Segment Information and Foreign Operations

6 Months Ended

Jun. 30, 2022

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,
	2022		2021		2022		2021
Product Type:
Substrates	$	31,694	$	24,905	$	63,439	$	48,278
Raw Materials and Other		7,793		8,830		15,701		16,807
Total	$	39,487	$	33,735	$	79,140	$	65,085

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,
	2022		2021		2022		2021
Geographical region:
China	$	18,445	$	15,546	$	35,925	$	31,092
Taiwan		7,044		4,996		13,903		8,011
Japan		2,718		2,635		5,525		5,158
Asia Pacific (excluding China, Taiwan and Japan)		662		1,396		2,418		3,213
Europe (primarily Germany)		5,299		6,411		11,693		11,846
North America (primarily the United States)		5,319		2,751		9,676		5,765
Total	$	39,487	$	33,735	$	79,140	$	65,085

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,
	2022		2021
Long-lived assets by geographic region, net of depreciation:
North America	$	846	$	1,610
China		154,057		143,129
	$	154,903	$	144,739

Significant Customers

One customer, Landmark, represented 12% of our revenue for the three months ended June 30, 2022 and no customer represented 10% of our revenue for the three months ended June 30, 2021. Our top five customers, although not the same five customers for each period, represented 35% and 31% of our revenue for the three months ended June 30, 2022 and 2021, respectively.

One customer, Landmark, represented 11% of our revenue for the six months ended June 30, 2022 and no customer represented 10% of our revenue for the six months ended June 30, 2021. Our top five customers, although not the same five customers for each period, represented 32% and 27% of our revenue for the six months ended June 30, 2022 and 2021, 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 11% of our accounts receivable balance as of June 30, 2022, and no customer accounted for 10% of our accounts receivable as of December 31, 2021.