XML 39 R7.htm IDEA: XBRL DOCUMENT

Balance Sheet Details

6 Months Ended

Jun. 30, 2012

2. Balance Sheet Details

Marketable Securities

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


June 30, 2012	Maturity in Years		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value

Available-for-sale:
Government agency securities		1 or less	$	2,181	$	—	$	(1	)	$	2,180
Municipal bonds		1 or less		11,730		2		—			11,732
Certificates of deposit		1 or less		5,040		1		—			5,041
Corporate debentures / bonds		1 or less		17,447		1		(10	)		17,438

Total short-term marketable securities				36,398		4		(11	)		36,391


Available-for-sale:
Government agency securities		1 to 2		3,733		5		—			3,738
Muncipal bonds		1 to 2		4,714		2		—			4,716
Certificates of deposit		1 to 2		2,357		9		—			2,366

Total long-term marketable securities				10,804		16		—			10,820

			$	47,202	$	20	$	(11	)	$	47,211


December 31, 2011	Maturity in Years	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value

Available-for-sale:
Government agency securities	1 or less	$	6,913	$	—	$	(1	)	$	6,912
Municipal bonds	1 or less		8,390		—		(6	)		8,384
Certificates of deposit	1 or less		4,319		2		—			4,321
Corporate debentures/bonds	1 or less		8,615		—		(3	)		8,612
Marketable equity securities	1 or less		38		—		—			38

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

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

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 condensed consolidated balance sheet at fair market value with the related unrealized gains and losses included in accumulated other comprehensive income (loss) on the condensed 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.

As of June 30, 2012, the Company recorded a net unrealized gain of $9,000. The Company’s net unrealized gain is the result of market conditions affecting its fixed-income, debt and equity securities, which are included in accumulated other comprehensive income (loss) in the condensed consolidated balance sheet for the period then ended.

Inventories

Inventories consist of the following (in thousands):


	June 30, 2012		December 31, 2011
Finished goods	$	32,751	$	35,211
Raw materials and components		6,814		7,068

	$	39,565	$	42,279

Accrued Expenses

Accrued expenses consist of the following (in thousands):


	June 30, 2012		December 31, 2011
Royalties	$	5,716	$	5,861
Payroll and related expenses		6,979		8,706
Product warranty		2,674		1,525
Market development fund and price protection		1,787		1,750
Deferred rent		1,253		1,135
Professional fees		1,416		1,213
Other		5,550		4,854

	$	25,375	$	25,044

Accrued Warranty Obligations

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


	Three Months Ended June 30, 2012			Three Months Ended June 30, 2011			Six Months Ended June 30, 2012			Six Months Ended June 30, 2011
Warranty liability at beginning of period	$	1,738		$	2,349		$	1,525		$	2,279
Additions charged to operations		1,845			334			2,730			1,197
Deductions from liability		(909	)		(974	)		(1,581	)		(1,767	)

Warranty liability at end of period	$	2,674		$	1,709		$	2,674		$	1,709

The Company accrues warranty costs based on estimates of future warranty-related replacement, repairs or rework of products. The Company generally provides one to three years of coverage for products following the date of purchase and the Company accrues the estimated cost of warranty coverage as a component of cost of net revenues in the condensed consolidated statements of operations and comprehensive income (loss) at the time revenue is recognized. In estimating our future warranty obligations, we consider various relevant factors, including the historical frequency and volume of claims, and the cost to replace or repair products under warranty.

- 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.

+ References+ Details