SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES:

Customer Concentration

The Company's top ten customers accounted for approximately 56%, 54% and 60% of revenues in 2018, 2017 and 2016, 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 2018, 2017 and 2016 were $313.9 million, $330.9 million and $292.6 million, respectively. Direct sales to OEMs and power-supply manufacturers accounted for the remainder.

In each of 2018, 2017 and 2016 one distributor accounted for more than 10% of revenues. A second customer, also a distributor, accounted for more than 10% of revenues in 2016. The following table discloses these customers’ percentage of net revenues for the respective years:



	Year Ended December 31,
Customer	2018		2017		2016
Avnet	14	%	16	%	18	%
Powertech Distribution Ltd.	*		*		10	%

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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 both December 31, 2018 and December 31, 2017, 64% of accounts receivable were concentrated with the Company’s top ten customers.

As of December 31, 2018 two customers, both distributors of the Company’s products, represented more than 10% of accounts receivable. As of December 31, 2017 one of these customers represented more than 10% of accounts receivable. The following table discloses these customers’ percentage of accounts receivable:



Customer	December 31, 2018		December 31, 2017
Avnet	17	%	18	%
Powertech Distribution Ltd.	11	%	*

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

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)	2018		2017		2016
United States of America	$	15,315	$	16,647	$	14,948
Hong Kong/China	218,752		227,335		198,858
Taiwan	43,081		50,307		50,324
Korea	33,877		38,012		41,996
Western Europe (excluding Germany)	49,834		48,230		41,214
Japan	19,897		20,769		19,767
Germany	14,403		11,558		7,563
Other	20,796		18,897		14,998
Total net revenues	$	415,955	$	431,755	$	389,668