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Revenue Recognition
 6 Months Ended
Jul. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 4 – Revenue Recognition

We derive revenue from (i) the sale of 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) the sale of 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 31, 2025

 

 

August 3, 2024

 

 

July 31, 2025

 

 

August 3, 2024

 

United States

 

$

21,940

 

 

$

23,777

 

 

$

44,611

 

 

$

43,341

 

Europe

 

 

9,665

 

 

 

10,222

 

 

 

19,551

 

 

 

19,192

 

Canada

 

 

1,788

 

 

 

2,741

 

 

 

3,294

 

 

 

4,500

 

Asia

 

 

1,335

 

 

 

2,080

 

 

 

3,294

 

 

 

3,265

 

Central and South America

 

 

1,017

 

 

 

1,336

 

 

 

2,360

 

 

 

2,534

 

Other

 

 

357

 

 

 

383

 

 

 

700

 

 

 

668

 

Total Revenue

 

$

36,102

 

 

$

40,539

 

 

$

73,810

 

 

$

73,500

 

Major product types:

 

 

Three Months Ended

 

 

Six Months Ended

 

(In thousands)

 

July 31, 2025

 

 

August 3, 2024

 

 

July 31, 2025

 

 

August 3, 2024

 

Hardware

 

$

10,936

 

 

$

12,359

 

 

$

22,231

 

 

$

21,234

 

Supplies

 

 

19,495

 

 

 

22,344

 

 

 

40,576

 

 

 

40,977

 

Service and Other

 

 

5,671

 

 

 

5,836

 

 

 

11,003

 

 

 

11,289

 

Total Revenue

 

$

36,102

 

 

$

40,539

 

 

$

73,810

 

 

$

73,500

 

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 $579,000 and $543,000 at July 31, 2025 and January 31, 2025, 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 31, 2025 is due to cash payments received in advance of satisfying performance obligations in excess of revenue recognized during the current period, including $167,000 of revenue recognized that was included in the deferred revenue balance at January 31, 2025.

In March 2025, we entered into an agreement with a customer to support the production ramp-up for one of our Aerospace product lines. Under the terms of the agreement, the customer made an advance payment of $1.1 million, representing 50% of the contractual unit selling price for the units delivered beginning in June 2025. This advance payment was recorded as deferred revenue and will be recognized as revenue upon delivery of the related units. We have recognized $0.2 million in revenue related to this transaction for the three and six months ended July 31, 2025, and $0.9 million continues to remain in deferred revenue in our condensed consolidated balance sheet at July 31, 2025.

 

 

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 July 31, 2025. We also recognize an asset for the costs to fulfill a contract with a customer if the costs are specifically identifiable, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered. The balance of these contract assets at January 31, 2025 was $1.5 million. During the three and six months ended July 31, 2025, we amortized contract costs of $23,000 and $47,000, respectively. The balance of deferred incremental direct costs net of accumulated amortization at July 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 condensed consolidated balance sheet.