Accounts Payable and Accrued Expenses

9 Months Ended

Dec. 31, 2014

7. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses at December 31, 2014 and March 31, 2014 consisted of the following (in thousands):

	December 31,		March 31,
	2014		2014
Accounts payable	$	7,735	$	1,749
Accrued inventories in-transit		1,811		212
Accrued miscellaneous expenses		3,711		6,076
Accrued outside services		2,914		3,716
Accrued subcontractor program costs		60		290
Accrued compensation		4,230		5,939
Income taxes payable		229		173
Accrued adverse purchase commitments		-		402
Accrued warranty		4,115		3,207
Total	$	24,805	$	21,764

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 December 31,						Nine months ended December 31,
	2014			2013			2014			2013
Balance at beginning of period	$	3,367		$	3,069		$	3,207		$	2,709
Change in accruals for warranties during the period		1,309			273			2,212			767
Settlements during the period		(561	)		(15	)		(1,304	)		(149	)
Balance at end of period	$	4,115		$	3,327		$	4,115		$	3,327