Product Warranties

3 Months Ended

Mar. 31, 2014

8. Product Warranties

The Company generally offers a two-year warranty for all of its products. The Company provides for the estimated cost of product warranties at the time product revenue is recognized. Factors that affect the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty returns, and the cost per return. The Company assesses the adequacy of the warranty reserves and adjusts the amounts as necessary. Warranty obligations are included in “Accrued expenses” in the accompanying Condensed Consolidated Balance Sheets.

Product warranty activity for the three months ended March 31, was as follows (in thousands):


	Three Months Ended
	March 31,
	2014			2013
Balance at the beginning of the period	$	283		$	364
Accruals for warranties for products sold in the period		24			29
Fulfillment of warranty obligations		(55	)		(47	)
Revisions of estimated obligations		(3	)		(22	)

Balance at the end of the period	$	249		$	324