Note 3 - Revenue From Contracts With Customers

6 Months Ended

Jun. 29, 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 customers:

	Three Months Ended								Six Months Ended
Revenue by Channel	June 29,				July 1,				June 29,				July 1,
(In thousands)	2024				2023				2024				2023
Distributors	$	112,530	91	%	$	169,362	89	%	$	235,735	89	%	$	330,708	88	%
Direct		11,546	9	%		20,717	11	%		29,156	11	%		43,681	12	%
Total revenue	$	124,076	100	%	$	190,079	100	%	$	264,891	100	%	$	374,389	100	%
Revenue by Geographical Market
(In thousands)
China	$	48,159	39	%	$	55,834	30	%	$	105,031	40	%	$	111,556	30	%
Japan		23,161	19	%		38,728	20	%		48,149	18	%		68,745	18	%
Other Asia		11,299	9	%		24,461	13	%		21,867	8	%		44,477	12	%
Asia		82,619	67	%		119,023	63	%		175,047	66	%		224,778	60	%
Americas		23,609	19	%		32,668	17	%		55,589	21	%		74,571	20	%
Europe		17,848	14	%		38,388	20	%		34,255	13	%		75,040	20	%
Total revenue	$	124,076	100	%	$	190,079	100	%	$	264,891	100	%	$	374,389	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 six months of fiscal 2024:

(In thousands)
Contract assets as of December 30, 2023	$	11,194
Revenues recorded during the period		7,646
Transferred to Accounts receivable or collected		(4,663	)
Contract assets as of June 29, 2024	$	14,177

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

(In thousands)
Contract liabilities as of December 30, 2023	$	5,304
Accruals for estimated future stock rotation and scrap returns		9,576
Less: Release of accruals for recognized stock rotation and scrap returns		(8,929	)
Contract liabilities as of June 29, 2024	$	5,951