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Revenue

3 Months Ended

Mar. 31, 2021

Note 3 – Revenue

We recognize revenue in accordance with ASC 606 “Revenue from Contracts with Customers” (“Topic 606”), as described below.

Disaggregation of Revenues

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

Revenue by major products (in thousands)


	Three months ended March 31,
	2021			2020
Hardware products	$	17,668		$	19,738
Software licenses		10,777			18,522
Subscription		8,405			5,707
Professional services		1,402			1,421
Maintenance, support and other		12,523			10,982
Total Revenue	$	50,775		$	56,370

Revenue by location of customer for the three months ended March 31, 2021 and 2020 (in thousands)


		EMEA			Americas			APAC			Total
Total Revenue:
2021		$	26,989		$	16,528		$	7,258		$	50,775
2020		$	33,604		$	12,333		$	10,433		$	56,370

Percent of Total:
2021			53	%		33	%		14	%		100	%
2020			59	%		22	%		19	%		100	%

Timing of revenue recognition (in thousands)


	Three months ended March 31,
	2021			2020
Products and Licenses transferred at a point in time	$	28,445		$	38,260
Services transferred over time		22,330			18,110
Total Revenue	$	50,775		$	56,370

Contract balances

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


			March 31,			December 31,
		2021			2020
Receivables, inclusive of trade and unbilled		$	47,892		$	57,537
Contract Assets (current and non-current)		$	6,453		$	9,079
Contract Liabilities (Deferred Revenue current and non-current)		$	54,813		$	55,147

Contract assets relate primarily to multi-year term license arrangements and the remaining contractual billings. These contract assets are transferred to receivables when the right to billing occurs, which is normally over 3-5 years. The contract liabilities primarily relate to the advance consideration received from customers for subscription and maintenance services. Revenue is recognized for these services over time.

As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less. We do not typically include extended payment terms in our contracts with customers.

Revenue recognized during the three months ended March 31, 2021 included $15.0 million that was included on the December 31, 2020 balance sheet in contract liabilities. Deferred revenue increased in the same period due to timing of annual renewals.

Transaction price allocated to the remaining performance obligations

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		2021			2022			2023			Beyond 2023			Total
Future revenue related to current unsatisfied performance obligations		$	17,467		$	15,600		$	10,020		$	6,652		$	49,739

The Company applies practical expedients and does not disclose information about remaining performance obligations (a) that have original expected durations of one year or less, or (b) where revenue is recognized as invoiced.

Costs of obtaining a contract

The Company incurs incremental costs related to commissions, which can be directly tied to obtaining a contract. The Company capitalizes commissions associated with certain new contracts and amortizes the costs over a period of benefit based on the transfer of goods or services that we have determined to be up to seven years. The Amortization is reflected in Sales and Marketing in the Statements of Operations. We determined the period of benefit by taking into consideration our customer contracts, our technology and other factors, including customer attrition. Commissions are earned upon invoicing to the customer. For contracts with multiple year payment terms, as the commissions that are payable after year 1 are payable based on continued employment, they are expensed when incurred. Commissions and amortization expense are included in Sales and Marketing expenses on the condensed consolidated statements of operations.

Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period for the assets that the Company otherwise would have recognized is one year or less. These costs are included in Sales and Marketing expense in the condensed consolidated statements of operations.

The following tables provide information related to the capitalized costs and amortization recognized in the current and prior periods:



in thousands				March 31, 2021			December 31, 2020
Capitalized costs to obtain contracts, current			$	1,380		$	1,222
Capitalized costs to obtain contracts, non-current			$	5,635		$	5,464


				Three months ended March 31,
in thousands				2021			2020
Amortization of capitalized costs to obtain contracts			$	310		$	169
Impairments of capitalized costs to obtain contracts			$	-		$	-