Financial Statement Details

12 Months Ended

Dec. 31, 2011

Financial Statement Details [Abstract]

4.	Financial Statement Details

Marketable Securities

The Company's portfolio of available-for-sale securities by contractual maturity consists of the following (in thousands):


December 31, 2011	Maturity in Years		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Corporate debenture/bonds		1 or less	$	8,615	$	—	$	(3	)	$	8,612
Municipal bonds		1 or less		8,390		—		(6	)		8,384
Certificates of deposit		1 or less		4,319		2		—			4,321
Government agency securities		1 or less		6,913		—		(1	)		6,912
Marketable equity securities		1 or less		38		—		—			38

Total short-term marketable securities				28,275		2		(10	)		28,267

Municipal bonds		1 to 2		5,967		2		—			5,969
Certificates of deposit		1 to 2		3,797		—		(9	)		3,788
Government agency securities		1 to 2		3,734		4		—			3,738

Total long-term marketable securities				13,498		6		(9	)		13,495

			$	41,773	$	8	$	(19	)	$	41,762

The Company's available-for-sale securities are carried on the consolidated balance sheet at fair market value with the related unrealized gains and losses included in accumulated other comprehensive (loss) income on the consolidated balance sheet, which is a separate component of stockholders' equity. Realized gains and losses on the sale of available-for-sale marketable securities are determined using the specific-identification method.

At December 31, 2011 and 2010, the Company recorded net unrealized loss of $8,000, net of taxes, and net unrealized gains of $21,000, respectively. The Company's net unrealized gains (loss) is the result of market conditions affecting its fixed-income debt securities, which are included in accumulated other comprehensive (loss) income on the consolidated balance sheet for the periods then ended.

As of December 31, 2011, the Company's investment portfolio included $385,000 of marketable equity securities at original cost, with a fair value of $38,000. These securities are currently traded on the Over the Counter Bulletin Board (OTCBB) and are not traded on major exchanges such as the NYSE. During the year ended December 31, 2011, the Company recorded an other-than-temporary loss of $347,000 within other income (expense), net in the consolidated statement of operations.

Inventories

Inventories consist of the following (in thousands):


	December 31,
	2011		2010
Finished goods	$	35,211	$	36,764
Raw materials and components		7,068		6,330

	$	42,279	$	43,094

Property and Equipment

Property and equipment consists of the following (in thousands):


	December 31,
	2011			2010
Test equipment	$	52,311		$	48,689
Computer equipment and purchased software		13,766			12,254
Product tooling		3,768			2,968
Furniture and fixtures		2,240			1,807
Leasehold improvements		5,628			3,786

		77,713			69,504
Less—accumulated depreciation and amortization		(59,217	)		(48,223	)

	$	18,496		$	21,281

For the years ended December 31, 2011, 2010 and 2009, the Company recorded $70,000, $167,000 and $92,000, respectively, in its cost of net revenues as a result of its impairment analysis of property and equipment.

Depreciation and amortization expense relating to property and equipment was $11.1 million, $10.0 million and $11.4 million for the years ended December 31, 2011, 2010 and 2009, respectively.

Accrued Expenses

Accrued expenses consist of the following (in thousands):


	December 31,
	2011		2010
Royalties	$	5,861	$	6,461
Payroll and related		8,706		5,704
Product warranty		1,525		2,279
Market development fund and price protection		1,750		1,452
Deferred rent		1,135		1,092
Professional fees		1,213		1,103
Other		4,854		7,959

	$	25,044	$	26,050

Accrued Warranty Obligations

Accrued warranty obligations consist of the following (in thousands):


	2011			2010
Warranty liability at beginning of period	$	2,279		$	3,039
Additions charged to operations		2,642			1,350
Deductions from liability		(3,396	)		(2,110	)

Warranty liability at end of period	$	1,525		$	2,279

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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