Note 10 - Information Concerning Product Lines, Geographic Information, and Revenue Concentration

9 Months Ended

Oct. 01, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 10 — Information Concerning Product Lines, Geographic Information and Revenue Concentration

The Company identifies its business segment based on business activities, management responsibility and geographic location. For all periods presented, the Company operated in a single reportable business segment.

The following is a breakdown of revenue by product family (in thousands):

	Three Months Ended				Nine Months Ended
	October 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
New products	$	6,096	$	2,252	$	11,384	$	8,833
Mature products		569		1,207		2,335		3,263
Total revenue	$	6,665	$	3,459	$	13,719	$	12,096

New products revenue consists of revenues from the sale of hardware products manufactured on 180 nanometer or smaller semiconductor processes, eFPGA IP license and eFPGA-related professional services, QuickAI and SensiML AI software as a service (SaaS) revenue. Mature products include all products produced on semiconductor processes larger than 180 nanometer.

The following is a breakdown of new product revenue (in thousands):

	Three Months Ended				Nine Months Ended
	October 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
Hardware products	$	248	$	308	$	776	$	3,607
eFPGA IP and professional services		5,838		1,700		10,505		4,911
SaaS & Other		10		244		103		315
New products revenue	$	6,096	$	2,252	$	11,384	$	8,833

eFPGA IP revenue for the three months ended October 1, 2023 and October 2, 2022 was $5.8 million and $1.7 million, respectively, which were primarily professional services revenue.

Contract assets related to professional services revenue were $4.0 million and $1.5 million as of October 1, 2023 and October 2, 2022, respectively. Contract liabilities related to professional services revenue were $304 thousand and $165 thousand as of October 1, 2023 and October 2, 2022, respectively.

The tables below present disaggregated revenues by geographical location. Revenue attributed to geographic location is based on the destination of the product or service. Substantially all revenues in North America were in the United States. Revenue in the United States was $6.0 million, or 91% of total revenue, and $11.7 million, or 85% of total revenue for the three and nine months ended October 1, 2023, respectively, and $2.3 million, or 67% of total revenue, and $7.8 million, or 64% of total revenue for the three and nine months ended October 2, 2022, respectively.

The following is a breakdown of revenue by destination (in thousands): 

	Three Months Ended				Nine Months Ended
	October 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
Asia Pacific	$	371	$	783	$	1,540	$	3,114
North America		6,051		2,389		11,739		7,904
Europe		243		287		440		1,078
Total revenue	$	6,665	$	3,459	$	13,719	$	12,096

The following distributors and customers accounted for 10% or more of the Company's revenue for the periods presented:

	Three Months Ended						Nine Months Ended
	October 1,			October 2,			October 1,			October 2,
	2023			2022			2023			2022
Distributor "A"		*			20	%		11	%		15	%
Distributor "B"		*			*			*			16	%
Distributor "C"		*			10	%		*			*
Customer "A"		84	%		30	%		67	%		*
Customer "B"		*			13	%		*			*
Customer "C"		*			12	%		*			20	%
Customer "F"		*			*			*			16	%

* Represents less than 10% of revenue as of the dates presented.

The following distributors and customers accounted for 10% or more of the Company's accounts receivable as of the dates presented:

	October 1,			January 1,
	2023			2023
Distributor "A"		*			14	%
Customer "A"		89	%		*
Customer "C"		*			22	%
Customer "F"		*			44	%