Concentration of Risk

The following significant customers accounted for at least 10% of net sales in one or more of the periods indicated:



	Three Months Ended
(percentage of net sales)	April 29, 2018		April 30, 2017
Arrow Electronics (and affiliates)	12	%	9	%
Trend-tek Technology Ltd (and affiliates)	12	%	10	%
Samsung Electronics (and affiliates)	8	%	7	%
Premier Technical Sales Korea, Inc. (and affiliates) ⁽¹⁾	5	%	7	%

⁽¹⁾ Premier is a distributor with a concentration of sales to Samsung. The above percentages represent the Company's estimate of the sales activity related to Samsung that is passing through this distributor.

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



	Balance as of
(percentage of net sales)	April 29, 2018		January 28, 2018
Trend-tek Technology Ltd (and affiliates)	12	%	8	%
Frontek Technology Corporation	10	%	9	%

Outside Subcontractors and Suppliers

The Company relies on a limited number of third-party subcontractors and suppliers for the production of silicon wafers, packaging and certain other tasks. Disruption or termination of supply sources or subcontractors, including 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 third-party subcontractors and suppliers, including third-party foundries that supply silicon wafers, are located in foreign countries, including China, Israel and Taiwan.A significant amount of the Company’s assembly and test operations are conducted by third-party contractors in China, Malaysia, Taiwan, Thailand, South Korea and the Philippines. For the first quarter of fiscal years 2019 and 2018, respectively, approximately 14% and 21%, respectively, of the Company’s silicon in terms of cost of wafers was supplied by a third-party foundry in China, and these percentages could be higher in future periods.

In the first quarter of fiscal year 2019, authorized distributors accounted for approximately 69% of the Company’s net sales compared to approximately 64% in the first quarter of fiscal year 2018, excluding consideration of any impact from the Warrant Shares. Generally, the Company does not have long-term contracts with its distributors and most can terminate their agreement with little or no notice. For the first quarter of fiscal year 2019, the Company's two largest distributors were based in Asia.