Reserve for Product Warranties

6 Months Ended

Jun. 30, 2013

8. Reserve for Product Warranties

The Company generally provides a one-year warranty on its nCounter Analysis Systems and establishes an accrual based on historical product failure rates and actual warranty costs incurred. Warranty expense is recorded as a component of cost of revenue in the condensed consolidated statements of comprehensive loss.

The following information reconciles changes in the Company’s warranty reserve and related costs (in thousands):


Warranty reserve, December 31, 2012	$	248
Cost of warranty claims		(63	)
Warranty accrual		43

Warranty reserve, March 31, 2013		228
Cost of warranty claims		(24	)
Warranty accrual		52

Warranty reserve, June 30, 2013	$	256