Quarterly report pursuant to Section 13 or 15(d)

Significant Customer and Geographic Information

v3.5.0.2
Significant Customer and Geographic Information
 9 Months Ended
Sep. 30, 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.
Net revenues greater than 10% to end customers for each of the periods presented are as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Percentage of net revenue
 
 
 
 
 
 
 
Arris(1)
28
%
 
30
%
 
27
%
 
30
%
Technicolor(2)
*

 
*

 
11
%
 
*

WNC Corporation
*

 
11
%
 
*

 
*

Cisco(2)
N/A

 
10
%
 
N/A

 
13
%
                                        
*
Represents less than 10% of the net revenue for the respective period.
(1)
In January 2016, Arris completed its acquisition of Pace. The revenue percentage attributed to Arris includes sales made to Pace in the three and nine months ended September 30, 2016.
(2)
In November 2015, Technicolor completed its purchase of Cisco’s connected devices business. Prior to Technicolor's purchase of Cisco, Cisco was a significant customer in the three and nine months ended September 30, 2015.
Products shipped to international destinations 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,
 
2016
 
2015
 
2016
 
2015
Percentage of net revenue
 
 
 
 
 
 
 
China
73
%
 
65
%
 
81
%
 
61
%

The determination of which country a particular sale is allocated to is based on the destination of the product shipment.
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,
 
2016
 
2015
Percentage of gross accounts receivable
 
 
 
WNC Corporation
10
%
 
16
%
Pegatron Corporation
17
%
 
17
%
Sernet Technologies Corporation
*

 
14
%
MTI Jupiter Technologies
*

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