Reserve for Product Warranties

9 Months Ended

Sep. 30, 2015

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, 2014	$	503
Cost of warranty claims and expiry of contracts		(90	)
Warranty accrual		60

Warranty reserve, March 31, 2015		473
Cost of warranty claims and expiry of contracts		(24	)
Warranty accrual		67

Warranty reserve, June 30, 2015	$	516
Cost of warranty claims and expiry of contracts		(318	)
Warranty accrual		35

Warranty reserve, September 30, 2015	$	233