Note 3 - Revenue

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note 3 – Revenue

The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts with Customers. The Company provides quality, quick-turn prototyping and on-demand manufacturing services. As a result, the majority of revenue recognized in a reporting period is based on completed, invoiced contracts. 

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC 606. The majority of the Company’s CNC machining, 3D printing, and sheet metal contracts have a single performance obligation. The majority of the Company’s injection molding contracts have multiple performance obligations including one obligation to produce the mold and a second obligation to produce parts. For injection molding contracts with multiple performance obligations, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling price based on the price charged to customers.

The Company manufactures parts that have no alternative use to the Company since the parts are custom made to specific customer orders, and the Company believes there is a legally enforceable right to payment for performance completed to date on these manufactured parts. For manufactured parts that meet these two criteria, the Company will recognize revenue over time. Revenue is recognized over time using the input method based on time in production as a percentage of total estimated production time to measure progress toward satisfying performance obligations using the estimated total time necessary to complete the parts per the customer's order and an estimate of inventory and production costs incurred to date.

Revenue by geographic region for the years ended December 31, 2020, 2019 and 2018 was as follows:

	Year Ended December 31,
(in thousands)	2020		2019		2018
Revenue:
United States	$	345,708	$	360,205	$	350,535
Europe		74,796		82,805		80,889
Japan		13,891		15,718		14,172
Total revenue	$	434,395	$	458,728	$	445,596

Revenue by product line for the years ended December 31, 2020, 2019 and 2018 was as follows:

	Year Ended December 31,
(in thousands)	2020		2019		2018
Revenue:
Injection Molding	$	217,992	$	217,415	$	210,523
CNC Machining		131,587		155,473		153,521
3D Printing		62,502		61,352		53,342
Sheet Metal		18,838		21,000		24,998
Other Revenue		3,476		3,488		3,212
Total revenue	$	434,395	$	458,728	$	445,596

The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within marketing and sales expenses. The value of unsatisfied performance obligations for contracts with an original expected length of one year or less is not material.