Quarterly report pursuant to Section 13 or 15(d)

REVENUE RECOGNITION

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REVENUE RECOGNITION
 6 Months Ended
Jun. 30, 2022
Revenue Recognition  
REVENUE RECOGNITION

 

4. REVENUE RECOGNITION

 

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

 

                               
    Three Months Ended
June 30,		     Six Months Ended
June 30,		  
    2022     2021     2022     2021  
                         
Products sales   $ 42,500     $ 33,874     $ 74,146     $ 71,655  
Non-recurring engineering (“NRE”)     -       4,833       1,156       6,958  
Product maintenance contracts     911       1,463       1,809       4,626  
Professional service contracts     2,003       959       3,937       2,863  
Software licenses     1,162       745       2,546       1,348  
Other     369       174       915       533  
Total revenue   $ 46,945     $ 42,048     $ 84,509     $ 87,983  

 

There was no revenue recognized at a point in time for NRE services for the three and six months ended June 30, 2022. Revenue recognized at a point in time for NRE services amounted to $1.4 million and $3.5 million for the three and six months ended June 30, 2021, respectively. 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. There was no revenue recognized over time for NRE services using a cost-based input method for the three months ended June 30, 2022. Revenue recognized over time for NRE services using a cost-based input method amounted to $3.4 million for the three months ended June 30, 2021, and $1.2 million and $3.4 million for the six months ended June 30, 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 June 30, 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 June 30, 2022     8,704       4,588  
Change   $ 1,031     $ 1,686  

  

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 June 30, 2022 and December 31, 2021, deferred revenue (both current and noncurrent) of $4.6 million and $2.9 million, respectively, represents the Company’s remaining performance obligations, of which $4.5 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 and six months ended June 30, 2022 and 2021, include the following (in thousands):

 

                               
    Three Months Ended
June 30,		     Six Months Ended
June 30,		  
    2022     2021     2022     2021  
                                 
Amounts included in the beginning of year contract liability balance   $ 835     $ 877     $ 1,880     $ 4,427  

 

Warranty Liabilities

 

Information regarding the changes in the Company’s product warranty liabilities for the three and six months ended June 30, 2022 and 2021 is as follows (in thousands):

 

                               
   

Three Months Ended

June 30,

    

Six Months Ended

June 30,

  
    2022     2021     2022     2021  
Balance, beginning of period   $ 1,341     $ 1,019     $ 1,285     $ 1,019  
Accruals     930       168       1,167       260  
Settlements     (913 )     (88 )     (1,094 )     (180 )
Balance, end of period   $ 1,358     $ 1,099     $ 1,358     $ 1,099