Note 3 - Revenue From Contracts With Customers

9 Months Ended

Sep. 28, 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								Nine Months Ended
Revenue by Channel	September 28,				September 30,				September 28,				September 30,
(In thousands)	2024				2023				2024				2023
Distributors	$	120,266	95	%	$	173,344	90	%	$	356,001	91	%	$	504,052	89	%
Direct		6,825	5	%		18,825	10	%		35,981	9	%		62,506	11	%
Total revenue	$	127,091	100	%	$	192,169	100	%	$	391,982	100	%	$	566,558	100	%
Revenue by Geographical Market
(In thousands)
China	$	49,671	39	%	$	64,114	34	%	$	154,702	39	%	$	175,670	31	%
Japan		16,633	13	%		25,689	13	%		64,782	17	%		94,434	17	%
Other Asia		13,508	11	%		27,532	14	%		35,375	9	%		72,009	12	%
Asia		79,812	63	%		117,335	61	%		254,859	65	%		342,113	60	%
Americas		19,156	15	%		33,209	17	%		74,745	19	%		107,780	19	%
Europe		28,123	22	%		41,625	22	%		62,378	16	%		116,665	21	%
Total revenue	$	127,091	100	%	$	192,169	100	%	$	391,982	100	%	$	566,558	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 nine months of fiscal 2024:

(In thousands)
Contract assets as of December 30, 2023	$	11,194
Revenues recorded during the period		10,890
Transferred to Accounts receivable or collected		(6,316	)
Contract assets as of September 28, 2024	$	15,768

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

(In thousands)
Contract liabilities as of December 30, 2023	$	5,304
Accruals for estimated future stock rotation and scrap returns		12,527
Less: Release of accruals for recognized stock rotation and scrap returns		(12,015	)
Contract liabilities as of September 28, 2024	$	5,816