Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Apr. 30, 2014 | Sep. 30, 2013 |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'GSI TECHNOLOGY INC | ' | ' |
Entity Central Index Key | '0001126741 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Mar-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--03-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $141.50 |
Entity Common Stock, Shares Outstanding | ' | 27,451,239 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS. | ' | ' |
Cash and cash equivalents | $41,520 | $41,120 |
Short-term investments | 39,412 | 26,139 |
Accounts receivable, net | 8,238 | 10,241 |
Inventories | 8,185 | 13,809 |
Prepaid expenses and other current assets | 5,152 | 4,945 |
Deferred income taxes | ' | 1,224 |
Total current assets | 102,507 | 97,478 |
Property and equipment, net | 9,683 | 10,774 |
Long-term investment | 28,819 | 35,495 |
Other assets | 668 | 2,098 |
Total assets | 141,677 | 145,845 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts payable | 4,870 | 3,804 |
Accrued expenses and other liabilities | 4,444 | 3,978 |
Deferred revenue | 2,523 | 3,077 |
Total current liabilities | 11,837 | 10,859 |
Income taxes payable | 1,462 | 2,803 |
Total liabilities | 13,299 | 13,662 |
Commitments and contingencies (Note 6) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock: $0.001 par value authorized: 5,000,000 shares; issued and outstanding: none | ' | ' |
Common Stock: $0.001 par value authorized: 150,000,000 shares; issued and outstanding: 27,561,482 and 27,065,209 shares, respectively | 28 | 27 |
Additional paid-in capital | 56,399 | 54,004 |
Accumulated other comprehensive income | 33 | 45 |
Retained earnings | 71,918 | 78,107 |
Total stockholders' equity | 128,378 | 132,183 |
Total liabilities and stockholders' equity | $141,677 | $145,845 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Stockholders' Equity | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 27,561,482 | 27,065,209 |
Common stock, shares outstanding | 27,561,482 | 27,065,209 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Income Statement | ' | ' | ' |
Net revenues | $58,579 | $66,014 | $82,540 |
Cost of revenues | 32,469 | 37,426 | 45,891 |
Gross profit | 26,110 | 28,588 | 36,649 |
Operating expenses: | ' | ' | ' |
Research and development | 13,110 | 11,472 | 10,637 |
Selling, general and administrative | 18,814 | 13,696 | 19,356 |
Total operating expenses | 31,924 | 25,168 | 29,993 |
Income (loss) from operations | -5,814 | 3,420 | 6,656 |
Interest income, net | 387 | 455 | 541 |
Other income (expense), net | -49 | 9 | -16 |
Income (loss) before income taxes | -5,476 | 3,884 | 7,181 |
Provision for income taxes | 713 | 38 | 425 |
Net income (loss) | ($6,189) | $3,846 | $6,756 |
Net income (loss) per share: | ' | ' | ' |
Net income (loss) per share-Basic | ($0.23) | $0.14 | $0.24 |
Net income (loss) per share-Diluted | ($0.23) | $0.14 | $0.23 |
Weighted average shares used in per share calculations: | ' | ' | ' |
Basic | 27,505 | 27,124 | 28,497 |
Diluted | 27,505 | 28,077 | 29,496 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Consolidated Statements Of Comprehensive Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ($5,400) | ($734) | $386 | ($441) | $950 | $844 | $1,132 | $920 | ($6,189) | $3,846 | $6,756 |
Net unrealized gain (loss) on available-for-sale investments, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -12 | -43 | 5 |
Comprehensive net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ($6,201) | $3,803 | $6,761 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Total |
Beginning Balance - Amount at Mar. 31, 2011 | $29,000 | $57,063,000 | $83,000 | $67,505,000 | $124,680,000 |
Beginning Balance - Shares at Mar. 31, 2011 | 28,649,033 | ' | ' | ' | ' |
Issuance of common stock under employee stock option plans, Shares | 307,007 | ' | ' | ' | ' |
Issuance of common stock under employee stock option plans, Amount | ' | 1,504,000 | ' | ' | 1,504,000 |
Repurchase of common stock, Shares | -1,338,098 | ' | ' | ' | ' |
Repurchase of common stock, Amount | -1,000 | -6,336,000 | ' | ' | -6,337,000 |
Stock-based compensation expense | ' | 2,096,000 | ' | ' | 2,096,000 |
Reversal of windfall tax benefits previously recognized | ' | 75,000 | ' | ' | 75,000 |
Comprehensive income: | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | 6,756,000 | 6,756,000 |
Net unrealized gain (loss) on available-for-sale investments, net of tax | ' | ' | 5,000 | ' | 5,000 |
Comprehensive net income (loss) | ' | ' | ' | ' | 6,761,000 |
Ending Balance, Amount at Mar. 31, 2012 | 28,000 | 54,402,000 | 88,000 | 74,261,000 | 128,779,000 |
Ending Balance, Shares at Mar. 31, 2012 | 27,617,942 | ' | ' | ' | ' |
Issuance of common stock under employee stock option plans, Shares | 258,437 | ' | ' | ' | ' |
Issuance of common stock under employee stock option plans, Amount | ' | 857,000 | ' | ' | 857,000 |
Repurchase of common stock, Shares | -811,170 | ' | ' | ' | ' |
Repurchase of common stock, Amount | -1,000 | -3,625,000 | ' | ' | -3,626,000 |
Stock-based compensation expense | ' | 2,278,000 | ' | ' | 2,278,000 |
Reversal of windfall tax benefits previously recognized | ' | 92,000 | ' | ' | 92,000 |
Comprehensive income: | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | 3,846,000 | 3,846,000 |
Net unrealized gain (loss) on available-for-sale investments, net of tax | ' | ' | -43,000 | ' | -43,000 |
Comprehensive net income (loss) | ' | ' | ' | ' | 3,803,000 |
Ending Balance, Amount at Mar. 31, 2013 | 27,000 | 54,004,000 | 45,000 | 78,107,000 | 132,183,000 |
Ending Balance, Shares at Mar. 31, 2013 | 27,065,209 | ' | ' | ' | ' |
Issuance of common stock under employee stock option plans, Shares | 932,800 | ' | ' | ' | ' |
Issuance of common stock under employee stock option plans, Amount | 1,000 | 3,080,000 | ' | ' | 3,081,000 |
Repurchase of common stock, Shares | -436,527 | ' | ' | ' | ' |
Repurchase of common stock, Amount | ' | -2,880,000 | ' | ' | -2,880,000 |
Stock-based compensation expense | ' | 2,228,000 | ' | ' | 2,228,000 |
Reversal of windfall tax benefits previously recognized | ' | -33,000 | ' | ' | -33,000 |
Comprehensive income: | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | -6,189,000 | -6,189,000 |
Net unrealized gain (loss) on available-for-sale investments, net of tax | ' | ' | -12,000 | ' | -12,000 |
Comprehensive net income (loss) | ' | ' | ' | ' | -6,201,000 |
Ending Balance, Amount at Mar. 31, 2014 | $28,000 | $56,399,000 | $33,000 | $71,918,000 | $128,378,000 |
Ending Balance, Shares at Mar. 31, 2014 | 27,561,482 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | ($6,189,000) | $3,846,000 | $6,756,000 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Allowance for sales returns, doubtful accounts and other | -5,000 | 16,000 | -5,000 |
Provision for excess and obsolete inventories | 2,079,000 | 777,000 | 696,000 |
Depreciation and amortization | 1,981,000 | 2,375,000 | 2,611,000 |
Stock-based compensation. | 2,228,000 | 2,278,000 | 2,096,000 |
Deferred income taxes | 1,224,000 | -127,000 | 632,000 |
Windfall tax benefits from stock options exercised | 33,000 | -92,000 | -75,000 |
Amortization of bond premium on investments | 842,000 | 1,015,000 | 1,256,000 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | 2,008,000 | 322,000 | 4,468,000 |
Inventory | 3,545,000 | 2,139,000 | 3,959,000 |
Prepaid expenses and other assets | 1,046,000 | 2,523,000 | -2,599,000 |
Accounts payable | 1,066,000 | -1,607,000 | -17,000 |
Accrued expenses and other liabilities | -857,000 | 839,000 | -242,000 |
Deferred revenue | -554,000 | 407,000 | -2,578,000 |
Net cash provided by operating activities | 8,447,000 | 14,711,000 | 16,958,000 |
Cash flows from investing activities: | ' | ' | ' |
Purchase of investments | -35,866,000 | -35,609,000 | -38,166,000 |
Sales and maturities of short-term investments | 28,412,000 | 33,446,000 | 33,327,000 |
Purchases of property and equipment | -761,000 | -385,000 | -1,679,000 |
Net cash used in investing activities | -8,215,000 | -2,548,000 | -6,518,000 |
Cash flows from financing activities: | ' | ' | ' |
Repurchase of common stock | -2,880,000 | -3,626,000 | -6,337,000 |
Windfall tax benefits from stock options exercised | -33,000 | 92,000 | 75,000 |
Proceeds from issuance of common stock under employee stock plans | 3,081,000 | 857,000 | 1,504,000 |
Net cash provided by (used in) financing activities | 168,000 | -2,677,000 | -4,758,000 |
Net increase in cash and cash equivalents | 400,000 | 9,486,000 | 5,682,000 |
Cash and cash equivalents at beginning of the year | 41,120,000 | 31,634,000 | 25,952,000 |
Cash and cash equivalents at end of the period | 41,520,000 | 41,120,000 | 31,634,000 |
Non-cash investing activities: | ' | ' | ' |
Purchases of property and equipment through accounts payable and accruals | ' | 51,000 | 274,000 |
Supplemental cash flow information: | ' | ' | ' |
Net cash paid (received) for income taxes | $2,000 | ($2,253,000) | $3,256,000 |
1_THE_COMPANY_AND_SUMMARY_OF_S
1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Mar. 31, 2014 | |||
Company And Summary Of Significant Accounting Policies Details Narrative | ' | ||
NOTE 1-THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||
NOTE 1—THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
The Company | |||
GSI Technology, Inc. (the "Company") was incorporated in California in March 1995 and reincorporated in Delaware on June 9, 2004. The Company is a provider of "Very Fast" SRAM products and LLDRAM products that are incorporated primarily in high-performance networking and telecommunications equipment, such as routers, switches, wide area network infrastructure equipment, wireless base stations and network access equipment. In addition, the Company serves the ongoing needs of the military, industrial, test equipment and medical markets for high-performance SRAMs. | |||
Accounting principles | |||
The consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). | |||
Basis of consolidation | |||
The consolidated financial statements include the accounts of the Company's three wholly-owned subsidiaries, GSI Technology Holdings, Inc., GSI Technology (BVI), Inc. and GSI Technology Taiwan, Inc. All significant inter-company transactions and balances have been eliminated in consolidation. | |||
Use of estimates | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates are inherent in the preparation of the consolidated financial statements and include revenue recognition, obsolete and excess inventory, the valuation allowance on deferred tax assets, the valuation of equity instruments and stock-based compensation. Actual results could differ from those estimates. | |||
Risk and uncertainties | |||
The Company buys all of its SRAM and LLDRAM wafers, integral components of its products, from single suppliers and is also dependent on independent suppliers to assemble and test its products. During the years ended March 31, 2014, 2013 and 2012, all of the wafers used in the Company's SRAM and LLDRAM products were supplied by Taiwan Semiconductor Manufacturing Company Limited, or TSMC, and Powerchip Technology Corporation, or Powerchip, respectively. If these suppliers fail to satisfy the Company's requirements on a timely basis at competitive prices, the Company could suffer manufacturing delays, a possible loss of revenues, or higher cost of revenues, any of which could adversely affect operating results. | |||
A majority of the Company's net revenues come from sales to customers in the networking and telecommunications equipment industry. A decline in demand in this industry could have a material adverse affect on the Company's operating results and financial condition. | |||
Because much of the manufacturing and testing of the Company's products is conducted in Taiwan, its business performance may be affected by changes in Taiwan's political, social and economic environment. For example, any political instability resulting from the relationship among the United States, Taiwan and the People's Republic of China could damage the Company's business. Moreover, the role of the Taiwanese government in the Taiwanese economy is significant. Taiwanese policies toward economic liberalization, and laws and policies affecting technology companies, foreign investment, currency exchange rates, taxes and other matters could change, resulting in greater restrictions on the Company's and its suppliers' ability to do business and operate facilities in Taiwan. If any of these risks were to occur, the Company's business could be harmed. | |||
Some of the Company's suppliers and the Company's two principal operations are located near fault lines. In the event of a major earthquake or other natural disaster near the facilities of any of these suppliers or the Company, the Company's business could be harmed. | |||
From time to time, the Company is involved in legal actions. The Company currently is a party to pending legal proceedings which it is defending aggressively. See Note 6 for additional information regarding this pending litigation. There are many uncertainties associated with any litigation, and the Company may not prevail. If information becomes available that causes us to determine that a loss in any of our pending litigation, or the settlement of such litigation, is probable, and we can reasonably estimate the loss associated with such events, we will record the loss in accordance with GAAP. However, the actual liability in any such litigation may be materially different from our estimates, which could require us to record additional costs. | |||
Revenue recognition | |||
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability of the resulting receivable is reasonably assured. Under these criteria, revenue from the sale of products is generally recognized upon shipment according to the Company's shipping terms, net of accruals for estimated sales returns and allowances based on historical experience. Sales to distributors are made under agreements allowing for returns or credits. Distributors have stock rotation, price protection and ship from stock pricing adjustment rights and the Company therefore defers recognition of revenue on sales to distributors until products are resold by the distributor. In light of possible changes to sales prices resulting from price protection and price adjustment rights granted, sales prices to the distributor are not fixed or determinable until the final sale to the end user. For sales to consignment warehouses, who purchase products from the Company for use by contract manufacturers, revenues are recognized upon delivery to the contract manufacturer. | |||
Cash and cash equivalents | |||
Cash and cash equivalents include cash in demand accounts and highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase, stated at cost, which approximates their fair market value. | |||
Short-term and long-term investments | |||
All of the Company's short-term investments are classified as available-for-sale. Available-for-sale debt securities with maturities greater than twelve months are classified as long-term investments when they are not intended for use in current operations. Investments in available-for-sale securities are reported at fair value with unrecognized gains (losses), net of tax, as a component of "Accumulated other comprehensive income" in the Consolidated Balance Sheets. The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when the declines are determined to be other-than-temporary. | |||
Concentration of credit risk | |||
Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash, cash equivalents, short-term and long-term investments and accounts receivable. The Company places its cash primarily in checking, certificate of deposit, and money market accounts with reputable financial institutions. The Company's accounts receivable are derived primarily from revenue earned from customers located in the U.S. and Asia. The Company performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral from its customers. The Company maintains an allowance for doubtful accounts receivable based upon the expected collectability of accounts receivable. There were no write offs of accounts receivable in the years ended March 31, 2014, 2013 or 2012. | |||
In fiscal 2014, 2013, and 2012, sales to the Company's top 10 customers accounted for approximately 92%, 91% and 92% of net revenues, respectively. At March 31, 2014, four customers accounted for 20%, 16%, 14%, and 12% of accounts receivable, and for the year then ended, four customers accounted for 30%, 14%, 12% and 10% of net revenues. At March 31, 2013, six customers accounted for 20%, 16%, 15%, 10%, 10% and 10% of accounts receivable, and for the year then ended, four customers accounted for 27%, 14%, 11% and 10% of net revenues. At March 31, 2012, five customers accounted for 19%, 16%, 12%, 11% and 10% of accounts receivable, and for the year then ended, four customers accounted for 20%, 20%, 11% and 11% of net revenues. | |||
Inventories | |||
Inventories are stated at the lower of cost or market value, cost being determined on a weighted average basis. Inventory write-down allowances are established when conditions indicate that the selling price could be less than cost due to physical deterioration, obsolescence, changes in price levels, or other causes. These allowances, once recorded, result in a new cost basis for the related inventory. These allowances are also considered for excess inventory generally based on inventory levels in excess of 12 months of forecasted demand, as estimated by management, for each specific product. The allowance is not reversed until the inventory is sold or disposed of. | |||
The Company recorded write-downs of excess and obsolete inventories of $2.1 million, $777,000 and $696,000, respectively, in fiscal 2014, 2013 and 2012. The increased write-downs recorded in fiscal 2014 were taken in response to the decline in the business and the fact that management’s prior expectations regarding the recoverability of certain products, which were based on estimates of increasing demand for these products in anticipation of and following the favorable ITC ruling on June 7, 2013 and the exit of a competitor from the SRAM market in the December 2012 quarter, did not materialize. | |||
Property and equipment, net | |||
Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as presented below: | |||
Software | 3 to 5 years | ||
Computer and other equipment | 5 to 10 years | ||
Building and building improvements | 10 to 25 years | ||
Furniture and fixtures | 7 years | ||
Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the assets or the remaining lease term of the respective assets. Gains or losses on disposals of property and equipment are recorded within income from operations. Costs of repairs and maintenance are typically included as part of operating expenses unless they are incurred in relation to major improvements to existing property and equipment, at which time they are capitalized. | |||
Impairment of long-lived assets | |||
Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. If the sum of the expected future cash flows (undiscounted and before interest) from the use of the assets is less than the net book value of the asset an impairment exists and the amount of the impairment loss, if any, will generally be measured as the difference between net book value of the assets and their estimated fair values. There were no impairment losses recognized during the years ended March 31, 2014, 2013 or 2012. | |||
Intangible Assets | |||
Intangible assets are amortized over their estimated useful lives, generally on a straight-line basis over five to nine years. The Company reviews identifiable amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. | |||
Research and development | |||
Research and development expenses are related to new product designs, including, salaries, stock-based compensation, contractor fees, and allocation of corporate costs and are charged to the statement of operations as incurred. | |||
Income taxes | |||
The Company accounts for income taxes under the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when it is more likely than not that the deferred tax asset will not be realized. Because the Company recorded a cumulative three-year loss on a U.S. tax basis for the period ended March 31, 2014, the Company recorded a tax provision reflecting a full valuation allowance of our $3.7 million in deferred tax assets. | |||
Authoritative guidance prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return (including a decision whether to file or not to file a return in a particular jurisdiction). Under the guidance, the financial statements will reflect expected future tax consequences of such positions presuming the taxing authorities' full knowledge of the position and all relevant facts, but without considering time values. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation process, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. | |||
Shipping and handling costs | |||
The Company records costs related to shipping and handling in cost of revenues. | |||
Advertising expense | |||
Advertising costs are charged to expense in the period incurred. Advertising expense was $7,000, $10,000 and $8,000 for the years ended March 31, 2014, 2013, and 2012, respectively. | |||
Foreign currency transactions | |||
The U.S. dollar is the functional currency for all of the Company's foreign operations. Foreign currency transaction gains and losses, resulting from transactions denominated in currencies other than U.S. dollars are included in the statements of operations. These gains and losses were not material for the years ended March 31, 2014, 2013 or 2012. | |||
Segments | |||
The Company operates in one segment for the design, development and sale of integrated circuits. | |||
Accounting for stock-based compensation | |||
Stock-based compensation expense recognized in the statement of operations is based on options ultimately expected to vest, reduced by the amount of estimated forfeitures. The Company chose the straight-line method of allocating compensation cost over the requisite service period of the related award according to authoritative guidance. The Company calculated the expected term based on the historical average period of time that options were outstanding as adjusted for expected changes in future exercise patterns, which, for options granted in fiscal 2014, 2013 and 2012 resulted in an expected term of approximately five years. The Company used historical volatility to estimate expected volatility in fiscal 2014 and 2013. The Company based its estimate of expected volatility in fiscal 2012 on the estimated volatility of similar entities whose share prices were publicly available. The risk-free interest rate is based on the U.S. Treasury yields in effect at the time of grant for periods corresponding to the expected life of the options. The dividend yield is 0%, based on the fact that the Company has never paid dividends and has no present intention to pay dividends. Changes to these assumptions may have a significant impact on the results of operations. | |||
Authoritative guidance requires cash flows, if any, resulting from the tax benefits from tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) to be classified as financing cash flows. | |||
Comprehensive income (loss) | |||
Comprehensive income (loss) is defined to include all changes in equity during a period except those resulting from investments by owners and distributions to owners. For the years ended March 31, 2014, 2013 and 2012, comprehensive income (loss) was $(6,201,000), $3,803,000 and $6,761,000, respectively. | |||
Recent accounting pronouncements | |||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) on Income Taxes, to improve the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance is expected to reduce diversity in practice and is expected to better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This guidance is effective for the Company’s interim and annual periods beginning after December 15, 2013. The Company does not expect the implementation of this authoritative guidance to have a material impact on its financial position or results of operations. | |||
2_NET_INCOME_PER_COMMON_SHARE
2. NET INCOME PER COMMON SHARE | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Net income per share: | ' | |||||||||
NOTE 2 - NET INCOME PER COMMON SHARE | ' | |||||||||
NOTE 2—NET INCOME (LOSS) PER COMMON SHARE | ||||||||||
The Company uses the treasury stock method to calculate the weighted average shares used in computing diluted net income per share. The following table sets forth the computation of basic and diluted net income (loss) per share: | ||||||||||
Year Ended March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands, except per share amounts) | ||||||||||
Net income (loss) | $ | -6,189 | $ | 3,846 | $ | 6,756 | ||||
Denominators: | ||||||||||
Weighted average shares—Basic | 27,505 | 27,124 | 28,497 | |||||||
Dilutive effect of employee stock options | - | 940 | 998 | |||||||
Dilutive effect of employee stock purchase plan options | - | 13 | 1 | |||||||
Weighted average shares—Dilutive | 27,505 | 28,077 | 29,496 | |||||||
Net income (loss) per common share—Basic | $ | -0.23 | $ | 0.14 | $ | 0.24 | ||||
Net income (loss) per common share—Diluted | $ | -0.23 | $ | 0.14 | $ | 0.23 | ||||
The following shares of common stock underlying outstanding stock options, determined on a weighted average basis, were excluded from the computation of diluted net income (loss) per common share as they had an anti-dilutive effect: | ||||||||||
Year Ended March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Shares underlying options | 2,911 | 3,105 | 1,388 | |||||||
3_BALANCE_SHEET_DETAIL
3. BALANCE SHEET DETAIL | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Balance Sheet Detail | ' | |||||||||
NOTE 3 - BALANCE SHEET DETAIL | ' | |||||||||
NOTE 3—BALANCE SHEET DETAIL | ||||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Inventories: | ||||||||||
Work-in-progress | $ | 2,011 | $ | 4,236 | ||||||
Finished goods | 5,588 | 8,772 | ||||||||
Inventory at distributors | 586 | 801 | ||||||||
$ | 8,185 | $ | 13,809 | |||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Accounts receivable, net: | ||||||||||
Accounts receivable | $ | 8,349 | $ | 10,357 | ||||||
Less: Allowances for sales returns, doubtful accounts and other | -111 | -116 | ||||||||
$ | 8,238 | $ | 10,241 | |||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Prepaid expenses and other current assets: | ||||||||||
Prepaid tooling and masks | $ | 833 | $ | 1,230 | ||||||
Prepaid income taxes | 2,598 | 2,037 | ||||||||
Other receivables | 596 | 557 | ||||||||
Other prepaid expenses | 1,125 | 1,121 | ||||||||
$ | 5,152 | $ | 4,945 | |||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Property and equipment, net: | ||||||||||
Computer and other equipment | $ | 16,990 | $ | 16,344 | ||||||
Software | 4,780 | 4,690 | ||||||||
Land | 3,900 | 3,900 | ||||||||
Building and building improvements | 2,256 | 2,256 | ||||||||
Furniture and fixtures | 110 | 110 | ||||||||
Leasehold improvements | 791 | 767 | ||||||||
Construction in progress | - | 51 | ||||||||
28,827 | 28,118 | |||||||||
Less: Accumulated depreciation and amortization | -19,144 | -17,344 | ||||||||
$ | 9,683 | $ | 10,774 | |||||||
Depreciation and amortization expense was $1,801,000, $2,375,000 and $2,611,000 for the years ended March 31, 2014, 2013 and 2012, respectively. | ||||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Other assets: | ||||||||||
Non-current deferred income taxes | $ | 24 | $ | 1,272 | ||||||
Intangible assets, net | 564 | 744 | ||||||||
Deposits | 80 | 82 | ||||||||
$ | 668 | $ | 2,098 | |||||||
The following table summarizes the components of intangible assets and related accumulated amortization balances at March 31, 2014 (in thousands): | ||||||||||
Gross | ||||||||||
Carrying | Accumulated | Net Carrying | ||||||||
Amount | Amortization | Amount | ||||||||
Intangible assets: | ||||||||||
Product designs | $ | 590 | $ | -386 | $ | 204 | ||||
Patents | 720 | -367 | 353 | |||||||
Software | 80 | -73 | 7 | |||||||
Total | $ | 1,390 | $ | -826 | $ | 564 | ||||
Amortization of intangible assets of $180,000 was included in cost of revenues for the year ended March 31, 2014. | ||||||||||
As of March 31, 2014, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands): | ||||||||||
Year Ending March 31, | ||||||||||
2015 | $ | 171 | ||||||||
2016 | 164 | |||||||||
2017 | 115 | |||||||||
2018 | 80 | |||||||||
2019 | 34 | |||||||||
Thereafter | - | |||||||||
Total | $ | 564 | ||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Accrued expenses and other liabilities: | ||||||||||
Accrued compensation | $ | 2,330 | $ | 2,181 | ||||||
Accrued professional fees | 824 | 560 | ||||||||
Accrued commissions | 307 | 353 | ||||||||
Accrued royalties | 23 | 28 | ||||||||
Accrued equipment and software costs | - | 51 | ||||||||
Other accrued expenses | 960 | 805 | ||||||||
$ | 4,444 | $ | 3,978 | |||||||
4_INCOME_TAXES
4. INCOME TAXES | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Income Taxes | ' | |||||||||
NOTE 4-INCOME TAXES | ' | |||||||||
NOTE 4—INCOME TAXES | ||||||||||
Income (loss) before income taxes and income tax expense consist of the following: | ||||||||||
Year Ended March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Income (loss) before income taxes: | ||||||||||
U.S. | $ | -6,388 | $ | 137 | $ | -438 | ||||
Foreign | 912 | 3,747 | 7,619 | |||||||
$ | -5,476 | $ | 3,884 | $ | 7,181 | |||||
Current income tax expense (benefit): | ||||||||||
U.S. federal | $ | -1,782 | $ | 914 | $ | -108 | ||||
Foreign | 113 | 26 | -123 | |||||||
State | -82 | -134 | 91 | |||||||
-1,751 | 806 | -140 | ||||||||
Deferred income tax expense (benefit): | ||||||||||
U.S. federal | 1,892 | -529 | 643 | |||||||
State | 572 | -239 | -78 | |||||||
2,464 | -768 | 565 | ||||||||
Provision for income tax | $ | 713 | $ | 38 | $ | 425 | ||||
Income tax expense differs from the amount of income tax determined by applying the applicable U.S. statutory income tax rate to pre-tax income as follows: | ||||||||||
Year Ended March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
U.S. Federal taxes at statutory rate | $ | -1,862 | $ | 1,321 | $ | 2,440 | ||||
State taxes, net of federal benefit | 490 | -276 | -48 | |||||||
Stock-based compensation | 392 | 601 | 502 | |||||||
Tax credits | -338 | -454 | -238 | |||||||
Foreign tax rate differential | -650 | -1,099 | -2,167 | |||||||
Tax exempt interest | -29 | -30 | -48 | |||||||
Other | -72 | -25 | -16 | |||||||
-2,069 | 38 | 425 | ||||||||
Valuation allowance | 2,782 | - | - | |||||||
$ | 713 | $ | 38 | $ | 425 | |||||
Deferred tax assets and deferred tax liabilities consist of the following: | ||||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Deferred tax assets: | ||||||||||
Deferred revenue | $ | 202 | $ | 268 | ||||||
Tax credits | 1,154 | 397 | ||||||||
Net operating losses | 141 | - | ||||||||
Stock-based compensation | 1,247 | 1,126 | ||||||||
Other reserves and accruals | 1,020 | 965 | ||||||||
Total deferred tax assets | $ | 3,764 | $ | 2,756 | ||||||
Deferred tax liabilities: | ||||||||||
Property and equipment | $ | -58 | $ | -245 | ||||||
Unrecognized gains | -11 | -15 | ||||||||
Total deferred tax liabilities | $ | -69 | $ | -260 | ||||||
Gross deferred tax assets | $ | 3,695 | $ | 2,496 | ||||||
Valuation allowance | -3,695 | - | ||||||||
Net deferred tax assets | $ | - | $ | 2,496 | ||||||
U.S. income taxes and withholding taxes have not been provided on a cumulative total of $38.2 million of undistributed earnings for certain non-U.S. subsidiaries. The Company currently intends to reinvest these earnings in operations outside the United States. No provision has been made for taxes that might be payable upon remittance of such earnings, nor is it practicable to determine the amount of such potential liability. | ||||||||||
The current portion of the Company's unrecognized tax benefits at March 31, 2014 and 2013 was $0 and $0, respectively. The long-term portion at March 31, 2014 and 2013 was $1,462,000 and $2,803,000, respectively, of which the timing of the resolution is uncertain. As of March 31, 2014, $1,042,000 of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets. As of March 31, 2014, our net deferred tax assets of $3.7 million are subject to a full valuation allowance. It is possible, however, that some months or years may elapse before an uncertain position for which the Company has established a reserve is resolved. A reconciliation of unrecognized tax benefits is as follows: | ||||||||||
Year Ended March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Unrecognized tax benefits, beginning of period | $ | 2,760 | $ | 3,109 | $ | 2,312 | ||||
Additions based on tax positions related to current year | 250 | 429 | 649 | |||||||
Additions based on tax positions related to prior years | 13 | 85 | 252 | |||||||
Settlements during the current year | - | -231 | - | |||||||
Lapses during the current year applicable to statutes of limitations | -637 | -632 | -104 | |||||||
Unrecognized tax benefits, end of period | $ | 2,386 | $ | 2,760 | $ | 3,109 | ||||
The unrecognized tax benefit balance as of March 31, 2014 of $2,386,000 would affect the Company's effective tax rate if recognized. | ||||||||||
Management believes that it is reasonably possible that within the next twelve months the Company could have a reduction in uncertain tax benefits of up to $775,000, including interest and penalties, as a result of the lapse of statute of limitations. | ||||||||||
The Company's policy is to include interest and penalties related to unrecognized tax benefits within the provision for income taxes in the Consolidated Statements of Operations. | ||||||||||
The Company is subject to taxation in the United States and various state and foreign jurisdictions. In fiscal 2014, the Company established a full valuation allowance of $3.7 million for deferred tax assets that are not expected to be utilized in future years. Fiscal years 2010 through 2014 remain open to examination by the federal tax authorities and fiscal years 2007 through 2014 remain open to examination by California. | ||||||||||
5_FINANCIAL_INSTRUMENTS
5. FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Financial Instruments. | ' | ||||||||||||
NOTE 5-FINANCIAL INSTRUMENTS | ' | ||||||||||||
NOTE 5—FINANCIAL INSTRUMENTS | |||||||||||||
Fair value measurements | |||||||||||||
Authoritative accounting guidance for fair value measurements provides a framework for measuring fair value and related disclosure. The guidance applies to all financial assets and financial liabilities that are measured on a recurring basis. The guidance requires fair value measurement to be classified and disclosed in one of the following three categories: | |||||||||||||
Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities. The fair value of available-for-sale securities included in the Level 1 category is based on quoted prices that are readily and regularly available in an active market. As of March 31, 2014, the Level 1 category included money market funds of $3.9 million, which were included in cash and cash equivalents in the Consolidated Balance Sheet. | |||||||||||||
Level 2: Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. The fair value of available-for-sale securities included in the Level 2 category is based on the market values obtained from an independent pricing service that were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well established independent pricing vendors and broker-dealers. As of March 31, 2014, the Level 2 category included short-term investments of $39.4 million and long term-investments of $28.8 million, which were primarily comprised of certificates of deposit, corporate debt securities and government and agency securities. | |||||||||||||
Level 3: Valuations based on inputs that are unobservable and involve management judgment and the reporting entity's own assumptions about market participants and pricing. As of March 31, 2014, the Company had no Level 3 financial assets measured at fair value in the Consolidated Balance Sheet. | |||||||||||||
Short-term and long-term investments | |||||||||||||
All of the Company's short-term and long-term investments are classified as available-for-sale. Available-for-sale debt securities with maturities greater than twelve months are classified as long-term investments when they are not intended for use in current operations. Investments in available-for-sale securities are reported at fair value with unrecognized gains (losses), net of tax, as a component of accumulated other comprehensive income in the Consolidated Balance Sheets. The Company had money market funds of $3.9 million and $10.4 million at March 31, 2014 and March 31, 2013, respectively, included in cash and cash equivalents in the Consolidated Balance Sheet. The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when the declines are determined to be other-than-temporary. | |||||||||||||
The following table summarizes the Company's available-for-sale investments: | |||||||||||||
31-Mar-14 | |||||||||||||
Gross | Gross | ||||||||||||
Unrealized | Unrealized | Fair | |||||||||||
Cost | Gains | Losses | Value | ||||||||||
(In thousands) | |||||||||||||
Short-term investments: | |||||||||||||
State and municipal obligations | $ | 8,336 | $ | 4 | $ | - | $ | 8,340 | |||||
Corporate notes | 5,023 | 12 | - | 5,035 | |||||||||
Agency bonds | 3,523 | 2 | - | 3,525 | |||||||||
Certificates of deposit | 14,997 | 6 | - | 15,003 | |||||||||
Other | 7,507 | 2 | - | 7,509 | |||||||||
Total short-term investments | $ | 39,386 | $ | 26 | $ | - | $ | 39,412 | |||||
Long-term investments: | |||||||||||||
State and municipal obligations | $ | 8,227 | $ | 10 | $ | - | $ | 8,237 | |||||
Corporate notes | 6,392 | 16 | - | 6,408 | |||||||||
Certificates of deposit | 10,500 | - | -2 | 10,498 | |||||||||
Agency bonds | 2,011 | - | -5 | 2,006 | |||||||||
Other | 1,670 | - | - | 1,670 | |||||||||
Total long-term investments | $ | 28,800 | $ | 26 | $ | -7 | $ | 28,819 | |||||
31-Mar-13 | |||||||||||||
Gross | Gross | ||||||||||||
Unrealized | Unrealized | Fair | |||||||||||
Cost | Gains | Losses | Value | ||||||||||
(In thousands) | |||||||||||||
Short-term investments: | |||||||||||||
State and municipal obligations | $ | 10,564 | $ | 17 | $ | - | $ | 10,581 | |||||
Corporate notes | 6,052 | 14 | - | 6,066 | |||||||||
Certificates of deposit | 9,480 | 12 | - | 9,492 | |||||||||
Total short-term investments | $ | 26,096 | $ | 43 | $ | - | $ | 26,139 | |||||
Long-term investments: | |||||||||||||
State and municipal obligations | $ | 11,992 | $ | 3 | $ | - | $ | 11,995 | |||||
Corporate notes | 8,436 | 14 | - | 8,450 | |||||||||
Certificates of deposit | 9,008 | 18 | - | 9,026 | |||||||||
Other | 6,042 | - | -18 | 6,024 | |||||||||
Total long-term investments | $ | 35,478 | $ | 35 | $ | -18 | $ | 35,495 | |||||
The Company's investment portfolio consists of both corporate and governmental securities that have a maximum maturity of three years. All unrealized losses are due to changes in interest rates and bond yields. The Company has the ability to realize the full value of all these investments upon maturity. | |||||||||||||
At March 31, 2014, the deferred tax liability related to unrecognized gains and losses on short-term and long-term investments was $11,000. At March 31, 2013, the deferred tax liability related to unrecognized gains and losses on short-term and long-term investments was $14,000. | |||||||||||||
As of March 31, 2014, contractual maturities of the Company's available-for-sale non-equity investments were as follows: | |||||||||||||
Fair | |||||||||||||
Cost | Value | ||||||||||||
(In thousands) | |||||||||||||
Maturing within one year | $ | 39,386 | $ | 39,412 | |||||||||
Maturing in one to three years | 28,800 | 28,819 | |||||||||||
Maturing in more than three years | - | - | |||||||||||
$ | 68,186 | $ | 68,231 | ||||||||||
6_COMMITMENTS_AND_CONTINGENCIE
6. COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments and Contingencies Disclosure | ' | ||||
NOTE 6-COMMITMENTS AND CONTINGENCIES | ' | ||||
NOTE 6—COMMITMENTS AND CONTINGENCIES | |||||
Operating leases | |||||
The Company leases office space and equipment under noncancelable operating leases with various expiration dates through August 2014. Rent expense for the years ended March 31, 2014, 2013 and 2012 was $368,000, $373,000 and $371,000, respectively. The terms of the facility leases provide for rental payments on a graduated scale. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid. | |||||
Future minimum lease payments under noncancelable operating leases with remaining lease terms in excess of one year at March 31, 2014 are as follows: | |||||
Operating | |||||
Leases | |||||
(In thousands) | |||||
Fiscal Year Ending March 31, | |||||
2015 | $ | 155 | |||
2016 | 65 | ||||
2017 | 33 | ||||
2018 | - | ||||
2019 | - | ||||
Thereafter | - | ||||
Total | $ | 253 | |||
Royalty obligations | |||||
The Company has license agreements that require it to pay royalties on the sale of products using the licensed technology. Royalty expense for the years ended March 31, 2014, 2013 and 2012 was $59,000, $65,000 and $61,000, respectively, and was included within cost of revenues. | |||||
Indemnification obligations | |||||
The Company is a party to a variety of agreements pursuant to which it may be obligated to indemnify the other party with respect to certain matters. Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold and certain intellectual property rights. In each of these circumstances, payment by the Company is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party's claims. Further, the Company's obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements. | |||||
It is not possible to predict the maximum potential amount of future payments under these or similar agreements due to the conditional nature of the Company's obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material effect on its business, financial condition, cash flows or results of operations. The Company believes that if it were to incur a loss in any of these matters, such loss should not have a material effect on its business, financial condition, cash flows or results of operations. | |||||
Product warranties | |||||
The Company warrants its products to be free of defects generally for a period of three years. The Company estimates its warranty costs based on historical warranty claim experience and includes such costs in cost of revenues. Warranty costs were not significant for the years ended March 31, 2014, 2013 or 2012. | |||||
Legal proceedings | |||||
In March 2011, Cypress Semiconductor Corporation, a semiconductor manufacturer, filed a lawsuit against the Company in the United States District Court for the District of Minnesota alleging that the Company’s products, including its SigmaDDR and SigmaQuad families of Very Fast SRAMs, infringe five patents held by Cypress. The complaint seeks unspecified damages for past infringement and a permanent injunction against future infringement. | |||||
On June 10, 2011, Cypress filed a complaint against the Company with the United States International Trade Commission (the “ITC”). The ITC complaint, as subsequently amended, alleged infringement by the Company of three of the five patents involved in the District Court case and one additional patent and also alleged infringement by three of the Company’s distributors and 11 of its customers who allegedly incorporate the Company’s SRAMs in their products. The ITC complaint sought a limited exclusion order excluding the allegedly infringing SRAMs, and products containing them, from entry into the United States and permanent orders directing the Company and the other respondents to cease and desist from selling or distributing such products in the United States. On July 21, 2011, the ITC formally instituted an investigation in response to Cypress’s complaint. On June 7, 2013, the ITC announced that the full Commission had affirmed the determination of Chief Administrative Judge Charles E. Bullock that GSI’s SRAM devices, and products containing them, do not infringe the Cypress patents and that Cypress had failed to establish existence of a domestic industry that practices the patents. Moreover, the Commission reversed a portion of Judge Bullock’s determination with respect to the validity of the patents, finding the asserted claims of one of the patents to have been anticipated by prior art and, therefore, invalid. The Commission ordered the investigation terminated, and Cypress did not appeal the ruling. | |||||
The Minnesota District Court case had been stayed pending the conclusion of the ITC proceeding. Following the termination of the ITC investigation, the stay was lifted. On May 1, 2013, Cypress filed an additional lawsuit in the United States District Court for the Northern District of California alleging infringement by our products of five additional Cypress patents. Like the Minnesota case, the complaint in the California lawsuit seeks unspecified damages for past infringement and a permanent injunction against future infringement. The Company filed answers in both cases denying liability and asserting affirmative defenses. On August 7, 2013, the parties stipulated that the claims in the Minnesota case with respect to three of the asserted patents would be dismissed without prejudice and that the claims with respect to the remaining two patents would be transferred to the Northern District of California and consolidated with the pending California case. On August 20, 2013, the Court in the California case ordered the cases consolidated. Discovery in the case is proceeding. | |||||
The Company believes that it has strong defenses against Cypress’ patent infringement claims and intends to continue to defend itself vigorously. However, the litigation process is inherently uncertain, and the Company may not prevail. Patent litigation is particularly complex and can extend for a protracted period of time, which can substantially increase the cost of such litigation. The Company has not recorded any loss contingency during fiscal 2012, fiscal 2013 or fiscal 2014 in connection with these legal proceedings as the Company cannot predict their outcome and cannot estimate the likelihood or potential dollar amount of any adverse results. However, an unfavorable outcome in these proceedings could have a material adverse impact on the Company’s financial position, r esults of operations or cash flows for the period in which the outcome occurs and in future periods. | |||||
7COMMON_STOCK
7-COMMON STOCK | 12 Months Ended |
Mar. 31, 2014 | |
Common Stock. | ' |
NOTE 7-COMMON STOCK | ' |
NOTE 7—COMMON STOCK | |
The Company's Certificate of Incorporation, as amended, authorizes the Company to issue 150,000,000 shares of $0.001 par value common stock. | |
The Company’s Board of Directors has authorized the repurchase, at management's discretion, of shares its common stock. On August 20, 2013, the Board increased the dollar value of shares that may be repurchased by $10 million. Under the repurchase program, the Company may repurchase shares from time to time on the open market or in private transactions. The specific timing and amount of the repurchases will be dependent on market conditions, securities law limitations and other factors. The repurchase program may be suspended or terminated at any time without prior notice. Through March 31, 2014, the Company has repurchased a total of 4,066,757 shares at an average cost of $4.18 per share for a total cost of $17.0 million. | |
8_STOCK_BASED_COMPENSATION
8. STOCK- BASED COMPENSATION | 12 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||
NOTE 7-STOCK- BASED COMPENSATION | ' | |||||||||||||||
NOTE 8—STOCK- BASED COMPENSATION | ||||||||||||||||
The 2000 Stock Option Plan | ||||||||||||||||
In February 2001, the Company adopted the 2000 Stock Option Plan (the "2000 Plan"). The 2000 Plan provided for the granting of stock options and stock purchase rights to employees, consultants and directors of the Company. Options granted under the 2000 Plan could be either incentive stock options ("ISOs") or nonstatutory stock options ("NSOs"). In December 2006, the Company's board of directors authorized an additional 500,000 shares of the Company's common stock to be reserved for issuance under the 2000 Plan. As of March 31, 2008, the Company had reserved 3,500,000 shares of common stock for issuance under the 2000 Plan. | ||||||||||||||||
Options under the 2000 Plan could be granted for periods of up to ten years. However, in the case of ISOs granted to an optionee who, at the time the option was granted, owned stock representing more than 10% of the voting power of all classes of stock of the Company, the maximum term of an option was five years from the date of grant. The exercise price of an ISO or NSO could not be less than 100% and 85% of the estimated fair value of the shares as determined by the board of directors on the date of grant, respectively. However the exercise price of an ISO or NSO granted to a 10% or greater stockholder could not be less than 110% of the estimated fair value of the shares on the date of grant. | ||||||||||||||||
The 2007 Equity Incentive Plan | ||||||||||||||||
In January 2007, the Company's board of directors approved the 2007 Equity Incentive Plan, (the "Equity Plan"), which was subsequently approved by the Company's stockholders in March 2007. A total of 3,000,000 shares of common stock were authorized and reserved for issuance under the Equity Plan. This reserve automatically increases on April 1 of each year through 2017 by an amount equal to the smaller of (a) five percent of the number of shares of common stock issued and outstanding on the immediately preceding March 31, or (b) a lesser amount determined by the board of directors. Appropriate adjustments will be made in the number of authorized shares and other numerical limits in the Equity Plan and in outstanding awards to prevent dilution or enlargement of participants' rights in the event of a stock split or other change in the Company's capital structure. Shares subject to awards which expire or are cancelled or forfeited will again become available for issuance under the Equity Plan. The shares available will not be reduced by awards settled in cash or by shares withheld to satisfy tax withholding obligations. Only the net number of shares issued upon the exercise of stock appreciation rights or options exercised by means of a net exercise or by tender of previously owned shares will be deducted from the shares available under the Equity Plan. | ||||||||||||||||
To enable compensation provided in connection with certain types of awards intended to qualify as “performance-based” within the meaning of Section 162(m) of the Internal Revenue Code, the Equity Plan establishes limits on the maximum aggregate number of shares or dollar value for which awards may be granted to an employee in any fiscal year, as follows: | ||||||||||||||||
· | No more than 300,000 shares subject to stock options and stock appreciation rights. | |||||||||||||||
· | No more than 100,000 shares subject to restricted stock and restricted stock unit awards. | |||||||||||||||
· | For each full fiscal year of the Company contained in the performance period of the award, no more than 50,000 shares subject to performance share awards and other stock-based awards or more than $500,000 subject to performance unit awards and other cash-based awards. | |||||||||||||||
In addition, to comply with applicable tax rules, the Equity Plan also limits the number of shares that may be issued upon the exercise of ISOs granted under the Equity Plan to 3,000,000, cumulatively increased on April 1 of each subsequent year through 2017, by an amount equal to the smallest of (a) five percent of the number of shares of common stock issued and outstanding on the immediately preceding March 31, (b) 1,500,000 shares, or (c) a lesser amount determined by the board of directors. | ||||||||||||||||
Upon the adoption of the Equity Plan in March 2007, the 2000 Plan was terminated, no further options were granted under the 2000 Plan, the 535,597 shares that remained reserved for grant under the 2000 Plan were cancelled, and all subsequent grants of stock options were made pursuant to the Equity Plan. | ||||||||||||||||
Awards may be granted under the Equity Plan to the Company's employees, including officers, directors, or consultants or those of any present or future parent or subsidiary corporation or other affiliated entity. To date, options granted to non-officer employees generally vest 25% on the first anniversary and subsequent anniversaries of the date of grant, while grants to officers vest in full four years after the anniversary date of the officer's employment that is closest to the date of grant. While the Company may grant ISOs only to employees, the Company may grant NSOs, stock appreciation rights, restricted stock purchase rights or bonuses, restricted stock units, performance shares, performance units and cash-based awards or other stock-based awards to any eligible participant. Non-employee director awards may be granted only to members of the Company's board of directors who, at the time of grant, are not employees. Deferred compensation awards may be granted only to officers, directors and selected members of management or highly compensated employees. | ||||||||||||||||
Only members of the board of directors who are not employees at the time of grant are eligible to participate in the nonemployee director awards component of the Equity Plan. The board or the compensation committee shall set the amount and type of nonemployee director awards to be awarded on a periodic, non-discriminatory basis. Nonemployee director awards may be granted in the form of NSOs, stock appreciation rights, restricted stock awards and restricted stock unit awards. Subject to adjustment for changes in the Company's capital structure, no nonemployee director may be awarded, in any fiscal year, one or more nonemployee director awards for more than 2,000 shares. However, the annual limit may be increased by the following additions: (i) an additional 10,000 shares in the fiscal year in which the nonemployee director is first appointed or elected to the board, (ii) an additional 2,000 shares in any fiscal year in which the nonemployee director is serving as the chairman or lead director of the board, (iii) an additional 1,000 shares in any fiscal year for each committee of the board on which the nonemployee director is then serving other than as chairman of the committee, and (iv) an additional 2,000 shares in any fiscal year for each committee of the board on which the nonemployee director is then serving as chairman of the committee. | ||||||||||||||||
In the event of a change in control as described in the Equity Plan, the acquiring or successor entity may assume or continue all or any awards outstanding under the Equity Plan or substitute substantially equivalent awards. Any awards which are not assumed or continued in connection with a change in control or exercised or settled prior to the change in control will terminate effective as of the time of the change in control. The administrator may provide for the acceleration of vesting of any or all outstanding awards upon such terms and to such extent as it determines, except that the vesting of all nonemployee director awards will automatically be accelerated in full. The Equity Plan also authorizes the administrator, in its discretion and without the consent of any participant, to cancel each or any outstanding award denominated in shares upon a change in control in exchange for a payment to the participant with respect to each vested share subject to the cancelled award of an amount equal to the excess of the consideration to be paid per share of common stock in the change in control transaction over the exercise price per share, if any, under the award. | ||||||||||||||||
The 2007 Employee Stock Purchase Plan | ||||||||||||||||
In January 2007, the board of directors approved the 2007 Employee Stock Purchase Plan (the "2007 Purchase Plan") which was subsequently approved by the Company's stockholders in March 2007. A total of 500,000 shares of the Company's common stock was authorized and reserved for sale under the 2007 Purchase Plan. In addition, the 2007 Purchase Plan provides for an automatic annual increase in the number of shares available for issuance under the plan on April 1 of each year beginning in 2008 and continuing through and including April 1, 2017 equal to the lesser of (1) one percent of the number of issued and outstanding shares of common stock on the immediately preceding March 31, (2) 250,000 shares or (3) a number of shares as the board of directors may determine. Appropriate adjustments will be made in the number of authorized shares and in outstanding purchase rights to prevent dilution or enlargement of participants' rights in the event of a stock split or other change in our capital structure. Shares subject to purchase rights which expire or are canceled will again become available for issuance under the 2007 Purchase Plan. | ||||||||||||||||
The Company's employees and employees of any parent or subsidiary corporation designated by the administrator will be eligible to participate in the 2007 Purchase Plan if they are customarily employed by us for more than 20 hours per week and more than five months in any calendar year. However, an employee may not be granted a right to purchase stock under the 2007 Purchase Plan if: (1) the employee immediately after such grant would own stock possessing 5% or more of the total combined voting power or value of all classes of our capital stock or of any parent or subsidiary corporation, or (2) the employee's rights to purchase stock under all of our employee stock purchase plans would accrue at a rate that exceeds $25,000 in value for each calendar year of participation in such plans. | ||||||||||||||||
The 2007 Purchase Plan is designed to be implemented through a series of sequential offering periods, generally six (6) months in duration beginning on the first trading day on or after May 1 and November 1 of each year. The administrator is authorized to establish additional or alternative sequential or overlapping offering periods and offering periods having a different duration or different starting or ending dates, provided that no offering period may have a duration exceeding 27 months. | ||||||||||||||||
Amounts accumulated for each participant under the 2007 Purchase Plan are used to purchase shares of the Company's common stock at the end of each offering period at a price generally equal to 85% of the lower of the fair market value of our common stock at the beginning of an offering period or at the end of the offering period. Prior to commencement of an offering period, the administrator is authorized to reduce, but not increase, this purchase price discount for that offering period, or, under circumstances described in the 2007 Purchase Plan, during that offering period. The maximum number of shares a participant may purchase in any six-month offering period is the lesser of (i) that number of shares determined by multiplying (x) 1,000 shares by (y) the number of months (rounded to the nearest whole month) in the offering period and rounding to the nearest whole share or (ii) that number of whole shares determined by dividing (x) the product of $2,083.33 and the number of months (rounded to the nearest whole month) in the offering period and rounding to the nearest whole dollar by (y) the fair market value of a share of our common stock at the beginning of the offering period. Prior to the beginning of any offering period, the administrator may alter the maximum number of shares that may be purchased by any participant during the offering period or specify a maximum aggregate number of shares that may be purchased by all participants in the offering period. If insufficient shares remain available under the plan to permit all participants to purchase the number of shares to which they would otherwise be entitled, the administrator will make a pro rata allocation of the available shares. Any amounts withheld from participants' compensation in excess of the amounts used to purchase shares will be refunded, without interest. | ||||||||||||||||
In the event of a change in control, an acquiring or successor corporation may assume our rights and obligations under the 2007 Purchase Plan. If the acquiring or successor corporation does not assume such rights and obligations, then the purchase date of the offering periods then in progress will be accelerated to a date prior to the change in control. | ||||||||||||||||
The following table summarizes stock option activities: | ||||||||||||||||
Weighted | ||||||||||||||||
Number of Shares | Average | Weighted | ||||||||||||||
Shares | Underlying | Remaining | Average | |||||||||||||
Available for | Options | Contractual | Exercise | Intrinsic | ||||||||||||
Grant | Outstanding | Life (Years) | Price | Value | ||||||||||||
Balance at March 31, 2011 | 3,736,035 | 5,065,478 | $ | 4.46 | ||||||||||||
Options reserved | 1,432,452 | - | - | |||||||||||||
Granted | -854,423 | 854,423 | 5.81 | |||||||||||||
Exercised | - | -225,789 | 4.87 | $ | 403,038 | |||||||||||
Forfeited | 47,400 | -67,964 | 5.53 | |||||||||||||
Balance at March 31, 2012 | 4,361,464 | 5,626,148 | 4.46 | |||||||||||||
Options reserved | 1,380,897 | - | - | |||||||||||||
Granted | -914,963 | 914,963 | 5.04 | |||||||||||||
Exercised | - | -123,732 | 3.02 | 351,120 | ||||||||||||
Forfeited | 40,060 | -81,060 | 4.74 | |||||||||||||
Balance at March 31, 2013 | 4,867,458 | 6,336,319 | 4.64 | |||||||||||||
Options reserved | 1,353,260 | - | - | |||||||||||||
Granted | -784,303 | 784,303 | 6.45 | |||||||||||||
Exercised | - | -816,957 | 3.10 | 2,629,982 | ||||||||||||
Forfeited | 149,085 | -159,685 | 6.04 | |||||||||||||
Balance at March 31, 2014 | 5,585,500 | 6,143,980 | $ | 5.13 | ||||||||||||
Options vested and exercisable | 3,911,466 | 4.68 | $ | 4.65 | $ | 8,987,352 | ||||||||||
Options vested and expected to vest | 6,082,908 | 5.96 | $ | 5.12 | $ | 11,151,549 | ||||||||||
The options outstanding and by exercise price at March 31, 2014 are as follows: | ||||||||||||||||
Number of | Options Outstanding | Options Exercisable | ||||||||||||||
Shares | Weighted | Weighted Average | Weighted | |||||||||||||
Underlying | Average | Remaining | Number | Average | ||||||||||||
Options | Exercise | Contractual | Vested and | Exercise | ||||||||||||
Exercise Price | Outstanding | Price | Life (Years) | Exercisable | Price | |||||||||||
$ | 2.43 | - | 3.38 | 628,219 | $ | 3.02 | 4.55 | 628,219 | $ | 3.02 | ||||||
$ | 3.43 | - | 3.94 | 492,391 | $ | 3.55 | 5.03 | 492,391 | $ | 3.55 | ||||||
$ | 4 | 669,303 | $ | 4.00 | 5.17 | 669,303 | $ | 4.00 | ||||||||
$ | 4.17 | - | 4.5 | 633,245 | $ | 4.26 | 5.60 | 384,517 | $ | 4.32 | ||||||
$ | 4.81 | - | 4.92 | 508,635 | $ | 4.87 | 7.94 | 137,365 | $ | 4.88 | ||||||
$ | 5.5 | 801,433 | $ | 5.50 | 2.63 | 801,433 | $ | 5.50 | ||||||||
$ | 5.59 | - | 5.76 | 621,480 | $ | 5.70 | 7.30 | 222,171 | $ | 5.71 | ||||||
$ | 6 | - | 6.54 | 799,858 | $ | 6.32 | 7.16 | 355,131 | $ | 6.18 | ||||||
$ | 6.61 | - | 6.86 | 668,103 | $ | 6.77 | 8.89 | 62,452 | $ | 6.82 | ||||||
$ | 7 | - | 9.2 | 321,313 | $ | 7.78 | 6.52 | 158,484 | $ | 7.87 | ||||||
6,143,980 | $ | 5.13 | 5.99 | 3,911,466 | ||||||||||||
Stock-based compensation | ||||||||||||||||
The Company recognized $2,228,000, $2,278,000 and $2,096,000 of stock-based compensation expense for the years ended March 31, 2014, 2013 and 2012, respectively, as follows: | ||||||||||||||||
Year Ending March 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | ||||||||||||||||
Cost of revenues | $ | 386 | $ | 338 | $ | 321 | ||||||||||
Research and development | 970 | 1,140 | 1,061 | |||||||||||||
Selling, general and administrative | 872 | 800 | 714 | |||||||||||||
Total | $ | 2,228 | $ | 2,278 | $ | 2,096 | ||||||||||
Stock-based compensation expense in the years ended March 31, 2014, 2013 and 2012 included $152,000, $145,000 and $156,000, respectively, related to the Company's Employee Stock Purchase Plan. | ||||||||||||||||
In 2014, no tax benefit was recognized due to a full valuation allowance. The Company recognized related income tax benefits of $221,000 and $210,000 in the years ended March 31, 2013 and 2012, respectively. The reversal of previously recognized windfall tax benefits realized from exercised stock options was $33,000 in fiscal 2014. Windfall tax benefits realized from exercised stock options were $92,000 and $75,000 during the fiscal years ended March 31, 2013 and 2012, respectively. Compensation cost capitalized within inventory at March 31, 2014 was insignificant. As of March 31, 2014, the Company's total unrecognized compensation cost was $3.7 million, which will be recognized over the weighted average period of 2.03 years. The Company calculated the fair value of stock based awards in the periods presented using the Black-Scholes option pricing model and the following weighted average assumptions: | ||||||||||||||||
Year Ended March 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | ||||||||||||||||
Stock Option Plans: | ||||||||||||||||
Risk-free interest rate | 0.91 | - | 1.61 | % | 0.69 | - | 0.82 | % | 0.90 | - | 1.89 | % | ||||
Expected life (in years) | 5.00 | 5.00 | 5.00 | |||||||||||||
Volatility | 45.5 | - | 48.4 | % | 48.8 | - | 52.9 | % | 50.8 | - | 53.8 | % | ||||
Dividend yield | - | % | - | % | - | % | ||||||||||
Employee Stock Purchase Plan: | ||||||||||||||||
Risk-free interest rate | 0.07 | - | 0.09 | % | 0.14 | - | 0.15 | % | 0.05 | - | 0.07 | % | ||||
Expected life (in years) | 0.50 | 0.50 | 0.50 | |||||||||||||
Volatility | 30.4 | - | 32.8 | % | 23.4 | - | 47.3 | % | 43.9 | - | 52.1 | % | ||||
Dividend yield | - | % | - | % | - | % | ||||||||||
The weighted average fair value of options granted during the years ended March 31, 2014, 2013 and 2012 was $2.73, $2.22 and $2.66, respectively. | ||||||||||||||||
9_SEGMENT_AND_GEOGRAPHIC_INFOR
9. SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Segment And Geographic Information | ' | |||||||||
NOTE 9-SEGMENT AND GEOGRAPHIC INFORMATION | ' | |||||||||
NOTE 9—SEGMENT AND GEOGRAPHIC INFORMATION | ||||||||||
Based on its operating management and financial reporting structure, the Company has determined that it has one reportable business segment: the design, development and sale of integrated circuits. | ||||||||||
The following is a summary of net revenues by geographic area based on the location to which product is shipped: | ||||||||||
Year Ended March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
United States | $ | 18,021 | $ | 20,588 | $ | 19,434 | ||||
China | 13,294 | 14,000 | 17,974 | |||||||
Malaysia | 9,827 | 16,352 | 27,048 | |||||||
Singapore | 5,979 | 7,141 | 10,971 | |||||||
Rest of the world | 11,458 | 7,933 | 7,113 | |||||||
$ | 58,579 | $ | 66,014 | $ | 82,540 | |||||
All sales are denominated in United States dollars. | ||||||||||
The locations and net book value of long-lived assets are as follows: | ||||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
United States | $ | 7,332 | $ | 8,214 | ||||||
Taiwan | 2,351 | 2,560 | ||||||||
$ | 9,683 | $ | 10,774 | |||||||
10EMPLOYEE_BENEFIT_PLAN
10-EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Mar. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
NOTE 10-EMPLOYEE BENEFIT PLAN | ' |
NOTE 10—EMPLOYEE BENEFIT PLAN | |
The Company provides a defined contribution retirement plan (the "Retirement Plan"), which qualifies under Section 401(k) of the Internal Revenue Code of 1996. The Retirement Plan covers essentially all United States employees. Eligible employees may make contributions to the Retirement Plan up to 15% of their annual compensation, but no greater than the annual IRS limitation for any plan year. The Retirement Plan does not provide for Company contributions. | |
11QUARTERLY_FINANCIAL_DATA
11-QUARTERLY FINANCIAL DATA | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||
NOTE 11-QUARTERLY FINANCIAL DATA (Unaudited) | ' | ||||||||||||
NOTE 11—QUARTERLY FINANCIAL DATA (Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
June 30, | September 30, | December 31, | March 31, | ||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||
(In thousands, except per share amounts) | |||||||||||||
Consolidated Statement of Operations Data: | |||||||||||||
Net revenues | $ | 16,412 | $ | 15,542 | $ | 13,778 | $ | 12,847 | |||||
Gross profit | $ | 7,466 | $ | 7,402 | $ | 5,368 | $ | 5,874 | |||||
Net income (loss) | $ | -441 | $ | 386 | $ | -734 | $ | -5,400 | |||||
Net income (loss) per common share—Basic | $ | -0.02 | $ | 0.01 | $ | -0.03 | $ | -0.2 | |||||
Net income (loss) per common share—Diluted | $ | -0.02 | $ | 0.01 | $ | -0.03 | $ | -0.2 | |||||
Three Months Ended | |||||||||||||
June 30, | September 30, | December 31, | March 31, | ||||||||||
2012 | 2012 | 2012 | 2013 | ||||||||||
(In thousands, except per share amounts) | |||||||||||||
Consolidated Statement of Operations Data: | |||||||||||||
Net revenues | $ | 16,783 | $ | 16,010 | $ | 17,514 | $ | 15,707 | |||||
Gross profit | $ | 6,765 | $ | 7,204 | $ | 7,344 | $ | 7,275 | |||||
Net income | $ | 920 | $ | 1,132 | $ | 844 | $ | 950 | |||||
Net income per common share—Basic | $ | 0.03 | $ | 0.04 | $ | 0.03 | $ | 0.04 | |||||
Net income per common share—Diluted | $ | 0.03 | $ | 0.04 | $ | 0.03 | $ | 0.03 | |||||
1_THE_COMPANY_AND_SUMMARY_OF_S1
1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Mar. 31, 2014 | |||
Company And Summary Of Significant Accounting Policies Details Narrative | ' | ||
Accounting principles | ' | ||
Accounting principles | |||
The consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). | |||
Basis of consolidation | ' | ||
Basis of consolidation | |||
The consolidated financial statements include the accounts of the Company's three wholly-owned subsidiaries, GSI Technology Holdings, Inc., GSI Technology (BVI), Inc. and GSI Technology Taiwan, Inc. All significant inter-company transactions and balances have been eliminated in consolidation. | |||
Use of estimates | ' | ||
Use of estimates | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates are inherent in the preparation of the consolidated financial statements and include revenue recognition, obsolete and excess inventory, the valuation allowance on deferred tax assets, the valuation of equity instruments and stock-based compensation. Actual results could differ from those estimates. | |||
Risk and uncertainties | ' | ||
Risk and uncertainties | |||
The Company buys all of its SRAM and LLDRAM wafers, integral components of its products, from single suppliers and is also dependent on independent suppliers to assemble and test its products. During the years ended March 31, 2014, 2013 and 2012, all of the wafers used in the Company's SRAM and LLDRAM products were supplied by Taiwan Semiconductor Manufacturing Company Limited, or TSMC, and Powerchip Technology Corporation, or Powerchip, respectively. If these suppliers fail to satisfy the Company's requirements on a timely basis at competitive prices, the Company could suffer manufacturing delays, a possible loss of revenues, or higher cost of revenues, any of which could adversely affect operating results. | |||
A majority of the Company's net revenues come from sales to customers in the networking and telecommunications equipment industry. A decline in demand in this industry could have a material adverse affect on the Company's operating results and financial condition. | |||
Because much of the manufacturing and testing of the Company's products is conducted in Taiwan, its business performance may be affected by changes in Taiwan's political, social and economic environment. For example, any political instability resulting from the relationship among the United States, Taiwan and the People's Republic of China could damage the Company's business. Moreover, the role of the Taiwanese government in the Taiwanese economy is significant. Taiwanese policies toward economic liberalization, and laws and policies affecting technology companies, foreign investment, currency exchange rates, taxes and other matters could change, resulting in greater restrictions on the Company's and its suppliers' ability to do business and operate facilities in Taiwan. If any of these risks were to occur, the Company's business could be harmed. | |||
Some of the Company's suppliers and the Company's two principal operations are located near fault lines. In the event of a major earthquake or other natural disaster near the facilities of any of these suppliers or the Company, the Company's business could be harmed. | |||
From time to time, the Company is involved in legal actions. The Company currently is a party to pending legal proceedings which it is defending aggressively. See Note 6 for additional information regarding this pending litigation. There are many uncertainties associated with any litigation, and the Company may not prevail. If information becomes available that causes us to determine that a loss in any of our pending litigation, or the settlement of such litigation, is probable, and we can reasonably estimate the loss associated with such events, we will record the loss in accordance with GAAP. However, the actual liability in any such litigation may be materially different from our estimates, which could require us to record additional costs. | |||
Revenue recognition | ' | ||
Revenue recognition | |||
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability of the resulting receivable is reasonably assured. Under these criteria, revenue from the sale of products is generally recognized upon shipment according to the Company's shipping terms, net of accruals for estimated sales returns and allowances based on historical experience. Sales to distributors are made under agreements allowing for returns or credits. Distributors have stock rotation, price protection and ship from stock pricing adjustment rights and the Company therefore defers recognition of revenue on sales to distributors until products are resold by the distributor. In light of possible changes to sales prices resulting from price protection and price adjustment rights granted, sales prices to the distributor are not fixed or determinable until the final sale to the end user. For sales to consignment warehouses, who purchase products from the Company for use by contract manufacturers, revenues are recognized upon delivery to the contract manufacturer. | |||
Cash and cash equivalents | ' | ||
Cash and cash equivalents | |||
Cash and cash equivalents include cash in demand accounts and highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase, stated at cost, which approximates their fair market value. | |||
Short-term and long-term investments | ' | ||
Short-term and long-term investments | |||
All of the Company's short-term investments are classified as available-for-sale. Available-for-sale debt securities with maturities greater than twelve months are classified as long-term investments when they are not intended for use in current operations. Investments in available-for-sale securities are reported at fair value with unrecognized gains (losses), net of tax, as a component of "Accumulated other comprehensive income" in the Consolidated Balance Sheets. The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when the declines are determined to be other-than-temporary. | |||
Concentration of credit risk | ' | ||
Concentration of credit risk | |||
Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash, cash equivalents, short-term and long-term investments and accounts receivable. The Company places its cash primarily in checking, certificate of deposit, and money market accounts with reputable financial institutions. The Company's accounts receivable are derived primarily from revenue earned from customers located in the U.S. and Asia. The Company performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral from its customers. The Company maintains an allowance for doubtful accounts receivable based upon the expected collectability of accounts receivable. There were no write offs of accounts receivable in the years ended March 31, 2014, 2013 or 2012. | |||
In fiscal 2014, 2013, and 2012, sales to the Company's top 10 customers accounted for approximately 92%, 91% and 92% of net revenues, respectively. At March 31, 2014, four customers accounted for 20%, 16%, 14%, and 12% of accounts receivable, and for the year then ended, four customers accounted for 30%, 14%, 12% and 10% of net revenues. At March 31, 2013, six customers accounted for 20%, 16%, 15%, 10%, 10% and 10% of accounts receivable, and for the year then ended, four customers accounted for 27%, 14%, 11% and 10% of net revenues. At March 31, 2012, five customers accounted for 19%, 16%, 12%, 11% and 10% of accounts receivable, and for the year then ended, four customers accounted for 20%, 20%, 11% and 11% of net revenues. | |||
Inventories | ' | ||
Inventories | |||
Inventories are stated at the lower of cost or market value, cost being determined on a weighted average basis. Inventory write-down allowances are established when conditions indicate that the selling price could be less than cost due to physical deterioration, obsolescence, changes in price levels, or other causes. These allowances, once recorded, result in a new cost basis for the related inventory. These allowances are also considered for excess inventory generally based on inventory levels in excess of 12 months of forecasted demand, as estimated by management, for each specific product. The allowance is not reversed until the inventory is sold or disposed of. | |||
Excess and Obsolete Inventory Write-Down | ' | ||
The Company recorded write-downs of excess and obsolete inventories of $2.1 million, $777,000 and $696,000, respectively, in fiscal 2014, 2013 and 2012. The increased write-downs recorded in fiscal 2014 were taken in response to the decline in the business and the fact that management’s prior expectations regarding the recoverability of certain products, which were based on estimates of increasing demand for these products in anticipation of and following the favorable ITC ruling on June 7, 2013 and the exit of a competitor from the SRAM market in the December 2012 quarter, did not materialize. | |||
Property and equipment, net | ' | ||
Property and equipment, net | |||
Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as presented below: | |||
Software | 3 to 5 years | ||
Computer and other equipment | 5 to 10 years | ||
Building and building improvements | 10 to 25 years | ||
Furniture and fixtures | 7 years | ||
Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the assets or the remaining lease term of the respective assets. Gains or losses on disposals of property and equipment are recorded within income from operations. Costs of repairs and maintenance are typically included as part of operating expenses unless they are incurred in relation to major improvements to existing property and equipment, at which time they are capitalized. | |||
Impairment of long-lived assets | ' | ||
Impairment of long-lived assets | |||
Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. If the sum of the expected future cash flows (undiscounted and before interest) from the use of the assets is less than the net book value of the asset an impairment exists and the amount of the impairment loss, if any, will generally be measured as the difference between net book value of the assets and their estimated fair values. There were no impairment losses recognized during the years ended March 31, 2014, 2013 or 2012. | |||
Intangible Assets | ' | ||
Intangible Assets | |||
Intangible assets are amortized over their estimated useful lives, generally on a straight-line basis over five to nine years. The Company reviews identifiable amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. | |||
Research and development | ' | ||
Research and development | |||
Research and development expenses are related to new product designs, including, salaries, stock-based compensation, contractor fees, and allocation of corporate costs and are charged to the statement of operations as incurred. | |||
Income taxes | ' | ||
Income taxes | |||
The Company accounts for income taxes under the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when it is more likely than not that the deferred tax asset will not be realized. Because the Company recorded a cumulative three-year loss on a U.S. tax basis for the period ended March 31, 2014, the Company recorded a tax provision reflecting a full valuation allowance of our $3.7 million in deferred tax assets. | |||
Authoritative guidance prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return (including a decision whether to file or not to file a return in a particular jurisdiction). Under the guidance, the financial statements will reflect expected future tax consequences of such positions presuming the taxing authorities' full knowledge of the position and all relevant facts, but without considering time values. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation process, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. | |||
Shipping and handling costs | ' | ||
Shipping and handling costs | |||
The Company records costs related to shipping and handling in cost of revenues. | |||
Advertising expense. | ' | ||
Advertising expense | |||
Advertising costs are charged to expense in the period incurred. Advertising expense was $7,000, $10,000 and $8,000 for the years ended March 31, 2014, 2013, and 2012, respectively. | |||
Foreign currency transactions | ' | ||
Foreign currency transactions | |||
The U.S. dollar is the functional currency for all of the Company's foreign operations. Foreign currency transaction gains and losses, resulting from transactions denominated in currencies other than U.S. dollars are included in the statements of operations. These gains and losses were not material for the years ended March 31, 2014, 2013 or 2012. | |||
Segments | ' | ||
Segments | |||
The Company operates in one segment for the design, development and sale of integrated circuits. | |||
Accounting for stock-based compensation | ' | ||
Accounting for stock-based compensation | |||
Stock-based compensation expense recognized in the statement of operations is based on options ultimately expected to vest, reduced by the amount of estimated forfeitures. The Company chose the straight-line method of allocating compensation cost over the requisite service period of the related award according to authoritative guidance. The Company calculated the expected term based on the historical average period of time that options were outstanding as adjusted for expected changes in future exercise patterns, which, for options granted in fiscal 2014, 2013 and 2012 resulted in an expected term of approximately five years. The Company used historical volatility to estimate expected volatility in fiscal 2014 and 2013. The Company based its estimate of expected volatility in fiscal 2012 on the estimated volatility of similar entities whose share prices were publicly available. The risk-free interest rate is based on the U.S. Treasury yields in effect at the time of grant for periods corresponding to the expected life of the options. The dividend yield is 0%, based on the fact that the Company has never paid dividends and has no present intention to pay dividends. Changes to these assumptions may have a significant impact on the results of operations. | |||
Authoritative guidance requires cash flows, if any, resulting from the tax benefits from tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) to be classified as financing cash flows. | |||
Comprehensive income (loss) | ' | ||
Comprehensive income (loss) | |||
Comprehensive income (loss) is defined to include all changes in equity during a period except those resulting from investments by owners and distributions to owners. For the years ended March 31, 2014, 2013 and 2012, comprehensive income (loss) was $(6,201,000), $3,803,000 and $6,761,000, respectively. | |||
Recent accounting pronouncements | ' | ||
Recent accounting pronouncements | |||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) on Income Taxes, to improve the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance is expected to reduce diversity in practice and is expected to better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This guidance is effective for the Company’s interim and annual periods beginning after December 15, 2013. The Company does not expect the implementation of this authoritative guidance to have a material impact on its financial position or results of operations. | |||
1_THE_COMPANY_AND_SUMMARY_OF_S2
1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||
Mar. 31, 2014 | |||
Company And Summary Of Significant Accounting Policies Details Narrative | ' | ||
Estimated useful lives of property and equipment | ' | ||
Software | 3 to 5 years | ||
Computer and other equipment | 5 to 10 years | ||
Building and building improvements | 10 to 25 years | ||
Furniture and fixtures | 7 years | ||
2_NET_INCOME_PER_COMMON_SHARE_
2. NET INCOME PER COMMON SHARE (Tables) | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Net income per share: | ' | |||||||||
Basic and diluted net income (loss) per share | ' | |||||||||
Year Ended March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands, except per share amounts) | ||||||||||
Net income (loss) | $ | -6,189 | $ | 3,846 | $ | 6,756 | ||||
Denominators: | ||||||||||
Weighted average shares—Basic | 27,505 | 27,124 | 28,497 | |||||||
Dilutive effect of employee stock options | - | 940 | 998 | |||||||
Dilutive effect of employee stock purchase plan options | - | 13 | 1 | |||||||
Weighted average shares—Dilutive | 27,505 | 28,077 | 29,496 | |||||||
Net income (loss) per common share—Basic | $ | -0.23 | $ | 0.14 | $ | 0.24 | ||||
Net income (loss) per common share—Diluted | $ | -0.23 | $ | 0.14 | $ | 0.23 | ||||
Anti-dilutive shares | ' | |||||||||
Year Ended March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Shares underlying options | 2,911 | 3,105 | 1,388 | |||||||
3_BALANCE_SHEET_DETAIL_Tables
3. BALANCE SHEET DETAIL (Tables) | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Balance Sheet Detail | ' | |||||||||
Schedule of Inventories | ' | |||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Inventories: | ||||||||||
Work-in-progress | $ | 2,011 | $ | 4,236 | ||||||
Finished goods | 5,588 | 8,772 | ||||||||
Inventory at distributors | 586 | 801 | ||||||||
$ | 8,185 | $ | 13,809 | |||||||
Schedule of Accounts Receivable, Net | ' | |||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Accounts receivable, net: | ||||||||||
Accounts receivable | $ | 8,349 | $ | 10,357 | ||||||
Less: Allowances for sales returns, doubtful accounts and other | -111 | -116 | ||||||||
$ | 8,238 | $ | 10,241 | |||||||
Schedule of Prepaid Expenses and Other Current Assets | ' | |||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Prepaid expenses and other current assets: | ||||||||||
Prepaid tooling and masks | $ | 833 | $ | 1,230 | ||||||
Prepaid income taxes | 2,598 | 2,037 | ||||||||
Other receivables | 596 | 557 | ||||||||
Other prepaid expenses | 1,125 | 1,121 | ||||||||
$ | 5,152 | $ | 4,945 | |||||||
Schedule of Property and Equipment, Net | ' | |||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Property and equipment, net: | ||||||||||
Computer and other equipment | $ | 16,990 | $ | 16,344 | ||||||
Software | 4,780 | 4,690 | ||||||||
Land | 3,900 | 3,900 | ||||||||
Building and building improvements | 2,256 | 2,256 | ||||||||
Furniture and fixtures | 110 | 110 | ||||||||
Leasehold improvements | 791 | 767 | ||||||||
Construction in progress | - | 51 | ||||||||
28,827 | 28,118 | |||||||||
Less: Accumulated depreciation and amortization | -19,144 | -17,344 | ||||||||
$ | 9,683 | $ | 10,774 | |||||||
Schedule of Other Assets | ' | |||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Other assets: | ||||||||||
Non-current deferred income taxes | $ | 24 | $ | 1,272 | ||||||
Intangible assets, net | 564 | 744 | ||||||||
Deposits | 80 | 82 | ||||||||
$ | 668 | $ | 2,098 | |||||||
Schedule of Intangible Assets | ' | |||||||||
Gross | ||||||||||
Carrying | Accumulated | Net Carrying | ||||||||
Amount | Amortization | Amount | ||||||||
Intangible assets: | ||||||||||
Product designs | $ | 590 | $ | -386 | $ | 204 | ||||
Patents | 720 | -367 | 353 | |||||||
Software | 80 | -73 | 7 | |||||||
Total | $ | 1,390 | $ | -826 | $ | 564 | ||||
Estimated future amortization expense of intangible assets | ' | |||||||||
Year Ending March 31, | ||||||||||
2015 | $ | 171 | ||||||||
2016 | 164 | |||||||||
2017 | 115 | |||||||||
2018 | 80 | |||||||||
2019 | 34 | |||||||||
Thereafter | - | |||||||||
Total | $ | 564 | ||||||||
Schedule of Accrued Expenses and Other Liabilities | ' | |||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Accrued expenses and other liabilities: | ||||||||||
Accrued compensation | $ | 2,330 | $ | 2,181 | ||||||
Accrued professional fees | 824 | 560 | ||||||||
Accrued commissions | 307 | 353 | ||||||||
Accrued royalties | 23 | 28 | ||||||||
Accrued equipment and software costs | - | 51 | ||||||||
Other accrued expenses | 960 | 805 | ||||||||
$ | 4,444 | $ | 3,978 | |||||||
4INCOME_TAXES_Tables
4-INCOME TAXES (Tables) | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Income Taxes | ' | |||||||||
Income before income taxes and income tax expense | ' | |||||||||
Year Ended March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Income (loss) before income taxes: | ||||||||||
U.S. | $ | -6,388 | $ | 137 | $ | -438 | ||||
Foreign | 912 | 3,747 | 7,619 | |||||||
$ | -5,476 | $ | 3,884 | $ | 7,181 | |||||
Current income tax expense (benefit): | ||||||||||
U.S. federal | $ | -1,782 | $ | 914 | $ | -108 | ||||
Foreign | 113 | 26 | -123 | |||||||
State | -82 | -134 | 91 | |||||||
-1,751 | 806 | -140 | ||||||||
Deferred income tax expense (benefit): | ||||||||||
U.S. federal | 1,892 | -529 | 643 | |||||||
State | 572 | -239 | -78 | |||||||
2,464 | -768 | 565 | ||||||||
Provision for income tax | $ | 713 | $ | 38 | $ | 425 | ||||
Income tax reconciliation | ' | |||||||||
Year Ended March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
U.S. Federal taxes at statutory rate | $ | -1,862 | $ | 1,321 | $ | 2,440 | ||||
State taxes, net of federal benefit | 490 | -276 | -48 | |||||||
Stock-based compensation | 392 | 601 | 502 | |||||||
Tax credits | -338 | -454 | -238 | |||||||
Foreign tax rate differential | -650 | -1,099 | -2,167 | |||||||
Tax exempt interest | -29 | -30 | -48 | |||||||
Other | -72 | -25 | -16 | |||||||
-2,069 | 38 | 425 | ||||||||
Valuation allowance | 2,782 | - | - | |||||||
$ | 713 | $ | 38 | $ | 425 | |||||
Deferred tax assets and deferred tax liabilities | ' | |||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
Deferred tax assets: | ||||||||||
Deferred revenue | $ | 202 | $ | 268 | ||||||
Tax credits | 1,154 | 397 | ||||||||
Net operating losses | 141 | - | ||||||||
Stock-based compensation | 1,247 | 1,126 | ||||||||
Other reserves and accruals | 1,020 | 965 | ||||||||
Total deferred tax assets | $ | 3,764 | $ | 2,756 | ||||||
Deferred tax liabilities: | ||||||||||
Property and equipment | $ | -58 | $ | -245 | ||||||
Unrecognized gains | -11 | -15 | ||||||||
Total deferred tax liabilities | $ | -69 | $ | -260 | ||||||
Gross deferred tax assets | $ | 3,695 | $ | 2,496 | ||||||
Valuation allowance | -3,695 | - | ||||||||
Net deferred tax assets | $ | - | $ | 2,496 | ||||||
Unrecognized tax benefits | ' | |||||||||
Year Ended March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
Unrecognized tax benefits, beginning of period | $ | 2,760 | $ | 3,109 | $ | 2,312 | ||||
Additions based on tax positions related to current year | 250 | 429 | 649 | |||||||
Additions based on tax positions related to prior years | 13 | 85 | 252 | |||||||
Settlements during the current year | - | -231 | - | |||||||
Lapses during the current year applicable to statutes of limitations | -637 | -632 | -104 | |||||||
Unrecognized tax benefits, end of period | $ | 2,386 | $ | 2,760 | $ | 3,109 | ||||
5_FINANCIAL_INSTRUMENTS_Tables
5. FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Financial Instruments. | ' | ||||||||||||
Schedule of Available-for-sale investments | ' | ||||||||||||
31-Mar-14 | |||||||||||||
Gross | Gross | ||||||||||||
Unrealized | Unrealized | Fair | |||||||||||
Cost | Gains | Losses | Value | ||||||||||
(In thousands) | |||||||||||||
Short-term investments: | |||||||||||||
State and municipal obligations | $ | 8,336 | $ | 4 | $ | - | $ | 8,340 | |||||
Corporate notes | 5,023 | 12 | - | 5,035 | |||||||||
Agency bonds | 3,523 | 2 | - | 3,525 | |||||||||
Certificates of deposit | 14,997 | 6 | - | 15,003 | |||||||||
Other | 7,507 | 2 | - | 7,509 | |||||||||
Total short-term investments | $ | 39,386 | $ | 26 | $ | - | $ | 39,412 | |||||
Long-term investments: | |||||||||||||
State and municipal obligations | $ | 8,227 | $ | 10 | $ | - | $ | 8,237 | |||||
Corporate notes | 6,392 | 16 | - | 6,408 | |||||||||
Certificates of deposit | 10,500 | - | -2 | 10,498 | |||||||||
Agency bonds | 2,011 | - | -5 | 2,006 | |||||||||
Other | 1,670 | - | - | 1,670 | |||||||||
Total long-term investments | $ | 28,800 | $ | 26 | $ | -7 | $ | 28,819 | |||||
31-Mar-13 | |||||||||||||
Gross | Gross | ||||||||||||
Unrealized | Unrealized | Fair | |||||||||||
Cost | Gains | Losses | Value | ||||||||||
(In thousands) | |||||||||||||
Short-term investments: | |||||||||||||
State and municipal obligations | $ | 10,564 | $ | 17 | $ | - | $ | 10,581 | |||||
Corporate notes | 6,052 | 14 | - | 6,066 | |||||||||
Certificates of deposit | 9,480 | 12 | - | 9,492 | |||||||||
Total short-term investments | $ | 26,096 | $ | 43 | $ | - | $ | 26,139 | |||||
Long-term investments: | |||||||||||||
State and municipal obligations | $ | 11,992 | $ | 3 | $ | - | $ | 11,995 | |||||
Corporate notes | 8,436 | 14 | - | 8,450 | |||||||||
Certificates of deposit | 9,008 | 18 | - | 9,026 | |||||||||
Other | 6,042 | - | -18 | 6,024 | |||||||||
Total long-term investments | $ | 35,478 | $ | 35 | $ | -18 | $ | 35,495 | |||||
Schedule of Contractual maturities of the available-for-sale non-equity investments | ' | ||||||||||||
Fair | |||||||||||||
Cost | Value | ||||||||||||
(In thousands) | |||||||||||||
Maturing within one year | $ | 39,386 | $ | 39,412 | |||||||||
Maturing in one to three years | 28,800 | 28,819 | |||||||||||
Maturing in more than three years | - | - | |||||||||||
$ | 68,186 | $ | 68,231 | ||||||||||
6COMMITMENTS_AND_CONTINGENCIES
6-COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments and Contingencies Disclosure | ' | ||||
Future minimum lease payments under noncancelable operating leases | ' | ||||
Operating | |||||
Leases | |||||
(In thousands) | |||||
Fiscal Year Ending March 31, | |||||
2015 | $ | 155 | |||
2016 | 65 | ||||
2017 | 33 | ||||
2018 | - | ||||
2019 | - | ||||
Thereafter | - | ||||
Total | $ | 253 | |||
8_STOCK_BASED_COMPENSATION_Tab
8. STOCK- BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||
Summary of stock option activities | ' | |||||||||||||||
Weighted | ||||||||||||||||
Number of Shares | Average | Weighted | ||||||||||||||
Shares | Underlying | Remaining | Average | |||||||||||||
Available for | Options | Contractual | Exercise | Intrinsic | ||||||||||||
Grant | Outstanding | Life (Years) | Price | Value | ||||||||||||
Balance at March 31, 2011 | 3,736,035 | 5,065,478 | $ | 4.46 | ||||||||||||
Options reserved | 1,432,452 | - | - | |||||||||||||
Granted | -854,423 | 854,423 | 5.81 | |||||||||||||
Exercised | - | -225,789 | 4.87 | $ | 403,038 | |||||||||||
Forfeited | 47,400 | -67,964 | 5.53 | |||||||||||||
Balance at March 31, 2012 | 4,361,464 | 5,626,148 | 4.46 | |||||||||||||
Options reserved | 1,380,897 | - | - | |||||||||||||
Granted | -914,963 | 914,963 | 5.04 | |||||||||||||
Exercised | - | -123,732 | 3.02 | 351,120 | ||||||||||||
Forfeited | 40,060 | -81,060 | 4.74 | |||||||||||||
Balance at March 31, 2013 | 4,867,458 | 6,336,319 | 4.64 | |||||||||||||
Options reserved | 1,353,260 | - | - | |||||||||||||
Granted | -784,303 | 784,303 | 6.45 | |||||||||||||
Exercised | - | -816,957 | 3.10 | 2,629,982 | ||||||||||||
Forfeited | 149,085 | -159,685 | 6.04 | |||||||||||||
Balance at March 31, 2014 | 5,585,500 | 6,143,980 | $ | 5.13 | ||||||||||||
Options vested and exercisable | 3,911,466 | 4.68 | $ | 4.65 | $ | 8,987,352 | ||||||||||
Options vested and expected to vest | 6,082,908 | 5.96 | $ | 5.12 | $ | 11,151,549 | ||||||||||
Schedule of options outstanding by exercise price | ' | |||||||||||||||
Number of | Options Outstanding | Options Exercisable | ||||||||||||||
Shares | Weighted | Weighted Average | Weighted | |||||||||||||
Underlying | Average | Remaining | Number | Average | ||||||||||||
Options | Exercise | Contractual | Vested and | Exercise | ||||||||||||
Exercise Price | Outstanding | Price | Life (Years) | Exercisable | Price | |||||||||||
$ | 2.43 | - | 3.38 | 628,219 | $ | 3.02 | 4.55 | 628,219 | $ | 3.02 | ||||||
$ | 3.43 | - | 3.94 | 492,391 | $ | 3.55 | 5.03 | 492,391 | $ | 3.55 | ||||||
$ | 4 | 669,303 | $ | 4.00 | 5.17 | 669,303 | $ | 4.00 | ||||||||
$ | 4.17 | - | 4.5 | 633,245 | $ | 4.26 | 5.60 | 384,517 | $ | 4.32 | ||||||
$ | 4.81 | - | 4.92 | 508,635 | $ | 4.87 | 7.94 | 137,365 | $ | 4.88 | ||||||
$ | 5.5 | 801,433 | $ | 5.50 | 2.63 | 801,433 | $ | 5.50 | ||||||||
$ | 5.59 | - | 5.76 | 621,480 | $ | 5.70 | 7.30 | 222,171 | $ | 5.71 | ||||||
$ | 6 | - | 6.54 | 799,858 | $ | 6.32 | 7.16 | 355,131 | $ | 6.18 | ||||||
$ | 6.61 | - | 6.86 | 668,103 | $ | 6.77 | 8.89 | 62,452 | $ | 6.82 | ||||||
$ | 7 | - | 9.2 | 321,313 | $ | 7.78 | 6.52 | 158,484 | $ | 7.87 | ||||||
6,143,980 | $ | 5.13 | 5.99 | 3,911,466 | ||||||||||||
Summary of stock-based compensation expense by line item | ' | |||||||||||||||
Year Ending March 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | ||||||||||||||||
Cost of revenues | $ | 386 | $ | 338 | $ | 321 | ||||||||||
Research and development | 970 | 1,140 | 1,061 | |||||||||||||
Selling, general and administrative | 872 | 800 | 714 | |||||||||||||
Total | $ | 2,228 | $ | 2,278 | $ | 2,096 | ||||||||||
Schedule of weighted average assumptions | ' | |||||||||||||||
Year Ended March 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(In thousands) | ||||||||||||||||
Stock Option Plans: | ||||||||||||||||
Risk-free interest rate | 0.91 | - | 1.61 | % | 0.69 | - | 0.82 | % | 0.90 | - | 1.89 | % | ||||
Expected life (in years) | 5.00 | 5.00 | 5.00 | |||||||||||||
Volatility | 45.5 | - | 48.4 | % | 48.8 | - | 52.9 | % | 50.8 | - | 53.8 | % | ||||
Dividend yield | - | % | - | % | - | % | ||||||||||
Employee Stock Purchase Plan: | ||||||||||||||||
Risk-free interest rate | 0.07 | - | 0.09 | % | 0.14 | - | 0.15 | % | 0.05 | - | 0.07 | % | ||||
Expected life (in years) | 0.50 | 0.50 | 0.50 | |||||||||||||
Volatility | 30.4 | - | 32.8 | % | 23.4 | - | 47.3 | % | 43.9 | - | 52.1 | % | ||||
Dividend yield | - | % | - | % | - | % | ||||||||||
9_SEGMENT_AND_GEOGRAPHIC_INFOR1
9. SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Segment And Geographic Information | ' | |||||||||
Net revenues by geographic area | ' | |||||||||
Year Ended March 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
(In thousands) | ||||||||||
United States | $ | 18,021 | $ | 20,588 | $ | 19,434 | ||||
China | 13,294 | 14,000 | 17,974 | |||||||
Malaysia | 9,827 | 16,352 | 27,048 | |||||||
Singapore | 5,979 | 7,141 | 10,971 | |||||||
Rest of the world | 11,458 | 7,933 | 7,113 | |||||||
$ | 58,579 | $ | 66,014 | $ | 82,540 | |||||
Long-lived assets by geographic area | ' | |||||||||
March 31, | ||||||||||
2014 | 2013 | |||||||||
(In thousands) | ||||||||||
United States | $ | 7,332 | $ | 8,214 | ||||||
Taiwan | 2,351 | 2,560 | ||||||||
$ | 9,683 | $ | 10,774 | |||||||
11QUARTERLY_FINANCIAL_DATA_Tab
11-QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||
Schedule of quarterly financial data | ' | ||||||||||||
Three Months Ended | |||||||||||||
June 30, | September 30, | December 31, | March 31, | ||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||
(In thousands, except per share amounts) | |||||||||||||
Consolidated Statement of Operations Data: | |||||||||||||
Net revenues | $ | 16,412 | $ | 15,542 | $ | 13,778 | $ | 12,847 | |||||
Gross profit | $ | 7,466 | $ | 7,402 | $ | 5,368 | $ | 5,874 | |||||
Net income (loss) | $ | -441 | $ | 386 | $ | -734 | $ | -5,400 | |||||
Net income (loss) per common share—Basic | $ | -0.02 | $ | 0.01 | $ | -0.03 | $ | -0.2 | |||||
Net income (loss) per common share—Diluted | $ | -0.02 | $ | 0.01 | $ | -0.03 | $ | -0.2 | |||||
Three Months Ended | |||||||||||||
June 30, | September 30, | December 31, | March 31, | ||||||||||
2012 | 2012 | 2012 | 2013 | ||||||||||
(In thousands, except per share amounts) | |||||||||||||
Consolidated Statement of Operations Data: | |||||||||||||
Net revenues | $ | 16,783 | $ | 16,010 | $ | 17,514 | $ | 15,707 | |||||
Gross profit | $ | 6,765 | $ | 7,204 | $ | 7,344 | $ | 7,275 | |||||
Net income | $ | 920 | $ | 1,132 | $ | 844 | $ | 950 | |||||
Net income per common share—Basic | $ | 0.03 | $ | 0.04 | $ | 0.03 | $ | 0.04 | |||||
Net income per common share—Diluted | $ | 0.03 | $ | 0.04 | $ | 0.03 | $ | 0.03 | |||||
1_THE_COMPANY_AND_SUMMARY_OF_S3
1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
customer | customer | customer | |
Basis of consolidation and risks and uncertainties | ' | ' | ' |
Number of subsidiaries | 3 | ' | ' |
Number of principal operations near fault lines | 2 | ' | ' |
Net revenues | Customer Concentration Risk | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Number of customers | 4 | 4 | 4 |
Net revenues | Customer Concentration Risk | Top Ten Customers | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Number of customers | 10 | 10 | 10 |
Percentage attributable to customers | 92.00% | 91.00% | 92.00% |
Net revenues | Customer Concentration Risk | Customer One | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Percentage attributable to customers | 30.00% | 27.00% | 20.00% |
Net revenues | Customer Concentration Risk | Customer Two | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Percentage attributable to customers | 14.00% | 14.00% | 20.00% |
Net revenues | Customer Concentration Risk | Customer Three | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Percentage attributable to customers | 12.00% | 11.00% | 11.00% |
Net revenues | Customer Concentration Risk | Customer Four | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Percentage attributable to customers | 10.00% | 10.00% | 11.00% |
Accounts receivable member | Customer Concentration Risk | Customer Two | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Percentage attributable to customers | ' | 16.00% | ' |
Accounts receivable member | Credit Concentration Risk | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Number of customers | 4 | 6 | 5 |
Accounts receivable member | Credit Concentration Risk | Customer One | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Percentage attributable to customers | 20.00% | 20.00% | 19.00% |
Accounts receivable member | Credit Concentration Risk | Customer Two | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Percentage attributable to customers | 16.00% | 16.00% | 16.00% |
Accounts receivable member | Credit Concentration Risk | Customer Three | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Percentage attributable to customers | 14.00% | 15.00% | 12.00% |
Accounts receivable member | Credit Concentration Risk | Customer Four | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Percentage attributable to customers | 12.00% | 10.00% | 11.00% |
Accounts receivable member | Credit Concentration Risk | Customer Five | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Percentage attributable to customers | ' | 10.00% | 10.00% |
Accounts receivable member | Credit Concentration Risk | Customer Six | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Percentage attributable to customers | ' | 10.00% | ' |
1_THE_COMPANY_AND_SUMMARY_OF_S4
1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
segment | |||
Company And Summary Of Significant Accounting Policies Details Narrative | ' | ' | ' |
Minimum months to determine excess inventory | '12 months | ' | ' |
Provision for excess and obsolete inventories | $2,079,000 | $777,000 | $696,000 |
Unrecognized compensation costs | 3,700,000 | ' | ' |
Valuation allowance | 3,695,000 | ' | ' |
Advertising expense | 7,000 | 10,000 | 8,000 |
Operating segments | 1 | ' | ' |
Comprehensive income | ($6,201,000) | $3,803,000 | $6,761,000 |
Accounting for stock-based compensation | ' | ' | ' |
Expected life | '5 years | ' | ' |
Dividend yield (as a percent) | 0.00% | ' | ' |
Minimum | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Useful life, intangible assets | '5 years | ' | ' |
Maximum | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Useful life, intangible assets | '9 years | ' | ' |
Software | Minimum | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Useful life, property and equipment | '3 years | ' | ' |
Software | Maximum | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Useful life, property and equipment | '5 years | ' | ' |
Computer and other equipment | Minimum | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Useful life, property and equipment | '5 years | ' | ' |
Computer and other equipment | Maximum | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Useful life, property and equipment | '10 years | ' | ' |
Building and building improvements | Minimum | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Useful life, property and equipment | '10 years | ' | ' |
Building and building improvements | Maximum | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Useful life, property and equipment | '25 years | ' | ' |
Furniture and fixtures | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Useful life, property and equipment | '7 years | ' | ' |
2_NET_INCOME_PER_COMMON_SHARE_1
2. NET INCOME PER COMMON SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (loss) | ($5,400) | ($734) | $386 | ($441) | $950 | $844 | $1,132 | $920 | ($6,189) | $3,846 | $6,756 |
Weighted average shares-Basic | ' | ' | ' | ' | ' | ' | ' | ' | 27,505 | 27,124 | 28,497 |
Dilutive effect of employee stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 940 | 998 |
Dilutive effect of employee stock purchase plan options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 1 |
Weighted average shares-Dilutive | ' | ' | ' | ' | ' | ' | ' | ' | 27,505 | 28,077 | 29,496 |
Net income (loss) per common share - Basic | ($0.20) | ($0.03) | $0.01 | ($0.02) | $0.04 | $0.03 | $0.04 | $0.03 | ($0.23) | $0.14 | $0.24 |
Net income (loss) per common share - Diluted | ($0.20) | ($0.03) | $0.01 | ($0.02) | $0.03 | $0.03 | $0.04 | $0.03 | ($0.23) | $0.14 | $0.23 |
2_NET_INCOME_PER_COMMON_SHARE_2
2. NET INCOME PER COMMON SHARE (Details 2) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Net income per share: | ' | ' | ' |
Antidilutive shares excluded from computation of EPS | 2,911 | 3,105 | 1,388 |
3_BALANCE_SHEET_DETAIL_Details
3. BALANCE SHEET DETAIL (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories: | ' | ' |
Work-in-progress | $2,011 | $4,236 |
Finished goods | 5,588 | 8,772 |
Inventory at distributors | 586 | 801 |
Total Inventory | $8,185 | $13,809 |
3_BALANCE_SHEET_DETAIL_Details1
3. BALANCE SHEET DETAIL (Details 2) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts receivable, net: | ' | ' |
Accounts receivable | $8,349 | $10,357 |
Less: Allowances for sales returns, doubtful accounts and other | -111 | -116 |
Total accounts receivable, net | $8,238 | $10,241 |
3_BALANCE_SHEET_DETAIL_Details2
3. BALANCE SHEET DETAIL (Details 3) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaid expenses and other current assets: | ' | ' |
Prepaid tooling and masks | $833 | $1,230 |
Prepaid income taxes | 2,598 | 2,037 |
Other receivables | 596 | 557 |
Other prepaid expenses | 1,125 | 1,121 |
Total prepaid expenses and other current assets | $5,152 | $4,945 |
3BALANCE_SHEET_DETAIL_Property
3.BALANCE SHEET DETAIL - Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Property and equipment, net: | ' | ' | ' |
Property and equipment, gross | $28,827,000 | $28,118,000 | ' |
Less: Accumulated depreciation and amortization | -19,144,000 | -17,344,000 | ' |
Property and equipment, net | 9,683,000 | 10,774,000 | ' |
Depreciation and amortization | 1,801,000 | 2,375,000 | 2,611,000 |
Computer and other equipment | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, gross | 16,990,000 | 16,344,000 | ' |
Software | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, gross | 4,780,000 | 4,690,000 | ' |
Land | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, gross | 3,900,000 | 3,900,000 | ' |
Building and building improvements | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, gross | 2,256,000 | 2,256,000 | ' |
Furniture and fixtures | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, gross | 110,000 | 110,000 | ' |
Leasehold improvements | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, gross | 791,000 | 767,000 | ' |
Construction in progress | ' | ' | ' |
Property and equipment, net: | ' | ' | ' |
Property and equipment, gross | ' | $51,000 | ' |
3_BALANCE_SHEET_DETAIL_Details3
3. BALANCE SHEET DETAIL (Details 5) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other assets: | ' | ' |
Non-current deferred income taxes | $24 | $1,272 |
Intangibles, net | 564 | 744 |
Deposits | 80 | 82 |
Total Other Assets | $668 | $2,098 |
3_BALANCE_SHEET_DETAIL_Details4
3. BALANCE SHEET DETAIL (Details 6) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Gross Carrying Amount | $1,390,000 | ' |
Accumulated Amortization | -826,000 | ' |
Net Carrying Amount | 564,000 | 744,000 |
Amortization of intangible assets | 180,000 | ' |
Product designs | ' | ' |
Gross Carrying Amount | 590,000 | ' |
Accumulated Amortization | -386,000 | ' |
Net Carrying Amount | 204,000 | ' |
Patents | ' | ' |
Gross Carrying Amount | 720,000 | ' |
Accumulated Amortization | -367,000 | ' |
Net Carrying Amount | 353,000 | ' |
Software. | ' | ' |
Gross Carrying Amount | 80,000 | ' |
Accumulated Amortization | -73,000 | ' |
Net Carrying Amount | $7,000 | ' |
3_BALANCE_SHEET_DETAIL_Details5
3. BALANCE SHEET DETAIL (Details 7) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Year Ending March 31, | ' | ' |
2015 | $171 | ' |
2016 | 164 | ' |
2017 | 115 | ' |
2018 | 80 | ' |
2019 | 34 | ' |
Total | $564 | $744 |
3_BALANCE_SHEET_DETAIL_Details6
3. BALANCE SHEET DETAIL (Details 8) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued expenses and other liabilities: | ' | ' |
Accrued compensation | $2,330 | $2,181 |
Accrued professional fees | 824 | 560 |
Accrued commissions | 307 | 353 |
Accrued royalties | 23 | 28 |
Accrued equipment and software costs | ' | 51 |
Other accrued expenses | 960 | 805 |
Total Accrued Expenses and Other Liabilities | $4,444 | $3,978 |
4INCOME_TAXES_Details
4-INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Income (loss) before income taxes: | ' | ' | ' |
U.S. | ($6,388) | $137 | ($438) |
Foreign | 912 | 3,747 | 7,619 |
Income (loss) before income taxes | -5,476 | 3,884 | 7,181 |
Current income tax expense (benefit): | ' | ' | ' |
U.S. federal | -1,782 | 914 | -108 |
Foreign | 113 | 26 | -123 |
State | -82 | -134 | 91 |
Current Income Tax Expense (Benefit) | -1,751 | 806 | -140 |
Deferred income tax expense (benefit): | ' | ' | ' |
U.S. federal | 1,892 | -529 | 643 |
State | 572 | -239 | -78 |
Deferred Income Tax Expense (Benefit) | 2,464 | -768 | 565 |
Provision for income taxes | $713 | $38 | $425 |
4INCOME_TAXES_Details_2
4-INCOME TAXES (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Income Taxes | ' | ' | ' |
U.S. Federal taxes at statutory rate | ($1,862) | $1,321 | $2,440 |
State taxes, net of federal benefit | 490 | -276 | -48 |
Stock-based compensation | 392 | 601 | 502 |
Tax credits | -338 | -454 | -238 |
Foreign tax rate differential | -650 | -1,099 | -2,167 |
Tax exempt interest | -29 | -30 | -48 |
Other | -72 | -25 | -16 |
Income tax expense (benefit) before change in valuation allowance | -2,069 | 38 | 425 |
Valuation allowance | 2,782 | ' | ' |
Provision for income taxes | $713 | $38 | $425 |
4INCOME_TAXES_Details_3
4-INCOME TAXES (Details 3) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Deferred tax assets: | ' | ' |
Deferred revenue | $202,000 | $268,000 |
Tax credits | 1,154,000 | 397,000 |
Net operating losses | 141,000 | ' |
Stock-based compensation | 1,247,000 | 1,126,000 |
Other reserves and accruals | 1,020,000 | 965,000 |
Total deferred tax assets | 3,764,000 | 2,756,000 |
Deferred tax liabilities: | ' | ' |
Property and equipment | -58,000 | -245,000 |
Unrecognized gains | -11,000 | -15,000 |
Total deferred tax liabilities | -69,000 | -260,000 |
Gross deferred tax assets | 3,695,000 | 2,496,000 |
Valuation allowance | -3,695,000 | ' |
Net deferred tax assets | ' | 2,496,000 |
Undistributed earnings on which deferred tax liability was not recognized | 38,200,000 | ' |
Deferred Tax Liabilities, Undistributed Foreign Earnings | $0 | ' |
4INCOME_TAXES_Details_4
4-INCOME TAXES (Details 4) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Income Taxes | ' | ' | ' |
Unrecognized tax benefits, current | $0 | $0 | ' |
Unrecognized tax benefits, noncurrent | 1,462,000 | 2,803,000 | ' |
Deferred tax assets unrecognized tax benefit | 1,042,000 | ' | ' |
Unrecognized tax benefits, beginning of period | 2,760,000 | 3,109,000 | 2,312,000 |
Additions based on tax positions related to current year | 250,000 | 429,000 | 649,000 |
Additions based on tax positions related to prior years | 13,000 | 85,000 | 252,000 |
Settlements during the current year | ' | -231,000 | ' |
Lapses during the current year applicable to statutes of limitations | -637,000 | -632,000 | -104,000 |
Unrecognized tax benefits, end of period | 2,386,000 | 2,760,000 | 3,109,000 |
Possible reduction in uncertain tax benefits | $775,000 | ' | ' |
5_FINANCIAL_INSTRUMENTS_Detail
5. FINANCIAL INSTRUMENTS (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Fair value measurements | ' | ' |
Short-term investments | $39,412,000 | $26,139,000 |
Long-term investment | 28,819,000 | 35,495,000 |
Money market funds | ' | ' |
Fair value measurements | ' | ' |
Money market funds included in cash and cash equivalents | 3,900,000 | 10,400,000 |
Level 2 | Available-for-sale securities | ' | ' |
Fair value measurements | ' | ' |
Short-term investments | 39,400,000 | ' |
Long-term investment | 28,800,000 | ' |
Recurring | Level 1 | Money market funds | ' | ' |
Fair value measurements | ' | ' |
Money market funds included in cash and cash equivalents | 3,900,000 | ' |
Recurring | Level 3 | ' | ' |
Fair value measurements | ' | ' |
Assets | $0 | ' |
5_FINANCIAL_INSTRUMENTS_Detail1
5. FINANCIAL INSTRUMENTS (Details 2) (USD $) | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Available-for-sale investments | ' | ' |
Fair Value | $68,231,000 | ' |
Other information | ' | ' |
Maximum maturity period of investment portfolio | '3 years | ' |
Deferred tax liability related to unrecognized gains and losses on short-term and long-term investments | 11,000 | 14,000 |
Short-term investments | ' | ' |
Available-for-sale investments | ' | ' |
Cost | 39,386,000 | 26,096,000 |
Gross Unrealized Gains | 26,000 | 43,000 |
Fair Value | 39,412,000 | 26,139,000 |
Short-term investments | State and municipal obligations | ' | ' |
Available-for-sale investments | ' | ' |
Cost | 8,336,000 | 10,564,000 |
Gross Unrealized Gains | 4,000 | 17,000 |
Fair Value | 8,340,000 | 10,581,000 |
Short-term investments | Corporate notes | ' | ' |
Available-for-sale investments | ' | ' |
Cost | 5,023,000 | 6,052,000 |
Gross Unrealized Gains | 12,000 | 14,000 |
Fair Value | 5,035,000 | 6,066,000 |
Short-term investments | Agency bonds | ' | ' |
Available-for-sale investments | ' | ' |
Cost | 3,523,000 | ' |
Gross Unrealized Gains | 2,000 | ' |
Fair Value | 3,525,000 | ' |
Short-term investments | Certificates of deposits | ' | ' |
Available-for-sale investments | ' | ' |
Cost | 14,997,000 | 9,480,000 |
Gross Unrealized Gains | 6,000 | 12,000 |
Fair Value | 15,003,000 | 9,492,000 |
Short-term investments | Other | ' | ' |
Available-for-sale investments | ' | ' |
Cost | 7,507,000 | ' |
Gross Unrealized Gains | 2,000 | ' |
Fair Value | 7,509,000 | ' |
Long-term investment | ' | ' |
Available-for-sale investments | ' | ' |
Cost | 28,800,000 | 35,478,000 |
Gross Unrealized Gains | 26,000 | 35,000 |
Gross Unrealized Losses | -7,000 | -18,000 |
Fair Value | 28,819,000 | 35,495,000 |
Long-term investment | State and municipal obligations | ' | ' |
Available-for-sale investments | ' | ' |
Cost | 8,227,000 | 11,992,000 |
Gross Unrealized Gains | 10,000 | 3,000 |
Fair Value | 8,237,000 | 11,995,000 |
Long-term investment | Corporate notes | ' | ' |
Available-for-sale investments | ' | ' |
Cost | 6,392,000 | 8,436,000 |
Gross Unrealized Gains | 16,000 | 14,000 |
Fair Value | 6,408,000 | 8,450,000 |
Long-term investment | Agency bonds | ' | ' |
Available-for-sale investments | ' | ' |
Cost | 2,011,000 | ' |
Gross Unrealized Losses | -5,000 | ' |
Fair Value | 2,006,000 | ' |
Long-term investment | Certificates of deposits | ' | ' |
Available-for-sale investments | ' | ' |
Cost | 10,500,000 | 9,008,000 |
Gross Unrealized Gains | ' | 18,000 |
Gross Unrealized Losses | -2,000 | ' |
Fair Value | 10,498,000 | 9,026,000 |
Long-term investment | Other | ' | ' |
Available-for-sale investments | ' | ' |
Cost | 1,670,000 | 6,042,000 |
Gross Unrealized Losses | ' | -18,000 |
Fair Value | $1,670,000 | $6,024,000 |
5_FINANCIAL_INSTRUMENTS_Detail2
5. FINANCIAL INSTRUMENTS (Details 3) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Financial Instruments. | ' |
Maturing within one year, Cost | $39,386 |
Maturing in one to three years, Cost | 28,800 |
Total | 68,186 |
Maturing within one year, Fair Value | 39,412 |
Maturing in one to three years, Fair Value | 28,819 |
Fair Value | $68,231 |
6COMMITMENTS_AND_CONTINGENCIES1
6-COMMITMENTS AND CONTINGENCIES - Operating Leases (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Operating leases | ' | ' | ' |
Rent expense | $368,000 | $373,000 | $371,000 |
Future minimum lease payments | ' | ' | ' |
2015 | 155,000 | ' | ' |
2016 | 65,000 | ' | ' |
2017 | 33,000 | ' | ' |
Total | $253,000 | ' | ' |
Minimum | ' | ' | ' |
Operating leases | ' | ' | ' |
Remaining lease term, minimum | 'P1Y | ' | ' |
6COMMITMENTS_AND_CONTINGENCIES2
6-COMMITMENTS AND CONTINGENCIES - Royalties and Product Warranties (Details) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Royalties | ' | ' | ' |
Royalty expense | $59,000 | $65,000 | $61,000 |
Product warranties | ' | ' | ' |
Warranty period | '3 years | ' | ' |
6COMMITMENTS_AND_CONTINGENCIES3
6-COMMITMENTS AND CONTINGENCIES - Legal proceedings (Details) | 1 Months Ended | 0 Months Ended | |||
Mar. 31, 2011 | Jun. 07, 2013 | Jun. 10, 2011 | Aug. 07, 2013 | 1-May-13 | |
Cypress Semiconductor Litigation | Cypress Semiconductor International Trade Commission | Cypress Semiconductor International Trade Commission | Cypress Semiconductor Northern District Litigation | Cypress Semiconductor Northern District Litigation | |
patent | claim | customer | patent | patent | |
patent | |||||
item | |||||
Legal proceedings | ' | ' | ' | ' | ' |
Number of patents infringed | 5 | ' | 3 | ' | ' |
Number of additional patent infringement complaints | ' | ' | 1 | ' | ' |
Number of distributors | ' | ' | 3 | ' | ' |
Number of customers who infringed patents | ' | ' | 11 | ' | ' |
Number of terminated or dismissed patent claims | ' | 1 | ' | 3 | ' |
Number of additional patents infringed | ' | ' | ' | ' | 5 |
Number of patent claims transferred | ' | ' | ' | 2 | ' |
7COMMON_STOCK_Details
7-COMMON STOCK (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
Common Stock. | ' | ' |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, par value | $0.00 | $0.00 |
7COMMON_STOCK_Repurchases_Deta
7-COMMON STOCK - Repurchases (Details) (Common shares, USD $) | 7 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 |
Common shares | ' |
Share repurchase program | ' |
Amount of common stock authorized to be repurchased | $10 |
Aggregate shares repurchased to date | 4,066,757 |
Average price for repurchased common stock (in dollars per share) | $4.18 |
Repurchase of common stock to date | $17 |
8_STOCK_BASED_COMPENSATION_Det
8. STOCK- BASED COMPENSATION (Details) (USD $) | 1 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2007 | Dec. 31, 2006 | Mar. 31, 2008 | Dec. 31, 2006 | Dec. 31, 2006 | Dec. 31, 2006 | Dec. 31, 2006 | Mar. 31, 2014 | Mar. 31, 2007 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2007 | Mar. 31, 2014 | |
2000 Stock Option Plan | 2000 Stock Option Plan | 2000 Stock Option Plan | 2000 Stock Option Plan | 2000 Stock Option Plan | 2000 Stock Option Plan | 2000 Stock Option Plan | 2007 Equity Incentive Plan | 2007 Equity Incentive Plan | 2007 Equity Incentive Plan | 2007 Equity Incentive Plan | 2007 Equity Incentive Plan | 2007 Equity Incentive Plan | 2007 Employee Stock Purchase Plan | 2007 Employee Stock Purchase Plan | 2007 Employee Stock Purchase Plan | |
Shareholder Greater Than 10 Percent Voting Power Of All Classes Of Stock | Shareholder Greater Than 10 Percent Voting Power Of All Classes Of Stock | Incentive Stock Option | Nonstatutory Stock Options | Non Officer Employee | Officer | Director | Incentive Stock Option | item | Maximum | |||||||
Minimum | Minimum | Minimum | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares authorized | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum shares authorized | ' | ' | 3,500,000 | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | 3,000,000 | ' | 500,000 | ' |
Option expiration period | ' | '10 years | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold percentage of voting power of all classes of stock by which stock option terms are based | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price percentage of fair value of shares | ' | ' | ' | ' | 110.00% | 100.00% | 85.00% | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' |
Maximum annual plan shares authorized reserve increase percentage | ' | ' | ' | ' | ' | ' | ' | 0.05 | ' | ' | ' | ' | 0.05 | 0.01 | ' | ' |
Maximum annual plan shares authorized reserve share increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 250,000 | ' | ' |
Maximum shares subject to stock options and stock appreciation rights granted per employee per fiscal year | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum shares subject to stock restricted stock and restricted stock unit awards granted per employee per fiscal year | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum shares subject to performance share awards and other stock-based awards granted per employee per fiscal year | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount subject to performance unit awards and other cash-based awards granted per employee per fiscal year | ' | ' | ' | ' | ' | ' | ' | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Previously authorized shares cancelled (in shares) | 535,597 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' |
Maximum shares that can be awarded in any fiscal year to nonemployee directors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | ' | ' | ' | ' |
Additional shares that may be awarded to nonemployee directors in the first fiscal year on the board | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' |
Additional shares that may be awarded to nonemployee directors in any fiscal year serving as chairman of the board | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | ' | ' | ' | ' |
Additional shares that may be awarded to nonemployee directors in any fiscal year for each committee they are serving in a capacity other than as the chairman of the committee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' |
Additional shares that may be awarded to nonemployee directors in any fiscal year for each committee they are serving as the chairman of the committee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | ' | ' | ' | ' |
Minimum hours to work per week to qualify for the Employee Stock Purchase Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' |
Minimum number of months per year needed to work to qualify for the Employee Stock Purchase Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 months | ' | ' |
Maximum percentage stock ownership to qualify for the Employee Stock Purchase Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' |
Maximum annual purchase rights per employee per year to enable granting of additional rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25,000 | ' | ' |
Offering period length | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | '27 months |
Maximum share purchase per employee per offering period number of shares multiplier | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' |
Maximum share purchase per employee per offering period value multiplier | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,083.33 | ' | ' |
8_STOCK_BASED_COMPENSATION_Det1
8. STOCK- BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Stock-Based Compensation | ' | ' | ' |
Shares available for grant, Beginning | 4,867,458 | 4,361,464 | 3,736,035 |
Options reserved (in shares) | 1,353,260 | 1,380,897 | 1,432,452 |
Granted (in shares) | -784,303 | -914,963 | -854,423 |
Forfeited (in shares) | 149,085 | 40,060 | 47,400 |
Shares available for grant, Ending | 5,585,500 | 4,867,458 | 4,361,464 |
Number of Shares Underlying Options Outstanding | ' | ' | ' |
Balance at the beginning of the period (in shares) | 6,336,319 | 5,626,148 | 5,065,478 |
Granted (in shares) | 784,303 | 914,963 | 854,423 |
Exercised (in shares) | -816,957 | -123,732 | -225,789 |
Forfeited (in shares) | -159,685 | -81,060 | -67,964 |
Balance at the end of the period (in shares) | 6,143,980 | 6,336,319 | 5,626,148 |
Options vested and exercisable (in shares) | 3,911,466 | ' | ' |
Options vested and expected to vest (in shares) | 6,082,908 | ' | ' |
Weighted Average Remaining Contractual Life | ' | ' | ' |
Options vested and exercisable (in dollars per share) | '4 years 8 months 5 days | ' | ' |
Options vested and expected to vest (in dollars per share) | '5 years 11 months 16 days | ' | ' |
Weighted Average Exercise Price | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | $4.64 | $4.46 | $4.46 |
Granted (in dollars per share) | $6.45 | $5.04 | $5.81 |
Exercised (in dollars per share) | $3.10 | $3.02 | $4.87 |
Forfeited (in dollars per share) | $6.04 | $4.74 | $5.53 |
Balance at the end of the period (in dollars per share) | $5.13 | $4.64 | $4.46 |
Options vested and exercisable (in dollars per share) | $4.65 | ' | ' |
Options vested and expected to vest (in dollars per share) | $5.12 | ' | ' |
Intrinsic Value | ' | ' | ' |
Exercised (in dollars) | $2,629,982 | $351,120 | $403,038 |
Options vested and exercisable (in dollars) | 8,987,352 | ' | ' |
Options vested and expected to vest (in dollars) | $11,151,549 | ' | ' |
8_STOCK_BASED_COMPENSATION_Det2
8. STOCK- BASED COMPENSATION (Details 3) (USD $) | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | |
Options outstanding by exercise price | ' | ' | ' | ' |
Exercise Price (in dollars per share) | $5.13 | $4.64 | $4.46 | $4.46 |
Number of Shares Underlying Options Outstanding (in shares) | 6,143,980 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $5.13 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life | '5 years 11 months 27 days | ' | ' | ' |
Options Exercisable, Number Vested and Exercisable (in shares) | 3,911,466 | ' | ' | ' |
$2.43 - $3.38 | ' | ' | ' | ' |
Options outstanding by exercise price | ' | ' | ' | ' |
Exercise Price, low end of range (in dollars per share) | $2.43 | ' | ' | ' |
Exercise Price, high end of range (in dollars per share) | $3.38 | ' | ' | ' |
Number of Shares Underlying Options Outstanding (in shares) | 628,219 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $3.02 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life | '4 years 6 months 18 days | ' | ' | ' |
Options Exercisable, Number Vested and Exercisable (in shares) | 628,219 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $3.02 | ' | ' | ' |
$3.43 - $3.94 | ' | ' | ' | ' |
Options outstanding by exercise price | ' | ' | ' | ' |
Exercise Price, low end of range (in dollars per share) | $3.43 | ' | ' | ' |
Exercise Price, high end of range (in dollars per share) | $3.94 | ' | ' | ' |
Number of Shares Underlying Options Outstanding (in shares) | 492,391 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $3.55 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life | '5 years 11 days | ' | ' | ' |
Options Exercisable, Number Vested and Exercisable (in shares) | 492,391 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $3.55 | ' | ' | ' |
$4.00 | ' | ' | ' | ' |
Options outstanding by exercise price | ' | ' | ' | ' |
Exercise Price (in dollars per share) | $4 | ' | ' | ' |
Number of Shares Underlying Options Outstanding (in shares) | 669,303 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $4 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life | '5 years 2 months 1 day | ' | ' | ' |
Options Exercisable, Number Vested and Exercisable (in shares) | 669,303 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $4 | ' | ' | ' |
$4.17 - $4.50 | ' | ' | ' | ' |
Options outstanding by exercise price | ' | ' | ' | ' |
Exercise Price, low end of range (in dollars per share) | $4.17 | ' | ' | ' |
Exercise Price, high end of range (in dollars per share) | $4.50 | ' | ' | ' |
Number of Shares Underlying Options Outstanding (in shares) | 633,245 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $4.26 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life | '5 years 7 months 6 days | ' | ' | ' |
Options Exercisable, Number Vested and Exercisable (in shares) | 384,517 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $4.32 | ' | ' | ' |
$4.81 - $4.92 | ' | ' | ' | ' |
Options outstanding by exercise price | ' | ' | ' | ' |
Exercise Price, low end of range (in dollars per share) | $4.81 | ' | ' | ' |
Exercise Price, high end of range (in dollars per share) | $4.92 | ' | ' | ' |
Number of Shares Underlying Options Outstanding (in shares) | 508,635 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $4.87 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life | '7 years 11 months 9 days | ' | ' | ' |
Options Exercisable, Number Vested and Exercisable (in shares) | 137,365 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $4.88 | ' | ' | ' |
$5.50 | ' | ' | ' | ' |
Options outstanding by exercise price | ' | ' | ' | ' |
Exercise Price (in dollars per share) | $5.50 | ' | ' | ' |
Number of Shares Underlying Options Outstanding (in shares) | 801,433 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $5.50 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life | '2 years 7 months 17 days | ' | ' | ' |
Options Exercisable, Number Vested and Exercisable (in shares) | 801,433 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $5.50 | ' | ' | ' |
$5.59 - $5.76 | ' | ' | ' | ' |
Options outstanding by exercise price | ' | ' | ' | ' |
Exercise Price, low end of range (in dollars per share) | $5.59 | ' | ' | ' |
Exercise Price, high end of range (in dollars per share) | $5.76 | ' | ' | ' |
Number of Shares Underlying Options Outstanding (in shares) | 621,480 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $5.70 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life | '7 years 3 months 18 days | ' | ' | ' |
Options Exercisable, Number Vested and Exercisable (in shares) | 222,171 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $5.71 | ' | ' | ' |
$6.00 - $6.54 | ' | ' | ' | ' |
Options outstanding by exercise price | ' | ' | ' | ' |
Exercise Price, low end of range (in dollars per share) | $6 | ' | ' | ' |
Exercise Price, high end of range (in dollars per share) | $6.54 | ' | ' | ' |
Number of Shares Underlying Options Outstanding (in shares) | 799,858 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $6.32 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life | '7 years 1 month 28 days | ' | ' | ' |
Options Exercisable, Number Vested and Exercisable (in shares) | 355,131 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $6.18 | ' | ' | ' |
$6.61 - $6.86 | ' | ' | ' | ' |
Options outstanding by exercise price | ' | ' | ' | ' |
Exercise Price, low end of range (in dollars per share) | $6.61 | ' | ' | ' |
Exercise Price, high end of range (in dollars per share) | $6.86 | ' | ' | ' |
Number of Shares Underlying Options Outstanding (in shares) | 668,103 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $6.77 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life | '8 years 10 months 21 days | ' | ' | ' |
Options Exercisable, Number Vested and Exercisable (in shares) | 62,452 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $6.82 | ' | ' | ' |
$7.00 - $9.20 | ' | ' | ' | ' |
Options outstanding by exercise price | ' | ' | ' | ' |
Exercise Price, low end of range (in dollars per share) | $7 | ' | ' | ' |
Exercise Price, high end of range (in dollars per share) | $9.20 | ' | ' | ' |
Number of Shares Underlying Options Outstanding (in shares) | 321,313 | ' | ' | ' |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $7.78 | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life | '6 years 6 months 7 days | ' | ' | ' |
Options Exercisable, Number Vested and Exercisable (in shares) | 158,484 | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $7.87 | ' | ' | ' |
8_STOCK_BASED_COMPENSATION_Det3
8. STOCK- BASED COMPENSATION (Details 4) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Stock-based compensation expense by line item | ' | ' | ' |
Stock-based compensation expense | $2,228,000 | $2,278,000 | $2,096,000 |
Other information | ' | ' | ' |
Income tax benefit recognized from allocation of share-based compensation expense | 0 | 221,000 | 210,000 |
Reversal of windfall tax benefits previously recognized | -33,000 | 92,000 | 75,000 |
Unrecognized compensation costs | 3,700,000 | ' | ' |
Weighted average period of recognition of unrecognized compensation costs | '2 years 11 days | ' | ' |
Cost of revenues | ' | ' | ' |
Stock-based compensation expense by line item | ' | ' | ' |
Stock-based compensation expense | 386,000 | 338,000 | 321,000 |
Research and Development Expense | ' | ' | ' |
Stock-based compensation expense by line item | ' | ' | ' |
Stock-based compensation expense | 970,000 | 1,140,000 | 1,061,000 |
Selling, general and administrative | ' | ' | ' |
Stock-based compensation expense by line item | ' | ' | ' |
Stock-based compensation expense | 872,000 | 800,000 | 714,000 |
2007 Employee Stock Purchase Plan | ' | ' | ' |
Stock-based compensation expense by line item | ' | ' | ' |
Stock-based compensation expense | $152,000 | $145,000 | $156,000 |
8_STOCK_BASED_COMPENSATION_Det4
8. STOCK- BASED COMPENSATION (Details 5) (USD $) | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | |
Stock-Based Compensation | ' | ' | ' |
Weighted average fair value per underlying share of options granted (in dollars per share) | $2.73 | $2.22 | $2.66 |
Stock-based compensation | ' | ' | ' |
Expected life | '5 years | ' | ' |
Dividend yield (as a percent) | 0.00% | ' | ' |
Employee Consultants And Directors Stock Options | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Risk-free interest rate, low end of range (as a percent) | 0.91% | 0.69% | 0.90% |
Risk-free interest rate, high end of range (as a percent) | 1.61% | 0.82% | 1.89% |
Expected life | '5 years | '5 years | '5 years |
Volatility, low end of range (as a percent) | 45.50% | 48.80% | 50.80% |
Volatility, high end of range (as a percent) | 48.40% | 52.90% | 53.80% |
Employee stock purchase plan | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Risk-free interest rate, low end of range (as a percent) | 0.07% | 0.14% | 0.05% |
Risk-free interest rate, high end of range (as a percent) | 0.09% | 0.15% | 0.07% |
Expected life | '6 months | '6 months | '6 months |
Volatility, low end of range (as a percent) | 30.40% | 23.40% | 43.90% |
Volatility, high end of range (as a percent) | 32.80% | 47.30% | 52.10% |
9_SEGMENT_AND_GEOGRAPHIC_INFOR2
9. SEGMENT AND GEOGRAPHIC INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
segment | |||||||||||
Segment And Geographic Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable business segments | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $12,847 | $13,778 | $15,542 | $16,412 | $15,707 | $17,514 | $16,010 | $16,783 | $58,579 | $66,014 | $82,540 |
Property, Plant, and Equipment, Net | 9,683 | ' | ' | ' | 10,774 | ' | ' | ' | 9,683 | 10,774 | ' |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 18,021 | 20,588 | 19,434 |
Property, Plant, and Equipment, Net | 7,332 | ' | ' | ' | 8,214 | ' | ' | ' | 7,332 | 8,214 | ' |
China | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 13,294 | 14,000 | 17,974 |
Malaysia | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 9,827 | 16,352 | 27,048 |
Singapore | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 5,979 | 7,141 | 10,971 |
Taiwan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant, and Equipment, Net | 2,351 | ' | ' | ' | 2,560 | ' | ' | ' | 2,351 | 2,560 | ' |
Rest of the world | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | ' | ' | ' | ' | ' | ' | ' | ' | $11,458 | $7,933 | $7,113 |
10EMPLOYEE_BENEFIT_PLAN_Detail
10-EMPLOYEE BENEFIT PLAN (Details) | 12 Months Ended |
Mar. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Maximum amount employee can contribute (as a percent) | 15.00% |
11QUARTERLY_FINANCIAL_DATA_Det
11-QUARTERLY FINANCIAL DATA (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Consolidated Statement of Operations Data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenues | $12,847 | $13,778 | $15,542 | $16,412 | $15,707 | $17,514 | $16,010 | $16,783 | $58,579 | $66,014 | $82,540 |
Gross profit | 5,874 | 5,368 | 7,402 | 7,466 | 7,275 | 7,344 | 7,204 | 6,765 | 26,110 | 28,588 | 36,649 |
Net Income (loss) | ($5,400) | ($734) | $386 | ($441) | $950 | $844 | $1,132 | $920 | ($6,189) | $3,846 | $6,756 |
Net income (loss) per common share - Basic | ($0.20) | ($0.03) | $0.01 | ($0.02) | $0.04 | $0.03 | $0.04 | $0.03 | ($0.23) | $0.14 | $0.24 |
Net income (loss) per common share - Diluted | ($0.20) | ($0.03) | $0.01 | ($0.02) | $0.03 | $0.03 | $0.04 | $0.03 | ($0.23) | $0.14 | $0.23 |