Revenue

6 Months Ended

Jun. 30, 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				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
	(in thousands)
Systems	$	133,288	$	198,645	$	270,897	$	394,076
Aftermarket		61,256		57,867		116,210		114,807
Total Revenue	$	194,544	$	256,512	$	387,107	$	508,883

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				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
	(in thousands)
North America	$	34,223	$	34,373	$	74,748	$	79,876
Asia Pacific		145,628		196,159		280,053		384,376
Europe		14,693		25,980		32,306		44,631
Total Revenue	$	194,544	$	256,512	$	387,107	$	508,883

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:

	June 30,		December 31,
	2025		2024
	(in thousands)
Contract liabilities	$	129,742	$	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				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
	(in thousands)
Balance, beginning of the period	$	139,324	$	208,418	$	138,174	$	210,885
Deferral of revenue		29,047		24,341		42,207		59,943
Other adjustments *		(2,273)		(4,716)		(2,272)		(4,716)
Recognition of deferred revenue		(36,356)		(54,032)		(48,367)		(92,101)
Balance, end of the period	$	129,742	$	174,011	$	129,742	$	174,011

* Adjustment to contracts with customers are assessed to determine if amounts paid by customers represent deferred revenue or liabilities payable to customers and will reclassify such amounts pursuant to our revenue recognition policy and ASC 606.

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.