SIGNIFICANT CUSTOMERS AND EXPORT SALES

9 Months Ended

Sep. 30, 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 integrated circuits and related components for use primarily in the high-voltage 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 64% and 65% of net revenues for the three and nine months ended September 30, 2012, and 65% in both the three and nine months ended September 30, 2011. 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				Nine Months Ended
	September 30,				September 30,
Customer	2012		2011		2012		2011
A	20	%	19	%	21	%	19	%
B	12	%	12	%	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. The SemiSouth related transactions were outside of this cash investment policy and were approved by the Board of Directors. With respect to SemiSouth related transactions refer to Note 15, Transactions With Third Party, for further details on the impairment. 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 September 30, 2012, and December 31, 2011, 72% 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	September 30, 2012		December 31, 2011
A	28	%	36	%
B	14	%	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				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
Hong Kong/China	47	%	40	%	45	%	38	%
Taiwan	17	%	18	%	17	%	21	%
Korea	11	%	16	%	13	%	16	%
Western Europe (excluding Germany)	10	%	10	%	10	%	10	%
Japan	5	%	7	%	6	%	6	%
Singapore	1	%	2	%	2	%	2	%
Germany	1	%	1	%	1	%	1	%
Other	2	%	2	%	1	%	2	%
Total foreign revenue	94	%	96	%	95	%	96	%

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

Product Sales

Revenue mix by end market for the three and nine months ended September 30, 2012 and 2011, was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
End Market	2012		2011		2012		2011
Consumer	36	%	39	%	37	%	37	%
Communications	23	%	26	%	25	%	29	%
Industrial	31	%	23	%	27	%	22	%
Computer	10	%	12	%	11	%	12	%