v3.25.3
Revenue Recognition
 9 Months Ended
Sep. 28, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The following table summarizes disaggregated revenue information by geographic area based upon the customer's country of domicile (in thousands):
Three-months EndedNine-months Ended
September 28, 2025September 29, 2024September 28, 2025September 29, 2024
Americas$104,513 $82,293 $296,499 $250,590 
Europe74,687 57,246 190,640 166,751 
Greater China49,708 45,301 121,502 129,760 
Other Asia47,984 49,902 133,380 137,730 
276,892 234,742 742,021 684,831 

The following table summarizes disaggregated revenue information by revenue type (in thousands):
Three-months EndedNine-months Ended
September 28, 2025September 29, 2024September 28, 2025September 29, 2024
Standard products and services (1)
232,619 203,182 653,164 591,670 
Application-specific customer solutions44,273 31,560 88,857 93,161 
276,892 234,742 742,021 684,831 
(1) In July 2025, the Company entered into a commercial partnership with a strategic channel partner (the “Partner”) to better serve Original Equipment Manufacturer (OEM) customers in the specialized field of medical lab automation. Through 2030, the Partner has exclusive rights to sell machine vision hardware into these applications in combination with licensed Company software, in exchange for annual minimum license fees paid to the Company. The contract includes a substantive termination penalty if the contract is cancelled by the Partner. As such, the Company recognized the minimum license fees as revenue in the third quarter of 2025, at the point in time when the Partner received access to the software. Although the license revenue was recognized upfront, payments are expected to be received over the duration of the partnership, resulting in unbilled revenue. Also in the third quarter of 2025, the Company transferred related inventories at cost to the Partner. As a result of the upfront recognition of the license revenue and transfer of inventories, the Company recognized one-time revenue of approximately $13 million in the third quarter of 2025, which is included in the "Standard products and services" amount in the table above for the three-month and nine-month periods ended September 28, 2025.
Costs to Fulfill a Contract
Costs to fulfill a contract are included in "Prepaid expenses and other current assets" on the Consolidated Balance Sheet and amounted to $11,467,000 and $10,705,000 as of September 28, 2025 and December 31, 2024, respectively.
Accounts Receivable, Contract Assets, and Contract Liabilities
Accounts receivable represent amounts billed and currently due from customers which are reported at their net estimated realizable value. The Company maintains an allowance against its accounts receivable for credit losses. Contract assets consist of unbilled revenue which arises when revenue is recognized in advance of billing for certain application-specific customer solutions contracts. Contract liabilities consist of deferred revenue and customer deposits which arise when amounts are billed to or collected from customers in advance of revenue recognition.
The following table summarizes the allowance for credit losses activity for the nine-month period ended September 28, 2025 (in thousands):
Balance as of December 31, 2024$827 
Increases to the allowance for credit losses227 
Write-offs, net of recoveries(303)
Foreign exchange rate changes(19)
Balance as of September 28, 2025$732 
The following table summarizes the deferred revenue and customer deposits activity for the nine-month period ended September 28, 2025 (in thousands):
Balance as of December 31, 2024$25,035 
Deferral of revenue billed in the current period, net of recognition18,103 
Recognition of revenue deferred in prior period(19,956)
Foreign exchange rate changes585 
Balance as of September 28, 2025$23,767 
As a practical expedient, the Company has elected not to disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations for our contracts that have an original expected duration of less than one year. The remaining unsatisfied performance obligations for our contracts that have an original expected duration of more than one year, primarily related to extended warranties, are not material.