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OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES
 9 Months Ended
Sep. 29, 2012
Disclosure Other Assets And Amounts Due To From Affiliates Additional Information [Abstract]  
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES
Marketable Equity Securities
As of September 29, 2012 and December 31, 2011, the Company had an investment in AWSC, with a fair market value of $2.2 million and $1.6 million, respectively and an adjusted cost basis of $0.7 million and $0.7 million, respectively. One of the Company’s directors is a director of AWSC and several directors and officers own amounts ranging from 0.1% to 0.5% of the outstanding stock of AWSC.
As of September 29, 2012 and December 31, 2011, the Company had an investment in WIN, with a fair market value of $1.6 million and $1.7 million, respectively. The adjusted cost basis of the WIN investment is $0. In the nine month period ended September 29, 2012 the Company sold 500,000 shares of WIN and recorded a gain of $0.9 million.
AWSC and WIN are listed on the Gre Tai Securities Exchange in Taiwan. The Company determines the fair market value of these investments based on the quoted prices from this exchange.
Non-Marketable Securities—Equity Method Investments
The Company has an approximate 12% interest in KoBrite at September 29, 2012. The Company accounts for its interest using the equity method and at September 29, 2012 the carrying value of the investment was $1.9 million. One of the Company’s directors, who is the chairman of KTC, is a member of the Board of Directors of Bright LED, one of the other principal investors of KoBrite.
During the period ended March 31, 2012 the Company acquired a 25% interest in Ikanos, a private company, for $0.7 million and subsequent to June 30, 2012 invested an additional $2.5 million, which increased the Company’s interest in Ikanos to 51%. For the period ended June 30, 2012 the Company recorded the results of operation of Ikanos on the equity method of accounting and commencing in the third quarter of 2012 the Company consolidated Ikanos.
Summarized financial information for KoBrite for the three and nine month periods ended June 30, 2012 and June 25, 2011 (KoBrite’s results are recorded one quarter in arrears) and Ikanos for the nine month period ended September 29, 2012 are as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 29,
2012
 
September 24,
2011
 
September 29,
2012
 
September 24,
2011
Revenue
$
1,599,000

 
$
2,883,000

 
$
4,517,000

 
$
5,172,000

Gross margin
(1,343,000
)
 
(52,000
)
 
(2,228,000
)
 
(451,000
)
Loss from operations
(1,751,000
)
 
(595,000
)
 
(4,034,000
)
 
(1,849,000
)
Net loss
$
(1,723,000
)
 
$
(423,000
)
 
$
(4,566,000
)
 
$
(1,737,000
)

During the nine month period ended September 29, 2012, the Company acquired a 5% interest in a private company for $1.0 million. If the private company achieves certain development milestones, the Company is obligated to acquire up to an additional 17.5% interest in the private company for a total of $2.0 million. In addition, for an eight month period after the achievement of all of the development milestones, the Company has the right to acquire an additional 10% interest in the private company for $2.0 million or the private company can require the Company to purchase an additional 25% interest for $2.0 million.
Amounts Due from and Due to Affiliates
Related party receivables from AWSC approximated $1.9 million and $1.1 million at September 29, 2012 and December 31, 2011, respectively. At September 29, 2012 and December 31, 2011 the Company also had $0.2 million and $0.2 million, respectively, due from other related parties.
The Company has entered into an agreement wherein it agreed to sell certain of its patents that it was no longer using to a party who would attempt to sublicense the patents. Under the terms of the agreement the amount the Company would receive for the sale of the patents was a percentage of any license fees, after expenses, from the sublicense. In the three and nine months ended September 29, 2012 and September 24, 2011 the Company recorded $0 million and $0.2 million of gains, respectively, from the sale of these patents.