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Note 5 - Warranty
6 Months Ended
Jun. 30, 2014
Product Warranties Disclosures [Abstract]  
Product Warranty Disclosure [Text Block]

Note 5. Warranty


The Company provides a standard one-year warranty on all systems. Warranty coverage provided is for labor and parts necessary to repair the systems during the warranty period. The Company accounts for the estimated warranty cost of the standard warranty coverage as a charge to costs of revenue when revenue is recognized. The estimated warranty cost is based on historical product performance. To determine the estimated warranty reserve, the Company utilizes historical service costs to calculate the expected service expense per system and applies this to the equivalent number of units exposed under warranty. The Company updates these estimated charges every quarter.


The following table provides the changes in the product warranty accrual for the three and six months ended June 30, 2014 and 2013 (in thousands):


   

Three Months Ended

   

Six Months Ended

 
   

June 30,

   

June 30,

 
   

2014

   

2013

   

2014

   

2013

 

Beginning Balance

  $ 1,071     $ 1,059     $ 1,202     $ 1,212  

Add: Accruals for warranties issued during the period

    591       811       1,047       1,712  

Less: Settlements made during the period

    (582

)

    (821

)

    (1,169

)

    (1,875

)

Ending Balance

  $ 1,080     $ 1,049     $ 1,080     $ 1,049