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Revenue Recognition
12 Months Ended
Dec. 31, 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, major product line and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments (in thousands):

 

 

 

 

Year Ended December 31, 2019

 

 

Year Ended December 31, 2018

 

 

 

Partner

Solutions

 

 

Edge to

Cloud

 

 

Total

 

 

Partner

Solutions

 

 

Edge to

Cloud

 

 

Total

 

Primary geographical markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

42,443

 

 

$

7,667

 

 

$

50,110

 

 

$

58,523

 

 

$

10,565

 

 

$

69,088

 

Europe

 

 

1,273

 

 

 

750

 

 

 

2,023

 

 

 

2,239

 

 

 

816

 

 

 

3,055

 

Asia

 

 

6,912

 

 

 

238

 

 

 

7,150

 

 

 

397

 

 

 

874

 

 

 

1,271

 

Total

 

$

50,628

 

 

$

8,655

 

 

$

59,283

 

 

$

61,159

 

 

$

12,255

 

 

$

73,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Major products/services lines:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partner Solutions

 

$

50,628

 

 

$

-

 

 

$

50,628

 

 

$

61,159

 

 

$

-

 

 

$

61,159

 

Edge to Cloud

 

 

-

 

 

 

8,655

 

 

 

8,655

 

 

 

-

 

 

 

12,255

 

 

 

12,255

 

Total

 

$

50,628

 

 

$

8,655

 

 

$

59,283

 

 

$

61,159

 

 

$

12,255

 

 

$

73,414

 

 

Contract Balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers (in thousands):

 

 

 

December 31, 2019

 

 

December 31, 2018

 

Receivables

 

$

9,216

 

 

$

11,581

 

Short-term contract assets

 

 

494

 

 

 

1,053

 

Long-term contract assets

 

 

237

 

 

 

528

 

Short-term contract liabilities (deferred revenue)

 

 

1,559

 

 

 

1,652

 

Long-term contract liabilities (deferred revenue)

 

 

903

 

 

 

1,037

 

 

We receive payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to our contractual right to consideration for completed performance objectives not yet invoiced and deferred contract acquisition costs, which are amortized along with the associated revenue. Contract liabilities include payments received in advance of performance under the contract and are realized with the associated revenue recognized under the contract. We had no asset impairment charges related to contract assets in the period. 

Significant changes in contract assets and liabilities balances were as follows (in thousands):

 

 

 

December 31, 2019

 

 

December 31, 2018

 

 

 

Contract

Assets

 

 

Contract

Liabilities (1)

 

 

Contract

Assets

 

 

Contract

Liabilities (1)

 

Revenue recognized that was included in the contract liability at beginning of the period

 

$

-

 

 

$

2,033

 

 

$

-

 

 

$

3,663

 

Transferred to receivables from contract assets recognized at beginning of the period

 

$

302

 

 

$

-

 

 

$

263

 

 

$

-

 

(1) Comprised of deferred revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract acquisition costs

 

In connection with the adoption of Topic 606, we capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed. For contracts that have a duration of less than one year, we follow a Topic 606 practical expedient and expense these costs when incurred. For contracts with lives exceeding one year, as is more common with our DataV software bookings, we record these costs in proportion to each completed contract performance obligation. During the years ended December 31, 2019 and December 31, 2018, we recorded $108,000 and $128,000 in amortization of capitalized contract acquisition costs, respectively. There were no impairment losses recorded related to costs capitalized. Contract acquisition costs capitalized during the years ended December 31, 2019 and December 31, 2018 were $151,000 and $748,000, respectively.

Performance obligations

We did not recognize any revenue from performance obligations satisfied in previous periods.

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 December 31, 2019.

 

 

 

2020

 

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

Thereafter

 

Partner Solutions

 

$

14

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Edge to Cloud

 

 

1,581

 

 

 

2,232

 

 

 

274

 

 

 

-

 

 

 

-

 

 

 

-

 

 

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.

The Company has the right to invoice customers in an amount that directly corresponds with the value to the customer of the Company's performance to date and recognizes revenue based on the invoiced amount.