Segment Information and Foreign Operations

3 Months Ended

Mar. 31, 2016

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 semiconductor substrates and sale of materials. 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.

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

	Three Months Ended
	March 31,
	2016		2015
Europe (primarily Germany)	$	4,378	$	4,943
Taiwan		4,135		3,109
China		3,092		3,297
Asia Pacific (excluding China, Taiwan and Japan)		2,750		2,759
Japan		1,902		2,484
North America (primarily the United States)		2,456		3,472
Total	$	18,713	$	20,064

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
	March 31,		December 31,
	2016		2015
Long-lived assets by geographic region:
North America	$	695	$	542
China		30,446		30,880
	$	31,141	$	31,422

Significant Customers

One customer, IQE Group, represented more than 12% of our revenue for the three months ended March 31, 2016 while no customer represented more than 10% of our revenue for the three months ended March 31, 2015. Our top five customers, although not the same five customers for each period, represented 41%and 35% of our revenue for the three months ended March 31, 2016 and 2015, 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 over 19% and 22% of our accounts receivable balance as of March 31, 2016 and December 31, 2015.