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Note 16 - Segment and Geographical Information
12 Months Ended
Feb. 03, 2018
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
16
.          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 and accompanying revenue information by product group, by target market and by 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 SoC solutions which we sell across both of our target markets. Connected Smart TV Platforms consist of all products that are sold into digital televisions as well as other adjacent markets using chipset products that are designed for video post-processing, products delivering IP streaming video including hybrid versions of these products and communication devices that use a standard protocol to connect equipment inside the home and stream IP-based video and audio, VoIP, or data through wired or wireless connectivity.
 
IoT Devices consist of both smart home applications (including gateways and automated consumer devices) and mobile IoT applications (primarily tracking tags). Our smart home product line is marketed under our Z-Wave brand of wireless chips, modules and Z-Wave mesh networking protocol. We derived a portion of our IoT Devices revenue from the achievement of a milestone under a development agreement in connection with our acquisition of Bretelon in the amount of
zero
 and
$5.0
million in fiscal years
2018
and
2017,
respectively
 
Our License and other markets include revenue derived from the licensing of our technology to
third
parties and other sources. Revenue derived from other sources includes software development kits, and engineering support services for hardware and software. Such revenue is
not
significant as it represented
0.7%,
0.1%,
and
zero
of our total net revenue in fiscal
2018,
2017
and
2016,
respectively.
 
The following tables set forth net revenue attributable to each target market (in thousands):
 
   
Fiscal Years Ended
 
   
February 3,
2018
   
January 28,
2017
   
January 30,
2016
 
                         
Connected Smart TV Platforms
  $
83,865
    $
175,085
    $
180,360
 
IoT Devices
   
53,406
     
45,159
     
46,792
 
License and Other
   
2,200
     
300
     
98
 
Less: Discontinued operations
   
(73,566
)    
(86,137
)    
(101,499
)
Net revenue
  $
65,905
    $
134,407
    $
125,751
 
 
The following table sets forth net revenue for each geographic region based on the ship-to location of customers (in thousands):
 
   
Fiscal Years Ended
 
   
February 3,
2018
   
January 28,
2017
   
January 30,
2016
 
                         
Asia
  $
115,451
    $
180,104
    $
172,773
 
North America
   
15,476
     
32,732
     
42,335
 
Europe
   
8,544
     
7,692
     
10,292
 
Other regions
   
-
     
16
     
1,850
 
Less: Discontinued operations
   
(73,566
)    
(86,137
)    
(101,499
)
Net revenue
  $
65,905
    $
134,407
    $
125,751
 
 
 
The following table sets forth net revenue to each significant country based on the ship-to location of customers (in thousands):
 
   
Fiscal Years Ended
 
   
February 3,
2018
   
January 28,
2017
   
January 30,
2016
 
                         
China, including Hong Kong
  $
65,048
    $
110,195
    $
93,560
 
Taiwan
   
38,673
     
51,093
     
50,301
 
United States
   
13,892
     
32,367
     
41,781
 
Thailand
   
1,852
     
9,487
     
13,532
 
Rest of the world
   
20,006
     
17,402
     
28,076
 
Less: Discontinued operations
   
(73,566
)    
(86,137
)    
(101,499
)
Net revenue
  $
65,905
    $
134,407
    $
125,751
 
 
 
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):
 
   
February 3,
2018
   
January 28,
2017
 
                 
United States
  $
3,337
    $
11,923
 
Singapore
   
962
     
3,917
 
All other countries
   
1,879
     
2,683
 
Less: Assets held for sale
   
(1,839
)    
(7,265
)
Long-lived assets
  $
4,339
    $
11,258
 
 
The following table sets forth the major direct customers that accounted for
10%
or more of our net revenue:
 
   
Fiscal Years Ended
 
   
February 3,
2018
   
January 28,
2017
   
January 30,
2016
 
                         
Sunjet Components Corp
   
22
%    
20
%    
16
%
Silicon Application
   
10
%    
13
%    
*
 
Arris Global
   
*
     
14
%    
*
 
* Accounted for less than
10%
of net revenue.
 
Net revenue from each of the aforementioned major direct customers was primarily generated through the Connected Smart TV Platforms market.