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 78% and 77% of net revenues for the three months ended March 31, 2023 and 2022, 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 $66.8 million and $135.7 million in the three months ended March 31, 2023, and 2022, 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 March 31, 2023, and December 31, 2022, 84% and 87%, respectively, of accounts receivable were concentrated with the Company’s top ten customers.

The following customer represented 10% or more of accounts receivable at March 31, 2023 and December 31, 2022:


	March 31,		December 31,
Customer	2023		2022
Avnet	31	%	42	%
Salcomp Group	16	%	13	%
Flextronics Group	11	%	11	%

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 months ended March 31, 2023 and 2022, were as follows:


	Three Months Ended
	March 31,
(In thousands)	2023		2022
United States of America	$	2,547	$	6,906
Hong Kong/China		59,598		105,240
India		6,729		5,849
Taiwan		2,009		5,257
Korea		6,801		18,664
Western Europe (excluding Germany)		6,916		8,245
Japan		5,339		8,049
Germany		7,474		11,484
Other		8,884		12,455
Total net revenues	$	106,297	$	182,149