SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES

3 Months Ended

Mar. 31, 2025

SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES

SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES

7. SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES:

Customer Concentration

The Company’s top ten customers accounted for approximately 80% and 77% of net revenues for the three months ended March 31, 2025 and 2024, 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 (“OEMs”) and merchant power-supply manufacturers. Similarly, merchant power-supply manufacturers sell power supplies incorporating the Company’s products to a broad range of OEMs. Sales to distributors were $75.2 million and $66.4 million in the three months ended March 31, 2025 and 2024, 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:

	Three Months Ended
	March 31,
Customer	2025		2024
Avnet	32	%	29	%
Honestar Technologies Co., Ltd.	*		11	%

*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, 2025 and December 31, 2024, 86% and 87% of accounts receivable were concentrated with the Company’s top ten customers.

The following customers represented 10% or more of accounts receivable at March 31, 2025 and December 31, 2024:

	March 31,		December 31,
Customer	2025		2024
Avnet	37	%	32	%
Powertech Distribution Ltd.	10	%	*
Honestar Technologies Co., Ltd.	*		12	%
Salcomp Group	*		13	%

*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 by region and country with 5% or more of the Company’s revenue during any of the periods presented, based on “bill to” customer locations were as follows:

	Three Months Ended
	March 31,
(In thousands)	2025		2024
Americas:	$	5,717	$	5,005
EMEA:
Germany		6,116		5,889
Other EMEA		5,175		6,314
APAC:
Hong Kong/China		56,488		49,680
India		5,327		5,380
Korea		12,269		9,520
Taiwan		7,002		4,758
Other APAC		7,435		5,142
Total net revenues	$	105,529	$	91,688