Balance Sheet Information

3 Months Ended

Mar. 31, 2013

Basis of Presentation/Balance Sheet Information [Abstract]

Balance Sheet Information

6. Balance Sheet Information

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are recorded at invoiced amount with standard net terms that range between 30 and 60 days. The Company extends credit to its customers based on an evaluation of a customer’s financial condition and collateral is generally not required. The Company maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable. The allowance is based on the Company’s assessment of known delinquent accounts, historical experience, and other currently available evidence of the collectability and the aging of accounts receivable. The Company’s allowance for doubtful accounts was $0.2 million at March 31, 2013 and at December 31, 2012. The provision for doubtful accounts is included in sales and marketing expense in the condensed consolidated statements of operations.

Inventories

Inventories are stated at the lower of cost or market and include material, labor and overhead costs using the first-in, first-out (“FIFO”) method of costing. Inventories as of March 31, 2013 and December 31, 2012 were composed of raw materials, sub-assemblies, finished goods and work-in-process. The Company had consigned inventory with customers of $1.5 million at March 31, 2013 and $1.2 million at December 31, 2012. The Company records allowances to reduce the value of inventory to the lower of cost or market, including allowances for excess and obsolete inventory. The allowance for inventory losses was $2.0 million at March 31, 2013 and December 31, 2012, respectively.

Inventories consisted of the following at March 31, 2013 and December 31, 2012:

	March 31,		December 31,
	2013		2012
Raw materials	$	11,488	$	12,226
Work in process		844		789
Finished goods		4,516		4,558
Inventories, net	$	16,848	$	17,573

Prepaid and Other Current Assets

Prepaid assets are stated at cost and are amortized over the useful lives (up to one year) of the assets.

Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. The Company depreciates computer equipment over three to five years, office equipment, manufacturing and test equipment, and motor vehicles over five years, furniture and fixtures over seven years, and buildings over 30 years. Leasehold improvements are amortized over the shorter of the corresponding lease term or useful life. Depreciation expense and gains and losses on the disposal of property and equipment are included in cost of sales and operating expenses in the condensed consolidated statements of operations. Maintenance and repairs are expensed as incurred.

Property and equipment consists of the following at March 31, 2013 and December 31, 2012:

	March 31,			December 31,
	2013			2012
Building	$	6,207		$	6,207
Computers and office equipment		10,194			9,970
Manufacturing and test equipment		9,769			9,495
Furniture and fixtures		1,258			1,256
Leasehold improvements		580			519
Motor vehicles		150			150
Total property and equipment		28,158			27,597
Less: Accumulated depreciation and amortization		(15,226	)		(14,590	)
Land		1,770			1,770
Property and equipment, net	$	14,702		$	14,777

Depreciation and amortization expense was approximately $0.7 Million and $0.6 million for the three months ended March 31, 2013 and 2012, respectively.

Liabilities

Accrued liabilities consist of the following at March 31, 2013 and December 31, 2012:

	March 31,		December 31,
	2013		2012
Inventory receipts	$	1,756	$	2,191
Paid time off		1,143		1,067
Professional fees		852		269
Payroll, bonuses, and other employee benefits		727		873
Warranties		277		270
Real estate taxes		213		170
Employee stock purchase plan		122		276
Sales tax		107		156
Deferred liabilities		105		127
Restructuring		77		0
Other		640		517
Total	$	6,019	$	5,916

Long-term liabilities consist of the following:

	March 31,		December 31,
	2013		2012
Executive deferred compensation plan	$	1,694	$	1,652
Reserve for uncertain tax positions		842		842
Deferred rent		166		166
Deferred revenues		78		74
Long-term obligations under capital leases		2		2
	$	2,782	$	2,736