SIGNIFICANT CUSTOMERS AND EXPORT SALES

12 Months Ended

Dec. 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 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.

Product Sales

Net revenues consist primarily of sales of the Company's high-voltage integrated-circuit products, IGBT drivers and high-voltage silicon diodes. When evaluating the Company's net revenues, the Company categorizes its sales into the following four major end markets served; consumer, communications, industrial electronics and computer. The table below provides net sales activity by end markets served on a comparative basis for all periods:

	Year Ended December 31,
End Market	2012		2011		2010
Consumer	36	%	38	%	38	%
Communications	24	%	28	%	31	%
Industrial electronics	28	%	22	%	19	%
Computer	12	%	12	%	12	%

Customer Concentration

Ten customers accounted for approximately 64%, 65% and 62% of net revenues for the years ended December 31, 2012, 2011 and 2010, 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	2012		2011		2010
Avnet	20	%	19	%	17	%
ATM Electronic Corporation	12	%	13	%	11	%

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 consisted 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 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. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash investments and trade receivables. As of December 31, 2012, and December 31, 2011, 74% and 79%, 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, 2012		December 31, 2011
Avnet	28	%	36	%
ATM Electronic Corporation	18	%	10	%

Each customer above had over 10% of accounts receivable for each of the years presented.

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 as follows:

	Year Ended December 31,
	2012		2011		2010
Hong Kong/China	45	%	39	%	33	%
Taiwan	17	%	21	%	23	%
Korea	12	%	16	%	20	%
Western Europe (excluding Germany)	10	%	10	%	8	%
Japan	6	%	6	%	6	%
Singapore	2	%	2	%	2	%
Germany	1	%	1	%	2	%
Other	2	%	1	%	1	%
Total foreign revenue	95	%	96	%	95	%

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