Revenue Recognition

3 Months Ended

Aug. 02, 2025

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 for product sales revenue and location of contracting entity for IP license revenue, which may differ from the customer’s principal offices (in thousands):

	Three Months Ended
	August 2, 2025		August 3, 2024
Hong Kong	$	74,885	$	29,272
United States	82,828		10,800
Mainland China	51,781		9,748
Rest of World	13,580		9,894
	$	223,074	$	59,714

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 August 2, 2025 and May 3, 2025.

Contract assets are presented within the “Other current assets” caption on the consolidated balance sheet. The Company had a contract asset balance of $10.8 million as of August 2, 2025, compared to $9.9 million as of May 3, 2025. The increase in contract assets of $0.9 million was primarily driven by IP license revenue where certain billing milestones were not met prior to the timing of revenue recognition.

Deferred revenue is presented within the “Other current liabilities” and “Other non-current liabilities” captions on the consolidated balance sheet. The Company had a deferred revenue balance of $3.1 million as of August 2, 2025, compared to $1.5 million as of May 3, 2025. The increase in deferred revenue of $1.6 million was primarily due to an advance received from a customer.

During the three months ended August 2, 2025, the Company recognized $0.4 million of revenue that was included in the deferred revenue balance as of May 3, 2025. During the three months ended August 3, 2024, the Company recognized $1.3 million of revenue that was included in the deferred revenue balance as of April 27, 2024.

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 $3.4 million and the satisfied but unrecognized performance obligation was approximately $0.7 million as of August 2, 2025 which the Company expects to recognize over the next 12 months. The Company applied a performance constraint on the satisfied but unrecognized performance obligation due to uncertainty around the collectability of milestone payments.

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 4.1 million 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. A total of 4.1 million Customer Warrant shares were fully vested and remained unexercised as of August 2, 2025 and May 3, 2025.