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Warranty
 3 Months Ended
Sep. 30, 2012
Warranty [Abstract]  
WARRANTY

NOTE 3. WARRANTY

The warranty accrual is based on historical costs of warranty repairs and expected future identifiable warranty expenses, and is included in accrued expenses in the accompanying consolidated balance sheets. As of September 30, 2012 and June 30, 2012 the warranty reserve related to continuing operations amounted to $585,000 and $526,000, respectively. Warranty expenses are included in cost of sales in the accompanying consolidated statements of operations. Changes in estimates to previously established warranty accruals result from current period updates to assumptions regarding repair costs and warranty return rates, and are included in current period warranty expense. Total warranty expense from continuing operations for the three months ended September 30, 2012 and 2011 was $157,000 and $228,000, respectively.

Information regarding the accrual for warranty costs relating to continuing operations for the three months ended September 30, 2012 and 2011 are as follows:

 

                 
    Three months Ended September 30,  
    2012     2011  

Balances, beginning of period

   $ 526,000     $ 688,000  

Accruals during the period

     149,000       137,000  

Changes in estimates of prior period accruals

     8,000       91,000  

Warranty expenditures

     (98,000 )      (238,000 ) 
   

 

 

    

 

 

  

Balances, end of period

   $ 585,000     $ 678,000  
   

 

 

    

 

 

  

The changes in estimates recorded during the three months ended September 30, 2012 and 2011 were due primarily to fluctuations in per-unit warranty repair costs and the effects of those fluctuations on our estimates of future warranty repair costs.

Warranty reserves related to discontinued operations (see Note 6) as of September 30, 2012 and June 30, 2012 amounted to $13,000 and $35,000, respectively. Warranty activities from discontinued operations for the three months ended September 30, 2012 and 2011 resulted in a credit of $8,000 and expense of $15,000, respectively.