SIGNIFICANT CUSTOMERS AND EXPORT SALES

3 Months Ended

Mar. 31, 2012

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 market. 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 66% and 67% of net revenues for the three months ended March 31, 2012 and March 31, 2011, 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 accounted for 10% or more of total net revenues:

	Three Months Ended
	March 31,
Customer	2012		2011
A	20	%	19	%
B	12	%	12	%

Customers A and B 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, trade receivables, the Company's note from SemiSouth and the Company's lease line of credit to SemiSouth. The Company has cash investment policies that limit cash investments to low-risk investments. With respect to the Company's agreements with SemiSouth, the Company monitors SemiSouth's credit quality on an ongoing basis. If the credit worthiness of SemiSouth diminishes, the Company will establish a specific reserve against the lease line receivable and / or note receivable. 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 off 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 March 31, 2012 and December 31, 2011, 78% and 79%, respectively, of accounts receivable were concentrated with the Company's top 10 customers.

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

Customer	March 31, 2012		December 31, 2011
A	26	%	36	%
B	18	%	10	%

Customers A and B 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 through its sales personnel and a worldwide network of distributors. As a percentage of total net revenues, international sales, which consist of domestic and foreign sales to distributors and direct customers outside of the Americas, comprise the following:

	Three Months  Ended
	March 31,
	2012		2011
Hong Kong/China	42	%	34	%
Taiwan	17	%	24	%
Korea	15	%	17	%
Western Europe (excluding Germany)	11	%	10	%
Japan	6	%	6	%
Singapore	2	%	3	%
Germany	1	%	1	%
Other	2	%	1	%
Total foreign revenue	96	%	96	%

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

Product Sales

Approximately 97% to 99% of the Company's sales in the three months ended March 31, 2012 and 2011, respectively, were from its three primary families of low-power AC-DC power-conversion products. Approximately 1% to 3% of the Company's sales came from other product families.

Revenue mix by product family for the three months ended March 31, 2012 and 2011 was as follows:

	Three Months Ended
	March 31,
Product Family	2012		2011
LinkSwitch	41	%	40	%
TinySwitch	33	%	35	%
TOPSwitch	23	%	23	%
Other	3	%	2	%