Product Warranty

6 Months Ended

Jun. 30, 2011

Product Warranty

Product Warranty

Note 6. Product Warranty

The Company generally offers a one year warranty for all of its products, the terms and conditions of which vary depending upon the product sold. For all systems sold, the Company accrues a liability for the estimated cost of standard warranty at the time of system shipment and defers the portion of systems revenue attributable to the fair value of non-standard warranty.  Costs for non-standard warranty are expensed as incurred. Factors that affect the Company’s warranty liability include the number of installed units, historical and anticipated product failure rates, material usage and service labor costs. The Company periodically assesses the adequacy of its recorded liability and adjusts the amount as necessary.

Changes in the Company’s product warranty liability are as follows:

	Six months ended June 30,
	2011			2010
	(in thousands)
Balance at December 31	$	2,713		$	726
Warranties issued during the period	2,711			1,229
Settlements made during the period	(2,214		)	(919		)
Changes in estimate of liability for pre-existing warranties during the period	1,149			11
Balance at June 30	$	4,359		$	1,047
Amount classified as current	$	4,131		$	974
Amount classified as long-term	228			73
Total Warranty Liability	$	4,359		$	1,047