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Note 2 - Revenue Recognition
 3 Months Ended
Jun. 30, 2021
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 of our chemical solutions, such as protein synthesis and calibration solutions are 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 customer replacement of existing equipment. Hardware sales  may be offered with accompanying perpetual or annual software licenses, which in some cases are required for the hardware to function. We also offer on-demand and annual service contracts to support customers' use of our equipment. We evaluate our revenues internally based on product line, the 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 used on a one-time basis 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 quarters ended June 30, 2021 and 2020, respectively:

 

  

Three Months Ended June 30, 2021

 
  

Sterilization and Disinfection Control

  

Biopharmaceutical Development

  

Instruments

  

Continuous Monitoring

  

Total

 

Discrete Revenues

                    

Consumables

 $12,876  $3,608  $942  $10  $17,436 

Hardware and Software

  160   3,557   5,238   1,844   10,799 

Services

  701   582   1,382   853   3,518 

Contracted Revenues

                    

Services

  1,413   1,130      624   3,167 

Total Revenues

 $15,150  $8,877  $7,562  $3,331  $34,920 

 

  

Three Months Ended June 30, 2020

 
  

Sterilization and Disinfection Control

  

Biopharmaceutical Development

  

Instruments

  

Continuous Monitoring

  

Total

 

Discrete Revenues

                    

Consumables

 $11,484  $1,939  $808  $30  $14,261 

Hardware and Software

  129   2,556   5,020   1,955   9,660 

Services

  250   782   1,852   531   3,415 

Contracted Revenues

                    

Services

  1,204   672   -   729   2,605 

Total Revenues

 $13,067  $5,949  $7,680  $3,245  $29,941 

 

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 June 30,

 
  

2021

  

2020

 

United States

 $18,455  $16,372 

Foreign

  16,465   13,569 

Total revenues

 $34,920  $29,941 

 

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. We did not have any contract assets as of June 30, 2021 or March 31, 2021. 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 as of March 31, 2021

 $8,994 

Prior year liabilities recognized in revenues during the quarter ended June 30, 2021

  (2,448)

Contract liabilities added during the quarter ended June 30, 2021, net of revenues recognized

  3,144 

Contract liabilities balance as of June 30, 2021

 $9,690