Note 17. Segment and Geographical Information

3 Months Ended

May 04, 2013

Segment Reporting Disclosure [Text Block]

17.           Segment and geographical information

Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance.  We are organized as, and operate in, one reportable segment.  Our operating segment consists of our geographically based entities in the United States, Hong Kong, Israel and Singapore.  Our chief operating decision-maker reviews consolidated financial information, accompanied by information about revenue by product group, target market and geographic region.  We do not assess the performance of our geographic regions on other measures of income or expense or net income.

We sell our products into four primary target markets, which are the DTV market, home networking market, set-top box market, and home control and energy management market. We also have license revenue, included in the license and other market, that complements our home control customer solutions. Starting with the first quarter of fiscal 2014, we have defined the DTV market to include all products that are sold into digital televisions as well as other adjacent markets using chipset products that are designed for video post-processing and have eliminated the prosumer and industrial audio/video market as a separate revenue segment as the majority of demand accruing from these sales will be represented in the DTV market segment. Also starting with the first quarter of fiscal 2014, we have defined the set-top box market to include all set-top box products delivering IP streaming video, including hybrid versions of these products, and we have eliminated the connected media player market as a separate revenue market as the majority of demand accruing from these sales will be represented in the set-top box market segment.

The following table sets forth net revenue attributable to each target market (in thousands):

	Three Months Ended
	May 4, 2013		April 28, 2012
DTV	$	15,842	$	2,571
Home networking		20,181		20,838
Set-top box		9,315		13,542
Home control and energy management		4,589		3,184
License and other		2,613		123
Net revenue	$	52,540	$	40,258

The following table sets forth net revenue for each geographic region based on the ship-to location of customers (in thousands):

	Three Months Ended
	May 4, 2013		April 28, 2012
Asia	$	38,039	$	36,604
North America		5,030		1,866
Europe		7,990		589
Other Regions		1,481		1,199
Net revenue	$	52,540	$	40,258

The following table sets forth net revenue to each significant country based on the ship-to location of customers (in thousands):

	Three Months Ended
	May 4, 2013		April 28, 2012
China, including Hong Kong	$	27,505	$	30,077
Hungary		5,577		*
United States		4,570		1,372
Thailand		4,120		*
Taiwan		3,416		3,382
Brazil		1,478		1,184
Japan		*		1,836
Rest of the world		5,042		1,558
Net revenue	$	52,540	$	40,258

The following table sets forth the major customers that accounted for 10% or more of our net revenue:

	Three Months Ended
	May 4, 2013			April 28, 2012
Flextronics		14	%		16	%
TP Vision		11	%		*
Motorola		*			16	%
Gemtek		*			14	%

 * Accounted for less than 10% of our period net revenue.