Geographic Information and Concentration of Risk

3 Months Ended

May 01, 2011

Geographic Information and Concentration of Risk

Geographic Information and Concentration of Risk

Note 12: Geographic Information and Concentration of Risk

The Company operates exclusively in the semiconductor industry and primarily within the analog and mixed-signal sector.

Net sales activity by geographic region is as follows:

Sales by Region

(percentage of net sales)	Three Months Ended
	May 1, 2011			May 2, 2010
North America		27	%		26	%
Asia-Pacific		60	%		58	%
Europe		13	%		16	%
		100	%		100	%

The Company generally attributes sales to a country based on the ship-to address. The table below summarizes sales activity to countries that represented greater than 10% of total sales:

	Three Months Ended
(percentage of total sales)	May 1, 2011			May 2, 2010
United States		23	%		23	%
China (including Hong Kong)		35	%		31	%
South Korea		<10	%		15	%

Income (loss) from continuing operations before income taxes is as follows:

	Three Months Ended
(in thousands)	May 1, 2011		May 2, 2010
Domestic	$	5,549	$	(3,890	)
Foreign		20,533		17,075
Total	$	26,082	$	13,185

Domestic income (loss) from continuing operations include amortization of acquired intangible assets, litigation expenses and higher levels of stock-based compensation compared to foreign operations.

Sales to the Company's customers are generally made on open account, subject to credit limits the Company may impose, and the receivables are subject to the risk of being uncollectible.

(percentage of net sales)	Three Months Ended
	May 1, 2011			May 2, 2010
Samsung Electronics (and affiliates)		12	%		13	%
Frontek Technology Corp		11	%		12	%

Concentration of Accounts Receivable - Significant Customers

(percentage of accounts receivable)	Balance as of
	May 1, 2011			January 30 2011
Samsung Electronics (and affiliates)		<10	%		15	%
Frontek Technology Corp		<10	%		12	%
Huawei Technologies (and affiliates)		11	%		<10	%

Outside Subcontractors and Suppliers

The Company relies on a limited number of outside subcontractors and suppliers for the production of silicon wafers, packaging and certain other tasks. Disruption or termination of supply sources or subcontractors, due to natural disasters such as the recent earthquake and Tsunami in Japan or other causes, could delay shipments and could have a material adverse effect on the Company. Although there are generally alternate sources for these materials and services, qualification of the alternate sources could cause delays sufficient to have a material adverse effect on the Company. Several of the Company's outside subcontractors and suppliers, including third-party foundries that supply silicon wafers, are located in foreign countries, including China, Taiwan, Singapore, Thailand, Malaysia, the Philippines, Germany, Japan, Israel and Canada. The Company's largest source of silicon wafers is an outside foundry located in China and a significant amount of the Company's assembly and test operations are conducted by third-party contractors in China, Malaysia, Thailand and the Philippines.