QUANTUM CORP DE

NOTE 2: REVENUE

Based on how the Company manages its business, the Company has determined that it currently operates inone reportable segment. The Company operates inthree geographic regions: (a) Americas; (b) Europe, Middle East and Africa (“EMEA”); and (c) Asia Pacific (“APAC”). Revenue by geography is based on the location of the customer from which the revenue is earned.

In the following table, revenue is disaggregated by major product offerings and geographies (in thousands):

1 Revenue for Americas geographic region outside of the United States is not significant.

2 Royalty revenue is not allocatable to geographic regions.

Revenue by Solution

1 Subscription revenue of $0.9 million and $2.6 million was allocated to Primary and Secondary storage systems for the quarters ended June 30, 2024 and 2023, respectively.

Contract Balances

The following table presents the Company’s contract liabilities and certain information related to this balance as of and for the three months ended June 30, 2024 and March 31, 2024 (in thousands):

Remaining Performance Obligations

Total remaining performance obligations (“RPO”) which is contracted but not recognized revenue was $138.1 million as of June 30, 2024. RPO consists of both deferred revenue and non-cancelable amounts that are expected to be invoiced and recognized as revenue in future periods and excludes variable consideration related to sales-based royalties. Of the $138.1 million RPO at the end of the first quarter of fiscal 2024, we expect to recognize approximately 29% over the next 13 to 60 months.

Remaining performance obligations consisted of the following (in thousands):

Deferred revenue primarily consists of amounts invoiced and paid but not recognized as revenue including performance obligations pertaining to subscription services. The table below reflects our deferred revenue as of June 30, 2024 (in thousands):