Deferred Revenue

6 Months Ended

Jul. 31, 2024

Deferred Revenue [Abstract]

Deferred Revenue

8. Deferred Revenue

Deferred revenue is primarily related to nonrecurring engineering charges that are either invoiced or paid but for which the related performance obligations are not yet satisfied, as well as, for product shipments, a portion of the transaction price that exceeds the weighted average selling price for products sold to date under tiered-pricing contracts that contain material rights. During the six months ended July 31, 2024 and 2023, the amount recognized as revenue that was included in the deferred revenue balance at the end of prior fiscal year was approximately $0.6 million and $0.9 million, respectively.

As of July 31, 2024, the amount of remaining unsatisfied performance obligations on contracts, primarily consisting of product purchase orders and nonrecurring engineering service agreements with original contract duration of more than one year, was approximately $13.2 million, of which approximately 97% is expected to be recognized within the next 12 months. This does not include amounts which have an original expected contract duration of one year or less.