Segments and Major Customers

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segments and Major Customers

Segments and Major Customers

For the three months ended March 31, 2014 and 2013, MID, CRI and CTO were reportable segments as each of them met the quantitative thresholds for disclosure as a reportable segment. The results of the remaining operating segment were shown under “Other.”

The Company evaluates the performance of its segments based on segment operating income (loss), which is defined as revenue minus segment operating expenses. Segment operating expenses are comprised of direct operating expenses.

Segment operating expenses do not include marketing, general and administrative expenses and the allocation of certain expenses managed at the corporate level, such as stock-based compensation, amortization, and certain bonus and acquisition costs. The “Reconciling Items” category includes these unallocated marketing, general and administrative expenses as well as corporate level expenses. The presentation of the three months ended March 31, 2013 segment data has been updated accordingly to conform with the 2014 segment operating income (loss) definition.

The tables below present reported segment operating income (loss) for the three months ended March 31, 2014 and 2013, respectively.

	For the Three Months Ended March 31, 2014
	MID		CRI		CTO			Other			Total
	(In thousands)
Revenues	$	61,156	$	12,903	$	—		$	4,229		$	78,288
Segment operating expenses	9,920		7,629		4,271			4,382			26,202
Segment operating income (loss)	$	51,236	$	5,274	$	(4,271	)	$	(153	)	$	52,086
Reconciling items											(28,897		)
Operating income											$	23,189
Interest and other income (expense), net											(9,913		)
Income before income taxes											$	13,276

	For the Three Months Ended March 31, 2013
	MID		CRI		CTO			Other			Total
	(In thousands)
Revenues	$	59,674	$	6,883	$	—		$	309		$	66,866
Segment operating expenses	9,884		4,888		7,171			3,629			25,572
Segment operating income (loss)	$	49,790	$	1,995	$	(7,171	)	$	(3,320	)	$	41,294
Reconciling items											(39,853		)
Operating income											$	1,441
Interest and other income (expense), net											(7,332		)
Loss before income taxes											$	(5,891	)

The Company’s CODM does not review information regarding assets on an operating segment basis. Additionally, the Company does not record intersegment revenue or expense.

Revenue from the Company’s major customers representing 10% or more of total revenue for the three months ended March 31, 2014 and 2013, respectively, was as follows:

	Three Months Ended
	March 31,
Customer	2014		2013
Customer A (MID and CRI reportable segments)	19	%	33	%
Customer B (MID reportable segment)	15	%	*
Customer C (MID reportable segment)	12	%	*
Customer D (MID reportable segment)	*		15	%
Customer E (MID reportable segment)	*		10	%

_________________________________________

*    Customer accounted for less than 10% of total revenue in the period

Revenue from customers in the geographic regions based on the location of customers' headquarters is as follows:

	Three Months Ended
	March 31,
(In thousands)	2014		2013
South Korea	$	26,853	$	22,025
USA	28,674		25,569
Japan	9,255		14,609
Europe	8,563		2,127
Canada	1,824		1,786
Asia-Other	3,119		750
Total	$	78,288	$	66,866