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Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
Document and Entity Information - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 15, 2017	Jun. 30, 2016
Document And Entity Information
Entity Registrant Name	CLEARONE INC
Entity Central Index Key	0000840715
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 65,200
Entity Common Stock, Shares Outstanding		8,746,870
Trading Symbol	CLRO
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2016

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 12,100	$ 13,412
Marketable securities	5,030	7,161
Receivables, net of allowance for doubtful accounts of $187 and $54, as of December 31, 2016 and 2015 respectively	7,461	8,692
Inventories	11,377	13,447
Distributor channel inventories	1,530	1,628
Prepaid expenses and other assets	2,642	1,806
Total current assets	40,140	46,146
Long-term marketable securities	21,365	19,204
Long-term inventories, net	1,664	2,018
Property and equipment, net	1,513	1,589
Intangibles, net	5,677	6,638
Goodwill	12,724	12,724
Deferred income taxes	4,654	5,093
Other assets	387	117
Total assets	88,124	93,529
Current liabilities:
Accounts payable	3,545	2,815
Accrued liabilities	1,894	2,243
Deferred product revenue	3,882	4,549
Total current liabilities	9,321	9,607
Deferred rent	103	150
Other long-term liabilities	1,251	1,203
Total liabilities	10,675	10,960
Shareholders' equity:
Common stock, par value $0.001, 50,000,000 shares authorized, 8,812,644 and 9,183,957 shares issued and outstanding as of December 31, 2016 and 2015 respectively	9	9
Additional paid-in capital	46,669	46,291
Accumulated other comprehensive loss	(205)	(166)
Retained earnings	30,976	36,435
Total shareholders' equity	77,449	82,569
Total liabilities and shareholders' equity	$ 88,124	$ 93,529

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 187	$ 54
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	50,000,000	50,000,000
Common stock shares issued	8,812,644	9,183,957
Common stock shares outstanding	8,812,644	9,183,957

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenue	$ 48,637	$ 57,796	$ 57,909
Cost of goods sold	19,150	21,077	22,586
Gross profit	29,487	36,719	35,323
Operating expenses:
Sales and marketing	10,032	10,646	11,227
Research and product development	8,584	8,318	8,969
General and administrative	7,325	7,493	7,152
Total operating expenses	25,921	26,457	27,348
Operating income	3,566	10,262	7,975
Other income, net	312	289	254
Income before income taxes	3,878	10,551	8,229
Provision for income taxes	(1,434)	(3,775)	(2,633)
Net income	$ 2,444	$ 6,776	$ 5,596
Basic earnings per common share	$ 0.27	$ 0.74	$ 0.61
Diluted earnings per common share	$ 0.26	$ 0.71	$ 0.58
Basic weighted average shares outstanding	9,021,980	9,127,385	9,166,769
Diluted weighted average shares outstanding	9,306,034	9,594,659	9,581,326
Comprehensive income:
Net income	$ 2,444	$ 6,776	$ 5,596
Other comprehensive income:
Unrealized gain (loss) on available-for-sale securities, net of tax	(1)	(81)	14
Change in foreign currency translation adjustment	(38)	(77)	(45)
Comprehensive income	$ 2,405	$ 6,618	$ 5,565

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2013	$ 9	$ 41,311	$ 23	$ 28,992	$ 70,335
Balance, shares at Dec. 31, 2013	8,986,080
Exercise of stock options		1,337			$ 1,337
Exercise of stock options, shares	234,432				(234,432)
Stock repurchased				(2,598)	$ (2,598)
Stock repurchased, shares	(272,767)
Cash dividends, per share				(914)	(914)
Stock issued - Sabine acquisition		1,679			1,679
Stock issued - Sabine acquisition, shares	150,000
Tax benefit - stock option exercises		211			211
Stock-based compensation expense		401			401
Stock-based compensation expense, shares
Proceeds from employee stock purchase plan
Proceeds from employee stock purchase plan, shares	82
Unrealized gain on available-for-sale securities, net of tax			14		14
Foreign currency translation adjustment			(45)		(45)
Net income				5,596	5,596
Balance at Dec. 31, 2014	$ 9	44,939	(8)	31,076	76,016
Balance, shares at Dec. 31, 2014	9,097,827
Exercise of stock options		308			$ 308
Exercise of stock options, shares	56,143				(56,143)
Cash dividends, per share				(1,417)	$ (1,417)
Stock issued - Sabine acquisition
Tax benefit - stock option exercises		41			41
Stock-based compensation expense		848			848
Stock-based compensation expense, shares	15,005
Proceeds from employee stock purchase plan		155			155
Proceeds from employee stock purchase plan, shares	14,982
Unrealized gain on available-for-sale securities, net of tax			(81)		(81)
Foreign currency translation adjustment			(77)		(77)
Net income				6,776	6,776
Balance at Dec. 31, 2015	$ 9	46,291	(166)	36,435	$ 82,569
Balance, shares at Dec. 31, 2015	9,183,957				9,183,957
Exercise of stock options		686			$ 686
Exercise of stock options, shares	149,315				(374,857)
Stock repurchased				(6,086)	$ (6,086)
Stock repurchased, shares	(542,259)
Cash dividends, per share				(1,817)	(1,817)
Stock issued - Sabine acquisition
Tax benefit - stock option exercises		690			690
Stock-based compensation expense		667			667
Stock-based compensation expense, shares	12,491
Proceeds from employee stock purchase plan		87			87
Proceeds from employee stock purchase plan, shares	9,140
Unrealized gain on available-for-sale securities, net of tax			(1)		(1)
Foreign currency translation adjustment			(38)		(38)
Options repurchased		(1,752)			(1,752)
Net income				2,444	2,444
Balance at Dec. 31, 2016	$ 9	$ 46,669	$ (205)	$ 30,976	$ 77,449
Balance, shares at Dec. 31, 2016	8,812,644				8,812,644

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Stockholders' Equity [Abstract]
Cash dividends, per share	$ 0.20	$ 0.155	$ 0.10

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 2,444	$ 6,776	$ 5,596
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	1,873	2,058	1,972
Amortization of deferred rent	(73)	(95)	(79)
Stock-based compensation expense	667	848	401
Provision for (recoveries of) doubtful accounts, net	132	(4)	(71)
Write-down of inventory to net realizable value	653	496	946
Loss on disposal of assets	54	7
Tax benefit from exercise of stock options	(690)	(41)	(211)
Deferred income taxes	439	(4)	(495)
Changes in operating assets and liabilities:
Receivables	1,085	1,201	(251)
Inventories	1,869	(2,249)	(2,614)
Prepaid expenses and other assets	(209)	824	844
Accounts payable	733	(242)	(84)
Accrued liabilities	(319)	(1,219)	1,451
Income taxes payable	(207)	323	(947)
Deferred product revenue	(665)	(447)	858
Other long-term liabilities	48	(638)	(606)
Net cash provided by operating activities	7,834	7,594	6,710
Cash flows from investing activities:
Payment towards business acquisitions			(13,068)
Purchase of property and equipment	(730)	(359)	(642)
Purchase of intangibles	(161)		(90)
Proceeds from maturities and sales of marketable securities	9,795	7,341	4,650
Purchase of marketable securities	(9,826)	(7,630)	(5,266)
Net cash used in investing activities	(922)	(648)	(14,416)
Cash flows from financing activities:
Net proceeds from equity-based compensation programs	773	463	1,337
Repurchase and cancellation of stock options	(1,752)
Tax benefits from equity-based compensation programs	690	41	211
Stock registration costs			(55)
Dividend payments	(1,817)	(1,417)	(914)
Payments for stock repurchases	(6,086)		(2,598)
Net cash used in financing activities	(8,192)	(913)	(2,019)
Effect of exchange rate changes on cash and cash equivalents	(32)	(61)	(27)
Net increase (decrease) in cash and cash equivalents	(1,312)	5,972	(9,752)
Cash and cash equivalents at the beginning of the year	13,412	7,440	17,192
Cash and cash equivalents at the end of the year	12,100	13,412	7,440
Supplemental disclosure of cash flow information:
Cash paid for interest			3
Cash paid for income taxes	1,154	3,730	3,017
Supplemental disclosure of non-cash investing and financing activities:
Issuance of common stock in connection with acquisition of Sabine			$ 1,679

Business Description, Basis of Presentation and Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business Description, Basis of Presentation and Significant Accounting Policies

1. 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, network streaming and digital signage solutions for audio and visual communications. The performance and simplicity of our advanced comprehensive solutions offer unprecedented levels of functionality, reliability, and scalability.

Basis of Presentation:

Fiscal Year – This report on Form 10-K includes consolidated balance sheets for the years ended December 31, 2016 and 2015 and the related consolidated statements of income and comprehensive income, cash flows, and shareholders’ equity for each of the years 2016, 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, potential impairment of goodwill and 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 (except digital signage 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, 2016, 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 as follows:

	Year Ended December 31,
	2016			2015			2014
Balance at beginning of the year	$	54		$	58		$	129
Allowance increase (decrease)		148			36			(49	)
Write offs, net of recoveries		(15	)		(40	)		(22	)
Balance at end of the year	$	187		$	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 $21 and $75, as of December 31, 2016 and 2015, 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,
	2016		2015
Deferred revenue	$	3,882	$	4,549
Deferred cost of goods sold		1,530		1,628
Deferred gross profit	$	2,352	$	2,921

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, until the defective unit has been returned. Any amount due from the customer upon failure to return the products is accounted as receivable only after establishing customer's failure to return the products. The inventory due from the customer is accounted at cost or market value whichever is lower.

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,
	2016			2015			2014
Balance at the beginning of year	$	288		$	331		$	338
Accruals/additions		361			442			511
Usage/claims		(403	)		(485	)		(518	)
Balance at end of year	$	246		$	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, 2016, 2015 and 2014 totaled $836, $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, 2016 and 2015, the Company had a valuation allowance of $1,404 and $1,071, respectively against foreign net operating losses, foreign intangible assets, capital losses carryforwards, and state research and development credits.

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

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

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

	Year Ended December 31,
	2016		2015		2014
Numerator:
Net income	$	2,444	$	6,776	$	5,596
Denominator:
Basic weighted average shares		9,021,980		9,127,385		9,166,769
Dilutive common stock equivalents using treasury stock method		284,054		467,274		414,557
Diluted weighted average shares		9,306,034		9,594,659		9,581,326

Basic earnings per common share:	$	0.27	$	0.74	$	0.61
Diluted earnings per common share:	$	0.26	$	0.71	$	0.58

Weighted average options outstanding		885,163		1,053,785		975,696
Anti-dilutive options not included in the computation		323,644		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 2015, 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 permitted. The updated standard becomes effective for the Company on January 1, 2018. The Company expects to adopt this accounting standard update on a modified retrospective basis in the first quarter of fiscal 2019, and it is currently evaluating the impact of this accounting standard update on the consolidated financial statements.

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.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Shared-Based Payment Accounting. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for the Company on January 1, 2017 and it is currently evaluating the impact that ASU 2016-09 will have on our consolidated financial statements.

Marketable Securities

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

2. 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, 2016 and 2015 were as follows:

	Amortized cost		Gross unrealized holding gains		Gross unrealized holding losses			Estimated fair value
December 31, 2016
Available-for-sale securities:
Corporate bonds and notes	$	20,028	$	64	$	(122	)	$	19,970
Municipal bonds		6,463		6		(44	)		6,425
Total available-for-sale securities	$	26,491	$	70	$	(166	)	$	26,395

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

Maturities of marketable securities classified as available-for-sale securities were as follows at December 31, 2016:

	Amortized		Estimated
	cost		fair value

Due within one year	$	5,029	$	5,030
Due after one year through five years		21,353		21,256
Due after five years through ten years		109		109
Total available-for-sale securities	$	26,491	$	26,395

Debt securities in an unrealized loss position as of December 31, 2016 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, 2016 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, 2016
Corporate bonds and notes	$	10,294	$	(112	)		1,029	$	(9	)	$	11,323	$	(121	)
Municipal bonds		3,910		(45	)		—		—			3,910		(45	)
	$	14,204	$	(157	)	$	1,029	$	(9	)	$	15,233	$	(166	)

- Definition

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

+ References + Details

Business Combinations, Goodwill and Intangibles

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Business Combinations, Goodwill and Intangibles

3. 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 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 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.

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, 2016, 2015, and 2014 were as follows:

	2016		2015		2014
Balance as of January 1,
Goodwill	$	12,724	$	12,724	$	3,472
Accumulated impairment losses		—		—		—
		12,724		12,724		3,472
Goodwill acquired during the year		—		—		9,252
Balance as of December 31,
Goodwill		12,724		12,724		12,724
Accumulated impairment losses		—		—		—
	$	12,724	$	12,724	$	12,724

Intangible Assets

Intangible assets as of December 31, 2016, and 2015 consisted of the following:

	Estimated	As of December 31,
	useful lives	2016			2015
Tradename	5 to 7 years	$	555		$	555
Patents and technological know-how	10 years		6,010			5,850
Proprietary software	3 to 15 years		4,341			4,341
Other	3 to 5 years		324			324
			11,230			11,230
Accumulated amortization			(5,553	)		(4,432	)
Total intangible assets, net		$	5,677		$	6,638

During the years ended December 31, 2016, 2015 and 2014, amortization of these intangible assets were $1,121, $1,258, and 1,210 respectively.

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

Years ending December 31,
2017	$	928
2018		853
2019		781
2020		602
2021		602
Thereafter		1,911
	$	5,677

Inventories

12 Months Ended

Dec. 31, 2016

Inventory Disclosure [Abstract]

Inventories

4. Inventories

Inventories, net of reserves, consisted of the following:

	As of December 31,
	2016		2015
Current:
Raw materials	$	2,291	$	2,735
Finished goods		9,086		10,712
	$	11,377	$	13,447
Long-term:
Raw materials	$	599	$	375
Finished goods		1,065		1,643
	$	1,664	$	2,018

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 $1,530 and $1,628 as of December 31, 2016 and 2015, 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 $653, $496 and $946 during the years ended December 31, 2016, 2015 and 2014, respectively.

Property and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

5. Property and Equipment

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

	Estimated	As of December 31,
	useful lives	2016			2015
Office furniture and equipment	3 to 10 years	$	4,835		$	4,412
Leasehold improvements	1 to 6 years		1,495			1,488
Manufacturing and test equipment	2 to 10 years		2,537			2,483
			8,867			8,383
Accumulated depreciation and amortization			(7,354	)		(6,794	)
Property and equipment, net		$	1,513		$	1,589

Depreciation expense on property and equipment for the years ended December 31, 2016, 2015 and 2014 was $723, $801, and $761, respectively.

Leases and Deferred Rent

12 Months Ended

Dec. 31, 2016

Leases [Abstract]

Leases and Deferred Rent

6. 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 $1,099, $1,420 and $1,236, including amortization of deferred rent of $73, $95, and $79 for the years ended December 31, 2016, 2015 and 2014, respectively.

We occupy a 5,000 square-foot facility in Gainsville, Florida under the terms of an operating lease that expires in February 2021 with the possibility of renewing the lease for 10 more years. The Gainesville facility was used primarily to support out research and development activities.

We currently 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 7,070 square-foot facility in Austin, Texas - under the terms of an operating lease expiring in October 2019. This facility support our administrative, sales, marketing, customer support, and research and development activities.

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

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

Years ending December 31,
2017	$	928
2018		872
2019		467
2020		239
2021		204
Total minimum lease payments	$	2,710

Accrued Liabilities

12 Months Ended

Dec. 31, 2016

Payables and Accruals [Abstract]

Accrued Liabilities

7. Accrued Liabilities

Accrued liabilities consist of the following:

	As of December 31,
	2016		2015
Accrued salaries and other compensation	$	1,098	$	1,170
Sales and marketing programs		319		477
Product warranty		246		288
Other accrued liabilities		231		308
Total	$	1,894	$	2,243

Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

8. 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 $13,563 as of December 31, 2016.

Uncertain Tax Positions. As further discussed in Note 12, we had $1,189 of uncertain tax positions as of December 31, 2016. 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.

On or about October 24, 2016, the Company received written notice from the United States Department of Labor, Occupational Health and Safety Administration (“OSHA”) that a complaint had been filed against it by a former employee. Among other things, the former employee’s OSHA complaint alleges harassment, retaliation, and violations of 18 U.S.C.A. Section 1514A, et seq. (the “Sarbanes-Oxley Act”) arising out of the termination of his employment with the Company on or about August 17, 2016 (the “OSHA Complaint”). The Company denies the allegations in the OSHA complaint, has not discovered any evidence of wrongdoing with respect to the allegations previously made by the former employee, and is vigorously defending the claims. On March 2, 2017, the Company received notice that the same former employee who initiated the OSHA Complaint also has filed a complaint with the Utah Labor Commission, Anti-Discrimination& Labor Division (the “Utah Complaint”) alleging that the employee's termination was discriminatory based upon a disability or, in the alternative, retaliatory for substantially the same reasons alleged in the OSHA Complaint. The Company is in the process of assessing the Utah Complaint and intends to vigorously defend it.

In 2016, the Company recorded $927 of pretax gross expenses related to the defense of the OSHA Complaint and review of the allegations underlying the former employee’s OSHA complaint.

We expect to incur additional expenses related to legal and other professional services rendered in connection with the defense of OSHA Complaint and/or related matters in future periods and will recognize these expenses as services are received. Expenses related to the defense of the OSHA Complaint and/or related matters may include additional liabilities from OSHA’s expected investigation; future governmental investigations and/or enforcement proceedings; future civil litigation; and future unspecified expenses.

The Company maintains an Employment Practices Liability policy with Chubb/Federal Insurance Company (the “EPL Policy”). Based on the allegations contained in the OSHA Complaint, the Company has tendered a claim for coverage under the EPL Policy.

In addition, the Company is 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 other 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. 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, 2016

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

Share-Based Payments

9. 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, 2015. 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, 2016 had contractual lives of ten years.

Under the 1998 Plan, 2,500,000 shares were authorized for grant. As of December 31, 2016, there were 150,000 options outstanding under the 1998 Plan, which includes the cliff vesting and 3 or 4-year vesting options discussed above.

As of December 31, 2016, there were 700,232 options outstanding under the 2007 Plan. As of December 31, 2016, the 2007 Plan had 826,268 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,
	2016			2015			2014
Risk-free interest rate, average		1.52	%		2.00	%		2.20	%
Expected option life, average		6.1 years			6.1 years			8.2 years
Expected price volatility, average		43.75	%		44.30	%		47.60	%
Expected dividend yield		1.71	%		1.10	%		-%

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, 2013		1,111,274		$	5.15
Granted		193,500			8.83
Expired and canceled		(29,532	)		6.87
Forfeited prior to vesting		(729	)		8.88
Exercised		(234,432	)		5.72
As of December 31, 2014		1,040,081		$	5.65		5.60	$	4,286
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
Granted		217,700			11.73
Expired and canceled		(4,186	)		12.03
Forfeited prior to vesting		(17,360	)		10.67
Exercised		(374,857	)		4.46
As of December 31, 2016		850,232		$	8.06		5.78	$	3,001
Vested and Expected to Vest at December 31, 2014		1,040,081		$	5.65		5.60	$	4,286
Vested at December 31, 2014		730,016		$	4.67		4.15	$	3,271
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
Vested and Expected to Vest at December 31, 2016		850,232		$	8.06		5.78	$	3,001
Vested at December 31, 2016		552,097		$	6.33		4.09	$	2,843

The weighted average per share fair value of options granted during the years ending December 31, 2016, 2015 and 2014 was $4.27, $5.27, and $ 4.85 respectively. The total intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014 was $2,824, $404, and $1,337 respectively.

The total pre-tax compensation cost related to stock options recognized during the years ended December 31, 2016, 2015, and 2014 was $628, $552 and $401, respectively. Tax benefit from compensation cost related to stock options during the years ended December 31, 2016, 2015 and 2014 was $107, $41 and $211, respectively. As of December 31, 2016, the total compensation cost related to stock options not yet recognized and before the effect of any forfeitures was $1,127, which is expected to be recognized over approximately the next 2.19 years on a straight-line basis.

Employee Stock Purchase Plan

During 2016, the Company issued shares to employees under the Company’s 2015 Employee Stock Purchase Plan (the “ESPP”). The ESPP was approved by the Company’s shareholders on December 12, 2015. As of December 31, 2016, 475,893 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:

	2016		2015		2014
Shares purchased under ESPP plans		9,140		14,982		82
Plan compensation expense	$	18	$	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, 2015, the Company announced the discontinuance of the stock repurchase program along with the initiation of a cash dividend plan. On January 31, 2017, the Company declared its most recent dividend under this plan of $0.05 per share of ClearOne common stock, payable on March 1, 2017 to shareholders of record on February 15, 2017. In addition, on March 1, 2017, our Board of Directors authorized an increase in our quarterly dividend from $0.05 per share to $0.07 per share beginning with the second quarter dividend in 2017 expected to be paid on or about June 1, 2017.

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 under a new stock repurchase program. In connection with the repurchase authorization, the Company was authorized to complete the repurchase through open market transactions or through an accelerated share repurchase program, in each case to be executed at management’s discretion based on business and market conditions, stock price, trading restrictions, acquisition activity and other factors. The repurchase program may be suspended or discontinued at any time without prior notice. The transactions effectuated to date occurred in open market purchases.

On March 1, 2017, the Board of Directors of the Company renewed and extended the repurchase program for up to an additional $10 million of common stock over the next twelve months. In connection with the repurchase extension authorization, the Company was authorized to complete the repurchase through open market transactions or through an accelerated share repurchase program, in each case to be executed at management’s discretion based on business and market conditions, stock price, trading restrictions, acquisition activity and other factors. The repurchase program may be suspended or discontinued at any time without prior notice. The transactions effectuated to date occurred in open market purchases.

During the twelve months ended December 31, 2016, we acquired the following shares of common stock under the current stock repurchase program:

$ in thousands except per share price	Total Number of Shares Purchased (a)		Average Price Paid per Share (b)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (c)		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs ($ thousands) (d)

March 9 to March 31		33,600	$	12.02		33,600	$	9,596
April 1 to June 30		330,515		11.25		330,515		5,885
July 1 to September 30		91,965		11.16		91,965		4,861
October 1 to December 31		86,179		11.00		86,179		3,914
Total		542,259	$	11.25		542,259

From March 11, 2016 to March 17, 2016, the Company offered to repurchase eligible vested options to purchase shares under the 1998 Plan and the 2007 Plan from employees and directors. The Company repurchased delivered options at a repurchase price equal to the difference between the closing market price on the date of the employee’s communication of accepting the repurchase offer and the exercise price of such employee’s delivered options, subject to applicable withholding taxes and charges. The Company repurchased 225,542 stock options from employees and directors at an average purchase price of $7.77.

Significant Customers

12 Months Ended

Dec. 31, 2016

Risks and Uncertainties [Abstract]

Significant Customers

10. Significant Customers

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

	Year ended December 31,
	2016			2015			2014
Customer A		16.3	%		14.2	%		16.0	%
Customer B		-	%*		10.4	%		-	%*
Total		16.3	%		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,
	2016			2015
Customer A		13.40	%		18	%
Customer B		11.70	%		16	%
Total		25.10	%		34	%

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, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

11. 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, 2016 and 2015:

	Level 1		Level 2		Level 3		Total
December 31, 2016
Corporate bonds and notes	$	—	$	19,970	$	—	$	19,970
Municipal bonds		—		6,425		—		6,425
Total	$	—	$	26,395	$	—	$	26,395
December 31, 2015
Corporate bonds and notes	$	—	$	20,744	$	—	$	20,744
Municipal bonds		—		5,621		—		5,621
Total	$	—	$	26,365	$	—	$	26,365

- 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, 2016

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

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

	Year ended December 31,
	2016			2015			2014
Domestic	$	6,332		$	13,295		$	9,615
Foreign		(2,454	)		(2,744	)		(1,386	)
Total	$	3,878		$	10,551		$	8,229

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

	Year ended December 31,
	2016			2015			2014
Current:
Federal	$	(593	)	$	(3,386	)	$	(2,750	)
State		63			(344	)		(173	)
Foreign		(37	)		—			(109	)
Total current		(567	)		(3,730	)		(3,032	)
Deferred:
Federal		(633	)		(220	)		379
State		(17	)		(10	)		27
Foreign		115			470			401
		(535	)		240			807
Change in valuation allowance		(332	)		(285	)		(408	)
Total deferred		(867	)		(45	)		399
(Provision) for income taxes	$	(1,434	)	$	(3,775	)	$	(2633	)

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

	Year ended December 31,
	2016			2015			2014
Tax (provision) at Federal statutory rate	$	(1,318	)	$	(3,587	)	$	(2,798	)
State income tax (provision), net of federal benefit		(148	)		(408	)		(257	)
Research and development tax credits		423			456			549
Foreign earnings or losses taxed at different rates		(292	)		(231	)		(102	)
Other		233			280			383
Change in valuation allowance		(332	)		(285	)		(408	)
Tax (provision)	$	(1,434	)	$	(3,775	)	$	(2,633	)

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

	2016			2015
Deferred revenue	$	845		$	1,019
Basis difference in intangible assets		(56	)		26
Inventory reserve		2,650			2,452
Net operating loss carryforwards		1,391			1,347
Research and development tax credits		88			—
Accrued expenses		92			165
Stock-based compensation		584			672
Allowance for sales returns and doubtful accounts		70			20
Difference in property and equipment basis		(350	)		(423	)
Other		743			886
Total net deferred income tax asset		6,057			6,164
Less: Valuation allowance		(1,403	)		(1,071	)
Net deferred income tax asset (liability)	$	4,654		$	5,093

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, 2016 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, foreign intangible assets, state R&D tax credit carryforwards, and capital loss carryforwards.

The Company has federal net operating loss (“NOL”) carryforwards of approximately $755 (pre-tax), Hong Kong NOL carryforwards of approximately $255, and Spain NOL carryforwards of approximately $855. 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, 2016 and 2015, that would favorably impact our effective tax rate if recognized was $233 and $176, respectively. As of December 31, 2016 and 2015, we accrued $87 and $55, 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,
	2016		2015
Balance - beginning of year	$	1,126	$	1,678
Additions based on tax positions related to the current year		16		52
Additions for tax positions of prior years		47		5
Reductions for tax positions of prior years		-		(503	)
Settlements		-		—
Lapse in statutes of limitations		-		(106	)
Uncertain tax positions, ending balance	$	1,189	$	1,126

The Company’s U.S. federal income tax returns for 2012 through 2015 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, which was completed subsequent to December 31, 2016. As a result of the audit, there were no material changes to the Company’s 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, 2016

Segment Reporting [Abstract]

Geographic Sales Information

13. 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,
	2016		2015		2014
United States	$	31,838	$	39,563	$	39,837
All other countries		16,799		18,233		18,072
Total	$	48,637	$	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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

+ Details

Subsequent Events

12 Months Ended

Dec. 31, 2016

Subsequent Events [Abstract]

Subsequent Events

14. Subsequent Events

On January 31, 2017, the Company declared a stock dividend of $0.05 per share of ClearOne common stock payable on March 1, 2017 to shareholders of record on February 15, 2017.

In March 2017, the Company renewed and extended its common stock repurchase program of $10,000 to continue through March 9, 2018.

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

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Fiscal Year

Fiscal Year – This report on Form 10-K includes consolidated balance sheets for the years ended December 31, 2016 and 2015 and the related consolidated statements of income and comprehensive income, cash flows, and in shareholders’ equity for each of the years 2016, 2015 and 2014.

Consolidation

Use of Estimates

Foreign Currency Translation

Concentration Risk

Cash Equivalents

Marketable Securities

Accounts Receivable

The Company’s allowance for doubtful accounts activity for the years ended as follows:

	Year Ended December 31,
	2016			2015			2014
Balance at beginning of the year	$	54		$	58		$	129
Allowance increase (decrease)		148			36			(49	)
Write offs, net of recoveries		(15	)		(40	)		(22	)
Balance at end of the year	$	187		$	54		$	58

Inventories

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

Property and Equipment

Goodwill and Intangible Assets

Impairment of Long-Lived Assets

Revenue Recognition

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,
	2016		2015
Deferred revenue	$	3,882	$	4,549
Deferred cost of goods sold		1,530		1,628
Deferred gross profit	$	2,352	$	2,921

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

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

	Year Ended December 31,
	2016			2015			2014
Balance at the beginning of year	$	288		$	331		$	338
Accruals/additions		361			442			511
Usage/claims		(403	)		(485	)		(518	)
Balance at end of year	$	246		$	288		$	331

Advertising

Research and Product Development Costs

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

Income Taxes

Earnings Per Share

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

	Year Ended December 31,
	2016		2015		2014
Numerator:
Net income	$	2,444	$	6,776	$	5,596
Denominator:
Basic weighted average shares		9,021,980		9,127,385		9,166,769
Dilutive common stock equivalents using treasury stock method		284,054		467,274		414,557
Diluted weighted average shares		9,306,034		9,594,659		9,581,326

Basic earnings per common share:	$	0.27	$	0.74	$	0.61
Diluted earnings per common share:	$	0.26	$	0.71	$	0.58

Weighted average options outstanding		885,163		1,053,785		975,696
Anti-dilutive options not included in the computation		323,644		177,125		209,751

Share-Based Payment

Recent Accounting Pronouncements

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

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Allowance for Doubtful Accounts Activity

The Company’s allowance for doubtful accounts activity for the years ended as follows:

	Year Ended December 31,
	2016			2015			2014
Balance at beginning of the year	$	54		$	58		$	129
Allowance increase (decrease)		148			36			(49	)
Write offs, net of recoveries		(15	)		(40	)		(22	)
Balance at end of the year	$	187		$	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,
	2016		2015
Deferred revenue	$	3,882	$	4,549
Deferred cost of goods sold		1,530		1,628
Deferred gross profit	$	2,352	$	2,921

Schedule of Product Warranty Liability

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

	Year Ended December 31,
	2016			2015			2014
Balance at the beginning of year	$	288		$	331		$	338
Accruals/additions		361			442			511
Usage/claims		(403	)		(485	)		(518	)
Balance at end of year	$	246		$	288		$	331

Schedule of Basic and Earnings Per Common Share

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

	Year Ended December 31,
	2016		2015		2014
Numerator:
Net income	$	2,444	$	6,776	$	5,596
Denominator:
Basic weighted average shares		9,021,980		9,127,385		9,166,769
Dilutive common stock equivalents using treasury stock method		284,054		467,274		414,557
Diluted weighted average shares		9,306,034		9,594,659		9,581,326

Basic earnings per common share:	$	0.27	$	0.74	$	0.61
Diluted earnings per common share:	$	0.26	$	0.71	$	0.58

Weighted average options outstanding		885,163		1,053,785		975,696
Anti-dilutive options not included in the computation		323,644		177,125		209,751

Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2016

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, 2016
Available-for-sale securities:
Corporate bonds and notes	$	20,028	$	64	$	(122	)	$	19,970
Municipal bonds		6,463		6		(44	)		6,425
Total available-for-sale securities	$	26,491	$	70	$	(166	)	$	26,395

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

Schedule of Maturities of Marketable Securities

Maturities of marketable securities classified as available-for-sale securities were as follows at December 31, 2016:

	Amortized		Estimated
	cost		fair value

Due within one year	$	5,029	$	5,030
Due after one year through five years		21,353		21,256
Due after five years through ten years		109		109
Total available-for-sale securities	$	26,491	$	26,395

Schedule of Available-for-sale Securities

The available-for-sale marketable securities in a gross unrealized loss position as of December 31, 2016 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, 2016
Corporate bonds and notes	$	10,294	$	(112	)		1,029	$	(9	)	$	11,323	$	(121	)
Municipal bonds		3,910		(45	)		—		—			3,910		(45	)
	$	14,204	$	(157	)	$	1,029	$	(9	)	$	15,233	$	(166	)

Business Combinations, Goodwill and Intangibles (Tables)

12 Months Ended

Dec. 31, 2016

Business Acquisition [Line Items]

Schedule of Goodwill

Changes in the carrying amount of the Company’s goodwill for the years ended December 31, 2016, 2015, and 2014 were as follows:

	2016		2015		2014
Balance as of January 1,
Goodwill	$	12,724	$	12,724	$	3,472
Accumulated impairment losses		—		—		—
		12,724		12,724		3,472
Goodwill acquired during the year		—		—		9,252
Balance as of December 31,
Goodwill		12,724		12,724		12,724
Accumulated impairment losses		—		—		—
	$	12,724	$	12,724	$	12,724

Schedule of Intangible Assets

Intangible assets as of December 31, 2016, and 2015 consisted of the following:

	Estimated	As of December 31,
	useful lives	2016			2015
Tradename	5 to 7 years	$	555		$	555
Patents and technological know-how	10 years		6,010			5,850
Proprietary software	3 to 15 years		4,341			4,341
Other	3 to 5 years		324			324
			11,230			11,230
Accumulated amortization			(5,553	)		(4,432	)
Total intangible assets, net		$	5,677		$	6,638

Schedule of Estimated Future Amortization Expense of Intangible Assets

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

Years ending December 31,
2017	$	928
2018		853
2019		781
2020		602
2021		602
Thereafter		1,911
	$	5,677

Sabine, Inc. [Member]

Business Acquisition [Line Items]

Schedule of 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

Spontania [Member]

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

Inventories (Tables)

12 Months Ended

Dec. 31, 2016

Inventory Disclosure [Abstract]

Schedule of Inventory, Net of Reserves

Inventories, net of reserves, consisted of the following:

	As of December 31,
	2016		2015
Current:
Raw materials	$	2,291	$	2,735
Finished goods		9,086		10,712
	$	11,377	$	13,447
Long-term:
Raw materials	$	599	$	375
Finished goods		1,065		1,643
	$	1,664	$	2,018

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2016

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	2016			2015
Office furniture and equipment	3 to 10 years	$	4,835		$	4,412
Leasehold improvements	1 to 6 years		1,495			1,488
Manufacturing and test equipment	2 to 10 years		2,537			2,483
			8,867			8,383
Accumulated depreciation and amortization			(7,354	)		(6,794	)
Property and equipment, net		$	1,513		$	1,589

Leases and Deferred Rent (Tables)

12 Months Ended

Dec. 31, 2016

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,
2017	$	928
2018		872
2019		467
2020		239
2021		204
Total minimum lease payments	$	2,710

Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2016

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consist of the following:

	As of December 31,
	2016		2015
Accrued salaries and other compensation	$	1,098	$	1,170
Sales and marketing programs		319		477
Product warranty		246		288
Other accrued liabilities		231		308
Total	$	1,894	$	2,243

Share-Based Payments (Tables)

12 Months Ended

Dec. 31, 2016

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

Schedule of 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,
	2016			2015			2014
Risk-free interest rate, average		1.52	%		2.00	%		2.20	%
Expected option life, average		6.1 years			6.1 years			8.2 years
Expected price volatility, average		43.75	%		44.30	%		47.60	%
Expected dividend yield		1.71	%		1.10	%		-%

Schedule of Stock Option 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, 2013		1,111,274		$	5.15
Granted		193,500			8.83
Expired and canceled		(29,532	)		6.87
Forfeited prior to vesting		(729	)		8.88
Exercised		(234,432	)		5.72
As of December 31, 2014		1,040,081		$	5.65		5.60	$	4,286
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
Granted		217,700			11.73
Expired and canceled		(4,186	)		12.03
Forfeited prior to vesting		(17,360	)		10.67
Exercised		(374,857	)		4.46
As of December 31, 2016		850,232		$	8.06		5.78	$	3,001
Vested and Expected to Vest at December 31, 2014		1,040,081		$	5.65		5.60	$	4,286
Vested at December 31, 2014		730,016		$	4.67		4.15	$	3,271
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
Vested and Expected to Vest at December 31, 2016		850,232		$	8.06		5.78	$	3,001
Vested at December 31, 2016		552,097		$	6.33		4.09	$	2,843

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

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

	2016		2015		2014
Shares purchased under ESPP plans		9,140		14,982		82
Plan compensation expense	$	18	$	31	$	-

Schedule of Current Stock Repurchase Program

During the twelve months ended December 31, 2016, we acquired the following shares of common stock under the current stock repurchase program:

$ in thousands except per share price	Total Number of Shares Purchased (a)		Average Price Paid per Share (b)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (c)		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs ($ thousands) (d)

March 9 to March 31		33,600	$	12.02		33,600	$	9,596
April 1 to June 30		330,515		11.25		330,515		5,885
July 1 to September 30		91,965		11.16		91,965		4,861
October 1 to December 31		86,179		11.00		86,179		3,914
Total		542,259	$	11.25		542,259

Significant Customers (Tables)

12 Months Ended

Dec. 31, 2016

Risks and Uncertainties [Abstract]

Schedules of Concentration of Risk, by Risk Factor of Sales Revenue and Accounts Receivable

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

	Year ended December 31,
	2016			2015			2014
Customer A		16.3	%		14.2	%		16.0	%
Customer B		-	%*		10.4	%		-	%*
Total		16.3	%		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,
	2016			2015
Customer A		13.40	%		18	%
Customer B		11.70	%		16	%
Total		25.10	%		34	%

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities Measured On Recurring Basis

The following tables set forth the fair value of the financial instruments re-measured by the Company as of December 31, 2016 and 2015:

	Level 1		Level 2		Level 3		Total
December 31, 2016
Corporate bonds and notes	$	—	$	19,970	$	—	$	19,970
Municipal bonds		—		6,425		—		6,425
Total	$	—	$	26,395	$	—	$	26,395
December 31, 2015
Corporate bonds and notes	$	—	$	20,744	$	—	$	20,744
Municipal bonds		—		5,621		—		5,621
Total	$	—	$	26,365	$	—	$	26,365

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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,
	2016			2015			2014
Domestic	$	6,332		$	13,295		$	9,615
Foreign		(2,454	)		(2,744	)		(1,386	)
Total	$	3,878		$	10,551		$	8,229

Schedule of Components of Provision for Income Taxes

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

	Year ended December 31,
	2016			2015			2014
Current:
Federal	$	(593	)	$	(3,386	)	$	(2,750	)
State		63			(344	)		(173	)
Foreign		(37	)		—			(109	)
Total current		(567	)		(3,730	)		(3,032	)
Deferred:
Federal		(633	)		(220	)		379
State		(17	)		(10	)		27
Foreign		115			470			401
		(535	)		240			807
Change in valuation allowance		(332	)		(285	)		(408	)
Total deferred		(867	)		(45	)		399
(Provision) for income taxes	$	(1,434	)	$	(3,775	)	$	(2633	)

Schedule of Income Tax Provision for Federal Statutory Income Tax Rate

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

	Year ended December 31,
	2016			2015			2014
Tax (provision) at Federal statutory rate	$	(1,318	)	$	(3,587	)	$	(2,798	)
State income tax (provision), net of federal benefit		(148	)		(408	)		(257	)
Research and development tax credits		423			456			549
Foreign earnings or losses taxed at different rates		(292	)		(231	)		(102	)
Other		233			280			383
Change in valuation allowance		(332	)		(285	)		(408	)
Tax (provision)	$	(1,434	)	$	(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:

	2016			2015
Deferred revenue	$	845		$	1,019
Basis difference in intangible assets		(56	)		26
Inventory reserve		2,650			2,452
Net operating loss carryforwards		1,391			1,347
Research and development tax credits		88			—
Accrued expenses		92			165
Stock-based compensation		584			672
Allowance for sales returns and doubtful accounts		70			20
Difference in property and equipment basis		(350	)		(423	)
Other		743			886
Total net deferred income tax asset		6,057			6,164
Less: Valuation allowance		(1,403	)		(1,071	)
Net deferred income tax asset (liability)	$	4,654		$	5,093

Schedule of Reconciliation of Uncertain Tax Positions

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

	Year ended December 31,
	2016		2015
Balance - beginning of year	$	1,126	$	1,678
Additions based on tax positions related to the current year		16		52
Additions for tax positions of prior years		47		5
Reductions for tax positions of prior years		-		(503	)
Settlements		-		—
Lapse in statutes of limitations		-		(106	)
Uncertain tax positions, ending balance	$	1,189	$	1,126

Geographic Sales Information (Tables)

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Schedule of Revenue by Geographic Area

The Company’s revenues are substantially denominated in U.S. dollars and are summarized geographically as follows:

	Year ended December 31,
	2016		2015		2014
United States	$	31,838	$	39,563	$	39,837
All other countries		16,799		18,233		18,072
Total	$	48,637	$	57,796	$	57,909

Business Description, Basis of Presentation and Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Marketable securities recognized, other than temporary impairments, amount	$ 0	$ 0	$ 0
Value of advance replacement units	$ 21	75
Product return policy, number of days	180 days
Product return policy not to exceed net purchases during preceeding quarter, percent	15.00%
Advertising expenses	$ 836	728	$ 768
Valuation allowance	$ 1,404	$ 1,071
Minimum [Member]
Property and equipment estimated useful lives	3 years
Maximum [Member]
Property and equipment estimated useful lives	10 years

Business Description, Basis of Presentation and Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance at beginning of the year	$ 54	$ 58	$ 129
Allowance increase (decrease)	148	36	(49)
Write offs, net of recoveries	(15)	(40)	(22)
Balance at end of the year	$ 187	$ 54	$ 58

Business Description, Basis of Presentation and Significant Accounting Policies - Schedule of Deferred Revenue and Associated Cost of Goods Sold and Gross Profit (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue	$ 3,882	$ 4,549
Deferred cost of goods sold	1,530	1,628
Deferred gross profit	$ 2,352	$ 2,921

- Definition

The carrying amount of consideration received or receivable as of the balance sheet date on potential earnings that were not recognized as revenue in conformity with GAAP, and which are expected to be recognized as such within one year or the normal operating cycle, if longer, including sales, license fees, and royalties, but excluding interest income.

+ References + Details

Business Description, Basis of Presentation and Significant Accounting Policies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance at the beginning of year	$ 288	$ 331	$ 338
Accruals/additions	361	442	511
Usage/claims	(403)	(485)	(518)
Balance at end of year	$ 246	$ 288	$ 331

Business Description, Basis of Presentation and Significant Accounting Policies - Schedule of Basic and Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income	$ 2,444	$ 6,776	$ 5,596
Basic weighted average shares	9,021,980	9,127,385	9,166,769
Dilutive common stock equivalents using treasury stock method	284,054	467,274	414,557
Diluted weighted average shares	9,306,034	9,594,659	9,581,326
Basic earnings per common share:	$ 0.27	$ 0.74	$ 0.61
Diluted earnings per common share:	$ 0.26	$ 0.71	$ 0.58
Weighted average options outstanding	885,163	1,053,785	975,696
Anti-dilutive options not included in the computation	323,644	177,125	209,751

Marketable Securities - Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Amortized cost	$ 26,491	$ 26,435
Gross unrealized holding gains	70	68
Gross unrealized holding losses	(166)	(138)
Estimated fair value	26,395	26,365
Corporate Bonds and Notes [Member]
Amortized cost	20,028	20,827
Gross unrealized holding gains	64	50
Gross unrealized holding losses	(122)	(133)
Estimated fair value	19,970	20,744
Municipal Bonds [Member]
Amortized cost	6,463	5,608
Gross unrealized holding gains	6	18
Gross unrealized holding losses	(44)	(5)
Estimated fair value	$ 6,425	$ 5,621

Marketable Securities - Schedule of Maturities of Marketable Securities (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Investments, Debt and Equity Securities [Abstract]
Amortized cost Due within one year	$ 5,029
Amortized cost Due after one year through five years	21,353
Amortized cost Due after five years through ten years	109
Amortized cost Total available-for-sale securities	26,491
Estimated fair value Due within one year	5,030
Estimated fair value Due after one year through five years	21,256
Estimated fair value Due after five years through ten years	109
Estimated fair value Total available-for-sale securities	$ 26,395

Marketable Securities - Schedule of Available-for-sale Securities (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Less than 12 Months - Estimated Fair Value	$ 14,204
Less than 12 Months - Gross Unrealized Holding Losses	(157)
More than 12 Months - Estimated Fair Value	1,029
More than 12 Months - Gross Unrealized Holding Losses	(9)
Total Estimated Fair Value	15,233
Total Gross Unrealized Holding Losses	(166)
Corporate Bonds and Notes [Member]
Less than 12 Months - Estimated Fair Value	10,294
Less than 12 Months - Gross Unrealized Holding Losses	(112)
More than 12 Months - Estimated Fair Value	1,029
More than 12 Months - Gross Unrealized Holding Losses	(9)
Total Estimated Fair Value	11,323
Total Gross Unrealized Holding Losses	(121)
Municipal Bonds [Member]
Less than 12 Months - Estimated Fair Value	3,910
Less than 12 Months - Gross Unrealized Holding Losses	(45)
More than 12 Months - Estimated Fair Value
More than 12 Months - Gross Unrealized Holding Losses
Total Estimated Fair Value	3,910
Total Gross Unrealized Holding Losses	$ (45)

Business Combinations, Goodwill and Intangibles (Details Narrative) € in Thousands, $ in Thousands				12 Months Ended
	Apr. 02, 2014 USD ($)	Apr. 02, 2014 EUR (€)	Mar. 07, 2014 USD ($) shares	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Goodwill				$ 12,724	$ 12,724	$ 12,724	$ 3,472
Total acquisition related expenses						588
Amortization of intangibles				$ 1,121	$ 1,258	$ 1,210
Sabine, Inc. [Member]
Consideration paid			$ 10,477
Goodwill			5,510
Sabine, Inc. [Member] \| Cash [Member]
Consideration paid			8,141
Sabine, Inc. [Member] \| Earn-out Payments [Member]
Consideration paid			657
Sabine, Inc. [Member] \| Restricted Stock [Member]
Consideration paid			$ 1,679
Number of shares of restricted common stock issued \| shares			150,000
Spontania [Member]
Consideration paid	$ 5,100
Goodwill	$ 3,741
Spontania [Member] \| EURO [Member]
Consideration paid \| €		€ 3,660

Business Combinations, Goodwill and Intangibles - Schedule of Business Acquisition, Consideration Transferred (Details) - Sabine, Inc. [Member] $ in Thousands	Mar. 07, 2014 USD ($)
Consideration paid	$ 10,477
Cash [Member]
Consideration paid	8,141
Common Stock [Member]
Consideration paid	1,679
Contingent Consideration [Member]
Consideration paid	$ 657

Business Combinations, Goodwill and Intangibles - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Apr. 02, 2014	Mar. 07, 2014
Sabine, Inc. [Member]
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 [Member]
Business Acquisition [Line Items]
Intangibles	$ 1,335
Property and equipment	47
Goodwill	3,741
Accrued liabilities	(71)
Total	$ 5,052

Business Combinations, Goodwill and Intangibles - Schedule of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Business Combinations [Abstract]
Beginning goodwill, gross	$ 12,724	$ 12,724	$ 3,472
Beginning accumulated impairment losses
Balance at the beginning of the year	12,724	12,724	3,472
Goodwill acquired during the year			9,252
Ending goodwill, gross	12,724	12,724	12,724
Ending accumulated impairment losses
Balance at end of year	$ 12,724	$ 12,724	$ 12,724

Business Combinations, Goodwill and Intangibles - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Total intangible assets	$ 11,230	$ 11,230
Accumulated amortization	(5,553)	(4,432)
Total intangible assets, net	5,677	6,638
Trade Names [Member]
Total intangible assets	$ 555	555
Trade Names [Member] \| Minimum [Member]
Estimated useful lives	5 years
Trade Names [Member] \| Maximum [Member]
Estimated useful lives	7 years
Patents and Technological Know-how [Member]
Estimated useful lives	10 years
Total intangible assets	$ 6,010	5,850
Proprietary Software [Member]
Total intangible assets	$ 4,341	4,341
Proprietary Software [Member] \| Minimum [Member]
Estimated useful lives	3 years
Proprietary Software [Member] \| Maximum [Member]
Estimated useful lives	15 years
Other Intangible Assets [Member]
Total intangible assets	$ 324	$ 324
Other Intangible Assets [Member] \| Minimum [Member]
Estimated useful lives	3 years
Other Intangible Assets [Member] \| Maximum [Member]
Estimated useful lives	5 years

Business Combinations, Goodwill and Intangibles - Schedule of Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
2017	$ 928
2018	853
2019	781
2020	602
2021	602
Thereafter	1,911
Finite-Lived Intangible Assets, Net	$ 5,677	$ 6,638

Inventories (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
Inventories (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Current finished goods do not include distributor channel inventories amount	$ 1,530	$ 1,628
Losses incurred on valuation of inventory and write-off of obsolete inventory	$ 653	$ 496	$ 946

Inventories - Schedule of Inventory, Net of Reserves (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 2,291	$ 2,735
Finished goods	9,086	10,712
Current Inventories	11,377	13,447
Raw materials	599	375
Finished goods	1,065	1,643
Long-term Inventories	$ 1,664	$ 2,018

Property and Equipment (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Depreciation expense on property and equipment	$ 723	$ 801	$ 761

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property and equipment, gross	$ 8,867	$ 8,383
Accumulated depreciation and amortization	(7,354)	(6,794)
Property and equipment, net	$ 1,513	1,589
Minimum [Member]
Property and equipment, Estimated useful life	3 years
Maximum [Member]
Property and equipment, Estimated useful life	10 years
Office Furniture and Equipment [Member]
Property and equipment, gross	$ 4,835	4,412
Office Furniture and Equipment [Member] \| Minimum [Member]
Property and equipment, Estimated useful life	3 years
Office Furniture and Equipment [Member] \| Maximum [Member]
Property and equipment, Estimated useful life	10 years
Leasehold Improvements [Member]
Property and equipment, gross	$ 1,495	1,488
Leasehold Improvements [Member] \| Minimum [Member]
Property and equipment, Estimated useful life	1 year
Leasehold Improvements [Member] \| Maximum [Member]
Property and equipment, Estimated useful life	6 years
Manufacturing and Test Equipment [Member]
Property and equipment, gross	$ 2,537	$ 2,483
Manufacturing and Test Equipment [Member] \| Minimum [Member]
Property and equipment, Estimated useful life	2 years
Manufacturing and Test Equipment [Member] \| Maximum [Member]
Property and equipment, Estimated useful life	10 years

Leases and Deferred Rent (Details Narrative) $ in Thousands	12 Months Ended
Leases and Deferred Rent (Details Narrative) $ in Thousands	Dec. 31, 2016 USD ($) ft²	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Rent expense \| $	$ 1,099	$ 1,420	$ 1,236
Amortization of deferred rent \| $	$ 73	$ 95	$ 79
Gainsville, Florida [Member] \| Office Building [Member]
Area leased	5,000
Lease expiration date	February 2021
Lease renewal term	10 years
Salt Lake City, Utah [Member] \| Office Building [Member]
Area leased	31,000
Lease expiration date	May 2019
Salt Lake City, Utah [Member] \| Warehouse [Member]
Area leased	40,000
Lease expiration date	December 2021
Austin, Texas [Member] \| Office Building [Member]
Area leased	7,070
Lease expiration date	October 2019

Leases and Deferred Rent - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Leases [Abstract]
2017	$ 928
2018	872
2019	467
2020	239
2021	204
Total minimum lease payments	$ 2,710

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued salaries and other compensation	$ 1,098	$ 1,170
Sales and marketing programs	319	477
Product warranty	246	288
Other accrued liabilities	231	308
Total	$ 1,894	$ 2,243

Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Long-term purchase commitment, amount	$ 13,563
Uncertain tax positions	1,189	$ 1,126	$ 1,678
Attorneys' fees
Pretax gross expenses	$ 927

Share-Based Payments (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	6 Months Ended			12 Months Ended			31 Months Ended
	Mar. 17, 2016	Dec. 31, 1999	Jun. 30, 2005	Jun. 30, 2003	Jun. 30, 2002	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2002	Mar. 09, 2016	Dec. 12, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options granted						217,700	56,666	193,500
Stock options vesting description					The options granted subsequent to September 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.
Share-based payment award, expiration period						10 years
Number of stock options shares outstanding						837,232	1,028,935	1,040,081				1,111,274
Weighted average per share fair value of option granted						$ 4.27	$ 5.27	$ 4.85
Total intrinsic value of options exercised						$ 2,824	$ 404	$ 1,337
Total pre-tax compensation cost related to stock options						628	552	401
Tax benefit compensation cost related to stock options						107	41	211
Unrecognized compensation cost related to stock options						$ 1,127
Unrecognized compensation cost related to stock options, recognized period						2 years 2 months 9 days
Percentage of shares excess of combined voting power of parents and subsidiary						5.00%
Number of stock options fair value purchased under the plan during the period						$ 87	$ 155
Percentage of common stock purchase of period at price equal to fair market value						85.00%
Percentage of fair value of common stock discount						15.00%
Stock repurchase program share amount								$ 2,598		$ 10,000
Stock repurchase program shares						542,259,000		272,767
Dividend per share						$ 0.05
Dividend declared date						Jan. 31, 2017
Dividend date to be paid						Mar. 01, 2017
Dividend date of record						Feb. 15, 2017
Average purchase price per share						$ 11.25
Directors And Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vested period					3 years
Other Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vested period					4 years
Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend declared date						Mar. 01, 2017
Dividend date to be paid						Jun. 01, 2017
Board of Directors [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend per share						$ 0.05
Board of Directors [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend per share						$ 0.07
Board of Directors [Member] \| Maximum [Member] \| March 1, 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program share amount						$ 10,000
1998 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options granted		1,066,000							1,248,250
Stock options vested period		9 years 9 months 18 days							6 years
Stock options accelerated vesting shares			300,494	637,089
Maximum number of stock options grants						2,500,000
Number of stock options shares outstanding						150,000
Number of stock options shares authorized and unissued						0
1998 Incentive Plan [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vested period						3 years
1998 Incentive Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vested period						4 years
2007 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of stock options grants											2,000,000
Number of stock options shares outstanding						700,232
Number of stock options shares authorized and unissued						826,268
2015 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options granted						475,893
Number of shares available for offerings						500,000
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options shares purchased under the plan during the period						9,140	14,982	82
Employee Stock Purchase Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options shares purchased under the plan during the period						2,500
Number of stock options fair value purchased under the plan during the period						$ 25
1998 Incentive Plan and 2007 Equity Incentive Plan [Member] \| Employees and Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program shares	225,542
Average purchase price per share	$ 7.77

Share-Based Payments - Schedule of Share-based Compensation - Black-scholes Assumptions (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Risk-free interest rate, average	1.52%	2.00%	2.20%
Expected option life, average	6 years 1 month 6 days	6 years 1 month 6 days	8 years 2 months 12 days
Expected price volatility, average	43.75%	44.30%	47.60%
Expected dividend yield	1.71%	1.10%	0.00%

Share-Based Payments - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of shares Options, Outstanding at beginning of period	1,028,935	1,040,081	1,111,274
Number of shares Options, Granted	217,700	56,666	193,500
Number of shares Options, Reinstated		4,583
Number of shares Options, Expired and canceled	(4,186)	(1,000)	(29,532)
Number of shares Options, Forfeited prior to vesting	(17,360)	(15,252)	(729)
Number of shares Options, Exercised	(374,857)	(56,143)	(234,432)
Number of shares Options, Outstanding at end of period	837,232	1,028,935	1,040,081
Number of shares Options, Vested and Expected to Vest	850,232	1,028,935	1,040,081
Number of shares Options, Vested at end of period	552,097	820,022	730,016
Weighted Average Exercise Price, Outstanding at beginning of period	$ 6.03	$ 5.65	$ 5.15
Weighted Average Exercise Price, Granted	11.73	13.03	8.83
Weighted Average Exercise Price, Reinstated		4.47
Weighted Average Exercise Price, Expired and canceled	12.03	3.42	6.87
Weighted Average Exercise Price, Forfeited prior to vesting	10.67	7.85	8.88
Weighted Average Exercise Price, Exercised	4.46	5.51	5.72
Weighted Average Exercise Price, Outstanding at end of period	8.06	6.03	5.65
Weighted Average Exercise Price, Vested and Expected to Vest	8.06	6.03	5.65
Weighted Average Exercise Price, Vested at end of period	$ 6.33	$ 5.10	$ 4.67
Weighted Average Remaining Contractual Term (Years)	5 years 9 months 11 days	4 years 8 months 23 days	5 years 7 months 6 days
Weighted Average Remaining Contractual Term (Years), Vested and Expected to Vest	5 years 9 months 11 days	4 years 8 months 23 days	5 years 7 months 6 days
Weighted Average Remaining Contractual Term (Years), Vested	4 years 1 month 2 days	3 years 8 months 27 days	4 years 1 month 24 days
Aggregate Intrinsic Value	$ 3,001	$ 7,104	$ 4,286
Aggregate Intrinsic Value, Vested and Expected to Vest	3,001	7,104	4,286
Aggregate Intrinsic Value, Vested	$ 2,843	$ 6,419	$ 3,271

Share-Based Payments - Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity (Details) - Employee Stock Purchase Plan [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Shares purchased under ESPP plans	9,140	14,982	82
Plan compensation expense	$ 18	$ 31

Share-Based Payments - Schedule of Current Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2014
Total Number of Shares Purchased	542,259,000	272,767
Average Price Paid per Share	$ 11.25
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	542,259,000
March 9 to March 31 [Member]
Total Number of Shares Purchased	33,600,000
Average Price Paid per Share	$ 12.02
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	33,600,000
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	$ 9,596
April 1 to June 30 [Member]
Total Number of Shares Purchased	330,515,000
Average Price Paid per Share	$ 11.25
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	330,515,000
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	$ 5,885
July 1 to September 30 [Member]
Total Number of Shares Purchased	91,965,000
Average Price Paid per Share	$ 11.16
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	91,965,000
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	$ 4,861
October 1 to December 31 [Member]
Total Number of Shares Purchased	86,179,000
Average Price Paid per Share	$ 11.00
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	86,179,000
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs	$ 3,914

Significant Customers - Schedules of Concentration of Risk, by Risk Factor of Sales Revenue and Accounts Receivable (Details)

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Concentration risk, percentage

10.00%

Sales Revenues [Member]

Concentration risk, percentage

16.30%

24.60%

16.00%

Sales Revenues [Member] | Customer A [Member]

Concentration risk, percentage

16.30%

14.20%

16.00%

Sales Revenues [Member] | Customer B [Member]

Concentration risk, percentage

0.00%

^[1]

10.40%

0.00%

^[1]

Accounts Receivable [Member]

Concentration risk, percentage

25.10%

34.00%

Accounts Receivable [Member] | Customer A [Member]

Concentration risk, percentage

13.40%

18.00%

Accounts Receivable [Member] | Customer B [Member]

Concentration risk, percentage

11.70%

16.00%

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

Significant Customers - Schedules of Concentration of Risk, by Risk Factor of Sales Revenue and Accounts Receivable (Details) (Parenthetical)	12 Months Ended
	Dec. 31, 2016
Risks and Uncertainties [Abstract]
Concentration risk, percentage	10.00%

Fair Value Measurements - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	$ 26,395	$ 26,365
Corporate Bonds and Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	19,970	20,744
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	6,425	5,621
Fair Value, Inputs, Level 1 [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure
Fair Value, Inputs, Level 1 [Member] \| Corporate Bonds and Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure
Fair Value, Inputs, Level 1 [Member] \| Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure
Fair Value, Inputs, Level 2 [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	26,395	26,365
Fair Value, Inputs, Level 2 [Member] \| Corporate Bonds and Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	19,970	20,744
Fair Value, Inputs, Level 2 [Member] \| Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure	6,425	5,621
Fair Value, Inputs, Level 3 [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure
Fair Value, Inputs, Level 3 [Member] \| Corporate Bonds and Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure
Fair Value, Inputs, Level 3 [Member] \| Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Investments, Fair Value Disclosure

Income Taxes (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Discrete tax benefit	$ 233	$ 176
Unrecognized tax benefits, income tax penalties and interest accrued	87	$ 55
Internal Revenue Service (IRS) [Member]
Operating loss carryforwards	$ 755
Foreign Tax Authority [Member]
Operating loss carryforwards expiration date description	expire in 2029
Foreign Tax Authority [Member] \| HONG KONG [Member]
Operating loss carryforwards	$ 255
Foreign Tax Authority [Member] \| SPAIN [Member]
Operating loss carryforwards	$ 855

Income Taxes - Schedule of Income Before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Domestic	$ 6,332	$ 13,295	$ 9,615
Foreign	(2,454)	(2,744)	(1,386)
Total	$ 3,878	$ 10,551	$ 8,229

Income Taxes - Schedule of Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Current, Federal	$ (593)	$ (3,386)	$ (2,750)
Current, State	63	(344)	(173)
Current, Foreign	(37)		(109)
Total current	(567)	(3,730)	(3,032)
Deferred, Federal	(633)	(220)	379
Deferred, State	(17)	(10)	27
Deferred, foreign	115	470	401
Deferred provision before change in valuation allowance	(535)	240	807
Change in valuation allowance	(332)	(285)	(408)
Total deferred	(867)	(45)	399
(Provision) for income taxes	$ (1,434)	$ (3,775)	$ (2,633)

Income Taxes - Schedule of Income Tax Provision for Federal Statutory Income Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Tax (provision) at Federal statutory rate	$ (1,318)	$ (3,587)	$ (2,798)
State income tax (provision), net of federal benefit	(148)	(408)	(257)
Research and development tax credits	423	456	549
Foreign earnings or losses taxed at different rates	(292)	(231)	(102)
Other	233	280	383
Change in valuation allowance	(332)	(285)	(408)
Tax (provision)	$ (1,434)	$ (3,775)	$ (2,633)

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Deferred revenue	$ 845	$ 1,019
Basis difference in intangible assets	(56)	26
Inventory reserve	2,650	2,452
Net operating loss carryforwards	1,391	1,347
Research and development tax credits	88
Accrued expenses	92	165
Stock-based compensation	584	672
Allowance for sales returns and doubtful accounts	70	20
Difference in property and equipment basis	(350)	(423)
Other	743	886
Total net deferred income tax asset	6,057	6,164
Less: Valuation allowance	(1,404)	(1,071)
Net deferred income tax asset (liability)	$ 4,654	$ 5,093

Income Taxes - Schedule of Reconciliation of Uncertain Tax Positions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Balance - beginning of year	$ 1,126	$ 1,678
Additions based on tax positions related to the current year	16	52
Additions for tax positions of prior years	47	5
Reductions for tax positions of prior years		(503)
Settlements
Lapse in statutes of limitations		(106)
Uncertain tax positions, ending balance	$ 1,189	$ 1,126

Geographic Sales Information - Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue	$ 48,637	$ 57,796	$ 57,909
United States [Member]
Revenue	31,838	39,563	39,837
All Other Countries [Member]
Revenue	$ 16,799	$ 18,233	$ 18,072

Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jan. 31, 2017	Dec. 31, 2016	Mar. 01, 2017	Mar. 09, 2016	Dec. 31, 2014
Dividend price per share		$ 0.05
Dividend paid date		Mar. 01, 2017
Dividend record date		Feb. 15, 2017
Repurchase shares of common stock				$ 10,000	$ 2,598
Subsequent Event [Member]
Dividend price per share	$ 0.05
Dividend paid date	Mar. 01, 2017
Dividend record date	Feb. 15, 2017
Subsequent Event [Member] \| Renewed and Extended [Member]
Repurchase shares of common stock			$ 10,000