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Revenue
6 Months Ended
Jun. 30, 2020
Revenue From Contract With Customer [Abstract]  
Revenue

3. REVENUE

The following is a description of the principal activities from which revenue is generated by reportable segment:

Network Solutions Segment - Includes hardware products and software-defined next-generation virtualized solutions used in service provider or business networks, as well as prior generation products.

Services & Support Segment - Includes maintenance, network implementation, solutions integration and managed services, which include hosted cloud services and subscription services.    

Sales by Category

 

In addition to our reportable segments, revenue is also reported for the following three categories – Access & Aggregation, Subscriber Solutions & Experience and Traditional & Other Products.  

 

The following tables disaggregate revenue by reportable segment and revenue category for the three and six months ended June 30, 2020 and 2019:

 

 

 

Three Months Ended

 

 

 

June 30, 2020

 

 

June 30, 2019

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

69,721

 

 

$

13,055

 

 

$

82,776

 

 

$

96,262

 

 

$

13,159

 

 

$

109,421

 

Subscriber Solutions & Experience

 

 

38,081

 

 

 

2,312

 

 

 

40,393

 

 

 

38,444

 

 

 

2,058

 

 

 

40,502

 

Traditional & Other Products

 

 

3,521

 

 

 

2,025

 

 

 

5,546

 

 

 

4,461

 

 

 

2,007

 

 

 

6,468

 

Total

 

$

111,323

 

 

$

17,392

 

 

$

128,715

 

 

$

139,167

 

 

$

17,224

 

 

$

156,391

 

 

 

 

Six Months Ended

 

 

 

June 30, 2020

 

 

June 30, 2019

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Access & Aggregation

 

$

122,776

 

 

$

25,966

 

 

$

148,742

 

 

$

181,935

 

 

$

27,264

 

 

$

209,199

 

Subscriber Solutions & Experience

 

 

78,064

 

 

 

4,508

 

 

 

82,572

 

 

 

73,163

 

 

 

4,092

 

 

 

77,255

 

Traditional & Other Products

 

 

7,855

 

 

 

4,069

 

 

 

11,924

 

 

 

9,891

 

 

 

3,837

 

 

 

13,728

 

Total

 

$

208,695

 

 

$

34,543

 

 

$

243,238

 

 

$

264,989

 

 

$

35,193

 

 

$

300,182

 

 

Revenue allocated to remaining performance obligations represents contract revenues that have not yet been recognized for contracts with a duration of greater than one year. As of June 30, 2020, 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. As a practical expedient, for certain contracts we recognize revenue equal to the amounts that we are entitled to invoice, which correspond to the value of completed performance obligations to date. The amount related to these performance obligations was $16.0 million and $13.6 million as of June 30, 2020 and December 31, 2019, respectively. The Company expects to recognize 62% of the $16.0 million as of June 30, 2020 over the next 12 months, with the remainder to be recognized thereafter.

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

 

(In thousands)

 

June 30, 2020

 

 

December 31, 2019

 

Accounts receivable, net

 

$

95,335

 

 

$

90,531

 

Contract assets(1)

 

$

1,028

 

 

$

2,812

 

Unearned revenue

 

$

12,090

 

 

$

11,963

 

Non-current unearned revenue

 

$

6,166

 

 

$

6,012

 

 

 

(1)

Included in other receivables on the Condensed Consolidated Balance Sheets.

 

Of the outstanding unearned revenue balances as of December 31, 2019 and December 31, 2018, $2.4 million and $3.6 million were recognized as revenue during the three months ended June 30, 2020 and 2019, respectively, and $8.1 million and $10.5 million were recognized as revenue during the six months ended June 30, 2020 and 2019, respectively.