v3.26.1
Segment Reporting
 6 Months Ended
Jul. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

15. Segment Reporting

 

The Company operates as a single operating and reportable segment and derives substantially all of its revenue from development and sales of low-power AI-based processing and video and image processing SoC solutions. In determining the reportable segment, the Company considers the research and development deployed, the nature of the production process, the distribution channels of SoCs, as well as the Company’s management structure. The Chief Executive Officer of the Company has been identified as the Chief Operating Decision Maker (the CODM) and manages the Company’s operations as a whole. The CODM uses net loss presented on a consolidated basis to evaluate the financial performance and allocate resources. The CODM also monitors budget versus actual results of the operating segment. The measure of reportable segment assets is reported within the condensed consolidated balance sheets as total assets. The accounting policies for the measurement of net loss and total assets of the reportable segment are described in the Note 1, Organization and Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the 2026 fiscal year filed with the SEC on March 23, 2026.

 

Geographic Revenue

The following table sets forth the Company’s revenue by geographic region based on bill-to location for the periods indicated.

 

 

Three Months Ended July 31,

 

 

Six Months Ended July 31,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(in thousands)

 

Taiwan

 

$

65,118

 

 

$

68,137

 

 

$

126,098

 

 

$

122,036

 

Asia Pacific other than Taiwan

 

 

25,120

 

 

 

17,789

 

 

 

48,367

 

 

 

34,348

 

Europe

 

 

10,023

 

 

 

4,690

 

 

 

16,331

 

 

 

13,429

 

North America other than United States

 

 

5,763

 

 

 

4,197

 

 

 

13,667

 

 

 

9,342

 

United States

 

 

2,101

 

 

 

698

 

 

 

4,019

 

 

 

2,228

 

Total revenue

 

$

108,125

 

 

$

95,511

 

 

$

208,482

 

 

$

181,383

 

 

Substantially all of the Company’s property and equipment were located in the United States, Taiwan, Europe and Asia Pacific region other than Taiwan. As of July 31, 2026, the net amount of fixed assets located in these regions was approximately $7.0 million, $3.7 million, $1.1 million and $0.3 million, respectively. As of January 31, 2026, the net amount of these fixed assets located in these regions was approximately $6.6 million, $3.6 million, $1.1 million and $0.3 million, respectively.

Additional Segment Information

The following table presents the significant segment expenses included in the condensed consolidated net loss for the periods indicated:

 

 

 

Three Months Ended July 31,

 

 

Six Months Ended July 31,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(in thousands)

 

Total revenue

 

$

108,125

 

 

$

95,511

 

 

$

208,482

 

 

$

181,383

 

Less cost and expense:

 

 

 

 

 

 

 

 

 

 

 

 

Product cost

 

 

44,001

 

 

 

37,743

 

 

 

84,228

 

 

 

70,371

 

Employee-related

 

 

32,856

 

 

 

32,066

 

 

 

68,117

 

 

 

63,525

 

Stock-based compensation

 

 

22,700

 

 

 

25,188

 

 

 

44,593

 

 

 

51,318

 

Semiconductor development cost

 

 

9,695

 

 

 

7,829

 

 

 

18,412

 

 

 

14,601

 

Tools & equipment

 

 

8,097

 

 

 

7,361

 

 

 

14,480

 

 

 

15,427

 

Professional services

 

 

4,602

 

 

 

3,804

 

 

 

8,290

 

 

 

7,491

 

Facilities-related

 

 

3,061

 

 

 

2,886

 

 

 

5,855

 

 

 

5,548

 

Other segment items (a)

 

 

(8,017

)

 

 

823

 

 

 

(6,326

)

 

 

1,779

 

Interest income

 

 

(2,181

)

 

 

(2,194

)

 

 

(4,385

)

 

 

(4,354

)

Net loss

 

$

(6,689

)

 

$

(19,995

)

 

$

(24,782

)

 

$

(44,323

)

(a) The other segment items include a reduction to research and development expense associated with the release of a deposit liability following a development project termination, amortization of intangible assets acquired from business combinations, non-operating (income) expenses, income tax provision (benefit) and other immaterial items.

 

Major Customers

For the three and six months ended July 31, 2026, the customers representing 10% or more of revenue were WT and Hakuto, which accounted for approximately 60.2% and 11.0% of total revenue for the three months ended July 31, 2026, respectively, and accounted for approximately 60.5% and 10.1% of total revenue for the six months ended July 31, 2026, respectively. For the three and six months ended July 31, 2025, the customer representing 10% or more of revenue was WT, which accounted for approximately 71.3% and 67.4% of total revenue, respectively. As of July 31, 2026, accounts receivable with WT and Hakuto were approximately $17.2 million and $4.8 million, respectively. Accounts receivable with WT was approximately $24.6 million as of January 31, 2026.