Note 3 - Revenue Recognition

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE 3: REVENUE RECOGNITION

Under ASC 606, “Revenue from Contracts with Customers” (“ASC 606”), an entity recognizes revenue when or as it satisfies a performance obligation by transferring intellectual property (“IP”) licenses 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 when the customer accepts control of the IP. The Company recognizes revenue over time on NRE services or on significant license customization contracts that are in the scope of ASC 606 by 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 2022		2023		2024		2025
Licensing, NRE and related revenues	$	10,032	$	7,472	$	424	$	315

Disaggregation of revenue:

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

	Nine months ended September 30, 2022 (unaudited)						Three months ended September 30, 2022 (unaudited)
	Licensing, NRE and related revenues		Royalties		Total		Licensing, NRE and related revenues		Royalties		Total
Primary geographical markets
United States	$	17,283	$	5,661	$	22,944	$	7,646	$	1,561	$	9,207
Europe and Middle East		4,280		2,227		6,507		1,746		887		2,633
Asia Pacific		45,221		26,574		71,795		12,876		8,944		21,820
Total	$	66,784	$	34,462	$	101,246	$	22,268	$	11,392	$	33,660
Major product/service lines
Connectivity products (baseband for handset and other devices, Bluetooth, Wi-Fi, NB-IoT and SATA/SAS)	$	46,118	$	25,582	$	71,700	$	13,308	$	8,320	$	21,628
Smart sensing products (AI, sensor fusion, audio/sound and imaging and vision)		20,666		8,880		29,546		8,960		3,072		12,032
Total	$	66,784	$	34,462	$	101,246	$	22,268	$	11,392	$	33,660
Timing of revenue recognition
Products transferred at a point in time	$	46,046	$	34,462	$	80,508	$	15,270	$	11,392	$	26,662
Products and services transferred over time		20,738		—		20,738		6,998		—		6,998
Total	$	66,784	$	34,462	$	101,246	$	22,268	$	11,392	$	33,660

	Nine months ended September 30, 2021 (unaudited)						Three months ended September 30, 2021 (unaudited)
	Licensing, NRE and related revenues		Royalties		Total		Licensing, NRE and related revenues		Royalties		Total
Primary geographical markets
United States	$	11,602	$	7,688	$	19,290	$	6,308	$	2,484	$	8,792
Europe and Middle East		1,430		2,005		3,435		597		833		1,430
Asia Pacific		38,458		27,456		65,914		14,653		7,905		22,558
Other		10		—		10		10		—		10
Total	$	51,500	$	37,149	$	88,649	$	21,568	$	11,222	$	32,790
Major product/service lines
Connectivity products (baseband for handset and other devices, Bluetooth, Wi-Fi, NB-IoT and SATA/SAS)	$	38,886	$	27,692	$	66,578	$	16,368	$	7,500	$	23,868
Smart sensing products (AI, sensor fusion, audio/sound and imaging and vision)		12,614		9,457		22,071		5,200		3,722		8,922
Total	$	51,500	$	37,149	$	88,649	$	21,568	$	11,222	$	32,790
Timing of revenue recognition
Products transferred at a point in time	$	38,458	$	37,149	$	75,607	$	14,406	$	11,222	$	25,628
Products and services transferred over time		13,042		—		13,042		7,162		—		7,162
Total	$	51,500	$	37,149	$	88,649	$	21,568	$	11,222	$	32,790

Contract balances:

The following table provides information about trade receivables, unbilled receivables and contract liabilities from contracts with customers:

	September 30, 2022 (unaudited)		December 31, 2021
Trade receivables	$	11,022	$	14,644
Unbilled receivables (associated with licensing, NRE and related revenue)		5,888		1,833
Unbilled receivables (associated with royalties)		9,853		10,972
Deferred revenues (short-term contract liabilities)		3,540		8,661

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, NRE 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, 2022, the Company recognized $617 and $8,248, respectively, that was included in deferred revenues (short-term contract liability) balance at January 1, 2022.