Product Warranties

6 Months Ended

Jun. 30, 2014

8. Product Warranties

The Company generally offers a two-year warranty for all of its products. The Company provides for the estimated cost of product warranties at the time product revenue is recognized. Factors that affect the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty returns, and the cost per return. The Company assesses the adequacy of the warranty reserves and adjusts the amounts as necessary. Warranty obligations are included in “Accrued expenses” in the accompanying Condensed Consolidated Balance Sheets.

Product warranty activity for the three and six months ended June 30, was as follows (in thousands):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Balance at the beginning of the period	$	249		$	324		$	283		$	364
Accruals for warranties for products sold in the period		60			72			84			101
Fulfillment of warranty obligations		(77	)		(63	)		(132	)		(110	)
Revisions of estimated obligations		(7	)		(4	)		(10	)		(26	)

Balance at the end of the period	$	225		$	329		$	225		$	329