BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2012

BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of activity in the allowance for doubtful accounts

Activity in the allowance for doubtful accounts for 2012 and 2011 was as follows (in thousands):

	December 31, 2012			December 31, 2011
Beginning balance	$	284		$	226
Additional reserves		(25	)		74
Write-offs		(82	)		(16	)
Ending balance	$	177		$	284

Schedule of inventories including costs of materials, direct labor and manufacturing overhead, and stated at the lower of cost (first-in, first-out basis) or market

 Inventories include costs of materials, direct labor and manufacturing overhead, and are stated at the lower of cost (first-in, first-out basis) or market, as follows (in thousands):

	December 31, 2012			December 31, 2011
Parts and raw materials	$	13,174		$	11,268
Work-in-process		1,504			2,017
Finished goods		2,096			3,090
		16,774			16,375
Less reserves		(2,073	)		(1,946	)
Inventories, net	$	14,701		$	14,429

Schedule of classification of property, plant and equipment

Property, plant and equipment is classified as follows (in thousands):

	Useful lives	December 31, 2012			December 31, 2011
Land		$	290		$	290
Building and improvements	5 - 39 years		3,713			3,387
Machinery, equipment, tools and dies	3 - 15 years		13,483			12,633
Furniture, fixtures and other	3 - 10 years		3,996			3,037
			21,482			19,347
Less accumulated depreciation			(12,851	)		(11,995	)
Property, plant and equipment, net		$	8,631		$	7,352

Schedule of changes in the reserve for product warranty claims

Changes in the Company's reserve for product warranty claims during 2012 and 2011, were as follows (in thousands):

	December 31, 2012			December 31, 2011
Warranty reserve at beginning of the year	$	372		$	341
Provision		579			255
Warranty expenditures		(411	)		(215	)
Effect of foreign currency translation		11			(9	)
Warranty reserve at end of year	$	551		$	372

Schedule of accrued liabilities

Accrued liabilities consist of the following (in thousands):

	December 31, 2012		December 31, 2011
Compensation and fringe benefits	$	4,230	$	6,525
Warranty reserve		551		372
Other accrued expenses		1,145		945
	$	5,926	$	7,842

Schedule of financial assets accounted for at fair value on a recurring basis

The following table presents the Company's financial assets that are accounted for at fair value on a recurring basis as of December 31, 2012 and December 31, 2011, respectively, by level within the fair value hierarchy (in '000s):

	December 31, 2012
	Level 1		Level 2		Level 3
Assets
Pension Plan Assets	$	4,086		0		0
Other long term assets		1,991		0		0

	December 31, 2011
	Level 1		Level 2		Level 3
Assets
Pension Plan Assets	$	3,418		0		0
Other long term assets		688		0		0