Note 3 - Revenue From Contracts With Customers

3 Months Ended

Apr. 01, 2023

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 channel and by geographical market, based on ship-to location of our customer:

	Three Months Ended
Revenue by Channel	April 1,				April 2,
(In thousands)	2023				2022
Distributors	$	161,346	88	%	$	135,413	90	%
Direct		22,964	12	%		15,102	10	%
Total revenue	$	184,310	100	%	$	150,515	100	%
Revenue by Geographical Market
(In thousands)
China		55,722	30	%		75,431	50	%
Japan		30,017	16	%		18,903	13	%
Other Asia		20,016	11	%		14,418	9	%
Asia		105,755	57	%		108,752	72	%
Americas		41,903	23	%		21,540	15	%
Europe		36,652	20	%		20,223	13	%
Total revenue	$	184,310	100	%	$	150,515	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 three months of fiscal 2023:

(In thousands)
Contract assets as of December 31, 2022	$	7,347
Revenues recorded during the period		2,993
Transferred to Accounts receivable or collected		(3,324	)
Contract assets as of April 1, 2023	$	7,016

Contract liabilities are included in Accrued liabilities on our Consolidated Balance Sheets. The following table summarizes activity during the first three months of fiscal 2023:

(In thousands)
Contract liabilities as of December 31, 2022	$	17,666
Less: Product shipments from prepaid customer deposit		(11,507	)
Accruals for estimated future stock rotation and scrap returns		1,611
Less: Release of accruals for recognized stock rotation and scrap returns		(1,705	)
Contract liabilities as of April 1, 2023	$	6,065