Warranty Reserve

6 Months Ended

Apr. 30, 2013

(6)Warranty Reserve

Sales of the Company’s equipment are subject to a warranty obligation. Equipment warranties typically extend for a period of twelve months from the date of installation. Standard warranty terms are included in customer contracts. Under the terms of these warranties, the Company is obligated to repair or replace any components or assemblies that it deems defective in workmanship or materials. The Company reserves the right to reject warranty claims where it determines that failure is due to normal wear, customer modifications, improper maintenance or misuse. The Company maintains a warranty reserve that reflects the estimated expenses that it will incur to honor the warranties on its products. The Company adjusts the warranty reserve based on the number and type of equipment subject to warranty and the remaining months of warranty coverage. The warranty reserve adjustment reflects the Company’s historical warranty experience based on the type of equipment. Warranty provisions and claims for the six-month periods ended April 30, 2013 and 2012 were as follows:



(In thousands)	2013		2012
Balance, beginning of period	$	91	$	141
Warranty provision based on units sold		100		94
Periodic reserve adjustments		65		(17)
Warranty claims		(121)		(117)
Balance, end of period	$	135	$	101