COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS

3 Months Ended

Dec. 31, 2011

COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS

NOTE 10: COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS

Warranty Expense

The Company’s equipment is generally shipped with a one-year warranty against manufacturing defects. The Company establishes reserves for estimated warranty expense when revenue for the related equipment is recognized. The reserve for estimated warranty expense is based upon historical experience and management’s estimate of future warranty costs.

The following table reflects the reserve for product warranty activity for the three months ended December 31, 2011 and January 1, 2011:

	Three months ended
(in thousands)	December 31, 2011			January 1, 2011
Reserve for product warranty, beginning of period	$	2,245		$	2,657
Provision for product warranty		174			408
Product warranty costs paid		(805	)		(829	)
Reserve for product warranty, end of period	$	1,614		$	2,236

Other Commitments and Contingencies

The following table reflects operating lease obligations not reflected on the Consolidated Balance Sheet as of December 31, 2011:

			Payments due by fiscal year
(in thousands)	Total		2012		2013		2014		2015		thereafter
Operating lease obligations (1)	$	28,433	$	7,558	$	7,562	$	3,214	$	2,717	$	7,382

(1) The Company has minimum rental commitments under various leases which are not recorded as liabilities on the balance sheet (excluding taxes, insurance, maintenance and repairs, which are also paid by the Company) primarily for various facility and equipment leases, which expire periodically through 2018 (not including lease extension options, if applicable).

Concentrations

The following tables reflect significant customer concentrations for the three months ended and as of December 31, 2011 and January 1, 2011:

	Three months ended
	December 31, 2011			January 1, 2011
Customer net revenue as a percentage of Net Revenue
Advanced Semiconductor Engineering		15.3	%		*
Haoseng Industrial Company Limited   (1)		10.0	%		*
Customer accounts receivable as a percentage of Total Accounts Receivable
Advanced Semiconductor Engineering		17.7	%		*
Haoseng Industrial Company Limited   (1)		15.0	%		11.4	%
Siliconware Precision Industries Co. Limited		*			10.4	%
* Represents less than 10% of net revenue or total accounts receivable, as applicable.
(1)  Distributor of the Company's products.