XML 24 R11.htm IDEA: XBRL DOCUMENT v3.20.2
Revenue Recognition
 9 Months Ended
Oct. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 3 – Revenue Recognition
We derive revenue from the sal
e
 of (i) hardware, including digital color label printers and specialty OEM printing systems, portable data acquisition systems and airborne printers used in the flight deck and cabin of military, commercial and business aircraft, (ii) related supplies required in the operation of the hardware, (iii) repairs and maintenance of hardware and (iv) service agreements.
Revenues disaggregated by primary geographic markets and major product types are as follows:
Primary geographical markets:
 
    
Three Months Ended
     
Nine Months Ended
  
(In thousands)   
October 31,

2020
     
November 2,

2019
     
October 31,

2020
     
November 2,

2019
  
United States
    $ 16,788      $ 21,831      $ 54,442      $ 64,471  
Europe
      7,081        7,059        20,845        22,408  
Canada
      1,273        1,441        4,154        4,346  
Central and South America
      1,233        1,019        3,101        3,232  
Asia
      1,209        1,396        3,050        7,063  
Other
      433        572        1,003        1,447  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 28,017      $ 33,318      $ 86,595      $ 102,967  
  
 
 
     
 
 
     
 
 
     
 
 
  
Major product types:
 
 
    
Three Months Ended
     
Nine Months Ended
  
(In thousands)   
October 31,

2020
     
November 2,

2019
     
October 31,

2020
     
November 2,

2019
  
Hardware
    $ 7,667      $ 12,160      $ 25,021      $ 37,514  
Supplies
      17,996        17,655        54,254        55,463  
Service and Other
      2,354        3,503        7,320        9,990  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 28,017      $ 33,318      $ 86,595      $ 102,967  
  
 
 
     
 
 
     
 
 
     
 
 
  
Contract Assets and Liabilities
We normally do not have contract assets, which are primarily unbilled accounts receivable that are conditional on something other than the passage of time.
Our contract liabilities, which represent billings in excess of revenue recognized, are related to advanced billings for purchased service agreements and extended warranties. Contract liabilities were $313,000 and $466,000 at October 31, 2020 and January 31, 2020, respectively, and are recorded as deferred revenue in the accompanying condensed consolidated balance sheet. The decrease in the deferred revenue balance during the nine months ended October 31, 2020 is primarily due t
o
 $466,000 of revenue recognized during the period that was included in the deferred revenue balance at January 31, 2020 and
current period
deferred revenue recognized
in income
during the period
,
offset by cash payments received in advance of satisfying performance obligations.
Contract Costs
We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain costs related to obtaining sales contracts for our aerospace printer products meet the requirement to be capitalized. These costs are deferred and amortized based on the forecasted number of units sold over the remaining benefit term, which we currently estimate to be approximately 6 years. The balance of these contract assets at January 31, 2020 was $944,000. We amortized $44,000 of direct costs for the nine months ended October 31, 2020 and the balance of deferred incremental direct costs net of accumulated amortization at October 31, 2020 was $900,000, of which $59,000 is reported in other current assets and $841,000 is reported in other assets in the accompanying condensed consolidated balance sheet.