ACCRUED WARRANTY

9 Months Ended

Mar. 31, 2018

Product Warranties Disclosures [Abstract]

ACCRUED WARRANTY

ACCRUED WARRANTY

The Company offers warranties on certain products and records a liability for the estimated future costs associated with potential warranty claims. The warranty costs are reflected in the Company’s consolidated statements of operations and comprehensive income within cost of revenues. The warranties are typically in effect for twelve months from the distributor’s purchase date of the product. The Company’s estimate of future warranty costs is largely based on historical factors including product failure rates, material usage, and service delivery cost incurred in correcting product failures. In certain circumstances, the Company may have recourse from its contract manufacturers for replacement cost of defective products, which it also factors into its warranty liability assessment.

Warranty obligations, included in other current liabilities, were as follows (in thousands):

	Nine Months Ended March 31,
	2018			2017
Beginning balance	$	3,601		$	2,236
Accruals for warranties issued during the period	4,962			5,009
Changes in liability for pre-existing warranties during the period	(566		)	1,546
Settlements made during the period	(4,177		)	(4,579		)
Ending balance	$	3,820		$	4,212