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Segment Information and Foreign Operations

9 Months Ended

Sep. 30, 2020

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. 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,
		2020			2019			2020			2019
Product Type:
Substrates		$	20,311		$	15,959		$	54,066		$	53,324
Raw Materials and Other			5,158			3,882			14,260			11,522
Total		$	25,469		$	19,841		$	68,326		$	64,846

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,
		2020			2019			2020			2019
Geographical region:
China		$	10,568		$	5,117		$	23,045		$	21,870
Taiwan			3,333			4,399			12,908			12,062
Japan			2,233			1,339			5,265			4,641
Asia Pacific (excluding China, Taiwan and Japan)			1,446			2,234			4,503			6,156
Europe (primarily Germany)			4,689			4,737			15,017			13,752
North America (primarily the United States)			3,200			2,015			7,588			6,365
Total		$	25,469		$	19,841		$	68,326		$	64,846

Long-lived assets consist primarily of property, plant and equipment and operating lease right-of-use assets, 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,
		2020			2019
Long-lived assets by geographic region, net of depreciation:
North America		$	857		$	1,069
China			110,140			99,272
		$	110,997		$	100,341

Significant Customers

No customer represented 10% of our revenue for the three months ended September 30, 2020 while one customer, Landmark, represented 16%, of our revenue for the three months ended September 30, 2019. Our top five customers, although not the same five customers for each period, represented 29% and 40% of our revenue for the three months ended September 30, 2020 and 2019, respectively.

Two customers, Landmark and Osram Opto, represented 11% and 10%, respectively, of our revenue for the nine months ended September 30, 2020 while two customers, Landmark and Haisi Optoelectronics, represented 14% and 10%, respectively, of our revenue for the nine months ended September 30, 2019. Our top five customers, although not the same five customers for each period, represented 33% and 41% of our revenue for the nine months ended September 30, 2020 and 2019, 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. Two customers accounted for 10% and 10% of our accounts receivable balance as of September 30, 2020, and three customers accounted for 14%, 13% and 12% of our accounts receivable as of December 31, 2019.