Segment Information

The Company’s CEO functions as the CODM. The Company’s CODM makes operating decisions and assesses performance based on these operating segments. As part of a realignment strategy, during the first quarter of fiscal year 2019, the Company restructured and combined the Power and High Reliability operating segment with the Wireless and Sensing operating segment to better align resources with our LoRa® initiatives. This resulted in the Company having three operating segments compared to previously having four operating segments. The three operating segments: Protection, Signal Integrity, and Wireless and Sensing, all have similar economic characteristics and have been aggregated into one reportable segment identified in the table below as the "Semiconductor Products Group".

The Company’s assets are commingled among the various operating segments and the CODM does not use that information in making operating decisions or assessing performance. Therefore, the Company has not included asset information by segment below.

Net sales by segment are as follows:



	Three Months Ended
(in thousands)	April 29, 2018		April 30, 2017
Semiconductor Products Group	$	130,429	$	143,802
Total	$	130,429	$	143,802

Income by segment and reconciliation to consolidated operating income:



	Three Months Ended
(in thousands)	April 29, 2018			April 30, 2017
Semiconductor Products Group	$	40,812		$	39,222
Operating income by segment	40,812			39,222
Items to reconcile segment operating income to consolidated income before taxes
Share-based compensation	35,516			13,286
Intangible amortization	6,961			6,286
Other non-segment related expenses	1,432			1,204
Amortization of fair value adjustments related to acquired property, plant and equipment	—			190
Interest expense, net	2,190			2,046
Non-operating expense, net	(190		)	632
(Loss) income before taxes	$	(5,097	)	$	15,578

Information by Product Line

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:



	Three Months Ended
(in thousands, except percentages)	April 29, 2018					April 30, 2017
Signal Integrity	$	65,599		50	%	$	68,058		49	%
Protection	40,792			31	%	42,249			29	%
Wireless and Sensing	45,539			35	%	38,775			26	%
Other: Warrant Shares ⁽¹⁾	(21,501		)	(16	)%	(5,280		)	(4	)%
Total net sales	$	130,429		100	%	$	143,802		100	%

⁽¹⁾The cost of the Warrant granted was recognized as an offset to net sales over the respective performance period.

Information by Sales Channel



	Three Months Ended
(in thousands)	April 29, 2018			April 30, 2017
Distributor	$	111,340		$	100,542
Direct	40,590			48,540
Other: Warrant Shares	(21,501		)	(5,280		)
Total net sales	$	130,429		$	143,802

Geographic Information

The Company generates virtually all of its sales from its Semiconductor Products Group through sales of analog and mixed-signal devices.

Net sales activity by geographic region is as follows:



	Three Months Ended
	April 29, 2018		April 30, 2017
Asia-Pacific	68	%	75	%
North America	27	%	22	%
Europe	9	%	7	%
Other: Warrant Shares	(4	)%	(4	)%
	100	%	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 presented:



	Three Months Ended
(percentage of total sales)	April 29, 2018		April 30, 2017
China (including Hong Kong)	50	%	52	%
United States	14	%	9	%