Revenue Recognition

9 Months Ended

Jan. 27, 2024

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				Nine Months Ended
	January 27, 2024		January 28, 2023		January 27, 2024		January 28, 2023
Hong Kong	$	28,393	$	1,583	$	48,885	$	8,636
United States	15,436		16,513		29,688		35,001
Taiwan	3,482		2,048		13,730		1,297
Mainland China	798		29,233		22,415		83,412
Rest of World	4,949		4,893		17,470		23,760
	$	53,058	$	54,270	$	132,188	$	152,106

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 January 27, 2024 and April 29, 2023.

During the nine months ended January 27, 2024, the Company recognized $3.7 million of revenue that was included in the deferred revenue balance as of April 29, 2023. During the nine months ended January 28, 2023, the Company recognized $1.1 million of revenue that was included in the deferred revenue balance as of April 30, 2022.

During the nine months ended January 27, 2024, the increase in contract assets of $9.2 million was primarily driven by a product engineering services arrangement where certain billing milestones were not met prior to the timing of revenue recognition.

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 $16.5 million and the satisfied but unrecognized performance obligation was approximately $10.1 million as of January 27, 2024, 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 January 27, 2024, we had billed $33.4 million and recognized revenue amounting to $33.9 million upon achievement of certain milestones under the contract. We have applied constraints on a remaining milestone due to significant uncertainty relating to the achievement of the milestone as of January 27, 2024 associated with dependency on actions by the customer. The constraint 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 the Company’s ordinary shares at an exercise price of $10.74 per share (the “Customer Warrant”). The exercise period of the Customer Warrant is through the seventh anniversary of the issue date. Upon issuance of the Customer 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 580,000 and 80,000 of the shares issuable upon exercise of the Customer Warrant were vested as of January 27, 2024 and April 29, 2023, respectively.

Using a grant date fair value of $4.65, the Company recognized $1.0 million and $1.8 million for the three and nine months ended January 27, 2024, respectively, and $0.3 million and $0.9 million for the three and nine months ended January 28, 2023, respectively, as contra revenue within product sales revenue on the condensed consolidated statements of operations.