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Revenue Recognition
 9 Months Ended
Oct. 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

 

 

Nine Months Ended

 

(In thousands)

 

October 31, 2025

 

 

November 2, 2024

 

 

October 31, 2025

 

 

November 2, 2024

 

United States

 

$

24,057

 

 

$

23,493

 

 

$

68,668

 

 

$

66,834

 

Europe

 

 

9,415

 

 

 

10,330

 

 

 

28,965

 

 

 

29,522

 

Canada

 

 

2,086

 

 

 

2,118

 

 

 

5,380

 

 

 

6,617

 

Asia

 

 

2,048

 

 

 

2,601

 

 

 

5,343

 

 

 

5,867

 

Central and South America

 

 

1,285

 

 

 

1,454

 

 

 

3,645

 

 

 

3,988

 

Other

 

 

278

 

 

 

426

 

 

 

978

 

 

 

1,094

 

Total Revenue

 

$

39,169

 

 

$

40,422

 

 

$

112,979

 

 

$

113,922

 

Major product types:

 

Three Months Ended

 

 

Nine Months Ended

 

(In thousands)

 

October 31, 2025

 

 

November 2, 2024

 

 

October 31, 2025

 

 

November 2, 2024

 

Hardware

 

$

12,717

 

 

$

11,622

 

 

$

34,948

 

 

$

32,856

 

Supplies

 

 

20,573

 

 

 

20,908

 

 

 

61,148

 

 

 

61,885

 

Service and Other

 

 

5,879

 

 

 

7,892

 

 

 

16,883

 

 

 

19,181

 

Total Revenue

 

$

39,169

 

 

$

40,422

 

 

$

112,979

 

 

$

113,922

 

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 primarily related to advanced billings for purchased service agreements and extended warranties. Contract liabilities were $489,000 and $543,000 at October 31, 2025 and January 31, 2025, respectively, and are recorded as deferred revenue in the accompanying condensed consolidated balance sheet. The decrease in the deferred revenue balance during the nine months ended October 31, 2025 is due to revenue recognized during the current period, including $482,000 of revenue recognized that was included in the deferred revenue balance at January 31, 2025, in excess of cash payments received in advance of satisfying performance obligation.

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 a total of $0.5 million in revenue related to this transaction for the nine months ended October 31, 2025, and $0.4 million continues to remain in deferred revenue in our condensed consolidated balance sheet at October 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 October 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 nine months ended October 31, 2025, we amortized contract costs of $23,000 and $70,000, respectively. The balance of deferred incremental direct costs net of accumulated amortization at October 31, 2025 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.