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Revenue
6 Months Ended
Jun. 30, 2019
Revenue From Contract With Customer [Abstract]  
Revenue

3. REVENUE

The following is a description of the principal activities from which we generate our revenue by reportable segment.

Network Solutions Segment

Network Solutions includes hardware products and software-defined next-generation virtualized solutions used in service provider or business networks, as well as prior generation products. The majority of the revenue from this segment is from hardware sales. In certain transactions, we are also the lessor in sales-type lease arrangements for network equipment. These arrangements typically include network equipment, network implementation services and maintenance services. Network implementation services and maintenance services are included in the Services & Support segment discussed below. See Note 11 for additional information.

Services & Support Segment

To complement our Network Solutions segment, we offer a complete portfolio of maintenance, network implementation and solutions integration and managed services, which include hosted cloud services and subscription services.    

 

In addition to our reporting segments, we also report revenue in the following three categories – Access & Aggregation, Subscriber Solutions & Experience, and Traditional & Other Products.  

 

The following table disaggregates our revenue by reportable segment and revenue category for the three months ended June 30, 2019 and 2018:

 

 

 

For the Three Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2018

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

96,262

 

 

$

13,159

 

 

$

109,421

 

 

$

75,222

 

 

$

9,520

 

 

$

84,742

 

Subscriber Solutions & Experience(1)

 

 

38,444

 

 

 

2,058

 

 

 

40,502

 

 

 

33,306

 

 

 

1,254

 

 

 

34,560

 

Traditional & Other Products

 

 

4,461

 

 

 

2,007

 

 

 

6,468

 

 

 

6,535

 

 

 

2,211

 

 

 

8,746

 

Total

 

$

139,167

 

 

$

17,224

 

 

$

156,391

 

 

$

115,063

 

 

$

12,985

 

 

$

128,048

 

 

 

(1)

Subscriber Solutions & Experience was formerly reported as Customer Devices. With the increasing focus on enhancing the customer experience for both our business and consumer broadband customers and the addition of SmartRG during the fourth quarter of 2018, Subscriber Solutions & Experience more accurately represents this revenue category.

The following table disaggregates our revenue by reportable segment and revenue category for the six months ended June 30, 2019 and 2018:

 

 

 

For the Six Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2018

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

181,935

 

 

$

27,264

 

 

$

209,199

 

 

$

144,607

 

 

$

21,815

 

 

$

166,422

 

Subscriber Solutions & Experience(1)

 

 

73,163

 

 

 

4,092

 

 

 

77,255

 

 

 

62,083

 

 

 

2,578

 

 

 

64,661

 

Traditional & Other Products

 

 

9,891

 

 

 

3,837

 

 

 

13,728

 

 

 

13,626

 

 

 

4,145

 

 

 

17,771

 

Total

 

$

264,989

 

 

$

35,193

 

 

$

300,182

 

 

$

220,316

 

 

$

28,538

 

 

$

248,854

 

 

 

(1)

Subscriber Solutions & Experience was formerly reported as Customer Devices. With the increasing focus on enhancing the customer experience for both our business and consumer broadband customers and the addition of SmartRG during the fourth quarter of 2018, Subscriber Solutions & Experience more accurately represents this revenue category.

 

Revenue is measured based on the consideration we expect to receive in exchange for transferring goods or providing services to a customer and as performance obligations under the terms of the contract are satisfied. For transactions where there are multiple performance obligations, we account for individual products and services separately if they are distinct (if a product or service is separately identifiable from other items and if a customer can benefit from it on its own or with other resources that are readily available to the customer). As of June 30, 2019, we did not have any significant performance obligations related to customer contracts that had an original expected duration of one year or more, other than maintenance services, which are satisfied over time.

The following table provides information about receivables, contract assets and unearned revenue from contracts with customers:

 

(In thousands)

 

June 30, 2019

 

 

December 31, 2018

 

Accounts receivable, net

 

$

116,661

 

 

$

99,385

 

Contract assets(1)

 

$

2,251

 

 

$

3,766

 

Unearned revenue

 

$

12,910

 

 

$

17,940

 

Non-current unearned revenue

 

$

4,265

 

 

$

5,296

 

 

 

(1)

Included in other receivables on the Condensed Consolidated Balance Sheet.

 

Of the outstanding unearned revenue balance at December 31, 2018, $3.6 million and $10.5 million was recognized as revenue during the three and six months ended June 30, 2019, respectively.