Other Financial Statement Data

9 Months Ended

Sep. 30, 2017

Balance Sheet Related Disclosures [Abstract]

7. OTHER FINANCIAL STATEMENT DATA:

The components of our inventories are as follows:


(In thousands)	September 30, 2017		December 31, 2016
Raw materials and purchased parts	$	8,022	$	6,475
Work in process	1,640		826
Finished goods	6,972		4,230
Total inventories	$	16,634	$	11,531

The components of our accrued expenses are as follows:


(In thousands)	September 30, 2017		December 31, 2016
Wages and benefits	$	959	$	2,673
Warranty liability	691		717
Other	364		366
	$	2,014	$	3,756

Warranty costs:

We provide for the estimated cost of product warranties, which cover products for periods ranging from 1 to 3 years, at the time revenue is recognized. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of component suppliers, warranty obligations are affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. If actual product failure rates, material usage or service delivery costs differ from our estimates, revisions to the estimated warranty liability would be required and could be material. At the end of each reporting period, we revise our estimated warranty liability based on these factors. The current portion of our warranty liability is included as a component of accrued expenses. The long-term portion of our warranty liability is included as a component of other liabilities.

A reconciliation of the changes in our estimated warranty liability is as follows:


	Nine Months Ended September 30,
(In thousands)	2017			2016
Balance at beginning of period	$	790		$	645
Accrual for warranties	362			615
Warranty revision	(23		)	(27		)
Settlements made during the period	(413		)	(415		)
Balance at end of period	716			818
Current portion of estimated warranty liability	(691		)	(736		)
Long-term estimated warranty liability	$	25		$	82

Deferred warranty revenue:

The current portion of our deferred warranty revenue is included as a component of advance customer payments. The long-term portion of our deferred warranty revenue is included as a component of other liabilities. A reconciliation of the changes in our deferred warranty revenue is as follows:


	Nine Months Ended September 30,
(In thousands)	2017			2016
Balance at beginning of period	$	346		$	199
Revenue deferrals	321			490
Amortization of deferred revenue	(325		)	(330		)
Total deferred warranty revenue	342			359
Current portion of deferred warranty revenue	(301		)	(278		)
Long-term deferred warranty revenue	$	41		$	81