Note 13. Deferred Revenue

Deferred revenue, comprising individually immaterial amounts for extended warranties, enhanced product maintenance and advance payments on NRE services contracts, represents contracted revenue that we have not yet recognized.

The following table presents the changes in deferred revenue for the indicated periods (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

Balance at beginning of period

$

1,968

 

 

$

1,985

 

Deferral of revenue

 

3,689

 

 

 

2,930

 

Recognition of deferred revenue

 

(3,176

)

 

 

(2,947

)

Balance at end of period

$

2,481

 

 

$

1,968

 

 

During 2025, we recognized $1.8 million revenue which we included in deferred revenue as of December 31, 2024. During 2024, we recognized $1.4 million revenue which we included in deferred revenue as of December 31, 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 9, 2026Showing above
2024Feb 10, 2025
2023Feb 12, 2024
2022Feb 13, 2023
2021Feb 14, 2022
2020Feb 17, 2021
2019Mar 2, 2020
2018Feb 28, 2019

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.