SEGMENT AND GEOGRAPHIC INFORMATION

9 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

SIGNIFICANT CUSTOMERS, CONCENTRATION OF CREDIT RISK AND GEOGRAPHIC INFORMATION

We manage and operate our business through one operating segment.

Net revenues from customers that were equal to or greater than 10% of total net revenues are as follows:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2014		2013		2014		2013
Tellabs	*		10.3	%	*		*
WPG Holdings**	26.6	%	19.2	%	24.5	%	16.4	%

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*Less than 10% of total net revenues for period indicated.

**Distributor

Financial instruments, which potentially subject us to concentrations of credit risk, consist principally of cash and accounts receivable. Cash consists of demand deposits maintained with several financial institutions, which often exceed Federal Deposit Insurance Corporation limits of $250,000. We have never experienced any losses related to these balances; however, our balances are significantly in excess of insured limits.

At June 30, 2014, there was one customer that accounted for 16.8% of accounts receivable. At September 30, 2013, there were two customers that accounted for 23.8% of accounts receivable. We believe that this concentration and the concentration of credit risk resulting from trade receivables owing from high-technology industry customers is substantially mitigated by our credit evaluation process, relatively short collection periods and maintaining an allowance for anticipated losses. We generally do not require collateral security for outstanding amounts.

Net revenues by geographic area are as follows:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2014		2013		2014		2013
	(in thousands)
United States	$	5,936	$	5,590	$	17,356	$	23,693
Asia Pacific	17,606		16,856		52,272		42,957
Europe, Middle East and Africa	3,609		3,972		10,198		10,248
Total net revenues	$	27,151	$	26,418	$	79,826	$	76,898

Revenues by geographic area are based upon the country of billing. The geographic location of distributors and third-party manufacturing service providers may be different from the geographic location of the ultimate end users.

We believe a substantial portion of the products billed to original equipment manufacturers (“OEMs”) and third-party manufacturing service providers in the Asia Pacific region are ultimately shipped to end-markets in the United States and Europe.

We also classify our product revenues based on our three product lines: (i) Connectivity; (ii) Ethernet switching; and (iii) Transport processing. Product revenues by product line are as follows:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2014		2013		2014		2013
	(in thousands)
Connectivity	$	10,132	$	12,199	$	29,556	32,172
Ethernet switching	14,001		9,541		36,955		28,178
Transport processing	1,879		4,545		9,233		14,529
Product revenues	$	26,012	$	26,285	$	75,744	$	74,879