Quarterly report pursuant to Section 13 or 15(d)

REVENUE RECOGNITION

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REVENUE RECOGNITION
3 Months Ended
Mar. 31, 2023
Revenue Recognition  
REVENUE RECOGNITION

 

3. REVENUE RECOGNITION

 

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

 

               
    Three Months Ended
March 31,
 
    2023     2022  
Products sales   $ 20,353     $ 31,977  
Non-recurring engineering (“NRE”)     511       1,156  
Product maintenance contracts     2,139       1,740  
Professional service contracts     914       1,093  
Software licenses     819       1,385  
Other     37       213  
Total revenue   $ 24,773     $ 37,564  

 

There was no revenue recognized at a point in time for NRE services for the three months ended March 31, 2023 or 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 $0.5 million and $1.2 million for the three months ended March 31, 2023 and 2022, 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, 2023 and December 31, 2022 were as follows (in thousands):

 

               
    Contracts
Assets
    Contracts
Liabilities
 
Balance as of December 31, 2022   $ 9,001     $ 2,892  
Balance as of March 31, 2023     9,512       2,228  
Change   $ 511     $ (664 )

 

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, 2023 and December 31, 2022, deferred revenue (both current and noncurrent) of $2.0 million and $2.6 million, respectively, represents the Company’s remaining performance obligations, of which $2.1 million and $2.8 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, 2023 and 2022, include the following (in thousands):

 

           
    Three Months Ended
March 31,
 
    2023     2022  
Amounts included in the beginning of year contract liability balance   $ 1,499     $ 1,045