3. Warranty Reserve

6 Months Ended

Dec. 31, 2015

Standard Product Warranty Disclosure [Abstract]

Warranty Reserve

The warranty periods for our products generally range from one to five years. We establish reserves for estimated product warranty costs at the time revenue is recognized based upon our historical warranty experience, and additionally, for any known product warranty issues. Our warranty obligation is affected by product failure rates, use of materials or service delivery costs that differ from our estimates. As a result, increases or decreases to warranty reserves could be required, which could impact our gross margins.

The following table presents details of our warranty reserve:

	Six Months Ended			Year Ended
	December 31,			June 30,
	2015			2015
	(In thousands)
Beginning balance	$	163		$	150
Charged to cost of revenues		15			112
Usage		(36	)		(99	)
Ending balance	$	142		$	163