As previously disclosed in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024 and in the Original 2024 Annual Report and discussed in Note 1 “Organization and Summary of Significant Accounting Policies”, separate from the restatement discussed in Note 1 “Organization and Summary of Significant Accounting Policies”, in preparing the condensed consolidated financial statements as of and for the three and nine months ended September 30, 2024, we identified errors in our previously issued financial statements related to our historical conclusions of principal vs. agent accounting of certain reseller arrangements under ASC 606 and concluded they were not material to any previously issued financial statements.

The identified errors impacted our previously issued 2021 and 2022 annual financial statements, 2023 quarterly and annual financial statements, and 2024 quarterly financial statements through June 30, 2024. Consistent with revising our quarterly financial statements as of September 30, 2024, we made adjustments to the prior period amounts presented in these financial statements accordingly. Furthermore, we made adjustments to correct for other previously identified immaterial errors.

The following tables reflect the impact of the revision to the specific line items presented in our previously reported (a) consolidated balance sheet as of December 31, 2023; (b) consolidated statements of operations and comprehensive income for the years ended December 31, 2023 and December 31, 2022; (c) consolidated statements of stockholders' equity for the years ended December 31, 2023 and December 31, 2022; and (d) consolidated statements of cash flows for the years ended December 31, 2023 and December 31, 2022.


As of December 31, 2023	As Reported		Revision		As Revised

Accounts and notes receivable, net of allowance of $2,392 as of December 31, 2023	$	417,690	$	(4,729)	$	412,961
Contract assets, net	275,779		11,453		287,232
Prepaid expenses and other current assets	112,786		(9,731)		103,055
Total current assets	2,396,649		(3,007)		2,393,642
Deferred tax assets, net	229,513		(1,729)		227,784
Long-term contract assets, net	77,710		6,672		84,382
Other long-term assets	220,638		(29,607)		191,031
Total assets	3,436,845		(27,671)		3,409,174
Accounts payable	88,326		(22,474)		65,852
Accrued liabilities	188,230		5,320		193,550
Current portion of deferred revenue	491,691		(21,276)		470,415
Total current liabilities	799,969		(38,430)		761,539
Deferred revenue, net of current portion	281,852		(10,951)		270,901
Other long-term liabilities	2,936		17,979		20,915
Total liabilities	1,824,811		(31,402)		1,793,409
Retained earnings	431,249		3,731		434,980
Total stockholders’ equity	1,612,034		3,731		1,615,765
Total liabilities and stockholders’ equity	$	3,436,845	$	(27,671)	$	3,409,174


Year Ended December 31, 2023	As Reported		Revision		As Revised

Net sales from products	$	967,711	$	(3,709)	$	964,002
Net sales from services	595,680		1,017		596,697
Net sales	1,563,391		(2,692)		1,560,699
Cost of product sales	450,718		(3,010)		447,708
Cost of service sales	157,291		247		157,538
Cost of sales	608,009		(2,763)		605,246
Gross margin	955,382		71		955,453
Selling, general and administrative	496,874		(1,990)		494,884
Total operating expenses	800,593		(1,990)		798,603
Income from operations	154,789		2,061		156,850
Income before provision for income taxes	155,000		2,061		157,061
Provision for (benefit from) income taxes	(19,227)		505		(18,722)
Net income	$	174,227	$	1,556	$	175,783
Net income per common and common equivalent shares - Basic	$	2.35	$	0.02	$	2.37
Net income per common and common equivalent shares - Diluted	$	2.31	$	0.02	$	2.33
Comprehensive income	$	170,727	$	1,556	$	172,283


Year Ended December 31, 2022	As Reported		Revision		As Revised

Net sales from products	$	801,388	$	(4,211)	$	797,177
Net sales from services	388,547		1,419		389,966
Net sales	1,189,935		(2,792)		1,187,143
Cost of product sales	363,219		(2,310)		360,909
Cost of service sales	98,078		2,043		100,121
Cost of sales	461,297		(267)		461,030
Gross margin	728,638		(2,525)		726,113
Selling, general and administrative	401,575		(2,245)		399,330
Total operating expenses	635,385		(2,245)		633,140
Income from operations	93,253		(280)		92,973
Income before provision for income taxes	196,518		(280)		196,238
Provision for (benefit from) income taxes	49,379		(71)		49,308
Net income	$	147,139	$	(209)	$	146,930
Comprehensive income	$	141,277	$	(209)	$	141,068


	As Reported				Revision				As Revised
	Retained Earnings		Total Stockholders’ Equity		Retained Earnings		Total Stockholders’ Equity		Retained Earnings		Total Stockholders’ Equity

Balance, December 31, 2021	$	109,883	$	1,047,849	$	2,384	$	2,384	$	112,267	$	1,050,233
Net income	147,139		147,139		(209)		(209)		146,930		146,930
Balance, December 31, 2022	257,022		1,268,491		2,175		2,175		259,197		1,270,666
Net income	174,227		174,227		1,556		1,556		175,783		175,783
Balance, December 31, 2023	$	431,249	$	1,612,034	$	3,731	$	3,731	$	434,980	$	1,615,765


Year Ended December 31, 2023	As Reported		Revision		As Revised

Cash flows from operating activities:
Net income	$	174,227	$	1,556	$	175,783
Deferred income taxes	(73,002)		505		(72,497)
Provision for bad debts and inventory	1,090		4,394		5,484
Change in assets and liabilities:
Receivables and contract assets	(172,524)		(6,465)		(178,989)
Inventory	(71,896)		(5,730)		(77,626)
Deferred revenue	164,043		(17,224)		146,819
Accounts payable, accrued and other liabilities	64,384		945		65,329
Other - net	(102,370)		22,019		(80,351)
Net cash provided by operating activities	$	189,263	$	—	$	189,263


Year Ended December 31, 2022	As Reported		Revision		As Revised

Cash flows from operating activities:
Net income	$	147,139	$	(209)	$	146,930
Deferred income taxes	22,090		(71)		22,019
Provision for bad debts and inventory	699		2		701
Change in assets and liabilities:
Receivables and contract assets	(73,228)		(4,998)		(78,226)
Inventory	(95,987)		976		(95,011)
Deferred revenue	159,718		(4,152)		155,566
Accounts payable, accrued and other liabilities	80,757		221		80,978
Other - net	(52,207)		8,231		(43,976)
Net cash provided by operating activities	$	235,361	$	—	$	235,361


	As Reported
Three Months Ended	December 31, 2024		September 30, 2024

Net sales	$	575,145	$	544,274
Gross margin	345,849		330,747
Income (loss) from operations	(15,755)		24,081
Net income	135,184		67,025
Net income per common and common equivalent shares - Basic	$	1.77	$	0.89
Net income per common and common equivalent shares - Diluted	$	1.67	$	0.86

As discussed within Note 1 “Organization and Summary of Significant Accounting Policies”, we recorded an out of period adjustment in the three months ended December 31, 2024. This adjustment reduced revenue and net income by $5.1 million and $3.7 million, respectively. Of this total adjustment, $3.3 million and $2.3 million for revenue and net income, respectively, pertained to prior fiscal years. These errors originated in prior years and were immaterial to each respective prior period.


Three Months Ended June 30, 2024	As Reported		Revision		As Revised

Net sales from products	$	295,185	$	(2,422)	$	292,763
Net sales from services	208,914		1,559		210,473
Net sales	504,099		(863)		503,236
Cost of product sales	145,154		(2,527)		142,627
Cost of service sales	55,210		(757)		54,453
Cost of sales	200,364		(3,284)		197,080
Gross margin	303,735		2,421		306,156
Sales, general and administrative	169,427		1,537		170,964
Total operating expenses	270,861		1,537		272,398
Income from operations	32,874		884		33,758
Income before provision for income taxes	50,590		884		51,474
Provision for (benefit from) income taxes	9,793		208		10,001
Net income	$	40,797	$	676	$	41,473
Net income per common and common equivalent shares - Basic	$	0.54	$	0.01	$	0.55
Net income per common and common equivalent shares - Diluted	$	0.53	$	—	$	0.53
Comprehensive income	$	38,189	$	676	$	38,865


Three Months Ended December 31, 2023	As Reported		Revision		As Revised

Net sales from products	$	258,405	$	(1,966)	$	256,439
Net sales from services	173,737		200		173,937
Net sales	432,142		(1,766)		430,376
Cost of product sales	125,664		(1,764)		123,900
Cost of service sales	42,591		(107)		42,484
Cost of sales	168,255		(1,871)		166,384
Gross margin	263,887		105		263,992
Sales, general and administrative	137,106		167		137,273
Total operating expenses	221,078		167		221,245
Income from operations	42,809		(62)		42,747
Income before provision for income taxes	55,802		(62)		55,740
Provision for (benefit from) income taxes	(1,469)		148		(1,321)
Net income	$	57,271	$	(210)	$	57,061
Net income per common and common equivalent shares - Basic	$	0.76	$	—	$	0.76
Net income per common and common equivalent shares - Diluted	$	0.75	$	—	$	0.75
Comprehensive income	$	59,461	$	(210)	$	59,251


Three Months Ended September 30, 2023	As Reported		Revision		As Revised

Net sales from products	$	256,443	$	(1,388)	$	255,055
Net sales from services	157,158		1,065		158,223
Net sales	413,601		(323)		413,278
Cost of product sales	116,278		(1,665)		114,613
Cost of service sales	42,051		(42)		42,009
Cost of sales	158,329		(1,707)		156,622
Gross margin	255,272		1,384		256,656
Sales, general and administrative	123,279		(922)		122,357
Total operating expenses	200,159		(922)		199,237
Income from operations	55,113		2,306		57,419
Income before provision for income taxes	69,423		2,306		71,729
Provision for (benefit from) income taxes	10,026		394		10,420
Net income	$	59,397	$	1,912	$	61,309
Net income per common and common equivalent shares - Basic	$	0.79	$	0.03	$	0.82
Net income per common and common equivalent shares - Diluted	$	0.78	$	0.03	$	0.81
Comprehensive income	$	53,254	$	1,912	$	55,166


Three Months Ended June 30, 2023	As Reported		Revision		As Revised

Net sales from products	$	233,474	$	214	$	233,688
Net sales from services	141,131		(2,115)		139,016
Net sales	374,605		(1,901)		372,704
Cost of product sales	101,192		(254)		100,938
Cost of service sales	41,292		133		41,425
Cost of sales	142,484		(121)		142,363
Gross margin	232,121		(1,780)		230,341
Sales, general and administrative	119,922		(614)		119,308
Total operating expenses	191,862		(614)		191,248
Income from operations	40,259		(1,166)		39,093
Income (loss) before provision for income taxes	(12,109)		(1,166)		(13,275)
Provision for (benefit from) income taxes	(24,529)		(260)		(24,789)
Net income	$	12,420	$	(906)	$	11,514
Net income per common and common equivalent shares - Basic	$	0.17	$	(0.01)	$	0.16
Net income per common and common equivalent shares - Diluted	$	0.16	$	(0.01)	$	0.15
Comprehensive income	$	11,013	$	(906)	$	10,107


Three Months Ended March 31, 2023	As Reported		Revision		As Revised

Net sales from products	$	219,389	$	(569)	$	218,820
Net sales from services	123,654		1,867		125,521
Net sales	343,043		1,298		344,341
Cost of product sales	107,584		673		108,257
Cost of service sales	31,357		263		31,620
Cost of sales	138,941		936		139,877
Gross margin	204,102		362		204,464
Sales, general and administrative	116,567		(621)		115,946
Total operating expenses	187,494		(621)		186,873
Income from operations	16,608		983		17,591
Income before provision for income taxes	41,884		983		42,867
Provision for (benefit from) income taxes	(3,255)		223		(3,032)
Net income	$	45,139	$	760	$	45,899
Net income per common and common equivalent shares - Basic	$	0.62	$	0.01	$	0.63
Net income per common and common equivalent shares - Diluted	$	0.61	$	0.01	$	0.62
Comprehensive income	$	46,999	$	760	$	47,759