Supplemental Financial Statement Data (Tables)

3 Months Ended

Dec. 28, 2012

Inventories

Inventories consisted of the following:

	December 28,		September 28,
	2012		2012
	(in thousands)
Work-in-process	$	3,321	$	3,957
Finished goods		5,878		6,525
Total inventories	$	9,199	$	10,482

Licensed intangibles

Licensed intangibles consisted mainly of licenses of intellectual property.

	December 28,			September 28,
	2012			2012
	(in thousands)
Licensed intangibles	$	30,074		$	28,145
Accumulated amortization		(7,050	)		(6,286	)
Licensed intangibles, net	$	23,024		$	21,859
Weighted-average remaining life		65 months			59 months

Amortization of License Agreements Included in Cost of Goods Sold

Amortization of licensed intangible assets included in costs of goods sold was as follows:

	Three Months Ended
	December 28, 2012		December 30, 2011
	(in thousands)
Amortization expense of licensed intangibles	$	659	$	643

Estimated Future Amortization of Existing Intangible Assets, Excluding IPR&D

Estimated future amortization of existing acquired intangible assets, excluding IPR&D, is as follows:

	Acquired Intangible Assets Amortization by Fiscal Year
	remainder of 2013		2014		2015		2016		2017		Thereafter		Total
	(in thousands)
Cost of goods sold	$	736	$	983	$	983	$	983	$	983	$	6,242	$	10,910
Selling, general and adminstrative		284		214		214		214		214		291		1,431
	$	1,020	$	1,197	$	1,197	$	1,197	$	1,197	$	6,533	$	12,341

Acquired Intangibles

Acquired intangibles consisted of the following:

	December 28, 2012
	Gross		Accumulated Amortization			Net		Weighted- Average Useful Life
	(in thousands)							(in years)
Trade names and trademarks	$	310	$	(188	)	$	122	1.5
Developed technology		11,800		(889	)		10,911	12
Customer relationships		1,500		(192	)		1,308	7
In-process research and development		800		—			800	Indefinite
	$	14,410	$	(1,269	)	$	13,141

	September 28, 2012
	Gross		Accumulated Amortization			Net		Weighted- Average Useful Life
	(in thousands)							(in years)
Trade names and trademarks	$	310	$	(136	)	$	174	1.5
Developed technology		11,800		(643	)		11,157	12
Customer relationships		1,500		(139	)		1,361	7
In-process research and development		800		—			800	Indefinite
	$	14,410	$	(918	)	$	13,492

Amortization of Acquired Intangible Assets Included in Costs of Goods Sold and Operating Expense Categories

Amortization of acquired intangible assets included in the costs of goods sold and operating expense categories was as follows:

	Three Months Ended
	December 28,		December 30,
	2012		2011
	(in thousands)
Cost of goods sold	$	247		—
Selling, general and adminstrative		104		—
	$	351		—

Deferred Income on Sales to Distributors

Deferred income on sales to distributors was as follows:

	December 28,			September 28,
	2012			2012
	(in thousands)
Deferred revenue on shipments to distributors	$	3,947		$	4,722
Deferred cost of goods sold on shipments to distributors		(377	)		(362	)
Reserves		36			36
Deferred income on sales to distributors	$	3,606		$	4,396

Details of Other Liabilities

Details of other liabilities were as follows:

	December 28,		September 28,
	2012		2012
	(in thousands)
Current
Deferred rent	$	48	$	53
Capital lease obligations		264		321
Accrued royalties		364		379
Accrued license fees		486		860
Accrued income taxes		652		707
Restructuring		892		427
Accrued interest		683		913
Escrow payable		3,491		3,491
Accrued professional fees		900		837
Other		1,809		2,673
Total other current liabilities		9,589	$	10,661
Long-term
Deferred rent		4,979	$	5,044
Capital lease obligations		58		68
Licensed intangibles payable		713		699
Other		1,103		956
Total other liabilities	$	6,853	$	6,767

Computation of Net (Loss)/Income Per Share

The following table presents the computation of net income/(loss) per share:

	Three Months Ended
	December 28,		December 30,
	2012		2011
Earnings per share - basic
Net income/(loss)	$	1,077	$	(5,598	)
Basic weighted average common shares outstanding		39,497		32,900
Earnings/(loss) per share - basic	$	0.03	$	(0.17	)
Basic weighted average common shares outstanding	$	39,497	$	32,900
Effect of dilutive securities:
Convertible senior notes		—		—
Dilutive stock awards		546		—
Dilutive employee stock purchase plan shares		15		—
Diluted weighted average common shares outstanding		40,058		32,900
Earnings/(loss) per share - diluted	$	0.03	$	(0.17	)

Anti-Dilutive Shares Excluded from Calculation of Diluted Net Loss Per Share

The following table presents the number of potentially dilutive shares of the Company’s common stock excluded from the computation of diluted net income/(loss) per share as their effect would have been anti-dilutive:

	Three Months Ended
	December 28,		December 30,
	2012		2011
	(in thousands)
6.75% convertible senior notes		8,205		—
6.50% convertible senior notes		3,165		3,165
Stock awards		3,728		3,140
Employee stock purchase plan shares		—		27
Warrants		6,109		6,109
Anti-dilutive weighted average common shares		21,207		12,441

Net Revenue by Product Line

Net revenue by new product lines was as follows:

	Three Months Ended
	December 28,		December 30,
	2012		2011
	(in thousands)
High-performance analog	$	19,190	$	14,344
Communication processors		14,630		19,226
Wireless infrastructure		4,574		272
Intellectual property		6,000		90
Total net revenue	$	44,394	$	33,932

Net revenue by historical product lines was as follows:

	Three Months Ended
	December 28,		December 30,
	2012		2011
	(in thousands)
High-performance analog products	$	19,190	$	14,344
Communications convergence processing products		14,051		14,989
WAN communications products		5,153		4,509
Intellectual property		6,000		90
Total net revenue	$	44,394	$	33,932

Revenue by Geographic Area Based upon Country of Destination

Revenue by geographic area, based upon country of destination, was as follows:

	Three Months Ended
	December 28,		December 30,
	2012		2011
	(in thousands)
Americas	$	11,510	$	5,516
Asia-Pacific		29,430		26,558
Europe, Middle East and Africa		3,454		1,858
Total net revenue	$	44,394	$	33,932

Supplemental Cash Flow Information

Non-cash investing and financing activities consisted of the following:

	Three Months Ended
	December 28,		December 30,
	2012		2011
	(in thousands)
Interest paid	$	1,329	$	—
Income taxes paid, net of refunds received		125		41
Purchase of property and equipment on account		47		264
License of intellectual property on account		23		4,428
Leasehold improvements paid by landlord		805		—

Direct Customers and/or Distributors Accounted for 10% or More of Net Revenue

The following direct customers and/or distributors accounted for 10% or more of net revenue in the periods presented:

	Three Months Ended
	December 28,			December 30,
	2012			2011
Customer A		31	%		21	%
Customer B		16	%		20	%

Direct Customers and/or Distributors Accounted for 10% or More of Total Accounts Receivable

The following direct customers and/or distributors accounted for 10% or more of total accounts receivable at each period end:

	December 28,			September 28,
	2012			2012
Customer A		28	%		20	%
Customer B		16	%		19	%

Licensed Intangibles

Estimated Future Amortization of Existing Intangible Assets, Excluding IPR&D

Estimated future amortization of existing licensed intangible assets, is as follows:

	Licensed Intangible Assets Amortization by Fiscal Year
	remainder of
	2013		2014		2015		2016		2017		Thereafter		Total
	(in thousands)
Cost of goods sold	$	2,486	$	4,524	$	4,622	$	3,728	$	3,728	$	3,936	$	23,024