Note 6 - Deferred Service Contract Revenue

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

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, 2016 and 2015 (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Beginning Balance	$	10,512		$	12,528		$	10,469		$	12,949
Add: Payments received		3,045			2,250			6,308			5,052
Less: Revenue recognized		(3,334	)		(3,232	)		(6,554	)		(6,455	)
Ending Balance	$	10,223		$	11,546		$	10,223		$	11,546

Costs for extended service contracts were $1.6 million and $1.4 million for the three months ended June 30, 2016 and 2015, respectively, and $3.2 million and $3.1 million for the six months ended June 30, 2016 and 2015, respectively.