Product Warranties

9 Months Ended

Sep. 30, 2011

Product Warranties

Product Warranties

Note J. Product Warranties

The Company provides a warranty to its customers for most of its products sold.  In general the Company’s warranties are for one year after the sale of the product and five years for photovoltaic inverter product sales.  The Company reviews its warranty liability quarterly.  The Company’s estimate for product warranties is based on an analysis of actual expenses by specific product line and estimated future costs related to warranty.  Factors taken into consideration when evaluating the Company’s warranty reserve are (i) historical claims for each product, (ii) the development stage of the product, (iii) volume increases, (iv) life of warranty and (v) other factors.  To the extent actual experience differs from the Company’s estimate, the provision for product warranties will be adjusted in future periods.  Such differences may be significant.

Accrued warranty is included in other accrued expenses on the Company’s consolidated balance sheets. The following is a summary of the Company’s accrued warranty activity for the following periods:

	Three Months Ended						Nine Months Ended
	September 30,2011			September 30,2010			September 30,2011			September 30,2010
Balance at beginning of period	$	4,489,363		$	2,842,859		$	4,000,081		$	1,869,579
Provision	545,112			1,089,120			1,857,790			2,390,699
Usage	(418,819		)	(312,344		)	(1,242,215		)	(640,643		)
Balance at end of period	$	4,615,656		$	3,619,635		$	4,615,656		$	3,619,635