Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Opening and Closing Balances of Contract Liabilities

The Company performs its obligations under a contract with a customer by transferring products and/or services in exchange for consideration from the customer. The Company typically invoices its customers as soon as control of an asset is transferred and a receivable for the Company is established. The Company, however, recognizes a contract liability when a customer prepays for goods and/or services and the Company has not transferred control of the goods and/or services. The opening and closing balances of the Company’s contract liabilities are as follows (in thousands):

	June 30,		December 31,
	2018		2017
Undelivered elements (training and product and support services; installation for 2017)	$	624	$	980
Extended warranty contracts		1,577		1,634
Deferred royalties		17		22
Total deferred revenue		2,218		2,636
Less long-term amounts:
Deferred royalties		6		11
Total deferred revenue - long-term		6		11
Total deferred revenue - current	$	2,212	$	2,625

Summary of Disaggregation of Revenues Related to Geographic Areas

The Company’s revenues related to the following geographic areas were as follows for the periods indicated (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
United States	$	7,164	$	8,194	$	12,857	$	15,037
International		4,990		4,418		9,317		8,449
	$	12,154	$	12,612	$	22,174	$	23,486

Summary of Revenues Disaggregated by Timing of Goods and Services Transferred

Information regarding revenues disaggregated by the timing of when goods and services are transferred is as follows (in thousands):

	Three Months Ended	Six Months Ended
	June 30, 2018	June 30, 2018
Revenue recognized over time	$ 1,557	$ 3,254
Revenue recognized at a point in time	10,597	18,920
Total	$ 12,154	$ 22,174

Summary of Sales by End Market

The Company’s sales by end market were as follows for the periods indicated (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
End-customer	$	7,675	$	8,651	$	13,712	$	15,796
Distributors		4,479		3,961		8,462		7,690
	$	12,154	$	12,612	$	22,174	$	23,486

Summary of Percentages of Sales by Product line

The percentages of the Company’s sales by product line were as follows for the periods indicated:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Waterlase (laser systems)		42.9	%		42.4	%		39.2	%		41.3	%
Diodes (laser systems)		22.3	%		20.7	%		22.2	%		21.3	%
Imaging systems		3.1	%		7.5	%		4.3	%		6.7	%
Consumables and other		18.9	%		16.3	%		19.6	%		15.9	%
Services		12.8	%		12.8	%		14.7	%		14.5	%
License fees and royalties		—	%		0.3	%		—	%		0.3	%
		100.0	%		100.0	%		100.0	%		100.0	%