Revenue Recognition

3 Months Ended

Jul. 29, 2023

Revenue Recognition and Deferred Revenue [Abstract]

Revenue Recognition

Revenue Recognition

The following table summarizes revenue disaggregated by primary geographical market based on destination of shipment and location of contracting entity, which may differ from the customer’s principal offices (in thousands):

	Three Months Ended
	July 29, 2023		July 30, 2022
Mainland China	$	16,081	$	22,757
United States	6,415		12,072
Hong Kong	1,990		4,765
Taiwan	5,346		67
Rest of World	5,263		6,806
	$	35,095	$	46,467

Contract Balances

The contract assets are primarily related to the Company’s fixed fee IP licensing arrangements and rights to consideration for performance obligations delivered but not billed as of July 29, 2023 and April 29, 2023.

During the three months ended July 29, 2023, the Company recognized $1.3 million of revenue that was included in the deferred revenue balance as of April 29, 2023. During the three months ended July 30, 2022, the Company recognized $0.7 million of revenue that was included in the deferred revenue balance as of April 30, 2022.

During the three months ended July 29, 2023, the decrease in contract assets of $1.4 million was primarily driven by an IP licensing arrangement and a product engineering services arrangement where certain billing milestones had been reached subsequent to the timing of revenue recognition.

During the three months ended July 29, 2023, the decrease in deferred revenue of $0.9 million was primarily due to revenue recognized from a customer advance.

Remaining Performance Obligations

Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. The contracted but unsatisfied performance obligation was approximately $25.1 million and the satisfied but unrecognized performance obligations was approximately $10.1 million as of July 29, 2023, which the Company expects to recognize over the next year. The amounts stated above include amounts relating to an IP licensing and development contract we entered into with a customer in September 2021, for total cash consideration of $43.5 million, which is receivable over an estimated period of three years upon meeting certain contractual milestones. As of July 29, 2023, we had billed $33.1 million and recognized revenue amounting to $33.3 million upon delivery of certain milestones of the contract. We have applied constraints on a remaining milestone due to significant uncertainty relating to the delivery of the milestone as of July 29, 2023 associated with dependency on actions by the customer. The constraints will be re-evaluated at each future reporting period.

Customer Warrant

During fiscal year 2022, the Company issued a warrant to Amazon.com NV Investment Holdings LLC (“Holder”) to purchase an aggregate of up to 4,080,000 of our ordinary shares at an exercise price of $10.74 per share (the “Warrant”). The exercise period of the Warrant is through the seventh anniversary of the issue date. Upon issuance of the Warrant, 40,000 of the shares issuable upon exercise of the Warrant vested immediately and the remainder of the shares issuable will vest in tranches over the contract term based on the amount of global payments by Holder and its affiliates to us, up to $201 million in aggregate payments. A total of 80,000 Warrant shares was vested as of both July 29, 2023 and April 29, 2023.

During both the three months ended July 29, 2023 and July 30, 2022, the Company recognized $0.4 million, using a grant date fair value of $4.65, as contra revenue within the product sales revenue on the condensed consolidated statements of operations.