Annual report pursuant to Section 13 and 15(d)

REVENUE RECOGNITION

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REVENUE RECOGNITION
12 Months Ended
Dec. 31, 2022
Revenue Recognition  
REVENUE RECOGNITION

 

4. REVENUE RECOGNITION

 

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

 

               
    Year Ended
December 31,
 
    2022     2021  
Products sales   $ 142,844     $ 148,160  
Non-recurring engineering (“NRE”)     4,944       12,527  
Product maintenance contracts     9,418       8,127  
Professional service contracts     3,975       5,457  
Software licenses     5,184       1,758  
Other     894       1,254  
Total revenues   $ 167,259     $ 177,283  

 

Revenue recognized at a point in time for NRE services amounted to $2.4 million and $3.0 million for the years ended December 31, 2022 and 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. Revenue recognized over time for NRE services using a cost-based input method amounted to $2.5 million and $9.5 million for the years ended December 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 December 31, 2022 and 2021 were as follows (in thousands):

 

               
    Contracts
Assets
    Contracts
Liabilities
 
Balance as of December 31, 2021   $ 7,673       2,902  
Balance as of December 31, 2022     9,001       2,892  
Change   $ 1,328     $ (10 )

 

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 December 31, 2022 and 2021, deferred revenue (both current and noncurrent) of $2.9 million and $2.9 million, respectively, represents the Company’s remaining performance obligations, of which $2.8 million and $2.5 million, respectively, is expected to be recognized within one year, with the remainder to be recognized thereafter.

 

Revenues for the years ended December 31, 2022 and 2021, include the following (in thousands):

 

           
    Year Ended
December 31,
 
    2022     2021  
Amounts included in the beginning of year contract liability balance   $ 2,383     $ 6,143