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Balance Sheet Components
 12 Months Ended
Dec. 31, 2013
Balance Sheet Components [Abstract]  
Balance Sheet Components
Consolidated balance sheet components
Inventories
  
 
December 31,
(in thousands)
 
2013
 
2012
Raw materials
 
$
806

 
$
23

Finished goods
 
4,859

 
2,749

Total inventories
 
$
5,665

 
$
2,772

Property and equipment, net
  
 
December 31,
(in thousands)
 
2013
 
2012
Computer equipment and software
 
$
7,345

 
$
4,127

Furniture, fixtures and equipment
 
924

 
886

Leasehold improvements
 
2,125

 
1,654

Manufacturing tools and equipment
 
3,081

 
2,710

Construction in process
 
555

 
1,100

Property and equipment, at cost
 
14,030

 
10,477

Less: Accumulated depreciation
 
(8,665
)
 
(6,846
)
Property and equipment, net
 
$
5,365

 
$
3,631

Depreciation and amortization expense for property and equipment for the years ended December 31, 2013, 2012 and 2011 was $1.8 million, $1.7 million, and $1.0 million, respectively.
Net investment in sales-type leases
The Company has sales-type leases with terms of 1.25 to 4 years. Sales-type lease receivables are collateralized by the underlying equipment. The components of our net investment in sales-type leases are as follows:
 
December 31,
(in thousands)
2013
 
2012
Net minimum lease payments to be received
$
2,597

 
$
1,063

Less: Unearned interest income and executory revenue portion
(1,167
)
 
(527
)
Net investment in sales-type leases
1,430

 
536

Less: Current portion
(620
)
 
(243
)
Non-current net investment in sales-type leases
$
810

 
$
293

There were no allowances for doubtful accounts on these leases as of December 31, 2013 and 2012. There is no guaranteed or unguaranteed residual value on the leased equipment. The current and non-current net investments in sales-types leases of $0.6 million and $0.8 million as of December 31, 2013 are reported as components of the consolidated balance sheet captions "other receivables" and "other long-tern assets", respectively.
The minimum lease payments expected for future years under sales-type leases as of December 31, 2013 were as follows:
(in thousands)
Future lease payments
2014
$
929

2015
806

2016
633

2017
229

     Total
$
2,597


Accrued payroll and other current liabilities
 
  
 
December 31,
(in thousands)
 
2013
 
2012
Payroll and related expenses
 
$
5,065

 
$
7,845

Accrued payables
 
2,259

 
1,978

Deferred rent, current portion
 
490

 
591

Lease financing, current portion
 
528

 
212

Product warranty
 
840

 
297

Sales and use tax payable
 
259

 
397

Other
 
400

 
434

        Total accrued payroll and other current liabilities
 
$
9,841

 
$
11,754

The Company provides for the estimated costs of hardware warranties at the time the related revenue is recognized. Costs are estimated based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific hardware warranty includes parts and labor over a period generally ranging from one to three years. The Company provides no warranty for software. The Company regularly re-evaluates its estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary.
A reconciliation of the changes in the Company’s warranty reserve for 2013, 2012 and 2011 is as follows:
 
 
Years ended December 31,
(in thousands)
 
2013
 
2012
 
2011
Warranty balance at the beginning of the period
 
$
297

 
$
983

 
$
605

Warranty expense accrued for shipments in period
 
1,185

 
540

 
1,563

Changes in liability related to pre-existing warranties
 
536

 
(242
)
 
50

Warranty settlements made
 
(1,178
)
 
(984
)
 
(1,235
)
Warranty balance at the end of the period
 
$
840

 
$
297

 
$
983