Note 10 - Information Concerning Product Lines, Geographic Information, and Revenue Concentration

6 Months Ended

Jul. 02, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 10 — Information Concerning Product Lines, Geographic Information and Revenue Concentration

The Company identifies its business segment based on business activities, management responsibility and geographic location. For all periods presented, the Company operated in a single reportable business segment.

The following is a breakdown of revenue by product family (in thousands):

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
New products	$	2,233	$	3,131	$	5,288	$	6,581
Mature products		688		1,410		1,766		2,056
Total revenue	$	2,921	$	4,541	$	7,054	$	8,637

New products revenue consists of revenues from the sale of hardware products manufactured on 180 nanometer or smaller semiconductor processes, eFPGA IP license and eFPGA-related professional services, QuickAI and SensiML AI software as a service (SaaS) revenue. Mature products include all products produced on semiconductor processes larger than 180 nanometer.

The following is a breakdown of new product revenue (in thousands):

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
Hardware products	$	366	$	1,464	$	528	$	3,299
eFPGA IP and professional services		1,857		1,617		4,667		3,188
SaaS & Other		10		50		93		94
New products revenue	$	2,233	$	3,131	$	5,288	$	6,581

eFPGA IP revenue for the three months ended July 2, 2023 was $1.9 million, which was primarily professional services revenue. eFPGA IP revenue for the three months ended July 3, 2022 was $1.6 million, which was comprised of approximately $1.5 million in professional services revenue and $0.1 million in eFPGA intellectual property license revenue.

Contract assets related to professional services revenue were $1.0 million and $0.3 million as of July 2, 2023 and July 3, 2022, respectively. Contract liabilities related to professional services revenue were $294 thousand as of July 2, 2023 and $0 as of July 3, 2022.

The tables below present disaggregated revenues by geographical location. Revenue attributed to geographic location is based on the destination of the product or service. Substantially all revenues in North America were in the United States. Revenue in the United States was $2.3 million, or 80% of total revenue, and $5.6 million, or 80% of total revenue for the three and six months ended July 2, 2023, respectively, and $3.0 million, or 67% of total revenue, and $5.5 million, or 63% of total revenue for the three and six months ended July 3, 2022, respectively.

The following is a breakdown of revenue by destination (in thousands): 

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
Asia Pacific	$	456	$	840	$	1,169	$	2,331
North America		2,370		3,082		5,688		5,515
Europe		95		619		197		791
Total revenue	$	2,921	$	4,541	$	7,054	$	8,637

The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented:

	Three Months Ended						Six Months Ended
	July 2,			July 3,			July 2,			July 3,
	2023			2022			2023			2022
Distributor "A"		18	%		15	%		17	%		13	%
Distributor "E"		*			11	%		*			20	%
Customer "A"		47	%		*			51	%		*
Customer "B"		12	%		*			10	%		*
Customer "C"		11	%		29	%		*			23	%
Customer "D"		*			11	%		*			*
Customer "F"		*			16	%		*			21	%
Customer "H"		*			11	%		*			*
Customer "I"		*			*			*			11	%

* Represents less than 10% of revenue as of the dates presented.

The following distributors and customers accounted for 10% or more of the Company's accounts receivable as of the dates presented:

	July 2,			January 1,
	2023			2023
Distributor "A"		34	%		14	%
Distributor "C"		16	%		*
Customer "C"		35	%		22	%
Customer "F"		*			44	%