Note R - Segment and Geographic Information

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE R—SEGMENT AND GEOGRAPHIC INFORMATION

The Company operates in one reportable segment. The Company’s Chief Executive Officer, who is considered to be the chief operating decision maker ("CODM"), manages the Company’s operations as a whole and reviews financial information presented on a consolidated basis, accompanied by information about product revenue, for purposes of evaluating financial performance and allocating resources. Our CEO is the functional head of all operations and manufacturing. Our Board, in conjunction with our CODM, considers our consolidated performance and does not have individual financial or operating goals for each location, nor for any other subset of the Company's operations. As such, the Company has determined it operates as one reportable segment. 

Our CODM uses net income or loss to allocate resources and assess performance. The CODM regularly reviews the consolidated net income or loss to make strategic decisions, such as capital expenditure plan, production plan and manpower allocation. 

	Years Ended December 31,
	2024			2023			2022
Revenue	$	249,365		$	217,646		$	222,818
Cost of goods sold		(187,565	)		(158,725	)		(189,191	)
Adjusted research and development		(53,383	)		(34,483	)		(34,899	)
Adjusted sales and marketing		(15,805	)		(9,959	)		(8,857	)
Adjusted general and admin		(41,037	)		(37,118	)		(34,547	)
Other segment items		(138,308	)		(33,409	)		(21,721	)
			)			)			)
Net loss		(186,733	)		(56,048	)		(66,397	)

We exclude share-based compensation and related expense, certain legal expenses associated with litigation and other one-time expenses from adjusted research and development, adjusted sales and marketing and adjusted general and administrative expenses. 

Other segment items include share-based compensation expense, interest expense, interest income, certain legal expenses associated with litigation and other one-time items.

The following tables set forth the Company’s revenue and asset information by geographic region. Revenue is classified based on the location of where the product is manufactured. Long-lived assets in the tables below comprise only property, plant, equipment and intangible assets (in thousands):  

	Year ended December 31,
	2024		2023		2022
Revenues:
United States	$	10,921	$	30,798	$	7,423
Taiwan		126,639		143,528		164,144
China		111,805		43,320		51,251
	$	249,365	$	217,646	$	222,818

	As of December 31,
	2024		2023		2022
Long-lived assets:
United States	$	71,867	$	75,283	$	80,048
Taiwan		57,907		47,668		50,777
China		107,624		91,050		93,888
	$	237,398	$	214,001	$	224,713

The Company serves four primary markets, the internet data center, CATV, telecom and FTTH markets. Of the Company’s total revenues in 2024, the Company earned $148.5 million, or 59.5%, from the internet data center market, $87.7 million, or 35.2%, from the CATV market, $11.0 million, or 4.4%, from the telecom market and $2.1 million, or 0.9%, from the FTTH  and other markets. Of the Company’s total revenues in 2023, the Company earned $141.2 million, or 64.9%, from the internet data center market, $59.9 million, or 27.5%, from the CATV market, $13.8 million, or 6.4%, from the telecom market and $0.1 million, or 0.0%, from the FTTH market. Of the Company’s total revenues in 2022, the Company earned $118.2 million, or 53.0%, from the CATV market, $77.1 million, or 34.6%, from the internet data center market, $24.7 million, or 11.1%, from the telecom market and $0.1 million, or 0.0%, from the FTTH market.