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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2012	Mar. 21, 2013	Jun. 30, 2012
Document and Entity Information
Entity Registrant Name	CLEARONE INC
Document Type	10-K
Document Period End Date	Dec. 31, 2012
Amendment Flag	false
Entity Central Index Key	0000840715
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		9,121,314
Entity Public Float			$ 24,625,000
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 55,509	$ 16,683
Receivables, net of allowance for doubtful accounts of $60 and $149, respectively	8,388	8,457
Inventories	10,873	12,565
Deferred income taxes	3,148	2,987
Prepaid expenses and other assets	1,369	740
Total current assets	79,287	41,432
Long-term inventories, net	1,955	1,905
Property and equipment, net	1,708	2,338
Intangibles, net	4,258	2,690
Goodwill	3,472	1,153
Deferred income taxes	1,195	0
Other assets	64	41
Total assets	91,939	49,559
Current Liabilities:
Accounts payable	2,302	2,814
Accrued liabilities	2,143	2,234
Income taxes payable	14,782	300
Deferred product revenue	3,593	3,404
Total current liabilities	22,820	8,752
Deferred income taxes	0	101
Deferred rent	422	494
Other long-term liabilities	2,029	548
Total liabilities	25,271	9,895
Shareholders' equity:
Common stock, par value $0.001, 50,000,000 shares authorized, 9,163,462 and 9,098,152 shares issued and outstanding as of December 31, 2012 and 2011, respectively	9	9
Additional paid-in capital	40,430	40,073
Retained earnings (accumulated deficit)	26,229	(418)
Total shareholders' equity	66,668	39,664
Total liabilities and shareholders' equity	$ 91,939	$ 49,559

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 60	$ 149
Common Stock:
Par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, sharse issued (in shares)	9,163,462	9,163,462
Common stock, shares outstanding (in shares)	9,098,152	9,098,152
Treasury stock (in shares)	94,744

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Income Statement [Abstract]
Revenue	$ 46,417	$ 46,067
Cost of goods sold	19,089	18,522
Gross profit	27,328	27,545
Operating expenses:
Sales and marketing	8,112	8,120
Research and product development	8,261	7,128
General and administrative	6,934	5,427
Proceeds from litigation, net	(38,500)	(3,702)
Total operating expenses	(15,193)	16,973
Operating income	42,521	10,572
Other income, net	34	24
Income before income taxes	42,555	10,596
Provision for income taxes	(15,908)	(3,667)
Net income	$ 26,647	$ 6,929
Basic earnings per common share (in dollars per share)	$ 2.93	$ 0.77
Diluted earnings per common share (in dollars per share)	$ 2.89	$ 0.75
Basic weighted average shares (in shares)	9,107,234	9,027,934
Diluted weighted average shares (in shares)	9,214,685	9,271,811

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)
Common stock outstanding, beginning (in shares) at Dec. 31, 2010		8,929,439
Balance at the beginning of the period at Dec. 31, 2010	$ 31,735	$ 9	$ 39,073	$ (7,347)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		168,514
Exercise of stock options (in dollars)	746	$ 0	746
Tax benefit - stock option exercise	66	0	66
Compensation cost associated with ASC Topic 718	187	$ 0	187
Employee Stock Purchase Plan (in shares)		199
Employee stock purchase plan (in dollars)	1	$ 0	1
Net income	$ 6,929			6,929
Common stock outstanding, ending (in shares) at Dec. 31, 2011	9,098,152	9,098,152
Balance at end of the period at Dec. 31, 2011	$ 39,664	$ 9	40,073	(418)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	159,869	159,869
Exercise of stock options (in dollars)	$ 489	$ 0	489
Stock Repurchased (in shares)		94,744
Stock Repurchased (in dollars)	(384)	$ 0	384
Tax benefit - stock option exercise	10	0	10
Compensation cost associated with ASC Topic 718	241	$ 0	241
Employee Stock Purchase Plan (in shares)		185
Employee stock purchase plan (in dollars)	1	$ 0	1
Net income	$ 26,647			26,647
Common stock outstanding, ending (in shares) at Dec. 31, 2012	9,098,152	9,163,462
Balance at end of the period at Dec. 31, 2012	$ 66,668	$ 9	$ 40,430	$ 26,229

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:
Net income	$ 26,647	$ 6,929
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization expense	1,917	1,243
Amortization of deferred rent	(41)	(23)
Stock-based compensation expense	241	187
Provision for doubtful accounts	25	312
Write-down of inventory to net realizable value	1,235	188
Loss on disposal of assets	0	5
Tax benefit from exercise of stock options	(2)	0
Changes in operating assets and liabilities:
Receivables	44	1,081
Inventories	447	(3,066)
Deferred income taxes	(1,457)	1,416
Prepaid expenses and other assets	(652)	(305)
Accounts payable	(512)	634
Accrued liabilities	(130)	(2,277)
Income taxes payable	14,492	250
Deferred product revenue	189	(902)
Other long-term liabilities	1,481	127
Net cash provided by operating activities	43,924	5,799
Cash flows from investing activities:
Payment towards business acquisitions	(4,632)	(980)
Purchase of property and equipment	(574)	(380)
Net cash used in investing activities	(5,206)	(1,360)
Cash flows from financing activities:
Proceeds from the exercise of stock options	490	747
Tax benefit from the exercise of stock options	2	66
Treasury stock purchased	(384)	0
Net cash provided by (used in) financing activities	108	813
Net increase in cash and cash equivalents	38,826	5,252
Cash and cash equivalents at the beginning of the period	16,683	11,431
Cash and cash equivalents at the end of the period	55,509	16,683
Supplemental disclosure of cash flow information:
Cash paid for income taxes	1,393	1,705
Supplemental disclosure of non-cash activities:
Exchanged accounts receivable from a vendor with accounts payable to the same vendor	0	182
Transfer from property and equipment to inventory	$ 0	$ 78

Consolidated Statements of Cash Flows - Supplemental Disclosure of Non-Cash Activities - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Goodwill	$ 3,472	$ 1,153
VCON Video Conferencing, Ltd. (VCON)
Inventory	40
Proprietary software	2,247
Property and equipment	34
Product warranty liability	(8)
Goodwill	2,319
Cash paid	$ 4,632
MagicBox Inc.
Accounts receivable		81
Inventories		117
Other current assets		12
Accrued expenses		(4)
Property and equipment		9
Intangibles		338
Goodwill		427
Cash paid		$ 980

Organization - Nature of Operations	12 Months Ended
Organization - Nature of Operations	Dec. 31, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization - Nature of Operations	Organization – Nature of Operations ClearOne, Inc., a Utah corporation, and its subsidiaries (collectively, the “Company”) develop, manufacture, market, and service a comprehensive line of audio visual products including audio conferencing, video conferencing, streaming and digital signage products. The Company’s solutions create a natural communication environment, designed to save organizations time and money by enabling more effective and efficient communication between geographically separated businesses, employees, and customers.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

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+ Details

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Fiscal Year – This report on Form 10-K includes financial statements for the years ended December 31, 2012 and 2011.

Consolidation – These consolidated financial statements include the financial statements of ClearOne, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.

Use of Estimates – The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting periods. Key estimates in the accompanying consolidated financial statements include, among others, revenue recognition, allowances for doubtful accounts and product returns, provisions for obsolete inventory, valuation of long-lived assets, and deferred income tax asset valuation allowances. Actual results could differ materially from these estimates.

Foreign Currency Translation – The U.S. Dollar is used as the functional currency for our subsidiaries in the United Kingdom, Hong Kong and Israel. However, the Company's foreign subsidiaries have certain assets, liabilities and cash flows that are subject to foreign currency risk. Gains or losses arising on remeasurement of foreign currency denominated assets and liabilities are not significant and are included in the Company's Statement of Operations under "Other income, net".

Concentration Risk – We depend on an outsourced manufacturing strategy for our products. We outsource the manufacture of all of our products to third-party manufacturers located in both the U.S. and Asia. If any of these manufacturers experience difficulties in obtaining sufficient supplies of components, component prices significantly exceeding the anticipated costs, an interruption in their operations, or otherwise suffer capacity constraints, we would experience a delay in shipping these products which would have a negative impact on our revenues. Should there be any disruption in services due to natural disaster, economic or political difficulties, transportation restrictions, acts of terror, quarantine or other restrictions associated with infectious diseases, or other similar events, or any other reason, such disruption would have a material adverse effect on our business. Operating in the international environment exposes us to certain inherent risks, including unexpected changes in regulatory requirements and tariffs, and potentially adverse tax consequences, which could materially affect our results of operations. Currently, we have no second source of manufacturing for a portion of our products.

Cash Equivalents – The Company considers all highly-liquid investments with a maturity of three months or less, when purchased, to be cash equivalents. The Company places its temporary cash investments with high-quality financial institutions. At times, such investments may be in excess of the Federal Deposit Insurance Corporation insurance limits.

Accounts Receivable – Accounts receivable are recorded at the invoiced amount. Generally, credit is granted to customers, on a short-term basis without requiring collateral, and as such these accounts receivable do not bear interest, although a finance charge may be applied to such receivables that are past due. The Company extends credit to customers who it believes have the financial strength to pay. The Company has in place credit policies and procedures, an approval process for sales returns and credit memos, and processes for managing and monitoring channel inventory levels.

The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Management regularly analyzes accounts receivable including current aging, historical write-off experience, customer concentrations, customer creditworthiness, and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. We review customer accounts quarterly by first assessing accounts with aging over a specific duration and balance over a specific amount. We review all other balances on a pooled basis based on past collection experience. Accounts identified in our customer-level review as exceeding certain thresholds are assessed for potential allowance adjustment if we conclude the financial condition of that customer has deteriorated, adversely affecting their ability to make payments. Delinquent account balances are written off if the Company determines that the likelihood of collection is not probable. If the assumptions that are used to determine the allowance for doubtful accounts change, the Company may have to provide for a greater level of expense in future periods or reverse amounts provided in prior periods.

The Company’s allowance for doubtful accounts activity for the years ended December 31, 2012 and 2011 was as follows:



	Year ended December 31,
	2012			2011
Balance at beginning of the year	$	149		$	206
Charged to costs and expenses	25			312
Deductions	(114		)	(369		)
Balance at end of the year	$	60		$	149

Inventories – Inventories are valued at the lower of cost or market, with cost computed on a first-in, first-out (“FIFO”) basis. In addition to the price of the product purchased, the cost of inventory includes the Company’s internal manufacturing costs, including warehousing, engineering, material purchasing, quality and product planning expenses and applicable overhead, not in excess of estimated realizable value. Consideration is given to obsolescence, excessive levels, deterioration, direct selling expenses, and other factors in evaluating net realizable value.

Consigned inventory includes products that have been delivered to customers for which revenue recognition criteria have not been met.

The inventory also includes advance replacement units (valued at cost) provided by the Company to end-users to service defective products under warranty. The value of advance replacement units included in the inventory was $39 and $43, as of December 31, 2012 and 2011, respectively.

Property and Equipment – Property and equipment are stated at cost less accumulated depreciation and amortization. Expenditures that materially increase values or capacities or extend useful lives of property and equipment are capitalized. Routine maintenance, repairs, and renewal costs are expensed as incurred. Gains or losses from the sale, trade-in or retirement of property and equipment are recorded in current operations and the related book value of the property is removed from property and equipment accounts and the related accumulated depreciation and amortization accounts. Estimated useful lives are generally two to ten years. Depreciation and amortization are calculated over the estimated useful lives of the respective assets using the straight-line method. Leasehold improvement amortization is computed using the straight-line method over the shorter of the lease term or the estimated useful life of the related assets.

Goodwill and Intangible Assets – Intangible assets acquired in a purchase business combination are amortized over their useful lives unless these lives are determined to be indefinite. Intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, which are generally three to ten years. Goodwill represents the excess of costs over the fair value of net assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized. In accordance with the provisions of FASB ASC Topic 350, Intangibles – Goodwill and Other, the Company tests goodwill and other intangible assets with indefinite lives for impairment at least annually at the beginning of the fourth quarter, or sooner if a triggering event occurs suggesting possible impairment of the values of these assets. Impairment testing for these assets involves a two-step process. In the first step, the fair value of the reporting unit holding the assets is compared to its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, the second step of the impairment test is performed to measure the amount of the impairment loss, if any. In the second step, the fair value of the reporting unit is allocated to all of its assets and liabilities including intangible assets and liabilities not recorded on the balance sheet. The excess, if any, of the fair value of the reporting unit over the sum of the fair values allocated to identified assets and liabilities is the value of goodwill to be compared to its carrying value (See Note 3 – Business Combinations, Goodwill and Intangibles). ClearOne and all of its subsidiaries are considered as one reporting unit for this purpose.

Impairment of Long-Lived Assets – Long-lived assets, such as property, equipment, and definite-lived intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to estimated future undiscounted net cash flows of the related asset or group of assets over their remaining lives. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment charge is recognized for the amount by which the carrying amount exceeds the estimated fair value of the asset. Impairment of long-lived assets is assessed at the lowest levels for which there are identifiable cash flows that are independent of other groups of assets. The impairment of long-lived assets requires judgments and estimates. If circumstances change, such estimates could also change.

Revenue Recognition – Product revenue is recognized when (i) the products are shipped, (ii) persuasive evidence of an arrangement exists, (iii) the price is fixed and determinable, and (iv) collection is reasonably assured.

The Company provides a right of return on product sales to major distributors and other resellers under a product rotation program. Under this seldom used program, once a quarter, a distributor or reseller is allowed to return products purchased during the prior 180 days for a total value generally not exceeding 15% of the distributor's or reseller’s net purchases during the preceding quarter. The distributor or reseller is, however, required to place a new purchase order for an amount not less than the value of products returned under the stock rotation program. When products are returned, the associated revenue, cost of goods sold, inventory and accounts receivable originally recorded are reversed. When the new order is fulfilled, the revenue, associated cost of goods sold, inventory and accounts receivable are recorded and the product revenue is subject to the deferral analysis described below. In a small number of cases, the distributors are also permitted to return the products for other business reasons.

Revenue from product sales to distributors is not recognized until the return privilege has expired or until it can be determined with reasonable certainty that the return privilege has expired, which approximates when product is sold-through to customers of the Company’s distributors (dealers, system integrators, value-added resellers, and end-users) rather than when the product is initially shipped to a distributor. At each quarter-end, the Company evaluates the inventory in the channel through information provided by our distributors. The level of inventory in the channel will fluctuate up or down each quarter, based upon our distributors’ individual operations. Accordingly, at each quarter-end, the deferral for revenue and associated cost of goods sold are calculated and recorded based upon the actual channel inventory reported at quarter-end. Further, with respect to distributors and other channel partners not reporting the channel inventory, the revenue and associated cost of goods sold are deferred until the Company receives payment for the product sales made to such distributors or channel partners.

The amount of deferred cost of goods sold is included in consigned inventory.

The details of deferred revenue and associated cost of goods sold and gross profit are as follows:



	As of December 31,
	2012		2011
Deferred revenue	$	3,593	$	3,404
Deferred cost of goods sold	1,289		1,199
Deferred gross profit	$	2,304	$	2,205

The Company offers rebates and market development funds to certain of its distributors, dealers/resellers, and end-users based upon the volume of product purchased by them. The Company records rebates as a reduction of revenue in accordance with GAAP.

The Company provides, at its discretion, advance replacement units to end-users on defective units of certain products under warranty. Since the purpose of these units is not revenue generating, the Company tracks the units due from the end-user, valued at retail price, until the defective unit has been returned, but no receivable balance is maintained on the Company’s balance sheet.

Sales and Similar Taxes - Taxes collected from customers and remitted to government authorities are reported on a net basis and thus are excluded from revenues.

Shipping and Handling Costs – Shipping and handling billed to customers is recorded as revenue. Shipping and handling costs are included in cost of goods sold.

Warranty Costs – The Company accrues for warranty costs based on estimated warranty return rates and estimated costs to repair. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty returns, and repair cost. The Company reviews the adequacy of its recorded warranty accrual on a quarterly basis.

The details of changes in the Company’s warranty accrual are as follows:



	Year ended December 31,
	2012			2011
Balance at the beginning of year	$	467		$	363
Accruals/additions	443			439
Usage/claims	(525		)	(335		)
Balance at end of year	$	385		$	467

Advertising – The Company expenses advertising costs as incurred. Advertising expenses consist of trade shows, magazine advertisements, and other forms of media. Advertising expenses for the years ended December 31, 2012 and 2011, totaled $525 and $482, respectively, and are included under the caption “Sales and Marketing”.

Research and Product Development Costs – The Company expenses research and product development costs as incurred.

Income Taxes – The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carry-forwards. These temporary differences will result in deductible or taxable amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some or all of the deferred tax assets may not be realized. The Company evaluates the realizability of its net deferred tax assets on a quarterly basis and valuation allowances are provided, as necessary. Adjustments to the valuation allowance increase or decrease the Company’s income tax provision or benefit. As of December 31, 2012, the Company had a valuation allowance of $270 against capital loss carryovers, and state research and development credits.

The Company follows the provisions contained in ASC Topic 740, Income Taxes. The Company recognizes the tax benefit from an uncertain tax position only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.

Judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company’s tax returns are subject to audit by various tax authorities. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates.

Earnings Per Share – The following table sets forth the computation of basic and diluted earnings per common share:



	Year ended December 31,
	2012		2011
Numerator:
Net income	$	26,647	$	6,929
Denominator:
Basic weighted average shares	9,107,234		9,027,934
Dilutive common stock equivalents using treasury stock method	107,451		243,877
Diluted weighted average shares	9,214,685		9,271,811

Basic earnings per common share:	$	2.93	$	0.77
Diluted earnings per common share:	$	2.89	$	0.75

Weighted average options outstanding	1,197,487		1,137,219
Anti-dilutive options not included in the computation	681,820		893,343

Share-Based Payment – The Company applies FASB ASC Topic 718, Compensation – Stock Compensation. ASC Topic 718 establishes standards for the accounting of transactions in which an entity exchanges its equity instruments for goods or services. Primarily, ASC Topic 718 focuses on accounting for transactions in which an entity obtains employee services in share-based payment transactions. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments.

ASC Topic 718 requires the Company to measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the awards – the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service. Therefore, if an employee does not ultimately render the requisite service, the costs associated with the unvested options will not be recognized.

Effective July 1, 2005, the Company adopted guidelines included in ASC Topic 718 and its fair value recognition provisions using the modified prospective transition method. Under this transition method, stock-based compensation cost recognized after July 1, 2005 includes the straight-line basis compensation cost for (a) all share-based payments granted prior to July 1, 2005, but not yet vested, based on the grant date fair values used for the pro-forma disclosures under the original SFAS No. 123, and (b) all share-based payments granted or modified on or after July 1, 2005, in accordance with the provisions of ASC Topic 718. See Note 9 – Share-Based Payments for information about the Company’s various share-based compensation plans, the impact of adoption of ASC Topic 718, and the assumptions used to calculate the fair value of share-based compensation.

If assumptions change in the application of ASC Topic 718 in future periods, the stock-based compensation cost ultimately recorded under ASC Topic 718 may differ significantly from what was recorded in the current period.

Recent Accounting Pronouncements

After evaluating the recent accounting pronouncements through the date of this filing, the Company has concluded that application of them will have no material impact on the Company’s financial results.

Business Combination, Goodwill and Intangibles

12 Months Ended

Dec. 31, 2012

Business Combinations [Abstract]

Business Combinations, Goodwill and Intangibles Disclosure

Business Combinations, Goodwill and Intangibles

Acquisition of video conferencing business

On February 16, 2012, the Company completed the acquisition of the video conferencing business of Israel-based VCON Video Conferencing, Ltd. (“VCON”) through an asset purchase agreement. VCON was a pioneer in software based video conferencing solutions with product offerings that include group video conferencing endpoints, desktop video conferencing endpoints, video conferencing infrastructure solutions and software development kits. This acquisition and the combination of streaming and digital signage technologies will provide us with complementary technology opportunities allowing us to enter new growth markets.

Pursuant to the asset purchase agreement, the Company paid consideration of $4,632 in cash. The fair values of assets acquired and liabilities assumed are based on the information that was available during the measurement period of twelve months from the date of acquisition. The fair value of identified assets and liabilities acquired and goodwill is as follows:



Inventory	$	40
Property and equipment	34
Product warranty liability	(8		)
Proprietary software	2,247
Goodwill	2,319
	$	4,632

The goodwill of $2,319 is composed of expected synergies in utilizing VCON technology in ClearOne product offerings, reduction in future combined research and development expenses, and intangible assets including acquired workforce that do not qualify for separate recognition. This goodwill balance is not deductible for tax purposes.

Adjustments were made to the initial purchase price allocation and higher allocation to goodwill was made retroactive to the date of acquisition. The final fair value differed from the initial allocation as follows:



	Final Fair Value		Initial Allocation		Difference
Inventory	$	40	$	320	$	(280	)
Tradename	—		500		(500		)
Patents and technology	—		2,300		(2,300		)
Proprietary software	2,247		500		1,747
In-process research and development	—		200		(200		)
Goodwill	2,319		786		1,533

The decrease in purchase price allocation to intangible assets also resulted in a decrease in amortization charges retrospectively starting with the first quarter of 2012. The decrease in amortization charges in the three month periods ended March 31, June 30 and September 30, 2012, were $25, $75 and $75, respectively.

Unaudited Supplemental Pro Forma information


1)	Revenue and net loss from the video conferencing business from February 16, 2012 to December 31, 2012 were $1,319 and ($1,170), respectively.


2)	Revenue and earnings of the combined entity as though the business combination occurred as of January 1, 2011 were as follows:



	Year ended December 31,
	2012		2011
Revenue	$	46,630	$	47,583
Net income	26,603		6,046


3)	There were no material, nonrecurring pro forma adjustments directly attributable to the acquisition included in this supplemental Pro Forma information.

Acquisition of digital signage business

On September 6, 2011, the Company acquired substantially all the assets of MagicBox, Inc. through an asset purchase agreement.

MagicBox’s content management and control technology, along with its industry-leading database integration software complemented ClearOne's StreamNet systems. MagicBox had complementary products to ClearOne for a broad spectrum of applications. StreamNet technology delivers low-latency HD distribution over IP which to ClearOne fits well with MagicBox's content creation, scheduling, database integration and digital signage domain expertise.

Pursuant to the asset purchase agreement, the Company paid Magic Box, Inc. $980 in cash.

The fair value of identified assets and liabilities acquired and goodwill was as follows:



Accounts receivable	$	81
Inventory	117
Other current assets	12
Accrued expenses	(4		)
Property and equipment	9
Proprietary software	179
In-process research and development	159
Goodwill	427
	$	980

The goodwill of $427 is composed of expected synergies in utilizing MagicBox technology in ClearOne product offerings, reduction in future combined research and development expenses, and intangible assets including acquired workforce that do not qualify for separate recognition. The goodwill balance of $427 related to the MagicBox acquisition is deductible for tax purposes.

The Company incurred $327 and $167 towards acquisition related expenses, all of which are categorized under General and Administrative expenses in the Consolidated Statements of Operations for years ended December 31, 2012 and 2011, respectively.

Changes in the carrying amount of goodwill for the years ended December 31, 2012 and 2011 are as follows:



	2012		2011
Balance as of January 1,
Goodwill	$	1,153	$	726
Accumulated impairment losses	—		—
	1,153		726
Goodwill acquired during the year	2,319		427
Balance as of December 31,
Goodwill	3,472		1,153
Accumulated impairment losses	—		—
	$	3,472	$	1,153

Intangible Assets

Intangible assets as of December 31, 2012 and 2011 consisted of the following:



	Estimated	As of December 31,
	useful lives	2012			2011
Tradename	7 years	$	435		$	435
Patents and technological know-how	10 years	2,070			2,070
Proprietary software	3 to 15 years	2,961			394
In-process research and development	Indefinite	159			559
Other	5 years	49			49
		5,674			3,507
Accumulated amortization		(1,416		)	(817		)
		$	4,258		$	2,690

During the years ended December 31, 2012 and 2011, amortization of these intangible assets were $679 and $393, respectively.

The estimated future amortization expense of intangible assets is as follows:



Years ending December 31,
2013	$	533
2014	528
2015	483
2016	446
2017	357
Thereafter	1,752
	$	4,099

Inventories

12 Months Ended

Dec. 31, 2012

Inventory Disclosure [Abstract]

Inventories

Inventories, net of reserves, consisted of the following:



	As of December 31,
	2012		2011
Current:
Raw materials	$	734	$	1,091
Finished goods	10,139		11,474
	$	10,873	$	12,565
Long-term:
Raw materials	$	891	$	444
Finished goods	1,064		1,461
	$	1,955	$	1,905

Long-term inventory represents inventory held in excess of our current (next 12 months) requirements based on our recent sales and forecasted level of sales. We have developed programs to reduce the inventory to normal operating levels in the near future. We expect to sell the above inventory, net of reserves, at or above the stated cost and believe that no loss will be incurred on its sale.

Current finished goods include consigned inventory in the amounts of approximately $1,289 and $1,199 as of December 31, 2012 and 2011, respectively. Consigned inventory represents inventory at distributors and other customers where revenue recognition criteria have not been achieved.

The losses incurred on valuation of inventory at the lower of cost or market value and write-off of obsolete inventory amounted to $1,235 and $188 during the years ended December 31, 2012 and 2011, respectively.

Property and Equipment

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Property and Equipment

Major classifications of property and equipment and estimated useful lives were as follows:



	Estimated	As of December 31,
	useful lives	2012			2011
Office furniture and equipment	3 to 10 years	$	9,552		$	9,627
Leasehold improvements	1 to 6 years	1,413			1,392
Manufacturing and test equipment	2 to 10 years	2,673			2,590
		13,638			13,609
Accumulated depreciation and amortization		(11,930		)	(11,271		)
Property and equipment, net		$	1,708		$	2,338

Depreciation expense for the years ended December 31, 2012 and 2011 was $1,238 and $892, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Leases and Deferred Rent

12 Months Ended

Dec. 31, 2012

Leases [Abstract]

Leases and Deferred Rent

Rent expense is recognized on a straight-line basis over the period of the lease taking into account future rent escalation and holiday periods. Rent expense, was $973 and $762 for the years ended December 31, 2012 and 2011, respectively.

We currently occupy a 31,000 square-foot facility in Salt Lake City, Utah under the terms of an operating lease expiring in May 2016 which supports our principal administrative, sales, marketing, customer support, and research and product development facility.

We occupy a 40,000 square-foot warehouse in Salt Lake City, Utah under the terms of an operating lease expiring in December 2017 which serves as our primary inventory fulfillment and repair center. Our earlier lease for the 24,000 square-foot warehouse in Salt Lake City terminated in January 2012.

We currently lease a warehouse measuring approximately 5,600 square-feet in Hong Kong under an operating lease that expires in February 2014. This warehouse is maintained to support our partners and customers located in the Asia-Pacific region.

We also occupy a 11,100 square-foot facility in Austin, Texas under the terms of an operating lease expiring in August 2016, which serves as an additional facility to support our administrative, sales, marketing, customer support, and research and development activities.

We currently lease two facilities in Israel - a 4,700 square foot office facility in Hod Hasharon to primarily support our research and development activities and a 1,000 square foot warehouse in Tzur Yigal. The Hod Hasharon lease expires in December 2013, with options to extend from two to six years. The Tzur Yigal lease expires in August 2013.

Future minimum lease payments under non-cancellable operating leases with initial terms of one year or more are as follows:



Years ending December, 31,
2013	$	942
2014	909
2015	939
2016	575
2017	254
Thereafter	170
Total minimum lease payments	$	3,789

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References + Details

Accrued Liabilities

12 Months Ended

Dec. 31, 2012

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities consist of the following:



	As of December 31,
	2012		2011
Accrued salaries and other compensation	$	1,345	$	987
Other accrued liabilities	798		1,247
Total	$	2,143	$	2,234

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We establish contingent liabilities when a particular contingency is both probable and estimable. The Company is not aware of any pending claims or assessments, other than as described below, which may have a material adverse impact on the Company’s financial position or results of operations. Outsource Manufacturers. We have manufacturing agreements with electronics manufacturing service ("EMS") providers related to the outsourced manufacturing of our products. Certain manufacturing agreements establish annual volume commitments. We are also obligated to repurchase Company-forecasted but unused materials. The Company has non-cancellable, non-returnable, and long-lead time commitments with its EMS providers and certain suppliers for inventory components that will be used in production. The Company’s purchase commitments under such agreements is approximately $3,980 as of December 31, 2012. Unrecognized Tax Benefits. As further discussed in “Note 11 - Income taxes” of Notes to Consolidated Financial Statements, we have adopted the provisions of Accounting Standards Codification (“ASC”) 740. We had $2,384 of unrecognized tax benefits as of December 31, 2012. Due to the inherent uncertainty of the underlying tax positions, it is not possible to assign the liability as of December 31, 2012 to any particular year. Legal Proceedings. In addition to the legal proceedings described below, we are also involved from time to time in various claims and other legal proceedings which arise in the normal course of our business. Such matters are subject to many uncertainties and outcomes that are not predictable. However, based on the information available to us, we do not believe any such proceedings will have a material adverse effect on our business, results of operations, financial position, or liquidity, except as described below. Former Officer Indemnification In July 2007 and January 2008, the U.S. Attorney for the District of Utah indicted two of our former officers, Frances Flood (“Flood”) and Susie Strohm (“Strohm”), for allegedly causing us to issue materially misstated financial statements for our 2001 and 2002 fiscal years and for perjury in connection with the investigation by the SEC into the alleged misstatements. In December 2003, we entered into indemnification agreements with each former officer, requiring payment of all reasonable attorneys’ fees and costs incurred in defending against the charges in certain circumstances consistent with and subject to limitations imposed by our bylaws and applicable law. To date, we have paid approximately $3,390 in attorneys’ fees and costs to defend against the charges. In February 2009, Flood was convicted on nine counts and Strohm was convicted on one count. In June 2010, Flood was sentenced to four years in prison and three years of probation and Strohm was sentenced to two years of probation plus 150 hours of community service. In April 2011, the Tenth Circuit Court of Appeals in Denver affirmed Flood’s conviction, but has allowed her to assert in a collateral proceeding her claim that she received ineffective assistance of counsel. In November 2011, the Tenth Circuit affirmed Strohm’s perjury conviction as well. Flood: In August 2008, Flood filed a lawsuit in Federal District Court for the District of Utah, seeking to compel us to pay her attorneys’ fees and costs to defend against the criminal charges. The District Court issued a preliminary injunction in January 2009 requiring us to pay Flood’s criminal legal fees and costs through trial. Pursuant to the Court’s order, ClearOne paid approximately $373 to Flood’s attorneys and approximately $248 into the Court’s escrow. In July 2009, ClearOne asserted counterclaims against Flood and sought to recover $3,390 plus interest, costs and attorneys' fees. Tenth Circuit Court of Appeals issued a ruling in August 2010 vacating the District Court’s preliminary injunction on the grounds that it rested on a legally erroneous interpretation of Flood’s Employment Separation Agreement. ClearOne filed a motion in the United States District Court for the District of Utah seeking a return of the monies paid by ClearOne pursuant to the Court’s order. The District Court granted ClearOne’s motion in January 2012 for return of the $248 held in the Court’s escrow, but denied ClearOne’s motion with respect to the $373 paid to Flood’s attorneys. We filed a motion for summary judgment in August 2012 seeking dismissal of Flood's claims and judgment on our own claims against Flood. On or about March 1, 2013, Flood filed for bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Virginia. On March 19, 2013, the US District Court for the District of Utah issued an order staying this case. Strohm: Strohm and her counsel (“Dorsey”) filed a lawsuit in August 2008 in the Third Judicial District Court in Salt Lake City, Utah seeking to compel us to pay Strohm’s attorneys’ fees and costs to defend her against the criminal charges, plus interest, and for attorneys’ fees in connection with the civil action. ClearOne asserted counterclaims against Strohm in August 2009 seeking to recover $3,296 plus interest, costs and attorneys' fees. The District Court entered Judgment against ClearOne in June 2011 for $973 in fees and expenses in the criminal case, plus $362 in interest at 18% through February 1, 2011, which amounts were paid by ClearOne under protest to Dorsey on February 1, 2011. The Judgment also included $865 in civil case fees and expenses plus interest. ClearOne has posted a cash bond to cover the civil case fees and interest pending ClearOne’s appeal. ClearOne as well as Dorsey appealed against the judgment. The Utah Supreme Court heard oral arguments in September 2012 and has yet to express its decision. Theft of Intellectual Property and Related Cases In January 2007, we filed a lawsuit in the Third Judicial District Court, Salt Lake County, Utah against WideBand Solutions, Inc. (“WideBand”) and two of its principals, Dr. Jun Yang, and Andrew Chiang for misappropriation of our trade secrets (the “Trade Secret Case”). We also brought claims against Biamp Systems Corporation, Inc. (“Biamp”). The litigation eventually included other defendants, namely Lonny Bowers, Donald Bowers, David Sullivan, Dial HD and Versatile DSP. The matter was subsequently removed to federal court. The United States District Court, District of Utah, Central Division. The litigation involving various appeals filed by all parties extended to various state courts, federal courts and the federal appeal court. The court found the defendants guilty of willfully and maliciously misappropriating our trade secrets. Various awards were made in ClearOne's favor and against the defendants. Biamp settled with us and paid $3,860 after we won the appeal in the Tenth Circuit court. We also settled with one of the defendants and received $250 in February 2012. We have various awards against other defendants amounting to approximately $7,658 owed jointly and severally by them. While we intend to vigorously pursue collection of these outstanding awards, there can be no assurance that we will ultimately collect on all or a portion of these awards. ARS Special Arbitration We filed separate arbitration proceedings against UBS Financial Services, Inc. (“UBS”) and Morgan Stanley & Co., Inc. (“Morgan Stanley”) with the Financial Industry Regulatory Authority (“FINRA”) pursuant to the Auction Rate Securities (“ARS”) Special Arbitration Procedures established by FINRA. At the relevant time, we held an aggregate of $12,200 in ARS from UBS and Morgan Stanley, which turned out to be illiquid. In October 2008, we accepted offers to repurchase our $12,200 of ARS, at par value, from these two investment banks that sold them to us pursuant to the settlement agreements, but did not waive any claims for consequential damages. In both arbitration proceedings, we sought consequential damages as a result of our inability to access funds invested in ARS that UBS and Morgan Stanley sold to us, including losses with respect to a planned strategic business acquisition and related due diligence costs. No claims were asserted against us by UBS or Morgan Stanley. With respect to the Morgan Stanley arbitration, the arbitration panel denied our claims in their entirety. With respect to the UBS arbitration under a different panel, we settled the dispute for a total amount of $45 million in December 2012. The settlement award was subject to a 15% contingency legal fee of $6.75 million which was also paid in December 2012 to our litigation counsel. Conclusion These legal proceedings are subject to all of the risks and uncertainties of legal proceedings and there can be no assurance as to the probable result of the legal proceedings. The Company believes it is adequately accrued for the aforementioned contingent liabilities. While we intend to defend ourselves in the above matters vigorously and diligently, there exists the possibility of adverse outcomes that we estimate could be up to $1,000 over and above amounts already provided for. If these adverse outcomes were to occur, our financial position, results of operations and cash flows could be negatively affected materially for the period in which the adverse outcomes are known.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Share-Based Payments

12 Months Ended

Dec. 31, 2012

Shareholders' Equity and Share-based Payments [Abstract]

Share-Based Payments

The Company’s share-based compensation primarily consists of two share-based compensation plans, one which was replaced on November 20, 2007, and one which became active on the same date. The plans are described below.

The Company’s 1998 Incentive Plan (the “1998 Plan”) had shares of common stock available for issuance to employees and directors. Through December 1999, 1,066,000 options were granted that would cliff vest after 9.8 years; however, such vesting was accelerated for 637,089 of these options upon meeting certain earnings per share goals through the fiscal year ended June 30, 2003. Subsequent to December 1999 and through June 2002, 1,248,250 options were granted that would cliff vest after 6.0 years; however, such vesting was accelerated for 300,494 of these options upon meeting certain earnings per share goals through the fiscal year ended June 30, 2005.

The Company also has a 2007 Equity Incentive Plan (the “2007 Plan”). Provisions of the 2007 Plan include the granting of up to 1,000,000 incentive and non-qualified stock options, stock appreciation rights, restricted stock and restricted stock units. Options may be granted to employees, officers, non-employee directors and other service providers and may be granted upon such terms as the Compensation Committee of the Board of Directors determines in their sole discretion. Under both plans, one new share is issued for each stock option exercised.

Of the options granted subsequent to June 2002, all vesting schedules are based on 3 or 4-year vesting schedules, with either one-third or one-fourth vesting on the first anniversary and the remaining options vesting ratably over the remainder of the vesting term. Generally, directors and officers have 3-year vesting schedules and all other employees have 4-year vesting schedules. Additionally, in the event of a change in control or the occurrence of a corporate transaction, the Company’s Board of Directors has the authority to elect that all unvested options shall vest and become exercisable immediately prior to the event or closing of the transaction. All options outstanding as of December 31, 2012 had contractual lives of ten years. Under the 1998 Plan, 2,500,000 shares were authorized for grant. As of December 31, 2012, there were 578,615 options outstanding under the 1998 Plan, which includes the cliff vesting and 3 or 4-year vesting options discussed above. As of December 31, 2012, there were 558,668 options outstanding under the 2007 Plan. As of December 31, 2012, the 2007 Plan had 357,410 authorized unissued options, while there were no options remaining that could be granted under the 1998 Plan.

The Company also has an Employee Stock Purchase Plan (“ESPP”). Employees can purchase common stock through payroll deductions of up to 10 percent of their base pay. Amounts deducted and accumulated by the employees are used to purchase shares of common stock on or about the first day of each month. The Company contributes to the account of the employee one share of common stock for every nine shares purchased by the employee under the ESPP.

The Company uses judgment in determining the fair value of the share-based payments on the date of grant using an option-pricing model with assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the risk-free interest rate of the awards, the expected life of the awards, the expected volatility over the term of the awards, and the expected dividends of the awards. The Company uses the Black-Scholes option pricing model to determine the fair value of share-based payments granted under the guidelines of ASC Topic 718.

In applying the Black-Scholes methodology to the options granted, the Company used the following assumptions:



	Year ended December 31,
	2012	2011
Risk-free interest rate, average	1.3%	1.6%
Expected option life, average	7.2 years	7.15 years
Expected price volatility, average	51.4%	51.9%
Expected dividend yield	—%	—%

The risk-free interest rate is determined using the U.S. Treasury rate in effect as of the date of the grant, based on the expected life of the stock option. The expected life of the stock option is determined using historical data.

The expected price volatility is determined using a weighted average of daily historical volatility of the Company’s stock price over the corresponding expected option life. The Company does not currently intend to distribute any dividend payments to shareholders.

Under guidelines of ASC Topic 718, the Company recognizes compensation cost net of an expected forfeiture rate and recognized the associated compensation cost for only those awards expected to vest on a straight-line basis over the underlying requisite service period. The Company estimated the forfeiture rates based on its historical experience and expectations about future forfeitures.

The following table shows the stock option activity:



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2011	1,160,933		$	4.50
Granted	187,000		4.06
Expired and canceled	(12,440	)	4.93
Forfeited prior to vesting	(38,341	)	4.23
Exercised	(159,869	)	3.07
Outstanding at December 31, 2012	1,137,283		$	4.63	5.47	$	256
Vested and expected to vest at December 31, 2012	1,137,283		$	4.63	5.47	$	256
Vested at December 31, 2012	853,350		$	4.71	4.26	$	232

The weighted average per share fair value of options granted during the years ending December 31, 2012 and 2011 was $2.16 and $2.85 respectively. The total intrinsic value of options exercised during the years ended December 31, 2012 and 2011 was $152 and $411, respectively.

The total pre-tax compensation cost related to stock options recognized during the years ended December 31, 2012 and 2011 was $241 and $187, respectively. Tax benefit from compensation cost related to stock options during the years ended December 31, 2012 and 2011 was $18 and $27, respectively. As of December 31, 2012, the total compensation cost related to stock options not yet recognized and before the effect of any forfeitures was $593, which is expected to be recognized over approximately the next 2.8 years on a straight-line basis.

Stock Repurchase Program

In May 2012, our Board of Directors authorized a stock repurchase program to purchase the Company's common stock in the open market. A total of 94,744 shares costing $384 have been purchased under this program during the year ended December 31, 2012. No shares were purchased during the year ended December 31, 2011. The cost of shares purchased is recorded as a reduction to shareholders' equity. As of December 31, 2012, the Company was authorized to purchase additional $2,616 worth of shares in the open market.

Significant Customers

12 Months Ended

Dec. 31, 2012

Risks and Uncertainties [Abstract]

Significant Customers

Sales to significant customers that represented more than 10 percent of total revenues are as follows:



	Year ended December 31,
	2012		2011
Customer A	17.5	%	19.2	%
Customer B	*		10.9	%
Total	17.5	%	30.1	%

* Sales didn't exceed 10% of the revenue.

The following table summarizes the percentage of total gross accounts receivable from significant customers:



	As of December 31,
	2012		2011
Customer A	20.3	%	25.0	%
Customer B	*		14.4	%
Total	20.3	%	39.4	%

These customers facilitate product sales to a large number of end-users, none of which is known to account for more than 10 percent of the Company’s revenue from product sales. Nevertheless, the loss of one or more of these customers could reduce revenue and have a material adverse effect on the Company’s business and results of operations.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6327-108592

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13531-108611

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6404-108592

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
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-Name Statement of Financial Accounting Standard (FAS)
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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Income Taxes

Consolidated income before taxes for domestic and foreign operations consisted of the following:



	Year ended December 31,
	2012			2011
Domestic	$	42,990		$	10,318
Foreign	(435		)	278
Total	$	42,555		$	10,596

The Company's (provision) for income taxes consisted of the following:



	Year ended December 31,
	2012			2011
Current:
Federal	$	(16,910	)	$	(2,106	)
State	(381		)	(99		)
Foreign	(74		)	(46		)
Total current	(17,365		)	(2,251		)
Deferred:
Federal	455			(1,271		)
State	46			(23		)
Foreign	160			—
	661			(1,294		)
Change in valuation allowance	796			(122		)
Total deferred	1,457			(1,416		)
(Provision) for income taxes	$	(15,908	)	$	(3,667	)

The income tax (provision) differs from that computed at the federal statutory corporate income tax rate as follows:



	Year ended December 31,
	2012			2011
Tax (provision) at Federal statutory rate	$	(14,894	)	$	(3,603	)
State income tax (provision), net of federal benefit	(1,476		)	(162		)
Research and development tax credits	357			316
Foreign earnings or losses taxed at different rates	(136		)	48
Other	(555		)	(266		)
Change in valuation allowance	796			—
Tax (provision)	$	(15,908	)	$	(3,667	)

The tax effects of significant temporary differences representing net deferred tax assets and liabilities consisted of the following:



	As of December 31, 2012						As of December 31, 2011
	Current			Long-term			Current		Long-term
Deferred revenue	$	856		$	—		$	860	$	—
Basis difference in intangible assets	—			159			—		(580		)
Inventory reserve	1,871			—			1,598		—
Net operating loss carryforwards	—			667			—		364
Research and development tax credits	—			248			—		1,033
Accrued expenses	140			—			182		—
Stock-based compensation	—			684			—		742
Allowance for sales returns and doubtful accounts	20			—			56		—
Difference in property and equipment basis	—			(475		)	—		(646		)
Other	462			(19		)	291		52
Total net deferred income tax asset	3,349			1,264			2,987		965
Less: Valuation allowance	(201		)	(69		)	—		(1,066		)
Net deferred income tax asset (liability)	$	3,148		$	1,195		$	2,987	$	(101	)

The Company has not provided for U.S. deferred income taxes or foreign withholding taxes on undistributed earnings of its non-U.S. subsidiaries since these earnings are intended to be reinvested indefinitely, in accordance with guidelines contained in ASC Topic 740, Accounting for Income Taxes. It is not practical to estimate the amount of additional taxes that might be payable on such undistributed earnings

In accordance with ASC Topic 740, the Company analyzed its valuation allowance at December 31, 2012 and determined that, based upon available evidence, it is more likely than not that certain of its deferred tax assets may not be realized and, as such, has established a valuation allowance against certain deferred tax assets. These deferred tax assets include capital loss carryovers and state research and development credits.

The statute allowing a federal research and development credit (the “R&D Credit”) expired for years beginning after December 31, 2011. Congress renewed the R&D Credit for the years 2012 and 2013 with the American Taxpayer Relief Act of 2012 (the “Act”). Accounting guidance requires that the effects of a change in tax law be recognized in the period that includes the enactment date. For U.S. federal tax purposes, the enactment date of the Act is the date the President signs the bill into law. The President did not sign the Act into law until January 2, 2013. Therefore, the entire benefit of the R&D credit for 2012 will be recognized in the first quarter of 2013, the reporting period that includes the enactment date. The benefit for the 2013 R&D Credit will be recognized for interim reporting as a part of the forecasted annual effective tax rate. In prior years, the benefit from the R&D Credit has ranged from $288 to $316.

As of December 31, 2012, the Company had state research credit carryforwards of $304, which will begin to expire in 2024 if not utilized. The Company has federal net operating loss (“NOL”) carryforwards of approximately $1,489 (pre-tax) and Hong Kong NOL carryforwards of approximately $3,464 (pre-tax). The federal NOL carryforwards will begin to expire in 2025. The Hong Kong NOL carryforwards do not expire.

Effective July 1, 2007, the Company adopted the accounting standards related to uncertain tax positions. This standard requires that tax positions be assessed using a two-step process. A tax position is recognized if it meets a "more likely than not" threshold, and is measured at the largest amount of benefit that is greater than 50 percent likely of being realized. Uncertain tax positions must be reviewed at each balance sheet date. Liabilities recorded as a result of this analysis must generally be recorded separately from any current or deferred income tax accounts.

The total amount of unrecognized tax benefits at December 31, 2012 and 2011, that would favorably impact our effective tax rate if recognized was $802 and $523, respectively. As of December 31, 2012 and 2011, we accrued $56 and $24, respectively, in interest and penalties related to unrecognized tax benefits. We account for interest expense and penalties for unrecognized tax benefits as part of our income tax provision.

Although we believe our estimates are reasonable, we can make no assurance that the final tax outcome of these matters will not be different from that which we have reflected in our historical income tax provisions and accruals. Such difference could have a material impact on our income tax provision and operating results in the period in which we make such determination.

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows:



	Year ended December 31,
	2012			2011
Balance - beginning of year	$	523		$	404
Additions based on tax positions related to the current year	795			229
Additions for tax positions of prior years	1,082			—
Reductions for tax positions of prior years	—			(88		)
Settlements	—			—
Lapse in statutes of limitations	(16		)	(22		)
Unrecognized tax benefits, ending balance	$	2,384		$	523

The Company’s U.S. federal income tax returns for 2007 through 2012 are subject to examination. The Company also files in various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to federal, state, or non-U.S. income tax examinations by tax authorities for years prior to 2009. The Company completed its audit by the Internal Revenue Service (“IRS”) for its 2006 tax return in 2010. As a result of the audit by the IRS, there were no material adjustments made to the Company’s tax return.

The Inland Revenue Department of Hong Kong, a Special Administrative Region (the “IRD”), commenced an examination of the Company's Hong Kong profits tax returns for 2009 through 2011 in the fourth quarter of 2012 that is anticipated to be completed by the end of 2013. The Company does not anticipate the examination will result in a material change to its financial position. During the next twelve months, the Company anticipates that the Act may result in an increase to its unrecognized tax benefits. No significant reduction from the lapse of statutes of limitations is expected to result.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Geographic Sales Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Geographic Sales Information

The United States was the only country to contribute more than 10 percent of total revenues in each fiscal year. The Company’s revenues are substantially denominated in U.S. dollars and are summarized geographically as follows:



	Year ended December 31,
	2012		2011
United States	$	30,312	$	29,220
All other countries	16,105		16,847
Total	$	46,417	$	46,067

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2012
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company evaluated its Consolidated Financial Statements as of and for the year ended December 31, 2012 for subsequent events through the date the financial statements were issued. The Company is not aware of any other subsequent events which would require recognition or disclosure in the financial statements.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2012
Accounting Policies [Abstract]
Consolidation	Consolidation – These consolidated financial statements include the financial statements of ClearOne, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.
Use of Estimates	Use of Estimates – The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting periods. Key estimates in the accompanying consolidated financial statements include, among others, revenue recognition, allowances for doubtful accounts and product returns, provisions for obsolete inventory, valuation of long-lived assets, and deferred income tax asset valuation allowances. Actual results could differ materially from these estimates.
Foreign Currency Translation	Foreign Currency Translation – The U.S. Dollar is used as the functional currency for our subsidiaries in the United Kingdom, Hong Kong and Israel. However, the Company's foreign subsidiaries have certain assets, liabilities and cash flows that are subject to foreign currency risk. Gains or losses arising on remeasurement of foreign currency denominated assets and liabilities are not significant and are included in the Company's Statement of Operations under "Other income, net".
Concentration Risk	Concentration Risk – We depend on an outsourced manufacturing strategy for our products. We outsource the manufacture of all of our products to third-party manufacturers located in both the U.S. and Asia. If any of these manufacturers experience difficulties in obtaining sufficient supplies of components, component prices significantly exceeding the anticipated costs, an interruption in their operations, or otherwise suffer capacity constraints, we would experience a delay in shipping these products which would have a negative impact on our revenues. Should there be any disruption in services due to natural disaster, economic or political difficulties, transportation restrictions, acts of terror, quarantine or other restrictions associated with infectious diseases, or other similar events, or any other reason, such disruption would have a material adverse effect on our business. Operating in the international environment exposes us to certain inherent risks, including unexpected changes in regulatory requirements and tariffs, and potentially adverse tax consequences, which could materially affect our results of operations. Currently, we have no second source of manufacturing for a portion of our products.
Cash Equivalents	Cash Equivalents – The Company considers all highly-liquid investments with a maturity of three months or less, when purchased, to be cash equivalents. The Company places its temporary cash investments with high-quality financial institutions. At times, such investments may be in excess of the Federal Deposit Insurance Corporation insurance limits.
Accounts Receivable	Accounts Receivable – Accounts receivable are recorded at the invoiced amount. Generally, credit is granted to customers, on a short-term basis without requiring collateral, and as such these accounts receivable do not bear interest, although a finance charge may be applied to such receivables that are past due. The Company extends credit to customers who it believes have the financial strength to pay. The Company has in place credit policies and procedures, an approval process for sales returns and credit memos, and processes for managing and monitoring channel inventory levels. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. Management regularly analyzes accounts receivable including current aging, historical write-off experience, customer concentrations, customer creditworthiness, and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. We review customer accounts quarterly by first assessing accounts with aging over a specific duration and balance over a specific amount. We review all other balances on a pooled basis based on past collection experience. Accounts identified in our customer-level review as exceeding certain thresholds are assessed for potential allowance adjustment if we conclude the financial condition of that customer has deteriorated, adversely affecting their ability to make payments. Delinquent account balances are written off if the Company determines that the likelihood of collection is not probable. If the assumptions that are used to determine the allowance for doubtful accounts change, the Company may have to provide for a greater level of expense in future periods or reverse amounts provided in prior periods.
Inventories	Inventories – Inventories are valued at the lower of cost or market, with cost computed on a first-in, first-out (“FIFO”) basis. In addition to the price of the product purchased, the cost of inventory includes the Company’s internal manufacturing costs, including warehousing, engineering, material purchasing, quality and product planning expenses and applicable overhead, not in excess of estimated realizable value. Consideration is given to obsolescence, excessive levels, deterioration, direct selling expenses, and other factors in evaluating net realizable value. Consigned inventory includes products that have been delivered to customers for which revenue recognition criteria have not been met. The inventory also includes advance replacement units (valued at cost) provided by the Company to end-users to service defective products under warranty. The value of advance replacement units included in the inventory was $39 and $43, as of December 31, 2012 and 2011, respectively.
Property and Equipment	Property and Equipment – Property and equipment are stated at cost less accumulated depreciation and amortization. Expenditures that materially increase values or capacities or extend useful lives of property and equipment are capitalized. Routine maintenance, repairs, and renewal costs are expensed as incurred. Gains or losses from the sale, trade-in or retirement of property and equipment are recorded in current operations and the related book value of the property is removed from property and equipment accounts and the related accumulated depreciation and amortization accounts. Estimated useful lives are generally two to ten years. Depreciation and amortization are calculated over the estimated useful lives of the respective assets using the straight-line method. Leasehold improvement amortization is computed using the straight-line method over the shorter of the lease term or the estimated useful life of the related assets.
Goodwill and Intangible Assets	Goodwill and Intangible Assets – Intangible assets acquired in a purchase business combination are amortized over their useful lives unless these lives are determined to be indefinite. Intangible assets are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, which are generally three to ten years. Goodwill represents the excess of costs over the fair value of net assets of businesses acquired. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized. In accordance with the provisions of FASB ASC Topic 350, Intangibles – Goodwill and Other, the Company tests goodwill and other intangible assets with indefinite lives for impairment at least annually at the beginning of the fourth quarter, or sooner if a triggering event occurs suggesting possible impairment of the values of these assets. Impairment testing for these assets involves a two-step process. In the first step, the fair value of the reporting unit holding the assets is compared to its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, the second step of the impairment test is performed to measure the amount of the impairment loss, if any. In the second step, the fair value of the reporting unit is allocated to all of its assets and liabilities including intangible assets and liabilities not recorded on the balance sheet. The excess, if any, of the fair value of the reporting unit over the sum of the fair values allocated to identified assets and liabilities is the value of goodwill to be compared to its carrying value (See Note 3 – Business Combinations, Goodwill and Intangibles). ClearOne and all of its subsidiaries are considered as one reporting unit for this purpose.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets – Long-lived assets, such as property, equipment, and definite-lived intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to estimated future undiscounted net cash flows of the related asset or group of assets over their remaining lives. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment charge is recognized for the amount by which the carrying amount exceeds the estimated fair value of the asset. Impairment of long-lived assets is assessed at the lowest levels for which there are identifiable cash flows that are independent of other groups of assets. The impairment of long-lived assets requires judgments and estimates. If circumstances change, such estimates could also change.
Revenue Recognition	Revenue Recognition – Product revenue is recognized when (i) the products are shipped, (ii) persuasive evidence of an arrangement exists, (iii) the price is fixed and determinable, and (iv) collection is reasonably assured. The Company provides a right of return on product sales to major distributors and other resellers under a product rotation program. Under this seldom used program, once a quarter, a distributor or reseller is allowed to return products purchased during the prior 180 days for a total value generally not exceeding 15% of the distributor's or reseller’s net purchases during the preceding quarter. The distributor or reseller is, however, required to place a new purchase order for an amount not less than the value of products returned under the stock rotation program. When products are returned, the associated revenue, cost of goods sold, inventory and accounts receivable originally recorded are reversed. When the new order is fulfilled, the revenue, associated cost of goods sold, inventory and accounts receivable are recorded and the product revenue is subject to the deferral analysis described below. In a small number of cases, the distributors are also permitted to return the products for other business reasons. Revenue from product sales to distributors is not recognized until the return privilege has expired or until it can be determined with reasonable certainty that the return privilege has expired, which approximates when product is sold-through to customers of the Company’s distributors (dealers, system integrators, value-added resellers, and end-users) rather than when the product is initially shipped to a distributor. At each quarter-end, the Company evaluates the inventory in the channel through information provided by our distributors. The level of inventory in the channel will fluctuate up or down each quarter, based upon our distributors’ individual operations. Accordingly, at each quarter-end, the deferral for revenue and associated cost of goods sold are calculated and recorded based upon the actual channel inventory reported at quarter-end. Further, with respect to distributors and other channel partners not reporting the channel inventory, the revenue and associated cost of goods sold are deferred until the Company receives payment for the product sales made to such distributors or channel partners. The amount of deferred cost of goods sold is included in consigned inventory. The Company offers rebates and market development funds to certain of its distributors, dealers/resellers, and end-users based upon the volume of product purchased by them. The Company records rebates as a reduction of revenue in accordance with GAAP. The Company provides, at its discretion, advance replacement units to end-users on defective units of certain products under warranty. Since the purpose of these units is not revenue generating, the Company tracks the units due from the end-user, valued at retail price, until the defective unit has been returned, but no receivable balance is maintained on the Company’s balance sheet.
Sales and Similar Taxes	Sales and Similar Taxes - Taxes collected from customers and remitted to government authorities are reported on a net basis and thus are excluded from revenues.
Shipping and Handling Costs	Shipping and Handling Costs – Shipping and handling billed to customers is recorded as revenue. Shipping and handling costs are included in cost of goods sold.
Warranty Costs	Warranty Costs – The Company accrues for warranty costs based on estimated warranty return rates and estimated costs to repair. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty returns, and repair cost. The Company reviews the adequacy of its recorded warranty accrual on a quarterly basis.
Advertising	Advertising – The Company expenses advertising costs as incurred. Advertising expenses consist of trade shows, magazine advertisements, and other forms of media.
Research and Product Development Costs	Research and Product Development Costs – The Company expenses research and product development costs as incurred.
Income Taxes	Income Taxes – The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carry-forwards. These temporary differences will result in deductible or taxable amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some or all of the deferred tax assets may not be realized. The Company evaluates the realizability of its net deferred tax assets on a quarterly basis and valuation allowances are provided, as necessary. Adjustments to the valuation allowance increase or decrease the Company’s income tax provision or benefit. As of December 31, 2012, the Company had a valuation allowance of $270 against capital loss carryovers, and state research and development credits. The Company follows the provisions contained in ASC Topic 740, Income Taxes. The Company recognizes the tax benefit from an uncertain tax position only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Judgment is required in determining the provision for income taxes and related accruals, deferred tax assets and liabilities. In the ordinary course of business, there are transactions and calculations where the ultimate tax outcome is uncertain. Additionally, the Company’s tax returns are subject to audit by various tax authorities. Although the Company believes that its estimates are reasonable, actual results could differ from these estimates.
Share-Based Payment	Share-Based Payment – The Company applies FASB ASC Topic 718, Compensation – Stock Compensation. ASC Topic 718 establishes standards for the accounting of transactions in which an entity exchanges its equity instruments for goods or services. Primarily, ASC Topic 718 focuses on accounting for transactions in which an entity obtains employee services in share-based payment transactions. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. ASC Topic 718 requires the Company to measure the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the awards – the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service. Therefore, if an employee does not ultimately render the requisite service, the costs associated with the unvested options will not be recognized. Effective July 1, 2005, the Company adopted guidelines included in ASC Topic 718 and its fair value recognition provisions using the modified prospective transition method. Under this transition method, stock-based compensation cost recognized after July 1, 2005 includes the straight-line basis compensation cost for (a) all share-based payments granted prior to July 1, 2005, but not yet vested, based on the grant date fair values used for the pro-forma disclosures under the original SFAS No. 123, and (b) all share-based payments granted or modified on or after July 1, 2005, in accordance with the provisions of ASC Topic 718. See Note 9 – Share-Based Payments for information about the Company’s various share-based compensation plans, the impact of adoption of ASC Topic 718, and the assumptions used to calculate the fair value of share-based compensation. If assumptions change in the application of ASC Topic 718 in future periods, the stock-based compensation cost ultimately recorded under ASC Topic 718 may differ significantly from what was recorded in the current period.
Recent Accounting Pronouncements	Recent Accounting Pronouncements After evaluating the recent accounting pronouncements through the date of this filing, the Company has concluded that application of them will have no material impact on the Company’s financial results.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Allowance for Doubtful Accounts Activity

The Company’s allowance for doubtful accounts activity for the years ended December 31, 2012 and 2011 was as follows:



	Year ended December 31,
	2012			2011
Balance at beginning of the year	$	149		$	206
Charged to costs and expenses	25			312
Deductions	(114		)	(369		)
Balance at end of the year	$	60		$	149

Deferred Revenue and Associated Cost of Goods Sold and Gross Profit

The details of deferred revenue and associated cost of goods sold and gross profit are as follows:



	As of December 31,
	2012		2011
Deferred revenue	$	3,593	$	3,404
Deferred cost of goods sold	1,289		1,199
Deferred gross profit	$	2,304	$	2,205

Changes in Warranty Accrual

The details of changes in the Company’s warranty accrual are as follows:



	Year ended December 31,
	2012			2011
Balance at the beginning of year	$	467		$	363
Accruals/additions	443			439
Usage/claims	(525		)	(335		)
Balance at end of year	$	385		$	467

Earnings Per Share

Earnings Per Share – The following table sets forth the computation of basic and diluted earnings per common share:



	Year ended December 31,
	2012		2011
Numerator:
Net income	$	26,647	$	6,929
Denominator:
Basic weighted average shares	9,107,234		9,027,934
Dilutive common stock equivalents using treasury stock method	107,451		243,877
Diluted weighted average shares	9,214,685		9,271,811

Basic earnings per common share:	$	2.93	$	0.77
Diluted earnings per common share:	$	2.89	$	0.75

Weighted average options outstanding	1,197,487		1,137,219
Anti-dilutive options not included in the computation	681,820		893,343

Business Combination, Goodwill and Intangibles (Tables)

12 Months Ended

Dec. 31, 2012

Business Acquisition

Schedule of Goodwill

hanges in the carrying amount of goodwill for the years ended December 31, 2012 and 2011 are as follows:



	2012		2011
Balance as of January 1,
Goodwill	$	1,153	$	726
Accumulated impairment losses	—		—
	1,153		726
Goodwill acquired during the year	2,319		427
Balance as of December 31,
Goodwill	3,472		1,153
Accumulated impairment losses	—		—
	$	3,472	$	1,153

Schedule of Finite-Lived and Indefinite-Lived Intangible Assets

Intangible assets as of December 31, 2012 and 2011 consisted of the following:



	Estimated	As of December 31,
	useful lives	2012			2011
Tradename	7 years	$	435		$	435
Patents and technological know-how	10 years	2,070			2,070
Proprietary software	3 to 15 years	2,961			394
In-process research and development	Indefinite	159			559
Other	5 years	49			49
		5,674			3,507
Accumulated amortization		(1,416		)	(817		)
		$	4,258		$	2,690

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated future amortization expense of intangible assets is as follows:



Years ending December 31,
2013	$	533
2014	528
2015	483
2016	446
2017	357
Thereafter	1,752
	$	4,099

VCON Video Conferencing, Ltd. (VCON)

Business Acquisition

Schedule of Fair Value of Identified Assets and Liabilities Acquired and Goodwill

The fair value of identified assets and liabilities acquired and goodwill is as follows:



Inventory	$	40
Property and equipment	34
Product warranty liability	(8		)
Proprietary software	2,247
Goodwill	2,319
	$	4,632

Schedule of Purchase Price Allocation, Adjustments Made Retroactive to Date of Acquisition

The final fair value differed from the initial allocation as follows:



	Final Fair Value		Initial Allocation		Difference
Inventory	$	40	$	320	$	(280	)
Tradename	—		500		(500		)
Patents and technology	—		2,300		(2,300		)
Proprietary software	2,247		500		1,747
In-process research and development	—		200		(200		)
Goodwill	2,319		786		1,533

Business Acquisition, Pro Forma Information

Revenue and earnings of the combined entity as though the business combination occurred as of January 1, 2011 were as follows:



	Year ended December 31,
	2012		2011
Revenue	$	46,630	$	47,583
Net income	26,603		6,046

MagicBox Inc.

Business Acquisition

Schedule of Fair Value of Identified Assets and Liabilities Acquired and Goodwill

The fair value of identified assets and liabilities acquired and goodwill was as follows:



Accounts receivable	$	81
Inventory	117
Other current assets	12
Accrued expenses	(4		)
Property and equipment	9
Proprietary software	179
In-process research and development	159
Goodwill	427
	$	980

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References + Details

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References + Details

Inventories (Tables)

12 Months Ended

Dec. 31, 2012

Inventory Disclosure [Abstract]

Schedule of inventory, net of reserves

Inventories, net of reserves, consisted of the following:



	As of December 31,
	2012		2011
Current:
Raw materials	$	734	$	1,091
Finished goods	10,139		11,474
	$	10,873	$	12,565
Long-term:
Raw materials	$	891	$	444
Finished goods	1,064		1,461
	$	1,955	$	1,905

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Major classifications of property and equipment and estimated useful lives were as follows:



	Estimated	As of December 31,
	useful lives	2012			2011
Office furniture and equipment	3 to 10 years	$	9,552		$	9,627
Leasehold improvements	1 to 6 years	1,413			1,392
Manufacturing and test equipment	2 to 10 years	2,673			2,590
		13,638			13,609
Accumulated depreciation and amortization		(11,930		)	(11,271		)
Property and equipment, net		$	1,708		$	2,338

Leases and Deferred Rent (Tables)

12 Months Ended

Dec. 31, 2012

Leases [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

Future minimum lease payments under non-cancellable operating leases with initial terms of one year or more are as follows:



Years ending December, 31,
2013	$	942
2014	909
2015	939
2016	575
2017	254
Thereafter	170
Total minimum lease payments	$	3,789

Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2012

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consist of the following:



	As of December 31,
	2012		2011
Accrued salaries and other compensation	$	1,345	$	987
Other accrued liabilities	798		1,247
Total	$	2,143	$	2,234

Share-Based Payments (Tables)

12 Months Ended

Dec. 31, 2012

Shareholders' Equity and Share-based Payments [Abstract]

Share-based Compensation - Black-Scholes assumptions

In applying the Black-Scholes methodology to the options granted, the Company used the following assumptions:



	Year ended December 31,
	2012	2011
Risk-free interest rate, average	1.3%	1.6%
Expected option life, average	7.2 years	7.15 years
Expected price volatility, average	51.4%	51.9%
Expected dividend yield	—%	—%

Schedule of Share-based Compensation, Stock Options, Activity

The following table shows the stock option activity:



	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2011	1,160,933		$	4.50
Granted	187,000		4.06
Expired and canceled	(12,440	)	4.93
Forfeited prior to vesting	(38,341	)	4.23
Exercised	(159,869	)	3.07
Outstanding at December 31, 2012	1,137,283		$	4.63	5.47	$	256
Vested and expected to vest at December 31, 2012	1,137,283		$	4.63	5.47	$	256
Vested at December 31, 2012	853,350		$	4.71	4.26	$	232

Schedule of Nonvested Share Activity

Significant Customers (Tables)

12 Months Ended

Dec. 31, 2012

Risks and Uncertainties [Abstract]

Schedules of Concentration of Risk, by Risk Factor

Sales to significant customers that represented more than 10 percent of total revenues are as follows:



	Year ended December 31,
	2012		2011
Customer A	17.5	%	19.2	%
Customer B	*		10.9	%
Total	17.5	%	30.1	%

The following table summarizes the percentage of total gross accounts receivable from significant customers:



	As of December 31,
	2012		2011
Customer A	20.3	%	25.0	%
Customer B	*		14.4	%
Total	20.3	%	39.4	%

- Definition

Tabular disclosure of the nature of a concentration, a benchmark to which it is compared, and the percentage that the risk is to the benchmark.

+ References + Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

ncome before taxes for domestic and foreign operations consisted of the following:



	Year ended December 31,
	2012			2011
Domestic	$	42,990		$	10,318
Foreign	(435		)	278
Total	$	42,555		$	10,596

Schedule of Components of Income Tax Expense (Benefit)

The Company's (provision) for income taxes consisted of the following:



	Year ended December 31,
	2012			2011
Current:
Federal	$	(16,910	)	$	(2,106	)
State	(381		)	(99		)
Foreign	(74		)	(46		)
Total current	(17,365		)	(2,251		)
Deferred:
Federal	455			(1,271		)
State	46			(23		)
Foreign	160			—
	661			(1,294		)
Change in valuation allowance	796			(122		)
Total deferred	1,457			(1,416		)
(Provision) for income taxes	$	(15,908	)	$	(3,667	)

Schedule of Effective Income Tax Rate Reconciliation



	Year ended December 31,
	2012			2011
Tax (provision) at Federal statutory rate	$	(14,894	)	$	(3,603	)
State income tax (provision), net of federal benefit	(1,476		)	(162		)
Research and development tax credits	357			316
Foreign earnings or losses taxed at different rates	(136		)	48
Other	(555		)	(266		)
Change in valuation allowance	796			—
Tax (provision)	$	(15,908	)	$	(3,667	)

Schedule of Deferred Tax Assets and Liabilities



	As of December 31, 2012						As of December 31, 2011
	Current			Long-term			Current		Long-term
Deferred revenue	$	856		$	—		$	860	$	—
Basis difference in intangible assets	—			159			—		(580		)
Inventory reserve	1,871			—			1,598		—
Net operating loss carryforwards	—			667			—		364
Research and development tax credits	—			248			—		1,033
Accrued expenses	140			—			182		—
Stock-based compensation	—			684			—		742
Allowance for sales returns and doubtful accounts	20			—			56		—
Difference in property and equipment basis	—			(475		)	—		(646		)
Other	462			(19		)	291		52
Total net deferred income tax asset	3,349			1,264			2,987		965
Less: Valuation allowance	(201		)	(69		)	—		(1,066		)
Net deferred income tax asset (liability)	$	3,148		$	1,195		$	2,987	$	(101	)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of liabilities associated with uncertain tax positions is as follows:



	Year ended December 31,
	2012			2011
Balance - beginning of year	$	523		$	404
Additions based on tax positions related to the current year	795			229
Additions for tax positions of prior years	1,082			—
Reductions for tax positions of prior years	—			(88		)
Settlements	—			—
Lapse in statutes of limitations	(16		)	(22		)
Unrecognized tax benefits, ending balance	$	2,384		$	523

Geographic Sales Information (Tables)

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Schedule of Revenue by Geographic Area



	Year ended December 31,
	2012		2011
United States	$	30,312	$	29,220
All other countries	16,105		16,847
Total	$	46,417	$	46,067

Summary of Significant Accounting Policies - Rollforward Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of the year	$ 149	$ 206
Charged to costs and expenses	25	312
Deductions	(114)	(369)
Balance at the end of the year	$ 60	$ 149

Summary of Significant Accounting Policies - Deferred Revenue (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Deferred Revenue Disclosure [Abstract]
Deferred Revenue	$ 3,593	$ 3,404
Deferred Costs of Goods Sold	1,289	1,199
Deferred Gross Profit	$ 2,304	$ 2,205

Summary of Significant Accounting Policies - Warranty Accrual (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Movement in Standard Product Warranty Accrual
Balance at the beginning of year	$ 467	$ 363
Accruals/additions	443	439
Usage	(525)	(335)
Balance at end of period	$ 385	$ 467

Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Numerator:
Net income	$ 26,647	$ 6,929
Denominator:
Basic weighted average shares (in shares)	9,107,234	9,027,934
Dilutive common stock equivalents using treasury stock method	107,451	243,877
Diluted weighted average shares (in shares)	9,214,685	9,271,811
Basic earnings per common share: (in dollars per share)	$ 2.93	$ 0.77
Diluted earnings per common share: (in dollars per share)	$ 2.89	$ 0.75
Weighted average options outstanding	1,197,487	1,137,219
Anti-dilutive options not included in the computations	681,820	893,343

Summary of Significant Accounting Policies - Property Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2012
Minimum
Property, Plant and Equipment
Property, plant and equipment, estimated useful lives	2 years
Maximum
Property, Plant and Equipment
Property, plant and equipment, estimated useful lives	10 years

Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2012
Minimum
Finite Lived Intangible Assets
Finite-lived intangible assets, useful life	3 years
Maximum
Finite Lived Intangible Assets
Finite-lived intangible assets, useful life	10 years

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)
Accounting Policies [Abstract]
Inventory, Parts and Components, Net of Reserves	$ 39	$ 43
Product return policy, number of days	180 days
Product return policy, threshhold, not to exceed net purchases during preceeding quarter, percent	0.15
Advertising expense	$ 525	$ 482
Deferred tax assets, valuation allowance	$ 270

Business Combination, Goodwill and Intangibles - Purchase Price Allocation (Details) - USD ($)		3 Months Ended			12 Months Ended
	Feb. 16, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2012	Dec. 31, 2011	Feb. 14, 2012	Sep. 06, 2011	Dec. 31, 2010
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill					$ 3,472,000	$ 1,153,000			$ 726,000
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract]
Amortization of Intangible Assets					679,000	393,000
VCON Video Conferencing, Ltd. (VCON)
Business Acquisition
Goodwill	$ 2,319,000				2,319,000
Inventory	40,000				40,000
Initial cash consideration paid at the time of purchase agreement	4,632,000				4,632,000
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Inventories							$ 320,000
Property and equipment	34,000				34,000
Patents and technology	0						2,300,000
Product warranty liability	(8,000)
Proprietary software							500,000
In-process research and development	0						200,000
Goodwill							786,000
Proprietary software	2,247,000				2,247,000
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract]
Difference, inventory	(280,000)
Difference, patents and technology	(2,300,000)
Difference, proprietary software	1,747,000
Difference, in-process researach and development	(200,000)
Difference, goodwill	1,533,000
Business acquisition, purchase price allocation, goodwill, expected tax deductible amount	0
Amortization of Intangible Assets		$ 75,000	$ 75,000	$ 25,000
Business Acquisition, Purchase Price Allocation, Assets Acquired (Liabilities Assumed), Net	4,632,000
VCON Video Conferencing, Ltd. (VCON) \| Tradename
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Intangibles	0						$ 500,000
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract]
Difference, tradename	$ (500,000)
MagicBox Inc.
Business Acquisition
Initial cash consideration paid at the time of purchase agreement						980,000		$ 980,000
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Accounts Receivable								81,000
Inventories						117,000		117,000
Intangibles						338,000
Other current assets								12,000
Accrued expenses								(4,000)
Property and equipment						9,000		9,000
Proprietary software								179,000
In-process research and development								159,000
Goodwill						427,000		427,000
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract]
Business acquisition, purchase price allocation, goodwill, expected tax deductible amount								427,000
Business Acquisition, Purchase Price Allocation, Assets Acquired (Liabilities Assumed), Net								$ 980,000
General and Administrative Expense \| MagicBox Inc.
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract]
Acquisition related expenses					$ 327,000	$ 167,000

Business Combination, Goodwill and Intangibles - Pro Forma Information (Details) - VCON Video Conferencing, Ltd. (VCON) - USD ($) $ in Thousands	10 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2012	Dec. 31, 2011
Business Acquisition, Pro Forma Information [Abstract]
Revenue from date of acquisition	$ 1,319
Net loss from date of acquisition	$ (1,170)
Revenue		$ 46,630	$ 47,583
Net Income		$ 26,603	$ 6,046

Business Combination, Goodwill and Intangibles - Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Goodwill and Intangible Assets Disclosure [Abstract]
Total finite and indefinite-lived intangible assets, gross	$ 5,674	$ 3,507
Accumulated amortization	(1,416)	(817)
Intangible assets, net (excluding goodwill)	4,258	2,690
Amortization of Intangible Assets	679	393
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2013	533
2014	528
2015	483
2016	446
2017	357
Thereafter	1,752
Finite-lived intangible assets, future amortization expense	$ 4,099
Tradename
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	7 years
Finite-lived intangible assets, gross	$ 435	435
Patents and Technology
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	10 years
Finite-lived intangible assets, gross	$ 2,070	2,070
Proprietary Software
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, gross	$ 2,961	394
Other
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	5 years
Finite-lived intangible assets, gross	$ 49	49
In-process Research and Development
Goodwill and Intangible Assets Disclosure [Abstract]
Indefinite-lived Intangible Assets	$ 159	$ 559
Minimum
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	3 years
Minimum \| Proprietary Software
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	3 years
Maximum
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	10 years
Maximum \| Proprietary Software
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	15 years

Business Combination, Goodwill and Intangibles - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Goodwill Roll Forward
Beginning goodwill, gross	$ 1,153	$ 726
Beginning acculumlated impairment losses	0	0
Balance at the beginning of the year	1,153	726
Goodwill acquired during the year	2,319	427
Ending goodwill, gross	3,472	1,153
Ending accumulated impairment losses	0	0
Balance at end of year	$ 3,472	$ 1,153

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Current:
Raw materials	$ 734	$ 1,091
Finished goods	10,139	11,474
Inventories, current	10,873	12,565
Long-term:
Raw materials	891	444
Finished goods	1,064	1,461
Inventories, long-term	1,955	1,905
Inventory, finished goods, amount under consignment	$ 1,289	$ 1,199

Inventories - Losses on Valuation of Inventory (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Inventory Disclosure [Abstract]
Losses incurred on valuation of inventory and write-off of obsolete inventory	$ 1,235	$ 188

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, gross	$ 13,638	$ 13,609
Accumulated depreciation and amortization	(11,930)	(11,271)
Property and equipment, net	1,708	2,338
Depreciation expense	$ 1,238	892
Minimum
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, useful life	2 years
Maximum
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, useful life	10 years
Office furniture and equipment
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, gross	$ 9,552	9,627
Office furniture and equipment \| Minimum
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, useful life	3 years
Office furniture and equipment \| Maximum
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, useful life	10 years
Leasehold improvements
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, gross	$ 1,413	1,392
Leasehold improvements \| Minimum
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, useful life	1 year
Leasehold improvements \| Maximum
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, useful life	6 years
Manufacturing and test equipment
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, gross	$ 2,673	$ 2,590
Manufacturing and test equipment \| Minimum
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, useful life	2 years
Manufacturing and test equipment \| Maximum
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, useful life	10 years

Leases and Deferred Rent (Details) $ in Thousands	12 Months Ended
Leases and Deferred Rent (Details) $ in Thousands	Dec. 31, 2012 USD ($) ft² facilities	Dec. 31, 2011 USD ($)	Jan. 31, 2012 ft²
Operating Leased Asset
Rent expense	$ 973	$ 762
Future minimum lease payments
2013	942
2014	909
2015	939
2016	575
2017	254
Thereafter	170
Total minimum lease payments	$ 3,789
Office Building \| Salt Lake City, Utah
Operating Leased Asset
Area leased (sqft) \| ft²	31,000
Office Building \| Hod Hasharon
Operating Leased Asset
Area leased (sqft) \| ft²	4,700
Warehouse \| Salt Lake City, Utah
Operating Leased Asset
Area leased (sqft) \| ft²	40,000		24,000
Warehouse \| Hong Kong
Operating Leased Asset
Area leased (sqft) \| ft²	5,600
Warehouse \| Austin, Texas
Operating Leased Asset
Area leased (sqft) \| ft²	11,100
Warehouse \| ISRAEL
Operating Leased Asset
Number of facilities leased \| facilities	2
Warehouse \| ISRAEL \| Minimum
Operating Leased Asset
Term of lease commitment	2 years
Warehouse \| ISRAEL \| Maximum
Operating Leased Asset
Term of lease commitment	6 years
Warehouse \| Tzur Yigal
Operating Leased Asset
Area leased (sqft) \| ft²	1,000

Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Accrued Liabilities [Abstract]
Accrued salaries and other compensation	$ 1,345	$ 987
Other accrued liabilities	798	1,247
Total accrued liabilities	$ 2,143	$ 2,234

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable arising from transactions not otherwise specified in the taxonomy. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

Commitments and Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule of Contingencies
Unrecognized Tax Benefits	$ 2,384	$ 523	$ 404
Inventories
Schedule of Contingencies
Long-term purchase commitment, amount	$ 3,980

Commitments and Contingencies - Loss Contingencies (Details) $ in Thousands	1 Months Ended					7 Months Ended
	Jan. 31, 2012 USD ($)	Jun. 30, 2011 USD ($)	Jun. 30, 2010	Aug. 31, 2009 USD ($)	Jul. 31, 2009 USD ($)	Jan. 31, 2008 officers	Dec. 31, 2012 USD ($)	Feb. 28, 2009 counts
Materially Misstated Financial Statements
Loss Contingencies
Number of officers \| officers						2
Other Litigation
Loss Contingencies
Loss contingency, estimate of possible loss							$ 1,000
Criminal \| Materially Misstated Financial Statements
Loss Contingencies
Loss contingency, fees and expenses charged		$ 973
Loss contingency, legal fees, interest		$ 362
Loss contingency, legal fees, interest, rate		0.18
Civil \| Materially Misstated Financial Statements
Loss Contingencies
Loss contingency, fees and expenses charged		$ 865
Officer, Flood \| Criminal \| Materially Misstated Financial Statements
Loss Contingencies
Loss contingency, damages paid, value					$ 3,390
Loss contingency, number of convicted counts \| counts								9
Prison sentence, years			4 years
Probation, in years			3 years
Loss contingency, legal fees incurred	$ 373				373
Loss contingency, legal fees, paid in escrow					$ 248
Loss contingency, legal fees, refunded from escrow	$ 248
Officer, Strohm \| Materially Misstated Financial Statements
Loss Contingencies
Loss contingency, legal fees sought to be recovered				$ 3,296
Officer, Strohm \| Criminal \| Materially Misstated Financial Statements
Loss Contingencies
Loss contingency, number of convicted counts \| counts								1
Probation, in years			2 years
Probation sentence, in hours			150 hours

Commitments and Contingencies - Gain Contingencies (Details) $ in Thousands	1 Months Ended
	Dec. 31, 2012 USD ($)	Feb. 28, 2012 USD ($)	Oct. 31, 2008 USD ($)	Dec. 31, 2008 USD ($)	Jan. 31, 2007 principals
Misappropriation of Trade Secrets \| Biamp
Gain Contingencies
Gain contingency, number of defendents \| principals					2
Gain (loss) related to litigation settlement		$ 3,860
Misappropriation of Trade Secrets \| Other Defendents
Gain Contingencies
Gain (loss) related to litigation settlement		$ 250
Gain contingency, unrecorded amount	$ 7,658
Illiquid Securities \| UBS and Morgan Stanley
Gain Contingencies
Auction rate securities, noncurrent				$ 12,200
Auction rate securities, repurchase offer, amount			$ 12,200
Illiquid Securities \| UBS
Gain Contingencies
Gain (loss) related to litigation settlement	$ 45,000
Litigation settlement, contingency legal fee, percentage	15.00%
Litigation settlement, contingency legal fee, amount	$ 6,750

Share-Based Payments (Details)	6 Months Ended		12 Months Ended	24 Months Ended	30 Months Ended
Share-Based Payments (Details)	Jun. 30, 2005 shares	Jun. 30, 2003 shares	Dec. 31, 2012 plan shares	Dec. 31, 1999 shares	Jun. 30, 2002 shares	Dec. 31, 2011 shares
Share-based Compensation Arrangement by Share-based Payment Award
Number of share-based compensation plans \| plan			2
Options, grants in period, gross			187,000
Share-based payment award, expiration period			10 years
Share-based payment award, options, outstanding, number			1,137,283			1,160,933
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award
Share-based payment award, maximum employee subscription rate			10.00%
Number of shares contributed by employer per share of employee contributed shares			9
Incentive Plan, 1998
Share-based Compensation Arrangement by Share-based Payment Award
Options, grants in period, gross				1,066,000	1,248,250
Share-based payment award, award vesting period				9 years 9 months 18 days	6 years
Share-based payment award, accelerated vesting, number	300,494	637,089
Share-based payment award, number of shares authorized			2,500,000
Share-based payment award, options, outstanding, number			578,615
Number of options authorized and unissued			0
Equity Incentive Plan, 2007
Share-based Compensation Arrangement by Share-based Payment Award
Share-based payment award, number of shares authorized			1,000,000
Share-based payment award, options, outstanding, number			558,668
Number of options authorized and unissued			357,410
Director and Officer
Share-based Compensation Arrangement by Share-based Payment Award
Share-based payment award, award vesting period			3 years
Employee
Share-based Compensation Arrangement by Share-based Payment Award
Share-based payment award, award vesting period			4 years

Share-Based Payments - Black-Scholes Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Weighted average grant date fair value, granted (in dollars per share)	$ 2.16	$ 2.85
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free interest rate, average	1.30%	1.60%
Expected option life, average	7 years 2 months 12 days	7 years 1 month 24 days
Expected price volatility, average	51.40%	51.90%
Expected dividend yield	0.00%	0.00%

Share-Based Payments - Option Rollforward (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, beginning (in shares)	1,160,933
Granted (in shares)	187,000
Expired and canceled (in shares)	(12,440)
Forfeited prior to vesting (in shares)	(38,341)
Exercise of stock options (in shares)	(159,869)
Outstanding, ending (in shares)	1,137,283	1,160,933
Vested and expected to vest (in shares)	1,137,283
Vested (in shares)	853,350
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted average exercise price, outstanding, beginning (in dollars per share)	$ 4.50
Weighted average exercise price, granted (in dollars per share)	4.06
Weighted average exercise price, expired and canceled (in dollars per share)	4.93
Weighted average exercise price, forfeited prior to vesting (in dollars per share)	4.23
Weighted average exercise price, exercised (in dollars per share)	3.07
Weighted average exercise price, outstanding, ending (in dollars per share)	4.63	$ 4.50
Vested and expected to vest, weighted average exercise price (in dollars per share)	4.63
Vested, weighted average exercise price (in dollars per share)	$ 4.71
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted average remaining contractual term (in years)	5 years 5 months 19 days
Vested, weighted average remaining contractual term (in years)	4 years 3 months 3 days
Outstanding, aggregate intrinsic value (in dollars)	$ 256
Vested, aggregate intrinsic value (in dollars)	$ 232
Weighted average grant date fair value, granted (in dollars per share)	$ 2.16	$ 2.85
Intrinsic value of options exercised	$ 152	$ 411

Share-Based Payments - Non-vested Roll forward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Stock options, pre-tax compensation	$ 241	$ 187
Stock option, tax benefit	18	$ 27
Nonvested awards, total compensation cost not yet recognized, stock options	$ 593
Nonvested awards, total compensation cost not yet recognized, period for recognition	2 years 9 months 18 days

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Share-Based Payments Share-Based Payments - Stock Repurchase Program (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Shareholders' Equity and Share-based Payments [Abstract]
Treasury stock, shares, acquired	94,744	0
Stock repurchased during period, value	$ 384
Stock repurchase program, remaining authorized repurchase amount	$ 2,616

- Definition

Equity impact of the cost of common and preferred stock that were repurchased during the period. Recorded using the cost method.

+ References + Details

Significant Customers (Details) - Customer Concentration Risk	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Revenues
Concentration Risk
Concentration risk, percentage	17.50%	30.10%
Revenues \| Customer A
Concentration Risk
Concentration risk, percentage	17.50%	19.20%
Revenues \| Customer B
Concentration Risk
Concentration risk, percentage	0.00%	0.00%
Revenues \| Customer C
Concentration Risk
Concentration risk, percentage		10.90%
Gross accounts receivable
Concentration Risk
Concentration risk, percentage	20.30%	39.40%
Gross accounts receivable \| Customer A
Concentration Risk
Concentration risk, percentage	20.30%	25.00%
Gross accounts receivable \| Customer B
Concentration Risk
Concentration risk, percentage		14.40%

Income Taxes - Income before Taxes and Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract]
U.S.	$ 42,990	$ 10,318
Non U.S.	(435)	278
Total	42,555	10,596
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
Current, U.S. Federal	(16,910)	(2,106)
Current, U.S. State	(381)	(99)
Current, Non-U.S.	(74)	(46)
Total current	(17,365)	(2,251)
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]
Deferred, U.S. Federal	455	(1,271)
Deferred U.S. State	46	(23)
Deferred foreign	160	0
Deferred provision before change in valuation allowance	661	(1,294)
Change in valuation allowance	796	(122)
Total deferred	1,457	(1,416)
Tax (provision) benefit	$ (15,908)	$ (3,667)

Income Taxes - Reconciliation of Amount of Tax at Statutory Rate to Effective Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
U.S. federal statutory income tax rate at 34.0 percent	$ (14,894)	$ (3,603)
State income tax provision, net of federal income tax effect	(1,476)	(162)
Research and development credit	357	316
Foreign earnings or losses taxed at different rates	(136)	48
Income Tax Reconciliation, Other Adjustments	(555)	(266)
Change in valuation allowance	796	0
Tax (provision) benefit	$ (15,908)	$ (3,667)

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Components of Deferred Tax Assets and Liabilities [Abstract]
Deferred revenue, current	$ 856	$ 860
Intangibles and related other, long-term	159	(580)
Inventory reserve, current	1,871	1,598
Inventory reserve, long-term	0	0
Net operationg loss carryforwards, long-term	667	364
Research and development tax credits, long-term	248	1,033
Accrued expenses, current	140	182
Stock-based compensation, long-term	684	742
Allowance for sales returns and doubtful accounts, current	20	56
Difference in property and equipment basis, long-term	(475)	(646)
Other, current	462	291
Other, long-term	(19)	52
Total net deferred income tax assets, current	3,349	2,987
Total net deferred income tax asset, long-term	1,264	965
Less: Valuation allowance, current	(201)	0
Less: valuation allowance, long-term	(69)	(1,066)
Net deferred income tax asset (liability), current	3,148	2,987
Net deferred income tax asset (liability), long-term	1,195	0
Deferred Tax Liabilities, Net, Noncurrent	$ 0	$ (101)

Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	$ 523	$ 404
Tax positions taken in the current period, gross increases	795	229
Tax positions taken in a prior period, gross increases	1,082	0
Tax positions taken in a prior period, gross decreases	0	(88)
Settlements with taxing authorities	0	0
Lapse of applicable statute of limitations	(16)	(22)
Unrecognized tax benefits, ending balance	$ 2,384	$ 523

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Deferred Tax Assets, Tax Credit Carryforwards, Research	$ 304,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	802,000	$ 523,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	56,000	24,000
Operating Loss Carryforwards
Income Tax Reconciliation, Tax Credits, Research	(357,000)	$ (316,000)
Minimum
Operating Loss Carryforwards
Income Tax Reconciliation, Tax Credits, Research	288,000
Maximum
Operating Loss Carryforwards
Income Tax Reconciliation, Tax Credits, Research	316,000
Internal Revenue Service (IRS)
Operating Loss Carryforwards
Operating Loss Carryforwards	1,489,000
Foreign Tax Authority
Operating Loss Carryforwards
Operating Loss Carryforwards	$ 3,464,000

Geographic Sales Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Geographic Areas, Revenues from External Customers [Abstract]
United States	$ 30,312	$ 29,220
All other countries	16,105	16,847
Revenue	$ 46,417	$ 46,067

Shareholders' Equity (Details) - USD ($) $ in Thousands	12 Months Ended
Shareholders' Equity (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the period	$ 39,664	$ 31,735
Net income during the period	26,647	6,929
Treasury stock purchased	(384)
Exercise of stock options	489	746
Balance at end of the period	$ 66,668	$ 39,664

- Definition

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

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

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

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

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

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

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

+ References + Details

- Definition

Equity impact of the cost of common and preferred stock that were repurchased during the period. Recorded using the cost method.

+ References + Details