Quarterly report pursuant to Section 13 or 15(d)

Concentration of Credit Risk, Significant Customers and Geographic Information

v3.20.1
Concentration of Credit Risk, Significant Customers and Geographic Information
 3 Months Ended
Mar. 31, 2020
Risks and Uncertainties [Abstract]  
Concentration of Credit Risk, Significant Customers and Geographic Information Concentration of Credit Risk, Significant Customers and Revenue by Geographic Region
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, both of which are referred to as the Company’s customers (Note 11). 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 March 31,
2020 2019
Percentage of total net revenue
Customer A (distributor) 18  % *   
Customer B (direct) 10  % 12  %
____________________________
* Represents less than 10% of total 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:
March 31, December 31,
2020 2019
Percentage of gross accounts receivable
Customer A (distributor) 19  % *   
Customer C (distributor) 11  % 10  %
____________________________
* 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:
Three Months Ended March 31,
2020 2019
Vendor A 19  % *   
Vendor B 18  % 13  %
Vendor C 17  % *   
Vendor D 16  % 14  %
Vendor E *    19  %
Geographic Information

The Company’s consolidated net revenues by geographic area based on ship-to location are as follows (in thousands):
Three Months Ended March 31,
2020 2019
Amount % of total net revenue Amount % of total net revenue
Asia $ 52,035    84  % $ 71,548    85  %
United States 1,616    3  % 4,352    5  %
Rest of world 8,376    13  % 8,735    10  %
Total $ 62,027    100  % $ 84,635    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:
Three Months Ended March 31,
2020 2019
Percentage of total net revenue
Hong Kong 50  % 45  %
China *    22  %
____________________________
* 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 and China, 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):
March 31, December 31,
2020 2019
Amount % of total Amount % of total
United States $ 371,947    85  % $ 385,302    85  %
Singapore 61,321    14  % 63,556    14  %
Rest of world 4,247    1  % 5,034    1  %
Total $ 437,515    100  % $ 453,892    100  %