Unearned Income

FY14 Financial Overview
 Revenue up 62% to $17.8 million (FY13: $11 million)
 Net profit after tax of $7.1 million (FY13: $1 million loss)
 Adjusted EBITDA of $5.8 million (FY13: $0.2 million loss)
 Adjusted EBITDA margin of 33% (FY13: -2%)
 Cash up 74% to $23.3million (FY13: $13.4 million)
 Unearned income of $13.4 million (positive lead indicator)
 Strong balance sheet with no debt and tight cash controls

Apologies if you've done this one to death earlier. My understanding of the unearned income line is as follows:

Customer A
- signs up for 2 years on January 1 2014 at $ 1200 per year,
- They pay for the entire 2 years up front,
- The entire $2400 goes into cashflow FY14,
- $600 gets booked as income for FY14
- $1200 gets allocated as unearned income for FY15,
- $600 gets allocated as unearned income for FY16.

So the unearned income component $13.4million may be allocated to FY's beyond FY15.
Any insights into length of subscriptions and customer payment terms eg . monthly, 1 year in advance, 2 years in advance.
Is this correct , thanks in advance!!

Cheers Reg