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Note 4 - Revenue Recognition
 9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

NOTE 4: 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 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 2021

  

2022

  

2023

 

License and related revenues

 $13,849  $9,405  $2,207 

 

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, 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 

 

 

  

Nine months ended September 30, 2020

(unaudited)

  

Three months ended September 30, 2020

(unaudited)

 
  

Licensing and

related revenues

  

Royalties

  

Total

  

Licensing and

elated revenues

  

Royalties

  

Total

 

Primary geographical markets

                        

United States

 $5,784  $7,970  $13,754  $1,035  $2,044  $3,079 

Europe and Middle East

  4,980   5,037   10,017   347   478   825 

Asia Pacific

  29,681   18,729   48,410   11,038   10,018   21,056 

Total

 $40,445  $31,736  $72,181  $12,420  $12,540  $24,960 
                         

Major product/service lines

                        

Connectivity products (baseband for handset and other devices, Bluetooth, Wi-Fi, NB-IoT and SATA/SAS)

 $31,679  $25,037  $56,716  $8,821  $9,752  $18,573 

Smart sensing products (AI, sensor fusion, audio/sound and imaging and vision)

  8,766   6,699   15,465   3,599   2,788   6,387 

Total

 $40,445  $31,736  $72,181  $12,420  $12,540  $24,960 
                         

Timing of revenue recognition

                        

Products transferred at a point in time

 $30,405  $31,736  $62,141  $9,099  $12,540  $21,639 

Products and services transferred over time

  10,040   —   10,040   3,321   —   3,321 

Total

 $40,445  $31,736  $72,181  $12,420  $12,540  $24,960 

 

Contract balances:

 

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

 

  

September 30,

2021

(unaudited)

  

December 31, 2020

 
         

Trade receivables

 $15,269  $14,765 

Unbilled receivables (associated with licensing, NRE and related revenue)

  2,123   5,479 

Unbilled receivables (associated with royalties)

  9,189   10,980 

Deferred revenues (short-term contract liabilities)

  6,217   2,434 

 

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, 2021, the Company recognized $374 and $2,146, respectively, that was included in deferred revenues (short-term contract liability) balance at January 1, 2021.