Geographic Information And Concentration Of Risk

6 Months Ended

Jul. 31, 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

	Three Months Ended						Six Months Ended
(percentage of net sales)	July 31 2011			August 1, 2010			July 31 2011			August 1, 2010
North America		25	%		24	%		26	%		25	%
Asia-Pacific		62	%		60	%		61	%		59	%
Europe		13	%		16	%		13	%		16	%
		100	%		100	%		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						Six Months Ended
(percentage of total sales)	July 31, 2011			August 1, 2010			July 31, 2011			August 1, 2010
United States		22	%		22	%		23	%		23	%
China (including Hong Kong)		39	%		32	%		37	%		31	%
South Korea					12	%					12	%

Sales to South Korea did not exceed 10% in either interim period of fiscal year 2012.

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

	Three Months Ended				Six Months Ended
(in thousands)	July 31 2011		August 1, 2010		July 31 2011		August 1, 2010
Domestic	$	5,426	$	3,557	$	10,975	$	(334	)
Foreign		26,365		19,459		46,898		36,535
Total	$	31,791	$	23,016	$	57,873	$	36,201

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.

Concentration of Net Sales - Significant Customers

	Three Months Ended						Six Months Ended
(percentage of net sales)	July 31, 2011			August 1, 2010			July 31, 2011			August 1, 2010
Samsung Electronics (and affiliates)		12	%		12	%		12	%		13	%
Frontek Technology Corp		11	%		12	%		11	%		12	%

Concentration of Accounts Receivable - Significant Customers

	Balance as of
(percentage of accounts receivable)	July 31, 2011			January 30 2011
Samsung Electronics (and affiliates)		11	%		12	%
Frontek Technology Corp		13	%		12	%

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.