Segment Information and Foreign Operations

3 Months Ended

Mar. 31, 2018

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
	March 31,
	2018		2017
Product Type:
Substrates	$	19,364	$	16,609
Raw Materials and Others		5,055		4,007
Total	$	24,419	$	20,616

Geographical Information

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

	Three Months Ended
	March 31,
	2018		2017
Geographical region:
China	$	7,183	$	4,422
Europe (primarily Germany)		6,393		5,598
Taiwan		5,049		3,318
Japan		2,455		3,140
North America (primarily the United States)		1,845		2,067
Asia Pacific (excluding China, Taiwan and Japan)		1,494		2,071
Total	$	24,419	$	20,616

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
	March 31,		December 31,
	2018		2017
Long-lived assets by geographic region, net of depreciation:
North America	$	1,237	$	1,410
China		57,526		45,120
	$	58,763	$	46,530

Significant Customers

Two customers, Landmark and Osram Opto, each represented 12% of our revenue for the three months ended March 31, 2018 while one customer, Osram Opto, represented 11% of our revenue for the three months ended March 31, 2017.  Our top five customers, although not the same five customers for each period, represented 38% and 35% of our revenue for the three months ended March 31, 2018 and 2017, 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 March 31, 2018, and the same customer accounted for 12% of our accounts receivable balance as of December 31, 2017.