Note 5 - Deferred Revenue

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE

5

—

DEFERRED REVENUE

The Company records deferred revenue when revenue is to be 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

$12.6

million as of

December 31, 2018

will be recognized over the next

12

months.

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

December 31, 2018

and

2017

(in thousands):

	December 31,
	201 8			201 7
Balance at beginning of year	$	10,719		$	9,431
Add: Payments received		14,882			14,369
Less: Revenue recognized		(13,746	)		(13,081	)
Balance at end of year	$	11,855		$	10,719

Costs for extended service contracts in

2018,

2017

and

2016

were

$7.8

million,

$6.0

million and

$6.7

million, respectively. The

$7.8

million in

2018

includes a

one

-time extended service contract cost of

$3.2

million to replace a component in

one

of the Company's legacy products (See Note

3

).