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Other Financial Statement Data
 12 Months Ended
Dec. 31, 2017
OTHER FINANCIAL STATEMENT DATA [Abstract]  
OTHER FINANCIAL STATEMENT DATA

NOTE 9 – OTHER FINANCIAL STATEMENT DATA

Inventories consist of the following:

 

 

 

 

 

 

 

 

 

 

 

December 31,

(In thousands)

 

2017

 

2016

Raw materials and purchased parts

 

$

7,383

 

 

$

6,475

 

Work in process

 

1,666

 

 

826

 

Finished goods

 

5,344

 

 

4,230

 

Total inventories

 

$

14,393

 

 

$

11,531

 


Equipment and leasehold improvements consist of the following:

 

 

 

 

 

 

 

 

 

 

 

December 31,

(In thousands)

 

2017

 

2016

Equipment

 

$

14,088

 

 

$

13,624

 

Leasehold improvements

 

1,688

 

 

1,628

 

 

 

15,776

 

 

15,252

 

Accumulated depreciation and amortization

 

(13,469

 )

 

(12,814

)

 

 

$

2,307

 

 

$

2,438

 


Depreciation and amortization expense related to equipment and leasehold improvements was $1.3 million in 2017, $1.3 million in 2016 and $1.2 million in 2015.

 

Intangible assets consist of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

December 31, 2016

(In thousands)

 

Gross Carrying
Amount

 

Accumulated Amortization

 

Net

 

Gross Carrying
Amount

 

Accumulated Amortization

 

Net

Patents

 

$

2,687


 

$

(2,463

 )

 

$

224

 

 

$

2,567

 

 

$

(2,351

)

 

$

216

 

Software

 


206


 

(111

 )

 

95

 

 

206

 

 

(82

)

 

124

 

Marketing assets and customer relationships

 


101


 

(45

 )

 

56

 

 

101

 

 

(33

)

 

68

 

Non-compete agreements

 


101


 

(96

 )

 

5

 

 

101

 

 

(71

)

 

30

 

 

 

$

3,095


 

$

(2,715

 )

 

$

380

 

 

$

2,975

 

 

$

(2,537

)

 

$

438

  


Amortization expense in 2017, 2016 and 2015 was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

Weighted Avg. Remaining Life-Years at December 31, 2017

(In thousands)

 

2017

 

2016

 

2015

 

Patents

 

$

112

 

 

$

98

 

 

 $

110

 

 

2.0

Software

 

29

 

 

29

 

 

29

 

 

3.2

Marketing assets and customer relationships

 

12

 

 

12

 

 

12

 

 

4.8

Non-compete agreements

 

25

 

 

26

 

 

25

 

 

0.2

 

 

$

178

 

 

$

165

 

 

 $

176

 

 

  


Amortization of patents has been classified as research and development expense in the accompanying consolidated statement of operations. Estimated aggregate amortization expense based on current intangible assets for the next five years is expected to be as follows: $147,000 in 2018, $114,000 in 2019, $80,000 in 2020, $20,000 in 2021 and $9,000 in 2022.


Accrued expenses consist of the following:

 

 

 

 

 

 

 

 

 

 

 

December 31,

(In thousands)

 

2017

 

2016

Wages and benefits

 

$

1,328

 

 

$

2,673

 

Warranty liability

 

713

 

 

717

 

Other

 

244

 

 

366

 

 

 

$

2,285

 

 

$

3,756

  


Other liabilities consist of the following:

 

 

 

 

 

 

 

 

 

 

 

December 31,

(In thousands)

 

2017

 

2016

Deferred rent

 

$

—

 

 

$

111

 

Warranty liability

 

54

 

 

73

 

Deferred warranty revenue

 

34

 

 

66

 

 

 

$

88

 

 

$

250

 


Warranty costs:


We provide for the estimated cost of product warranties, which cover products for periods ranging from one to three 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. Should 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. Our warranty liability is included as a component of accrued expenses. At the end of each reporting period we revise our estimated warranty liability based on these factors.

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,  

(In thousands)

 

2017

 

2016 

 

 

2015

Balance at beginning of period

 

$

790

 

 

$

645

 

 

$

839

 

Accrual for warranties

 

582

 

 

688

 

 

 

 441

 

Warranty revision


7

 

(53

)

 


(19

 )

Settlements made during the period

 

(612

 )

 

(490

)


 

(616

) 

Balance at end of period

 

767

 

 

790

 

 

 

645

 

Current portion of estimated warranty liability

 

(713

 )

 

(717

)

 

 

(584

 )

Long-term estimated warranty liability

 

$

54

 

 

$

73

 


 $

61

 


Deferred warranty revenue:


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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 

(In thousands)

 

2017

 

2016 

 

 

2015 

Balance at beginning of period

 

$

346

 

 

$

199

 

 

 $

 475

 

Revenue deferrals

 

357

 

 

581

 

 

 

353

 

Amortization of deferred revenue

 

(444

 )

 

(434

)

 

 

(629

) 

Total deferred warranty revenue

 

259

 

 

346

 

 

 

 199

 

Current portion of deferred warranty revenue

 

(225

 )

 

(280

)

 

 

(196

 )

Long-term deferred warranty revenue

 

$

34

 

 

$

66

  

 

 $

 3