Revenue From Contracts With Customers

The Company derives revenue from the (i) sale or license of multi-client and proprietary data, imaging services and reservoir services within its E&P Technologies & Services segment; (ii) sale, license and repair of seismic data acquisition systems and other equipment; and (iii) sale or license of seismic command and control software systems and software solutions for operations management within its Operations Optimization segment. All E&P Technology & Services’ revenues and the services component of Optimization Software & Services’ revenues under Operations Optimization segment are classified as service revenues. All other revenues are classified as product revenues.

The Company uses a five-step model to determine proper revenue recognition from customer contracts. Revenue is recognized when (i) a contract is approved by all parties; (ii) the goods or services promised in the contract are identified; (iii) the consideration the Company expects to receive in exchange for the goods or services promised is determined; (iv) the consideration is allocated to the goods and services in the contract; and (v) control of the promised goods or services is transferred to the customer. The Company is not required to disclose information about remaining contractual future performance obligations with an original term of one year or less. The Company does not have any contractual future performance obligations with an original term of over one year.

Revenue by Geographic Area

The following table is a summary of net revenues by geographic area (in thousands):



	Three Months Ended March 31,
	2020		2019
North America	$	31,810	$	7,157
Latin America	9,804		13,531
Asia Pacific	9,288		1,867
Europe	3,810		10,392
Middle East	954		1,359
Africa	591		2,389
Other	157		261
Total	$	56,414	$	36,956

See Note 3“Segment Information” for revenue by segment for the three months ended March 31, 2020 and 2019.

Unbilled Receivables

Unbilled receivables relate to revenues recognized on multi-client surveys, imaging services and devices equipment repairs on a proportionate basis, and on licensing of multi-client data for which invoices have not yet been presented to the customer. The following table is a summary of unbilled receivables (in thousands):



	March 31, 2020		December 31, 2019
New Venture	$	1,586	$	5,222
Imaging and Reservoir Services	5,643		6,539
Devices	1,127		54
Total	$	8,356	$	11,815

The changes in unbilled receivables are as follows (in thousands):



Unbilled receivables at December 31, 2019	$	11,815
Recognition of unbilled receivables	55,132
Revenues billed to customers	(58,591		)
Unbilled receivables at March 31, 2020	$	8,356

Deferred Revenue

Billing practices are governed by the terms of each contract based upon achievement of milestones or pre-agreed schedules. Billing does not necessarily correlate with revenue recognized on a proportionate basis as work is performed and control is transferred to the customer. Deferred revenue represents cash received in excess of revenue recognized as of the reporting period but to be recognized in future periods. The following table is a summary of deferred revenues (in thousands):



	March 31, 2020		December 31, 2019
New Venture	$	2,456	$	1,956
Imaging and Reservoir Services	1,141		1,501
Optimization Software & Services	832		642
Devices	453		452
Total	$	4,882	$	4,551

The changes in deferred revenues are as follows (in thousands):



Deferred revenue at December 31, 2019	$	4,551
Cash collected in excess of revenue recognized	1,613
Recognition of deferred revenue^(a)	(1,282		)
Deferred revenue at March 31, 2020	$	4,882

^(a)The majority of deferred revenue recognized relates to Company’s Ventures group.

The Company expects to recognize the majority of deferred revenue within the next 12 months.

Credit Risks

For the three months ended March 31, 2020, the Company had two customers with sales that each exceeded 10% of the Company’s consolidated net revenues. For three months ended March 31, 2019, the Company had one customer with sales that exceeded 10% of the Company’s consolidated net revenues. Revenues related to each of these customers are included within the E&P Technology & Services segment.

At March 31, 2020, the Company had one customer with balances that accounted for 51% of the Company’s total combined accounts receivable and unbilled receivable balances. The Company routinely evaluates the financial stability and creditworthiness of its customers. At March 31, 2019, the Company had two customers with a combined balance that accounted for 26% of the Company’s total combined accounts receivable and unbilled receivable balances.