Aiming to become the global leader in chip-scale photonic solutions by deploying Optical Interposer technology to enable the seamless integration of electronics and photonics for a broad range of vertical market applications

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Message: Product warranty reserve

Small note from the Consolidated Financial Statements Years ended December 31, 2013 and 2012.

Page 7.

Product warranty reserve (25,999)

Is it an old thing from the Solar sale or a new product?

First thing I found on it:

Product Warranty Reserve

Our products are generally covered by a warranty up to 12 months. We accrue a reserve for estimated warranty costs at the time revenue is recognized. Our estimate of costs to service our warranty obligations is based on historical experience and expectation of future conditions. To the extent we experience increased warranty claim activity or increased costs associated with servicing those claims, our warranty accrual will increase resulting in decreased gross profit.

http://www.wikinvest.com/stock/Flow_International_(FLOW)/Product_Warranty_Reserve

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