Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies [Abstract]

Product warranty accrued liability

We warrant our products for a specific period of time, generally twelve months, against material defects. We provide for the estimated future costs of warranty obligations in cost of sales when the related revenue is recognized. The accrued warranty costs represent the best estimate at the time of sale of the total costs that we expect to incur to repair or replace product parts that fail while still under warranty. The amount of accrued estimated warranty costs are primarily based on historical experience as to product failures as well as current information on repair costs. On a quarterly basis, we review the accrued balances and update these based on the historical warranty cost trends. The following table reflects the change in our warranty accrual which is included in "accrued liabilities" on the condensed consolidated balance sheets during the three and nine months ended September 30, 2012 and 2011 (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Beginning accrued warranty and related costs	$	740		$	877		$	1,003		$	740
Benefits to cost of revenue		(135	)		(139	)		(637	)		(410	)
Actual warranty expenditures		92			74			331			482
Ending accrued warranty and related costs	$	697		$	812		$	697		$	812

Outstanding contractual obligations

Outstanding contractual obligations as of September 30, 2012 are summarized as follows (in thousands):

	Payments due by period
Contractual Obligations	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating leases	$	1,114	$	395	$	664	$	55	$	-
Royalty agreement		4,439		913		1,600		1,207		719
Total	$	5,553	$	1,308	$	2,264	$	1,262	$	719