Note 3 - Revenue From Contracts With Customers

3 Months Ended

Mar. 30, 2024

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note 3 - Revenue from Contracts with Customers

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	March 30,				April 1,
(In thousands)	2024				2023
Distributors	$	123,205	87	%	$	161,346	88	%
Direct		17,610	13	%		22,964	12	%
Total revenue	$	140,815	100	%	$	184,310	100	%
Revenue by Geographical Market
(In thousands)
China		56,872	40	%		55,722	30	%
Japan		24,988	18	%		30,017	16	%
Other Asia		10,568	8	%		20,016	11	%
Asia		92,428	66	%		105,755	57	%
Americas		31,980	22	%		41,903	23	%
Europe		16,407	12	%		36,652	20	%
Total revenue	$	140,815	100	%	$	184,310	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 distributed to us by 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 2024:

(In thousands)
Contract assets as of December 30, 2023	$	11,194
Revenues recorded during the period		3,947
Transferred to Accounts receivable or collected		(418	)
Contract assets as of March 30, 2024	$	14,723

Contract liabilities are included in Accrued liabilities on our Consolidated Balance Sheets. The following table summarizes activity during the first three months of fiscal 2024:

(In thousands)
Contract liabilities as of December 30, 2023	$	5,304
Accruals for estimated future stock rotation and scrap returns		4,551
Less: Release of accruals for recognized stock rotation and scrap returns		(3,364	)
Contract liabilities as of March 30, 2024	$	6,491