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SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES | 9 Months Ended
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Sep. 30, 2017
Risks and Uncertainties [Abstract] |
SIGNIFICANT CUSTOMERS AND INTERNATIONAL SALES | SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES: Segment Reporting The Company is organized and operates as one reportable segment, the design, development, manufacture and marketing of integrated circuits and related components for use primarily in the high-voltage power-conversion market. The Company’s chief operating decision maker, the Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. Customer Concentration The Company's top ten customers accounted for approximately 56% and 55% of net revenues in the three and nine months ended September 30, 2017, respectively, and approximately 60% and 61% of net revenues, respectively, in the corresponding periods of 2016. A significant portion of these revenues are attributable to sales of the Company’s products to distributors of electronic components. These distributors sell the Company’s products to a broad, diverse range of end users, including original equipment manufacturers (OEMs) and merchant power supply manufacturers. Sales to distributors for the three and nine months ended September 30, 2017 were $83.2 million and $249.3 million, respectively, and $75.6 million and $215.9 million, respectively, for the corresponding periods of 2016. Direct sales to OEMs and power-supply manufacturers accounted for the remainder. In each of the three and nine months ended September 30, 2017 and September 30, 2016, one customer, a distributor of the Company's products, accounted for more than 10% of the Company’s net revenues. A second customer, also a distributor, accounted for more than 10% of net revenues in the nine month period ended September 30, 2016. The following table discloses these customers’ percentage of revenues for the respective periods:
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
Customer | 2017 |  | 2016 |  | 2017 |  | 2016
Avnet | 15 | % |  | 18 | % |  | 16 | % |  | 20 | %
Powertech Distribution Ltd. | * |  |  | * |  |  | * |  |  | 11 | %
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* | Total customer percentage of revenues was less than 10%.
No other customers accounted for 10% or more of the Company’s net revenues in the periods presented. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash investments and trade receivables. The Company does not have any off-balance-sheet credit exposure related to its customers. As of September 30, 2017, and December 31, 2016, 66% and 70%, respectively, of accounts receivable were concentrated with the Company’s top 10 customers. The following customers represented 10% or more of accounts receivable:
Customer | September 30, 2017 |  | December 31, 2016
Avnet | 17 | % |  | 25 | %
ATM Electronic Corporation | * |  |  | 13 | %
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* | Total customer percentage of accounts receivable was less than 10%.
Geographic Net Revenues The Company markets its products globally through its sales personnel and a worldwide network of independent sales representatives and distributors. Geographic net revenues, based on “bill to” customer locations, for the three and nine months ended September 30, 2017, and September 30, 2016, were as follows:
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
(In thousands) | 2017 |  | 2016 |  | 2017 |  | 2016
United States of America | $ | 4,775 |  |  | $ | 4,153 |  |  | $ | 13,078 |  |  | $ | 11,372 |
Hong Kong/China | 59,328 |  |  | 53,324 |  |  | 170,720 |  |  | 146,021 |
Taiwan | 12,424 |  |  | 12,067 |  |  | 36,220 |  |  | 36,486 |
Korea | 9,343 |  |  | 11,363 |  |  | 28,527 |  |  | 30,923 |
Western Europe (excluding Germany) | 12,963 |  |  | 9,850 |  |  | 37,685 |  |  | 30,400 |
Japan | 4,853 |  |  | 5,208 |  |  | 15,338 |  |  | 15,552 |
Germany | 2,817 |  |  | 1,939 |  |  | 8,528 |  |  | 5,789 |
Other | 4,752 |  |  | 3,721 |  |  | 13,410 |  |  | 10,689 |
Total net revenues | $ | 111,255 |  |  | $ | 101,625 |  |  | $ | 323,506 |  |  | $ | 287,232 |

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- Definition The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=64851502&loc=d3e6327-108592 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 20 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13531-108611 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 20 -URI http://asc.fasb.org/extlink&oid=64851502&loc=d3e6404-108592 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=64851502&loc=d3e6442-108592 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 18 -URI http://asc.fasb.org/extlink&oid=64851502&loc=d3e6351-108592 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 + Details
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