Segment Information and Foreign Operations

3 Months Ended

Mar. 31, 2021

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
	March 31,
	2021		2020
Product Type:
Substrates	$	23,373	$	16,881
Raw Materials and Other		7,977		3,842
Total	$	31,350	$	20,723

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,
	2021		2020
Geographical region:
China	$	15,546	$	4,724
Taiwan		3,015		5,177
Japan		2,523		1,334
Asia Pacific (excluding China, Taiwan and Japan)		1,817		1,356
Europe (primarily Germany)		5,435		6,214
North America (primarily the United States)		3,014		1,918
Total	$	31,350	$	20,723

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
	March 31,		December 31,
	2021		2020
Long-lived assets by geographic region, net of depreciation:
North America	$	1,015	$	836
China		121,439		117,672
	$	122,454	$	118,508

Significant Customers

No customers represented 10% of our revenue for the three months ended March 31, 2021 while two customers, Landmark and Osram, represented 17% and 15%, respectively, of our revenue for the three months ended March 31, 2020. Our top five customers, although not the same five customers for each period, represented 26% and 49% of our revenue for the three months ended March 31, 2021 and 2020, 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 14% and 10% of

our accounts receivable balance as of March 31, 2021, and three customers accounted for 20%, 13% and 12% of our accounts receivable balance as of March 31, 2020.