Note 2 - Revenue Recognition

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE 2: REVENUE RECOGNITION

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:

	2023		2024		2025
License, NRE and related revenues	$	15,531	$	739	$	559

Disaggregation of revenue:

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

	Year ended December 31, 2021						Year ended December 31, 2022
	Licensing, NRE and related revenues		Royalties		Total		Licensing, NRE and related revenues		Royalties		Total
Primary geographical markets
United States	$	16,685	$	10,033	$	26,718	$	20,995	$	7,100	$	28,095
Europe and Middle East		2,938		3,938		6,876		6,864		3,205		10,069
Asia Pacific		53,194		35,908		89,102		61,400		35,084		96,484
Other		10		—		10		—		—		—
Total	$	72,827	$	49,879	$	122,706	$	89,259	$	45,389	$	134,648
Major product/service lines
Connectivity products (baseband for handset and other devices, Bluetooth, Wi-Fi, NB-IoT, and SATA/SAS)	$	52,460	$	36,960	$	89,420	$	62,376	$	33,891	$	96,267
Smart sensing products (AI, sensor fusion, audio/sound and imaging and vision)		20,367		12,919		33,286		26,883		11,498		38,381
Total	$	72,827	$	49,879	$	122,706	$	89,259	$	45,389	$	134,648
Timing of revenue recognition
Products transferred at a point in time	$	53,401	$	49,879	$	103,280	$	62,328	$	45,389	$	107,717
Products and services transferred over time		19,426		—		19,426		26,931		—		26,931
Total	$	72,827	$	49,879	$	122,706	$	89,259	$	45,389	$	134,648

	Year ended December 31, 2020
	Licensing and related revenues		Royalties		Total
Primary geographical markets
United States	$	6,716	$	14,097	$	20,813
Europe and Middle East		6,176		5,790		11,966
Asia Pacific		39,621		27,926		67,547
Total	$	52,513	$	47,813	$	100,326
Major product/service lines
Connectivity products (baseband for handset and other devices, Bluetooth, Wi-Fi, NB-IoT, and SATA/SAS)	$	40,748	$	37,917	$	78,665
Smart sensing products (AI, sensor fusion, audio/sound and imaging and vision)		11,765		9,896		21,661
Total	$	52,513	$	47,813	$	100,326
Timing of revenue recognition
Products transferred at a point in time	$	40,075	$	47,813	$	87,888
Products and services transferred over time		12,438		—		12,438
Total	$	52,513	$	47,813	$	100,326

Contract balances:

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

	December 31, 2021		December 31, 2022
Trade receivables	$	14,644	$	12,297
Unbilled receivables (associated with licensing, NRE and related revenue)		1,833		8,695
Unbilled receivables (associated with royalties)		10,972		10,258
Deferred revenues (short-term contract liabilities)		8,661		3,168

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 year, 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 year ended December 31, 2022, the Company recognized $8,351 that was included in deferred revenues (short-term contract liability) balance at January 1, 2022.

Practical expediency and exemptions:

The Company generally expenses sales commissions when incurred because the amortization period would have been less than one year. The Company records these costs within sales and marketing expenses on the Company’s consolidated statements of income (loss).

The Company does not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised goods or services to the customer will be one year or less.