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

Quarterly report pursuant to Section 13 or 15(d)

REVENUE

REVENUE

9 Months Ended

Dec. 31, 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				Nine Months Ended
	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018
Americas
Primary storage systems	$	17,748	$	9,488	$	45,088	$	28,377
Secondary storage systems	9,461		21,421		48,187		50,162
Device and media	6,467		6,706		24,486		24,618
Service	20,628		22,033		62,564		65,275
Total revenue	54,304		59,648		180,325		168,432

EMEA
Primary storage systems	5,384		4,944		12,852		15,887
Secondary storage systems	11,233		11,161		28,967		27,809
Device and media	7,933		3,494		18,106		13,870
Service	10,063		9,421		29,114		27,910
Total revenue	34,613		29,020		89,039		85,476

APAC
Primary storage systems	2,555		1,456		7,210		6,094
Secondary storage systems	4,612		3,287		11,127		9,497
Device and media	1,042		1,029		4,338		5,163
Service	2,201		2,643		6,995		7,828
Total revenue	10,410		8,415		29,670		28,582

Consolidated
Primary storage systems	25,687		15,888		65,150		50,358
Secondary storage systems	25,306		35,869		88,281		87,468
Device and media	15,442		11,229		46,930		43,651
Service	32,892		34,097		98,673		101,013
Royalty*	3,988		4,896		15,700		16,913
Total revenue	$	103,315	$	101,979	$	314,734	$	299,403



*	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 nine months ended December 31, 2019 (in thousands):



	December 31, 2019
Contract liabilities (deferred revenue)	$	109,965
Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period	$	70,027

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 December 31, 2019	$	91,052	$	47,421	$	138,473

The Company expects to recognize approximately 66% 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.