Revenue (Tables)

6 Months Ended

Jun. 30, 2018

Revenues disaggregated by geography, major product line and timing of revenue recognition

The following tables present our revenues disaggregated by major products and services, geographical region and timing of revenue recognition.

Revenue by major products and services


	Three months ended June 30,				Six months ended June 30,
	2018		2017*		2018		2017*

Hardware products	$	24,576	$	25,256	$	42,067	$	47,000
Software licenses		10,410		9,216		26,413		19,032
Subscription		3,818		2,496		6,788		4,611
Professional services		1,157		1,070		2,121		2,031
Maintenance, support and other		9,593		7,656		17,597		14,984
Total Revenue	$	49,554	$	45,694	$	94,986	$	87,658

Revenue by location of customer for the three months ended June 30, 2018 and 2017


	EMEA			Americas			APAC			Total

Total Revenue:
2018	$	21,481		$	13,270		$	14,803		$	49,554
2017*	$	21,726		$	11,416		$	12,552		$	45,694

Percent of Total:
2018		43	%		27	%		30	%		100	%
2017*		48	%		25	%		27	%		100	%

Revenue by location of customer for the six months ended June 30, 2018 and 2017


	EMEA			Americas			APAC			Total

Total Revenue:
2018	$	39,867		$	29,191		$	25,928		$	94,986
2017*	$	40,096		$	23,540		$	24,022		$	87,658

Percent of Total:
2018		42	%		31	%		27	%		100	%
2017*		46	%		27	%		27	%		100	%

* Prior period amounts are presented under ASC 605 and ASC 985-605

Timing of revenue recognition


	Three months ended		Six months ended
	June 30, 2018		June 30, 2018

Products and Licenses transferred at a point in time	$	34,986	$	68,480
Services transferred over time		14,568		26,506
Total Revenue	$	49,554	$	94,986

Summary of impacts of adopting Topic 606 on the Company's consolidated financial statements

The following tables summarize the impacts of adopting Topic 606 on the Company’s consolidated financial statements as of June 30, 2018, and for the three and six months ended June 30, 2018.

Balance Sheet


	June 30, 2018
	As Reported		Adjustments		Balances without the adoption of Topic 606
ASSETS
Current assets
Accounts receivable, net of allowance	$	41,704	$	(266)	$	41,438
Contract asset		4,915		(4,915)		-
Other current assets		7,978		(59)		7,919
Total current assets		176,812		(5,240)		171,572
Deferred income taxes		4,922		507		5,429
Contract asset - non-current		7,534		(7,534)		—
Other assets		6,649		(150)		6,499
Total assets	$	347,092	$	(12,417)	$	334,675
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Deferred revenue	$	30,675	$	2,820	$	33,495
Short-term income taxes payable		1,599		(2,689)		(1,090)
Other accrued expenses		10,680		(116)		10,564
Total current liabilities		60,894		15		60,909
Deferred revenue - non-current		6,947		1,751		8,698
Deferred income taxes		9,131		(424)		8,707
Total liabilities		96,176		1,342		97,518
Stockholders' equity
Accumulated income		169,317		(13,759)		155,558
Total stockholders' equity		250,916		(13,759)		237,157
Total liabilities and stockholders' equity	$	347,092	$	(12,417)	$	334,675

Statement of Operations


	Three months ended June 30, 2018						Six months ended June 30, 2018
	As Reported		Adjustments		Balances without the adoption of Topic 606		As Reported		Adjustments		Balances without the adoption of Topic 606
Revenue
Product and license	$	34,986	$	2,372	$	37,358	$	68,480	$	(75)	$	68,405
Services and other		14,568		(1,693)		12,875		26,506		(2,391)		24,115
Total revenue		49,554		679		50,233		94,986		(2,466)		92,520

Cost of goods sold
Product and license		10,391		141		10,532		18,576		534		19,110
Services and other		3,182		—		3,182		5,732		—		5,732
Total Cost of goods sold		13,573		141		13,714		24,308		534		24,842

Gross profit		35,981		538		36,519		70,678		(3,000)		67,678

Operating Costs
Sales and marketing		16,622		225		16,847		30,899		607		31,506
Total operating costs		38,592		225		38,817		71,641		607		72,248

Operating income (loss)		(2,611)		313		(2,298)		(963)		(3,607)		(4,570)

Income before taxes		(872)		313		(559)		1,549		(3,607)		(2,058)

Provision for income tax		130		(748)		(618)		759		(1,767)		(1,008)

Net income (loss)	$	(1,002)	$	1,061	$	59	$	790	$	(1,840)	$	(1,050)

Basic EPS	$	(0.03)			$	0.00	$	0.02			$	(0.03)
Diluted EPS	$	(0.03)			$	0.00	$	0.02			$	(0.03)

Schedule of changes in contract assets and contract liabilities

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.


	January 1,			June 30,
	2018			2018
Receivables, inclusive of trade and unbilled	$	48,217	$		41,704
Contract Assets (current and non-current)	$	8,167	$		12,449
Contract Liabilities (Deferred Revenue current and non-current)	$	33,752	$		37,622

Schedule of estimated revenue expected to be recognized in the future

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period.


	2018		2019		2020		Beyond 2020		Total

Future revenue related to current unsatisfied performance obligations	$	5,330	$	7,100	$	4,466	$	6,101	$	22,997

The following tables provides information related to the capitalized costs and amortization recognized in the period:



in thousands				June 30, 2018
Capitalized costs to obtain contracts, current			$	303
Capitalized costs to obtain contracts, non-current			$	1,733


		Three months ended		Six months ended
in thousands		June 30, 2018		June 30, 2018
Amortization of capitalized costs to obtain contracts	$	60	$	125
Impairments of capitalized costs to obtain contracts	$	-	$	-