Geographic Information and Concentration of Risk

6 Months Ended

Jul. 29, 2012

Risks and Uncertainties [Abstract]

Geographic Informtion and Concentration of Risk

Geographic Information and Concentration of Risk

The Company operates exclusively in the semiconductor industry and primarily within the analog and mixed-signal sector.

Net sales activity by geographic region is as follows:

	Three Months Ended				Six Months Ended
	July 29, 2012		July 31, 2011		July 29, 2012		July 31, 2011
North America	18	%	25	%	19	%	26	%
Asia-Pacific	69	%	62	%	67	%	61	%
Europe	13	%	13	%	14	%	13	%
	100	%	100	%	100	%	100	%

The Company generally attributes sales to a country based on the ship-to address. The table below summarizes sales activity to countries that represented greater than 10% of total net sales:

	Three Months Ended				Six Months Ended
(percentage of total sales)	July 29, 2012		July 31, 2011		July 29, 2012		July 31, 2011
United States	17	%	22	%	17	%	23	%
China (including Hong Kong)	37	%	39	%	37	%	37	%
Japan	10	%			10	%

The Company’s regional (loss) income from continuing operations before income taxes is as follows:

	Three Months Ended					Six Months Ended
(in thousands)	July 29, 2012			July 31, 2011		July 29, 2012			July 31, 2011
Domestic	$	(8,887	)	$	5,426	$	(17,725	)	$	10,975
Foreign	7,570			26,365		(4,363		)	46,898
Total	$	(1,317	)	$	31,791	$	(22,088	)	$	57,873

Sales to the Company’s customers are generally made on open account, subject to credit limits the Company may impose, and the receivables are subject to the risk of being uncollectible.

Each of the following significant customers accounted for at least 10% of net sales for at least one of the periods indicated:

(percentage of net sales)	Three Months Ended				Six Months Ended
	July 29, 2012		July 31, 2011		July 29, 2012		July 31, 2011
Samsung Electronics (and affiliates)	10	%	12	%	12	%	12	%
Huawei Technologies (and affiliates)	11	%			11	%
Frontek Technology Corp			11	%			11	%

The following table shows the list of customers that have an outstanding receivable balance that represents at least 10% of total net receivables for at least one of the periods indicated:

(percentage of net accounts receivable)	Balance as of
	July 29, 2012		January 29, 2012
Huawei Technologies (and affiliates)	15	%	11	%
Samsung Electronics (and affiliates)	11	%	14	%
Frontek Technology Corp			10	%
Dragon Technology			11	%

Outside Subcontractors and Suppliers

The Company relies on a limited number of outside subcontractors and suppliers for the production of silicon wafers, packaging and certain other tasks. Disruption or termination of supply sources or subcontractors, due to natural disasters such as the earthquake and Tsunami in Japan and floods in Thailand or other causes, could delay shipments and could have a material adverse effect on the Company. Although there are generally alternate sources for these materials and services, qualification of the alternate sources could cause delays sufficient to have a material adverse effect on the Company. Several of the Company’s outside subcontractors and suppliers, including third-party foundries that supply silicon wafers, are located in foreign countries, including China, Taiwan, Germany, Ireland, Israel and Switzerland. The Company’s largest source of silicon wafers is an outside foundry located in China and a significant amount of the Company’s assembly and test operations are conducted by third-party contractors in China, Malaysia, Thailand and the Philippines.