Quarterly report pursuant to Section 13 or 15(d)

Significant Customer and Geographic Information

v3.4.0.3
Significant Customer and Geographic Information
3 Months Ended
Mar. 31, 2016
Risks and Uncertainties [Abstract]  
Significant Customer and Geographic Information
Concentration of Credit Risk and Significant Customers
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents and accounts receivable. 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.
The Company markets its products and services to manufacturers of wired and wireless communications equipment throughout the world. The Company makes periodic evaluations of the credit worthiness of its customers and does not require collateral for credit sales.
Customers greater than 10% of net revenues for each of the periods presented are as follows:
 
Three Months Ended March 31,
 
2016
 
2015
Percentage of total net revenue
 
 
 
Arris
24
%
 
29
%
Cisco(1)
18
%
 
14
%
WNC Corporation
14
%
 
*

                                        
* Represents less than 10% of the net revenue for the respective period.
(1) In November 2015, Technicolor completed its purchase of Cisco’s connected devices business. In the three months ended March 31, 2015, the revenue percentage above does not include the 2% revenue from Technicolor.
Products shipped to international destinations representing greater than 10% of net revenue for each of the periods presented are as follows:
 
Three Months Ended March 31,
 
2016
 
2015
Percentage of total net revenue
 
 
 
China
81
%
 
71
%

The determination of which country a particular sale is allocated to is based on the destination of the product shipment.
Balances greater than 10% of accounts receivable are as follows:
 
March 31,
 
December 31,
 
2016
 
2015
Percentage of gross accounts receivable
 
 
 
WNC Corporation
19
%
 
16
%
Pegatron Corporation
16
%
 
17
%
Sernet Technologies Corporation
13
%
 
14
%
MTI Jupiter Technologies
*

 
13
%
                                        
* Represents less than 10% of the gross accounts receivable for the respective period end.