7.	CERTAIN FINANCIAL STATEMENT INFORMATION

Accounts receivable:

Accounts receivables at March 31, 2013 and December 31, 2012 consisted of the following (in thousands):

	March 31, 2013			December 31, 2012
Accounts receivable	$	13,031		$	16,699
Less: allowance for doubtful accounts		(136	)		(96	)
Total	$	12,895		$	16,603

Inventories:

Inventories are stated at the lower of cost, which approximates actual costs on a first in, first out basis, or market. Inventories at March 31, 2013 and December 31, 2012 consisted of the following (in thousands):

	March 31, 2013		December 31, 2012
Finished goods	$	12,140	$	10,886
Raw materials		154		354
Inventories, net	$	12,294	$	11,240

Accrued Liabilities:

Accrued liabilities at March 31, 2013 and December 31, 2012 consisted of the following (in thousands):

	March 31, 2013		December 31, 2012
Payroll and related	$	2,073	$	2,166
Sales commissions		713		1,112
Warranty		330		406
Audit and legal services		236		368
Other		884		897
Total accrued liabilities	$	4,236	$	4,949

Warranty Reserve

The Company warrants its products against material defects for a specific period of time, generally twelve months. The Company provides 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 the Company expects to incur to repair or replace product parts which fail while still under warranty. The amount of accrued estimated warranty costs is primarily based on current information on repair costs. The Company periodically reviews the accrued balances and updates the historical warranty cost trends.

The following table summarizes warranty reserve activity during the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended March 31,
	2013			2012
Warranty accrual, beginning of period	$	406		$	565
Changes in liability for pre-existing warranties		(38	)		—
Deductions for warranty claims processed during the period		(38	)		(64	)
Warranty accrual, end of period	$	330		$	501

Accumulated Other Comprehensive Income (Loss):

The components of accumulated other comprehensive income (loss) at March 31, 2013 and December 31, 2012, and the reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2013, net of taxes, were as follows (in thousands):

	Foreign Currency Translation Adjustments			Net Unrealized Gain (Loss) on Short-Term Investments			Total
Accumulated other comprehensive income (loss) as of December 31, 2012	$	(96	)	$	20		$	(76	)
Other comprehensive income (loss), net of tax		(756	)		(19	)		(775	)
Accumulated other comprehensive income (loss) as of March 31, 2013	$	(852	)	$	1		$	(851	)

The Company did not have any amounts reclassified from accumulated other comprehensive income (loss) for the three months ended March 31, 2013. The Company did not have any other-than-temporary gain or loss reflected in accumulated other comprehensive income (loss) as of March 31, 2013 and December 31, 2012.