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SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES
9 Months Ended
Sep. 30, 2020
Risks and Uncertainties [Abstract]  
Concentration Risk Disclosure [Text Block] SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES:
Segment Reporting
The Company is organized and operates as one reportable segment, the design, development, manufacture and marketing of integrated circuits and related components for use primarily in the high-voltage power-conversion market. The Company’s chief operating decision maker, the Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance.
Customer Concentration
The Company's top ten customers accounted for approximately 65% and 56% of net revenues for the three and nine months ended September 30, 2020, respectively, and approximately 55% and 54%, respectively, in the corresponding periods of the previous year. A significant portion of these revenues are attributable to sales of the Company’s products to distributors of electronic components. These distributors sell the Company’s products to a broad, diverse range of end users, including original equipment manufacturers, or OEMs, and merchant power supply manufacturers. Sales to distributors were $85.3 million and $256.1 million in the three and nine months ended September 30, 2020, respectively, and $78.0 million and $222.7 million, respectively, for the corresponding periods of 2019. Direct sales to OEMs and power-supply manufacturers accounted for the remainder.
The following customers represented 10% or more of the Company’s net revenues for the respective periods:
Three Months EndedNine Months Ended
CustomerSeptember 30,
2020
September 30,
2019
September 30,
2020
September 30,
2019
Avnet18 %11 %14 %11 %
Honestar Technologies Co., Ltd.14 %***
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*Total customer revenue was less than 10% of net revenues.
No other customers accounted for 10% or more of the Company’s net revenues in the periods presented.
Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash investments and trade receivables. The Company does not have any off-balance-sheet credit exposure related to its customers. As of September 30, 2020, and December 31, 2019, 74% and 63%, respectively, of accounts receivable were concentrated with the Company’s top ten customers.
The following customers represented 10% or more of accounts receivable:
CustomerSeptember 30,
2020
December 31,
2019
Avnet29 %*
Powertech Distribution Ltd.10 %10 %
Honestar Technologies Co., Ltd.10 %*
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*Total customer accounts receivable was less than 10% of accounts receivable.
No other customers accounted for 10% or more of the Company’s accounts receivable in the periods presented.
Geographic Net Revenues
The Company markets its products globally through its sales personnel and a worldwide network of independent sales representatives and distributors. Geographic net revenues, based on “bill to” customer locations, for the three and nine months ended September 30, 2020, and September 30, 2019, were as follows:
Three Months EndedNine Months Ended
(In thousands)September 30,
2020
September 30,
2019
September 30,
2020
September 30,
2019
United States of America$2,380 $2,878 $8,028 $8,162 
Hong Kong/China76,549 64,526 202,642 171,110 
Taiwan4,133 10,410 17,811 27,246 
Korea12,121 7,177 29,762 22,621 
Western Europe (excluding Germany)7,535 9,220 25,565 28,746 
Japan4,303 4,753 12,606 11,312 
Germany5,755 4,921 17,169 13,661 
Other8,353 10,274 24,042 23,354 
Total net revenues$121,129 $114,159 $337,625 $306,212