Note 3 - Revenue From Contracts With Customers

9 Months Ended

Oct. 02, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Disaggregation of revenue

The following tables provide information about revenue from contracts with customers disaggregated by major class of revenue, revenue by channel, and by geographical market, based on ship-to location of the customer:

	Three Months Ended								Nine Months Ended
Major Class of Revenue	October 2,				September 26,				October 2,				September 26,
(In thousands)	2021				2020				2021				2020
Product	$	127,417	97	%	$	96,650	94	%	$	361,545	97	%	$	285,871	95	%
Licensing and services		4,494	3	%		6,392	6	%		11,987	3	%		15,076	5	%
Total revenue	$	131,911	100	%	$	103,042	100	%	$	373,532	100	%	$	300,947	100	%
Revenue by Channel
(In thousands)
Product revenue - Distributors	$	118,227	90	%	$	84,409	82	%	$	328,174	88	%	$	245,016	81	%
Product revenue - Direct		9,190	7	%		12,241	12	%		33,371	9	%		40,855	14	%
Licensing and services revenue		4,494	3	%		6,392	6	%		11,987	3	%		15,076	5	%
Total revenue	$	131,911	100	%	$	103,042	100	%	$	373,532	100	%	$	300,947	100	%
Revenue by Geographical Market
(In thousands)
United States	$	11,022	8	%	$	10,455	10	%	$	31,804	8	%	$	33,634	11	%
Other Americas		9,239	7	%		4,857	5	%		22,126	6	%		12,772	4	%
Americas		20,261	15	%		15,312	15	%		53,930	14	%		46,406	15	%
China		76,692	58	%		58,122	56	%		208,632	56	%		154,086	51	%
Taiwan		4,549	4	%		7,505	7	%		13,940	4	%		24,957	8	%
Japan		7,877	6	%		4,346	4	%		24,490	6	%		18,780	6	%
Other Asia		9,779	7	%		9,766	10	%		36,680	10	%		25,169	9	%
Asia		98,897	75	%		79,739	77	%		283,742	76	%		222,992	74	%
Europe		12,753	10	%		7,991	8	%		35,860	10	%		31,549	11	%
Total revenue	$	131,911	100	%	$	103,042	100	%	$	373,532	100	%	$	300,947	100	%

Contract balances

Our contract assets relate to our rights to consideration for licenses and royalties due to us as a member of the HDMI Founders consortium, with collection dependent on events other than the passage of time, such as collection of licenses and royalties from customers by the HDMI licensing agent. The balance results primarily from the amount of estimated revenue related to HDMI that we have recognized to date, but which has not yet been collected by the agent. Contract assets are included in Prepaid expenses and other current assets on our Consolidated Balance Sheets. The following table summarizes activity during the first nine months of fiscal 2021:

(In thousands)
Contract assets as of January 2, 2021	$	5,611
Revenues recorded during the period		10,954
Transferred to Accounts receivable or collected		(11,355	)
Contract assets as of October 2, 2021	$	5,210

Contract liabilities are included in Accrued expenses on our Consolidated Balance Sheets. The following table summarizes activity during the first nine months of fiscal 2021:

(In thousands)
Contract liabilities as of January 2, 2021	$	3,068
Accruals for estimated future stock rotation and scrap returns		4,068
Less: Release of accruals for recognized stock rotation and scrap returns		(2,007	)
Contract liabilities as of October 2, 2021	$	5,129