v3.26.1
Note 3 - Revenue From Contracts With Customers
6 Months Ended
Jul. 04, 2026
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. Revenue is attributed to geographic regions based on the ship-to location of the customer. The Greater China geography includes revenue associated with shipments to both Hong Kong and mainland China. Products shipped to Hong Kong may subsequently be transferred to mainland China or other destinations, and products shipped to mainland China may similarly move through intermediary locations.

 

  

Three Months Ended

  

Six Months Ended

 

Revenue by Channel

 

July 4,

  

June 28,

  

July 4,

  

June 28,

 

(In thousands)

 

2026

  

2025

  

2026

  

2025

 

Distributors

 $190,914   95% $104,010   84% $352,319   95% $198,347   81%

Direct

  10,165   5%  19,961   16%  19,657   5%  45,774   19%

Total revenue

 $201,079   100% $123,971   100% $371,976   100% $244,121   100%
                                 

Revenue by Geographical Market

                                

(In thousands)

                                

Greater China

 $134,282   67% $63,696   52% $243,153   66% $120,831   50%

Malaysia

  17,450   9%  12,754   10%  34,749   9%  17,547   7%

Japan

  4,078   2%  4,024   3%  6,427   2%  16,978   7%

Other Asia

  3,549   1%  2,500   2%  7,607   2%  5,359   2%

Asia

  159,359   79%  82,974   67%  291,936   79%  160,715   66%

Americas

  23,106   12%  26,883   22%  41,898   11%  56,880   23%

Europe

  18,614   9%  14,114   11%  38,142   10%  26,526   11%

Total revenue

 $201,079   100% $123,971   100% $371,976   100% $244,121   100%

 

Contract Balances

 

Our contract assets relate primarily 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 2026:

 

(In thousands)

    

Contract assets as of January 3, 2026

 $7,669 

Revenues recorded during the period

  7,244 

Transferred to Accounts receivable or collected

  (8,743)

Contract assets as of July 4, 2026

 $6,170 

 

Contract liabilities are included in Accrued liabilities on our Consolidated Balance Sheets. The following table summarizes activity during the first six months of fiscal 2026:

 

(In thousands)

    

Contract liabilities as of January 3, 2026

 $4,006 

Accruals for estimated future stock rotation and scrap returns

  2,906 

Less: Release of accruals for recognized stock rotation and scrap returns

  (1,416)

Contract liabilities as of July 4, 2026

 $5,496