Segment Information and Foreign Operations

6 Months Ended

Jun. 30, 2020

Segment Information and Foreign Operations

Segment Information and Foreign Operations

Note 11. Segment Information and Foreign Operations

Segment Information

We operate in one segment for the design, development, manufacture and distribution of high-performance compound and single element semiconductor substrates and sale of raw materials integral to these substrates. 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.

Product Information

The following table represents revenue amounts (in thousands) by product type:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Product Type:
Substrates	$	16,874	$	20,599	$	33,755	$	37,365
Raw Materials and Other		5,260		4,198		9,102		7,640
Total	$	22,134	$	24,797	$	42,857	$	45,005

Geographical Information

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Geographical region:
China	$	7,753	$	9,642	$	12,477	$	16,753
Taiwan		4,398		4,655		9,575		7,663
Japan		1,698		1,510		3,032		3,302
Asia Pacific (excluding China, Taiwan and Japan)		1,701		2,738		3,057		3,922
Europe (primarily Germany)		4,114		4,640		10,328		9,015
North America (primarily the United States)		2,470		1,612		4,388		4,350
Total	$	22,134	$	24,797	$	42,857	$	45,005

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

	As of
	June 30,		December 31,
	2020		2019
Long-lived assets by geographic region, net of depreciation:
North America	$	789	$	1,069
China		102,964		99,272
	$	103,753	$	100,341

Significant Customers

One customer, Landmark, represented 10% of our revenue for the three months ended June 30, 2020 while two customers, Haisi Optoelectronics and Landmark, represented 18% and 15%, respectively, of our revenue for the three months ended June 30, 2019. Our top five customers, although not the same five customers for each period, represented 30% and 48% of our revenue for the three months ended June 30, 2020 and 2019, respectively.

Two customers, Landmark and Osram Opto, represented 13% and 11%, respectively, of our revenue for the six months ended June 30, 2020 while two customers, Haisi Optoelectronics and Landmark, represented 15% and 13%, respectively, of our revenue for the six months ended June 30, 2019.  Our top five customers, although not the same five customers for each period, represented 39% and 43% of our revenue for the six months ended June 30, 2020 and 2019, 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. Two customers accounted for 13% and 12% of our accounts receivable balance as of June 30, 2020, and three customers accounted for 14%, 13% and 12% of our accounts receivable as of December 31, 2019.