Note 14 - Segment and Geographical Information

6 Months Ended

Aug. 02, 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 tables set 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
August 2, 2014
Revenue from external customers	$	10,033	$	17,827	$	5,528	$	6,576	$	2,846	$	42,810
Gross profit	$	3,652	$	10,105	$	2,406	$	3,275	$	2,451	$	21,889
August 3, 2013
Revenue from external customers	$	14,438	$	19,557	$	11,480	$	5,849	$	2,438	$	53,762
Gross profit	$	5,364	$	11,107	$	6,265	$	3,059	$	2,271	$	28,066

Six Months Ended	DTV		Home networking		Set-top box		Home control		License and other		Total
August 2, 2014
Revenue from external customers	$	16,097	$	33,946	$	11,217	$	12,716	$	5,707	$	79,683
Gross profit	$	6,523	$	19,027	$	5,121	$	6,498	$	4,945	$	42,114
August 3, 2013
Revenue from external customers	$	30,280	$	39,737	$	20,795	$	10,438	$	5,052	$	106,302
Gross profit	$	11,357	$	23,348	$	10,518	$	4,991	$	4,798	$	55,012

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

	Three Months Ended						Six Months Ended
	August 2, 2014			August 3, 2013			August 2, 2014			August 3, 2013
Total gross profit from target markets	$	21,889		$	28,066		$	42,114		$	55,012
Operating expenses		27,684			29,913			56,352			60,959
Gain on sale of development project		-			-			-			1,079
Interest and other income, net		372			121			320			812
Loss before income taxes	$	(5,423	)	$	(1,726	)	$	(13,918	)	$	(4,056	)

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 2, 2014		August 3, 2013		August 2, 2014		August 3, 2013
Asia	$	34,073	$	40,426	$	63,318	$	78,466
North America		5,209		5,630		9,546		10,660
Europe		2,060		5,978		4,362		13,968
Other Regions		1,468		1,728		2,457		3,208
Net Revenue	$	42,810	$	53,762	$	79,683	$	106,302

During the three and six months ended August 2, 2014, Benchmark Electronics accounted for 14% and 13% of our net revenue, respectively. During the three and six months ended August 3, 2013, Flextronics accounted for 10% and 12% of our net revenue, respectively. 

As of August 2, 2014, Benchmark Electronics and Nanning Fugui Precision accounted for approximately 14% and 10% of net accounts receivable, respectively. As of February 1, 2014, four customers accounted for approximately 15%, 12%, 11% and 10% of net accounts receivable, respectively.