XML 20 R10.htm IDEA: XBRL DOCUMENT v3.22.2.2
Revenue Recognition
 6 Months Ended
Jul. 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
 
  
Six Months Ended
 
(In thousands)
  
July 30,
2022
 
  
July 31,
2021
 
  
July 30,
2022
 
  
July 31,
2021
 
United States
    $ 19,044      $ 17,181      $ 38,695      $ 33,874  
Europe
      7,883        7,826        15,301        16,425  
Canada
      2,225        1,491        4,080        3,037  
Asia
      1,789        1,964        2,726        3,049  
Central and South America
      1,023        995        1,911        1,756  
Other
      295        388        556        782  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 32,259      $ 29,845      $ 63,269      $ 58,923  
    
 
 
     
 
 
     
 
 
     
 
 
  
Major product
types:
 

 
  
Three Months Ended
 
  
Six Months Ended
 
(In thousands)
  
July 30,
2022
 
  
July 31,
2021
 
  
July 30,
2022
 
  
July 31,
2021
 
Hardware
    $ 8,637      $ 7,878      $ 17,937      $ 15,525  
Supplies
      19,166        18,678        37,111        36,888  
Service and Other
      4,456        3,289        8,221        6,510  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 32,259      $ 29,845      $ 63,269      $ 58,923  
    
 
 
     
 
 
     
 
 
     
 
 
  
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 $281,000 and $262,000 at July 30, 2022, and January 31, 2022, respectively, and are recorded as deferred revenue in the accompanying condensed consolidated balance sheet. The
increase
in the deferred revenue balance during the six months ended July 30, 2022, is due to cash payments received in advance of satisfying performance obligations in the current period, offset by $177,000 of revenue recognized during the period that was included in the deferred revenue balance at January 31, 2022.
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 approximately 19 years as of July 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.
During the three and six months ended July 30, 2022, we amortized contract costs of
 
$19,000 and $37,000,
respectively.
The balance of deferred incremental direct costs net of accumulated amortization at
July 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.