Note 6 - Deferred Service Contract Revenue

3 Months Ended

Mar. 31, 2017

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

months ended

March

31,

2017

and

2016

(in thousands):

	Three Months Ended
	March 3 1 ,
	201 7			201 6
Beginning Balance	$	9,431		$	10,469
Add: Payments received		3,391			3,263
Less: Revenue recognized		(3,267	)		(3,220	)
Ending Balance	$	9,555		$	10,512

Costs for extended service contracts

were

$1.9

million and

$1.6

million for the

three

months ended

March

31,

2017

and

2016,

respectively.