Note 3 - Revenue From Contracts With Customers

9 Months Ended

Oct. 01, 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								Nine Months Ended
Revenue by Channel	October 1,				October 2,				October 1,				October 2,
(In thousands)	2022				2021				2022				2021
Product revenue - Distributors	$	154,417	90	%	$	118,227	90	%	$	433,535	89	%	$	328,174	88	%
Product revenue - Direct		12,803	7	%		9,190	7	%		38,263	8	%		33,371	9	%
Licensing and services		5,289	3	%		4,494	3	%		12,598	3	%		11,987	3	%
Total revenue	$	172,509	100	%	$	131,911	100	%	$	484,396	100	%	$	373,532	100	%
Revenue by Geographical Market
(In thousands)
United States	$	22,918	13	%	$	11,022	8	%	$	61,992	13	%	$	31,804	8	%
Other Americas		236	—	%		9,239	7	%		4,984	1	%		22,126	6	%
Americas		23,154	13	%		20,261	15	%		66,976	14	%		53,930	14	%
China		75,933	44	%		76,692	58	%		232,099	48	%		208,632	56	%
Japan		26,924	16	%		7,877	6	%		62,784	13	%		24,490	6	%
Other Asia		20,003	12	%		14,328	11	%		55,449	11	%		50,620	14	%
Asia		122,860	72	%		98,897	75	%		350,332	72	%		283,742	76	%
Europe		26,495	15	%		12,753	10	%		67,088	14	%		35,860	10	%
Total revenue	$	172,509	100	%	$	131,911	100	%	$	484,396	100	%	$	373,532	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 nine months of fiscal 2022:

(In thousands)
Contract assets as of Year Ended January 1, 2022	$	5,672
Revenues recorded during the period		11,499
Transferred to Accounts receivable or collected		(10,679	)
Contract assets as of October 1, 2022	$	6,492

Contract liabilities are included in Accrued expenses on our Consolidated Balance Sheets. The following table summarizes activity during the first nine 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		4,268
Less: Release of accruals for recognized stock rotation and scrap returns		(3,144	)
Contract liabilities as of October 1, 2022	$	5,892