SIGNIFICANT CUSTOMERS, CONCENTRATION OF CREDIT RISK AND GEOGRAPHIC INFORMATION

6 Months Ended

Jun. 30, 2017

SIGNIFICANT CUSTOMERS, CONCENTRATION OF CREDIT RISK AND GEOGRAPHIC INFORMATION

SIGNIFICANT CUSTOMERS, CONCENTRATION OF CREDIT RISK AND GEOGRAPHIC INFORMATION

NOTE 6-SIGNIFICANT CUSTOMERS, CONCENTRATION OF CREDIT RISK AND GEOGRAPHIC INFORMATION

We manage and operate our business through one operating segment.

Net revenues from customers equal to, or greater than, 10% of total net revenues are as follows:

	Three months ended June 30,						Six months ended June 30,
	2017			2016			2017			2016
Customer A		25	%		20	%		21	%		20	%
Customer B		15	%		12	%		15	%		10	%
Customer C		11	%		12	%		11	%		11	%
Customer D		*	%		14	%		*	%		13	%
Customer E		*	%		10	%		*	%		10	%

*Less than 10% of total net revenues

Net revenues by geographic area are as follows:

	Three months ended June 30,				Six months ended June 30,
	2017		2016		2017		2016
	(in thousands)				(in thousands)
United States	$	1,763	$	1,913	$	2,989	$	3,492
Asia and Middle East		1,167		632		2,324		1,317
Europe and other		334		509		835		1,050
Revenue, net	$	3,264	$	3,054	$	6,148	$	5,859

Revenues by geographic area are based on the country of shipment destination. The geographic location of distributors and third-party manufacturing service providers may be different from the geographic location of the purchasers and/or ultimate end users.

We provide credit only to creditworthy third parties who are subject to our credit verification procedures. Accounts receivable balances are monitored on an ongoing basis, and accounts deemed to have credit risk are fully reserved. At June 30, 2017, two customers accounted for 42% and 25% of total accounts receivable, respectively. At December 31, 2016, two customers accounted for 44% and 15% of total accounts receivable, respectively. Our allowance for doubtful accounts was $0 at both June 30, 2017 and December 31, 2016.

Our long-lived assets (property, plant and equipment plus intangibles, net) were geographically located as follows:

	June 30,		December 31,
	2017		2016
	(in thousands)
United States	$	97	$	87
Asia		231		267
Total long-lived assets	$	328	$	354