Deferred Service Contract Revenue

3 Months Ended

Mar. 31, 2014

Deferred Service Contract Revenue [Abstract]

Note 6. Deferred Service Contract Revenue

The Company generates Service revenue from the sale of extended service contracts and from time and material services provided to customers who are not under a warranty or extended service contract. Service contract revenue is recognized on a straight-line basis over the period of the applicable contract. Service revenue, from customers whose systems are not under a service contract, is recognized as the services are provided.

The following table provides changes in the deferred service contract revenue balance for the three-month periods ended March 31, 2014 and 2013 (in thousands):

	March 31,
	2014			2013
Beginning Balance	$	11,637		$	8,539
Add: Payments received		3,711			3,602
Less: Revenue recognized		(3,056	)		(2,990	)
Ending Balance	$	12,292		$	9,151

Costs for extended service contracts were $1.7 million for both of the three months ended March 31, 2014 and 2013.

- Definition

The entire disclosure for deferred revenues at the end of the reporting period, and description and amounts of significant changes that occurred during the reporting period. Deferred revenue is a liability as of the balance sheet date related to a revenue producing activity for which revenue has not yet been recognized. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

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