Segments and Major Customers

9 Months Ended

Sep. 30, 2019

Segment Reporting Disclosure [Text Block]

Segment Information

Operating segments are based upon Rambus’ internal organization structure, the manner in which its operations are managed, the criteria used by its CODM to evaluate segment performance and availability of separate financial information regularly reviewed for resource allocation and performance assessment.

The Company has determined its CODM to be the Chief Executive Officer (“CEO”). In line with the Company’s divestiture of its payment and ticketing businesses and its refocus on its semiconductor operations, commencing in the third quarter of 2019, the CEO reviews financial information presented on a consolidated basis for purposes of managing the business, allocating resources, making operating decisions and assessing financial performance. On this basis, the Company is organized and operates as a single segment: high-speed interface IP and chips, and embedded security within the semiconductor space. As of September 30, 2019, the Company has a single operating and reportable segment. Accordingly, no additional disclosure of segment measures of profit or loss or total assets is applicable for all periods presented. The Company has recast the prior period segment information to reflect the new segment structure.

Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable at September 30, 2019 and December 31, 2018, respectively, was as follows:



	As of
Customer	September 30, 2019		December 31, 2018
Customer 1	22	%	39	%
Customer 2	11	%	*
Customer 3	*		12	%

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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 nine months ended September 30, 2019 and 2018, respectively, was as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Customer	2019		2018		2019		2018
Customer A	14	%	*		15	%	*
Customer B	13	%	*		*		*
Customer C	*		*		10	%	*
Customer D	*		13	%	*		*
Customer E	*		*		*		11	%
Customer F	*		34	%	*		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 was as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2019		2018		2019		2018
Taiwan	$	4,186	$	3,962	$	19,047	$	20,419
South Korea	738		388		2,777		10,656
USA	33,218		37,899		97,421		78,983
Japan	3,419		3,889		8,565		20,201
Europe	2,846		4,156		8,861		11,628
Canada	896		820		3,377		4,115
Singapore	7,695		7,953		14,304		14,103
Asia-Other	4,401		687		9,728		2,533
Total	$	57,399	$	59,754	$	164,080	$	162,638