Related Parties

9 Months Ended

Sep. 30, 2012

Related Parties [Abstract]

Related Parties [TextBlock]

NOTE K– Related Parties

The Company conducts business with a related party company, Lite-On Semiconductor Corporation and its subsidiaries and affiliates (collectively, “LSC”), that owned approximately 18% of the Company's outstanding Common Stock as of September 30, 2012.The Company also conducts business with one significant company, Keylink International (B.V.I.) Inc. and its subsidiaries and affiliates (collectively, “Keylink”). Keylink is the Company's 5% joint venture partner in the Company's Shanghai manufacturing facilities.

The Audit Committee of theCompany's Board reviews all related party arrangements for potential conflict of interest situations on an ongoing basis, in accordance with such procedures as the Audit Committee may adopt from time to time.

Lite-On Semiconductor Corporation – During both the nine months ended September 30, 2012 and 2011, the Company sold products to LSC totaling approximately0% and 0% of its net sales, respectively. Net sales have decreased in recent years due to fewer wafers being sold to LSC and more wafers being used for internal consumption. Also, for the nine months ended September 30, 2012 and 2011, approximately 3%and 5%, respectively, of the Company's net sales were from semiconductor products purchased from LSC for subsequent sale, making LSC one of the Company's largest suppliers.

       Net sales to, and purchases from, LSC are as follows (in thousands):

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2012		2011		2012		2011
Net sales	$	530	$	894	$	851	$	1,846
Purchases	$	9,317	$	11,730	$	25,736	$	30,224

Keylink International (B.V.I.) Inc. – During the nine months ended September 30, 2012 and 2011, the Company sold products to Keylink totaling approximately 3% and 1% of its net sales, respectively. Net sales increased in 2012compared to 2011 due to the renewed business activity that had ceased during most of 2011. Also, for both the nine months ended September 30, 2012 and 2011, approximately 1%of the Company's net sales were from semiconductor products purchased from Keylink for subsequent sale. In addition, the Company's subsidiariesin China lease their manufacturing facilities from, and subcontract a portion of their manufacturing process (including, but not limited to, metal plating and environmental services) to Keylink. The Company also pays a consulting fee to Keylink. The aggregate amounts for these services for the nine months ended September 30, 2012 and 2011 wereapproximately $12 million and $13 million, respectively.

Net sales to, and purchases from, Keylink are as follows (in thousands):

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2012		2011		2012		2011
Net sales	$	6,007	$	5,898	$	15,450	$	7,102
Purchases	$	2,125	$	3,222	$	6,252	$	9,102

Accounts receivable from, and accounts payable to, LSC and Keylink are as follows (in thousands):

		September 30,		December 31,
		2012		2011
Accounts receivable
LSC	$	444	$	133
Keylink		11,498		11,237
	$	11,942	$	11,370
Accounts payable
LSC	$	7,159	$	5,106
Keylink		5,905		6,002
	$	13,064	$	11,108