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Note 12 - Information Concerning Product Lines, Geographic Information, and Revenue Concentration
 9 Months Ended
Sep. 29, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 12 — 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

 
  

September 29, 2024

  

October 1, 2023

  

September 29, 2024

  

October 1, 2023

 

New products

 $3,537  $6,096  $11,470  $11,384 

Mature products

  736   569   2,937   2,335 

Total revenue

 $4,273  $6,665  $14,407  $13,719 

 

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

 
  

September 29, 2024

  

October 1, 2023

  

September 29, 2024

  

October 1, 2023

 

Hardware products

 $28  $248  $1,028  $776 

eFPGA IP and professional services

  3,445   5,838   10,009   10,505 

SaaS & Other

  64   10   433   103 

New products revenue

 $3,537  $6,096  $11,470  $11,384 

 

eFPGA IP and professional services revenue for the three months ended September 29, 2024 and October 1, 2023 was $3.4 million and $5.8 million, respectively, and for the nine months ended September 29, 2024 and October 1, 2023 was $10.0 million and $10.5 million, respectively, which were primarily professional services revenue.

 

Contract assets related to professional services revenue were $2.3 million and $4.0 million as of September 29, 2024 and October 1, 2023, respectively. Contract liabilities related to professional services revenue were $0.4 million and $0.3 million as of September 29, 2024 and October 1, 2023, respectively. As of December 31, 2023, $1.1 million in deferred revenues were outstanding. In the nine months ended September 29, 2024, $1.0 million of the outstanding $1.1 million in deferred revenues was recognized by the Company as revenue. Of the $0.4 million in deferred revenues as of September 29, 2024, the Company expects to recognize these revenues using the input time-based method through the end of Q1'25. Of its remaining unsatisfied performance obligations not currently on the Company's balance sheet, the Company expects to recognize $1.2 million by Q2'25, either through the input time-based method or the output method, recognizing revenue as deliverables such as IP and various technologies and training are transferred or provided to the customer. For the majority of the Company's contracts, payment schedules are in place and cash receipts will not always follow the timeline of the Company's revenue recognition policies.

 

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 $3.7 million, or 85% of total revenue, and $12.0 million, or 83% of total revenue for the three and nine months ended September 29, 2024, respectively and $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.

 

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

 

  

Three Months Ended

  

Nine Months Ended

 
  

September 29, 2024

  

October 1, 2023

  

September 29, 2024

  

October 1, 2023

 

Asia Pacific

 $518  $371  $1,656  $1,540 

North America

  3,663   6,051   12,317   11,739 

Europe

  92   243   434   440 

Total revenue

 $4,273  $6,665  $14,407  $13,719 

 

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

 
  

September 29,

  

October 1,

  

September 29,

  

October 1,

 
  

2024

  

2023

  

2024

  

2023

 

Distributor "A"

  11%  *   10%  11%

Customer "A"

  53%  84%  57%  67%

Customer "B"

  10%  *   *   * 

Customer "J"

  18%  *   *   * 

 

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

 

  

September 29,

  

December 31,

 
  

2024

  

2023

 

Customer "A"

  69%  86%

Customer "J"

  16%  *