REVENUE

Revenue Disaggregation

The following summarizes our revenue by geographic location of our customers:



	Three months ended December 31,
($ in thousands)	2018		2017 (as adjusted)*
North America, primarily United States	$	46,335	$	29,337
Europe, Middle East & Africa	10,104		10,156
Asia	5,080		4,528
Latin America	794		934
Total revenue	$	62,313	$	44,955

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which we adopted on October 1, 2018.

11. REVENUE (CONTINUED)

Net sales of services and solutions disaggregated by product group:



	Three months ended December 31,
($ in thousands)	2018		2017 (as adjusted)*
IoT Products & Services Segment
Hardware product	$	50,812	$	38,454
Services	2,482		2,426
Total IoT Products & Services Segment	53,294		40,880
IoT Solutions Segment
Solutions	9,019		4,075
Total Revenue	$	62,313	$	44,955

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which we adopted on October 1, 2018.

Contract Balances

In certain contracts with our customers we charge an implementation fee to the customer so they can begin using the equipment and retain ownership of the equipment the customer uses. We amortize this cost of the equipment over its useful life (typically three years).

We also incur costs for commissions paid to sales personnel or agents on service contracts. If the commissions earned during an accounting period exceed our capitalization threshold, they will be amortized over the calculated average expected life of the pool of contracts closed during that period. We have elected the practical expedient to not capitalize these commissions for contracts with terms of one year or less.

Contract assets were $2.1 million and $2.1 million as of December 31, 2018 and September 30, 2018, respectively. Amortization expense for these contract assets was $0.2 million for the three months ended December 31, 2018 and minimal for the three months ended December 31, 2017. Contract assets are typically amortized over a three year period.

Unearned Revenue

Unearned revenue is comprised mainly of unearned revenue related to annual or multi-year contracts for subscription services and related implementation fees for our IoT Solutions segment and our Digi Remote Manager^® services in our IoT Products & Services segment.

Changes in unearned revenue were as follows:



	Three months ended December 31,
($ in thousands)	2018
Unearned revenue, beginning of period*	$	3,933
Billings	9,702
Revenue recognized	(5,326		)
Unearned revenue, end of period	$	8,309

*Prior period information has been restated for the adoption of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which we adopted on October 1, 2018.

Remaining Transaction Price

Transaction price allocated to the remaining performance obligations represents contracted revenue that has not been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. As of December 31, 2018 approximately $7.6 million of revenue is expected to be recognized from remaining performance obligations for subscriptions contracts. We expect to recognize revenue on approximately $3.2 million of remaining

11. REVENUE (CONTINUED)

performance obligations over the next twelve months. Revenue from the remaining performance obligations we expect to recognize revenue over a range of two to five years.