----

----

----

| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

----

----

|                                                          |   |                                   |
|---------------------------------------------------------------|--------|----------------------------------------|
| DELAWARE                                                      |   | 04-3457049                             |
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification Number) |

----

| Title of each class              |   | Name of each exchange on which registered           |
|----------------------------------|--------|-----------------------------------------------------|
| Common Stock, $0.00001 par value |   | The Nasdaq Stock Market, LLC (Nasdaq Global Market) |

----

----

----

|          |         |                                                                                           |         |   |
|---------------|--------------|------------------------------------------------------------------------------------------------|--------------|--------|
|          |    |                                                                                           |    | Page   |
| PART III |    |                                                                                           |    |   |
| Item 10.      |    | Directors, Executive Officers, and Corporate Governance                                        |    | 1      |
| Item 11.      |    | Executive Compensation                                                                         |    | 7      |
| Item 12.      |    | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |    | 11     |
| Item 13.      |    | Certain Relationships and Related Transactions and Director Independence                       |    | 13     |
| Item 14.      |    | Principal Accountant Fees and Services                                                         |    | 14     |
|          |         |                                                                                           |
| PART IV  |    |                                                                                           |    |   |
| Item 15.      |    | Exhibits and Financial Statement Schedules                                                     |    | 15     |
|          |    | Signatures                                                                                     |    |   |

----

| Item 10. | Directors, Executive Officers and Corporate Governance |
|----------|--------------------------------------------------------|

| Name                                |    | Age    |    | Term Expires |    | Position                                                                  |
|-------------------------------------|--------------|--------|--------------|-------------------|--------------|---------------------------------------------------------------------------|
| CLASS I DIRECTORS                   |    |   |    |              |    |                                                                      |
| Lawrence A. Kaufman, Ph.D.(1)(2)(3) |    | 72     |    | 2014              |    | Director                                                                  |
|                                |         |   |         |
| CLASS II DIRECTORS                  |    |   |    |              |    |                                                                      |
| Roger W. Blethen(1)(2)(3)           |    | 61     |    | 2015              |    | Lead Director                                                             |
| Yang Zhao, Ph.D.                    |    | 50     |    | 2015              |    | President, Chief Executive Officer and Chairman of the Board of Directors |
|                                |         |   |         |
| CLASS III DIRECTORS                 |    |   |    |              |    |                                                                      |
| Michael Tung(1)(2)                  |    | 57     |    | 2013              |    | Director                                                                  |
| Quan Zhou, Ph.D.                    |    | 55     |    | 2013              |    | Director                                                                  |

----

| (1)    | Member of audit committee.                     |
|--------|------------------------------------------------|
| (2)    | Member of nominating and governance committee. |
| (3)    | Member of compensation committee               |
|   |                                           |

----

----

|         | • |   | preside over board meetings in the absence of the chairman and lead “executive sessions” of the board (i.e., sessions without management present);                                      |
|--------------|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    | • |   | consult with other directors concerning corporate governance matters and identification of issues for board meeting discussions and set the board meeting agenda in consultation with the chairman; |
|    | • |   | advise the chief executive officer on organizational development, business strategy and corporate governance; and                                                                                   |
|    | • |   | advise the chief executive officer and chief financial officer on appropriate communications policies and procedures.                                                                               |

----

----

|         | • |   | each non-employee director receives a cash retainer in the amount of $20,000 per year;                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    | • |   | our lead director and chairpersons of our standing committees receive additional annual cash retainers, as follows: lead director, $20,000; audit committee chair, $10,000; compensation committee chair, $7,500; nominating committee chair, $5,000; and governance committee chair, $5,000;                                                                                                                                                                                                                                               |
|    | • |   | each incumbent non-employee director receives annually a restricted stock unit (“RSU”), vesting over three years, entitling him to receive, when vested, 15,000 shares of our common stock, and any newly elected non-employee director will receive an RSU for 25,000 shares of our common stock; and                                                                                                                                                                                                                          |
|    | • |   | our non-employee directors also receive cash fees for each meeting of the board of directors or of any committee of which they are members that they attend, as follows: all non-employee directors, $2,500 per board meeting; audit committee chair, $2,500 per audit committee meeting; compensation committee chair, $2,500 per compensation committee meeting; nominating and governance committee chare, $1,500 per nominating or governance committee meeting; and other members of our standing committees, $1,000 per committee meeting. |

|                   |   | Fees earnedor paidin  cash(1) |   |   | StockAwards(2) |   |   | Total  |   |
|------------------------|--------|----------------------------------------------|--------|--------|----------------|--------|--------|--------|--------|
| Roger W. Blethen(3)    |   | $                                            | 97,750 |   |           | $      | 57,000 |   |   | $ | 154,750 |   |
| Lawrence A. Kaufman(3) |   | $                                            | 70,500 |   |           | $      | 57,000 |   |   | $ | 127,500 |   |
| Michael Tung(3)        |   | $                                            | 77,000 |   |           | $      | 57,000 |   |   | $ | 134,000 |   |
| David Yang(3)(4)       |   | $                                            | 22,000 |   |           | $      | 0      |   |   | $ | 22,000 |   |
| Quan Zhou(3)           |   | $                                            | 30,500 |   |           | $      | 57,000 |   |   | $ | 87,500 |   |

----

| (1) | Amounts shown reflect fees earned in calendar year 2012 and exclude fees paid in 2012 for services provided in calendar year 2011, as follows: Mr. Blethen, $19,375; Mr. Kaufman, $14,750; Mr. Tung, $13,500; Mr. Yang, $11,750; Mr. Zhou, $9,500. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Amounts shown do not reflect compensation actually realized by our directors. The amounts shown represent the grant date fair value of the RSUs granted to each non-employee director.                                                             |
| (3) | On March 2, 2012, we granted to each non-employee director continuing in office a RSU for 15,000 shares of our common stock, vesting in equal installments on each of the first three anniversaries of the date of grant.                          |
| (4) | Mr. Yang resigned as a director on August 2, 2012, and his RSU was canceled as a result of his resignation.                                                                                                                                        |

----

| Name                          |   | Age |   | Position                                            |
|-------------------------------|--------|-----|--------|-----------------------------------------------------|
| Yang Zhao, Ph.D               |   | 50  |   | President, Chief Executive Officer                  |
| Patricia Niu                  |   | 46  |   | Chief Financial Officer                             |
| Paul M. Zavracky, Ph.D.  |   | 64  |   | President of North American and European Operations |

----

----

| Item 11. | Executive Compensation |
|----------|------------------------|

| Name and Principal Position                         | Year   |   Salary ($) |   Bonus ($) |   Stockawards ($) (1) |   Optionawards ($) (2) | All othercompensation($) (3) |   Total ($) |
|-----------------------------------------------------|--------|-------------------|------------------|----------------------------|-----------------------------|------------------------------|------------------|
| Yang Zhao, Ph.D                                     | 2012   | $            | 316,531          | (4)                        | $                      | 166,667                      | $                | - | $  | 432,236 | $  | 1,134 | $  | 916,568 |
| President and Chief Executive Officer               | 2011   |              | 266,239          | (4)                        |                        | -                            |             | 477,400 |   | 394,720 |   | 1,134 |   | 1,139,493 |
|                                                |   |              |             |                       |                        |                         |             |   |   |   |   |   |   |   |
|                                                |   |              |             |                       |                        |                         |             |   |   |   |   |   |   |   |
| Patricia Niu                                        | 2012   |              | 234,039          |                       |                        | 66,667                       |             | - |   | 270,148 |   | 1,108 |   | 571,962 |
| Chief Financial Officer                             | 2011   |              | 210,000          |                       |                        | 65,000                       |             | 111,300 |   | - |   | 1,010 |   | 387,310 |
|                                                |   |              |             |                       |                        |                         |             |   |   |   |   |   |   |   |
|                                                |   |              |             |                       |                        |                         |             |   |   |   |   |   |   |   |
| Paul M. Zavracky                                    | 2012   |              | 270,000          |                       |                        | 100,000                      |             | - |   | 216,118 |   | 1,134 |   | 587,252 |
| President of North American and European Operations | 2011   |              | 270,000          |                       |                        | 150,000                      |             | 190,800 |   | 197,360 |   | 1,134 |   | 809,294 |
|                                                |   |              |             |                       |                        |                         |             |   |   |   |   |   |   |   |

----

| (1) | Amounts shown do not reflect compensation actually realized by the named executive officer. The amounts shown represent the grant date fair value of restricted stock awards (“RSAs”) and RSUs, computed in accordance with ASC 718.                                                                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Amounts shown do not reflect compensation actually realized by the named executive officer. The amounts shown represent the grant date fair value of stock options granted to the named executive officer, computed in accordance with ASC 718. The assumptions used to calculate the fair value of the stock options granted in 2012 and 2011 are described in Note 13 to the consolidated financial statements included in this Report. |
| (3) | Consists of premium paid on behalf of the named executive officer on group life, short-term and long-term disability insurance policy.                                                                                                                                                                                                                                                                                                         |
| (4) | A portion of Dr. Zhao’s salary is paid in renminbi (“RMB”).                                                                                                                                                                                                                                                                                                                                                                  |

----

|             | Option Awards                                         | Stock Awards          |
|------------------|-------------------------------------------------------|-----------------------|
|             | Number of securitiesunderlying unexercised options(1) | Optionexercise        | Optionexpiration | Number of Sharesor Units of Stock That | Market Value ofShares or Units ofStock That Have |
| Name             | (#) Exercisable                                       | (#) Unexercisable (1) | (#) Unearned | price ($) | date | Have Not Vested (#) | Not Vested ($) (2) |
| Yang Zhao        | 46,250                                                | (3)                   | - |   | - |   | $ 0.30 | 01/01/2015 |   |   |   |
|             | 250,000                                               | (4)                   | - |   | - |   | 11.70 | 10/03/2017 |   |   |   |
|             | -                                                     |                  | - |   | 250,000 | (4) | 11.70 | 10/03/2017 |   |   |   |
|             | 100,000                                               | (5)                   | - |   | - |   | 2.53 | 08/08/2018 |   |   |   |
|             | 50,000                                                | (6)                   | 150,000 | (6) |   |   | 3.41 | 04/04/2021 | 52,500 | (7) | $ 179,025 |
|             |                                                  |                  | 280,000 | (8) |   |   | 2.15 | 05/20/2022 |   |   |   |
|             |                                                  |                  |   |   |   |   |   |   |   |   |   |
| Patricia Niu     | 10,000                                                | (9)                   | - |   | - |   | 0.30 | 09/08/2014 |   |   |   |
|             | 25,000                                                | (10)                  | - |   | - |   | 1.54 | 11/09/2016 |   |   |   |
|             | 50,000                                                | (11)                  | - |   | - |   | 7.64 | 08/22/2017 |   |   |   |
|             | 75,000                                                | (12)                  | - |   | - |   | 2.53 | 08/08/2018 |   |   |   |
|             | 12,500                                                | (13)                  | 12,500 | (13) | - |   | 3.42 | 03/12/2020 |   |   |   |
|             |                                                  |                  |   |   |   |   |   | 06/29/2021 | 26,250 | (14) | 83,475 |
|             |                                                  |                  | 175,000 | (8) |   |   | 2.15 | 05/20/2022 |   |   |   |
|             |                                                  |                  |   |   |   |   |   |   |   |   |   |
| Paul M. Zavracky | 30,000                                                | (15) (16)             | - |   | - |   | 0.30 | 02/12/2014 |   |   |   |
|             | 45,000                                                | (15) (17)             | - |   | - |   | 0.30 | 04/28/2015 |   |   |   |
|             | 12,000                                                | (15) (18)             | - |   | - |   | 6.40 | 03/12/2018 |   |   |   |
|             | 12,000                                                | (15) (19)             | - |   | - |   | 1.75 | 03/12/2019 |   |   |   |
|             | 8,000                                                 | (15) (20)             | 4,000 | (15) (20) | - |   | 3.35 | 05/12/2020 |   |   |   |
|             | 25,000                                                | (21)                  | 75,000 | (21) | - |   | 3.41 | 04/04/2021 |   |   |   |
|             |                                                  |                  |   |   |   |   |   | 06/29/2021 | 45,000 | (14) | 143,100 |
|             |                                                  |                  | 140,000 | (8) |   |   |   | 05/20/2022 |   |   |   |

----

| (1)  | Except as otherwise set forth below, all equity awards disclosed in this table vest as to 25% of the maximum number of shares issuable pursuant to such award on the first anniversary of the vesting start date, as set by our board of directors, and vest as to an additional 25% of the shares on each subsequent anniversary of the vesting start date, which generally is the date of grant, such that each equity award will be fully vested on the fourth anniversary of the vesting start date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | The market value was calculated based on the closing price per share of our common stock on the date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (3)  | Granted on February 10, 2005 with a vesting start date of January 1, 2005 and fully vested on February 10, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (4)  | An option for 250,000 shares was granted pursuant to our 2000 Omnibus Stock Plan and vests in equal installments over four years. An additional option for 250,000 shares was granted pursuant to our 2007 Stock Incentive Plan and vests according to the following performance-based criteria: (i) 62,500 shares vest on the day after any period of 12 rolling months in which we recognize at least $10.5 million in earnings before taxes, excluding amortization of intangible assets associated with future acquisitions, which we refer to in this footnote as “adjusted earnings;” (ii) an additional 62,500 shares vest on the day after any period of 12 rolling months in which we recognize at least $13.1 million in adjusted earnings; (iii) an additional 62,500 shares vest on the day after any period of 12 rolling months in which we recognize at least $15.8 million in adjusted earnings; and (iv) an additional 62,500 shares vest on the day after any period of 12 rolling months in which we recognize at least $18.4 million in adjusted earnings. Irrespective of the above terms and conditions, the performance based options will vest fully on the eighth anniversary of the grant date of October 3, 2007. |
| (5)  | Granted on August 8, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (6)  | Granted on April 4, 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (7)  | Restricted stock awards granted on April 4, 2011 with 87,500 shares vesting on the first anniversary of the date of grant and 17,500 shares vesting on each of the second, third and fourth anniversaries of the grant date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (8)  | Granted on May 20, 2012.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (9)  | Granted on October 15, 2004 with a vesting start date of September 8, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (10) | Granted on November 9, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (11) | Granted on August 22, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (12) | Granted on August 8, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (13) | Granted on March 12, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

----

| (14) | RSUs granted on June 29, 2011 vest in four equal installments on each of the first, second, third and fourth anniversaries of the grant date. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| (15) | Stock options granted to Dr. Zavracky when he served as a director of the Company.                                                            |
| (16) | Granted on February 12, 2004 with a vesting start date of October 1, 2003.                                                                    |
| (17) | Granted on April 28, 2005.                                                                                                                    |
| (18) | Granted on March 12, 2008 with vesting in three equal installments on each of the first, second and third anniversaries of the grant date.    |
| (19) | Granted on March 12, 2009 with vesting in three equal installments on each of the first, second and third anniversaries of the grant date.    |
| (20) | Granted on May 12, 2010 with vesting in three equal installments on each of the first, second and third anniversaries of the grant date.      |
| (21) | Granted on April 4, 2011.                                                                                                                     |

----

| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
|----------|------------------------------------------------------------------------------------------------|

|         | • |   | Each beneficial owner of 5% or more of the outstanding shares of our common stock; |
|--------------|---------|--------|------------------------------------------------------------------------------------|
|    | • |   | Each of our named executive officers;                                              |
|    | • |   | Each of our directors; and                                                         |
|    | • |   | all of our executive officers and directors as a group.                            |

|                                 |                                                                | Beneficial Ownership                                                                                   |
|--------------------------------------|---------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|
| Name and Address of Beneficial Owner | Shares                                                              | Right to                                                                                               |   | % of |
| 5% Stockholders                      | Outstanding                                                         | Acquire                                                                                                | Total | Outstanding |
|                                 | Entities Affiliated with IDG-Accel China Growth Fund II L.P.        | 4,725,223                                                                                              |   |                         - |             4,725,223 | 19.5% |
|                                 | c/o IDG Capital Management Ltd. (1)                                 |                                                                                                   |   |   |   |   |
|                                 |      Unit 1509, The Center                 |                                                                                                   |   |   |   |   |
|                                 |      99 Queen’s Road                 |                                                                                                   |   |   |   |   |
|                                 |      Central, Hong Kong                    |                                                                                                   |   |   |   |   |
|                                 | Still River Fund II,LP  (2)                               |            2,778,107                            |   |                         - |             2,778,107 | 11.4% |
|                                 |      1601 Trapelo Road                     |                                                                                                   |   |   |   |   |
|                                 |      Waltham, Massachusetts 02451          |                                                                                                   |   |   |   |   |
|                                 | Entities Affiliated with InveStar Capital, Inc.(3)                  |            2,357,620                            |   |                           - |             2,357,620 | 9.7% |
|                                 |      333 W. San Carlos Street              |                                                                                                   |   |   |   |   |
|                                 |      San Jose, California 95110            |                                                                                                   |   |   |   |   |
| Named Executive Officers             |                                                                |                                                                                                   |   |   |   |
|                                 | Yang Zhao, Ph.D                                                     |               485,654            |  (4) |                566,250 |             1,051,904 | 4.2% |
|                                 | Patricia Niu                                                        |                 45,971 |   |                222,500 |                268,471 | 1.1% |
|                                 | Paul M. Zavracky                                                    |                 37,422 |   |                196,000 |                233,422 | 1.0% |
| Directors                            |                                                                |                                                                                                   |   |   |   |   |
|                                 | Quan Zhou                                                           |            4,738,556                            |  (1) |                           - |             4,738,556 | 19.5% |
|                                 | Michael Tung                                                        |            2,367,620                            |  (3) |                  36,000 |             2,403,620 | 9.9% |
|                                 | Roger W. Blethen                                                    |                 10,000 |   |                111,000 |                121,000 | * |
|                                 | Lawrence A. Kaufman                                                 |                 10,000 |   |                  32,000 |                  42,000 | * |
|                                 | All current directors and executive officers as a group (7 persons) |            7,695,223                            |   |             1,163,750 |             8,858,973 | 34.8% |

----

| *   | Less than 1.0%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Information based upon a Form 13D filed with the Securities and Exchange Commission on November 20, 2012. Includes 4,146,394 shares of which the record owner is IDG-Accel China Growth Fund II L.P., 339,108 shares of which the record owner is IDG-Accel China Investors II L.P., 150,000 shares of which the record owner is IDG Technology Venture Investments, LP., 71,393 shares of which the record owner is IDG Technology Venture Investments, LLC, and 18,328 shares of which the record owner is IDG Technology Venture Investment III, L.P.  Chi Sing Ho and Quan Zhou Ph.D. are directors and executive officers of IDG-Accel China Growth Fund GP II Associates Ltd., which is the ultimate general partner of both IDG-Accel China Growth Fund II L.P. and IDG-Accel China Investors II L.P. Mr. Ho and Dr. Zhou are managing members of IDG Technology Venture Investment III, LLC, which is the general partner of IDG Technology Venture Investment III, L.P. Mr. Ho and Dr. Zhou are managing members of IDG Technology Venture Investments, LLC, which is the general partner of IDG Technology Venture Investments, LP. By virtue of acting together to direct the management and operations of the ultimate general partners of each of the above record owners, Mr. Ho may be deemed to have shared voting and dispositive power with respect to these shares with Dr. Zhou. Each of Mr. Ho and Dr. Zhou disclaims beneficial ownership of these shares, except to the extent of his pecuniary interest therein, if any. |

----

| (2) | Information based upon a Form 5 filed with the Securities and Exchange Commission on May 11, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Includes 1,285,551 shares held by InveStar Semiconductor Development Fund, Inc., and 1,072,069 shares held by InveStar Semiconductor Development Fund, Inc. (II) LCD, together the “InveStar Funds.” InveStar Capital, Inc., a Cayman Islands limited liability company, acts as investment manager of InveStar Funds and exercises investment control over the shares held by such entities. Michael Tung is the chief financial officer and managing partner of VentureStar-InveStar Capital Inc. and Mr. Tung may be deemed to beneficially own the shares held by InveStar Funds and each disclaims beneficial ownership of such shares except to the extent of any pecuniary interest therein. TSMC International Investment Ltd. holds a 97% interest in the InveStar Funds. |
| (4) | Includes 18,596 shares of common stock held by Yang Zhao, as Trustee of the Yang Zhao Children’s Grantor Retained Annuity. Also includes 104,218 shares of restricted stock award granted on April 4, 2011, of which 69,218 shares are vested and 17,500 shares shall vest on each of the third and fourth anniversaries of the date of grant.                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

|                                                          |    | Number of shares to beissued upon exercise ofoutstanding options,warrants and rights |    | Weighted-averageexercise price ofoutstanding options,warrants and rights |    | Number of sharesremaining available forfuture issuance underequity compensationplans (excluding sharesreflected in column (a)) |      |
|---------------------------------------------------------------|--------------|----------------------------------------------------------------------------------------------------------|--------------|-------------------------------------------------------------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
| Plan Category                                                 |    | (a)                                                                                                      |    | (b)  (1)                                                            |    | (c)   (2)                                                                                                                                     |      |
| Equity Compensation Plans Approved by Security Holders        |    | 3,038,942                                                                                                |    | $                                                                             | 4.66         |                                                                                                                                                    | 1,626,675 | (3) |
| Equity Compensation Plans Not Approved by Security Holders(4) |    | 289,976                                                                                                  |    |                                                                          | 3.40         |                                                                                                                                                    | 2,196,962 |   |
| Total                                                         |    | 3,328,918                                                                                                |    | $                                                                             | 4.59         |                                                                                                                                                    | 3,823,637 |   |

----

| (1) | Excludes 693,417 shares outstanding as of December 31, 2012 in the form of restricted stock awards and restricted stock units, which do not require the payment of any consideration by the recipients.                                                                                                                                                                                                                                                                                                               |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Gives effect to the issuance of restricted stock awards and restricted stock units outstanding at December 31, 2012.                                                                                                                                                                                                                                                                                                                                                                                                  |
| (3) | Excludes 300,000 additional shares which may become issuable under our Amended and Restated 2007 Stock Incentive Plan on or after November 9, 2012 pursuant to evergreen provisions approved by our stockholders, which provide that, on each of the first five anniversaries of the adoption of the 2007 Incentive Plan the shares available for the future grant of awards under the plan shall be increased by the lesser of (i) 300,000 shares and (ii) an amount determined by the board of directors. |
| (4) | Our Amended and Restated 2009 Nonqualified Inducement Stock Option Plan has not been submitted for approval by our stockholders.                                                                                                                                                                                                                                                                                                                                                                                      |

----

| Item 13. | Certain Relationships and Related Transactions and Director Independence |
|----------|--------------------------------------------------------------------------|

|   | • |   | we have been or are to be a participant;                                                                                                                                                                                                            |
|--------|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • |   | the amount involved exceeds $120,000; and                                                                                                                                                                                                           |
|   | • |   | any of our directors, executive officers or holders of more than 5% of our capital stock, or any immediate family member of or person sharing the household with any of these individuals, had or will have a direct or indirect material interest. |

----

| Item 14. | Principal Accountant Fees and Services |
|----------|----------------------------------------|

|               |   | Fees   |    |
|--------------------|--------|--------|---------|
| Fee category  |   | 2012   |    |   | 2011 |   |
| Audit fees         |   | $      | 575,414 |   |   | $ | 563,677 |   |
| Audit-related fees |   |   | 0       |   |   |   | 5,000 |   |
| Tax fees           |   |   | 20,000  |   |   |   | 78,500 |   |
| Total fees         |   | $      | 595,414 |   |   | $ | 647,244 |   |

----

| Item 15. | Exhibits, Financial Statement Schedules, and Reports on Form 8-K |
|----------|------------------------------------------------------------------|

|            |                                                                                                                                                                                                       |                    | Incorporated by Reference |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|---------------------------|
| Exhibit No | Description                                                                                                                                                                                                | FiledwithThisForm10-K/A | Form                      | Filing Date | Exhibit No. |
| 3.1             | Amended By-Laws of the Corporation                                                                                                                                                                         |                    | 8-K                       | December 19, 2007 | 3.2 |
| 3.2        | Second Amended and Restated Certificate of Incorporation of the Corporation                                                                                                                                |                    | 8-K                       | December 19, 2007 | 3.1 |
| 3.3             | Certificate of Amendment to Certificate of Incorporation of the Corporation                                                                                                                                |                    | 10-K                      | March 22, 2013 | 3.2 |
| 31.1            | Certification of the Chief Executive Officer required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X                       |                      |   |   |
| 31.2            | Certification of the Chief Financial Officer required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X                       |                      |   |   |
| 32.1            | Certification of the Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                             | X                       |                      |   |   |
| 32.2            | Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                             | X                       |                      |   |   |

----

|         |   |                    |
|--------------|--------|-------------------------|
| MEMSIC, INC. |
| (Registrant) |
|         |   |
| By:          |   | /s/ Yang Zhao           |
|         |   | Yang Zhao               |
|         |   | Chief Executive Officer |
|         |   | and President           |