v3.26.1
Revenue and Accounts Receivable, Net
 3 Months Ended
Mar. 31, 2026
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)20262025
Goods and services transferred at a point in time$64,739 $71,391 
Goods and services transferred over time14,29720,935
Net sales$79,036 $92,326 

Our net sales to external customers by channel were as follows:
Three Months Ended March 31,
(In thousands)20262025
Connected home (1)
$28,288 $31,729 
Home entertainment (2)
50,74860,597
Net sales$79,036 $92,326 
(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)20262025
United States$22,720 $30,558 
Asia (excluding PRC)16,52618,747 
Europe23,37820,698
Latin America5,2176,550
PRC7,9478,918
Other3,2486,855
Total net sales$79,036 $92,326 
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, 2026December 31, 2025
Trade receivables, gross$69,600 $71,410 
Allowance for credit losses(703)(723)
Allowance for sales returns(256)(283)
Trade receivables, net68,641 70,404 
Other (1)
8,217 8,916 
Accounts receivable, net (2)
$76,858 $79,320 
(1)Other accounts receivable is primarily comprised of supplier, supplier rebate and interest receivables.
(2)Accounts receivable, net at December 31, 2024 was $114.2 million.

Allowance for Credit Losses

Changes in the allowance for credit losses were as follows:
(In thousands)Three Months Ended March 31,
20262025
Balance at beginning of period$723 $1,863 
Additions (reductions) to costs and expenses— 19 
Cash receipts— — 
Write-offs/Foreign exchange effects(20)(70)
Balance at end of period$703 $1,812 

Contract Assets

Contract assets were $7.3 million and $8.1 million at March 31, 2026 and December 31, 2025, 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,
20262025
Balance at beginning of period$2,879 $3,237 
Payments received1,482 2,193 
Revenue recognized(1,159)(1,150)
Foreign exchange effects2 5 
Balance at end of period$3,204 $4,285 
Significant Customers

Net sales to the following customers totaled more than 10% of our net sales: 
 Three Months Ended March 31,
20262025
 $ (thousands)% of Net Sales$ (thousands)% of Net Sales
Daikin Industries Ltd. $14,862 18.8 %$16,365 17.7 %
Comcast Communications$9,017 11.4 %$10,349 11.2 %

Trade receivables associated with this significant customer that totaled more than 10% of our accounts receivable, net was as follows:
March 31, 2026December 31, 2025
$ (thousands)% of Accounts Receivable, Net$ (thousands)% of Accounts Receivable, Net
Daikin Industries Ltd. $9,226 12.0 %$9,766 12.3 %