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Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
Document and Entity Information - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 07, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	Applied Optoelectronics, Inc.
Entity Central Index Key	0001158114
Document Type	10-K
Document Period End Date	Dec. 31, 2015
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 Public Float			$ 250,600
Entity Common Stock, Shares Outstanding		17,055,597
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2015

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$ 28,074	$ 32,175
Restricted cash	4,719	509
Short-term investments	7,886	8,189
Accounts receivable - trade, net of allowance of $51 and $43, respectively	38,775	31,589
Inventories	66,238	33,780
Notes receivable	0	980
Prepaid expenses and other current assets	8,236	6,017
Total current assets	153,928	113,239
Property, plant and equipment, net of accumulated depreciation of $37,980 and $32,412, respectively	109,699	64,808
Land use rights, net	854	930
Intangible assets, net	3,900	3,833
Other assets, net	5,094	860
TOTAL ASSETS	273,475	183,670
Current liabilities
Current portion of notes payable and long-term debt	30,908	9,591
Accounts payable	28,668	30,984
Bank acceptance payable	2,998	1,271
Accrued liabilities	11,506	6,755
Total current liabilities	74,080	48,601
Notes payable and long-term debt, less current portion	33,997	19,057
Other long-term liabilities	0	1,000
TOTAL LIABILITIES	108,077	68,658
Stockholders' equity (deficit):
Preferred Stock; 5,000 shares authorized at $0.001 par value; no shares issued and outstanding at December 31, 2015 or 2014, respectively	0	0
Common Stock; 45,000 shares authorized at $0.001 par value; 16,839 and 14,824 shares issued and outstanding at December 31, 2015 and 2014, respectively	17	15
Additional paid-in capital	233,336	192,112
Accumulated other comprehensive gain	292	1,925
Accumulated deficit	(68,247)	(79,040)
TOTAL STOCKHOLDERS' EQUITY	165,398	115,012
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 273,475	$ 183,670

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Accounts receivable allowance	$ 51	$ 43
Accumulated depreciation	$ 37,970	$ 32,412
Preferred Stock par value	$ 0.001	$ 0.001
Preferred Stock shares authorized	5,000,000	5,000,000
Preferred Stock shares issued	0	0
Preferred Stock shares outstanding	0	0
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	45,000,000	45,000,000
Common stock shares issued	16,839,000	14,824,000
Common stock shares outstanding	16,839,000	14,824,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Revenue, net	$ 189,903	$ 130,449	$ 78,424
Cost of goods sold	129,450	86,203	55,396
Gross profit	60,453	44,246	23,028
Operating expenses
Research and development	20,852	15,970	8,512
Sales and marketing	6,381	6,043	4,191
General and administrative	19,771	17,095	10,632
Total operating expenses	47,004	39,108	23,335
Income (loss) from operations	13,449	5,138	(307)
Other income (expense)
Interest income	328	369	104
Interest expense	(1,018)	(326)	(1,125)
Other expense, net	(1,591)	(699)	(78)
Total other expense	(2,281)	(656)	(1,099)
Income (loss) before income taxes	11,168	4,482	(1,406)
Income taxes	(375)	(199)	0
Net income (loss)	$ 10,793	$ 4,283	$ (1,406)
Net income (loss) per share - Basic	$ 0.69	$ 0.30	$ (.14)
Net income (loss) per share - Diluted	$ .65	$ 0.28	$ (.14)
Weighted average shares used to compute net income (loss) per share: basic	15,626,753	14,307,477	9,964,955
Weighted average shares used to compute net income (loss) per share: Diluted	16,532,850	15,186,961	9,964,955

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 10,793	$ 4,283	$ (1,406)
(Loss) gain on foreign currency translation adjustment, net of tax	(1,633)	(439)	348
Comprehensive income (loss)	$ 9,160	$ 3,844	$ (1,058)

- Definition

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

+ References + Details

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated other comprehensive gain [Member]	Accumulated deficit [Member]	Total
Beginning balance, shares at Dec. 31, 2012	5,547,000	266,000
Beginning balance, value at Dec. 31, 2012	$ 0	$ 1,074	$ 4,468	$ 2,016	$ (81,917)	$ 31,008
Public offering of common stock, net, shares		3,600,000
Public offering of common stock, net, value		$ 3	31,445			31,448
Convert preferred stock common stock upon public offering, shares	(5,601,000)	8,739,000
Convert preferred stock common stock upon public offering, value	$ (105,801)	$ (1,211)	107,012
Stock options exercised, shares		29,000
Stock options exercised, value		$ 87	86			173
Warrants exercised, shares issued	54,000	10,000
Warrants exercised, value	$ 434	$ 60				494
Stock based compensation			1,012			1,012
Net income (loss)					(1,406)	(1,406)
Foreign currency translation adjustment				348		348
Ending balance, shares at Dec. 31, 2013	0	12,644,000
Ending balance, value at Dec. 31, 2013	$ 0	$ 13	144,023	2,364	(83,323)	63,077
Public offering of common stock, net, shares		2,025,000
Public offering of common stock, net, value		$ 2	45,679			45,681
Issuance of shares under equity plans, shares		33,000
Stock options exercised, shares		103,000
Stock options exercised, value			365			365
Warrants exercised, shares issued		19,000
Stock based compensation			2,045			2,045
Net income (loss)					4,283	4,283
Foreign currency translation adjustment				(439)		(439)
Ending balance, shares at Dec. 31, 2014	0	14,824,000
Ending balance, value at Dec. 31, 2014	$ 0	$ 15	192,112	1,925	(79,040)	115,012
Public offering of common stock, net, shares		1,857,000
Public offering of common stock, net, value		$ 2	38,646			38,648
Issuance of shares under equity plans, shares		77,000
Stock options exercised, shares		81,000
Stock options exercised, value			452			452
Stock based compensation			2,120			2,120
Net income (loss)					10,793	10,793
Foreign currency translation adjustment				(1,633)		(1,633)
Other			6			6
Ending balance, shares at Dec. 31, 2015	0	16,839,000
Ending balance, value at Dec. 31, 2015	$ 0	$ 17	$ 233,336	$ 292	$ (68,247)	$ 165,398

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating activities:
Net income (loss)	$ 10,793	$ 4,283	$ (1,406)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for obsolete inventory	2,832	941	492
Depreciation and amortization	9,424	6,169	3,407
Loss on disposal of assets	78	12	1
Share-based compensation and warrant expense	2,120	2,061	1,069
Unrealized foreign exchange loss	2,462	1,288	362
Changes in operating assets and liabilities:
Accounts receivable	(7,531)	(9,703)	(8,457)
Notes receivable	977	(977)	1,036
Inventory	(37,502)	(16,105)	(7,520)
Other current assets	(2,624)	(745)	(4,622)
Accounts payable	(1,258)	18,947	8,079
Accrued liabilities	5,017	2,359	1,369
Net cash provided by (used in) operating activities	(15,212)	8,530	(6,190)
Investing activities:
Purchase of short-term investments	(175)	(246)	(7,970)
Purchase of property, plant and equipment	(57,080)	(41,129)	(9,600)
Proceeds from disposal of equipment	351	47	0
Deposits and deferred charges	(4,238)	(720)	(43)
Purchase of intangible assets	(478)	(3,340)	(123)
Net cash used in investing activities	(61,620)	(45,388)	(17,736)
Financing activities:
Proceeds from issuance of notes payable and long-term debt	16,944	8,150	2,851
Principal payments of long-term debt and notes payable	(2,413)	(8,076)	(285)
Proceeds from line of credit borrowings	144,386	53,658	23,192
Repayments of line of credit borrowings	(121,386)	(50,733)	(23,008)
Proceeds from bank acceptance payable	8,257	5,925	6,778
Repayments of bank acceptance payable	(6,361)	(6,986)	(6,026)
Repayments of note payable	(1,000)	(1,000)	0
Decrease (increase) in restricted cash	(4,419)	266	(249)
Exercise of stock options	452	365	173
Exercise of warrants	0	0	494
Proceeds from common stock offering, net	38,648	45,681	31,448
Other	6	0	0
Net cash provided by financing activities	73,114	47,250	35,368
Effect of exchange rate changes on cash	(383)	(223)	(159)
Net increase (decrease) in cash	(4,101)	10,169	11,283
Cash and cash equivalents at beginning of year	32,175	22,006	10,723
Cash and cash equivalents at end of year	28,074	32,175	22,006
Supplemental disclosure of cash flow information:
Interest	1,070	329	1,133
Income taxes	650	148	1
Non-cash investing and financing activities:
Purchase of intangible assets with notes payable	$ 0	$ 3,000	$ 0

A. ORGANIZATION AND OPERATIONS

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND OPERATIONS

Applied Optoelectronics, Inc. (“AOI” or the “Company”) was incorporated in the State of Texas on February 28, 1997. In March 2013, the Company converted into a Delaware corporation. The Company is a leading, vertically integrated provider of fiber-optic networking products, primarily for three networking end-markets: internet data centers, cable television, and fiber-to-the-home. The Company designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies and modules to complete turn-key equipment.

Prime World International Holdings, Ltd. (“Prime World”) is a wholly-owned subsidiary of the Company incorporated in the British Virgin Islands on January 13, 2006. Prime World is the parent company of Global Technology, Inc. (“Global”). Global was established in June 2002 in the People’s Republic of China (“PRC”) and was acquired by Prime World on March 30, 2006. The Company also operates a division, AOI—Taiwan, which is qualified to do business in Taiwan and primarily manufactures transceivers and performs research and development activities.

B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1.	Basis of Presentation

The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries and are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All intercompany balances and transactions have been eliminated in consolidation.

2.	Reclassifications

Certain amounts in the prior year’s financial statements have been reclassified to conform to the current year presentation. This reclassification includes a $0.2 million reclass from accrued liabilities to accounts payable in 2014.

3.	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 relate to, among other things, allowance for doubtful accounts, inventory reserve, share-based compensation expense, estimated useful lives of property and equipment, and taxes.

4.	Foreign Currency Translation

The functional currency for our foreign operations is the local currency. The assets and liabilities of these operations are translated at the rate of exchange in effect on the balance sheet date and sales and expenses are translated at monthly average rates. The resulting gains or losses from translation are included in a separate component of other comprehensive income. Gains and losses resulting from re-measuring monetary asset and liability accounts that are denominated in a currency other than a subsidiary’s functional currency are included in net foreign exchange loss and are included in net income except for intercompany long-term investment nature. The translation gain or losses from long-term investment nature of intercompany balances are treated as translation adjustments and included in comprehensive income (loss).

5.	Fair Value

The carrying value of cash, cash equivalents and short-term investments, accounts receivable, accounts payable, and note receivable approximate their historical fair values due to their short-term maturities. The carrying value of the debt approximates its fair value due to the short-term nature of the debt since it renews frequently at current interest rates. Management believes that the interest rates in effect at each year end represent the current market rates for similar borrowings.

The fair value measurement standard defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard characterizes inputs used in determining fair value according to a hierarchy that prioritized inputs based on the degree to which they are observable. The three levels of the fair value hierarchy are as follows:

Level 1—Inputs represent quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3—Inputs that are not observable from objective sources, such as management’s internally developed assumptions used in pricing an asset or liability.

Assets and liabilities that are required to be fair valued on a recurring basis include money market funds, marketable securities, equity instruments and contingent consideration.

Money market funds are valued with Level 1 inputs, using quoted market prices, and are included in cash and cash equivalents on the Company’s consolidated balance sheets.

6.	Cash and Cash Equivalents

The Company considers all highly liquid securities with an original maturity of ninety days or less from the date of purchase to be cash equivalents. Cash in foreign accounts was approximately $8.9 million and $4.6 million at December 31, 2015 and 2014, respectively.

The Company maintains cash and cash equivalents at U.S. financial institutions for which the combined account balances in individual institutions may exceed Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. As of December 31, 2015, approximately $23.3 million of U.S. deposits were not covered by FDIC insurance. The Company has not experienced any losses and believes it is not exposed to any significant risk with such accounts.

7.	Restricted Cash/Compensating Balances

The Company is required to maintain a compensation deposit equal to 30% of its bank acceptance notes to vendors with a China bank. The Company’s Taiwan subsidiary also uses time deposits for customs guarantees. As of December 31, 2015 and 2014, the amount of restricted cash was $4.7 million and $0.5 million, respectively.

8.	Short-Term Investments

The Company invests its excess cash in bank certificates of deposit. As of December 31, 2015, the Company invested $7.9 million in certificates of deposit in RMB currencies with Taiwan banks. The maturity dates range from 6 months to 12 months.

The Company arranged a revolving line of credit agreement with the same Taiwan bank by pledging 100% of its certificates of deposit. As of December 31, 2015, the pledged certificate of deposit for such arrangement amount is $7.9 million.

9.	Accounts Receivable/Allowance for Doubtful Accounts

The Company carries its accounts receivable at the net amount that it estimates to be collectible. An allowance for uncollectable accounts is maintained through a charge against operations. The allowance is determined by management review of outstanding amounts per customer, historical payments and the aging of accounts.

10.	Notes Receivable

The Company carries its bank acceptance receivables at face value or discounted value if they are not interest bearing. The maturity date of the receivables are all within one year of the original issuance date and are carried at face value.

11.	Concentration of Credit Risk and Significant Customers

Financial instruments which potentially subject the Company to concentrations of credit risk include cash, cash equivalents and accounts receivable. The Company places all cash and cash equivalents with high-credit quality financial institutions.

The Company performs ongoing credit valuations of its customers’ financial condition whenever deemed necessary and generally does not require deposits or collateral to support customer receivables. The historical amount of losses on uncollectible accounts has been within the Company’s estimates. The Company generates much of its revenue from a limited number of customers. In 2015, 2014 and 2013, its top five customers represented 81.8%, 72.0% and 59.1% of its revenue, respectively. In 2015, Amazon, Microsoft and Cisco represented 52.5%, 11.6% and 10.4% of its revenue, respectively. The five largest receivable balances for customers represented an aggregate of 80%, and 70% of total accounts receivable at December 31, 2015 and 2014, respectively. As of December 31, 2015, Amazon and Wesco represented 51.4% and 14.4% of total accounts receivable, respectively.

12.	Inventories

Inventories are stated at the lower of cost (average-cost method) or market. Work in process and finished goods includes materials, labor and allocated overhead. The Company assesses the valuation of its inventory on a periodic basis and provides write-offs for the value of estimated excess and obsolete inventory based on estimates of future demand.

13.	Property, Plant and Equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. The Company calculates depreciation using the straight-line method over the following estimated useful lives:

		Useful lives

Buildings		20 - 40 years

Land improvements		10 years

Machinery and equipment		3 - 20 years

Furniture and fixtures		1 - 8 years

Computer equipment and software		3 - 7 years

Leasehold improvements		The shorter of the life of the applicable lease or the useful life of the improvement

Transportation equipment		5 years

Major improvements are capitalized and expenditures for maintenance and repairs are expensed as incurred. Construction in progress represents property, plant and equipment under construction or being installed. Costs include original cost, installation, construction and other direct costs which include interest on borrowings used to finance the asset. Construction in progress is transferred to the appropriate fixed asset account and depreciation commences when the asset has been substantially completed and placed in service.

Land use rights allow the Company rights for 50 years to certain land in Ningbo, China on which the Company built a facility that included office space, manufacturing operations and employee dormitories. The land use rights are recorded at cost and are amortized on the straight-line basis over the useful life of the related contract. The land use rights expire on October 7, 2054.

14.	Intangible Assets

Intangible assets consist of intellectual property that is stated at cost less accumulated amortization. As of December 31, 2015, the Company had 178 total patents issued. The costs incurred to obtain such patents have been capitalized and are being amortized over an estimated life of 20 years. The Company periodically evaluates its intangible assets to determine whether events or changes in circumstances indicate that a patent or trademark may not be applicable to the Company’s current products or is no longer in use. If such a determination is made, the intangible asset is impaired and the remaining value of the patent or trademark will be expensed at that time.

15.	Impairment of Long-Lived Assets

The Company accounts for impairment of long-lived assets in accordance with Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment, (“ASC 360”). Long-lived assets consist primarily of property, plant and equipment. In accordance with ASC 360, the Company periodically evaluates long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When triggering event indicators are present, the Company obtains appraisals on an asset by asset basis, and will recognize an impairment loss when the sum of the appraised values is less than the carrying amounts of such assets. The appraised values, based on reasonable and supportable assumptions and projections, require subjective judgments. Depending on the assumptions and estimates used, the appraised values projected in the evaluation of long-lived assets can vary within a range of outcomes. The appraisals consider the likelihood of possible outcomes in determining the best estimate for the value of the assets.

The measurement for such an impairment loss is then based on the fair value of the asset as determined by the appraisals.

16.	Comprehensive Income (Loss)

ASC 220, Comprehensive Income, (“ASC 220”) establishes rules for reporting and display of comprehensive income and its components. ASC 220 requires that unrealized gains and losses on the Company’s foreign currency translation adjustments be included in comprehensive income.

17.	Share-based Compensation

The Company accounts for share-based compensation in accordance with the provisions of ASC 718, Compensation—Stock Compensation. Share-based compensation expense is recognized based on the estimated grant date fair value, net of an estimated forfeiture rate, in order to recognize compensation cost for those shares expected to vest. Compensation cost is recognized on a straight-line basis over the vesting period of the options.

18.	Revenue Recognition

The Company derives revenue from the manufacture and sale of fiber optic networking products. Revenue recognition follows the criteria of ASC 605, Revenue Recognition. Specifically, the Company recognizes revenue when persuasive evidence exists of an arrangement with a customer, usually in the form of a customer purchase order; performance obligations have been satisfied; title and risk of loss have transferred to the customer; the price is fixed or determinable; and collectability is reasonably assured. The Company may offer units (samples) to current and potential customers at no charge for evaluation or qualification purposes.

19.	Product Warranty

The Company generally offers a one-year limited warranty for its products but it can extend for longer periods of three to five years for certain products sold to certain customers. The Company estimates the costs that may be incurred under its basic limited warranty and records a liability for the amount of such costs at the time when product defective occurs. Factors that affect the Company’s warranty liability include the historical and anticipated rates of warranty claims and cost to repair. While we believe that our warranty accrual is adequate, our actual warranty costs may exceed the accrual, cost of sales will increase in the future. As of December 31, 2015 and 2014, the amount of accrued warranty was $412,000 and $247,000, respectively.

20.	Advertising Costs

Advertising costs are charged to operations as incurred and amounted to approximately $104,000, $100,000 and $121,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

21.	Research and Development

Research and development costs are charged to operations as incurred. The Company receives reimbursement for certain development costs, which are capitalized when incurred, up to the reimbursable amount.

22.	Income Taxes

The Company accounts for income taxes in accordance with the provisions of ASC 740, Income Taxes. The liability method is used to account for deferred income taxes. Under the liability method, deferred tax assets and liabilities are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The ability to realize deferred tax assets is evaluated annually and a valuation allowance is provided if it is unlikely that the deferred tax assets will not give rise to future benefits in our tax returns.

The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, it recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statement of operations. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheet.

23.	New Accounting Standards

On February 25, 2016, the FASB released ASU 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 new guidance will require lessees to recognize most leases on the balance sheet for capital and operating leases. The new 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.

The FASB has issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance is intended to improve the recognition and measurement of financial instruments. The ASU affects public and private companies, not-for-profit organizations, and employee benefit plans that hold financial assets or owe financial liabilities. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For private companies, not-for-profit organizations, and employee benefit plans, the new guidance becomes effective for fiscal years beginning after December 15, 2018, and for interim periods within fiscal years beginning after December 15, 2019. The Company is evaluating the impact of the accounting standard on its financial statements.

The FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes during November 2015, which simplifies the presentation of deferred income taxes. This ASU provides presentation requirements to classify deferred tax assets and liabilities as noncurrent in a statement of financial position. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted for any interim and annual financial statements that have not yet been issued. The ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company early adopted this standard effective December 31, 2015 on a retrospective basis which resulted in a reclassification of our net current deferred tax asset to the net non-current deferred tax asset as of December 31, 2015. The adoption of this ASU had no impact on the balance sheet or income statement as the Company had a full valuation allowance.

The FASB has issued Accounting Standards Update (ASU) No. 2015-11, Inventory in July 2015 to require entity to measure inventory at the lower of cost or market. Market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The Company adopted this ASU which had no material impact on the financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires the presentation of debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company is evaluating the impact of the accounting standard on its financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. Public business entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is evaluating the impact of the accounting standard on its financial statements.

24.	Reverse Stock Split

In May 1, 2013, the Company’s board of directors approved, and holders of the requisite number of outstanding shares of our capital stock approved on May 21, 2013, an amendment to our certificate of incorporation to effect a reverse stock split with respect to our securities. Based on the prior board and stockholder approvals, on August 16, 2013 the Company’s board of directors determined that the ratio for the reverse stock split would be 30-to-one. The reverse stock split was effected on August 20, 2013, the date that the amendment to our certificate of incorporation was filed with the Delaware Secretary of State. The reverse stock split is reflected in the accompanying consolidated financial statements and related notes on a retroactive basis for all periods presented.

C. EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

EARNINGS PER SHARE

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

The following table presents the calculation of basic and diluted EPS:

	Year ended December 31,
	2015		2014		2013
	(in thousands, except per share data)
Numerator:
Net income (loss)	$	10,793	$	4,283	$	(1,406	)
Denominator:
Weighted average shares used to
compute net income (loss) per share
Basic		15,627		14,307		9,965
Effective of dilutive options, restricted stock units and warrants		906		880		–
Diluted		16,533		15,187		9,965
Net income (loss) per share
Basic	$	0.69	$	0.30	$	(0.14	)
Diluted	$	0.65	$	0.28	$	(0.14	)

The following potentially dilutive securities were excluded from the computation of diluted net loss per share as their effect would have been antidilutive:

As of December 31,

2015

2014

2013

(in thousands)

Employee stock options

–

595

Restricted stock units

–

Preferred stock warrants

–

661

D. INVENTORIES

12 Months Ended

Dec. 31, 2015

Inventory Disclosure [Abstract]

INVENTORIES

At December 31, 2015 and 2014, inventories consisted of the following:

	2015		2014
	(in thousands)
Raw materials	$	22,240	$	16,243
Work in process and sub-assemblies		30,766		13,379
Finished goods		13,232		4,158
	$	66,238	$	33,780

For the years ended December 31, 2015, 2014 and 2013, the lower of cost or market adjustment expensed for inventory was $2.8 million, $0.9 million and $0.5 million, respectively.

E. PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

At December 31, 2014 and 2013, property, plant and equipment consisted of the following:

	2015			2014
	(in thousands)
Land improvements	$	863		$	103
Building and improvements		27,255			16,196
Machinery and equipment		88,882			61,529
Furniture and fixtures		2,422			1,938
Computer equipment and software		5,615			4,712
Transportation equipment		294			270
		125,331			84,748
Less accumulated depreciation and amortization		(37,970	)		(32,412	)
		87,361			52,336
Construction in progress		21,237			11,371
Land		1,101			1,101
Property, plant and equipment, net	$	109,699		$	64,808

For the years ended December 31, 2015, 2014 and 2013, depreciation expense of property, plant and equipment was $9.0 million $5.8 million and $3.3 million, respectively.

During the year ended December 31, 2015, there was $0.1 million of capitalized interest recorded in construction in progress.

F. INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

At December 31, 2015 and 2014, intangible assets consisted of the following:

	2015
	Gross Amount		Accumulated amortization			Intangible assets, net
	(in thousands)
Patents	$	5,446	$	(1,551	)	$	3,895
Trademarks		14		(9	)		5
Total intangible assets	$	5,460	$	(1,560	)	$	3,900

	2014
	Gross Amount		Accumulated amortization			Intangible assets, net
	(in thousands)
Patents	$	4,968	$	(1,141	)	$	3,827
Trademarks		14		(8	)		6
Total intangible assets	$	4,982	$	(1,149	)	$	3,833

For the years ended December 31, 2015, 2014 and 2013, amortization expense for intangible assets, included in general and administrative expenses on the income statement, was $411,000 $356,000 and $68,000, respectively. The remaining weighted average amortization period for intangible assets is approximately 9.5 years.

In 2014, the Company acquired an intangible asset from an unrelated company in the form of a license to various patents related to transceiver product technology. The weighted-average amortization period for the license is 10 years.

At December 31, 2015, approximate amortization expense for intangible assets was as follows (in thousands):

2016	$	424
2017		424
2018		424
2019		424
2020		424
thereafter		1,780
	$	3,900

G. FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

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 as of December 31, 2015 (in thousands):

	Quoted prices in active markets for identical assets (Level 1)		Significant other observable remaining inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets:
Cash and cash equivalents	$	28,074	$	–	$	–	$	28,074
Restricted cash		4,719		–		–		4,719
Short term investments		7,886		–		–		7,886
Total assets	$	40,679	$	–	$	–	$	40,679
Liabilities:
Bank acceptance payable		–	$	2,998		–	$	2,998
Total liabilities	$	–	$	2,998	$	–	$	2,998

The following table presents a summary of the Company’s financial instruments measured at fair value on a recurring basis as of December 31, 2014 (in thousands):

	Quoted prices in active markets for identical assets (Level 1)		Significant other observable remaining inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets:
Cash and cash equivalents	$	32,175	$	–	$	–	$	32,175
Restricted cash		509		–		–		509
Short term investments		8,189		980		–		9,169
Total assets	$	40,873	$	980	$	–	$	41,853
Liabilities:
Bank acceptance payable		–	$	1,271		–	$	1,271
Total liabilities	$	–	$	1,271	$	–	$	1,271

- 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

H. NOTES PAYABLE AND LONG-TERM DEBT

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

NOTES PAYABLE AND LONG-TERM DEBT

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

	December 31,
	2015			2014

Revolving line of credit with a U.S. bank up to $25,000 with interest at LIBOR plus 2.75% or 3%, maturing June 30, 2018	$	23,000		$	15,000
Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2.75%, maturing July 31, 2019		4,150			5,000
Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2.75%, maturing June 30, 2020		2,000			–
Construction loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2.75%, maturing January 26, 2022		8,588			–
Revolving line of credit with a Taiwan bank up to $3,000 with interest based on the bank's corporate interest rate index+ 1.5%, or 2.40% maturing on November 30, 2016		2,588			–
Revolving line of credit with a Taiwan bank up to $7,000 with interest at Taiwan deposit index plus 0.41% or LIBOR plus 1.7% maturing on February 6, 2016		4,475			3,605
Revolving line of credit with a Taiwan bank up to $4,000 with interest at Taiwan Time Deposit Interest Rate Index plus 1% or LIBOR plus 1% maturing on December 11, 2015		3,407			3,536
Revolving line of credit with the Taiwan branch of a China bank up to $10,000 with interest at LIBOR plus 1.5% or Taiwan Interbank Offered Rate plus 0.9% , maturing April 1, 2016		9,418			–
Note payable to a finance company due in monthly installments with 4.5% interest, maturing May 27, 2018		2,946			443
Note payable to a finance company due in monthly installments with 4.5% interest, maturing June 30, 2018		1,905			–
Revolving line of credit with a China bank up to $12,320 with interest of 3.15% for 3-month term which mature between January to March 2016		2,428			1,064

Total		64,905			28,648
Less current portion		(30,908	)		(9,591	)
Non-current portion	$	33,997		$	19,057

Bank Acceptance Notes Payable
Bank acceptance notes issued to vendors with a zero percent interest rate, a 30% guarantee deposit of $899, and maturity dates ranging from January 2016 to June 2016			2,998				1,271

The current portion of long-term debt is the amount payable within one year of the balance sheet date of December 31, 2015.

Maturities of notes payable and long-term debt are as follows for the future years ending December 31(in thousands):

2016	$	30,908
2017		3,950
2018		20,877
2019		1,598
2020 thereafter		7,572
Total outstanding	$	64,905

On June 30, 2015, the Company entered into a credit agreement with East West Bank and Comerica Bank, a second lien deed of trust, multiple security agreements and promissory notes evidencing two credit facilities and a term loan. The credit agreement included a $25.0 million revolving line of credit which matures on June 30, 2018 and a $10 million term loan maturing on June 30, 2020. The interest rate on these loans is the LIBOR Borrowing Rate plus 2.75% or 3.0%. As of December 31, 2015 and 2014, $23.0 million and $15 million were outstanding under the revolving line of credit. As of December 31, 2015, $2 million was outstanding under the term loans.

The Company also has with East West Bank a term loan of $5 million with monthly payments of principal and interest that matures on July 31, 2019. As of December 31, 2015 and 2014, the outstanding balances were $4.2 million and $5 million respectively.

On January 26, 2015, the Company entered into a construction loan agreement with East West Bank for up to $22.0 million dollars to finance the construction of its campus expansion plan in Sugar Land, Texas. Upon signing the agreement, the Company deposited $11.0 million into a restricted bank account for owner’s contribution of construction costs. The loan will have a fifteen month draw down period with monthly interest payments commencing on February 26, 2015 and ending April 26, 2016. Thereafter, the entire outstanding principal balance shall be converted to a sixty-nine month term loan with principal and interest payments due monthly amortized over three hundred months. The first principal and interest payment is due on May 26, 2016 and will continue the same day of each month thereafter. The final principal and interest payment is due on January 26, 2022 and will include all unpaid principal and all accrued and unpaid interest. The Company may pay without penalty all or a portion of the amount owed earlier than due. Under the loan agreement, the loan bears interest, at an annual rate based on the one-month LIBOR Borrowing Rate plus 2.75%. As of December 31, 2015, there was $8.6 million outstanding under this loan agreement and there was zero balance in the restricted bank account.

The loan and security agreements with East West Bank and Comerica Bank require the Company to maintain certain financial covenants, including a minimum current ratio and minimum annual EBITDA. As of December 31, 2015, the Company was in compliance with all covenants contained in these agreements.

On January 6, 2015, the Company’s Taiwan branch entered into a credit facility with CTBC Bank Co. Ltd. in Taipei, Taiwan for 90.0 million New Taiwan dollars, or approximately $3.0 million, one year revolving credit facility. Its obligations under the credit facility are unsecured. Borrowings under the credit facility bear interest at a rate based on the Bank’s corporate interest rate index plus 1.5%, adjusted monthly. As of the execution of the credit facility the Bank’s corporate interest rate index is 0.91%. As of December 31, 2015, $2.6 million was outstanding under this credit facility.

On March 9, 2015, the Company’s Taiwan branch increased its $4.0 million credit facility with E. Sun Commercial Bank to $7.0 million. Its obligations under the credit facility are secured by our $4.0 million cash deposit in a one-year CD with such bank and mature on May 27, 2016. The $4.0 million revolving line of credit with CD security bears interest at a rate equal to Taiwan Deposit Index Rate plus 0.41% for New Taiwan dollar borrowings and a 0.1% service fee for U.S. dollar borrowings. The additional $3.0 million credit facility bears interest at a rate equal to LIBOR plus 1.7% divided by 0.946 and a 0.3% service fee for U.S. dollar borrowings. As of December 31, 2015 and 2014, $4.5 million and $3.6 million were outstanding under this credit facility.

On March 25, 2015, the Company’s Taiwan branch renewed its $4.0 million, one year revolving credit facility agreement, originally dated December 31, 2013, with Mega International Commercial Bank. Obligations under the credit facility are secured by a $4.0 million cash deposit in a CD with such bank. Borrowings under this credit facility bear interest at a rate not less than the LIBOR borrowing rate plus 1.0%, divided by 0.946 for U.S. and other currency borrowings, New Taiwan dollar borrowings bear interest at a rate equal to the Bank’s base lending rate plus 0.76%. The current effective interest rate is 1.77%. As of December 31, 2015 and 2014, $3.4 million and $3.5 million were outstanding under this credit facility.

On April 1, 2015, the Company’s Taiwan branch entered into a comprehensive credit line agreement with the Taipei branch of China Construction Bank, providing a revolving credit line of $10 million, maturing on April 1, 2016. Borrowings under the credit line agreement are secured by a standby letter of credit issued by the China branch of the bank under existing agreements between the bank and our China subsidiary. Borrowings under the credit line agreement reduce the amounts available under the existing credit line between the bank and the Company’s China subsidiary and cannot exceed 97% of the amount of the standby letter of credit issued by the China branch of the bank. Borrowings under the credit line agreement bear interest at a rate not less than LIBOR plus 1.5% for US dollar borrowings and at a rate of not less than Taiwan Interbank Offered Rate plus 0.9% for New Taiwan dollar borrowings. As of December 31, 2015, 9.4 million was outstanding under this credit facility.

On June 30, 2015, the Company’s Taiwan branch entered into a purchase and sale contract and a finance lease agreement together with the sale contract with Chailease Finance Co, Ltd. in connection with certain equipment, structured as a sale lease-back transaction. Pursuant to the sale contract, the Company sold certain equipment to Chailease and simultaneously leased the equipment back from Chailease pursuant to the finance lease agreement. The finance lease agreement has a three year term, with monthly lease payments, maturing on May 27 and June 30, 2018 respectively. The title to the equipment will be transferred to the Company upon the expiration of the finance lease agreement. As of December 31, 2015 and 2014, $4.8 million and $0.4 million were outstanding under this finance lease agreement.

As of December 31, 2015, the Company’s China subsidiary had credit facilities with China Construction Bank totaling $22.3 million, which can be drawn in U.S. currency, RMB currency, issuing bank acceptance notes to vendors with different interest rates or issuing standby letters of credit. As of December 31, 2015, the Company’s China subsidiary used $10 million of its credit facility and issued standby letters of credit as collateral for the Company’s Taiwan branch line of credit with China Construction Bank. As of December 31, 2015, the Company had a U.S. currency based loan of $2.4 million outstanding under various notes with three-month terms, maturing from January to March 2016 with effective interest rate of 3.15%. As of December 31, 2014, we had $1.1 million outstanding various notes with three-month terms. The outstanding balances of bank acceptance notes issued to vendors were $3.0 million and $1.3 million with zero interest rate as of December 31, 2015 and 2014, respectively.

As of December 31, 2015 and 2014, the Company had $37.7 million and $14.3 million of unused borrowing capacity, respectively.

As of December 31, 2015 and 2014, there was $12.6 million and $8.7 million of restricted cash, investments or security deposit associated mainly with the loan facilities, respectively.

I. ACCRUED LIABILITIES

12 Months Ended

Dec. 31, 2015

Payables and Accruals [Abstract]

ACCRUED LIABILITIES

Accrued liabilities consisted of the following as of December 31:

	2015		2014
	(in thousands)
Accrued payroll	$	6,757	$	3,662
Accrued Rent		792		–
Accrued employee benefits		1,379		808
Accrued state and local taxes		372		330
Advance payments		1,258		528
Accrued product warranty		412		247
Accrued other		536		1,180
	$	11,506	$	6,755

J. OTHER INCOME AND EXPENSE

12 Months Ended

Dec. 31, 2015

Other income (expense)

OTHER INCOME AND EXPENSE

Other income and expense consisted of the following as of December 31:

	2015			2014			2013
	(in thousands)
Unrealized foreign exchange loss		(2,568	)		(1,299	)		(342	)
Realized foreign exchange gain (loss)		721			297			(70	)
Government subsidy income		217			271			322
Other non-operating gain		117			44			4
Gain (loss) on disposal of assets		(78	)		(12	)		8
	$	(1,591	)	$	(699	)	$	(78	)

K. INCOME TAXES

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

The sources of our income (loss) from operations before income taxes were as follows:

	Year ended December 31,
	2015			2014		2013
	(in thousands)
Domestic	$	14,062		$	1,226	$	(684	)
Foreign		(2,894	)		3,256		(722	)
Total income (loss) before income taxes	$	11,168		$	4,482	$	(1,406	)

The provision for income tax expense for the years ended December 31, is as follows:

	2015		2014		2013
Current:	(in thousands)
Federal	$	168	$	193	$	–
State		207		6		–
Foreign		–		–		–
Total	$	375	$	199	$	–
Deferred:
Federal	$	–	$	–	$	–
State		–		–		–
Foreign		–		–		–
Total	$	–	$	–	$	–

Income tax expense	$	375	$	199	$	–

Deferred income tax assets and liabilities result principally from net operating losses, different methods of recognizing depreciation, reserve for doubtful accounts, inventory reserves for obsolescence and accrued vacation, together with timing differences between book and tax reporting. At December 31, the net deferred tax assets and liabilities are comprised of the following approximate amounts:

	2015			2014
	(in thousands)
NOL carryforward	$	14,318		$	12,266
Inventory reserves		1,616			676
AMT credit		347			224
Unrealized gains and losses		1,549			470
Stock compensation		1,084			550
Fixed assets and intangibles		(4,432	)		(1,537	)
Other		244			25
		14,726			12,674
Less valuation allowance		(14,726	)		(12,674	)
Deferred tax assets, net	$	–		$	–

The valuation allowance was established to reduce the deferred tax asset for the amount that will likely not be realized. This reduction is primarily necessary due to the uncertainty of the Company’s ability to utilize all of the net operating loss carry forwards. The valuation allowance increased by $2.1 million in 2015 and decreased by approximately $1.5 million in 2014. The increase in 2015 was primarily the result of current year changes in deferred income tax assets and liabilities, including increases in our net operating loss carryforwards. The decrease in 2014 was primarily the result of prior year changes in deferred income tax assets and liabilities.

Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. In considering whether or not to continue to maintain the valuation allowance, we consider all available positive and negative evidence, including: historical profits and losses, forecasts of future profits or losses, and trends in the industries that we serve that may affect our ability to continue to generate profits. Objective evidence, such as historical losses, limits the ability to consider other subjective evidence, such as our projections for future growth.

On the basis of this evaluation, as of December 31, 2015, a valuation allowance of $14.7 million has been recorded to recognize only the portion of the deferred tax asset that is more likely than not to be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased or if objective negative evidence is no longer present and additional weight is given to subjective evidence such as our projections for growth.

The Company has a U.S. net operating loss carry forward of approximately $50.3 million, which expires between 2022 and 2032. The Company also has U.S. research and development tax credits of $1.5 million which expire between 2024 and 2035. The Company has a net operating loss carryforward from its China operations of approximately $6.2 million, which expires between 2016 and 2020. The Company has a net operating loss carryforward from its Taiwan operations of approximately $2.6 million which expires between 2020 and 2025. Utilization of U.S. net operating losses and tax credit carry forwards are subject to an annual limitation due to the ownership change limitations set forth in Internal Revenue Code Section 382. During 2015, the Company updated its Section 382 analysis resulting in the recognition of additional utilizable net operating losses which had no impact on the Company’s balance sheet or income statement due to the Company having a full valuation allowance. Additional ownership changes could result in the expiration of the net operating loss and tax credit carryforward before utilization.

The U.S. NOL carryforwards and research and development tax credit carryforwards in the income tax returns filed included unrecognized tax benefits. The deferred tax assets recognized for those NOLs and tax credits are presented net of these unrecognized tax benefits.

The Company has approximately $0.9 million of windfall tax benefits from previous stock option exercises that have not been recognized as of December 31, 2015. This amount will not be recognized until the deduction would reduce our U.S. income taxes payable. At such time, the amount will be recorded as an increase in paid-in-capital. The Company uses ASC 740 ordering when determining when excess tax benefits have been realized.

A reconciliation of the U.S. federal income tax rate of 34% for the years ended December 31, to the Company’s effective income tax rate follows:

	2015			2014			2013
	(in thousands)
Expected (benefit) taxes	$	3,797		$	1,524		$	(467	)
Non-deductible expenses		157			138			619
Foreign differences		(1,267	)		295			–
Increase (decrease) in valuation allowance		2,052			(1,729	)		(7,533	)
Section 382 limitation		(4,382	)		–			7,423
Other		18			(29	)		(42	)
Tax expense	$	375		$	199		$	–

The Company’s wholly owned subsidiary, Prime World is a tax-exempt entity under the Income Tax Code of the British Virgin Islands.

The Company’s wholly owned subsidiary, Global Technology, Inc., has enjoyed preferential tax concessions in China as a national high-tech enterprise. In March 2007, China’s parliament enacted the PRC Enterprise Income Tax Law, or the EIT Law, under which, effective January 1, 2008, China adopted a uniform income tax rate of 25% for all enterprises including foreign invested enterprises. Global Technology, Inc. was recognized as a National high-tech enterprise in 2008 and was entitled to a 15% tax rate for a three year period from November 2008 to November 2014. Global Technology, Inc. renewed its National high-tech enterprise certificate and was therefore extended its three year tax preferential status from November 2014 to September 2017.

As of December 31, 2015, December 31, 2014 and December 31, 2013, the total amount of unrecognized tax benefit was $1.8 million, $1.6 million, and $2.2 million, respectively. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:

	2015			2014			2013
	(in thousands)
Unrecognized tax benefits — January 1	$	1,659		$	2,200		$	–
Gross increases — tax positions in prior period		332			1,659			2,200
Gross decreases — tax positions in prior period		(194	)		(2,200	)		–
Unrecognized tax benefits — December 31	$	1,797		$	1,659		$	2,200

As of December 31, 2015, we had $1.8 million of unrecognized tax benefits related to US tax benefits recognized for prior branch losses and research and development credits. As of December 31, 2014, we had $1.7 million of unrecognized tax benefits related to US tax benefits recognized for prior branch losses and research and development credits. As of December 31, 2013, we had $2.2 million of unrecognized tax benefits related to US tax benefits recognized for prior year branch losses. If recognized, there would be no impact our effective tax rate as a result of the full valuation allowance previously recognized. We believe that it is reasonably possible that $0.3 million of our remaining unrecognized tax positions may be recognized by the end of 2016.

The Company recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. Related to the unrecognized tax benefits noted above, it has not accrued penalties or interest during 2015 as a result of net operating losses. During 2014, the Company also accrued no penalties or interest.

The Company is subject to taxation in the United States and various states and foreign jurisdictions. The Company’s open tax years subject to examination in the U.S. federal and state jurisdictions are 2012 through 2014. To the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward, and make adjustments up to the amount of the net operating loss or tax credit carryforward. The Company is subject to examination for tax years 2008 forward for various foreign jurisdictions.

L. SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2015

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

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 issues stock options 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 and restrictive stock units (“RSUs”) may be granted from these plans. Prior to the Company’s initial public offering, 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 semi-annually thereafter. All options expire ten years after the date of grant.

The following is a summary of option activity:

	Number of shares			Weighted Average Exercise Price		Weighted Average Share Price on Date of Exercise		Weighted Average Fair Value		Weighted Average Remaining Contractual Life			Aggregate Intrinsic Value
	(in thousands, except price data)
Outstanding, January 1, 2013		419		$	5.94
Granted		1,099			9.21
Exercised		(29	)		5.87							$	178
Forfeited		(16	)		7.10
Expired		(5	)		5.99
Outstanding, December 31, 2013		1,468			8.38				4.17				9,731
Granted		108			13.84				7.24				–
Exercised		(104	)		6.22				2.57				1,476
Forfeited		(48	)		8.23				5.43				628
Expired		(1	)		6.21				2.21				11
Outstanding, December 31, 2014		1,423			8.96				4.48				3,486
Exercised		(81	)		7.09	$	16.53		2.62				762
Forfeited		(32	)		8.96				4.43				212
Outstanding, December 31, 2015		1,310		$	9.07			$	4.59		7.186	$	10,598
Exercisable, December 31, 2015		766		$	8.54			$	4.12		6.880	$	6,606
Vested and expected to vest		1,274		$	9.04			$	4.57		7.172	$	10,346

As of December 31, 2015, there was approximately $2.2 million of unrecognized stock option expense, net of estimated forfeitures, which is expected to be recognized over 1.65 years.

Restricted Stock Unit/Awards

The following is a summary of RSU/RSA activity:

	Number of shares			Weighted Average Share Price on Date of Release		Weighted Average Fair Value		Aggregate Intrinsic Value
	(in thousands, except price data)
Outstanding at January 1, 2013							–
Granted		33				$	10.00
Released		–
Cancelled/Forfeited		–
Outstanding at December 31, 2013		33					10.00
Granted		25					18.45
Released		(33	)				10.57
Cancelled/Forfeited		(4	)				18.20
Outstanding at December 31, 2014		21					18.22		238
Granted		156					11.06		1,722
Released		(19	)	$	13.62		18.24		257
Cancelled/Forfeited		(6	)				10.00		99
Outstanding at December 31, 2015		152				$	11.20	$	2,611
Exercisable, December 31, 2015		10				$	19.45	$	170
Vested and expected to vest		148				$	11.22	$	2,534

The aggregate intrinsic value of RSUs and RSAs outstanding at December 31, 2015 was $2.6 million. Unrecognized compensation expense related to these RSUs and RSAs at December 31, 2015 was $1.2 million. This expense is expected to be recognized over 2.94 years.

Share-Based Compensation

The Company recognizes compensation expense on a straight-line basis over the applicable vesting term of the award.

The Company 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:

	2014		2013
Expected volatility		52%		52 to 70%
Risk-free interest rate		1.89%		0.96% to 2.97%
Expected term (years)		6.25		6.25
Expected dividend yield		–		–
Estimated forfeitures		7.5%		7.5%

In 2015, the Company issued RSUs and RSAs as share-based compensation to employees and ceased issuing stock options. The Company estimates the fair value of RSU and RSA at the fair market value on the grant date and assumes an estimated forfeiture rate.

As there had been no market for the Company’s common stock prior to its initial public offering, the expected volatility for options granted to date 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 the 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 are based on historical experience and future work force projections.

Employee share-based compensation expenses recognized for the years ended December 31, were as follows:

Share-Based compensation - by expense type

	2015		2014		2013
	(in thousands)
Cost of goods sold	$	70	$	88	$	56
Research and development		230		115		53
Sales and marketing		217		98		52
General and administrative		1,603		1,760		908
Total share-based compensation expense	$	2,120	$	2,061	$	1,069

Share-Based compensation - by award type

		2015		2014		2013
	(in thousands)
Employee stock options	$	1,538	$	1,660	$	793
Restricted stock units		582		385		220
Warrants		–		16		56
Total share-based compensation expense	$	2,120	$	2,061	$	1,069

M. STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

STOCKHOLDERS' EQUITY

Common Stock

The Company’s Amended and Restated Certificate of Incorporation authorizes the issuance of up to 45,000,000 shares of common stock, all of which have been designated voting common stock.

Preferred Stock

The Company’s Amended and Restated Certificate of Incorporation authorizes the issuance of up to 5,000,000 shares of preferred stock.

Warrants

As of December 31, 2015 and 2014, the Company had no outstanding warrants to purchase common or preferred stock.

Public Offerings of Common Stock

On September 25, 2013, the Company’s registration statement on Form S-1 for its initial public offering was declared effective by the Securities and Exchange Commission. The offering commenced on September 26, and 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 $31.5 million, net of expenses and underwriting discounts and commissions. The Company’s initial public offering closed on October 1, 2013.

On March 19, 2014, the Company sold 2.0 million shares of its common stock in a secondary offering at a price of $24.25 per share, providing proceeds of $45.7 million, net of expenses and underwriting discounts and commissions. The Company’s sale of 1.6 million shares in the secondary offering closed on March 25, 2014 and the Company’s sale of an additional 0.4 million shares as a result of the underwriters’ exercise of their option to purchase additional shares closed on March 28, 2014.

On June 3, 2015, the Company filed a Securities Registration Statement on Form S-3 (the “Form S-3”) with the Securities and Exchange Commission effective June 23, 2015, providing for the public offer and sale of certain securities of the Company from time to time, at its discretion, up to an aggregate amount of $140 million. In connection with the Company’s Form S-3, the Company entered into an Equity Distribution Agreement with Raymond James & Associates, Inc. (the “sales agent”) pursuant to which the Company may issue and sell shares of the Company’s stock having an aggregate offering price of up to $40 million (the “ATM Offering”) from time to time through the sales agent. On July 16, 2015, the Company commenced sales of common stock through the ATM Offering, and as of December 31, 2015, the Company has sold 1.9 million shares under the ATM Offering at a weighted average price of $21.54 per share, providing proceeds of $38.6 million, net of expenses and underwriting discounts and commissions.

Recovery of Stockholder Short Swing Profit

In November 2015, a member of the board of directors of the Company paid $5,510 to the Company, representing the disgorgement of short swing profits under Section 16(b) under the Exchange Act. The amount was recorded as additional paid-in capital.

- 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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-URI http://asc.fasb.org/extlink&oid=6521494

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-Number Topic 4
-Section E

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
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+ Details

N. SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

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

	For the year ended December 31,
	2015		2014		2013
Revenues:	(in thousands)
United States	$	53,997	$	30,723	$	14,705
Taiwan		115,265		77,680		31,863
China		20,641		22,046		31,856
	$	189,903	$	130,449	$	78,424

	As of December 31,
	2015		2014		2013
Long-lived assets:	(in thousands)
United States	$	44,280	$	15,875	$	9,415
Taiwan		45,420		35,688		7,192
China		24,753		18,008		16,337
	$	114,453	$	69,571	$	32,944

The Company serves three primary markets, the internet data center, CATV, and FTTH markets. Of the Company’s total revenues in 2015, the Company earned $123.2 million, or 64.9%, from the internet data center market, $53.7 million, or 28.3%, from the CATV market, $2.5 million, or 1.3%, from the FTTH market, and $10.5 million, or 5.5%, from other markets. Of the Company’s total revenues in 2014, the Company earned $64.4 million, or 49.4%, from the internet data center market, $47.4 million, or 36.3%, from the CATV market, $13.6 million, or 10.4% from the FTTH market, and $5.0 million, or 3.9% from other markets.

- 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

O. MAJOR CUSTOMERS

12 Months Ended

Dec. 31, 2015

O. Major Customers

MAJOR CUSTOMERS

The Company currently derives its revenues from customers in the United States and throughout the rest of the world. Generally, the Company does not require deposits or other collateral to support customer receivables. The Company performs an initial and periodic credit evaluation of its customers and maintains an allowance for uncollectible accounts for potential uncollectible accounts. The historical amount of losses on uncollectible accounts has been within the Company’s estimates. The Company generates much of its revenue from a limited number of customers. In 2015, 2014 and 2013, its top five customers represented 81.8%, 72.0% and 59.1% of its revenue, respectively. In 2015, Amazon, Microsoft and Cisco represented 52.5%, 11.6% and 10.4% of its revenue, respectively. The five largest receivable balances for customers represented an aggregate of 80%, and 70% of total accounts receivable at December 31, 2015 and 2014, respectively. As of December 31, 2015, Amazon and Wesco represented 51.4% and 14.4% of total accounts receivable, respectively.

P. EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

EMPLOYEE BENEFIT PLANS

On August 1, 2000, the Company established a 401(k) profit sharing plan covering employees meeting certain age and service requirements. The plan provides for discretionary Company contributions to be allocated based on the employee’s eligible contributions. The Company made contributions of $0.4 million and $0.2 million to the 401(k) plan for the years ended December 31, 2015 and 2014, respectively, and no contributions for the year ended December 31, 2013.

Employees of Global participate in a state-mandated social security program in China. Under this program, pension costs are recorded on the basis of required monthly contributions to employees’ individual accounts during their service periods. Under the regulations of the People’s Republic of China, Global is required to make fixed contributions to a fund, which is under the administration of the local labor departments.

Employees of AOI—Taiwan participates in a pension program under the Taiwan Labor Pension Act. Pension expense for Global was $0.3 million for the year ended December 31, 2015 and $0.4 million for each of the years ended December 31, 2014 and 2013, respectively. Pension expense for AOI—Taiwan was $0.4 million, $0.3 million and $0.2 million in the years ended December 31, 2015, 2014 and 2013, respectively.

Q. COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Commitments

The Company conducts part of its operations from leased facilities and also leases equipment. Rent expense was $1.1 million, $0.8 million and $0.6 million for the years ended December 31, 2015, 2014 and 2013, respectively.

At December 31, 2015, the approximate minimum rental commitments under noncancellable leases in excess of one year that expire at varying dates through 2029 were as follows:

Year ending December 31,	Amount
	(in thousands)
2016	$	814
2017		788
2018		840
2019		935
thereafter		9,576
	$	12,953

Employment Agreements and Consultancy Agreements

The Company has entered into employment and indemnification agreements with three executive officers. These agreements provide that if their employment is terminated as a result of a change of control of the Company, or if their employment is terminated for certain other reasons set forth in the agreements, the Company will be required to pay a severance payment in an amount equal to their annual base salary, and other additional compensation due under the terms of the agreements.

The Company has also entered into employment and indemnification agreement with one other executive officer. These agreements provide that if their employment is terminated as a result of a change of control of the Company, the Company will be required to pay a severance payment in an amount equal to their six months of their annual base salary, and other additional compensation due under the terms of the agreements.

Contingencies

The Company may be party to litigation, claims or assessments in the ordinary course of business. Management is not aware of any of these matters that would have a material effect on the financial condition, results of operations or cash flows of the Company.

R. SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2015

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

We have evaluated subsequent events through the date the financial statements were issued.

On February 19, 2016, Applied Optoelectronics, Inc. (the “Company”) entered into two, one year revolving credit facilities totaling NT$320 million, or $9.8 million (the “Credit Facilities”) with China Trust Commercial Bank Co., Ltd. in Taiwan (the “Bank”). The first credit facility is in the amount of NT$200 million or $6.1 million (the “First Credit Facility”). The second credit facility is in the amount of NT$120 million or $3.7 million (the “Second Credit Facility”). Borrowing under the Credit Facilities will be used for general corporate purposes. The Company may draw upon the Credit Facilities from February 19, 2016 until February 18, 2017. The term of each draw shall be between 120 and 180 days. At the end of the draw term the Company will make payment for all principal and accrued interest. The Company’s obligations under the First Credit Facility will be secured by the Company’s deposit accounts with the Bank. Borrowings under the First Credit Facility for New Taiwan Dollars will bear interest at a rate equal to the Bank’s monthly Corporate Interest Index Rate plus 1.5%; for all foreign currency borrowing interest will bear at a rate equal to the Bank’s Cost of Fund lending rate plus 1.8%. The Company’s obligations under the Second Credit Facility will be secured by the Company’s certificate of deposit with the Bank. All borrowings under the Second Credit Facility will be based on the Bank’s monthly Corporate Interest Index Rate plus 0.93% annually. The Bank's current monthly Corporate Interest Index Rate is 0.71% annually. The Bank's current Cost of Fund lending rate is 0.50% annually. The Corporate Interest Index Rate and Cost of Fund lending rates are subject to change from time to time. The agreements for the Credit Facilities contain representations and warranties, and events of default applicable to the Company that are customary for agreements of this type.

S. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

The following tables set forth a summary of the Company’s quarterly financial information for each of the four quarters for the years ended December 31, 2015 and 2014.

	First			Second			Third			Fourth
Year ended December 31, 2015	Quarter			Quarter			Quarter			Quarter

Revenue	$	30,234		$	49,632		$	57,085		$	52,952
Cost of goods sold		20,183			32,901			39,032			37,334
Gross profit	$	10,051		$	16,731		$	18,053		$	15,618
Gross margin		33.2%			33.7%			31.6%			29.5%

Operating expenses:
Research and development	$	4,805		$	4,701		$	5,386		$	5,960
Sales and marketing		1,559			1,607			1,582			1,633
General and administrative		5,003			4,534			4,963			5,271
Total operating expenses	$	11,367		$	10,842		$	11,931		$	12,864

Income from operations	$	(1,316	)	$	5,889		$	6,122		$	2,754
Interest and other income (expense), net		641			335			(3,016	)		(241	)
Net income before taxes	$	(675	)	$	6,224		$	3,106		$	2,513
Income taxes		–			(135	)		(406	)		166
Net income	$	(675	)	$	6,089		$	2,700		$	2,679

Net income per share—basic		(0.05	)		0.41			0.17			0.16
Net income per share—diluted		(0.05	)		0.38			0.16			0.15

	First			Second			Third			Fourth
Year ended December 31, 2014	Quarter			Quarter			Quarter			Quarter

Revenue	$	24,859		$	32,650		$	36,549		$	36,391
Cost of goods sold		16,206			21,462			24,403			24,132
Gross profit	$	8,653		$	11,188		$	12,146		$	12,259
Gross margin		34.8%			34.3%			33.2%			33.7%

Operating expenses:
Research and development	$	3,546		$	4,009		$	4,194		$	4,221
Sales and marketing		1,333			1,497			1,622			1,591
General and administrative		3,554			3,952			4,458			5,131
Total operating expenses	$	8,433		$	9,458		$	10,274		$	10,943

Income from operations	$	220		$	1,730		$	1,872		$	1,316
Interest and other income (expense), net		(110	)		274			(218	)		(602	)
Net income before taxes	$	110		$	2,004		$	1,654		$	714
Income taxes		(25	)		(85	)		(77	)		(12	)
Net income	$	85		$	1,919		$	1,577		$	702

Net income per share—basic	$	0.01		$	0.13		$	0.11		$	0.05
Net income per share—diluted	$	0.01		$	0.12		$	0.10		$	0.05

B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Basis of Presentation

1.	Basis of Presentation

Reclassifications

2.	Reclassifications

Use of Estimates

3.	Use of Estimates

Foreign Currency Translation

4.	Foreign Currency Translation

Fair Value

5.	Fair Value

Level 1—Inputs represent quoted prices in active markets for identical assets or liabilities.

Level 3—Inputs that are not observable from objective sources, such as management’s internally developed assumptions used in pricing an asset or liability.

Assets and liabilities that are required to be fair valued on a recurring basis include money market funds, marketable securities, equity instruments and contingent consideration.

Money market funds are valued with Level 1 inputs, using quoted market prices, and are included in cash and cash equivalents on the Company’s consolidated balance sheets.

Cash and Cash Equivalents

6.	Cash and Cash Equivalents

Restricted Cash/Compensating Balances

7.	Restricted Cash/Compensating Balances

Short-Term Investments

8.	Short-Term Investments

Accounts Receivable/Allowance for Doubtful Accounts

9.	Accounts Receivable/Allowance for Doubtful Accounts

Note Receivable

10.	Note Receivable

Concentration of Credit Risk and Significant Customers

11.	Concentration of Credit Risk and Significant Customers

Inventories

12.	Inventories

Property, Plant and Equipment

13.	Property, Plant and Equipment

		Useful lives

Buildings		20 - 40 years

Land improvements		10 years

Machinery and equipment		3 - 20 years

Furniture and fixtures		1 - 8 years

Computer equipment and software		3 - 7 years

Leasehold improvements		The shorter of the life of the applicable lease or the useful life of the improvement

Transportation equipment		5 years

Intangible Assets

14.	Intangible Assets

Impairment of Long-Lived Assets

15.	Impairment of Long-Lived Assets

The measurement for such an impairment loss is then based on the fair value of the asset as determined by the appraisals.

Comprehensive Income (Loss)

16.	Comprehensive Income (Loss)

Share-based Compensation

17.	Share-based Compensation

Revenue Recognition

18.	Revenue Recognition

Product Warranty

19.	Product Warranty

Advertising Costs

20.	Advertising Costs

Advertising costs are charged to operations as incurred and amounted to approximately $104,000, $100,000 and $121,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

Research and Development

21.	Research and Development

Income Taxes

22.	Income Taxes

New Accounting Standards

23.	New Accounting Standards

Reverse Stock Split

24.	Reverse Stock Split

B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Schedule of useful lives of property, plant and equipment

		Useful lives

Buildings		20 - 40 years

Land improvements		10 years

Machinery and equipment		3 - 20 years

Furniture and fixtures		1 - 8 years

Computer equipment and software		3 - 7 years

Leasehold improvements		The shorter of the life of the applicable lease or the useful life of the improvement

Transportation equipment		5 years

C. EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Computation of basic and diluted net loss per share

	Year ended December 31,
	2015		2014		2013
	(in thousands, except per share data)
Numerator:
Net income (loss)	$	10,793	$	4,283	$	(1,406	)
Denominator:
Weighted average shares used to
compute net income (loss) per share
Basic		15,627		14,307		9,965
Effective of dilutive options, restricted stock units and warrants		906		880		–
Diluted		16,533		15,187		9,965
Net income (loss) per share
Basic	$	0.69	$	0.30	$	(0.14	)
Diluted	$	0.65	$	0.28	$	(0.14	)

Schedule of potentially dilutive securites

As of December 31,

2015

2014

2013

(in thousands)

Employee stock options

–

595

Restricted stock units

–

Preferred stock warrants

–

661

D. INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2015

Inventory Disclosure [Abstract]

Schedule of inventories

	2015		2014
	(in thousands)
Raw materials	$	22,240	$	16,243
Work in process and sub-assemblies		30,766		13,379
Finished goods		13,232		4,158
	$	66,238	$	33,780

E. PROPERTY, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Schedule of property, plant and equipment

	2015			2014
	(in thousands)
Land improvements	$	863		$	103
Building and improvements		27,255			16,196
Machinery and equipment		88,882			61,529
Furniture and fixtures		2,422			1,938
Computer equipment and software		5,615			4,712
Transportation equipment		294			270
		125,331			84,748
Less accumulated depreciation and amortization		(37,970	)		(32,412	)
		87,361			52,336
Construction in progress		21,237			11,371
Land		1,101			1,101
Property, plant and equipment, net	$	109,699		$	64,808

F. INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets

	2015
	Gross Amount		Accumulated amortization			Intangible assets, net
	(in thousands)
Patents	$	5,446	$	(1,551	)	$	3,895
Trademarks		14		(9	)		5
Total intangible assets	$	5,460	$	(1,560	)	$	3,900

	2014
	Gross Amount		Accumulated amortization			Intangible assets, net
	(in thousands)
Patents	$	4,968	$	(1,141	)	$	3,827
Trademarks		14		(8	)		6
Total intangible assets	$	4,982	$	(1,149	)	$	3,833

Amortization expense for intangible assets

2016	$	424
2017		424
2018		424
2019		424
2020		424
thereafter		1,780
	$	3,900

G. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities at fair value

The following table presents a summary of the Company’s financial instruments measured at fair value on a recurring basis as of December 31, 2015 (in thousands):

	Quoted prices in active markets for identical assets (Level 1)		Significant other observable remaining inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets:
Cash and cash equivalents	$	28,074	$	–	$	–	$	28,074
Restricted cash		4,719		–		–		4,719
Short term investments		7,886		–		–		7,886
Total assets	$	40,679	$	–	$	–	$	40,679
Liabilities:
Bank acceptance payable		–	$	2,998		–	$	2,998
Total liabilities	$	–	$	2,998	$	–	$	2,998

The following table presents a summary of the Company’s financial instruments measured at fair value on a recurring basis as of December 31, 2014 (in thousands):

	Quoted prices in active markets for identical assets (Level 1)		Significant other observable remaining inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets:
Cash and cash equivalents	$	32,175	$	–	$	–	$	32,175
Restricted cash		509		–		–		509
Short term investments		8,189		980		–		9,169
Total assets	$	40,873	$	980	$	–	$	41,853
Liabilities:
Bank acceptance payable		–	$	1,271		–	$	1,271
Total liabilities	$	–	$	1,271	$	–	$	1,271

H. NOTES PAYABLE AND LONG-TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of notes payable and long-term debt

	December 31,
	2015			2014

Revolving line of credit with a U.S. bank up to $25,000 with interest at LIBOR plus 2.75% or 3%, maturing June 30, 2018	$	23,000		$	15,000
Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2.75%, maturing July 31, 2019		4,150			5,000
Term loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2.75%, maturing June 30, 2020		2,000			–
Construction loan with a U.S. bank with monthly payments of principal and interest at LIBOR plus 2.75%, maturing January 26, 2022		8,588			–
Revolving line of credit with a Taiwan bank up to $3,000 with interest based on the bank's corporate interest rate index+ 1.5%, or 2.40% maturing on November 30, 2016		2,588			–
Revolving line of credit with a Taiwan bank up to $7,000 with interest at Taiwan deposit index plus 0.41% or LIBOR plus 1.7% maturing on February 6, 2016		4,475			3,605
Revolving line of credit with a Taiwan bank up to $4,000 with interest at Taiwan Time Deposit Interest Rate Index plus 1% or LIBOR plus 1% maturing on December 11, 2015		3,407			3,536
Revolving line of credit with the Taiwan branch of a China bank up to $10,000 with interest at LIBOR plus 1.5% or Taiwan Interbank Offered Rate plus 0.9% , maturing April 1, 2016		9,418			–
Note payable to a finance company due in monthly installments with 4.5% interest, maturing May 27, 2018		2,946			443
Note payable to a finance company due in monthly installments with 4.5% interest, maturing June 30, 2018		1,905			–
Revolving line of credit with a China bank up to $12,320 with interest of 3.15% for 3-month term which mature between January to March 2016		2,428			1,064

Total		64,905			28,648
Less current portion		(30,908	)		(9,591	)
Non-current portion	$	33,997		$	19,057

Maturities of notes payable and long-term debt

2016	$	30,908
2017		3,950
2018		20,877
2019		1,598
2020 thereafter		7,572
Total outstanding	$	64,905

I. ACCRUED LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2015

Payables and Accruals [Abstract]

Schedule of accrued liabilities

	2015		2014
	(in thousands)
Accrued payroll	$	6,757	$	3,662
Accrued Rent		792		–
Accrued employee benefits		1,379		808
Accrued state and local taxes		372		330
Advance payments		1,258		528
Accrued product warranty		412		247
Accrued other		536		1,180
	$	11,506	$	6,755

J. OTHER INCOME AND EXPENSE (Tables)

12 Months Ended

Dec. 31, 2015

Other income (expense)

Schedule of other income and expense

	2015			2014			2013
	(in thousands)
Unrealized foreign exchange loss		(2,568	)		(1,299	)		(342	)
Realized foreign exchange gain (loss)		721			297			(70	)
Government subsidy income		217			271			322
Other non-operating gain		117			44			4
Gain (loss) on disposal of assets		(78	)		(12	)		8
	$	(1,591	)	$	(699	)	$	(78	)

K. INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income or loss from operations before income taxes

	Year ended December 31,
	2015			2014		2013
	(in thousands)
Domestic	$	14,062		$	1,226	$	(684	)
Foreign (loss) income		(2,894	)		3,256		(722	)
Total income (loss)	$	11,168		$	4,482	$	(1,406	)

Provision for income tax expense

	2015		2014		2013
Current:	(in thousands)
Federal	$	168	$	193	$	–
State		207		6		–
Foreign		–		–		–
Total	$	375	$	199	$	–
Deferred:
Federal	$	–	$	–	$	–
State		–		–		–
Foreign		–		–		–
Total	$	–	$	–	$	–

Income tax expense	$	375	$	199	$	–

Net deferred tax assets and liabilities

	2015			2014
	(in thousands)
NOL carryforward	$	14,318		$	12,266
Inventory reserves		1,616			676
AMT credit		347			224
Unrealized gains and losses		1,549			470
Stock compensation		1,084			550
Fixed assets and intangibles		(4,432	)		(1,537	)
Other		244			25
		14,726			12,674
Less valuation allowance		(14,726	)		(12,674	)
Deferred tax assets, net	$	–		$	–

Reconciliation of the U.S. federal income tax rate

	2015			2014			2013
	(in thousands)
Expected (benefit) taxes	$	3,797		$	1,524		$	(467	)
Non-deductible expenses		157			138			619
Foreign differences		(1,267	)		295			–
Increase (decrease) in valuation allowance		2,052			(1,729	)		(7,533	)
Section 382 limitation		(4,382	)		–			7,423
Other		18			(29	)		(42	)
Tax expense	$	375		$	199		$	–

Schedule of unrecognized tax benefits

	2015			2014			2013
	(in thousands)
Unrecognized tax benefits — January 1	$	1,659		$	2,200		$	–
Gross increases — tax positions in prior period		332			1,659			2,200
Gross decreases — tax positions in prior period		(194	)		(2,200	)		–
Unrecognized tax benefits — December 31	$	1,797		$	1,659		$	2,200

L. SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2015

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

Summary of option activity

	Number of shares			Weighted Average Exercise Price		Weighted Average Share Price on Date of Exercise		Weighted Average Fair Value		Weighted Average Remaining Contractual Life			Aggregate Intrinsic Value
	(in thousands, except price data)
Outstanding, January 1, 2013		419		$	5.94
Granted		1,099			9.21
Exercised		(29	)		5.87							$	178
Forfeited		(16	)		7.10
Expired		(5	)		5.99
Outstanding, December 31, 2013		1,468			8.38				4.17				9,731
Granted		108			13.84				7.24				–
Exercised		(104	)		6.22				2.57				1,476
Forfeited		(48	)		8.23				5.43				628
Expired		(1	)		6.21				2.21				11
Outstanding, December 31, 2014		1,423			8.96				4.48				3,486
Exercised		(81	)		7.09	$	16.53		2.62				762
Forfeited		(32	)		8.96				4.43				212
Outstanding, December 31, 2015		1,310		$	9.07			$	4.59		7.186	$	10,598
Exercisable, December 31, 2015		766		$	8.54			$	4.12		6.880	$	6,606
Vested and expected to vest		1,274		$	9.04			$	4.57		7.172	$	10,346

Summary of RSU activity

	Number of shares			Weighted Average Share Price on Date of Release		Weighted Average Fair Value		Aggregate Intrinsic Value
	(in thousands, except price data)
Outstanding at January 1, 2013							–
Granted		33				$	10.00
Released		–
Cancelled/Forfeited		–
Outstanding at December 31, 2013		33					10.00
Granted		25					18.45
Released		(33	)				10.57
Cancelled/Forfeited		(4	)				18.20
Outstanding at December 31, 2014		21					18.22		238
Granted		156					11.06		1,722
Released		(19	)	$	13.62		18.24		257
Cancelled/Forfeited		(6	)				10.00		99
Outstanding at December 31, 2015		152				$	11.20	$	2,611
Exercisable, December 31, 2015		10				$	19.45	$	170
Vested and expected to vest		148				$	11.22	$	2,534

Assumptions used

	2014		2013
Expected volatility		52%		52 to 70%
Risk-free interest rate		1.89%		0.96% to 2.97%
Expected term (years)		6.25		6.25
Expected dividend yield		–		–
Estimated forfeitures		7.5%		7.5%

Allocation of recognized period costs

Share-Based compensation - by expense type

	2015		2014		2013
	(in thousands)
Cost of goods sold	$	70	$	88	$	56
Research and development		230		115		53
Sales and marketing		217		98		52
General and administrative		1,603		1,760		908
Total share-based compensation expense	$	2,120	$	2,061	$	1,069

Share-Based compensation - by award type

		2015		2014		2013
	(in thousands)
Employee stock options	$	1,538	$	1,660	$	793
Restricted stock units		582		385		220
Warrants		–		16		56
Total share-based compensation expense	$	2,120	$	2,061	$	1,069

N. SEGMENT AND GEOGRAPHIC INFORMATION (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Revenue and asset information by geographic region

	For the year ended December 31,
	2015		2014		2013
Revenues:	(in thousands)
United States	$	53,997	$	30,723	$	14,705
Taiwan		115,265		77,680		31,863
China		20,641		22,046		31,856
	$	189,903	$	130,449	$	78,424

	As of December 31,
	2015		2014		2013
Long-lived assets:	(in thousands)
United States	$	44,280	$	15,875	$	9,415
Taiwan		45,420		35,688		7,192
China		24,753		18,008		16,337
	$	114,453	$	69,571	$	32,944

Q. COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum rental commitments

Year ending December 31,	Amount
	(in thousands)
2016	$	814
2017		788
2018		840
2019		935
thereafter		9,576
	$	12,953

S. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data

The following tables set forth a summary of the Company’s quarterly financial information for each of the four quarters for the years ended December 31, 2015 and 2014.

	First			Second			Third			Fourth
Year ended December 31, 2015	Quarter			Quarter			Quarter			Quarter

Revenue	$	30,234		$	49,632		$	57,085		$	52,952
Cost of goods sold		20,183			32,901			39,032			37,334
Gross profit	$	10,051		$	16,731		$	18,053		$	15,618
Gross margin		33.2%			33.7%			31.6%			29.5%

Operating expenses:
Research and development	$	4,805		$	4,701		$	5,386		$	5,960
Sales and marketing		1,559			1,607			1,582			1,633
General and administrative		5,003			4,534			4,963			5,271
Total operating expenses	$	11,367		$	10,842		$	11,931		$	12,864

Income from operations	$	(1,316	)	$	5,889		$	6,122		$	2,754
Interest and other income (expense), net		641			335			(3,016	)		(241	)
Net income before taxes	$	(675	)	$	6,224		$	3,106		$	2,513
Income taxes		–			(135	)		(406	)		166
Net income	$	(675	)	$	6,089		$	2,700		$	2,679

Net income per share—basic		(0.05	)		0.41			0.17			0.16
Net income per share—diluted		(0.05	)		0.38			0.16			0.15

	First			Second			Third			Fourth
Year ended December 31, 2014	Quarter			Quarter			Quarter			Quarter

Revenue	$	24,859		$	32,650		$	36,549		$	36,391
Cost of goods sold		16,206			21,462			24,403			24,132
Gross profit	$	8,653		$	11,188		$	12,146		$	12,259
Gross margin		34.8%			34.3%			33.2%			33.7%

Operating expenses:
Research and development	$	3,546		$	4,009		$	4,194		$	4,221
Sales and marketing		1,333			1,497			1,622			1,591
General and administrative		3,554			3,952			4,458			5,131
Total operating expenses	$	8,433		$	9,458		$	10,274		$	10,943

Income from operations	$	220		$	1,730		$	1,872		$	1,316
Interest and other income (expense), net		(110	)		274			(218	)		(602	)
Net income before taxes	$	110		$	2,004		$	1,654		$	714
Income taxes		(25	)		(85	)		(77	)		(12	)
Net income	$	85		$	1,919		$	1,577		$	702

Net income per share—basic	$	0.01		$	0.13		$	0.11		$	0.05
Net income per share—diluted	$	0.01		$	0.12		$	0.10		$	0.05

B. Summary Of Significant Accounting Policies (Details - Property, Plant and Equipment)	12 Months Ended
	Dec. 31, 2015
Buildings [Member] \| Minimum [Member]
Estimated useful lives	20 years
Buildings [Member] \| Maximum [Member]
Estimated useful lives	40 years
Land Improvements [Member]
Estimated useful lives	10 years
Machinery and equipment [Member] \| Minimum [Member]
Estimated useful lives	3 years
Machinery and equipment [Member] \| Maximum [Member]
Estimated useful lives	20 years
Furniture and fixtures [Member] \| Minimum [Member]
Estimated useful lives	1 year
Furniture and fixtures [Member] \| Maximum [Member]
Estimated useful lives	8 years
Computer equipment and software [Member] \| Minimum [Member]
Estimated useful lives	3 years
Computer equipment and software [Member] \| Maximum [Member]
Estimated useful lives	7 years
Leasehold Improvements [Member]
Property, plant and equipment useful lives	The shorter of the life of the applicable lease or the useful life of the improvement
Transportation equipment [Member]
Estimated useful lives	5 years

B. Summary Of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash and cash equivalents	$ 28,074	$ 32,175	$ 22,006	$ 10,723
Cash in excess of FDIC insurance	23,300
Accrued warranty	$ 412	247
Land use rights expiration date	October 7, 2054
Advertising Costs	$ 104	$ 100	$ 121
Sales Revenue, Net [Member] \| Five Customers [Member]
Concentration of credit risk	81.80%	72.00%	59.10%
Sales Revenue, Net [Member] \| Amazon [Member]
Concentration of credit risk	52.50%
Sales Revenue, Net [Member] \| Microsoft [Member]
Concentration of credit risk	11.60%
Sales Revenue, Net [Member] \| Cisco [Member]
Concentration of credit risk	10.40%
Accounts Receivable [Member] \| Five Customers [Member]
Concentration of credit risk	80.00%	70.00%
Accounts Receivable [Member] \| Amazon [Member]
Concentration of credit risk	51.40%
Accounts Receivable [Member] \| Wesco [Member]
Concentration of credit risk	14.40%
Foreign Accounts [Member]
Cash and cash equivalents	$ 8,900	$ 4,600
TAIWAN, PROVINCE OF CHINA
Restricted cash	4,700	$ 500
Certificates of deposit	7,900
Pledged certificate of deposit for line of credit	$ 7,900

C. Earnings Per Share (Details-Calculation EPS) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Numerator:
Net income (loss)	$ 2,679	$ 2,700	$ 6,089	$ (675)	$ 702	$ 1,577	$ 1,919	$ 85	$ 10,793	$ 4,283	$ (1,406)
Weighted average shares used to compute net income (loss) per share
Basic									15,626,753	14,307,477	9,964,955
Effective of dilutive options and warrants									906,000	880,000	0
Diluted									16,532,850	15,186,961	9,964,955
Net income (loss) per share
Basic	$ .16	$ .17	$ .41	$ (.05)	$ 0.05	$ 0.11	$ 0.13	$ 0.01	$ 0.69	$ 0.30	$ (.14)
Diluted	$ .15	$ .16	$ .38	$ (.05)	$ 0.05	$ 0.10	$ 0.12	$ 0.01	$ .65	$ 0.28	$ (.14)

- 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

C. Earnings Per Share (Details - Potentially Dilutive Shares) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Potentially dilutive securities excluded from EPS	0	0	661
Employee Stock Options [Member]
Potentially dilutive securities excluded from EPS	0	0	595
Restricted Stock Units [Member]
Potentially dilutive securities excluded from EPS	0	0	33
Preferred Stock Warrants [Member]
Potentially dilutive securities excluded from EPS	0	0	33

D. Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 22,240	$ 16,243
Work in process and sub-assemblies	30,766	13,379
Finished goods	13,232	4,158
Inventories	$ 66,238	$ 33,780

D. Inventory (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]
Lower of cost or market adjustment for inventory	$ 2,800	$ 900	$ 500

E. Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property, plant and equipment, gross	$ 125,331	$ 84,748
Less accumulated depreciation and amortization	(37,970)	(32,412)
Property, plant and equipment	87,361	52,336
Construction in progress	21,237	11,371
Land	1,101	1,101
Property, plant and equipment, net	109,699	64,808
Land Improvements [Member]
Property, plant and equipment, gross	863	103
Building and improvements [Member]
Property, plant and equipment, gross	27,255	16,196
Machinery and equipment [Member]
Property, plant and equipment, gross	88,882	61,529
Furniture and fixtures [Member]
Property, plant and equipment, gross	2,422	1,938
Computer equipment and software [Member]
Property, plant and equipment, gross	5,615	4,712
Transportation equipment [Member]
Property, plant and equipment, gross	$ 294	$ 270

E. Property, Plant and Equipment (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 9,000	$ 5,800	$ 3,300
Capitalized interest on construction in progress	$ 100

F. Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Gross Amount	$ 5,460	$ 4,982
Accumulated amortization	(1,560)	(1,149)
Intangible assets, net	3,900	3,833
Patents [Member]
Gross Amount	5,446	4,968
Accumulated amortization	(1,551)	(1,141)
Intangible assets, net	3,895	3,827
Trademarks [Member]
Gross Amount	14	14
Accumulated amortization	(9)	(8)
Intangible assets, net	$ 5	$ 6

F. Intangible Assets (Details-Amortization Schedule) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
2016	$ 424
2017	424
2018	424
2019	424
2020	424
Thereafter	1,780
Amortization expense for intangible assets	$ 3,900	$ 3,833

F. Intangible Assets (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense for intangible assets	$ 411	$ 356	$ 68
Weighted average amortization period	9 years 6 months

G. Fair Value of Financial Instruments (Details-Summary) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Assets:
Cash and cash equivalents	$ 28,074	$ 32,175
Restricted cash	4,719	509
Short term investments	7,886	9,169
Total assets	40,679	41,853
Liabilities:
Bank acceptance payable	2,998	1,271
Total liabilities	2,998	1,271
Fair Value, Inputs, Level 1 [Member] \| Fair Value, Measurements, Recurring [Member]
Assets:
Cash and cash equivalents	28,074	32,175
Restricted cash	4,719	509
Short term investments	7,886	8,189
Total assets	40,679	40,873
Liabilities:
Bank acceptance payable	0	0
Total liabilities	0	0
Fair Value, Inputs, Level 2 [Member] \| Fair Value, Measurements, Recurring [Member]
Assets:
Cash and cash equivalents	0	0
Restricted cash	0	0
Short term investments	0	980
Total assets	0	980
Liabilities:
Bank acceptance payable	2,998	1,271
Total liabilities	2,998	1,271
Fair Value, Inputs, Level 3 [Member] \| Fair Value, Measurements, Recurring [Member]
Assets:
Cash and cash equivalents	0	0
Restricted cash	0	0
Short term investments	0	0
Total assets	0	0
Liabilities:
Bank acceptance payable	0
Total liabilities	$ 0	$ 0

H. Notes Payable and Long-Term Debt (Details - Notes Payable) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Notes payable and long-term debt total	$ 64,905	$ 28,648
Current portion of notes payable and long-term debt	30,908	9,591
Long term portion of notes payable and long-term debt	33,997	19,057
Bank acceptance notes	2,998	1,271
Term loan 1 [Member]
Notes payable and long-term debt total	$ 4,150	5,000
Debt maturity date	Jul. 31, 2019
Interest rate	LIBOR plus 2.75%
Term loan 2 [Member]
Notes payable and long-term debt total	$ 2,000	0
Debt maturity date	Jun. 30, 2020
Interest rate	LIBOR plus 2.75%
Construction Loan 1 [Member]
Notes payable and long-term debt total	$ 8,588	0
Debt maturity date	Jan. 26, 2022
Interest rate	LIBOR plus 2.75%
Note Payable 1 [Member]
Notes payable and long-term debt total	$ 2,946	443
Debt maturity date	May 27, 2018
Interest rate	4.5%
Note Payable 2 [Member]
Notes payable and long-term debt total	$ 1,905	0
Debt maturity date	Jun. 30, 2018
Interest rate	4.5%
Revolving Line of Credit [Member] \| Revolving Line of Credit 1 [Member]
Notes payable and long-term debt total	$ 23,000	15,000
Debt maturity date	Jun. 30, 2018
Interest rate	LIBOR plus 2.75% or 3%
Revolving line of credit maximum borrowing capacity	$ 25,000
Revolving Line of Credit [Member] \| Revolving Line of Credit 2 [Member]
Notes payable and long-term debt total	$ 2,588	0
Debt maturity date	Nov. 30, 2016
Interest rate	Bank's corporate interest rate index+ 1.5% or 2.40%
Revolving line of credit maximum borrowing capacity	$ 3,000
Revolving Line of Credit [Member] \| Revolving Line of Credit 3 [Member]
Notes payable and long-term debt total	$ 4,475	3,605
Debt maturity date	Feb. 06, 2016
Interest rate	Taiwan deposit index plus 0.41% or LIBOR plus 1.7%
Revolving line of credit maximum borrowing capacity	$ 7,000
Revolving Line of Credit [Member] \| Revolving Line of Credit 4 [Member]
Notes payable and long-term debt total	$ 3,407	3,536
Debt maturity date	Dec. 11, 2015
Interest rate	Taiwan Time Deposit Interest Rate Index plus 1% or LIBOR plus 1%
Revolving line of credit maximum borrowing capacity	$ 4,000
Revolving Line of Credit [Member] \| Revolving Line of Credit 5 [Member]
Notes payable and long-term debt total	$ 9,418	0
Debt maturity date	Apr. 01, 2016
Interest rate	LIBOR plus 1.5% or Taiwan Interbank Offered Rate plus 0.9%
Revolving line of credit maximum borrowing capacity	$ 10,000
Revolving Line of Credit [Member] \| Revolving Line of Credit 6 [Member]
Notes payable and long-term debt total	$ 2,428	$ 1,064
Debt maturity date	Mar. 31, 2016
Interest rate	3.15% for 3-month term
Revolving line of credit maximum borrowing capacity	$ 12,320

H. Notes Payable and Long-Term Debt (Details-Maturities) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Maturities of notes payable and long-term debt
2016	$ 30,908
2017	3,950
2018	20,877
2019	1,598
2020 thereafter	7,572
Total outstanding	$ 64,905	$ 28,648

H. Notes Payable and Long-Term Debt (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Bank acceptance notes outstanding	$ 2,998	$ 1,271
Unused borrowing capacity	37,700	14,300
Restricted cash, investments or security deposit associated with loan facilities	$ 12,600	8,700
Construction Loan 1 [Member]
Revolving line of credit, maturity date	Jan. 26, 2022
East West Bank and Comerica Bank [Member] \| Term Loan [Member]
Revolving line of credit maximum borrowing capacity	$ 10,000
Revolving line of credit amount outstanding	$ 2,000
Revolving line of credit, maturity date	Jun. 30, 2020
Interest rate on line of credit	LIBOR Borrowing Rate plus 2.75% or 3.0%
East West Bank and Comerica Bank [Member] \| Credit Agreement [Member]
Revolving line of credit maximum borrowing capacity	$ 25,000
Revolving line of credit amount outstanding	$ 23,000	15,000
Revolving line of credit, maturity date	Jun. 30, 2018
Interest rate on line of credit	LIBOR Borrowing Rate plus 2.75% or 3.0%
East West Bank [Member] \| Construction Loan 1 [Member]
Revolving line of credit maximum borrowing capacity	$ 22,000
Revolving line of credit amount outstanding	8,600
Cash restricted for construction in progress	$ 0
Revolving line of credit, maturity date	Jan. 26, 2022
Interest rate on line of credit	one-month LIBOR Rate plus 2.75%
East West Bank [Member] \| Term Loan [Member]
Revolving line of credit maximum borrowing capacity	$ 5,000
Revolving line of credit amount outstanding	$ 4,200	5,000
Revolving line of credit, maturity date	Jul. 31, 2019
CTBC Bank Co. Ltd. [Member] \| Revolving Line of Credit 2 [Member]
Revolving line of credit maximum borrowing capacity	$ 3,000
Revolving line of credit amount outstanding	$ 2,600
Interest rate on line of credit	Bamk's corporate interest rate plus 1.5% adjusted monthly
E. Sun Commercial Bank [Member] \| Revolving Line of Credit 3 [Member]
Revolving line of credit maximum borrowing capacity	$ 7,000
Revolving line of credit amount outstanding	$ 4,500	3,600
Revolving line of credit, maturity date	May 27, 2016
Interest rate on line of credit	The $4.0 million revolving line of credit with CD security bears interest at a rate equal to Taiwan Deposit Index Rate plus 0.41% for New Taiwan dollar borrowings and a 0.1% service fee for U.S. dollar borrowings. The additional $3.0 million credit facility bears interest at a rate equal to LIBOR plus 1.7% divided by 0.946 and a 0.5% service fee for U.S. dollar borrowings.
Mega International Commercial Bank [Member] \| Revolving Line of Credit 4 [Member]
Revolving line of credit maximum borrowing capacity	$ 4,000
Revolving line of credit amount outstanding	$ 3,400	3,500
Interest rate on line of credit	not less than the LIBOR borrowing rate plus 1.0%, divided by 0.946 for U.S. and other currency borrowings
China Construction Bank [Member]
Revolving line of credit maximum borrowing capacity	$ 22,300
Revolving line of credit amount outstanding	10,000
Short term notes payable	2,400	1,100
Bank acceptance notes outstanding	3,000	1,300
China Construction Bank [Member] \| Revolving Line of Credit 5 [Member]
Revolving line of credit maximum borrowing capacity	10,000
Revolving line of credit amount outstanding	$ 9,400
Revolving line of credit, maturity date	Apr. 01, 2016
Interest rate on line of credit	rate not less than LIBOR plus 1.5% for US dollar borrowings and at a rate of not less than Taiwan Interbank Offered Rate plus 0.9% for New Taiwan dollar borrowings
Chailease Finance Co. Ltd. [Member] \| Finance Lease [Member]
Finance lease agreement balance	$ 4,800	$ 400

I. Accrued Liabilities Schedules (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Accrued payroll	$ 6,757	$ 3,662
Accrued rent	792	0
Accrued employee benefits	1,379	808
Accrued state and local taxes	372	330
Advance payments	1,258	528
Accrued product warranty	412	247
Accrued other	536	1,180
Total Accrued Liabilities	$ 11,506	$ 6,755

J. Other Income and Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other income (expense)
Unrealized foreign exchange loss									$ (2,568)	$ (1,299)	$ (342)
Realized foreign exchange gain (loss)									721	297	(70)
Government subsidy income									217	271	322
Other non-operating gain									117	44	4
Gain (loss) on disposal of assets									(78)	(12)	8
Total other income and expense	$ (241)	$ (3,016)	$ 335	$ 641	$ (602)	$ (218)	$ 274	$ (110)	$ (1,591)	$ (699)	$ (78)

K. Income Taxes (Details-Operations Income) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Domestic	$ 14,062	$ 1,226	$ (684)
Foreign (loss) income	(2,894)	3,256	(722)
Total income (loss)	$ 11,168	$ 4,482	$ (1,406)

K. Income Taxes (Details-provision for income tax expense) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current
Federal									$ 168	$ 193	$ 0
State									207	6	0
Foreign									0	0	0
Total									375	199	0
Deferred:
Federal									0	0	0
State									0	0	0
Foreign									0	0	0
Total									0	0	0
Income tax expense	$ 166	$ (406)	$ (135)	$ 0	$ (12)	$ (77)	$ (85)	$ (25)	$ 375	$ 199	$ 0

K. Income Taxes (Details-Deferred Income Taxes) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
NOL Carryforward	$ 14,318	$ 12,266
Inventory reserves	1,616	676
AMT credit	347	224
Unrealized gains and losses	1,549	470
Stock compensation	1,084	550
Fixed assets and intangibles	(4,432)	(1,537)
Other	244	25
Deferred tax assets, gross	14,726	12,674
Less valuation allowance	(14,726)	(12,674)
Deferred tax assets, net	$ 0	$ 0

K. Income Taxes (Details-Reconciliation) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Expected (benefit) taxes									$ 3,797	$ 1,524	$ (467)
Non-deductible expenses									157	138	619
Foreign differences									(1,267)	295	0
Increase (decrease) in valuation allowance									2,052	(1,729)	(7,533)
Section 382 limitation									(4,382)	0	7,423
Other									18	(29)	(42)
Income tax expense	$ 166	$ (406)	$ (135)	$ 0	$ (12)	$ (77)	$ (85)	$ (25)	$ 375	$ 199	$ 0

K. Income Taxes (Details-Unrecognized tax benefit) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Unrecognized tax benefits - January 1	$ 1,659	$ 2,200	$ 0
Gross increases - tax positions in prior period	332	1,659	2,200
Gross decreases - tax positions in prior period	(194)	(2,200)	0
Unrecognized tax benefits - December 31	$ 1,797	$ 1,659	$ 2,200

K. Income Taxes (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Windfall tax benefits unrecognized	$ 900
Valuation allowance increase (decrease)	2,100	$ (1,500)
Net operating loss carryforward	$ 50,300
Loss carryforward expiration date	Dec. 31, 2032
Research and development tax credits	$ 1,500
Research and development tax credit expiration date	Dec. 31, 2035
Federal income tax rate	34.00%
China income tax rate	25.00%
Unrecognized tax benefits	$ 1,797	$ 1,659	$ 2,200	$ 0
China [Member]
Net operating loss carryforward	$ 6,200
Loss carryforward expiration date	Dec. 31, 2020
Taiwan
Net operating loss carryforward	$ 2,600
Loss carryforward expiration date	Dec. 31, 2025

L. Share-Based Compensation (Details-Option Activity) - Employee Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Number of Shares
Outstanding, beginning balance	1,423,000	1,468,000	419,000
Granted	0	108,000	1,099,000
Exercised	(81,000)	(104,000)	(29,000)
Forfeited	(32,000)	(48,000)	(16,000)
Expired	0	(1,000)	(5,000)
Outstanding, ending balance	1,310,000	1,423,000	1,468,000
Exericsable, ending balance	766,000
Vested and expected to vest	1,274,000
Weighted Average Exercise Price
Outstanding, beginning balance	$ 8.96	$ 8.38	$ 5.94
Granted	0	13.84	9.21
Exercised	8.96	6.22	5.87
Forfeited	7.09	8.23	7.10
Expired	0	6.21	5.99
Outstanding, ending balance	9.07	8.96	8.38
Exericsable, ending balance	8.54
Vested and expected to vest	9.04
Weighted Average Share Price on Date of Exercise	16.53
Weighted Average Fair Value
Outstanding, beginning balance	4.48	4.17
Granted	0	7.24
Exercised	2.62	2.57
Forfeited	4.43	5.43
Expired	0	2.21
Outstanding, ending balance	4.59	$ 4.48	$ 4.17
Exericsable, ending balance	4.12
Vested and expected to vest	$ 4.57
Weighted Average Remaining Contractual Life
Outstanding, ending balance	7 years 2 months 7 days
Exericsable, ending balance	6 years 10 months 17 days
Vested and expected to vest	7 years 2 months 2 days
Aggregate Intrinsic Value
Aggregate intrinsic value, beginning balance	$ 3,486	$ 9,731	$ 0
Granted	0	0
Exercised	762	1,476	178
Forfeited	212	628
Expired		11
Aggregate intrinsic value, ending balance	10,598	$ 3,486	$ 9,731
Exericsable, ending balance	6,606
Vested and expected to vest	$ 10,346

L. Share-Based Compensation (Details-Restricted Stock Units) - Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Number of shares
Outstanding, beginning balance	21,000	33,000	0
Granted	156,000	25,000	33,000
Released	(19,000)	(33,000)
Cancelled/Forfeited	(6,000)	(4,000)
Outstanding, ending balance	152,000	21,000	33,000
Exericsable, ending balance	10,000
Vested and expected to vest	148,000
Weighted Average Share Price on Date of Release	$ 13.62
Weighted Average Fair Value
Outstanding, beginning balance	18.22	$ 10.00
Granted	11.06	18.45
Released	18.24	10.57
Cancelled/Forfeited	10.00	18.20
Outstanding, ending balance	11.20	$ 18.22	$ 10.00
Exericsable, ending balance	19.45
Vested and expected to vest	$ 11.22
Aggregate Intrinsic Value
Aggregate intrinsic value, outstanding	$ 238
Granted	1,722
Released	257
Cancelled/Forfeited	99
Aggregate intrinsic value, outstanding	2,611	$ 238
Exericsable, ending balance	170
Vested and expected to vest	$ 2,534

L. Share-Based Compensation (Details-Assumptions) - Employee Stock Options [Member]	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Expected volatility	52.00%	70.00%
Risk-free interest rate	1.89%	2.97%
Expected term (years)	6 years 3 months	6 years 3 months
Expected dividend yield	0.00%	0.00%
Estimated forfeitures	7.50%	7.50%
Minimum [Member]
Expected volatility		52.00%
Risk-free interest rate		0.96%
Maximum [Member]
Expected volatility		70.00%
Risk-free interest rate		2.97%

L. Share-Based Compensation (Details-Share-based Compensation by expense type) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Total share-based compensation expense	$ 2,120	$ 2,061	$ 1,069
Cost of goods sold [Member]
Total share-based compensation expense	70	88	56
Research and development [Member]
Total share-based compensation expense	230	115	53
Sales and marketing [Member]
Total share-based compensation expense	217	98	52
General and administrative [Member]
Total share-based compensation expense	$ 1,603	$ 1,760	$ 908

L. Share-Based Compensation (Details-Share-Based compensation by award type) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Total share-based compensation expense	$ 2,120	$ 2,061	$ 1,069
Employee Stock Options [Member]
Total share-based compensation expense	1,538	1,660	793
Restricted Stock Units [Member]
Total share-based compensation expense	582	385	220
Warrants [Member]
Total share-based compensation expense	$ 0	$ 16	$ 56

L. Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Compensation cost on unvested options not yet recognized	$ 2,200
Compensation cost unrecognized weighted average period	1 year 7 months 24 days
Restricted Stock Units [Member]
Compensation cost on unvested options not yet recognized	$ 1,200
Compensation cost unrecognized weighted average period	2 years 11 months 9 days
Aggregate intrinsic value of options outstanding	$ 2,611	$ 238

M. Stockholders' Equity (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Common stock shares authorized	45,000,000	45,000,000
Preferred Stock shares authorized	5,000,000	5,000,000
Warrants outstanding	$ 0	$ 0
Additional paid-in capital, short swing profits	$ 5
ATM Offering [Member]
Stock sold new, shares issued	1,900,000
Net proceeds from sale of stock	$ 38,600
Year Ended December 31, 2013 [Member]
Stock sold new, shares issued			3,600,000
Net proceeds from sale of stock			$ 31,500
Offering on March 19, 2014 [Member]
Stock sold new, shares issued		2,000,000
Net proceeds from sale of stock		$ 45,700

N. Segment And Geographic Information (Details-Revenues) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues	$ 52,952	$ 57,085	$ 49,632	$ 30,234	$ 36,391	$ 36,549	$ 32,650	$ 24,859	$ 189,903	$ 130,449	$ 78,424
United States [Member]
Revenues									53,997	30,723	14,705
TAIWAN, PROVINCE OF CHINA
Revenues									115,265	77,680	31,863
China [Member]
Revenues									$ 20,641	$ 22,046	$ 31,856

N. Segment And Geographic Information (Details-Long lived assets) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Long-lived assets	$ 114,453	$ 69,571	$ 32,944
United States [Member]
Long-lived assets	44,280	15,875	9,415
TAIWAN, PROVINCE OF CHINA
Long-lived assets	45,420	35,688	7,192
China [Member]
Long-lived assets	$ 24,753	$ 18,008	$ 16,337

N. Segment and Geographic Information (Details Narrative) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues	$ 52,952	$ 57,085	$ 49,632	$ 30,234	$ 36,391	$ 36,549	$ 32,650	$ 24,859	$ 189,903	$ 130,449	$ 78,424
Internet data center [Member] \| Sales Revenue, Net [Member]
Revenues									$ 123,200	$ 64,400
Concentration percentage									64.90%	49.40%
CATV markets [Member] \| Sales Revenue, Net [Member]
Revenues									$ 53,700	$ 47,400
Concentration percentage									28.30%	36.30%
FTTH markets [Member] \| Sales Revenue, Net [Member]
Revenues									$ 2,500	$ 13,600
Concentration percentage									1.30%	10.40%
Other markets [Member] \| Sales Revenue, Net [Member]
Revenues									$ 10,500	$ 5,000
Concentration percentage									5.50%	3.90%

O. Major Customers (Details Narrative)	12 Months Ended
O. Major Customers (Details Narrative)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Sales Revenue, Segment [Member] \| Five Customers [Member]
Concentration risk	81.80%	72.00%	59.10%
Sales Revenue, Segment [Member] \| Amazon [Member]
Concentration risk	52.50%
Sales Revenue, Segment [Member] \| Microsoft [Member]
Concentration risk	11.60%
Sales Revenue, Segment [Member] \| Cisco Systems, Inc. [Member]
Concentration risk	10.40%
Accounts Receivable [Member] \| Five Customers [Member]
Concentration risk	80.00%	70.00%
Accounts Receivable [Member] \| Amazon [Member]
Concentration risk	51.40%
Accounts Receivable [Member] \| Wesco [Member]
Concentration risk	14.40%

P. Employee Benefit Plans (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Company contributions for 401(k)	$ 400	$ 200	$ 0
Global [Member]
Pension expense	300	400	400
AOI - Taiwan [Member]
Pension expense	$ 400	$ 300	$ 200

Q. Commitments And Contingencies (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2016	$ 814
2017	788
2018	840
2019	935
thereafter	9,576
Total future rental commitment	$ 12,953

Q. Commitments And Contingencies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 1,100	$ 800	$ 600

R. Subsequent Events (Details Narrative) - Subsequent Event [Member] - Chins Trust Commercial Bank [Member] - TAIWAN, PROVINCE OF CHINA $ in Thousands	2 Months Ended
	Feb. 19, 2016 USD ($)
First Credit Facility [Member]
Credit line maximum borrowing capacity	$ 6,100
Credit line expiration date	Feb. 18, 2017
Second Credit Facility [Member]
Credit line maximum borrowing capacity	$ 3,700
Credit line expiration date	Feb. 18, 2017

S. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 52,952	$ 57,085	$ 49,632	$ 30,234	$ 36,391	$ 36,549	$ 32,650	$ 24,859	$ 189,903	$ 130,449	$ 78,424
Cost of goods sold	37,334	39,032	32,901	20,183	24,132	24,403	21,462	16,206	129,450	86,203	55,396
Gross profit	$ 15,618	$ 18,053	$ 16,731	$ 10,051	$ 12,259	$ 12,146	$ 11,188	$ 8,653	60,453	44,246	23,028
Gross margin	29.50%	31.60%	33.70%	33.20%	33.70%	33.20%	34.30%	34.80%
Operating expenses:
Research and development	$ 5,960	$ 5,386	$ 4,701	$ 4,805	$ 4,221	$ 4,194	$ 4,009	$ 3,546	20,852	15,970	8,512
Sales and marketing	1,633	1,582	1,607	1,559	1,591	1,622	1,497	1,333	6,381	6,043	4,191
General and administrative	5,271	4,963	4,534	5,003	5,131	4,458	3,952	3,554	19,771	17,095	10,632
Total operating expenses	12,864	11,931	10,842	11,367	10,943	10,274	9,458	8,433	47,004	39,108	23,335
Income from operations	2,754	6,122	5,889	(1,316)	1,316	1,872	1,730	220	13,449	5,138	(307)
Interest and other income (expense), net	(241)	(3,016)	335	641	(602)	(218)	274	(110)	(1,591)	(699)	(78)
Net income before taxes	2,513	3,106	6,224	(675)	714	1,654	2,004	110
Income taxes	166	(406)	(135)	0	(12)	(77)	(85)	(25)	375	199	0
Net income	$ 2,679	$ 2,700	$ 6,089	$ (675)	$ 702	$ 1,577	$ 1,919	$ 85	$ 10,793	$ 4,283	$ (1,406)
Net income per share - basic	$ .16	$ .17	$ .41	$ (.05)	$ 0.05	$ 0.11	$ 0.13	$ 0.01	$ 0.69	$ 0.30	$ (.14)
Net income per share - diluted	$ .15	$ .16	$ .38	$ (.05)	$ 0.05	$ 0.10	$ 0.12	$ 0.01	$ .65	$ 0.28	$ (.14)