CEVA INC Revenue Disclosure

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:

 

		2026				2027				2028 and thereafter
Licensing and related revenues		$	13,372			$	1,523			$	483

 

Disaggregation of revenue:

 

The following table provides information about disaggregated revenue by primary geography, use cases for the Company’s technology portfolio, and timing of revenue recognition:

 

		Year ended December 31, 2024												Year ended December 31, 2025
		Licensing and related revenues				Royalties				Total				Licensing and related revenues				Royalties				Total
Geography
United States		$	14,988			$	5,316			$	20,304			$	14,117			$	5,171			$	19,288
Europe and Middle East			8,486				4,310				12,796				2,917				3,358				6,275
Asia Pacific			36,512				37,314				73,826				46,561				37,474				84,035
Other			13				—				13				—				—				—
Total		$	59,999			$	46,940			$	106,939			$	63,595			$	46,003			$	109,598
Use cases for the Company’s technology portfolio
Connect (baseband for handset and other devices, Bluetooth, Wi-Fi and NB-IoT)		$	53,607			$	36,426			$	90,033			$	46,277			$	35,658			$	81,935
Sense & Infer ( sensor fusion, audio, sound, imaging, vision and AI)			6,392				10,514				16,906				17,318				10,345				27,663
Total		$	59,999			$	46,940			$	106,939			$	63,595			$	46,003			$	109,598
Timing of revenue recognition
Products transferred at a point in time		$	50,655			$	46,940			$	97,595			$	49,652			$	46,003			$	95,655
Products and services transferred over time			9,344				—				9,344				13,943				—				13,943
Total		$	59,999			$	46,940			$	106,939			$	63,595			$	46,003			$	109,598

 

		Year ended December 31, 2023
		Licensing and related revenues				Royalties				Total
Geography
United States		$	3,845			$	5,706			$	9,551
Europe and Middle East			9,197				2,987				12,184
Asia Pacific and other			44,513				31,171				75,684
Total		$	57,555			$	39,864			$	97,419
Use cases for the Company’s technology portfolio
Connect (baseband for handset and other devices, Bluetooth, Wi-Fi and NB-IoT)		$	49,910			$	29,787			$	79,697
Sense & Infer (sensor fusion, audio, sound, imaging, vision and AI)			7,645				10,077				17,722
Total		$	57,555			$	39,864			$	97,419
Timing of revenue recognition
Products transferred at a point in time		$	46,542			$	39,864			$	86,406
Products and services transferred over time			11,013				—				11,013
Total		$	57,555			$	39,864			$	97,419

 

Contract balances:

 

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

 

		December 31, 2024				December 31, 2025
Currents assets (classified under “Trade receivables”):
Trade receivables		$	15,969			$	19,495
Unbilled receivables (associated with licensing and related revenue)			8,266				16,545
Unbilled receivables (associated with royalties)			12,974				13,315
Total current assets			37,209				49,355
Long-term assets (classified under “Other long-term assets”):
Unbilled receivables (associated with licensing and related revenue)			2,583				1,176
Deferred revenues (short-term contract liabilities)			3,599				3,496

 

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.

 

Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days.

 

During the year ended December 31, 2025, the Company recognized $2,889 that was included in deferred revenues (short-term contract liability) balance at January 1, 2025.

 

Costs to obtain a contract:

 

As of December 31, 2024 and 2025, the Company had a remaining contract cost asset of $467 and $76, respectively, related to the incremental costs of obtaining the contract arising from sales commissions. During the years ended December 31, 2024 and 2025, the Company recognized amortization of contract costs of $257 and $253, respectively. Contract cost asset and amortization were immaterial for the year ended December 31, 2023. The Company records these costs within sales and marketing expenses on the Company’s consolidated statements of income (loss).

 

Discontinued operation:

 

The Company's revenues streams from Intrinsix chip design business comprises primarily of non-recurring engineering (“NRE”) revenues. Revenues that are derived from NRE chip design services are performance obligations that are recognized over time as the services are rendered. For time-and-materials contracts, the performance obligation is satisfied, and revenue is recognized over time as the services are performed. Generally, contracts call for billings on a time-and-materials basis; however, in instances when a fixed-fee contract is signed, revenue is recognized over time, based on an input method of labor costs expended, relative to total expected labor costs to complete the contract.

 

The Intrinsix business relies heavily on contracts with U.S. government prime contractors.