SEGMENT REPORTING

12 Months Ended

Dec. 31, 2024

SEGMENT REPORTING

SEGMENT REPORTING

13. SEGMENT REPORTING:

The Company is organized and operates as one operating and reportable segment; the design, development, manufacture and marketing of integrated circuits and related components for use primarily in high-voltage power conversion. This determination is based on the management approach which designates internal information regularly available to the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of determination of the Company’s reportable segments. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis for the purpose of making operating decisions and assessing financial performance.

The CODM uses net income as the measure of profit or loss to allocate resources and assess performance. The CODM regularly reviews net income as reported on the Company’s consolidated statements of income. Financial forecasts and budget to actual results used by the CODM to assess performance and allocate resources, as well as those used for

strategic decisions related to headcount and capital expenditures are also reviewed on a consolidated basis. The CODM considers the impact of the significant segment expenses in the table below on net income when deciding whether to reinvest profits, propose dividends or share repurchase, or pursue strategic mergers and acquisitions.

The measure of segment assets is reported on the balance sheet as total assets. The CODM does not review segment assets at a level other than that presented in the Company’s consolidated balance sheets.

The table below presents the Company’s consolidated operating results including significant segment expenses:

	Year Ended December 31,
(In thousands)	2024		2023		2022
NET REVENUES	$	418,973	$	444,538	$	651,138
Less:
Stock-based compensation (1)		35,076		28,528		22,364
Amortization of acquisition-related intangible assets (2)		1,034		1,928		2,169
Cost of revenues (excluding 1 & 2)		191,098		211,962		281,171
Research and development (excluding 1)		88,203		85,128		83,466
Sales and marketing (excluding 1 & 2)		59,761		57,710		56,298
General and administrative (excluding 1)		25,872		24,223		24,128
Other operating expenses, net		—		—		1,130
INCOME FROM OPERATIONS		17,929		35,059		180,412
OTHER INCOME		12,825		10,848		3,014
PROVISION (BENEFIT) FOR INCOME TAXES		(1,480)		(9,828)		12,575
NET INCOME	$	32,234	$	55,735	$	170,851

The table below presents other segment information:

	Year Ended December 31,
(In thousands)	2024		2023		2022
Depreciation	$	33,303	$	35,203	$	34,930
Amortization of intangibles	$	1,279	$	2,173	$	2,415
Interest income	$	13,576	$	11,655	$	3,471