Segment Information and Foreign Operations

9 Months Ended

Sep. 30, 2012

Segment Information and Foreign Operations [Abstract]

Segment Information and Foreign Operations

Note 9. Segment Information and Foreign Operations

Segment Information

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

Product Information

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
Revenue by product type:
GaAs substrates	$	12,901	$	18,735	$	39,994	$	52,593
InP substrates		1,649		1,522		4,433		4,458
Ge substrates		2,007		2,954		7,078		8,645
Raw materials and other		4,251		5,094		17,942		17,206
Total	$	20,808	$	28,305	$	69,447	$	82,902

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
	2012		2011		2012		2011
Revenue by geographic region:
North America*	$	3,230	$	6,049	$	12,663	$	16,253
Europe		5,148		5,831		14,519		17,063
Japan		2,404		3,951		7,196		11,358
Taiwan		3,490		2,592		9,130		8,201
Asia Pacific		6,536		9,882		25,939		30,027
Total	$	20,808	$	28,305	$	69,447	$	82,902

*Primarily the United States

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 by geographic region were as follows (in thousands):

	As of
	September 30,		December 31,
	2012		2011
Long-lived assets by geographic region:
North America	$	350	$	484
China		35,851		33,798
	$	36,201	$	34,282

Significant Customers

One customer represented 14.3% of our revenue for the three months ended September 30, 2012 while one customer represented 21.3% of our revenue for the three months ended September 30, 2011.  One customer represented 15.6% of our revenue for the nine months ended September 30, 2012 while one customer represented 18.9% of our revenue for the nine months ended September 30, 2011. Our top five customers represented 37.3% and 39.4% of our revenue for the three months ended September 30, 2012 and 2011, respectively. Our top five customers represented 37.0% and 37.2% of our revenue for the nine months ended September 30, 2012 and 2011, 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 18.3% or more of our trade accounts receivable balance as of September 30, 2012. One customer accounted for 32.4% or more of our trade accounts receivable balance as of December 31, 2011.