REVENUE FROM CONTRACTS WITH CUSTOMERS
The Company assesses revenues based upon the nature or type of goods or services it provides and the geographic location of the customer facility. The following tables present disaggregated revenue information:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Single Wafer Cleaning, Tahoe and Semi-Critical Cleaning Equipment | $ | 625,964 | | | $ | 578,887 | | | $ | 403,851 | |
| ECP (front-end and packaging), Furnace and Other Technologies | 199,551 | | | 151,057 | | | 103,356 | |
| Advanced Packaging (excluding ECP), Services & Spares | 75,794 | | | 52,174 | | | 50,516 | |
| Total revenue by product category | $ | 901,309 | | | $ | 782,118 | | | $ | 557,723 | |
For the years ended December 31, 2025 and 2024, substantially all revenue was derived from customers in mainland China, and therefore, no geographical segment information is presented.
Contract liabilities balances were as follows as of:
| | | | | | | | | | | |
| December 31 |
| 2025 | | 2024 |
| Advances from customers | $ | 187,809 | | | $ | 243,949 | |
| Deferred revenue | 17,388 | | | 8,537 | |
| Total contract liabilities | $ | 205,197 | | | $ | 252,486 | |
During the year ended December 31, 2025, advances from customers decreased by $56,140 primarily due to more revenue recognized upon acceptance of first tools by customers than the payments made by customers for first tools.
Below are revenues recognized from amounts included in contract liabilities at the beginning of the year:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Revenue recognized from amounts included in contract liabilities at the beginning of the year | $ | 153,858 | | $ | 124,069 | | $ | 124,069 | | | $ | 97,370 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.