Revenue Recognition

6 Months Ended

Jun. 30, 2020

4. REVENUE RECOGNITION:

Our revenue performance obligations are primarily satisfied at a point in time and limited revenue streams are satisfied over time as work progresses.

The following is a summary of our revenue performance obligations:


	Three Months Ended June 30, 2020				Three Months Ended June 30, 2019
(In thousands except percentages)	Revenues		Percent of Revenues		Revenues		Percent of Revenues
Revenue recognized over time	$	362	2	%	$	292	2	%
Revenue recognized at a point in time		15,634	98	%		14,752	98	%
	$	15,996	100	%	$	15,044	100	%


	Six Months Ended June 30, 2020				Six Months Ended June 30, 2019
(In thousands except percentages)	Revenues		Percent of Revenues		Revenues		Percent of Revenues
Revenue recognized over time	$	555	2	%	$	638	2	%
Revenue recognized at a point in time		31,870	98	%		29,382	98	%
	$	32,425	100	%	$	30,020	100	%

See Note 11 for additional information regarding disaggregation of revenue.

Contract Balances

Contract assets consist of unbilled amounts from sales where we recognize the revenue over time and the revenue recognized exceeds the amount billed to the customer at a point in time. Accounts and trade notes receivable are recorded when the right to payment becomes unconditional. Contract liabilities consist of payments received in advance of performance under the contract. Contract liabilities are recognized as revenue when we perform under the contract.

The following summarizes our contract assets and contract liabilities:


(In thousands)	June 30, 2020		December 31, 2019
Contract assets, included in other current assets	$	4	$	2
Contract liabilities - advance customer payments	$	661	$	389
Contract liabilities - deferred warranty revenue	$	323	$	275

Changes in contract assets in the six months ended June 30, 2020 and June 30, 2019 resulted from unbilled amounts under sensor product arrangements and longer duration 3D scanning service projects in which revenue is recognized over time. Changes in contract liabilities primarily resulted from reclassification of beginning contract liabilities to revenue as performance obligations were satisfied or from cash received in advance and not recognized as revenue. See Note 9 for changes in contractual obligations related to deferred warranty revenue. Unsatisfied performance obligations are generally expected to be recognized as revenue over the next one to three years. There were no impairment losses for contract assets in the six months ended June 30, 2020 or June 30, 2019.

The following summarizes the amounts reclassified from beginning contract liabilities to revenue:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2020		2019		2020		2019
Amounts reclassified from beginning contract liabilities to revenue	$	55	$	443	$	95	$	216
Amounts reclassified from deferred warranty revenue		83		110		183		224
Total	$	138	$	553	$	278	$	440