Quarterly report pursuant to Section 13 or 15(d)

REVENUE

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REVENUE
 3 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
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 offerings and geographies (in thousands):
  Three Months Ended June 30,
2024 2023
Americas1
   Product revenue 23,630  36,636 
   Service and subscription 15,114  17,954 
Total revenue 38,744  54  % 54,590  59  %
EMEA
   Product revenue 12,974  15,849 
   Service and subscription 9,663  11,106 
Total revenue 22,637  32  % 26,955  29  %
APAC
   Product revenue 4,390  6,092 
   Service and subscription 2,670  1,893 
Total revenue 7,060  10  % 7,985  9  %
Consolidated
   Product revenue 40,994  58,577 
   Service and subscription 27,447  30,953 
   Royalty2
2,902  4  % 2,965  3  %
Total revenue $ 71,343  100  % $ 92,495  100  %

1 Revenue for Americas geographic region outside of the United States is not significant.
2 Royalty revenue is not allocatable to geographic regions.

Revenue by Solution
Three Months Ended June 30,
2024 % 2023 %
Primary storage systems 16,870  24  % 11,449  12  %
Secondary storage systems 15,769  22  % 41,574  45  %
Device and media 9,250  13  % 8,192  9  %
Service 26,552  37  % 28,315  31  %
Royalty 2,902  4  % 2,965  3  %
Total revenue1
71,343  100  % 92,495  100  %

1 Subscription revenue of $0.9 million and $2.6 million was allocated to Primary and Secondary storage systems for the quarters ended June 30, 2024 and 2023, respectively.


Contract Balances

The following table presents the Company’s contract liabilities and certain information related to this balance as of and for the three months ended June 30, 2024 and March 31, 2024 (in thousands): 
June 30, 2024
Deferred revenue $ 111,561 
Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period 27,723 
March 31, 2024
Deferred revenue $ 116,687 
Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period $ 76,304 


Remaining Performance Obligations

Total remaining performance obligations (“RPO”) which is contracted but not recognized revenue was $138.1 million as of June 30, 2024. RPO consists of both deferred revenue and non-cancelable amounts that are expected to be invoiced and recognized as revenue in future periods and excludes variable consideration related to sales-based royalties. Of the $138.1 million RPO at the end of the first quarter of fiscal 2024, we expect to recognize approximately 29% over the next 13 to 60 months.

Remaining performance obligations consisted of the following (in thousands):
Current Non-Current Total
As of June 30, 2024
 $ 98,133  $ 39,931  $ 138,064 

Deferred revenue primarily consists of amounts invoiced and paid but not recognized as revenue including performance obligations pertaining to subscription services. The table below reflects our deferred revenue as of June 30, 2024 (in thousands):
Deferred revenue by period
(in thousands) Total 1 year or less 1 – 3 Years 3 year or greater
Subscription revenue $ 16,373  $ 8,039  $ 6,623  $ 1,711 
Service revenue 95,188  66,763  24,062  $ 4,363 
     Total $ 111,561  $ 74,802  $ 30,685  $ 6,074