Note

revenue recognition

Under ASC

606,

“Revenue from Contracts with Customers “, an entity recognizes revenue when or as it satisfies a performance obligation by transferring IP license or services to the customer, either at a point in time or over time. The Company recognizes most of its revenues at a point in time upon delivery of its IPs. The Company recognizes revenue over time on significant license customization contracts that are covered by contract accounting standards using cost inputs to measure progress toward completion of its 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 2019				2020				2021
License and related revenues		$	5,262			$	7,884			$	1,780

Disaggregation of revenue:

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

	Nine months ended September 30, 2019 (unaudited)						Three months ended September 30, 2019 (unaudited)
	Licensing and related revenues		Royalties		Total		Licensing and related revenues		Royalties		Total
Primary geographical markets
United States	$	6,809	$	904	$	7,713	$	3,450	$	361	$	3,811
Europe and Middle East		2,848		10,397		13,245		1,241		5,670		6,911
Asia Pacific		23,427		14,455		37,882		6,578		6,171		12,749
Total	$	33,084	$	25,756	$	58,840	$	11,269	$	12,202	$	23,471

Major product/service lines
Connectivity products (baseband for handset and other devices, Bluetooth, Wi-Fi, NB-IoT and SATA/SAS)	$	23,324	$	23,100	$	46,424	$	8,608	$	10,424	$	19,032
Smart sensing products (AI, audio/sound and imaging and vision)		9,760		2,656		12,416		2,661		1,778		4,439
Total	$	33,084	$	25,756	$	58,840	$	11,269	$	12,202	$	23,471

Timing of revenue recognition
Products transferred at a point in time	$	22,775	$	25,756	$	48,531	$	7,468	$	12,202	$	19,670
Products and services transferred over time		10,309		—		10,309		3,801		—		3,801
Total	$	33,084	$	25,756	$	58,840	$	11,269	$	12,202	$	23,471

	N ine months ended September 30, 2018 (unaudited)						Three months ended September 30, 2018 (unaudited)
	Licensing and related revenues		Royalties		Total		Licensing and related revenues		Royalties		Total
Primary geographical markets
United States	$	4,667	$	1,420	$	6,087	$	1,483	$	776	$	2,259
Europe and Middle East		3,286		8,019		11,305		534		5,605		6,139
Asia Pacific		21,954		17,130		39,084		7,769		5,246		13,015
Total	$	29,907	$	26,569	$	56,476	$	9,786	$	11,627	$	21,413

Major product/service lines
Connectivity products (baseband for handset and other devices, Bluetooth, Wi-Fi, NB-IoT and SATA/SAS)	$	21,769	$	25,065	$	46,834	$	8,210	$	11,189	$	19,399
Smart sensing products (AI, audio/sound and imaging and vision)		8,138		1,504		9,642		1,576		438		2,014
Total	$	29,907	$	26,569	$	56,476	$	9,786	$	11,627	$	21,413

Timing of revenue recognition
Products transferred at a point in time	$	22,163	$	26,569	$	48,732	$	6,878	$	11,627	$	18,505
Products and services transferred over time		7,744		—		7,744		2,908		—		2,908
Total	$	29,907	$	26,569	$	56,476	$	9,786	$	11,627	$	21,413

Contract balances:

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

	September 30, 2019 (unaudited)		December 31, 2018

Trade receivables	$	7,967	$	9,971
Unbilled receivables (associated with licensing and related revenue)		7,985		6,745
Unbilled receivables (associated with royalties)		10,861		9,440
Deferred revenues (short-term contract liabilities)		4,766		3,593

The Company receives payments from customers based upon contractual payment schedules; trade receivables are recorded when the right to consideration becomes unconditional, and an invoice is issued to the customer. Unbilled receivables associated with licensing and other include amounts related to the Company’s contractual right to consideration for completed performance objectives

not

yet invoiced. Unbilled receivables associated with royalties are recorded as the Company recognizes revenues from royalties earned during the quarter, but

not

yet invoiced, either by actual sales data received from customers, or, when applicable, by the Company’s estimation. Contract liabilities (deferred revenue) include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract.

During the

three

and

nine

months ended

September 30, 2019,

the Company recognized

$322

and

$3,513,

respectively, that was included in deferred revenues (short-term contract liability) balance at

January 1, 2019.