Segments and Major Customers

For the three months ended March 31, 2019, 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 months ended March 31, 2019 and 2018, respectively.



	For the Three Months Ended March 31, 2019
	MID		RSD			Other			Total
	(In thousands)
Revenues	$	34,490	$	13,894		$	—		$	48,384
Segment operating expenses	23,979		14,221			2,483			40,683
Segment operating income (loss)	$	10,511	$	(327	)	$	(2,483	)	$	7,701
Reconciling items									(39,110		)
Operating loss									$	(31,409	)
Interest and other income (expense), net									5,142
Loss before income taxes									$	(26,267	)



	For the Three Months Ended March 31, 2018
	MID		RSD			Other			Total
	(In thousands)
Revenues	$	33,967	$	10,018		$	2,441		$	46,426
Segment operating expenses	22,949		12,786			5,630			41,365
Segment operating income (loss)	$	11,018	$	(2,768	)	$	(3,189	)	$	5,061
Reconciling items									(48,674		)
Operating loss									$	(43,613	)
Interest and other income (expense), net									4,695
Loss before income taxes									$	(38,918	)

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 March 31, 2019 and December 31, 2018, respectively, was as follows:



	As of
Customer	March 31, 2019		December 31, 2018
Customer 1 (MID reportable segment)	*		12	%
Customer 2 (MID reportable segment)	14	%	*
Customer 3 (MID reportable segment)	36	%	39	%

_________________________________________

* 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 months ended March 31, 2019 and 2018, respectively, was as follows:



	Three Months Ended
	March 31,
Customer	2019		2018
Customer A (MID reportable segment)	*		34	%
Customer B (MID reportable segment)	*		11	%
Customer C (MID reportable segment)	19	%	*
Customer D (MID reportable segment)	16	%	*

_________________________________________

* 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 was as follows:



	Three Months Ended
	March 31,
(In thousands)	2019		2018
Taiwan	$	2,101	$	16,110
South Korea	1,281		8,601
USA	34,239		11,221
Japan	2,619		4,034
Europe	3,375		3,866
Canada	1,058		1,410
Singapore	1,884		92
Asia-Other	1,827		1,092
Total	$	48,384	$	46,426