Segments and Major Customers

For the three and nine months ended September 30, 2017, MID and RSD were reportable segments as each of them met the quantitative thresholds for disclosure as a reportable segment. The results of the remaining operating segments 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 sales, 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 sales, general and administrative expenses as well as corporate level expenses.

The tables below present reported segment operating income (loss) for the three and nine months ended September 30, 2017 and 2016, respectively.



	For the Three Months Ended September 30, 2017										For the Nine Months Ended September 30, 2017
	MID		RSD		Other			Total			MID		RSD		Other			Total
	(In thousands)										(In thousands)
Revenues	$	68,787	$	26,312	$	4,035		$	99,134		$	206,784	$	72,883	$	11,538		$	291,205
Segment operating expenses	21,130		11,796		7,802			40,728			65,187		36,409		25,191			126,787
Segment operating income (loss)	$	47,657	$	14,516	$	(3,767	)	$	58,406		$	141,597	$	36,474	$	(13,653	)	$	164,418
Reconciling items								(41,396		)								(125,730		)
Operating income								$	17,010									$	38,688
Interest and other income (expense), net								(3,079		)								(9,263		)
Income before income taxes								$	13,931									$	29,425



	For the Three Months Ended September 30, 2016										For the Nine Months Ended September 30, 2016
	MID		RSD		Other			Total			MID		RSD		Other			Total
	(In thousands)										(In thousands)
Revenues	$	63,142	$	22,532	$	4,181		$	89,855		$	171,154	$	53,040	$	14,844		$	239,038
Segment operating expenses	20,060		12,493		6,840			39,393			44,797		37,507		21,594			103,898
Segment operating income (loss)	$	43,082	$	10,039	$	(2,659	)	$	50,462		$	126,357	$	15,533	$	(6,750	)	$	135,140
Reconciling items								(38,646		)								(102,022		)
Operating income								$	11,816									$	33,118
Interest and other income (expense), net								(3,051		)								(7,975		)
Income before income taxes								$	8,765									$	25,143

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 September 30, 2017 and December 31, 2016, respectively, was as follows:



	As of
Customer	September 30, 2017		December 31, 2016
Customer 1 (RSD reportable segment)	*		17	%
Customer 2 (Other segment)	*		12	%
Customer 3 (MID reportable segment)	12	%	13	%
Customer 4 (MID reportable segment)	19	%	*
Customer 5 (MID reportable segment)	10	%	*

_________________________________________

* 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 nine months ended September 30, 2017 and 2016, respectively, was as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Customer	2017		2016		2017		2016
Customer A (MID and RSD reportable segments)	18	%	17	%	17	%	20	%
Customer B (MID reportable segment)	12	%	19	%	13	%	20	%
Customer C (MID reportable segment)	13	%	13	%	13	%	13	%

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



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2017		2016		2017		2016
South Korea	$	29,476	$	32,519	$	86,736	$	95,604
USA	43,532		32,951		123,115		84,835
Japan	4,933		9,551		18,508		20,449
Europe	9,160		4,271		17,850		12,362
Canada	933		1,162		3,353		2,544
Singapore	4,927		4,429		17,563		13,574
Asia-Other	6,173		4,972		24,080		9,670
Total	$	99,134	$	89,855	$	291,205	$	239,038