Revenue (Tables)

9 Months Ended

Sep. 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 (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

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	$	-	$	-