Quarterly report pursuant to Section 13 or 15(d)

Product Warranty

Product Warranty

6 Months Ended

Jun. 30, 2011

8.	Product Warranty

We warrant our products against defects in design, materials, and workmanship generally for a period of one year from the date of sale to the end customer, except in cases where the product has a limited use as designed. Our accrual for warranty expenses is adjusted periodically to reflect actual experience and is included in accrued liabilities and other on the consolidated balance sheets. Our primary marketing partner, Devicor, also reimburses us for a portion of warranty expense incurred based on end customer sales they make during a given fiscal year. Payments charged against the reserve are disclosed net of Devicor’s estimated reimbursement.

The activity in the warranty reserve account for the three-month and six-month periods ended June 30, 2011 and 2010 is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Warranty reserve at beginning of period	$	47,650		$	77,624		$	56,110		$	61,400
Provision for warranty claims and changes in reserve for warranties		11,271			12,473			2,811			50,571
Payments charged against the reserve		(3,574	)		(16,280	)		(3,574	)		(38,154	)
Warranty reserve at end of period	$	55,347		$	73,817		$	55,347		$	73,817