Revenue Recognition

6 Months Ended

Jun. 30, 2019

Revenue Recognition

Revenue Recognition

Note 3. Revenue Recognition

The adoption of Topic 606 represents a change in accounting principle that will provide financial statement readers with enhanced revenue recognition disclosures. In accordance with Topic 606, revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally, this occurs with the transfer of control of products or services. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. Certain customers may receive cash and/or non-cash incentives, which are accounted for as variable consideration. To achieve this core principle, the Company applies the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to performance obligations in the contract; and (v) recognize revenue when or as the Company satisfies a performance obligation. The Company generally satisfies performance obligations at a point in time. Revenue is recognized based on the transaction price at the time the related performance obligation is satisfied by transferring a promised product or service to a customer.

Disaggregation of Revenue

Revenue is classified based on the location of where the product is manufactured. For additional information on the disaggregated revenues by geographical region, see Note 17, "Geographic Information.”

Revenue is also classified by major product category and is presented below (in thousands):

	Three months ended June 30,
	2019		% of Revenue	2018		% of Revenue
Data Center	$	31,806	73.3%	$	69,040	78.6%
CATV		9,818	22.6%		14,184	16.2%
Telecom		1,630	3.8%		4,157	4.7%
FTTH		16	0.0%		166	0.2%
Other		141	0.3%		275	0.3%
Total Revenue	$	43,411	100.0%	$	87,822	100.0%

	Six months ended June 30,
	2019		% of Revenue	2018		% of Revenue
Data Center	$	70,305	73.1%	$	119,623	78.2%
CATV		21,780	22.7%		24,752	16.2%
Telecom		3,368	3.5%		7,743	5.1%
FTTH		110	0.1%		277	0.2%
Other		567	0.6%		666	0.4%
Total Revenue	$	96,130	100.0%	$	153,061	100.0%