SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES:

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

The Company's top ten customers accounted for approximately 58% of net revenues for the three months ended March 31, 2018, and approximately 59% of net revenues in the corresponding period of the previous year. 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 were $79.1 million and $80.6 million in the three months ended March 31, 2018 and 2017, respectively. Direct sales to OEMs and power-supply manufacturers accounted for the remainder.

In each of the three months ended March 31, 2018 and 2017, one customer, a distributor of the Company's products, accounted for more than 10% of the Company’s net revenues.

The following table discloses this customer’s percentage of revenues for the respective periods:



	Three Months Ended
	March 31,
Customer	2018		2017
Avnet	16	%	17	%

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 consist principally of cash investments and trade receivables. The Company does not have any off-balance-sheet credit exposure related to its customers. As of March 31, 2018, and December 31, 2017, 70% and 67%, 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, 2018		December 31, 2017
Avnet	20	%	18	%
ATM Electronics	10	%	*

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*	Total customer percentage of accounts receivable was less than 10%.

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, for the three months ended March 31, 2018, and March 31, 2017, were as follows:



	Three Months Ended
	March 31,
(In thousands)	2018		2017
United States of America	$	3,867	$	3,829
Hong Kong/China	51,357		54,845
Taiwan	11,886		13,034
Korea	9,649		9,506
Western Europe (excluding Germany)	13,592		11,971
Japan	4,551		4,648
Germany	3,304		2,796
Other	4,875		4,059
Total net revenues	$	103,081	$	104,688