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Revenue Recognition
 9 Months Ended
Oct. 29, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 4 – 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
 
  
Nine Months Ended
 
(In thousands)
  
October 29,
2022
 
  
October 30,
2021
 
  
October 29,
2022
 
  
October 30,
2021
 
United States
    $ 26,806      $ 17,280      $ 65,501      $ 51,154  
Europe
      7,341        7,163        22,642        23,588  
Canada
      2,253        1,724        6,333        4,761  
Asia
      1,392        1,473        4,118        4,523  
Central and South America
      1,311        814        3,222        2,569  
Other
      302        403        858        1,185  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 39,405      $ 28,857      $ 102,674      $ 87,780  
    
 
 
     
 
 
     
 
 
     
 
 
  
Major product types:
 
 
  
Three Months Ended
 
  
Nine Months Ended
 
(In thousands)
  
October 29,
2022
 
  
October 30,
2021
 
  
October 29,
2022
 
  
October 30,
2021
 
Hardware
    $ 11,947      $ 7,622      $ 29,885      $ 23,147  
Supplies
      22,945        18,055        60,055        54,944  
Service and Other
      4,513        3,180        12,734        9,689  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 39,405      $ 28,857      $ 102,674      $ 87,780  
    
 
 
     
 
 
     
 
 
     
 
 
  
 
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 $362,000 and $262,000 at October 29, 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 nine months ended October 29, 2022, is due to cash payments received in advance of satisfying performance obligations in the current period, offset by $226,000 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 October 29, 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 nine months ended October 29, 2022, we amortized contract costs of $19,000 and $56,000, respectively. The balance of deferred incremental direct costs net of accumulated amortization at October 29, 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.