Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Dec. 31, 2014 | Jan. 31, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | GSI TECHNOLOGY INC | |
Entity Central Index Key | 1126741 | |
Document Type | 10-Q | |
Document Period End Date | 31-Dec-14 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -28 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 23,386,580 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2015 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS. | ||
Cash and cash equivalents | $40,853 | $41,520 |
Short-term investments | 24,978 | 39,412 |
Accounts receivable, net | 5,522 | 8,238 |
Inventories | 9,059 | 8,185 |
Prepaid expenses and other current assets | 3,377 | 5,152 |
Total current assets | 83,789 | 102,507 |
Property and equipment, net | 8,972 | 9,683 |
Long-term investments | 18,652 | 28,819 |
Other assets | 531 | 668 |
Total assets | 111,944 | 141,677 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 2,920 | 4,870 |
Accrued expenses and other liabilities | 4,610 | 4,444 |
Deferred revenue | 2,261 | 2,523 |
Total current liabilities | 9,791 | 11,837 |
Income taxes payable | 772 | 1,462 |
Total liabilities | 10,563 | 13,299 |
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: 23,657,906 and 27,561,482 shares, respectively | 24 | 28 |
Additional paid-in capital | 31,735 | 56,399 |
Accumulated other comprehensive income (loss) | -48 | 33 |
Retained earnings | 69,670 | 71,918 |
Total stockholders' equity | 101,381 | 128,378 |
Total liabilities and stockholders' equity | $111,944 | $141,677 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
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 | 23,657,906 | 27,561,482 |
Common stock, shares outstanding | 23,657,906 | 27,561,482 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Statement | ||||
Net revenues | $14,227 | $13,778 | $40,435 | $45,732 |
Cost of revenues | 7,577 | 8,410 | 21,785 | 25,496 |
Gross profit | 6,650 | 5,368 | 18,650 | 20,236 |
Operating expenses: | ||||
Research and development | 2,850 | 2,780 | 8,869 | 8,728 |
Selling, general and administrative | 4,454 | 4,490 | 12,945 | 13,710 |
Total operating expenses | 7,304 | 7,270 | 21,814 | 22,438 |
Loss from operations | -654 | -1,902 | -3,164 | -2,202 |
Interest income, net | 76 | 92 | 249 | 291 |
Other income (expense), net | 25 | -30 | 35 | -33 |
Loss before income taxes | -553 | -1,840 | -2,880 | -1,944 |
Benefit for income taxes | -701 | -1,106 | -632 | -1,155 |
Net income (loss) | $148 | ($734) | ($2,248) | ($789) |
Net income (loss) per share: | ||||
Basic | $0.01 | ($0.03) | ($0.09) | ($0.03) |
Diluted | $0.01 | ($0.03) | ($0.09) | ($0.03) |
Weighted average shares used in per share calculations: | ||||
Basic | 23,738 | 27,667 | 25,591 | 27,495 |
Diluted | 24,325 | 27,667 | 25,591 | 27,495 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Consolidated Statements Of Comprehensive Income (Loss) | ||||
Net income (loss) | $148 | ($734) | ($2,248) | ($789) |
Net unrealized gain (loss) on available-for-sale investments, net of tax | -46 | 15 | -81 | -23 |
Total comprehensive income (loss) | $102 | ($719) | ($2,329) | ($812) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows from operating activities: | ||
Net loss | ($2,248) | ($789) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Allowance for sales returns, doubtful accounts and other | -11 | -15 |
Provision for excess and obsolete inventories | 912 | 1,642 |
Depreciation and amortization | 1,294 | 1,486 |
Stock-based compensation. | 1,533 | 1,644 |
Deferred income taxes | -115 | |
Windfall tax benefits from stock options exercised | 0 | -280 |
Amortization of bond premium on investments | 478 | 640 |
Changes in assets and liabilities: | ||
Accounts receivable | 2,727 | 1,202 |
Inventory | -1,786 | 2,946 |
Prepaid expenses and other assets | 1,782 | 439 |
Accounts payable | -1,950 | -789 |
Accrued expenses and other liabilities | -524 | -582 |
Deferred revenue | -262 | -686 |
Net cash provided by operating activities | 1,945 | 6,743 |
Cash flows from investing activities: | ||
Purchase of investments | -10,712 | -29,927 |
Sales and maturities of short-term investments | 34,754 | 23,912 |
Purchases of property and equipment | -453 | -253 |
Net cash provided by (used in) investing activities | 23,589 | -6,268 |
Cash flows from financing activities: | ||
Repurchase of common stock | -27,120 | -2,536 |
Windfall tax benefits from stock options exercised | 280 | |
Proceeds from issuance of common stock under employee stock plans | 919 | 2,701 |
Net cash provided by (used in) financing activities | -26,201 | 445 |
Net increase (decrease) in cash and cash equivalents | -667 | 920 |
Cash and cash equivalents at beginning of the year | 41,520 | 41,120 |
Cash and cash equivalents at end of the period | 40,853 | 42,040 |
Supplemental cash flow information: | ||
Net cash paid (received) for income taxes | ($1,597) | $28 |
1_THE_COMPANY_AND_SUMMARY_OF_S
1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 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 |
Basis of presentation | |
The accompanying unaudited condensed consolidated financial statements of GSI Technology, Inc. and its subsidiaries (“GSI” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. These interim financial statements contain all adjustments (which consist of only normal, recurring adjustments) that are, in the opinion of management, necessary to state fairly the interim financial information included therein. The Company believes that the disclosures are adequate to make the information not misleading. However, these financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2014. | |
The consolidated results of operations for the three months and nine months ended December 31, 2014 are not necessarily indicative of the results to be expected for the entire fiscal year. | |
Significant accounting policies | |
The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2014. | |
Litigation and settlement costs | |
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. The litigation, regardless of its eventual outcome, will be costly and time consuming and, should the outcome be adverse to the Company, could result in the Company being required to pay significant monetary damages. If that occurs, our business, financial condition and results of operations could be materially and adversely affected. 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. | |
Recent accounting pronouncements | |
In August 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance related to the Company’s responsibility to evaluate whether there is substantial doubt about its ability to continue ongoing business operations and to provide relevant footnote disclosures. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. | |
In July 2013, the 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. Implementation of this guidance in the quarter ended June 30, 2014 did not have a material impact on the Company’s financial position or results of operations. | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." The new accounting standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The accounting standard is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early adoption is not permitted. The Company is currently evaluating the impact of this accounting standard on its consolidated financial statements. | |
2_NET_INCOME_LOSS_PER_COMMON_S
2. NET INCOME (LOSS) PER COMMON SHARE | 9 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Net income (loss) per share: | |||||||||||||
NOTE 2 - NET INCOME (LOSS) 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 (loss) per share. The following table sets forth the computation of basic and diluted net income (loss) per share: | |||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands, except per share amounts) | |||||||||||||
Net income (loss) | $ | 148 | $ | -734 | $ | -2,248 | $ | -789 | |||||
Denominators: | |||||||||||||
Weighted average shares—Basic | 23,738 | 27,667 | 25,591 | 27,495 | |||||||||
Dilutive effect of employee stock options | 587 | — | — | — | |||||||||
Weighted average shares—Dilutive | 24,325 | 27,667 | 25,591 | 27,495 | |||||||||
Net income (loss) per common share—Basic | $ | 0.01 | $ | -0.03 | $ | -0.09 | $ | -0.03 | |||||
Net income (loss) per common share—Diluted | $ | 0.01 | $ | -0.03 | $ | -0.09 | $ | -0.03 | |||||
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 share as they had an anti-dilutive effect: | |||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
Shares underlying options | 4,245 | 3,027 | 3,786 | 3,026 | |||||||||
3_BALANCE_SHEET_DETAIL
3. BALANCE SHEET DETAIL | 9 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Balance Sheet Detail | ||||||||||
NOTE 3 - BALANCE SHEET DETAIL | NOTE 3—BALANCE SHEET DETAIL | |||||||||
31-Dec-14 | 31-Mar-14 | |||||||||
(In thousands) | ||||||||||
Inventories: | ||||||||||
Work-in-progress | $ | 2,821 | $ | 2,011 | ||||||
Finished goods | 5,704 | 5,588 | ||||||||
Inventory at distributors | 534 | 586 | ||||||||
$ | 9,059 | $ | 8,185 | |||||||
31-Dec-14 | 31-Mar-14 | |||||||||
(In thousands) | ||||||||||
Accounts receivable, net: | ||||||||||
Accounts receivable | $ | 5,622 | $ | 8,349 | ||||||
Less: Allowances for sales returns, doubtful accounts and other | -100 | -111 | ||||||||
$ | 5,522 | $ | 8,238 | |||||||
31-Dec-14 | 31-Mar-14 | |||||||||
(In thousands) | ||||||||||
Prepaid expenses and other current assets: | ||||||||||
Prepaid tooling and masks | $ | 1,186 | $ | 833 | ||||||
Prepaid income taxes | 974 | 2,598 | ||||||||
Other receivables | 414 | 596 | ||||||||
Other prepaid expenses | 803 | 1,125 | ||||||||
$ | 3,377 | $ | 5,152 | |||||||
31-Dec-14 | 31-Mar-14 | |||||||||
(In thousands) | ||||||||||
Property and equipment, net: | ||||||||||
Computer and other equipment | $ | 17,230 | $ | 16,990 | ||||||
Software | 4,792 | 4,780 | ||||||||
Land | 3,900 | 3,900 | ||||||||
Building and building improvements | 2,256 | 2,256 | ||||||||
Furniture and fixtures | 110 | 110 | ||||||||
Leasehold improvements | 791 | 791 | ||||||||
29,079 | 28,827 | |||||||||
Less: Accumulated depreciation and amortization | -20,107 | -19,144 | ||||||||
$ | 8,972 | $ | 9,683 | |||||||
Depreciation and amortization expense was $322,000 and $443,000, respectively, for the three months ended December 31, 2014 and 2013 and $1,164,000 and $1,351,000, respectively, for the nine months ended December 31, 2014 and 2013. | ||||||||||
31-Dec-14 | 31-Mar-14 | |||||||||
(In thousands) | ||||||||||
Other assets: | ||||||||||
Non-current deferred income taxes | $ | 20 | $ | 24 | ||||||
Intangibles, net | 434 | 564 | ||||||||
Deposits | 77 | 80 | ||||||||
$ | 531 | $ | 668 | |||||||
The following table summarizes the components of intangible assets and related accumulated amortization balances at December 31, 2014 (in thousands): | ||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||
Intangible assets: | ||||||||||
Product designs | $ | 590 | $ | 450 | $ | 140 | ||||
Patents | 720 | 426 | 294 | |||||||
Software | 80 | 80 | — | |||||||
Total | $ | 1,390 | $ | 956 | $ | 434 | ||||
Amortization of intangible assets included in cost of revenues was $41,000 and $45,000, respectively, for the three months ended December 31, 2014 and 2013 and $130,000 and $135,000, respectively, for the nine months ended December 31, 2014 and 2013. | ||||||||||
31-Dec-14 | 31-Mar-14 | |||||||||
(In thousands) | ||||||||||
Accrued expenses and other liabilities: | ||||||||||
Accrued compensation | $ | 2,720 | $ | 2,330 | ||||||
Accrued professional fees | 756 | 824 | ||||||||
Accrued commissions | 314 | 307 | ||||||||
Other accrued expenses | 820 | 983 | ||||||||
$ | 4,610 | $ | 4,444 | |||||||
4_INCOME_TAXES
4. INCOME TAXES | 9 Months Ended |
Dec. 31, 2014 | |
Income Taxes | |
NOTE 4-INCOME TAXES | NOTE 4—INCOME TAXES |
The current portion of the Company’s unrecognized tax benefits was $0 at both December 31, 2014 and March 31, 2014. The long-term portion at December 31, 2014 and March 31, 2014 was $772,000 and $1,462,000, respectively, of which the timing of the resolution is uncertain. As of December 31, 2014, $1,229,000 of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets. As of December 31, 2014 and March 31, 2014, the Company’s net deferred tax assets of $4.9 million and $3.7 million, respectively, were subject to a full valuation allowance. | |
During the three months ended December 31, 2014, the Company recorded a tax benefit of $696,000 due to the reduction of uncertain tax benefits as a result of the lapse of applicable statutes of limitations. | |
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 $729,000, including interest and penalties, related to positions taken with respect to credits and loss carryforwards on previously filed tax returns. | |
The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the provision for income taxes in the Condensed Consolidated Statements of Operations. | |
The Company is subject to taxation in the United States and various state and foreign jurisdictions. Fiscal years 2012 through 2014 remain open to examination by federal tax authorities, and fiscal years 2011 through 2014 remain open to examination by California tax authorities. | |
The Company’s estimated annual effective income tax rate was approximately 5.1% and 34.5% as of December 31, 2014 and 2013, respectively. The annual effective tax rate as of December 31, 2014 varies from the United States statutory income tax rate primarily due to valuation allowances in the United States whereby pre-tax losses do not result in the recognition of corresponding income tax benefits and expenses. The difference between the effective income tax rate and the applicable United States statutory income tax rate as of December 31, 2013 was primarily due to the effects of tax credits, foreign tax rate differentials and tax free interest income, offset by stock-based compensation expense. | |
5_FINANCIAL_INSTRUMENTS
5. FINANCIAL INSTRUMENTS | 9 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Financial Instruments. | |||||||||||||
NOTE 5-FINANCIAL INSTRUMENTS | NOTE 5—FINANCIAL INSTRUMENTS | ||||||||||||
Fair value measurements | |||||||||||||
The authoritative accounting guidance for fair value measurements provides a framework for measuring fair value and related disclosures. 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 December 31, 2014, the Level 1 category included money market funds of $3.9 million, which were included in cash and cash equivalents in the Condensed 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 December 31, 2014, the Level 2 category included short-term investments of $25.0 million and long-term investments of $18.7 million, which were 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 December 31, 2014, the Company had no Level 3 financial assets measured at fair value in the Condensed Consolidated Balance Sheet. | |||||||||||||
As of December 31, 2014, there were no liabilities measured at fair value on a recurring basis. | |||||||||||||
The fair value of financial assets measured on a recurring basis is as follows (in thousands): | |||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||
Quoted Prices in Active Markets for Identical Assets and Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||
31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Assets: | |||||||||||||
Money market funds | $ | 3,874 | $ | 3,874 | $ | — | $ | — | |||||
Marketable securities | 43,630 | — | 43,630 | — | |||||||||
Total | $ | 47,504 | $ | 3,874 | $ | 43,630 | $ | — | |||||
Fair Value Measurements at Reporting Date Using | |||||||||||||
Quoted Prices in Active Markets for Identical Assets and Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||
31-Mar-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Assets: | |||||||||||||
Money market funds | $ | 3,852 | $ | 3,852 | $ | — | $ | — | |||||
Marketable securities | 68,231 | — | 68,231 | — | |||||||||
Total | $ | 72,083 | $ | 3,852 | $ | 68,231 | $ | — | |||||
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 Condensed Consolidated Balance Sheets. The Company had money market funds of $3.9 million and $3.9 million at December 31, 2014 and March 31, 2014, respectively, included in cash and cash equivalents in the Condensed Consolidated Balance Sheet. The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when declines are determined to be other-than-temporary. | |||||||||||||
The following table summarizes the Company’s available-for-sale investments: | |||||||||||||
31-Dec-14 | |||||||||||||
Gross | Gross | ||||||||||||
Unrealized | Unrealized | Fair | |||||||||||
Cost | Gains | Losses | Value | ||||||||||
(In thousands) | |||||||||||||
Short-term investments: | |||||||||||||
State and municipal obligations | $ | 7,589 | — | $ | — | $ | 7,589 | ||||||
Corporate notes | 9,375 | 8 | — | 9,383 | |||||||||
Certificates of deposit | 8,000 | 6 | — | 8,006 | |||||||||
Total short-term investments | $ | 24,964 | $ | 14 | $ | — | $ | 24,978 | |||||
Long-term investments: | |||||||||||||
State and municipal obligations | $ | 1,064 | $ | 3 | $ | — | $ | 1,067 | |||||
Corporate notes | 2,451 | — | -14 | 2,437 | |||||||||
Certificates of deposit | 9,500 | — | -27 | 9,473 | |||||||||
Agency bonds | 4,009 | — | -8 | 4,001 | |||||||||
International government obligations | 1,679 | — | -5 | 1,674 | |||||||||
Total long-term investments | $ | 18,703 | $ | 3 | $ | -54 | $ | 18,652 | |||||
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 | |||||||||
International government obligations | 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 | |||||||||
International government obligations | 1,670 | — | — | 1,670 | |||||||||
Total long-term investments | $ | 28,800 | $ | 26 | $ | -7 | $ | 28,819 | |||||
The Company’s investment portfolio consists of both corporate and governmental securities that have a maximum maturity of three years. All unrealized gains are due to changes in interest rates and bond yields. Subject to normal credit risks, the Company has the ability to realize the full value of all these investments upon maturity. | |||||||||||||
The deferred tax asset related to unrecognized gains and losses on short-term and long-term investments was $14,000 at December 31, 2014 and the deferred tax liability related to unrecognized gains and losses on short-term and long-term investments was $11,000 at March 31, 2014. | |||||||||||||
As of December 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 | $ | 24,964 | $ | 24,978 | |||||||||
Maturing in one to three years | 18,703 | 18,652 | |||||||||||
Maturing in more than three years | — | — | |||||||||||
$ | 43,667 | $ | 43,630 | ||||||||||
The Company classifies its short-term investments as “available-for-sale” as they are intended to be available for use in current operations. | |||||||||||||
6_COMMITMENTS_AND_CONTINGENCIE
6. COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure | |
NOTE 6-COMMITMENTS AND CONTINGENCIES | NOTE 6—COMMITMENTS AND CONTINGENCIES |
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 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, the Company’s indemnification obligations are 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 that may be required 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. | |
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 three months or nine months ended December 31, 2014 or 2013. | |
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 sought 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 our distributors and 11 of our 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, and consolidated with, the 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, fiscal 2014 or fiscal 2015 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, results of operations or cash flows for the period in which the outcome occurs and in future periods. | |
7_STOCK_BASED_COMPENSATION
7. STOCK- BASED COMPENSATION | 9 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||
NOTE 7-STOCK- BASED COMPENSATION | NOTE 7—STOCK-BASED COMPENSATION | ||||||||||||||||||||
As of December 31, 2014, 6,321,103 shares of common stock were available for grant under the Company’s 2007 Equity Incentive Plan. | |||||||||||||||||||||
The following table summarizes the Company’s stock option activities for the nine months ended December 31, 2014: | |||||||||||||||||||||
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, 2014 | 5,585,500 | 6,143,980 | 5.13 | ||||||||||||||||||
Options reserved | 1,377,699 | — | — | ||||||||||||||||||
Granted | -684,743 | 684,743 | 5.19 | ||||||||||||||||||
Exercised | — | -106,085 | 4.04 | $ | 225,037 | ||||||||||||||||
Forfeited | 42,647 | -42,647 | 5.49 | ||||||||||||||||||
Balance at December 31, 2014 | 6,321,103 | 6,679,991 | $ | 5.15 | |||||||||||||||||
Options vested and exercisable | 4,295,154 | 4.27 | $ | 4.90 | $ | 2,784,361 | |||||||||||||||
Options vested and expected to vest | 6,614,366 | 5.66 | $ | 5.15 | $ | 3,055,795 | |||||||||||||||
The weighted average fair value per underlying share of options granted during the three months ended December 31, 2014 and 2013 was $1.79 and $2.78, respectively, and for the nine months ended December 31, 2014 and 2013 was $2.10 and $2.73, respectively. | |||||||||||||||||||||
Options outstanding by exercise price at December 31, 2014 were 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 | - | 3.43 | 917,064 | $ | 3.16 | 4.10 | 917,064 | $ | 3.16 | |||||||||||
$ | 3.75 | - | 4 | 812,779 | $ | 3.96 | 4.21 | 812,779 | $ | 3.96 | |||||||||||
$ | 4.17 | - | 4.68 | 716,855 | $ | 4.32 | 5.69 | 358,427 | $ | 4.31 | |||||||||||
$ | 4.81 | - | 5.23 | 990,276 | $ | 5.05 | 8.38 | 206,844 | $ | 4.88 | |||||||||||
$ | 5.5 | 783,433 | $ | 5.50 | 1.88 | 783,433 | $ | 5.50 | |||||||||||||
$ | 5.59 | - | 5.76 | 675,410 | $ | 5.70 | 6.77 | 259,146 | $ | 5.69 | |||||||||||
$ | 6 | - | 6.54 | 798,358 | $ | 6.32 | 6.41 | 402,571 | $ | 6.20 | |||||||||||
$ | 6.61 | - | 6.86 | 666,003 | $ | 6.77 | 8.14 | 235,077 | $ | 6.77 | |||||||||||
$ | 7 | 206,193 | $ | 7.00 | 5.59 | 206,193 | $ | 7.00 | |||||||||||||
$ | 9.2 | 113,620 | $ | 9.20 | 6.08 | 113,620 | $ | 9.20 | |||||||||||||
6,679,991 | $ | 5.15 | 5.69 | 4,295,154 | 4.90 | ||||||||||||||||
The following table summarizes stock-based compensation expense by line item in the Condensed Consolidated Statements of Operations, all relating to employee stock plans: | |||||||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Cost of revenues | $ | 93 | $ | 86 | $ | 296 | $ | 282 | |||||||||||||
Research and development | 220 | 235 | 709 | 726 | |||||||||||||||||
Selling, general and administrative | 77 | 195 | 528 | 636 | |||||||||||||||||
Total | $ | 390 | $ | 516 | $ | 1,533 | $ | 1,644 | |||||||||||||
As stock-based compensation expense recognized in the Condensed Consolidated Statement of Operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures in accordance with authoritative guidance. The Company estimates forfeitures at the time of grant and revises the original estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||||||||||
The Company recognized related income tax benefits of $0 and $35,000, respectively, for the three months ended December 31, 2014 and 2013, and $0 and $81,000, respectively, for the nine months ended December 31, 2014, and 2013. Windfall tax benefits realized from exercised stock options were $0, and $280,000, respectively, for the three months ended December 31, 2014 and 2013 and $0 and $280,000, respectively for the nine months ended December 31, 2014 and 2013. Compensation cost capitalized within inventory at December 31, 2014 was insignificant. As of December 31, 2014, the Company’s total unrecognized compensation cost was $3.6 million, which will be recognized over a weighted average period of 1.96 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: | |||||||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Stock Option Plans: | |||||||||||||||||||||
Risk-free interest rate | 1.60 | % | 1.43 | % | 1.60 | - | 1.70 | % | 0.91 | - | 1.51 | % | |||||||||
Expected life (in years) | 5.00 | 5.00 | 5.00 | 5.00 | |||||||||||||||||
Volatility | 41.3 | % | 46.6 | % | 41.3 | - | 44.8 | % | 46.6 | - | 48.4 | % | |||||||||
Dividend yield | — | % | — | % | — | % | — | % | |||||||||||||
Employee Stock Purchase Plan: | |||||||||||||||||||||
Risk-free interest rate | 0.05 | % | 0.07 | % | 0.05 | % | 0.07 | - | 0.09 | % | |||||||||||
Expected life (in years) | 0.50 | 0.50 | 0.50 | 0.50 | |||||||||||||||||
Volatility | 38.0 | % | 32.8 | % | 30.8 | - | 38.0 | % | 30.4 | - | 32.8 | % | |||||||||
Dividend yield | — | % | — | % | — | % | — | % | |||||||||||||
8_SEGMENT_AND_GEOGRAPHIC_INFOR
8. SEGMENT AND GEOGRAPHIC INFORMATION | 9 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment And Geographic Information | |||||||||||||
NOTE 8-SEGMENT AND GEOGRAPHIC INFORMATION | NOTE 8—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: | |||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
United States | $ | 5,077 | $ | 4,123 | $ | 13,471 | $ | 14,507 | |||||
China | 4,459 | 3,465 | 11,697 | 9,736 | |||||||||
Malaysia | 20 | 2,310 | 2,720 | 7,865 | |||||||||
Singapore | 1,455 | 1,803 | 4,955 | 4,868 | |||||||||
Netherlands | 1,505 | 768 | 2,977 | 4,180 | |||||||||
Rest of the world | 1,711 | 1,309 | 4,615 | 4,576 | |||||||||
$ | 14,227 | $ | 13,778 | $ | 40,435 | $ | 45,732 | ||||||
All sales are denominated in United States dollars. | |||||||||||||
9_MODIFIED_DUTCH_AUCTION_TENDE
9. MODIFIED DUTCH AUCTION TENDER OFFER | 9 Months Ended |
Dec. 31, 2014 | |
Modified Dutch Auction Tender Offer | |
NOTE 9-MODIFIED DUTCH AUCTION TENDER OFFER | NOTE 9—MODIFIED DUTCH AUCTION SELF-TENDER OFFER |
On July 9, 2014 the Company announced that it had commenced a modified “Dutch auction” self-tender offer to repurchase for cash shares of its common stock for an aggregate purchase price of up to $25 million. Under the terms of the tender offer, the Company’s stockholders had the opportunity to tender some or all of their shares at a price within the range of $6.50 to $6.70 per share. | |
The tender offer expired on August 6, 2014. The Company accepted for purchase an aggregate of 3,846,153 shares of its common stock at a final purchase price of $6.50 per share, for an aggregate cost of approximately $25 million, excluding fees and expenses related to the tender offer. A total of 10,466,830 shares were properly tendered and not properly withdrawn at a price of $6.50 per share. Since the offer was oversubscribed, the number of shares that the Company accepted for purchase from tendering stockholders was prorated, based upon the proration procedures described in the offer to purchase (other than shares tendered by “odd lot” holders, which were not subject to proration and were accepted in full). | |
The aggregate number of shares purchased by the Company in the tender offer represented approximately 14.0 percent of its issued and outstanding shares of common stock as of August 8, 2014. Following settlement of the tender offer, the Company had approximately 23.7 million shares of its common stock outstanding. | |
1_THE_COMPANY_AND_SUMMARY_OF_S1
1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2014 | |
Company And Summary Of Significant Accounting Policies Details Narrative | |
Basis of consolidation | Basis of presentation |
The accompanying unaudited condensed consolidated financial statements of GSI Technology, Inc. and its subsidiaries (“GSI” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. These interim financial statements contain all adjustments (which consist of only normal, recurring adjustments) that are, in the opinion of management, necessary to state fairly the interim financial information included therein. The Company believes that the disclosures are adequate to make the information not misleading. However, these financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2014. | |
The consolidated results of operations for the three months and nine months ended December 31, 2014 are not necessarily indicative of the results to be expected for the entire fiscal year. | |
Significant accounting policies | Significant accounting policies |
The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2014. | |
Litigation and settlement costs | Litigation and settlement costs |
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. The litigation, regardless of its eventual outcome, will be costly and time consuming and, should the outcome be adverse to the Company, could result in the Company being required to pay significant monetary damages. If that occurs, our business, financial condition and results of operations could be materially and adversely affected. 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. | |
Recent accounting pronouncements | Recent accounting pronouncements |
In August 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance related to the Company’s responsibility to evaluate whether there is substantial doubt about its ability to continue ongoing business operations and to provide relevant footnote disclosures. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. | |
In July 2013, the 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. Implementation of this guidance in the quarter ended June 30, 2014 did not have a material impact on the Company’s financial position or results of operations. | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." The new accounting standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The accounting standard is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early adoption is not permitted. The Company is currently evaluating the impact of this accounting standard on its consolidated financial statements. | |
2_NET_INCOME_LOSS_PER_COMMON_S1
2. NET INCOME (LOSS) PER COMMON SHARE (Tables) | 9 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Net income (loss) per share: | |||||||||||||
Basic and diluted net income (loss) per share | |||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands, except per share amounts) | |||||||||||||
Net income (loss) | $ | 148 | $ | -734 | $ | -2,248 | $ | -789 | |||||
Denominators: | |||||||||||||
Weighted average shares—Basic | 23,738 | 27,667 | 25,591 | 27,495 | |||||||||
Dilutive effect of employee stock options | 587 | — | — | — | |||||||||
Weighted average shares—Dilutive | 24,325 | 27,667 | 25,591 | 27,495 | |||||||||
Net income (loss) per common share—Basic | $ | 0.01 | $ | -0.03 | $ | -0.09 | $ | -0.03 | |||||
Net income (loss) per common share—Diluted | $ | 0.01 | $ | -0.03 | $ | -0.09 | $ | -0.03 | |||||
Anti-dilutive shares | |||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
Shares underlying options | 4,245 | 3,027 | 3,786 | 3,026 | |||||||||
3_BALANCE_SHEET_DETAIL_Tables
3. BALANCE SHEET DETAIL (Tables) | 9 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Balance Sheet Detail | ||||||||||
Schedule of Inventories | ||||||||||
31-Dec-14 | 31-Mar-14 | |||||||||
(In thousands) | ||||||||||
Inventories: | ||||||||||
Work-in-progress | $ | 2,821 | $ | 2,011 | ||||||
Finished goods | 5,704 | 5,588 | ||||||||
Inventory at distributors | 534 | 586 | ||||||||
$ | 9,059 | $ | 8,185 | |||||||
Schedule of Accounts Receivable, Net | ||||||||||
31-Dec-14 | 31-Mar-14 | |||||||||
(In thousands) | ||||||||||
Accounts receivable, net: | ||||||||||
Accounts receivable | $ | 5,622 | $ | 8,349 | ||||||
Less: Allowances for sales returns, doubtful accounts and other | -100 | -111 | ||||||||
$ | 5,522 | $ | 8,238 | |||||||
Schedule of Prepaid Expenses and Other Current Assets | ||||||||||
31-Dec-14 | 31-Mar-14 | |||||||||
(In thousands) | ||||||||||
Prepaid expenses and other current assets: | ||||||||||
Prepaid tooling and masks | $ | 1,186 | $ | 833 | ||||||
Prepaid income taxes | 974 | 2,598 | ||||||||
Other receivables | 414 | 596 | ||||||||
Other prepaid expenses | 803 | 1,125 | ||||||||
$ | 3,377 | $ | 5,152 | |||||||
Schedule of Property and Equipment, Net | ||||||||||
31-Dec-14 | 31-Mar-14 | |||||||||
(In thousands) | ||||||||||
Property and equipment, net: | ||||||||||
Computer and other equipment | $ | 17,230 | $ | 16,990 | ||||||
Software | 4,792 | 4,780 | ||||||||
Land | 3,900 | 3,900 | ||||||||
Building and building improvements | 2,256 | 2,256 | ||||||||
Furniture and fixtures | 110 | 110 | ||||||||
Leasehold improvements | 791 | 791 | ||||||||
29,079 | 28,827 | |||||||||
Less: Accumulated depreciation and amortization | -20,107 | -19,144 | ||||||||
$ | 8,972 | $ | 9,683 | |||||||
Schedule of Other Assets | ||||||||||
31-Dec-14 | 31-Mar-14 | |||||||||
(In thousands) | ||||||||||
Other assets: | ||||||||||
Non-current deferred income taxes | $ | 20 | $ | 24 | ||||||
Intangibles, net | 434 | 564 | ||||||||
Deposits | 77 | 80 | ||||||||
$ | 531 | $ | 668 | |||||||
Schedule of Intangible Assets | The following table summarizes the components of intangible assets and related accumulated amortization balances at December 31, 2014 (in thousands): | |||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||
Intangible assets: | ||||||||||
Product designs | $ | 590 | $ | 450 | $ | 140 | ||||
Patents | 720 | 426 | 294 | |||||||
Software | 80 | 80 | — | |||||||
Total | $ | 1,390 | $ | 956 | $ | 434 | ||||
Schedule of Accrued Expenses and Other Liabilities | ||||||||||
31-Dec-14 | 31-Mar-14 | |||||||||
(In thousands) | ||||||||||
Accrued expenses and other liabilities: | ||||||||||
Accrued compensation | $ | 2,720 | $ | 2,330 | ||||||
Accrued professional fees | 756 | 824 | ||||||||
Accrued commissions | 314 | 307 | ||||||||
Other accrued expenses | 820 | 983 | ||||||||
$ | 4,610 | $ | 4,444 | |||||||
5_FINANCIAL_INSTRUMENTS_Tables
5. FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Financial Instruments. | |||||||||||||
Schedule of Fair value of financial assets measured on a recurring basis | The fair value of financial assets measured on a recurring basis is as follows (in thousands): | ||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||
Quoted Prices in Active Markets for Identical Assets and Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||
31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Assets: | |||||||||||||
Money market funds | $ | 3,874 | $ | 3,874 | $ | — | $ | — | |||||
Marketable securities | 43,630 | — | 43,630 | — | |||||||||
Total | $ | 47,504 | $ | 3,874 | $ | 43,630 | $ | — | |||||
Fair Value Measurements at Reporting Date Using | |||||||||||||
Quoted Prices in Active Markets for Identical Assets and Liabilities | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||
31-Mar-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Assets: | |||||||||||||
Money market funds | $ | 3,852 | $ | 3,852 | $ | — | $ | — | |||||
Marketable securities | 68,231 | — | 68,231 | — | |||||||||
Total | $ | 72,083 | $ | 3,852 | $ | 68,231 | $ | — | |||||
Schedule of Available-for-sale investments | |||||||||||||
31-Dec-14 | |||||||||||||
Gross | Gross | ||||||||||||
Unrealized | Unrealized | Fair | |||||||||||
Cost | Gains | Losses | Value | ||||||||||
(In thousands) | |||||||||||||
Short-term investments: | |||||||||||||
State and municipal obligations | $ | 7,589 | — | $ | — | $ | 7,589 | ||||||
Corporate notes | 9,375 | 8 | — | 9,383 | |||||||||
Certificates of deposit | 8,000 | 6 | — | 8,006 | |||||||||
Total short-term investments | $ | 24,964 | $ | 14 | $ | — | $ | 24,978 | |||||
Long-term investments: | |||||||||||||
State and municipal obligations | $ | 1,064 | $ | 3 | $ | — | $ | 1,067 | |||||
Corporate notes | 2,451 | — | -14 | 2,437 | |||||||||
Certificates of deposit | 9,500 | — | -27 | 9,473 | |||||||||
Agency bonds | 4,009 | — | -8 | 4,001 | |||||||||
International government obligations | 1,679 | — | -5 | 1,674 | |||||||||
Total long-term investments | $ | 18,703 | $ | 3 | $ | -54 | $ | 18,652 | |||||
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 | |||||||||
International government obligations | 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 | |||||||||
International government obligations | 1,670 | — | — | 1,670 | |||||||||
Total long-term investments | $ | 28,800 | $ | 26 | $ | -7 | $ | 28,819 | |||||
Schedule of Contractual maturities of the available-for-sale non-equity investments | |||||||||||||
Fair | |||||||||||||
Cost | Value | ||||||||||||
(In thousands) | |||||||||||||
Maturing within one year | $ | 24,964 | $ | 24,978 | |||||||||
Maturing in one to three years | 18,703 | 18,652 | |||||||||||
Maturing in more than three years | — | — | |||||||||||
$ | 43,667 | $ | 43,630 | ||||||||||
7_STOCK_BASED_COMPENSATION_Tab
7. STOCK- BASED COMPENSATION (Tables) | 9 Months Ended | ||||||||||||||||||||
Dec. 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, 2014 | 5,585,500 | 6,143,980 | 5.13 | ||||||||||||||||||
Options reserved | 1,377,699 | — | — | ||||||||||||||||||
Granted | -684,743 | 684,743 | 5.19 | ||||||||||||||||||
Exercised | — | -106,085 | 4.04 | $ | 225,037 | ||||||||||||||||
Forfeited | 42,647 | -42,647 | 5.49 | ||||||||||||||||||
Balance at December 31, 2014 | 6,321,103 | 6,679,991 | $ | 5.15 | |||||||||||||||||
Options vested and exercisable | 4,295,154 | 4.27 | $ | 4.90 | $ | 2,784,361 | |||||||||||||||
Options vested and expected to vest | 6,614,366 | 5.66 | $ | 5.15 | $ | 3,055,795 | |||||||||||||||
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 | - | 3.43 | 917,064 | $ | 3.16 | 4.10 | 917,064 | $ | 3.16 | |||||||||||
$ | 3.75 | - | 4 | 812,779 | $ | 3.96 | 4.21 | 812,779 | $ | 3.96 | |||||||||||
$ | 4.17 | - | 4.68 | 716,855 | $ | 4.32 | 5.69 | 358,427 | $ | 4.31 | |||||||||||
$ | 4.81 | - | 5.23 | 990,276 | $ | 5.05 | 8.38 | 206,844 | $ | 4.88 | |||||||||||
$ | 5.5 | 783,433 | $ | 5.50 | 1.88 | 783,433 | $ | 5.50 | |||||||||||||
$ | 5.59 | - | 5.76 | 675,410 | $ | 5.70 | 6.77 | 259,146 | $ | 5.69 | |||||||||||
$ | 6 | - | 6.54 | 798,358 | $ | 6.32 | 6.41 | 402,571 | $ | 6.20 | |||||||||||
$ | 6.61 | - | 6.86 | 666,003 | $ | 6.77 | 8.14 | 235,077 | $ | 6.77 | |||||||||||
$ | 7 | 206,193 | $ | 7.00 | 5.59 | 206,193 | $ | 7.00 | |||||||||||||
$ | 9.2 | 113,620 | $ | 9.20 | 6.08 | 113,620 | $ | 9.20 | |||||||||||||
6,679,991 | $ | 5.15 | 5.69 | 4,295,154 | 4.90 | ||||||||||||||||
Summary of stock-based compensation expense by line item | |||||||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Cost of revenues | $ | 93 | $ | 86 | $ | 296 | $ | 282 | |||||||||||||
Research and development | 220 | 235 | 709 | 726 | |||||||||||||||||
Selling, general and administrative | 77 | 195 | 528 | 636 | |||||||||||||||||
Total | $ | 390 | $ | 516 | $ | 1,533 | $ | 1,644 | |||||||||||||
Schedule of weighted average assumptions | |||||||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||
Stock Option Plans: | |||||||||||||||||||||
Risk-free interest rate | 1.60 | % | 1.43 | % | 1.60 | - | 1.70 | % | 0.91 | - | 1.51 | % | |||||||||
Expected life (in years) | 5.00 | 5.00 | 5.00 | 5.00 | |||||||||||||||||
Volatility | 41.3 | % | 46.6 | % | 41.3 | - | 44.8 | % | 46.6 | - | 48.4 | % | |||||||||
Dividend yield | — | % | — | % | — | % | — | % | |||||||||||||
Employee Stock Purchase Plan: | |||||||||||||||||||||
Risk-free interest rate | 0.05 | % | 0.07 | % | 0.05 | % | 0.07 | - | 0.09 | % | |||||||||||
Expected life (in years) | 0.50 | 0.50 | 0.50 | 0.50 | |||||||||||||||||
Volatility | 38.0 | % | 32.8 | % | 30.8 | - | 38.0 | % | 30.4 | - | 32.8 | % | |||||||||
Dividend yield | — | % | — | % | — | % | — | % | |||||||||||||
8_SEGMENT_AND_GEOGRAPHIC_INFOR1
8. SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 9 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment And Geographic Information | |||||||||||||
Net revenues by geographic area | |||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
United States | $ | 5,077 | $ | 4,123 | $ | 13,471 | $ | 14,507 | |||||
China | 4,459 | 3,465 | 11,697 | 9,736 | |||||||||
Malaysia | 20 | 2,310 | 2,720 | 7,865 | |||||||||
Singapore | 1,455 | 1,803 | 4,955 | 4,868 | |||||||||
Netherlands | 1,505 | 768 | 2,977 | 4,180 | |||||||||
Rest of the world | 1,711 | 1,309 | 4,615 | 4,576 | |||||||||
$ | 14,227 | $ | 13,778 | $ | 40,435 | $ | 45,732 | ||||||
2_NET_INCOME_LOSS_PER_COMMON_S2
2. NET INCOME (LOSS) PER COMMON SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Net income (loss) per share: | ||||
Net income (loss) | $148 | ($734) | ($2,248) | ($789) |
Weighted average shares-Basic | 23,738 | 27,667 | 25,591 | 27,495 |
Dilutive effect of employee stock options | 587 | |||
Weighted average shares-Dilutive | 24,325 | 27,667 | 25,591 | 27,495 |
Net income (loss) per common share - Basic | $0.01 | ($0.03) | ($0.09) | ($0.03) |
Net income (loss) per common share - Diluted | $0.01 | ($0.03) | ($0.09) | ($0.03) |
2_NET_INCOME_LOSS_PER_COMMON_S3
2. NET INCOME (LOSS) PER COMMON SHARE (Details 2) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Net income (loss) per share: | ||||
Antidilutive shares excluded from computation of EPS | 4,245 | 3,027 | 3,786 | 3,026 |
3_BALANCE_SHEET_DETAIL_Details
3. BALANCE SHEET DETAIL (Details) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventories: | ||
Work-in-progress | $2,821 | $2,011 |
Finished goods | 5,704 | 5,588 |
Inventory at distributors | 534 | 586 |
Total Inventory | $9,059 | $8,185 |
3_BALANCE_SHEET_DETAIL_Details1
3. BALANCE SHEET DETAIL (Details 2) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounts receivable, net: | ||
Accounts receivable | $5,622 | $8,349 |
Less: Allowances for sales returns, doubtful accounts and other | -100 | -111 |
Total accounts receivable, net | $5,522 | $8,238 |
3_BALANCE_SHEET_DETAIL_Details2
3. BALANCE SHEET DETAIL (Details 3) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Prepaid expenses and other current assets: | ||
Prepaid tooling and masks | $1,186 | $833 |
Prepaid income taxes | 974 | 2,598 |
Other receivables | 414 | 596 |
Other prepaid expenses | 803 | 1,125 |
Total prepaid expenses and other current assets | $3,377 | $5,152 |
3BALANCE_SHEET_DETAIL_Property
3.BALANCE SHEET DETAIL - Property, Plant and Equipment (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Property and equipment, net: | |||||
Property and equipment, gross | $29,079,000 | $29,079,000 | $28,827,000 | ||
Less: Accumulated depreciation and amortization | -20,107,000 | -20,107,000 | -19,144,000 | ||
Property, Plant and Equipment, Net, Total | 8,972,000 | 8,972,000 | 9,683,000 | ||
Depreciation and amortization | 322,000 | 443,000 | 1,164,000 | 1,351,000 | |
Computer and other equipment | |||||
Property and equipment, net: | |||||
Property and equipment, gross | 17,230,000 | 17,230,000 | 16,990,000 | ||
Software | |||||
Property and equipment, net: | |||||
Property and equipment, gross | 4,792,000 | 4,792,000 | 4,780,000 | ||
Land | |||||
Property and equipment, net: | |||||
Property and equipment, gross | 3,900,000 | 3,900,000 | 3,900,000 | ||
Building and Building Improvements [Member] | |||||
Property and equipment, net: | |||||
Property and equipment, gross | 2,256,000 | 2,256,000 | 2,256,000 | ||
Furniture and Fixtures [Member] | |||||
Property and equipment, net: | |||||
Property and equipment, gross | 110,000 | 110,000 | 110,000 | ||
Leasehold improvements | |||||
Property and equipment, net: | |||||
Property and equipment, gross | $791,000 | $791,000 | $791,000 |
3_BALANCE_SHEET_DETAIL_Details3
3. BALANCE SHEET DETAIL (Details 5) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Other assets: | ||
Non-current deferred income taxes | $20 | $24 |
Intangibles, net | 434 | 564 |
Deposits | 77 | 80 |
Total Other Assets | $531 | $668 |
3_BALANCE_SHEET_DETAIL_Details4
3. BALANCE SHEET DETAIL (Details 6) (USD $) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Gross Carrying Amount | $1,390,000 | $1,390,000 | |||
Accumulated Amortization | 956,000 | 956,000 | |||
Net Carrying Amount | 434,000 | 434,000 | 564,000 | ||
Amortization of intangible assets | 41,000 | 45,000 | 130,000 | 135,000 | |
Product Designs | |||||
Gross Carrying Amount | 590,000 | 590,000 | |||
Accumulated Amortization | 450,000 | 450,000 | |||
Net Carrying Amount | 140,000 | 140,000 | |||
Patents | |||||
Gross Carrying Amount | 720,000 | 720,000 | |||
Accumulated Amortization | 426,000 | 426,000 | |||
Net Carrying Amount | 294,000 | 294,000 | |||
Software. | |||||
Gross Carrying Amount | 80,000 | 80,000 | |||
Accumulated Amortization | $80,000 | $80,000 |
3_BALANCE_SHEET_DETAIL_Details5
3. BALANCE SHEET DETAIL (Details 7) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accrued expenses and other liabilities: | ||
Accrued compensation | $2,720 | $2,330 |
Accrued professional fees | 756 | 824 |
Accrued commissions | 314 | 307 |
Other accrued expenses | 820 | 983 |
Total Accrued Expenses and Other Liabilities | $4,610 | $4,444 |
4_INCOME_TAXES_Details
4. INCOME TAXES (Details) (USD $) | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Income Taxes | |||
Unrecognized tax benefits, current | $0 | $0 | |
Unrecognized tax benefits, noncurrent | 772,000 | 1,462,000 | |
Deferred tax assets unrecognized tax benefit | 1,229,000 | ||
Lapses during the current year applicable to statutes of limitations | 696,000 | ||
Possible reduction in uncertain tax benefits | 729,000 | ||
Deferred tax assets net of liabilities | $4,900,000 | $3,700,000 | |
Effective annual income tax rate | 5.10% | 34.50% |
5_FINANCIAL_INSTRUMENTS_Detail
5. FINANCIAL INSTRUMENTS (Details) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair value measurements | ||
Short-term investments | $24,978 | $39,412 |
Long-term investments | 18,652 | 28,819 |
Fair Value, Measurements, Recurring [Member] | ||
Fair value measurements | ||
Money market funds included in cash and cash equivalents | 3,874 | 3,852 |
Marketable securities | 43,630 | 68,231 |
Assets | 47,504 | 72,083 |
Liabilities | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair value measurements | ||
Money market funds included in cash and cash equivalents | 3,874 | 3,852 |
Assets | 3,874 | 3,852 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value measurements | ||
Marketable securities | 43,630 | 68,231 |
Assets | 43,630 | 68,231 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair value measurements | ||
Assets | $0 |
5_FINANCIAL_INSTRUMENTS_Detail1
5. FINANCIAL INSTRUMENTS (Details 2) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Mar. 31, 2014 | |
Available-for-sale investments | ||
Cost | $43,667,000 | |
Fair Value | 43,630,000 | |
Other information | ||
Maximum maturity period of investment portfolio | 3 years | |
Deferred tax asset related to unrecognized gains and losses on short-term and long-term investments | 14,000 | |
Deferred tax liability related to unrecognized gains and losses on short-term and long-term investments | 11,000 | |
Short-term Investments [Member] | ||
Available-for-sale investments | ||
Cost | 24,964,000 | 39,386,000 |
Gross Unrealized Gains | 14,000 | 26,000 |
Fair Value | 24,978,000 | 39,412,000 |
Short-term Investments [Member] | Municipal Bonds [Member] | ||
Available-for-sale investments | ||
Cost | 7,589,000 | 8,336,000 |
Gross Unrealized Gains | 4,000 | |
Fair Value | 7,589,000 | 8,340,000 |
Short-term Investments [Member] | Corporate Note Securities [Member] | ||
Available-for-sale investments | ||
Cost | 9,375,000 | 5,023,000 |
Gross Unrealized Gains | 8,000 | 12,000 |
Fair Value | 9,383,000 | 5,035,000 |
Short-term Investments [Member] | Bonds [Member] | ||
Available-for-sale investments | ||
Cost | 3,523,000 | |
Gross Unrealized Gains | 2,000 | |
Fair Value | 3,525,000 | |
Short-term Investments [Member] | Certificates of Deposit [Member] | ||
Available-for-sale investments | ||
Cost | 8,000,000 | 14,997,000 |
Gross Unrealized Gains | 6,000 | 6,000 |
Fair Value | 8,006,000 | 15,003,000 |
Short-term Investments [Member] | Other | ||
Available-for-sale investments | ||
Cost | 7,507,000 | |
Gross Unrealized Gains | 2,000 | |
Fair Value | 7,509,000 | |
Other Long-term Investments [Member] | ||
Available-for-sale investments | ||
Cost | 18,703,000 | 28,800,000 |
Gross Unrealized Gains | 3,000 | 26,000 |
Gross Unrealized Losses | -54,000 | -7,000 |
Fair Value | 18,652,000 | 28,819,000 |
Other Long-term Investments [Member] | Municipal Bonds [Member] | ||
Available-for-sale investments | ||
Cost | 1,064,000 | 8,227,000 |
Gross Unrealized Gains | 3,000 | 10,000 |
Fair Value | 1,067,000 | 8,237,000 |
Other Long-term Investments [Member] | Corporate Note Securities [Member] | ||
Available-for-sale investments | ||
Cost | 2,451,000 | 6,392,000 |
Gross Unrealized Gains | 16,000 | |
Gross Unrealized Losses | -14,000 | |
Fair Value | 2,437,000 | 6,408,000 |
Other Long-term Investments [Member] | Bonds [Member] | ||
Available-for-sale investments | ||
Cost | 4,009,000 | 2,011,000 |
Gross Unrealized Losses | -8,000 | -5,000 |
Fair Value | 4,001,000 | 2,006,000 |
Other Long-term Investments [Member] | Certificates of Deposit [Member] | ||
Available-for-sale investments | ||
Cost | 9,500,000 | 10,500,000 |
Gross Unrealized Losses | -27,000 | -2,000 |
Fair Value | 9,473,000 | 10,498,000 |
Other Long-term Investments [Member] | Other Debt Obligations [Member] | ||
Available-for-sale investments | ||
Cost | 1,679,000 | 1,670,000 |
Gross Unrealized Losses | -5,000 | |
Fair Value | $1,674,000 | $1,670,000 |
5_FINANCIAL_INSTRUMENTS_Detail2
5. FINANCIAL INSTRUMENTS (Details 3) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Financial Instruments. | |
Maturing within one year, Cost | $24,964 |
Maturing in one to three years, cost | 18,703 |
Total | 43,667 |
Maturing within one year, Fair Value | 24,978 |
Maturing in one to three years, fair value | 18,652 |
Fair Value | $43,630 |
6COMMITMENTS_AND_CONTINGENCIES
6-COMMITMENTS AND CONTINGENCIES - Royalties and Product Warranties (Details) | 3 Months Ended |
Dec. 31, 2014 | |
Product warranties | |
Warranty period | 3 years |
6COMMITMENTS_AND_CONTINGENCIES1
6-COMMITMENTS AND CONTINGENCIES - Legal proceedings (Details 2) | 3 Months Ended |
Dec. 31, 2014 | |
patent | |
Cypress Semiconductor Litigation | |
Legal proceedings | |
Number of patents infringed | 5 |
Cypress Semiconductor International Trade Commission | |
Legal proceedings | |
Number of patents infringed | 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 |
Cypress Semiconductor Northern District Litigation | |
Legal proceedings | |
Number of terminated or dismissed patent claims | 3 |
Number of patent claims transferred | 2 |
7_STOCK_BASED_COMPENSATION_Det
7. STOCK- BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-Based Compensation | ||||
Shares available for grant, Beginning | 5,585,500 | |||
Options reserved (in shares) | 1,377,699 | |||
Granted (in shares) | -684,743 | |||
Forfeited (in shares) | 42,647 | |||
Shares available for grant, Ending | 6,321,103 | 6,321,103 | ||
Number of Shares Underlying Options Outstanding | ||||
Balance at the beginning of the period (in shares) | 6,143,980 | |||
Granted (in shares) | 684,743 | |||
Exercised (in shares) | -106,085 | |||
Forfeited (in shares) | -42,647 | |||
Balance at the end of the period (in shares) | 6,679,991 | 6,679,991 | ||
Options vested and exercisable (in shares) | 4,295,154 | 4,295,154 | ||
Options vested and expected to vest (in shares) | 6,614,366 | 6,614,366 | ||
Weighted Average Remaining Contractual Life | ||||
Options vested and exercisable (in dollars per share) | 4 years 3 months 7 days | |||
Options vested and expected to vest (in dollars per share) | 5 years 7 months 28 days | |||
Weighted Average Exercise Price | ||||
Balance at the beginning of the period (in dollars per share) | $5.13 | |||
Granted (in dollars per share) | $5.19 | |||
Exercised (in dollars per share) | $4.04 | |||
Forfeited (in dollars per share) | $5.49 | |||
Balance at the end of the period (in dollars per share) | $5.15 | $5.15 | ||
Options vested and exercisable (in dollars per share) | $4.90 | $4.90 | ||
Options vested and expected to vest (in dollars per share) | $5.15 | $5.15 | ||
Intrinsic Value | ||||
Exercised (in dollars) | $225,037 | |||
Options vested and exercisable (in dollars) | 2,784,361 | 2,784,361 | ||
Options vested and expected to vest (in dollars) | $3,055,795 | $3,055,795 | ||
Weighted average fair value | ||||
Weighted average fair value per underlying share of options granted (in dollars per share) | $1.79 | $2.78 | $2.10 | $2.73 |
7_STOCK_BASED_COMPENSATION_Det1
7. STOCK- BASED COMPENSATION (Details 2) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Mar. 31, 2014 | |
Options outstanding by exercise price | ||
Exercise Price (in dollars per share) | $5.15 | $5.13 |
Number of Shares Underlying Options Outstanding (in shares) | 6,679,991 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $5.15 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 8 months 9 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 4,295,154 | |
$2.43 to $3.43 | ||
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) | $3.43 | |
Number of Shares Underlying Options Outstanding (in shares) | 917,064 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $3.16 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 1 month 6 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 917,064 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $3.16 | |
$3.75 to $4.00 | ||
Options outstanding by exercise price | ||
Exercise Price, low end of range (in dollars per share) | $3.75 | |
Exercise Price, high end of range (in dollars per share) | $4 | |
Number of Shares Underlying Options Outstanding (in shares) | 812,779 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $3.96 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 2 months 16 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 812,779 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $3.96 | |
$4.17 to $4.68 | ||
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) | $4.68 | |
Number of Shares Underlying Options Outstanding (in shares) | 716,855 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $4.32 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 8 months 9 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 358,427 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $4.31 | |
$4.81 to $5.23 | ||
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) | $5.23 | |
Number of Shares Underlying Options Outstanding (in shares) | 990,276 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $5.05 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 4 months 17 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 206,844 | |
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) | 783,433 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $5.50 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 1 year 10 months 17 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 783,433 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $5.50 | |
$5.59 to $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) | 675,410 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $5.70 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 9 months 7 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 259,146 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $5.69 | |
$6.00 to $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) | 798,358 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $6.32 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 4 months 28 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 402,571 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $6.20 | |
$6.61 to $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) | 666,003 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $6.77 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 1 month 21 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 235,077 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $6.77 | |
$7.00 | ||
Options outstanding by exercise price | ||
Exercise Price (in dollars per share) | $7 | |
Number of Shares Underlying Options Outstanding (in shares) | 206,193 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $7 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 7 months 2 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 206,193 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $7 | |
$9.20 | ||
Options outstanding by exercise price | ||
Exercise Price (in dollars per share) | $9.20 | |
Number of Shares Underlying Options Outstanding (in shares) | 113,620 | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $9.20 | |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 29 days | |
Options Exercisable, Number Vested and Exercisable (in shares) | 113,620 | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $9.20 |
7_STOCK_BASED_COMPENSATION_Det2
7. STOCK- BASED COMPENSATION (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based compensation expense by line item | ||||
Stock-based compensation expense | $390,000 | $516,000 | $1,533,000 | $1,644,000 |
Other information | ||||
Income tax benefit recognized from allocation of share-based compensation expense | 0 | 35,000 | 0 | 81,000 |
windfall tax benefits recognized | 0 | 280,000 | 0 | 280,000 |
Unrecognized compensation costs | 3,600,000 | 3,600,000 | ||
Weighted average period of recognition of unrecognized compensation costs | 1 year 11 months 16 days | |||
Cost of Sales [Member] | ||||
Stock-based compensation expense by line item | ||||
Stock-based compensation expense | 93,000 | 86,000 | 296,000 | 282,000 |
Research and Development Expense [Member] | ||||
Stock-based compensation expense by line item | ||||
Stock-based compensation expense | 220,000 | 235,000 | 709,000 | 726,000 |
Selling, General and Administrative Expenses [Member] | ||||
Stock-based compensation expense by line item | ||||
Stock-based compensation expense | $77,000 | $195,000 | $528,000 | $636,000 |
7_STOCK_BASED_COMPENSATION_Det3
7. STOCK- BASED COMPENSATION (Details 4) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Consultants and Directors Stock Options [Member] | ||||
Stock-based compensation | ||||
Risk-free interest rate (as a percent) | 1.60% | 1.43% | ||
Risk-free interest rate, low end of range (as a percent) | 1.60% | 0.91% | ||
Risk-free interest rate, high end of range (as a percent) | 1.70% | 1.51% | ||
Expected life | 5 years | 5 years | 5 years | 5 years |
Volatility (as a percent) | 41.30% | 46.60% | ||
Volatility, low end of range (as a percent) | 41.30% | 46.60% | ||
Volatility, high end of range (as a percent) | 44.80% | 48.40% | ||
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% |
Employee Stock [Member] | ||||
Stock-based compensation | ||||
Risk-free interest rate (as a percent) | 0.05% | 0.07% | 0.05% | |
Risk-free interest rate, low end of range (as a percent) | 0.07% | |||
Risk-free interest rate, high end of range (as a percent) | 0.09% | |||
Expected life | 6 months | 6 months | 6 months | 6 months |
Volatility (as a percent) | 38.00% | 32.80% | ||
Volatility, low end of range (as a percent) | 30.80% | 30.40% | ||
Volatility, high end of range (as a percent) | 38.00% | 32.80% | ||
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | 0.00% |
8_SEGMENT_AND_GEOGRAPHIC_INFOR2
8. SEGMENT AND GEOGRAPHIC INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
segment | ||||
Net revenues by geographic area | ||||
Number of reportable business segments | 1 | |||
Net revenues | $14,227 | $13,778 | $40,435 | $45,732 |
UNITED STATES | ||||
Net revenues by geographic area | ||||
Net revenues | 5,077 | 4,123 | 13,471 | 14,507 |
CHINA | ||||
Net revenues by geographic area | ||||
Net revenues | 4,459 | 3,465 | 11,697 | 9,736 |
MALAYSIA | ||||
Net revenues by geographic area | ||||
Net revenues | 20 | 2,310 | 2,720 | 7,865 |
SINGAPORE | ||||
Net revenues by geographic area | ||||
Net revenues | 1,455 | 1,803 | 4,955 | 4,868 |
NETHERLANDS | ||||
Net revenues by geographic area | ||||
Net revenues | 1,505 | 768 | 2,977 | 4,180 |
Rest of World [Member] | ||||
Net revenues by geographic area | ||||
Net revenues | $1,711 | $1,309 | $4,615 | $4,576 |
9_MODIFIED_DUTCH_AUCTION_TENDE1
9. MODIFIED DUTCH AUCTION TENDER OFFER (Details) (USD $) | 0 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Aug. 08, 2014 | Dec. 31, 2014 | Mar. 31, 2014 | Jul. 09, 2014 |
Modified Dutch auction self-tender offer | ||||
Common stock, shares outstanding | 23,700,000 | 23,657,906 | 27,561,482 | |
July 9, 2014 Modified Dutch Auction [Member] | ||||
Modified Dutch auction self-tender offer | ||||
Stock Repurchase Program, Authorized Amount | $25 | |||
Repurchase of common stock, Shares | 3,846,153 | |||
Treasury stock acquired cost per share | $6.50 | |||
Repurchase of common stock, Amount | $25 | |||
Shares tendered | 10,466,830 | |||
Percent of shares issued and outstanding acquired | 14 | |||
July 9, 2014 Modified Dutch Auction [Member] | Minimum | ||||
Modified Dutch auction self-tender offer | ||||
Share Price | $6.50 | |||
July 9, 2014 Modified Dutch Auction [Member] | Maximum | ||||
Modified Dutch auction self-tender offer | ||||
Share Price | $6.70 |