Segment and Geographic Information

12 Months Ended

Dec. 29, 2012

Segment Reporting Information, Additional Information [Abstract]

Segment and Geographic Information

Segment and Geographic Information:

We operate in one industry segment comprising the design, development, manufacture and marketing of high performance programmable logic devices. Our revenue by major geographic area based on ship-to location was as follows (dollars in thousands):

	Year Ended
	December 29, 2012				December 31, 2011				January 1, 2011
United States:	$	34,172	12	%	$	44,847	14	%	36,211		12	%
China	113,585		41		123,124		39		124,910		42
Europe	48,202		17		66,319		21		54,332		18
Japan	35,696		13		36,961		11		38,992		13
Taiwan	8,276		3		8,346		3		8,839		3
Other Asia	32,254		11		32,687		10		27,853		10
Other Americas	7,071		3		6,082		2		6,631		2
Total foreign revenue	245,084		88		273,519		86		261,557		88
Total revenue	$	279,256	100	%	$	318,366	100	%	$	297,768	100	%

We assign revenue to geographies based on the customer ship-to address at the point where revenue is recognized. In the case of sell-in distributors and OEM customers, revenue is typically recognized, and geography is assigned, when products are shipped to our distributor or customer. In the case of sell-through distributors, revenue is recognized when resale occurs and geography is assigned based on the customer location on the resale reports provided by the distributor.

Revenue by Distributors

Our largest customers are distributors and sales through distributors have historically made up a significant portion of our total revenue. Revenue attributable to resales of products by our primary distributors are as follows:

	% of Total Revenue
	2012		2011		2010
Nu Horizons Electronics Corp. (including Arrow Electronics)	33	%	22	%	18	%
Weikeng Group	14		14		14
Avnet, Inc.	—		17		17
All others	8		8		7
All sell-through distributors	55	%	61	%	56	%

Orders from our sell-through distributors are initially recorded at published list prices; however, for a majority of our sales, the final selling price is determined at the time of resale and in accordance with a distributor price agreement. In certain circumstances, we allow sell-through distributors to return unsold products. At times, we protect our sell-through distributors against reductions in published list prices. For these reasons, we do not recognize revenue until products are resold by sell-through distributors to an end customer.

In 2011 our global franchise agreement with Avnet terminated, however, we had mutually agreed to terms for the transition of inventory through December 31, 2011. Revenue from Avnet made up approximately 20% of our total revenue for the first nine months of fiscal 2011. Because we and our remaining global and regional distributors worked directly with our end customers in order to transition the fulfillment of customer orders to replacement distributors, the impact on our business as a result of this change has been negligible. We continue to serve our end customers with a network that includes a global distributor, regional distributors, manufacturer's representatives, and our direct sales team.