XML 72 R8.htm IDEA: XBRL DOCUMENT v3.19.3
Revenue Recognition
9 Months Ended
Sep. 30, 2019
Revenue From Contract With Customer [Abstract]  
Revenue Recognition

2. Revenue Recognition 

Disaggregation of revenue

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

 

 

 

Three Months Ended September 30, 2019

 

 

Three Months Ended September 30, 2018

 

 

 

Partner Solutions

 

 

Edge to

Cloud

 

 

Total

 

 

Partner Solutions

 

 

Edge to

Cloud

 

 

Total

 

Primary geographical markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

10,851

 

 

$

1,863

 

 

$

12,714

 

 

$

13,715

 

 

$

1,726

 

 

$

15,441

 

Europe

 

 

164

 

 

 

177

 

 

 

341

 

 

 

526

 

 

 

148

 

 

 

674

 

Asia

 

 

1,541

 

 

 

45

 

 

 

1,586

 

 

 

 

 

 

579

 

 

 

579

 

Total

 

$

12,556

 

 

$

2,085

 

 

$

14,641

 

 

$

14,241

 

 

$

2,453

 

 

$

16,694

 

 

 

 

 

Nine Months Ended September 30, 2019

 

 

Nine Months Ended September 30, 2018

 

 

 

Partner Solutions

 

 

Edge to

Cloud

 

 

Total

 

 

Partner Solutions

 

 

Edge to

Cloud

 

 

Total

 

Primary geographical markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

33,363

 

 

$

5,918

 

 

$

39,281

 

 

$

45,115

 

 

$

7,794

 

 

$

52,909

 

Europe

 

 

1,004

 

 

 

496

 

 

 

1,500

 

 

 

1,821

 

 

 

681

 

 

 

2,502

 

Asia

 

 

2,974

 

 

 

162

 

 

 

3,136

 

 

 

361

 

 

 

803

 

 

 

1,164

 

Total

 

$

37,341

 

 

$

6,576

 

 

$

43,917

 

 

$

47,297

 

 

$

9,278

 

 

$

56,575

 

 

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 and nine months ended September 30, 2019 and 2018. 

Significant changes in the contract assets and the deferred revenue balances during the three and nine months ended September 30, 2019 were as follows (in thousands):

 

 

 

 

 

 

Three Months Ended September 30, 2019

 

 

Nine Months Ended September 30, 2019

 

 

 

 

 

Contract

Assets

 

 

Contract

Liabilities

 

 

Contract

Assets

 

 

Deferred

Revenue

 

Revenue recognized that was included in deferred revenue at December 31, 2018

$

204

 

 

$

 

 

$

1,189

 

 

$

984

 

Transferred to receivables from contract assets recognized at December 31, 2018

 

 

 

 

 

 

 

302

 

 

 

 

 

 

Contract acquisition costs

We capitalize contract acquisition costs for contracts with a life exceeding one year, as was common with our DataVTM software bookings. Amortization of contract acquisition costs was $35,000 and $7,000 for the three months ended September 30, 2019 and 2018, respectively, and was $42,000 and $93,000 for the nine months ended September 30, 2019 and 2018, 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 are unexercised as of September 30, 2019:

 

 

 

 

 

Remainder of

2019

 

 

2020

 

 

2021

 

 

2022

 

Partner Solutions

 

 

 

$

11

 

 

$

14

 

 

$

 

 

$

 

Edge to Cloud

 

 

 

 

1,315

 

 

 

2,049

 

 

 

2,115

 

 

 

274

 

 

Practical expedients and exemptions

We apply a practical expedient and fully expense contract acquisition costs, such as sales commissions, as incurred because the amortization period is less than one year. We record these costs within selling, general and administrative expenses.