Segment Information and Foreign Operations

6 Months Ended

Jun. 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				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Product Type:
Substrates	$	19,109	$	16,727	$	35,718	$	32,579
Raw Materials and Others		4,448		3,768		8,455		6,629
Total	$	23,557	$	20,495	$	44,173	$	39,208

Geographical Information

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Europe (primarily Germany)	$	5,848	$	4,573	$	11,446	$	8,951
China		6,324		4,183		10,746		7,275
Taiwan		4,195		4,649		7,513		8,784
Japan		2,862		2,695		6,002		4,597
Asia Pacific (excluding China, Taiwan and Japan)		2,645		2,402		4,716		5,152
North America (primarily the United States)		1,683		1,993		3,750		4,449
Total	$	23,557	$	20,495	$	44,173	$	39,208

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
	June 30,		December 31,
	2017		2016
Long-lived assets by geographic region, net of depreciation:
North America	$	958	$	318
China		26,987		27,487
	$	27,945	$	27,805

Significant Customers

Two customers, Osram Opto and Landmark, represented 12% and 11% respectively, of our revenue for the three months ended June 30, 2017 while two customers,  Landmark and IQE Group, represented 14% and 10% of our revenue for the three months ended June 30, 2016.  Our top five customers, although not the same five customers for each period, represented 37% and 42% of our revenue for the three months ended June 30, 2017 and 2016, respectively.

Two customers, Osram Opto and Landmark, represented 11% and 10%, respectively, of our revenue for the six months ended June 30, 2017 while two customers, Landmark and IQE Group, each represented 11% of our revenue for the six months ended June 30, 2016. Our top five customers, although not the same five customers for each period, represented 36% and 42% of our revenue for the six months ended June 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 12% of our accounts receivable balance as of June 30, 2017, while one customer accounted for 13% of our accounts receivable balance as of December 31, 2016.