SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES

12 Months Ended

Dec. 31, 2017

SIGNIFICANT CUSTOMERS AND EXPORT SALES [Text Block]

SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES:

Customer Concentration

The Company's top ten customers accounted for approximately 54%, 60% and 61% in 2017, 2016 and 2015, 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. Sales to distributors in 2017, 2016 and 2015 were $330.9 million, $292.6 million and $261.4 million, respectively. Direct sales to OEMs and power-supply manufacturers accounted for the remainder.

The following customers, distributors of the Company’s products, each accounted for 10% or more of total net revenues:



	Year Ended December 31,
Customer	2017		2016		2015
Avnet	16	%	18	%	21	%
Powertech Distribution Ltd.	*		10	%	11	%

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* Total customer revenue was less than 10% of net revenues.

No other customers accounted for 10% or more of the Company’s net revenues in the periods presented.

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 does not have any off-balance-sheet credit exposure related to its customers. As of December 31, 2017 and December 31, 2016, 64% and 70%, respectively, of accounts receivable were concentrated with the Company’s top ten customers.

The following customer, a distributor of the Company’s products, represented 10% or more of accounts receivable:



Customer	December 31, 2017		December 31, 2016
Avnet	18	%	24	%

No other customers accounted for 10% or more of the Company’s accounts receivable in the periods presented.

Geographic Net Revenues

The Company markets its products globally through its sales personnel and a worldwide network of independent sales representatives and distributors. Geographic net revenues based on “bill to” customer locations were as follows:



	Year Ended December 31,
(In thousands)	2017		2016		2015
United States of America	$	16,647	$	14,948	$	14,759
Hong Kong/China	227,335		198,858		173,202
Taiwan	50,307		50,324		47,279
Korea	38,012		41,996		34,264
Western Europe (excluding Germany)	48,230		41,214		38,028
Japan	20,769		19,767		16,994
Germany	11,558		7,563		7,802
Other	18,897		14,998		12,281
Total net revenues	$	431,755	$	389,668	$	344,609