Segments and Major Customers

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segments and Major Customers

Segments and Major Customers

For the three and six months ended June 30, 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 and six months ended June 30, 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 and six months ended June 30, 2014 and 2013, respectively.

	For the Three Months Ended June 30, 2014												For the Six Months Ended June 30, 2014
	MID		CRI		CTO			Other		Total			MID		CRI		CTO			Other		Total
	(In thousands)												(In thousands)
Revenues	$	58,664	$	12,771	$	—		$	5,083	$	76,518		$	119,820	$	25,674	$	—		$	9,312	$	154,806
Segment operating expenses	9,517		8,290		4,518			4,675		27,000			19,437		15,919		8,789			9,057		53,202
Segment operating income (loss)	$	49,147	$	4,481	$	(4,518	)	$	408	$	49,518		$	100,383	$	9,755	$	(8,789	)	$	255	$	101,604
Reconciling items										(29,414		)										(58,311		)
Operating income										$	20,104											$	43,293
Interest and other income (expense), net										(8,666		)										(18,579		)
Income before income taxes										$	11,438											$	24,714

	For the Three Months Ended June 30, 2013													For the Six Months Ended June 30, 2013
	MID		CRI		CTO			Other			Total			MID		CRI		CTO			Other			Total
	(In thousands)													(In thousands)
Revenues	$	49,456	$	7,914	$	—		$	549		$	57,919		$	109,131	$	14,797	$	—		$	857		$	124,785
Segment operating expenses	10,344		6,072		6,347			4,908			27,671			20,228		10,960		13,518			8,537			53,243
Segment operating income (loss)	$	39,112	$	1,842	$	(6,347	)	$	(4,359	)	$	30,248		$	88,903	$	3,837	$	(13,518	)	$	(7,680	)	$	71,542
Reconciling items											(24,504		)											(64,357		)
Operating income											$	5,744												$	7,185
Interest and other income (expense), net											(8,845		)											(16,177		)
Loss before income taxes											$	(3,101	)											$	(8,992	)

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.

Accounts receivable from the Company's major customers representing 10% or more of total accounts receivable at June 30, 2014 and December 31, 2013, respectively, was as follows:

Customer	June 30, 2014	December 31, 2013
Customer 1 (MID and CRI reportable segments)	68%	*
Customer 2 (Other reportable segment)	25%	74%

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

Revenue from the Company’s major customers representing 10% or more of total revenue for the three and six months ended June 30, 2014 and 2013, respectively, was as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Customer	2014		2013		2014		2013
Customer A (MID and CRI reportable segments)	20	%	39	%	19	%	36	%
Customer B (MID reportable segment)	15	%	*		15	%	*
Customer C (MID reportable segment)	13	%	*		13	%	*

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

Revenue from customers in the geographic regions based on the location of contracting parties is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2014		2013		2014		2013
South Korea	$	26,946	$	22,502	$	53,799	$	44,527
USA	27,898		15,106		56,572		40,675
Japan	7,388		12,261		16,643		26,869
Europe	4,276		5,432		12,839		7,560
Canada	1,787		1,862		3,611		3,648
Asia-Other	8,223		756		11,342		1,506
Total	$	76,518	$	57,919	$	154,806	$	124,785