Note 3 - Revenue

12 Months Ended

Dec. 31, 2022

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. The input method requires an analysis of the incurred time in production and an estimate of the total time necessary to complete the total parts per the customer's order. 

Revenue by geographic region for the years ended December 31, 2022, 2021 and 2020 was as follows:

	Year Ended December 31,
(in thousands)	2022		2021		2020
Revenue:
United States	$	387,399	$	384,458	$	345,708
Europe		92,770		90,399		74,796
Japan		8,229		13,241		13,891
Total revenue	$	488,398	$	488,098	$	434,395

Revenue by product line for the years ended December 31, 2022, 2021 and 2020 was as follows:

	Year Ended December 31,
(in thousands)	2022		2021		2020
Revenue:
Injection Molding	$	200,578	$	226,117	$	217,992
CNC Machining		188,372		166,811		131,587
3D Printing		78,988		72,721		62,502
Sheet Metal		19,498		20,397		18,838
Other Revenue		962		2,052		3,476
Total revenue	$	488,398	$	488,098	$	434,395

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.