SEGMENT REPORTING

9 Months Ended

Sep. 30, 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 (loss). 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				Nine Months Ended
	September 30,				September 30,
(In thousands)	2025		2024		2025		2024
NET REVENUES	$	118,919	$	115,837	$	340,300	$	313,723
Less:
Stock-based compensation (1)		21,205		8,338		39,965		25,787
Amortization of acquisition-related intangible assets (2)		147		147		440		887
Cost of revenues (excluding 1 & 2)		53,404		52,023		151,054		143,803
Research and development (excluding 1)		23,846		22,832		68,492		65,794
Sales and marketing (excluding 1)		15,545		15,243		46,761		44,904
General and administrative (excluding 1)		8,000		5,672		22,292		18,538
Other operating expenses (excluding 1)		725		—		9,876		—
INCOME (LOSS) FROM OPERATIONS		(3,953)		11,582		1,420		14,010
OTHER INCOME		2,555		2,750		8,412		9,441
PROVISION (BENEFIT) FOR INCOME TAXES		(42)		41		1,029		357
NET INCOME (LOSS)	$	(1,356)	$	14,291	$	8,803	$	23,094

The table below presents other segment information:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2025		2024		2025		2024
Depreciation	$	6,542	$	8,454	$	20,788	$	25,560
Amortization of intangibles	$	208	$	208	$	623	$	1,071
Interest income	$	2,730	$	3,328	$	9,125	$	10,123