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Segments and Major Customers
 6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segments and Major Customers
Segments and Major Customers
For the three and six months ended June 30, 2017, 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 six months ended June 30, 2017 and 2016, respectively.
 
For the Three Months Ended June 30, 2017
 
For the Six Months Ended June 30, 2017
 
MID
 
RSD
 
Other
 
Total
 
MID
 
RSD
 
Other
 
Total
 
(In thousands)
 
(In thousands)
Revenues
$
67,402

 
$
23,366

 
$
3,952

 
$
94,720

 
$
137,997

 
$
46,571

 
$
7,503

 
$
192,071

Segment operating expenses
23,801

 
12,214

 
8,654

 
44,669

 
44,056

 
24,613

 
17,389

 
86,058

Segment operating income (loss)
$
43,601

 
$
11,152

 
$
(4,702
)
 
$
50,051

 
$
93,941

 
$
21,958

 
$
(9,886
)
 
$
106,013

Reconciling items
 

 
 
 
 

 
(41,807
)
 
 

 
 
 
 

 
(84,335
)
Operating income
 

 
 
 
 

 
$
8,244

 
 

 
 
 
 

 
$
21,678

Interest and other income (expense), net
 

 
 
 
 

 
(3,132
)
 
 

 
 
 
 

 
(6,184
)
Income before income taxes
 

 
 
 
 

 
$
5,112

 
 

 
 
 
 

 
$
15,494

 
For the Three Months Ended June 30, 2016
 
For the Six Months Ended June 30, 2016
 
MID
 
RSD
 
Other
 
Total
 
MID
 
RSD
 
Other
 
Total
 
(In thousands)
 
(In thousands)
Revenues
$
54,467

 
$
16,407

 
$
5,627

 
$
76,501

 
$
108,012

 
$
30,508

 
$
10,663

 
$
149,183

Segment operating expenses
13,229

 
13,105

 
7,092

 
33,426

 
25,272

 
25,015

 
14,218

 
64,505

Segment operating income (loss)
$
41,238

 
$
3,302

 
$
(1,465
)
 
$
43,075

 
$
82,740

 
$
5,493

 
$
(3,555
)
 
$
84,678

Reconciling items
 

 
 
 
 

 
(31,067
)
 
 

 
 
 
 

 
(63,376
)
Operating income
 

 
 
 
 

 
$
12,008

 
 

 
 
 
 

 
$
21,302

Interest and other income (expense), net
 

 
 
 
 

 
(2,025
)
 
 

 
 
 
 

 
(4,924
)
Income before income taxes
 

 
 
 
 

 
$
9,983

 
 

 
 
 
 

 
$
16,378

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 June 30, 2017 and December 31, 2016, respectively, was as follows:
 
 
As of
Customer 
 
June 30, 2017
 
December 31, 2016
Customer 1 (RSD reportable segment)
 
*

 
17
%
Customer 2 (Other segment)
 
*

 
12
%
Customer 3 (MID reportable segment)
 
20
%
 
13
%
Customer 4 (MID reportable segment)
 
25
%
 
*

_________________________________________
*    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 six months ended June 30, 2017 and 2016, respectively, was as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
Customer 
 
2017
 
2016
 
2017
 
2016
Customer A (MID and RSD reportable segments)
 
17
%
 
20
%
 
17
%
 
21
%
Customer B (MID reportable segment)
 
13
%
 
21
%
 
13
%
 
21
%
Customer C (MID reportable segment)
 
14
%
 
13
%
 
14
%
 
13
%


Revenue from customers in the geographic regions based on the location of contracting parties was as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
(In thousands)
 
2017
 
2016
 
2017
 
2016
South Korea
 
$
28,291

 
$
31,632

 
$
57,260

 
$
63,086

USA
 
41,155

 
26,532

 
79,593

 
51,776

Japan
 
7,057

 
5,911

 
13,575

 
10,898

Europe
 
4,243

 
4,377

 
8,681

 
8,189

Canada
 
1,352

 
1,168

 
2,420

 
1,382

Singapore
 
4,889

 
4,526

 
12,636

 
9,145

Asia-Other
 
7,733

 
2,355

 
17,906

 
4,707

Total
 
$
94,720

 
$
76,501

 
$
192,071

 
$
149,183