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SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES
6 Months Ended
Jun. 30, 2020
Risks and Uncertainties [Abstract]  
Concentration Risk Disclosure [Text Block] 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 59% and 56% of net revenues for the three and six months ended June 30, 2020, respectively, and approximately 56% and 54%, respectively, in the corresponding periods 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 original equipment manufacturers, or OEMs, and merchant power supply manufacturers. Sales to distributors were $87.3 million and $170.8 million in the three and six months ended June 30, 2020, respectively and $74.8 million and $144.7 million, respectively, for the corresponding periods of 2019. Direct sales to OEMs and power-supply manufacturers accounted for the remainder.
In each of three and six months ended June 30, 2020, one customer, a distributor of the Company's products, accounted for more than 10% of the Company’s net revenues.
The following table discloses the customer’s percentage of revenues for the respective periods:
Three Months EndedSix Months Ended
CustomerJune 30,
2020
June 30,
2019
June 30,
2020
June 30,
2019
Avnet13 %10 %12 %12 %
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 June 30, 2020, and December 31, 2019, 65% and 63%, respectively, of accounts receivable were concentrated with the Company’s top ten customers.
The following customers represented 10% or more of accounts receivable:
CustomerJune 30,
2020
December 31,
2019
Avnet20 %*
Powertech Distribution Ltd.*10 %
________________________
*Total customer accounts receivable was less than 10% of accounts receivable.
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, for the three and six months ended June 30, 2020, and June 30, 2019, were as follows:
Three Months EndedSix Months Ended
(In thousands)June 30,
2020
June 30,
2019
June 30,
2020
June 30,
2019
United States of America$2,935  $2,612  $5,648  $5,284  
Hong Kong/China65,680  59,355  126,093  106,584  
Taiwan7,199  10,164  13,678  16,836  
Korea7,284  6,902  17,641  15,444  
Western Europe (excluding Germany)7,995  8,625  18,030  19,526  
Japan4,398  2,909  8,303  6,559  
Germany5,847  3,813  11,414  8,740  
Other5,494  8,485  15,689  13,080  
Total net revenues$106,832  $102,865  $216,496  $192,053