Note 8 - Contingencies

9 Months Ended

Mar. 31, 2015

Notes to Financial Statements

Contingencies Disclosure [Text Block]

NOTE 8 –CONTINGENCIES

Accrued Warranty

We provide for the estimated costs of hardware warranties at the time the related revenue is recognized. We estimate the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific hardware warranty terms and conditions for tape libraries generally include parts and labor over a three-year period. The warranty for power supplies is generally three years. We regularly re-evaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary.

Activity in the liability for product warranty, which is included in other accrued liabilities in the condensed balance sheets for the periods presented, is as follows (in thousands):

	Nine months Ended March 31,
	2015			2014
Beginning balance	$	159		$	190
Cost of warranty claims		(39	)		(44	)
Accruals for product warranties		44			20
Ending balance	$	164		$	166