GSI Technology (GSIT) 10-Q 5 Nov 15 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document And Entity Information
Entity Registrant Name	GSI TECHNOLOGY INC
Entity Central Index Key	1,126,741
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		22,633,465
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Mar. 31, 2015
ASSETS
Cash and cash equivalents	$ 39,421	$ 36,776
Short-term investments	20,929	22,201
Accounts receivable, net	6,151	8,257
Inventories	8,636	8,412
Prepaid expenses and other current assets	2,431	2,297
Total current assets	77,568	77,943
Property and equipment, net	8,164	8,708
Long-term investments	17,541	21,740
Other assets	434	498
Total assets	103,707	108,889
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	3,739	2,961
Accrued expenses and other liabilities	3,725	5,937
Deferred revenue	1,855	2,815
Total current liabilities	9,319	11,713
Income taxes payable	798	780
Total liabilities	$ 10,117	$ 12,493
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: 22,683,866 and 23,128,372 shares, respectively	$ 23	$ 23
Additional paid-in capital	27,882	29,407
Accumulated other comprehensive income	9	26
Retained earnings	65,676	66,940
Total stockholders' equity	93,590	96,396
Total liabilities and stockholders' equity	$ 103,707	$ 108,889

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Mar. 31, 2015
Stockholders' Equity
Preferred stock, par value	$ 0.001	$ 0.001
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	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	22,683,866	23,128,372
Common stock, shares outstanding	22,683,866	23,128,372

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement
Net revenues	$ 13,577	$ 13,263	$ 27,602	$ 26,208
Cost of revenues	6,660	7,202	13,390	14,208
Gross profit	6,917	6,061	14,212	12,000
Operating expenses:
Research and development	2,940	2,946	5,938	6,019
Selling, general and administrative	4,274	4,156	9,579	8,491
Total operating expenses	7,214	7,102	15,517	14,510
Loss from operations	(297)	(1,041)	(1,305)	(2,510)
Interest income, net	71	78	151	174
Other income (expense), net	(92)	34	(56)	9
Loss before income taxes	(318)	(929)	(1,210)	(2,327)
Provision for income taxes	29	21	54	69
Net loss	$ (347)	$ (950)	$ (1,264)	$ (2,396)
Net loss per share:
Basic	$ (0.02)	$ (0.04)	$ (0.06)	$ (0.09)
Diluted	$ (0.02)	$ (0.04)	$ (0.06)	$ (0.09)
Weighted average shares used in per share calculations:
Basic	22,676	25,540	22,809	26,512
Diluted	22,676	25,540	22,809	26,512

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Consolidated Statements Of Comprehensive Loss
Net loss	$ (347)	$ (950)	$ (1,264)	$ (2,396)
Net unrealized loss on available-for-sale investments, net of tax	(12)	(40)	(17)	(36)
Total comprehensive loss	$ (359)	$ (990)	$ (1,281)	$ (2,432)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (1,264)	$ (2,396)
Adjustments to reconcile net loss to net cash used in operating activities:
Allowance for sales returns, doubtful accounts and other	(3)	(5)
Provision for excess and obsolete inventories	659	622
Depreciation and amortization	651	931
Stock-based compensation	973	1,144
Amortization of bond premium on investments	145	340
Changes in assets and liabilities:
Accounts receivable	2,109	413
Inventory	(883)	(1,677)
Prepaid expenses and other assets	(152)	(334)
Accounts payable	784	(1,146)
Accrued expenses and other liabilities	(2,194)	(175)
Deferred revenue	(960)	577
Net cash used in operating activities	(135)	(1,706)
Cash flows from investing activities:
Purchase of investments	(9,026)	(4,000)
Sales and maturities of short-term investments	14,335	24,873
Purchases of property and equipment	(31)	(160)
Net cash provided by investing activities	5,278	20,713
Cash flows from financing activities:
Repurchase of common stock	(3,074)	(26,430)
Proceeds from issuance of common stock under employee stock plans	576	663
Net cash used in financing activities	(2,498)	(25,767)
Net increase (decrease) in cash and cash equivalents	2,645	(6,760)
Cash and cash equivalents at beginning of the year	36,776	41,520
Cash and cash equivalents at end of the period	39,421	34,760
Non-cash financing activities:
Purchases of property and equipment through accounts payable and accruals		5
Supplemental cash flow information:
Net cash paid (received) for income taxes	$ (97)	$ 52

1. THE COMPANY AND SUMMARY OF S

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Sep. 30, 2015
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, 2015. The consolidated results of operations for the three months and six months ended September 30, 2015 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, 2015. Litigation and settlement costs From time to time, the Company is involved in legal actions. See Note 6 for information regarding litigation that was resolved during the six months ended September 30, 2015 . Recent accounting pronouncements In July 2015, the Financial Acco unting Standards Board (“FASB”) issued ASU No. 2015-11, " Simplifying the Measurement of Inventory". This standard update intends to simplify the subsequent measurement of inventory, excluding inventory accounted for under the last-in, first-out or the retail inventory methods. The update replaces the current lower of cost or market test with a lower of cost and net realizable value test. Under the current guidance, market could be replacement cost, net realizable value or net realizable value less an approximately normal profit margin. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The update is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard on its consolidated financial statements . In August 2014, the 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 consolidated financial statements. 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, 2017. Early adoption is permitted for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. ASU No. 2014-09 provides for one of two methods of transition: retrospective application to each prior period presented; or, recognition of the cumulative effect of retrospective application of the new standard in the period of initial application. The Company is currently evaluating the impact of this accounting standard on its consolidated financial statements.

2. NET LOSS PER COMMON SHARE

2. NET LOSS PER COMMON SHARE	6 Months Ended
	Sep. 30, 2015
NET LOSS PER COMMON SHARE
NOTE 2 - NET LOSS PER COMMON SHARE	NOTE 2—NET LOSS PER COMMON SHARE The Company uses the treasury stock method to calculate the weighted average shares used in computing diluted net loss per share. The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 (In thousands, except per share amounts) Net loss $ $ $ $ Denominators: Weighted average shares—Basic Dilutive effect of employee stock options — — — — Weighted average shares—Dilutive Net loss per common share—Basic $ $ $ Net loss per common share—Diluted $ $ $ The following shares of common stock underlying outstanding stock options, determined on a weighted average basis, were excluded from the computation of diluted net loss per share as they had an anti-dilutive effect: Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 (In thousands) Shares underlying options

3. BALANCE SHEET DETAIL

3. BALANCE SHEET DETAIL	6 Months Ended
	Sep. 30, 2015
Balance Sheet Detail
NOTE 3 - BALANCE SHEET DETAIL	NOTE 3—BALANCE SHEET DETAIL September 30, 2015 March 31, 2015 (In thousands) Inventories: Work-in-progress $ $ Finished goods Inventory at distributors $ $ September 30, 2015 March 31, 2015 (In thousands) Accounts receivable, net: Accounts receivable $ $ Less: Allowances for sales returns, doubtful accounts and other $ $ September 30, 2015 March 31, 2015 (In thousands) Prepaid expenses and other current assets: Prepaid tooling and masks $ $ Prepaid income taxes — Other receivables Other prepaid expenses $ $ September 30, 2015 March 31, 2015 (In thousands) Property and equipment, net: Computer and other equipment $ $ Software Land Building and building improvements Furniture and fixtures Leasehold improvements Less: Accumulated depreciation and amortization $ $ Depreciation and amortization expense was $277,000 and $377,000 , respectively, for the three months ended September 30, 2015 and 2014 and $569,000 and $842,000 , respectively , for the six months ended September 30, 2015 and 2014. September 30, 2015 March 31, 2015 (In thousands) Other assets: Non-current deferred income taxes $ $ Intangibles, net Deposits $ $ The following table summarizes the components of intangible assets and related accumulated amortization balances at September 30, 2015 (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: Product designs $ $ $ Patents Software — Total $ $ $ Amortization of intangible assets included in cost of revenues was $41,000 and $44,000 , respectively, for the three months ended September 30, 2015 and 2014 and $82,000 and $89,000 , respectively, for the six months ended September 30, 2015 and 2014. September 30, 2015 March 31, 2015 (In thousands) Accrued expenses and other liabilities: Accrued compensation $ $ Accrued professional fees Accrued commissions Other accrued expenses $ $

4. INCOME TAXES

4. INCOME TAXES	6 Months Ended
	Sep. 30, 2015
Income Taxes
NOTE 4-INCOME TAXES	NOTE 4—INCOME TAXES The current portion of the Company’s unrecognized tax benefits was $0 at both September 30, 2015 and March 31, 2015. The long-term portion at September 30, 2015 and March 31, 2015 was $798,000 and $780,000 , respectively, of which the timing of the resolution is uncertain. As of September 30, 2015, $1,359,000 of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets. As of September 30, 2015 and March 31, 2015, the Company’s net deferred tax assets of $6.5 million and $6.0 million , respectively, were subject to a full valuation allowance. 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 2015 remain open to examination by federal tax authorities, and fiscal years 2011 through 2015 remain open to examination by California tax authorities . The Company’s estimated annual effective income tax rate was approximately 3.5% and 4.5% as of September 30, 2015 and 2014, respectively. The annual effective tax rate as of September 30, 2015 and 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 and the foreign tax differential.

5. FINANCIAL INSTRUMENTS

5. FINANCIAL INSTRUMENTS	6 Months Ended
	Sep. 30, 2015
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 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 September 30, 2015, the Level 1 category included money market funds of $5. 1 million, which were included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. 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 September 30, 2015, the Level 2 category included short-term investments of $20.9 million and long-term investments of $17.5 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 September 30, 2015, the Company had no Level 3 financia l assets . As of September 30, 2015, 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 September 30, 2015 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ $ $ — $ — Marketable securities — — Total $ $ $ $ — Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Observable Inputs Significant Unobservable Inputs March 31, 2015 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ $ $ — $ — Marketable securities — — Total $ $ $ $ — 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 $ 5.1 million and $4.4 million at September 30, 2015 and March 31, 2015, respectively, included in cash and cash equivalents on the Condensed Consolidated Balance Sheet s . 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: September 30, 2015 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: State and municipal obligations $ $ $ — $ Corporate notes Certificates of deposit — Foreign government obligations — Agency bonds — Total short-term investments $ $ $ $ Long-term investments: Corporate notes $ $ — $ $ Certificates of deposit Agency bonds — Total long-term investments $ $ $ $ March 31, 2015 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: State and municipal obligations $ $ — $ — $ Corporate notes — Agency bonds — — Certificates of deposit — Total short-term investments $ $ $ — $ Long-term investments: State and municipal obligations $ $ $ — $ Corporate notes — Certificates of deposit Agency bonds Foreign government obligations — Total long-term investments $ $ $ $ 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 liability related to unrecognized gains and losses on short-term and long-term investments was $6,000 at September 30, 2015 and $11,000 at March 31, 2015. As of September 30, 2015, contractual maturities of the Company’s available-for-sale investments were as follows: Fair Cost Value (In thousands) Maturing within one year $ $ Maturing in one to three years Maturing in more than three years — — $ $ 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	6 Months Ended
	Sep. 30, 2015
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 material for the three months or six months ended September 30, 2015 or 2014. 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 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 sought 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. The Company did not record any loss contingency during fiscal 2013, fiscal 2014 or fiscal 2015 in connection with these legal proceedings as the Company was unable to predict their outcome and could not estimate the likelihood or potential dollar amount of any adverse results. On May 6, 2015, the Company and Cypress entered into a settlement agreement to resolve the patent infringement litigation and a separate lawsuit pending in the United States District Court for the Northern District of California in which the Company alleged that Cypress had violated federal and state antitrust laws. Under the settlement agreement: · Each of the parties agreed to dismiss its lawsuit with prejudice in consideration of the dismissal with prejudice of the lawsuit brought by the other party; and · Each party agreed to release all claims against the other with respect to issues raised in the two lawsuits. The parties agreed that the settlement agreement was entered into to resolve disputed claims, and that each party denies any liability to the other party.

7. STOCK- BASED COMPENSATION

7. STOCK- BASED COMPENSATION	6 Months Ended
	Sep. 30, 2015
Stock-Based Compensation
NOTE 7-STOCK- BASED COMPENSATION	NOTE 7—STOCK-BASED COMPENSATION As of September 30, 2015, 6, 833,823 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 six months ended September 30, 2015: 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, 2015 $ Options reserved — — Granted Exercised — $ Forfeited/expired Balance at September 30, 2015 $ Options vested and exercisable $ $ Options vested and expected to vest $ $ The weighted average fair value per underlying share of options granted during the three months ended September 30, 2015 and 2014 was $1.72 and $2.14 , respectively and for the six months ended September 30, 2015 and 2014 was $1.74 and $2.16 , respectively. Options outstanding by exercise price at September 30, 2015 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 $ $ $ 3.75 - 4.00 $ $ $ 4.17 - 4.81 $ $ $ 4.90 - 4.98 $ $ $ 5.13 - 5.34 $ $ $ 5.50 $ $ $ 5.59 - 6.00 $ $ $ 6.28 - 6.63 $ $ $ 6.82 - 7.00 $ $ $ 9.20 $ $ $ $ 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 September 30, Six Months Ended September 30, 2015 2014 2015 2014 (In thousands) Cost of revenues $ $ $ $ Research and development Selling, general and administrative Total $ $ $ $ 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. No tax benefit related to stock-based compensation was recognized in the three months or six months ended September 30, 2015 or September 30, 2014 due to a full valuation allowance. There were no windfall tax benefits realized from exercised stock options in any of these period s . Compensation cost capitalized within inventory at September 30, 2015 was immaterial. As of September 30, 2015, the Company’s total unrecognized compensation cost was $3.3 million, which will be recognized over a weighted average period of 2.11 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 September 30, Six Months Ended September 30, 2015 2014 2015 2014 (In thousands) (In thousands) Stock Option Plans: Risk-free interest rate % % - % - % Expected life (in years) Volatility % % - % - % Dividend yield — % — % — % — % Employee Stock Purchase Plan: Risk-free interest rate — % — % % % Expected life (in years) — — Volatility — % — % % % Dividend yield — % — % — % — %

8. SEGMENT AND GEOGRAPHIC INFOR

8. SEGMENT AND GEOGRAPHIC INFORMATION	6 Months Ended
	Sep. 30, 2015
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 September 30, Six Months Ended September 30, 2015 2014 2015 2014 (In thousands) United States $ $ $ $ China Malaysia Singapore Netherlands Rest of the world $ $ $ $ All sales are denominated in United States dollars.

1. THE COMPANY AND SUMMARY OF15

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Sep. 30, 2015
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, 2015. The consolidated results of operations for the three months and six months ended September 30, 2015 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, 2015.
Litigation and settlement costs	Litigation and settlement costs From time to time, the Company is involved in legal actions. See Note 6 for information regarding litigation that was resolved during the six months ended September 30, 2015 .
Recent accounting pronouncements	Recent accounting pronouncements In July 2015, the Financial Acco unting Standards Board (“FASB”) issued ASU No. 2015-11, " Simplifying the Measurement of Inventory". This standard update intends to simplify the subsequent measurement of inventory, excluding inventory accounted for under the last-in, first-out or the retail inventory methods. The update replaces the current lower of cost or market test with a lower of cost and net realizable value test. Under the current guidance, market could be replacement cost, net realizable value or net realizable value less an approximately normal profit margin. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The update is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard on its consolidated financial statements . In August 2014, the 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 consolidated financial statements. 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, 2017. Early adoption is permitted for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. ASU No. 2014-09 provides for one of two methods of transition: retrospective application to each prior period presented; or, recognition of the cumulative effect of retrospective application of the new standard in the period of initial application. The Company is currently evaluating the impact of this accounting standard on its consolidated financial statements.

2. NET LOSS PER COMMON SHARE (T

2. NET LOSS PER COMMON SHARE (Tables)	6 Months Ended
	Sep. 30, 2015
NET LOSS PER COMMON SHARE
Basic and diluted net loss per share	Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 (In thousands, except per share amounts) Net loss $ $ $ $ Denominators: Weighted average shares—Basic Dilutive effect of employee stock options — — — — Weighted average shares—Dilutive Net loss per common share—Basic $ $ $ Net loss per common share—Diluted $ $ $
Anti-dilutive shares	Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 (In thousands) Shares underlying options

3. BALANCE SHEET DETAIL (Tables

3. BALANCE SHEET DETAIL (Tables)	6 Months Ended
	Sep. 30, 2015
Balance Sheet Detail
Schedule of Inventories	September 30, 2015 March 31, 2015 (In thousands) Inventories: Work-in-progress $ $ Finished goods Inventory at distributors $ $
Schedule of Accounts Receivable, Net	September 30, 2015 March 31, 2015 (In thousands) Accounts receivable, net: Accounts receivable $ $ Less: Allowances for sales returns, doubtful accounts and other $ $
Schedule of Prepaid Expenses and Other Current Assets	September 30, 2015 March 31, 2015 (In thousands) Prepaid expenses and other current assets: Prepaid tooling and masks $ $ Prepaid income taxes — Other receivables Other prepaid expenses $ $
Schedule of Property and Equipment, Net	September 30, 2015 March 31, 2015 (In thousands) Property and equipment, net: Computer and other equipment $ $ Software Land Building and building improvements Furniture and fixtures Leasehold improvements Less: Accumulated depreciation and amortization $ $
Schedule of Other Assets	September 30, 2015 March 31, 2015 (In thousands) Other assets: Non-current deferred income taxes $ $ Intangibles, net Deposits $ $
Schedule of Intangible Assets	The following table summarizes the components of intangible assets and related accumulated amortization balances at September 30, 2015 (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: Product designs $ $ $ Patents Software — Total $ $ $
Schedule of Accrued Expenses and Other Liabilities	September 30, 2015 March 31, 2015 (In thousands) Accrued expenses and other liabilities: Accrued compensation $ $ Accrued professional fees Accrued commissions Other accrued expenses $ $

5. FINANCIAL INSTRUMENTS (Table

5. FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Sep. 30, 2015
Financial Instruments.
Schedule of Fair value of financial assets and liabilities 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 September 30, 2015 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ $ $ — $ — Marketable securities — — Total $ $ $ $ — Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Observable Inputs Significant Unobservable Inputs March 31, 2015 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ $ $ — $ — Marketable securities — — Total $ $ $ $ —
Schedule of Available-for-sale investments	September 30, 2015 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: State and municipal obligations $ $ $ — $ Corporate notes Certificates of deposit — Foreign government obligations — Agency bonds — Total short-term investments $ $ $ $ Long-term investments: Corporate notes $ $ — $ $ Certificates of deposit Agency bonds — Total long-term investments $ $ $ $ March 31, 2015 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: State and municipal obligations $ $ — $ — $ Corporate notes — Agency bonds — — Certificates of deposit — Total short-term investments $ $ $ — $ Long-term investments: State and municipal obligations $ $ $ — $ Corporate notes — Certificates of deposit Agency bonds Foreign government obligations — Total long-term investments $ $ $ $
Schedule of Contractual maturities of the available-for-sale non-equity investments	Fair Cost Value (In thousands) Maturing within one year $ $ Maturing in one to three years Maturing in more than three years — — $ $

7. STOCK- BASED COMPENSATION (T

7. STOCK- BASED COMPENSATION (Tables)	6 Months Ended
	Sep. 30, 2015
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, 2015 $ Options reserved — — Granted Exercised — $ Forfeited/expired Balance at September 30, 2015 $ Options vested and exercisable $ $ Options vested and expected to vest $ $
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 $ $ $ 3.75 - 4.00 $ $ $ 4.17 - 4.81 $ $ $ 4.90 - 4.98 $ $ $ 5.13 - 5.34 $ $ $ 5.50 $ $ $ 5.59 - 6.00 $ $ $ 6.28 - 6.63 $ $ $ 6.82 - 7.00 $ $ $ 9.20 $ $ $ $
Summary of stock-based compensation expense by line item	Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 (In thousands) Cost of revenues $ $ $ $ Research and development Selling, general and administrative Total $ $ $ $
Schedule of weighted average assumptions	Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 (In thousands) (In thousands) Stock Option Plans: Risk-free interest rate % % - % - % Expected life (in years) Volatility % % - % - % Dividend yield — % — % — % — % Employee Stock Purchase Plan: Risk-free interest rate — % — % % % Expected life (in years) — — Volatility — % — % % % Dividend yield — % — % — % — %

8. SEGMENT AND GEOGRAPHIC INF20

8. SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	6 Months Ended
	Sep. 30, 2015
Segment And Geographic Information
Net revenues by geographic area	Three Months Ended September 30, Six Months Ended September 30, 2015 2014 2015 2014 (In thousands) United States $ $ $ $ China Malaysia Singapore Netherlands Rest of the world $ $ $ $

2. NET LOSS PER COMMON SHARE (D

2. NET LOSS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
NET LOSS PER COMMON SHARE
Net loss	$ (347)	$ (950)	$ (1,264)	$ (2,396)
Weighted average shares-Basic	22,676	25,540	22,809	26,512
Weighted average shares-Dilutive	22,676	25,540	22,809	26,512
Net loss per common share - Basic	$ (0.02)	$ (0.04)	$ (0.06)	$ (0.09)
Net loss per common share - Diluted	$ (0.02)	$ (0.04)	$ (0.06)	$ (0.09)

2. NET LOSS PER COMMON SHARE 22

2. NET LOSS PER COMMON SHARE (Details 2) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
NET LOSS PER COMMON SHARE
Antidilutive shares excluded from computation of EPS	5,317	3,503	5,067	3,375

3. BALANCE SHEET DETAIL (Detail

3. BALANCE SHEET DETAIL (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Mar. 31, 2015
Inventories:
Work-in-progress	$ 2,333	$ 2,422
Finished goods	5,919	5,362
Inventory at distributors	384	628
Total Inventory	$ 8,636	$ 8,412

3. BALANCE SHEET DETAIL (Deta24

3. BALANCE SHEET DETAIL (Details 2) - USD ($) $ in Thousands	Sep. 30, 2015	Mar. 31, 2015
Accounts receivable, net:
Accounts receivable	$ 6,251	$ 8,360
Less: Allowances for sales returns, doubtful accounts and other	(100)	(103)
Total accounts receivable, net	$ 6,151	$ 8,257

3. BALANCE SHEET DETAIL (Deta25

3. BALANCE SHEET DETAIL (Details 3) - USD ($) $ in Thousands	Sep. 30, 2015	Mar. 31, 2015
Prepaid expenses and other current assets:
Prepaid tooling and masks	$ 1,557	$ 1,208
Prepaid income taxes		139
Other receivables	270	350
Other prepaid expenses	604	600
Total prepaid expenses and other current assets	$ 2,431	$ 2,297

3.BALANCE SHEET DETAIL - Proper

3.BALANCE SHEET DETAIL - Property, Plant and Equipment (Details 4) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Property and equipment, net:
Property and equipment, gross	$ 29,137,000		$ 29,137,000		$ 29,113,000
Less: Accumulated depreciation and amortization	(20,973,000)		(20,973,000)		(20,405,000)
Property, Plant and Equipment, Net, Total	8,164,000		8,164,000		8,708,000
Depreciation and amortization	277,000	$ 377,000	569,000	$ 842,000
Computer and other equipment
Property and equipment, net:
Property and equipment, gross	17,288,000		17,288,000		17,264,000
Software
Property and equipment, net:
Property and equipment, gross	4,792,000		4,792,000		4,792,000
Land
Property and equipment, net:
Property and equipment, gross	3,900,000		3,900,000		3,900,000
Building and building improvements
Property and equipment, net:
Property and equipment, gross	2,256,000		2,256,000		2,256,000
Furniture and fixtures
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 (Deta27

3. BALANCE SHEET DETAIL (Details 5) - USD ($) $ in Thousands	Sep. 30, 2015	Mar. 31, 2015
Other assets:
Non-current deferred income taxes	$ 48	$ 27
Intangibles, net	311	393
Deposits	75	78
Total Other Assets	$ 434	$ 498

3. BALANCE SHEET DETAIL (Deta28

3. BALANCE SHEET DETAIL (Details 6) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Gross Carrying Amount	$ 1,390,000		$ 1,390,000
Accumulated Amortization	1,079,000		1,079,000
Net Carrying Amount	311,000		311,000		$ 393,000
Amortization of intangible assets	41,000	$ 44,000	82,000	$ 89,000
Product designs
Gross Carrying Amount	590,000		590,000
Accumulated Amortization	512,000		512,000
Net Carrying Amount	78,000		78,000
Patents
Gross Carrying Amount	720,000		720,000
Accumulated Amortization	487,000		487,000
Net Carrying Amount	233,000		233,000
Software.
Gross Carrying Amount	80,000		80,000
Accumulated Amortization	$ 80,000		$ 80,000

3. BALANCE SHEET DETAIL (Deta29

3. BALANCE SHEET DETAIL (Details 7) - USD ($) $ in Thousands	Sep. 30, 2015	Mar. 31, 2015
Accrued expenses and other liabilities:
Accrued compensation	$ 2,452	$ 3,386
Accrued professional fees	100	1,380
Accrued commissions	283	268
Other accrued expenses	890	903
Total Accrued Expenses and Other Liabilities	$ 3,725	$ 5,937

4. INCOME TAXES (Details 4)

4. INCOME TAXES (Details 4) - USD ($)	6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015
Income Taxes
Unrecognized tax benefits, current	$ 0		$ 0
Unrecognized tax benefits, noncurrent	798,000		780,000
Deferred tax assets unrecognized tax benefit	1,359,000
Deferred tax assets net of liabilities	6,500,000		$ 6,000,000
Possible reduction in uncertain tax benefits	$ 729,000
Effective annual income tax rate	3.50%	4.50%

5. FINANCIAL INSTRUMENTS (Detai

5. FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Mar. 31, 2015
Fair value measurements
Short-term investments	$ 20,929	$ 22,201
Long-term investments	17,541	21,740
Recurring
Fair value measurements
Money market funds included in cash and cash equivalents	5,096	4,409
Marketable securities	38,470	43,941
Assets	43,566	48,350
Liabilities	0
Recurring | Level 1
Fair value measurements
Money market funds included in cash and cash equivalents	5,096	4,409
Assets	5,096	4,409
Recurring | Level 2
Fair value measurements
Marketable securities	38,470	43,941
Assets	38,470	$ 43,941
Recurring | Level 3
Fair value measurements
Assets	$ 0

5. FINANCIAL INSTRUMENTS (Det32

5. FINANCIAL INSTRUMENTS (Details 2) - USD ($)	6 Months Ended
	Sep. 30, 2015	Mar. 31, 2015
Available-for-sale investments
Cost	$ 38,451,000
Fair Value	$ 38,470,000
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	$ 6,000	$ 11,000
Short-term investments
Available-for-sale investments
Cost	20,915,000	22,182,000
Gross Unrealized Gains	17,000	19,000
Gross Unrealized Losses	(3,000)
Fair Value	20,929,000	22,201,000
Short-term investments | State and municipal obligations
Available-for-sale investments
Cost	1,032,000	6,810,000
Gross Unrealized Gains	4,000
Fair Value	1,036,000	6,810,000
Short-term investments | Corporate notes
Available-for-sale investments
Cost	6,940,000	7,366,000
Gross Unrealized Gains	1,000	10,000
Gross Unrealized Losses	(3,000)
Fair Value	6,938,000	7,376,000
Short-term investments | Agency bonds
Available-for-sale investments
Cost	2,003,000	1,006,000
Gross Unrealized Gains	2,000
Fair Value	2,005,000	1,006,000
Short-term investments | Certificates of deposits
Available-for-sale investments
Cost	8,250,000	7,000,000
Gross Unrealized Gains	8,000	9,000
Fair Value	8,258,000	7,009,000
Short-term investments | International government obligations
Available-for-sale investments
Cost	2,690,000
Gross Unrealized Gains	2,000
Fair Value	2,692,000
Long-term investment
Available-for-sale investments
Cost	17,536,000	21,722,000
Gross Unrealized Gains	20,000	32,000
Gross Unrealized Losses	(15,000)	(14,000)
Fair Value	17,541,000	21,740,000
Long-term investment | State and municipal obligations
Available-for-sale investments
Cost		1,053,000
Gross Unrealized Gains		4,000
Fair Value		1,057,000
Long-term investment | Corporate notes
Available-for-sale investments
Cost	2,784,000	4,232,000
Gross Unrealized Losses	(8,000)	(10,000)
Fair Value	2,776,000	4,222,000
Long-term investment | Agency bonds
Available-for-sale investments
Cost	2,002,000	4,003,000
Gross Unrealized Gains	6,000	4,000
Gross Unrealized Losses		(2,000)
Fair Value	2,008,000	4,005,000
Long-term investment | Certificates of deposits
Available-for-sale investments
Cost	12,750,000	9,750,000
Gross Unrealized Gains	14,000	24,000
Gross Unrealized Losses	(7,000)	(1,000)
Fair Value	$ 12,757,000	9,773,000
Long-term investment | International government obligations
Available-for-sale investments
Cost		2,684,000
Gross Unrealized Losses		(1,000)
Fair Value		$ 2,683,000

5. FINANCIAL INSTRUMENTS (Det33

5. FINANCIAL INSTRUMENTS (Details 3) $ in Thousands	Sep. 30, 2015USD ($)
Financial Instruments.
Maturing within one year, Cost	$ 20,915
Maturing in one to three years, Cost	17,536
Total	38,451
Maturing within one year, Fair Value	20,929
Maturing in one to three years, Fair Value	17,541
Fair Value	$ 38,470

6-COMMITMENTS AND CONTINGENCIES

6-COMMITMENTS AND CONTINGENCIES - Royalties and Product Warranties (Details)	6 Months Ended
	Sep. 30, 2015
Product warranties
Warranty period	3 years

6-COMMITMENTS AND CONTINGENCI35

6-COMMITMENTS AND CONTINGENCIES - Legal proceedings (Details)	6 Months Ended
	Sep. 30, 2015lawsuititemcustomerpatent
Legal proceedings
Number of lawsuits | lawsuit	2
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 | item	3
Number of customers who infringed patents | customer	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 (D

7. STOCK- BASED COMPENSATION (Details)	6 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Stock-Based Compensation
Shares available for grant, Beginning	6,213,943
Options reserved (in shares)	1,156,419
Granted (in shares)	(546,403)
Forfeited/expired (in shares)	9,864
Shares available for grant, Ending	6,833,823
Number of Shares Underlying Options Outstanding
Balance at the beginning of the period (in shares)	6,774,151
Granted (in shares)	546,403
Exercised (in shares)	(73,745)
Forfeited (in shares)	(19,864)
Balance at the end of the period (in shares)	7,226,945
Options vested and exercisable (in shares)	4,856,795
Options vested and expected to vest (in shares)	7,176,400
Weighted Average Remaining Contractual Life
Options vested and exercisable (in dollars per share)	3 years 11 months 27 days
Options vested and expected to vest (in dollars per share)	5 years 4 months 24 days
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share) | $ / shares	$ 5.16
Granted (in dollars per share) | $ / shares	5.01
Exercised (in dollars per share) | $ / shares	4.24
Forfeited (in dollars per share) | $ / shares	4.64
Balance at the end of the period (in dollars per share) | $ / shares	5.16
Options vested and exercisable (in dollars per share) | $ / shares	5.04
Options vested and expected to vest (in dollars per share) | $ / shares	$ 5.16
Intrinsic Value
Exercised (in dollars) | $	$ 42,743
Options vested and exercisable (in dollars) | $	875,022
Options vested and expected to vest (in dollars) | $	$ 875,022

7. STOCK- BASED COMPENSATION 37

7. STOCK- BASED COMPENSATION (Details 2) - $ / shares	6 Months Ended
	Sep. 30, 2015	Mar. 31, 2015
Options outstanding by exercise price
Exercise Price (in dollars per share)	$ 5.16	$ 5.16
Number of Shares Underlying Options Outstanding (in shares)	7,226,945
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.16
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 5 months 1 day
Options Exercisable, Number Vested and Exercisable (in shares)	4,856,795
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.04
$2.43 - $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)	895,584
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.18
Options Outstanding, Weighted Average Remaining Contractual Life	3 years 4 months 6 days
Options Exercisable, Number Vested and Exercisable (in shares)	895,584
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.18
$3.75 - $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	3 years 5 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 - $4.81
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)	$ 4.81
Number of Shares Underlying Options Outstanding (in shares)	836,528
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 4.42
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 9 months 22 days
Options Exercisable, Number Vested and Exercisable (in shares)	449,647
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 4.41
$4.90 - $4.98
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	4.90
Exercise Price, high end of range (in dollars per share)	$ 4.98
Number of Shares Underlying Options Outstanding (in shares)	793,963
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 4.95
Options Outstanding, Weighted Average Remaining Contractual Life	8 years 5 months 16 days
Options Exercisable, Number Vested and Exercisable (in shares)	237,507
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 4.90
$5.13 - $5.34
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	5.13
Exercise Price, high end of range (in dollars per share)	$ 5.34
Number of Shares Underlying Options Outstanding (in shares)	625,513
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.23
Options Outstanding, Weighted Average Remaining Contractual Life	8 years 11 months 27 days
Options Exercisable, Number Vested and Exercisable (in shares)	29,528
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.23
$ 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 1 month 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 - $6.00
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)	$ 6
Number of Shares Underlying Options Outstanding (in shares)	901,930
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.77
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 9 months 11 days
Options Exercisable, Number Vested and Exercisable (in shares)	532,248
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.81
$6.28 - $6.63
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	6.28
Exercise Price, high end of range (in dollars per share)	$ 6.63
Number of Shares Underlying Options Outstanding (in shares)	812,219
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 6.48
Options Outstanding, Weighted Average Remaining Contractual Life	6 years 7 months 13 days
Options Exercisable, Number Vested and Exercisable (in shares)	603,780
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 6.46
$6.82 - $7.00
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	6.82
Exercise Price, high end of range (in dollars per share)	$ 7
Number of Shares Underlying Options Outstanding (in shares)	651,376
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 6.90
Options Outstanding, Weighted Average Remaining Contractual Life	6 years 3 months 22 days
Options Exercisable, Number Vested and Exercisable (in shares)	398,669
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 6.92
$ 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	5 years 3 months 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 38

7. STOCK- BASED COMPENSATION (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock-based compensation expense by line item
Stock-based compensation expense	$ 499	$ 571	$ 973	$ 1,144
Other information
Income tax benefit recognized from allocation of share-based compensation expense	0	0	0	0
Windfall tax benefits recognized	0	0
Unrecognized compensation costs	3,300		$ 3,300
Weighted average period of recognition of unrecognized compensation costs			2 years 1 month 10 days
Cost of revenues
Stock-based compensation expense by line item
Stock-based compensation expense	88	104	$ 157	204
Research and Development Expense
Stock-based compensation expense by line item
Stock-based compensation expense	224	248	441	489
Selling, general and administrative
Stock-based compensation expense by line item
Stock-based compensation expense	$ 187	$ 219	$ 375	$ 451

7. STOCK- BASED COMPENSATION 39

7. STOCK- BASED COMPENSATION (Details 4) - $ / shares	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock-based compensation
Weighted average fair value per underlying share of options granted (in dollars per share)	$ 1.72	$ 2.14	$ 1.74	$ 2.16
Employee Consultants And Directors Stock Options
Stock-based compensation
Risk-free interest rate (as a percent)	1.57%	1.70%
Risk-free interest rate, low end of range (as a percent)			1.52%	1.66%
Risk-free interest rate, high end of range (as a percent)			1.57%	1.70%
Expected life	5 years	5 years	5 years	5 years
Volatility (as a percent)	36.80%	44.80%
Volatility, low end of range (as a percent)			36.80%	44.50%
Volatility, high end of range (as a percent)			38.00%	44.80%
Dividend yield (as a percent)	0.00%	0.00%	0.00%	0.00%
Employee stock purchase plan
Stock-based compensation
Risk-free interest rate (as a percent)			0.09%	0.05%
Expected life			6 months	6 months
Volatility (as a percent)			26.30%	30.80%
Dividend yield (as a percent)	0.00%	0.00%	0.00%	0.00%

8. SEGMENT AND GEOGRAPHIC INF40

8. SEGMENT AND GEOGRAPHIC INFORMATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)segment	Sep. 30, 2014USD ($)
Net revenues by geographic area
Revenue, Net	$ 13,577	$ 13,263	$ 27,602	$ 26,208
Number of reportable business segments | segment			1
United States
Net revenues by geographic area
Revenue, Net	5,303	4,777	$ 11,251	8,394
China
Net revenues by geographic area
Revenue, Net	3,310	3,708	7,109	7,239
Malaysia
Net revenues by geographic area
Revenue, Net	5	1,098	5	2,700
Singapore
Net revenues by geographic area
Revenue, Net	1,601	1,833	2,998	3,500
Netherlands
Net revenues by geographic area
Revenue, Net	1,857	456	3,555	1,471
Rest of the world
Net revenues by geographic area
Revenue, Net	$ 1,501	$ 1,391	$ 2,684	$ 2,904