v3.25.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment And Geographic Information
17. SEGMENT AND GEOGRAPHIC INFORMATION
The Company is the global leader and pioneer in developing NAND flash controllers for solid state storage devices. The Company currently operates as one reportable segment. The Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer, who is directly involved in the Company’s operations and product development. The CODM is ultimately responsible for and actively involved in the allocation of resources and the assessment of the Company’s performance using consolidated net income reported on the consolidated statements of income, supplemented by revenue information disaggregated by geographic region and target customers. The measure of segment assets is reported on the balance sheet as total consolidated assets. The Company’s organizational structure is functionally aligned with department heads and shared resources reporting directly to the CODM. The Company employs a highly integrated product development approach, with proprietary technologies utilized across multiple products and substantially all integrated circuits manufactured using similar processes. As a result, the Company operates as a single operating segment.
The
following table presents selected financial information, including significant expenses and other expense information provided to CODM, with respect to the Company’s
single
operating segment for the years ended December 31, 2022, 2023 and 2024:
 
    
2022
     
2023
     
2024
  
    
US$
     
US$
     
US$
  
Net sales
      945,921        639,142        803,552  
Less:
         
Product costs
(1)
      473,977        364,405        430,784  
Stock-compensation and related payroll expense
      170,305        142,156        154,831  
Integrated Circuit design related costs
      43,950        46,429        73,263  
Depreciation and amortization
      18,931        21,810        25,331  
Income tax expense
      40,068        8,175        18,160  
Dispute related expenses
      390        6,973        14,385  
Other operating expenses
(2)
      24,443        17,490        14,069  
Interest income
      (2,707 )       (12,246 )       (14,528 ) 
Other segment items
(3)
      4,054        (8,923 )       (1,992 ) 
  
 
 
     
 
 
     
 
 
  
Net income
      172,510        52,873        89,249  
  
 
 
     
 
 
     
 
 
  
 
(1)
Product costs primarily include material, labor and other product related costs, excluding the other categories
below
.
(2)
Other operating expenses primarily include facilities expenses, sales promotion expenses, professional service expense and other expenses.
(3)
Other segment items primarily include unrealized holding gain on investment, gain from disposal of long-term investment, foreign exchange gain or loss, interest expense and other income, net as reported in our consolidated statements of income.
This expense information reflects management’s internal classification used to assess financial and operational performance and may not align with classifications used by peer companies. As a result, this expense information should not be considered in isolation or as substitute for analysis of the Company’s results in conjunction with the accompanying consolidated financial statements and notes
thereto.
Long-lived assets (property and equipment, net) by geographic area are as follows:
 
    
Year Ended December 31
  
    
2022
     
2023
     
2024
  
    
US$
     
US$
     
US$
  
Taiwan
      127,733        155,334        177,335  
China
      11,028        11,118        10,369  
Others
      673        965        694  
  
 
 
     
 
 
     
 
 
  
     139,434        167,417        188,398  
  
 
 
     
 
 
     
 
 
  
The Company groups its products into two categories, based on the markets in which they may be used. The following summarizes the Company’s revenue by product category:
 
    
Year Ended December 31
  
    
2022
     
2023
     
2024
  
    
US$
     
US$
     
US$
  
Mobile Storage
      926,760        632,813        796,365  
Others
      19,161        6,329        7,187  
  
 
 
     
 
 
     
 
 
  
     945,921        639,142        803,552  
  
 
 
     
 
 
     
 
 
  
 
Revenue is attributed to a geographic area based on the
bill-to
location and is summarized as follows:
 
    
Year Ended December 31
  
    
2022
     
2023
     
2024
  
    
US$
     
US$
     
US$
  
Taiwan
      156,205        74,284        58,114  
United States
      128,844        55,504        13,019  
Korea
      113,757        48,633        73,057  
China
      248,301        229,037        331,664  
Malaysia
      26,375        1,736        3,587  
Singapore
      141,383        127,642        144,595  
Others
      131,056        102,306        179,516  
  
 
 
     
 
 
     
 
 
  
     945,921        639,142        803,552  
  
 
 
     
 
 
     
 
 
  
Major customers representing at least 10% of net sales are as follows:
 
    
Year Ended December 31
  
    
2022
     
2023
     
2024
  
    
US$
     
%
     
US$
     
%
     
US$
     
%
  
Micron
      235,934        25        144,011        22        151,780        19  
Kioxia
      *        *        *        *        119,727        15  
SK Hynix
      191,873        20        75,836        12     
*
        *  
PHISEMI
      *        *        *        *        107,407        13  
AFASTOR
      *        *        70,046        11        82,678        10  
 
*
Less than 10%