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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2015	Mar. 14, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	CLEARONE INC
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Entity Central Index Key	0000840715
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		9,185,039
Entity Public Float			$ 79,345,876
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	2015
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 13,412	$ 7,440
Marketable securities	7,161	6,994
Receivables, net of allowance for doubtful accounts of $54 and $58, as of December 31, 2015 and 2014 respectively	8,692	9,916
Inventories	13,447	12,766
Distributor channel inventories	1,628	1,698
Prepaid expenses and other assets	1,806	2,143
Total current assets	46,146	40,957
Long-term marketable securities	19,204	19,162
Long-term inventories, net	2,018	876
Property and equipment, net	1,589	2,039
Intangibles, net	6,638	7,896
Goodwill	12,724	12,724
Deferred income taxes	5,093	5,089
Other assets	117	117
Total assets	93,529	88,860
Current liabilities:
Accounts payable	2,815	3,057
Accrued liabilities	2,243	2,694
Deferred product revenue	4,549	5,004
Total current liabilities	9,607	10,755
Deferred rent	150	248
Other long-term liabilities	1,203	1,841
Total liabilities	10,960	12,844
Shareholders' equity:
Common stock, par value $0.001, 50,000,000 shares authorized, 9,183,957 and 9,097,827 shares issued and outstanding as of December 31, 2015 and 2014, respectively	9	9
Additional paid-in capital	46,291	44,939
Accumulated other comprehensive (loss)	(166)	(8)
Retained earnings	36,435	31,076
Total shareholders' equity	82,569	76,016
Total liabilities and shareholders' equity	$ 93,529	$ 88,860

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 54	$ 58
Common Stock:
Par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, sharse issued (in shares)	9,183,957	9,097,827
Common stock, shares outstanding (in shares)	9,183,957	9,097,827

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenue	$ 57,796	$ 57,909
Cost of goods sold	21,077	22,586
Gross profit	36,719	35,323
Operating expenses:
Sales and marketing	10,646	11,227
Research and product development	8,318	8,969
General and administrative	7,493	7,152
Total operating expenses	26,457	27,348
Operating income	10,262	7,975
Other income, net	289	254
Income before income taxes	10,551	8,229
Provision for income taxes	(3,775)	(2,633)
Net income	$ 6,776	$ 5,596
Basic earnings per common share	$ 0.74	$ 0.61
Diluted earnings per common share	$ 0.71	$ 0.58
Basic weighted average shares outstanding	9,127,385	9,166,769
Diluted weighted average shares outstanding	9,594,659	9,581,326
Unrealized gain (loss) on available-for-sale securities, net of tax	$ (81)	$ 14
Change in foreign currency translation adjustment	(77)	(45)
Comprehensive income	$ 6,618	$ 5,565

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Other Comprehensive Income (Loss)	Retained Earnings
Common stock outstanding, beginning (in shares) at Dec. 31, 2013		8,986,080
Balance at the beginning of the period at Dec. 31, 2013	$ 70,335	$ 9	$ 41,311	$ 23	$ 28,992
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		234,432
Exercise of stock options	$ 1,337		1,337
Stock repurchased (in shares)	(272,767)	(272,767)
Stock repurchased	$ (2,598)				(2,598)
Cash dividends, $.10 per share	(914)				(914)
Stock issued - Sabine acquisition (in shares)		150,000
Stock issued - Other	1,679		1,679
Tax benefit - stock option exercises	211		211
Stock-based compensation expense	401		401
Employee stock purchase plan (in shares)		82
Employee stock purchase plan	0		0
Unrealized gain on available-for-sale securities, net of tax	14			14
Foreign currency translation adjustment	(45)			(45)
Net income	$ 5,596				5,596
Common stock outstanding, ending (in shares) at Dec. 31, 2014	9,097,827	9,097,827
Balance at end of the period at Dec. 31, 2014	$ 76,016	$ 9	44,939	(8)	31,076
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		56,143
Exercise of stock options	308		308
Cash dividends, $.10 per share	(1,417)				(1,417)
Stock issued - Other	155		155
Tax benefit - stock option exercises	41		41
Stock-based compensation expense	552		552
Stock-based compensation - Dividend Equivalents (in shares)		15,005
Stock-based compensation - Dividend Equivalents	265		265
Stock-based compensation - ESPP	31		31
Employee stock purchase plan (in shares)		14,982
Employee stock purchase plan	31
Unrealized gain on available-for-sale securities, net of tax	(81)			(81)
Foreign currency translation adjustment	(77)			(77)
Net income	$ 6,776				6,776
Common stock outstanding, ending (in shares) at Dec. 31, 2015	9,183,957	9,183,957
Balance at end of the period at Dec. 31, 2015	$ 82,569	$ 9	$ 46,291	$ (166)	$ 36,435

Consolidated Statements of Shareholders' Equity (parentheticals) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Common Stock, Dividends, Per Share, Declared	$ 0.155	$ 0.100

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 6,776	$ 5,596
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	2,058	1,972
Amortization of deferred rent	(95)	(79)
Stock-based compensation expense	848	401
Recoveries of doubtful accounts, net	(4)	(71)
Write-down of inventory to net realizable value	496	946
Loss on disposal of assets	7	0
Tax benefit from exercise of stock options	(41)	(211)
Deferred income taxes	(4)	(495)
Changes in operating assets and liabilities:
Receivables	1,201	(251)
Inventories	(2,249)	(2,614)
Prepaid expenses and other assets	824	844
Accounts payable	(242)	(84)
Accrued liabilities	(1,219)	1,451
Income taxes payable	323	(947)
Deferred product revenue	(447)	858
Other long-term liabilities	(638)	(606)
Net cash provided by operating activities	7,594	6,710
Cash flows from investing activities:
Payment towards business acquisitions	0	(13,068)
Purchase of property and equipment	(359)	(642)
Purchase of intangibles	0	(90)
Proceeds from maturities and sales of marketable securities	7,341	4,650
Purchase of marketable securities	(7,630)	(5,266)
Net cash used in investing activities	(648)	(14,416)
Cash flows from financing activities:
Net proceeds from equity-based compensation programs	463	1,337
Tax benefits from equity-based compensation programs	41	211
Stock registration costs	0	(55)
Dividend payments	(1,417)	(914)
Payments for stock repurchases	0	(2,598)
Net cash used in financing activities	(913)	(2,019)
Effect of exchange rate changes on cash and cash equivalents	(61)	(27)
Net increase (decrease) in cash and cash equivalents	5,972	(9,752)
Cash and cash equivalents at the beginning of the period	7,440	17,192
Cash and cash equivalents at the end of the period	13,412	7,440
Supplemental disclosure of cash flow information:
Cash paid for interest	0	3
Cash paid for income taxes	3,730	3,017
Issuance of common stock in connection with acquisition of Sabine	$ 0	$ 1,679

Business Description, Basis of Presentation and Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

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, 2015 and 2014.

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 accounting principles generally accepted 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 – We are exposed to foreign currency exchange risk through our foreign subsidiaries. Other than our Spain subsidiary, our foreign subsidiaries are U.S. dollar functional, for which gains and losses arising from remeasurement are included in earnings. Our Spain subsidiary is Euro functional, for which gains and losses arising from translation are included in accumulated other comprehensive income or loss. We translate and remeasure foreign assets and liabilities at exchange rates in effect at the balance sheet dates. We translate revenue and expenses using average rates during the year.

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 shareholders' 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, 2015 and 2014.

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, 2015 and 2014 was as follows:



	Year Ended December 31,
	2015			2014
Balance at beginning of the year	$	58		$	129
Allowance increase (decrease)	36			(49		)
Write offs, net of recoveries	(40		)	(22		)
Balance at end of the year	$	54		$	58

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 $75 and $47, as of December 31, 2015 and 2014, 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 its 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,
	2015		2014
Deferred revenue	$	4,549	$	5,004
Deferred cost of goods sold	1,628		1,698
Deferred gross profit	$	2,921	$	3,306

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. These reserve costs are classified as accrued liabilities on the consolidated balance sheets. 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,
	2015			2014
Balance at the beginning of year	$	331		$	338
Accruals/additions	442			511
Usage/claims	(485		)	(518		)
Balance at end of year	$	288		$	331

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, 2015 and 2014 totaled $728 and $768, 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, 2015 and 2014, the Company had a valuation allowance of $1,071 and $786 against 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,
	2015		2014
Numerator:
Net income	$	6,776	$	5,596
Denominator:
Basic weighted average shares	9,127,385		9,166,769
Dilutive common stock equivalents using treasury stock method	467,274		414,557
Diluted weighted average shares	9,594,659		9,581,326

Basic earnings per common share:	$	0.74	$	0.61
Diluted earnings per common share:	$	0.71	$	0.58

Weighted average options outstanding	1,053,785		975,696
Anti-dilutive options not included in the computation	177,125		209,751

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 - In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for the Company on January 1, 2017. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on the consolidated financial statements.

In November 2015 the FASB issued ASU 2015-17, Income Taxes (Topic 740), simplifying the presentation of deferred taxes on the balance sheet by requiring companies to classify everything as either a non-current asset or non-current liability. Early adoption of this ASU is permitted. ClearOne has adopted this standard update early as it would simplify the presentation of taxes on the balance sheet and within the income tax footnote. The quantitative effects of our adoption of this standard in our results and balances for the year ended December 31, 2014 are as follows:



	December 31, 2014
	Originally Reported	Effect of Adoption		Reported Herein
Balance Sheet:
Deferred income taxes - current assets	3,824	(3,824	)	—
Deferred income taxes - non-current assets	1,265	3,824		5,089

On February 25, 2016, FASB released Accounting Standards Update No. 2016-02, Leases (Topic 842) to bring transparency to lessee balance sheets. The ASU will require organizations that lease assets (lessees) to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The standard will apply to both types of leases-capital (or finance) leases and operating leases. Previously, GAAP has required only capital leases to be recognized on lessee balance sheets. The standard will take effect the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early application will be permitted for all organizations. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on the consolidated financial statements.

Marketable Securities

12 Months Ended

Dec. 31, 2015

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 shareholders' 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, 2015 and 2014 were as follows:



			Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
December 31, 2015
	Available-for-sale securities:
		Corporate bonds and notes	$	20,827	$	50	$	(133	)	$	20,744
		Municipal bonds	5,608		18		(5		)	5,621

	Total available-for-sale securities		$	26,435	$	68	$	(138	)	$	26,365



			Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
December 31, 2014
	Available-for-sale securities:
		Corporate bonds and notes	$	19,804	$	89	$	(55	)	$	19,838
		Municipal bonds	6,292		28		(2		)	6,318

	Total available-for-sale securities		$	26,096	$	117	$	(57	)	$	26,156

Maturities of marketable securities classified as available-for-sale securities were as follows at December 31, 2015:



		Amortized cost		Estimated fair value

	Due within one year	$	7,179	$	7,161
	Due after one year through five years	19,256		19,204
	Due after five years through ten years	—		—
Total available-for-sale securities		$	26,435	$	26,365

Debt securities in an unrealized loss position as of December 31, 2015 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, 2015 are summarized as follows:



	Less than 12 months					More than 12 months					Total
	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, 2015
Corporate bonds and notes	$	10,256	$	(88	)	$	3,298	$	(45	)	$	13,554	$	(133	)
Municipal bonds	1,674		(4		)	640		(1		)	2,314		(5		)

	$	11,930	$	(92	)	$	3,938	$	(46	)	$	15,868	$	(138	)

- Definition

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

+ References + Details

Business Combination, Goodwill and Intangibles

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Business Combinations, Goodwill and Intangibles

Acquisition of Sabine

On March 7, 2014, the Company completed the acquisition of Sabine, Inc. ("Sabine") through a stock purchase agreement ("SPA"). Sabine manufactures, designs and sells Sacom professional wireless microphone systems for live and installed audio. It also makes FBX Feedback Exterminator for reliable automatic feedback control. With the addition of Sabine, ClearOne will have reliable and exclusive access to the wireless microphones that are a critical component of ClearOne’s complete microphone portfolio.

Pursuant to the SPA, the Company (i) paid initial consideration of $8,141 in cash, (ii) accrued for possible additional earn-out payments over the next two years, estimated to be $657, and (iii) issued 150,000 shares of restricted common stock of the Company, valued at $1,679 (determined on the basis of the closing market price of the Company's stock on the acquisition date). The purchase price was paid out of cash on hand. The SPA contains representations, warranties and indemnifications customary for a transaction of this type.

The following table summarizes the consideration paid for the acquisition:



	Consideration
Cash	$	8,141
Common stock	1,679
Contingent consideration	657
Total	$	10,477

The fair values of Sabine 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
Cash	$	125
Accounts receivable	255
Inventories	844
Prepaid and other	105
Intangibles	3,970
Property and equipment	292
Other long-term assets	11
Goodwill	5,510
Deferred tax asset	245
Trade accounts payable	(420		)
Accrued liabilities	(405		)
Stock registration costs	(55		)
Total	$	10,477

The goodwill of $5,510 related to the acquisition of of Sabine is composed of expected synergies in utilizing Sabine technology in ClearOne product offerings, reduction in future combined research and development expenses, and intangible assets including acquired workforce that do not qualify for separate recognition. The goodwill balance of $5,510 related to the acquisition of Sabine is expected to be deductible for tax purposes.

Spontania business of Spain-based Dialcom Networks, S.L.

On April 1, 2014 ClearOne, Inc. closed on the acquisition of the Spontania business of Spain-based Dialcom Networks, S.L. The Spontania cloud-based service empowers customers to deploy HD video conferencing, web collaboration, and more with equipment most businesses have and use every day - video-conferencing endpoints, desktops, laptops, web browsers, tablets, and smartphones. With Spontania there is no hardware investment and the service operates off of a reservation-less model, enabling on-demand video communications from virtually anywhere, anytime, with anyone on any device.

The aggregate purchase price under the terms of the transaction was approximately €3.66 million in cash (approximately US$5.1 million), after certain closing adjustments. ClearOne did not assume any debt or cash. The cash purchase price was paid out of cash on hand. The addition of this technology was an integral part of the company’s strategy to build an all-inclusive video collaboration portfolio.

The fair value of identified assets and liabilities acquired from the Spontania acquisition was as follows:



	Fair value
Intangibles	$	1,335
Property and equipment	47
Goodwill	3,741
Accrued liabilities	(71		)
Total	$	5,052

The goodwill of $3,741 relates to the acquisition of Spontania cloud-based technology and intangible assets including acquired workforce that does not qualify for separate recognition. The goodwill of $3,741 from the Spontania acquisition is expected to be deductible for tax purposes.

Acquisitions Expenses

The Company incurred $588 in acquisition related expenses for the Sabine and Spontania acquisitions, all of which were categorized under General and administrative expenses in the Consolidated Statement of Income and Comprehensive Income for the year ended December 31, 2014.

Goodwill

Changes in the carrying amount of the company's goodwill for the years ended December 31, 2015 and 2014 were as follows:



	2015		2014
Balance as of January 1,
Goodwill	$	12,724	$	3,472
Accumulated impairment losses	—		—
	12,724		3,472
Goodwill acquired during the year	—		9,252
Balance as of December 31,
Goodwill	12,724		12,724
Accumulated impairment losses	—		—
	$	12,724	$	12,724

Intangible Assets

Intangible assets as of December 31, 2015 and 2014 consisted of the following:



	Estimated	As of December 31,
	useful lives	2015			2014
Tradename	5 to 7 years	$	555		$	555
Patents and technological know-how	10 years	5,850			5,850
Proprietary software	3 to 15 years	4,341			4,341
Other	3 to 5 years	324			324
		11,070			11,070
Accumulated amortization		(4,432		)	(3,174		)
Total intangible assets, net		$	6,638		$	7,896

During the years ended December 31, 2015 and 2014, amortization of these intangible assets were $1,258 and $1,210, respectively.

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



Years ending December 31,
2016	$	1,120
2017	925
2018	851
2019	778
2020	600
Thereafter	2,364
	$	6,638

Inventories

12 Months Ended

Dec. 31, 2015

Inventory Disclosure [Abstract]

Inventories

Inventories, net of reserves, consisted of the following:



	As of December 31,
	2015		2014
Current:
Raw materials	$	2,735	$	3,056
Finished goods	10,712		9,710
	$	13,447	$	12,766
Long-term:
Raw materials	$	375	$	59
Finished goods	1,643		817
	$	2,018	$	876

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 do not include distributor channel inventories in the amounts of approximately $1,628 and $1,698 as of December 31, 2015 and 2014, 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 $496 and $946 during the years ended December 31, 2015 and 2014, respectively.

Property and Equipment

12 Months Ended

Dec. 31, 2015

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	2015			2014
Office furniture and equipment	3 to 10 years	$	4,412		$	7,234
Leasehold improvements	1 to 6 years	1,488			1,474
Manufacturing and test equipment	2 to 10 years	2,483			3,023
		8,383			11,731
Accumulated depreciation and amortization		(6,794		)	(9,692		)
Property and equipment, net		$	1,589		$	2,039

Depreciation expense on property and equipment for the years ended December 31, 2015 and 2014 was $801 and $761, respectively.

Leases and Deferred Rent

12 Months Ended

Dec. 31, 2015

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 $1,420 and $1,236, including amortization of deferred rent of $95 and $79, for the years ended December 31, 2015 and 2014, respectively.

We occupy a 31,000 square-foot facility in Salt Lake City, Utah under the terms of an operating lease expiring in May 2019 which supports our principal administrative, sales, marketing, customer support, and research and product development activities.

We occupy a 46,000 square-foot manufacturing facility in Alachua, Florida under the terms of an operating lease expiring in March 2016 with an option to extend the lease month-to-month. The Alachua facility is used primarily to manufacture our wireless microphone products and to support this line of business.

We occupy a 40,000 square-foot warehouse in Salt Lake City, Utah under the terms of an operating lease expiring in December 2021, which serves as our primary inventory fulfillment and repair center. This facility also serves as our assembly workshop for digital signage products.

We occupy two facilities in Austin, Texas - a 7,070 square-foot facility under the terms of an operating lease expiring in October 2019 and a 11,100 square-foot facility under the terms of an operating lease expiring in August 2016. These facilities support our administrative, sales, marketing, customer support, and research and development activities.

We occupied 5,600 square-feet of warehouse space in Hong Kong to support our partners and customers located in the Asia-Pacific region. This operating lease expired in February 2014 and has not been renewed.

We occupy a 4,700 square-foot office facility in Hod Hasharon, Israel under the terms of an operating lease expiring in December 2017 which serves to support our research and development activities. Upon expiration, we will have the option to extend the lease for two additional years.

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



Years ending December 31,
2016	$	1,016
2017	883
2018	825
2019	419
2020	189
Thereafter	195
Total minimum lease payments	$	3,527

Accrued Liabilities

12 Months Ended

Dec. 31, 2015

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities consist of the following:



	As of December 31,
	2015		2014
Accrued salaries and other compensation	$	1,170	$	340
Dividends payable	—		914
Sales and marketing programs	477		642
Product warranty	288		331
Other accrued liabilities	308		467
Total	$	2,243	$	2,694

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2015
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 $2,970 as of December 31, 2015. Uncertain Tax Positions. As further discussed in Note 12, we had $1,126 of uncertain tax positions as of December 31, 2015. 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. We are also involved from time to time in various claims and 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. Conclusion We believe there are no other items that will have a material adverse impact on the Company's financial position or results of operations. 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 any legal proceedings. The Company believes it has adequately accrued for the aforementioned contingent liabilities. While we have not identified specific legal proceedings above, there exists the possibility of general adverse legal outcomes that we estimate could be up to $1,000 over and above amounts we may have provided for. If 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, 2015

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

Share-Based Payments

Employee Stock Option Plans

The Company’s share-based incentive plans offering stock options primarily consists of two plans. Under both plans, one new share is issued for each stock option exercised. The plans are described below.

The Company’s 1998 Incentive Plan (the “1998 Plan”) was the Company's primary plan through November 2007. Under this plan shares of common stock was made 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's 2007 Equity Incentive Plan (the “2007 Plan”) was restated and approved by the shareholders on December 12, 2014. Provisions of the restated 2007 Plan include the granting of up to 2,000,000 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.

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, 2015 had contractual lives of ten years. Under the 1998 Plan, 2,500,000 shares were authorized for grant. As of December 31, 2015, there were 345,000 options outstanding under the 1998 Plan, which includes the cliff vesting and 3 or 4-year vesting options discussed above. As of December 31, 2015, there were 683,935 options outstanding under the 2007 Plan. As of December 31, 2015, the 2007 Plan had 1,049,918 authorized unissued options, while there were no options remaining that could be granted under the 1998 Plan.

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,
	2015	2014
Risk-free interest rate, average	2.0%	2.2%
Expected option life, average	6.1 years	8.2 years
Expected price volatility, average	44.3%	47.6%
Expected dividend yield	1.1%	—%

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.

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, 2014	1,040,081		$	5.65
Granted	56,666		13.03
Reinstated	4,583		4.47
Expired and canceled	(1,000	)	3.42
Forfeited prior to vesting	(15,252	)	7.85
Exercised	(56,143	)	5.51
As of December 31, 2015	1,028,935		$	6.03	4.73	$	7,104
Vested and Expected to Vest at December 31, 2015	1,028,935		$	6.03	4.73	$	7,104
Vested at December 31, 2015	820,022		$	5.10	3.74	$	6,419

The weighted average per share fair value of options granted during the years ending December 31, 2015 and 2014 was $5.27 and $4.85 respectively. The total intrinsic value of options exercised during the years ended December 31, 2015 and 2014 was $404 and $1,337, respectively.

The total pre-tax compensation cost related to stock options recognized during the years ended December 31, 2015 and 2014 was $552 and $401, respectively. Tax benefit from compensation cost related to stock options during the years ended December 31, 2015 and 2014 was $41 and $211, respectively. As of December 31, 2015, the total compensation cost related to stock options not yet recognized and before the effect of any forfeitures was $919, which is expected to be recognized over approximately the next 2.1 years on a straight-line basis.

Employee Stock Purchase Plan

During 2015, the Company issued shares to employees under the Company's 2014 Employee Stock Purchase Plan (the "ESPP"). The ESPP was approved by the Company’s shareholders on December 12, 2014. As of December 31, 2015 485,033 of the originally approved 500,000 shares were available for offerings under the ESPP. Offering periods under the ESPP commence on each Jan 1 and July 1, and continue for a duration of six months. The ESPP is available to all employees who do not own, or are deemed to own, shares of stock making up an excess of 5% of the combined voting power of the Company, its parent or subsidiary. During each offering period, each eligible employee may purchase shares under the ESPP after authorizing payroll deductions. Under the ESPP, each employee may purchase up to the lesser of 2,500 shares or $25 of fair market value (based on the established purchase price) of the Company's stock for each offering period. Unless the employee has previously withdrawn from the offering, his or her accumulated payroll deductions will be used to purchase common stock on the last business day of the period at a price equal to 85% (or a 15% discount) of the fair market value of the common stock on the first or last day of the offering period, whichever is lower.

Shares purchased and compensation expense associated Employee Stock Purchase Plans were as follows:



	2015		2014
Shares purchased under ESPP plans	14,982		82
Plan compensation expense	$	31	$	—

Stock Repurchase Program and Cash Dividends

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 272,767 shares costing $2,598 were purchased under this program during the year ended December 31, 2014. The cost of shares purchased were recorded as a reduction to shareholders' equity. On December 2, 2014, the Company announced the discontinuance of the stock repurchase program along with the initiation of a cash dividend plan. On February 25, 2016, the Company declared its most recent dividend under this plan of $0.05 per share of ClearOne common stock, payable on March 18, 2016 to shareholders of record on March 7, 2016.

Significant Customers

12 Months Ended

Dec. 31, 2015

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,
	2015		2014
Customer A	14.2	%	16.0	%
Customer B	10.4	%	—	%	*
Total	24.6	%	16.0	%

* 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,
	2015		2014
Customer A	18.0	%	21.0	%
Customer B	16.0	%	10.0	%
Total	34.0	%	31.0	%

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

12 Months Ended

Dec. 31, 2015

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 tables set forth the fair value of the financial instruments re-measured by the Company as of December 31, 2015 and 2014:



		Level 1		Level 2		Level 3		Total

December 31, 2015
Corporate bonds and notes		$	—	$	20,744	$	—	$	20,744
Municipal bonds		—		5,621		—		5,621

	Total	$	—	$	26,365	$	—	$	26,365



		Level 1		Level 2		Level 3		Total

December 31, 2014
Corporate bonds and notes		$	—	$	19,838	$	—	$	19,838
Municipal bonds		—		6,318		—		6,318

	Total	$	—	$	26,156	$	—	$	26,156

- 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, 2015

Income Tax Disclosure [Abstract]

Income Taxes

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



	Year ended December 31,
	2015			2014
Domestic	$	13,295		$	9,615
Foreign	(2,744		)	(1,386		)
Total	$	10,551		$	8,229

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



	Year ended December 31,
	2015			2014
Current:
Federal	$	(3,386	)	$	(2,750	)
State	(344		)	(173		)
Foreign	—			(109		)
Total current	(3,730		)	(3,032		)
Deferred:
Federal	(220		)	379
State	(10		)	27
Foreign	470			401
	240			807
Change in valuation allowance	(285		)	(408		)
Total deferred	(45		)	399
(Provision) for income taxes	$	(3,775	)	$	(2,633	)

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



	Year ended December 31,
	2015			2014
Tax (provision) at Federal statutory rate	$	(3,587	)	$	(2,798	)
State income tax (provision), net of federal benefit	(408		)	(257		)
Research and development tax credits	456			549
Foreign earnings or losses taxed at different rates	(231		)	(102		)
Other	280			383
Change in valuation allowance	(285		)	(408		)
Tax (provision)	$	(3,775	)	$	(2,633	)

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



	2015			2014
Deferred revenue	$	1,019		$	1,120
Basis difference in intangible assets	26			42
Inventory reserve	2,452			2,213
Net operating loss carryforwards	1,347			957
Research and development tax credits	—			60
Accrued expenses	165			292
Stock-based compensation	672			577
Allowance for sales returns and doubtful accounts	20			22
Difference in property and equipment basis	(423		)	(318		)
Other	886			910
Total net deferred income tax asset	6,164			5,875
Less: Valuation allowance	(1,071		)	(786		)
Net deferred income tax asset (liability)	$	5,093		$	5,089

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, 2015 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 foreign net operating loss carryforwards and foreign intangible assets.

The Company has federal net operating loss (“NOL”) carryforwards of approximately $818 (pre-tax), Hong Kong NOL carryforwards of approximately $1,577, and Spain NOL carryforwards of approximately $2,434. The federal NOL carryforwards will begin to expire in 2029. The Hong Kong and Spain 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, 2015 and 2014, that would favorably impact our effective tax rate if recognized was $176 and $723, respectively. As of December 31, 2015 and 2014, we accrued $55 and $40, 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,
	2015			2014
Balance - beginning of year	$	1,678		$	1,901
Additions based on tax positions related to the current year	52			564
Additions for tax positions of prior years	5			—
Reductions for tax positions of prior years	(503		)	(468		)
Settlements	—			(40		)
Lapse in statutes of limitations	(106		)	(279		)
Uncertain tax positions, ending balance	$	1,126		$	1,678

The Company’s U.S. federal income tax returns for 2012 through 2014 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 2012. 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 IRS commenced an examination of the Company's 2012 tax return. We do not anticipate the examination will result in a material change to its financial position.

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 in 2016. 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, 2015

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,
	2015		2014
United States	$	39,563	$	39,837
All other countries	18,233		18,072
Total	$	57,796	$	57,909

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On February 25, 2016, the Company declared a stock dividend of $0.05 per share of ClearOne common stock payable on March 18, 2016 to shareholders of record on March 7, 2016. On March 9, 2016, the Board of Directors of the Company authorized the repurchase of up to $10,000 of the company’s outstanding shares of common stock.

Business Description, Basis of Presentation and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Fiscal Year	Fiscal Year – This report on Form 10-K includes financial statements for the years ended December 31, 2015 and 2014.
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 accounting principles generally accepted 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 – We are exposed to foreign currency exchange risk through our foreign subsidiaries. Other than our Spain subsidiary, our foreign subsidiaries are U.S. dollar functional, for which gains and losses arising from remeasurement are included in earnings. Our Spain subsidiary is Euro functional, for which gains and losses arising from translation are included in accumulated other comprehensive income or loss. We translate and remeasure foreign assets and liabilities at exchange rates in effect at the balance sheet dates. We translate revenue and expenses using average rates during the year.
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 shareholders' 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, 2015 and 2014.
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 $75 and $47, as of December 31, 2015 and 2014, 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	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 its 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 Company offers rebates and market development funds to certain of its distributors, dealers/resellers, and end-users based upon the volume of product purchased by them. The Company records rebates as a reduction of revenue in accordance with GAAP. The Company provides, at its discretion, advance replacement units to end-users on defective units of certain products under warranty. Since the purpose of these units is not revenue generating, the Company tracks the units due from the end-user, valued at retail price, until the defective unit has been returned, but no receivable balance is maintained on the Company’s balance sheet.
Sales and Similar Taxes	Sales and Similar Taxes - Taxes collected from customers and remitted to government authorities are reported on a net basis and thus are excluded from revenues.
Shipping and Handling Costs	Shipping and Handling Costs – Shipping and handling billed to customers is recorded as revenue. Shipping and handling costs are included in cost of goods sold.
Warranty Costs	Warranty Costs – The Company accrues for warranty costs based on estimated warranty return rates and estimated costs to repair. These reserve costs are classified as accrued liabilities on the consolidated balance sheets. 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, 2015 and 2014 totaled $728 and $768, 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, 2015 and 2014, the Company had a valuation allowance of $1,071 and $786 against 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 - In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for the Company on January 1, 2017. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on the consolidated financial statements. In November 2015 the FASB issued ASU 2015-17, Income Taxes (Topic 740), simplifying the presentation of deferred taxes on the balance sheet by requiring companies to classify everything as either a non-current asset or non-current liability. Early adoption of this ASU is permitted. ClearOne has adopted this standard update early as it would simplify the presentation of taxes on the balance sheet and within the income tax footnote. On February 25, 2016, FASB released Accounting Standards Update No. 2016-02, Leases (Topic 842) to bring transparency to lessee balance sheets. The ASU will require organizations that lease assets (lessees) to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The standard will apply to both types of leases-capital (or finance) leases and operating leases. Previously, GAAP has required only capital leases to be recognized on lessee balance sheets. The standard will take effect the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early application will be permitted for all organizations. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on the consolidated financial statements.

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

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The Company’s allowance for doubtful accounts activity for the years ended December 31, 2015 and 2014 was as follows:



	Year Ended December 31,
	2015			2014
Balance at beginning of the year	$	58		$	129
Allowance increase (decrease)	36			(49		)
Write offs, net of recoveries	(40		)	(22		)
Balance at end of the year	$	54		$	58

Schedule of 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,
	2015		2014
Deferred revenue	$	4,549	$	5,004
Deferred cost of goods sold	1,628		1,698
Deferred gross profit	$	2,921	$	3,306

Schedule of Product Warranty Liability

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



	Year Ended December 31,
	2015			2014
Balance at the beginning of year	$	331		$	338
Accruals/additions	442			511
Usage/claims	(485		)	(518		)
Balance at end of year	$	288		$	331

Schedule of Earnings Per Share, Basic and Diluted

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



	Year Ended December 31,
	2015		2014
Numerator:
Net income	$	6,776	$	5,596
Denominator:
Basic weighted average shares	9,127,385		9,166,769
Dilutive common stock equivalents using treasury stock method	467,274		414,557
Diluted weighted average shares	9,594,659		9,581,326

Basic earnings per common share:	$	0.74	$	0.61
Diluted earnings per common share:	$	0.71	$	0.58

Weighted average options outstanding	1,053,785		975,696
Anti-dilutive options not included in the computation	177,125		209,751

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The quantitative effects of our adoption of this standard in our results and balances for the year ended December 31, 2014 are as follows:



	December 31, 2014
	Originally Reported	Effect of Adoption		Reported Herein
Balance Sheet:
Deferred income taxes - current assets	3,824	(3,824	)	—
Deferred income taxes - non-current assets	1,265	3,824		5,089

- Definition

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation



			Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
December 31, 2015
	Available-for-sale securities:
		Corporate bonds and notes	$	20,827	$	50	$	(133	)	$	20,744
		Municipal bonds	5,608		18		(5		)	5,621

	Total available-for-sale securities		$	26,435	$	68	$	(138	)	$	26,365



			Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
December 31, 2014
	Available-for-sale securities:
		Corporate bonds and notes	$	19,804	$	89	$	(55	)	$	19,838
		Municipal bonds	6,292		28		(2		)	6,318

	Total available-for-sale securities		$	26,096	$	117	$	(57	)	$	26,156

Marketable Securities

Maturities of marketable securities classified as available-for-sale securities were as follows at December 31, 2015:



		Amortized cost		Estimated fair value

	Due within one year	$	7,179	$	7,161
	Due after one year through five years	19,256		19,204
	Due after five years through ten years	—		—
Total available-for-sale securities		$	26,435	$	26,365

Available-for-sale Marketable Securities

The available-for-sale marketable securities in a gross unrealized loss position as of December 31, 2015 are summarized as follows:



	Less than 12 months					More than 12 months					Total
	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, 2015
Corporate bonds and notes	$	10,256	$	(88	)	$	3,298	$	(45	)	$	13,554	$	(133	)
Municipal bonds	1,674		(4		)	640		(1		)	2,314		(5		)

	$	11,930	$	(92	)	$	3,938	$	(46	)	$	15,868	$	(138	)

Business Combination, Goodwill and Intangibles (Tables)

12 Months Ended

Dec. 31, 2015

Business Acquisition [Line Items]

Schedule of Goodwill

Changes in the carrying amount of the company's goodwill for the years ended December 31, 2015 and 2014 were as follows:



	2015		2014
Balance as of January 1,
Goodwill	$	12,724	$	3,472
Accumulated impairment losses	—		—
	12,724		3,472
Goodwill acquired during the year	—		9,252
Balance as of December 31,
Goodwill	12,724		12,724
Accumulated impairment losses	—		—
	$	12,724	$	12,724

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

Intangible assets as of December 31, 2015 and 2014 consisted of the following:



	Estimated	As of December 31,
	useful lives	2015			2014
Tradename	5 to 7 years	$	555		$	555
Patents and technological know-how	10 years	5,850			5,850
Proprietary software	3 to 15 years	4,341			4,341
Other	3 to 5 years	324			324
		11,070			11,070
Accumulated amortization		(4,432		)	(3,174		)
Total intangible assets, net		$	6,638		$	7,896

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

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



Years ending December 31,
2016	$	1,120
2017	925
2018	851
2019	778
2020	600
Thereafter	2,364
	$	6,638

Spontania

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The fair value of identified assets and liabilities acquired from the Spontania acquisition was as follows:



	Fair value
Intangibles	$	1,335
Property and equipment	47
Goodwill	3,741
Accrued liabilities	(71		)
Total	$	5,052

Sabine, Inc.

Business Acquisition [Line Items]

Business Acquisition, Consideration Transferred

The following table summarizes the consideration paid for the acquisition:



	Consideration
Cash	$	8,141
Common stock	1,679
Contingent consideration	657
Total	$	10,477

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

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



	Fair value
Cash	$	125
Accounts receivable	255
Inventories	844
Prepaid and other	105
Intangibles	3,970
Property and equipment	292
Other long-term assets	11
Goodwill	5,510
Deferred tax asset	245
Trade accounts payable	(420		)
Accrued liabilities	(405		)
Stock registration costs	(55		)
Total	$	10,477

Inventories (Tables)

12 Months Ended

Dec. 31, 2015

Inventory Disclosure [Abstract]

Schedule of Inventory, Current and Non-Current

Inventories, net of reserves, consisted of the following:



	As of December 31,
	2015		2014
Current:
Raw materials	$	2,735	$	3,056
Finished goods	10,712		9,710
	$	13,447	$	12,766
Long-term:
Raw materials	$	375	$	59
Finished goods	1,643		817
	$	2,018	$	876

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2015

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	2015			2014
Office furniture and equipment	3 to 10 years	$	4,412		$	7,234
Leasehold improvements	1 to 6 years	1,488			1,474
Manufacturing and test equipment	2 to 10 years	2,483			3,023
		8,383			11,731
Accumulated depreciation and amortization		(6,794		)	(9,692		)
Property and equipment, net		$	1,589		$	2,039

Leases and Deferred Rent (Tables)

12 Months Ended

Dec. 31, 2015

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,
2016	$	1,016
2017	883
2018	825
2019	419
2020	189
Thereafter	195
Total minimum lease payments	$	3,527

Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2015

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consist of the following:



	As of December 31,
	2015		2014
Accrued salaries and other compensation	$	1,170	$	340
Dividends payable	—		914
Sales and marketing programs	477		642
Product warranty	288		331
Other accrued liabilities	308		467
Total	$	2,243	$	2,694

Share-Based Payments (Tables)

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, 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,
	2015	2014
Risk-free interest rate, average	2.0%	2.2%
Expected option life, average	6.1 years	8.2 years
Expected price volatility, average	44.3%	47.6%
Expected dividend yield	1.1%	—%

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, 2014	1,040,081		$	5.65
Granted	56,666		13.03
Reinstated	4,583		4.47
Expired and canceled	(1,000	)	3.42
Forfeited prior to vesting	(15,252	)	7.85
Exercised	(56,143	)	5.51
As of December 31, 2015	1,028,935		$	6.03	4.73	$	7,104
Vested and Expected to Vest at December 31, 2015	1,028,935		$	6.03	4.73	$	7,104
Vested at December 31, 2015	820,022		$	5.10	3.74	$	6,419

Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity

Shares purchased and compensation expense associated Employee Stock Purchase Plans were as follows:



	2015		2014
Shares purchased under ESPP plans	14,982		82
Plan compensation expense	$	31	$	—

Significant Customers (Tables)

12 Months Ended

Dec. 31, 2015

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,
	2015		2014
Customer A	14.2	%	16.0	%
Customer B	10.4	%	—	%	*
Total	24.6	%	16.0	%

* 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,
	2015		2014
Customer A	18.0	%	21.0	%
Customer B	16.0	%	10.0	%
Total	34.0	%	31.0	%

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

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

The following tables set forth the fair value of the financial instruments re-measured by the Company as of December 31, 2015 and 2014:



		Level 1		Level 2		Level 3		Total

December 31, 2015
Corporate bonds and notes		$	—	$	20,744	$	—	$	20,744
Municipal bonds		—		5,621		—		5,621

	Total	$	—	$	26,365	$	—	$	26,365



		Level 1		Level 2		Level 3		Total

December 31, 2014
Corporate bonds and notes		$	—	$	19,838	$	—	$	19,838
Municipal bonds		—		6,318		—		6,318

	Total	$	—	$	26,156	$	—	$	26,156

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

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,
	2015			2014
Domestic	$	13,295		$	9,615
Foreign	(2,744		)	(1,386		)
Total	$	10,551		$	8,229

Schedule of Components of Income Tax Expense (Benefit)

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



	Year ended December 31,
	2015			2014
Current:
Federal	$	(3,386	)	$	(2,750	)
State	(344		)	(173		)
Foreign	—			(109		)
Total current	(3,730		)	(3,032		)
Deferred:
Federal	(220		)	379
State	(10		)	27
Foreign	470			401
	240			807
Change in valuation allowance	(285		)	(408		)
Total deferred	(45		)	399
(Provision) for income taxes	$	(3,775	)	$	(2,633	)

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,
	2015			2014
Tax (provision) at Federal statutory rate	$	(3,587	)	$	(2,798	)
State income tax (provision), net of federal benefit	(408		)	(257		)
Research and development tax credits	456			549
Foreign earnings or losses taxed at different rates	(231		)	(102		)
Other	280			383
Change in valuation allowance	(285		)	(408		)
Tax (provision)	$	(3,775	)	$	(2,633	)

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:



	2015			2014
Deferred revenue	$	1,019		$	1,120
Basis difference in intangible assets	26			42
Inventory reserve	2,452			2,213
Net operating loss carryforwards	1,347			957
Research and development tax credits	—			60
Accrued expenses	165			292
Stock-based compensation	672			577
Allowance for sales returns and doubtful accounts	20			22
Difference in property and equipment basis	(423		)	(318		)
Other	886			910
Total net deferred income tax asset	6,164			5,875
Less: Valuation allowance	(1,071		)	(786		)
Net deferred income tax asset (liability)	$	5,093		$	5,089

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,
	2015			2014
Balance - beginning of year	$	1,678		$	1,901
Additions based on tax positions related to the current year	52			564
Additions for tax positions of prior years	5			—
Reductions for tax positions of prior years	(503		)	(468		)
Settlements	—			(40		)
Lapse in statutes of limitations	(106		)	(279		)
Uncertain tax positions, ending balance	$	1,126		$	1,678

Geographic Sales Information (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Schedule of Revenue by Geographic Area



	Year ended December 31,
	2015		2014
United States	$	39,563	$	39,837
All other countries	18,233		18,072
Total	$	57,796	$	57,909

Business Description, Basis of Presentation and Significant Accounting Policies - Narrative In-text Details (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Accounting Policies [Abstract]
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	$ 728	$ 768
Valuation allowance	$ 1,071	$ 786

Business Description, Basis of Presentation and Significant Accounting Policies - Rollforward Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of the year	$ 58	$ 129
Allowance increase (decrease)	36	(49)
Write offs, net of recoveries	(40)	(22)
Balance at end of the year	$ 54	$ 58

Business Description, Basis of Presentation and Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Value of advance replacement units	$ 75	$ 47
Deferred revenue	4,549	5,004
Deferred cost of goods sold	1,628	1,698
Deferred gross profit	$ 2,921	$ 3,306

Business Description, Basis of Presentation and Significant Accounting Policies - Warranty Accrual (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Movement in Standard Product Warranty Accrual
Balance at the beginning of year	$ 331	$ 338
Accruals/additions	442	511
Usage/claims	(485)	(518)
Balance at end of year	$ 288	$ 331

Business Description, Basis of Presentation and Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Numerator:
Net income	$ 6,776	$ 5,596
Denominator:
Basic weighted average shares outstanding	9,127,385	9,166,769
Dilutive common stock equivalents using treasury stock method	467,274	414,557
Diluted weighted average shares (in shares)	9,594,659	9,581,326
Basic earnings per common share: (in dollars per share)	$ 0.74	$ 0.61
Diluted earnings per common share: (in dollars per share)	$ 0.71	$ 0.58
Weighted average options outstanding	1,053,785	975,696
Anti-dilutive options not included in the computation	177,125	209,751

Business Description, Basis of Presentation and Significant Accounting Policies - Property Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2015
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, 2015
Minimum
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, useful life	3 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, useful life	10 years

Business Description, Basis of Presentation and Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred income taxes - current assets		$ 0
Deferred income taxes - non-current assets	$ 5,093	5,089
Originally Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred income taxes - current assets		3,824
Deferred income taxes - non-current assets		1,265
Effect of Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred income taxes - current assets		(3,824)
Deferred income taxes - non-current assets		$ 3,824

Marketable Securities - Gains and Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Gain (Loss) on Investments [Line Items]
Amortized cost	$ 26,435	$ 26,096
Gross unrealized holding gains	68	117
Gross unrealized holding losses	(138)	(57)
Estimated fair value	26,365	26,156
Less than 12 months, Estimated fair value	11,930
Less than 12 months, Gross unrealized holding losses	(92)
More than 12 months, Estimated fair value	3,938
More than 12 months, Gross unrealized holding losses	(46)
Total, Estimated fair value	15,868
Total, Gross unrealized holding losses	(138)
Corporate bonds and notes
Gain (Loss) on Investments [Line Items]
Amortized cost	20,827	19,804
Gross unrealized holding gains	50	89
Gross unrealized holding losses	(133)	(55)
Estimated fair value	20,744	19,838
Less than 12 months, Estimated fair value	10,256
Less than 12 months, Gross unrealized holding losses	(88)
More than 12 months, Estimated fair value	3,298
More than 12 months, Gross unrealized holding losses	(45)
Total, Estimated fair value	13,554
Total, Gross unrealized holding losses	(133)
Municipal bonds
Gain (Loss) on Investments [Line Items]
Amortized cost	5,608	6,292
Gross unrealized holding gains	18	28
Gross unrealized holding losses	(5)	(2)
Estimated fair value	5,621	$ 6,318
Less than 12 months, Estimated fair value	1,674
Less than 12 months, Gross unrealized holding losses	(4)
More than 12 months, Estimated fair value	640
More than 12 months, Gross unrealized holding losses	(1)
Total, Estimated fair value	2,314
Total, Gross unrealized holding losses	$ (5)

Marketable Securities - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Amortized cost, Due within one year	$ 7,179
Amortized cost, Due after one year through five years	19,256
Amortized cost, Due after five years through ten years	0
Amortized cost, Total available-for-sale securities	26,435	$ 26,096
Estimated fair value, Due within one year	7,161
Estimated fair value, Due after one year through five years	19,204
Estimated fair value, Due after five years through ten years	0
Estimated fair value, Total available-for-sale securities	$ 26,365

Business Combination, Goodwill and Intangibles - Business Combinations, Consideration Paid (Details) € in Thousands, $ in Thousands	Apr. 01, 2014 USD ($)	Apr. 01, 2014 EUR (€)	Mar. 07, 2014 USD ($) shares
Sabine, Inc.
Noncash or Part Noncash Acquisitions [Line Items]
Consideration paid			$ 10,477
Sabine, Inc. \| Cash
Noncash or Part Noncash Acquisitions [Line Items]
Consideration paid			$ 8,141
Sabine, Inc. \| Common stock
Noncash or Part Noncash Acquisitions [Line Items]
Number of shares of restricted common stock issued \| shares			150,000
Consideration paid			$ 1,679
Sabine, Inc. \| Contingent consideration
Noncash or Part Noncash Acquisitions [Line Items]
Consideration paid			$ 657
Spontania
Noncash or Part Noncash Acquisitions [Line Items]
Aggregate purchase price in cash	$ 5,100
Consideration paid \| €		€ 3,660

Business Combination, Goodwill and Intangibles - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Apr. 01, 2014	Mar. 07, 2014
Sabine, Inc.
Business Acquisition [Line Items]
Cash		$ 125
Accounts receivable		255
Inventories		844
Prepaid and other		105
Intangibles		3,970
Property and equipment		292
Other long-term assets		11
Goodwill		5,510
Deferred tax asset		245
Trade accounts payable		(420)
Accrued liabilities		(405)
Stock registration costs		(55)
Total		$ 10,477
Spontania
Business Acquisition [Line Items]
Intangibles	$ 1,335
Property and equipment	47
Goodwill	3,741
Accrued liabilities	(71)
Total	$ 5,052

Business Combination, Goodwill and Intangibles - Acquisition Related Expenses (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2014 USD ($)
Business Combinations [Abstract]
Total acquisition related expenses	$ 588

Business Combination, Goodwill and Intangibles - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill [Roll Forward]
Beginning goodwill, gross	$ 12,724	$ 3,472
Beginning acculumlated impairment losses	0	0
Balance at the beginning of the year	12,724	3,472
Goodwill acquired during the year	0	9,252
Ending goodwill, gross	12,724	12,724
Ending accumulated impairment losses	0	0
Balance at end of year	$ 12,724	$ 12,724

Business Combination, Goodwill and Intangibles - Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Total finite and indefinite-lived intangible assets, gross	$ 11,070	$ 11,070
Accumulated amortization	(4,432)	(3,174)
Total intangible assets, net	6,638	7,896
Amortization of intangibles	1,258	1,210
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2016	1,120
2017	925
2018	851
2019	778
2020	600
Thereafter	2,364
Finite-lived intangible assets, future amortization expense	$ 6,638
Minimum
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
Tradename
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, gross	$ 555	555
Tradename \| Minimum
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	5 years
Tradename \| Maximum
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	7 years
Patents and technological know-how
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	10 years
Finite-lived intangible assets, gross	$ 5,850	5,850
Proprietary software
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, gross	$ 4,341	4,341
Proprietary software \| Minimum
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	3 years
Proprietary software \| Maximum
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	15 years
Other
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, gross	$ 324	$ 324
Other \| Minimum
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	3 years
Other \| Maximum
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets, useful life (in years)	5 years

Inventories (Details) - USD ($) $ in Thousands	12 Months Ended
Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Losses incurred on valuation of inventory and write-off of obsolete inventory	$ 496	$ 946
Deferred cost of goods sold	1,628	1,698
Current:
Raw materials	2,735	3,056
Finished goods	10,712	9,710
Inventories	13,447	12,766
Long-term:
Raw materials	375	59
Finished goods	1,643	817
Inventories, long-term	$ 2,018	$ 876

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, gross	$ 8,383	$ 11,731
Accumulated depreciation and amortization	(6,794)	(9,692)
Property and equipment, net	1,589	2,039
Depreciation expense	$ 801	761
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	$ 4,412	7,234
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	$ 1,488	1,474
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	$ 2,483	$ 3,023
Manufacturing and test equipment \| Minimum
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, useful life	2 years
Manufacturing and test equipment \| Maximum
Property, Plant and Equipment, Net, by Type [Abstract]
Property and equipment, useful life	10 years

Leases and Deferred Rent (Details) $ in Thousands	12 Months Ended
Leases and Deferred Rent (Details) $ in Thousands	Dec. 31, 2015 USD ($) ft²	Dec. 31, 2014 USD ($)
Operating Leased Asset
Rent expense	$ 1,420	$ 1,236
Amortization of deferred rent	95	$ 79
Future minimum lease payments
2016	1,016
2017	883
2018	825
2019	419
2020	189
Thereafter	195
Total minimum lease payments	$ 3,527
Office Building \| Salt Lake City, Utah
Operating Leased Asset
Area leased (sqft) \| ft²	31,000
Office Building \| Austin, Texas
Operating Leased Asset
Area leased (sqft) \| ft²	7,070
Office Building \| Israel
Operating Leased Asset
Area leased (sqft) \| ft²	4,700
Manufacturing Facility \| Alachua, Florida
Operating Leased Asset
Area leased (sqft) \| ft²	46,000
Warehouse \| Salt Lake City, Utah
Operating Leased Asset
Area leased (sqft) \| ft²	40,000
Warehouse \| Hong Kong
Operating Leased Asset
Area leased (sqft) \| ft²	5,600
Warehouse \| Israel \| Minimum
Operating Leased Asset
Term of lease commitment	2 years
Research Facility, Secondary Location \| Austin, Texas
Operating Leased Asset
Area leased (sqft) \| ft²	11,100

Accrued Liabilities Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Other Commitments [Line Items]
Accrued liabilities	$ 2,243	$ 2,694
Accrued salaries and other compensation
Other Commitments [Line Items]
Accrued liabilities	1,170	340
Dividends payable
Other Commitments [Line Items]
Accrued liabilities	0	914
Sales and marketing programs
Other Commitments [Line Items]
Accrued liabilities	477	642
Product warranty
Other Commitments [Line Items]
Accrued liabilities	288	331
Other accrued liabilities
Other Commitments [Line Items]
Accrued liabilities	$ 308	$ 467

Commitments and Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of Contingencies
Uncertain tax positions	$ 1,126	$ 1,678	$ 1,901
Loss Contingency, Estimate of Possible Loss	1,000
Inventories
Schedule of Contingencies
Long-term purchase commitment, amount	$ 2,970

Share-Based Payments - Employee Stock Option Plans (Details) $ / shares in Units, $ in Thousands	6 Months Ended		12 Months Ended		24 Months Ended	30 Months Ended
	Jun. 30, 2005 shares	Jun. 30, 2003 shares	Dec. 31, 2015 USD ($) plan $ / shares shares	Dec. 31, 2014 USD ($) $ / shares shares	Dec. 31, 1999 shares	Jun. 30, 2002 shares	Dec. 12, 2014 shares
Share-based Compensation Arrangement by Share-based Payment Award
Number of share-based compensation plans \| plan			2
Share-based payment award, expiration period			10 years
Share-based payment award, options, outstanding, number			1,028,935	1,040,081
Weighted average per share fair value of options granted (in usd per share) \| $ / shares			$ 5.27	$ 4.85
Total intrinsic value of options exercised \| $			$ 404	$ 401
Proceeds from options exercised \| $			463	1,337
Tax benefit from compensation cost related to stock options \| $			41	$ 211
Nonvested awards, total compensation cost not yet recognized, stock options \| $			$ 919
Nonvested awards, total compensation cost not yet recognized, period for recognition			2 years 1 month 2 days
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation expense \| $			$ 552
Director and Officer
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting period			3 years
Employee
Share-based Compensation Arrangement by 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
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			345,000
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							2,000,000
Share-based payment award, options, outstanding, number			683,935
Number of options authorized and unissued			1,049,918

Share-Based Payments - Black-Scholes Assumptions (Details) - Employee Stock Option	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free interest rate, average	2.00%	2.20%
Expected option life, average	6 years 1 month 17 days	8 years 2 months 1 day
Expected price volatility, average	44.30%	47.60%
Expected dividend yield	1.10%	0.00%

Share-Based Payments - Option Rollforward (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, beginning (in shares) \| shares	1,040,081
Expired and canceled (in shares) \| shares	(1,000)
Forfeited prior to vesting (in shares) \| shares	(15,252)
Exercise of stock options (in shares) \| shares	(56,143)
Outstanding, ending (in shares) \| shares	1,028,935
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) \| $ / shares	$ 5.65
Weighted average exercise price, expired and canceled (in dollars per share) \| $ / shares	3.42
Weighted average exercise price, forfeited prior to vesting (in dollars per share) \| $ / shares	7.85
Weighted average exercise price, exercised (in dollars per share) \| $ / shares	5.51
Weighted average exercise price, outstanding, ending (in dollars per share) \| $ / shares	$ 6.03
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract]
Vested (in shares) \| shares	820,022
Vested, weighted average exercise price (in dollars per share) \| $ / shares	$ 5.10
Vested, weighted average remaining contractual term (in years)	3 years 8 months 26 days
Vested, aggregate intrinsic value (in dollars) \| $	$ 6,419
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted average remaining contractual term (in years)	4 years 8 months 23 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value \| $	$ 7,104
Initial Stock Option Grants
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Granted (in shares) \| shares	56,666
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted average exercise price, granted (in dollars per share) \| $ / shares	$ 13.03
Reinstated Options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Granted (in shares) \| shares	4,583
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted average exercise price, granted (in dollars per share) \| $ / shares	$ 4.47

Share-Based Payments - Employee Stock Purchase Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 12, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for offerings under the ESPP	485,033		500,000
ESPP, maximum percentage of employee participation	5.00%
Number of shares that can be purchased (lesser of)	2,500
Number of shares that can be purchased (lesser of), value	$ 25
Discount rate	15.00%
Plan compensation expense	$ 31	$ 0
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares purchased under ESPP plans	14,982	82

Share-Based Payments - Stock Repurchase Program and Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Feb. 25, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock repurchased (in shares)			272,767
Stock repurchased			$ 2,598
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared		$ 0.155	$ 0.100
Subsequent Event
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared	$ 0.05

Significant Customers (Details) - Customer Concentration Risk	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues
Concentration Risk
Concentration risk, percentage	24.60%	16.00%
Revenues \| Customer A
Concentration Risk
Concentration risk, percentage	14.20%	16.00%
Revenues \| Customer B
Concentration Risk
Concentration risk, percentage	10.40%	0.00%
Gross accounts receivable
Concentration Risk
Concentration risk, percentage	34.00%	31.00%
Gross accounts receivable \| Customer A
Concentration Risk
Concentration risk, percentage	18.00%	21.00%
Gross accounts receivable \| Customer B
Concentration Risk
Concentration risk, percentage	16.00%	10.00%

Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Investments, fair value disclosure	$ 26,365	$ 26,156
Corporate bonds and notes
Schedule of Available-for-sale Securities [Line Items]
Investments, fair value disclosure	20,744	19,838
Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Investments, fair value disclosure	5,621	6,318
Level 1
Schedule of Available-for-sale Securities [Line Items]
Investments, fair value disclosure	0	0
Level 1 \| Corporate bonds and notes
Schedule of Available-for-sale Securities [Line Items]
Investments, fair value disclosure	0	0
Level 1 \| Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Investments, fair value disclosure	0	0
Level 2
Schedule of Available-for-sale Securities [Line Items]
Investments, fair value disclosure	26,365	26,156
Level 2 \| Corporate bonds and notes
Schedule of Available-for-sale Securities [Line Items]
Investments, fair value disclosure	20,744	19,838
Level 2 \| Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Investments, fair value disclosure	5,621	6,318
Level 3
Schedule of Available-for-sale Securities [Line Items]
Investments, fair value disclosure	0	0
Level 3 \| Corporate bonds and notes
Schedule of Available-for-sale Securities [Line Items]
Investments, fair value disclosure	0	0
Level 3 \| Municipal bonds
Schedule of Available-for-sale Securities [Line Items]
Investments, fair value disclosure	$ 0	$ 0

Income Taxes - Income before Taxes and Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract]
Domestic	$ 13,295	$ 9,615
Foreign	(2,744)	(1,386)
Total	10,551	8,229
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
Current, U.S. Federal	(3,386)	(2,750)
Current, U.S. State	(344)	(173)
Current, Non-U.S.	0	(109)
Total current	(3,730)	(3,032)
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]
Deferred, U.S. Federal	(220)	379
Deferred U.S. State	(10)	27
Deferred foreign	470	401
Deferred provision before change in valuation allowance	240	807
Change in valuation allowance	(285)	(408)
Total deferred	(45)	399
(Provision) for income taxes	$ (3,775)	$ (2,633)

Income Taxes - Reconciliation of Amount of Tax at Statutory Rate to Effective Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
Tax (provision) at Federal statutory rate	$ (3,587)	$ (2,798)
State income tax (provision), net of federal benefit	(408)	(257)
Research and development tax credits	456	549
Foreign earnings or losses taxed at different rates	(231)	(102)
Other	280	383
Change in valuation allowance	(285)	(408)
(Provision) for income taxes	$ (3,775)	$ (2,633)

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Components of Deferred Tax Assets and Liabilities [Abstract]
Deferred revenue	$ 1,019	$ 1,120
Basis difference in intangible assets	26	42
Inventory reserve	2,452	2,213
Net operating loss carryforwards	1,347	957
Research and development tax credits	0	60
Accrued expenses	165	292
Stock-based compensation	672	577
Allowance for sales returns and doubtful accounts	20	22
Difference in property and equipment basis	(423)	(318)
Other	886	910
Total net deferred income tax asset	6,164	5,875
Less: Valuation allowance	(1,071)	(786)
Net deferred income tax asset (liability)	$ 5,093	$ 5,089

Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance - beginning of year	$ 1,678	$ 1,901
Additions based on tax positions related to the current year	52	564
Additions for tax positions of prior years	5	0
Reductions for tax positions of prior years	(503)	(468)
Settlements	0	(40)
Lapse in statutes of limitations	(106)	(279)
Uncertain tax positions, ending balance	$ 1,126	$ 1,678

Income Taxes - Narrative (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Operating Loss Carryforwards
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 176,000	$ 723,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	55,000	$ 40,000
Internal Revenue Service (IRS)
Operating Loss Carryforwards
Operating Loss Carryforwards	818,000
Hong Kong \| Foreign Tax Authority [Member]
Operating Loss Carryforwards
Operating Loss Carryforwards	1,577,000
Spain \| Foreign Tax Authority [Member]
Operating Loss Carryforwards
Operating Loss Carryforwards	$ 2,434,000

Geographic Sales Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 57,796	$ 57,909
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	39,563	39,837
All other countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 18,233	$ 18,072

Subsequent Events Authorization of Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Feb. 25, 2016	Dec. 31, 2015	Dec. 31, 2014	Mar. 09, 2016
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared		$ 0.155	$ 0.100
Subsequent Event
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared	$ 0.05
Stock Repurchase Program, Authorized Amount				$ 10,000