SIGNIFICANT CUSTOMERS AND EXPORT SALES

12 Months Ended

Dec. 31, 2011

Risks and Uncertainties [Abstract]

SIGNIFICANT CUSTOMERS AND EXPORT SALES [Text Block]

SIGNIFICANT CUSTOMERS AND EXPORT SALES:

Segment Reporting

The Company is organized and operates as one reportable segment, the design, development, manufacture and marketing of proprietary, high-voltage, analog integrated circuits for use primarily in the AC-DC power conversion markets. The Company's chief operating decision maker, the Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance.

Customer Concentration

Ten customers accounted for approximately 65%, 62% and 62% of net revenues for the years ended December 31, 2011, 2010 and 2009, respectively. A significant portion of these revenues are attributable to sales of the Company’s products to distributors of electronic components. These distributors sell the Company’s products to a broad, diverse range of end users, including OEMs and merchant power supply manufacturers.

The following customers each accounted for 10% or more of total net revenues:

	Year Ended December 31,
Customer	2011		2010		2009
Avnet	19	%	17	%	15	%
ATM Electronic Corporation	13	%	11	%	10	%

Avnet and ATM Electronic Corporation are distributors of the Company's products. No other customers accounted for 10% or more of the Company's net revenues in those periods.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash investments and trade receivables. The Company has cash investment policies that limit cash investments to low-risk investments. With respect to trade receivables, the Company performs ongoing evaluations of its customers' financial conditions and requires letters of credit whenever deemed necessary. Additionally, the Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends related to past write-offs and other relevant information. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its customers. As of December 31, 2011 and December 31, 2010, 79% and 76%, respectively, of accounts receivable were concentrated with the Company's top 10 customers.

The following customers each represented 10% or more of accounts receivable:

Customer	December 31, 2011		December 31, 2010
Avnet	36	%	21	%
ATM Electronic Corporation	10	%	*

 _______________

*less than 10%

Avnet and ATM Electronic Corporation are distributors of the Company’s products. No other customers accounted for 10% or more of the Company’s accounts receivable in these periods.

International Sales

The Company markets its products in and outside of North and South America through its sales personnel and a worldwide network of independent sales representatives and distributors. As a percentage of total net revenues, foreign revenue, consists of domestic and foreign sales to distributors and direct customers outside of North and South America. Foreign revenue information is based on the customers' bill-to location. The revenue percentages are comprised of the following:

	Year Ended December 31,
	2011		2010		2009
Hong Kong/China	39	%	33	%	26	%
Taiwan	21	%	23	%	30	%
Korea	16	%	20	%	22	%
Western Europe (excluding Germany)	10	%	8	%	8	%
Japan	6	%	6	%	4	%
Singapore	2	%	2	%	2	%
Germany	1	%	2	%	2	%
Other	1	%	1	%	1	%
Total foreign revenue	96	%	95	%	95	%

The remainder of the Company’s sales are to customers within the Americas, primarily located in the United States.

Product Sales

Approximately 98% to 99% of the Company's sales in the years ended December 31, 2011, 2010 and 2009 were from its three primary families of low-power AC-DC power-conversion products - TOPSwitch, TinySwitch and LinkSwitch. Approximately 1% to 2% of the Company's sales came from other product families.

Revenue mix by product family for the years ended December 31, 2011, 2010 and 2009 was as follows:

	Years Ended December 31,
Product Family	2011		2010		2009
LinkSwitch	42	%	37	%	33	%
TinySwitch	33	%	38	%	43	%
TOPSwitch	23	%	24	%	23	%
Other	2	%	1	%	1	%

Revenue mix by end markets served is comprised of the following:

	Year Ended December 31,
End Market	2011		2010		2009
Consumer	38	%	38	%	35	%
Communications	28	%	31	%	34	%
Industrial electronics	22	%	19	%	17	%
Computer	12	%	12	%	14	%