Segment Information and Foreign Operations

6 Months Ended

Jun. 30, 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				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Product Type:
Substrates	$	24,905	$	16,874	$	48,278	$	33,755
Raw Materials and Other		8,830		5,260		16,807		9,102
Total	$	33,735	$	22,134	$	65,085	$	42,857

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,
	2021		2020		2021		2020
Geographical region:
China	$	15,546	$	7,753	$	31,092	$	12,477
Taiwan		4,996		4,398		8,011		9,575
Japan		2,635		1,698		5,158		3,032
Asia Pacific (excluding China, Taiwan and Japan)		1,396		1,701		3,213		3,057
Europe (primarily Germany)		6,411		4,114		11,846		10,328
North America (primarily the United States)		2,751		2,470		5,765		4,388
Total	$	33,735	$	22,134	$	65,085	$	42,857

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
	June 30,		December 31,
	2021		2020
Long-lived assets by geographic region, net of depreciation:
North America	$	1,306	$	836
China		128,439		117,672
	$	129,745	$	118,508

Significant Customers

No customers represented 10% of our revenue for the three months ended June 30, 2021 while one customer, Landmark, represented 10% of our revenue for the three months ended June 30, 2020. Our top five customers, although not the same five customers for each period, represented 31% and 30% of our revenue for the three months ended June 30, 2021 and 2020, respectively.

No customers represented 10% of our revenue for the six months ended June 30, 2021 while two customers, Landmark and Osram Opto, represented 13% and 11%, respectively, of our revenue for the six months ended June 30,

2020.  Our top five customers, although not the same five customers for each period, represented 27% and 39% of our revenue for the six months ended June 30, 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. One customer accounted for 14% of our accounts receivable balance as of June 30, 2021, and two customers accounted for 11% and 10% of our accounts receivable as of December 31, 2020.