Asset sale	3 Months Ended
Mar. 31, 2017
Asset sale
Asset sale	Note 5. Asset sale In January 2017, the Company completed the sale of its Low Speed Transceiver Products’ assets to APAT OE pursuant to an asset purchase agreement dated December 14, 2016 for consideration of approximately $25.0 million (in RMB equivalent) plus approximately $1.4 million (in RMB equivalent) post-closing transaction service fees to be received under a transition services agreement with APAT OE in which the Company will provide short-term manufacturing and other specific services pursuant to such agreement. The related supply chain purchase commitments and value-added tax obligations have been assumed by APAT OE. The receivable and payable balances related to the transaction service arrangement are recorded within prepaid expenses and other current assets or accrued and other current liabilities on the Company’s consolidated financial statements. As of December 31, 2016, assets held for sale was $13.9 million, consisted of $13.1 million in inventories and $0.8 million in property, plant and equipment. As a result of post-closing adjustments, total consideration was reduced by approximately $3.4 million for inventory. In addition, an immaterial amount of property, plant and equipment was reclassified from assets held for sale. Upon closing, assets sold to APAT OE were approximately $12.8 million, including approximately $12.1 million in inventories and $0.7 million in property, plant and equipment. The adjusted consideration received of approximately $21.6 million is subject to further reduction of up to $10.0 million for any indemnification claims. The Company recorded a reserve of $6.7 million within accrued and other current liabilities as of March 31, 2017 for potential claims and an estimated $0.2 million in additional property, plant and equipment purchases. The Company recognized a $2.0 million gain on the sale of these assets within operating income in the three months ended March 31, 2017. All of the Low Speed Transceiver Products were part of the Company’s Network Products and Solution product group and included the low speed optical network (PON) products for which the end-of-life plan was announced in mid-2016.

Asset sale

3 Months Ended

Mar. 31, 2017

Note 5. Asset sale

In January 2017, the Company completed the sale of its Low Speed Transceiver Products’ assets to APAT OE pursuant to an asset purchase agreement dated December 14, 2016 for consideration of approximately $25.0 million (in RMB equivalent) plus approximately $1.4 million (in RMB equivalent) post-closing transaction service fees to be received under a transition services agreement with APAT OE in which the Company will provide short-term manufacturing and other specific services pursuant to such agreement. The related supply chain purchase commitments and value-added tax obligations have been assumed by APAT OE. The receivable and payable balances related to the transaction service arrangement are recorded within prepaid expenses and other current assets or accrued and other current liabilities on the Company’s consolidated financial statements.

As of December 31, 2016, assets held for sale was $13.9 million, consisted of $13.1 million in inventories and $0.8 million in property, plant and equipment. As a result of post-closing adjustments, total consideration was reduced by approximately $3.4 million for inventory. In addition, an immaterial amount of property, plant and equipment was reclassified from assets held for sale. Upon closing, assets sold to APAT OE were approximately $12.8 million, including approximately $12.1 million in inventories and $0.7 million in property, plant and equipment. The adjusted consideration received of approximately $21.6 million is subject to further reduction of up to $10.0 million for any indemnification claims. The Company recorded a reserve of $6.7 million within accrued and other current liabilities as of March 31, 2017 for potential claims and an estimated $0.2 million in additional property, plant and equipment purchases. The Company recognized a $2.0 million gain on the sale of these assets within operating income in the three months ended March 31, 2017.

All of the Low Speed Transceiver Products were part of the Company’s Network Products and Solution product group and included the low speed optical network (PON) products for which the end-of-life plan was announced in mid-2016.