'Service Battery' status after upgrade to 10.9.2

After I upgraded my MBA mid 2012 to OSX 10.9.2....I keep seeing the battery status show up as 'Service Battery' very regularly....most of it shows up and a few times, it shows regular 'Battery' status.
The charge cycles for the battery is currently at just 367...and I believe Apple promises atleast 1000 charge cycles
What is going wrong here ?
Is this a software bug or is it really my MBA's battery that is going down ?
Help appreciated.
Regards,
Chandan

Reset SMC.     http://support.apple.com/kb/HT3964
Choose the method for:
"Resetting SMC on portables with a battery you should not remove on your own".
If this does not help, contact Apple.
Best.

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