Enterprise-Wide Segment Information and Net Sales

9 Months Ended

Sep. 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 September 30, 2024, one customer accounted for approximately $44.3 million, or 12.6%, of our net sales. During the nine months ended September 30, 2024, one customer accounted for approximately $120.9 million, or 12.4%, of our net sales. During the three months ended September 30, 2023, one customer accounted for approximately $64.8 million or 16.0% of our net sales. During the nine months ended September 30, 2023, two customers accounted for $169.8 million, or 12.7%, and $153.6 million, or 11.5%, respectively, of our net sales. One customer accounted for approximately 17.7% and one customer accounted for 14.1% of our outstanding accounts receivable at September 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 September 30, 2024	Asia			Americas			Europe			Consolidated
Total sales	$	380,013		$	255,058		$	68,771		$	703,842
Intercompany elimination		(161,213	)		(155,017	)		(37,533	)		(353,763	)
Net sales	$	218,800		$	100,041		$	31,238		$	350,079
For the Three Months Ended September 30, 2023	Asia			Americas			Europe			Consolidated
Total sales	$	379,181		$	291,359		$	97,625		$	768,165
Intercompany elimination		(169,629	)		(159,114	)		(34,775	)		(363,518	)
Net sales	$	209,552		$	132,245		$	62,850		$	404,647
As of and for the
Nine Months Ended September 30, 2024	Asia			Americas			Europe			Consolidated
Total sales	$	1,051,118			695,447		$	204,868		$	1,951,433
Intercompany elimination		(445,714	)		(431,204	)		(102,693	)		(979,611	)
Net sales	$	605,404		$	264,243		$	102,175		$	971,822
Property, plant, and equipment, net	$	515,347		$	78,915		$	109,463		$	703,725
Total assets	$	1,678,927		$	472,420		$	238,035		$	2,389,382
As of and for the
Nine Months Ended September 30, 2023	Asia			Americas			Europe			Consolidated
Total sales	$	1,206,777		$	955,944		$	315,063		$	2,477,784
Intercompany elimination		(539,598	)		(499,802	)		(99,344	)		(1,138,744	)
Net sales	$	667,179		$	456,142		$	215,719		$	1,339,040
Property, plant, and equipment, net	$	537,040		$	86,951		$	112,135		$	736,126
Total assets	$	1,562,240		$	520,608		$	257,374		$	2,340,222

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 September 30,
Net Sales by Region	2024		2023
Asia	$	274,711	$	292,968
Europe		52,588		73,555
Americas		22,780		38,124
Total net sales	$	350,079	$	404,647
Net Sales by Type
Direct sales	$	127,219	$	137,661
Distributor sales		222,860		266,986
Total net sales	$	350,079	$	404,647
	For the Nine Months Ended September 30,
Net Sales by Region	2024		2023
Asia	$	748,774	$	930,891
Europe		147,403		242,783
Americas		75,645		165,366
Total net sales	$	971,822	$	1,339,040
Net Sales by Type
Direct sales	$	362,223	$	416,689
Distributor sales		609,599		922,351
Total net sales	$	971,822	$	1,339,040

Net sales from products shipped to China was $149.2 million and $189.7 million for the three months ended September 30, 2024 and 2023, respectively. Net sales from products shipped to China was $430.2 million and $541.3 million for the nine months ended September 30, 2024 and 2023, respectively.