XML 60 R14.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 6 - Significant Customers
9 Months Ended
Sep. 30, 2015
Significant Customers Disclosure [Abstract]  
Significant Customers Disclosure [Text Block]

NOTE f—SIGNIFICANT CUSTOMERS


The Company sells its products primarily through distributors and directly to original equipment manufacturers (OEMs) and original design manufacturers (ODMs) who incorporate the Company’s products into consumer products. The Company’s future performance will depend, in part, on the continued success of its distributors in marketing and selling its products. The loss of the Company’s distributors and the Company’s inability to obtain satisfactory replacements in a timely manner may harm the Company’s sales and results of operations. In addition, the Company expects that a limited number of customers, varying in identity from period-to-period, will account for a substantial portion of its revenues in any period. The loss of, or reduced demand for products from, any of the Company’s major customers could have a material adverse effect on the Company’s business, financial condition and results of operations.


Sales to VTech Holdings Ltd. represented 32% and 34% of the Company’s total revenues for the three months ended September 30, 2015 and 2014, respectively.


Sales to VTech represented 31% and 36% of the Company’s total revenues for the nine months ended September 30, 2015 and 2014, respectively.


Sales to Guo Wei Electronics Ltd. ("Guo Wei Electronics") represented 11% and 6% of the Company’s total revenues for the three months ended September 30, 2015 and 2014, respectively.


Sales to Guo Wei Electronics represented 11% and 7% of the Company’s total revenues for the nine months ended September 30, 2015 and 2014, respectively.


Revenues derived from sales through the Company’s distributor, Ascend Technology Inc., ("Ascend Technology") accounted for 13% and 12% of the Company’s total revenues for the three months ended September 30, 2015 and 2014, respectively.


Revenues derived from sales through Ascend Technology accounted for 16% and 11% of the Company’s total revenues for the nine months ended September 30, 2015 and 2014, respectively.


Revenues derived from sales through the Company’s distributor, Tomen Electronics Corporation ("Tomen Electronics"), accounted for 18% and 22% of the Company’s total revenues for the three months ended September 30, 2015 and 2014, respectively, and 17% and 21% of the Company’s total revenues for the nine months period ended September 30, 2015 and 2014, respectively. The Japanese market and the OEMs that operate in that market are among the largest suppliers in the world with significant market share in the U.S. market for residential wireless products. Tomen Electronics sells the Company’s products to a limited number of customers. One customer, Panasonic Communications Co., Ltd. ("Panasonic"), has continually accounted for a majority of the sales of Tomen Electronics. Sales to Panasonic through Tomen Electronics generated approximately 15% and 17% of the Company’s total revenues for the three months ended September 30, 2015 and 2014, respectively, and 13% and 15% of the Company’s total revenues for the nine months period ended September 30, 2015 and 2014, respectively.