Reserve for Product Warranties

6 Months Ended

Jun. 30, 2014

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 repair rates and actual warranty costs incurred. Warranty expense is recorded as a component of cost of product and service 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
Cost of warranty claims		(32	)
Warranty accrual		100

Warranty reserve, June 30, 2014	$	478