Revenue Recognition

3 Months Ended

Mar. 31, 2021

Revenue Recognition [Abstract]

Revenue Recognition

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 March 31, 2021				Three Months Ended March 31, 2020
(In thousands except percentages)	Revenues		Percent of Revenues		Revenues		Percent of Revenues
Revenue recognized over time	$	403	2.3	%	$	193	1.2	%
Revenue recognized at a point in time		17,329	97.7	%		16,236	98.8	%
	$	17,732	100.0	%	$	16,429	100.0	%

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)	March 31, 2021		December 31, 2020
Contract assets, included in other current assets	$	24	$	2
Contract liabilities - advance customer payments	$	406	$	567
Contract liabilities - deferred warranty revenue	$	385	$	344

Changes in contract assets in the three months ended March 31, 2021 and the three months ended March 31, 2020 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 for deferred warranty revenue 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 three months ended March 31, 2021 or the three months ended March 31, 2020. 

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

	Three Months Ended March 31,
(In thousands)	2021		2020
Amounts reclassified from beginning contract liabilities to revenue	$	339	$	76
Amounts reclassified from deferred warranty revenue		90		100
Total	$	429	$	176