Quarterly report pursuant to Section 13 or 15(d)

REVENUE RECOGNITION

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REVENUE RECOGNITION
3 Months Ended
Mar. 31, 2022
Revenue Recognition  
REVENUE RECOGNITION

 

4. REVENUE RECOGNITION

 

The following is a summary of revenue by category (in thousands):

 

               
    Three Months Ended
March 31,
 
    2022     2021  
Products sales   $ 31,646     $ 37,782  
Non-recurring engineering (“NRE”)     1,156       2,125  
Product maintenance contracts     899       3,163  
Professional service contracts     1,933       1,904  
Software licenses     1,384       603  
Other     546       358  
Total revenue   $ 37,564     $ 45,935  

 

Revenue recognized at a point in time for NRE services amounted $0.1 million for the three months ended March 31, 2021. There was no revenue recognized at a point in time for NRE services for the three months ended March 31, 2022. For services performed on a customer’s owned asset, since the customer controls the asset being enhanced, revenue is recognized over time as services are rendered. Revenue recognized over time for NRE services using a cost-based input method amounted to $1.2 million and $2.0 million for the three months ended March 31, 2022 and 2021, respectively. The Company is allowed to bill for services performed under the contract in the event the contract is terminated.

 

The opening and closing balances of our contract asset and liability balances from contracts with customers as of March 31, 2022 and December 31, 2021 were as follows (in thousands):

 

                 
      Contracts
Assets
    Contracts
Liabilities
 
Balance as of December 31, 2021     $ 7,673     $ 2,902  
Balance as of March 31, 2022       8,704       3,219  
Change     $ 1,031     $ 317  

 

Remaining performance obligations represent the revenue that is expected to be recognized in future periods related to performance obligations included in a contract that are unsatisfied, or partially satisfied, as of the end of a period. As of March 31, 2022 and December 31, 2021, deferred revenue (both current and noncurrent) of $3.2 million and $2.9 million, respectively, represents the Company’s remaining performance obligations, of which $3.1 million and $2.5 million, respectively, is expected to be recognized within one year, with the remainder to be recognized thereafter.

 

Revenues for the three months ended March 31, 2022 and 2021, include the following (in thousands):

 

           
    Three Months Ended
March 31,
 
    2022     2021  
Amounts included in the beginning of year contract liability balance   $ 1,045     $ 3,550  

 

Warranty Liabilities

 

Information regarding the changes in the Company’s product warranty liabilities for the three months ended March 31, 2022 and 2021 is as follows (in thousands):

 

                 
     

Three Months Ended

March 31,

 
      2022     2021  
Balance, beginning of period     $ 1,285     $ 1,019  
Accruals       237       92  
Settlements       (181 )     (92 )
Balance, end of period     $ 1,341     $ 1,019