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Segments and Major Customers
 6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Segments and Major Customers
Segments and Major Customers
For the three and six months ended June 30, 2013 and 2012, only MID and CTO were reportable segments as each of them met the quantitative thresholds for disclosure as a reportable segment. The results of the remaining other operating segments were combined and shown under “All Other”.
The Company evaluates the performance of its segments based on segment operating income (loss), which is defined as customer licensing income ("CLI") minus segment operating expenses. Segment operating expenses are comprised of direct operating expenses and the allocation of certain engineering expenses.
CLI is defined as total cash royalties received from its customers under its licensing agreements with them. In addition, customer licensing income includes other patent royalties received but not recognizable as revenue and proceeds from sale of intellectual property. Since the third quarter of 2011, the Company has received patent royalty payments from certain patent license agreements assumed in the acquisition of CRI which were treated as favorable contracts. Cash received from these acquired favorable contracts reduced the favorable contract intangible asset on the Company's balance sheet. The Company has combined these cash royalty payments as CLI to reflect the total amounts received from its customers.
Segment operating expenses do not include marketing, general and administrative expenses and the allocation of certain expenses managed at the corporate level, such as stock-based compensation, amortization, and certain bonus and acquisition costs. The “Reconciling Items” category includes these unallocated marketing, general and administrative expenses as well as corporate level expenses. The presentation of the three and six months ended June 30, 2012 segment data has been updated to conform with the 2013 segment operating income (loss) definition applied starting in the fourth quarter of 2012.
The tables below present reported segment operating income (loss) for the three and six months ended June 30, 2013 and 2012, respectively.
 
For the Three Months Ended June 30, 2013
 
For the Six Months Ended June 30, 2013
 
MID
 
CTO
 
All Other
 
Total
 
MID
 
CTO
 
All Other
 
Total
 
(In thousands)
 
(In thousands)
Revenues
$
49,456

 
$
—

 
$
8,463

 
$
57,919

 
$
109,131

 
$
—

 
$
15,654

 
$
124,785

Other patent royalties received
3,125

 
—

 
267

 
3,392

 
5,000

 
—

 
3,629

 
8,629

Customer licensing income
$
52,581

 
$
—

 
$
8,730

 
$
61,311

 
$
114,131

 
$
—

 
$
19,283

 
$
133,414

Segment operating expenses
9,347

 
7,074

 
12,215

 
28,636

 
18,272

 
14,932

 
22,289

 
55,493

Segment operating income (loss)
$
43,234

 
$
(7,074
)
 
$
(3,485
)
 
$
32,675

 
$
95,859

 
$
(14,932
)
 
$
(3,006
)
 
$
77,921

Reconciling items
 

 
 
 
 

 
(26,931
)
 
 

 
 
 
 

 
(70,736
)
Operating income
 

 
 
 
 

 
$
5,744

 
 

 
 
 
 

 
$
7,185

Interest and other income (expense), net
 

 
 
 
 

 
(8,845
)
 
 

 
 
 
 

 
(16,177
)
Loss before income taxes
 

 
 
 
 

 
$
(3,101
)
 
 

 
 
 
 

 
$
(8,992
)

 
For the Three Months Ended June 30, 2012
 
For the Six Months Ended June 30, 2012
 
MID
 
CTO
 
All Other
 
Total
 
MID
 
CTO
 
All Other
 
Total
 
(In thousands)
 
(In thousands)
Revenues
$
52,137

 
$
—

 
$
4,078

 
$
56,215

 
$
109,225

 
$
—

 
$
9,853

 
$
119,078

Other patent royalties received
—

 
—

 
1,201

 
1,201

 
—

 
—

 
3,615

 
3,615

Customer licensing income
$
52,137

 
$
—

 
$
5,279

 
$
57,416

 
$
109,225

 
$
—

 
$
13,468

 
$
122,693

Segment operating expenses
10,045

 
7,864

 
8,117

 
26,026

 
21,594

 
14,368

 
16,188

 
52,150

Segment operating income (loss)
$
42,092

 
$
(7,864
)
 
$
(2,838
)
 
$
31,390

 
$
87,631

 
$
(14,368
)
 
$
(2,720
)
 
$
70,543

Reconciling items
 

 
 
 
 

 
(53,139
)
 
 

 
 
 
 

 
(109,850
)
Operating loss
 

 
 
 
 

 
$
(21,749
)
 
 

 
 
 
 

 
$
(39,307
)
Interest and other income (expense), net
 

 
 
 
 

 
(6,630
)
 
 

 
 
 
 

 
(13,112
)
Loss before income taxes
 

 
 
 
 

 
$
(28,379
)
 
 

 
 
 
 

 
$
(52,419
)
The CODM does not review information regarding assets on an operating segment basis. Additionally, the Company does not record intersegment revenue or expense.
Revenue from the Company’s major customers representing 10% or more of total revenue for the three and six months ended June 30, 2013 and 2012, respectively, were as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
Customer 
 
2013
 
2012
 
2013
 
2012
Customer A
 
39
%
 
38
%
 
36
%
 
38
%
Customer B
 
*

 
*

 
*

 
10
%
_________________________________________
*    Customer accounted for less than 10% of total revenue in the period
Revenue from customers in the geographic regions based on the location of customers' headquarters is as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
(In thousands)
 
2013
 
2012
 
2013
 
2012
South Korea
 
$
22,502

 
$
21,468

 
$
44,527

 
$
44,715

USA
 
15,106

 
15,280

 
40,675

 
31,469

Japan
 
12,261

 
15,902

 
26,869

 
33,471

Europe
 
5,432

 
943

 
7,560

 
2,072

Canada
 
1,862

 
1,872

 
3,648

 
3,851

Asia-Other
 
756

 
750

 
1,506

 
3,500

Total
 
$
57,919

 
$
56,215

 
$
124,785

 
$
119,078