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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2013	Mar. 12, 2014	Jun. 30, 2013
Document and Entity Information
Entity Registrant Name	CLEARONE INC
Document Type	10-K
Document Period End Date	Dec. 31, 2013
Amendment Flag	false
Entity Central Index Key	0000840715
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		9,309,529
Entity Public Float			$ 51,602,402
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	2013
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 17,192	$ 55,509
Marketable securities	3,200	0
Receivables, net of allowance for doubtful accounts of $129 and $60, as of December 31, 2013 and 2012 respectively	9,378	8,388
Inventories	12,278	10,873
Deferred income taxes	3,325	3,148
Prepaid expenses and other assets	2,693	1,369
Total current assets	48,066	79,287
Long-term marketable securities	22,326	0
Long-term inventories, net	551	1,955
Property and equipment, net	1,825	1,708
Intangibles, net	3,710	4,258
Goodwill	3,472	3,472
Deferred income taxes	1,024	1,195
Other assets	87	64
Total assets	81,061	91,939
Current liabilities:
Accounts payable	2,730	2,302
Accrued liabilities	1,761	2,143
Income taxes payable	0	14,782
Deferred product revenue	4,158	3,593
Total current liabilities	8,649	22,820
Deferred rent	286	422
Other long-term liabilities	1,791	2,029
Total liabilities	10,726	25,271
Shareholders' equity:
Common stock, par value $0.001, 50,000,000 shares authorized, 8,986,080 and 9,163,462 shares issued and outstanding as of December 31, 2013 and 2012, respectively	9	9
Additional paid-in capital	41,311	40,430
Accumulated other comprehensive income	23	0
Retained earnings (accumulated deficit)	28,992	26,229
Total shareholders' equity	70,335	66,668
Total liabilities and shareholders' equity	81,061	91,939
Inventory [Member]
Current assets:
Inventories	10,758	9,584
Distributor Channel Inventory [Member]
Current assets:
Inventories	$ 1,520	$ 1,289

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 129	$ 60
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)	8,986,080	9,163,462
Common stock, shares outstanding (in shares)	8,986,080	9,163,462

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Statement [Abstract]
Revenue	$ 49,592	$ 46,417
Cost of goods sold	19,735	19,089
Gross profit	29,857	27,328
Operating expenses:
Sales and marketing	8,896	8,112
Research and product development	7,562	8,261
General and administrative	6,416	6,934
Proceeds from litigation, net	(639)	(38,500)
Total operating expenses	22,235	(15,193)
Operating income	7,622	42,521
Other income, net	147	34
Income before income taxes	7,769	42,555
Provision for income taxes	(2,590)	(15,908)
Net income	$ 5,179	$ 26,647
Basic earnings per common share	$ 0.57	$ 2.93
Diluted earnings per common share	$ 0.55	$ 2.89
Basic weighted average shares outstanding	9,064,340	9,107,234
Diluted weighted average shares outstanding	9,455,518	9,214,685
Unrealized gain on available-for-sale securities, net of tax of $13	$ 23	$ 0
Comprehensive income	$ 5,202	$ 26,647

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings (Accumulated Deficit)	Accumulated Net Unrealized Investment Gain (Loss) [Member]
Common stock outstanding, beginning (in shares) at Dec. 31, 2011		9,098,152
Balance at the beginning of the period at Dec. 31, 2011	$ 39,664	$ 9	$ 40,073	$ 0	$ (418)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		159,869
Exercise of stock options (in shares)	489		489
Stock Repurchased (in shares)		(94,744)
Stock Repurchased (in dollars)	(384)		(384)
Tax benefit - stock option exercise	10		10
Compensation cost associated with ASC Topic 718	241		241
Employee Stock Purchase Plan (in shares)		185
Employee stock purchase plan (in dollars)	1		1
Net income	$ 26,647			0	26,647
Common stock outstanding, ending (in shares) at Dec. 31, 2012	9,163,462	9,163,462
Balance at end of the period at Dec. 31, 2012	$ 66,668	$ 9	40,430	$ 0	26,229
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	122,650	122,650
Exercise of stock options (in shares)	$ 489	$ 0	489
Stock Repurchased (in shares)		(300,087)
Stock Repurchased (in dollars)	(2,416)	$ 0	0		(2,416)
Tax benefit - stock option exercise	96	0	96
Compensation cost associated with ASC Topic 718	296	$ 0	296
Employee Stock Purchase Plan (in shares)		55
Employee stock purchase plan (in dollars)	0	$ 0	0
Other Comprehensive Income (Loss), before Tax	23					$ 23
Net income	$ 5,179				5,179
Common stock outstanding, ending (in shares) at Dec. 31, 2013	8,986,080	8,986,080
Balance at end of the period at Dec. 31, 2013	$ 70,335	$ 9	$ 41,311		$ 28,992	$ 23

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net income	$ 5,179	$ 26,647
Adjustments to reconcile net income to net cash provided by (used in) operations:
Depreciation and amortization expense	1,422	1,917
Amortization of deferred rent	(110)	(41)
Stock-based compensation expense	296	241
Provision for doubtful accounts	69	25
Write-down of inventory to net realizable value	996	1,235
Loss on disposal of assets	49	0
Tax benefit from exercise of stock options	(104)	(2)
Changes in operating assets and liabilities:
Receivables	(1,059)	44
Inventories	(998)	447
Deferred income taxes	(6)	(1,457)
Prepaid expenses and other assets	(1,251)	(652)
Accounts payable	428	(512)
Accrued liabilities	(408)	(130)
Income taxes payable	(14,782)	14,492
Deferred product revenue	565	189
Other long-term liabilities	(238)	1,481
Net cash provided by (used in) operating activities	(9,952)	43,924
Cash flows from investing activities:
Purchase of property and equipment	(1,040)	(574)
Purchase of marketable securities	(25,502)	0
Payment towards business acquisitions	0	(4,632)
Net cash used in investing activities	(26,542)	(5,206)
Cash flows from financing activities:
Proceeds from the exercise of stock options	489	490
Tax benefit from the exercise of stock options	104	2
Treasury stock purchased	(2,416)	(384)
Net cash provided by (used in) financing activities	(1,823)	108
Net increase (decrease) in cash and cash equivalents	(38,317)	38,826
Cash and cash equivalents at the beginning of the period	55,509	16,683
Cash and cash equivalents at the end of the period	17,192	55,509
Supplemental disclosure of cash flow information:
Cash paid for income taxes	18,021	1,393
Supplemental disclosure of non-cash activities:
Inventory	0	40
Property and equipment	0	34
Product warranty liability	0	(8)
Proprietary software	0	2,247
Goodwill	0	2,319
Cash paid	$ 0	$ 4,632

Business Description, Basis of Presentation and Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Business Description, Basis of Presentation and Significant Accounting Policies

Business Description:

ClearOne, Inc., together with its subsidiaries (collectively, “ClearOne” or the “Company”), is a global company that designs, develops and sells conferencing, collaboration, streaming and digital signage solutions for audio and visual communications. The performance and simplicity of its advanced comprehensive solutions offer unprecedented levels of functionality, reliability and scalability.

Basis of Presentation:

Fiscal Year – This report on Form 10-K includes financial statements for the years ended December 31, 2013 and 2012.

Consolidation – These consolidated financial statements include the financial statements of ClearOne, Inc. and its wholly owned subsidiaries. All inter-company 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 production and shipping of 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 may 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.

Significant Accounting Policies:

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.

Marketable Securities - The Company has classified its marketable securities as available-for-sale securities. These securities are carried at estimated fair value with unrealized holding gains and losses included in accumulated other comprehensive income/loss in stockholders' equity until realized. Gains and losses on marketable security transactions are reported on the specific-identification method. Dividend and interest income are recognized when earned.

A decline in the market value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and establishes a new cost basis for the security. Losses are charged against “Other income” when a decline in fair value is determined to be other than temporary. We review several factors to determine whether a loss is other than temporary. These factors include, but are not limited to: (i) the extent to which the fair value is less than cost and the cause for the fair value decline, (ii) the financial condition and near term prospects of the issuer, (iii) the length of time a security is in an unrealized loss position and (iv) our ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. There were no other-than-temporary impairments recognized during the years ended December 31, 2013 and 2012.

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, 2013 and 2012 was as follows:



	Year ended December 31,
	2013			2012
Balance at beginning of the year	$	60		$	149
Charged to costs and expenses	96			25
Write offs, net of recoveries	(27		)	(114		)
Balance at end of the year	$	129		$	60

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.

Distributor channel inventories include products that have been delivered to customers for which revenue recognition criteria have not been met.

The inventory also includes advance replacement units (valued at cost) provided by the Company to end-users to service defective products under warranty. The value of advance replacement units included in the inventory was $45 and $39, as of December 31, 2013 and 2012, 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 depreciation and 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 certain distributors and other resellers under a product rotation program. Under this seldom-used program, once a quarter, a distributor or reseller is allowed to return products purchased during the prior 180 days for a total value generally not exceeding 15% of the distributor's or reseller’s net purchases during the preceding quarter. The distributor or reseller is, however, required to place a new purchase order for an amount not less than the value of products returned under the stock rotation program. When products are returned, the associated revenue, cost of goods sold, inventory and accounts receivable originally recorded are reversed. When the new order is fulfilled, the revenue, associated cost of goods sold, inventory and accounts receivable are recorded and the product revenue is subject to the deferral analysis described below. In a small number of cases, the distributors are also permitted to return products for other business reasons.

Revenue from product sales to distributors is not recognized until the return privilege has expired or until it can be determined with reasonable certainty that the return privilege has expired, which approximates when product is sold-through to customers of the Company’s distributors (dealers, system integrators, value-added resellers, and end-users) rather than when the product is initially shipped to a distributor. At each quarter-end, the Company evaluates the inventory in the channel through information provided by our distributors. The level of inventory in the channel will fluctuate up-ward or down-ward each quarter, based upon 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 distributor channel inventories.

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



	As of December 31,
	2013		2012
Deferred revenue	$	4,158	$	3,593
Deferred cost of goods sold	1,520		1,289
Deferred gross profit	$	2,638	$	2,304

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,
	2013			2012
Balance at the beginning of year	$	385		$	467
Accruals/additions	433			443
Usage/claims	(480		)	(525		)
Balance at end of year	$	338		$	385

Advertising – The Company expenses advertising costs as incurred. Advertising costs consist of trade shows, magazine advertisements, and other forms of media. Advertising expenses for the years ended December 31, 2013 and 2012 totaled $472 and $525, 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, 2013 and 2012, the Company had a valuation allowance of $378 and $270 against capital loss carryovers, foreign net operating losses, and state research and development credits, respectively.

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,
	2013		2012
Numerator:
Net income	$	5,179	$	26,647
Denominator:
Basic weighted average shares	9,064,340		9,107,234
Dilutive common stock equivalents using treasury stock method	391,178		107,451
Diluted weighted average shares	9,455,518		9,214,685

Basic earnings per common share:	$	0.57	$	2.93
Diluted earnings per common share:	$	0.55	$	2.89

Weighted average options outstanding	1,128,045		1,197,487
Anti-dilutive options not included in the computation	149,773		681,820

Share-Based Payment – We estimate the fair value of stock options using the Black-Scholes option pricing model, which requires certain estimates, including an expected forfeiture rate and expected term of options granted. We also make decisions regarding the method of calculating expected volatilities and the risk-free interest rate used in the option-pricing model. The resulting calculated fair value of stock options is recognized as compensation expense over the requisite service period, which is generally the vesting period. When there are changes to the assumptions used in the option-pricing model, including fluctuations in the market price of our common stock, there will be variations in the calculated fair value of our future stock option awards, which results in variation in the compensation cost recognized.

Recent Accounting Pronouncements

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

Marketable Securities Marketable Securities

12 Months Ended

Dec. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

The Company has classified its marketable securities as available-for-sale securities. These securities are carried at estimated fair value with unrealized holding gains and losses included in accumulated other comprehensive income/loss in stockholders' equity until realized. Gains and losses on marketable security transactions are reported on the specific-identification method. Dividend and interest income are recognized when earned.

The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of security at December 31, 2013 were as follows:



(In thousands)			Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
December 31, 2013
	Available-for-sale securities:
		Corporate bonds and notes	$	18,832	$	68	$	(43	)	$	18,857
		Municipal bonds	6,658		22		(11		)	6,669

	Total available-for-sale securities		$	25,490	$	90	$	(54	)	$	25,526

Maturities of marketable securities classified as available-for-sale securities were as follows at December 31, 2013:



(In thousands)		Amortized cost		Estimated fair value

	Due within one year	$	3,198	$	3,200
	Due after one year through five years	20,711		20,737
	Due after five years through ten years	1,581		1,589

Total available-for-sale securities		$	25,490	$	25,526

Debt securities in an unrealized loss position as of December 31, 2013 were not deemed impaired at acquisition and subsequent declines in fair value are not deemed attributed to declines in credit quality. Management believes that it is more likely than not that the securities will receive a full recovery of par value. The available-for-sale marketable securities in a gross unrealized loss position as of December 31, 2013 are summarized as follows:



	Less than 12 months					More than 12 months					Total
(In thousands)	Estimated fair value		Gross unrealized holding losses			Estimated fair value		Gross unrealized holding losses			Estimated fair value		Gross unrealized holding losses
As of December 31, 2013
Corporate bonds and notes	$	204	$	(1	)	$	6,687	$	(42	)	$	6,891	$	(43	)
Municipal bonds	355		(1		)	1,125		(10		)	1,480		(11		)

	$	559	$	(2	)	$	7,812	$	(52	)	$	8,371	$	(54	)

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

Business Combination, Goodwill and Intangibles

12 Months Ended

Dec. 31, 2013

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 have provided 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:



	Fair Value
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.

Unaudited Supplemental Pro Forma information for the acquisition is as follows:


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 for the years ended December 31, 2013 and 2012 calculated as though the business combination occurred prior to the year ended December 31, 2012, were as follows:



	Year ended December 31,
	2013		2012
Revenue	$	49,592	$	46,630
Net income	5,179		26,603


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

Goodwill

Changes in the carrying amount of the company's goodwill for the years ended December 31, 2013 and 2012 were as follows:



	2013		2012
Balance as of January 1,
Goodwill	$	3,472	$	1,153
Accumulated impairment losses	—		—
	3,472		1,153
Goodwill acquired during the year	—		2,319
Balance as of December 31,
Goodwill	3,472		3,472
Accumulated impairment losses	—		—
	$	3,472	$	3,472

Intangible Assets

Intangible assets as of December 31, 2013 and 2012 consisted of the following:



	Estimated	As of December 31,
	useful lives	2013			2012
Tradename	7 years	$	435		$	435
Patents and technological know-how	10 years	2,070			2,070
Proprietary software	3 to 15 years	2,961			2,961
In-process research and development	Indefinite	—			159
Other	5 years	208			49
		5,674			5,674
Accumulated amortization		(1,964		)	(1,416		)
		$	3,710		$	4,258

During the years ended December 31, 2013 and 2012, amortization of these intangible assets were $548 and $679, respectively.

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



Years ending December 31,
2014	$	559
2015	515
2016	477
2017	389
2018	374
Thereafter	1,396
	$	3,710

Inventories

12 Months Ended

Dec. 31, 2013

Inventory Disclosure [Abstract]

Inventories

Inventories, net of reserves, consisted of the following:



	As of December 31,
	2013		2012
Current:
Raw materials	$	1,362	$	734
Finished goods (including distributor channel inventories)	10,916		10,139
	$	12,278	$	10,873
Long-term:
Raw materials	$	227	$	891
Finished goods	324		1,064
	$	551	$	1,955

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 distributor channel inventories in the amounts of approximately $1,520 and $1,289 as of December 31, 2013 and 2012, respectively. Distributor channel inventories represent inventory at distributors and other customers where revenue recognition criteria have not been achieved.

The losses incurred on valuation of inventory at the lower of cost or market value and write-off of obsolete inventory amounted to $996 and $1,235 during the years ended December 31, 2013 and 2012, respectively.

Property and Equipment

12 Months Ended

Dec. 31, 2013

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	2013			2012
Office furniture and equipment	3 to 10 years	$	6,676		$	9,552
Leasehold improvements	1 to 6 years	1,429			1,413
Manufacturing and test equipment	2 to 10 years	2,681			2,673
		10,786			13,638
Accumulated depreciation and amortization		(8,961		)	(11,930		)
Property and equipment, net		$	1,825		$	1,708

Depreciation and amortization expense on property and equipment for the years ended December 31, 2013 and 2012 was $874 and $1,238, respectively.

Leases and Deferred Rent

12 Months Ended

Dec. 31, 2013

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 $909 and $973, including amortization of deferred rent of $110 and $42, for the years ended December 31, 2013 and 2012, 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 activities.

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 and digital signage product assembly workshop. Our earlier lease of a 24,000 square-foot warehouse in Salt Lake City terminated in January 2012.

We leased a warehouse measuring approximately 5,600 square-feet in Hong Kong to support our partners and customers located in the Asia-Pacific region. This operating lease expired February 2014 and has not been renewed. This warehouse is maintained to support our partners and customers located in the Asia-Pacific region.

We 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 a 4,700 square foot office facility in Hod Hasharon, Israel to primarily support our research and development activities. We previously leased a 1,000 square foot warehouse in Tzur Yigal. The Hod Hasharon lease expired in December 2013 and was renewed for an additional 24-month period. Upon expiration, we will have the option to extend the lease for two to four additional years. The Tzur Yigal lease expired in August 2013 and was not renewed.

We entered into a new lease agreement in March 2014 for a manufacturing and office facility in Alachua, Florida measuring approximately 46,000 square feet for a period of two years with an option to extend the lease by two more years. The Alachua facility will primarily be used to manufacture our wireless microphone products and to support this business.

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



Years ending December, 31,
2014	$	914
2015	945
2016	581
2017	260
2018	91
Thereafter	91
Total minimum lease payments	$	2,882

Accrued Liabilities

12 Months Ended

Dec. 31, 2013

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities consist of the following:



	As of December 31,
	2013		2012
Accrued salaries and other compensation	$	783	$	1,345
Other accrued liabilities	978		798
Total	$	1,761	$	2,143

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2013
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 $2,862 as of December 31, 2013. Uncertain Tax Positions. As further discussed in Note 12 - Income Taxes of the Notes to Consolidated Financial Statements, we have adopted the provisions of Accounting Standards Codification ASC 740. We had $1,901 of uncertain tax positions as of December 31, 2013. Due to the inherent uncertainty of the underlying tax positions, it is not possible to forecast the payment of this liability 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 $3,630 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. The 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. ClearOne 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. On April 9, 2013, the Utah Supreme Court issued its Opinion declaring that Strohm's attorney, Dorsey, is not entitled to recover any attorneys' fees or expenses in connection with its civil action against ClearOne but that Dorsey is entitled to recover post-verdict criminal fees incurred in connection with Strohm's sentencing and appeal. On April 23, 2013, Dorsey filed a petition for rehearing with the Utah Supreme Court seeking to recover its attorneys' fees and expenses incurred in obtaining court-ordered indemnification for Strohm. Dorsey has further requested that the Court reverse its public policy ruling that Dorsey is not entitled to attorneys' fees and expenses in connection with its civil action against ClearOne. In early August 2013, the Utah Supreme Court denied Dorsey's petitions for rehearing. 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 involved 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.

Share-Based Payments

12 Months Ended

Dec. 31, 2013

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, 2013 had contractual lives of ten years. Under the 1998 Plan, 2,500,000 shares were authorized for grant. As of December 31, 2013, there were 550,000 options outstanding under the 1998 Plan, which includes the cliff vesting and 3 or 4-year vesting options discussed above. As of December 31, 2013, there were 561,274 options outstanding under the 2007 Plan. As of December 31, 2013, the 2007 Plan had 259,154 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,
	2013	2012
Risk-free interest rate, average	1.8%	1.3%
Expected option life, average	6.8 years	7.2 years
Expected price volatility, average	49.8%	51.4%
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
As of December 31, 2012	1,137,283		$	4.63
Granted	127,500		8.52
Expired and canceled	(4,323	)	4.03
Forfeited prior to vesting	(26,536	)	4.73
Exercised	(122,650	)	3.99
As of December 31, 2013	1,111,274		$	5.15	4.86	$	4,016
Vested and Expected to Vest at December 31, 2013	1,111,274		$	5.15	4.86	$	4,016
Vested at December 31, 2013	850,159		$	4.76	3.62	$	3,395

The weighted average per share fair value of options granted during the years ending December 31, 2013 and 2012 was $4.38 and $2.16 respectively. The total intrinsic value of options exercised during the years ended December 31, 2013 and 2012 was $448 and $152, respectively.

The total pre-tax compensation cost related to stock options recognized during the years ended December 31, 2013 and 2012 was $296 and $241, respectively. Tax benefit from compensation cost related to stock options during the years ended December 31, 2013 and 2012 was $86 and $18, respectively. As of December 31, 2013, the total compensation cost related to stock options not yet recognized and before the effect of any forfeitures was $784, which is expected to be recognized over approximately the next 2.6 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 300,087 and 94,744 shares costing $2,416 and $384 were purchased under this program during the years ended December 31, 2013 and 2012. The cost of shares purchased is recorded as a reduction to shareholders' equity. As of December 31, 2013, the Company was authorized to purchase approximately $7.2 million worth of additional shares in the open market.

Significant Customers

12 Months Ended

Dec. 31, 2013

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,
	2013		2012
Customer A	18.2	%	17.5	%
Customer B	10.8	%	*
Total	29.0	%	17.5	%

* 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,
	2013		2012
Customer A	24.9	%	20.3	%
Customer B	12.4	%	*
Total	37.3	%	20.3	%

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

Fair Value Measurements Fair Value Measurements

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

The fair value of the Company's financial instruments reflects the amounts that the Company estimates it will receive in connection with the sale of an asset or pay in connection with the transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value hierarchy prioritizes the use of inputs used in valuation techniques into the following three levels:

Level 1 - Quoted prices in active markets for identical assets and liabilities.

Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. This category generally includes U.S. Government and agency securities; municipal securities; mutual funds and securities sold and not yet settled.

Level 3 - Unobservable inputs.

The substantial majority of the Company’s financial instruments are valued using quoted prices in active markets or based on other observable inputs. The following table sets forth the fair value of the financial instruments re-measured by the Company as of December 31, 2013:



		Level 1		Level 2		Level 3		Total
(In thousands)
December 31, 2013
Corporate bonds and notes		$	—	$	18,857	$	—	$	18,857
Municipal bonds		—		6,669		—		6,669

	Total	$	—	$	25,526	$	—	$	25,526

- Definition

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

+ References + Details

Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

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



	Year ended December 31,
	2013			2012
Domestic	$	8,714		$	42,990
Foreign	(945		)	(435		)
Total	$	7,769		$	42,555

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



	Year ended December 31,
	2013			2012
Current:
Federal	$	(1,993	)	$	(16,910	)
State	(765		)	(381		)
Foreign	144			(74		)
Total current	(2,614		)	(17,365		)
Deferred:
Federal	202			455
State	(234		)	46
Foreign	165			160
	133			661
Change in valuation allowance	(109		)	796
Total deferred	24			1,457
(Provision) for income taxes	$	(2,590	)	$	(15,908	)

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



	Year ended December 31,
	2013			2012
Tax (provision) at Federal statutory rate	$	(2,642	)	$	(14,894	)
State income tax (provision), net of federal benefit	(293		)	(1,476		)
Research and development tax credits	616			357
Foreign earnings or losses taxed at different rates	(170		)	(136		)
Other	8			(555		)
Change in valuation allowance	(109		)	796
Tax (provision)	$	(2,590	)	$	(15,908	)

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



	As of December 31, 2013						As of December 31, 2012
	Current			Long-term			Current			Long-term
Deferred revenue	$	971		$	—		$	856		$	—
Basis difference in intangible assets	—			82			—			159
Inventory reserve	1,955			—			1,871			—
Net operating loss carryforwards	—			682			—			667
Research and development tax credits	—			31			—			248
Accrued expenses	159			—			140			—
Stock-based compensation	—			679			—			684
Allowance for sales returns and doubtful accounts	47			—			20			—
Difference in property and equipment basis	—			(388		)	—			(475		)
Other	458			51			462			(19		)
Total net deferred income tax asset	3,590			1,137			3,349			1,264
Less: Valuation allowance	(265		)	(113		)	(201		)	(69		)
Net deferred income tax asset (liability)	$	3,325		$	1,024		$	3,148		$	1,195

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, 2013 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, state research and development credits, and Hong Kong net operating loss carryforwards.

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 benefit for the 2012 R&D credit was recognized in the first quarter of 2013 as a discrete tax benefit. The total amount of 2012 federal R&D credit benefit recognized in 2013 was $277.

As of December 31, 2013, the Company had state research credit carryforwards of $34, which will begin to expire in 2027 if not utilized. The Company has federal net operating loss (“NOL”) carryforwards of approximately $1,118 (pre-tax) and Hong Kong NOL carryforwards of approximately $1,827 (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, 2013 and 2012, that would favorably impact our effective tax rate if recognized was $623 and $802, respectively. As of December 31, 2013 and 2012, we accrued $51 and $56, 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,
	2013			2012
Balance - beginning of year	$	2,384		$	523
Additions based on tax positions related to the current year	84			795
Additions for tax positions of prior years	45			1,082
Reductions for tax positions of prior years	(518		)	—
Settlements	—			—
Lapse in statutes of limitations	(94		)	(16		)
Uncertain tax positions, ending balance	$	1,901		$	2,384

The Company’s U.S. federal income tax returns for 2010 through 2013 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 2010. 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 2014. The Company does not anticipate the examination will result in a material change to its financial position. During the next twelve months, it is reasonably possible that the amount of the Company's unrecognized income tax benefits could change significantly. These changes could be the result of our ongoing tax audits or the settlement of outstanding audit issues. However, due to the issues being examined, at the current time, an estimate of the range of reasonably possible outcomes cannot be made, beyond amounts currently accrued.

Geographic Sales Information

12 Months Ended

Dec. 31, 2013

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,
	2013		2012
United States	$	32,292	$	30,312
All other countries	17,300		16,105
Total	$	49,592	$	46,417

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2013
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Agreement to Acquire Spontania: On January 7, 2014, we entered into an agreement to acquire Spontania from Spain-based Dialcom Networks, S.L. in an all-cash deal for €3.65 million (approximately US $5.00 million). Spontania is a software-based cloud collaboration solution which combines the benefits of video conferencing and web conferencing into a unique, effective and powerful enterprise solution that can scale to tens of thousands of users. The addition of Spontania is expected to make ClearOne the only company offering an entirely software-based video conferencing product line that provides on-premise and cloud-based Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions and is expected to complement ClearOne’s existing premise-based, enterprise video conferencing offering, COLLABORATE ® obtained from the VCON acquisition. ClearOne plans to fund the acquisition of substantially all of the assets of the Spontania business with available cash and will not assume any debt or cash. The acquisition is expected to close by the end of the first quarter of 2014, subject to customary closing conditions, including applicable regulatory approvals. Acquisition of Sabine, Inc.: On March 7, 2014, we completed the acquisition of Sabine, Inc. which will provide the company with reliable and exclusive access to the wireless microphones that are a critical component of ClearOne’s complete microphone portfolio. Under the terms of the transaction, ClearOne paid approximately $7.20 million in cash and approximately $1.50 million in ClearOne shares. In addition, ClearOne paid off Sabine debt of $1.25 million and may be required to make earn-out payments over the next three years, based on achievement of certain performance criteria. ClearOne expects to maintain Sabine operations at its current headquarters in Alachua, Florida.

Business Description, Basis of Presentation and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]
Fiscal Year	Fiscal Year – This report on Form 10-K includes financial statements for the years ended December 31, 2013 and 2012.
Consolidation	Consolidation – These consolidated financial statements include the financial statements of ClearOne, Inc. and its wholly owned subsidiaries. All inter-company 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 production and shipping of 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 may 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.
Marketable Securities	Marketable Securities - The Company has classified its marketable securities as available-for-sale securities. These securities are carried at estimated fair value with unrealized holding gains and losses included in accumulated other comprehensive income/loss in stockholders' equity until realized. Gains and losses on marketable security transactions are reported on the specific-identification method. Dividend and interest income are recognized when earned. A decline in the market value of any available-for-sale security below cost that is deemed other than temporary results in a charge to earnings and establishes a new cost basis for the security. Losses are charged against “Other income” when a decline in fair value is determined to be other than temporary. We review several factors to determine whether a loss is other than temporary. These factors include, but are not limited to: (i) the extent to which the fair value is less than cost and the cause for the fair value decline, (ii) the financial condition and near term prospects of the issuer, (iii) the length of time a security is in an unrealized loss position and (iv) our ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. There were no other-than-temporary impairments recognized during the years ended December 31, 2013 and 2012.
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. Distributor channel inventories include products that have been delivered to customers for which revenue recognition criteria have not been met. The inventory also includes advance replacement units (valued at cost) provided by the Company to end-users to service defective products under warranty. The value of advance replacement units included in the inventory was $45 and $39, as of December 31, 2013 and 2012, 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 depreciation and 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	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. 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 certain distributors and other resellers under a product rotation program. Under this seldom-used program, once a quarter, a distributor or reseller is allowed to return products purchased during the prior 180 days for a total value generally not exceeding 15% of the distributor's or reseller’s net purchases during the preceding quarter. The distributor or reseller is, however, required to place a new purchase order for an amount not less than the value of products returned under the stock rotation program. When products are returned, the associated revenue, cost of goods sold, inventory and accounts receivable originally recorded are reversed. When the new order is fulfilled, the revenue, associated cost of goods sold, inventory and accounts receivable are recorded and the product revenue is subject to the deferral analysis described below. In a small number of cases, the distributors are also permitted to return products for other business reasons. Revenue from product sales to distributors is not recognized until the return privilege has expired or until it can be determined with reasonable certainty that the return privilege has expired, which approximates when product is sold-through to customers of the Company’s distributors (dealers, system integrators, value-added resellers, and end-users) rather than when the product is initially shipped to a distributor. At each quarter-end, the Company evaluates the inventory in the channel through information provided by our distributors. The level of inventory in the channel will fluctuate up-ward or down-ward each quarter, based upon 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 distributor channel inventories.
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 costs consist of trade shows, magazine advertisements, and other forms of media. Advertising expenses for the years ended December 31, 2013 and 2012 totaled $472 and $525, respectively, and are included under the caption “Sales and Marketing”.
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, 2013 and 2012, the Company had a valuation allowance of $378 and $270 against capital loss carryovers, foreign net operating losses, and state research and development credits, respectively. 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 – We estimate the fair value of stock options using the Black-Scholes option pricing model, which requires certain estimates, including an expected forfeiture rate and expected term of options granted. We also make decisions regarding the method of calculating expected volatilities and the risk-free interest rate used in the option-pricing model. The resulting calculated fair value of stock options is recognized as compensation expense over the requisite service period, which is generally the vesting period. When there are changes to the assumptions used in the option-pricing model, including fluctuations in the market price of our common stock, there will be variations in the calculated fair value of our future stock option awards, which results in variation in the compensation cost recognized.
Recent Accounting Pronouncements	Recent Accounting Pronouncements After evaluating the recent accounting pronouncements through the date of this filing, the Company has concluded that their application will have no material impact on the Company’s financial results.

Business Description, Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Allowance for Doubtful Accounts Activity

The Company’s allowance for doubtful accounts activity for the years ended December 31, 2013 and 2012 was as follows:



	Year ended December 31,
	2013			2012
Balance at beginning of the year	$	60		$	149
Charged to costs and expenses	96			25
Write offs, net of recoveries	(27		)	(114		)
Balance at end of the year	$	129		$	60

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,
	2013		2012
Deferred revenue	$	4,158	$	3,593
Deferred cost of goods sold	1,520		1,289
Deferred gross profit	$	2,638	$	2,304

Changes in Warranty Accrual

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



	Year ended December 31,
	2013			2012
Balance at the beginning of year	$	385		$	467
Accruals/additions	433			443
Usage/claims	(480		)	(525		)
Balance at end of year	$	338		$	385

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,
	2013		2012
Numerator:
Net income	$	5,179	$	26,647
Denominator:
Basic weighted average shares	9,064,340		9,107,234
Dilutive common stock equivalents using treasury stock method	391,178		107,451
Diluted weighted average shares	9,455,518		9,214,685

Basic earnings per common share:	$	0.57	$	2.93
Diluted earnings per common share:	$	0.55	$	2.89

Weighted average options outstanding	1,128,045		1,197,487
Anti-dilutive options not included in the computation	149,773		681,820

Marketable Securities Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2013

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation



(In thousands)			Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
December 31, 2013
	Available-for-sale securities:
		Corporate bonds and notes	$	18,832	$	68	$	(43	)	$	18,857
		Municipal bonds	6,658		22		(11		)	6,669

	Total available-for-sale securities		$	25,490	$	90	$	(54	)	$	25,526

Marketable Securities

Maturities of marketable securities classified as available-for-sale securities were as follows at December 31, 2013:



(In thousands)		Amortized cost		Estimated fair value

	Due within one year	$	3,198	$	3,200
	Due after one year through five years	20,711		20,737
	Due after five years through ten years	1,581		1,589

Total available-for-sale securities		$	25,490	$	25,526

Available-for-sale Marketable Securities

The available-for-sale marketable securities in a gross unrealized loss position as of December 31, 2013 are summarized as follows:



	Less than 12 months					More than 12 months					Total
(In thousands)	Estimated fair value		Gross unrealized holding losses			Estimated fair value		Gross unrealized holding losses			Estimated fair value		Gross unrealized holding losses
As of December 31, 2013
Corporate bonds and notes	$	204	$	(1	)	$	6,687	$	(42	)	$	6,891	$	(43	)
Municipal bonds	355		(1		)	1,125		(10		)	1,480		(11		)

	$	559	$	(2	)	$	7,812	$	(52	)	$	8,371	$	(54	)

Business Combination, Goodwill and Intangibles (Tables)

12 Months Ended

Dec. 31, 2013

Business Acquisition

Schedule of Goodwill

Changes in the carrying amount of the company's goodwill for the years ended December 31, 2013 and 2012 were as follows:



	2013		2012
Balance as of January 1,
Goodwill	$	3,472	$	1,153
Accumulated impairment losses	—		—
	3,472		1,153
Goodwill acquired during the year	—		2,319
Balance as of December 31,
Goodwill	3,472		3,472
Accumulated impairment losses	—		—
	$	3,472	$	3,472

Schedule of Finite-Lived and Indefinite-Lived Intangible Assets

Intangible assets as of December 31, 2013 and 2012 consisted of the following:



	Estimated	As of December 31,
	useful lives	2013			2012
Tradename	7 years	$	435		$	435
Patents and technological know-how	10 years	2,070			2,070
Proprietary software	3 to 15 years	2,961			2,961
In-process research and development	Indefinite	—			159
Other	5 years	208			49
		5,674			5,674
Accumulated amortization		(1,964		)	(1,416		)
		$	3,710		$	4,258

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

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



Years ending December 31,
2014	$	559
2015	515
2016	477
2017	389
2018	374
Thereafter	1,396
	$	3,710

VCON Video Conferencing, Ltd. (VCON)

Business Acquisition

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

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



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

Business Acquisition, Pro Forma Information

Revenue and earnings of the combined entity for the years ended December 31, 2013 and 2012 calculated as though the business combination occurred prior to the year ended December 31, 2012, were as follows:



	Year ended December 31,
	2013		2012
Revenue	$	49,592	$	46,630
Net income	5,179		26,603

Inventories (Tables)

12 Months Ended

Dec. 31, 2013

Inventory Disclosure [Abstract]

Schedule of inventory, net of reserves

Inventories, net of reserves, consisted of the following:



	As of December 31,
	2013		2012
Current:
Raw materials	$	1,362	$	734
Finished goods (including distributor channel inventories)	10,916		10,139
	$	12,278	$	10,873
Long-term:
Raw materials	$	227	$	891
Finished goods	324		1,064
	$	551	$	1,955

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2013

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	2013			2012
Office furniture and equipment	3 to 10 years	$	6,676		$	9,552
Leasehold improvements	1 to 6 years	1,429			1,413
Manufacturing and test equipment	2 to 10 years	2,681			2,673
		10,786			13,638
Accumulated depreciation and amortization		(8,961		)	(11,930		)
Property and equipment, net		$	1,825		$	1,708

Leases and Deferred Rent (Tables)

12 Months Ended

Dec. 31, 2013

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,
2014	$	914
2015	945
2016	581
2017	260
2018	91
Thereafter	91
Total minimum lease payments	$	2,882

Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consist of the following:



	As of December 31,
	2013		2012
Accrued salaries and other compensation	$	783	$	1,345
Other accrued liabilities	978		798
Total	$	1,761	$	2,143

Share-Based Payments (Tables)

12 Months Ended

Dec. 31, 2013

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,
	2013	2012
Risk-free interest rate, average	1.8%	1.3%
Expected option life, average	6.8 years	7.2 years
Expected price volatility, average	49.8%	51.4%
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
As of December 31, 2012	1,137,283		$	4.63
Granted	127,500		8.52
Expired and canceled	(4,323	)	4.03
Forfeited prior to vesting	(26,536	)	4.73
Exercised	(122,650	)	3.99
As of December 31, 2013	1,111,274		$	5.15	4.86	$	4,016
Vested and Expected to Vest at December 31, 2013	1,111,274		$	5.15	4.86	$	4,016
Vested at December 31, 2013	850,159		$	4.76	3.62	$	3,395

Significant Customers (Tables)

12 Months Ended

Dec. 31, 2013

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,
	2013		2012
Customer A	18.2	%	17.5	%
Customer B	10.8	%	*
Total	29.0	%	17.5	%

* 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,
	2013		2012
Customer A	24.9	%	20.3	%
Customer B	12.4	%	*
Total	37.3	%	20.3	%

Fair Value Measurements Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value of the Financial Instruments Re-measured by the Company

The following table sets forth the fair value of the financial instruments re-measured by the Company as of December 31, 2013:



		Level 1		Level 2		Level 3		Total
(In thousands)
December 31, 2013
Corporate bonds and notes		$	—	$	18,857	$	—	$	18,857
Municipal bonds		—		6,669		—		6,669

	Total	$	—	$	25,526	$	—	$	25,526

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

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



	Year ended December 31,
	2013			2012
Domestic	$	8,714		$	42,990
Foreign	(945		)	(435		)
Total	$	7,769		$	42,555

Schedule of Components of Income Tax Expense (Benefit)

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



	Year ended December 31,
	2013			2012
Current:
Federal	$	(1,993	)	$	(16,910	)
State	(765		)	(381		)
Foreign	144			(74		)
Total current	(2,614		)	(17,365		)
Deferred:
Federal	202			455
State	(234		)	46
Foreign	165			160
	133			661
Change in valuation allowance	(109		)	796
Total deferred	24			1,457
(Provision) for income taxes	$	(2,590	)	$	(15,908	)

Schedule of Effective Income Tax Rate Reconciliation

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



	Year ended December 31,
	2013			2012
Tax (provision) at Federal statutory rate	$	(2,642	)	$	(14,894	)
State income tax (provision), net of federal benefit	(293		)	(1,476		)
Research and development tax credits	616			357
Foreign earnings or losses taxed at different rates	(170		)	(136		)
Other	8			(555		)
Change in valuation allowance	(109		)	796
Tax (provision)	$	(2,590	)	$	(15,908	)

Schedule of Deferred Tax Assets and Liabilities

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



	As of December 31, 2013						As of December 31, 2012
	Current			Long-term			Current			Long-term
Deferred revenue	$	971		$	—		$	856		$	—
Basis difference in intangible assets	—			82			—			159
Inventory reserve	1,955			—			1,871			—
Net operating loss carryforwards	—			682			—			667
Research and development tax credits	—			31			—			248
Accrued expenses	159			—			140			—
Stock-based compensation	—			679			—			684
Allowance for sales returns and doubtful accounts	47			—			20			—
Difference in property and equipment basis	—			(388		)	—			(475		)
Other	458			51			462			(19		)
Total net deferred income tax asset	3,590			1,137			3,349			1,264
Less: Valuation allowance	(265		)	(113		)	(201		)	(69		)
Net deferred income tax asset (liability)	$	3,325		$	1,024		$	3,148		$	1,195

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,
	2013			2012
Balance - beginning of year	$	2,384		$	523
Additions based on tax positions related to the current year	84			795
Additions for tax positions of prior years	45			1,082
Reductions for tax positions of prior years	(518		)	—
Settlements	—			—
Lapse in statutes of limitations	(94		)	(16		)
Uncertain tax positions, ending balance	$	1,901		$	2,384

Geographic Sales Information (Tables)

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Schedule of Revenue by Geographic Area



	Year ended December 31,
	2013		2012
United States	$	32,292	$	30,312
All other countries	17,300		16,105
Total	$	49,592	$	46,417

Business Description, Basis of Presentation and Significant Accounting Policies - Rollforward Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of the year	$ 60	$ 149
Charged to costs and expenses	96	25
Write offs, net of recoveries	(27)	(114)
Balance at end of the year	$ 129	$ 60

Business Description, Basis of Presentation and Significant Accounting Policies - Deferred Revenue (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Deferred Revenue Disclosure [Abstract]
Deferred revenue	$ 4,158	$ 3,593
Inventories	12,278	10,873
Deferred gross profit	2,638	2,304
Distributor Channel Inventory [Member]
Deferred Revenue Disclosure [Abstract]
Inventories	$ 1,520	$ 1,289

Business Description, Basis of Presentation and Significant Accounting Policies - Warranty Accrual (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Movement in Standard Product Warranty Accrual
Balance at the beginning of year	$ 385	$ 467
Accruals/additions	433	443
Usage/claims	(480)	(525)
Balance at end of year	$ 338	$ 385

Business Description, Basis of Presentation and Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Numerator:
Net income	$ 5,179	$ 26,647
Denominator:
Basic weighted average shares outstanding	9,064,340	9,107,234
Dilutive common stock equivalents using treasury stock method	391,178	107,451
Diluted weighted average shares (in shares)	9,455,518	9,214,685
Basic earnings per common share: (in dollars per share)	$ 0.57	$ 2.93
Diluted earnings per common share: (in dollars per share)	$ 0.55	$ 2.89
Weighted average options outstanding	1,128,045	1,197,487
Anti-dilutive options not included in the computation	149,773	681,820

Business Description, Basis of Presentation and Significant Accounting Policies - Property Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2013
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

Business Description, Basis of Presentation and Significant Accounting Policies - Goodwill and Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2013
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

Business Description, Basis of Presentation and Significant Accounting Policies - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)
Accounting Policies [Abstract]
Inventory, Parts and Components, Net of Reserves	$ 45	$ 39
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	$ 472	525
Deferred tax assets, valuation allowance	$ 378	$ 270

Marketable Securities Marketable Securities, Gains and Losses (Details) $ in Thousands	Dec. 31, 2013 USD ($)
Gain (Loss) on Investments [Line Items]
Available-for-sale Securities, Amortized Cost Basis	$ 25,490
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	90
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(54)
Available-for-sale Securities, Debt Securities	25,526
Corporate Debt Securities [Member]
Gain (Loss) on Investments [Line Items]
Available-for-sale Securities, Amortized Cost Basis	18,832
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	68
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(43)
Available-for-sale Securities, Debt Securities	18,857
Municipal Bonds [Member]
Gain (Loss) on Investments [Line Items]
Available-for-sale Securities, Amortized Cost Basis	6,658
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	22
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(11)
Available-for-sale Securities, Debt Securities	$ 6,669

Marketable Securities Marketable Securities, Maturities (Details) $ in Thousands	Dec. 31, 2013 USD ($)
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis	$ 3,198
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	3,200
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis	20,711
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value	20,737
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis	1,581
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value	1,589
Available-for-sale Securities, Amortized Cost Basis	25,490
Available-for-sale Securities	$ 25,526

Marketable Securities Securities in unrealized loss position (Details) $ in Thousands	Dec. 31, 2013 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	$ 8,371
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(54)
Short-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	559
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(2)
Other Long-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	7,812
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(52)
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	6,891
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(43)
Corporate Debt Securities [Member] \| Short-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	204
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(1)
Corporate Debt Securities [Member] \| Other Long-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	6,687
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(42)
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,480
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(11)
Municipal Bonds [Member] \| Short-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	355
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	(1)
Municipal Bonds [Member] \| Other Long-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	1,125
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	$ (10)

Business Combination, Goodwill and Intangibles - Purchase Price Allocation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Feb. 16, 2012	Dec. 31, 2011
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	$ 3,472	$ 3,472		$ 1,153
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract]
Amortization of Intangible Assets	$ 548	$ 679
VCON Video Conferencing, Ltd. (VCON)
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Inventory			$ 40
Property and equipment			34
Product warranty liability			(8)
Proprietary software			2,247
Goodwill			2,319
Total			4,632
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract]
Business acquisition, purchase price allocation, goodwill, expected tax deductible amount			$ 0

Business Combination, Goodwill and Intangibles - Pro Forma Information (Details) - USD ($) $ in Thousands	10 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition, Pro Forma Information [Abstract]
Revenue from operations		$ 49,592	$ 46,417
VCON Video Conferencing, Ltd. (VCON)
Business Acquisition, Pro Forma Information [Abstract]
Revenue from date of acquisition	$ 1,319
Net loss from date of acquisition	$ (1,170)
Pro Forma Revenue			46,630
Net income		$ 5,179	$ 26,603

Business Combination, Goodwill and Intangibles - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Goodwill Roll Forward
Beginning goodwill, gross	$ 3,472	$ 1,153
Beginning acculumlated impairment losses	0	0
Balance at the beginning of the year	3,472	1,153
Goodwill acquired during the year	0	2,319
Ending goodwill, gross	3,472	3,472
Ending accumulated impairment losses	0	0
Balance at end of year	$ 3,472	$ 3,472

Business Combination, Goodwill and Intangibles - Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
Total finite and indefinite-lived intangible assets, gross	$ 5,674	$ 5,674
Accumulated amortization	(1,964)	(1,416)
Intangible assets, net (excluding goodwill)	3,710	4,258
Amortization of Intangible Assets	548	679
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2014	559
2015	515
2016	477
2017	389
2018	374
Thereafter	1,396
Finite-lived intangible assets, future amortization expense	$ 3,710
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	2,961
Other
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	5 years
Finite-lived intangible assets, gross	$ 208	49
In-process Research and Development
Goodwill and Intangible Assets Disclosure [Abstract]
In-process research and development	$ 0	$ 159
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

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Current:
Raw materials	$ 1,362	$ 734
Finished goods (including distributor channel inventories)	10,916	10,139
Inventories	12,278	10,873
Long-term:
Raw materials	227	891
Finished goods	324	1,064
Inventories, long-term	551	1,955
Distributor Channel Inventory [Member]
Current:
Inventories	$ 1,520	$ 1,289

Inventories - Losses on Valuation of Inventory (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Inventory Disclosure [Abstract]
Losses incurred on valuation of inventory and write-off of obsolete inventory	$ 996	$ 1,235

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, gross	$ 10,786	$ 13,638
Accumulated depreciation and amortization	(8,961)	(11,930)
Property and equipment, net	1,825	1,708
Depreciation expense	$ 874	1,238
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	$ 6,676	9,552
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	$ 1,429	1,413
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	$ 2,681	$ 2,673
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	1 Months Ended	12 Months Ended
Leases and Deferred Rent (Details) $ in Thousands	Mar. 31, 2014 ft²	Dec. 31, 2013 USD ($) ft²	Dec. 31, 2012 USD ($) ft²
Operating Leased Asset
Rent expense		$ 909	$ 973
Amortization of deferred rent		110	$ 42
Future minimum lease payments
2014		914
2015		945
2016		581
2017		260
2018		91
Thereafter		91
Total minimum lease payments		$ 2,882
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 \| Minimum
Operating Leased Asset
Term of lease commitment		2 years
Warehouse \| ISRAEL \| Maximum
Operating Leased Asset
Term of lease commitment		4 years
Warehouse \| Tzur Yigal
Operating Leased Asset
Area leased (sqft) \| ft²		1,000
Warehouse \| Tzur Yigal \| Minimum
Operating Leased Asset
Lessee arrangements, term of contract		24 months
Subsequent Event \| Manufacturing and Office Facility \| Alachua
Operating Leased Asset
Area leased (sqft) \| ft²	46,000
Subsequent Event \| Manufacturing and Office Facility \| Alachua \| Minimum
Operating Leased Asset
Term of lease commitment	2 years
Subsequent Event \| Manufacturing and Office Facility \| Alachua \| Maximum
Operating Leased Asset
Term of lease commitment	2 years

Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Accrued Liabilities [Abstract]
Accrued salaries and other compensation	$ 783	$ 1,345
Other accrued liabilities	978	798
Total	$ 1,761	$ 2,143

Commitments and Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Contingencies
Uncertain tax positions	$ 1,901	$ 2,384	$ 523
Inventories
Schedule of Contingencies
Long-term purchase commitment, amount	$ 2,862

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	Feb. 28, 2009 counts
Materially Misstated Financial Statements
Loss Contingencies
Number of officers \| officers						2
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, 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, damages paid, value					3,630
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
Flood [Member] \| Counterclaims [Member]
Loss Contingencies
Gain contingency, unrecorded amount					$ 3,390

Commitments and Contingencies - Gain Contingencies (Details) $ in Thousands	1 Months Ended
	Dec. 31, 2012 USD ($)	Feb. 28, 2012 USD ($)	Oct. 31, 2008 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2008 USD ($)	Jan. 31, 2007 principals
Other Litigation
Gain Contingencies
Loss contingency, estimate of possible loss				$ 1,000
Misappropriation of Trade Secrets [Member] \| Biamp
Gain Contingencies
Gain contingency, number of defendents \| principals						2
Gain (loss) related to litigation settlement		$ 3,860
Misappropriation of Trade Secrets [Member] \| Other Defendents
Gain Contingencies
Gain contingency, unrecorded amount				$ 7,658
Gain (loss) related to litigation settlement		$ 250
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, 2013 plan shares	Dec. 31, 1999 shares	Jun. 30, 2002 shares	Dec. 31, 2012 shares
Share-based Compensation Arrangement by Share-based Payment Award
Number of share-based compensation plans \| plan			2
Options, grants in period, gross			127,500
Share-based payment award, expiration period			10 years
Share-based payment award, options, outstanding, number			1,111,274			1,137,283
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
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
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			550,000
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			561,274
Number of options authorized and unissued			259,154

Share-Based Payments - Black-Scholes Assumptions (Details) - Stock Options	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free interest rate, average	1.80%	1.30%
Expected option life, average	6 years 9 months 1 day	7 years 2 months 12 days
Expected price volatility, average	49.80%	51.40%
Expected dividend yield	0.00%	0.00%

Share-Based Payments - Option Rollforward (Details) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, beginning (in shares)	1,137,283
Granted (in shares)	127,500
Expired and canceled (in shares)	(4,323)
Forfeited prior to vesting (in shares)	(26,536)
Exercise of stock options (in shares)	(122,650)
Outstanding, ending (in shares)	1,111,274	1,137,283
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)	$ 4.63
Weighted average exercise price, granted (in dollars per share)	8.52
Weighted average exercise price, expired and canceled (in dollars per share)	4.03
Weighted average exercise price, forfeited prior to vesting (in dollars per share)	4.73
Weighted average exercise price, exercised (in dollars per share)	3.99
Weighted average exercise price, outstanding, ending (in dollars per share)	$ 5.15	$ 4.63
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract]
Vested (in shares)	850,159
Vested, weighted average exercise price (in dollars per share)	$ 4.76
Vested, weighted average remaining contractual term (in years)	3 years 7 months 13 days
Vested, aggregate intrinsic value (in dollars)	$ 3,395,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted average remaining contractual term (in years)	4 years 10 months 10 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 4,016,000
Weighted average grant date fair value, granted (in dollars per share)	$ 4.38	$ 2.16
Intrinsic value of options exercised	$ 448,000	$ 152,000

Share-Based Payments - Non-vested Roll forward (Details) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Stock options, pre-tax compensation	$ 296,000	$ 241,000
Stock option, tax benefit	86,000	$ 18,000
Nonvested awards, total compensation cost not yet recognized, stock options	$ 784,000
Nonvested awards, total compensation cost not yet recognized, period for recognition	2 years 7 months 6 days

Share-Based Payments Share-Based Payments - Stock Repurchase Program (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Shareholders' Equity and Share-based Payments [Abstract]
Treasury stock, shares, acquired	300,087	94,744
Stock repurchased during period, value	$ 2,416	$ 384
Stock repurchase program, remaining authorized repurchase amount	$ 7,200

Significant Customers (Details) - Customer Concentration Risk

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Revenues

Concentration Risk

Concentration risk, percentage

29.00%

17.50%

Revenues | Customer A

Concentration Risk

Concentration risk, percentage

18.20%

17.50%

Revenues | Customer B

Concentration Risk

Concentration risk, percentage

10.80%

0.00%

^[1]

Gross accounts receivable

Concentration Risk

Concentration risk, percentage

37.30%

20.30%

Gross accounts receivable | Customer A

Concentration Risk

Concentration risk, percentage

24.90%

20.30%

Gross accounts receivable | Customer B

Concentration Risk

Concentration risk, percentage

12.40%

0.00%

[1]	Sales didn't exceed 10% of the revenue.

Fair Value Measurements Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] $ in Thousands	Dec. 31, 2013 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	$ 25,526
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	18,857
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	6,669
Fair Value, Inputs, Level 1 [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	0
Fair Value, Inputs, Level 1 [Member] \| Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	0
Fair Value, Inputs, Level 1 [Member] \| Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	0
Fair Value, Inputs, Level 2 [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	25,526
Fair Value, Inputs, Level 2 [Member] \| Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	18,857
Fair Value, Inputs, Level 2 [Member] \| Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	6,669
Fair Value, Inputs, Level 3 [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	0
Fair Value, Inputs, Level 3 [Member] \| Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	0
Fair Value, Inputs, Level 3 [Member] \| Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	$ 0

Income Taxes (Tables) - Income before Taxes and Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract]
Domestic	$ 8,714	$ 42,990
Foreign	(945)	(435)
Total	7,769	42,555
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
Current, U.S. Federal	(1,993)	(16,910)
Current, U.S. State	(765)	(381)
Current, Non-U.S.	144	(74)
Total current	(2,614)	(17,365)
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]
Deferred, U.S. Federal	202	455
Deferred U.S. State	(234)	46
Deferred foreign	165	160
Deferred provision before change in valuation allowance	133	661
Change in valuation allowance	(109)	796
Total deferred	24	1,457
(Provision) for income taxes	$ (2,590)	$ (15,908)

Income Taxes (Tables) - Reconciliation of Amount of Tax at Statutory Rate to Effective Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
Tax (provision) at Federal statutory rate	$ (2,642)	$ (14,894)
State income tax (provision), net of federal benefit	(293)	(1,476)
Research and development tax credits	616	357
Foreign earnings or losses taxed at different rates	(170)	(136)
Other	8	(555)
Change in valuation allowance	(109)	796
(Provision) for income taxes	$ (2,590)	$ (15,908)

Income Taxes (Tables) - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Dec. 31, 2012
Components of Deferred Tax Assets and Liabilities [Abstract]
Deferred revenue, current	$ 971	$ 856
Intangibles and related other, long-term	82	159
Inventory reserve, current	1,955	1,871
Net operationg loss carryforwards, long-term	682	667
Research and development tax credits, long-term	31	248
Accrued expenses, current	159	140
Stock-based compensation, long-term	679	684
Allowance for sales returns and doubtful accounts, current	47	20
Difference in property and equipment basis, long-term	(388)	(475)
Other, current	458	462
Other, long-term	51	(19)
Total net deferred income tax assets, current	3,590	3,349
Total net deferred income tax asset, long-term	1,137	1,264
Less: Valuation allowance, current	(265)	(201)
Less: valuation allowance, long-term	(113)	(69)
Net deferred income tax asset (liability), current	3,325	3,148
Net deferred income tax asset (liability), long-term	$ 1,024	$ 1,195

Income Taxes (Tables) - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance - beginning of year	$ 2,384	$ 523
Additions based on tax positions related to the current year	84	795
Additions for tax positions of prior years	45	1,082
Reductions for tax positions of prior years	(518)	0
Settlements	0	0
Lapse in statutes of limitations	(94)	(16)
Uncertain tax positions, ending balance	$ 1,901	$ 2,384

Income Taxes (Tables) - Narrative (Details) - USD ($)	12 Months Ended
Income Taxes (Tables) - Narrative (Details) - USD ($)	Dec. 31, 2013	Dec. 31, 2012
Operating Loss Carryforwards
Income Tax Reconciliation, Tax Credits, Research	$ (616,000)	$ (357,000)
Deferred Tax Assets, Tax Credit Carryforwards, Research	34,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	623,000	802,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	51,000	$ 56,000
Internal Revenue Service (IRS)
Operating Loss Carryforwards
Operating Loss Carryforwards	1,118,000
Foreign Tax Authority
Operating Loss Carryforwards
Operating Loss Carryforwards	1,827,000
Minimum
Operating Loss Carryforwards
Income Tax Reconciliation, Tax Credits, Research	$ 277,000

Geographic Sales Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 49,592	$ 46,417
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	32,292	30,312
All other countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 17,300	$ 16,105

Subsequent Events Subsequent Event (Details) - Subsequent Event € in Thousands, shares in Thousands, $ in Thousands	Mar. 07, 2014 USD ($) shares	Jan. 07, 2014 EUR (€)	Jan. 07, 2014 USD ($)
Spontania [Member]
Subsequent Event [Line Items]
Business Combination, Consideration Transferred		€ 3,650	$ 5,000
Sabine, Inc. [Member]
Subsequent Event [Line Items]
Business Combination, Consideration Transferred	$ 7,200
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares \| shares	1,500
Business Combination, Consideration Transferred, Liabilities Incurred	$ 1,250