Segment Reporting Geographic Information and Significant Customers

12 Months Ended

Dec. 31, 2012

Segment Reporting Geographic Information, and Significant Customers [Abstract]

Segment Reporting, Geographic Information, and Significant Customers

16.  Segment Reporting, Geographic Information, and Significant Customers

The Company develops, manufactures, licenses, and supports a wide range of hardware and software technologies that more fully engage users’ sense of touch when operating digital devices. The Company focuses on the following target application areas: mobile communications and consumer electronics, automotive, gaming, commercial and industrial, and medical. Through March 31, 2010, the Company managed these application areas under two operating and reportable segments: Touch and Medical. As discussed in Note 11 of the consolidated financial statements, on March 30, 2010 the Company divested its Endoscopy, Endovascular, and Laparoscopy product lines. The primary focus from this part of the business changed from simulation product sales to primarily a licensing model under which the Company develops and licenses a wide range of haptic-related software and patented technologies and will collect license and royalty revenue. As of April 1, 2010, the Company reorganized into one segment and there is no longer management, development, operations, or administrative personnel specifically for medical operations or product lines.

The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM allocates resources to and assesses the performance of the Company using information about its revenue and operating loss. Beginning April 1, 2010, there is only one segment that is reported to management.

As the Company has changed its internal structure which caused the Company’s reportable segments to change, the Company has restated its previously reported separate segment information from Medical and Touch into only one segment. As such, separate segment information has been eliminated.

Revenue by Region

The following is a summary of revenues by geographic areas. Revenues are broken out geographically by the ship-to location of the customer. Geographic revenue as a percentage of total revenues by region was as follows:

	Years Ended December 31,
	2012			2011			2010
North America		41	%		42	%		37	%
Europe		13	%		13	%		15	%
Far East		46	%		45	%		46	%
Rest of the world		0	%		0	%		2	%
Total		100	%		100	%		100	%

Geographic revenue as a percentage of total revenues by country was as follows:

	Years Ended December 31,
	2012			2011			2010
United States of America		38	%		40	%		36	%
Korea		36	%		37	%		35	%

The majority of the Company’s long-lived assets are located in the United States of America. Long-lived assets include net property and equipment, intangibles, long-term investments, and other assets. Long-lived assets that were outside the United States of America constituted less than 10% of the total on December 31, 2012, December 31, 2011, and December 31, 2010.

Significant Customers

Customers comprising 10% or greater of the Company’s net revenues are summarized as follows:

	Years Ended December 31,
	2012			2011			2010
Customer A		24	%		20	%		14	%
Customer B			*		12	%		10	%
Customer C			*			*			*
Customer D			*			*			*
Customer E			*			*			*
Total		24	%		32	%		24	%

* Revenue derived from customer represented less than 10% for the period.

Customers comprising 10% or greater of the Company’s outstanding accounts and other receivable are summarized as follows:

	December 31,
	2012			2011			2010
Customer A			*			*		37	%
Customer B		33	%			*			*
Customer C		38	%		14	%			*
Customer D			*		14	%		13	%
Customer E		10	%			*			*

* Represents less than 10% of the Company’s outstanding accounts and other receivable.