Note 4 - Warranty and Extended Services Contract

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Product Warranty Disclosure [Text Block]

NOTE

4—

WARRANTY AND EXTENDED SERVICES CONTRACT

The Company has a direct field service organization in North America (including Canada). Internationally, the Company provides direct service support in Australia, Belgium, France, Germany, Hong Kong, Japan, and Switzerland, as well as through

third

-party service providers in Spain and the United Kingdom. In several other countries, where the Company does

not

have a direct presence, the Company provides service through a network of distributors and

third

-party service providers.

After the original warranty period, maintenance and support are offered on an extended service contract basis or on a time and materials basis. The Company provides for the estimated cost to repair or replace products under standard warranty at the time of sale. Costs incurred in connection with extended service contracts are recognized at the time when costs are incurred, except the

one

-time extended service contracts charge of

$3.2

million recorded in the year ended

December 31, 2018

related to the cost to replace a component in

one

of the Company's legacy products (Note

3

) The following table provides the changes in the product standard warranty accrual for the years ended

December 31, 2019

and

2018

(in thousands):

	December 31,
	201 9			201 8
Balance at beginning of year	$	7,827		$	3,508
Add: Accruals for warranties issued during the period		6,467			12,364
Less: Warranty related costs during the period		(7,894	)		(8,045	)
Balance at end of year	$	6,400		$	7,827