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		$	6,920			$	5,167			$	1,500

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):

	Six months ended June 3 0 , 201 9 (unaudited)						Three months ended June 3 0 , 2019 (unaudited)
	Licensing and related revenues		Royalties		Total		Licensing and related revenues		Royalties		Total
Primary geographical markets
United States	$	3,359	$	543	$	3,902	$	1,866	$	257	$	2,123
Europe and Middle East		1,607		4,727		6,334		225		2,767		2,992
Asia Pacific		16,849		8,284		25,133		8,713		4,572		13,285
Total	$	21,815	$	13,554	$	35,369	$	10,804	$	7,596	$	18,400

Major product/service lines
Connectivity products (baseband for handset and other devices, Bluetooth, Wi-Fi, NB-IoT and SATA/SAS)	$	14,716	$	12,676	$	27,392	$	8,085	$	7,055	$	15,140
Smart sensing products (AI, audio/sound and imaging and vision)		7,099		878		7,977		2,719		541		3,260
Total	$	21,815	$	13,554	$	35,369	$	10,804	$	7,596	$	18,400

Timing of revenue recognition
Products transferred at a point in time	$	15,307	$	13,554	$	28,861	$	7,396	$	7,596	$	14,992
Products and services transferred over time		6,508		—		6,508		3,408		—		3,408
Total	$	21,815	$	13,554	$	35,369	$	10,804	$	7,596	$	18,400

	Six months ended June 3 0 , 201 8 (unaudited)						Three months ended June 3 0 , 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
Connectivity products (baseband for handset and other devices, Bluetooth, Wi-Fi, NB-IoT and SATA/SAS)	$	13,559	$	13,876	$	27,435	$	7,201	$	6,915	$	14,116
Smart sensing products (AI, audio/sound and imaging and vision)		6,562		1,066		7,628		2,837		541		3,378
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

Contract balances:

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

	June 3 0 , 201 9 (unaudited)		December 3 1 , 2018

Trade receivables	$	10,461	$	9,971
Unbilled receivables (associated with licensing and related revenue)		4,989		6,745
Unbilled receivables (associated with royalties)		6,569		9,440
Deferred revenues (short-term contract liabilities)		2,395		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

six

months ended

June 30, 2019,

the Company recognized

$570

and

$3,191,

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

January 1, 2019.