Revenue

3 Months Ended

Mar. 31, 2025

Revenue

Revenue

Note 5. Revenue

To reflect the organization of our business operations, we divide revenue into two categories: revenue from sales of new systems and revenue arising from the sale of used systems, parts, and labor to customers who own systems, which we refer to as “Aftermarket.”

Revenue by categories used by management are as follows:

	Three months ended
	March 31,
	2025		2024
	(in thousands)
Systems	$	137,609	$	195,432
Aftermarket		54,954		56,940
Total Revenue	$	192,563	$	252,372

We also consider revenue by geography. Revenue is allocated to geographic markets based upon the location to which our products are shipped and in which our services are performed. Revenue in our principal geographic markets is as follows:

	Three months ended
	March 31,
	2025		2024
	(in thousands)
North America	$	40,525	$	45,503
Asia Pacific		134,426		188,217
Europe		17,612		18,652
Total Revenue	$	192,563	$	252,372

Our system sales revenue transactions give rise to contract liabilities (in the case of pre-payments and the fair value of goods and services to be delivered after the system delivery, such as installation and certain warranty obligations).

Contract liabilities are as follows:

	March 31,		December 31,
	2025		2024
	(in thousands)
Contract liabilities	$	139,324	$	138,174

Contract liabilities are reflected as deferred revenue on the consolidated balance sheets and include payments received in advance of system sales as well as deferral of revenue from systems sales for installation and other future performance obligations. Contract liabilities are recognized as revenue upon the fulfillment of performance obligations.

	Three months ended
	March 31,
	2025		2024
	(in thousands)
Balance, beginning of the period	$	138,174	$	210,885
Deferral of revenue*		26,359		42,974
Recognition of deferred revenue		(25,209)		(45,441)
Balance, end of the period	$	139,324	$	208,418

* Amount includes a reclassification of $8.0 million of a refund liability included within other current liabilities as of December 31, 2024 to deferred revenue for the three months ended March 31, 2025.

The majority of our system transactions have either (1) payment terms of 90% due upon shipment of the system and 10% due upon acceptance or (2) a pre-shipment deposit ranging from 20% to 60%, with the remainder due upon shipment, less 10% due at acceptance. Aftermarket transaction payment terms typically provide that payment is due either within 30 or 60 days after the service is provided or parts delivered.