Quarterly report pursuant to Section 13 or 15(d)

Concentration of Credit Risk, Significant Customers and Geographic Information

v3.7.0.1
Concentration of Credit Risk, Significant Customers and Geographic Information
 6 Months Ended
Jun. 30, 2017
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 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 June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Percentage of total net revenue
 
 
 
 
 
 
 
Arris
26
%
 
29
%
 
29
%
 
26
%
Technicolor
*

 
10
%
 
*

 
14
%
WNC Corporation
*

 
*

 
*

 
11
%
____________________________
*
Represents less than 10% of the net revenue for the respective period.
Balances that are 10% or greater of accounts receivable, based on the Company's billings to the contract manufacturer customers, are as follows:
 
June 30,
 
December 31,
 
2017
 
2016
Percentage of gross accounts receivable
 
 
 
Pegatron Corporation
17
%
 
17
%
Sernet Technologies Corporation
*

 
15
%
WNC Corporation
*

 
12
%

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

Suppliers comprising greater than 10% of total inventory purchases are as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
United Microelectronics Corporation
19
%
 
16
%
 
21
%
 
15
%
Taiwan Semiconductor Manufacturing Company
16
%
 
12
%
 
18
%
 
*

Globalfoundries
10
%
 
11
%
 
13
%
 
16
%
Semiconductor Manufacturing International Corp
20
%
 
12
%
 
18
%
 
13
%
Advanced Semiconductor Engineering
15
%
 
11
%
 
13
%
 
11
%
Tower-Jazz Semiconductor
*

 
14
%
 
*

 
17
%

____________________________
*
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 June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
 
Amount
 
% of total net revenue
 
Amount
 
% of total net revenue
 
Amount
 
% of total net revenue
 
Amount
 
% of total net revenue
Asia
$
94,823

 
91
%
 
$
94,930

 
93
%
 
$
179,131

 
93
%
 
$
192,166

 
94
%
United States
2,095

 
2
%
 
2,356

 
2
%
 
2,240

 
1
%
 
5,072

 
2
%
Rest of world
7,257

 
7
%
 
4,401

 
4
%
 
11,645

 
6
%
 
7,134

 
4
%
Total
$
104,175

 
100
%
 
$
101,687

 
100
%
 
$
193,016

 
100
%
 
$
204,372

 
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 June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Percentage of total net revenue
 
 
 
 
 
 
 
China
73
%
 
84
%
 
75
%
 
84
%

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):
 
June 30,
 
December 31,
 
2017
 
2016
 
Amount
 
% of total
 
Amount
 
% of total
United States
$
511,666

 
83
%
 
$
111,336

 
55
%
Singapore
100,983

 
16
%
 
78,318

 
39
%
Rest of world
4,182

 
1
%
 
11,171

 
6
%
Total
$
616,831

 
100
%
 
$
200,825

 
100
%