Leslie Green | Investor Relations |
Morris Young | Chief Executive Officer |
Gary Fischer | Vice President and Chief Financial Officer |
Richard Shannon | Craig-Hallum |
Gus Richard | Northland Capital Markets |
Dave Kang | B. Riley & Co. |
[Technical Difficulty]
In the fourth quarter of 2019, revenue from North America was 10%, Asia pacific 68% and Europe 22%. In the fourth quarter two customers were each 10% of revenue and the top five customers generated approximately 42% of revenue. Gross margin in the fourth quarter was 21% down from 29% in the prior quarter.
Approximately 4% of this decline or half the decline was due to lower manufacturing efficiencies and yields primarily related to the ramp of two new products, six-inch indium phosphide substrates and a new six-inch germanium product configuration for a large customer.