Revenue

12 Months Ended

Dec. 31, 2020

Revenue

Revenue

Note 6 – Revenue

We recognize revenue in accordance with ASC 606 “Revenue from Contracts with Customers” (“Topic 606”), as described below.

Disaggregation of Revenues

The following tables present our revenues disaggregated by major products and services, geographical region and timing of revenue recognition. Certain amounts reported for the years ended December 31, 2019 and 2018 have been recast consistent with the impacts disclosed in Note 3 – Revision of Previously Issued Financial Statements.

Revenue by major products and services (in thousands)

		Years ended December 31,
	2020		2019			2018
Hardware products	$	81,849	$	127,005	$	105,560
Software licenses		51,137		56,308		46,494
Subscription		27,788		22,280		15,432
Professional services		5,689		5,759		5,743
Maintenance, support and other		49,228		42,132		38,107
Total Revenue	$	215,691	$	253,484	$	211,336

Revenue by location of customer for the years ended December 31, 2020, 2019, and 2018 (in thousands)

	EMEA			Americas			APAC			Total
Total Revenue:
2020	$	117,086		$	53,171		$	45,434		$	215,691
2019	$	145,942		$	61,577		$	45,965		$	253,484
2018	$	102,349		$	54,979		$	54,008		$	211,336
Percent of Total:
2020		54	%		25	%		21	%		100	%
2019		58	%		24	%		18	%		100	%
2018		48	%		26	%		26	%		100	%

Timing of revenue recognition (in thousands)

	Year ended December 31,
	2020		2019		2018
Products and Licenses transferred at a point in time	$	132,986	$	183,313	$	152,054
Services transferred over time		82,705		70,171		59,282
Total Revenue	$	215,691	$	253,484	$	211,336

Contract balances (in thousands)

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.

	December 31,
	2020		2019
Receivables, inclusive of trade and unbilled	$	57,537	$	62,405
Contract Assets (current and non-current)	$	9,079	$	8,595
Contract Liabilities (Deferred Revenue current and non-current)	$	55,147	$	45,597

Contract assets relate primarily to multi-year term license arrangements and the remaining contractual billings. These contract assets are transferred to receivables when the right to billing occurs, which is normally over 3-5 years. The contract liabilities primarily relate to the advance consideration received from customers for subscription and maintenance services. Revenue is recognized for these services over time.

As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. We do not typically include extended payment terms in our contracts with customers.

Revenue recognized during the year ended December 31, 2020 included $35.0 million that was included on the December 31, 2019 balance sheet in contract liabilities. Deferred revenue increased in the same period due to timing of annual renewals.

Transaction price allocated to the remaining performance obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period.

in thousands	2021		2022		2023		Beyond 2023		Total
Future revenue related to current unsatisfied performance obligations	$	19,942	$	13,565	$	9,529	$	6,461	$	49,497

The Company applies practical expedients and does not disclose information about remaining performance obligations (a) that have original expected durations of one year or less, or (b) where revenue is recognized as invoiced.

Costs of obtaining a contract

The Company incurs incremental costs related to commissions, which can be directly tied to obtaining a contract. Under Topic 606, the Company capitalizes commissions associated with certain new contracts and amortizes the costs over a period of benefit based on the transfer of goods or services that we have determined to be up to seven years. We determined the period of benefit by taking into consideration our customer contracts, our technology and other factors, including customer attrition. Commissions are earned upon invoicing to the customer. For contracts with

multiple year payment terms, as the commissions that are payable after year 1 are payable based on continued employment, they are expensed when incurred. Commissions and amortization expense are included in Sales and Marketing expenses on the consolidated statements of operations.

Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period for the assets that the Company otherwise would have recognized is one year or less. These costs are included in Sales and Marketing expense in the consolidated statements of operations.

The following tables provide information related to the capitalized costs and amortization recognized in the current and prior period:

in thousands		December 31,  2020		December 31, 2019		December 31, 2018
Capitalized costs to obtain contracts, current	$	1,222	$	676	$	413
Capitalized costs to obtain contracts, non-current	$	5,464	$	3,222	$	2,150

		Year ended December 31,
in thousands		2020		2019
Amortization of capitalized costs to obtain contracts	$	904	$	495
Impairments of capitalized costs to obtain contracts	$	-	$	-