SEGMENT REPORTING

3 Months Ended

Mar. 31, 2025

SEGMENT REPORTING

SEGMENT REPORTING

12. 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 on net income of the significant segment expenses in the table below 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:

	Three Months Ended
	March 31,
(In thousands)	2025		2024
NET REVENUES	$	105,529	$	91,688
Less:
Stock-based compensation (1)		8,683		6,414
Amortization of acquisition-related intangible assets (2)		147		482
Cost of revenues (excluding 1 & 2)		46,490		43,080
Research and development (excluding 1)		21,845		20,800
Sales and marketing (excluding 1)		14,789		14,118
General and administrative (excluding 1)		6,857		6,324
INCOME FROM OPERATIONS		6,718		470
OTHER INCOME		3,167		3,502
PROVISION FOR INCOME TAXES		1,095		18
NET INCOME	$	8,790	$	3,954

The table below presents other segment information:

	Three Months Ended
	March 31,
(In thousands)	2025		2024
Depreciation	$	7,244	$	8,715
Amortization of intangibles	$	207	$	543
Interest income	$	3,360	$	3,486