AEHR TEST SYSTEMS - FORM 10-Q - XML - IDEA: XBRL DOCUMENT - April 13, 2012

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EXCEL - IDEA: XBRL DOCUMENT - AEHR TEST SYSTEMSFinancial_Report.xls
XML - IDEA: XBRL DOCUMENT - AEHR TEST SYSTEMSR9.htm
EX-32 - CERTIFICATION - AEHR TEST SYSTEMSaehr_ex32.htm
EX-31.2 - CERTIFICATION - AEHR TEST SYSTEMSaehr_ex312.htm
EX-31.1 - CERTIFICATION - AEHR TEST SYSTEMSaehr_ex311.htm
10-Q - QUARTERLY REPORT - AEHR TEST SYSTEMSaehr_10q.htm
v2.4.0.6
PRODUCT WARRANTIES
 9 Months Ended
Feb. 29, 2012
Notes to Financial Statements  
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 nine months ended February 29, 2012 and February 28, 2011 (in thousands):

 

 

    Three Months Ended     Nine Months Ended  
    February 29,     February 28,     February 29,     February 28,  
    2012     2011     2012     2011  
                         
Balance at the beginning of the period   $ 129     $ 97     $ 103     $ 174  
                                 
Accruals for warranties issued                                
  during the period     35       26       176       86  
Adjustments related to pre-existing                                

  warranties (including changes in  

  estimates)

     --       --       --       (88 )
Settlement made during the period                                
  (in cash or in kind)     (52 )     (41 )     (167 )     (90 )
                                 
Balance at the end of the period   $ 112     $ 82     $ 112     $ 82  

 

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

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