Enterprise Wide Segment Information and Net Sales

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Enterprise Wide Segment Information and Net Sales

NOTE 7 – Enterprise Wide Segment Information and Net Sales

Segment Reporting. For financial reporting purposes, we operate in a single segment, standard semiconductor products, through our various manufacturing and distribution facilities. We aggregate our products because the products are similar and have similar economic characteristics, use similar production processes and share similar customer type. Our primary operations include operations in Asia, the Americas, and Europe. During the three months ended June 30, 2024, one customer accounted for approximately $33.9 million, or 10.6%, of our net sales. During the six months ended June 30, 2024, one customer accounted for approximately $76.6 million, or 12.3%, of our net sales. During the three months ended June 30, 2023, two customers accounted for approximately $64.9 million, or 13.9%, and $53.2 million, or 11.4%, of our net sales. During the six months ended June 30, 2023, two customers accounted for approximately $116.5 million, or 12.5% and $104.9 million, or 11.2%, of our net sales. One customer accounted for approximately 20.4% and one customer accounted for 11.8% of our outstanding accounts receivable at June 30, 2024. All customers that accounted for 10% or more of our net sales during any period presented in this Quarterly Report on Form 10-Q are broad-based global distributors that sell to thousands of different end users.

Disaggregation of Net Sales. We disaggregate net sales with customers into direct sales to end customers and distribution sales to distributors (“Distributors”) and by geographic area. Direct sales customers consist of those customers using our product in their manufacturing process, and Distributors are those customers who resell our products to third parties. We deliver our products to customers around the world for use in the industrial, automotive, computing, consumer, and communications markets. Further, most of our contracts are fixed-price arrangements, and are short term in nature, ranging from days to several months. The tables below set forth net sales based on the location of the subsidiary producing the net sale:

For the Three Months Ended June 30, 2024	Asia			Americas			Europe			Consolidated
Total sales	$	341,679		$	216,616		$	69,710		$	628,005
Intercompany elimination		(135,617	)		(139,757	)		(32,860	)		(308,234	)
Net sales	$	206,062		$	76,859		$	36,850		$	319,771
For the Three Months Ended June 30, 2023	Asia			Americas			Europe			Consolidated
Total sales	$	403,434		$	333,178		$	117,393		$	854,005
Intercompany elimination		(188,504	)		(165,537	)		(32,812	)		(386,853	)
Net sales	$	214,930		$	167,641		$	84,581		$	467,152
As of and for the
Six Months Ended June 30, 2024	Asia			Americas			Europe			Consolidated
Total sales	$	671,105			440,389		$	136,097		$	1,247,591
Intercompany elimination		(284,501	)		(276,187	)		(65,160	)		(625,848	)
Net sales	$	386,604		$	164,202		$	70,937		$	621,743
Property, plant, and equipment, net	$	515,332		$	81,287		$	110,998		$	707,617
Total assets	$	1,663,698		$	467,291		$	230,068		$	2,361,057
As of and for the
Six Months Ended June 30, 2023	Asia			Americas			Europe			Consolidated
Total sales	$	827,596		$	664,585		$	217,438		$	1,709,619
Intercompany elimination		(369,969	)		(340,688	)		(64,569	)		(775,226	)
Net sales	$	457,627		$	323,897		$	152,869		$	934,393
Property, plant, and equipment, net	$	540,172		$	90,588		$	117,355		$	748,115
Total assets	$	1,553,842		$	505,460		$	281,769		$	2,341,071

The tables below set forth net sales for the Company disaggregated into geographic locations based on shipment destination and by type (direct sales or Distributor):

	For the Three Months Ended June 30,
Net Sales by Region	2024		2023
Asia	$	245,643	$	313,754
Europe		47,364		92,239
Americas		26,764		61,159
Total net sales	$	319,771	$	467,152
Net Sales by Type
Direct sales	$	116,840	$	144,083
Distributor sales		202,931		323,069
Total net sales	$	319,771	$	467,152
	For the Six Months Ended June 30,
Net Sales by Region	2024		2023
Asia	$	474,062	$	637,922
Europe		94,815		169,229
Americas		52,866		127,242
Total net sales	$	621,743	$	934,393
Net Sales by Type
Direct sales	$	235,004	$	279,028
Distributor sales		386,739		655,365
Total net sales	$	621,743	$	934,393

Net sales from products shipped to China was $142.5 million and $171.9 million for the three months ended June 30, 2024 and 2023, respectively. Net sales from products shipped to China was $281.0 million and $351.6 million for the six months ended June 30, 2024 and 2023, respectively.