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Note 3 - Revenue From Contracts With Customers
 3 Months Ended
Sep. 30, 2025
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 these products, 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, 2025

    

September 30, 2024

  
                 

Electronics

   $ 110,553     $ 77,733  
                 

Engineering Technologies

     29,894       20,530  
                 

Scientific

     19,450       17,693  
                 

Engraving Services

     32,621       29,821  

Engraving Products

     3,219       3,542  

Total Engraving

     35,840       33,363  
                 

Hydraulics Cylinders and Systems

     12,172       11,622  

Merchandising & Display

     9,522       9,523  

Total Specialty Solutions

     21,694       21,145  
                 

Total revenue by product line

   $ 217,431     $ 170,464  

 

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, 2025

    

September 30, 2024

  

United States

   $ 126,331     $ 100,735  

Asia Pacific

     56,382       37,696  

EMEA (1)

     32,634       29,269  

Other Americas

     2,084       2,764  

Total

   $ 217,431     $ 170,464  

 

(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, 2025

    

September 30, 2024

  

Products and services transferred at a point in time

   $ 196,980     $ 152,687  

Products transferred over time

     20,451       17,777  

Net sales

   $ 217,431     $ 170,464  

 

Contract Balances

 

Contract assets represent revenue recognized related to work completed but not yet billed as of the reporting date. 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, 2025

    

Additions

    

Deductions

    

September 30, 2025

  

Three months ended September 30, 2025

                                

Contract assets

   $ 59,228     $ 20,451     $ 15,442     $ 64,237  

Contract liabilities:

                                

Customer deposits

     5,189       1,634       1,190       5,633  

 

   

June 30, 2024

    

Additions

    

Deductions

    

September 30, 2024

  

Three months ended September 30, 2024

                                

Contract assets

   $ 45,393     $ 16,865     $ 12,171     $ 50,087  

Contract liabilities:

                                

Customer deposits

     1,766       1,803       2,069       1,500  

 

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, 2025

    

September 30, 2024

  

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

   $ -     $ 1,766