Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | NOTE 1: Organization: CEVA, Inc. (“CEVA” or the “Company”) was incorporated in Delaware on November 22, 1999. November 2002. no CEVA licenses a family of signal processing IPs in two 5G 4/5/6 802.11n/ac/ax CEVA’s technologies are licensed to leading semiconductor and original equipment manufacturer (OEM) companies. These companies design, manufacture, market and sell application-specific integrated circuits (“ASICs”) and application-specific standard products (“ASSPs”) based on CEVA’s technology to wireless, consumer electronics and automotive companies for incorporation into a wide variety of end products. Acquisitions : In July 2019, $11,204 $10,000 $204 first 2020, $1,000 The milestone-based contingent payment is calculated based on payments to be received by the Company for certain products to be sold by the Company prior to October 15, 2019. $204. In addition, the Company incurred acquisition-related expenses associated with the Hillcrest Labs transaction in a total amount of $462, December 31, 2019. Goodwill generated from this business combination is attributed to synergies between the Company's and Hillcrest Lab's respective products and services. The results of Hillcrest Labs’ operations have been included in the consolidated financial statements since July 19, 2019. not not The purchase price allocation for the acquisition has been determined as follows: Tangible assets (including inventory, property and equipment and other) $ 681 Intangible assets: Developed technologies 2,475 Customer relationships 3,518 Customer backlog 72 Goodwill 4,458 Total assets $ 11,204 The acquisition of the Hillcrest Labs business has been accounted in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 805, 805” In August 2019, $10,000 The consideration for the investment has been determined as follows: Prepaid expenses $ 2,937 Intangible assets: Core technologies 7,063 Total assets $ 10,000 The intangible assets will be amortized based on the pattern upon which the economic benefits of the intangible assets are to be utilized. Basis of presentation: The consolidated financial statements have been prepared according to U.S Generally Accepted Accounting Principles (“U.S. GAAP”). Recently Adopted Accounting Pronouncements : On January 1, 2019, No. 2016 02, 842” 840, not 842 1 4 In August 2017, No. 2017 12, 815 January 1, 2019 not Use of estimates : The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Financial statements in U.S. dollars : A majority of the revenues of the Company and its subsidiaries is generated in U.S. dollars (“dollars”). In addition, a portion of the Company and its subsidiaries’ costs are incurred in dollars. The Company’s management has determined that the dollar is the primary currency of the economic environment in which the Company and its subsidiaries principally operate. Thus, the functional and reporting currency of the Company and its subsidiaries is the dollar. Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into dollars in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 830, Principles of consolidation : The consolidated financial statements incorporate the financial statements of the Company and all of its subsidiaries. All inter-company balances and transactions have been eliminated on consolidation. Cash equivalents : Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three Short-term bank deposits : Short-term bank deposits are deposits with maturities of more than three one 1.85%, 2.16% 2.64% 2017, 2018 2019, Marketable securities : Marketable securities consist mainly of corporate bonds. The Company determines the appropriate classification of marketable securities at the time of purchase and re-evaluates such designation at each balance sheet date. In accordance with FASB ASC No. 320 may one The Company recognizes an impairment charge when a decline in the fair value of its investments in debt securities below the cost basis of such securities is judged to be other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period. For securities that are deemed other-than-temporarily impaired (“OTTI”), the amount of impairment is recognized in the statement of income and is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). The Company did not 2017, 2018 2019. Long-term bank deposits : Long-term bank deposits are deposits with maturities of more than one 2.26%, 2.57% 2.94% 2017, 2018 2019, Property and equipment, net : Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Computers, software and equipment 10 - 33 Office furniture and equipment 7 - 33 Leasehold improvements 10 - 25 (the shorter of the expected lease term or useful economic life) The Company’s long-lived assets are reviewed for impairment in accordance with FASB ASC No. 360 10 35, may not An asset to be disposed is reported at the lower of its carrying amount or fair value less selling costs. No 2017, 2018 2019. Leases : Effective as of January 1, 2019, 842, 842 January 1, 2019 842, not 840, not The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward the historical lease classification, the Company’s assessment on whether a contract was or contained a lease, and initial direct costs for any leases that existed prior to January 1, 2019. As a result of the adoption of Topic 842 January 1, 2019, $9,785 $9,498. $287. not The Company determines if an arrangement is a lease at inception. The Company’s assessment is based on: ( 1 2 3 Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one no not one not ROU assets and liabilities are recognized on the commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of the Company's leases do not may The Company elected to not twelve Goodwill : Goodwill is carried at cost and is not October 1st The Company operates in one ASC 350 first two not not no not two 350 first three December 31, 2019, no Intangible assets, net : Acquired intangible assets with definite lives are amortized over their estimated useful lives. The Company amortizes intangible assets on a straight-line basis with definite lives over periods ranging from half a year to seven Intangible assets with definite lives are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not not December 31, 2017, 2018 2019. Investments in other company : The Company's non-marketable equity securities are investments in privately held companies without readily determinable market values. Effective January 1, 2018, 2016 01, not not not During the year ended December 31, 2019, no December 31, 2018, $870 December 31, 2017, no Revenue recognition : Effective as of January 1, 2018, 606, Revenue from Contracts with Customers 606” 2 The following is a description of principal activities from which the Company generates revenue. Revenues are recognized when control of the promised goods or services are transferred to the customers in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company determines revenue recognition through the following steps: ● identification of the contract with a customer; ● identification of the performance obligations in the contract; ● determination of the transaction price; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when, or as, the Company satisfies a performance obligation. The Company enters into contracts that can include various combinations of products and services, as detailed below, which are generally capable of being distinct and accounted for as separate performance obligations. The Company generates its revenues from ( 1 2 3 The Company accounts for its IP license revenues and related services, which provide the Company's customers with rights to use the Company's IP, in accordance with ASC 606. may 606, Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately, if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of IP license are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis. When contracts involve a significant financing component, the Company adjusts the promised amount of consideration for the effects of the time value of money if the timing of payments agreed to by the parties to the contract (either explicitly or implicitly) provide the customer with a significant benefit of financing, unless the financing period is under one 606. Revenues from contracts that involve significant customization of the Company’s IP to customer-specific specifications are performance obligations the Company generally accounts for as performance obligations satisfied over time. The Company’s performance does not first Revenues that are derived from the sale of a licensee’s products that incorporate the Company’s IP are classified as royalty revenues. Royalty revenues are recognized during the quarter in which the sale of the product incorporating the Company’s IP occurs. Royalties are calculated either as a percentage of the revenues received by the Company’s licensees on sales of products incorporating the Company’s IP or on a per unit basis, as specified in the agreements with the licensees. For a majority of the Company’s royalty revenues, the Company receives the actual sales data from its customers after the quarter ends and accounts for it as unbilled receivables. When the Company does not In addition to license fees, contracts with customers generally contain an agreement to provide for training and post contract support, which consists of telephone or e-mail support, correction of errors (bug fixing) and unspecified updates and upgrades. Fees for post contract support, which takes place after delivery to the customer, are specified in the contract and are generally mandatory for the first may 12 Revenues from the sale of development systems and chips are recognized when control of the promised goods or services are transferred to the customers. Deferred revenues, which represent a contract liability, include unearned amounts received under license agreements, unearned technical support and amounts paid by customers not The Company capitalizes sales commission as costs of obtaining a contract when they are incremental and, if they are expected to be recovered, amortized in a manner consistent with the pattern of transfer of the good or service to which the asset relates. If the expected amortization period is one Cost of revenue : Cost of revenue includes the costs of products, services and royalty expense payments to the Israeli Innovation Authority of the Ministry of Economy and Industry in Israel (the “IIA“) (refer to Note 15 Income taxes : The Company recognizes income taxes under the liability method. It recognizes deferred income tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. These differences are measured using the enacted statutory tax rates that are expected to apply to taxable income for the years in which differences are expected to reverse. The effect of a change in tax rates on deferred income taxes is recognized in the statements of income during the period that includes the enactment date. Valuation allowance is recorded to reduce the deferred tax assets to the net amount that the Company believes is more likely than not The Company accounts for uncertain tax positions in accordance with ASC 740. 740 10 two first not second 50% Research and development : Research and development costs are charged to the consolidated statements of income as incurred. Government grants and tax credits : Government grants received by the Company relating to categories of operating expenditures are credited to the consolidated statements of income during the period in which the expenditure to which they relate is charged. Royalty and non-royalty-bearing grants from the IIA for funding certain approved research and development projects are recognized at the time when the Company is entitled to such grants, on the basis of the related costs incurred, and included as a deduction from research and development expenses. The Company recorded grants in the amounts of $4,137, $3,352 $5,643 December 31, 2017, 2018 2019, 3% 3.5% may not The French Research Tax Credit, Crédit d’Impôt Recherche (“CIR”), is a French tax incentive to stimulate research and development (“R&D”) which is relevant for the Company's French subsidiaries (RivieraWaves and CEVA France). Generally, the CIR offsets the income tax to be paid and the remaining portion (if any) can be refunded. The CIR is calculated based on the claimed volume of eligible R&D expenditures by the Company. As a result, the CIR is presented as a deduction to “Research and development expenses” in the consolidated statements of income. During the years ended December 31, 2017, 2018 2019, $1,555, $2,065 $2,312, Employee benefit plan : Certain of the Company’s employees are eligible to participate in a defined contribution pension plan (the “Plan”). Participants in the Plan may 10% The Company’s U.S. operations maintain a retirement plan (the “U.S. Plan”) that qualifies as a deferred salary arrangement under Section 401 may 100% 6% may 15% Total contributions for the years ended December 31, 2017, 2018 2019 $988, $1,048 $1,189, Accrued severance pay : The liability of CEVA’s Israeli subsidiary for severance pay for employees hired prior to August 1, 2016 may Effective August 1, 2016, 14 1963. no no not Severance pay expenses, net of related income, for the years ended December 31, 2017, 2018 2019, $1,413, $1,818 $1,826, Equity-based compensation : The Company accounts for equity-based compensation in accordance with FASB ASC No. 718, Effective as of January 1, 2017, 2016 09, 718 2016 09” 2016 09, The Company estimates the fair value of options and SAR awards on the date of grant using an option-pricing model. The value of the portion of an award that is ultimately expected to vest is recognized as an expense over the requisite service period in the Company’s consolidated statements of income. The Company recognizes compensation expenses for the value of its options and SARs, which have graded vesting based on the accelerated attribution method over the requisite service period of each of the awards. The Company recognizes compensation expenses for the value of its RSU awards, based on the straight-line method over the requisite service period of each of the awards, and for its PSU awards based on the accelerated attribution method over the requisite service period of each of the awards. The fair value of each RSU and PSU is the market value as determined by the closing price of the common stock on the day of grant. The Company uses the Monte-Carlo simulation model for options and SARs granted. The Monte-Carlo simulation model uses the assumptions noted below. Expected volatility was calculated based upon actual historical stock price movements over the most recent periods ending on the grant date, equal to the expected option and SAR term. The Company has historically not no zero 2017, 2018 2019. The fair value for rights to purchase shares of common stock under the Company’s employee stock purchase plan was estimated on the date of grant using the following assumptions: 2017 2018 2019 Expected dividend yield 0% 0% 0% Expected volatility 28% - 46% 35% - 42% 42% - 43% Risk-free interest rate 0.5% - 1.1% 0.7% - 2.2% 2.0% - 2.5% Expected forfeiture 0% 0% 0% Contractual term of up to (months) 24 24 24 During the years ended December 31, 2017, 2018 2019, Year ended December 31, 2017 2018 2019 Cost of revenue $ 459 $ 588 $ 630 Research and development, net 3,839 5,141 5,857 Sales and marketing 1,428 1,587 1,495 General and administrative 2,967 3,051 2,736 Total equity-based compensation expense $ 8,693 $ 10,367 $ 10,718 As of December 31, 2019, $97 1.0 December 31, 2019, $13,969 1.5 Fair value of financial instruments : The carrying amount of cash, cash equivalents, short term bank deposits, trade receivables, other accounts receivable, trade payables and other accounts payable approximates fair value due to the short-term maturities of these instruments. Marketable securities and derivative instruments are carried at fair value. See Note 5 Comprehensive income (loss) : The Company accounts for comprehensive income (loss) in accordance with FASB ASC No. 220, Concentration of credit risk : Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, bank deposits, marketable securities, foreign exchange contracts and trade receivables. The Company invests its surplus cash in cash deposits and marketable securities in financial institutions and has established guidelines relating to diversification and maturities to maintain safety and liquidity of the investments. The majority of the Company’s cash and cash equivalents are invested in high grade certificates of deposits with major U.S., European and Israeli banks. Generally, cash and cash equivalents and bank deposits may may December 31, 2019, no 2019. no The Company is exposed primarily to fluctuations in the level of U.S. interest rates. To the extent that interest rates rise, fixed interest investments may may The Company is exposed to financial market risks, including changes in interest rates. The Company typically does not The Company’s trade receivables are geographically diverse, mainly in the Asia Pacific, and also in the United States and Europe. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its customers and to date has not Balance at beginning of period Additions Deduction Balance at end of period Year ended December 31, 2019 Allowance for doubtful accounts $ — $ 327 $ — $ 327 Year ended December 31, 2018 Allowance for doubtful accounts $ — $ — $ — $ — Year ended December 31, 2017 Allowance for doubtful accounts $ — $ — $ — $ — The Company has no Derivative and hedging activities : The Company follows the requirements of FASB ASC No. 815,” one twelve For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. As a result of adopting the new accounting guidance discussed in Note 1, January 1, 2019, January 1, 2019, 2017 2018. As of December 31, 2018 2019, $9,100 $5,500, Advertising expenses : Advertising expenses are charged to consolidated statements of income as incurred. Advertising expenses for the years ended December 31, 2017, 2018 2019 $1,118, $1,080 $996, Treasury stock : The Company repurchases its common stock from time to time pursuant to a board-authorized share repurchase program through open market purchases and repurchase plans. The repurchases of common stock are accounted for as treasury stock, and result in a reduction of stockholders’ equity. When treasury shares are reissued, the Company accounts for the reissuance in accordance with FASB ASC No. 505 30, Net earnings per share of common stock : Basic net earnings per share is computed based on the weighted average number of shares of common stock outstanding during each year. Diluted net earnings per share is computed based on the weighted average number of shares of common stock outstanding during each year, plus dilutive potential shares of common stock considered outstanding during the year, in accordance with FASB ASC No. 260, Year ended December 31, 2017 2018 2019 Numerator : Net income $ 17,028 $ 574 $ 28 Denominator (in thousands) : Basic weighted-average common stock outstanding 21,771 22,034 21,932 Effect of stock-based awards 790 469 391 Diluted weighted-average common stock outstanding 22,561 22,503 22,323 Basic net earnings per share $ 0.78 $ 0.03 $ 0.00 Diluted net earnings per share $ 0.75 $ 0.03 $ 0.00 The weighted-average number of shares related to outstanding options, SARs, RSUs and PSUs excluded from the calculation of diluted net income per share, since their effect was anti-dilutive, were 29,892, 161,362 184,947 December 31, 2017, 2018 2019, Recently Issued Accounting Pronouncement : In January 2016, 2016 13, 2016 13 January 1, 2020, not In January 2017, No. 2017 04, 2 not zero 2 December 15, 2019. January 1, 2017. not In December 2019, No. 2019 12, 740 2019 12 2019 12 December 15, 2020. |