v3.25.1
Revenue
 9 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue
Note 2. Revenue

Disaggregation of Revenue

The Company disaggregates revenue by type of product and geographical region to depict the nature, amount, and timing of revenue and cash flows. Service and software revenues, which are less than 10%, are not a significant component of total revenue and are aggregated with server and storage systems revenue.

The following is a summary of net sales by product type (in thousands):

 Three Months Ended
March 31,		Nine Months Ended
March 31,
 2025202420252024
Server and storage systems$4,458,895 $3,698,446 $15,693,826 $9,100,616 
Subsystems and accessories141,018 151,620 521,305 534,046 
Total$4,599,913 $3,850,066 $16,215,131 $9,634,662 

Server and storage systems constitute an assembly and integration of subsystems and accessories, software, and related services. Subsystems and accessories are comprised of server boards, chassis and accessories.

Revenue related to services for the three months ended March 31, 2025 and 2024 was $57.2 million and $38.3 million, respectively, which is recognized over time ratably over the contract term. Revenue related to services for the nine months ended March 31, 2025 and 2024 was $161.8 million and $110.7 million, respectively, which is recognized over time ratably over the contract term.
International net sales are based on the country and geographic region to which the products were shipped. The following is a summary for the three and nine months ended March 31, 2025 and 2024, of net sales by geographic region (in thousands):

 Three Months Ended
March 31,		Nine Months Ended
March 31,
 2025202420252024
United States$2,768,181 $2,685,213 $10,856,490 $6,910,312 
Asia1,354,346 764,614 3,077,166 1,646,302 
Europe290,108 297,653 1,869,722 776,949 
Other187,278 102,586 411,753 301,099 
Total$4,599,913 $3,850,066 $16,215,131 $9,634,662 

Contract Balances

Generally, the payment terms of the Company’s offerings range from 30 to 60 days. In certain instances, customers may prepay for products and services in advance of delivery. Receivables represent the Company’s unconditional right to consideration for performance obligations either partially or fully completed.

Contract assets are rights to consideration in exchange for goods or services that the Company has transferred to a customer when such right is conditional on something other than the passage of time. Such contract assets are insignificant to the Company’s condensed consolidated financial statements.

Contract liabilities consist of deferred revenue and relate to amounts invoiced to or advance consideration received from customers, which precede the Company’s satisfaction of the associated performance obligations. The Company’s deferred revenue primarily results from customer payments received upfront for extended warranties and on-site services because these performance obligations are satisfied over time. Additionally, at times, deferred revenue may fluctuate due to the timing of non-refundable advance consideration received from non-cancelable contracts relating to the sale of future products. Revenue recognized during the three and nine months ended March 31, 2025, which was included in the opening deferred revenue balance as of June 30, 2024, of $416.4 million, was $38.5 million and $154.0 million, respectively. Revenue recognized during the three and nine months ended March 31, 2024, which was included in the opening deferred revenue balance as of June 30, 2023, of $304.4 million, was $28.9 million and $104.1 million, respectively.

Deferred revenue increased $249.4 million as of March 31, 2025 as compared to June 30, 2024. This increase was mainly due to the deferral on invoiced amounts for service contracts during the period exceeding the recognized revenue from contracts entered into in prior periods. This was accompanied by a $116.7 million increase in non-refundable advance consideration or cash consideration received from customers which preceded the Company's satisfaction of the associated performance obligations relating to product sales which are expected to be fulfilled in the next 12 months.

Transaction Price Allocated to the Remaining Performance Obligations

Remaining performance obligations represent in aggregate the amount of transaction price that has been allocated to performance obligations not delivered, or only partially delivered, as of the end of the reporting period. The Company applies the exemption to not disclose information about remaining performance obligations that are part of a contract that has an original expected duration of one year or less. These performance obligations generally consist of services, such as on-site services, including integration services and extended warranty services that are contracted for one year or less, and products for which control has not yet been transferred. For contracts with a duration of more than one year, the value of the transaction price allocated to the remaining performance obligations as of March 31, 2025 was approximately $665.8 million. The Company expects to recognize approximately 53% of such value in the next 12 months, and the remainder thereafter.