Quarterly report pursuant to Section 13 or 15(d)

Product Warranties

Product Warranties

6 Months Ended

Sep. 30, 2014

Product Warranties Disclosures [Abstract]

The Company’s products carry a limited warranty ranging from one to seven years for the products within the CSG segment and one to five years for products within the IBW segment. The specific terms and conditions of those warranties vary depending upon the customer and the products sold. Factors that enter into the estimate of the Company’s warranty reserve include: the number of units shipped, anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the reserve as necessary. The current portions of the warranty reserve were $536,000 and $286,000 as of September 30, 2014, and March 31, 2014, respectively, and are presented on the Condensed Consolidated Balance Sheets as Accrued expenses. The non-current portions of the warranty reserve were $130,000 and $42,000 as of September 30, 2014, and March 31, 2014, respectively, and are presented on the Condensed Consolidated Balance Sheets in Other non-current liabilities.

The following table presents the changes in the Company’s product warranty reserve:



	Three months ended September 30,						Six months ended September 30,
(in thousands)	2014			2013			2014			2013
Total product warranty reserve at the beginning of the period	$	424		$	214		$	328		$	152
Warranty reserve from business acquisitions	—			—			—			54
Warranty expense	288			251			410			270
Utilization	(46		)	(140		)	(72		)	(151		)
Total product warranty reserve at the end of the period	$	666		$	325		$	666		$	325