Accounts Receivable

9 Months Ended

Sep. 30, 2012

Accounts Receivable [Abstract]

Accounts Receivable

2. Accounts Receivable

The Company’s accounts receivable are primarily due from resellers and distributors of its video communications products and services. Credit is extended based on evaluation of each customer’s financial condition and, generally, collateral is not required except for certain international customers. Accounts receivable are generally due within 30 days and are stated net of an allowance for doubtful accounts. Accounts that are outstanding longer than contractual payment terms are considered past due. The Company records an allowance on a specific basis by considering a number of factors, including the length of time trade accounts are past due, the Company’s previous loss history, the credit-worthiness of individual customers, economic conditions affecting specific customer industries and economic conditions in general. The Company writes off accounts receivable when they become uncollectible and payments subsequently received on such receivables are credited against write-offs in the period the payment is received.

Changes in the Company’s allowance for doubtful accounts for the three and nine months ended September 30, 2011 and 2012 are as follows:

	For the three months ended				For the nine months ended
	September 30,				September 30,
	2011		2012		2011			2012
	(Unaudited)		(Unaudited)		(Unaudited)			(Unaudited)
Beginning balance	$	15,238	$	22,352	$	76,436		$	22,292
Bad debt expense (recoveries)		821		837		(60,377	)		6,805
Uncollectible accounts written off		—		—		—			(5,908	)
Ending balance	$	16,059	$	23,189	$	16,059		$	23,189