Annual report pursuant to Section 13 and 15(d)

ACCRUED WARRANTY

v2.4.0.6
ACCRUED WARRANTY
 12 Months Ended
Mar. 31, 2012
Product Warranties Disclosures [Abstract]  
Product Warranty Disclosure [Text Block]

NOTE 6: ACCRUED WARRANTY

The following table details the change in the accrued warranty balance (in thousands):

For the year ended March 31,
      2012       2011
Beginning balance $        7,034 $        5,884
       Additional warranties issued 9,973 11,049
       Adjustments for warranties issued in prior fiscal years 1,956   2,610  
       Settlements (11,377 )   (12,509 )
Ending balance $ 7,586   $ 7,034
 

We warrant our products against defects for 1 to 3 years. A provision for estimated future costs and estimated returns for credit relating to warranty is recorded when products are shipped and revenue recognized. Our estimate of future costs to satisfy warranty obligations is primarily based on historical trends and, if believed to be significantly different from historical trends, estimates of future failure rates and future costs of repair. Future costs of repair include materials consumed in the repair, labor and overhead amounts necessary to perform the repair. If future actual failure rates differ from our estimates, we record the impact in subsequent periods. If future actual costs of repair were to differ significantly from our estimates, we would record the impact of these unforeseen cost differences in subsequent periods.