XML 43 R30.htm IDEA: XBRL DOCUMENT v3.25.1
Revision of Prior Period Financial Statements
12 Months Ended
Dec. 31, 2024
Accounting Changes and Error Corrections [Abstract]  
Revision of Prior Period Financial Statements Revision of Prior Period Financial Statements
As previously disclosed in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024 and in the Original 2024 Annual Report and discussed in Note 1 “Organization and Summary of Significant Accounting Policies”, separate from the restatement discussed in Note 1 “Organization and Summary of Significant Accounting Policies”, in preparing the condensed consolidated financial statements as of and for the three and nine months ended September 30, 2024, we identified errors in our previously issued financial statements related to our historical conclusions of principal vs. agent accounting of certain reseller arrangements under ASC 606 and concluded they were not material to any previously issued financial statements.

The identified errors impacted our previously issued 2021 and 2022 annual financial statements, 2023 quarterly and annual financial statements, and 2024 quarterly financial statements through June 30, 2024. Consistent with revising our quarterly financial statements as of September 30, 2024, we made adjustments to the prior period amounts presented in these financial statements accordingly. Furthermore, we made adjustments to correct for other previously identified immaterial errors.
The following tables reflect the impact of the revision to the specific line items presented in our previously reported (a) consolidated balance sheet as of December 31, 2023; (b) consolidated statements of operations and comprehensive income for the years ended December 31, 2023 and December 31, 2022; (c) consolidated statements of stockholders' equity for the years ended December 31, 2023 and December 31, 2022; and (d) consolidated statements of cash flows for the years ended December 31, 2023 and December 31, 2022.
Consolidated Balance Sheet
(in thousands)
As of December 31, 2023As Reported
Revision
As Revised
Accounts and notes receivable, net of allowance of $2,392 as of December 31, 2023
$417,690 $(4,729)$412,961 
Contract assets, net275,779 11,453 287,232 
Prepaid expenses and other current assets112,786 (9,731)103,055 
Total current assets2,396,649 (3,007)2,393,642 
Deferred tax assets, net229,513 (1,729)227,784 
Long-term contract assets, net77,710 6,672 84,382 
Other long-term assets220,638 (29,607)191,031 
Total assets3,436,845 (27,671)3,409,174 
Accounts payable88,326 (22,474)65,852 
Accrued liabilities188,230 5,320 193,550 
Current portion of deferred revenue491,691 (21,276)470,415 
Total current liabilities799,969 (38,430)761,539 
Deferred revenue, net of current portion281,852 (10,951)270,901 
Other long-term liabilities2,936 17,979 20,915 
Total liabilities1,824,811 (31,402)1,793,409 
Retained earnings431,249 3,731 434,980 
Total stockholders’ equity1,612,034 3,731 1,615,765 
Total liabilities and stockholders’ equity$3,436,845 $(27,671)$3,409,174 
Consolidated Statements of Operations and Comprehensive Income
(in thousands, except per share data)
Year Ended December 31, 2023As Reported
Revision
As Revised
Net sales from products$967,711 $(3,709)$964,002 
Net sales from services595,680 1,017 596,697 
Net sales1,563,391 (2,692)1,560,699 
Cost of product sales450,718 (3,010)447,708 
Cost of service sales157,291 247 157,538 
Cost of sales608,009 (2,763)605,246 
Gross margin955,382 71 955,453 
Selling, general and administrative496,874 (1,990)494,884 
Total operating expenses800,593 (1,990)798,603 
Income from operations154,789 2,061 156,850 
Income before provision for income taxes155,000 2,061 157,061 
Provision for (benefit from) income taxes(19,227)505 (18,722)
Net income$174,227 $1,556 $175,783 
Net income per common and common equivalent shares - Basic$2.35 $0.02 $2.37 
Net income per common and common equivalent shares - Diluted$2.31 $0.02 $2.33 
Comprehensive income$170,727 $1,556 $172,283 
Year Ended December 31, 2022As Reported
Revision
As Revised
Net sales from products$801,388 $(4,211)$797,177 
Net sales from services388,547 1,419 389,966 
Net sales1,189,935 (2,792)1,187,143 
Cost of product sales363,219 (2,310)360,909 
Cost of service sales98,078 2,043 100,121 
Cost of sales461,297 (267)461,030 
Gross margin728,638 (2,525)726,113 
Selling, general and administrative401,575 (2,245)399,330 
Total operating expenses635,385 (2,245)633,140 
Income from operations93,253 (280)92,973 
Income before provision for income taxes196,518 (280)196,238 
Provision for (benefit from) income taxes49,379 (71)49,308 
Net income$147,139 $(209)$146,930 
Comprehensive income$141,277 $(209)$141,068 
There was no impact on disclosed basic and diluted income per common and common equivalent shares for the year ended December 31, 2022.

Consolidated Statements of Stockholders' Equity
(in thousands)
As ReportedRevisionAs Revised
Retained EarningsTotal
Stockholders’
Equity
Retained EarningsTotal
Stockholders’
Equity
Retained EarningsTotal
Stockholders’
Equity
Balance, December 31, 2021$109,883 $1,047,849 $2,384 $2,384 $112,267 $1,050,233 
Net income147,139 147,139 (209)(209)146,930 146,930 
Balance, December 31, 2022257,022 1,268,491 2,175 2,175 259,197 1,270,666 
Net income174,227 174,227 1,556 1,556 175,783 175,783 
Balance, December 31, 2023$431,249 $1,612,034 $3,731 $3,731 $434,980 $1,615,765 
Consolidated Statements of Cash Flows
(in thousands)
Year Ended December 31, 2023As Reported
Revision
As Revised
Cash flows from operating activities:
Net income$174,227 $1,556 $175,783 
Deferred income taxes(73,002)505 (72,497)
Provision for bad debts and inventory1,090 4,394 5,484 
Change in assets and liabilities:
Receivables and contract assets(172,524)(6,465)(178,989)
Inventory(71,896)(5,730)(77,626)
Deferred revenue164,043 (17,224)146,819 
Accounts payable, accrued and other liabilities64,384 945 65,329 
Other - net(102,370)22,019 (80,351)
Net cash provided by operating activities$189,263 $— $189,263 
Other than the impact to the captions noted above, there was no impact on total cash flows from operating activities, or to cash flows from investing or financing activities.
Year Ended December 31, 2022As Reported
Revision
As Revised
Cash flows from operating activities:
Net income$147,139 $(209)$146,930 
Deferred income taxes22,090 (71)22,019 
Provision for bad debts and inventory699 701 
Change in assets and liabilities:
Receivables and contract assets(73,228)(4,998)(78,226)
Inventory(95,987)976 (95,011)
Deferred revenue159,718 (4,152)155,566 
Accounts payable, accrued and other liabilities80,757 221 80,978 
Other - net(52,207)8,231 (43,976)
Net cash provided by operating activities$235,361 $— $235,361 
Other than the impact to the captions noted above, there was no impact on total cash flows from operating activities, or to cash flows from investing or financing activities.
Impact of Revision on Quarterly Statements of Operations and Comprehensive Income (Unaudited)
Condensed Consolidated Statements of Operations and Comprehensive Income
(in thousands, except per share data)
As Reported
Three Months EndedDecember 31, 2024September 30, 2024
Net sales$575,145$544,274
Gross margin345,849330,747
Income (loss) from operations(15,755)24,081
Net income135,18467,025
Net income per common and common equivalent shares - Basic$1.77$0.89
Net income per common and common equivalent shares - Diluted$1.67$0.86

As discussed within Note 1 “Organization and Summary of Significant Accounting Policies”, we recorded an out of period adjustment in the three months ended December 31, 2024. This adjustment reduced revenue and net income by $5.1 million and $3.7 million, respectively. Of this total adjustment, $3.3 million and $2.3 million for revenue and net income, respectively, pertained to prior fiscal years. These errors originated in prior years and were immaterial to each respective prior period.

Three Months Ended June 30, 2024As Reported
Revision
As Revised
Net sales from products$295,185$(2,422)$292,763
Net sales from services208,9141,559210,473
Net sales504,099(863)503,236
Cost of product sales145,154(2,527)142,627
Cost of service sales55,210(757)54,453
Cost of sales200,364(3,284)197,080
Gross margin303,7352,421306,156
Sales, general and administrative169,4271,537170,964
Total operating expenses270,8611,537272,398
Income from operations32,87488433,758
Income before provision for income taxes50,590 884 51,474 
Provision for (benefit from) income taxes9,793 208 10,001 
Net income$40,797 $676 $41,473 
Net income per common and common equivalent shares - Basic$0.54 $0.01 $0.55 
Net income per common and common equivalent shares - Diluted$0.53 $— $0.53 
Comprehensive income$38,189 $676 $38,865 
Three Months Ended December 31, 2023As Reported
Revision
As Revised
Net sales from products$258,405$(1,966)$256,439
Net sales from services173,737200173,937
Net sales432,142(1,766)430,376
Cost of product sales125,664(1,764)123,900
Cost of service sales42,591(107)42,484
Cost of sales168,255(1,871)166,384
Gross margin263,887105263,992
Sales, general and administrative137,106167137,273
Total operating expenses221,078167221,245
Income from operations42,809(62)42,747
Income before provision for income taxes55,802 (62)55,740 
Provision for (benefit from) income taxes(1,469)148 (1,321)
Net income$57,271 $(210)$57,061 
Net income per common and common equivalent shares - Basic$0.76 $— $0.76 
Net income per common and common equivalent shares - Diluted$0.75 $— $0.75 
Comprehensive income$59,461 $(210)$59,251 

Three Months Ended September 30, 2023As Reported
Revision
As Revised
Net sales from products$256,443$(1,388)$255,055
Net sales from services157,1581,065158,223
Net sales413,601(323)413,278
Cost of product sales116,278(1,665)114,613
Cost of service sales42,051(42)42,009
Cost of sales158,329(1,707)156,622
Gross margin255,2721,384256,656
Sales, general and administrative123,279(922)122,357
Total operating expenses200,159(922)199,237
Income from operations55,1132,30657,419
Income before provision for income taxes69,423 2,306 71,729 
Provision for (benefit from) income taxes10,026 394 10,420 
Net income$59,397 $1,912 $61,309 
Net income per common and common equivalent shares - Basic$0.79$0.03$0.82
Net income per common and common equivalent shares - Diluted$0.78$0.03$0.81
Comprehensive income$53,254 $1,912 $55,166 
Three Months Ended June 30, 2023As Reported
Revision
As Revised
Net sales from products$233,474$214$233,688
Net sales from services141,131(2,115)139,016
Net sales374,605(1,901)372,704
Cost of product sales101,192(254)100,938
Cost of service sales41,29213341,425
Cost of sales142,484(121)142,363
Gross margin232,121(1,780)230,341
Sales, general and administrative119,922(614)119,308
Total operating expenses191,862(614)191,248
Income from operations40,259(1,166)39,093
Income (loss) before provision for income taxes(12,109)(1,166)(13,275)
Provision for (benefit from) income taxes(24,529)(260)(24,789)
Net income$12,420 $(906)$11,514 
Net income per common and common equivalent shares - Basic$0.17$(0.01)$0.16
Net income per common and common equivalent shares - Diluted$0.16$(0.01)$0.15
Comprehensive income$11,013 $(906)$10,107 
Three Months Ended March 31, 2023As Reported
Revision
As Revised
Net sales from products$219,389$(569)$218,820
Net sales from services123,6541,867125,521
Net sales343,0431,298344,341
Cost of product sales107,584673108,257
Cost of service sales31,35726331,620
Cost of sales138,941936139,877
Gross margin204,102362204,464
Sales, general and administrative116,567(621)115,946
Total operating expenses187,494(621)186,873
Income from operations16,60898317,591
Income before provision for income taxes41,884 983 42,867 
Provision for (benefit from) income taxes(3,255)223 (3,032)
Net income$45,139 $760 $45,899 
Net income per common and common equivalent shares - Basic$0.62$0.01$0.63
Net income per common and common equivalent shares - Diluted$0.61$0.01$0.62
Comprehensive income$46,999 $760 $47,759