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REVENUE RECOGNITION (Tables) | 6 Months Ended
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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 |

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