Segment Information and Net Sales

3 Months Ended

Mar. 31, 2019

NOTE 7 – Segment Information and Net Sales

Segment Reporting. For financial reporting purposes, we operate in a single segment, standard semiconductor products, through our various manufacturing and distribution facilities. We aggregate our products because the products are similar and have similar economic characteristics, use similar production processes and share the same customer type. Our primary operations include operations in Asia, North America and Europe. During the three months ended March 31, 2019, no customer accounted for 10% or more or our net sales. During the three months ended March 31, 2018, one customer, a broad-based global distributor that sells to thousands of different end users, accounted for 10.3% or $28.4 million of our net sales. This customer did not account for 10% or greater of our outstanding accounts receivable at March 31, 2018.

The tables below set forth net sales based on the location of the subsidiary producing the net sale.

Three Months Ended
March 31, 2019	Asia			North America			Europe			Consolidated
Total sales	$	273,900		$	101,280		$	51,052		$	426,232
Intercompany elimination		(73,597	)		(37,916	)		(12,426	)		(123,939	)
Net sales	$	200,303		$	63,364		$	38,626		$	302,293

Three Months Ended
March 31, 2018	Asia			North America			Europe			Consolidated
Total sales	$	244,530		$	26,836		$	49,998		$	321,364
Intercompany elimination		(31,827	)		(1,145	)		(13,880	)		(46,852	)
Net sales	$	212,703		$	25,691		$	36,118		$	274,512

Disaggregation of Net sales. We disaggregate net sales from contracts with customers into direct sales and distribution sales (“Distributors”) and by geographic area. Direct sales customers consist of those customers using our product in their manufacturing process, and Distributors are those customers who resell our products to third parties. We sell our products to customers in multiple areas of the world including Asia, Europe, and North America. Across these regions, we sell products to end users in a variety of markets such as consumer electronics, computing, communications, industrial and automotive. Further, most of our contracts are fixed-price arrangements, and are short term in nature, ranging from days to several months.

The tables below set forth the amount of net sales by type (direct sales or Distributor) and the location of the customer based on the location to where the products were shipped for the three months ended March 31, 2019 and 2018:

	Net Sales for the Three Months Ended March 31,
	Direct Sales		Distributor
	2019	2018	2019	2018
China	$52,224	$49,325	$99,325	$98,866
U.S.	3,233	3,685	30,498	21,100
Korea	5,138	4,077	8,160	8,885
Germany	3,028	3,105	17,516	21,605
Singapore	212	288	15,936	15,830
Taiwan	483	856	22,664	19,193
All others ⁽¹⁾	22,258	15,320	21,618	12,377
Total	$86,576	$76,656	$215,717	$197,856

	Percent of Net Sales by Type for the Three Months Ended March 31,
	Direct Sales		Distributor
	2019	2018	2019	2018
China	60%	64%	46%	50%
U.S.	4%	5%	14%	11%
Korea	6%	5%	4%	4%
Germany	4%	4%	8%	11%
Singapore	—	—	7%	8%
Taiwan	1%	1%	11%	10%
All others ⁽¹⁾	25%	21%	10%	6%
Total	100%	100%	100%	100%

	Total Net Sales for the Three Months Ended March 31,
	Dollars		Percent of Net Sales
	2019	2018	2019	2018
China	$151,549	$148,191	50%	54%
U.S.	33,731	24,785	11%	9%
Korea	13,298	12,962	4%	5%
Germany	20,544	24,710	7%	9%
Singapore	16,148	16,118	5%	6%
Taiwan	23,147	20,049	8%	7%
All others ⁽¹⁾	43,876	27,697	15%	10%
Total	$302,293	$274,512	100%	100%

(1)	Represents countries with less than 3% of the total net sales each.