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Revenue
6 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Revenue
Revenue

Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

Transaction Price Allocated to the Remaining Performance Obligations

Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods and services for which customer purchase orders have been accepted that are scheduled or in the process of being scheduled for shipment.

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of June 30, 2019:
 
 
1 year
 
2 years
 
Greater than 2 years
 
Total
 
 
(In thousands)
Performance obligations
 
$
58,161

 
$
991

 
$
1,013

 
$
60,165



Contract Balances

The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations.

Payment terms vary by customer. The time between invoicing and when payment is due is not significant. For certain products or services and customer types, payment is required before the products or services are delivered to the customer.

The following table reflects the changes in contract balances for the six months ended June 30, 2019:
 
Balance Sheet Location
June 30, 2019
December 31, 2018
$ change
% change
 
 
(In thousands)
 
Accounts Receivable, net
Accounts receivable, net
$
238,635

$
303,667

$
(65,032
)
(21.4
)%
Contract liabilities - current
Deferred revenue
$
10,093

$
11,086

$
(993
)
(9.0
)%
Contract liabilities - non-current
Other non-current liabilities
$
1,954

$
779

$
1,175

150.8
 %


The difference in the balances of the Company’s contract assets and liabilities as of June 30, 2019 and December 31, 2018 primarily results from the timing difference between the Company’s performance and the customer’s payment.

During the six months ended June 30, 2019, $6.9 million of revenue was deferred due to unsatisfied performance obligations for service contracts and undelivered product commitments. During the six months, $6.7 million of revenue was recognized for the satisfaction of performance obligations over time. $5.5 million of this recognized revenue was included in the contract liability balance at the beginning of the period.

There were no significant changes in estimates during the period that would affect the contract balances.

Disaggregation of Revenue

In the following table, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle-East and Africa (“EMEA”); and Asia Pacific ("APAC"). The table also includes a reconciliation of the disaggregated revenue by reportable segment. The Company operates and reports in two segments: Connected Home, and Small and Medium Business ("SMB"). Sales and usage-based taxes are excluded from net revenue.

 
Three Months Ended
 
June 30,
2019
 
July 1,
2018
 
Connected Home
 
SMB
 
Total
 
Connected Home
 
SMB
 
Total
 
(In thousands)
Geographic regions:
 
 
 
 
 
 
 
 
 
 
 
Americas
$
131,669

 
$
25,501

 
$
157,170

 
$
145,570

 
$
28,844

 
$
174,414

EMEA
17,526

 
25,565

 
43,091

 
20,505

 
27,704

 
48,209

APAC
18,300

 
12,291

 
30,591

 
20,349

 
12,304

 
32,653

Total net revenue
$
167,495

 
$
63,357

 
$
230,852

 
$
186,424

 
$
68,852

 
$
255,276

Sales channels:
 
 


 


 


 


 


Service provider
$
26,901

 
$
922

 
$
27,823

 
$
46,333

 
$
700

 
$
47,033

Non-service provider
140,594

 
62,435

 
203,029

 
140,091

 
68,152

 
208,243

Total net revenue
$
167,495

 
$
63,357

 
$
230,852

 
$
186,424

 
$
68,852

 
$
255,276


 
Six Months Ended
 
June 30,
2019
 
July 1,
2018
 
Connected Home
 
SMB
 
Total
 
Connected Home
 
SMB
 
Total
 
(In thousands)
Geographic regions:
 
 
 
 
 
 
 
 
 
 
 
Americas
$
245,356

 
$
59,843

 
$
305,199

 
$
274,608

 
$
59,818

 
$
334,426

EMEA
43,216

 
56,838

 
100,054

 
41,515

 
54,128

 
95,643

APAC
48,288

 
26,393

 
74,681

 
44,616

 
25,792

 
70,408

Total net revenue
$
336,860

 
$
143,074

 
$
479,934

 
$
360,739

 
$
139,738

 
$
500,477

Sales channels:
 
 
 
 
 
 
 
 
 
 
 
Service provider
$
63,719

 
$
2,398

 
$
66,117

 
$
88,130

 
$
1,763

 
$
89,893

Non-service provider
273,141

 
140,676

 
413,817

 
272,609

 
137,975

 
410,584

Total net revenue
$
336,860

 
$
143,074

 
$
479,934

 
$
360,739

 
$
139,738

 
$
500,477