Quarterly report pursuant to Section 13 or 15(d)

REVENUE RECOGNITION

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REVENUE RECOGNITION
9 Months Ended
Sep. 30, 2021
Revenue Recognition  
REVENUE RECOGNITION

 

4. REVENUE RECOGNITION

 

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

 

                               
    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
    2021     2020     2021     2020  
                         
Products sales   $ 30,983     $ 24,617     $ 103,495     $ 58,509  
Non-recurring engineering (“NRE”)     3,569       4,978       10,465       13,630  
Product maintenance contracts     1,415       3,014       4,667       8,811  
Professional service contracts     1,492       2,822       5,287       8,451  
Software licenses     1,023       511       2,137       1,460  
Other     441       96       855       548  
Total revenue   $ 38,923     $ 36,038     $ 126,906     $ 91,409  

 

Revenue recognized at a point in time for NRE services amounted   to $1.4 million and $3.1 million for the three months ended September 30, 2021 and 2020, respectively, and $4.9 million and $7.7 million for the nine months ended September 30, 2021 and 2020, 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 $2.2 million and $1.9 million for the three months ended September 30, 2021 and 2020, respectively, and $5.6 million and $5.9 million for the nine months ended September 30, 2021 and 2020, 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 September 30, 2021 and December 31, 2020 were as follows:

 

               
    Contracts
Assets
    Contracts
Liabilities
 
             
Balance as of December 31, 2020   $ 5,361     $ 7,521  
Balance as of September 30, 2021     11,522       5,045  
Change   $ 6,161     $ (2,476 )

  

Revenues for the three and nine months ended September 30, 2021 and 2020, include the following:

 

                       
    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
    2021     2020     2021     2020  
                         
Amounts included in the beginning of year contract liability balance   $ 626     $ 541     $ 5,053     $ 2,355  

 

 

Warranty Liabilities

 

Information regarding the changes in the Company’s product warranty liabilities for the three and nine months ended September 30, 2021 and 2020 is as follows (in thousands):

 

                               
   

Three Months Ended

September 30,

   

Nine Months Ended

September 30,

 
    2021     2020     2021     2020  
Balance, beginning of period   $ 1,099     $ 967     $ 1,019     $ 981  
Accruals     236       16       496       197  
Settlements     (139 )     (51 )     (319 )     (246 )
Balance, end of period   $ 1,196     $ 932     $ 1,196     $ 932