Segment Information and Foreign Operations

9 Months Ended

Sep. 30, 2014

Segment Information and Foreign Operations [Abstract]

Segment Information and Foreign Operations

Note 10. Segment Information and Foreign Operations

Segment Information

We operate in one segment for the design, development, manufacture and distribution of high-performance compound semiconductor substrates and sale of materials. In accordance with ASC topic 280, Segment Reporting, our chief operating decision-maker has been identified as our Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the Company. Since we operate in one segment, all financial segment and product line information can be found in the condensed consolidated financial statements.

The following table represents revenue amounts (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
Revenue	$	23,138	$	20,521	$	63,932	$	66,732

The following table represents revenue amounts (in thousands) reported for products shipped to customers in the corresponding geographic region:

	Three Months Ended				Nine Months Ended
	September 30,				September 30
	2014		2013		2014		2013
Geographical region:
Europe (primarily Germany)	$	5,429	$	5,732	$	16,980	$	16,043
China		4,298		6,611		13,423		20,344
Taiwan		3,835		1,536		8,735		8,474
Japan		3,511		1,931		9,281		7,233
Asia Pacific (excluding China, Taiwan and Japan)		3,537		2,413		8,376		6,828
North America (primarily the United States)		2,528		2,298		7,137		7,810
Total	$	23,138	$	20,521	$	63,932	$	66,732

 Long-lived assets consist primarily of property, plant and equipment, and are attributed to the geographic location in which they are located. Long-lived assets by geographic region were as follows (in thousands):

	As of
	September 30,		December 31,
	2014		2013
North America	$	255	$	204
China		34,408		37,417
	$	34,663	$	37,621

Significant Customers

No customer represented more than 10% of our revenue for the three months ended September 30, 2014 and 2013. No customer represented more than 10% of our revenue for the nine months ended September 30, 2014 and 2013. Our top five customers, although not the same five customers for each period, represented 35% and 37% of our revenue for the three months ended September 30, 2014 and 2013, respectively. Our top five customers, although not the same five customers for each period, represented 35% and 31% of our revenue for the nine months ended September 30, 2014 and 2013, respectively.

We perform ongoing credit evaluations of our customers’ financial condition, and limit the amount of credit extended when deemed necessary, but generally do not require collateral. One customer accounted for over 10% of our trade accounts receivable balance as of September 30, 2014 while one customer accounted for 20% of our trade accounts receivable balance as of December 31, 2013.