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Note 2 - Revenue Recognition
 3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]
(
2
)
Revenue Recognition
 
The Company recognizes revenue when a customer obtains control of a promised good or service. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to in exchange for promised goods or services. The Company recognizes revenue in accordance with the core principles of ASC
606
which include (
1
) identifying the contract with a customer, (
2
) identifying separate performance obligations within the contract, (
3
) determining the transaction price, (
4
) allocating the transaction price to the performance obligations, and (
5
) recognizing revenue. The Company recognizes all but an immaterial portion of its product sales upon shipment. The Company recognizes revenue from the sale of tooling and machinery primarily upon customer acceptance, except for certain tooling where control does
not
transfer to the customer, which results in revenue being recognized over the estimated time for which parts are produced with the use of each respective tool. The Company recognizes revenue from engineering services as the services are performed. Although only applicable to an insignificant number of transactions, the Company has elected to exclude sales taxes from the transaction price. The Company has elected to account for shipping and handling activities for which the Company is responsible under the terms and conditions of the sale
not
as performance obligations but rather as fulfillment costs. These activities are required to fulfill the Company’s promise to transfer the good and are expensed when revenue is recognized.
 
Disaggregated Revenue
 
The following table presents the Company’s revenue disaggregated by the major types of goods and services sold to our customers (in thousands):
 
    Three Months Ended
March 31,
Net sales of:   2019   2018
Products   $
46,410
     $
42,226
  
Tooling and Machinery    
645
      
410
  
Engineering services    
273
      
295
  
Total net sales   $
47,328
     $
42,931
  
 
Contract balances
 
Timing of revenue recognition
may
differ from the timing of invoicing to customers. When invoicing occurs prior to revenue recognition, the Company has deferred revenue, or contract liabilities, included within “deferred revenue” on the condensed consolidated balance sheet.
 
The following table presents opening and closing balances of contract liabilities for the
three
months ended
March 31, 2019
and
2018
(in thousands):
 
    Contract Liabilities
    Three Months Ended
March 31,
    2019   2018
Deferred revenue - beginning of period   $
2,507
     $
871
  
Acquired in Dielectrics business combination    
-
      
2,175
  
Increases due to consideration received from customers    
991
      
685
  
Revenue recognized    
(526
 )    
(601
 )
Deferred revenue - end of period   $
2,972
     $
3,130
  
 
Revenue recognized during the
three
months ended
March 31, 2019
and
2018
from amounts included in deferred revenue at the beginning of the period was approximately
$497
thousand and
$314
thousand, respectively.
 
When invoicing occurs after revenue recognition, the Company has unbilled receivables (contract assets) included within “receivables” on the condensed consolidated balance sheet. Unbilled receivables were approximately
$44
thousand at
March 31, 2019
and resulted from revenue recognized (earned) during the period ended
March 31, 2019
that had
not
yet been billed. There were
no
unbilled receivables at
March 31, 2018.
 
The following table presents opening and closing balances of contract assets for the
three
months ended
March 31, 2019 (
in thousands):
 
    Contract Assets
    Three Months Ended
March 31,
2019
Unbilled Receivables - beginning of period   $
65
  
Decreases due to customer invoicing    
(106
 )
Increases due to revenue recognized - not invoiced to customers    
85
  
Unbilled Receivables - end of period   $
44