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Revenue (Tables) | 9 Months Ended
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Sep. 30, 2018
Revenue |
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 (in thousands)
|  | Three months ended September 30, |  | Nine months ended September 30,
|  | 2018 |  | 2017* |  | 2018 |  | 2017*
Hardware products |  | $ | 27,056 |  | $ | 26,606 |  | $ | 69,123 |  | $ | 73,607
Software licenses |  |  | 9,826 |  |  | 11,815 |  |  | 36,239 |  |  | 30,847
Subscription |  |  | 4,161 |  |  | 3,023 |  |  | 10,949 |  |  | 7,634
Professional services |  |  | 1,594 |  |  | 1,354 |  |  | 3,715 |  |  | 3,384
Maintenance, support and other |  |  | 9,858 |  |  | 8,328 |  |  | 27,455 |  |  | 23,313
Total Revenue |  | $ | 52,495 |  | $ | 51,126 |  | $ | 147,481 |  | $ | 138,785
Revenue by location of customer for the three months ended September 30, 2018 and 2017 (in thousands)
|  | EMEA |  | Americas |  | APAC |  | Total |
Total Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |
2018 |  | $ | 25,281 |  | $ | 11,055 |  | $ | 16,159 |  | $ | 52,495 |
2017* |  | $ | 22,768 |  | $ | 14,419 |  | $ | 13,939 |  | $ | 51,126 |
Percent of Total: |  |  |  |  |  |  |  |  |  |  |  |  |
2018 |  |  | 48 | % |  | 21 | % |  | 31 | % |  | 100 | %
2017* |  |  | 45 | % |  | 28 | % |  | 27 | % |  | 100 | %
Revenue by location of customer for the nine months ended September 30, 2018 and 2017 (in thousands)
|  | EMEA |  | Americas |  | APAC |  | Total |
Total Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |
2018 |  | $ | 65,148 |  | $ | 40,246 |  | $ | 42,087 |  | $ | 147,481 |
2017* |  | $ | 62,868 |  | $ | 37,880 |  | $ | 38,037 |  | $ | 138,785 |
Percent of Total: |  |  |  |  |  |  |  |  |  |  |  |  |
2018 |  |  | 44 | % |  | 27 | % |  | 29 | % |  | 100 | %
2017* |  |  | 45 | % |  | 27 | % |  | 28 | % |  | 100 | %
* Prior period amounts are presented under ASC 605 and ASC 985-605 Timing of revenue recognition (in thousands)
| Three months ended |  | Nine months ended
| September 30, 2018 |  | September 30, 2018
Products and Licenses transferred at a point in time | $ | 36,882 |  | $ | 105,362
Services transferred over time |  | 15,613 |  |  | 42,119
Total Revenue | $ | 52,495 |  | $ | 147,481
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 September 30, 2018, and for the three and nine months ended September 30, 2018. Balance Sheet (in thousands)
|  | September 30, 2018
|  | As Reported |  | Adjustments |  | Balances without the adoption of Topic 606
ASSETS |  |  |  |  |  |  |  |  |
Current assets |  |  |  |  |  |  |  |  |
Accounts receivable, net of allowance |  | $ | 42,534 |  | $ | (340) |  | $ | 42,194
Contract asset |  |  | 6,653 |  |  | (6,653) |  |  | —
Other current assets |  |  | 7,309 |  |  | (369) |  |  | 6,940
Total current assets |  |  | 168,939 |  |  | (7,362) |  |  | 161,577
Deferred income taxes |  |  | 4,911 |  |  | 507 |  |  | 5,418
Contract asset - non-current |  |  | 4,407 |  |  | (4,407) |  |  | —
Other assets |  |  | 7,476 |  |  | (289) |  |  | 7,187
Total assets |  | $ | 333,421 |  | $ | (11,551) |  | $ | 321,870
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |  |
Current liabilities |  |  |  |  |  |  |  |  |
Deferred revenue |  | $ | 28,344 |  | $ | 3,402 |  | $ | 31,746
Short-term income taxes payable |  |  | 1,600 |  |  | (1,200) |  |  | 400
Other accrued expenses |  |  | 10,683 |  |  | (352) |  |  | 10,331
Total current liabilities |  |  | 56,914 |  |  | 1,851 |  |  | 58,765
Deferred revenue - non-current |  |  | 5,254 |  |  | 2,958 |  |  | 8,212
Deferred income taxes |  |  | 6,111 |  |  | (424) |  |  | 5,687
Total liabilities |  |  | 83,545 |  |  | 4,385 |  |  | 87,930
Stockholders' equity |  |  |  |  |  |  |  |  |
Accumulated income |  |  | 168,409 |  |  | (15,936) |  |  | 152,473
Total stockholders' equity |  |  | 249,876 |  |  | (15,936) |  |  | 233,940
Total liabilities and stockholders' equity |  | $ | 333,421 |  | $ | (11,551) |  | $ | 321,870
Statement of Operations (in thousands)
|  | Three months ended September 30, 2018 |  | Nine months ended September 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 |  | $ | 36,882 |  | $ | 1,425 |  | $ | 38,307 |  | $ | 105,362 |  | $ | 1,350 |  | $ | 106,712
Services and other |  |  | 15,613 |  |  | (1,959) |  |  | 13,654 |  |  | 42,119 |  |  | (4,350) |  |  | 37,769
Total revenue |  |  | 52,495 |  |  | (534) |  |  | 51,961 |  |  | 147,481 |  |  | (3,000) |  |  | 144,481
Cost of goods sold |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product and license |  |  | 14,321 |  |  | (83) |  |  | 14,238 |  |  | 32,897 |  |  | 451 |  |  | 33,348
Services and other |  |  | 3,631 |  |  | — |  |  | 3,631 |  |  | 9,363 |  |  | — |  |  | 9,363
Total Cost of goods sold |  |  | 17,952 |  |  | (83) |  |  | 17,869 |  |  | 42,260 |  |  | 451 |  |  | 42,711
Gross profit |  |  | 34,543 |  |  | (451) |  |  | 34,092 |  |  | 105,221 |  |  | (3,451) |  |  | 101,770
Operating Costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  | 16,039 |  |  | 235 |  |  | 16,274 |  |  | 46,938 |  |  | 842 |  |  | 47,780
Total operating costs |  |  | 37,657 |  |  | 235 |  |  | 37,892 |  |  | 109,298 |  |  | 842 |  |  | 110,140
Operating loss |  |  | (3,114) |  |  | (686) |  |  | (3,800) |  |  | (4,077) |  |  | (4,293) |  |  | (8,370)
Loss before taxes |  |  | (2,610) |  |  | (686) |  |  | (3,296) |  |  | (1,061) |  |  | (4,293) |  |  | (5,354)
Provision (benefit) for income taxes |  |  | (1,702) |  |  | 1,490 |  |  | (212) |  |  | (943) |  |  | (277) |  |  | (1,220)
Net loss |  | $ | (908) |  | $ | (2,176) |  | $ | (3,084) |  | $ | (118) |  | $ | (4,016) |  | $ | (4,134)
Basic EPS |  | $ | (0.02) |  |  |  |  | $ | (0.08) |  | $ | (0.00) |  |  |  |  | $ | (0.10)
Diluted EPS |  | $ | (0.02) |  |  |  |  | $ | (0.08) |  | $ | (0.00) |  |  |  |  | $ | (0.10)
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, |  | September 30,
|  |  |  |  |  | 2018 |  | 2018
Receivables, inclusive of trade and unbilled |  |  |  |  |  | $ | 48,217 |  | $ | 42,534
Contract Assets (current and non-current) |  |  |  |  |  | $ | 8,167 |  | $ | 11,060
Contract Liabilities (Deferred Revenue current and non-current) |  |  |  |  |  | $ | 33,752 |  | $ | 33,598
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.
in thousands |  | 2018 |  | 2019 |  | 2020 |  | Beyond 2020 |  | Total
Future revenue related to current unsatisfied performance obligations |  | $ | 1,825 |  | $ | 6,898 |  | $ | 4,509 |  | $ | 9,273 |  | $ | 22,505
Schedule related to the capitalized costs and amortization | The following tables provide information related to the capitalized costs and amortization recognized in the period:
in thousands |  |  |  |  |  |  |  |  |  | September 30, 2018
Capitalized costs to obtain contracts, current |  |  |  |  |  |  |  |  | $ | 354
Capitalized costs to obtain contracts, non-current |  |  |  |  |  |  |  |  | $ | 1,884
|  |  |  |  |  |  | Three months ended |  |  | Nine months ended
in thousands |  |  |  |  |  |  | September 30, 2018 |  |  | September 30, 2018
Amortization of capitalized costs to obtain contracts |  |  |  |  |  | $ | 85 |  | $ | 205
Impairments of capitalized costs to obtain contracts |  |  |  |  |  | $ | - |  | $ | -

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