Note 14 - Segment and Geographical Information

3 Months Ended

May 03, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

14.           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, 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, 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, which we receive from the license of our technology to third parties.

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

Three Months Ended	DTV		Home networking		Set-top box		Home control		License and other		Total
May 3, 2014
Revenue from external customers	$	6,063	$	16,120	$	5,689	$	6,140	$	2,861	$	36,873
Gross profit	$	2,871	$	8,922	$	2,715	$	3,223	$	2,494	$	20,225
May 4, 2013
Revenue from external customers	$	15,842	$	20,181	$	9,315	$	4,589	$	2,613	$	52,540
Gross profit	$	5,993	$	12,241	$	4,253	$	1,932	$	2,527	$	26,946

A reconciliation of target market gross profit to consolidated loss before income taxes is as follows (in thousands):

	Three Months Ended
	May 3, 2014			May 4, 2013
Total gross profit from target markets	$	20,225		$	26,946
Operating expenses		28,668			31,046
Gain on sale of development project		-			1,079
Interest and other (expense) income, net		(52	)		691
Loss before income taxes	$	(8,495	)	$	(2,330	)

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 3, 2014		May 4, 2013
Asia	$	29,246	$	38,039
North America		4,336		5,030
Europe		2,302		7,990
Other Regions		989		1,481
Net revenue	$	36,873	$	52,540

During the three months ended May 3, 2014, Benchmark Electronics accounted for 11% of our net revenue. During the three months ended May 4, 2013, Flextronics and TP Vision accounted for 14% and 11% of our net revenue, respectively.

As of May 3, 2014, Benchmark Electronics and Nanning Fugui Precision accounted for approximately 19% and 13% of net accounts receivable, respectively. As of May 4, 2013, no customer exceeded more than 10% of net accounts receivable.