Other Financial Statement Data

9 Months Ended

Sep. 30, 2018

Balance Sheet Related Disclosures [Abstract]

7. OTHER FINANCIAL STATEMENT DATA:

The components of our inventories were as follows:


(In thousands)	September 30, 2018		December 31, 2017
Raw materials and purchased parts	$	7,383	$	7,383
Work in process	1,633		1,666
Finished goods	4,919		5,344
Total inventories	$	13,935	$	14,393

The components of our accrued expenses were as follows:


(In thousands)	September 30, 2018		December 31, 2017
Wages and benefits	$	1,607	$	1,328
Warranty liability	713		713
Other	336		244
	$	2,656	$	2,285

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 components provided by suppliers, warranty obligations do arise. These obligations are affected by product failure rates, the costs of materials used and service delivery expenses incurred in correcting a product failure. If actual product failure rates and material or service delivery costs differ from our estimates, revisions to the estimated warranty liability are 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)	2018			2017
Balance at beginning of period	$	767		$	790
Accrual for warranties	399			362
Warranty revision	(30		)	(23		)
Settlements made during the period	(368		)	(413		)
Balance at end of period	768			716
Current portion of estimated warranty liability	(713		)	(691		)
Long-term estimated warranty liability	$	55		$	25

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)	2018			2017
Balance at beginning of period	$	259		$	346
Revenue deferrals	289			321
Amortization of deferred revenue	(310		)	(325		)
Total deferred warranty revenue	238			342
Current portion of deferred warranty revenue	(228		)	(301		)
Long-term deferred warranty revenue	$	10		$	41