Product Warranties

9 Months Ended

Sep. 30, 2013

9. Product Warranties

The Company generally offers a two-year warranty for all of its products. The Company provides for the estimated cost of product warranties at the time product revenue is recognized. Factors that affect the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty returns, and the cost per return. The Company assesses the adequacy of the warranty reserves and adjusts the amounts as necessary. Warranty obligations are included in “Accrued expenses” in the accompanying Condensed Consolidated Balance Sheets.

Product warranty activity for the three and nine months ended September 30, was as follows (in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Balance at the beginning of the period	$	329		$	461		$	364		$	572
Accruals for warranties for products sold in the period		127			161			228			379
Fulfillment of warranty obligations		(110	)		(133	)		(220	)		(430	)
Revisions of estimated obligations		1			(8	)		(25	)		(40	)

Balance at the end of the period	$	347		$	481		$	347		$	481