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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2013	Nov. 07, 2013
Document And Entity Information
Entity Registrant Name	Applied Optoelectronics, Inc.
Entity Central Index Key	0001158114
Document Type	10-Q
Document Period End Date	Sep. 30, 2013
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		12,629,095
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2013

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Current Assets
Cash and cash equivalents	$ 7,325	$ 10,723
Restricted cash	1,031	503
Accounts receivable - trade, net	17,043	13,525
Bank acceptance receivable	0	1,034
Inventories	16,421	12,493
Prepaid expenses and other current assets	3,765	968
Total current assets	45,585	39,246
Property, plant and equipment, net	27,125	24,838
Land use rights, net	957	674
Intangible assets, net	828	795
Other assets, net	1,439	195
TOTAL ASSETS	75,934	65,748
Current liabilities
Current portion of notes payable and long-term debt	12,095	13,900
Accounts payable	11,282	6,913
Bank acceptance payable	3,040	1,521
Accrued liabilities	3,557	3,243
Total current liabilities	29,974	25,577
Notes payable and long-term debt, less current portion	14,618	9,163
TOTAL LIABILITIES	44,592	34,740
Stockholders' equity (deficit):
Redeemable Convertible Preferred Stock and Convertible Preferred Stock; 172,200 shares authorized; 5,547 shares issued and outstanding at December 31, 2012, no par value; 5,600 shares issued and outstanding at September 30, 2013, $0.001 par value	105,801	105,367
Common Stock; 300,000 shares authorized; 266 shares issued and outstanding at December 31, 2012, no par value; 290 shares issued and outstanding at September 30, 2013, $0.001 par value	1,222	1,074
Additional paid-in capital	4,801	4,468
Accumulated other comprehensive gain	2,320	2,016
Accumulated deficit	(82,802)	(81,917)
TOTAL STOCKHOLDERS' EQUITY	31,342	31,008
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 75,934	$ 65,748

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Convertible Preferred Stock par value	$ .001	$ 0.00
Convertible Preferred Stock shares authorized	172,200,000	172,200,000
Convertible Preferred Stock shares issued	5,600,000	5,547,000
Convertible Preferred Stock shares outstanding	5,600,000	5,547,000
Common stock par value	$ .001	$ 0.00
Common stock shares authorized	300,000,000	300,000,000
Common stock shares issued	290,000	266,000
Common stock shares outstanding	290,000	266,000

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]
Revenue, net	$ 20,766	$ 16,416	$ 54,680	$ 44,559
Cost of goods sold	14,445	11,743	38,327	31,074
Gross profit	6,321	4,673	16,353	13,485
Operating expenses
Research and development	2,211	2,095	6,112	5,379
Sales and marketing	1,034	756	2,994	2,369
General and administrative	2,436	1,978	7,257	5,890
Total operating expenses	5,681	4,829	16,363	13,638
Income (loss) from operations	640	(156)	(10)	(153)
Other income (expense)
Interest expense	(323)	(350)	(925)	(1,067)
Other income (expense), net	73	125	50	223
Total other expense	(250)	(225)	(875)	(844)
Income (loss) before income taxes	390	(381)	(885)	(997)
Income taxes	0	0	0	0
Net income (loss)	$ 390	$ (381)	$ (885)	$ (997)
Net income (loss) per share - basic	$ 0.04	$ (1.43)	$ (3.24)	$ (3.76)
Net income (loss) per share - diluted	$ 0.04	$ (1.43)	$ (3.24)	$ (3.76)
Weighted average shares used to compute net income (loss) per share - basic	8,995,000	266,000	273,000	265,000
Weighted average shares used to compute net income (loss) per share - diluted	9,155,000	266,000	273,000	265,000
Pro forma net income (loss) per share - basic	$ 0.04		$ (0.10)
Pro forma net income (loss) per share - diluted	$ 0.04		$ (0.10)
Pro forma weighted average shares used to compute net income (loss) per share - basic	9,034,000		9,004,000
Pro forma weighted average shares used to compute net income (loss) per share - diluted	9,194,000		9,004,000

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 390	$ (381)	$ (885)	$ (997)
Foreign currency translation adjustment, net of tax	66	(49)	304	(60)
Comprehensive income (loss)	$ 456	$ (430)	$ (581)	$ (1,057)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Operating activities:
Net loss	$ (885)	$ (997)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for obsolete inventory	550	556
Depreciation and amortization	2,436	2,213
Gain (loss) on disposal of assets	0	36
Stock-based compensation and warrant expense	375	51
Changes in operating assets and liabilities:
Accounts receivable	(3,446)	438
Bank acceptance receivable	1,036	(174)
Inventory	(4,389)	(1,588)
Other current assets	(2,886)	(933)
Accounts payable	4,350	(687)
Accrued liabilities	405	278
Net cash used in operating activities	(2,454)	(807)
Investing activities:
Purchase of property, plant and equipment	(4,697)	(2,711)
Proceeds from disposal of equipment	0	138
Deposits and deferred charges	(37)	(41)
Purchase of intangible assets	(83)	(159)
Net cash used in investing activities	(4,817)	(2,773)
Financing activities:
Proceeds from issuance of notes payable and long-term debt	2,851	845
Principal payments of long-term debt and notes payable	(192)	(427)
Proceeds from line of credit borrowings	16,159	4,466
Repayments of line of credit borrowings	(15,406)	(2,106)
Proceeds from bank acceptance payable	4,746	8,412
Repayments of bank acceptance payable	(3,282)	(8,885)
Repayments of shareholder loans	0	(150)
(Increase) decrease in restricted cash	(511)	(193)
Exercise of stock options	87	6
Exercise of warrants	494	0
Deferred offering costs	(1,251)	0
Issuance of preferred stock, net	0	10,234
Net cash provided by financing activities	3,695	12,202
Effect of exchange rate changes on cash	178	(59)
Net increase (decrease) in cash	(3,398)	8,563
Cash and cash equivalents at beginning of year	10,723	1,768
Cash and cash equivalents at end of year	7,325	10,331
Cash paid for:
Interest	959	1,122
Income taxes	2	0
Conversion of shareholders' loan to preferred stock	$ 0	$ 760

1. Description of Business

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

1. Description of Business

Business Overview

Applied Optoelectronics, Inc., or AOI, was originally incorporated in Texas in February of 1997 and then converted to a Delaware corporation in March of 2013. AOI together with its wholly-owned subsidiaries are collectively referred to as the Company. The Company is a leading, vertically integrated provider of fiber-optic networking products, primarily for three networking end-markets: cable television, fiber-to-the-home and internet data centers. 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 in all three of its U.S., Taiwan and China locations. 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 the laser component products. The Company operates a division in Taipei, Taiwan that primarily manufactures transceivers and performs research and development activities for the transceiver products. The Company operates in Ningbo, China through its wholly-owned subsidiary Prime World International Holdings, Ltd. (incorporated in the British Virgin Islands), the sole parent of Global Technology, Inc. (incorporated in the People’s Republic of China). Through Global Technology, the Company primarily manufactures Cable TV Broadband (“CATV”) systems and equipment and performs research and development activities for the CATV products.

Interim Financial Statements

The condensed consolidated financial statements of the Company, as of September 30, 2013 and December 31, 2012 and for the three and nine months ended September 30, 2013 and 2012, have been prepared in accordance with the instructions on Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In accordance with those rules and regulations, the Company has omitted certain information and notes normally provided in the Company’s annual consolidated financial statements. In the opinion of management, the condensed consolidated financial statements contain all adjustments, 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, but does not include all disclosures required by U.S. generally accepted accounting principles (“GAAP”). These condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Registration Statement on Form S-1 that was effective on September 25, 2013 as filed with the SEC (the “Registration Statement”). The results of operations for the three and nine months ended September 30, 2013 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, valuation allowances for deferred tax assets, inventory reserve, stock-based compensation expense, estimated useful lives of property and equipment, and taxes.

2. Significant Accounting Policies

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

2. Significant Accounting Policies

There have been no changes in the Company’s significant accounting policies for the three months ended September 30, 2013, as compared to the significant accounting policies described in its Registration Statement.

Recent accounting pronouncements

There have been no recent accounting pronouncements for the three months ended September 30, 2013, as compared to the recent accounting pronouncements described in its Registration Statement.

3. Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

3. Fair Value of Financial Instruments

The following table presents a summary of the Company’s financial instruments measured at fair value on a recurring basis for the periods indicated (in thousands):

	As of September 30, 2013								As of December 31, 2012
	(Level 1)		(Level 2)		(Level 3)		Total		(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash and cash equivalents	$	7,325	$	–	$	–	$	7,325	$	10,723	$	–	$	–	$	10,723
Restricted cash		1,031		–		–		1,031		503		–		–		503
Bank acceptance receivable		–		–		–		–		–		1,034		–		1,034
Total assets	$	8,356	$	–	$	–	$	8,356	$	11,226	$	1,034	$	–	$	12,260
Liabilities:
Interest rate swap	$	–	$	–	$	–	$	–	$	–	$	11	$	–	$	11
Bank acceptance payable				3,040				3,040				1,521				1,521
Total liabilities	$	–	$	3,040	$	–	$	3,040	$	–	$	1,532	$	–	$	1,532

The carrying value amounts of accounts receivable, prepaid expenses and other current assets, borrowings from our credit facility, accounts payable, accrued expenses and other current liabilities approximate fair value because of the short-term maturity of these instruments.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

4. Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

4. Earnings Per Share

Basic net income (loss) per share has been computed using the weighted-average number of shares of common stock outstanding during the period. The Company’s preferred shares that were outstanding prior to the completion of the Company’s initial public offering had the right to participate in the Company’s earnings and dividends; however, since there is not a contractual obligation for the preferred shareholders to share in losses, the preferred shares should not be included in loss periods, as their effect is anti-dilutive. Therefore, for those periods presented below that ended with a net loss, the Company has presented both basic and diluted loss per share excluding those preferred shares. For periods with net income, shares used in computing basic and diluted earnings per share include common shares assuming conversion of the preferred stock.

Diluted net income (loss) per share has been computed using the weighted-average number of shares of common stock and dilutive potential common shares from options and warrants outstanding during the period. In periods with net losses, normally dilutive shares become anti-dilutive, and therefore for those periods basic and dilutive earnings per share are the same.

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

	Three months ended September 30,					Nine months ended September 30,
	2013		2012			2013			2012
Numerator:
Net income (loss)	$	390	$	(381	)	$	(885	)	$	(997	)
Denominator:
Weighted average shares used to
compute net income (loss) per share
Basic		8,995		266			273			265
Effective of dilutive options and warrants		160		–			–			–
Diluted		9,155		266			273			265
Net income (loss) per share
Basic	$	0.04	$	(1.43	)	$	(3.24	)	$	(3.76	)
Diluted	$	0.04	$	(1.43	)	$	(3.24	)	$	(3.76	)

Pro Forma earnings per share (unaudited)

The Company’s registration statement on Form S-1 was declared effective on September 25, 2013 by the SEC and the Company’s common stock began trading on the NASDAQ Global Market (“NASDAQ”), on September 26, 2013. On October 1, 2013, the Company completed and closed its initial public offering (the “Offering”), selling 3,600,000 shares of common stock, at a price of $10.00 per share, providing $33.5 million in net proceeds after underwriting discounts and commissions. Accordingly, events that were to be triggered on completion of an Offering did not occur until October 1^st, post-period. Because the Offering priced within the third quarter but closed post-period, the Company has presented Pro Forma share and earnings per share information, for comparative purposes only. This pro forma presentation presumes that there was a qualified Offering that was completed on the first day of trading on September 26, 2013. The following unaudited calculation of the numerator and denominator of basic and diluted earnings per share, or EPS gives effect to the automatic conversion of all outstanding shares of the Company’s convertible preferred stock (using the as if-converted method) into common stock as though the conversion had occurred as of the beginning of the period or the original date of issuance, if later, together with the IPO shares that would have been issued using the weighted average shares outstanding (in thousands, except per share amounts):

	Three months ended September 30,					Nine months ended September 30,
	2013		2012			2013			2012
Numerator:
Net income (loss)	$	390	$	(381	)	$	(885	)	$	(997	)
Denominator:
Number of shares used to compute net income (loss) per share
Basic		8,995					8,965
Effective of dilutive options and warrants		160					–
Diluted		9,155					8,965
Assumed issuance of shares in IPO to new investors		39					39
Number of shares used to compute pro forma net income (loss) per share
Basic		9,034					9,004
Effective of dilutive options and warrants		160					–
Diluted		9,194					9,004

Pro forma net income (loss) per share
Basic	$	0.04				$	(0.10	)
Diluted	$	0.04				$	(0.10	)

The following potentially dilutive securities were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012

Employee stock options		1,347		412		1,484		412
Preferred stock warrants		10		89		33		89
		1,357		501		1,517		501

5. Inventory

9 Months Ended

Sep. 30, 2013

Inventory Disclosure [Abstract]

5. Inventory

Inventories consist of the following for the periods indicated (in thousands):

	September 30, 2013		December 31, 2012
Raw materials	$	6,710	$	4,755
Work in process		6,539		4,434
Finished goods		3,172		3,304
	$	16,421	$	12,493

The lower of cost or market adjustment expensed for inventory for the three and nine months ended September 30, 2013 was $0.1 million and $0.5 million, respectively. For the three and nine months ended September 30, 2012, the lower of cost or market adjustment expensed for inventory was $0.1 million and $0.3 million, respectively.

6. Property, Plant and Equipment

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

6. Property, Plant and Equipment

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

	September 30, 2013			December 31, 2012
Land improvements	$	96		$	93
Building and improvements		15,560			15,239
Machinery and equipment		33,690			29,977
Furniture and fixtures		853			739
Computer equipment and software		3,183			2,851
Transportation equipment		188			173
		53,570			49,072
Less accumulated depreciation and amortization		(27,178	)		(24,967	)
		26,392			24,105
Land		733			733
Property, plant and equipment, net	$	27,125		$	24,838

For the three and nine months ended September 30, 2013, depreciation expense of property, plant and equipment was $0.9 million and $2.4 million, respectively.

7. Notes Payable and Long-Term Debt

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

7. Notes Payable and Long-Term Debt

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

	September 30, 2013		December 31, 2012
Long-Term and Short-Term Debt
Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 1.125% (floor rate: 4.375%), maturing May 3, 2014	$	67	$	141
Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 0.75% (floor rate: 4%) or swap contract (fixed 5%), maturing November 15, 2014		3,103		3,181
Revolving line of credit with a U.S. bank up to $10,500 with interest at prime plus 1.0% (floor rate: 4.25%), maturing November 15, 2014		9,360		8,637
Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 1.25% (floor rate: 4.50%), maturing September 10, 2017		1,850		–
Revolving line of credit with a China bank up to $12,074 with interest at 110% of China Prime rate which ranged from 4.10% to 6.60% in 2013 with various maturity dates from October 2013 to August 2014		11,089		10,668
Revolving line of credit with a China bank up to $1,627 with 6.16% interest and various maturity dates from January 2014 to February 2014		266		–
Note payable to a finance company due in monthly installments with 9% interest, maturing October 31, 2013		–		38
Note payable to a finance company due in monthly installments with 4.95% interest, maturing July 30, 2015		978		398
Total		26,713		23,063
Less current portion		12,095		13,900
Long term portion	$	14,618	$	9,163
Bank Acceptance Payable
Bank acceptance notes issued to vendors with a zero percent interest rate, a 30% guarantee deposit of $997, and maturity dates ranging from October 2013 to January 2014	$	3,040	$	1,521

The U.S. bank loans and line of credit agreement require the Company to meet certain financial covenants including a minimum current ratio, minimum quarterly debt service coverage requirements, a minimum unrestricted cash balance as well as maximum debt to tangible net worth ratio and reporting requirements. Collateral for the U.S. bank loans and line of credit includes substantially all of the assets of the Company. As of September 30, 2013, the Company was in compliance with all of its financial and operational covenants associated with these loans. As of September 30, 2013, the Company had $1.1 million of unused borrowing capacity.

On September 10, 2013, the Company’s outstanding loan agreement with East West Bank was amended to add $5.0 million of borrowing capability to the existing credit line, for the purpose of financing equipment. The additional equipment term loan allows the Company to draw up to the lesser of (i) $5.0 million, or (ii) 90% of the costs of equipment purchased between March 31, 2013 and March 10, 2014. Through March 10, 2014, the Company is required to pay interest only on the then-outstanding balance, and then pay equal principal payments plus accrued interest monthly for the following 42 months. The interest rate for such equipment term loan is the bank’s prime lending rate plus 1.25%, or as of September 30, 2013, a total of 4.5%. As of September 30, 2013, the Company drew $1.85 million on this equipment line in reimbursement for capital equipment expenditures.

As of September 30, 2013, the Company’s China subsidiary had a line of credit facility with China banks totaling $13.7 million. As of September 30, 2013, a total of $11.4 million was outstanding under various notes, each with its own maturity date and each renewing annually from December 2013 to August 2014. The notes that begin to mature in December 2013 are expected to be renewed on the same terms and with new one year terms. These loans have renewed each year for the past three years. While there can be no assurance of renewal as each loan matures, these loans are expected to renew this year as they have over the past periods. As of September 30, 2013, the Company had $2.3 million of unused borrowing capacity.

In July 2013, the Company entered into a 24-month equipment financing agreement of $1.0 million in Taiwan with a financing company. The financing agreement requires equipment collateral and is payable in monthly installment payments over 24 months, maturing in July 2015.

A customary business practice in China is to pay accounts payable with bank acceptance notes issued by a bank (so-called Bank Acceptances). From time to time the Company issues Bank Acceptances to its suppliers in China. These Bank Acceptances are non-interest bearing and are generally due within six months, and such Bank Acceptances may be redeemed with the issuing bank prior to maturity at a discount. As a condition of the Bank Acceptances lending arrangements, the Company is required to keep a compensating balance at the issuing bank that is a percentage of the total bank acceptances balance until the Bank Acceptances are paid by our China subsidiary. These balances are classified as restricted cash on our consolidated balance sheets. As of September 30, 2013, our restricted cash and Bank Acceptance payable totaled $1.0 million and $3.0 million respectively

8. Accrued Liabilites

9 Months Ended

Sep. 30, 2013

Payables and Accruals [Abstract]

8. Accrued Liabilites

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

	September 30, 2013		December 31, 2012
Accrued payroll	$	2,003	$	1,631
Accrued employee benefits		447		429
Accrued property taxes		125		167
Accrued interest		70		74
Accrued payments		153		189
Accrued commission		100		69
Accrued professional fees		71		22
Accrued other		588		662
	$	3,557	$	3,243

9. Other Income and Expense

9 Months Ended

Sep. 30, 2013

Other income (expense)

9. Other Income and Expense

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

	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
Interest income	$	15		$	5		$	49		$	12
Unrealized foreign exchange gain (loss)		(65	)		119			(256	)		150
Realized foreign exchange gain (loss)		57			–			(8	)		(1	)
Government subsidy income		75			20			269			86
Other non-operating gain (loss)		(9	)		(18	)		(13	)		14
Gain (loss) on disposal of assets		–			(1	)		9			(38	)
	$	73		$	125		$	50		$	223

10. Stock-Based Compensation

9 Months Ended

Sep. 30, 2013

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

10. Stock-Based Compensation

The Company’s board of directors and stockholders previously approved, the 1998 Share Incentive Plan, the 2000 Share Incentive Plan, the 2004 Share Incentive Plan and the 2006 Share Incentive Plan, (collectively the “Prior Plans”). As of September 30, 2013, the Company had options outstanding to purchase 725,277 shares of common stock under its Prior Plans with a weighted average exercise price of $6.66. Following the Offering, no further awards will be granted under the Prior Plans. However, all outstanding awards under the Prior Plans will continue to exist and will continue to be governed by their existing terms.

On April 12, 2013, our board of directors adopted and approved the Company’s 2013 Equity Incentive Plan, (the “2013 Plan”), and it was subsequently approved by the Company’s stockholders on May 21, 2013. As of September 30, 2013, the Company had options outstanding to purchase 759,163 shares of common stock under the 2013 Plan with a weighted average exercise price of $9.96.

The Company issues stock options to employees, consultants and non-employee directors. Stock option awards for the Prior Plans and the 2013 Plan generally vest over a four year period and have a maximum term of ten years. Stock options under these plans have been granted at the fair market value on the date of the grant. Nonqualified and Incentive Stock Options and restrictive stock units may be granted from these plans. The fair market value of the Company’s stock has been historically determined by the board of directors and from time to time with the assistance of third party valuation specialists.

In 2010, 2011 and 2012, the Company had estimated the fair value of employee stock options at the date of the grant using the Black-Scholes option-pricing model with the following assumptions: expected volatility of 70%, risk free interest rate of 1.01%, 2.32% and 1.72%, respectively, expected term of 6.25 years, no expected dividend yield, and estimated forfeitures of 10%. For grants issued after September 25, 2013, the same factors were used except that the expected volatility of 52% was used. Prior to the Offering, there had been no public market for the Company’s common stock. Therefore the expected volatility for options granted was derived from an analysis of reported data for a peer group of companies that issued options with similar terms. The expected volatility has been determined using an average of the expected volatility reported by this peer group of companies. The Company uses a risk free interest rate based on the 10-year Treasury as reported during the period. The expected term of options has been determined utilizing the simplified method which calculates a simple average based on vesting period and option life. The Company does not anticipate paying dividends in the near future. Estimated forfeitures were based on historical experience and future work force projections.

Employee stock-based compensation expenses recognized for three and nine months ended September 30, were as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012
Cost of sales	$	14	$	2	$	40	$	6
Research and development		12		2		37		6
Sales and marketing		11		1		31		6
General and administrative		98		10		267		33
	$	135	$	15	$	375	$	51

Options have been granted to the Company’s employees under the Prior Plans and the 2013 Plan and generally become exercisable as to 25% of the shares on the first anniversary date following the vesting commencement date, generally the date of grant, and semi-annually thereafter. All options expire ten years after the date of grant. As of September 30, 2013, the Company had outstanding options to purchase 3,862 shares under the 1998 plan; 20,840 shares under the 2000 plan; 25,075 shares under the 2004 plan; 675,500 shares under the 2006 plan; and 759,163 shares under the 2013 plan.

The following is a summary of option activity during the nine month period ending September 30, 2013 (in thousands, except price data):

	Number of shares			Exercise price		Weighted average exercise price
Outstanding, December 31, 2012		419			3.00 - 9.00		5.935
Granted		1,097			7.50 - 9.96		9.207
Exercised		(14	)		6.00		6.000
Forfeited		(13	)		6.00 - 7.50		6.629
Expired		(5	)		6.00 - 7.50		5.985
Outstanding, September 30, 2013		1,484			3.00 - 9.00		8.347
Exercisable, September 30, 2013		277			3.00 - 7.50		5.901
Vested and expected to vest		1,244			3.00 - 9.00		8.180

As of September 30, 2013, total compensation cost related to unvested stock options not yet recognized was $5.5 million, which is expected to be expensed over a weighted-average period of 3.74 years. The aggregate intrinsic value of options outstanding and options exercisable as of September 30, 2013 was $1.1 million.

11. Stockholders' Equity

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

11. Stockholders' Equity

Common Stock

The Company had authorized the issuance of up to 300,000,000 shares of common stock, all of which have been designated voting common stock, under its Certificate of Incorporation as of September 30, 2013.

Convertible Preferred Stock

The Company had authorized the issuance of up to 172,200,000 shares of preferred stock under the Company’s Certificate of Incorporation as of September 30, 2013. As of September 30, 2013 and prior to the completion of the Offering, the number of authorized and issued shares and the conversion rate from a preferred share into a common share by series was as follows:

	Authorized shares		Issued shares		Carrying value		Conversion rate
	(in thousands, except for conversion rate)
Series A (Redeemable)		4,900		160	$	7,105	1:3.1731
Series C		17,500		582		21,802	1:2.3107
Series D		11,800		380		14,184	1:2.5360
Series E		11,000		345		28,055	1:3.6186
Series F		82,000		2,702		19,662	1:1.2000
Series G		45,000		1,431		14,993	1:1.0000
		172,200		5,600	$	105,801

The conversion, participation and redemption rights associated with the preferred stock are further described in Note N of the notes to the financial statements and within the section titled Description of Capital Stock of the Registration Statement.

Warrants

As of September 30, 2013, we had outstanding warrants to purchase:

21,666 shares of our Series F preferred stock with a weighted average exercise price of $11.5384 per share of which 13,333 shares are exercisable under a warrant issued to our U.S. lender with an exercise price of $7.50 and 8,333 shares are exercisable under a warrant issued to our U.S. lender with an exercise price of $18.00 per share. If these warrants have not been exercised prior to the closing of the Offering, then the warrants automatically adjust to be exercisable for an aggregate of 26,000 shares of common stock at a weighted average exercise price of $9.6152 per share.

3,304 shares of our Series G preferred stock with an exercise price of $18.00 per share. These warrants, if not exercised prior to the completion of the Offering, will expire.

6,667 shares of our Series G preferred stock with an exercise price of $10.50 per share which are exercisable under a warrant issued to our U.S. lender. If this warrant has not been exercised prior to closing of the Offering, then pursuant to its terms, the warrant shall automatically adjust to be exercisable for 6,667 shares of common stock at $10.50 per share.

For the nine months ended September 30, 2013, $42,000 of expense was recorded related to these warrants. At September 30, 2013 $31,000 of deferred compensation remains to be expensed for these warrants. During the nine month period ended September 30, 2013, warrants were exercised for 74,219 of common shares.

Public Offering of Common Stock

On September 25, 2013, the Company sold 3.6 million shares of its common stock in its initial public offering at a price of $10.00 per share, providing proceeds of $33.5 million net of underwriting discounts and commissions. The Offering closed on October 1, 2013 and therefore the proceeds from the Offering and the issuance of common stock from the Offering are not reflected on the Company’s balance sheet as of September 30, 2013.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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-Number 210
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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-Section 02
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+ Details

12. Segment and Geographic Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

12. Segment and 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 the Company’s product manufacturing plants. Long-lived assets in the tables below comprise only property, plant, equipment and intangible assets (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012
Revenues:
United States		3,742		2,685		8,364		8,652
Taiwan		7,576		3,757		22,616		9,760
China		9,448		9,974		23,700		26,147
	$	20,766	$	16,416	$	54,680	$	44,559

	For the period ending
	September 30,		December 31,
	2013		2012
Long-lived assets:
United States		9,105		9,009
Taiwan		4,860		3,738
China		14,945		13,560
	$	28,910	$	26,307

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

13. Subsequent Events

9 Months Ended

Sep. 30, 2013

Subsequent Events [Abstract]

13. Subsequent Events

Public Offering of Common Stock

On October 1, 2013, the Company completed its Offering and issued and sold 3,600,000 shares of common stock at a public offering price of $10.00 per share for proceeds. The Company received proceeds of $33.5 million, net of underwriting discounts and commissions. Expenses incurred by the Company for the Offering were approximately $2.0 million and will be recorded against the proceeds received from the Offering. The Offering closed on October 1, 2013 and therefore the proceeds from the Offering and the issuance of the common stock are not reflected on the Company’s balance sheet as of September 30, 2013.

On October 22, 2013, the Company’s existing stockholders sold an aggregate of 540,000 shares of common stock, at a price of $10.00 per share, before underwriting discount and commission, as a result of the underwriters’ exercise of their over-allotment option to purchase additional shares.

Conversion of Preferred Stock to Common Stock

On October 1, 2013, the Company filed with the Delaware Secretary of State an Amended and Restated Certificate of Incorporation that converted all of its then outstanding preferred stock to common stock. Immediately after conversion of the preferred stock, the company had 9,029,095 shares of common stock outstanding, prior to issuance of shares to new investors from the Offering. The Amended and Restated Certificate of Incorporation changed the authorized shares to provide for 45,000,000 shares of common stock, par value of $0.001 per share, and 5,000,000 shares of preferred stock, par value $0.001 per share.

2. Significant Accounting Policies (Policies)	9 Months Ended
2. Significant Accounting Policies (Policies)	Sep. 30, 2013
Accounting Policies [Abstract]
Recent accounting pronouncements	Recent accounting pronouncements There have been no recent accounting pronouncements for the three months ended September 30, 2013, as compared to the recent accounting pronouncements described in its Registration Statement.
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, valuation allowances for deferred tax assets, inventory reserve, stock-based compensation expense, estimated useful lives of property and equipment, and taxes.

3. Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities at fair value

	As of September 30, 2013								As of December 31, 2012
	(Level 1)		(Level 2)		(Level 3)		Total		(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Cash and cash equivalents	$	7,325	$	–	$	–	$	7,325	$	10,723	$	–	$	–	$	10,723
Restricted cash		1,031		–		–		1,031		503		–		–		503
Bank acceptance receivable		–		–		–		–		–		1,034		–		1,034
Total assets	$	8,356	$	–	$	–	$	8,356	$	11,226	$	1,034	$	–	$	12,260
Liabilities:
Interest rate swap	$	–	$	–	$	–	$	–	$	–	$	11	$	–	$	11
Bank acceptance payable				3,040				3,040				1,521				1,521
Total liabilities	$	–	$	3,040	$	–	$	3,040	$	–	$	1,532	$	–	$	1,532

4. Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Computation of basic and diluted net loss per share

	Three months ended September 30,					Nine months ended September 30,
	2013		2012			2013			2012
Numerator:
Net income (loss)	$	390	$	(381	)	$	(885	)	$	(997	)
Denominator:
Weighted average shares used to
compute net income (loss) per share
Basic		8,995		266			273			265
Effective of dilutive options and warrants		160		–			–			–
Diluted		9,155		266			273			265
Net income (loss) per share
Basic	$	0.04	$	(1.43	)	$	(3.24	)	$	(3.76	)
Diluted	$	0.04	$	(1.43	)	$	(3.24	)	$	(3.76	)

Pro Forma earnings per share

	Three months ended September 30,					Nine months ended September 30,
	2013		2012			2013			2012
Numerator:
Net income (loss)	$	390	$	(381	)	$	(885	)	$	(997	)
Denominator:
Number of shares used to compute net income (loss) per share
Basic		8,995					8,965
Effective of dilutive options and warrants		160					–
Diluted		9,155					8,965
Assumed issuance of shares in IPO to new investors		39					39
Number of shares used to compute pro forma net income (loss) per share
Basic		9,034					9,004
Effective of dilutive options and warrants		160					–
Diluted		9,194					9,004

Pro forma net income (loss) per share
Basic	$	0.04				$	(0.10	)
Diluted	$	0.04				$	(0.10	)

Schedule of potentially dilutive securites

	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012

Employee stock options		1,347		412		1,484		412
Preferred stock warrants		10		89		33		89
		1,357		501		1,517		501

5. Inventory (Tables)

9 Months Ended

Sep. 30, 2013

Inventory Disclosure [Abstract]

Schedule of inventories

	September 30, 2013		December 31, 2012
Raw materials	$	6,710	$	4,755
Work in process		6,539		4,434
Finished goods		3,172		3,304
	$	16,421	$	12,493

6. Property, Plant and Equipment (Tables)

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Schedule of property, plant and equipment

	September 30, 2013			December 31, 2012
Land improvements	$	96		$	93
Building and improvements		15,560			15,239
Machinery and equipment		33,690			29,977
Furniture and fixtures		853			739
Computer equipment and software		3,183			2,851
Transportation equipment		188			173
		53,570			49,072
Less accumulated depreciation and amortization		(27,178	)		(24,967	)
		26,392			24,105
Land		733			733
Property, plant and equipment, net	$	27,125		$	24,838

7. Notes Payable and Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Schedule of notes payable and long-term debt

	September 30, 2013		December 31, 2012
Long-Term and Short-Term Debt
Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 1.125% (floor rate: 4.375%), maturing May 3, 2014	$	67	$	141
Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 0.75% (floor rate: 4%) or swap contract (fixed 5%), maturing November 15, 2014		3,103		3,181
Revolving line of credit with a U.S. bank up to $10,500 with interest at prime plus 1.0% (floor rate: 4.25%), maturing November 15, 2014		9,360		8,637
Term loan with a U.S. bank with monthly payments of principal and interest at prime plus 1.25% (floor rate: 4.50%), maturing September 10, 2017		1,850		–
Revolving line of credit with a China bank up to $12,074 with interest at 110% of China Prime rate which ranged from 4.10% to 6.60% in 2013 with various maturity dates from October 2013 to August 2014		11,089		10,668
Revolving line of credit with a China bank up to $1,627 with 6.16% interest and various maturity dates from January 2014 to February 2014		266		–
Note payable to a finance company due in monthly installments with 9% interest, maturing October 31, 2013		–		38
Note payable to a finance company due in monthly installments with 4.95% interest, maturing July 30, 2015		978		398
Total		26,713		23,063
Less current portion		12,095		13,900
Long term portion	$	14,618	$	9,163
Bank Acceptance Payable
Bank acceptance notes issued to vendors with a zero percent interest rate, a 30% guarantee deposit of $997, and maturity dates ranging from October 2013 to January 2014	$	3,040	$	1,521

8. Accrued Liabilites (Tables)

9 Months Ended

Sep. 30, 2013

Payables and Accruals [Abstract]

Schedule of accrued liabilities

	September 30, 2013		December 31, 2012
Accrued payroll	$	2,003	$	1,631
Accrued employee benefits		447		429
Accrued property taxes		125		167
Accrued interest		70		74
Accrued payments		153		189
Accrued commission		100		69
Accrued professional fees		71		22
Accrued other		588		662
	$	3,557	$	3,243

9. Other Income and Expense (Tables)

9 Months Ended

Sep. 30, 2013

Other income (expense)

Schedule of other income and expense

	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
Interest income	$	15		$	5		$	49		$	12
Unrealized foreign exchange gain (loss)		(65	)		119			(256	)		150
Realized foreign exchange gain (loss)		57			–			(8	)		(1	)
Government subsidy income		75			20			269			86
Other non-operating gain (loss)		(9	)		(18	)		(13	)		14
Gain (loss) on disposal of assets		–			(1	)		9			(38	)
	$	73		$	125		$	50		$	223

10. Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2013

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

Schedule of employee stock-based compensation expenses

	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012
Cost of sales	$	14	$	2	$	40	$	6
Research and development		12		2		37		6
Sales and marketing		11		1		31		6
General and administrative		98		10		267		33
	$	135	$	15	$	375	$	51

Summary of option activity

	Number of shares			Exercise price		Weighted average exercise price
Outstanding, December 31, 2012		419			3.00 - 9.00		5.935
Granted		1,097			7.50 - 9.96		9.207
Exercised		(14	)		6.00		6.000
Forfeited		(13	)		6.00 - 7.50		6.629
Expired		(5	)		6.00 - 7.50		5.985
Outstanding, September 30, 2013		1,484			3.00 - 9.00		8.347
Exercisable, September 30, 2013		277			3.00 - 7.50		5.901
Vested and expected to vest		1,244			3.00 - 9.00		8.180

11. Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

Schedule of convertible preferred stock

	Authorized shares		Issued shares		Carrying value		Conversion rate
	(in thousands, except for conversion rate)
Series A (Redeemable)		4,900		160	$	7,105	1:3.1731
Series C		17,500		582		21,802	1:2.3107
Series D		11,800		380		14,184	1:2.5360
Series E		11,000		345		28,055	1:3.6186
Series F		82,000		2,702		19,662	1:1.2000
Series G		45,000		1,431		14,993	1:1.0000
		172,200		5,600	$	105,801

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 480
-SubTopic 10
-Section S99
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=27011957&loc=d3e177068-122764

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21553-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6403732&loc=d3e21300-112643

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.28,29)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 30
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29
-Article 5

+ Details

12. Segment and Geographic Information (Tables)

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Revenue and asset information by geographic region

	Three months ended September 30,				Nine months ended September 30,
	2013		2012		2013		2012
Revenues:
United States		3,742		2,685		8,364		8,652
Taiwan		7,576		3,757		22,616		9,760
China		9,448		9,974		23,700		26,147
	$	20,766	$	16,416	$	54,680	$	44,559

	For the period ending
	September 30,		December 31,
	2013		2012
Long-lived assets:
United States		9,105		9,009
Taiwan		4,860		3,738
China		14,945		13,560
	$	28,910	$	26,307

3. Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Assets:
Cash and cash equivalents	$ 7,325	$ 10,723
Restricted cash	1,031	503
Bank acceptance receivable	0	1,034
Total assets	8,356	12,260
Liabilities:
Interest rate swap	0	11
Bank acceptance payable	3,040	1,521
Total liabilities	3,040	1,532
Fair Value, Inputs, Level 1 [Member]
Assets:
Cash and cash equivalents	7,325	10,723
Restricted cash	1,031	503
Bank acceptance receivable	0	0
Total assets	8,356	11,226
Liabilities:
Interest rate swap	0	0
Bank acceptance payable	0	0
Total liabilities	0	0
Fair Value, Inputs, Level 2 [Member]
Assets:
Cash and cash equivalents	0	0
Restricted cash	0	0
Bank acceptance receivable	0	1,034
Total assets	0	1,034
Liabilities:
Interest rate swap	0	11
Bank acceptance payable	3,040	1,521
Total liabilities	3,040	1,532
Fair Value, Inputs, Level 3 [Member]
Assets:
Cash and cash equivalents	0	0
Restricted cash	0	0
Bank acceptance receivable	0	0
Total assets	0	0
Liabilities:
Interest rate swap	0	0
Bank acceptance payable	0	0
Total liabilities	$ 0	$ 0

4. Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share [Abstract]
Net income (loss)	$ 390	$ (381)	$ (885)	$ (997)
Weighted average shares used to compute net income (loss) per share
Basic	8,995,000	266,000	273,000	265,000
Effective of dilutive options and warrants	160,000	0	0	0
Diluted	9,155,000	266,000	273,000	265,000
Net income (loss) per share
Basic	$ 0.04	$ (1.43)	$ (3.24)	$ (3.76)
Diluted	$ 0.04	$ (1.43)	$ (3.24)	$ (3.76)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

4. Earnings Per Share Pro Forma (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share [Abstract]
Net income (loss)	$ 390	$ (381)	$ (885)	$ (997)
Number of shares used to compute net income (loss) per share
Basic	8,995,000	266,000	8,965,000	265,000
Effective of dilutive options and warrants	160,000	0	0	0
Diluted	9,155,000		8,965,000
Assumed issuance of shares in IPO to new investors	39,000		39,000
Number of shares used to compute pro forma net income (loss) per share
Basic	9,034,000		9,004,000
Effective of dilutive options and warrants	160,000	0	0	0
Diluted	9,194,000		9,004,000
Pro forma net income (loss) per share
Basic	$ 0.04		$ (0.10)
Diluted	$ 0.04		$ (0.10)

4. Potentially dilutive securities (Details) - shares	3 Months Ended		9 Months Ended
4. Potentially dilutive securities (Details) - shares	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Potentially dilutive securires excluded from computation of diluted net income (loss) per share	1,357,000	501,000	1,517,000	501,000
Employee Stock Option [Member]
Potentially dilutive securires excluded from computation of diluted net income (loss) per share	1,347,000	412,000	1,484,000	412,000
Warrant [Member]
Potentially dilutive securires excluded from computation of diluted net income (loss) per share	10,000	89,000	33,000	89,000

5. Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Inventory Details
Raw materials	$ 6,710	$ 4,755
Work in process	6,539	4,434
Finished goods	3,172	3,304
Inventories	$ 16,421	$ 12,493

5. Inventory (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
5. Inventory (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Inventory Details Narrative
Lower of cost or market adjustment for inventory	$ 100	$ 100	$ 500	$ 300

6. Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Property, plant and equipment, gross	$ 53,570	$ 49,072
Less accumulated depreciation and amortization	(27,178)	(24,967)
Property, plant and equipment	26,392	24,105
Land	733	733
Property, plant and equipment, net	27,125	24,838
Land Improvements [Member]
Property, plant and equipment, gross	96	93
Building and Building Improvements [Member]
Property, plant and equipment, gross	15,560	15,239
Machinery and Equipment [Member]
Property, plant and equipment, gross	33,690	29,977
Furniture and Fixtures [Member]
Property, plant and equipment, gross	853	739
Computer Equipment [Member]
Property, plant and equipment, gross	3,183	2,851
Transportation Equipment [Member]
Property, plant and equipment, gross	$ 188	$ 173

6. Property, Plant and Equipment (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Property Plant And Equipment Details Narrative
Depreciation expense	$ 900	$ 2,400

7. Notes Payable and Long-Term Debt (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Notes payable and long-term debt total	$ 26,713	$ 23,063
Current portion of notes payable and long-term debt	12,095	13,900
Long term portion of notes payable and long-term debt	14,618	9,163
Bank acceptance notes	3,040	1,521
Term loan 1
Notes payable and long-term debt total	$ 67	141
Debt maturity date	May 03, 2014
Interest rate	prime plus 1.125%
Term loan 2
Notes payable and long-term debt total	$ 3,103	3,181
Debt maturity date	Nov. 15, 2014
Interest rate	prime plus 0.75%
Line of Credit
Notes payable and long-term debt total	$ 9,360	8,637
Debt maturity date	Nov. 15, 2014
Interest rate	prime plus 1.0%
Term Loan 3
Notes payable and long-term debt total	$ 1,850	0
Debt maturity date	Sep. 10, 2017
Interest rate	prime plus 1.25%
Line of Credit 2
Notes payable and long-term debt total	$ 11,089	10,668
Debt maturity date	Aug. 15, 2014
Interest rate	110% of China Prime rate
Line of Credit 3
Notes payable and long-term debt total	$ 266	0
Debt maturity date	Feb. 28, 2014
Interest rate	6.16%
Note payable 1
Notes payable and long-term debt total	$ 0	38
Debt maturity date	Oct. 31, 2013
Interest rate	9%
Note payable 2
Notes payable and long-term debt total	$ 978	$ 398
Debt maturity date	Jul. 30, 2015
Interest rate	4.95%

7. Notes Payable and Long-Term Debt (Details Narrative) $ in Thousands	Sep. 30, 2013 USD ($)
US Bank loans
Line of credit unused borrowing capacity	$ 1,100
China Banks
Line of credit unused borrowing capacity	2,300
Line of credit outstanding	11,400
Restricted cash	1,000
Bank acceptance payable	$ 3,000

8. Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2013	Dec. 31, 2012
Accrued Liabilities Details
Accrued payroll	$ 2,003	$ 1,631
Accrued employee benefits	447	429
Accrued property taxes	125	167
Accrued interest	70	74
Accrued payments	153	189
Accrued commission	100	69
Accrued professional fees	71	22
Accrued other	588	662
Total accrued liabilities	$ 3,557	$ 3,243

9. Other Income and Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Other Income And Expense Details
Interest income	$ 15	$ 5	$ 49	$ 12
Unrealized foreign exchange gain (loss)	(65)	119	(256)	150
Realized foreign exchange gain (loss)	57	0	(8)	(1)
Government subsidy income	75	20	269	86
Other non-operating gain (loss)	(9)	(18)	(13)	14
Gain (loss) on disposal of assets	0	(1)	9	(38)
Total other income and expense	$ 73	$ 125	$ 50	$ 223

10. Employeee stock-based compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Employee stock-based compensation expense	$ 135	$ 15	$ 375	$ 51
Cost of Sales [Member]
Employee stock-based compensation expense	14	2	40	6
Research and Development Expense [Member]
Employee stock-based compensation expense	12	2	37	6
Selling and Marketing Expense [Member]
Employee stock-based compensation expense	11	1	31	6
General and Administrative Expense [Member]
Employee stock-based compensation expense	$ 98	$ 10	$ 267	$ 33

10. Option Activity (Details)	9 Months Ended
10. Option Activity (Details)	Sep. 30, 2013 $ / shares shares
Number of Shares
Outstanding, beginning balance \| shares	419,000
Granted \| shares	1,097,000
Exercised \| shares	(14,000)
Forfeited \| shares	(13,000)
Expired \| shares	(5,000)
Outstanding, ending balance \| shares	1,484,000
Exericsable, ending balance \| shares	277,000
Vested and expected to vest \| shares	1,244,000
Weighted Average Exercise Price
Outstanding, beginning balance \| $ / shares	$ 5.935
Granted \| $ / shares	9.207
Exercised \| $ / shares	6.000
Forfeited \| $ / shares	6.6629
Expired \| $ / shares	5.985
Outstanding, ending balance \| $ / shares	8.347
Exericsable, ending balance \| $ / shares	5.901
Vested and expected to vest \| $ / shares	$ 8.180

10. Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Options outstanding	1,484,000	419,000
Compensation cost on unvested options not yet recognized	$ 5,500
Compensation cost unrecognized weighted average period	3 years 8 months 26 days
Aggregate intrinsic value of options outstanding	$ 1,100
Aggregate intrinsic value of options exercisable	$ 1,100
1998 Plan
Options outstanding	3,862
2000 Plan
Options outstanding	20,840
2004 Plan
Options outstanding	25,075
2006 Plan
Options outstanding	675,500
2013 Plan
Options outstanding	759,163

11. Convertible Preferred Stock (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Authorized shares	172,200,000	172,200,000
Issued shares	5,600,000	5,547,000
Carrying value	$ 105,801	$ 105,367
Series A Preferred Stock [Member]
Authorized shares	4,900,000
Issued shares	160,000
Carrying value	$ 7,105
Conversion rate	1:3:1731
Series C Preferred Stock [Member]
Authorized shares	17,500,000
Issued shares	582,000
Carrying value	$ 21,802
Conversion rate	1:2:3107
Series D Preferred Stock [Member]
Authorized shares	11,800,000
Issued shares	380,000
Carrying value	$ 14,184
Conversion rate	1:2:5360
Series E Preferred Stock [Member]
Authorized shares	11,000,000
Issued shares	345,000
Carrying value	$ 28,055
Conversion rate	1:3:6186
Series F Preferred Stock [Member]
Authorized shares	82,000,000
Issued shares	2,702,000
Carrying value	$ 19,662
Conversion rate	1:1:2000
Series G Preferred Stock [Member]
Authorized shares	45,000,000
Issued shares	1,431,000
Carrying value	$ 14,993
Conversion rate	1:1:0000

11. Stockholders Equity (Details Narrative) $ in Thousands	9 Months Ended
11. Stockholders Equity (Details Narrative) $ in Thousands	Sep. 30, 2013 USD ($) shares
Stockholders Equity Details Narrative
Warrant expense	$ 42
Deferred compensation expense	$ 31
Warrants exercised for common stock, shares \| shares	74,219

12. Segment and Geographic Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2013	Dec. 31, 2012
Revenues	$ 20,766	$ 16,416	$ 54,680	$ 44,559
Long-lived assets	28,910		28,910			$ 26,307
UNITED STATES
Revenues	3,742	2,685	8,364	8,652
Long-lived assets	9,105		9,105		$ 9,009
TAIWAN
Revenues	7,576	3,757	22,616	9,760
Long-lived assets	4,860		4,860		3,738
CHINA
Revenues	9,448	$ 9,974	23,700	$ 26,147
Long-lived assets	$ 14,945		$ 14,945		$ 13,560