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Note 3 - Revenue Recognition
 9 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

Note 3. Revenue Recognition

 

We develop, manufacture, market, sell and maintain life sciences tools and quality control instruments and related software, consumables, and services. We evaluate revenues internally based primarily on operating segment and the nature of goods and services provided.

 

Hardware sales include physical products such as instruments used for molecular and genetic analysis, protein synthesizers, medical meters, wireless sensor systems, and data loggers. Hardware sales  may be offered with accompanying perpetual or annual software licenses, which in some cases are required for the hardware to function.

 

Consumables are typically used on a one-time basis and require frequent replacement in our customers' operating cycles. Consumables such as reagents used for molecular and genetic analysis or solutions used for protein synthesis are critical to the ongoing use of our instruments. Consumables such as biological indicator test strips are used on a standalone basis.

 

We offer service and maintenance contracts for our instruments, which may contain performance obligations satisfied: over time, such as an obligation to perform repairs or replace parts as needed over a contractually-specified period of time; upon completion of a discrete service, such as stand-alone maintenance services or discrete services within annual contracts; or, in many cases, both.

 

Typically, revenue is recognized upon shipment of a product, upon completion of a discrete service, or over a period of time reflective of the performance obligation period in the applicable contract, depending on when our obligation to the customer is satisfied. The significant majority 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, 2022 and 2021, respectively:

 

  

Three Months Ended December 31, 2022

 
  

Clinical Genomics

  

Sterilization and Disinfection Control

  

Biopharmaceutical Development

  

Calibration Solutions

  

Total

 

Consumables

 $10,885  $14,307  $3,584  $553  $29,329 

Hardware and Software

  3,371   95   5,844   7,023   16,333 

Services

  1,329   1,881   2,218   3,197   8,625 

Total Revenues

 $15,585  $16,283  $11,646  $10,773  $54,287 

 

  

Three Months Ended December 31, 2021

 
  

Clinical Genomics*

  

Sterilization and Disinfection Control

  

Biopharmaceutical Development

  

Calibration Solutions

  

Total

 

Consumables

 $10,221  $11,718  $4,099  $889  $26,927 

Hardware and Software

  4,407   250   6,100   6,978   17,735 

Services

  1,857   1,863   2,557   3,757   10,034 

Total Revenues

 $16,485  $13,831  $12,756  $11,624  $54,696 

 

  

Nine Months Ended December 31, 2022

 
  

Clinical Genomics

  

Sterilization and Disinfection Control

  

Biopharmaceutical Development

  

Calibration Solutions

  

Total

 

Consumables

 $34,815  $41,239  $11,248  $2,272  $89,574 

Hardware and Software

  9,349   619   16,656   18,696   45,320 

Services

  4,361   6,163   6,853   11,218   28,595 

Total Revenues

 $48,525  $48,021  $34,757  $32,186  $163,489 

 

  

Nine Months Ended December 31, 2021

 
  

Clinical Genomics*

  

Sterilization and Disinfection Control

  

Biopharmaceutical Development

  

Calibration Solutions

  

Total

 

Consumables

 $10,221  $36,579  $11,588  $2,701  $61,089 

Hardware and Software

  4,407   495   14,435   20,608   39,945 

Services

  1,857   5,940   6,165   10,460   24,422 

Total Revenues

 $16,485  $43,014  $32,188  $33,769  $125,456 

 

*Revenues in the Clinical Genomics division represent transactions subsequent to the Agena Acquisition on October 20, 2021. 

 

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

 

  

Three Months Ended December 31,

  

Nine Months Ended December 31,

 
  

2022

  

2021

  

2022

  

2021

 

United States

 $28,645  $30,414  $88,756  $68,253 

China

  7,482   6,243   18,659   9,960 

Other

  18,160   18,039   56,074   47,243 

Total revenues

 $54,287  $54,696  $163,489  $125,456 

 

Other than China, no foreign country exceeds 10% of total revenues.

 

Contract Balances

Our contracts have varying payment terms and conditions. Some customers prepay for products and services, resulting in unearned revenues or customer deposits, called contract liabilities. Short-term contract liabilities are included within other accrued expenses and unearned revenues in the accompanying Condensed Consolidated Balance Sheets, and long-term contract liabilities are included within other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets.

 

A summary of contract liabilities is as follows:

 

Contract liabilities as of March 31, 2022

 $15,069 

Prior year liabilities recognized in revenues during the nine months ended December 31, 2022

  (7,927)

Contract liabilities added during the nine months ended December 31, 2022, net of revenues recognized

  9,091 

Contract liabilities balance as of December 31, 2022

 $16,233 

 

Contract liabilities primarily relate to service contracts with original expected service durations of 12 months or less and will be recognized to revenue over time as our performance obligations are satisfied.