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Note G - Significant Customers

9 Months Ended

Sep. 30, 2020

Significant Customers Disclosure [Text Block]

NOTE G—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.

The following table represents the Company’s sales, as a percentage of the Company’s total revenues, for the three and nine month periods ended September 30, 2020 and 2019, of the Company’s significant customers (unaudited):

	Three months ended September 30,						Nine months ended September 30,
	Unaudited
Major customers/ distributors	2020			2019			2020			2019
VTech Holdings Ltd.		23	%		19	%		21	%		21	%
Nexty Electronics ¹ ²		11	%		11	%		10	%		9	%
Ascend Technology Inc. ¹ ³		17	%		24	%		31	%		25	%

¹ Distributor.

² Nexty Electronics sells the Company’s products to a limited number of customers; one of those customers – Panasonic, accounted for 9% and 10% of the Company’s total revenues for the three month periods ended September 30, 2020 and 2019 respectively, and 9% and 8% of the Company’s total revenues for the nine month periods ended September 30, 2020 and 2019, respectively.

³ Ascend Technology sells the Company’s products to a limited number of customers; one of those customers - Cisco Systems – accounted for 1% and 8% of the Company’s total revenues for the three month periods ended September 30, 2020 and 2019, respectively, and 13% and 9% of the Company’s total revenues for the nine month periods ended September 30, 2020 and 2019, respectively.