2. REVENUE

12 Months Ended

May 31, 2021

Revenue from Contract with Customer [Abstract]

2. REVENUE

2. REVENUE 

Disaggregation of revenue

    The following tables show revenues by major product categories. Within each product category, contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty around revenue recognition and cash flow are substantially similar.

    The Company’s revenues by product category are as follows (in thousands):

	Year Ended May 31,
	2021		2020		2019
Type of good / service:
Systems	$	7,250	$	8,099	$	9,566
Contactors		5,837		10,784		6,154
Services		3,513		3,408		5,336
	$	16,600	$	22,291	$	21,056
Product lines:
Wafer-level	$	15,004	$	19,768	$	14,618
Test During Burn-In		1,596		2,523		6,438
	$	16,600	$	22,291	$	21,056

 The following presents information about the Company’s operations in different geographic areas. Net sales are based upon ship-to location (in thousands):

	Year Ended May 31,
	2021		2020		2019
Geographic region:
United States	$	5,386	$	13,544	$	13,468
Asia		11,074		7,556		5,648
Europe		140		1,191		1,940
	$	16,600	$	22,291	$	21,056

    With the exception of the amount of service contracts and extended warranties, the Company’s product category revenues are recognized at point in time when control transfers to customers. The following presents revenue based on timing of recognition (in thousands):

	Year Ended May 31,
	2021		2020		2019
Timing of revenue recognition (in thousands):
Products and services transferred at a point in time	$	15,009	$	19,948	$	18,473
Services transferred over time		1,591		2,343		2,583
	$	16,600	$	22,291	$	21,056

Contract balances

    A receivable is recognized in the period the Company delivers goods or provides services or when the Company’s right to consideration is unconditional. The Company usually does not record contract assets because the Company has an unconditional right to payment upon satisfaction of the performance obligation, and therefore, a receivable is more commonly recorded than a contract asset.

    Contract liabilities include payments received in advance of performance under a contract and are satisfied as the associated revenue is recognized. Contract liabilities are reported on the consolidated balance sheets at the end of each reporting period as a component of deferred revenue. Contract liabilities as of May 31, 2021 and 2020 were $288,000 and $192,000, respectively. During the fiscal years ended May 31, 2021 and 2020, the Company recognized $164,000 and $1,545,000 of revenues that were included in contract liabilities as of May 31, 2020 and 2019, respectively.

Remaining performance obligations

    On May 31, 2021, the Company had $194,000 of remaining performance obligations, which were comprised of deferred service contracts and extended warranty contracts not yet delivered. The Company expects to recognize approximately 49% of its remaining performance obligations as revenue in fiscal 2022, and an additional 51% in fiscal 2023 and thereafter. The foregoing excludes the value of other remaining performance obligations as they have original durations of one year or less, and also excludes information about variable consideration allocated entirely to a wholly unsatisfied performance obligation.

Costs to obtain or fulfill a contract

    The Company generally expenses sales commissions when incurred as a component of selling, general and administrative expense as the amortization period is typically less than one year. Additionally, the majority of the Company’s cost of fulfillment as a manufacturer of products is classified as inventory and fixed assets, which are accounted for under the respective guidance for those asset types. Other costs of contract fulfillment are immaterial due to the nature of the Company’s products and their respective manufacturing process.