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 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 and services for which customer purchase orders have been accepted that are scheduled or in the process of being scheduled for shipment.

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2019:



	1 year		2 years		Greater than 2 years		Total
Performance obligations	$	49,895	$	1,012	$	965	$	51,872

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 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 changes in contract balances for the three months ended March 31, 2019:



	Balance Sheet Location	March 31, 2019		December 31, 2018		$ change			% change
		(In thousands)
Accounts Receivable, net	Accounts receivable, net	$	262,531	$	303,667	$	(41,136	)	(13.5	)%
Contract liabilities - current	Deferred revenue	$	11,750	$	11,086	$	664		6.0	%
Contract liabilities - non-current	Other non-current liabilities	$	1,847	$	779	$	1,068		137.1	%

The difference in the balances of the Company’s contract assets and liabilities as of March 31, 2019 and December 31, 2018 primarily results from the timing difference between the Company’s performance and the customer’s payment.

During the three months ended March 31, 2019, $3.7 million of revenue was deferred due to unsatisfied performance obligations, primarily relating to over time revenue. During the three months, $2.0 million of revenue was recognized for the satisfaction of performance obligations over time. $1.7 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 table, 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 table also includes a reconciliation 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
	March 31, 2019						April 1, 2018
	Connected Home		SMB		Total		Connected Home		SMB		Total

Geographic regions:
Americas	$	113,687	$	34,342	$	148,029	$	129,038	$	30,974	$	160,012
EMEA	25,690		31,273		56,963		21,010		26,424		47,434
APAC	29,988		14,102		44,090		24,267		13,488		37,755
Total net revenue	$	169,365	$	79,717	$	249,082	$	174,315	$	70,886	$	245,201
Sales channels:
Service provider	$	36,818	$	1,476	$	38,294	$	41,797	$	1,063	$	42,860
Non-service provider	132,547		78,241		210,788		132,518		69,823		202,341
Total net revenue	$	169,365	$	79,717	$	249,082	$	174,315	$	70,886	$	245,201