Quarterly report pursuant to Section 13 or 15(d)

Concentration of Credit Risk, Significant Customers and Geographic Information

v3.23.3
Concentration of Credit Risk, Significant Customers and Geographic Information
 9 Months Ended
Sep. 30, 2023
Risks and Uncertainties [Abstract]  
Concentration of Credit Risk, Significant Customers and Geographic Information Concentration of Credit Risk, Significant Customers and Geographic Information
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 end-customers and through third-party distributors, both of which are referred to as the Company’s customers (Note 12). The Company makes periodic evaluations of the credit worthiness of its customers.
Customers comprising 10% or greater of net revenues for each of the periods presented are as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Percentage of total net revenue
Customer A * 31  % * 22  %
Customer B 11  % * 11  % *
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*    Represents less than 10% of net revenues for the period presented.
The following table presents balances that are 10% or greater of accounts receivable, based on the Company’s billings to its customers.
September 30, December 31,
2023 2022
Percentage of gross accounts receivable
Customer C * 11  %
Customer D 26  % 12  %
Customer E 13  % 28  %
Customer F 17  % *
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*    Represents less than 10% of the gross accounts receivable as of the respective period end.
Significant Suppliers
Suppliers comprising 10% or greater of total inventory purchases are as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Vendor A 28  % 24  % 21  % 27  %
Vendor B 17  % 26  % 24  % 25  %
Vendor C 14  % 13  % 10  % 13  %
Vendor D * * 10  % *
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*    Represents less than 10% of total inventory purchases for the period presented.
Geographic Information
The Company’s consolidated net revenues by geographic area based on ship-to location are as follows (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Amount % of total net revenue Amount % of total net revenue Amount % of total net revenue Amount % of total net revenue
Asia $ 98,647  73  % $ 235,032  82  % $ 419,478  74  % $ 674,352  81  %
Europe 24,886  18  % 36,818  13  % 110,058  19  % 113,792  14  %
United States 8,757  7  % 10,991  4  % 29,847  5  % 29,543  4  %
Rest of world 3,240  2  % 2,889  1  % 8,527  2  % 11,979  1  %
Total $ 135,530  100  % $ 285,730  100  % $ 567,910  100  % $ 829,666  100  %
The products shipped to individual countries or territories representing 10% or greater of net revenue for each of the periods presented are as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Percentage of total net revenue
Hong Kong 41  % 51  % 34  % 43  %
China * 14  % 12  % 16  %
Taiwan, ROC 10  % * * *
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*    Represents less than 10% of net revenues for the period presented.
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 10% or greater of net revenue during these periods. Although a large percentage of the Company’s products is shipped to Asia, and in particular, Hong Kong, mainland China, and Taiwan, 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 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):
September 30, December 31,
2023 2022
Amount % of total Amount % of total
United States $ 365,607  73  % $ 368,882  70  %
Singapore 97,926  19  % 109,613  21  %
Rest of world 39,697  8  % 45,093  9  %
Total $ 503,230  100  % $ 523,588  100  %