Quarterly report pursuant to Section 13 or 15(d)

Concentration of Credit Risk, Significant Customers and Geographic Information

v3.10.0.1
Concentration of Credit Risk, Significant Customers and Geographic Information
 9 Months Ended
Sep. 30, 2018
Risks and Uncertainties [Abstract]  
Concentration of Credit Risk, Significant Customers and Geographic Information
Concentration of Credit Risk, Significant Customers and Revenue by Geographic Region
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents and accounts receivable. Collateral is generally not required for customer receivables. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. At times, such deposits may be in excess of insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents.

Significant Customers

The Company markets its products and services to manufacturers of a wide range of electronic devices (Note 1). The Company makes periodic evaluations of the credit worthiness of its customers.

Customers comprising greater than 10% of net revenues for each of the periods presented are as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Percentage of total net revenue
 
 
 
 
 
 
 
Customer A
*
 
26
%
 
21
%
 
27
%

Balances that are 10% or greater of accounts receivable, based on the Company's billings to the contract manufacturer customers, are as follows:
 
September 30,
 
December 31,
 
2018
 
2017
Percentage of gross accounts receivable
 
 
 
Customer A
*
 
17
%
Customer B
*
 
10
%

____________________________
*
Represents less than 10% of the gross accounts receivable as of the respective period end.

Suppliers comprising greater than 10% of total inventory purchases are as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Vendor A
12
%
 
21
%
 
19
%
 
21
%
Vendor B
24
%
 
11
%
 
19
%
 
15
%
Vendor C
13
%
 
16
%
 
15
%
 
14
%
Vendor D
11
%
 
11
%
 
12
%
 
12
%
Vendor E
*

 
*

 
*

 
15
%

____________________________
*
Represents less than 10% of the inventory purchases for the respective period.

Geographic Information

The Company's consolidated net revenues by geographic area based on ship-to location are as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
Amount
 
% of total net revenue
 
Amount
 
% of total net revenue
 
Amount
 
% of total net revenue
 
Amount
 
% of total net revenue
Asia
$
68,750

 
81
%
 
$
97,236

 
86
%
 
$
240,853

 
81
%
 
$
276,367

 
90
%
United States
4,474

 
5
%
 
3,714

 
3
%
 
14,305

 
5
%
 
5,954

 
2
%
Rest of world
11,786

 
14
%
 
12,631

 
11
%
 
42,212

 
14
%
 
24,276

 
8
%
Total
$
85,010

 
100
%
 
$
113,581

 
100
%
 
$
297,370

 
100
%
 
$
306,597

 
100
%


The products shipped to individual countries representing greater than 10% of net revenue for each of the periods presented are as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Percentage of total net revenue
 
 
 
 
 
 
 
China
61
%
 
68
%
 
62
%
 
72
%

The determination of which country a particular sale is allocated to is based on the destination of the product shipment. No other individual country in Asia Pacific, United States, or the rest of the world accounted for more than 10% of net revenue during these periods.
Long-lived assets, which consists of property and equipment, net, intangible assets, net, and goodwill by geographic area are as follows (in thousands):
 
September 30,
 
December 31,
 
2018
 
2017
 
Amount
 
% of total
 
Amount
 
% of total
United States
$
440,041

 
85
%
 
$
481,638

 
84
%
Singapore
76,853

 
14
%
 
92,414

 
16
%
Rest of world
2,662

 
1
%
 
1,643

 
—
%
Total
$
519,556

 
100
%
 
$
575,695

 
100
%