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Note 3 - Revenue From Contracts With Customers
 3 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

3)     Revenue From Contracts With Customers

 

Most of the Company’s contracts have a single performance obligation which represents the product or service being sold to the customer. Some contracts include multiple performance obligations such as a product and the related installation and/or extended warranty. Additionally, most of the Company’s contracts offer assurance type warranties in connection with the sale of a product to customers. Assurance type warranties provide a customer with assurance that the product complies with agreed-upon specifications. Assurance type warranties do not represent a separate performance obligation.

 

In general, the Company recognizes revenue at the point in time control transfers to its customer based on predetermined shipping terms. Revenue is recognized over time under certain long-term contracts within the Engineering Technologies and Engraving segments for highly customized customer products that have no alternative use and in which the contract specifies the Company has a right to payment for its costs, plus a reasonable margin. For products manufactured over time, the transfer of control is measured pro rata, based upon current estimates of costs to complete such contracts. Losses on contracts are fully recognized in the period in which the losses become determinable. Revisions in profit estimates are reflected on a cumulative basis in the period in which the basis for such revision becomes known.

 

Disaggregation of Revenue from Contracts with Customers

 

The following table presents revenue from disaggregated by product line and segment (in thousands):

 

  

Three Months Ended

 

Revenue by Product Line

 

September 30, 2024

  

September 30, 2023

 
         

Electronics

 $77,733  $81,688 
         

Engraving Services

  29,821   38,736 

Engraving Products

  3,542   2,058 

Total Engraving

  33,363   40,794 
         

Scientific

  17,693   18,193 
         

Engineering Technologies

  20,530   18,220 
         

Hydraulics Cylinders and Systems

  11,622   14,729 

Merchandising & Display

  9,523   11,150 

Total Specialty Solutions

  21,145   25,879 
         

Total revenue by product line

 $170,464  $184,774 

 

The following table presents revenue from continuing operations disaggregated by geography based on the Company’s locations (in thousands):

 

  

Three Months Ended

  

Three Months Ended

 

Net sales

 

September 30, 2024

  

September 30, 2023

 

United States

 $100,735  $114,501 

Asia Pacific

  37,696   31,409 

EMEA (1)

  29,269   34,468 

Other Americas

  2,764   4,396 

Total

 $170,464  $184,774 

 

(1)   EMEA consists primarily of Europe, Middle East and S. Africa. 

 

The following table presents revenue from continuing operations disaggregated by timing of recognition (in thousands):

 

  

Three Months Ended

 

Timing of Revenue Recognition

 

September 30, 2024

  

September 30, 2023

 

Products and services transferred at a point in time

 $152,687  $167,225 

Products transferred over time

  17,777   17,549 

Net sales

 $170,464  $184,774 

 

Contract Balances

 

Contract assets represent sales recognized in excess of billings related to work completed but not yet shipped for which revenue is recognized over time. Contract assets are recorded as prepaid expenses and other current assets. Contract liabilities are customer deposits for which revenue has not been recognized. Current contract liabilities are recorded as accrued liabilities.

 

The timing of revenue recognition, invoicing and cash collections results in billed receivables, contract assets and contract liabilities on the consolidated balance sheets. When consideration is received from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the goods and services are transferred to the customer and all revenue recognition criteria have been met.

 

The following table provides information about contract assets and liability balances (in thousands):

 

  

June 30, 2024

  

Additions

  

Deductions

  

September 30, 2024

 

Three months ended September 30, 2024

                

Contract assets:

                

Prepaid expenses and other current assets

 $45,393  $16,865  $12,171  $50,087 

Contract liabilities:

                

Customer deposits

  1,766   1,803   2,069   1,500 

 

  

June 30, 2023

  

Additions

  

Deductions

  

September 30, 2023

 

Three months ended September 30, 2023

                

Contract assets:

                

Prepaid expenses and other current assets

 $31,138  $16,396  $15,072  $32,462 

 

We recognized the following revenue which was included in the contract liability beginning balances (in thousands):

 

  

Three months ended

 

Revenue recognized in the period from:

 

September 30, 2024

 

Amounts included in the contract liability balance at the beginning of the period

 $1,766