Segment Information and Foreign Operations

9 Months Ended

Sep. 30, 2015

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) reported for products shipped to customers in the corresponding geographic region:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Geographical region:
Europe (primarily Germany)	$	4,385	$	5,429	$	14,992	$	16,980
Taiwan		4,131		3,835		10,654		8,735
China		3,296		4,298		10,154		13,423
Asia Pacific (excluding China, Taiwan and Japan)		2,750		3,537		8,277		8,376
Japan		1,939		3,511		7,176		9,281
North America (primarily the United States)		1,870		2,528		8,192		7,137
Total	$	18,371	$	23,138	$	59,445	$	63,932

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,
	2015		2014
Long-lived assets by geographic region:
North America	$	698	$	136
China		31,648		33,726
	$	32,346	$	33,862

Significant Customers

Two customers represented more than 10% of our revenue for the three months ended September 30, 2015 while no customer represented more than 10% of our revenue for the three months ended September 30, 2014. No customer represented more than 10% of our revenue for the nine months ended September 30, 2015 and 2014. Our top five customers, although not the same five customers for each period, represented 45% and 35% of our revenue for the three months ended September 30, 2015 and 2014, respectively. Our top five customers, although not the same five customers for each period, represented 39% and 35% of our revenue for the nine months ended September 30, 2015 and 2014, 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 accounts receivable balance as of September 30, 2015 while two customers accounted for 11% and 10%, respectively, of our accounts receivable balance as of December 31, 2014.