Segments and Major Customers

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segments and Major Customers

Segments and Major Customers

For the three months ended March 31, 2017, MID and RSD 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.”

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 months ended March 31, 2017 and 2016, respectively.

	For the Three Months Ended March 31, 2017
	MID		RSD		Other			Total
	(In thousands)
Revenues	$	70,595	$	23,205	$	3,551		$	97,351
Segment operating expenses	20,255		12,399		8,735			41,389
Segment operating income (loss)	$	50,340	$	10,806	$	(5,184	)	$	55,962
Reconciling items								(42,528		)
Operating income								$	13,434
Interest and other income (expense), net								(3,052		)
Income before income taxes								$	10,382

	For the Three Months Ended March 31, 2016
	MID		RSD		Other			Total
	(In thousands)
Revenues	$	53,545	$	14,101	$	5,036		$	72,682
Segment operating expenses	12,043		11,910		7,126			31,079
Segment operating income (loss)	$	41,502	$	2,191	$	(2,090	)	$	41,603
Reconciling items								(32,309		)
Operating income								$	9,294
Interest and other income (expense), net								(2,899		)
Income before income taxes								$	6,395

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 March 31, 2017 and December 31, 2016, respectively, was as follows:

	As of
Customer	March 31, 2017		December 31, 2016
Customer 1 (RSD reportable segment)	*		17	%
Customer 2 (Other segment)	10	%	12	%
Customer 3 (MID reportable segment)	14	%	13	%

_________________________________________

*    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 months ended March 31, 2017 and 2016, respectively, was as follows:

	Three Months Ended
	March 31,
Customer	2017		2016
Customer A (MID and RSD reportable segments)	17	%	21	%
Customer B (MID reportable segment)	13	%	22	%
Customer C (MID reportable segment)	14	%	13	%

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

	Three Months Ended
	March 31,
(In thousands)	2017		2016
South Korea	$	28,969	$	31,454
USA	38,438		25,265
Japan	6,518		4,987
Europe	4,438		3,793
Canada	1,068		214
Singapore	7,747		4,619
Asia-Other	10,173		2,350
Total	$	97,351	$	72,682