Revenue

9 Months Ended

Sep. 29, 2019

Revenue from Contract with Customer [Abstract]

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 September 29, 2019:



	1 year		2 years		Greater than 2 years		Total
	(In thousands)
Performance obligations	$	58,528	$	921	$	1,008	$	60,457

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.

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 nine months ended September 29, 2019:



	Balance Sheet Location	September 29, 2019		December 31, 2018		$ change			% change
		(In thousands)
Accounts Receivable, net	Accounts receivable, net	$	248,070	$	303,667	$	(55,597	)	(18.3	)%
Contract liabilities - current	Deferred revenue	$	5,812	$	11,086	$	(5,274	)	(47.6	)%
Contract liabilities - non-current	Other non-current liabilities	$	1,900	$	779	$	1,121		143.9	%

The difference in the balances of the Company’s contract assets and liabilities as of September 29, 2019 and December 31, 2018 primarily results from the timing difference between the Company’s performance and the customer’s payment.

During the nine months ended September 29, 2019, $10.8 million of revenue was deferred due to unsatisfied performance obligations for service contracts and undelivered product commitments, $14.9 million of revenue was recognized for the satisfaction of performance obligations and $9.4 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
	September 29, 2019						September 30, 2018
	Connected Home		SMB		Total		Connected Home		SMB		Total
	(In thousands)
Geographic regions:
Americas	$	146,806	$	31,873	$	178,679	$	141,883	$	34,049	$	175,932
EMEA	22,190		27,364		49,554		27,619		25,539		53,158
APAC	21,676		15,949		37,625		25,181		15,140		40,321
Total net revenue	$	190,672	$	75,186	$	265,858	$	194,683	$	74,728	$	269,411
Sales channels:
Service provider	$	35,482	$	972	$	36,454	$	30,769	$	1,191	$	31,960
Non-service provider	155,190		74,214		229,404		163,914		73,537		237,451
Total net revenue	$	190,672	$	75,186	$	265,858	$	194,683	$	74,728	$	269,411



	Nine Months Ended
	September 29, 2019						September 30, 2018
	Connected Home		SMB		Total		Connected Home		SMB		Total
	(In thousands)
Geographic regions:
Americas	$	392,162	$	91,716	$	483,878	$	416,491	$	93,867	$	510,358
EMEA	65,406		84,202		149,608		69,134		79,667		148,801
APAC	69,964		42,342		112,306		69,797		40,932		110,729
Total net revenue	$	527,532	$	218,260	$	745,792	$	555,422	$	214,466	$	769,888
Sales channels:
Service provider	$	99,201	$	3,370	$	102,571	$	118,899	$	2,954	$	121,853
Non-service provider	428,331		214,890		643,221		436,523		211,512		648,035
Total net revenue	$	527,532	$	218,260	$	745,792	$	555,422	$	214,466	$	769,888