Note 2 - Revenue Recognition

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

2.

Revenue Recognition

 

Disaggregation of revenue

The following table provides information about disaggregated revenue by primary geographical area and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands):

	Three Months Ended March 31, 2021						Three Months Ended March 31, 2020
			Edge to						Edge to
	Partner Solutions		Cloud		Total		Partner Solutions		Cloud		Total
Primary geographic area:
North America	$	7,523	$	1,065	$	8,588	$	13,171	$	605	$	13,776
Europe		110		112		222		426		213		639
Asia		1,162		—		1,162		2,308		6		2,314
Total	$	8,795	$	1,177	$	9,972	$	15,905	$	824	$	16,729

Contract balances

We receive payments from customers based upon contractual billing schedules; accounts receivable is recorded when the right to consideration becomes unconditional. Contract assets include amounts related to our contractual right to consideration for completed performance obligations

not

yet invoiced and deferred contract acquisition costs, which are amortized over time as the associated revenue is recognized. Contract liabilities, presented as deferred revenue on our condensed consolidated balance sheets, include payments received in advance of performance under the contract and are realized when the associated revenue is recognized. We had

no

asset impairment charges related to contract assets for each of the

three

months ended

March 31, 2021

and

2020

. 

Significant changes in the contract assets and the deferred revenue balances during the 

three

months ended

March 31, 2021

were as follows (in thousands):

	Three Months Ended March 31, 2021
	Contract		Deferred
	Assets		Revenue
Revenue recognized that was included in deferred revenue at December 31, 2020	$	—	$	755,595
Transferred to receivables from contract assets outstanding at December 31, 2020		—		—

Contract acquisition costs

We capitalize contract acquisition costs for contracts with a life exceeding

one

year. Amortization of contract acquisition costs was

$22,000

and

$35,000

for the

three

months ended

March 31, 2021

and

2020

, respectively. There were

no

asset impairment charges for contract acquisition costs for any of the periods noted above. 

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). The estimated revenue does

not

include contracts with original durations of

one

year or less, amounts of variable consideration attributable to royalties, or contract renewals that were unexercised as of

March 31, 2021

:

	Remainder of
	2021			2022			After 2022
Partner Solutions	$	(56,873	)	$	(6,150	)	$	(14,750	)
Edge to Cloud		(1,125,868	)		(163,688	)		(157,083	)

Practical expedients and exemptions

We generally expense sales commissions when incurred because the amortization period would have been less than

one

year. We record these costs within selling, general and administrative expenses.

When applicable and appropriate, the Company utilizes the ‘as-invoiced' practical expedient which permits revenue recognition upon invoicing.