15. Geographic and Segment Information

The Company has two operating segments: Foundry Services Group and Standard Products Group. The Company’s chief operating decision maker is its Chief Executive Officer who allocates resources and assesses performance of the business and other activities based on gross profit.

In January 2018, as part of the Company’s ongoing portfolio optimization effort to realign business processes and streamline the Company’s organizational structure, the Company transferred a portion of its non-OLED Display business from the Standard Products Group to the Foundry Services Group. The transferred non-OLED Display business has technical and business characteristics more closely aligned with the Company’s Foundry Services business than with the Company’s Standard Products business, which resided within the Company’s Display Solutions business line primarily as a result of a long standing customer relationship established many years ago. The Company recast comparative segment financial information to conform to this current period change. For the three months ended June 30, 2017, $6,021 thousand of net sales and $1,237 thousand of gross profit, and were reclassified from the Display Solutions business line in the Standard Products Group to the Foundry Services Group. For the six months ended June 30, 2017, $12,035 thousand of net sales and $2,462 thousand of gross profit were reclassified from the Display Solutions business line in the Standard Products Group to the Foundry Services Group.

The following sets forth information relating to the operating segment (in thousands):


	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017 *As Adjusted*		June 30, 2018			June 30, 2017 *As Adjusted*
Net Sales
Foundry Services Group	$	80,907	$	87,549	$	158,336		$	171,091
Standard Products Group
Display Solutions		78,712		43,732		128,408			86,597
Power Solutions		40,028		35,314		78,695			70,594

Total Standard Products Group		118,740		79,046		207,103			157,191
All other		38		90		65			113

Total net sales	$	199,685	$	166,685	$	365,504		$	328,395


	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017 *As Adjusted*		June 30, 2018			June 30, 2017 *As Adjusted*
Gross Profit
Foundry Services Group	$	22,185	$	24,670	$	42,849		$	47,982
Standard Products Group		31,631		21,902		55,670			40,137
All other		38		90		(84	)		113

Total gross profit	$	53,854	$	46,662	$	98,435		$	88,232

Upon the adoption of the new revenue standard, the Company’s revenue for Foundry Services Group is disaggregated depending on the timing of revenue recognition (in thousands):


	Three Months Ended June 30, 2018						Six Months Ended June 30, 2018
	Revenue recognized at the time of shipment or delivery		Revenue recognized over time		Total		Revenue recognized at the time of shipment or delivery		Revenue recognized over time		Total
Net Sales
Foundry Services Group	$	22,970	$	57,937	$	80,907	$	25,766	$	132,570	$	158,336

The following is a summary of net sales by geographic region, based on the location to which the products are billed (in thousands):


	Three Months Ended
	June 30, 2018		June 30, 2017
Korea	$	58,060	$	67,979
Asia Pacific (other than Korea)		119,725		76,524
U.S.A.		13,593		11,155
Europe		7,619		10,725
Others		688		302

Total	$	199,685	$	166,685


	Six Months Ended
	June 30, 2018		June 30, 2017
Korea	$	112,750	$	133,062
Asia Pacific (other than Korea)		209,430		155,988
U.S.A.		23,411		20,322
Europe		18,597		18,578
Others		1,316		445

Total	$	365,504	$	328,395

For the three months ended June 30, 2018 and 2017, of the Company’s net sales in Asia Pacific (other than Korea), net sales in Greater China (China, Hong Kong and Macau) represented 70.3% and 51.4%, respectively, and net sales in Taiwan represented 23.8% and 34.8%, respectively.

For the six months ended June 30, 2018 and 2017, of the Company’s net sales in Asia Pacific (other than Korea), net sales in Greater China (China, Hong Kong and Macau) represented 69.1% and 50.3%, respectively, and net sales in Taiwan represented 24.1% and 32.2%, respectively.

Net sales from the Company’s top ten largest customers accounted for 67% and 59% for the three months ended June 30, 2018 and 2017, respectively, and 63% and 60% for the six months ended June 30, 2018 and 2017, respectively.

For the three months ended June 30, 2018, the Company had one customer that represented 28.9% of its net sales, and for the six months ended June 30, 2018, the Company had one customer that represented 23.9% of its net sales.

For the three months ended June 30, 2017, the Company had one customer that represented 15.1% of its net sales, and for the six months ended June 30, 2017, the Company had one customer that represented 14.9% of its net sales.

97% of the Company’s property, plant and equipment are located in Korea as of June 30, 2018.