Related Parties

3 Months Ended

Mar. 31, 2014

Related Parties [Abstract]

Related Parties [TextBlock]

NOTE J– 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 March 31, 2014.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 three months ended March 31, 2014 and 2013, the Company sold products to LSC totaling approximately 0% of the Company's net sales. For the three months ended March 31, 2014 and 2013, approximately 2% and 1%, 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
		March 31,
		2014		2013
Net sales	$	115	$	103
Purchases	$	7,338	$	7,509

Keylink International (B.V.I.) Inc. – During the three months ended March 31, 2014 and 2013, the Company sold products to Keylink totaling approximately 1% and 2% of the Company's net sales, respectively. For both the three months ended March 31, 2014 and 2013, approximately 0% 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 three months ended March 31, 2014 and 2013 were approximately $4 million and $4 million, respectively.

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

		Three Months Ended
		March 31,
		2014		2013
Net sales	$	2,264	$	3,648
Purchases	$	1,646	$	1,528

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

		March 31,		December 31,
		2014		2013
Accounts receivable
LSC	$	97	$	140
Keylink		4,472		4,927
	$	4,569	$	5,067
Accounts payable
LSC	$	5,084	$	5,670
Keylink		4,938		6,505
	$	10,022	$	12,175