Segment Information and Foreign Operations

3 Months Ended

Mar. 31, 2023

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 the 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,
	2023		2022
Product Type:
Substrates	$	13,489	$	31,745
Raw Materials and Other		5,916		7,908
Total	$	19,405	$	39,653

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,
	2023		2022
Geographical region:
China	$	8,102	$	17,480
Taiwan		2,471		6,859
Japan		1,535		2,807
Asia Pacific (excluding China, Taiwan and Japan)		1,091		1,756
Europe (primarily Germany)		3,570		6,394
North America (primarily the United States)		2,636		4,357
Total	$	19,405	$	39,653

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,
	2023		2022
Long-lived assets by geographic region, net of depreciation:
North America	$	273	$	346
China		163,910		162,432
	$	164,183	$	162,778

Significant Customers

No customers represented 10% of our revenue for the three months ended March 31, 2023 and one customer, Landmark, represented 10% of our revenue for the three months ended March 31, 2022. Our top five customers, although not the same five customers for each period, represented 28% and 29% of our revenue for the three months ended March 31, 2023 and 2022, 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. No customers accounted for 10% of our accounts receivable balance as of March 31, 2023, and two customers accounted for more than 10% of our accounts receivable as of December 31, 2022.