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Segments and Major Customers
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Segments and Major Customers
Segments and Major Customers
For the three and nine months ended September 30, 2016, MID and RSD were reportable segments as each of them met the quantitative thresholds for disclosure as a reportable segment. The results of the remaining operating segments 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 sales, 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 sales, general and administrative expenses as well as corporate level expenses.
The tables below present reported segment operating income (loss) for the three and nine months ended September 30, 2016 and 2015, respectively.
 
For the Three Months Ended September 30, 2016
 
For the Nine Months Ended September 30, 2016
 
MID
 
RSD
 
Other
 
Total
 
MID
 
RSD
 
Other
 
Total
 
(In thousands)
 
(In thousands)
Revenues
$
63,142

 
$
22,532

 
$
4,181

 
$
89,855

 
$
171,154

 
$
53,040

 
$
14,844

 
$
239,038

Segment operating expenses
20,060

 
12,493

 
6,840

 
39,393

 
44,797

 
37,507

 
21,594

 
103,898

Segment operating income (loss)
$
43,082

 
$
10,039

 
$
(2,659
)
 
$
50,462

 
$
126,357

 
$
15,533

 
$
(6,750
)
 
$
135,140

Reconciling items
 

 
 
 
 

 
(38,646
)
 
 

 
 
 
 

 
(102,022
)
Operating income
 

 
 
 
 

 
$
11,816

 
 

 
 
 
 

 
$
33,118

Interest and other income (expense), net
 

 
 
 
 

 
(3,051
)
 
 

 
 
 
 

 
(7,975
)
Income before income taxes
 

 
 
 
 

 
$
8,765

 
 

 
 
 
 

 
$
25,143

 
For the Three Months Ended September 30, 2015
 
For the Nine Months Ended September 30, 2015
 
MID
 
RSD
 
Other
 
Total
 
MID
 
RSD
 
Other
 
Total
 
(In thousands)
 
(In thousands)
Revenues
$
55,383

 
$
12,246

 
$
6,150

 
$
73,779

 
$
164,696

 
$
36,849

 
$
17,960

 
$
219,505

Segment operating expenses
11,734

 
6,653

 
9,276

 
27,663

 
36,055

 
21,317

 
25,306

 
82,678

Segment operating income (loss)
$
43,649

 
$
5,593

 
$
(3,126
)
 
$
46,116

 
$
128,641

 
$
15,532

 
$
(7,346
)
 
$
136,827

Reconciling items
 

 
 
 
 

 
(28,476
)
 
 

 
 
 
 

 
(85,741
)
Operating income
 

 
 
 
 

 
$
17,640

 
 

 
 
 
 

 
$
51,086

Interest and other income (expense), net
 

 
 
 
 

 
(2,578
)
 
 

 
 
 
 

 
(8,417
)
Income before income taxes
 

 
 
 
 

 
$
15,062

 
 

 
 
 
 

 
$
42,669

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, 2016 and December 31, 2015, respectively, was as follows:
 
 
As of
Customer 
 
September 30, 2016
 
December 31, 2015
Customer 1 (MID and RSD reportable segments)
 
16
%
 
21
%
Customer 2 (RSD reportable segment)
 
11
%
 
*

Customer 3 (MID reportable segment)
 
*

 
28
%
Customer 4 (Other segment)
 
*

 
27
%
Customer 5 (MID reportable segment)
 
12
%
 
16
%
_________________________________________
*    Customer accounted for less than 10% of total accounts receivable in the period
Revenue from the Company’s major customers representing 10% or more of total revenue for the three and nine months ended September 30, 2016 and 2015, respectively, was as follows:
 
 
Three Months Ended
Nine Months Ended
 
 
September 30,
September 30,
Customer 
 
2016
 
2015
2016
 
2015
Customer A (MID and RSD reportable segments)
 
17
%
 
20
%
20
%
 
21
%
Customer B (MID reportable segment)
 
19
%
 
21
%
20
%
 
18
%
Customer C (MID reportable segment)
 
13
%
 
13
%
13
%
 
13
%


Revenue from customers in the geographic regions based on the location of contracting parties was as follows:
 
 
Three Months Ended
Nine Months Ended
 
 
September 30,
September 30,
(In thousands)
 
2016
 
2015
2016
 
2015
South Korea
 
$
32,519

 
$
30,821

$
95,604

 
$
84,463

USA
 
32,951

 
33,146

84,835

 
90,530

Japan
 
9,551

 
3,460

20,449

 
19,866

Europe
 
4,271

 
1,571

12,362

 
8,287

Canada
 
1,162

 
6

2,544

 
207

Singapore
 
4,429

 
3,222

13,574

 
11,042

Asia-Other
 
4,972

 
1,553

9,670

 
5,110

Total
 
$
89,855

 
$
73,779

$
239,038

 
$
219,505