What changed in this filing

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Item 1. Financial Statements

2022-09-08 compared with 2022-06-08 · 175 added, 96 removed, 300 unchanged (47% of the section changed)

5 unchanged sentences

Cash and cash equivalents

Marketable debt securities

Accounts receivable, net

20 unchanged sentences

Shareholders' equity:

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

authorized and no shares issued and outstanding at April 30, 2022 and

January 31, 2022, respectively

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

authorized at April 30, 2022 and January 31, 2022, respectively;

38,082,879 shares issued and outstanding at April 30, 2022;

shares issued and outstanding at January 31, 2022

Preference shares, $ 0.00045 par value per share, 20,000,000 shares authorized and no shares issued and outstanding at July 31, 2022 and January 31, 2022, respectively

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

38,406,451 and 37,302,818 shares issued and outstanding at July 31, 2022 and January 31, 2022, respectively

Additional paid-in capital

Accumulated other comprehensive loss

Retained earnings

5 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

4 unchanged sentences

Loss from operations

Other income, net

Other income (expense), net

Loss before income taxes

6 unchanged sentences

(unaudited, in thousands)

Three Months Ended April 30,

Three Months Ended July 31,

Six Months Ended July 31,

Other comprehensive loss, net of tax:

8 unchanged sentences

Comprehensive

Income (Loss)

Balance--January 31, 2022

3 unchanged sentences

Balance--April 30, 2022

Issuance of shares through employee equity plans

Stock-based compensation expense

Net unrealized losses on investments - net of tax

Balance--July 31, 2022

Ordinary Shares

Comprehensive

Income (Loss)

Balance--January 31, 2021

4 unchanged sentences

Balance--April 30, 2021

Issuance of shares through employee equity plans

Stock-based compensation expense

Net unrealized losses on investments - net of tax

Balance--July 31, 2021

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:

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

13 unchanged sentences

Other long-term liabilities

Net cash provided by (used in) operating activities

Net cash provided by operating activities

Cash flows from investing activities:

4 unchanged sentences

Purchase of tangible and intangible assets

Net cash used in investing activities

Net cash provided by (used in) investing activities

Cash flows from financing activities:

Proceeds from exercise of stock options and employee stock purchase plan

Payment for intangible assets

Net cash provided by (used in) financing activities

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

Long-term financing payment for intangible assets

Net cash provided by financing activities

Net increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period

33 unchanged sentences

A significant disruption in the operations of one or more of these contractors would impact the production of the Company’s products which could have a material adverse effect on its business, financial condition and results of operations.

A substantial portion of the Company’s revenue is derived from sales through its two major distributors, WT Microelectronics Co., Ltd., formerly Wintech Microelectronics Co., Ltd., or WT, which serves as its non-exclusive sales representative in Asia other than Japan, and Hakuto Co., Ltd., or Hakuto, a Japan distributor, and directly to one ODM customer, Chicony Electronics Co., Ltd., or Chicony.

A substantial portion of the Company’s revenue is derived from sales through one of its distributors, WT Microelectronics Co., Ltd., formerly Wintech Microelectronics Co., Ltd., or WT, which serves as its non-exclusive sales representative in Asia other than Japan, and directly to one ODM customer, Chicony Electronics Co., Ltd., or Chicony.

Termination of the relationships with these customers could result in a temporary or permanent loss of revenue.

5 unchanged sentences

The Company has not experienced any losses on deposits of its cash.

The cash equivalents consist primarily of money market funds which management assesses to be highly liquid.

In fiscal year 2022, the Company fully liquidated its investments in debt securities to finance the acquisition of Oculii Corp, or Oculii.

As of April 30, 2022 and January 31, 2022, there were no debt security investments recorded in the condensed consolidated balance sheets.

In order to limit the exposure of each investment, the cash equivalents and marketable debt securities consist primarily of money market funds and debt securities of corporations which management assesses to be highly liquid.

The Company does not hold or issue financial instruments for trading purposes.

The Company performs ongoing credit evaluation of its customers and adjusts credit limits based upon payment history and customers’ credit worthiness.

2 unchanged sentences

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

As of April 30, 2022 and January 31, 2022, restricted cash was immaterial, respectively.

As of July 31, 2022 and January 31, 2022, restricted cash was immaterial, respectively .

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

January 31, 2022

January 31, 2021

(in thousands)

3 unchanged sentences

Recent Accounting Pronouncements

Inventories at April 30, 2022 and January 31, 2022 consisted of the following:

April 30, 2022

Financial Instruments and Fair Value

In July 2022, the Company invested $100.0 million of cash in money market funds and debt securities of corporations after a full liquidation of its debt security investments in fiscal year 2022.

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

As of July 31, 2022

Amortized Cost

Unrealized Gains

Unrealized Losses

(in thousands)

Money market funds

Corporate bonds

Total cash equivalents and marketable debt securities

As of January 31, 2022

Amortized Cost

Unrealized Gains

Unrealized Losses

(in thousands)

Money market funds

Total cash equivalents and marketable debt securities

As of July 31, 2022, there were no debt securities with unrealized losses for more than twelve months.

July 31, 2022

January 31, 2022

(in thousands)

Included in cash equivalents

Included in marketable debt securities

Total cash equivalents and marketable debt securities

The contractual maturities of the investments at July 31, 2022 and January 31, 2022 were as follows:

July 31, 2022

January 31, 2022

(in thousands)

Due within one year

Due within one to three years

Total cash equivalents and marketable debt securities

The unrealized gains and losses on the available-for-sale securities were primarily caused by fluctuations in market value and interest rates as a result of the economic environment.

In accordance with ASU No.

2016-13, Financial Instruments-Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments, the Company estimates the expected losses at an individual security level whenever a security’s fair value is below its amortized cost basis using the discounted cash flow method.

The credit-related portion of the loss is recognized in other income (expense), net in the condensed consolidated statements of operations but is limited to the difference between the fair value and the amortized cost basis of the security, adjusted for accrued interest.

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

The credit-related losses were not material for the three and six months ended July 31, 2022, and 2021, respectively.

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

This hierarchy prioritizes the inputs into three broad levels as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.

Level 3—Unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value.

The inputs require significant management judgment or estimation.

The Company measures the fair value of money market funds using quoted prices in active markets for identical assets and classifies them within Level 1.

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 July 31, 2022 and January 31, 2022, respectively:

As of July 31, 2022

(in thousands)

Money market funds

Corporate bonds

Total cash equivalents and marketable debt securities

As of January 31, 2022

(in thousands)

Money market funds

Total cash equivalents and marketable debt securities

Inventories at July 31, 2022 and January 31, 2022 consisted of the following:

July 31, 2022

January 31, 2022

(in thousands)

Work-in-progress

1 unchanged sentence

Property and Equipment, Net

Depreciation expense was approximately $ 0.9 million and $ 0.6 million for the three months ended April 30, 2022 and 2021, respectively.

Property and equipment at April 30, 2022 and January 31, 2022 consisted of the following:

April 30, 2022

Depreciation expense was approximately $ 0.9 million and $ 0.6 million for the three months ended July 31, 2022 and 2021, respectively, and was approximately $ 1.8 million and $ 1.2 million for the six months ended July 31, 2022 and 2021, respectively.

Property and equipment at July 31, 2022 and January 31, 2022 consisted of the following:

July 31, 2022

January 31, 2022

(in thousands)

Computer equipment and software

Machinery and equipment

Computer hardware and software

Tools and equipment

Furniture and fixtures

4 unchanged sentences

Intangible Assets, Net

As of April 30, 2022, the intangible assets primarily consist of software licenses as well as developed technology, customer relationships and trade name that were acquired from business combinations.

As of July 31, 2022, intangible assets primarily consist of software licenses as well as developed technology, customer relationships and trade name that were acquired from business combinations.

The Company enters into certain software license agreements with third parties from time-to-time.

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, 2022, $ 4.9 million was recorded in accrued and other current liabilities and $ 0.6 million was recorded in other long-term liabilities in the condensed consolidated balance sheets.

The components of intangible assets as of April 30, 2022 and January 31, 2022 were as follows :

As of April 30, 2022

As of July 31, 2022, $ 4.0 million was recorded in accrued and other current liabilities and $ 0.6 million was recorded in other long-term liabilities in the condensed consolidated balance sheets.

The components of intangible assets as of July 31, 2022 and January 31, 2022 were as follows :

As of July 31, 2022

As of January 31, 2022

10 unchanged sentences

Total intangible assets, net

During the three months ended April 30, 2022, there was approximately $ 4.9 million of software licenses purchased and approximately $ 0.4 million of software licenses retired.

The amortization expense associated with software licenses was approximately $ 1.6 million and $ 1.5 million for the three months ended April 30, 2022 and 2021, respectively.

The amortization expense associated with acquisition-related intangible assets, including developed technology, customer relationships and trade name, was approximately $ 1.2 million for the three months ended April 30, 2022.

There was no acquisition-related amortization expense for the three months ended April 30, 2021.

The expected future amortization expense related to these intangible assets as of April 30, 2022 is as follows:

April 30, 2022

During the six months ended July 31, 2022, there were approximately $ 8.9 million of software licenses purchased and approximately $ 0.4 million of software licenses retired.

The amortization expense associated with software licenses was approximately $

1.6 million and $ 1.5 million for the three months ended July 3 1 , 202 2 and 20 2 1 , respectively , and was approximately $ 3.2 million and $ 3.0 million for the six months ended July 31, 202 2 and 202 1 , respectively .

There was no acquisition-related amortization expense for the three and six months ended July 31, 2021.

T he expected future amortization expense related to these intangible assets as of July 3 1 , 202 2 is as follows:

July 31, 2022

(in thousands)

1 unchanged sentence

Total future amortization expenses:

The intangible assets are 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, 2022 and 2021, respectively.

Intangible assets are tested for impairment at least annually, in the fourth fiscal quarter, or more frequently if events or changes in circumstances indicate that the assets may be impaired.

There were no intangible asset impairments for the three and six months ended July 31, 2022 and 2021, respectively.

Accrued and Other Current Liabilities

Accrued and other current liabilities at April 30, 2022 and January 31, 2022 consisted of the following:

April 30, 2022

Accrued and other current liabilities at July 31, 2022 and January 31, 2022 consisted of the following:

July 31, 2022

January 31, 2022

5 unchanged sentences

Total accrued and other current liabilities

The timing of SoC development progress and payments to outside foundries resulted in fluctuation of the accrued product development costs.

The decrease in employee compensation liabilities was primarily due to $ 10.9 million of annual bonus paid in the first quarter of fiscal year 2023, of which $ 3.2 million was paid in cash and $ 7.7 million was settled with restricted stock units.

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

The operating lease expense was approximately $ 0.9 million and $ 0.8 million for the three months ended April 30, 2022 and 2021, respectively.

The Company's short-term leases and finance leases were not material as of April 30, 2022 and January 31, 2022, respectively .

Supplemental cash flow information related to leases is as follows:

The timing of SoC development and payments to outside foundries resulted in the fluctuation of accrued product development costs.

Approximately $ 10.9 million of annual bonus was paid in the first quarter of fiscal year 2023, of which $ 3.2 million was paid in cash and $ 7.7 million was settled with restricted stock units.

The Company enters into various operating leases for its worldwide facilities.

In the second quarter of fiscal year 2023, the Company extended leases for its Shenzhen office and one of its facilities in Santa Clara, California for an additional two years beginning October 1, 2022 to September 30, 2024 .

For the lease extensions, the Company recorded an increase to the operating lease right-of-use (ROU) assets and corresponding operating lease liabilities of approximately $ 0.8 million in the condensed consolidated balance sheets.

Operating lease expense was approximately $ 0.9 million and $ 0.8 million for the three months ended July 31, 2022 and 2021, respectively, and was approximately $ 1.8 million and $ 1.6 million for the six months ended July 31, 2022 and 2021, respectively.

The Company's short-term leases and finance leases were not material as of July 31, 2022 and January 31, 2022, respectively .

Supplemental cash flow information related to the operating leases is as follows:

Three Months Ended

April 30, 2022

Six Months Ended

July 31, 2022

(in thousands)

1 unchanged sentence

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

As of April 30, 2022, the weighted average remaining lease term is 3.39 years, and the weighted average discount rate is 3.56 percent.

Leased assets obtained in exchange for operating lease liabilities arising from lease modifications

As of July 31, 2022, the weighted average remaining lease term is 3.09 years, and the weighted average discount rate is 3.57 percent.

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

April 30, 2022

July 31, 2022

(in thousands)

3 unchanged sentences

Other Long-Term Liabilities

Other long-term liabilities at April 30, 2022 and January 31, 2022 consisted of the following:

April 30, 2022

Other long-term liabilities at July 31, 2022 and January 31, 2022 consisted of the following:

July 31, 2022

January 31, 2022

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, 2022 and January 31, 2022, respectively.

There were no preference shares issued and outstanding as of July 31, 2022 and January 31, 2022, respectively.

Ordinary shares

As of April 30, 2022 and January 31, 2022, a total of 200,000,000 ordinary shares were authorized.

As of July 31, 2022 and January 31, 2022, a total of 200,000,000 ordinary shares were authorized.

In the first quarter of fiscal year 2023, the Company added 466,285 ordinary shares to the ordinary shares reserved for issuance, pursuant to an “evergreen” provision contained in the Amended and Restated 2012 Employee Stock Purchase Plan, or ESPP.

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 February 1 st of each fiscal year, 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, 2022 and January 31, 2022, the following ordinary shares were reserved for future issuance under the Company’s equity plans and ESPP:

April 30, 2022

As of July 31, 2022 and January 31, 2022, the following ordinary shares were reserved for future issuance under the Company’s equity plans and ESPP:

July 31, 2022

January 31, 2022

2 unchanged sentences

Shares reserved for ESPP

Stock purchase program

No ordinary shares were repurchased in the three months ended April 30, 2022.

As of April 30, 2022, $ 49.0 million remained available for repurchases under the current repurchase program through June 30, 2022.

Repurchases under the program 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.

Stock repurchase program

On May 27, 2022 , the Company ’ s Board of Directors approved an extension of the current share repurchase program for an additional twelve months ending June 30, 2023 .

There were no ordinary shares repurchased in the six months ended July 31, 2022.

As of July 31, 2022, there was approximately $ 49.0 million available for repurchases under the current repurchase program through June 30, 2023.

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.

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.

2 unchanged sentences

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

As of April 30, 2022, approximately $ 1.0 million of stock-based compensation expense was accrued and reflected under accrued and other current liabilities in the condensed consolidated balance sheets.

Total unrecognized compensation cost related to unvested stock options at April 30, 2022 was $ 24.8 million and is expected to be recognized over a weighted-average period of 2.39 years.

Total unrecognized compensation cost related to unvested restricted stock units at April 30, 2022 was $ 207.1 million and is expected to be recognized over a weighted-average period of 2.43 years.

As of July 31, 2022, approximately $ 1.7 million of stock-based compensation expense was accrued and reflected under accrued and other current liabilities in the condensed consolidated balance sheets.

Total unrecognized compensation cost related to unvested stock options at July 31, 2022 was $ 21.7 million and is expected to be recognized over a weighted-average period of 2.20 years.

Total unrecognized compensation cost related to unvested restricted stock units at July 31, 2022 was $ 189.2 million and is expected to be recognized over a weighted-average period of 2.30 years.

In April 2022, the Company’s Compensation Committee of the Board of Directors approved the acceleration of vesting of 35,703 shares of unvested equity awards associated with the departure of Mr.

Casey Eichler, who was the Company’s Chief Financial Officer until March 2022.

As a result, there was approximately $ 1.7 million of additional stock-based compensation expense, net related to the departure recognized during the three months ended April 30, 2022.

As a result, there was approximately $ 1.7 million of additional stock-based compensation expense, net related to the departure recognized in fiscal year 2023.

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, 2022

Outstanding at April 30, 2022

Exercisable at April 30, 2022

Outstanding at July 31, 2022

Exercisable at July 31, 2022

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, 2022 was $ 82.08 , as reported by The NASDAQ Global Market.

The closing price of the Company’s ordinary shares on July 29, 2022 was $ 86.55 , 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.

The following table summarizes the restricted stock units activities for the period indicated:

The following table summarizes restricted stock unit activities for the period indicated:

Unvested at January 31, 2022

Unvested at April 30, 2022

As of April 30, 2022, the aggregate intrinsic value of unvested restricted stock units was $ 205.2 million.

Unvested at July 31, 2022

As of July 31, 2022, the aggregate intrinsic value of unvested restricted stock units was $ 199.3 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 $ 0.4 million and $ 1.3 million for the three months ended April 30, 2022 and 2021, respectively.

The decrease in income tax expense was primarily due to an increase in the proportion of profits generated in lower tax jurisdictions.

The Company recorded an income tax provision of $ 3.4 million and $ 1.4 million for the three months ended July 31, 2022 and 2021, and $ 3.8 million and $ 2.7 million for the six months ended July 31, 2022 and 2021, respectively.

The increase in income tax expense for the three and six months ended July 31, 2022 was primarily due to a decrease in the U.S.

federal research tax credit, a decrease in tax benefits from excess stock-based compensation deductions as well as an increase in non-deductible stock-based compensation, partially offset by a decrease in the proportion of profits generated in higher tax jurisdictions.

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

9 unchanged sentences

These assessments can require considerable estimates and judgments.

As of April 30, 2022, the gross amount of unrecognized tax benefits was approximately $ 31.1 million.

As of July 31, 2022, the gross amount of unrecognized tax benefits was approximately $ 31.3 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.

7 unchanged sentences

These manufacturing purchase commitments typically provide the Company with flexibility to cancel, reschedule or adjust requirements based upon business needs but the Company may incur certain costs depending on the production stage of the products.

As of April 30, 2022 and January 31, 2022, total manufacturing purchase commitments were approximately $ 66.3 million and $ 71.5 million, respectively.

The Company also reviews and assesses the need for any expected loss liabilities on a quarterly basis for all products that it does not expect to sell for which it has committed purchases from suppliers.

As of April 30, 2022 and January 31, 2022, there were no material loss liabilities recorded in the condensed consolidated balance sheets from adverse purchase commitments.

As of July 31, 2022 and January 31, 2022, total manufacturing purchase commitments were approximately $ 68.3 million and $ 71.5 million, respectively.

The Company also reviews and assesses the need for any expected loss liabilities on quarterly basis for all products that it does not expect to sell for which it has committed purchases from suppliers.

As of July 31, 2022, an approximately $ 1.9 million loss was recognized in the condensed consolidated balance sheets from adverse purchase commitments.

There were no material loss liabilities recorded in the condensed consolidated balance sheets from adverse purchase commitments as of January 31, 2022.

Indemnification

1 unchanged sentence

The Company has agreed to hold the other party harmless against third-party claims in connection with the Company’s future products.

The Company also indemnifies certain customers against third-party claims related to certain intellectual property matters.

The Company also indemnifies certain customers against third-party claims related to certain intellectual property and product liability matters.

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, 2022 and January 31, 2022, 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, 2022 and January 31, 2022, respectively.

Other Matters

From time to time, the Company is subject to commercial disputes, employment issues, intellectual property claims and litigation, in the ordinary course of its business .

Although the ultimate disposition of asserted claims cannot be predicted with certainty, it is the Company’s belief that the outcome of any such claims, either individually or on a combined basis, will not have a material adverse effect on its consolidated financial position.

The results of any litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors.

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, 2022, substantially all of the Company’s property and equipment were located in the Asia Pacific region, United States and Europe with approximate net amounts of $ 5.4 million, $ 3.2 million and $ 1.5 million, respectively.

As of July 31, 2022, substantially all of the Company’s property and equipment were located in the Asia Pacific region, United States and Europe with approximate net amounts of $ 5.3 million, $ 3.6 million and $ 1.6 million, respectively.

Major Customers

The customers representing 10% or more of revenue were WT, Chicony, and Hakuto, which accounted for approximately 57 %, 11 %, and 10 % of total revenue for the three months ended April 30, 2022, respectively.

For the three months ended April 30, 2021, the customers representing 10% or more of revenue were WT and Chicony, which accounted for approximately 63 % and 16 % of total revenue, respectively.

Accounts receivable with WT, Chicony, and Hakuto were approximately $ 3.1 million, $ 10.5 million, and $ 0.6 million as of April 30, 2022, respectively.

Subsequent Events

On May 27, 2022, the Company’s Board of Directors approved an extension of the current share repurchase program for an additional twelve months ending June 30, 2023 .

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 7, 2022, there was approximately $ 49.0 million remained available for repurchases under the repurchase program through June 30, 2023.

For the three and six months ended July 31, 2022, the customers representing 10% or more of revenue and accounts receivable were WT and Chicony, which accounted for approximately 59.4 % and 12.9 % of total revenue for the three months ended July 31, 2022, respectively, and accounted for approximately 57.9 % and 12.1 % of total revenue for the six months ended July 31, 2022, respectively.

For the three and six months ended July 31, 2021, the customers representing 10% or more of revenue and accounts receivable were WT and Chicony, which accounted for approximately 61.6 % and 15.8 % of total revenue for the three months ended July 31, 2021, respectively, and accounted for approximately 62.4 % and 15.8 % of total revenue for the six months ended July 31, 2021, respectively.

Accounts receivable with WT and Chicony were approximately $ 16.2 million and $ 10.5 million, respectively, as of July 31, 2022.

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