Quarterly report pursuant to Section 13 or 15(d)

REVENUE

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REVENUE
 6 Months Ended
Sep. 30, 2023
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 September 30, Six Months Ended September 30,
2023 2022 2023 2022
Restated Restated
Americas1
   Product revenue 25,493  43,085  62,128  83,318 
   Service and subscription 17,635  19,279  35,589  39,460 
Total revenue 43,128  57  % 62,364  63  % 97,717  58  % 122,778  62  %
EMEA
   Product revenue 11,975  13,052  27,823  28,740 
   Service and subscription 10,846  11,188  21,952  22,616 
Total revenue 22,821  30  % 24,240  24  % 49,775  30  % 51,356  26  %
APAC
   Product revenue 5,479  7,973  11,571  13,640 
   Service and subscription 2,024  2,510  3,917  4,706 
Total revenue 7,503  10  % 10,483  10  % 15,488  9  % 18,346  9  %
Consolidated
   Product revenue 42,947  64,110  101,522  125,698 
   Service and subscription 30,505  32,977  61,458  66,782 
   Royalty2
2,228  3  % 3,478  3  % 5,194  3  % 6,918  3  %
Total revenue $ 75,680  100  % $ 100,565  100  % $ 168,174  100  % $ 199,398  100  %

1 Revenue for the 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 September 30, Six Months Ended September 30,
2023 % 2022 % 2023 % 2022 %
Restated Restated
Primary storage systems $ 17,058  23  % $ 11,410  11  % $ 28,507  17  % $ 29,060  15  %
Secondary storage systems 20,340  27  % 45,345  46  % 61,912  36  % 79,280  40  %
Device and media 7,893  10  % 8,999  9  % 16,085  10  % 20,602  10  %
Service 28,161  37  % 31,333  31  % 56,476  34  % 63,538  32  %
Royalty 2,228  3  % 3,478  3  % 5,194  3  % 6,918  3  %
Total revenue1
$ 75,680  100  % $ 100,565  100  % $ 168,174  100  % $ 199,398  100  %

1 Subscription revenue of $1.0 million and $0.9 million and $2.5 million and $1.8 million was allocated to Primary and Secondary storage systems for the three and six months ended September 30, 2023 and 2022, respectively.


Contract Balances

The following tables presents the Company’s contract liabilities and certain information related to this balance as of March 31, 2023 and September 30, 2023 (in thousands): 

March 31, 2023
As Restated
Deferred revenue $ 115,302 
Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period $ 83,113 
September 30, 2023
Deferred revenue $ 106,033 
Revenue recognized in the period from amounts included in contract liabilities at the beginning of the period $ 48,210 

Remaining Performance Obligations

Total remaining performance obligations (“RPO”) which is contracted but not recognized revenue was $135.7 million as of September 30, 2023. 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 $135.7 million RPO at the end of the second quarter of fiscal 2024, we expect to recognize approximately 66% over the next 12 months, and the remainder over the next 13 to 60 months.


Remaining performance obligations consisted of the following (in thousands):
Current Non-Current Total
As of September 30, 2023
 $ 89,616  $ 46,037  $ 135,653 

Deferred revenue primarily consists of amounts that have been invoiced but have not yet been recognized as revenue including performance obligations pertaining to subscription services. The table below reflects our deferred revenue as of March 31, 2023 and September 30, 2023 (in thousands):
Deferred revenue by period
Total 1 year or less 1 – 3 Years 3 year or greater
Service revenue $ 107,331  $ 73,195  $ 34,030  $ 106 
Subscription revenue 7,971  6,612  1,359  — 
     Total at March 31, 2023 $ 115,302  $ 79,807  $ 35,389  $ 106 
Deferred revenue by period
Total 1 year or less 1 – 3 Years 3 year or greater
Service revenue 99,163  65,942  27,454  $ 5,767 
Subscription revenue $ 6,870  $ 4,754  $ 1,614  $ 502 
     Total at September 30, 2023 $ 106,033  $ 70,696  $ 29,068  $ 6,269