NOTE D - COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS, NET

3 Months Ended

Jul. 31, 2018

Long-term Contracts or Programs Disclosure [Text Block]

NOTE D – COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS, NET

At July 31, 2018 and April 30, 2018, costs and estimated earnings in excess of billings, net, consisted of the following:

	July 31, 2018			April 30, 2018
	(In thousands)
Costs and estimated earnings in excess of billings	$	8,042		$	5,266
Billings in excess of costs and estimated earnings		(1,310	)		(172	)
Net asset	$	6,732		$	5,094

Such amounts represent revenue recognized on long-term contracts that had not been billed at the balance sheet dates or represent a liability for amounts billed in excess of the revenue recognized. Amounts are billed to customers pursuant to contract terms, whereas the related revenue is recognized on the percentage of completion basis at the measurement date. For the most part, the recorded amounts will be billed and collected or revenue recognized within twelve months of the balance sheet date. Revenue on these long-term contracts is accounted for on a percentage of completion basis. During three months ended July 31, 2018 and 2017, revenue recognized under percentage of completion contracts was approximately $9.3 million and $6.4 million, respectively. If contract losses are anticipated, costs and estimated earnings in excess of billings are reduced for the full amount of such losses when they are determinable. Total contract losses at July 31, 2018 were approximately $70,000. There were no contract losses for the same fiscal 2018 period.