Note 9. Deferred Revenue

12 Months Ended

May 31, 2011

Deferred Revenue Disclosure [Text Block]

9. DEFERRED REVENUE

As described in Note 1, many of the Company’s instrument sales contracts involve multiple deliverables with price guarantees, and revenues from these contracts are deferred and recognized over the term of the agreements which are generally five years.  The Company also defers revenue from service contracts over the term of the service agreements.

The additions to and recognition of deferred revenue for the year ended May 31, 2011 and May 31, 2010 were as follows:

	May 31,
	2011			2010
	(in thousands)
Balance at beginning of year	$	16,681		$	22,093
Additions to deferred revenue from new contracts		11,562			11,555
Revenue recognized during the year		(15,169	)		(16,814	)
Foreign currency translation adjustment		501			(153	)
Balance at end of year		13,575			16,681
Less: Deferred Revenue - current portion		(7,495	)		(8,994	)
Deferred  Revenue - non-current portion	$	6,080		$	7,687

The Company’s instruments have been acquired more often through rental agreements in the past three years than through sales. Revenue related to rental agreements is recognized over the rental period. These arrangements do not generate deferred revenue.