Note 6 - Product Warranties

9 Months Ended

Jul. 02, 2011

Product Warranty Disclosure [Text Block]

6. PRODUCT WARRANTIES

     We offer warranties of various lengths to our customers, depending on the specific product sold.  The warranties require us to repair or replace non-performing products during the warranty period at no cost to the customer.  At the time revenue is recognized for covered products, we record a liability for estimated costs that may be incurred under our warranties.  The costs are estimated based on historical experience, any specific warranty problems that have been identified and recovery of secondary warranty cost from component suppliers.  The amounts shown below are presented net of any expected cost recovery from suppliers.  Although historical warranty costs have been within our expectations, there can be no assurance that future warranty costs will not exceed historical amounts.  We regularly evaluate the adequacy of the warranty liability and adjust the balance as necessary.

    Changes in our product warranty liability for the nine months ended July 2, 2011  and July 3, 2010 are as follows:

	Nine Months Ended
	July 2, 2011			July 3, 2010
Accrued liability at beginning of period	$	570,000		$	461,721
Increases in reserve		378,008			412,057
Expenses		(384,008	)		(358,057	)
Accrued liability at end of period	$	564,000		$	515,721