10,154
Ending balance, shares at Jun. 30, 2018	19,634
Ending balance, value at Jun. 30, 2018	$ 20	$ 288,686	$ 5,633	$ 48,292	$ 342,631

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities:
Net income	$ 10,154	$ 48,860
Adjustments to reconcile net income to net cash provided by operating activities:
Lower of cost or market reserve adjustment to inventory	2,356	675
Depreciation and amortization	14,291	8,929
Deferred income taxes, net	(381)	2,638
Loss (gain) on disposal of assets	(5)	40
Share-based compensation	5,468	3,767
Unrealized foreign exchange gain	(1,254)	(254)
Changes in operating assets and liabilities:
Accounts receivable, trade	11,182	(23,992)
Prepaid income tax	781
Inventories	(21,614)	(6,357)
Other current assets	(1,489)	(4,845)
Accounts payable	7,805	17,481
Accrued income taxes	(6,926)	3,870
Accrued liabilities	(2,289)	(928)
Net cash provided by operating activities	18,079	49,884
Investing activities:
Maturities of short-term investments	36	2
Purchase of property, plant and equipment	(30,895)	(26,687)
Purchase of land use rights	(5,591)
Proceeds from disposal of equipment	11	170
Deposits and prepaid for equipment	1,444	(3,838)
Purchase of intangible assets	(225)	(251)
Net cash used in investing activities	(35,220)	(30,604)
Financing activities:
Proceeds from issuance of notes payable and long-term debt	26,556
Principal payments of long-term debt and notes payable	(1,093)	(15,911)
Proceeds from line of credit borrowings	79,953
Repayments of line of credit borrowings	(93,953)
Repayments of bank acceptance payable		(307)
Exercise of stock options	53	1,301
Payments of tax withholding on behalf of employees related to share-based compensation	(2,212)	(1,843)
Proceeds from common stock offering, net		21,572
Net cash provided by financing activities	9,304	4,812
Effect of exchange rate changes on cash	1,832	(177)
Net increase (decrease) in cash, cash equivalents and restricted cash	(6,005)	23,915
Cash, cash equivalents and restricted cash at beginning of period	83,948	51,964
Cash, cash equivalents and restricted cash at end of period	77,943	75,879
Cash paid for:
Interest	255	539
Income taxes	7,783	2,226
Non-cash investing and financing activities:
Net change in accounts payable related to property and equipment additions	$ 214	$ 535

Description of Business	6 Months Ended
Description of Business	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Note 1. Description of Business Business Overview Applied Optoelectronics, Inc. (“AOI” or the “Company”) is a Delaware corporation. The Company is a leading, vertically integrated provider of fiber-optic networking products, primarily for four networking end-markets: internet data center, cable television, telecommunications and fiber-to-the-home. The Company designs and manufactures a wide range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment. The Company has manufacturing and research and development facilities located in the U.S., Taiwan and China. In the U.S., at its corporate headquarters and manufacturing facilities in Sugar Land, Texas, the Company primarily manufactures lasers and laser components and performs research and development activities for laser component and optical module products. In addition, the Company also has a research and development facility in Duluth, Georgia. The Company operates in Taipei, Taiwan and Ningbo, China through its wholly-owned subsidiary Prime World International Holdings, Ltd. (“Prime World”, incorporated in the British Virgin Islands). Prime World is the parent of Global Technology, Inc. (“Global”, incorporated in the People’s Republic of China). Through Global, the Company primarily manufactures certain of our data center transceiver products, including subassemblies, as well as Cable TV Broadband (“CATV”) systems and equipment, and performs research and development activities for the CATV products. Prime World also operates a branch in Taiwan, which primarily manufactures transceivers. Interim Financial Statements The unaudited condensed consolidated financial statements of the Company as of June 30, 2018 and December 31, 2017 and for the three and six months ended June 30, 2018 and June 30, 2017, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim information and with the instructions on Form 10-Q and Rule 10-01 of Regulation S-X pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In accordance with those rules and regulations, the Company has omitted certain information and notes required by GAAP for annual consolidated financial statements. In the opinion of management, the condensed consolidated financial statements contain all adjustments, except as otherwise noted, necessary for the fair presentation of the Company’s financial position and results of operations for the periods presented. The year-end condensed balance sheet data was derived from audited financial statements. These condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K (“Annual Report”) for the fiscal year ended December 31, 2017. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results expected for the entire fiscal year. All significant intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates in the consolidated financial statements and accompanying notes. Significant estimates and assumptions that impact these financial statements and the accompanying notes relate to, among other things, allowance for doubtful accounts, inventory reserve, product warranty costs, share-based compensation expense, estimated useful lives of property and equipment, and taxes.

Significant Accounting Policies	6 Months Ended
Significant Accounting Policies	Jun. 30, 2018
Accounting Policies [Abstract]
Significant Accounting Policies	Note 2. Significant Accounting Policies There have been no changes in the Company’s significant accounting policies for the three and six months ended June 30, 2018, as compared to the significant accounting policies described in its 2017 Annual Report, except as described below. Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted in 2018 In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). The new revenue recognition guidance establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. The Company evaluated its revenues and the new guidance had immaterial impacts to recognition practices upon adoption on January 1, 2018. As part of the adoption, the Company elected to apply the new guidance on a modified retrospective basis. The Company did not record a cumulative effect adjustment to retained earnings for initially applying the new guidance as no revenue recognition differences were identified in the timing or amount of revenue. See Note 3, "Revenue Recognition" for additional information on the required disclosures related to the impact of adopting this standard. The FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities with further clarifications made in February 2018 with the issuance of ASU 2018-03. The amended guidance requires certain equity investments that are not consolidated and not accounted for under the equity method to be measured at fair value with changes in fair value recognized in net income rather than as a component of accumulated other comprehensive income (loss). It further states that an entity may choose to measure equity investments that do not have readily determinable fair values using a quantitative approach, or measurement alternative, which is equal to its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company adopted this amended guidance on January 1, 2018, with no impact on the financial statements. In March 2018, the FASB issued ASU 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118." ASU 2018-05, effective 2018, expands income tax accounting and disclosure guidance to include SAB 118 issued by the SEC in December 2017. SAB 118 provides guidance on accounting for the income tax effects of the U.S. Tax Cuts and Jobs Act of 2017 (the “Tax Act”) and among other things allows for a measurement period not to exceed one year for companies to finalize the provisional amounts recorded as of December 31, 2017. See Note 13, “Income Taxes” for additional information on the Company’s accounting for the Tax Act. Recent Accounting Pronouncements Yet to be Adopted On February 25, 2016, the FASB released ASU No. 2016-02, Leases, to complete its project to overhaul lease accounting. The ASU codifies ASC 842, Leases, which will replace the guidance in ASC 840. The guidance will require lessees to recognize most leases on the balance sheet for capital and operating leases. The guidance is effective for public business entities in fiscal years beginning after December 15, 2018. The Company is evaluating the impact of the accounting standard on its financial statements by reviewing the standard itself, as well as reviewing literature about the new standard produced by nationally-recognized accounting firms and other third parties.

Revenue Recognition

6 Months Ended

Jun. 30, 2018

Revenue Recognition

Revenue Recognition

Note 3. Revenue Recognition

Revenue from Contracts with Customers

On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method. Under the modified retrospective method, the Company did not record a cumulative effect adjustment to retained earnings for initially applying the new guidance as no revenue recognition differences were identified in the timing or amount of revenue. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Revenue Recognition ("Topic 605").

The adoption of Topic 606 represents a change in accounting principle that will provide financial statement readers with enhanced revenue recognition disclosures. In accordance with Topic 606, revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of products or services. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. Certain customers may receive cash and/or non-cash incentives, which are accounted for as variable consideration. To achieve this core principle, the Company applies the following five steps:

1. Identify the contract with a customer

A contract with a customer exists when (i) the Company enters into an agreement with a customer that defines each party's rights regarding the products or services to be transferred and identifies the payment terms related to these products or services, (ii) both parties to the contract are committed to perform their respective obligations, (iii) the contract has commercial substance, and (iv) the Company determines that collection of substantially all consideration for products or services that are transferred is probable based on the customer's intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's payment history or, in the case of a new customer, published credit and financial information pertaining to the customer.

2. Identify the performance obligations in the contract

Performance obligations promised in a contract are identified based on the products or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised products or services, the Company must apply judgment to determine whether promised products or services are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised products or services are accounted for as a combined performance obligation. The Company has elected to account for shipping and handling activities as a fulfillment cost as permitted by the standard.

3. Determine the transaction price

The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring products or services to the customer. To the extent the transaction price is variable, revenue is recognized at an amount equal the consideration to which the Company expects to be entitled. This estimate includes customer sales incentives which are accounted for as a reduction to revenue and estimated using either the expected value method or the most likely amount method, depending on the nature of the program. The Company will adjust its consideration for any rebates and commissions if it is more likely than not that these conditions will be met.

4. Allocate the transaction price to performance obligations in the contract

If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless a portion of the variable consideration related to the contract is allocated entirely to a performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately.

5. Recognize revenue when or as the Company satisfies a performance obligation

The Company generally satisfies performance obligations at a point in time. Revenue is recognized based on the transaction price at the time the related performance obligation is satisfied by transferring a promised product or service to a customer.

Disaggregation of Revenue

Revenue is classified based on the location of where the product is manufactured. For additional information on the disaggregated revenues by geographical region, see Note 14, "Geographic Information.”

Revenue is also classified by major product category and is presented below (in thousands):


	Three months ended June 30,
	2018		% of Revenue	2017		% of Revenue
Data Center	$	69,040	78.6%	$	99,298	84.6%
CATV		14,184	16.2%		14,404	12.3%
Telecom		4,157	4.7%		3,077	2.6%
FTTH		166	0.2%		125	0.1%
Other		275	0.3%		467	0.4%
Total Revenue	$	87,822	100.0%	$	117,371	100.0%


	Six months ended June 30,
	2018		% of Revenue	2017		% of Revenue
Data Center	$	119,623	78.2%	$	178,892	83.8%
CATV		24,752	16.2%		27,498	12.9%
Telecom		7,743	5.1%		6,248	2.9%
FTTH		277	0.2%		223	0.1%
Other		666	0.4%		734	0.3%
Total Revenue	$	153,061	100.0%	$	213,595	100.0%

Cash, Cash Equivalents and Restricted Cash

6 Months Ended

Jun. 30, 2018

Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Abstract

Cash, Cash Equivalents and Restricted Cash

Note 4. Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the statement of financial position that sum to the total of the same such amounts in the statement of cash flows (in thousands):


		June 30,		December 31,
		2018	2017
Cash and cash equivalents	$	76,190	$	82,936
Restricted cash		1,753		1,012
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	77,943	$	83,948

Restricted cash includes guarantee deposits for customs duties and compensating balances required for certain credit facilities.

Earnings Per Share

6 Months Ended

Jun. 30, 2018

Net income per share

Earnings Per Share

Note 5. Earnings Per Share

Basic net income per share has been computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share has been computed using the weighted-average number of shares of common stock and dilutive potential common shares from stock options and restricted stock units outstanding during the period.

The following table sets forth the computation of the basic and diluted net income per share for the periods indicated (in thousands, except per share amounts):


	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017

Numerator:
Net income	$	8,034	$	29,071	$	10,154	$	48,860
Denominator:
Weighted average shares used to compute net income per share
Basic		19,590		19,081		19,541		18,841
Effect of dilutive options and restricted stock units		490		1,286		471		1,115
Diluted		20,080		20,367		20,012		19,956
Net income per share
Basic	$	0.41	$	1.52	$	0.52	$	2.59
Diluted	$	0.40	$	1.43	$	0.51	$	2.45

There were no securities that were excluded from the computation of diluted net income per share.

Inventories

6 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

Inventories

Note 6. Inventories

Inventories, net of inventory writedowns, consist of the following for the periods indicated (in thousands):



	June 30, 2018		December 31, 2017
Raw materials	$	27,078	$	26,648
Work in process and sub-assemblies		48,068		31,060
Finished goods		18,123		18,060
	$	93,269	$	75,768

The lower of cost or market adjustment expensed for inventory for the three months ended June 30, 2018 and 2017 was $1.5 million and $0.2 million, respectively. The lower of cost or market adjustment expensed for inventory for the six months ended June 30, 2018 and 2017 was $2.4 million and $0.7 million, respectively.

Property, Plant & Equipment

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property, Plant & Equipment

Note 7. Property, Plant & Equipment

Property, plant and equipment consisted of the following for the periods indicated (in thousands):



	June 30, 2018		December 31, 2017
Land improvements	$	806	$	806
Building and improvements		80,193		78,785
Machinery and equipment		184,557		168,993
Furniture and fixtures		4,860		4,663
Computer equipment and software		8,677		8,248
Transportation equipment		674		718
		279,767		262,213
Less accumulated depreciation and amortization		(81,839)		(70,194)
		197,928		192,019
Construction in progress		13,076		4,823
Land		1,101		1,101
Property, plant and equipment, net	$	212,105	$	197,943

For the three months ended June 30, 2018 and 2017, depreciation expense of property, plant and equipment was $7.2 million and $4.5 million, respectively. For the six months ended June 30, 2018 and 2017, depreciation expense of property, plant and equipment was $14.0 million and $8.7 million, respectively.

Included in depreciation expense was $3.8 million and $2.8 million recorded as cost of sales for the three months ended June 30, 2018 and 2017, respectively. Included in depreciation expense was $7.6 million and $5.4 million recorded as cost of sales for the six months ended June 30, 2018 and 2017, respectively.

Intangible Assets, net

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 8. Intangible Assets, net

Intangible assets consisted of the following for the periods indicated (in thousands):


	June 30, 2018
	Gross		Accumulated		Intangible
	Amount		amortization		assets, net
Patents	$	6,736	$	(2,760)	$	3,976
Trademarks		14		(12)		2
Total intangible assets	$	6,750	$	(2,772)	$	3,978


	December 31, 2017
	Gross		Accumulated		Intangible
	Amount		amortization		assets, net
Patents	$	6,524	$	(2,519)	$	4,005
Trademarks		14		(12)		2
Total intangible assets	$	6,538	$	(2,531)	$	4,007

For the three months ended June 30, 2018 and 2017, amortization expense for intangible assets, included in general and administrative expenses on the income statement, was each $0.1 million. For the six months ended June 30, 2018 and 2017, amortization expense for intangible assets, included in general and administrative expenses on the income statement, was each $0.3 million.

The remaining weighted average amortization period for intangible assets is approximately 8 years.

Notes Payable and Long-Term Debt

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Notes Payable and Long-Term Debt

Note 9. Notes Payable and Long-Term Debt

Notes payable and long-term debt consisted of the following for the periods indicated (in thousands):



	June 30, 2018		December 31, 2017

Revolving line of credit with a U.S. bank up to $60,000 with interest at LIBOR plus 1.4%, maturing September 28, 2020	$	35,000	$	49,000
Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 1.15%, maturing April 1, 2024		21,142		—
Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 1.3%, maturing April 1, 2023		4,887		—
Notes payable to a finance company due in monthly installments with 4.5% interest, maturing May 27, 2018		—		559
Total		61,029		49,559
Less current portion		(3,161)		(559)
Non-current portion	$	57,868	$	49,000

The current portion of long-term debt is the amount payable within one year of the balance sheet date of June 30, 2018. The one-month London Interbank Offered Rate (LIBOR) was 2.09% on June 30, 2018.

Maturities of long-term debt are as follows for the future one-year periods ending June 30, (in thousands):


2019	$	3,161
2020		38,161
2021		3,161
2022		3,161
2023		2,993
2024 and thereafter		10,392
Total outstanding	$	61,029

On June 14, 2016, the Company executed a Change in Terms Agreement, Notice of Final Agreement and Modification of the Construction Loan Agreement (the “Modification Agreement”) in connection with the Construction Loan Agreement with East West Bank for up to $22.0 million dollars to finance the construction of the Company’s campus expansion plan in Sugar Land, Texas, originally dated January 26, 2015 (the “Construction Loan Agreement”). Under the Construction Loan Agreement, the loan bore interest at an annual rate based on the one-month LIBOR Borrowing Rate plus 2.75%, and the interest rate was adjusted to LIBOR Borrowing Rate plus 2.0% under the Modification Agreement.

On October 5, 2016, the Company executed a Change in Terms Agreement, Notice of Final Agreement and Second Modification to the Construction Loan Agreement (the “Second Modifications”) to the Construction Loan Agreement with East West Bank. The Second Modifications amended and restated in part the Company’s Promissory Note and Construction Loan Agreement, which was originally executed on January 26, 2015, and the Modification Agreement. The draw down period end date, under the Second Modifications, was amended from July 31, 2016 to September 30, 2016. On September 28, 2017, the Company repaid the outstanding balance of $11.2 million and terminated the loan.

On June 24, 2016, the Company entered into a First Amendment to the Credit Agreement with East West Bank and Comerica Bank (“First Amendment”), a second lien deed of trust, multiple security agreements and promissory notes evidencing two credit facilities and a term loan originally entered into on June 30, 2015. The First Amendment increased the Company’s revolving lines of credit from $25 million to $40 million, which would have matured on June 30, 2018, and retained a $10.0 million term loan which would have matured on June 30, 2020. The First Amendment also provided for an additional $10.0 million equipment term loan with a one year drawdown period commencing on April 1, 2016 and maturing five years from the closing date of the First Amendment. The interest rate on these loans was adjusted by the First Amendment from the LIBOR Borrowing Rate plus 2.75% or 3.0% to LIBOR Borrowing Rate plus 2.0%. On September 28, 2017, the Company terminated the Credit Agreement and all outstanding balances of the loans had been repaid.

On September 28, 2017, the Company entered into a Loan Agreement, a Promissory Note, an Addendum to the Promissory Note, a BB&T Security Agreement, a Trademark Security Agreement, and a Patent Security Agreement (together the “Credit Facility”) with Branch Banking and Trust Company (“BB&T”). The Credit Facility provides the Company with a three year, $50 million, revolving line of credit. Borrowings under the Credit Facility will be used for general corporate purposes. The Company will make monthly payments of accrued interest with the final monthly payment being for all principal and all accrued interest not yet paid. The Company’s obligations under the Credit Facility will be secured by the Company’s accounts receivable, inventory, intellectual property, all business assets with the exception of real estate and equipment. Borrowings under the Credit Facility will bear interest at a rate equal to the one-month LIBOR plus 1.50%. The Credit Facility requires the Company to maintain certain financial covenants and also contains representations and warranties, and events of default applicable to the Company that are customary for agreements of this type.

On March 30, 2018, the Company executed a First Amendment to Loan Agreement, a Note Modification Agreement and Addendum to Promissory Note for $60 million, a Promissory Note and Addendum to Promissory Note for $26 million, a Promissory Note and Addendum to Promissory Note for $21.5 million, a Texas Deed of Trust and Security Agreement, an Assignment of Lease and Rent, and an Environmental Certification and Indemnity Agreement, (collectively, the “Amended Credit Facility”), with BB&T. The Amended Credit Facility amends the Company’s three-year $50 million line of credit with BB&T, originally executed on September 28, 2017 (the “Existing Loan”). The Amended Credit Facility (1) increases the principal amount of the three-year line of credit from $50 million to $60 million (the “Line of Credit”); (2) allows the Company to borrow an additional $26 million from BB&T in the form of a five-year capital expenditure loan (the “CapEx Loan”) and (3) allows the Company to borrow an additional $21.5 million in the form of a seventy-month real estate term loan (the “Term Loan”) to refinance the Company’s plant and facilities in Sugar Land, Texas. Borrowings under the Line of Credit will bear interest at a rate equal to the one-month LIBOR plus a Line of Credit margin ranging between 1.40% and 2.0%. Borrowings under the CapEx Loan will bear interest at a rate equal to the one-month LIBOR plus a CapEx Loan margin ranging between 1.30% and 2.0%. Borrowings under the Term Loan will bear interest at a rate equal to the one-month LIBOR plus a Term Loan margin ranging between 1.15% and 2.0%. The Company will make monthly payments of principal and accrued interest with the final monthly payments being for all principal and accrued interest not yet paid. The Company’s obligations under the Amended Credit Facility will be secured by the Company’s accounts receivable, inventory, equipment, intellectual property, real property, and virtually all business assets. As of June 30, 2018, the Company was in compliance with all covenants under the Amended Credit Facility. As of June 30, 2018, $35.0 million was outstanding under the Line of Credit, $21.1 million was outstanding under the Term Loan and $4.9 million was outstanding under the CapEx Loan.

On May 27, 2015, the Company’s Taiwan branch entered into a Purchase and Sale Contract and a Finance Lease Agreement with Chailease Finance Co, Ltd. (“Chailease”) in connection with certain equipment, structured as a sale lease-back transaction. Pursuant to the Purchase and Sale contract, the Company’s Taiwan branch sold certain equipment to Chailease for a purchase price of 180,148,532 New Taiwan dollars, and simultaneously leased the equipment back from Chailease pursuant to the Finance Lease Agreement. The monthly lease payments range from 3,784,000 New Taiwan dollars, to 3,322,413 New Taiwan dollars, during the term of the Finance Lease Agreement, including an initial payment in an amount of 60,148,532 New Taiwan dollars. The Finance Lease Agreement had a three-year term, which matured on May 27, 2018. The title to the equipment was transferred to the Company’s Taiwan branch upon the expiration of the Finance Lease Agreement. As of June 30, 2018, the outstanding balance under this Finance Lease Agreement had been fully repaid.

On March 31, 2016, the Company’s Taiwan branch entered into a Purchase and Sale Contract and a Finance Lease Agreement with Chailease in connection with certain equipment, structured as a sale lease-back transaction. Pursuant to the Purchase and Sale Contract, the Company’s Taiwan branch sold certain equipment to Chailease for a purchase price of 312,927,180 New Taiwan dollars, and simultaneously leased the equipment back from Chailease pursuant to the Finance Lease Agreement. The Finance Lease Agreement had a three-year term with monthly lease payments ranging from 6,772,500 New Taiwan dollars, to 7,788,333 New Taiwan dollars, during the term of the Finance Lease Agreement, including an initial payment in an amount of 62,927,180 New Taiwan dollars. Based on the payments made under the Finance Lease Agreement, the annual interest rate was calculated to be 4.0%. On October 6, 2017, the Company repaid the outstanding balance and terminated the loan, and title to the equipment was transferred to its Taiwan branch.

On June 19, 2018, Prime World’s Taiwan branch entered into a one year revolving credit facility totaling 300 million New Taiwan dollars (the “Taiwan Credit Facility”) with Taishin International Bank in Taiwan (the “Bank”). Borrowing under the Taiwan Credit Facility will be used for short-term working capital. Prime World may draw upon the Taiwan Credit Facility from June 19, 2018 until May 31, 2019. The term of each draw shall be either 90 or 120 days. Borrowings under the Taiwan Credit Facility will bear interest at a rate of 2.00% for 90 day draws and 1.95% for 120 day draws. At the end of the draw term, Prime World will make payment for all principal and accrued interest. The agreements for the Taiwan Credit Facility contain representations and warranties, and events of default applicable to Prime World that are customary for agreements of this type. As of June 30, 2018, there was no outstanding balance under this credit facility.

As of June 30, 2018 and December 31, 2017, the Company had $56.1 million and $1.0 million of unused borrowing capacity, respectively.

As of June 30, 2018 and December 31, 2017, there were no restricted cash, investments or security deposit associated with the loan facilities, respectively.

Accrued Liabilities

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Accrued Liabilities

Note 10. Accrued Liabilities

Accrued liabilities consisted of the following for the periods indicated (in thousands):



	June 30, 2018		December 31, 2017
Accrued payroll	$	9,503	$	11,693
Accrued rent		1,190		1,180
Accrued employee benefits		2,020		2,035
Accrued state and local taxes		454		951
Advance payments		464		441
Accrued product warranty		1,324		1,118
Accrued commission expenses		295		425
Accrued professional fees		201		181
Accrued other		1,200		1,079
	$	16,651	$	19,103

Other Income and Expense

6 Months Ended

Jun. 30, 2018

Other income (expense)

Other Income and Expense

Note 11. Other Income and Expense

Other income and (expense) consisted of the following for the periods indicated (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Foreign exchange transaction gain (loss)		1,289		(128)		249		(700)
Government subsidy income		269		75		269		75
Other non-operating gain		19		108		31		121
Gain (loss) on disposal of assets		4		9		5		(40)
	$	1,581	$	64	$	554	$	(544)

Share-Based Compensation

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Note 12. Share-Based Compensation

Equity Plans

The Company’s board of directors and stockholders approved the following equity plans:

the 1998 Share Incentive Plan

the 2000 Share Incentive Plan

the 2004 Share Incentive Plan

the 2006 Share Incentive Plan

the 2013 Equity Incentive Plan (“2013 Plan”)

The Company issued stock options, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) to employees, consultants and non-employee directors. Stock option awards generally vest over a four year period and have a maximum term of ten years. Stock options under these plans have been granted with an exercise price equal to the fair market value on the date of the grant. Nonqualified and Incentive Stock Options, RSAs and RSUs may be granted from these plans. Prior to the Company’s initial public offering in September 2013, the fair market value of the Company’s stock had been historically determined by the board of directors and from time to time with the assistance of third party valuation specialists.

Stock Options

Options have been granted to the Company’s employees under the five incentive plans and generally become exercisable as to 25% of the shares on the first anniversary date following the date of grant and 12.5% on a semi-annual basis thereafter. All options expire ten years after the date of grant.

The following is a summary of option activity (in thousands, except per share data):



				Weighted				Weighted
		Weighted		Average				Average
		Average		Share Price		Weighted		Remaining	Aggregate
	Number of	Exercise		on Date of		Average		Contractual	Intrinsic
	shares	Price		Exercise		Fair Value		Life	Value
	(in thousands, except price data)
Outstanding, January 1, 2018	536	$	10.04			$	5.19		$	14,888
Exercised	(80)		9.74	$	32.95		4.90			1,847
Forfeited	(88)		9.93				5.10			3,083
Outstanding, June 30, 2018	368	$	10.13			$	5.27	5.12	$	12,802
Exercisable, June 30, 2018	368	$	10.13					5.12	$	12,802
Vested and expected to vest	368	$	10.13					5.12	$	12,802

As of June 30, 2018, there was no unrecognized stock option expense.

Restricted Stock Units/Awards

The following is a summary of RSU/RSA activity (in thousands, except per share data):


		Weighted
		Average Share		Weighted		Aggregate
	Number of	Price on Date		Average Fair		Intrinsic
	shares	of Release		Value		Value
	(in thousands, except price data)
Outstanding at January 1, 2018	707			$	29.23	$	26,732
Granted	517				33.77		17,444
Released	(166)	$	35.69		28.78		5,914
Cancelled/Forfeited	(25)				32.15		1,110
Outstanding, June 30, 2018	1,033			$	31.50	$	46,384
Exercisable, June 30, 2018	4					$	140
Vested and expected to vest	1,033					$	46,384

As of June 30, 2018, there was $30.0 million of unrecognized compensation expense related to these RSUs and RSAs. This expense is expected to be recognized over 2.9 years.

Share-Based Compensation

Employee share-based compensation expenses recognized for the periods indicated (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Share-based compensation - by expense type
Cost of goods sold	$	211	$	134	$	388	$	212
Research and development		676		441		1,252		706
Sales and marketing		260		169		488		249
General and administrative		1,752		1,516		3,340		2,600
Total share-based compensation expense	$	2,899	$	2,260	$	5,468	$	3,767


	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Share-based compensation - by award type
Employee stock options	$	12	$	268	$	12	$	547
Restricted stock units		2,887		1,992		5,456		3,220
Total share-based compensation expense	$	2,899	$	2,260	$	5,468	$	3,767

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 13. Income Taxes The Company’s tax provision or benefit from income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. The Company’s quarterly tax provision, and its quarterly estimate of its annual effective tax rate, is subject to significant variation due to several factors, including variability in accurately predicting its pre-tax income and loss and the mix of jurisdictions to which they relate, tax law developments, and relative changes in permanent tax benefits or expenses. The Company’s effective tax rate for the three months ended June 30, 2018 and 2017 was 22.2% and 14.9%, respectively. For the three months ended June 30, 2018, the effective tax rate varied from the federal statutory rate of 21% primarily due to the level and mix of earnings among tax jurisdictions, share-based compensation, tax benefits related to research and development, and recognition of the U.S. global intangible low-taxed income ("GILTI"). For the three months ended June 30, 2017, the effective tax rate varied from the federal statutory rate of 35% primarily due to the level and mix of earnings among tax jurisdictions, the release of the valuation allowances recorded on the deferred tax assets in China, and the recognition of employee share-based compensation in accordance with ASU 2016-09. The Company’s effective tax rate for the six months ended June 30, 2018 and 2017 was 11.4% and 15.2%, respectively. For the six months ended June 30, 2018, the effective tax rate varied from the federal statutory rate of 21% primarily due to the level and mix of earnings among tax jurisdictions, share-based compensation, tax benefits related to research and development, and recognition of the U.S. global intangible low-taxed income ("GILTI"). For the six months ended June 30, 2017, the effective tax rate varied from the federal statutory rate of 35% primarily due to the level and mix of earnings among tax jurisdictions, the release of the valuation allowances recorded on the deferred tax assets in China, and the recognition of employee share-based compensation in accordance with ASU 2016-09. On December 22, 2017, the President of the United Stated signed Public Law No. 115-97, commonly referred to as the Tax Cut and Jobs Act of 2017 (the “Tax Act”). The Tax Act makes significant changes to the U.S. tax code, which include, but are not limited to: a U.S federal corporate tax rate decrease from 35% to 21%, effective January 1, 2018; a shift to a modified territorial tax regime, which requires companies to pay a one-time transition tax on the mandatory deemed repatriation of the cumulative earnings of certain foreign subsidiaries as of December 31, 2017; a new provision designed to tax GILTI of foreign subsidiaries; a limitation of the deduction for net operating losses; elimination of net operating loss carrybacks; immediate deductions for depreciation expense for certain qualified property; additional limitations on the deductibility of executive compensation; and limitations on the deductibility of interest. The Company was able to reasonably estimate the transition tax and recorded an initial provisional transition tax obligation of $5.0 million, with a corresponding adjustment of $5.0 million to income tax expense for the year ended December 31, 2017. As a result of new interpretive guidance issued by the Treasury and the IRS, the Company recognized an additional measurement-period adjustment of ($0.8 million), with a corresponding adjustment of $0.8 million to income tax benefit during the six months ended June 30, 2018. The effect of the measurement-period adjustment on the second quarter 2018 effective tax rate was approximately (7) %. However, the Company is continuing to gather additional information to more precisely compute the amount of the transition tax, and its accounting for this item is not yet complete because the final foreign earnings and profits calculations have not been completed. The Company expects to complete its accounting within the prescribed measurement period. The Company will continue to refine its estimates related to the impact of the Tax Act during the one year measurement period from December 22, 2017 allowed under Staff Accounting Bulletin 118 (“SAB 118”). Additionally, the Company previously considered the earnings in its non-U.S. subsidiaries to be indefinitely reinvested and, accordingly, recorded no deferred income taxes. The Company is currently analyzing its global working capital and cash requirements and the potential tax liabilities attributable to a repatriation, but the Company has yet to determine whether it plans to change its prior assertion and repatriate earnings. While the transition tax resulted in the reduction of the excess of the amount for financial reporting over the tax basis in our foreign subsidiaries, an actual repatriation from its non-U.S. subsidiaries could be subject to additional foreign and U.S. state income taxes. Accordingly, the Company has not recorded any deferred taxes attributable to our investments in its foreign subsidiaries. The Company will record the tax effects of any change in its prior assertion in the period that it completes its analysis and are able to make a reasonable estimate, and disclose any unrecognized deferred tax liability for temporary differences related to our foreign investments, if practicable.

Geographic Information

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Geographic Information

Note 14. Geographic Information

The Company operates in one reportable segment. The Company’s Chief Executive Officer, who is considered to be the chief operating decision maker, manages the Company’s operations as a whole and reviews financial information presented on a consolidated basis, accompanied by information about product revenue, for purposes of evaluating financial performance and allocating resources.

The following tables set forth the Company’s revenue and asset information by geographic region. Revenue is classified based on the location of where the product is manufactured. Long-lived assets in the tables below comprise only property, plant, equipment and intangible assets (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Revenues:
United States	$	3,768	$	4,112	$	7,331	$	8,631
Taiwan		28,970		67,696		62,173		119,321
China		55,084		45,563		83,557		85,643
	$	87,822	$	117,371	$	153,061	$	213,595


	As of the period ended
	June 30,		December 31,
	2018		2017
Long-lived assets:
United States	$	79,181	$	75,446
Taiwan		65,677		67,379
China		77,321		59,929
	$	222,179	$	202,754

Contingencies	6 Months Ended
Contingencies	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Note 15. Contingencies Litigation Overview From time to time, the Company may be subject to legal proceedings and litigation arising in the ordinary course of business, including, but not limited to, inquiries, investigations, audits and other regulatory proceedings, such as described below. The Company records a loss provision when it believes it is both probable that a liability has been incurred and the amount can be reasonably estimated. Unless otherwise disclosed, the Company is unable to estimate the possible loss or range of loss for the legal proceeding described below. Except for the lawsuit described below, the Company believes that there are no claims or actions pending or threatened against it, the ultimate disposition of which would have a material adverse effect on it. Class Action and Shareholder Derivative Litigation On August 5, 2017, a lawsuit was filed in the U.S. District Court for the Southern District of Texas against the Company and two of its officers in Mona Abouzied v. Applied Optoelectronics, Inc., Chih-Hsiang (Thompson) Lin, and Stefan J. Murry, et al., Case No. 4:17-cv-02399. The complaint in this matter seeks class action status on behalf of the Company’s shareholders, alleging violations of Sections 10(b) and 20(a) of the Exchange Act against the Company, its chief executive officer, and its chief financial officer, arising out of its announcement on August 3, 2017 that “we see softer than expected demand for our 40G solutions with one of our large customers that will offset the sequential growth and increased demand we expect in 100G.” A second, related action was filed by Plaintiff Chad Ludwig on August 16, 2017 (Case No. 4:17-cv-02512) in the Southern District of Texas. The two cases were consolidated before Judge Vanessa D. Gilmore. On January 22, 2018, the court appointed Lawrence Rougier as Lead Plaintiff and Levi & Korinsky LLP as Lead Counsel. Lead Plaintiff filed an amended consolidated class action complaint on March 6, 2018. The amended complaint requests unspecified damages and other relief. The Company disputes the allegations and intends to vigorously contest the matter. We filed a motion to dismiss on April 4, 2018. Lead Plaintiff filed a response in opposition to the motion to dismiss on May 4, 2018, and briefing was completed on May 21, 2018. Further deadlines in this matter have been stayed until the court issues a decision on the pending motion to dismiss.

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 16. Subsequent Events The Company has evaluated subsequent events through the date the financial statements were available to be issued.

Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2018
Accounting Policies [Abstract]
Business Overview	Business Overview Applied Optoelectronics, Inc. (“AOI” or the “Company”) is a Delaware corporation. The Company is a leading, vertically integrated provider of fiber-optic networking products, primarily for four networking end-markets: internet data center, cable television, telecommunications and fiber-to-the-home. The Company designs and manufactures a wide range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment. The Company has manufacturing and research and development facilities located in the U.S., Taiwan and China. In the U.S., at its corporate headquarters and manufacturing facilities in Sugar Land, Texas, the Company primarily manufactures lasers and laser components and performs research and development activities for laser component and optical module products. In addition, the Company also has a research and development facility in Duluth, Georgia. The Company operates in Taipei, Taiwan and Ningbo, China through its wholly-owned subsidiary Prime World International Holdings, Ltd. (“Prime World”, incorporated in the British Virgin Islands). Prime World is the parent of Global Technology, Inc. (“Global”, incorporated in the People’s Republic of China). Through Global, the Company primarily manufactures certain of our data center transceiver products, including subassemblies, as well as Cable TV Broadband (“CATV”) systems and equipment, and performs research and development activities for the CATV products. Prime World also operates a branch in Taiwan, which primarily manufactures transceivers.
Interim Financial Statements	Interim Financial Statements The unaudited condensed consolidated financial statements of the Company as of June 30, 2018 and December 31, 2017 and for the three and six months ended June 30, 2018 and June 30, 2017, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim information and with the instructions on Form 10-Q and Rule 10-01 of Regulation S-X pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In accordance with those rules and regulations, the Company has omitted certain information and notes required by GAAP for annual consolidated financial statements. In the opinion of management, the condensed consolidated financial statements contain all adjustments, except as otherwise noted, necessary for the fair presentation of the Company’s financial position and results of operations for the periods presented. The year-end condensed balance sheet data was derived from audited financial statements. These condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K (“Annual Report”) for the fiscal year ended December 31, 2017. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results expected for the entire fiscal year. All significant intercompany accounts and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates in the consolidated financial statements and accompanying notes. Significant estimates and assumptions that impact these financial statements and the accompanying notes relate to, among other things, allowance for doubtful accounts, inventory reserve, product warranty costs, share-based compensation expense, estimated useful lives of property and equipment, and taxes.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted in 2018 In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). The new revenue recognition guidance establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. The Company evaluated its revenues and the new guidance had immaterial impacts to recognition practices upon adoption on January 1, 2018. As part of the adoption, the Company elected to apply the new guidance on a modified retrospective basis. The Company did not record a cumulative effect adjustment to retained earnings for initially applying the new guidance as no revenue recognition differences were identified in the timing or amount of revenue. See Note 3, "Revenue Recognition" for additional information on the required disclosures related to the impact of adopting this standard. The FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities with further clarifications made in February 2018 with the issuance of ASU 2018-03. The amended guidance requires certain equity investments that are not consolidated and not accounted for under the equity method to be measured at fair value with changes in fair value recognized in net income rather than as a component of accumulated other comprehensive income (loss). It further states that an entity may choose to measure equity investments that do not have readily determinable fair values using a quantitative approach, or measurement alternative, which is equal to its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company adopted this amended guidance on January 1, 2018, with no impact on the financial statements. In March 2018, the FASB issued ASU 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118." ASU 2018-05, effective 2018, expands income tax accounting and disclosure guidance to include SAB 118 issued by the SEC in December 2017. SAB 118 provides guidance on accounting for the income tax effects of the U.S. Tax Cuts and Jobs Act of 2017 (the “Tax Act”) and among other things allows for a measurement period not to exceed one year for companies to finalize the provisional amounts recorded as of December 31, 2017. See Note 13, “Income Taxes” for additional information on the Company’s accounting for the Tax Act. Recent Accounting Pronouncements Yet to be Adopted On February 25, 2016, the FASB released ASU No. 2016-02, Leases, to complete its project to overhaul lease accounting. The ASU codifies ASC 842, Leases, which will replace the guidance in ASC 840. The guidance will require lessees to recognize most leases on the balance sheet for capital and operating leases. The guidance is effective for public business entities in fiscal years beginning after December 15, 2018. The Company is evaluating the impact of the accounting standard on its financial statements by reviewing the standard itself, as well as reviewing literature about the new standard produced by nationally-recognized accounting firms and other third parties.
Revenue Recognition.	Revenue from Contracts with Customers On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method. Under the modified retrospective method, the Company did not record a cumulative effect adjustment to retained earnings for initially applying the new guidance as no revenue recognition differences were identified in the timing or amount of revenue. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Revenue Recognition ("Topic 605"). The adoption of Topic 606 represents a change in accounting principle that will provide financial statement readers with enhanced revenue recognition disclosures. In accordance with Topic 606, revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of products or services. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. Certain customers may receive cash and/or non-cash incentives, which are accounted for as variable consideration. To achieve this core principle, the Company applies the following five steps: 1. Identify the contract with a customer A contract with a customer exists when (i) the Company enters into an agreement with a customer that defines each party's rights regarding the products or services to be transferred and identifies the payment terms related to these products or services, (ii) both parties to the contract are committed to perform their respective obligations, (iii) the contract has commercial substance, and (iv) the Company determines that collection of substantially all consideration for products or services that are transferred is probable based on the customer's intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's payment history or, in the case of a new customer, published credit and financial information pertaining to the customer. 2. Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the products or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised products or services, the Company must apply judgment to determine whether promised products or services are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised products or services are accounted for as a combined performance obligation. The Company has elected to account for shipping and handling activities as a fulfillment cost as permitted by the standard. 3. Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring products or services to the customer. To the extent the transaction price is variable, revenue is recognized at an amount equal the consideration to which the Company expects to be entitled. This estimate includes customer sales incentives which are accounted for as a reduction to revenue and estimated using either the expected value method or the most likely amount method, depending on the nature of the program. The Company will adjust its consideration for any rebates and commissions if it is more likely than not that these conditions will be met. 4. Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless a portion of the variable consideration related to the contract is allocated entirely to a performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. 5. Recognize revenue when or as the Company satisfies a performance obligation The Company generally satisfies performance obligations at a point in time. Revenue is recognized based on the transaction price at the time the related performance obligation is satisfied by transferring a promised product or service to a customer. Disaggregation of Revenue Revenue is classified based on the location of where the product is manufactured. For additional information on the disaggregated revenues by geographical region, see Note 14, "Geographic Information.”

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2018

Revenue Recognition

Schedule of revenue classified by major product category

Revenue is also classified by major product category and is presented below (in thousands):


	Three months ended June 30,
	2018		% of Revenue	2017		% of Revenue
Data Center	$	69,040	78.6%	$	99,298	84.6%
CATV		14,184	16.2%		14,404	12.3%
Telecom		4,157	4.7%		3,077	2.6%
FTTH		166	0.2%		125	0.1%
Other		275	0.3%		467	0.4%
Total Revenue	$	87,822	100.0%	$	117,371	100.0%


	Six months ended June 30,
	2018		% of Revenue	2017		% of Revenue
Data Center	$	119,623	78.2%	$	178,892	83.8%
CATV		24,752	16.2%		27,498	12.9%
Telecom		7,743	5.1%		6,248	2.9%
FTTH		277	0.2%		223	0.1%
Other		666	0.4%		734	0.3%
Total Revenue	$	153,061	100.0%	$	213,595	100.0%

Cash, Cash Equivalents and Restricted (Tables)

6 Months Ended

Jun. 30, 2018

Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Abstract

Schedule of cash and cash equivalents


		June 30,		December 31,
		2018	2017
Cash and cash equivalents	$	76,190	$	82,936
Restricted cash		1,753		1,012
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$	77,943	$	83,948

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2018

Net income per share

Schedule of Computation basic and diluted net loss per share

The following table sets forth the computation of the basic and diluted net income per share for the periods indicated (in thousands, except per share amounts):


	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017

Numerator:
Net income	$	8,034	$	29,071	$	10,154	$	48,860
Denominator:
Weighted average shares used to compute net income per share
Basic		19,590		19,081		19,541		18,841
Effect of dilutive options and restricted stock units		490		1,286		471		1,115
Diluted		20,080		20,367		20,012		19,956
Net income per share
Basic	$	0.41	$	1.52	$	0.52	$	2.59
Diluted	$	0.40	$	1.43	$	0.51	$	2.45

Inventories (Tables)

6 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

Schedule of inventories

Inventories, net of inventory writedowns, consist of the following for the periods indicated (in thousands):



	June 30, 2018		December 31, 2017
Raw materials	$	27,078	$	26,648
Work in process and sub-assemblies		48,068		31,060
Finished goods		18,123		18,060
	$	93,269	$	75,768

Property, Plant & Equipment (Tables)

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Schedule of property, plant and equipment

Property, plant and equipment consisted of the following for the periods indicated (in thousands):



	June 30, 2018		December 31, 2017
Land improvements	$	806	$	806
Building and improvements		80,193		78,785
Machinery and equipment		184,557		168,993
Furniture and fixtures		4,860		4,663
Computer equipment and software		8,677		8,248
Transportation equipment		674		718
		279,767		262,213
Less accumulated depreciation and amortization		(81,839)		(70,194)
		197,928		192,019
Construction in progress		13,076		4,823
Land		1,101		1,101
Property, plant and equipment, net	$	212,105	$	197,943

Intangible Assets, net (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets

Intangible assets consisted of the following for the periods indicated (in thousands):


	June 30, 2018
	Gross		Accumulated		Intangible
	Amount		amortization		assets, net
Patents	$	6,736	$	(2,760)	$	3,976
Trademarks		14		(12)		2
Total intangible assets	$	6,750	$	(2,772)	$	3,978


	December 31, 2017
	Gross		Accumulated		Intangible
	Amount		amortization		assets, net
Patents	$	6,524	$	(2,519)	$	4,005
Trademarks		14		(12)		2
Total intangible assets	$	6,538	$	(2,531)	$	4,007

Notes Payable and Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Schedule of notes payable and long-term debt

Notes payable and long-term debt consisted of the following for the periods indicated (in thousands):



	June 30, 2018		December 31, 2017

Revolving line of credit with a U.S. bank up to $60,000 with interest at LIBOR plus 1.4%, maturing September 28, 2020	$	35,000	$	49,000
Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 1.15%, maturing April 1, 2024		21,142		—
Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 1.3%, maturing April 1, 2023		4,887		—
Notes payable to a finance company due in monthly installments with 4.5% interest, maturing May 27, 2018		—		559
Total		61,029		49,559
Less current portion		(3,161)		(559)
Non-current portion	$	57,868	$	49,000

Maturities of notes payable and long-term debt

Maturities of long-term debt are as follows for the future one-year periods ending June 30, (in thousands):


2019	$	3,161
2020		38,161
2021		3,161
2022		3,161
2023		2,993
2024 and thereafter		10,392
Total outstanding	$	61,029

Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Schedule of accrued liabilities

Accrued liabilities consisted of the following for the periods indicated (in thousands):



	June 30, 2018		December 31, 2017
Accrued payroll	$	9,503	$	11,693
Accrued rent		1,190		1,180
Accrued employee benefits		2,020		2,035
Accrued state and local taxes		454		951
Advance payments		464		441
Accrued product warranty		1,324		1,118
Accrued commission expenses		295		425
Accrued professional fees		201		181
Accrued other		1,200		1,079
	$	16,651	$	19,103

Other Income and Expense (Tables)

6 Months Ended

Jun. 30, 2018

Other income (expense)

Schedule of other income and expense

Other income and (expense) consisted of the following for the periods indicated (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Foreign exchange transaction gain (loss)		1,289		(128)		249		(700)
Government subsidy income		269		75		269		75
Other non-operating gain		19		108		31		121
Gain (loss) on disposal of assets		4		9		5		(40)
	$	1,581	$	64	$	554	$	(544)

Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of option activity

The following is a summary of option activity (in thousands, except per share data):



				Weighted				Weighted
		Weighted		Average				Average
		Average		Share Price		Weighted		Remaining	Aggregate
	Number of	Exercise		on Date of		Average		Contractual	Intrinsic
	shares	Price		Exercise		Fair Value		Life	Value
	(in thousands, except price data)
Outstanding, January 1, 2018	536	$	10.04			$	5.19		$	14,888
Exercised	(80)		9.74	$	32.95		4.90			1,847
Forfeited	(88)		9.93				5.10			3,083
Outstanding, June 30, 2018	368	$	10.13			$	5.27	5.12	$	12,802
Exercisable, June 30, 2018	368	$	10.13					5.12	$	12,802
Vested and expected to vest	368	$	10.13					5.12	$	12,802

Summary of RSU/RSA activity

The following is a summary of RSU/RSA activity (in thousands, except per share data):


		Weighted
		Average Share		Weighted		Aggregate
	Number of	Price on Date		Average Fair		Intrinsic
	shares	of Release		Value		Value
	(in thousands, except price data)
Outstanding at January 1, 2018	707			$	29.23	$	26,732
Granted	517				33.77		17,444
Released	(166)	$	35.69		28.78		5,914
Cancelled/Forfeited	(25)				32.15		1,110
Outstanding, June 30, 2018	1,033			$	31.50	$	46,384
Exercisable, June 30, 2018	4					$	140
Vested and expected to vest	1,033					$	46,384

Schedule of employee stock-based compensation expenses

Employee share-based compensation expenses recognized for the periods indicated (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Share-based compensation - by expense type
Cost of goods sold	$	211	$	134	$	388	$	212
Research and development		676		441		1,252		706
Sales and marketing		260		169		488		249
General and administrative		1,752		1,516		3,340		2,600
Total share-based compensation expense	$	2,899	$	2,260	$	5,468	$	3,767


	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Share-based compensation - by award type
Employee stock options	$	12	$	268	$	12	$	547
Restricted stock units		2,887		1,992		5,456		3,220
Total share-based compensation expense	$	2,899	$	2,260	$	5,468	$	3,767

Geographic Information (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Revenue information by geographic region


	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Revenues:
United States	$	3,768	$	4,112	$	7,331	$	8,631
Taiwan		28,970		67,696		62,173		119,321
China		55,084		45,563		83,557		85,643
	$	87,822	$	117,371	$	153,061	$	213,595

Long-lived assets by geographic region


	As of the period ended
	June 30,		December 31,
	2018		2017
Long-lived assets:
United States	$	79,181	$	75,446
Taiwan		65,677		67,379
China		77,321		59,929
	$	222,179	$	202,754

Description of Business (Details)	Jun. 30, 2018 item
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of networking end markets	4

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue
Revenue	$ 87,822		$ 153,061
Percentage of Revenue	100.00%		100.00%
Data Center
Disaggregation of Revenue
Revenue	$ 69,040		$ 119,623
Percentage of Revenue	78.60%		78.20%
CATV
Disaggregation of Revenue
Revenue	$ 14,184		$ 24,752
Percentage of Revenue	16.20%		16.20%
Telecom
Disaggregation of Revenue
Revenue	$ 4,157		$ 7,743
Percentage of Revenue	4.70%		5.10%
FTTH
Disaggregation of Revenue
Revenue	$ 166		$ 277
Percentage of Revenue	0.20%		0.20%
Other
Disaggregation of Revenue
Revenue	$ 275		$ 666
Percentage of Revenue	0.30%		0.40%
Before Topic 606
Disaggregation of Revenue
Revenue		$ 117,371		$ 213,595
Percentage of Revenue		100.00%		100.00%
Before Topic 606 \| Data Center
Disaggregation of Revenue
Revenue		$ 99,298		$ 178,892
Percentage of Revenue		84.60%		83.80%
Before Topic 606 \| CATV
Disaggregation of Revenue
Revenue		$ 14,404		$ 27,498
Percentage of Revenue		12.30%		12.90%
Before Topic 606 \| Telecom
Disaggregation of Revenue
Revenue		$ 3,077		$ 6,248
Percentage of Revenue		2.60%		2.90%
Before Topic 606 \| FTTH
Disaggregation of Revenue
Revenue		$ 125		$ 223
Percentage of Revenue		0.10%		0.10%
Before Topic 606 \| Other
Disaggregation of Revenue
Revenue		$ 467		$ 734
Percentage of Revenue		0.40%		0.30%

Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Abstract
Cash and cash equivalents	$ 76,190	$ 82,936
Restricted Cash	1,753	1,012
Total cash, cash equivalents and restricted cash shown in the statement of cash flows	$ 77,943	$ 83,948	$ 75,879	$ 51,964

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net income	$ 8,034	$ 29,071	$ 10,154	$ 48,860
Weighted average shares used to compute net income per share
Basic	19,590,164	19,081,034	19,541,478	18,840,656
Effective of dilutive options and restricted stock units	490,000	1,286,000	471,000	1,115,000
Diluted	20,079,702	20,367,127	20,012,344	19,956,097
Net income per share
Basic	$ 0.41	$ 1.52	$ 0.52	$ 2.59
Diluted	$ 0.40	$ 1.43	$ 0.51	$ 2.45

Earnings Per Share - Potentially Dilutive Shares (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net income per share
Potentially dilutive securities excluded from EPS	0	0	0	0

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 27,078	$ 26,648
Work in process and sub-assemblies	48,068	31,060
Finished goods	18,123	18,060
Inventories	$ 93,269	$ 75,768

Inventories - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Inventories - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Inventory Disclosure [Abstract]
Lower of cost or market reserve adjustment for inventory	$ 1.5	$ 0.2	$ 2.4	$ 0.7

Property, Plant & Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property, plant and equipment, gross	$ 279,767	$ 262,213
Less accumulated depreciation and amortization	(81,839)	(70,194)
Property, plant and equipment after accumulated depreciation and amortization, excluding construction in progress and land	197,928	192,019
Construction in progress	13,076	4,823
Land	1,101	1,101
Property, plant and equipment, net	212,105	197,943
Land improvements
Property, plant and equipment, gross	806	806
Building and improvements
Property, plant and equipment, gross	80,193	78,785
Machinery and equipment
Property, plant and equipment, gross	184,557	168,993
Furniture and fixtures
Property, plant and equipment, gross	4,860	4,663
Computer equipment and software
Property, plant and equipment, gross	8,677	8,248
Transportation equipment
Property, plant and equipment, gross	$ 674	$ 718

Property, Plant & Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 7.2	$ 4.5	$ 14.0	$ 8.7
Cost of Sales, depreciation	$ 3.8	$ 2.8	$ 7.6	$ 5.4

Intangible Assets, net (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Gross Amount	$ 6,750	$ 6,538
Accumulated amortization	(2,772)	(2,531)
Intangible assets, net	3,978	4,007
Patents
Gross Amount	6,736	6,524
Accumulated amortization	(2,760)	(2,519)
Intangible assets, net	3,976	4,005
Trademarks
Gross Amount	14	14
Accumulated amortization	(12)	(12)
Intangible assets, net	$ 2	$ 2

Intangible Assets, net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Amortization expense for intangible assets	$ 0.1	$ 0.1	$ 0.3	$ 0.3
License
Weighted average amortization period			8 years

Notes Payable and Long-Term Debt (Details) $ in Thousands	6 Months Ended
Notes Payable and Long-Term Debt (Details) $ in Thousands	Jun. 30, 2018 TWD ($)	Jun. 30, 2018 USD ($)	Jun. 19, 2018 TWD ($)	Dec. 31, 2017 USD ($)
Notes payable and long-term debt		$ 61,029		$ 49,559
Current portion of notes payable and long-term debt		(3,161)		(559)
Long term portion of notes payable and long-term debt		57,868		49,000
Term loan 1
Notes payable and long-term debt		21,142
Term loan 1 \| London Interbank Offered Rate (LIBOR)
Basis spread on variable rate	1.15%
Term loan 2
Notes payable and long-term debt		$ 4,887
Term loan 2 \| London Interbank Offered Rate (LIBOR)
Basis spread on variable rate	1.30%
Note payable 1
Notes payable and long-term debt				559
Stated interest rate	4.50%	4.50%
Revolving Line of Credit 7
Notes payable and long-term debt	$ 0
Revolving line of credit maximum borrowing capacity			$ 300,000,000
Minimum \| Revolving Line of Credit 7
Stated interest rate			1.95%
Maximum \| Revolving Line of Credit 7
Stated interest rate			2.00%
Revolving Line of Credit \| Revolving Line of Credit 1
Notes payable and long-term debt		$ 35,000		$ 49,000
Revolving line of credit maximum borrowing capacity		$ 60,000
Debt maturity date	Sep. 28, 2020
Revolving Line of Credit \| Revolving Line of Credit 1 \| London Interbank Offered Rate (LIBOR)
Basis spread on variable rate	1.40%

Notes Payable and Long-Term Debt - Debt Maturities (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Maturities of notes payable and long-term debt
2019	$ 3,161
2020	38,161
2021	3,161
2022	3,161
2023	2,993
2024 and thereafter	10,392
Total outstanding	$ 61,029

Notes Payable and Long-Term Debt - Term Debt - Narrative (Details) $ in Thousands									6 Months Ended
	Jun. 30, 2018 TWD ($)	Jun. 19, 2018 TWD ($)	Mar. 30, 2018 USD ($)	Sep. 28, 2017 USD ($)	Jun. 24, 2016 USD ($)	Jun. 14, 2016 USD ($)	Mar. 31, 2016 TWD ($)	May 27, 2015 TWD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jun. 25, 2016 USD ($)
Repayments of outstanding balance				$ 11,200					$ 93,953
Notes payable and long-term debt										$ 61,029	$ 49,559
Unused borrowing capacity										56,100	1,000
Restricted Cash										1,753	1,012
One Month LIBOR Rate
Interest rate description	LIBOR Borrowing Rate plus 1.88%
Basis spread on variable rate	2.09%
Revolving Line of Credit 7
Revolving line of credit maximum borrowing capacity		$ 300,000,000
Term of revolving credit facility		1 year
Notes payable and long-term debt	$ 0
Revolving Line of Credit 7 \| Minimum
Draw term		90 days
Stated interest rate		1.95%
Revolving Line of Credit 7 \| Maximum
Draw term		120 days
Stated interest rate		2.00%
Loan facilities
Restricted Cash										0	0
Investments										0	0
Deposits										0	$ 0
East West Bank and Comerica Bank \| London Interbank Offered Rate (LIBOR) \| Modification Agreement
Interest rate description						LIBOR Borrowing Rate plus 2.0%
Basis spread on variable rate					2.00%	2.00%
East West Bank and Comerica Bank \| One Month LIBOR Rate \| Modification Agreement
Interest rate description						one-month LIBOR Borrowing Rate plus 2.75%
Basis spread on variable rate						2.75%
East West Bank and Comerica Bank \| First Amendment \| London Interbank Offered Rate (LIBOR) \| Modification Agreement
Interest rate description					LIBOR Borrowing Rate plus 2.0%
East West Bank \| Modification Agreement
Revolving line of credit maximum borrowing capacity						$ 22,000
Chailease Finance Co. Ltd. \| Finance Lease 1
Lease purchase price								$ 180,148,532
Initial payment amount								$ 60,148,532
Financial lease term								3 years
Chailease Finance Co. Ltd. \| Finance Lease 1 \| Minimum
Lease payment range price								$ 3,322,413
Chailease Finance Co. Ltd. \| Finance Lease 1 \| Maximum
Lease payment range price								$ 3,784,000
Chailease Finance Co. Ltd. \| Finance Lease 2
Lease purchase price							$ 312,927,180
Financial lease term							3 years
Financial lease Interest rate							4.00%
Chailease Finance Co. Ltd. \| Finance Lease 2 \| Minimum
Initial payment amount							$ 62,927,180
Lease payment range price							6,772,500
Chailease Finance Co. Ltd. \| Finance Lease 2 \| Maximum
Lease payment range price							$ 7,788,333
Branch Banking and Trust Company \| First Credit Facility
Revolving line of credit maximum borrowing capacity				$ 50,000
Term of revolving credit facility				3 years
Branch Banking and Trust Company \| First Credit Facility \| One Month LIBOR Rate
Basis spread on variable rate				1.50%
Branch Banking and Trust Company \| Line of credit
Revolving line of credit maximum borrowing capacity			$ 60,000
Notes payable and long-term debt										35,000
Branch Banking and Trust Company \| Line of credit \| One Month LIBOR Rate
Interest rate description			one-month LIBOR plus
Branch Banking and Trust Company \| Line of credit \| One Month LIBOR Rate \| Minimum
Basis spread on variable rate			1.40%
Branch Banking and Trust Company \| Line of credit \| One Month LIBOR Rate \| Maximum
Basis spread on variable rate			2.00%
Revolving Line of Credit \| East West Bank and Comerica Bank \| First Amendment
Revolving line of credit maximum borrowing capacity					$ 25,000							$ 40,000
Draw down period					1 year
Term of revolving credit facility					5 years
Revolving Line of Credit \| East West Bank and Comerica Bank \| First Amendment \| London Interbank Offered Rate (LIBOR)
Interest rate description						LIBOR Borrowing Rate plus 2.75% or 3.0%
Revolving Line of Credit \| East West Bank and Comerica Bank \| First Amendment \| London Interbank Offered Rate (LIBOR) \| Minimum
Basis spread on variable rate					2.75%
Revolving Line of Credit \| East West Bank and Comerica Bank \| First Amendment \| London Interbank Offered Rate (LIBOR) \| Maximum
Basis spread on variable rate					3.00%
Term Loan \| East West Bank and Comerica Bank \| First Amendment
Revolving line of credit maximum borrowing capacity					$ 10,000
Term Loan \| Branch Banking and Trust Company
Notes payable and long-term debt										21,100
Term Loan \| Branch Banking and Trust Company \| One Month LIBOR Rate
Interest rate description			one-month LIBOR plus
Term Loan \| Branch Banking and Trust Company \| One Month LIBOR Rate \| Minimum
Basis spread on variable rate			1.15%
Term Loan \| Branch Banking and Trust Company \| One Month LIBOR Rate \| Maximum
Basis spread on variable rate			2.00%
Equipment Term Loan \| East West Bank and Comerica Bank \| First Amendment
Revolving line of credit maximum borrowing capacity					$ 10,000
Capital expenditure loan \| Branch Banking and Trust Company
Revolving line of credit maximum borrowing capacity			$ 26,000
Term of revolving credit facility			5 years
Notes payable and long-term debt										$ 4,900
Capital expenditure loan \| Branch Banking and Trust Company \| One Month LIBOR Rate
Interest rate description			one-month LIBOR plus
Capital expenditure loan \| Branch Banking and Trust Company \| One Month LIBOR Rate \| Minimum
Basis spread on variable rate			1.30%
Capital expenditure loan \| Branch Banking and Trust Company \| One Month LIBOR Rate \| Maximum
Basis spread on variable rate			2.00%
Real estate term loan \| Branch Banking and Trust Company
Revolving line of credit maximum borrowing capacity			$ 21,500
Term of revolving credit facility			70 months

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accrued payroll	$ 9,503	$ 11,693
Accrued rent	1,190	1,180
Accrued employee benefits	2,020	2,035
Accrued state and local taxes	454	951
Advance payments	464	441
Accrued product warranty	1,324	1,118
Accrued commission expenses	295	425
Accrued professional fees	201	181
Accrued other	1,200	1,079
Total accrued liabilities	$ 16,651	$ 19,103

Other Income and Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Other Income and Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other income (expense)
Foreign exchange transaction gain (loss)	$ 1,289	$ (128)	$ 249	$ (700)
Government subsidy income	269	75	269	75
Other non-operating gain	19	108	31	121
Gain (loss) on disposal of assets	4	9	5	(40)
Other income and expense, net	$ 1,581	$ 64	$ 554	$ (544)

Share-Based Compensation - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($) plan	Dec. 31, 2017 USD ($)
Minimum
Vesting period	4 years
Restricted stock units
Unrecognized compensation expense	$ 30,000
Unrecognized compensation expense recognized period	2 years 10 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding	$ 46,384	$ 26,732
Employee stock options
Number of incentive plans \| plan	5
Options Expiration Period	10 years
Unrecognized compensation expense	$ 0
Employee stock options \| Share-based Compensation Award, Tranche One
Vesting rights (as a percent)	25.00%
Employee stock options \| Share-based Compensation Award, Tranche Two
Vesting rights (as a percent)	12.50%
2013 Plan \| Restricted stock units
Maximum term	10 years

Share-Based Compensation - Option Activity (Details) - Employee stock options $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Number of Shares
Outstanding, beginning balance \| shares	536
Exercised \| shares	(80)
Forfeited \| shares	(88)
Outstanding, ending balance \| shares	368
Exercisable, ending balance \| shares	368
Vested and expected to vest \| shares	368
Weighted Average Exercise Price
Outstanding, beginning balance	$ 10.04
Exercised	9.74
Forfeited	9.93
Outstanding, ending balance	10.13
Exercisable, ending balance	10.13
Vested and expected to vest	10.13
Weighted Average Share Price on Date of Exercise	32.95
Weighted Average Fair Value [Abstract]
Outstanding, beginning balance	5.19
Exercised	4.90
Forfeited	5.10
Outstanding, ending balance	$ 5.27
Weighted Average Remaining Contractual Life
Outstanding, ending balance	5 years 1 month 13 days
Exercisable, ending balance	5 years 1 month 13 days
Vested and expected to vest	5 years 1 month 13 days
Aggregate Intrinsic Value
Aggregate intrinsic value, beginning balance \| $	$ 14,888
Exercised \| $	1,847
Forfeited \| $	3,083
Aggregate intrinsic value, ending balance \| $	12,802
Exercisable, ending balance \| $	12,802
Vested and expected to vest \| $	$ 12,802

Share-Based Compensation - Restricted Stock Units (Details) - Restricted stock units $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Number of shares
Outstanding, beginning balance \| shares	707
Granted \| shares	517
Released \| shares	(166)
Cancelled/Forfeited \| shares	(25)
Outstanding, ending balance \| shares	1,033
Exercisable, ending balance \| shares	4
Vested and expected to vest \| shares	1,033
Weighted Average Share Price on Date of Release \| $ / shares	$ 35.69
Weighted Average Fair Value
Outstanding, beginning balance \| $ / shares	29.23
Granted \| $ / shares	33.77
Released \| $ / shares	28.78
Cancelled/Forfeited \| $ / shares	32.15
Outstanding, ending balance \| $ / shares	$ 31.50
Aggregate Intrinsic Value [Abstract]
Aggregate intrinsic value, outstanding \| $	$ 26,732
Granted \| $	17,444
Released \| $	5,914
Cancelled/Forfeited \| $	1,110
Aggregate intrinsic value, outstanding \| $	46,384
Exercisable, ending balance \| $	140
Vested and expected to vest \| $	$ 46,384

Share-Based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Total share-based compensation expense	$ 2,899	$ 2,260	$ 5,468	$ 3,767
Employee stock options
Total share-based compensation expense	12	268	12	547
Restricted stock units
Total share-based compensation expense	2,887	1,992	5,456	3,220
Cost of goods sold
Total share-based compensation expense	211	134	388	212
Research and development.
Total share-based compensation expense	676	441	1,252	706
Sales and marketing.
Total share-based compensation expense	260	169	488	249
General and administrative.
Total share-based compensation expense	$ 1,752	$ 1,516	$ 3,340	$ 2,600

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Effective tax rate	22.20%	14.90%	11.40%	15.20%
Federal statutory rate	21.00%	35.00%	21.00%	35.00%	35.00%
Transition tax					$ 5.0
Income tax expense (benefit)			$ 0.8		$ 5.0
Measurement period adjustment			$ 0.8
Measurement period adjustment, effective tax rate			(7.00%)

Geographic Information - Revenues (Details) $ in Thousands	3 Months Ended		6 Months Ended
Geographic Information - Revenues (Details) $ in Thousands	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) item	Jun. 30, 2017 USD ($)
Number of Reportable segment \| item			1
Revenues	$ 87,822	$ 117,371	$ 153,061
Before Topic 606
Revenues				$ 213,595
United States
Revenues	3,768	4,112	7,331
United States \| Before Topic 606
Revenues				8,631
Taiwan
Revenues	28,970	67,696	62,173
Taiwan \| Before Topic 606
Revenues				119,321
China
Revenues	$ 55,084	$ 45,563	$ 83,557
China \| Before Topic 606
Revenues				$ 85,643

Geographic Information - Long Lived Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Long-lived assets	$ 222,179	$ 202,754
United States
Long-lived assets	79,181	75,446
Taiwan
Long-lived assets	65,677	67,379
China
Long-lived assets	$ 77,321	$ 59,929

Contingencies - Narrative (Details)	Aug. 05, 2017 item customer
Commitments and Contingencies Disclosure [Abstract]
Number of executive officers \| item	2
Number of customers \| customer	1