Significant Customers and Concentration of Credit Risk

12 Months Ended

Jan. 03, 2022

Risks And Uncertainties [Abstract]

Significant Customers and Concentration of Credit Risk

(11) Significant Customers and Concentration of Credit Risk

In the normal course of business, the Company extends credit to its customers. Some customers to whom the Company extends credit are located outside the United States. The Company performs ongoing credit evaluations of customers, does not require collateral, and considers the credit risk profile of the entity from which the receivable is due in further evaluating collection risk.

The Company’s customers include both OEMs and EMS companies. The Company’s OEM customers often direct a significant portion of their purchases through EMS companies. While the Company’s customers include both OEM and EMS providers, the Company measures customer concentration based on OEM companies, as they are the ultimate end customers.

For the years ended January 3, 2022 and December 28, 2020, one customer accounted for approximately 10% and 11% of the Company’s net sales, respectively. There were no customers that accounted for 10% or more of net sales for the year ended December 30, 2019.