Revenue

3 Months Ended

Apr. 02, 2023

Revenue From Contract With Customer [Abstract]

Revenue

Note 3. Revenue

Revenue from contracts with customers is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

Transaction Price Allocated to the Remaining Performance Obligations

Remaining performance obligations represent the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied, which are primarily from hardware and, to a lesser extent, subscription and support services, as of the end of the reporting period. Unsatisfied and partially unsatisfied performance obligations consist of contract liabilities, in-transit orders with destination terms, and non-cancellable backlog. Non-cancellable backlog includes goods for which customer purchase orders have been accepted that are scheduled or in the process of being scheduled for shipment, and that are not yet invoiced.

The following table summarizes estimated revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of April 2, 2023:

(In thousands)	2023		2024		Beyond 2024		Total
Performance obligations	$	88,231	$	2,167	$	2,046	$	92,444

Contract Balances

The Company records accounts receivable when it has an unconditional right to consideration. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Contract liabilities are mainly classified as Deferred revenue on the unaudited condensed consolidated balance sheets.

Payment terms vary by customer. The time between invoicing and when payment is due is not significant. For certain products or services and customer types, payment is required before the products or services are delivered to the customer.

The following table reflects the contract balances:

(In thousands)	Balance Sheet Location	April 2, 2023		December 31, 2022
Accounts receivable, net	Accounts receivable, net	$	192,540	$	277,485
Contract liabilities - current	Deferred revenue	$	22,439	$	21,128
Contract liabilities - non-current	Other non-current liabilities	$	4,195	$	3,897

The difference in the balances of the Company's contract assets and liabilities as of April 2, 2023 and December 31, 2022, primarily results from the timing difference between the Company's performance and the customer’s payment.

During the three months ended April 2, 2023, $11.3 million of revenue was deferred primarily due to unsatisfied performance obligations for service contracts, $9.7 million of revenue was recognized for the satisfaction of performance obligations and $8.5 million of this recognized revenue was included in the contract liability balance at the beginning of the period.

There were no significant changes in estimates during the period that would affect the contract balances.

Disaggregation of Revenue

In the following tables, net revenue is disaggregated by geographic region and sales channel. The Company conducts business across three geographic regions: Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific (“APAC”). The tables also include reconciliations of the disaggregated revenue by reportable segment. The Company operates and reports in two segments: Connected Home, and Small and Medium Business (“SMB”). Sales and usage-based taxes are excluded from net revenue.

	Three Months Ended
	April 2, 2023						April 3, 2022
(In thousands)	Connected Home		SMB		Total		Connected Home		SMB		Total
Geographic regions (1):
Americas	$	84,001	$	37,921	$	121,922	$	107,347	$	37,302	$	144,649
EMEA		12,064		27,114		39,178		9,018		27,847		36,865
APAC		6,681		13,127		19,808		13,977		15,067		29,044
Total	$	102,746	$	78,162	$	180,908	$	130,342	$	80,216	$	210,558
Sales channels:
Service provider	$	14,027	$	190	$	14,217	$	18,121	$	729	$	18,850
Non-service provider		88,719		77,972		166,691		112,221		79,487		191,708
Total	$	102,746	$	78,162	$	180,908	$	130,342	$	80,216	$	210,558

(1) No individual foreign country represented more than 10% of the Company's total net revenue in the periods presented.