Property and Equipment

9 Months Ended

Sep. 30, 2019

4. Property and Equipment

Property and equipment consisted of the following (in thousands):


	September 30,		December 31,
	2019		2018
Computers and other related equipment	$	12,085	$	10,859
Purchased and internally developed software		33,256		29,758
Furniture and fixtures		1,487		1,470
Leasehold improvements		6,795		6,795
Machinery and related equipment		581		581
		54,204		49,463
Less accumulated depreciation		(40,659)		(36,337)
Property and equipment, net	$	13,545	$	13,126

Depreciation and software amortization expense, which includes losses on disposal of property and equipment of less than $0.1 million for each of the three and nine months ended September 30, 2019 and 2018, is shown by classification below (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Product costs	$	401	$	235	$	1,162	$	629
Service costs		951		787		2,831		2,179
Sales and marketing		7		6		20		22
Product development		12		14		35		52
General and administrative		184		512		1,073		1,591
Total depreciation	$	1,555	$	1,554	$	5,121	$	4,473