v3.26.1
Segments and Major Customers
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segments and Major Customers

7. Segments and Major Customers

Operating segments are based upon the Company’s internal organization structure, the manner in which its operations are managed, the criteria used by its Chief Operating Decision Maker (“CODM”) to evaluate segment performance and availability of separate financial information regularly reviewed for resource allocation and performance assessment.

The Company has determined its CODM to be the Chief Executive Officer (“CEO”). The CEO reviews financial information presented on a consolidated basis for purposes of managing the business, allocating resources, making operating decisions and assessing financial performance. On this basis, the Company is organized and operates as a single segment within the semiconductor space. As of June 30, 2026, the Company has a single operating and reportable segment.

The CODM uses net income to assess segment performance, allocate resources and manage the business on a consolidated basis. The significant expenses for the segment exclude certain non-cash adjustments and non-recurring items, and are used to monitor budget versus actual results and to analyze the period-over-period comparisons.

The significant expenses that are regularly provided to the CODM and reconciliations to the consolidated net income for the three and six months ended June 30, 2026 and 2025, respectively, were as follows:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(In thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Total revenue

 

$

207,385

 

 

$

172,209

 

 

$

387,574

 

 

$

338,873

 

Adjusted cost of revenue (1)

 

 

(40,165

)

 

 

(32,822

)

 

 

(74,883

)

 

 

(63,789

)

Adjusted research and development (2)

 

 

(45,036

)

 

 

(40,891

)

 

 

(90,011

)

 

 

(78,980

)

Adjusted sales, general and administrative (3)

 

 

(28,523

)

 

 

(19,465

)

 

 

(53,403

)

 

 

(40,812

)

Other segment items:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expenses (4)

 

 

(15,886

)

 

 

(14,233

)

 

 

(27,339

)

 

 

(25,616

)

Restructuring charges (6)

 

 

(3,320

)

 

 

—

 

 

 

(3,320

)

 

 

—

 

Amortization of acquired intangible assets (4)

 

 

(1,620

)

 

 

(1,721

)

 

 

(3,295

)

 

 

(3,434

)

Acquisition-related costs (5)

 

 

—

 

 

 

(84

)

 

 

—

 

 

 

(105

)

Interest and other income (expense), net

 

 

6,758

 

 

 

4,846

 

 

 

13,630

 

 

 

9,325

 

Other (6)

 

 

(104

)

 

 

—

 

 

 

(834

)

 

 

—

 

Provision for income taxes

 

 

(11,884

)

 

 

(9,904

)

 

 

(20,656

)

 

 

(17,224

)

Net income

 

$

67,605

 

 

$

57,935

 

 

$

127,463

 

 

$

118,238

 

 

(1)
Excludes stock-based compensation expenses and amortization of acquisition-related intangible assets.
(2)
Excludes stock-based compensation expenses and retention bonus expense related to acquisitions.
(3)
Excludes stock-based compensation expenses, facility closure costs and retention bonus expense related to acquisitions.
(4)
The Company excludes these expenses from its adjusted cost of revenue and operating expenses primarily because such expenses are non-cash expenses that the Company does not believe are reflective of ongoing operating results.
(5)
The Company excludes these expenses in order to provide better comparability between periods as they are related to acquisitions and have no direct correlation to the Company’s ongoing operating results.
(6)
Includes restructuring charges, abandoned operating leases, facility restoration costs and certain other one-time adjustments. The Company excludes these items as they are not reflective of ongoing results.

The following represents the Company’s significant expenses related to research and development expenses and sales, general and administrative expenses, as shown above, for the three and six months ended June 30, 2026 and 2025.

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(In thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Payroll and benefits

 

$

42,435

 

 

$

38,911

 

 

$

86,284

 

 

$

76,840

 

Professional fees

 

 

11,289

 

 

 

4,171

 

 

 

18,408

 

 

 

9,660

 

Variable research and development expenses (1)

 

 

7,094

 

 

 

5,354

 

 

 

13,996

 

 

 

10,163

 

Temporary labor services and consulting expenses

 

 

3,455

 

 

 

3,324

 

 

 

6,542

 

 

 

6,167

 

Facilities costs

 

 

3,027

 

 

 

3,136

 

 

 

6,039

 

 

 

6,220

 

Amortization and depreciation

 

 

2,960

 

 

 

3,010

 

 

 

6,034

 

 

 

5,791

 

Other expenses

 

 

3,299

 

 

 

2,450

 

 

 

6,111

 

 

 

4,951

 

Total adjusted operating expenses

 

$

73,559

 

 

$

60,356

 

 

$

143,414

 

 

$

119,792

 

 

(1)
Includes primarily software tools, software licenses and prototyping costs.

The measure of segment assets is reported on the Company’s Unaudited Condensed Consolidated Balance Sheets as total consolidated assets.

Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable as of June 30, 2026 and December 31, 2025 were as follows:

 

 

As of

 

Customer

 

June 30, 2026

 

 

December 31, 2025

 

Customer 1

 

 

42

%

 

 

35

%

Customer 2

 

 

23

%

 

 

22

%

 

Revenue from the Company’s major customers representing 10% or more of total revenue for the three and six months ended June 30, 2026 and 2025 were as follows:

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

Customer

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Customer A

 

 

22

%

 

 

22

%

 

 

25

%

 

 

22

%

Customer B

 

 

16

%

 

 

18

%

 

 

15

%

 

 

19

%

Customer C

 

*

 

 

 

12

%

 

*

 

 

 

10

%

 

* Customer accounted for less than 10% of total revenue in the period.

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

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

(In thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

South Korea

 

$

93,666

 

 

$

78,806

 

 

$

180,171

 

 

$

146,831

 

Singapore

 

 

37,136

 

 

 

38,091

 

 

 

63,528

 

 

 

89,767

 

United States

 

 

36,293

 

 

 

34,733

 

 

 

60,338

 

 

 

61,122

 

Other

 

 

40,290

 

 

 

20,579

 

 

 

83,537

 

 

 

41,153

 

Total

 

$

207,385

 

 

$

172,209

 

 

$

387,574

 

 

$

338,873