Segments and Major Customers

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segments and Major Customers

Segments and Major Customers

For the three and nine months ended September 30, 2015, MID and CRD were reportable segments as each of them met the quantitative thresholds for disclosure as a reportable segment. The results of the remaining operating segments were shown under “Other.” Additionally, some employees moved departments in the fourth quarter of 2014 causing a change in the prior period reportable segment financial results. The presentation of the 2014 segment data has been updated accordingly to conform to the updated segment presentation.

The Company evaluates the performance of its segments based on segment operating income (loss), which is defined as revenue minus segment operating expenses. Segment operating expenses are comprised of direct operating expenses.

Segment operating expenses do not include sales, general and administrative expenses and the allocation of certain expenses managed at the corporate level, such as stock-based compensation, amortization, and certain bonus and acquisition costs. The “Reconciling Items” category includes these unallocated sales, general and administrative expenses as well as corporate level expenses.

The tables below present reported segment operating income (loss) for the three and nine months ended September 30, 2015 and 2014, respectively.

	For the Three Months Ended September 30, 2015										For the Nine Months Ended September 30, 2015
	MID		CRD		Other			Total			MID		CRD		Other			Total
	(In thousands)										(In thousands)
Revenues	$	55,383	$	12,246	$	6,150		$	73,779		$	164,696	$	36,849	$	17,960		$	219,505
Segment operating expenses	11,734		6,653		9,276			27,663			36,055		21,317		25,306			82,678
Segment operating income (loss)	$	43,649	$	5,593	$	(3,126	)	$	46,116		$	128,641	$	15,532	$	(7,346	)	$	136,827
Reconciling items								(28,476		)								(85,741		)
Operating income								$	17,640									$	51,086
Interest and other income (expense), net								(2,578		)								(8,417		)
Income before income taxes								$	15,062									$	42,669

	For the Three Months Ended September 30, 2014										For the Nine Months Ended September 30, 2014
	MID		CRD		Other			Total			MID		CRD		Other			Total
	(In thousands)										(In thousands)
Revenues	$	52,495	$	11,255	$	5,962		$	69,712		$	172,314	$	36,929	$	15,275		$	224,518
Segment operating expenses	10,337		7,356		9,793			27,486			28,655		21,076		27,640			77,371
Segment operating income (loss)	$	42,158	$	3,899	$	(3,831	)	$	42,226		$	143,659	$	15,853	$	(12,365	)	$	147,147
Reconciling items								(27,758		)								(89,386		)
Operating income								$	14,468									$	57,761
Interest and other income (expense), net								(3,608		)								(22,187		)
Income before income taxes								$	10,860									$	35,574

The Company’s CODM does not review information regarding assets on an operating segment basis. Additionally, the Company does not record intersegment revenue or expense.

Accounts receivable from the Company's major customers representing 10% or more of total accounts receivable at September 30, 2015 and December 31, 2014, respectively, was as follows:

	As of
Customer	September 30, 2015	December 31, 2014
Customer 1 (Other segment)	50%	50%
Customer 2 (CRD reportable segment)	37%	*
Customer 3 (MID reportable segment)	*	33%

_________________________________________

*    Customer accounted for less than 10% of total accounts receivable in the period

Revenue from the Company’s major customers representing 10% or more of total revenue for the three and nine months ended September 30, 2015 and 2014, respectively, was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Customer	2015		2014		2015		2014
Customer A (MID and CRD reportable segments)	20	%	22	%	21	%	20	%
Customer B (MID reportable segment)	21	%	17	%	18	%	16	%
Customer C (MID reportable segment)	13	%	14	%	13	%	13	%

Revenue from customers in the geographic regions based on the location of contracting parties was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2015		2014		2015		2014
South Korea	$	30,821	$	26,821	$	84,463	$	80,620
USA	33,146		24,950		90,530		81,522
Japan	3,460		6,497		19,866		23,140
Europe	1,571		4,238		8,287		17,077
Canada	6		1,754		207		5,365
Singapore	3,222		3,910		11,042		10,170
Asia-Other	1,553		1,542		5,110		6,624
Total	$	73,779	$	69,712	$	219,505	$	224,518