Note 5 - Deferred Revenue

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Contract with Customer Liability [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

76%

of the Company’s deferred revenue balance of

$14.2

million as of

December 31, 2019

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, 2019

and

2018

(in thousands):

	December 31,
	201 9			2018*
Balance at beginning of year	$	12,566	$	11,656
Add: Payments received		17,127		14,883
Less: Revenue deferred as of January 1, 2019		(9,451)		(8,206)
Less: Revenue included in the beginning balance and recognized as revenue in the current year		(6.021)		(5,767)
Balance at end of year	$	14,222	$	12,566

 *The

2018

presentation  in the table above has been revised to include deferred revenue of

$11,656

at

January 1, 2018

and

$12,566

at

December 31, 2018

and related changes therein that were previously excluded.

Costs for extended service contracts in

2019,

2018

and

2017

were

$9.3million,

$7.8

million, and

$6.0

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

).