Revenue

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

3. Revenue

The following tables represent a disaggregation of revenue from contracts with customers for fiscal 2022 and 2021.

Major Products and Service Lines

	2022										2021
	(in thousands)
	HDD		DCP		PV		ASP		Total		HDD		DCP		PV		ASP		Total
Systems, upgrades and spare parts	$	29,507	$	1	$	273	$	100	$	29,881	$	28,300	$	3	$	258	$	3,850	$	32,411
Field service		5,647		43		190		—		5,880		6,031		14		68		—		6,113
Total net revenues	$	35,154	$	44	$	463	$	100	$	35,761	$	34,331	$	17	$	326	$	3,850	$	38,524

Primary Geography Markets

	2022		2021
	(in thousands)
United States	$	4,558	$	3,670
Asia		31,103		31,004
Europe		100		3,850
Total net revenues	$	35,761	$	38,524

Timing of Revenue Recognition

	2022		2021
	(in thousands)
Products transferred at a point in time	$	35,761	$	38,524
Products and services transferred over time		—		—
Total net revenues	$	35,761	$	38,524

The following table reflects the changes in our contract assets, which we classify as accounts receivable, unbilled or retainage and our contract liabilities which we classify as deferred revenue and customer advances for fiscal 2022:

	December 31, 2022		January 1, 2022		Change
	(In thousands)
Contract assets:
Accounts receivable, unbilled	$	424	$	99	$	325
Contract liabilities:
Deferred revenue	$	2,446	$	65	$	2,381
Customer advances		24,659		2,107		22,552
	$	27,105	$	2,172	$	24,933

Accounts receivable, unbilled represents a contract asset for revenue that has been recognized in advance of billing the customer. For our system and certain upgrade sales, our customers generally pay in three installments, with a portion of the system price billed upon receipt of an order, a portion of the price billed upon shipment, and the balance of the price due upon completion of installation and acceptance of the system at the customer’s factory. Accounts receivable, unbilled generally represents the balance of the system price that is due upon completion of installation and acceptance less the amount that has been deferred as revenue for the performance of the installation tasks. During fiscal 2022, contract assets increased by $325,000 primarily due to the accrual of revenue for an upgrade delivered in the year that was pending acceptance at December 31, 2022 and the billing of accrued revenue related to spare parts sold to a customer as of December 31, 2022.

Customer advances generally represent amounts billed to the customer prior to transferring goods which represents a contract liability. The Company has elected to use the practical expedient to disregard the effect of the time value of money in a significant financing component when its payment terms are less than one year. These contract advances are liquidated when revenue is recognized. Customer advances with deliveries beyond one year are included in long term liabilities. Deferred revenue generally represents amounts billed to a customer for completed systems at the customer site that are undergoing installation and acceptance testing where transfer of control has not yet occurred as Intevac does not yet have a demonstrated history of meeting the acceptance criteria upon the customer’s receipt of product and represents a contract liability. During fiscal 2022, we recognized revenue of $386,000 and $39,000 that was included in customer advances and deferred revenue, respectively, at the beginning of the period. Customer advances included in accounts receivable were $2.2 million at December 31, 2022.