REVENUE RECOGNITION (Tables)

6 Months Ended

Jun. 30, 2026

REVENUE RECOGNITION

Schedule of timing of performance obligation


		When Performance Obligation is Typically
Performance Obligation		Satisfied		When Payment is Typically Due
Software and Product Revenue
Software licenses (perpetual or term)		For perpetual licenses, typically when made available for download (point in time); for term-based licenses, at the beginning of the specified term (point in time)		Generally, within 30-60 days of invoicing, except for term licenses which may be paid for over time
Software licenses (subscription)		Upon activation of hosted site (over time)		Generally, within 30-60 days of invoicing
Hardware		When control of the hardware passes to the customer; typically, upon delivery (point in time)		Generally, within 30-60 days of invoicing
Software upgrades		Upon transfer of control; typically, when made available for download (point in time)		Generally, within 30-60 days of invoicing
Customer Support Revenue
Customer support		Ratably over the course of the support contract (over time)		Generally, within 30-60 days of invoicing
Professional Services
Other professional services (excluding training services)		As work is performed (over time), typically on the input method based on hours incurred		Generally, within 30-60 days of invoicing (upon completion of services)
Training		As the training is delivered (over time), typically one to five days		Generally, within 30-60 days of services being performed

Schedule of disaggregation of revenue


							Service revenue
	Product			Service revenue			(professional
Three months ended June 30, 2026	revenue			(maintenance)			services)			Total revenue
United States	$	37,011		$	34,977		$	17,379		$	89,367
Europe, Middle East and Africa		24,695			15,398			8,999			49,092
Asia Pacific		30,291			9,407			2,940			42,638
Other		3,563			6,240			1,440			11,243
	$	95,560		$	66,022		$	30,758		$	192,340


							Service revenue
	Product			Service revenue			(professional
Three months ended June 30, 2025	revenue			(maintenance)			services)			Total revenue
United States	$	59,101		$	33,546		$	23,575		$	116,222
Europe, Middle East and Africa		25,534			18,362			8,217			52,113
Asia Pacific		27,966			9,708			4,078			41,752
Other		2,456			6,681			1,359			10,496
	$	115,057		$	68,297		$	37,229		$	220,583


							Service revenue
	Product			Service revenue			(professional
Six months ended June 30, 2026	revenue			(maintenance)			services)			Total revenue
United States	$	57,952		$	68,710		$	35,283		$	161,945
Europe, Middle East and Africa		41,657			30,081			16,424			88,162
Asia Pacific		58,225			18,637			6,703			83,565
Other		5,840			12,261			3,173			21,274
	$	163,674		$	129,689		$	61,583		$	354,946


							Service revenue
	Product			Service revenue			(professional
Six months ended June 30, 2025	revenue			(maintenance)			services)			Total revenue
United States	$	88,442		$	66,870		$	43,605		$	198,917
Europe, Middle East and Africa		44,994			35,745			16,873			97,612
Asia Pacific		59,005			19,108			6,818			84,931
Other		4,607			12,996			2,799			20,402
	$	197,048		$	134,719		$	70,095		$	401,862

The Company’s product revenue from its direct sales program and from indirect sales through its channel partner program for the three and six months ended June 30, 2026 and 2025 was as follows (in thousands):


		Three months ended						Six months ended
		June 30,			June 30,			June 30,			June 30,
		2026			2025			2026			2025
Indirect sales through channel partner program		$	32,566		$	38,988		$	51,895		$	61,723
Direct sales			62,994			76,069			111,779			135,325
		$	95,560		$	115,057		$	163,674		$	197,048

The Company’s product revenue from sales to enterprise customers and from sales to service provider customers for the three and six months ended June 30, 2026 and 2025 was as follows (in thousands):


		Three months ended						Six months ended
		June 30,			June 30,			June 30,			June 30,
		2026			2025			2026			2025
Sales to enterprise customers		$	39,335		$	39,052		$	60,851		$	62,284
Sales to service provider customers			56,225			76,005			102,823			134,764
		$	95,560		$	115,057		$	163,674		$	197,048

The Company’s product revenue and service revenue components by segment for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):


		Three months ended						Six months ended
		June 30,			June 30,			June 30,			June 30,
		2026			2025			2026			2025
Product revenue:
Cloud and Edge		$	37,722		$	56,112		$	63,981		$	87,973
IP Optical Networks			57,838			58,945			99,693			109,075
Total product revenue		$	95,560		$	115,057		$	163,674		$	197,048

Service revenue:
Maintenance:
Cloud and Edge		$	51,878		$	51,816		$	102,110		$	102,584
IP Optical Networks			14,144			16,481			27,579			32,135
Total maintenance revenue			66,022			68,297			129,689			134,719
Professional services:
Cloud and Edge			20,905			29,120			43,926			54,082
IP Optical Networks			9,853			8,109			17,657			16,013
Total professional services revenue			30,758			37,229			61,583			70,095
Total service revenue		$	96,780		$	105,526		$	191,272		$	204,814

Schedule of customer assets and liabilities

The changes in the Company’s accounts receivable, unbilled receivables and deferred revenue balances for the six months ended June 30, 2026 were as follows (in thousands):


				Unbilled			Deferred			Deferred
	Accounts			accounts			revenue			revenue
	receivable			receivable			(current)			(long-term)
Balance at January 1, 2026	$	161,007		$	70,878		$	124,425		$	31,654
Increase (decrease), net		(17,660)			5,978			(6,092)			2,978
Balance at June 30, 2026	$	143,347		$	76,856		$	118,333		$	34,632