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Revenue
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue

Note 2 - Revenue

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

Network Solutions Segment - Includes hardware and software products that enable a digital future which support the Company's Subscriber, Access and Aggregation, and Optical Networking Solutions.

Services & Support Segment - Includes network design, implementation, maintenance and cloud-hosted services supporting the Company's Subscriber, Access and Aggregation, and Optical Networking Solutions.

Revenue by Category

In addition to operating under two reportable segments, the Company also reports revenue across three categories – Subscriber Solutions, Access & Aggregation Solutions and Optical Networking Solutions.

Our Subscriber Solutions portfolio is used by Service Providers to terminate their access services infrastructure at the customer premises while providing an immersive and interactive experience for residential, business and wholesale subscribers. This revenue category includes hardware- and software-based products and services. These solutions include fiber termination solutions for residential, business and wholesale subscribers, Wi-Fi access solutions for residential and business subscribers, Ethernet switching and network edge virtualization solutions for business subscribers, and cloud software solutions covering a mix of subscriber types.

Our Access & Aggregation Solutions are solutions that are used by communications Service Providers to connect residential subscribers, business subscribers and mobile radio networks to the Service Providers’ metro network, primarily through fiber-based connectivity. This revenue category includes hardware- and software-based products and services. Our solutions within this category are a mix of fiber access and aggregation platforms, precision network synchronization and timing solutions, and access orchestration solutions that ensure highly reliable and efficient network performance.

Our Optical Networking Solutions are used by communications Service Providers, internet content providers and large-scale enterprises to securely interconnect metro and regional networks over fiber. This revenue category includes hardware- and software-based products and services. Our solutions within this category include open optical terminals, open line systems, optical subsystems and modules, network infrastructure assurance systems, and automation platforms that are used to build high-scale, secure and assured optical networks.

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2024:

 

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

295,541

 

 

$

35,237

 

 

$

330,778

 

Access & Aggregation Solutions

 

 

232,934

 

 

 

58,072

 

 

 

291,006

 

Optical Networking Solutions

 

 

210,489

 

 

 

90,447

 

 

 

300,936

 

Total

 

$

738,964

 

 

$

183,756

 

 

$

922,720

 

 

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2023:

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

263,192

 

 

$

34,516

 

 

$

297,708

 

Access & Aggregation Solutions

 

 

304,074

 

 

 

54,344

 

 

 

358,418

 

Optical Networking Solutions

 

 

407,123

 

 

 

85,851

 

 

 

492,974

 

Total

 

$

974,389

 

 

$

174,711

 

 

$

1,149,100

 

 

The following table disaggregates revenue by reportable segment and revenue category for the year ended December 31, 2022:

(In thousands)

 

Network Solutions

 

 

Services & Support

 

 

Total

 

Subscriber Solutions

 

$

364,238

 

 

$

26,216

 

 

$

390,454

 

Access & Aggregation Solutions

 

 

326,934

 

 

 

47,068

 

 

 

374,002

 

Optical Networking Solutions

 

 

225,621

 

 

 

35,459

 

 

 

261,080

 

Total

 

$

916,793

 

 

$

108,743

 

 

$

1,025,536

 

 

The aggregate amount of transaction price allocated to remaining performance obligations that have not been satisfied as of December 31, 2024 and December 31, 2023 related to contractual maintenance agreements, contractual SaaS and subscription services, and hardware contracts that exceed one year in duration amounted to $325.7 million and 314.8 million, respectively. As of December 31, 2024, approximately 73.0% is expected to be recognized over the next 12 months, and the remainder recognized thereafter. The majority of the Company's remaining performance obligations as of December 31, 2024, are related to contracts or orders that have an original expected duration of one year or less and are excluded from the transaction price related to these future obligations. The Company will generally satisfy the remaining performance obligations as we transfer control of the products ordered or services to our customers, excluding maintenance services, which are satisfied over time.

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

 

(In thousands)

 

December 31, 2024

 

 

December 31, 2023

 

Accounts receivable

 

$

178,030

 

 

$

216,445

 

Contract assets(1)

 

$

631

 

 

$

691

 

Unearned revenue

 

$

52,701

 

 

$

46,731

 

Non-current unearned revenue

 

$

22,065

 

 

$

25,109

 

(1) Included in other receivables on the Consolidated Balance Sheets.

Accounts Receivable

The allowance for credit losses were $1.3 million and, $0.4 million as of December 31, 2024, and December 31, 2023, respectively, related to accounts receivable.

Receivables Purchase Agreement

On July 1, 2024, the Company entered into a receivables purchase agreement (the “Factoring Agreement”) with a third-party financial institution (the “Factor”), which accelerates receivable collection and helps to better manage cash flow. Total accounts receivables factored as of the end of December 31 2024, totaled $18.3 million of which $3.7 million was retained pursuant to the Factoring Agreement in the reserve account. The Factoring Agreement provides for up to $40.0 million in factoring capacity, subject to eligible receivables and reserve requirements, secured by the receivables. The balance in the reserve account is included in other assets on the Consolidated Balance Sheets. The cost of the Factoring Agreement is included in interest expense in the Consolidated Statements of Loss and totaled $0.6 million for the year ended December 31, 2024. Costs of a previous receivables purchase agreement which are included in interest expense in the Consolidated Statements of Loss totaled $0.9 million for the year ended December 31, 2023.

Previous Receivable Purchase Agreement

On December 19, 2023, the Company entered into a receivables purchase agreement (the “Prior Factoring Agreement”) with a third-party financial institution (the "Prior Factoring Agreement") to replace a prior accounts receivable purchase agreement and to sell, on a revolving basis, undivided interests in the Company’s accounts receivable. The prior factoring agreement provided for up to $40.0 million in borrowing capacity, subject to eligible receivables and reserve requirements, secured by the receivables. The prior factoring agreement qualified for treatment as a secured borrowing with a pledge of collateral under Accounting Standards Codification ("ASC") Topic 810, Consolidations. The receivables purchase agreement was terminated on July 1, 2024 and there were no secured borrowings under this agreement as of December 31, 2024. Total secured borrowings under the agreement were $14.3 million as of December 31, 2023, which left $25.4 million available for future borrowings as of December 31, 2023. Accounts receivable pledged as collateral related to the secured borrowings were $16.8 million as of December 31, 2023. For the year ended December 31, 2024, the Company incurred program fee expenses of $0.6 million.

Contract Assets

No allowance for credit losses was recorded for the years ended December 31, 2024 and 2023, respectively, related to contract assets.

Unearned Revenue

Of the outstanding unearned revenue balances as of December 31, 2023, $50.5 million were recognized as revenue during the year ended December 31, 2024. Of the outstanding unearned revenue balances as of December 31, 2022, $36.2 million were recognized as revenue during the year ended December 31, 2023.