SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES

12 Months Ended

Dec. 31, 2019

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%, 56% and 54% of revenues in 2019, 2018 and 2017, 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 2019, 2018 and 2017 were $304.6 million, $313.9 million and $330.9 million, respectively. Direct sales to OEMs and power-supply manufacturers accounted for the remainder.

In each of 2019, 2018 and 2017 one distributor accounted for more than 10% of revenues. The following table discloses this customer’s percentage of net revenues for the respective years:



	Year Ended December 31,
Customer	2019		2018		2017
Avnet	11	%	14	%	16	%

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, 2019 and December 31, 2018, 63% and 64% of accounts receivable were concentrated with the Company’s top ten customers, respectively.

The following customers represented 10% or more of accounts receivable:



Customer	December 31, 2019		December 31, 2018
Powertech Distribution Ltd.	10	%	11	%
Avnet	*		17	%

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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)	2019		2018		2017
United States of America	$	10,662	$	15,315	$	16,647
Hong Kong/China	237,341		218,752		227,335
Taiwan	36,297		43,081		50,307
Korea	30,395		33,877		38,012
Western Europe (excluding Germany)	36,025		49,834		48,230
Japan	15,496		19,897		20,769
Germany	20,197		14,403		11,558
Other	34,256		20,796		18,897
Total net revenues	$	420,669	$	415,955	$	431,755