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Segment Information and Foreign Operations
 9 Months Ended
Sep. 30, 2017
Segment Information and Foreign Operations  
Segment Information and Foreign Operations

Note 11. Segment Information and Foreign Operations

 

Segment Information

 

We operate in one segment for the design, development, manufacture and distribution of high-performance compound and single element semiconductor substrates and sale of raw materials integral to these substrates. In accordance with ASC topic 280, Segment Reporting, our chief operating decision-maker has been identified as our Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the Company. Since we operate in one segment, all financial segment and product line information can be found in the condensed consolidated financial statements.

 

Product Information

 

The following table represents revenue amounts (in thousands) by product type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

September 30, 

 

September 30, 

 

 

 

    

2017

    

2016

    

2017

    

2016

 

 

Product Type:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substrates

 

$

22,377

 

$

17,050

 

$

58,095

 

$

49,629

 

 

Raw Materials and Others

 

 

5,791

 

 

4,822

 

 

14,246

 

 

11,451

 

 

Total

 

$

28,168

 

$

21,872

 

$

72,341

 

$

61,080

 

 

 

Geographical Information

 

The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

September 30, 

 

September 30, 

 

 

 

    

2017

    

2016

    

2017

    

2016

 

 

China

 

$

7,203

 

$

4,766

 

$

17,949

 

$

12,041

 

 

Europe (primarily Germany)

 

 

6,192

 

 

4,995

 

 

17,638

 

 

13,946

 

 

Taiwan

 

 

5,986

 

 

2,995

 

 

13,499

 

 

11,779

 

 

Japan

 

 

3,694

 

 

3,499

 

 

9,696

 

 

8,096

 

 

Asia Pacific (excluding China, Taiwan and Japan)

 

 

2,934

 

 

3,239

 

 

7,650

 

 

8,391

 

 

North America (primarily the United States)

 

 

2,159

 

 

2,378

 

 

5,909

 

 

6,827

 

 

Total

 

$

28,168

 

$

21,872

 

$

72,341

 

$

61,080

 

 

 

Long-lived assets consist primarily of property, plant and equipment, and are attributed to the geographic location in which they are located. Long-lived assets, net of depreciation, by geographic region were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

 

September 30, 

 

December 31, 

 

 

    

2017

    

2016

 

Long-lived assets by geographic region, net of depreciation:

 

 

 

 

 

 

 

North America

 

$

1,542

 

$

318

 

China

 

 

40,713

 

 

27,487

 

 

 

$

42,255

 

$

27,805

 

 

Significant Customers

 

Two customers, Landmark and Osram Opto, represented 16% and 10% respectively, of our revenue for the three months ended September 30, 2017 while one customer,  IQE Group, represented 12% of our revenue for the three months ended September 30, 2016.  Our top five customers, although not the same five customers for each period, represented 39% and 38% of our revenue for the three months ended September 30, 2017 and 2016, respectively.

 

Two customers, Landmark and Osram Opto, represented 12% and 11%, respectively, of our revenue for the nine months ended September 30, 2017 while two customers, IQE Group and Landmark, represented 11% and 10%, respectively, of our revenue for the nine months ended September 30, 2016. Our top five customers, although not the same five customers for each period, represented 37% and 40% of our revenue for the nine months ended September 30, 2017 and 2016, respectively.

 

We perform ongoing credit evaluations of our customers’ financial condition, and limit the amount of credit extended when deemed necessary, but generally do not require collateral. One customer accounted for 13% of our accounts receivable balance as of September 30, 2017, while one customer accounted for 13% of our accounts receivable balance as of December 31, 2016.