Quantum Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

REVENUE

REVENUE

6 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Based on how the Company manages its business, the Company has determined that it currently operates in one reportable segment. The Company operates in three geographic regions: (a) Americas; (b) Europe, Middle East and Africa (“EMEA”); and (c) Asia Pacific (“APAC”). Revenue by geography is based on the location of the customer from which the revenue is earned.

In the following table, revenue is disaggregated by major product offering and geographies (in thousands):



	Three Months Ended				Six Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Americas
Primary storage systems	$	17,327	$	9,710	$	27,340	$	18,889
Secondary storage systems	15,029		9,731		38,726		28,743
Device and media	9,348		7,629		18,019		17,912
Service	20,366		21,552		41,936		43,241
Total revenue	62,070		48,622		126,021		108,785

EMEA
Primary storage systems	3,388		5,628		7,468		10,943
Secondary storage systems	8,079		5,640		17,734		16,648
Device and media	6,640		4,422		10,173		10,376
Service	9,828		9,215		19,051		18,489
Total revenue	27,935		24,905		54,426		56,456

APAC
Primary storage systems	3,203		3,179		4,655		4,638
Secondary storage systems	3,078		3,185		6,515		6,209
Device and media	2,038		2,498		3,296		4,133
Service	2,207		2,585		4,794		5,186
Total revenue	10,526		11,447		19,260		20,166

Consolidated
Primary storage systems	23,918		18,517		39,463		34,470
Secondary storage systems	26,186		18,556		62,975		51,600
Device and media	18,026		14,549		31,488		32,421
Service	32,401		33,352		65,781		66,916
Royalty*	5,258		4,938		11,712		12,017
Total revenue	$	105,789	$	89,912	$	211,419	$	197,424



*	Royalty revenue is not allocable to geographic regions.

Revenue for Americas geographic region outside of the United States is not significant.

Contract Balances

The following table presents the Company’s contract liabilities and certain information related to this balance as of and for the six months ended September 30, 2019 (in thousands):



	September 30, 2019
Contract liabilities (deferred revenue)	$	111,559
Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period	$	51,850

Remaining Performance Obligations

Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and contractually agreed upon amounts, yet to be invoiced, that will be recognized as revenue in future periods. Remaining performance obligations are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, adjustments for revenue that have not materialized and foreign exchange adjustments. The Company applied the practical expedient in accordance within ASC 606, Revenue from Contracts with Customers (“ASC 606”), to exclude amounts for variable consideration constituting a sale- or usage-based royalty promised in exchange for a license of intellectual property from remaining performance obligations.

Remaining performance obligation consisted of the following (in thousands):



	Current		Non-Current		Total
As of September 30, 2019	$	92,610	$	45,896	$	138,506

The Company expects to recognize approximately 70% of the remaining performance obligations within the next 12 months. The majority of the Company’s noncurrent remaining performance obligations is expected to be recognized in the next 13 to 60 months.