Note 3 - Revenue From Contracts With Customers

6 Months Ended

Jul. 02, 2022

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 customer:

	Three Months Ended								Six Months Ended
Revenue by Channel	July 2,				July 3,				July 2,				July 3,
(In thousands)	2022				2021				2022				2021
Product revenue - Distributors	$	143,705	89	%	$	111,168	88	%	$	279,118	90	%	$	209,947	87	%
Product revenue - Direct		13,895	9	%		11,368	9	%		25,460	8	%		24,181	10	%
Licensing and services		3,772	2	%		3,369	3	%		7,309	2	%		7,493	3	%
Total revenue	$	161,372	100	%	$	125,905	100	%	$	311,887	100	%	$	241,621	100	%
Revenue by Geographical Market
(In thousands)
United States	$	21,371	13	%	$	11,672	9	%	$	39,074	13	%	$	20,782	9	%
Other Americas		911	1	%		6,154	5	%		4,748	1	%		12,887	5	%
Americas		22,282	14	%		17,826	14	%		43,822	14	%		33,669	14	%
China		80,735	50	%		64,821	52	%		156,166	50	%		131,940	54	%
Japan		16,957	10	%		8,836	7	%		35,860	12	%		16,613	7	%
Other Asia		21,028	13	%		22,798	18	%		35,446	11	%		36,292	15	%
Asia		118,720	73	%		96,455	77	%		227,472	73	%		184,845	76	%
Europe		20,370	13	%		11,624	9	%		40,593	13	%		23,107	10	%
Total revenue	$	161,372	100	%	$	125,905	100	%	$	311,887	100	%	$	241,621	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 Founders consortium. 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 from the customers of the HDMI licensing 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 six months of fiscal 2022:

(In thousands)
Contract assets as of Year Ended January 1, 2022	$	5,672
Revenues recorded during the period		6,479
Transferred to Accounts receivable or collected		(7,533	)
Contract assets as of July 3, 2022	$	4,618

Contract liabilities are included in Accrued expenses on our Consolidated Balance Sheets. The following table summarizes activity during the first six months of fiscal 2022:

(In thousands)
Contract liabilities as of Year Ended January 1, 2022	$	4,768
Accruals for estimated future stock rotation and scrap returns		2,589
Less: Release of accruals for recognized stock rotation and scrap returns		(2,075	)
Contract liabilities as of July 3, 2022	$	5,282