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Concentrations of Risk
 12 Months Ended
Dec. 31, 2011
Concentrations of Risk

7.    Concentrations of Risk

Financial instruments that potentially subject the Company to concentration of credit risk other than marketable securities consist principally of trade accounts receivable. Trade receivables are primarily derived from sales to manufacturers of consumer electronic devices and wireless components or military applications. Ongoing credit evaluations of customers’ financial condition are performed and collateral, such as letters of credit, are generally not required. The following table depicts the customer’s trade receivable balance as a percentage of gross trade receivables as of the end of the year indicated:

 

     Percent of Gross
Accounts Receivable		  

Customer

    2011     2010  

Skyworks Solutions, Inc.

      28 %      24 % 

Advanced Wireless Semiconductor Co.

      *        14   

DRS Technologies

      *        11   

Raytheon Company

      14        11   

Sales to significant non-affiliated customers, for fiscal years 2011, 2010 and 2009, as a percentage of total revenues is shown in the table below. Note the caption “Military Customers in Total” in the table below includes Raytheon and DRS Technologies but excludes research and development contracts. (The symbol “*” indicates that sales to that customer were less than 10% of the Company’s total revenues.)

 

     Sales as a Percent
of Total Revenue		  
     Fiscal Year  

Customer

    2011     2010     2009  

Skyworks Solutions, Inc.

      28 %      25 %      20 % 

Advanced Wireless Semiconductor Company

      9        12        8   

DRS Technologies

      *        *        19   

Raytheon Company

      12        18        14   

Military Customers in Total

      30        33        45   

United States Government Funded Research and Development Contracts

      4        3        6   

Skyworks Solutions, Inc. (Skyworks Solutions) also uses the foundry services of Advanced Wireless Semiconductor Company (AWSC) to process the Company’s HBT transistor wafers on their behalf. The Company sells HBT transistor wafers directly to AWSC for eventual resale by AWSC to Skyworks Solutions. AWSC also purchases HBT transistor wafers from the Company for the processing and sale to other customers. The Company does not know exactly how many HBT transistor wafers sold to AWSC are for eventual delivery to Skyworks Solutions but believes the sales to Skyworks Solutions and AWSC should be aggregated for purposes of assessing the concentration of risk.