We design, engineer and manufacture microelectronics and test solution and measurement equipment that are sold primarily to the broadband communications, aerospace and defense markets.  Our fiscal year ends on June 30.

On August 15, 2007, the Company was acquired by affiliates of or funds managed by The Veritas Capital Fund Ill, L.P. (“Veritas”), Golden Gate Private Equity, Inc. (“Golden Gate”) and GS Direct, L.L.C. (“GS Direct”) and certain members of management (“the Merger”) (see Note 3).

The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires that management of the Companyto make a number of estimates and assumptions relating tothat affect the reportingreported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, andas well as the reported amounts of revenuessales and expenses during the reporting period. Among the more significant estimates included in our consolidated financial statements are revenue and cost recognition under long-term contracts; the valuation of accounts receivable, inventories, investments and deferred tax assets; the depreciable lives of fixed assets and useful lives of amortizable intangible assets; the valuation of assets acquired and liabilities assumed in business combinations; the recoverability of long-lived amortizable intangible assets and goodwill; share-based compensation; restructuring charges; asset retirement obligations and certain accrued expenses and contingencies.

Our interest rate swap derivativesResults of operations for interim periods are designated as cash flow hedges. As such, they are recorded onnot necessarily indicative of results to be expected for the balance sheet as assetsfull fiscal year or liabilities at their fair value, with changes in the fair value of such derivatives, net of taxes, recorded as a component of other comprehensive income.any future periods.

We recognize revenue, net of trade discounts and allowances, when (1) persuasive evidence of an arrangement exists, (2) delivery of the product has occurred or the services have been performed, (3) the selling price is fixed or determinable, and (4) collectability of the resulting receivable is reasonably assured.

Our product revenue is generated predominantly from the sales of various types of microelectronic products and test and measurement equipment. For arrangements other than certain long-term contracts, revenue (including shipping and handling fees) is recognized when products are shipped and title has passed to the customer. If title does not pass until the product reaches the customer’s delivery site, recognition of the revenue is deferred until that time. Certain of our sales are to distributors, which have a right to return some portion of product within up to eighteen months of sale. We recognize revenue on these sales at the time of shipment to the distributor, as the returns under these arrangements have been insignificant and can be reasonably estimated. A provision for such estimated returns is recorded at the time salesrevenues are recognized. For transactions that include customer-specified acceptance criteria, including those where acceptance is required upon achievement of performance milestones, revenue is recognized after the acceptance criteria have been met.

Long-term contracts are accounted for in accordance with SOP 81-1 “Accounting for Performance of Construction-Type and Certain Production-Type Contracts.”  We determineby determining estimated contract profit rates and use of the percentage-of-completion method to recognize revenues and associated costs as work progresses on certain long-term contracts.progresses. We measure the extent of progress toward completion generally based upon one of the following methods (based upon an assessment of which method most closely aligns to the underlying earnings process): (i) the units-of-delivery method, (ii) the cost-to-cost method, using the ratio of contract costs incurred as a percentage of total estimated costs at contract completion (based upon engineering and production estimates), or (iii) the achievement of contractual milestones. Provisions for anticipated losses or revisions in estimated profits on contracts-in-process are recorded in the period in which such anticipated losses or revisions become evident.

Revenue from sales of products whereWhere an arrangement includes only a software is other than incidental to their performance, including related software support and maintenance contracts is recognized in accordance with SOP 97-2, “Software Revenue Recognition.” Accordingly,license, revenue for software is recognized when the software is delivered if alland title has been transferred to the customer or, in the case of electronic delivery of software, when the customer is given access to the licensed software programs. We also evaluate whether persuasive evidence of an arrangement exists, collection of the above criteriareceivable is probable, the fee is fixed or determinable and whether any other undelivered elements of the arrangement exist for revenue recognition are met.

On July 1, 2009, we adopted the authoritative implementation guidance issued by the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“SFAS”) 157, “Fair Value Measurements,” to clarify the definition offor fair value establish a framework for measuring fair value and expand the disclosures on fair value measurements.  SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price).  SFAS 157 also stipulates that, as a market-based measurement, fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability, and establishes a fair value hierarchy that distinguishes between (a) market participant assumptions developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (b) the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs).

On July 1, 2008,2009, we adopted SFAS 157 (see Note 9), with the exceptionauthoritative guidance issued by the FASB on business combinations. The guidance retains the fundamental requirements that the acquisition method of its applicationaccounting (previously referred to nonfinancialas the purchase method of accounting) be used for all business combinations, but requires a number of changes, including changes in the way assets and nonfinancial liabilities are recognized and measured as a result of business combinations. It also requires the fair value of contingent consideration to be recorded on the acquisition date, the capitalization of in-process research and development at fair value and the expensing of acquisition-related costs as incurred. Adoption of the new guidance, which we will defer in accordance with FSP No. FAS 157-2.  We are currently evaluating theis effective for acquisitions consummated by us after June 30, 2009, did not have an impact on our consolidated financial statements as of adopting SFAS 157 atand for the beginningthree months ended September 30, 2009.

On July 1, 2009, we adopted the authoritative guidance issued by the FASB for the determination of fiscal 2010the useful life of intangible assets. This guidance amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset. This guidance also adds certain disclosures to those already prescribed.  The guidance for such nonfinancialdetermining useful lives must be applied prospectively to intangible assets and nonfinancial liabilities.

In October 2008,September 2009, we adopted the authoritative guidance issued by the FASB issued FSP FAS 157-3, “Determiningwhich establishes the Fair ValueFASB Accounting Standards Codification as the source of a Financial Asset Whenauthoritative accounting principles recognized by the Market for That Asset Is Not Active,” which clarifiesFASB to be applied in the applicationpreparation of SFAS 157 in a market that is not active and provides an example to illustrate key considerations in determining the fair value of a financial asset when the market for that financial asset is not active.  The FSP was effective upon issuance, including prior periods for which financial statements were not issued.  Revisions resulting from a change in conformity with U.S. GAAP.  This guidance explicitly recognizes the valuation technique orrules and interpretive releases of the SEC under federal securities laws as authoritative GAAP for SEC registrants.  The Company has updated references to U.S. GAAP in its application will be accountedfinancial statements issued for as a change in accounting estimate following the guidance in SFAS 154, “Accounting Changes and Error Corrections.”  However, the disclosure provisions in SFAS 154 for a change in accounting estimate are not required for revisions resulting from a change in valuation technique or its application.  We adopted SFAS 157 and FSP FAS 157-3 beginning in our fiscal 2009 first quarter (see Note 9).  As of March 31, 2009, we have a $2.4 million valuation allowance against the value of our auction rate securities. 

In March 2008,October 2009, the FASB issued SFAS 161, “Disclosures about Derivative Instruments and Hedging Activities—an amendment of FASB Statement No. 133.”  SFAS 161 requires qualitative disclosures about a company’s objectives and strategiesauthoritative guidance on revenue recognition that becomes effective for using derivative instruments, quantitative disclosuresus commencing July 1, 2010.  However, earlier adoption was permitted. Under the new guidance on sales arrangements that include software elements, tangible products that have software components that are essential to the functionality of the fair valuestangible product will no longer be within the scope of the software revenue recognition guidance, and gainssoftware-enabled products will now be subject to other relevant revenue recognition guidance. Additionally, the FASB issued authoritative guidance on revenue arrangements with multiple deliverables that are outside the scope of the software revenue recognition guidance. Under the new guidance, when vendor specific objective evidence or third party evidence for deliverables in an arrangement cannot be determined, a best estimate of the selling price is required to separate deliverables and lossesallocate arrangement consideration and the use of these derivative instrumentsthe relative selling price method is required. The new guidance eliminated the residual method of allocating arrangement consideration to deliverables and includes new disclosure requirements on how the application of the relative selling price method affects the timing and amount of revenue recognition. We chose to early adopt such authoritative guidance on a prospective basis effective July 1, 2009 and, therefore, it has been applied to multiple deliverable revenue arrangements and arrangements for the sale of tangible products with software components entered into or materially modified on or after July 1, 2009.  The adoption of this new guidance did not have a material impact on our financial statements.

In December 2007, the FASB issued guidance which requires that the non-controlling interests in consolidated subsidiaries be presented as a tabular format, as well as more information about liquidity by requiring disclosureseparate component of a derivative contract’s credit-risk-related contingent features.  SFAS 161stockholders’ equity in the balance sheet, that the amount of consolidated net earnings attributable to the parent and the non-controlling interest be separately presented in the statement of earnings, and that the amount of consolidated other comprehensive income attributable to the non-controlling interest be separately disclosed. The standard also requires cross-referencing within footnotesgains or losses from the sale of stock of subsidiaries where control is maintained to enablebe recognized as an equity transaction. The guidance was effective beginning with the first quarter of the fiscal year 2010 financial statement usersreporting.  In connection with the adoption of this guidance, we did not apply the presentation or disclosure provisions to locate important information about derivative instruments.  We adopted this disclosure-only standard beginning in our fiscal 2009 third quarter.one non-controlling interest as the effect on our financial statements was insignificant.

In December 2007,June 2009, the FASB issued SFAS 141(R), “Business Combinations.” SFAS 141(R) replaces SFAS 141. SFAS 141(R) establishes principles and requirements for how an acquirer recognizes and measures in its financial statementsauthoritative guidance on the identifiable assets acquired, the liabilities assumed, any non-controllingconsolidation of variable interest in the acquiree and the goodwill acquired. The Statement also establishes disclosure requirementsentities, which will enable users to evaluate the nature and financial effects of the business combination. SFAS 141(R) is effective for us for acquisitions consummated on or afterbeginning July 1, 2009.

The components of amortizable intangible assets are as follows:

The aggregate amortization expense for amortizable intangible assets was $15.0$15.6 million and $20.9$18.0 million for the three months ended March 31,September 30, 2009 and 2008, respectively, and $47.5 million, $52.3 million and $1.7 million for the nine months ended March 31, 2009 and the periods August 15, 2007 to March 31, 2008 and July 1, 2007 to August 14, 2007, respectively.

The estimated aggregate amortization expense for each of the twelve-monthtwelve month periods ending March 31,September 30, is as follows:

The carrying amount of goodwill, by segment, is as follows:

The following table sets forth the charges and payments related to the restructuring liability for the periods indicated:

We warrant our products against defects in design, materials and workmanship, generally for one year from their date of shipment. A provision for estimated future costs relating to these warranties is recorded in cost of sales when the related revenue is recognized and is included in cost of sales.recognized. Quarterly we analyze our warranty liability for reasonableness based on a 15-month history of warranty costs incurred, the nature of the products shipped subject to warranty and anticipated warranty trends.

We adopted SFAS No. 161 as of January 1, 2009. The adoption did not have an impact on our consolidated financial statements as it is a disclosure-only standard. We address certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments. We enter into interest rate swap derivatives to manage the effects of interest rate movements on portions of our debt. We also enter into foreign currency forward contracts, not designated as hedging instruments, to protect us from fluctuations in exchange rates.

The fair values of our derivative financial instruments included in the condensed consolidated balance sheet as of March 31,September 30, 2009 and June 30, 2009 are presented as follows:

The amounts of the gains and losses related to our derivative financial instruments not designated as hedging instruments for the three months ended September 30, 2009 and 2008 are presented as follows:

We enter into interest rate swap contracts to manage the effects of interest rate movements on portions of our debt. Such contracts effectively fix the borrowing rates on floating rate debt to limit the exposure against the risk of rising rates.  We do not enter into interest rate swap contracts for speculative purposes and we have entered into transactions with counterparties that are rated investment grade. Our interest rate swap contracts, all of which were entered into in fiscal 2008 for an aggregate notional amount of $475 million, have varying maturities through February 2011.

Foreign currency contracts are used to protect us from fluctuations in exchange rates. We enter into foreign currency contracts, which are not designated as hedges. Thus theThe change in fair value is included in income as it occurs, within other income (expense). As of March 31,September 30, 2009, we had $10.7$28.4 million of notional value foreign currency forward contracts maturing through JuneOctober 31, 2009. Notional amounts do not quantify risk or represent assets or liabilities of the Company, but are used in the calculation of cash settlements under the contracts.

We adopted the provisions of SFAS 157account for financialcertain assets and liabilities as of July 1, 2008 and, as of March 31, 2009, have recorded a $2.4 million valuation allowance against the cost of our auction rate securities.  SFAS 157 definesat fair value as the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date.  SFAS 157 also establishes a fair valuevalue.  The hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The following table presents for each hierarchy level, financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2009:basis: