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Note 3 - Revenue Recognition
 3 Months Ended
Mar. 31, 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

 

Licensing, NRE and related revenues

 $20,864  $3,978  $298 

 

Disaggregation of revenue:

 

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

 

  

Three months ended March 31, 2022 (unaudited)

  

Three months ended March 31, 2021 (unaudited)

 
  

Licensing, NRE

and related

revenues

  

Royalties

  

Total

  

Licensing, NRE

and related

revenues

  

Royalties

  

Total

 

Primary geographical markets

                        

United States

 $4,475  $2,271  $6,746  $572  $3,378  $3,950 

Europe and Middle East

  437   665   1,102   423   676   1,099 

Asia Pacific

  17,481   9,062   26,543   13,402   6,951   20,353 

Total

 $22,393  $11,998  $34,391  $14,397  $11,005  $25,402 
                         

Major product/service lines

                        

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

 $16,815  $9,062  $25,877  $12,805  $8,105  $20,910 

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

  5,578   2,936   8,514   1,592   2,900   4,492 

Total

 $22,393  $11,998  $34,391  $14,397  $11,005  $25,402 
                         

Timing of revenue recognition

                        

Products transferred at a point in time

 $15,932  $11,998  $27,930  $11,988  $11,005  $22,993 

Products and services transferred over time

  6,461   —   6,461   2,409   —   2,409 

Total

 $22,393  $11,998  $34,391  $14,397  $11,005  $25,402 

 

Contract balances:

 

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

 

  

March 31, 2022 (unaudited)

  

December 31, 2021

 
         

Trade receivables

 $12,063  $14,644 

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

  2,174   1,833 

Unbilled receivables (associated with royalties)

  9,271   10,972 

Deferred revenues (short-term contract liabilities)

  8,731   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 months ended March 31, 2022, the Company recognized $3,820, that was included in deferred revenues (short-term contract liability) balance at January 1, 2022.