Supplier concentration
The company has only one written supply agreement and relies on a limited supplier base.
- Scope
- Lelon Electronics and other Asian manufacturers
- Materiality
- high
Surge Components Inc
SURGE COMPONENTS INC is a U.S.-based distributor and supplier of electronic components, focused on capacitors and discrete semiconductor parts such as rectifiers, transistors, and diodes. The company sells into OEM and distributor channels and supports customers through a mix of direct distribution, warehouse fulfillment, and sales-agent arrangements, with sourcing and sales activity tied heavily to Asia, North America, Europe, and Greater China.
3,6 %
28,8 %
3,1 %
+16,4 %
5.14
4.13
| % | |
|---|---|
| Capacitors | 40% Electrical energy storage components sold for use in a wide range of electronic applications. |
| Discrete semiconductors | 35% Single-function semiconductor parts including rectifiers, transistors, and diodes. |
| Distribution and fulfillment | 15% Inventory-based distribution, warehousing, and direct shipment of electronic components. |
| Commission revenue | 5% Agency commissions earned when acting as a sales agent for supplier-direct transactions. |
| Custom and specialty component support | 5% Application-specific sourcing and support for customer design and performance needs. |
The company sells primarily to OEMs that incorporate components into finished products, and to distributors that resell...
- Original equipment manufacturers (OEMs)primary
Buy capacitors and discrete components for incorporation into finished products across industrial and consumer applications.
- Electronic component distributorsprimary
Purchase the company’s product lines to resell into their own customer bases and broaden market reach.
- Subcontractors and contract manufacturerssecondary
Source components used in outsourced manufacturing programs where supply reliability matters.
- Regional and specialty customerssecondary
Buy through local sales representatives for faster access, technical support, and sourcing help.
The company is headquartered in the United States, but its supply chain is predominantly Asian and its sales coverage...
- •United States headquarters and core operating base
- •Hong Kong subsidiary supports Greater China customers
- •London-based Europe coverage expands continental sales reach
- •Manufacturing is predominantly in Asia, creating supply-chain exposure
- •North America remains important for sales-agent and distributor channels
The company’s strategy centers on maintaining access to supply, broadening customer reach through independent sales...
01
Expand regional sales coveragemedium-term
Local presence helps win OEM and distributor accounts that require nearby support.
02
Secure supply and inventory availabilityshort-term
The business depends on keeping customer lines supplied and avoiding stockouts.
03
Broaden customer mix and channel reachmedium-term
Distributor and OEM coverage reduces dependence on any single route to market.
04
Differentiate with application supportmedium-term
Custom and design-oriented support can reduce pure commodity price competition.
The company faces supplier concentration, inventory and pricing risk, and heavy exposure to Asian manufacturing and...
Inventory and obsolescence risk
The business needs inventory to serve customers, but excess stock can become obsolete or price-sensitive.
- Scope
- Capacitors and discrete components
- Materiality
- high
Foreign sourcing and trade risk
Most purchased goods are manufactured abroad, exposing the company to tariffs, transport delays, and FX swings.
- Scope
- Taiwan, Hong Kong, broader Asia
- Materiality
- high
Competitive pricing pressure
Large global manufacturers and distributors can compete aggressively on price and customer access.
- Scope
- OEM and distributor channels
- Materiality
- high
Credit loss risk
The company extends credit and recognizes revenue on shipped product, so collectability matters.
- Scope
- Customer receivables
- Materiality
- medium
Revenue recognition on shipment
Quarterly revenue comparability
Commission revenue recognition
Mix and margin presentation
Allowance for credit losses
Receivables and earnings
Inventory valuation
Gross profit and working capital
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: 29/04/2026