8. PRODUCT WARRANTIES

6 Months Ended

Nov. 30, 2016

Product Warranties Disclosures [Abstract]

8. PRODUCT WARRANTIES

8. PRODUCT WARRANTIES

The Company provides for the estimated cost of product warranties at the time revenues are recognized on the products shipped. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required.

The standard warranty period is one year for systems and ninety days for parts and service.

The following is a summary of changes in the Company's liability for product warranties during the three and six months ended November 30, 2016 and 2015 (in thousands):

	Three Months Ended						Six Months Ended
	November 30,						November 30,
	2016			2015			2016			2015
Balance at the beginning of the period	$	90		$	219		$	155		$	137
Accruals for warranties issued during the period		11			128			11			237
Accruals and adjustments (change in estimates) related to pre-existing warranties during the period		—			—			(54	)		—
Settlement made during the period (in cash or in kind)		(29	)		(42	)		(40	)		(69	)
Balance at the end of the period	$	72		$	305		$	72		$	305

The accrued warranty balance is included in accrued expenses on the accompanying condensed consolidated balance sheets.