GSI Technology (GSIT) 10-Q 4 Nov 16 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
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, 2016
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		20,225,043
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Mar. 31, 2016
ASSETS
Cash and cash equivalents	$ 28,803	$ 31,963
Short-term investments	19,030	23,149
Accounts receivable, net	8,807	7,478
Inventories	8,978	7,174
Prepaid expenses and other current assets	2,217	2,198
Total current assets	67,835	71,962
Property and equipment, net	8,198	8,653
Long-term investments	12,533	11,148
Goodwill	7,978	8,030
Intangible assets, net	3,459	3,651
Other assets	3,226	3,086
Total assets	103,229	106,530
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	3,205	2,514
Accrued expenses and other liabilities	6,280	4,398
Deferred revenue	1,611	2,330
Total current liabilities	11,096	9,242
Income taxes payable	254	116
Long term deferred income taxes		811
Other accrued expenses	6,306	6,492
Total liabilities	17,656	16,661
Commitments and contingencies (Note 7)
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: 20,325,043 and 21,716,364 shares, respectively	20	22
Additional paid-in capital	19,881	25,050
Accumulated other comprehensive income	16	27
Retained earnings	65,656	64,770
Total stockholders' equity	85,573	89,869
Total liabilities and stockholders' equity	$ 103,229	$ 106,530

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2016	Mar. 31, 2016
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	20,325,043	21,716,364
Common stock, shares outstanding	20,325,043	21,716,364

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement
Net revenues	$ 13,358	$ 13,577	$ 26,304	$ 27,602
Cost of revenues	6,015	6,660	12,239	13,390
Gross profit	7,343	6,917	14,065	14,212
Operating expenses:
Research and development	4,282	2,940	7,781	5,938
Selling, general and administrative	2,681	4,274	5,515	9,579
Total operating expenses	6,963	7,214	13,296	15,517
Income (loss) from operations	380	(297)	769	(1,305)
Interest income, net	69	71	146	151
Other income (expense), net	23	(92)	88	(56)
Income (loss) before income taxes	472	(318)	1,003	(1,210)
Provision (benefit) for income taxes	(154)	29	117	54
Net income (loss)	$ 626	$ (347)	$ 886	$ (1,264)
Net income (loss) per share:
Basic	$ 0.03	$ (0.02)	$ 0.04	$ (0.06)
Diluted	$ 0.03	$ (0.02)	$ 0.04	$ (0.06)
Weighted average shares used in per share calculations:
Basic	20,529	22,676	20,912	22,809
Diluted	21,104	22,676	21,349	22,809

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Consolidated Statements Of Comprehensive Income ( Loss)
Net income (loss)	$ 626	$ (347)	$ 886	$ (1,264)
Net unrealized loss on available-for-sale investments, net of tax	(18)	(12)	(11)	(17)
Total comprehensive income (loss)	$ 608	$ (359)	$ 875	$ (1,281)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ 886	$ (1,264)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Allowance for sales returns, doubtful accounts and other	3	(3)
Provision for excess and obsolete inventories	333	659
Depreciation and amortization	821	651
Stock-based compensation	930	973
Amortization of premium on investments	33	145
Changes in assets and liabilities:
Accounts receivable	(1,332)	2,109
Inventory	(2,137)	(883)
Prepaid expenses and other assets	(107)	(152)
Accounts payable	685	784
Accrued expenses and other liabilities	1,023	(2,194)
Deferred revenue	(719)	(960)
Net cash provided by (used in) operating activities	419	(135)
Cash flows from investing activities:
Purchase of investments	(9,410)	(9,026)
Sales and maturities of short-term investments	12,100	14,335
Purchases of property and equipment	(168)	(31)
Net cash provided by investing activities	2,522	5,278
Cash flows from financing activities:
Repurchase of common stock	(6,618)	(3,074)
Proceeds from issuance of common stock under employee stock plans	517	576
Net cash used in financing activities	(6,101)	(2,498)
Net increase (decrease) in cash and cash equivalents	(3,160)	2,645
Cash and cash equivalents at beginning of the year	31,963	36,776
Cash and cash equivalents at end of the period	28,803	39,421
Supplemental cash flow information:
Net cash paid (received) for income taxes	$ 1,339	$ (97)

1. THE COMPANY AND SUMMARY OF S

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Sep. 30, 2016
The Company And Summary Of Significant Accounting Policies
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, 2016. The consolidated results of operations for the six months ended September 30, 2016 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, 2016. Recent accounting pronouncements In October 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory .” ASU 2016-16 requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. ASU 2016-16 is effective for annual and interim periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, and is required to be adopted using a modified retrospective approach, with early adoption permitted. The Company is evaluating the impact of the adoption of this ASU on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions , including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This accounting standard update will be effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, and early adoption is permitted. The Company is currently evaluating the methods and impact of adopting the new accounting standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842) .” The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. All leases create an asset and a liability for the lessee in accordance with FASB Concepts Statement No. 6, “ Elements of Financial Statements ,” and, therefore, recognition of those lease assets and lease liabilities represents a change of previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. This ASU is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous GAAP. The Company is currently evaluating the impact the pronouncement will have on its consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU 2016-01, “ Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Assets.” ASU 2016-01 requires equity investments to be measured at fair value with changes in fair value recognized in net income and simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. The accounting standard update also updates certain presentation and disclosure requirements. This accounting standard update will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. In September 2015, the FASB issued a new accounting standard that eliminates the requirement to restate prior period financial statements for measurement period adjustments following a business combination. The new guidance requires that the cumulative impact of a measurement period adjustment including the impact on prior periods be recognized in the reporting period in which the adjustment is identified along with additional disclosures. The new guidance was effective for the Company beginning in the first quarter of fiscal 2017. Implementation of this new guidance did not have a material impact on the Company’s consolidated financial statements. In July 2015, the 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. In March, April and May 2016, the FASB issued additional updates to the new revenue standard relating to reporting revenue on a gross versus net basis, identifying performance obligations and licensing arrangements, and narrow-scope improvements and practical expedients, respectively. The Company is in the process of assessing the impact this additional guidance is expected to have upon adoption, including determining the adoption method.

2. NET INCOME (LOSS) PER COMMON

2. NET INCOME (LOSS) PER COMMON SHARE	6 Months Ended
	Sep. 30, 2016
NET INCOME (LOSS) PER COMMON 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 September 30, Six Months Ended September 30, 2016 2015 2016 2015 (In thousands, except per share amounts) Net income (loss) $ $ $ $ Denominators: Weighted average shares—Basic Dilutive effect of employee stock options — — Dilutive effect of employee stock purchase plan options — — Weighted average shares—Dilutive Net income (loss) per common share—Basic $ $ $ $ Net income (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 income (loss) per share as they had an anti-dilutive effect: Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 (In thousands) Shares underlying options

3. BALANCE SHEET DETAIL

3. BALANCE SHEET DETAIL	6 Months Ended
	Sep. 30, 2016
BALANCE SHEET DETAIL
NOTE 3 - BALANCE SHEET DETAIL	NOTE 3—BALANCE SHEET DETAIL September 30, 2016 March 31, 2016 (In thousands) Inventories: Work-in-progress $ $ Finished goods Inventory at distributors $ $ September 30, 2016 March 31, 2016 (In thousands) Accounts receivable, net: Accounts receivable $ $ Less: Allowances for sales returns, doubtful accounts and other $ $ September 30, 2016 March 31, 2016 (In thousands) Prepaid expenses and other current assets: Prepaid tooling and masks $ $ Prepaid income taxes — Escrow deposit — Other receivables Other prepaid expenses and other current assets $ $ September 30, 2016 March 31, 2016 (In thousands) Property and equipment, net: Computer and other equipment $ $ Software Land Building and building improvements Furniture and fixtures Leasehold improvements Less: Accumulated depreciation $ $ Depreciation expense was $305,000 and $277,000, respectively, for the three months ended September 30, 2016 and 2015 and $629,000 and $569,000, respectively, for the six months ended September 30, 2016 and 2015. September 30, 2016 March 31, 2016 (In thousands) Other assets: Escrow deposit $ $ Non-current deferred income taxes — Prepaid income taxes — Deposits $ $ The escrow deposits at September 30, 2016 and March 31, 2016 include approximately $2.5 million and $3.0 million respectively, placed in escrow in connection with the Company’s acquisition of MikaMonu Group Ltd. on November 23, 2015. See Note 10 — Acquisition for more information. The following tables summarize the components of intangible assets and related accumulated amortization balances at September 30, 2016 and March 31, 2016 (in thousands): As of September 30, 2016 Gross Accumulated Net Carrying Intangible assets: Product designs $ $ $ — Patents Software — Total $ $ $ As of March 31, 2016 Gross Accumulated Net Carrying Intangible assets: Product designs $ $ $ Patents Software — Total $ $ $ Amortization of intangible assets included in cost of revenues was $92,000 and $41,000, respectively, for the three months ended September 30, 2016 and 2015 and $192,000 and $82,000, respectively, for the six months ended September 30, 2016 and 2015. As of September 30, 2016, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands): Six Months Ended September 30, 2017 $ 2018 2019 2020 2021 Thereafter Total $ September 30, 2016 March 31, 2016 (In thousands) Accrued expenses and other liabilities: Accrued compensation $ $ Escrow indemnity accrual — Accrued professional fees Accrued commissions Accrued income taxes Customer credit balance — Other accrued expenses $ $ September 30, 2016 March 31, 2016 (In thousands) Other accrued expenses: Contingent consideration $ $ Escrow indemnity accrual — Other long-term accrued liabilities $ $

4. GOODWILL

4. GOODWILL	6 Months Ended
	Sep. 30, 2016
Goodwill.
NOTE 4-GOODWILL.	NOTE 4—GOODWILL Goodwill represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed in a business combination. The Company tests for goodwill impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company has one reporting unit. The Company assesses goodwill for impairment on an annual basis on the last day of February in the fourth quarter of its fiscal year. As of March 31, 2016 and September 30, 2016, the Company had a goodwill balance of $8.0 million and $8.0 million, respectively. The goodwill resulted from the acquisition of MikaMonu Group Ltd. (“MikaMonu”) in fiscal 2016. The reduction in goodwill at September 30, 2016 was due to additional tax liabilities identified as of the acquisition date in the amount of $52,000. The Company utilized a two-step quantitative analysis to complete its annual impairment test during the fourth quarter of fiscal 2016 and concluded that there was no impairment, as the fair value of its sole reporting unit exceeded its carrying value. The Company determined that the second step of the impairment test was not necessary. No triggering event took place subsequent to the fiscal 2016 annual assessment that necessitated a quantitative impairment analysis for the Company’s one reporting unit. However, there continues to be a risk that a sustained decline in the Company’s stock price could constitute a triggering event that would require assessment for potential goodwill impairment in fiscal 2017.

5. INCOME TAXES

5. INCOME TAXES	6 Months Ended
	Sep. 30, 2016
INCOME TAXES
NOTE 5-INCOME TAXES	NOTE 5—INCOME TAXES The current portion of the Company’s unrecognized tax benefits was $0 at both September 30, 2016 and March 31, 2016. The long-term portion at September 30, 2016 and March 31, 2016 was $254,000 and $116,000, respectively, of which the timing of the resolution is uncertain. As of September 30, 2016, $2,078,000 of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets. As of September 30, 2016 and March 31, 2016, the Company’s net deferred tax assets of $8.0 million and $6.4 million, respectively, were subject to a full valuation allowance. The Company recorded a net deferred tax liability of $821,000 associated with the estimated fair value adjustments of the intangible assets acquired in its acquisition of MikaMonu in the quarter ended December 31, 2015. During the six months ended September 30, 2016, the Company reversed the deferred tax liability and recorded a prepaid asset of $636,000 associated with the transfer of the acquired intangible assets out of Israel. During the three months ended June 30, 2016, the Company recorded a tax benefit of $71,000 that is included in the tax provision for the quarter then ended, 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 $438,000, 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 2013 through 2016 remain open to examination by federal tax authorities, and fiscal years 2012 through 2016 remain open to examination by California tax authorities. The Company’s estimated annual effective income tax rate was approximately 23.5% and 3.5% as of September 30, 2016 and 2015, respectively. The annual effective tax rates as of September 30, 2016 and 2015 vary 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.

6. FINANCIAL INSTRUMENTS

6. FINANCIAL INSTRUMENTS	6 Months Ended
	Sep. 30, 2016
FINANCIAL INSTRUMENTS
NOTE 6-FINANCIAL INSTRUMENTS	NOTE 6—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, 2016, the Level 1 category included money market funds of $2.3 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, 2016, the Level 2 category included short-term investments of $19.0 million and long-term investments of $12.5 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, 2016, the Company had no Level 3 financial assets and a Level 3 financial liability consisting of the contingent consideration liability for the acquisition of MikaMonu. See Note 10-Acquisition for more information. 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 Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs September 30, 2016 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ $ $ — $ — Marketable securities — — Total $ $ $ $ — Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs March 31, 2016 (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 (loss) in the Condensed Consolidated Balance Sheets. The Company had money market funds of $2.3 million and $6.6 million at September 30, 2016 and March 31, 2016, respectively, included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. 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, 2016 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: Corporate notes $ $ — $ $ Certificates of deposit Foreign government obligations — Agency bonds — Total short-term investments $ $ $ $ Long-term investments: Corporate notes $ $ — $ $ Certificates of deposit Foreign government obligations — Agency bonds — Total long-term investments $ $ $ $ March 31, 2016 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: State and municipal obligations $ $ — $ — $ Corporate notes — Agency bonds — Foreign government obligations — Certificates of deposit — Total short-term investments $ $ $ $ Long-term investments: 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 and losses 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 $11,000 and $14,000 at September 30, 2016 and March 31, 2016, respectively. As of September 30, 2016, 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 $ $ The Company classifies its short-term investments as “available-for-sale” as they are intended to be available for use in current operations.

7. COMMITMENTS AND CONTINGENCIE

7. COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Sep. 30, 2016
COMMITMENTS AND CONTINGENCIES.
NOTE 7-COMMITMENTS AND CONTINGENCIES	NOTE 7—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, 2016 or 2015. Legal proceedings From time to time, the Company may be involved in litigation relating to claims arising out of its day-to-day operations.

8. STOCK- BASED COMPENSATION

8. STOCK- BASED COMPENSATION	6 Months Ended
	Sep. 30, 2016
STOCK- BASED COMPENSATION
NOTE 8-STOCK- BASED COMPENSATION	NOTE 8—STOCK-BASED COMPENSATION The Company granted options under the 2007 Equity Incentive Plan (the “2007 Plan”) until August 2016 when it was terminated as to future awards, although it continues to govern the terms of options that remain outstanding under the 2007 Plan. In connection with the stockholders approval of the 2016 Equity Incentive Plan (the “2016 Plan”), 6,000,000 shares available for future award under the 2007 Plan were transferred to the 2016 Plan, 705,699 shares available for grant under the 2007 plan were canceled and the 2007 Plan was terminated. Shares subject to options under the 2007 Plan that expire or are forfeited for any reason after the date of the 2007 Plan termination will become available for grant under the 2016 Plan. The 2016 Plan was approved by the Company’s board of directors in June 2016 and was subsequently approved by the Company’s stockholders in August 2016 . The 2016 Plan provides for issuance of a variety of stock-based compensation awards, including stock options, restricted stock, restricted stock units, stock appreciation rights, performance shares performance units, other stock-based awards and cash-based awards. The exercise price of each stock-based award issued under the 2016 Plan is required to be no less than the fair value of the Company’s common stock, as determined by the board of directors on the date of the grant. As of September 30, 2016, 6,000,000 shares of common stock were available for grant under the Company’s 2016 Equity Incentive Plan. The following table summarizes the Company’s stock option activities for the three months ended September 30, 2016: 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, 2016 $ Options reserved — — Terminated plan — — Granted Exercised — $ Forfeited Balance at September 30, 2016 $ 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, 2016 and 2015 was $1.57 and $1.72, respectively and for the six months ended September 30, 2016 and 2015 was $1.50 and $1.74, respectively. Options outstanding by exercise price at September 30, 2016 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 - 3.40 $ $ $ 3.43 - 4.00 $ $ $ 4.17 - 4.81 $ $ $ 4.90 - 4.99 $ $ $ 5.13 - 5.50 $ $ $ 5.59 - 6.28 $ $ $ 6.45 - 6.82 $ $ $ 6.86 $ $ $ 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, 2016 2015 2016 2015 (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, 2016 or September 30, 2015 due to a full valuation allowance. There were no windfall tax benefits realized from exercised stock options in any of these periods. Compensation cost capitalized within inventory at September 30, 2016 was immaterial. As of September 30, 2016, the Company’s total unrecognized compensation cost was $3.3 million, which will be recognized over a weighted average period of 2.33 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, 2016 2015 2016 2015 (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 — % — % — % — %

9. SEGMENT AND GEOGRAPHIC INFOR

9. SEGMENT AND GEOGRAPHIC INFORMATION	6 Months Ended
	Sep. 30, 2016
SEGMENT AND GEOGRAPHIC INFORMATION
NOTE 9-SEGMENT AND GEOGRAPHIC INFORMATION	NOTE 9—SEGMENT AND GEOGRAPHIC INFORMATION Based on its operating management and financial reporting structure, the Company has determined that it has one reportable business segment: the design, development and sale of integrated circuits. The following is a summary of net revenues by geographic area based on the location to which product is shipped: Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 (In thousands) United States $ $ $ $ China Singapore Netherlands Rest of the world $ $ $ $ All sales are denominated in United States dollars.

10. ACQUISITION

10. ACQUISITION	6 Months Ended
	Sep. 30, 2016
ACQUISITION
NOTE 10-ACQUISITION	NOTE 10—ACQUISITION On November 23, 2015, the Company acquired all of the outstanding capital stock of privately held MikaMonu Group Ltd. (“MikaMonu”), a development-stage, Israel-based company that specializes in in-place associative computing for markets including big data, computer vision and cyber security. MikaMonu, located in Tel Aviv, held 12 United States patents and a number of pending patent applications. The acquisition was accounted for as a purchase under authoritative guidance for business combinations. The purchase price of the acquisition has been preliminarily allocated to the intangible assets acquired, with the excess of the purchase price over the fair value of assets acquired recorded as goodwill. The Company will perform a goodwill impairment test in February of each fiscal year. The results of operations of MikaMonu and the estimated fair value of the assets acquired were included in the Company’s condensed consolidated financial statements beginning November 23, 2015. Consideration Under the terms of the acquisition agreement, the Company paid the former MikaMonu shareholders initial cash consideration of approximately $4.4 million at the closing on November 23, 2015. In addition, $484,000 was deposited in escrow to provide a fund for potential future indemnification claims by the Company. This amount is included in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheet at September 30, 2016. The Company is also required to pay the former MikaMonu shareholders future contingent consideration consisting of retention payments and “earnout” payments, as described below. The Company will make cash retention payments of up to an additional $2.5 million to the three former MikaMonu shareholders in installments over a four-year period, conditioned on the continued employment of Dr. Avidan Akerib, MikaMonu’s co-founder and chief technologist. The retention amount of $2.5 million has been deposited in escrow and is included in other assets on the Condensed Consolidated Balance Sheet at September 30, 2016. The Company will also make “earnout” payments to the former MikaMonu shareholders in cash or shares of the Company’s common stock, at the Company’s discretion, during a period of up to ten years following the closing if certain product development milestones and revenue targets for products based on the MikaMonu technology are achieved. Earnout amounts of $750,000 will be payable if certain product development milestones are achieved by December 31, 2017. Additional earnout amounts of $2,750,000 and $4,000,000 will be payable if certain revenue milestones are achieved by January 1, 2021 and January 1, 2022, respectively; and additional payments, up to a maximum of $30 million, equal to 5% of net revenues from the sale of qualifying products in excess of certain thresholds, will be made quarterly through December 31, 2025. The portion of the retention payment contingently payable to Dr. Akerib (approximately $1.2 million) will be recorded as compensation expense over the period that his services are provided to the Company. The portion of the retention payment contingently payable to the other former MikaMonu shareholders (approximately $1.3 million) plus the maximum amount of the potential earnout payments totals approximately $38.8 million. The Company has determined that the fair value of this contingent consideration liability was $5.8 million at the acquisition date. This contingent consideration liability is included in other accrued expenses on the Condensed Consolidated Balance Sheet at September 30, 2016 and March 31, 2016 in the amount of $5.9 million at each date. The fair value of the contingent consideration liability was determined as of the acquisition date using unobservable inputs. These inputs include the estimated amount and timing of future cash flows, the probability of success (achievement of the various contingent events) and a risk-adjusted discount rate of approximately 14.8% used to adjust the probability-weighted cash flows to their present value. Subsequent to the acquisition date, at each reporting period, the contingent consideration liability is recorded at the fair value with changes reflected in the Consolidated Statements of Operations. The change in fair value for the quarter ended September 30, 2016 was $40,000. Purchase price allocation The allocation of the purchase price to acquired identifiable intangible assets and goodwill was based on their estimated fair values at the date of acquisition. The fair value allocated to patents was $3.5 million and the fair value allocated to goodwill was $8.0 million. The fair value allocated to tangible and identifiable intangible assets and goodwill of MikaMonu acquired on November 23, 2015 was computed as follows (in thousands): Cash and cash equivalents $ Other receivables Property and equipment, net Intangible assets Goodwill Total assets acquired Accrued expenses Net deferred tax liability Total liabilities assumed Fair value of net assets acquired $ The deferred tax liability associated with the estimated fair value adjustments of the intangible assets acquired was recorded at an estimated weighted average statutory tax rate in the jurisdictions where the fair value adjustments may occur. Identifiable intangible assets The following table sets forth the components of the identifiable intangible assets acquired in the MikaMonu acquisition, which are being amortized over their estimated useful lives on a straight-line basis: Fair Value Useful Life (in thousands) (in years) Patents $ 15 Total acquired identifiable intangible assets $

1. THE COMPANY AND SUMMARY OF17

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Sep. 30, 2016
The Company And Summary Of Significant Accounting Policies
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, 2016. The consolidated results of operations for the six months ended September 30, 2016 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, 2016.
Recent accounting pronouncements	Recent accounting pronouncements In October 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory .” ASU 2016-16 requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. ASU 2016-16 is effective for annual and interim periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, and is required to be adopted using a modified retrospective approach, with early adoption permitted. The Company is evaluating the impact of the adoption of this ASU on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions , including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This accounting standard update will be effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, and early adoption is permitted. The Company is currently evaluating the methods and impact of adopting the new accounting standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842) .” The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. All leases create an asset and a liability for the lessee in accordance with FASB Concepts Statement No. 6, “ Elements of Financial Statements ,” and, therefore, recognition of those lease assets and lease liabilities represents a change of previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. This ASU is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous GAAP. The Company is currently evaluating the impact the pronouncement will have on its consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU 2016-01, “ Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Assets.” ASU 2016-01 requires equity investments to be measured at fair value with changes in fair value recognized in net income and simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. The accounting standard update also updates certain presentation and disclosure requirements. This accounting standard update will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements. In September 2015, the FASB issued a new accounting standard that eliminates the requirement to restate prior period financial statements for measurement period adjustments following a business combination. The new guidance requires that the cumulative impact of a measurement period adjustment including the impact on prior periods be recognized in the reporting period in which the adjustment is identified along with additional disclosures. The new guidance was effective for the Company beginning in the first quarter of fiscal 2017. Implementation of this new guidance did not have a material impact on the Company’s consolidated financial statements. In July 2015, the 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. In March, April and May 2016, the FASB issued additional updates to the new revenue standard relating to reporting revenue on a gross versus net basis, identifying performance obligations and licensing arrangements, and narrow-scope improvements and practical expedients, respectively. The Company is in the process of assessing the impact this additional guidance is expected to have upon adoption, including determining the adoption method.

2. NET INCOME (LOSS) PER COMM18

2. NET INCOME (LOSS) PER COMMON SHARE (Tables)	6 Months Ended
	Sep. 30, 2016
NET INCOME (LOSS) PER COMMON SHARE
Basic and diluted net loss per share	Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 (In thousands, except per share amounts) Net income (loss) $ $ $ $ Denominators: Weighted average shares—Basic Dilutive effect of employee stock options — — Dilutive effect of employee stock purchase plan options — — Weighted average shares—Dilutive Net income (loss) per common share—Basic $ $ $ $ Net income (loss) per common share—Diluted $ $ $ $
Anti-dilutive shares	Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 (In thousands) Shares underlying options

3. BALANCE SHEET DETAIL (Tables

3. BALANCE SHEET DETAIL (Tables)	6 Months Ended
	Sep. 30, 2016
BALANCE SHEET DETAIL
Schedule of Inventories	September 30, 2016 March 31, 2016 (In thousands) Inventories: Work-in-progress $ $ Finished goods Inventory at distributors $ $
Schedule of Accounts Receivable, Net	September 30, 2016 March 31, 2016 (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, 2016 March 31, 2016 (In thousands) Prepaid expenses and other current assets: Prepaid tooling and masks $ $ Prepaid income taxes — Escrow deposit — Other receivables Other prepaid expenses and other current assets $ $
Schedule of Property and Equipment, Net	September 30, 2016 March 31, 2016 (In thousands) Property and equipment, net: Computer and other equipment $ $ Software Land Building and building improvements Furniture and fixtures Leasehold improvements Less: Accumulated depreciation $ $
Schedule of Other Assets	September 30, 2016 March 31, 2016 (In thousands) Other assets: Escrow deposit $ $ Non-current deferred income taxes — Prepaid income taxes — Deposits $ $
Schedule of Intangible Assets	The following tables summarize the components of intangible assets and related accumulated amortization balances at September 30, 2016 and March 31, 2016 (in thousands): As of September 30, 2016 Gross Accumulated Net Carrying Intangible assets: Product designs $ $ $ — Patents Software — Total $ $ $ As of March 31, 2016 Gross Accumulated Net Carrying Intangible assets: Product designs $ $ $ Patents Software — Total $ $ $
Estimated future amortization expense of intangible assets	As of September 30, 2016, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands): Six Months Ended September 30, 2017 $ 2018 2019 2020 2021 Thereafter Total $
Schedule of Accrued Expenses and Other Liabilities	September 30, 2016 March 31, 2016 (In thousands) Accrued expenses and other liabilities: Accrued compensation $ $ Escrow indemnity accrual — Accrued professional fees Accrued commissions Accrued income taxes Customer credit balance — Other accrued expenses $ $
Other Accrued Expenses	September 30, 2016 March 31, 2016 (In thousands) Other accrued expenses: Contingent consideration $ $ Escrow indemnity accrual — Other long-term accrued liabilities $ $

6. FINANCIAL INSTRUMENTS (Table

6. FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Sep. 30, 2016
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 Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs September 30, 2016 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ $ $ — $ — Marketable securities — — Total $ $ $ $ — Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs March 31, 2016 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ $ $ — $ — Marketable securities — — Total $ $ $ $ —
Schedule of available-for-sale investments	September 30, 2016 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: Corporate notes $ $ — $ $ Certificates of deposit Foreign government obligations — Agency bonds — Total short-term investments $ $ $ $ Long-term investments: Corporate notes $ $ — $ $ Certificates of deposit Foreign government obligations — Agency bonds — Total long-term investments $ $ $ $ March 31, 2016 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: State and municipal obligations $ $ — $ — $ Corporate notes — Agency bonds — Foreign government obligations — Certificates of deposit — Total short-term investments $ $ $ $ Long-term investments: Corporate notes $ $ $ — $ Certificates of deposit Agency bonds — Foreign government obligations — Total long-term investments $ $ $ $
Schedule of contractual maturities of the available-for-sale investments	Fair Cost Value (In thousands) Maturing within one year $ $ Maturing in one to three years $ $

8. STOCK- BASED COMPENSATION (T

8. STOCK- BASED COMPENSATION (Tables)	6 Months Ended
	Sep. 30, 2016
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, 2016 $ Options reserved — — Terminated plan — — Granted Exercised — $ Forfeited Balance at September 30, 2016 $ 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 - 3.40 $ $ $ 3.43 - 4.00 $ $ $ 4.17 - 4.81 $ $ $ 4.90 - 4.99 $ $ $ 5.13 - 5.50 $ $ $ 5.59 - 6.28 $ $ $ 6.45 - 6.82 $ $ $ 6.86 $ $ $ 7.00 $ $ $ 9.20 $ $ $ $
Summary of stock-based compensation expense by line item	Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 (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, 2016 2015 2016 2015 (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 — % — % — % — %

9. SEGMENT AND GEOGRAPHIC INF22

9. SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	6 Months Ended
	Sep. 30, 2016
SEGMENT AND GEOGRAPHIC INFORMATION
Net revenues by geographic area	Three Months Ended September 30, Six Months Ended September 30, 2016 2015 2016 2015 (In thousands) United States $ $ $ $ China Singapore Netherlands Rest of the world $ $ $ $

10. ACQUISITION (Tables)

10. ACQUISITION (Tables)	6 Months Ended
	Sep. 30, 2016
ACQUISITION
Schedule of fair value allocated to tangible and identifiable intangible assets and goodwill	The fair value allocated to tangible and identifiable intangible assets and goodwill of MikaMonu acquired on November 23, 2015 was computed as follows (in thousands): Cash and cash equivalents $ Other receivables Property and equipment, net Intangible assets Goodwill Total assets acquired Accrued expenses Net deferred tax liability Total liabilities assumed Fair value of net assets acquired $
Schedule of components of identifiable assets acquired	Fair Value Useful Life (in thousands) (in years) Patents $ 15 Total acquired identifiable intangible assets $

2. NET INCOME (LOSS) PER COMM24

2. NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
NET INCOME (LOSS) PER COMMON SHARE
Net income (loss)	$ 626	$ (347)	$ 886	$ (1,264)
Weighted average shares-Basic	20,529	22,676	20,912	22,809
Dilutive effect of employee stock options	550		412
Dilutive effect of employee stock purchase plan options	25		25
Weighted average shares-Dilutive	21,104	22,676	21,349	22,809
Net income (loss) per common share - Basic	$ 0.03	$ (0.02)	$ 0.04	$ (0.06)
Net income (loss) per common share - Diluted	$ 0.03	$ (0.02)	$ 0.04	$ (0.06)

2. NET INCOME (LOSS) PER COMM25

2. NET INCOME (LOSS) PER COMMON SHARE - Shares underlying options (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
NET INCOME (LOSS) PER COMMON SHARE
Antidilutive shares excluded from computation of EPS	5,401	5,317	5,734	5,067

3. BALANCE SHEET DETAIL - Inven

3. BALANCE SHEET DETAIL - Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Mar. 31, 2016
Inventories:
Work-in-progress	$ 2,760	$ 1,697
Finished goods	5,941	5,011
Inventory at distributors	277	466
Total Inventory	$ 8,978	$ 7,174

3. BALANCE SHEET DETAIL - Accou

3. BALANCE SHEET DETAIL - Accounts receivable, net (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Mar. 31, 2016
Accounts receivable, net:
Accounts receivable	$ 8,910	$ 7,578
Less: Allowances for sales returns, doubtful accounts and other	(103)	(100)
Total accounts receivable, net	$ 8,807	$ 7,478

3. BALANCE SHEET DETAIL - Prepa

3. BALANCE SHEET DETAIL - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Mar. 31, 2016
Prepaid expenses and other current assets:
Prepaid tooling and masks	$ 580	$ 1,224
Prepaid income taxes	43
Escrow deposit	484
Other receivables	273	230
Other prepaid expenses and other current assets	837	744
Total prepaid expenses and other current assets	$ 2,217	$ 2,198

3. BALANCE SHEET DETAIL - Prope

3. BALANCE SHEET DETAIL - Property, Plant and Equipment (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Mar. 31, 2016
Property and equipment, net:
Property and equipment, gross	$ 30,314,000		$ 30,314,000		$ 30,144,000
Less: Accumulated depreciation	(22,116,000)		(22,116,000)		(21,491,000)
Property, Plant and Equipment, Net, Total	8,198,000		8,198,000		8,653,000
Depreciation	305,000	$ 277,000	629,000	$ 569,000
Computer and other equipment
Property and equipment, net:
Property and equipment, gross	18,549,000		18,549,000		18,394,000
Software
Property and equipment, net:
Property and equipment, gross	4,793,000		4,793,000		4,793,000
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		114,000
Leasehold improvements
Property and equipment, net:
Property and equipment, gross	$ 706,000		$ 706,000		$ 687,000

3. BALANCE SHEET DETAIL - Other

3. BALANCE SHEET DETAIL - Other assets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Mar. 31, 2016
Other assets:
Escrow deposit	$ 2,500	$ 2,984
Non-current deferred income taxes	24
Prepaid income taxes	574
Deposits	128	102
Total Other Assets	$ 3,226	$ 3,086

3. BALANCE SHEET DETAIL - Intan

3. BALANCE SHEET DETAIL - Intangible assets (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Mar. 31, 2016
Gross Carrying Amount	$ 4,890,000		$ 4,890,000		$ 4,890,000
Accumulated Amortization	(1,431,000)		(1,431,000)		(1,239,000)
Net Carrying Amount	3,459,000		3,459,000		3,651,000
Amortization of intangible assets	92,000	$ 41,000	192,000	$ 82,000
Product designs
Gross Carrying Amount	590,000		590,000		590,000
Accumulated Amortization	(590,000)		(590,000)		(555,000)
Net Carrying Amount					35,000
Patents
Gross Carrying Amount	4,220,000		4,220,000		4,220,000
Accumulated Amortization	(761,000)		(761,000)		(604,000)
Net Carrying Amount	3,459,000		3,459,000		3,616,000
Software.
Gross Carrying Amount	80,000		80,000		80,000
Accumulated Amortization	$ (80,000)		$ (80,000)		$ (80,000)

3. BALANCE SHEET DETAIL - Amort

3. BALANCE SHEET DETAIL - Amortization expense (Details) $ in Thousands	Sep. 30, 2016USD ($)
Estimated future amortization expense
2,017	$ 313
2,018	307
2,019	233
2,020	233
2,021	233
Thereafter	2,140
Total	$ 3,459

3. BALANCE SHEET DETAIL - Accru

3. BALANCE SHEET DETAIL - Accrued expenses and other liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Mar. 31, 2016
Accrued expenses and other liabilities:
Accrued compensation	$ 2,921	$ 3,082
Escrow indemnity accrual	484
Accrued professional fees	207	83
Accrued commissions	280	284
Accrued income taxes	126	15
Customer credit balance	1,073
Other accrued expenses	1,189	934
Total Accrued Expenses and Other Liabilities	$ 6,280	$ 4,398

3. BALANCE SHEET DETAIL - Oth34

3. BALANCE SHEET DETAIL - Other LT accrued liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Mar. 31, 2016
Other accrued expenses:
Contingent consideration	$ 5,936	$ 5,856
Escrow indemnity accrual		484
Other long term accrued liabilities	370	152
Other accrued expenses	$ 6,306	$ 6,492

4. GOODWILL (Details)

4. GOODWILL (Details)	3 Months Ended	6 Months Ended
	Mar. 31, 2016USD ($)	Sep. 30, 2016USD ($)segment	Nov. 23, 2015USD ($)	Sep. 30, 2015USD ($)
Goodwill [Line Items]
Goodwill	$ 8,030,000	$ 7,978,000
Goodwill impairment	$ 0
Number of Reportable Segments | segment		1
MikaMonu
Goodwill [Line Items]
Goodwill			$ 8,030,000	$ (52,000)

5. INCOME TAXES (Details)

5. INCOME TAXES (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Mar. 31, 2016	Dec. 31, 2015
Unrecognized tax benefits, current		$ 0		$ 0
Unrecognized tax benefits, noncurrent		254,000		116,000
Deferred tax assets unrecognized tax benefit		2,078,000
Possible reduction in uncertain tax benefits		438,000
Net deferred tax assets		8,000,000		$ 6,400,000
Prepaid tax asset		$ 636,000
Effective annual income tax rate (as a percentage)		23.50%	3.50%
Lapses during the current year applicable to statutes of limitations	$ 71,000
MikaMonu
Net deferred tax liability					$ 821,000

6. FINANCIAL INSTRUMENTS (Detai

6. FINANCIAL INSTRUMENTS (Details) - Recurring - USD ($) $ in Thousands	Sep. 30, 2016	Mar. 31, 2016
Fair value measurements
Money market funds	$ 2,313	$ 6,611
Marketable securities	31,563	34,297
Assets	33,876	40,908
Level 1
Fair value measurements
Money market funds	2,313	6,611
Assets	2,313	6,611
Level 2
Fair value measurements
Marketable securities	31,563	34,297
Assets	31,563	$ 34,297
Level 3
Fair value measurements
Assets	$ 0

6. FINANCIAL INSTRUMENTS - Avai

6. FINANCIAL INSTRUMENTS - Available for sale investments (Details) - USD ($)	6 Months Ended
	Sep. 30, 2016	Mar. 31, 2016
Available-for-sale investments
Cost	$ 31,533,000
Fair Value	$ 31,563,000
Other information
Maximum maturity period of investment portfolio	3 years
Deferred tax liability related to unrecognized gains and losses on short-term and long-term investments	$ 11,000	$ 14,000
Short-term investments
Available-for-sale investments
Cost	19,009,000	23,137,000
Gross Unrealized Gains	25,000	16,000
Gross Unrealized Losses	(4,000)	(3,000)
Fair Value	19,030,000	23,150,000
Short-term investments | State and municipal obligations
Available-for-sale investments
Cost		1,011,000
Fair Value		1,011,000
Short-term investments | Corporate notes
Available-for-sale investments
Cost	2,757,000	5,680,000
Gross Unrealized Losses	(2,000)	(3,000)
Fair Value	2,755,000	5,677,000
Short-term investments | Certificates of deposits
Available-for-sale investments
Cost	13,250,000	11,750,000
Gross Unrealized Gains	22,000	12,000
Gross Unrealized Losses	(1,000)
Fair Value	13,271,000	11,762,000
Short-term investments | Foreign government obligations
Available-for-sale investments
Cost	1,002,000	2,695,000
Gross Unrealized Gains		3,000
Gross Unrealized Losses	(1,000)
Fair Value	1,001,000	2,698,000
Short-term investments | Agency bonds
Available-for-sale investments
Cost	2,000,000	2,001,000
Gross Unrealized Gains	3,000	1,000
Fair Value	2,003,000	2,002,000
Long-term investment
Available-for-sale investments
Cost	12,524,000	11,118,000
Gross Unrealized Gains	20,000	30,000
Gross Unrealized Losses	(11,000)	(1,000)
Fair Value	12,533,000	11,147,000
Long-term investment | Corporate notes
Available-for-sale investments
Cost	558,000	558,000
Gross Unrealized Gains		1,000
Gross Unrealized Losses	(1,000)
Fair Value	557,000	559,000
Long-term investment | Certificates of deposits
Available-for-sale investments
Cost	6,500,000	8,500,000
Gross Unrealized Gains	20,000	24,000
Gross Unrealized Losses	(1,000)	(1,000)
Fair Value	6,519,000	8,523,000
Long-term investment | Foreign government obligations
Available-for-sale investments
Cost	3,448,000	1,060,000
Gross Unrealized Gains		1,000
Gross Unrealized Losses	(7,000)
Fair Value	3,441,000	1,061,000
Long-term investment | Agency bonds
Available-for-sale investments
Cost	2,018,000	1,000,000
Gross Unrealized Gains		4,000
Gross Unrealized Losses	(2,000)
Fair Value	$ 2,016,000	$ 1,004,000

6. FINANCIAL INSTRUMENTS - Cont

6. FINANCIAL INSTRUMENTS - Contractual maturities (Details) $ in Thousands	Sep. 30, 2016USD ($)
FINANCIAL INSTRUMENTS
Maturing within one year, Cost	$ 19,009
Maturing in one to three years, Cost	12,524
Total	31,533
Maturing within one year, Fair Value	19,030
Maturing in one to three years, Fair Value	12,533
Fair Value	$ 31,563

7. COMMITMENTS AND CONTINGENC40

7. COMMITMENTS AND CONTINGENCIES - Royalties and Product Warranties (Details)	6 Months Ended
	Sep. 30, 2016
Product warranties
Warranty period	3 years

8. STOCK- BASED COMPENSATION -

8. STOCK- BASED COMPENSATION - Stock options activities (Details)	6 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
STOCK- BASED COMPENSATION
Shares available for grant, Beginning	6,432,063
Options reserved (in shares)	1,085,818
Terminated plan (in shares)	(705,699)
Granted (in shares)	(826,983)
Forfeited (in shares)	14,801
Shares available for grant, Ending	6,000,000
Number of Shares Underlying Options Outstanding
Balance at the beginning of the period (in shares)	7,625,705
Granted (in shares)	826,983
Exercised (in shares)	(86,700)
Forfeited (in shares)	(177,601)
Balance at the end of the period (in shares)	8,188,387
Options vested and exercisable (in shares)	5,361,750
Options vested and expected to vest (in shares)	8,132,488
Weighted Average Remaining Contractual Life
Options vested and exercisable	3 years 6 months 18 days
Options vested and expected to vest	5 years 3 months 4 days
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share) | $ / shares	$ 5.08
Granted (in dollars per share) | $ / shares	4.72
Exercised (in dollars per share) | $ / shares	3.60
Forfeited (in dollars per share) | $ / shares	5.68
Balance at the end of the period (in dollars per share) | $ / shares	5.04
Options vested and exercisable (in dollars per share) | $ / shares	5.04
Options vested and expected to vest (in dollars per share) | $ / shares	$ 5.04
Intrinsic Value
Exercised (in dollars) | $	$ 96,209
Options vested and exercisable (in dollars) | $	2,205,257
Options vested and expected to vest (in dollars) | $	$ 2,809,868

8. STOCK- BASED COMPENSATION 42

8. STOCK- BASED COMPENSATION - Options outstanding by exercise price (Details) - $ / shares	6 Months Ended
	Sep. 30, 2016	Mar. 31, 2016
Options outstanding by exercise price
Exercise Price (in dollars per share)	$ 5.04	$ 5.08
Number of Shares Underlying Options Outstanding (in shares)	8,188,387
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.04
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 3 months 15 days
Options Exercisable, Number Vested and Exercisable (in shares)	5,361,750
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.04
$2.43 - $3.40
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)	$ 3.40
Number of Shares Underlying Options Outstanding (in shares)	877,604
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.17
Options Outstanding, Weighted Average Remaining Contractual Life	4 years 7 months 10 days
Options Exercisable, Number Vested and Exercisable (in shares)	568,794
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.04
$3.43 - $4.00
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	3.43
Exercise Price, high end of range (in dollars per share)	$ 4
Number of Shares Underlying Options Outstanding (in shares)	1,221,409
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.80
Options Outstanding, Weighted Average Remaining Contractual Life	3 years 6 months
Options Exercisable, Number Vested and Exercisable (in shares)	1,060,819
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.83
$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)	923,428
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 4.41
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 2 months 23 days
Options Exercisable, Number Vested and Exercisable (in shares)	833,115
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 4.40
$4.90 - $4.99
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)	$ 4.99
Number of Shares Underlying Options Outstanding (in shares)	1,451,731
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 4.97
Options Outstanding, Weighted Average Remaining Contractual Life	8 years 6 months 18 days
Options Exercisable, Number Vested and Exercisable (in shares)	318,403
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 4.91
$5.13 - $5.50
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)	$ 5.50
Number of Shares Underlying Options Outstanding (in shares)	1,396,146
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.38
Options Outstanding, Weighted Average Remaining Contractual Life	3 years 7 months 24 days
Options Exercisable, Number Vested and Exercisable (in shares)	862,712
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.47
$5.59 - $6.28
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)	$ 6.28
Number of Shares Underlying Options Outstanding (in shares)	949,073
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.88
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 5 months 27 days
Options Exercisable, Number Vested and Exercisable (in shares)	712,644
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.92
$6.45 - $6.82
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	6.45
Exercise Price, high end of range (in dollars per share)	$ 6.82
Number of Shares Underlying Options Outstanding (in shares)	741,510
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 6.60
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 5 months 1 day
Options Exercisable, Number Vested and Exercisable (in shares)	602,956
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 6.62
$ 6.86
Options outstanding by exercise price
Exercise Price (in dollars per share)	$ 6.86
Number of Shares Underlying Options Outstanding (in shares)	307,913
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 6.86
Options Outstanding, Weighted Average Remaining Contractual Life	6 years 9 months 29 days
Options Exercisable, Number Vested and Exercisable (in shares)	82,734
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 6.86
$ 7
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	3 years 10 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)	113,380
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 9.20
Options Outstanding, Weighted Average Remaining Contractual Life	4 years 4 months 2 days
Options Exercisable, Number Vested and Exercisable (in shares)	113,380
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 9.20

8. STOCK- BASED COMPENSATION 43

8. STOCK- BASED COMPENSATION - Stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stock-based compensation expense by line item
Stock-based compensation expense	$ 487	$ 499	$ 930	$ 973
Other information
Income tax benefit recognized from allocation of share-based compensation expense	0	0	0	0
Windfall tax benefits recognized	0	0	0	0
Unrecognized compensation costs	3,300		$ 3,300
Weighted average period of recognition of unrecognized compensation costs			2 years 3 months 29 days
Cost of revenues
Stock-based compensation expense by line item
Stock-based compensation expense	79	88	$ 131	157
Research and development
Stock-based compensation expense by line item
Stock-based compensation expense	238	224	461	441
Selling, general and administrative
Stock-based compensation expense by line item
Stock-based compensation expense	$ 170	$ 187	$ 338	$ 375

8. STOCK- BASED COMPENSATION 44

8. STOCK- BASED COMPENSATION - Weighted average assumptions (Details) - $ / shares	3 Months Ended		6 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stock-based compensation
Weighted average fair value per underlying share of options granted (in dollars per share)	$ 1.57	$ 1.72	$ 1.50	$ 1.74
Employee Consultants And Directors Stock Options
Stock-based compensation
Risk-free interest rate (as a percent)	1.12%	1.57%
Risk-free interest rate, low end of range (as a percent)			1.12%	1.52%
Risk-free interest rate, high end of range (as a percent)			1.26%	1.57%
Expected life	5 years	5 years	5 years	5 years
Volatility (as a percent)	33.90%	36.80%
Volatility, low end of range (as a percent)			33.90%	36.80%
Volatility, high end of range (as a percent)			34.80%	38.00%
Employee stock purchase plan
Stock-based compensation
Risk-free interest rate (as a percent)			0.38%	0.09%
Expected life			6 months	6 months
Volatility (as a percent)			39.60%	26.30%

9. SEGMENT AND GEOGRAPHIC INF45

9. SEGMENT AND GEOGRAPHIC INFORMATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)segment	Sep. 30, 2015USD ($)
Net revenues and long-lived assets by geographic area
Revenue, Net	$ 13,358	$ 13,577	$ 26,304	$ 27,602
Number of reportable business segments | segment			1
United States
Net revenues and long-lived assets by geographic area
Revenue, Net	5,430	5,303	$ 10,256	11,251
China
Net revenues and long-lived assets by geographic area
Revenue, Net	2,864	3,310	6,096	7,109
Singapore
Net revenues and long-lived assets by geographic area
Revenue, Net	2,261	1,601	5,556	2,998
Netherlands
Net revenues and long-lived assets by geographic area
Revenue, Net	1,585	1,857	1,963	3,555
Rest of the world
Net revenues and long-lived assets by geographic area
Revenue, Net	$ 1,218	$ 1,506	$ 2,433	$ 2,689

10. ACQUISITION (Details)

10. ACQUISITION (Details)	Nov. 23, 2015USD ($)employeepatent	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Mar. 31, 2016USD ($)
Acquisition disclosure
Contingent consideration liability			$ 5,936,000	$ 5,856,000
Assets acquired and liabilities assumed
Goodwill			7,978,000	8,030,000
MikaMonu
Acquisition disclosure
Number of former shareholders receiving retention payments | employee	3
Cash paid for acquisition	$ 4,400,000
Contingent consideration, acquisition date fair value	2,500,000
Amount of payment held in escrow	$ 484,000
Term of additional contingent payments	4 years
Discount rate (as a percent)	14.80%
Contingent consideration liability	$ 5,800,000
Change in contingent consideration liability		$ 40,000
Assets acquired and liabilities assumed
Cash and cash equivalents	1,000
Other receivables	54,000
Property and equipment, net	10,000
Intangible assets	3,500,000
Goodwill	8,030,000	$ (52,000)
Total assets acquired	11,595,000
Accrued expenses	(10,000)
Net deferred tax liability	(821,000)
Total liabilities assumed	(831,000)
Fair value of net assets acquired	10,764,000
MikaMonu | Patents
Assets acquired and liabilities assumed
Intangible assets	$ 3,500,000
Useful life	15 years
MikaMonu | Other assets
Acquisition disclosure
Amount of payment held in escrow	$ 2,500,000
MikaMonu | Other accrued expenses
Acquisition disclosure
Contingent consideration			5,900,000	$ 5,900,000
MikaMonu | United States
Acquisition disclosure
Number of patents held | patent	12
MikaMonu | Continued employment of key employees
Acquisition disclosure
Contingent consideration			1,300,000
MikaMonu | Continued employment of Dr. Avidan Akerib
Acquisition disclosure
Contingent consideration	$ 1,200,000
MikaMonu | Product development milestones and revenue targets
Acquisition disclosure
Term of additional contingent payments	10 years
MikaMonu | Product development milestones and revenue targets | Maximum
Acquisition disclosure
Contingent consideration			$ 38,800,000
MikaMonu | Product development milestones to be achieved by December 31, 2017
Acquisition disclosure
Contingent consideration	$ 750,000
MikaMonu | Revenue milestones to be achieved by January, 1 2021
Acquisition disclosure
Contingent consideration	2,750,000
MikaMonu | Revenue milestones to be achieved by January, 1 2022
Acquisition disclosure
Contingent consideration	4,000,000
MikaMonu | Quarterly payments based on net revenue | Maximum
Acquisition disclosure
Contingent consideration	$ 30,000,000
Contingent consideration, percent of net revenue	5.00%