Revenue from Contracts with Customers (Tables)

6 Months Ended

Dec. 31, 2018

Revenue Disaggregated by Geographic Region, Product Lines, and Timing of Recognition

The following tables summarizes our revenue disaggregated by geography, based on our shipping location (in thousands):

Geographic Region:	Three Months Ended December 31, 2018		Six Months Ended December 31, 2018
Americas Sales	$	6,992	$	15,371
Europe Sales		8,871		17,653
Asia Sales		5,690		9,971
Total Net Sales	$	21,553	$	42,995

We have three major product lines: Measurement Solutions, 3D Scanning Solutions and Value Added Services.  Sales by our product lines are as follows (in thousands):

Product Lines	Three Months Ended December 31, 2018		Six Months Ended December 31, 2018
Measurement Solutions	$	19,500	$	39,408
3D Scanning Solutions		982		1,712
Value Added Service		1,071		1,875
Total Net Sales	$	21,553	$	42,995

The following table summarizes these two categories for the three and six months ended December 31, 2018 (in thousands):

Timing of Revenue Recognition	Three Months Ended December 31, 2018		Six Months Ended December 31, 2018
Goods transferred at a point of time	$	16,581	$	31,781
Services transferred over time		4,972		11,214
Total Net Sales	$	21,553	$	42,995

Summary of Remaining Performance Obligations/Backlog

The estimated recognition of our Backlog by year is as follows (in thousands):

Years Ending June 30,	Amount
2019 (excluding the six months ended December 31, 2018)	$	31,311
2020		5,570
2021		786
2022		426
2023		1
after 2023		-
Total Backlog	$	38,094

Summary of Current Balances of Contract Balances

Current balances of our contract balances are as follows (in thousands):

Balance Sheet Account	December 31, 2018			July 1, 2018			Increase  / (Decrease)
Unbilled receivables	$	4,635		$	1,864		$	2,771
Deferred revenue		(7,389	)		(6,715	)		(674	)
Net Unbilled receivables / (Deferred revenue)	$	(2,754	)	$	(4,851	)	$	2,097

ASC 606 [Member]

Summary of Cumulative Effect of Changes to Unaudited Financial Statements

The following table summarizes the cumulative effect of the changes to our unaudited Consolidated Balance Sheet as of July 1, 2018 from the adoption of ASC 606:

							Opening
	At June 30,			ASC 606			Balance at
	2018			Adjustments			July 1, 2018
Assets
Unbilled receivables	$	-		$	1,864		$	1,864
Inventories		13,829			(1,350	)		12,479
Other current assets		1,327			49			1,376
Liabilities and Shareholders' Equity
Deferred revenue		8,691			(1,976	)		6,715
Long-Term Deferred Income Tax Liability		1,717			490			2,207
Retained earnings (deficit)		(510	)		2,049			1,539

The following table summarizes the cumulative effect of the changes to our unaudited Consolidated Balance Sheet as of December 31, 2018 from the adoption of ASC 606 (in thousands, except per share amount):

	As reported						Balances
	December 31,			ASC 606			without adoption
	2018			Adjustments			of ASC 606
	(unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	6,899		$	-		$	6,899
Short-term investments		1,131			-			1,131
Receivables:
Billed receivables, net		28,753			-			28,753
Unbilled receivables, net		4,635			(4,635	)		-
Other receivables		284			-			284
Inventories, net		11,143			2,687			13,830
Other current assets		1,900			(249	)		1,651
Total current assets		54,745			(2,197	)		52,548
Property and Equipment, Net		6,785			-			6,785
Goodwill		7,859			-			7,859
Intangible Assets, Net		3,428			-			3,428
Long-Term Investments		725			-			725
Long-Term Deferred Income Tax Asset		1,100			-			1,100
Total Assets	$	74,642		$	(2,197	)	$	72,445
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Line of credit and short-term notes payable	$	69		$	-		$	69
Accounts payable		6,911			-			6,911
Accrued liabilities and expenses		4,177			-			4,177
Accrued compensation		1,940			-			1,940
Current portion of taxes payable		432			-			432
Income taxes payable		1,134						1,134
Reserves for restructuring and other charges		66			-			66
Deferred revenue		7,389			1,679			9,068
Total current liabilities		22,118			1,679			23,797
Long-Term Taxes Payable		250			-			250
Long-Term Deferred Income Tax Liability		1,718			(939	)		779
Other Long-Term Liabilities		593			-			593
Total Liabilities	$	24,679		$	740		$	25,419
Shareholders' Equity
Preferred stock		-			-			-
Common stock		96			-			96
Accumulated other comprehensive loss		(2,864	)		119			(2,745	)
Additional paid-in capital		48,753			-			48,753
Retained earnings (deficit)		3,978			(3,056	)		922
Total Shareholders' Equity	$	49,963		$	(2,937	)	$	47,026
Total Liabilities and Shareholders' Equity	$	74,642		$	(2,197	)	$	72,445

The following tables summarize the effect of adopting ASC 606 on our unaudited Consolidated Statement of Operations for the three and six months ended December 31, 2018 (in thousands):

	As reported
	Three Months Ended			ASC 606			Balances without
	December 31, 2018			Adjustments			adoption of ASC 606
Net Sales	$	21,553		$	(273	)	$	21,280
Cost of Sales		13,703			(173	)		13,530
Gross Profit		7,850			(100	)		7,750
Operating Expenses
Selling, general and administrative		4,942			16			4,958
Engineering, research and development		2,080			-			2,080
Severance, impairment and other charges		(609	)		-			(609	)
Total operating expenses		6,413			16			6,429
Operating Income		1,437			(116	)		1,321
Other Income and (Expenses)
Interest expense, net		(29	)		-			(29	)
Foreign currency gain, net		151			-			151
Other income (expenses), net		5			-			5
Total other income and (expenses)		127			-			127
Income Before Income Taxes		1,564			(116	)		1,448
Income Tax (Expense) Benefit		(17	)		172			155
Net Income	$	1,547		$	56		$	1,603

	As reported
	Six Months Ended			ASC 606			Balances without
	December 31, 2018			Adjustments			adoption of ASC 606
Net Sales	$	42,995		$	(2,577	)	$	40,418
Cost of Sales		26,853			(1,321	)		25,532
Gross Profit		16,142			(1,256	)		14,886
Operating Expenses
Selling, general and administrative		9,577			200			9,777
Engineering, research and development		4,278			-			4,278
Severance, impairment and other charges		(609	)		-			(609	)
Total operating expenses		13,246			200			13,446
Operating Income (Loss)		2,896			(1,456	)		1,440
Other Income and (Expenses)
Interest expense, net		(56	)		-			(56	)
Foreign currency loss, net		(51	)		-			(51	)
Other income (expenses), net		5			-			5
Total other income and (expenses)		(102	)		-			(102	)
Income (Loss) Before Income Taxes		2,794			(1,456	)		1,338
Income Tax (Expense) Benefit		(355	)		449			94
Net Income (Loss)	$	2,439		$	(1,007	)	$	1,432