3. Warranty Reserve

9 Months Ended

Mar. 31, 2017

Product Warranties Disclosures [Abstract]

Warranty Reserve

The standard warranty periods we provide for our products typically 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 for any known or anticipated product warranty issues. Our warranty obligations are impacted by a number of factors, including historical warranty costs, actual product failure rates, service delivery costs, and the use of materials. If our actual results are different from our assumptions, increases or decreases to warranty reserves could be required, which could impact our cost of revenue and gross margins.

The following table presents details of our warranty reserve:

	Nine Months Ended			Year Ended
	March 31,			June 30,
	2017			2016
	(In thousands)
Beginning balance	$	138		$	163
Charged to cost of revenue		34			91
Usage		(56	)		(116	)
Ending balance	$	116		$	138