Warranty Reserve

3 Months Ended

Jan. 31, 2012

6. Warranty Reserve

Sales of the Company's equipment are subject to a warranty obligation. Equipment warranties typically extend for a period of twelve months from the date of installation. Standard warranty terms are included in customer contracts. Under the terms of these warranties, the Company is obligated to repair or replace any components or assemblies that it deems defective in workmanship or materials. The Company reserves the right to reject warranty claims if it determines that failure is due to normal wear, customer modifications, improper maintenance or misuse. The Company maintains a warranty reserve that reflects the estimated expenses that it will incur to honor the warranties on its products. The Company adjusts the warranty reserve based on the number and type of equipment that is subject to warranty, adjusted for the remaining months of warranty coverage. The warranty reserve adjustment reflects the Company's historical warranty experience based on type of equipment. Warranty provisions and claims for the three months ended January 31, 2012 and 2011 were as follows:


		Three months ended
		January 31,
(In thousands)		2012		2011
Balance, beginning of period	$	141		$	175
Warranty provisions		59			54
Periodic reserve adjustment		(24	)		30
Warranty claims		(54	)		(119	)
Balance, end of period	$	122		$	140