Note 6 - Deferred Service Contract Revenue

6 Months Ended

Jun. 30, 2014

Deferred Revenue Disclosure [Abstract]

Deferred Revenue Disclosure [Text Block]

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 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	$	12,292		$	9,151		$	11,637		$	8,539
Add: Payments received		3,856			3,538			7,567			7,140
Less: Revenue recognized		(3,147	)		(2,974	)		(6,203	)		(5,964	)
Ending Balance	$	13,001		$	9,715		$	13,001		$	9,715

Costs for extended service contracts were $1.8 million and $3.5 million for both the three and six months ended June 30, 2014 and 2013, respectively.