Related Parties

9 Months Ended

Sep. 30, 2013

Related Parties [Abstract]

Related Parties [TextBlock]

NOTE N – Related Parties

The Company conducts business with two related companies, Lite-On Semiconductor Corporation and its subsidiaries and affiliates (collectively, “LSC”) and Keylink International (B.V.I.) Inc. and its subsidiaries and affiliates (collectively, “Keylink”). LSC owned approximately 18% of the Company's outstanding Common Stock as of September 30, 2013.Keylink is the Company's 5% joint venture partner in two of the Company's Shanghai manufacturing facilities.

The Audit Committee of the Company'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, 2013 and 2012, the Company sold products to LSC totaling approximately 0% of the Company's net sales. For the nine months ended September 30, 2013 and 2012, approximately 5% and 3%, 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,
		2013		2012		2013		2012
Net sales	$	190	$	530	$	589	$	851
Purchases	$	10,731	$	9,317	$	27,890	$	25,736

Keylink International (B.V.I.) Inc. – During the nine months ended September 30, 2013 and 2012, the Company sold products to Keylink totaling approximately 1% and 3% of the Company's net sales, respectively. For both the nine months ended September 30, 2013 and 2012, approximately 1% of the Company's net sales were from semiconductor products purchased from Keylink for subsequent sale. In addition, two of the Company's subsidiaries in 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, 2013 and 2012 were approximately $13 million and $12 million, respectively.

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

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2013		2012		2013		2012
Net sales	$	2,638	$	6,007	$	8,387	$	15,450
Purchases	$	2,290	$	2,125	$	5,956	$	6,252

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

		September 30,		December 31,
		2013		2012
Accounts receivable
LSC	$	212	$	204
Keylink		5,231		10,457
	$	5,443	$	10,661
Accounts payable
LSC	$	7,631	$	5,308
Keylink		6,289		5,095
	$	13,920	$	10,403