Industry Segments

9 Months Ended

Jan. 01, 2012

Industry Segments [Abstract]

Industry Segments

Note 14

Industry Segments

The Company's reportable segments include the following:

·   Communications segment: includes high-performance timing products, Rapid I/O switching solutions, flow-control management devices, FIFOs, integrated communications processors, high-speed SRAM, digital logic, telecommunications.

·   Computing and Consumer segment: includes timing products, PCI Express switching and bridging solutions, high-performance server memory interfaces, multi-port products, touch controller, signal integrity products and PC audio products.

The tables below provide information about these segments:

Revenues by segment

	Three Months Ended				Nine Months Ended
(in thousands)	Jan. 1, 2012		Jan. 2, 2011		Jan. 1, 2012		Jan. 2, 2011
Communications	$	55,513	$	72,775	$	192,048	$	220,159
Computing and Consumer		64,464		74,749		215,532		240,556
Total	$	119,977	$	147,524	$	407,580	$	460,715

Income (loss) by segment from continuing operations:

	Three Months Ended						Nine Months Ended
(in thousands)	Jan. 1, 2012			Jan. 2, 2011			Jan. 1, 2012			Jan. 2, 2011
Communications	$	16,923		$	32,868		$	69,374		$	96,511
Computing and Consumer		(6,836	)		(5,038	)		(16,536	)		(5,180	)
Unallocated expenses:
Amortization of intangible assets		(4,006	)		(4,739	)		(11,628	)		(14,165	)
Acquisition related costs and other		(109	)		(694	)		(109	)		(1,833	)
Fair market value adjustment to acquired inventory sold		---			---			---			(379	)
Restructuring and related costs		1,962			(2,387	)		(665	)		(5,424	)
Fabrication product transfer costs		(1,233	)		(1,639	)		(3,893	)		(3,851	)
Compensation expense - deferred compensation plan		(649	)		(815	)		633			(1,303	)
Impairment of assets		73			107			255			383
Stock-based compensation expense		(4,312	)		(4,007	)		(12,365	)		(11,772	)
Interest income (expense) and other, net		(2,140	)		1,352			(3,924	)		2,793
Income (loss) from continuing operations, before income taxes	$	(327	)	$	15,008		$	21,142		$	55,780

The Company does not allocate amortization of intangible assets, severance and retention costs, acquisition-related costs, stock-based compensation, interest income and other (expense), net, and interest expense to its segments.  The Company excludes these items consistent with the manner in which it internally evaluates its results of operations. In addition, the Company does not allocate assets to its segments.

The Company's significant operations outside of the United States include a manufacturing facility in Malaysia, design centers in the U.S., Canada and China, and sales subsidiaries in Japan, Asia Pacific and Europe. Revenues from unaffiliated customers by geographic area, based on the customers' shipment locations, were as follows:

	Three Months Ended				Nine Months Ended
(in thousands)	Jan. 1, 2012		Jan. 2, 2011		Jan. 1, 2012		Jan. 2, 2011
Asia Pacific	$	78,444	$	91,664	$	272,210	$	302,416
Americas		20,020		25,418		57,785		73,088
Japan		10,417		16,621		33,463		42,667
Europe		11,096		13,821		44,122		42,544
Total consolidated revenues	$	119,977	$	147,524	$	407,580	$	460,715

The Company sells integrated circuits primarily in the U.S., Europe, and Asia. The Company monitors the financial condition of its major customers, including performing credit evaluations of those accounts which management considers high risk, and generally does not require collateral from its customers. When deemed necessary, the Company may limit the credit extended to certain customers. The Company's relationship with the customer, and the customer's past and current payment experience, are also factored into the evaluation in instances where limited financial information is available. The Company maintains and reviews its allowance for doubtful accounts by considering factors such as historical bad debts, age of the account receivable balances, customer credit-worthiness and current economic conditions that may affect customer's ability to pay.

The Company utilizes global and regional distributors around the world, who buy product directly from the Company on behalf of their customers.  For the nine months ended January 1, 2012, three distributors represented 16%, 11%, and 10% of the Company's net revenues, respectively.  For the nine months ended January 2, 2011, two distributors represented 19%, and 11% of the Company's net revenues, respectively.  At January 2, 2012, four distributors represented 20%, 12%, 10%, and 10% of the Company's gross accounts receivable. At April 3, 2011, three distributors represented 19%, 14%, and 11% of the Company's gross accounts receivable.

The Company's property, plant and equipment are summarized below by geographic area:

(in thousands)	January 1, 2012		April 3, 2011
United States	$	52,221	$	51,642
Canada		4,642		5,613
Malaysia		12,312		8,599
All other countries		802		1,900
Total property, plant and equipment, net	$	69,977	$	67,754