Geographic Information and Concentration of Risk

12 Months Ended

Jan. 26, 2014

Risks and Uncertainties [Abstract]

Geographic Information and Concentration of Risk

Geographic Information and Concentration of Risk

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

The table below provides net sales activity by product line on a comparative basis for all periods. In December 2013, the Company announced that it was combining its Gennum and Advanced Communication product groups. The combined net sales activity for these groups is reflected in the Signal Integrity and Timing product group.

	Fiscal Year Ended
(in thousands, except percentages)	January 26, 2014				January 27, 2013				January 29, 2012
Signal Integrity and Timing	$	288,374	49	%	$	263,090	45	%	$	139,695	29	%
Protection	198,514		33	%	198,866		34	%	209,726		44	%
Power Management and High Reliability	58,295		10	%	66,427		12	%	74,056		15	%
Wireless and Sensing	49,794		8	%	50,444		9	%	57,124		12	%
Total net sales	$	594,977	100	%	$	578,827	100	%	$	480,601	100	%

Net sales activity by geographic region is as follows:

	Fiscal Year Ended
(in thousands, except percentages)	January 26, 2014				January 27, 2013				January 29, 2012
Asia-Pacific	$	432,097	73	%	$	405,179	70	%	$	298,477	62	%
North America	94,574		16	%	98,401		17	%	114,552		24	%
Europe	68,306		11	%	75,247		13	%	67,572		14	%
Total net sales	$	594,977	100	%	$	578,827	100	%	$	480,601	100	%

The Company 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 net sales for at least one of the periods indicated:

	Fiscal Year Ended
(percentage of total sales)	January 26, 2014		January 27, 2013		January 29, 2012
China (including Hong Kong)	34	%	35	%	38	%
United States	16	%	17	%	20	%
Japan	11	%	10	%	8	%
South Korea	11	%	7	%	8	%
Total net sales	72	%	69	%	74	%

The Company’s regional (loss) income from continuing operations before income taxes is as follows:

	Fiscal Year Ended
(in thousands)	January 26, 2014			January 27, 2013			January 29, 2012
Domestic	$	(158,780	)	$	(19,867	)	$	(3,070	)
Foreign	30,299			20,116			97,249
Total	$	(128,481	)	$	249		$	94,179

Domestic (loss) from continuing operations includes impairments in fiscal year 2014, amortization of acquired intangible assets, litigation related expenses and higher levels of stock-based compensation compared to foreign operations.

Long-lived Assets

Long-lived assets, which consist of property, plant and equipment, net of accumulated depreciation and classified by location are summarized as follows:

(in thousands)	January 26, 2014		January 27, 2013
United States	$	55,303	$	53,858
Rest of North America	28,577		25,772
Europe	14,900		10,701
Asia and all others	11,341		11,506
Total	$	110,121	$	101,837

Some of these assets are at locations owned or operated by the Company’s suppliers. The Company has consigned certain equipment to a foundry based in China to support its specialized processes run at the foundry. The Company has also installed its own equipment at some of its packaging and testing subcontractors in order to ensure a certain level of capacity, assuming the subcontractor has ample employees to operate the equipment.

The amount of equipment and machinery consigned to a foundry in China was $8.1 million and $7.9 million as of January 26, 2014 and January 27, 2013, respectively.

Significant Customers

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.

Each of the following significant customers accounted for at least 10% of net sales for at least one of the periods indicated:

	Fiscal Year Ended
(percentage of net sales)	January 26, 2014		January 27, 2013		January 29, 2012
Samsung Electronics Co., Ltd.(and affiliates)	12	%	12	%	13	%
Huawei Technologies Co., Ltd (and affiliates)	9	%	10	%	7	%
Frontek Technology Corp	5	%	6	%	10	%

The following table shows the list of customers that have an outstanding receivable balance that represents at least 10% of total net receivables for at least one of the periods indicated:

	Balance as of
(percentage of net accounts receivable)	January 26, 2014		January 27, 2013
Samsung Electronics Co., Ltd.(and affiliates)	13	%	12	%
Huawei Technologies Co., Ltd (and affiliates)	9	%	14	%

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 an earthquake 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, Europe and Israel. 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, Taiwan, Thailand, Korea and the Philippines. For fiscal year 2014, approximately 38% of the Company's silicon in terms of cost of wafers was supplied by a third-party foundry in China, and this percentage could be higher in future periods. For fiscal years 2013 and 2012, approximately 38% and 59%, respectively, of the Company's silicon in terms of cost of wafers was supplied by this third-party foundry in China.

In fiscal year 2014, authorized distributors accounted for approximately 43% of the Company's net sales. Generally, the Company does not have long-term contracts with its distributors and most can terminate their agreement with little or no notice. For fiscal year 2014, the Company's two largest distributors were based in Asia.