Company: PENG
Filing Date: 2025-01-08
Form Type: 10-Q
Source: 0001628280-25-000944
Chunk: 85

Company: Penguin Solutions, Inc.
Filing Date: 2025-01-08
Form: 10-Q
Item: Part II, Item 8
Chunk 85
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ancesNet Sales and Gross BillingsWe provide certain services on an agent basis, whereby we procure product, materials and services on behalf of our customers and then resell such product, materials or services to our customers. As a result, we recognize only the amount related to the agent component as revenue in our results of operations. The cost of products, materials and services invoiced to our customers under these arrangements, but not recognized as revenue or cost of sales in our results of operations, were as follows:Three Months EndedNovember 29,2024December 1,2023Cost of materials and services invoiced in connection with logistics services$212,947 $108,969 Customer Contract BalancesAs ofNovember 29,2024August 30,2024Contract assets (1)$1,389 $1,801 Contract liabilities: (2)Deferred revenue$53,960 $76,178 Customer advances57,869 6,036 $111,829 $82,214 (1)Contract assets are included in other current and noncurrent assets.(2)Contract liabilities are included in other current and noncurrent liabilities based on the timing of when our customers are expected to take control of the asset or receive the benefit of the service.Contract assets represent amounts recognized as revenue for which we do not have the unconditional right to consideration.Deferred revenue represents amounts received from customers in advance of satisfying performance obligations. As of November 29, 2024, we expect to recognize revenue of $41.3 million of the balance of $54.0 million in the next 12 months and the remaining amount thereafter. In the first quarter of 2025, we recognized revenue of $34.6 million from satisfying performance obligations related to amounts included in deferred revenue as of August 30, 2024. In addition, as of November 29, 2024, other current liabilities included $19.9 million that is not included in the above remaining performance obligations. While this liability relates to amounts received from customers in connection with arrangements that are cancellable at the customer’s discretion, we have not had to refund any such amounts to our customers in the periods presented. Customer advances, which is included in other current liabilities in the accompanying consolidated balance sheets, represent amounts received from customers for advance payments to secure product. In the first quarter of 2025, we recognized revenue of $0.7 million from satisfying performance obligations related to amounts included in customer advances as of August 30, 202