Reserve for Product Warranties

3 Months Ended

Mar. 31, 2014

Guarantees [Abstract]

Reserve for Product Warranties

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 operations.

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

Warranty reserve, December 31, 2013	$	358
Cost of warranty claims		(28	)
Warranty accrual		80
Warranty reserve, March 31, 2014	$	410