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EXCEL - IDEA: XBRL DOCUMENT - AEHR TEST SYSTEMSFinancial_Report.xls
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EX-32 - CERTIFICATION - AEHR TEST SYSTEMSaehr_ex32.htm
EX-31.1 - CERTIFICATION - AEHR TEST SYSTEMSaehr_ex311.htm
EX-31.2 - CERTIFICATION - AEHR TEST SYSTEMSaehr_ex312.htm
10-Q - FORM 10-Q FOR THE PERIOD ENDED NOVEMBER 30, 2012 - AEHR TEST SYSTEMSaehr_10q.htm
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v2.4.0.6
8. PRODUCT WARRANTIES
6 Months Ended
Nov. 30, 2012
Product Warranties  
Product Warranties

 

8.  PRODUCT WARRANTIES

 

The Company provides for the estimated cost of product warranties at the time the products are shipped.  While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure.  Should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required.

 

The standard warranty period is ninety days for parts and service and one year for systems.


Following is a summary of changes in the Company's liability for product warranties during the three and six months ended November 30, 2012 and 2011 (in thousands):


 

    Three Months Ended     Six Months Ended  
    November 30,     November 30,  
    2012     2011     2012     2011  
                         
Balance at the beginning of the period   $ 115     $ 100     $ 91     $ 103  
                                 
Accruals for warranties issued                                
  during the period     120       86       250       141  
                                 
Settlement made during the period                                
  (in cash or in kind)     (61 )     (57 )     (167 )     (115 )
                                 
Balance at the end of the period   $ 174     $ 129     $ 174     $ 129  


The accrued warranty balance is included in accrued expenses on the accompanying condensed consolidated balance sheets.