Note 8 - Contract Balance

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Deferred Revenue Disclosure [Text Block]

Note

8.

 Contract Balances

The Company records deferred revenue when revenue is recognized subsequent to invoicing.  For extended service contracts, the Company generally invoices customers at the beginning of the extended service contract term.  The Company’s extended service contracts typically have one,

two

or

three

year terms.  Deferred revenue also includes payments for installation, training and extended marketing support service.  Approximately

79%

of the Company’s deferred revenue balance of

$11.3

million as of

September 30, 2018

will be recognized over the next

12

months.

The following table provides changes in the deferred contract revenue balance for the

three

and

nine

 months ended

September 30, 2018

and

2017

(in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Beginning Balance	$	11,807	$	10,013	$	11,656	$	9,431
Add: Payments received		3,609		3,178		12,025		10,290
Less: Revenue recognized		(4,097)		(3,233)		(12,362)		(9,763)
Ending Balance	$	11,319	$	9,958	$	11,319	$	9,958

Costs for extended service contracts for the

three

and

nine

months ended

September 30, 2018,

were

$1.7

million and 

$5.7

million, respectively.