v3.25.1
Revenue and Accounts Receivable, Net
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Revenue and Accounts Receivable, Net Revenue and Accounts Receivable, Net
Revenue Details    

The pattern of revenue recognition was as follows:
Three Months Ended March 31,
(In thousands)20252024
Goods and services transferred at a point in time$71,391 $74,404 
Goods and services transferred over time20,93517,496
Net sales$92,326 $91,900 


Our net sales to external customers by channel were as follows:
Three Months Ended March 31,
(In thousands)20252024
Connected home (1)
$31,729 $24,171 
Home entertainment (2)
60,59767,729
Net sales$92,326 $91,900 
(1)The connected home channel represents climate control, smart home and security product sales sold primarily to HVAC, security, home automation and home appliance customers.
(2)The home entertainment channel represents entertainment-related product sales sold primarily to video service providers, consumer electronics original equipment manufacturers ("OEMs") and retailers. It also includes sales associated with intellectual property licensing and our cloud-based software solution.
Our net sales to external customers by geographic area were as follows:
Three Months Ended March 31,
(In thousands)20252024
United States$30,558 $26,712 
Asia (excluding PRC)18,74718,884 
Europe20,69817,539
Latin America6,5508,241
PRC8,91814,401
Other6,8556,123
Total net sales$92,326 $91,900 

Specific identification of the customer billing location was the basis used for attributing revenues from external customers to geographic areas.

Accounts Receivable, Net

Accounts receivable, net were as follows:
(In thousands)March 31, 2025December 31, 2024
Trade receivables, gross$85,967 $93,773 
Allowance for credit losses(1,812)(1,863)
Allowance for sales returns(312)(383)
Trade receivables, net83,843 91,527 
Other (1)
22,164 22,655 
Accounts receivable, net$106,007 $114,182 
(1)Other accounts receivable is primarily comprised of supplier, supplier rebate and interest receivables.
(2)Accounts receivable, net at December 31, 2023 was $112.6 million.

Allowance for Credit Losses

Changes in the allowance for credit losses were as follows:
(In thousands)Three Months Ended March 31,
20252024
Balance at beginning of period$1,863 $815 
Additions (reductions) to costs and expenses19 — 
Write-offs/Foreign exchange effects(70)(12)
Balance at end of period$1,812 $803 
Contract Assets

Contract assets were $9.5 million and $10.3 million at March 31, 2025 and December 31, 2024, respectively. The change in balances between periods is due to the fluctuation of custom product inventory balances for which we have an enforceable right to payment for performance completed to date.

Contract Liabilities

We have current and non-current contract liability balances primarily consisting of cash received in advance of providing our cloud-based software services. Contract liabilities are included within other accrued liabilities and other long-term liabilities in our consolidated balance sheets.

Changes in the carrying amount of contract liabilities were as follows: 
(In thousands)Three Months Ended March 31,
20252024
Balance at beginning of period$3,237 $3,501 
Payments received2,193 1,837 
Revenue recognized(1,150)(938)
Foreign exchange effects5 (16)
Balance at end of period$4,285 $4,384 

Significant Customers

Net sales to the following customers totaled more than 10% of our net sales: 
 Three Months Ended
20252024
 $ (thousands)% of Net Sales$ (thousands)% of Net Sales
Daikin Industries Ltd. $16,365 17.7 %$12,109 13.2 %
Comcast Communications$10,349 11.2 %
(1)
(1)
Charter Communications
(1)
(1)
$10,194 11.1 %
(1)    Sales associated with this customer did not total more than 10% of our net sales for the indicated period.

There were no significant customers that totaled more than 10% of our accounts receivable at March 31, 2025 or December 31, 2024.