Note 3 - Revenue From Contracts With Customers

3 Months Ended

Mar. 28, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Disaggregation of revenue

The following tables provide information about revenue from contracts with customers disaggregated by major class of revenue, revenue by channel, and by geographical market, based on ship-to location of the end customer, where available, and ship-to location of distributor otherwise:

Major Class of Revenue	Three Months Ended
	March 28,				March 30,
(In thousands)	2020				2019
Product	$	93,225	96	%	$	91,612	93	%
Licensing and services		4,091	4	%		6,479	7	%
Total revenue	$	97,316	100	%	$	98,091	100	%

Revenue by Channel	Three Months Ended
	March 28,				March 30,
(In thousands)	2020				2019
Product revenue - Distributors	$	75,455	78	%	$	77,472	79	%
Product revenue - Direct		17,770	18	%		14,140	14	%
Licensing and services revenue		4,091	4	%		6,479	7	%
Total revenue	$	97,316	100	%	$	98,091	100	%

Revenue by Geographical Market	Three Months Ended
	March 28,				March 30,
(In thousands)	2020				2019
United States	$	13,319	14	%	$	12,895	13	%
Other Americas		3,268	3	%		3,975	4	%
Americas		16,587	17	%		16,870	17	%
China		43,499	45	%		48,305	49	%
Taiwan		9,859	10	%		2,678	3	%
Japan		7,999	8	%		11,857	12	%
Other Asia		7,336	8	%		6,171	7	%
Asia		68,693	71	%		69,011	71	%
Europe		12,036	12	%		12,210	12	%
Total revenue	$	97,316	100	%	$	98,091	100	%

Contract balances

Our contract assets relate to our rights to consideration for licenses and royalties due to us as a member of the HDMI consortium, with collection dependent on events other than the passage of time, such as collection of licenses and royalties from customers by the HDMI licensing agent. The balance results primarily from the amount of estimated revenue related to HDMI that we have recognized to date, but which has not yet been collected by the agent. Contract assets are included in Prepaid expenses and other current assets on our Consolidated Balance Sheets. The following table summarizes activity during the first three months of fiscal 2020:

(In thousands)
Contract assets as of December 28, 2019	$	5,569
Revenues recorded during the period		3,103
Transferred to Accounts receivable or collected		(3,238	)
Contract assets as of March 28, 2020	$	5,434

Contract liabilities are included in Accounts payable and accrued expenses on our Consolidated Balance Sheets. The following table summarizes activity during the first three months of fiscal 2020:

(In thousands)
Contract liabilities as of December 28, 2019	$	2,313
Accruals for estimated future stock rotation and scrap returns		990
Less: Release of accruals for recognized stock rotation and scrap returns		(376	)
Contract liabilities as of March 28, 2020	$	2,927

The impact to revenue from the release of accruals for recognized stock rotation and scrap returns was offset by the processing of return merchandise authorizations totaling approximately $0.5 million, yielding a net revenue reduction of approximately $0.1 million for the first three months of 2020.