Note 3 - Revenue From Contracts With Customers

6 Months Ended

Jul. 01, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note 3 - Revenue from Contracts with Customers

Disaggregation of revenue

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

	Three Months Ended								Six Months Ended
Revenue by Channel	July 1,				July 2,				July 1,				July 2,
(In thousands)	2023				2022				2023				2022
Distributors	$	169,362	89	%	$	143,705	89	%	$	330,708	88	%	$	279,118	90	%
Direct		20,717	11	%		17,667	11	%		43,681	12	%		32,769	10	%
Total revenue	$	190,079	100	%	$	161,372	100	%	$	374,389	100	%	$	311,887	100	%
Revenue by Geographical Market
(In thousands)
China		55,834	30	%		80,735	50	%		111,556	30	%		156,166	50	%
Japan		38,728	20	%		16,957	10	%		68,745	18	%		35,860	12	%
Other Asia		24,461	13	%		21,028	13	%		44,477	12	%		35,446	11	%
Asia		119,023	63	%		118,720	73	%		224,778	60	%		227,472	73	%
Americas		32,668	17	%		22,282	14	%		74,571	20	%		43,822	14	%
Europe		38,388	20	%		20,370	13	%		75,040	20	%		40,593	13	%
Total revenue	$	190,079	100	%	$	161,372	100	%	$	374,389	100	%	$	311,887	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 distributed to us by 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 six months of fiscal 2023:

(In thousands)
Contract assets as of December 31, 2022	$	7,347
Revenues recorded during the period		6,198
Transferred to Accounts receivable or collected		(5,319	)
Contract assets as of July 1, 2023	$	8,226

Contract liabilities are included in Accrued liabilities on our Consolidated Balance Sheets. The following table summarizes activity during the first six months of fiscal 2023:

(In thousands)
Contract liabilities as of December 31, 2022	$	17,666
Less: Product shipments from prepaid customer deposit		(12,826	)
Accruals for estimated future stock rotation and scrap returns		3,222
Less: Release of accruals for recognized stock rotation and scrap returns		(4,125	)
Contract liabilities as of July 1, 2023	$	3,937