Note 4 - Contingencies

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Contingencies Disclosure [Text Block]

NOTE

4

–CONTINGENCIES

Accrued Warranty

We provide a

three

-year advance replacement warranty on all XLS and RLS libraries and a

two

-year warranty on our Q-Series libraries. This includes replacement of components, or if necessary, complete libraries. XLS libraries sold in North America also include

one

year of on-site service. Customers

may

purchase on-site service if they are located in the United States, Canada, and selected countries in Europe, Asia Pacific and Latin America. All customers

may

purchase extended warranty service coverage upon expiration of the standard warranty.

We provide a

three

-year warranty on all power supplies that includes repair or if necessary, replacement of the power supply.

A provision for costs related to warranty expense is recorded when revenue is recognized, which is estimated based on historical warranty costs incurred.

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

	Nine months Ended September 30, 2019			Year Ended December 31, 201 8
	(unaudited)
Beginning balance	$	365		$	322
Cost of warranty claims		(13	)		(15	)
Accruals for product warranties		(11	)		58
Ending balance	$	341		$	365