Note 3 - Revenue From Contracts With Customers

3 Months Ended

Apr. 02, 2022

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
Revenue by Channel	April 2,				April 3,
(In thousands)	2022				2021
Product revenue - Distributors	$	135,413	90	%	$	98,779	85	%
Product revenue - Direct		11,565	8	%		12,813	11	%
Licensing and services		3,537	2	%		4,124	4	%
Total revenue	$	150,515	100	%	$	115,716	100	%
Revenue by Geographical Market
(In thousands)
United States	$	17,703	12	%	$	9,110	8	%
Other Americas		3,837	3	%		6,733	6	%
Americas		21,540	15	%		15,843	14	%
China		75,431	50	%		67,119	58	%
Japan		18,903	13	%		7,777	7	%
Other Asia		14,418	9	%		13,494	11	%
Asia		108,752	72	%		88,390	76	%
Europe		20,223	13	%		11,483	10	%
Total revenue	$	150,515	100	%	$	115,716	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. 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 from the customers of the HDMI licensing 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 three months of fiscal 2022:

(In thousands)
Contract assets as of Year Ended January 1, 2022	$	5,672
Revenues recorded during the period		3,061
Transferred to Accounts receivable or collected		(3,942	)
Contract assets as of April 3, 2022	$	4,791

Contract liabilities are included in Accrued expenses on our Consolidated Balance Sheets. The following table summarizes activity during the first three months of fiscal 2022:

(In thousands)
Contract liabilities as of Year Ended January 1, 2022	$	4,768
Accruals for estimated future stock rotation and scrap returns		1,396
Less: Release of accruals for recognized stock rotation and scrap returns		(1,424	)
Contract liabilities as of April 3, 2022	$	4,740