Revenue From Contracts With Customers

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

Sales are derived from products for different applications: fiber lasers, diode lasers, diodes and systems for materials processing, fiber lasers and amplifiers for advanced applications, fiber amplifiers for communications applications, and fiber lasers for medical applications.

The following tables represent a disaggregation of revenue from contracts with customers:


	Three Months Ended March 31,
	2020		2019
Sales by Application
Materials processing	$	218,074	$	301,085
Other applications	31,168		13,962
Total	$	249,242	$	315,047




Sales by Product
High Power Continuous Wave ("CW") Lasers	$	119,316	$	179,019
Medium Power CW Lasers	11,253		15,598
Pulsed Lasers	31,839		31,437
Quasi-Continuous Wave ("QCW") Lasers	9,873		14,166
Laser and Non-Laser Systems	18,634		32,631
Other Revenue including Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue	58,327		42,196
Total	$	249,242	$	315,047




Sales by Geography


North America	$	67,339	$	64,807
Europe:
Germany	17,411		18,619
Other including Eastern Europe/CIS	57,232		69,200
Asia and Australia:
China	68,599		114,366
Japan	13,685		15,614
Other	22,823		31,738
Rest of World	2,153		703
Total	$	249,242	$	315,047




Timing of Revenue Recognition
Goods and services transferred at a point in time	$	233,436	$	292,093
Goods and services transferred over time	15,806		22,954
Total	$	249,242	$	315,047

One of our customers accounted for 23% and 24% of our net accounts receivable as of March 31, 2020 and December 31, 2019, respectively.

The Company enters into contracts to sell lasers and spare parts, for which revenue is generally recognized upon shipment or delivery, depending on the terms of the contract. The Company also provides installation services and extended warranties. The Company frequently receives consideration from a customer prior to transferring goods to the customer under the terms of a sales contract. The Company records customer deposits related to these prepayments, which represent a contract liability. The Company also records deferred revenue related to installation services when consideration is received before the services have been performed. The Company recognizes customer deposits and deferred revenue as net sales after control of the goods or

services has been transferred to the customer and all revenue recognition criteria are met. The Company bills customers for extended warranties upon entering into the agreement with the customer, resulting in deferred revenue. The timing of customer payments on contracts for the sale of customized robotic systems generally differs from the timing of revenue recognized, resulting in contract assets and liabilities. Contract assets are included within prepaid expense and other current assets on the condensed consolidated balance sheets. Contract liabilities are included within accrued expenses and other current liabilities on the condensed consolidated balance sheets.

The following table reflects the changes in the Company's contract assets and liabilities for the three months ended March 31, 2020 and 2019:


	March 31,		December 31,				March 31,		December 31,
	2020		2019		Change		2019		2018		Change

Contract assets
Contract assets	$	8,646	$	9,645	$	(999)	$	5,587	$	10,102	$	(4,515)
Contract liabilities
Contract liabilities - current	62,499		59,531		2,968		55,237		52,606		2,631
Contract liabilities - long-term	2,377		1,820		557		1,649		1,413		236

During the three months ended March 31, 2020 and March 31, 2019 the Company recognized revenue of $14,995 and $25,160, respectively, that was included in contract liabilities at the beginning of each period.

The Company has elected the practical expedient in ASC 606-10-50-14, whereby the performance obligations for contracts with an original expected duration of one year or less are not disclosed. The following table represents the Company's remaining performance obligations from contracts that are recognized over time as of March 31, 2020:


	Remaining Performance Obligations
	2020 ^(a)		2021		2022		2023		2024		Thereafter		Total
Revenue expected to be recognized for extended warranty agreements	$	3,418	$	1,421	$	710	$	474	$	207	$	41	$	6,271
Revenue to be earned over time from contracts to sell robotic systems	19,637		6,868		—		—		—		—		26,505
Total	$	23,055	$	8,289	$	710	$	474	$	207	$	41	$	32,776

^(a)For the nine-month period beginning April 1, 2020.