Peraso Inc. Segments Disclosure
Note 8: Business Segments, Concentration of Credit Risk and Significant Customers
The Company operates in one business segment and uses one measurement of profitability for its business. Revenue attributed to the United States and to all foreign countries is based on the geographical location of the customer.
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents, short-term and long-term investments and accounts receivable. Cash, cash equivalents and short-term and long-term investments are deposited with high credit-quality institutions.
The Company recognized revenue from licensing of its technologies and shipment of ICs to customers in the following geographical locations (in thousands):
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Year Ended |
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December 31, |
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2019 |
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2018 |
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2017 |
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|||
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North America |
|
$ |
7,585 |
|
|
$ |
12,998 |
|
|
$ |
6,531 |
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|
Japan |
|
|
1,734 |
|
|
|
2,956 |
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|
|
1,520 |
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Taiwan |
|
|
345 |
|
|
|
399 |
|
|
|
613 |
|
|
Rest of world |
|
|
422 |
|
|
|
247 |
|
|
|
178 |
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Total net revenue |
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$ |
10,086 |
|
|
$ |
16,600 |
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|
$ |
8,842 |
|
Customers who accounted for at least 10% of total net revenues were:
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Year Ended |
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December 31, |
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2019 |
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2018 |
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2017 |
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Customer A |
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|
30 |
% |
|
|
32 |
% |
|
|
46 |
% |
|
Customer B |
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|
17 |
% |
|
|
18 |
% |
|
|
17 |
% |
|
Customer C |
|
|
14 |
% |
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* |
|
|
* |
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|
Customer D |
|
|
13 |
% |
|
|
18 |
% |
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* |
|
|
|
Customer E |
|
* |
|
|
|
15 |
% |
|
|
11 |
% |
|
|
* |
Represents percentage less than 10%. |
Four customers accounted for 85% of net accounts receivable as of December 31, 2019. Three customer accounted for 63% of net accounts receivable as of December 31, 2018.
All net long-lived assets (property and equipment) were held in the United States.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.