Reserve for Product Warranties

9 Months Ended

Sep. 30, 2013

Guarantees [Abstract]

Reserve for Product Warranties

10. 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 operations.

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		(130	)
Warranty accrual		173
Warranty reserve, September 30, 2013	$	291