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Revenue Recognition
 3 Months Ended
Apr. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 3 – Revenue Recognition
We derive revenue from the sale of (i) hardware, including digital color label printers and specialty OEM printing systems, portable data acquisition systems and airborne printers and networking hardware 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
 
(In thousands)
  
April 30,

2022
 
  
May 1,

2021
 
United States
    $ 19,651      $ 16,693  
Europe
      7,419        8,599  
Canada
      1,854        1,546  
Asia
      937        1,085  
Central and South America
      888        760  
Other
      261        395  
    
 
 
     
 
 
  
Total Revenue
    $ 31,010      $ 29,078  
    
 
 
     
 
 
  
Major product types:
 
 
  
Three Months Ended
 
(In thousands)
  
April 30,

2022
 
  
May 1,

2021
 
Hardware
    $ 9,301      $ 7,647  
Supplies
      17,944        18,211  
Service and Other
      3,765        3,220  
    
 
 
     
 
 
  
Total Revenue
    $ 31,010      $ 29,078  
    
 
 
     
 
 
  
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 $222,000 and $262,000
 at April 30, 2022 and January 31, 2022, respectively, and are recorded as deferred revenue in the accompanying condensed consolidated balance sheet. The decrease in the deferred revenue balance during the three months ended April 30, 2022 is primarily due to
 
$
116,000
of revenue recognized during the period that was included in the deferred revenue balance at January 31, 2022, which was partially offset by the cash payments received in advance of satisfying performance obligations in the current period.
 
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 over the remaining useful life of these contracts, which we currently estimate to be approximate
ly 19 
years as of April 30, 2022. The balance of these contract assets at January 31, 2022 was
$1.3 
million, and in the first quarter of the current year, we incurred an additional
$0.1 
million in contract costs that will be amortized over 
19 years. We amortized $7,000
of direct costs during the three months ended April 30, 2022. The balance of deferred incremental direct costs net of accumulated amortization at April 30, 2022 was 
$1.4 million, of which $0.1 million is reported in other current assets and $1.3 million is reported in other assets in the accompanying condensed consolidated balance sheet.