WARRANTY RESERVES

12 Months Ended

Sep. 30, 2011

WARRANTY RESERVES

NOTE 9.  WARRANTY RESERVES

IEC generally warrants its products and workmanship for up to twelve months from date of sale.  As an offset to warranty claims, the Company is sometimes able to obtain reimbursement from suppliers for warranty-related costs or losses.  Based on historical warranty claims experience and in consideration of sales trends, a reserve is maintained for estimated future warranty costs to be incurred on products and services sold through the balance sheet date.  An analysis of additions to and charges against IEC's consolidated warranty reserves during the years ended September 30, 2011 and 2010 is provided below.

	Years ended September 30,
Warranty Reserve	2011			2010
	(thousands)
Reserve, beginning of period	$	303		$	111
Reserves of acquired companies		62			376
Provision		412			21
Warranty costs		(376	)		(205	)
Recoveries		47			-
Reserve, end of period	$	448		$	303