Note 9 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

9. COMMITMENTS AND CONTINGENCIES

Product Warranties

The following table presents changes in the warranty reserve (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Balance at beginning of period	$	1,748		$	3,951		$	4,564		$	2,416
Warranty provision for product sales		92			3,840			671			5,654
Settlements made		(326	)		(36	)		(2,625	)		(100	)
Unused warranty provision		(247	)		(2,821	)		(1,343	)		(3,036	)
Balance at end of period	$	1,267		$	4,934		$	1,267		$	4,934

Purchase Commitments

The Company has outstanding purchase commitments with its suppliers and other parties that require the future purchase of goods or services, which primarily consist of wafer purchases, assembly and other manufacturing services, construction services and license arrangements. As of  September 30, 2019, the Company’s outstanding purchase obligations totaled approximately $70.9 million.

Litigation

The Company is a party to actions and proceedings in the ordinary course of business, including potential litigation initiated by its stockholders, challenges to the enforceability or validity of its intellectual property, claims that the Company’s products infringe on the intellectual property rights of others, and employment matters. These proceedings often involve complex questions of fact and law and  may require the expenditure of significant funds and the diversion of other resources to prosecute and defend. The Company defends itself vigorously against any such claims. As of  September 30, 2019, there were no material pending legal proceedings to which the Company was a party.