Accounts Payable and Accrued Expenses

6 Months Ended

Sep. 30, 2013

7. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following (in thousands):

	September 30, 2013		March 31, 2013
Accounts payable	$	3,105	$	7,146
Accrued miscellaneous expenses		7,195		9,172
Accrued inventories in transit		1,442		779
Accrued outside services		2,763		2,251
Accrued subcontractor program costs		556		2,442
Accrued compensation		4,447		5,506
Income taxes payable		147		133
Accrued warranty		3,069		2,709
Total	$	22,724	$	30,138

The Company generally provides a one to three year warranty on its products, commencing upon installation. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based on historical experience.

Product warranty activity was as follows (in thousands):

	Three months ended September 30,						Six months ended September 30,
	2013			2012			2013			2012
Balance at beginning of period	$	2,787		$	5,500		$	2,709		$	5,896
Change in accruals for warranties during the period		342			(384	)		493			(551	)
Settlements during the period		(60	)		(324	)		(133	)		(553	)
Balance at end of period	$	3,069		$	4,792		$	3,069		$	4,792