Note 15 - Segment and Geographical Information

12 Months Ended

Jan. 30, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

15. 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.

Our net revenue is derived principally from the sales of integrated semiconductor solutions, which we sell across all of our target markets. Smart TV products consist of a range of platforms that are based on highly integrated chips, embedded software, and hardware reference designs. Media Connectivity products consist of wired home networking controller chipsets that are designed to provide connectivity solutions between various home entertainment products and incoming video streams. Set-top Box products consist of connected media processors and players delivering IP streaming video, including hybrid versions of these products. IoT Devices consist of our wireless Z-Wave chipsets and modules.

Our License and other markets includes revenue derived from the licensing of our technology to third parties and other sources. Revenue derived from our licensing activities comprises the majority of this category. Revenue derived from other sources includes software development kits, engineering support services for hardware and software, and engineering development for customization of chipsets and other accessories; that revenue is not significant as it represented 0.7% of our total net revenue in both fiscal 2016 and 2015 and 0.9% for fiscal 2014

.

Historically, we disclosed information encompassing product groupings by target markets with certain naming conventions, consisting of Digital Television (“DTV”), Set-top Box, Home Networking, Home Control, and License and other. We resolved to change the naming conventions of some of our target markets, commensurate with changes taking effect in our industry as a whole. We renamed our “DTV” target market to “Smart TV,” “Home Networking” to “Media Connectivity,” and “Home Control” to “IoT Devices.” These changes did not affect the products or related services categorization, or previously reported amounts related to the aforementioned historical target markets.

The following tables set forth net revenue attributable to each target market (in thousands):

	Fiscal Years Ended
	January 30, 2016		January 31, 2015		February 1, 2014
Smart TV	$	102,870	$	48,929	$	49,600
Media Connectivity		54,952		77,305		72,927
IoT Devices		46,982		31,437		20,704
Set-top Box		20,829		24,458		38,483
License and other		1,617		6,184		17,479
Net revenue	$	227,250	$	188,313	$	199,193

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

	Fiscal Years Ended
	January 30, 2016		January 31, 2015		February 1, 2014
Asia	$	172,773	$	152,571	$	144,483
North America		42,335		20,746		28,795
Europe		10,292		12,012		22,262
Other Regions		1,850		2,984		3,653
Net revenue	$	227,250	$	188,313	$	199,193

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

	Years Ended
	January 30, 2016		January 31, 2015		February 1, 2014
China, including Hong Kong	$	93,560	$	70,513	$	95,009
Taiwan		50,301		24,346		12,479
United States		41,781		20,587		27,875
Thailand		13,532		40,703		24,490
Hungary		595		363		12,531
Rest of the world		27,481		31,801		26,809
Net revenue	$	227,250	$	188,313	$	199,193

Our long-lived assets consist primarily of our software, equipment, and leasehold improvements.

The following table sets forth our long-lived assets by geographic region based on the location of the asset (in thousands):

	Fiscal Years Ended
	January 30, 2016		January 31, 2015
United States	$	5,885	$	7,889
Singapore		5,388		10,499
All other countries		2,813		3,206
Total long-lived assets	$	14,086	$	21,594

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

	Fiscal Years Ended
	January 30, 2016			January 31, 2015			February 1, 2014
Sunjet Components Corps		16	%		*			*
Benchmark Electronics		*			13	%		*

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

Net revenue from Sunjet Components Corps and Benchmark Electronics was primarily generated through the Smart TV and Media Connectivity markets, respectively.