REVENUE

Revenue Disaggregation

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



	Three months ended June 30,				Nine months ended June 30,
($ in thousands)	2019		2018 (as adjusted)*		2019		2018 (as adjusted)*
North America, primarily the United States	$	43,604	$	44,740	$	138,808	$	113,246
Europe, Middle East & Africa	9,582		10,216		30,450		29,876
Rest of world	7,980		7,316		19,985		18,653
Total revenue	$	61,166	$	62,272	$	189,243	$	161,775

*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.

Net sales of services and solutions disaggregated by product group:



	Three months ended June 30,				Nine months ended June 30,
($ in thousands)	2019		2018 (as adjusted)*		2019		2018 (as adjusted)*
IoT Products & Services Segment
Product	$	47,136	$	51,691	$	150,045	$	137,733
Services	3,374		2,715		9,798		7,378
Total IoT Products & Services Segment	50,510		54,406		159,843		145,111
IoT Solutions Segment
Solutions	10,656		7,866		29,400		16,664
Total Revenue	$	61,166	$	62,272	$	189,243	$	161,775

*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

Contract Assets

Contract assets consist of subscriber assets. These subscriber assets relate to an implementation fee in certain contracts that we charge our customers so they can begin using the equipment. In this case, we retain the ownership of this equipment that the customer uses. The total net book value of subscriber assets of $2.3 million and $2.1 million as of June 30, 2019 and September 30, 2018, respectively, are included in property, equipment and improvements, net. Amortization expense for these subscriber assets was $0.3 million and $0.2 million for the three month periods ended June 30, 2019 and June 30, 2018, respectively and $0.7 million and $0.3 million for the nine month periods ended June 30, 2019 and June 30, 2018, respectively. We amortize the cost of this equipment over its useful life (typically three years).

Contract Liabilities

The timing of revenue recognition may differ from the timing of invoicing to customers. Customers are invoiced for subscription services in advance on a monthly, quarterly or annual basis. Contract liabilities consist 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.

10. REVENUE (CONTINUED)

Changes in unearned revenue were as follows:



	Nine months ended June 30,
($ in thousands)	2019
Unearned revenue, beginning of period*	$	3,933
Billings	18,908
Revenue recognized	(17,370		)
Unearned revenue, end of period	$	5,471

*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 June 30, 2019 approximately $7.2 million of revenue is expected to be recognized from remaining performance obligations for subscriptions contracts. We expect to recognize revenue on approximately $4.9 million of remaining 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.