Note 17. Segment and Geographical Information

6 Months Ended

Aug. 03, 2013

Segment Reporting [Abstract]

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 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				Six Months Ended
	August 3, 2013		July 28, 2012		August 3, 2013		July 28, 2012
DTV	$	14,438	$	29,055	$	30,280	$	31,626
Home Networking		19,557		22,418		39,738		43,256
Set-top Box		11,480		11,933		20,795		25,475
Home Control		5,849		3,222		10,438		6,406
License and Other		2,438		1,623		5,051		1,746
Net revenue	$	53,762	$	68,251	$	106,302	$	108,509

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

	Three Months Ended				Six Months Ended
	August 3, 2013		July 28, 2012		August 3, 2013		July 28, 2012
Asia	$	40,426	$	44,314	$	78,466	$	80,918
North America		5,630		5,325		10,660		7,191
Europe		5,978		15,924		13,968		16,513
Other regions		1,728		2,688		3,208		3,887
Net revenue	$	53,762	$	68,251	$	106,302	$	108,509

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

	Three Months Ended				Six Months Ended
	August 3, 2013		July 28, 2012		August 3, 2013		July 28, 2012
China, including Hong Kong	$	28,670	$	32,465	$	56,175	$	62,543
Hungary		4,091		12,159		9,669		12,159
United States		5,412		4,517		9,983		5,889
Rest of the world		15,589		19,110		30,475		27,918
Net revenue	$	53,762	$	68,251	$	106,302	$	108,509

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

	Three Months Ended						Six Months Ended
	August 3, 2013			July 28, 2012			August 3, 2013			July 28, 2012
TP Vision		*			18	%		*			11	%
Flextronics		10	%		*			12	%		12	%
Motorola		*			*			*			12	%

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