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Segments and Major Customers
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Segments and Major Customers
Segments and Major Customers
For the three and nine months ended September 30, 2014 and 2013, MID, CRI and ESD were reportable segments as each of them met the quantitative thresholds for disclosure as a reportable segment. The results of the remaining operating segment were shown under “Other.”
The Company evaluates the performance of its segments based on segment operating income (loss), which is defined as revenue minus segment operating expenses. Segment operating expenses are comprised of direct operating expenses.
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 nine months ended September 30, 2013 segment data has been updated accordingly to conform with the 2014 segment operating income (loss) definition.
The tables below present reported segment operating income (loss) for the three and nine months ended September 30, 2014 and 2013, respectively.
 
For the Three Months Ended September 30, 2014
 
For the Nine Months Ended September 30, 2014
 
MID
 
CRI
 
ESD
 
Other
 
Total
 
MID
 
CRI
 
ESD
 
Other
 
Total
 
(In thousands)
 
(In thousands)
Revenues
$
52,495

 
$
11,255

 
$
—

 
$
5,962

 
$
69,712

 
$
172,314

 
$
36,929

 
$
—

 
$
15,275

 
$
224,518

Segment operating expenses
10,783

 
8,548

 
4,948

 
4,845

 
29,124

 
30,220

 
24,466

 
13,737

 
13,903

 
82,326

Segment operating income (loss)
$
41,712

 
$
2,707

 
$
(4,948
)
 
$
1,117

 
$
40,588

 
$
142,094

 
$
12,463

 
$
(13,737
)
 
$
1,372

 
$
142,192

Reconciling items
 

 
 
 
 
 
 

 
(26,120
)
 
 

 
 
 
 
 
 

 
(84,431
)
Operating income
 

 
 
 
 
 
 

 
$
14,468

 
 

 
 
 
 
 
 

 
$
57,761

Interest and other income (expense), net
 

 
 
 
 
 
 

 
(3,608
)
 
 

 
 
 
 
 
 

 
(22,187
)
Income before income taxes
 

 
 
 
 
 
 

 
$
10,860

 
 

 
 
 
 
 
 

 
$
35,574

 
For the Three Months Ended September 30, 2013
 
For the Nine Months Ended September 30, 2013
 
MID
 
CRI
 
ESD
 
Other
 
Total
 
MID
 
CRI
 
ESD
 
Other
 
Total
 
(In thousands)
 
(In thousands)
Revenues
$
66,103

 
$
5,134

 
$
—

 
$
2,057

 
$
73,294

 
$
175,233

 
$
19,931

 
$
—

 
$
2,915

 
$
198,079

Segment operating expenses
8,306

 
6,021

 
6,024

 
5,205

 
25,556

 
28,534

 
16,981

 
19,542

 
13,742

 
78,799

Segment operating income (loss)
$
57,797

 
$
(887
)
 
$
(6,024
)
 
$
(3,148
)
 
$
47,738

 
$
146,699

 
$
2,950

 
$
(19,542
)
 
$
(10,827
)
 
$
119,280

Reconciling items
 

 
 
 
 
 
 

 
(38,673
)
 
 

 
 
 
 
 
 

 
(103,030
)
Operating income
 

 
 
 
 
 
 

 
$
9,065

 
 

 
 
 
 
 
 

 
$
16,250

Interest and other income (expense), net
 

 
 
 
 
 
 

 
(8,486
)
 
 

 
 
 
 
 
 

 
(24,663
)
Income (loss) before income taxes
 

 
 
 
 
 
 

 
$
579

 
 

 
 
 
 
 
 

 
$
(8,413
)
The Company’s CODM does not review information regarding assets on an operating segment basis. Additionally, the Company does not record intersegment revenue or expense.
Accounts receivable from the Company's major customers representing 10% or more of total accounts receivable at September 30, 2014 and December 31, 2013, respectively, was as follows:
 
 
As of
Customer 
 
September 30, 2014
 
December 31, 2013
Customer 1 (Other reportable segment)
 
88%
 
74%

Revenue from the Company’s major customers representing 10% or more of total revenue for the three and nine months ended September 30, 2014 and 2013, respectively, was as follows:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
Customer 
 
2014
 
2013
 
2014
 
2013
Customer A (MID and CRI reportable segments)
 
22
%
 
31
%
 
20
%
 
34
%
Customer B (MID reportable segment)
 
17
%
 
16
%
 
16
%
 
*

Customer C (MID reportable segment)
 
14
%
 
10
%
 
13
%
 
*

_________________________________________
*    Customer accounted for less than 10% of total revenue in the period
Revenue from customers in the geographic regions based on the location of contracting parties is as follows:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
(In thousands)
 
2014
 
2013
 
2014
 
2013
South Korea
 
$
26,821

 
$
34,343

 
$
80,620

 
$
78,871

USA
 
24,950

 
15,880

 
81,522

 
56,555

Japan
 
6,497

 
15,943

 
23,140

 
42,812

Europe
 
4,238

 
4,098

 
17,077

 
11,658

Canada
 
1,754

 
2,280

 
5,365

 
5,928

Asia-Other
 
5,452

 
750

 
16,794

 
2,255

Total
 
$
69,712

 
$
73,294

 
$
224,518

 
$
198,079