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.

The Company’s top ten customers accounted for approximately 72% and 75% of net revenues for the three and nine months ended September 30, 2022, respectively, and 76% and 79%, in the corresponding periods of 2021, 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 original equipment manufacturers, or OEMs, and merchant power supply manufacturers. Sales to distributors were $103.6 million and $373.3 million in the three and nine months ended September 30, 2022, respectively, and $127.3 million and $397.9 million, in the corresponding periods of 2021, respectively. Direct sales to OEMs and power-supply manufacturers accounted for the remainder.

The following customers represented 10% or more of the Company’s net revenues for the respective periods:

* 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 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 September 30, 2022, and December 31, 2021, 78% and 86%, respectively, of accounts receivable were concentrated with the Company’s top ten customers.

The following customer represented 10% or more of accounts receivable at September 30, 2022 and December 31, 2021:


	September 30,		December 31,
Customer	2022		2021
Avnet	32	%	45	%
Salcomp Group	13	%	*

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

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 nine months ended September 30, 2022 and 2021, were as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2022		2021		2022		2021
United States of America	$	8,387	$	5,054	$	22,862	$	12,973
Hong Kong/China		80,508		103,937		282,508		344,790
India		9,660		6,353		22,765		17,551
Taiwan		4,895		7,629		16,000		20,432
Korea		10,071		17,508		47,298		43,702
Western Europe (excluding Germany)		10,790		11,418		27,164		27,268
Japan		9,777		6,959		27,986		16,758
Germany		16,601		9,402		42,545		24,064
Other		9,544		8,516		37,240		23,085
Total net revenues	$	160,233	$	176,776	$	526,368	$	530,623