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Revenue Recognition
 12 Months Ended
Jan. 31, 2025
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 used in the flight deck and interior of commercial, business and military aircraft, (ii) related consumable supplies including paper, labels, tags, inks, toners and ribbons, (iii) repairs and maintenance of equipment and (iv) service agreements.

Revenues disaggregated by primary geographic markets and major product types are as follows:

Primary geographical markets:

 

(In thousands)

 

2025

 

 

2024

 

 

2023*

 

United States

 

$

89,466

 

 

$

84,757

 

 

$

83,559

 

Europe

 

 

39,121

 

 

 

41,761

 

 

 

38,859

 

Canada

 

 

8,210

 

 

 

8,742

 

 

 

8,690

 

Asia

 

 

8,018

 

 

 

7,216

 

 

 

5,547

 

Central and South America

 

 

4,967

 

 

 

4,221

 

 

 

4,589

 

Other

 

 

1,501

 

 

 

1,389

 

 

 

1,283

 

Total Revenue

 

$

151,283

 

 

$

148,086

 

 

$

142,527

 

 

*Certain amounts have been reclassified to conform to the current year's presentation.

Major product types:

 

(In thousands)

 

2025

 

 

2024

 

 

2023

 

Hardware

 

$

44,632

 

 

$

49,440

 

 

$

42,445

 

Supplies

 

 

81,423

 

 

 

79,252

 

 

 

82,072

 

Service and Other

 

 

25,228

 

 

 

19,394

 

 

 

18,010

 

Total Revenue

 

$

151,283

 

 

$

148,086

 

 

$

142,527

 

 

In December 2022, we entered into an amended contract with one of our T&M customers that provided for a total payment of $3.25 million to be received as a result of our claims allowable under French law relating to additional component costs we have incurred, and will continue to incur in order to supply aerospace printers under the contract for the period beginning in April 2022 and continuing through 2025. We have recognized $0.8 million, $1.3 million, and $1.1 million in revenue for the years ended January 31, 2025, 2024 and 2023, respectively as a result of this arrangement. As we have received the total payment amount per the amended contract, there is no balance in deferred revenue at January 31, 2025.

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 $543,000 and $530,000 at January 31, 2025 and January 31, 2024, respectively, and are recorded as current deferred revenue in the accompanying consolidated balance sheets The increase in the deferred revenue balance for the year ended January 31, 2025 is due to cash payments received in advance of satisfying performance obligations, offset by revenue recognized during the period, including $265,000 of revenue recognized that was included in the deferred revenue balance at January 31, 2024.

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 16 years as of January 31, 2025. Amortized contract costs for the year ended January 31, 2025 were $88,000 and $75,000 for each of the years ended January 31, 2024 and 2023. The balance of deferred incremental direct costs net of accumulated amortization at January 31, 2025, was $1.5 million, of which $0.1 million is reported in other current assets and $1.4 million is reported in other assets in the accompanying consolidated balance sheet.