Note 5 - Warranty

6 Months Ended

Jun. 30, 2015

Notes to Financial Statements

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, 2015 and 2014 (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Beginning Balance	$	1,203		$	1,071		$	1,167		$	1,202
Add: Accruals for warranties issued during the period		736			591			1,552			1,047
Less: Settlements made during the period		(685	)		(582	)		(1,465	)		(1,169	)
Ending Balance	$	1,254		$	1,080		$	1,254		$	1,080