REVENUE RECOGNITION (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations

The following table includes estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The estimated revenues do not include amounts of royalties or unexercised contract renewals:

	Remainder of 2018		2019		2020		2021
License and related revenues	$	4,215	$	5,630	$	3,000	$	1,500

Summary of Disaggregated Revenue by Primary Geographical Market, Major Product Line and Timing

The following table provides information about disaggregated revenue by primary geographical market, major product line and timing of revenue recognition (in thousands):

	Six months ended June 30, 2018 (unaudited)						Three months ended June 30, 2018 (unaudited)
	Licensing and related revenues		Royalties		Total		Licensing and related revenues		Royalties		Total
Primary geographical markets
United States	$	3,184	$	644	$	3,828	$	1,824	$	297	$	2,121
Europe and Middle East		2,752		2,414		5,166		1,414		1,299		2,713
Asia Pacific		14,185		11,884		26,069		6,800		5,860		12,660
Total	$	20,121	$	14,942	$	35,063	$	10,038	$	7,456	$	17,494
Major product/service lines
DSP products (DSP cores and platforms)	$	13,425	$	13,641	$	27,066	$	6,050	$	6,763	$	12,813
Connectivity products (Bluetooth, Wi-Fi and SATA/SAS)		6,696		1,301		7,997		3,988		693		4,681
Total	$	20,121	$	14,942	$	35,063	$	10,038	$	7,456	$	17,494
Timing of revenue recognition
Products transferred at a point in time	$	15,285	$	14,942	$	30,227	$	7,761	$	7,456	$	15,217
Products and services transferred over time		4,836		—		4,836		2,277		—		2,277
Total	$	20,121	$	14,942	$	35,063	$	10,038	$	7,456	$	17,494

Summary of Trade Receivables, Contract Assets and Contract Liabilities from Contracts with Customers

The following table provides information about trade receivables, contract assets and contract liabilities from contracts with customers (in thousands):

	June 30, 2018 (unaudited)
Trade receivables	$	9,246
Accrued revenues (short-term contract assets)		1,718
Accrued revenues (royalties)		7,035
Deferred revenues (short-term contract liabilities)		2,717

ASU 2014-09

Schedule of Changes in Accumulated Balances of Other Comprehensive Income (Loss), Net of Taxes

In accordance with ASC 606, the disclosure of the impact of adoption to the Company’s condensed consolidated statements of income and balance sheets was as follows:

	Six months ended June 30, 2018 (unaudited)									Three months ended June 30, 2018 (unaudited)
	As reported			Balance without adopting ASC 606			Effect of change higher/(lower)			As reported			Balance without adopting ASC 606			Effect of change higher/(lower)
Revenues:
Licensing and related revenue	$	20,121		$	18,599		$	1,522		$	10,038		$	9,035		$	1003
Royalties		14,942			17,537			(2,595	)		7,456			7,569			(113	)
Total revenues		35,063			36,136			(1,073	)		17,494			16,604			890
Cost of revenues		3,960			3,960			—			1,988			1,988			—
Gross profit		31,103			32,176			(1,073	)		15,506			14,616			890
Operating expenses:
Sales and marketing		6,575			6,457			118			3,399			3,291			108
Other operating expenses		30,097			30,097			—			14,768			14,768			—
Total operating expenses		36,672			36,554			118			18,167			18,059			108
Operating loss		(5,569	)		(4,378	)		(1,191	)		(2,661	)		(3,443	)		782
Financial income, net		1,704			1,704			—			777			777			—
Loss before taxes on income		(3,865	)		(2,674	)		(1,191	)		(1,884	)		(2,666	)		782
Income taxes		407			769			(362	)		206			305			(99	)
Net loss	$	(4,272	)	$	(3,443	)	$	(829	)	$	(2,090	)	$	(2,971	)	$	881
Basic net loss per share	$	(0.19	)	$	(0.16	)	$	(0.04	)	$	(0.09	)	$	(0.13	)	$	0.04
Diluted net loss per share	$	(0.19	)	$	(0.16	)	$	(0.04	)	$	(0.09	)	$	(0.13	)	$	0.04

	June 30, 2018 (unaudited)
	As reported		Balance without adopting ASC 606		Effect of change higher/(lower)
Assets:
Trade receivables	$	9,246	$	8,461	$	785
Accrued revenues	$	8,753	$	1,564	$	7,189
Prepaid expenses and other current assets	$	6,244	$	6,648	$	(404	)
Liabilities:
Deferred revenues	$	2,717	$	2,872	$	(155	)
Stockholders’ Equity:
Retained earnings	$	58,068	$	50,343	$	7,725