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Revenue
9 Months Ended
Sep. 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 12 for additional information.

Services & Support Segment

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

Sales by Category

 

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 September 30, 2019 and 2018:

 

 

 

Three Months Ended

 

 

 

September 30, 2019

 

 

September 30, 2018

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

48,902

 

 

$

16,212

 

 

$

65,114

 

 

$

76,046

 

 

$

15,855

 

 

$

91,901

 

Subscriber Solutions & Experience(1)

 

 

40,382

 

 

 

2,094

 

 

 

42,476

 

 

 

37,313

 

 

 

1,239

 

 

 

38,552

 

Traditional & Other Products

 

 

4,734

 

 

 

1,768

 

 

 

6,502

 

 

 

7,684

 

 

 

2,198

 

 

 

9,882

 

Total

 

$

94,018

 

 

$

20,074

 

 

$

114,092

 

 

$

121,043

 

 

$

19,292

 

 

$

140,335

 

 

 

(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 nine months ended September 30, 2019 and 2018:

 

 

 

Nine Months Ended

 

 

 

September 30, 2019

 

 

September 30, 2018

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

230,837

 

 

$

43,476

 

 

$

274,313

 

 

$

220,653

 

 

$

37,670

 

 

$

258,323

 

Subscriber Solutions & Experience(1)

 

 

113,545

 

 

 

6,186

 

 

 

119,731

 

 

 

99,396

 

 

 

3,817

 

 

 

103,213

 

Traditional & Other Products

 

 

14,625

 

 

 

5,605

 

 

 

20,230

 

 

 

21,310

 

 

 

6,343

 

 

 

27,653

 

Total

 

$

359,007

 

 

$

55,267

 

 

$

414,274

 

 

$

341,359

 

 

$

47,830

 

 

$

389,189

 

 

 

(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 September 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)

 

September 30, 2019

 

 

December 31, 2018

 

Accounts receivable, net

 

$

90,647

 

 

$

99,385

 

Contract assets(1)

 

$

2,434

 

 

$

3,766

 

Unearned revenue

 

$

14,022

 

 

$

17,940

 

Non-current unearned revenue

 

$

4,581

 

 

$

5,296

 

 

 

(1)

Included in other receivables on the Condensed Consolidated Balance Sheet.

 

Of the outstanding unearned revenue balance at December 31, 2018, $1.2 million and $11.7 million was recognized as revenue during the three and nine months ended September 30, 2019, respectively.