XML 26 R15.htm IDEA: XBRL DOCUMENT v3.21.2
Revenue from Contracts with Customers
 6 Months Ended
Jul. 03, 2021
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
The Company derives revenue from contracts with customers primarily from the following and categorizes its revenue as follows:
•Systems include revenue from the sale of access and premises systems, software platform licenses and cloud-based software subscriptions; and
•Services include revenue from professional services, customer support, software- and cloud-based maintenance, extended warranty subscriptions, training and managed services.
The following is a summary of revenue disaggregated by geographic region based upon the location of the customers (in thousands):
Three Months EndedSix Months Ended
July 3, 2021June 27, 2020July 3, 2021June 27, 2020
United States$133,618 $108,198 $268,324 $196,248 
Canada7,444 2,868 13,950 6,431 
Europe9,844 2,110 13,259 6,231 
Middle East5,172 2,330 12,260 4,631 
Caribbean6,954 2,310 11,717 4,682 
Other5,638 1,207 11,234 2,482 
$168,670 $119,023 $330,744 $220,705 
Contract Asset
The primary contract asset is revenue recognized on professional services contracts where the services are transferred to the customer over time, which has yet to be billed, and is classified within accounts receivable. Amounts are billed in accordance with the agreed-upon contractual terms. The balance as of December 31, 2020 was $2.3 million of which $0.7 million remained in the Company's Condensed Consolidated Balance Sheet as of July 3, 2021. The closing balance as of July 3, 2021 was $1.4 million of which the Company expects to bill 66% of the balance during the remainder of 2020. The decrease in the contract asset was driven by billings for past services and a reduction in expected cash collections on ongoing projects partially offset by additional unbilled work performed during the three months ended July 3, 2021.
Contract Liability
Deferred revenue consisted of the following (in thousands):
July 3,
2021		December 31,
2020
Current:
Products and services$19,399 $14,651 
Extended warranty4,552 4,538 
23,951 19,189 
Long-term:
Products and services2,729 1,879 
Extended warranty18,578 18,025 
21,307 19,904 
$45,258 $39,093 
The increase in the deferred revenue balance for the three and six months ended July 3, 2021 is primarily driven by cash payments received or due in advance of satisfying the Company’s performance obligations offset by $6.8 million  and $11.1 million of revenue recognized that was included in the deferred revenue balance at the beginning of each period, respectively.
Revenue allocated to remaining performance obligations represent contract revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This amount was $92.0 million as of July 3, 2021, and the Company expects to recognize 36% of such revenue over the next 12 months and the remainder thereafter.
Contract Costs
The Company capitalizes certain sales commissions related primarily to multi-year subscriptions and extended warranty support for which the expected amortization period is greater than one year. As of July 3, 2021, the unamortized balance of deferred commissions was $2.3 million. For the three and six months ended July 3, 2021, the amount of amortization was $0.2 million and $0.3 million, respectively. There was no impairment loss in relation to the costs capitalized.
Concentration of Customer Risk
No company accounted for more than 10% of the Company's total revenue for the three and six months ended July 3, 2021. Lumen Technologies, Inc. (formerly CenturyLink, Inc.) represented 15% of total revenue for three and six months ended June 27, 2020. No other customers accounted for more than 10% of the Company’s total revenue for three and six months ended June 27, 2020.
No customer represented more than 10% of the Company’s accounts receivable as of July 3, 2021 or December 31, 2020.