What changed in this filing

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Item 1. Financial Statements

2020-09-09 compared with 2020-06-08 · 126 added, 94 removed, 509 unchanged (30% of the section changed)

29 unchanged sentences

Preference shares, $ 0.00045 par value per share, 20,000,000 shares

authorized and no shares issued and outstanding at April 30, 2020 and

authorized and no shares issued and outstanding at July 31, 2020 and

January 31, 2020, respectively

Ordinary shares, $ 0.00045 par value per share, 200,000,000 shares

authorized at April 30, 2020 and January 31, 2020, respectively;

34,342,097 shares issued and outstanding at April 30, 2020;

authorized at July 31, 2020 and January 31, 2020, respectively;

34,610,836 shares issued and outstanding at July 31, 2020;

shares issued and outstanding at January 31, 2020

8 unchanged sentences

(in thousands, except share and per share data)

Three Months Ended April 30,

Three Months Ended July 31,

Six Months Ended July 31,

Cost of revenue

14 unchanged sentences

(unaudited, in thousands)

Three Months Ended April 30,

Other comprehensive income (loss), net of tax:

Unrealized gains (losses) on investments

Other comprehensive income (loss), net of tax

Three Months Ended July 31,

Six Months Ended July 31,

Other comprehensive income, net of tax:

Unrealized gains on investments

Other comprehensive income, net of tax

Comprehensive loss

12 unchanged sentences

Balance--April 30, 2020

Issuance of shares through employee equity incentive plan

Stock-based compensation expense related to stock awards granted to employees and consultants

Net unrealized gains on investments - net of taxes

Balance--July 31, 2020

Ordinary Shares

6 unchanged sentences

Balance--April 30, 2019

Issuance of shares through employee equity incentive plan

Stock-based compensation expense related to stock awards granted to employees and consultants

Net unrealized gains on investments - net of taxes

Balance--July 31, 2019

See accompanying notes to condensed consolidated financial statements.

2 unchanged sentences

(unaudited, in thousands)

Three Months Ended April 30,

Six Months Ended July 31,

Cash flows from operating activities:

25 unchanged sentences

Payment for intangible asset

Net cash provided by (used in) financing activities

Net increase in cash, cash equivalents and restricted cash

Net cash provided by financing activities

Net increase (decrease) in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period

12 unchanged sentences

The Company combines its processor design capabilities with its expertise in video and image processing, algorithms and software to provide a technology platform that is designed to be easily scalable across multiple applications and enable rapid and efficient product development.

The Company’s system-on-a-chip, or SoC, designs fully integrated high-definition video processing, image processing, artificial intelligence (AI) computer vision algorithms, audio processing and system functions onto a single chip, delivering exceptional video and image quality, differentiated functionality and low power consumption.

The Company’s system-on-a-chip, or SoC, designs fully integrate high-definition video processing, image processing, artificial intelligence (AI) computer vision algorithms, audio processing and system functions onto a single chip, delivering exceptional video and image quality, differentiated functionality and low power consumption.

The Company is currently addressing a broad range of human and computer vision applications, including professional and consumer security cameras, automotive cameras such as advanced driver assistance systems (ADAS), electronic mirrors, drive recorders, driver/cabin monitoring systems, autonomous driving, and industrial and robotic applications.

29 unchanged sentences

Actual results could differ from these estimates under different assumptions or circumstances and such differences could be material.

The Company also assessed the impacts of COVID-19 on the above accounting matters as of April 30, 2020 and through the date of this report.

While there was not a material impact as of and for the quarter ended April 30, 2020, future actual magnitude and duration of COVID-19, as well as other associated factors, could r esult in material negative impacts to its condensed consolidated financial statements in future reporting periods.

The Company also assessed the impacts of COVID-19 on the above accounting matters as of July 3 1 , 2020 and through the date of this report.

While it is difficult to quantify the impact of COVID-19 , the future magnitude and duration of COVID-19, as well as other associated factors, could r esult in material negative impacts to its condensed consolidated financial statements in future reporting periods.

Concentration of Risk

32 unchanged sentences

The cumulative effect adjustment upon the adoption on February 1, 2020 was immaterial.

The credit-related losses and associated allowance amount from the Company’s financial instruments were not material as of April 30, 2020, respectively.

The credit-related losses and associated allowance amount from the Company’s financial instruments were not material as of July 31, 2020, respectively.

Restricted Cash

Amounts included in restricted cash represent those required to be set aside to secure certain transactions in a foreign entity.

As of April 30, 2020 and January 31, 2020, the restricted cash was immaterial.

As of both July 31, 2020 and January 31, 2020, restricted cash was immaterial.

The following table presents cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets, and the sums are presented on the condensed consolidated statements of cash flows:

April 30, 2020

July 31, 2020

January 31, 2020

April 30, 2019

July 31, 2019

January 31, 2019

8 unchanged sentences

Once inventory is written down, a new accounting cost basis is established and, accordingly, any associated reserve is not released until the inventory is sold or scrapped.

There were no material inventory losses recognized for the three months ended April 30, 2020 and 2019, respectively.

There were no material inventory losses recognized for the three and six months ended July 31, 2020 and 2019, respectively.

Noncancelable Internal-Use Software License

1 unchanged sentence

The intangible asset and related liability are recorded at net present value and interest expense is recorded over the payment term.

Effective February 1, 2019, the Company adopted Accounting Standards Codification (“ASC”) Topic 842, Leases.

The Company adopted Accounting Standards Codification (“ASC”) Topic 842, Leases in fiscal year 2020.

As a result, the Company recognizes leases as operating lease right-of-use (“ROU”) assets and corresponding lease liabilities at the lease commencement date based on the present value of future lease payments, while recognizing lease expenses under straight-line method through the lease term.

6 unchanged sentences

The renewal options are included in the ROU and liability calculation if it is reasonably certain that the Company will exercise the option.

The Company's finance leases are immaterial as of April 30, 2020 and January 31, 2020, respectively.

The Company's finance leases were immaterial as of July 31, 2020 and January 31, 2020, respectively.

Revenue Recognition

The Company adopted ASC 606, Revenue from Contracts with Customers.

The Company adopted ASC 606, Revenue from Contracts with Customers in fiscal year 2019.

As a result, the Company recognizes revenue when control of its goods and services is transferred to its customers.

22 unchanged sentences

Because payments received do not correspond directly with the value of the Company’s performance to date, for fixed-price engineering services arrangements, revenue is recognized using the time-based straight line method, which best depicts the Company’s performance toward complete satisfaction of the performance obligation based on the nature of such professional services.

Revenues from engineering service agreements were not material for the three months ended April 30, 2020 and 2019, respectively.

Revenues from engineering service agreements were not material for the three and six months ended July 31, 2020 and 2019, respectively.

Timing of revenue recognition may differ from the timing of invoicing to the Company’s customers.

1 unchanged sentence

The Company’s contract assets are primarily related to satisfied but unbilled performance obligations associated with its engineering service agreements at the reporting date.

As of April 30, 2020 and January 31, 2020, the contract assets for these unbilled receivables were not material.

As of July 31, 2020 and January 31, 2020, the contract assets for these unbilled receivables were not material.

The Company’s contract liabilities consist of deferred revenue.

1 unchanged sentence

This deferred revenue is expected to be recognized over the course of the contract when products are delivered for future pricing below the weighted average selling price of the contract.

For the three months ended April 30, 2020 and 2019, the Company did not recognize any material revenue adjustment, respectively, related to performance obligations satisfied in prior periods released from this deferred revenue.

As of April 30, 2020 and January 31, 2020, the respective deferred revenues were not material.

Additionally, the transaction price allocated to unsatisfied, or partially unsatisfied, purchase orders for contracts that are greater than a year was not material as of April 30, 2020 and January 31, 2020, respectively.

The Company also elects not to disclose the value of unsatisfied or partially unsatisfied performance obligations due to original expected contract duration of one year or less and elects to exclude amounts collected from customers for all sales taxes from the transaction price .

For the three and six months ended July 31, 2020 and 2019, the Company did not recognize any material revenue adjustment, respectively, related to performance obligations satisfied in prior periods released from this deferred revenue.

As of July 31, 2020 and January 31, 2020, the respective deferred revenues were not material.

Additionally, the transaction price allocated to unsatisfied, or partially unsatisfied, purchase orders for contracts that are greater than a year was not material as of July 31, 2020 and January 31, 2020, respectively.

The Company also elects not to disclose the value of unsatisfied or partially unsatisfied performance obligations due to an original expected contract duration of one year or less and elects to exclude amounts collected from customers for all sales taxes from the transaction price .

Cost of Revenue

2 unchanged sentences

Research and development costs are expensed as incurred and consist primarily of personnel costs, product development costs, which include engineering services, development software and hardware tools, license fees, costs of fabrication of masks for prototype products, other development materials costs, depreciation of equipment and tools and allocation of facility costs, net of any research and development grants.

As of April 30, 2020, there was approximately $ 1.2 million of grants recorded in prepaid expenses and other current assets and approximately $ 2.8 million of grants recorded in other non-current assets in the condensed consolidated balance sheets.

As of July 31, 2020, there was approximately $ 1.3 million of grants recorded in prepaid expenses and other current assets and approximately $ 2.7 million of grants recorded in other non-current assets in the condensed consolidated balance sheets.

The Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns.

29 unchanged sentences

The Company did not early adopt and believes the adoption of this new guidance will not have a material impact on its consolidated financial statements and disclosures.

There were no other significant updates to the recently issued accounting standards other than as disclosed above.

In January 2020, the FASB issued ASU 2020-01 - Investments - Equity securities (Topic 321), Investments - Equity method and joint ventures (Topic 323), and Derivatives and hedging (Topic 815) - Clarifying the interactions between Topic 321, Topic 323, and Topic 815.

The amendments in this Update improve the accounting for certain equity securities upon the application or discontinuation of the equity method of accounting and clarify the scope considerations for forward contracts and purchased options on certain securities.

The amendments are effective for public entities in fiscal years beginning after December 15, 2020, including interim periods within those fiscal years.

Early adoption is permitted.

The Company did not early adopt and believes the adoption of this new guidance will not have a material impact on its consolidated financial statements and disclosures.

Financial Instruments and Fair Value

3 unchanged sentences

All of the investments are classified as available-for-sale securities and reported at fair value in the condensed consolidated balance sheets as follows:

As of April 30, 2020

As of July 31, 2020

Amortized Cost

19 unchanged sentences

Total cash equivalents and marketable debt securities

As of April 30, 2020, there were no debt securities with unrealized losses for more than twelve months.

April 30, 2020

As of July 31, 2020, there were no debt securities with unrealized losses for more than twelve months.

July 31, 2020

January 31, 2020

3 unchanged sentences

Total cash equivalents and marketable debt securities

The contractual maturities of the investments at April 30, 2020 and January 31, 2020 were as follows:

April 30, 2020

The contractual maturities of the investments at July 31, 2020 and January 31, 2020 were as follows:

July 31, 2020

January 31, 2020

9 unchanged sentences

The non-credit-related portion of the loss is recognized in accumulated other comprehensive income in the condensed consolidated balance sheets.

The credit-related losses of the Company’s financial instruments were not material as of April 30, 2020.

The credit-related losses of the Company’s financial instruments were not material for the three and six months ended July 31, 2020, respectively.

The following fair value hierarchy is applied for disclosure of the inputs used to measure fair value.

6 unchanged sentences

The fair value of the Company’s investments in other debt securities are obtained based on quoted prices for similar assets in active markets and are classified within Level 2.

The following tables present the fair value of the financial instruments measured on a recurring basis as of April 30, 2020 and January 31, 2020, respectively:

As of April 30, 2020

The following tables present the fair value of the financial instruments measured on a recurring basis as of July 31, 2020 and January 31, 2020, respectively:

As of July 31, 2020

(in thousands)

13 unchanged sentences

Total cash equivalents and marketable debt securities

Inventories at April 30, 2020 and January 31, 2020 consisted of the following:

April 30, 2020

Inventories at July 31, 2020 and January 31, 2020 consisted of the following:

July 31, 2020

January 31, 2020

3 unchanged sentences

Property and Equipment, Net

Depreciation expense was approximately $ 0.7 million for the three months ended April 30, 2020 and 2019, respectively.

Property and equipment at April 30, 2020 and January 31, 2020 consisted of the following:

April 30, 2020

Depreciation expense was approximately $ 0.6 million and $ 0.7 million for the three months ended July 31, 2020 and 2019, respectively.

Depreciation expense was approximately $ 1.3 million and $ 1.4 million for the six months ended July 31, 2020 and 2019, respectively.

Property and equipment at July 31, 2020 and January 31, 2020 consisted of the following:

July 31, 2020

January 31, 2020

11 unchanged sentences

Once research and development efforts are completed, the corresponding amount of IPR&D is reclassified as an amortizable purchased intangible asset and is amortized over its estimated useful life.

As of April 30, 2020, there was no IPR&D amortized.

As of July 31, 2020, there was no IPR&D amortized.

The Company will determine the project incorporating the VisLab IPR&D to be completed when a related chip begins mass production to address the level 3 and above advanced driving assistance systems markets.

1 unchanged sentence

The licenses have been capitalized as intangible assets, and the corresponding future payments have been recorded as liabilities at net present value.

As of April 30, 2020, $ 4.4 million was recorded in accrued and other current liabilities and $ 7.0 million was recorded in other long-term liabilities in the condensed consolidated balance sheets.

The carrying amounts of intangible assets as of April 30, 2020 and January 31, 2020 were as follows :

As of April 30, 2020

As of July 31, 2020, $ 5.0 million was recorded in accrued and other current liabilities and $ 6.5 million was recorded in other long-term liabilities in the condensed consolidated balance sheets.

The carrying amounts of intangible assets as of July 31, 2020 and January 31, 2020 were as follows :

As of July 31, 2020

As of January 31, 2020

9 unchanged sentences

Total acquired intangible assets

The amortization expense related to these software licenses was approximately $ 1.5 million and $ 1.3 million for the three months ended April 30, 2020 and 2019, respectively.

The estimated future amortization expense of these software licenses as of April 30, 2020 is as follows:

April 30, 2020

During the six months ended July 31, 2020, there was approximately $ 10.1 million of fully amortized software licenses retired.

The amortization expense related to software licenses was approximately $ 1.6 million and $ 1.3 million for the three months ended July 31, 2020 and 2019, respectively.

The amortization expense related to software licenses was approximately $ 3.1 million and $ 2.6 million for the six months ended July 31, 2020 and 2019, respectively.

The estimated future amortization expense of these software licenses as of July 31, 2020 is as follows:

July 31, 2020

(in thousands)

2 unchanged sentences

IPR&D is required to be tested for impairment at least annually in the fourth fiscal quarter or sooner whenever events or changes in circumstances indicate that the assets may be impaired.

There were no intangible asset impairments for the three months ended April 30, 2020 and 2019, respectively.

There were no intangible asset impairments for the three and six months ended July 31, 2020 and 2019, respectively.

Accrued and Other Current Liabilities

Accrued and other current liabilities at April 30, 2020 and January 31, 2020 consisted of the following:

April 30, 2020

Accrued and other current liabilities at July 31, 2020 and January 31, 2020 consisted of the following:

July 31, 2020

January 31, 2020

6 unchanged sentences

Total accrued and other current liabilities

The decrease in employee compensation liabilities was primarily due to $ 7.7 million of annual bonus paid in March 2020, of which $ 2.3 million was paid in cash and $ 5.4 million was settled with restricted stock units.

The Company has entered into various operating leases for its worldwide office facilities and recorded approximately $ 0.7 million of operating lease expense for the three months ended April 30, 2020 and 2019, respectively.

The Company's short-term leases and finance leases were not material as of April 30, 2020 and January 31, 2020, respectively .

The Company has entered into various operating leases for its worldwide office facilities.

The operating lease expense was approximately $ 0.7 million and $ 0.7 million for the three months ended July 31, 2020 and 2019, respectively.

The operating lease expense was approximately $ 1.4 million and $ 1.5 million for the six months ended July 31, 2020 and 2019, respectively.

The Company's short-term leases and finance leases were not material as of July 31, 2020 and January 31, 2020, respectively .

Supplemental cash flow information related to leases is as follows:

Three Months Ended

April 30, 2020

Six Months Ended

July 31, 2020

(in thousands)

1 unchanged sentence

Supplemental non-cash information related to lease liabilities arising from obtaining right-of-use assets

As of April 30, 2020, the weighted average remaining lease term is 4.90 years, and the weighted average discount rate is 4.43 percent.

As of July 31, 2020, the weighted average remaining lease term is 4.76 years, and the weighted average discount rate is 4.43 percent.

Future minimum lease payments for the lease liabilities are as follows :

April 30, 2020

July 31, 2020

(in thousands)

3 unchanged sentences

Other Long-Term Liabilities

Other long-term liabilities at April 30, 2020 and January 31, 2020 consisted of the following:

April 30, 2020

Other long-term liabilities at July 31, 2020 and January 31, 2020 consisted of the following:

July 31, 2020

January 31, 2020

8 unchanged sentences

After completion of the Company’s initial public offering in 2012, a total of 20,000,000 preference shares, with a $ 0.00045 par value per share, were authorized.

There were no preference shares issued and outstanding as of April 30, 2020 and January 31, 2020, respectively.

There were no preference shares issued and outstanding as of July 31, 2020 and January 31, 2020, respectively.

Ordinary shares

As of April 30, 2020 and January 31, 2020, a total of 200,000,000 ordinary shares were authorized.

As of July 31, 2020 and January 31, 2020, a total of 200,000,000 ordinary shares were authorized.

On February 1, 2020, the Company added 1,521,252 ordinary shares to the ordinary shares reserved for issuance, pursuant to an “evergreen” provision contained in the 2012 Equity Incentive Plan, or EIP.

2 unchanged sentences

Pursuant to such provision, for each fiscal year, the number of ordinary shares reserved for issuance under the ESPP is automatically increased by a number equal to the lesser of (i) 1,500,000 ordinary shares, (ii) one and one quarter percent ( 1.25 %) of the aggregate number of ordinary shares outstanding on such date, or (iii) an amount determined by the Company’s Board of Directors or a duly authorized committee of the Board of Directors.

As of April 30, 2020 and January 31, 2020, the following ordinary shares were reserved for future issuance under the EIP and ESPP:

April 30, 2020

As of July 31, 2020 and January 31, 2020, the following ordinary shares were reserved for future issuance under the EIP and ESPP:

July 31, 2020

January 31, 2020

3 unchanged sentences

Shares repurchased

On May 29, 2019 , the Company’s Board of Directors authorized a program to repurchase up to $ 50.0 million of the Company’s ordinary shares through June 30, 2020 .

On March 16, 2020, the Company repurchased a total of 25,719 shares for approximately $ 1.0 million in cash.

Since the inception of the repurchase programs in June 2016 , a total of $ 275.0 million has been authorized, and a total of 4,011,595 shares have been repurchased for approximately $ 175.8 million in cash.

On May 29, 2020, the Board approved an extension of this program for an additional twelve months ending June 30, 2021 .

Since the inception of the Company’s repurchase programs in June 2016 , a total of $ 275.0 million has been authorized, and a total of 4,011,595 shares have been repurchased for approximately $ 175.8 million in cash.

Repurchases may be made from time-to-time through open market purchases, 10b5-1 plans or privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors.

1 unchanged sentence

The repurchase program is funded using the Company’s working capital and any repurchased shares are recorded as authorized but unissued shares.

As of April 30, 2020, there was $ 49.0 million available for repurchases under the repurchase program through June 30, 2020.

As of July 31, 2020, there was approximately $ 49.0 million available for repurchases under the repurchase program through June 30, 2021.

Stock-based Compensation

The following table presents the classification of stock-based compensation for the periods indicated:

Three Months Ended April 30,

Three Months Ended July 31,

Six Months Ended July 31,

(in thousands)

4 unchanged sentences

Total stock-based compensation

During the three months ended April 30, 2020, approximately $ 0.8 million of stock-based compensation expense was accrued in the accrued and other current liabilities in the condensed consolidated balance sheets.

As of April 30, 2020, total unrecognized compensation cost related to unvested stock options was $ 3.5 million and is expected to be recognized over a weighted-average period of 2.39 years.

During the three and six months ended July 31, 2020, approximately $ 0.1 million and $ 0.9 million of stock-based compensation expense was accrued in the accrued and other current liabilities in the condensed consolidated balance sheets, respectively.

As of July 31, 2020, total unrecognized compensation cost related to unvested stock options was $ 3.4 million and is expected to be recognized over a weighted-average period of 2.40 years.

Total unrecognized compensation cost related to unvested restricted stock units was $ 106.7 million and is expected to be recognized over a weighted-average period of 2.24 years.

The following table sets forth the weighted-average assumptions used to estimate the fair value of stock options and employee stock purchase plan awards for the periods indicated:

Three Months Ended April 30,

Three Months Ended July 31,

Six Months Ended July 31,

Stock Options:

13 unchanged sentences

Outstanding at January 31, 2020

Outstanding at April 30, 2020

Exercisable at April 30, 2020

Outstanding at July 31, 2020

Exercisable at July 31, 2020

The intrinsic value of options outstanding and exercisable is calculated based on the difference between the fair market value of the Company’s ordinary shares on the reporting date and the exercise price.

The closing price of the Company’s ordinary shares on April 30, 2020 was $ 52.58 , as reported by The NASDAQ Global Market.

The closing price of the Company’s ordinary shares on July 31, 2020 was $ 45.28 , as reported by The NASDAQ Global Market.

The intrinsic value of exercised options is calculated based on the difference between the fair market value of the Company’s ordinary shares on the exercise date and the exercise price.

1 unchanged sentence

Unvested at January 31, 2020

Unvested at April 30, 2020

As of April 30, 2020, the aggregate intrinsic value of unvested restricted stock units was $ 141.1 million.

Unvested at July 31, 2020

As of July 31, 2020, the aggregate intrinsic value of unvested restricted stock units was $ 110.8 million.

Net Loss Per Ordinary Share

The following table sets forth the computation of basic and diluted loss per ordinary share for the periods indicated:

Three Months Ended April 30,

Three Months Ended July 31,

Six Months Ended July 31,

(in thousands, except share and per share data)

3 unchanged sentences

The following weighted-average potentially dilutive securities were excluded from the computation of diluted loss per ordinary share as their effect would have been antidilutive:

Three Months Ended April 30,

Three Months Ended July 31,

Six Months Ended July 31,

Options to purchase ordinary shares

2 unchanged sentences

The following table provides details of income taxes for the periods indicated:

Three Months Ended April 30,

Three Months Ended July 31,

Six Months Ended July 31,

(in thousands)

2 unchanged sentences

Effective tax rate

The Company recorded an income tax provision of $ 1.1 million and $ 1.3 million for the three months ended April 30, 2020 and 2019, respectively.

The decrease in income tax expense was primarily due to a decrease in loss before income taxes as compared to the same period in the prior fiscal year, partially offset by a decrease in the proportion of profits generated in lower tax jurisdictions.

The income tax expense decreased for the three and six months ended July 31, 2020, as compared to the same periods in the prior fiscal year, primarily due to a decrease in the proportion of profits generated in higher tax jurisdictions as well as an increase in the U.S.

federal research tax credit, partially offset by an increase in non-deductible stock-based compensation.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), P.L.

5 unchanged sentences

The Company files federal and state income tax returns in the United States and in various foreign jurisdictions.

The Internal Revenue Service is currently examining the Company’s U.S.

federal income tax return for the fiscal year ended January 31, 2017.

The tax years 2013 to 2019 remain open to examination by U.S.

6 unchanged sentences

These assessments can require considerable estimates and judgments.

As of April 30, 2020, the gross amount of unrecognized tax benefits was approximately $ 43.3 million.

As of July 31, 2020, the gross amount of unrecognized tax benefits was approximately $ 43.1 million.

If the estimates of income tax liabilities prove to be less than the ultimate assessment, then a further charge to expense could be required.

1 unchanged sentence

The Company does not anticipate significant changes to its uncertain tax positions during the next twelve months.

On July 27, 2015, the United States Tax Court issued a decision (“Tax Court Decision”) in Altera Corp.

Commissioner , which concluded that related parties in a cost sharing arrangement are not required to share expenses related to share-based compensation.

The Tax Court Decision was appealed by the Commissioner to the Ninth Circuit Court of Appeals (“Ninth Circuit”).

On June 7, 2019, the Ninth Circuit issued an opinion that reversed the Tax Court Decision.

On July 22, 2019, the taxpayer requested a rehearing before the full Ninth Circuit and the request was denied on November 12, 2019.

On February 10, 2020, the taxpayer filed a petition to appeal the decision with the Supreme Court of the United States which was denied on June 22, 2020.

The denial of the request by the Supreme Court did not have a material impact to the Company’s condensed consolidated financial statements.

Commitments and Contingencies

3 unchanged sentences

The Company regularly issues purchase orders to independent contract manufacturers which are cancelable upon agreement between the Company and the third-party manufacturers.

As of April 30, 2020 and January 31, 2020, total manufacturing purchase commitments were approximately $ 32.6 million and $ 35.9 million, respectively.

As of July 31, 2020 and January 31, 2020, total manufacturing purchase commitments were approximately $ 24.4 million and $ 35.9 million, respectively.

Indemnification

3 unchanged sentences

It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances that are likely to be involved in each particular claim.

The Company has no t made payments under these obligations, and no liabilities have been recorded for these obligations in the condensed consolidated balance sheets as of April 30, 2020 and January 31, 2020, respectively.

The Company has no t made payments under these obligations, and no liabilities have been recorded for these obligations in the condensed consolidated balance sheets as of July 31, 2020 and January 31, 2020, respectively.

Segment Reporting

4 unchanged sentences

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

Three Months Ended April 30,

Three Months Ended July 31,

Six Months Ended July 31,

(in thousands)

2 unchanged sentences

Total revenue

As of April 30, 2020, substantially all of the Company’s property and equipment, net, was located in the United States, Asia Pacific region and Europe with approximate net amounts of $ 1.7 million, $ 2.6 million and $ 1.0 million, respectively.

As of July 31, 2020, substantially all of the Company’s property and equipment, net, was located in the United States, Asia Pacific region and Europe with approximate net amounts of $ 1.6 million, $ 2.5 million and $ 0.9 million, respectively.

Major Customers

The customers representing 10% or more of revenue and accounts receivable were Wintech and Chicony, which accounted for approximately 63 % and 15 % of total revenue for the three months ended April 30, 2020, respectively.

For the three months ended April 30, 2019, the customers representing 10% or more of revenue and accounts receivable were Wintech and Chicony, which accounted for approximately 59 % and 18 % of total revenue, respectively.

Accounts receivable with Wintech and Chicony was approximately $ 6.3 million and $ 8.7 million as of April 30, 2020, respectively.

Subsequent Events

On May 29, 2019 , the Company’s Board of Directors authorized a program to repurchase up to $ 50.0 million of the Company’s ordinary shares through June 30, 2020 .

On May 29, 2020, the Board approved an extension of this program for an additional twelve months ending June 30, 2021 .

The repurchase program does not obligate the Company to acquire any particular amount of ordinary shares, and it may be suspended at any time at the Company’s discretion.

As of June 5, 2020, there were 25,719 shares repurchased and approximately $ 49.0 million available for repurchases under the program.

The customers representing 10% or more of revenue and accounts receivable were Wintech and Chicony, which accounted for approximately 55.6 % and 19.6 % of total revenue for the three months ended July 31, 2020, respectively, and accounted for approximately 59.5 % and 17.4 % of total revenue for the six months ended July 31, 2020, respectively.

The customers representing 10% or more of revenue and accounts receivable were Wintech and Chicony, which accounted for approximately 54.9 % and 20.5 % of total revenue for the three months ended July 31, 2019, respectively, and accounted for approximately 56.5 % and 19.1 % of total revenue for the six months ended July 31, 2019, respectively.

Accounts receivable with Wintech and Chicony were approximately $ 8.1 million and $ 10.1 million as of July 31, 2020, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements