Annual report pursuant to Section 13 and 15(d)

Concentration of Credit Risk, Significant Customers and Geographic Information

v3.22.4
Concentration of Credit Risk, Significant Customers and Geographic Information
 12 Months Ended
Dec. 31, 2022
Risks and Uncertainties [Abstract]  
Concentration of Credit Risk, Significant Customers and Geographic Information Concentration of Credit Risk, Significant Customers and Geographic Information
Concentration of Credit Risk
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 sells its products both directly to customers and through third-party distributors, and also tracks sales to the ultimate end customer (Note 12). The Company makes periodic evaluations of the credit worthiness of its customers.
End customers comprising greater than 10% of net revenues for each of the periods presented are as follows:
Year Ended December 31,
2022 2021 2020
Percentage of total net revenue
Customer A 21  % 15  % 15  %
Customer B 10  % 11  % 13  %
The following table presents balances that are 10% or greater of accounts receivable, based on the Company’s billings to its customers.
December 31, December 31,
2022 2021
Percentage of gross accounts receivable
Customer B * 14  %
Customer C 11  % *
Customer D * 17  %
Customer E 28  % *
Customer F 12  % *
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*    Represents less than 10% of the gross accounts receivable as of the respective period end.
Significant Suppliers
Suppliers comprising greater than 10% of total inventory purchases are as follows:
Year Ended December 31,
2022 2021 2020
Vendor A 25  % 38  % 34  %
Vendor B 26  % 22  % 20  %
Vendor C 12  % 12  % *
Vendor D * * 11  %
* 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 (in thousands):
Year Ended December 31,
2022 2021 2020
Amount % of total net revenue Amount % of total net revenue Amount % of total net revenue
Asia $ 915,024  82  % $ 736,808  83  % $ 393,579  82  %
United States 40,077  3  % 35,978  4  % 15,501  3  %
Rest of world 165,151  15  % 119,612  13  % 69,516  15  %
Total $ 1,120,252  100  % $ 892,398  100  % $ 478,596  100  %
The products shipped to individual countries or territories representing greater than 10% of net revenue for each of the periods presented are as follows:
Year Ended December 31,
2022 2021 2020
Percentage of total net revenue
Hong Kong 43  % 40  % 42  %
China 16  % 12  % 17  %
Vietnam * 13  % *
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*    Represents less than 10% of total revenue for the respective period.
The determination of which country a particular sale is allocated to is based on the destination of the product shipment. No other individual country accounted for more than 10% of net revenue during these periods. Although a large percentage of the Company’s products is shipped to Asia, and in particular, Hong Kong, China and Vietnam, the Company believes that a significant number of the systems designed by customers and incorporating the Company’s semiconductor products are subsequently sold outside Asia to Europe, Middle East, and Africa, or EMEA markets and North American markets.
Long-lived assets, which consists of property and equipment, net, leased right-of-use assets, intangible assets, net, and goodwill by geographic area are as follows (in thousands):
December 31, December 31,
2022 2021
Amount % of total Amount % of total
United States $ 368,882  70  % $ 382,650  70  %
Singapore 109,613  21  % 122,474  22  %
Rest of world 45,093  9  % 42,277  8  %
Total $ 523,588  100  % $ 547,401  100  %