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Note 2 - Revenue Recognition
 9 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

Note 2. Revenue Recognition

 

We design, manufacture, market, sell, and maintain quality control instruments and software, consumables, and services driven primarily by the regulatory requirements of niche markets. Our consumables, such as biological indicator test strips are typically used on a standalone basis; however, some such consumables used in protein synthesis and calibration solutions are also critical to the ongoing use of our instruments. Hardware and software sales, such as medical meters, protein synthesizers, wireless sensor systems, and data loggers are generally driven by our acquisition of new customers, growth of existing customers, or customers' replacement of existing equipment. Hardware sales may be offered with perpetual or annual software licenses, which in some cases are required for the hardware to function. Our Biopharmaceutical Development Division designs, manufactures, markets, and sells instruments, such as protein synthesizers that are used to process immunoassay samples, and related software designed to enhance productivity; consumable chemical solutions designed for use in testing; and on-demand and long-term service contracts to support customers' use of the equipment. The division generates revenue from the same general categories as those we have identified for the rest of our business and recognizes revenue consistently with our policies. We evaluate our revenues internally by product line, timing of revenue generation, and the nature of goods and services provided. Typically, discrete revenue is recognized at the shipping point or upon completion of the service, while contracted revenue is recognized over a period of time reflective of the performance obligation period in the applicable contract. Consumables are typically single use items requiring frequent replacement in our customers' operating cycles. Substantially all of our revenues and related receivables are generated from contracts with customers that are 12 months or less in duration.

 

 

The following tables present disaggregated revenues for the three and nine months ended December 31, 2020 and three and nine months ended December 31, 2019, respectively:

 

  

Three Months Ended December 31, 2020

 
  

Sterilization and Disinfection Control

  

Instruments

  

Biopharmaceutical Development

  

Continuous Monitoring

  

Corporate and Other

  

Total

 

Discrete Revenues

                        
Consumables $11,250  $717  $3,406  $9  $-  $15,382 

Hardware and Software

  151   6,210   3,771   1,920   -   12,052 

Services

  433   2,042   506   799   -   3,780 

Contracted Revenues

                        

Services

  1,243   2   1,028   685   -   2,958 

Total Revenues

 $13,077  $8,971  $8,711  $3,413  $-  $34,172 

 

  

Three Months Ended December 31, 2019

 
  

Sterilization and Disinfection Control

  

Instruments

  

Biopharmaceutical Development

  

Continuous Monitoring

  

Corporate and Other

  

Total

 

Discrete Revenues

                        
Consumables $9,948  $781  $1,941  $13  $229  $12,912 

Hardware and Software

  95   6,881   2,571   2,562   -   12,109 

Services

  360   2,352   656   849   -   4,217 

Contracted Revenues

                        

Services

  1,216   -   469   732   -   2,417 

Total Revenues

 $11,619  $10,014  $5,637  $4,156  $229  $31,655 

 

  

Nine Months Ended December 31, 2020

 
  

Sterilization and Disinfection Control

  

Instruments

  

Biopharmaceutical Development

  

Continuous Monitoring

  

Corporate and Other

  

Total

 

Discrete Revenues

                        
Consumables $32,252  $2,240  $8,583  $54  $-  $43,129 

Hardware and Software

  388   16,045   10,518   6,082   -   33,033 

Services

  1,389   5,922   2,293   1,944   -   11,548 

Contracted Revenues

                        

Services

  3,667   2   2,397   2,197   -   8,263 

Total Revenues

 $37,696  $24,209  $23,791  $10,277  $-  $95,973 

 

  

Nine Months Ended December 31, 2019

 
  

Sterilization and Disinfection Control

  

Instruments

  

Biopharmaceutical Development

  

Continuous Monitoring

  

Corporate and Other

  

Total

 

Discrete Revenues

                        
Consumables $30,487  $2,364  $1,941  $34  $2,415  $37,241 

Hardware and Software

  429   19,282   2,571   6,374   -   28,656 

Services

  1,301   6,872   656   1,959   27   10,815 

Contracted Revenues

                        

Services

  3,606   -   469   2,692   -   6,767 

Total Revenues

 $35,823  $28,518  $5,637  $11,059  $2,442  $83,479 

 

Revenues from external customers are attributed to individual countries based upon locations to which the products are shipped or exported, as follows:

 

  

Three Months Ended December 31,

  

Nine Months Ended December 31,

 
  

2020

  

2019

  

2020

  

2019

 

United States

 $18,480  $17,810  $52,246  $48,007 

Foreign

  15,692   13,845   43,727   35,472 

Total revenues

 $34,172  $31,655  $95,973  $83,479 

 

No foreign country exceeds 10% of total revenues.

 

Contract Balances

 

Our contracts have varying payment terms and conditions. Some customers prepay for services, resulting in unearned revenues or customer deposits, called contract liabilities, which are included within other accrued expenses and unearned revenues in the accompanying Condensed Consolidated Balance Sheets. Contract assets would exist when sales are recorded (i.e. the control of the goods or services has been transferred to the customer), but customer payment is contingent on a future event besides the passage of time (such as satisfaction of additional performance obligations). We do not have any contract assets. Unbilled receivables, which are not classified as contract assets, represent arrangements in which sales have been recorded prior to billing and right to payment is unconditional.

 

A summary of contract liabilities is as follows:

 

Contract liabilities balance as of March 31, 2020

$7,217 

Prior year liabilities recognized in revenues during the nine months ended December 31, 2020

 (4,131)

Contract liabilities added during the nine months ended December 31, 2020, net of revenues recognized

 4,984 

Contract liabilities balance as of December 31, 2020

$8,070