Revenue from Contracts with Customers

12 Months Ended

Jun. 30, 2019

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

3.Revenue from Contracts with Customers

Disaggregated Revenue

We manage our business under three operating segments: Americas, Europe and Asia. All of our operating segments rely on our core technologies and sell the same products, primarily in the global automotive industry. The segments also possess similar economic characteristics, resulting in similar long-term expected financial performance. In addition, we sell to substantially the same customers in all of our operating segments. Accordingly, our operating segments are aggregated into one reportable segment.

See Note 21, of the Notes to the Consolidated Financial Statements, “Segment and Geographic Information” for revenue by geography and product line.

We have three major product lines: Measurement Solutions, 3D Scanning Solutions and Value Added Services.  

Our revenues can be disaggregated between two categories (1) goods transferred at a point in time, which typically includes the equipment performance obligation of our Measurement Solutions and contracts that include a single performance obligation and (2) services transferred over time, which include installation, labor support and training performance obligations.

The following table summarizes these two categories for the twelve months ended June 30, 2019 (in thousands):

	Twelve Months Ended
Timing of Revenue Recognition	June 30, 2019
Goods transferred at a point of time	$	57,784
Services transferred over time		19,038
Total Net Sales	$	76,822

Remaining Performance Obligations

The estimated recognition of our remaining unsatisfied performance obligations beyond one year is as follows (in thousands):

Years Ending June 30,	Amount
2021	$	780
2022		114
2023		-
2024		-
after 2024		-
Total	$	894

Contract Balances

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

Balance Sheet Account	June 30, 2019			July 1, 2018			Increase / (Decrease)
Unbilled receivables	$	5,394		$	1,864		$	3,530
Deferred revenue		(6,649	)		(7,454	)		805
Net Unbilled receivables / (Deferred revenue)	$	(1,255	)	$	(5,590	)	$	4,335

The change in our net Unbilled receivables / (Deferred revenue) from July 1, 2018 to June 30, 2019 was primarily due to the amount of revenue recognized as we satisfied performance obligations during the twelve months ended June 30, 2019, partially offset by the amount and timing of invoicing during that same period related to our Measurement Solutions and 3D Scanning Solutions. During the twelve months ended June 30, 2019, we recognized revenue of $5,454,000 that was included in “Deferred revenue” at July 1, 2018.

Financial Statement Impact of Adopting ASC 606

The following table summarizes the cumulative effect of the changes to our unaudited Consolidated Balance Sheet as of June 30, 2019 from the adoption of ASC 606 (in thousands, except per share amount):

	As reported						Balances
	June 30,			ASC 606			without adoption
	2019			Adjustments			of ASC 606
ASSETS
Current Assets
Cash and cash equivalents	$	4,585		$	-		$	4,585
Short-term investments		1,431						1,431
Receivables:
Billed receivables, net		27,449			-			27,449
Unbilled receivables, net		5,394			(5,394	)		-
Other receivables		200			-			200
Inventories, net		10,810			3,970			14,780
Other current assets		1,529			(165	)		1,364
Total current assets		51,398			(1,589	)		49,809
Property and Equipment, Net		6,538			-			6,538
Goodwill		1,741			-			1,741
Intangible assets, Net		1,816			-			1,816
Long-Term Investment		725			-			725
Long-Term Deferred Income Tax Assets		620			333			953
Total Assets	$	62,838		$	(1,256	)	$	61,582
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Line of credit and short-term notes payable	$	-		$	-		$	-
Accounts payable		7,397			-			7,397
Accrued liabilities and expenses		3,609			-			3,609
Accrued compensation		1,646			-			1,646
Current portion of taxes payable		320			-			320
Income taxes payable		536			-			536
Reserves for restructuring and other charges		44			-			44
Deferred revenue		6,649			2,489			9,138
Total current liabilities		20,201			2,489			22,690
Long-Term Taxes Payable		114			-			114
Long-Term Deferred Income Tax Liability		41			-			41
Other Long-Term Liabilities		556			-			556
Total Liabilities	$	20,912		$	2,489		$	23,401
Shareholders' Equity
Preferred stock		-			-			-
Common stock		97			-			97
Accumulated other comprehensive loss		(3,079	)		-			(3,079	)
Additional paid-in capital		49,083			-			49,083
Retained deficit		(4,175	)		(3,745	)		(7,920	)
Total Shareholders' Equity	$	41,926		$	(3,745	)	$	38,181
Total Liabilities and Shareholders' Equity	$	62,838		$	(1,256	)	$	61,582

The following table summarizes the effect on our unaudited Consolidated Statement of Operations for the twelve months ended June 30, 2019 of adopting ASC 606 (in thousands):

	As reported
	Twelve Months Ended			ASC 606			Balances without
	June 30, 2019			Adjustments			adoption of ASC 606
Net Sales	$	76,822		$	(4,043	)	$	72,779
Cost of Sales		49,630			(2,506	)		47,124
Gross Profit		27,192			(1,537	)		25,655
Operating Expenses
Selling, general and administrative		18,980			2			18,982
Engineering, research and development		8,040			-			8,040
Severance, impairment and other charges		6,930			-			6,930
Total operating expenses		33,950			2			33,952
Operating (Loss) Income		(6,758	)		(1,539	)		(8,297	)
Other Income and (Expenses)
Interest expense, net		(252	)		-			(252	)
Foreign currency loss, net		(90	)		-			(90	)
Other income (expenses), net		97			-			97
Total other income and (expenses)		(245	)		-			(245	)
(Loss) Income Before Income Taxes		(7,003	)		(1,539	)		(8,542	)
Income Tax (Expense) Benefit		212			(157	)		55
Net (Loss) Income	$	(6,791	)	$	(1,696	)	$	(8,487	)