GSI Technology (GSIT) 10-Q 2 Feb 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 31, 2017	Jan. 31, 2018
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	Dec. 31, 2017
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		21,294,248
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
ASSETS
Cash and cash equivalents	$ 39,740	$ 33,736
Short-term investments	17,030	16,199
Accounts receivable, net	5,545	6,349
Inventories	6,795	9,211
Prepaid expenses and other current assets	2,073	2,777
Total current assets	71,183	68,272
Property and equipment, net	7,667	7,689
Long-term investments	8,199	12,898
Goodwill	7,978	7,978
Intangible assets, net	3,067	3,302
Other assets	1,229	2,456
Total assets	99,323	102,595
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	1,764	1,627
Accrued expenses and other liabilities	5,250	7,051
Deferred revenue	506	1,796
Total current liabilities	7,520	10,474
Income taxes payable	885	244
Deferred income taxes		15
Other accrued expenses	5,454	5,418
Total liabilities	13,859	16,151
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: 21,252,123 and 20,612,757 shares, respectively	21	21
Additional paid-in capital	26,272	21,830
Accumulated other comprehensive loss	(109)	(62)
Retained earnings	59,280	64,655
Total stockholders' equity	85,464	86,444
Total liabilities and stockholders' equity	$ 99,323	$ 102,595

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2017	Mar. 31, 2017
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	21,252,123	20,612,757
Common stock, shares outstanding	21,252,123	20,612,757

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Income Statement
Net revenues	$ 11,118	$ 11,484	$ 31,452	$ 37,788
Cost of revenues	5,443	4,989	15,315	17,228
Gross profit	5,675	6,495	16,137	20,560
Operating expenses:
Research and development	4,231	3,813	12,726	11,594
Selling, general and administrative	2,481	2,448	7,771	7,963
Total operating expenses	6,712	6,261	20,497	19,557
Income (loss) from operations	(1,037)	234	(4,360)	1,003
Interest income, net	113	81	309	227
Other income (expense), net	(14)	(20)	(9)	68
Income (loss) before income taxes	(938)	295	(4,060)	1,298
Provision for (benefit from) income taxes	590	(53)	720	64
Net income (loss)	$ (1,528)	$ 348	$ (4,780)	$ 1,234
Net income (loss) per share:
Basic	$ (0.07)	$ 0.02	$ (0.23)	$ 0.06
Diluted	$ (0.07)	$ 0.02	$ (0.23)	$ 0.06
Weighted average shares used in per share calculations:
Basic	21,165	20,300	21,003	20,707
Diluted	21,165	21,097	21,003	21,239

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Consolidated Statements Of Comprehensive Income (Loss)
Net income (loss)	$ (1,528)	$ 348	$ (4,780)	$ 1,234
Net unrealized gain (loss) on available-for-sale investments	(48)	(65)	(48)	(76)
Total comprehensive income (loss)	$ (1,576)	$ 283	$ (4,828)	$ 1,158

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income (loss)	$ (4,780)	$ 1,234
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Allowance for sales returns, doubtful accounts and other	(22)	3
Provision for excess and obsolete inventories	1,166	491
Depreciation and amortization	948	1,189
Stock-based compensation	1,521	1,359
Amortization of premium on investments	69	52
Changes in assets and liabilities:
Accounts receivable	826	416
Inventory	1,250	(2,560)
Prepaid expenses and other assets	115	(286)
Accounts payable	(119)	(387)
Accrued expenses and other liabilities	(289)	(60)
Deferred revenue	(1,290)	(119)
Net cash (used in) provided by operating activities	(605)	1,332
Cash flows from investing activities:
Purchase of investments	(6,748)	(14,062)
Maturities of short-term investments	10,500	17,600
Reduction in escrow deposit	1,222
Purchases of property and equipment	(436)	(194)
Net cash provided by investing activities	4,538	3,344
Cash flows from financing activities:
Repurchase of common stock		(7,112)
Payment of MikaMonu escrow deposit	(850)
Proceeds from issuance of common stock under employee stock plans	2,921	968
Net cash provided by (used in) financing activities	2,071	(6,144)
Net increase (decrease) in cash and cash equivalents	6,004	(1,468)
Cash and cash equivalents at beginning of the period	33,736	31,963
Cash and cash equivalents at end of the period	39,740	30,495
Non-cash financing activities:
Purchases of property and equipment through accounts payable and accruals	256
Supplemental cash flow information:
Net cash paid for income taxes	$ 42	$ 1,341

1. THE COMPANY AND SUMMARY OF S

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Dec. 31, 2017
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, 2017. The consolidated results of operations for the nine months ended December 31, 2017 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, 2017. Recent accounting pronouncements In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-09, “ Scope of Modification Accounting ”. ASU 2017-09 amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. This guidance clarifies that an entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: (i) the fair value of the award, (ii) the vesting conditions of the award, and (iii) the classification of the award as an equity instrument or liability instrument. The standard is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017, including adoption in any interim period. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, " Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The standard eliminates the second step in the goodwill impairment test which requires an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company does not anticipate the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash” . ASU 2016-18 requires entities to include in their cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. As a result, companies will no longer present transfers between cash and cash equivalents, and restricted cash and restricted cash equivalents in the statement of cash flows. The guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact this new guidance will have on its consolidated statement of cash flows. In October 2016, the 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 . The Company adopted ASU 2016-16 in the quarter ended June 30, 2017. ASU 2016-16 is applied on a modified retrospective basis in the period of adoption. The adoption of this guidance resulted in a derecognition of a prepaid tax asset of $595,000 related to a prior period intra-entity asset transfer, with an offsetting reduction to retained earnings. Because of the Company’s valuation allowance in the United States, there was no change to the Company’s net deferred tax assets. The derecognition of the prepaid tax asset as of April 1, 2017 decreased the Company’s income tax expense by $11,000 in each of the quarters ended June 30, 2017, September 30, 2017 and December 31, 2017 and is projected to decrease the Company’s fiscal 2018 tax expense by $43,000. In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”. ASU 2016-15 adds or clarifies guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. The amendments in the update provide guidance on eight specific cash flow issues, and are effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The amendments to the guidance should be applied using a retrospective transition method for each period presented and, if it is impracticable to apply all of the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact this new guidance will have on its consolidated statement of cash flows. In June 2016, the FASB issued ASU 2016-13 , “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans, and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted beginning April 1, 2019. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of this standard 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. The Company adopted ASU 2016-09 in the quarter ended June 30, 2017. The Company has elected to continue to estimate forfeitures as part of the compensation cost of equity awards. ASU 2016-09 is applied prospectively to all excess tax benefits and tax deficiencies resulting from settlements after the date of adoption. The adoption of ASU 2016-09 resulted in an increase to the net operating loss carryforward deferred tax asset and a corresponding increase in the valuation allowance of $654,000 attributable to excess tax benefits not previously recognized as they did not reduce income taxes payable. 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. Although the Company is currently evaluating the impact the pronouncement will have on its consolidated financial statements and related disclosures, the Company expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption. In January 2016, the FASB issued ASU 2016-01, “ Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” 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 July 2015, the FASB issued ASU 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 Company adopted ASU 2015-11 in the quarter ended June 30, 2017. Implementation of this guidance did not 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 (Topic 606 )" and has subsequently issued several supplemental and/or clarifying ASUs (collectively, "ASC 606"). 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. The Company plans to adopt ASC 606 on April 1, 2018 using the modified retrospective transition method with the cumulative effect of initial adoption, if any, recognized in opening retained earnings on the adoption date. Almost all of the Company’s purchase orders, contracts or purchase agreements do not contain performance obligations other than delivery of the agreed upon product, with title transfer occurring at the time of shipment subject to estimated allowance for distributor price adjustments and rights of return. Thus, the Company generally recognizes revenue upon shipment of the product. The Company has historically deferred recognition of revenue on shipments to its distributors that have ship from stock and debit and price protection rights due to a lack of a fixed and determinable price that could be reasonably estimated. The Company has been revising certain of its distribution agreements to eliminate ship from stock and debits and price protection in order to eliminate any uncertainty in regards to a final selling price and to establish a selling price that is fixed and determinable at the time of shipment to the distributor. Assuming all other revenue recognition criteria have been met, it is likely that the new guidance would require the Company to recognize revenue and cost relating to distributor sales upon shipment to the distributor, subject to estimated allowance for distributor price adjustments and rights of return. The Company is currently in the process of assessing the impact this guidance is expected to have upon adoption, which includes determining the impact of the new guidance on the Company’s revenue recognition practices, business processes, internal controls and the additional disclosures which may be required upon the adoption of ASC 606.

2. NET INCOME (LOSS) PER COMMON

2. NET INCOME (LOSS) PER COMMON SHARE	9 Months Ended
	Dec. 31, 2017
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 December 31, Nine Months Ended December 31, 2017 2016 2017 2016 (In thousands, except per share amounts) Net income (loss) $ (1,528) $ 348 $ (4,780) $ 1,234 Denominators: Weighted average shares—Basic 21,165 20,300 21,003 20,707 Dilutive effect of employee stock options — 795 — 530 Dilutive effect of employee stock purchase plan options — 2 — 2 Weighted average shares—Dilutive 21,165 21,097 21,003 21,239 Net income (loss) per common share—Basic $ (0.07) $ 0.02 $ (0.23) $ 0.06 Net income (loss) per common share—Diluted $ (0.07) $ 0.02 $ (0.23) $ 0.06 The following shares of common stock underlying outstanding stock options, determined on a weighted average basis, were excluded from the computation of diluted net income (loss) per share as they had an anti-dilutive effect: Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 (In thousands) Shares underlying options and ESPP shares 2,969 4,621 2,785 5,247

3. BALANCE SHEET DETAIL

3. BALANCE SHEET DETAIL	9 Months Ended
	Dec. 31, 2017
BALANCE SHEET DETAIL
NOTE 3 - BALANCE SHEET DETAIL	NOTE 3—BALANCE SHEET DETAIL December 31, 2017 March 31, 2017 (In thousands) Inventories: Work-in-progress $ 2,683 $ 2,112 Finished goods 4,046 6,803 Inventory at distributors 66 296 $ 6,795 $ 9,211 December 31, 2017 March 31, 2017 (In thousands) Accounts receivable, net: Accounts receivable $ 5,627 $ 6,453 Less: Allowances for sales returns, doubtful accounts and other (82) (104) $ 5,545 $ 6,349 December 31, 2017 March 31, 2017 (In thousands) Prepaid expenses and other current assets: Prepaid tooling and masks $ 419 $ 836 Prepaid income taxes — 43 Escrow deposit 762 1,234 Other receivables 207 216 Other prepaid expenses and other current assets 685 448 $ 2,073 $ 2,777 December 31, 2017 March 31, 2017 (In thousands) Property and equipment, net: Computer and other equipment $ 18,491 $ 18,585 Software 4,902 4,793 Land 3,900 3,900 Building and building improvements 2,310 2,256 Furniture and fixtures 107 111 Leasehold improvements 725 715 Construction in progress 302 — 30,737 30,360 Less: Accumulated depreciation (23,070) (22,671) $ 7,667 $ 7,689 Depreciation expense was $245,000 and $289,000 for the three months ended December 31, 2017 and 2016, respectively, and $714,000 and $919,000 for the nine months ended December 31, 2017 and 2016, respectively. The Company expects expenditures of approximately $1,000,000 to be incurred in the next twelve months for construction on our headquarters building in Sunnyvale, CA in addition to the $302,000 spent as of December 31, 2017. The Company expects to occupy the upgraded portion of its headquarters building in the first half of fiscal 2019. December 31, 2017 March 31, 2017 (In thousands) Other assets: Escrow deposit $ 1,000 $ 1,750 Non-current deferred income taxes 98 22 Prepaid income taxes — 552 Deposits 131 132 $ 1,229 $ 2,456 The escrow deposit at December 31, 2017 and March 31, 2017 includes approximately $1.0 million and $1.8 million, respectively, placed in escrow in connection with the Company’s acquisition of MikaMonu Group Ltd. (“MikaMonu”) on November 23, 2015. During the quarter ended December 31, 2017 $750,000 was reclassified to current assets. The following tables summarize the components of intangible assets and related accumulated amortization balances at December 31, 2017 and March 31, 2017 (in thousands): As of December 31, 2017 Gross Accumulated Net Carrying Intangible assets: Product designs $ 590 $ (590) $ — Patents 4,220 (1,153) 3,067 Software 80 (80) — Total $ 4,890 $ (1,823) $ 3,067 As of March 31, 2017 Gross Accumulated Net Carrying Intangible assets: Product designs $ 590 $ (590) $ — Patents 4,220 (918) 3,302 Software 80 (80) — Total $ 4,890 $ (1,588) $ 3,302 Amortization of intangible assets included in cost of revenues was $78,000 and $78,000 for the three months ended December 31, 2017 and 2016, respectively, and $235,000 and $270,000 for the nine months ended December 31, 2017 and 2016, respectively. As of December 31, 2017, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands): Fiscal year ending March 31, 2018 (remaining three months) $ 78 2019 267 2020 233 2021 233 2022 233 Thereafter 2,023 Total $ 3,067 December 31, 2017 March 31, 2017 (In thousands) Accrued expenses and other liabilities: Accrued compensation $ 3,122 $ 3,990 Escrow indemnity accrual 5 484 Accrued professional fees 27 66 Accrued commissions 256 238 Contingent consideration 757 1,117 Accrued retention payment 260 251 Miscellaneous accrued expenses 823 905 $ 5,250 $ 7,051 December 31, 2017 March 31, 2017 (In thousands) Other accrued expenses: Contingent consideration $ 5,194 $ 5,083 Other long-term accrued liabilities 260 335 $ 5,454 $ 5,418

4. GOODWILL

4. GOODWILL	9 Months Ended
	Dec. 31, 2017
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. The Company had a goodwill balance of $8.0 million as of both March 31, 2017 and December 31, 2017. The goodwill resulted from the acquisition of MikaMonu Group Ltd. in fiscal 2016. The Company utilized a two-step quantitative analysis to complete its annual impairment test during the fourth quarter of fiscal 2017 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 2017 annual assessment that necessitated a quantitative impairment analysis for the Company’s one reporting unit.

5. INCOME TAXES

5. INCOME TAXES	9 Months Ended
	Dec. 31, 2017
INCOME TAXES
NOTE 5-INCOME TAXES	NOTE 5—INCOME TAXES The current portion of the Company’s unrecognized tax benefits was $0 at both December 31, 2017 and March 31, 2017. The long-term portion at December 31, 2017 and March 31, 2017 was $823,000 and $244,000, respectively, of which the timing of the resolution is uncertain. As of December 31, 2017, $1.3 million of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets. As of December 31, 2017 and March 31, 2017, the Company’s net deferred tax assets of $5.6 million and $8.9 million, respectively, were subject to a full valuation allowance. On December 22, 2017, the “Tax Cuts and Jobs Act” ("H.R. 1") was signed into law, significantly impacting several sections of the Internal Revenue Code. This new law includes significant changes to the U.S. corporate income tax system, including a permanent reduction in the corporate income tax rate from 35% to 21%, limitations on the deductibility of interest expense and executive compensation and the transition of U.S. international taxation from a worldwide tax system to a territorial tax system. The Company remeasured all deferred tax assets and liabilities as of December 22, 2017, based on the provisions of H.R. 1. This new legislation resulted in a estimated tax provision of $639,000 in the quarter ended December 31, 2017 related to the transition tax associated with deemed repatriation of foreign earnings. In addition, as a result of provisions in the new legislation related to indefinite lived net operating loss carryovers and the refundability of minimum tax credit carryovers, the Company recorded a deferred tax benefit related to a valuation allowance release of $99,000 in the quarter ended December 31, 2017. Finally, the Company recorded a liability for taxes payable of $68,000 at December 31, 2017 that will be paid over a period of up to eight years. This original estimate may be materially impacted by a number of additional considerations, including but not limited to the issuance of the final regulations, the Company’s ongoing analysis of the new law and the Company’s actual earnings for the fiscal year ending March 31, 2018. Management believes that within the next twelve months the Company will have no reduction in uncertain tax benefits, 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 2017 remain open to examination by federal tax authorities, and fiscal years 2011 through 2017 remain open to examination by California tax authorities. The Company’s estimated annual effective income tax rate was approximately (13.7%) and 7.4% as of December 31, 2017 and 2016, respectively. The annual effective tax rates as of December 31, 2017 and 2016 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, the foreign tax differential, and the impact of new tax reform.

6. FINANCIAL INSTRUMENTS

6. FINANCIAL INSTRUMENTS	9 Months Ended
	Dec. 31, 2017
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 December 31, 2017, the Level 1 category included money market funds of $9.5 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 December 31, 2017, the Level 2 category included short-term investments of $17.0 million and long-term investments of $8.2 million, which were comprised of certificates of deposit, corporate debt securities and government and agency securities. Level 3: Valuations based on inputs that are unobservable and involve management judgment and the reporting entity’s own assumptions about market participants and pricing. As of December 31, 2017, the Company’s Level 3 financial instruments measured at fair value on the Condensed Consolidated Balance Sheets consisted of the contingent consideration liability related to the acquisition of MikaMonu. The fair value of the contingent consideration liability was initially 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 re-measured to fair value with changes recorded in selling, general and administrative expenses in the Consolidated Statements of Operations. The change in fair value for the three month and nine month periods ended December 31, 2017 were $41,000 and $121,000, respectively. 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 December 31, 2017 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 9,520 $ 9,520 $ — $ — Marketable securities 25,229 — 25,229 — Total $ 34,749 $ 9,520 $ 25,229 $ — 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, 2017 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 6,293 $ 6,293 $ — $ — Marketable securities 29,097 — 29,097 — Total $ 35,390 $ 6,293 $ 29,097 $ — 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 $9.5 million and $6.3 million at December 31, 2017 and March 31, 2017, 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: December 31, 2017 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: Corporate notes $ 555 $ — $ — $ 555 Certificates of deposit 7,500 1 (16) 7,485 Foreign government obligations 5,431 — (26) 5,405 State and municipal obligations 1,585 — — 1,585 Agency bonds 2,002 — (2) 2,000 Total short-term investments $ 17,073 $ 1 $ (44) $ 17,030 Long-term investments: Certificates of deposit $ 8,250 $ — $ (51) $ 8,199 Total long-term investments $ 8,250 $ — $ (51) $ 8,199 March 31, 2017 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: State and municipal obligations $ 1,632 $ 1 $ — $ 1,633 Corporate notes 557 — (2) 555 Agency bonds 3,012 — (7) 3,005 Foreign government obligations 1,001 — (1) 1,000 Certificates of deposit 10,000 9 (3) 10,006 Total short-term investments $ 16,202 $ 10 $ (13) $ 16,199 Long-term investments: Certificates of deposit $ 7,500 $ 3 $ (39) $ 7,464 Foreign government obligations 5,442 — (8) 5,434 Total long-term investments $ 12,942 $ 3 $ (47) $ 12,898 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 asset related to unrecognized gains and losses on short-term and long-term investments was $21,000 and $17,000 at December 31, 2017 and March 31, 2017, respectively. As of December 31, 2017, contractual maturities of the Company’s available-for-sale investments were as follows: Fair Cost Value (In thousands) Maturing within one year $ 17,073 $ 17,030 Maturing in one to three years 8,250 8,199 $ 25,323 $ 25,229 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	9 Months Ended
	Dec. 31, 2017
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, payment by the Company is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party’s claims. Further, the Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements. It is not possible to predict the maximum potential amount of future payments 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 and the accrued warranty liability were not material as of December 31, 2017 and March 31, 2017 and for the three months and nine months ended December 31, 2017 or 2016.

8. STOCK- BASED COMPENSATION

8. STOCK- BASED COMPENSATION	9 Months Ended
	Dec. 31, 2017
STOCK- BASED COMPENSATION
NOTE 8-STOCK- BASED COMPENSATION	NOTE 8—STOCK-BASED COMPENSATION As of December 31, 2017, 4,575,111 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 nine months ended December 31, 2017: 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, 2017 5,464,185 7,622,830 $ 5.09 Granted (898,874) 898,874 $ 7.17 Exercised — (523,773) $ 4.39 $ 1,787,814 Forfeited 9,800 (97,200) $ 5.10 Balance at December 31, 2017 4,575,111 7,900,731 5.68 $ 5.37 Options vested and exercisable 4,884,592 3.96 $ 5.20 $ 13,630,614 Options vested and expected to vest 7,829,674 5.65 $ 5.36 $ 20,474,445 The weighted average fair value per underlying share of options granted during the three months ended December 31, 2017 and 2016 was $2.35 and $1.75, respectively, and for the nine months ended December 31, 2017 and 2016 was $2.49 and $1.56, respectively. Options outstanding by exercise price at December 31, 2017 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 - 3.43 884,945 $ 3.29 3.50 733,789 $ 3.27 $ 3.60 - 4.17 1,037,183 $ 3.98 2.94 942,089 $ 4.02 $ 4.30 - 4.98 1,201,191 $ 4.82 5.79 713,709 $ 4.74 $ 4.99 - 5.23 1,158,816 $ 5.10 7.70 175,239 $ 5.12 $ 5.28 - 6.00 990,966 $ 5.64 5.61 815,243 $ 5.71 $ 6.16 - 6.54 857,658 $ 6.35 5.57 630,425 $ 6.41 $ 6.61 - 6.86 843,896 $ 6.80 6.48 604,005 $ 6.78 $ 7.00 - 7.26 733,506 $ 7.20 8.04 161,513 $ 7.00 $ 7.40 83,990 $ 7.40 9.35 - $ - $ 9.20 108,580 $ 9.20 3.08 108,580 $ 9.20 7,900,731 $ 5.37 5.68 4,884,592 $ 5.20 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 December 31, Nine Months Ended December 31, 2017 2016 2017 2016 (In thousands) Cost of revenues $ 73 $ 78 $ $ 209 Research and development 292 251 712 Selling, general and administrative 170 100 Total $ 535 $ 429 $ 1,521 $ 1,359 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 nine months ended December 31, 2017 or December 31, 2016 due to a full valuation allowance. There were no windfall tax benefits realized from exercised stock options in either of these periods. Compensation cost capitalized within inventory at December 31, 2017 was immaterial. As of December 31, 2017, the Company’s total unrecognized compensation cost was $4.2 million, which will be recognized over a weighted average period of 2.18 years. The Company calculated the fair value of stock-based awards in the periods presented using the Black-Scholes option pricing model and the following weighted average assumptions: Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 (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	9 Months Ended
	Dec. 31, 2017
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 December 31, Nine Months Ended December 31, 2017 2016 2017 2016 (In thousands) United States $ 6,404 $ 3,838 $ 15,820 $ 14,094 China 1,372 2,024 4,319 8,121 Singapore 1,068 2,947 4,768 8,502 Netherlands 1,145 1,576 3,128 3,539 Rest of the world 1,129 1,099 3,417 3,532 $ 11,118 $ 11,484 $ 31,452 $ 37,788 All sales are denominated in United States dollars.

1. THE COMPANY AND SUMMARY OF16

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Dec. 31, 2017
The Company And Summary Of Significant Accounting Policies
Basis of presentation	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, 2017. The consolidated results of operations for the nine months ended December 31, 2017 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, 2017.
Recent accounting pronouncements	Recent accounting pronouncements In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-09, “ Scope of Modification Accounting ”. ASU 2017-09 amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. This guidance clarifies that an entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: (i) the fair value of the award, (ii) the vesting conditions of the award, and (iii) the classification of the award as an equity instrument or liability instrument. The standard is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017, including adoption in any interim period. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, " Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The standard eliminates the second step in the goodwill impairment test which requires an entity to determine the implied fair value of the reporting unit’s goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company does not anticipate the adoption of this guidance to have a material impact on its consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash” . ASU 2016-18 requires entities to include in their cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. As a result, companies will no longer present transfers between cash and cash equivalents, and restricted cash and restricted cash equivalents in the statement of cash flows. The guidance is effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact this new guidance will have on its consolidated statement of cash flows. In October 2016, the 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 . The Company adopted ASU 2016-16 in the quarter ended June 30, 2017. ASU 2016-16 is applied on a modified retrospective basis in the period of adoption. The adoption of this guidance resulted in a derecognition of a prepaid tax asset of $595,000 related to a prior period intra-entity asset transfer, with an offsetting reduction to retained earnings. Because of the Company’s valuation allowance in the United States, there was no change to the Company’s net deferred tax assets. The derecognition of the prepaid tax asset as of April 1, 2017 decreased the Company’s income tax expense by $11,000 in each of the quarters ended June 30, 2017, September 30, 2017 and December 31, 2017 and is projected to decrease the Company’s fiscal 2018 tax expense by $43,000. In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”. ASU 2016-15 adds or clarifies guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. The amendments in the update provide guidance on eight specific cash flow issues, and are effective for annual and interim periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The amendments to the guidance should be applied using a retrospective transition method for each period presented and, if it is impracticable to apply all of the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact this new guidance will have on its consolidated statement of cash flows. In June 2016, the FASB issued ASU 2016-13 , “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, loans, and other financial instruments, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted beginning April 1, 2019. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the impact of this standard 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. The Company adopted ASU 2016-09 in the quarter ended June 30, 2017. The Company has elected to continue to estimate forfeitures as part of the compensation cost of equity awards. ASU 2016-09 is applied prospectively to all excess tax benefits and tax deficiencies resulting from settlements after the date of adoption. The adoption of ASU 2016-09 resulted in an increase to the net operating loss carryforward deferred tax asset and a corresponding increase in the valuation allowance of $654,000 attributable to excess tax benefits not previously recognized as they did not reduce income taxes payable. 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. Although the Company is currently evaluating the impact the pronouncement will have on its consolidated financial statements and related disclosures, the Company expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption. In January 2016, the FASB issued ASU 2016-01, “ Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” 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 July 2015, the FASB issued ASU 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 Company adopted ASU 2015-11 in the quarter ended June 30, 2017. Implementation of this guidance did not 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 (Topic 606 )" and has subsequently issued several supplemental and/or clarifying ASUs (collectively, "ASC 606"). 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. The Company plans to adopt ASC 606 on April 1, 2018 using the modified retrospective transition method with the cumulative effect of initial adoption, if any, recognized in opening retained earnings on the adoption date. Almost all of the Company’s purchase orders, contracts or purchase agreements do not contain performance obligations other than delivery of the agreed upon product, with title transfer occurring at the time of shipment subject to estimated allowance for distributor price adjustments and rights of return. Thus, the Company generally recognizes revenue upon shipment of the product. The Company has historically deferred recognition of revenue on shipments to its distributors that have ship from stock and debit and price protection rights due to a lack of a fixed and determinable price that could be reasonably estimated. The Company has been revising certain of its distribution agreements to eliminate ship from stock and debits and price protection in order to eliminate any uncertainty in regards to a final selling price and to establish a selling price that is fixed and determinable at the time of shipment to the distributor. Assuming all other revenue recognition criteria have been met, it is likely that the new guidance would require the Company to recognize revenue and cost relating to distributor sales upon shipment to the distributor, subject to estimated allowance for distributor price adjustments and rights of return. The Company is currently in the process of assessing the impact this guidance is expected to have upon adoption, which includes determining the impact of the new guidance on the Company’s revenue recognition practices, business processes, internal controls and the additional disclosures which may be required upon the adoption of ASC 606.

2. NET INCOME (LOSS) PER COMM17

2. NET INCOME (LOSS) PER COMMON SHARE (Tables)	9 Months Ended
	Dec. 31, 2017
NET INCOME (LOSS) PER COMMON SHARE
Basic and diluted net income (loss) per share	Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 (In thousands, except per share amounts) Net income (loss) $ (1,528) $ 348 $ (4,780) $ 1,234 Denominators: Weighted average shares—Basic 21,165 20,300 21,003 20,707 Dilutive effect of employee stock options — 795 — 530 Dilutive effect of employee stock purchase plan options — 2 — 2 Weighted average shares—Dilutive 21,165 21,097 21,003 21,239 Net income (loss) per common share—Basic $ (0.07) $ 0.02 $ (0.23) $ 0.06 Net income (loss) per common share—Diluted $ (0.07) $ 0.02 $ (0.23) $ 0.06
Anti-dilutive shares	Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 (In thousands) Shares underlying options and ESPP shares 2,969 4,621 2,785 5,247

3. BALANCE SHEET DETAIL (Tables

3. BALANCE SHEET DETAIL (Tables)	9 Months Ended
	Dec. 31, 2017
BALANCE SHEET DETAIL
Schedule of Inventories	December 31, 2017 March 31, 2017 (In thousands) Inventories: Work-in-progress $ 2,683 $ 2,112 Finished goods 4,046 6,803 Inventory at distributors 66 296 $ 6,795 $ 9,211
Schedule of Accounts Receivable, Net	December 31, 2017 March 31, 2017 (In thousands) Accounts receivable, net: Accounts receivable $ 5,627 $ 6,453 Less: Allowances for sales returns, doubtful accounts and other (82) (104) $ 5,545 $ 6,349
Schedule of Prepaid Expenses and Other Current Assets	December 31, 2017 March 31, 2017 (In thousands) Prepaid expenses and other current assets: Prepaid tooling and masks $ 419 $ 836 Prepaid income taxes — 43 Escrow deposit 762 1,234 Other receivables 207 216 Other prepaid expenses and other current assets 685 448 $ 2,073 $ 2,777
Schedule of Property and Equipment, Net	December 31, 2017 March 31, 2017 (In thousands) Property and equipment, net: Computer and other equipment $ 18,491 $ 18,585 Software 4,902 4,793 Land 3,900 3,900 Building and building improvements 2,310 2,256 Furniture and fixtures 107 111 Leasehold improvements 725 715 Construction in progress 302 — 30,737 30,360 Less: Accumulated depreciation (23,070) (22,671) $ 7,667 $ 7,689
Schedule of Other Assets	December 31, 2017 March 31, 2017 (In thousands) Other assets: Escrow deposit $ 1,000 $ 1,750 Non-current deferred income taxes 98 22 Prepaid income taxes — 552 Deposits 131 132 $ 1,229 $ 2,456
Schedule of Intangible Assets	The following tables summarize the components of intangible assets and related accumulated amortization balances at December 31, 2017 and March 31, 2017 (in thousands): As of December 31, 2017 Gross Accumulated Net Carrying Intangible assets: Product designs $ 590 $ (590) $ — Patents 4,220 (1,153) 3,067 Software 80 (80) — Total $ 4,890 $ (1,823) $ 3,067 As of March 31, 2017 Gross Accumulated Net Carrying Intangible assets: Product designs $ 590 $ (590) $ — Patents 4,220 (918) 3,302 Software 80 (80) — Total $ 4,890 $ (1,588) $ 3,302
Estimated future amortization expense of intangible assets	As of December 31, 2017, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands): Fiscal year ending March 31, 2018 (remaining three months) $ 78 2019 267 2020 233 2021 233 2022 233 Thereafter 2,023 Total $ 3,067
Schedule of Accrued Expenses and Other Liabilities	December 31, 2017 March 31, 2017 (In thousands) Accrued expenses and other liabilities: Accrued compensation $ 3,122 $ 3,990 Escrow indemnity accrual 5 484 Accrued professional fees 27 66 Accrued commissions 256 238 Contingent consideration 757 1,117 Accrued retention payment 260 251 Miscellaneous accrued expenses 823 905 $ 5,250 $ 7,051
Other Accrued Expenses	December 31, 2017 March 31, 2017 (In thousands) Other accrued expenses: Contingent consideration $ 5,194 $ 5,083 Other long-term accrued liabilities 260 335 $ 5,454 $ 5,418

6. FINANCIAL INSTRUMENTS (Table

6. FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Dec. 31, 2017
FINANCIAL INSTRUMENTS
Schedule of fair value of financial assets measured on a recurring basis	The fair value of financial assets measured on a recurring basis is as follows (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Assets Observable Unobservable and Liabilities Inputs Inputs December 31, 2017 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 9,520 $ 9,520 $ — $ — Marketable securities 25,229 — 25,229 — Total $ 34,749 $ 9,520 $ 25,229 $ — 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, 2017 (Level 1) (Level 2) (Level 3) Assets: Money market funds $ 6,293 $ 6,293 $ — $ — Marketable securities 29,097 — 29,097 — Total $ 35,390 $ 6,293 $ 29,097 $ —
Schedule of available-for-sale investments	December 31, 2017 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: Corporate notes $ 555 $ — $ — $ 555 Certificates of deposit 7,500 1 (16) 7,485 Foreign government obligations 5,431 — (26) 5,405 State and municipal obligations 1,585 — — 1,585 Agency bonds 2,002 — (2) 2,000 Total short-term investments $ 17,073 $ 1 $ (44) $ 17,030 Long-term investments: Certificates of deposit $ 8,250 $ — $ (51) $ 8,199 Total long-term investments $ 8,250 $ — $ (51) $ 8,199 March 31, 2017 Gross Gross Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Short-term investments: State and municipal obligations $ 1,632 $ 1 $ — $ 1,633 Corporate notes 557 — (2) 555 Agency bonds 3,012 — (7) 3,005 Foreign government obligations 1,001 — (1) 1,000 Certificates of deposit 10,000 9 (3) 10,006 Total short-term investments $ 16,202 $ 10 $ (13) $ 16,199 Long-term investments: Certificates of deposit $ 7,500 $ 3 $ (39) $ 7,464 Foreign government obligations 5,442 — (8) 5,434 Total long-term investments $ 12,942 $ 3 $ (47) $ 12,898
Schedule of contractual maturities of the available-for-sale investments	Fair Cost Value (In thousands) Maturing within one year $ 17,073 $ 17,030 Maturing in one to three years 8,250 8,199 $ 25,323 $ 25,229

8. STOCK- BASED COMPENSATION (T

8. STOCK- BASED COMPENSATION (Tables)	9 Months Ended
	Dec. 31, 2017
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, 2017 5,464,185 7,622,830 $ 5.09 Granted (898,874) 898,874 $ 7.17 Exercised — (523,773) $ 4.39 $ 1,787,814 Forfeited 9,800 (97,200) $ 5.10 Balance at December 31, 2017 4,575,111 7,900,731 5.68 $ 5.37 Options vested and exercisable 4,884,592 3.96 $ 5.20 $ 13,630,614 Options vested and expected to vest 7,829,674 5.65 $ 5.36 $ 20,474,445
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 - 3.43 884,945 $ 3.29 3.50 733,789 $ 3.27 $ 3.60 - 4.17 1,037,183 $ 3.98 2.94 942,089 $ 4.02 $ 4.30 - 4.98 1,201,191 $ 4.82 5.79 713,709 $ 4.74 $ 4.99 - 5.23 1,158,816 $ 5.10 7.70 175,239 $ 5.12 $ 5.28 - 6.00 990,966 $ 5.64 5.61 815,243 $ 5.71 $ 6.16 - 6.54 857,658 $ 6.35 5.57 630,425 $ 6.41 $ 6.61 - 6.86 843,896 $ 6.80 6.48 604,005 $ 6.78 $ 7.00 - 7.26 733,506 $ 7.20 8.04 161,513 $ 7.00 $ 7.40 83,990 $ 7.40 9.35 - $ - $ 9.20 108,580 $ 9.20 3.08 108,580 $ 9.20 7,900,731 $ 5.37 5.68 4,884,592 $ 5.20
Summary of stock-based compensation expense by line item	Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 (In thousands) Cost of revenues $ 73 $ 78 $ $ 209 Research and development 292 251 712 Selling, general and administrative 170 100 Total $ 535 $ 429 $ 1,521 $ 1,359
Schedule of weighted average assumptions	Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 (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 INF21

9. SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	9 Months Ended
	Dec. 31, 2017
SEGMENT AND GEOGRAPHIC INFORMATION
Net revenues by geographic area	Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 (In thousands) United States $ 6,404 $ 3,838 $ 15,820 $ 14,094 China 1,372 2,024 4,319 8,121 Singapore 1,068 2,947 4,768 8,502 Netherlands 1,145 1,576 3,128 3,539 Rest of the world 1,129 1,099 3,417 3,532 $ 11,118 $ 11,484 $ 31,452 $ 37,788

1. THE COMPANY AND SUMMARY OF22

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended				9 Months Ended		12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings	$ 59,280,000				$ 59,280,000			$ 64,655,000
Provision for (benefit from) income taxes	590,000			$ (53,000)	720,000	$ 64,000
ASU 2016-16
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid tax asset	(595,000)				(595,000)
Retained earnings	(595,000)				(595,000)
Provision for (benefit from) income taxes	(11,000)	$ (11,000)	$ (11,000)
ASU 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net operating loss carryforwards	654,000				654,000
Valuation allowance	$ 654,000				$ 654,000
Forecast | ASU 2016-16
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Provision for (benefit from) income taxes							$ (43,000)

2. NET INCOME (LOSS) PER COMM23

2. NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Net income (loss)	$ (1,528)	$ 348	$ (4,780)	$ 1,234
Weighted average shares-Basic	21,165	20,300	21,003	20,707
Weighted average shares-Dilutive	21,165	21,097	21,003	21,239
Net income (loss) per common share - Basic	$ (0.07)	$ 0.02	$ (0.23)	$ 0.06
Net income (loss) per common share - Diluted	$ (0.07)	$ 0.02	$ (0.23)	$ 0.06
Employee stock options
Dilutive effect of options		795		530
Employee stock purchase plan options
Dilutive effect of options		2		2

2. NET INCOME (LOSS) PER COMM24

2. NET INCOME (LOSS) PER COMMON SHARE - Shares underlying options (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
NET INCOME (LOSS) PER COMMON SHARE
Shares underlying options and ESPP shares	2,969	4,621	2,785	5,247

3. BALANCE SHEET DETAIL - Inven

3. BALANCE SHEET DETAIL - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Inventories:
Work-in-progress	$ 2,683	$ 2,112
Finished goods	4,046	6,803
Inventory at distributors	66	296
Total Inventory	$ 6,795	$ 9,211

3. BALANCE SHEET DETAIL - Accou

3. BALANCE SHEET DETAIL - Accounts receivable, net (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Accounts receivable, net:
Accounts receivable	$ 5,627	$ 6,453
Less: Allowances for sales returns, doubtful accounts and other	(82)	(104)
Total accounts receivable, net	$ 5,545	$ 6,349

3. BALANCE SHEET DETAIL - Prepa

3. BALANCE SHEET DETAIL - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Prepaid expenses and other current assets:
Prepaid tooling and masks	$ 419	$ 836
Prepaid income taxes		43
Escrow deposit	762	1,234
Other receivables	207	216
Other prepaid expenses and other current assets	685	448
Total prepaid expenses and other current assets	$ 2,073	$ 2,777

3. BALANCE SHEET DETAIL - Prope

3. BALANCE SHEET DETAIL - Property, Plant and Equipment (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2019	Mar. 31, 2017
Property and equipment, net:
Property and equipment, gross	$ 30,737,000		$ 30,737,000			$ 30,360,000
Less: Accumulated depreciation	(23,070,000)		(23,070,000)			(22,671,000)
Property, Plant and Equipment, Net, Total	7,667,000		7,667,000			7,689,000
Depreciation	245,000	$ 289,000	714,000	$ 919,000
Computer and other equipment
Property and equipment, net:
Property and equipment, gross	18,491,000		18,491,000			18,585,000
Software
Property and equipment, net:
Property and equipment, gross	4,902,000		4,902,000			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	2,310,000		2,310,000			2,256,000
Furniture and fixtures
Property and equipment, net:
Property and equipment, gross	107,000		107,000			111,000
Leasehold improvements
Property and equipment, net:
Property and equipment, gross	725,000		725,000			$ 715,000
Construction in progress
Property and equipment, net:
Property and equipment, gross	$ 302,000		$ 302,000
Forecast
Property and equipment, net:
Expected expenditures					$ 1,000,000

3. BALANCE SHEET DETAIL - Other

3. BALANCE SHEET DETAIL - Other assets (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Other assets:
Escrow deposit	$ 1,000	$ 1,750
Non-current deferred income taxes	98	22
Prepaid income taxes		552
Deposits	131	132
Total Other Assets	$ 1,229	$ 2,456

3. BALANCE SHEET DETAIL - Escro

3. BALANCE SHEET DETAIL - Escrow (Details) - USD ($)	Dec. 31, 2017	Mar. 31, 2017
Other assets:
Escrow deposit, noncurrent	$ 1,000,000	$ 1,750,000
Escrow deposit, current	762,000	$ 1,234,000
MikaMonu
Other assets:
Escrow deposit, noncurrent	(750,000)
Escrow deposit, current	$ 750,000

3. BALANCE SHEET DETAIL - Intan

3. BALANCE SHEET DETAIL - Intangible assets (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2017
Gross Carrying Amount	$ 4,890,000		$ 4,890,000		$ 4,890,000
Accumulated Amortization	(1,823,000)		(1,823,000)		(1,588,000)
Total	3,067,000		3,067,000		3,302,000
Amortization of intangible assets	78,000	$ 78,000	235,000	$ 270,000
Product designs
Gross Carrying Amount	590,000		590,000		590,000
Accumulated Amortization	(590,000)		(590,000)		(590,000)
Patents
Gross Carrying Amount	4,220,000		4,220,000		4,220,000
Accumulated Amortization	(1,153,000)		(1,153,000)		(918,000)
Total	3,067,000		3,067,000		3,302,000
Software.
Gross Carrying Amount	80,000		80,000		80,000
Accumulated Amortization	$ (80,000)		$ (80,000)		$ (80,000)

3. BALANCE SHEET DETAIL - Futur

3. BALANCE SHEET DETAIL - Future amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Year Ending March 31,
2018 (remaining three months)	$ 78
2,019	267
2,020	233
2,021	233
2,022	233
Thereafter	2,023
Total	$ 3,067	$ 3,302

3. BALANCE SHEET DETAIL - Accru

3. BALANCE SHEET DETAIL - Accrued expenses and other liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Accrued expenses and other liabilities:
Accrued compensation	$ 3,122	$ 3,990
Escrow indemnity accrual	5	484
Accrued professional fees	27	66
Accrued commissions	256	238
Contingent consideration	757	1,117
Accrued retention payment	260	251
Miscellaneous accrued expenses	823	905
Total Accrued Expenses and Other Liabilities	$ 5,250	$ 7,051

3. BALANCE SHEET DETAIL - Oth34

3. BALANCE SHEET DETAIL - Other accrued expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Mar. 31, 2017
Other accrued expenses:
Contingent consideration	$ 5,194	$ 5,083
Other long term accrued liabilities	260	335
Other accrued expenses	$ 5,454	$ 5,418

4. GOODWILL (Details)

4. GOODWILL (Details)	3 Months Ended	9 Months Ended
	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)segment
Goodwill.
Goodwill	$ 7,978,000	$ 7,978,000
Goodwill impairment	$ 0
Number of reportable business segments | segment		1

5. INCOME TAXES (Details)

5. INCOME TAXES (Details) - USD ($)	Dec. 22, 2017	Dec. 21, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2017
INCOME TAXES
Unrecognized tax benefits, current			$ 0		$ 0		$ 0
Unrecognized tax benefits, noncurrent			823,000		823,000		244,000
Deferred tax assets unrecognized tax benefit			1,300,000		1,300,000
Possible reduction in uncertain tax benefits			0		0
Corporate income tax rate	21.00%	35.00%
Net deferred tax assets			5,600,000		5,600,000		8,900,000
Provision (benefit) for income taxes			590,000	$ (53,000)	720,000	$ 64,000
Income taxes payable			$ 885,000		885,000		$ 244,000
Income tax payable period			8 years
One-time tax provision			$ 639,000
Transition tax liability			68,000		$ 68,000
Deferred income tax benefit			$ (99,000)
Effective annual income tax rate (as a percentage)					(13.70%)	7.40%

6. FINANCIAL INSTRUMENTS (Detai

6. FINANCIAL INSTRUMENTS (Details) - USD ($)	3 Months Ended	9 Months Ended
	Dec. 31, 2017	Dec. 31, 2017	Mar. 31, 2017
Fair value measurements
Short-term investments	$ 17,030,000	$ 17,030,000	$ 16,199,000
Long-term investments	8,199,000	$ 8,199,000	12,898,000
Discount rate (as a percent)		14.80%
Recurring
Fair value measurements
Money market funds	9,520,000	$ 9,520,000	6,293,000
Marketable securities	25,229,000	25,229,000	29,097,000
Assets	34,749,000	34,749,000	35,390,000
Recurring | Level 1
Fair value measurements
Money market funds	9,520,000	9,520,000	6,293,000
Assets	9,520,000	9,520,000	6,293,000
Recurring | Level 2
Fair value measurements
Marketable securities	25,229,000	25,229,000	29,097,000
Assets	25,229,000	25,229,000	$ 29,097,000
Selling, general and administrative
Fair value measurements
Change in contingent consideration liability	$ 41,000	$ 121,000

6. FINANCIAL INSTRUMENTS - Avai

6. FINANCIAL INSTRUMENTS - Available for sale investments (Details) - USD ($)	9 Months Ended
	Dec. 31, 2017	Mar. 31, 2017
Available-for-sale investments
Cost	$ 25,323,000
Fair Value	$ 25,229,000
Other information
Maximum maturity period of investment portfolio	3 years
Deferred tax asset related to unrecognized gains and losses on short-term and long-term investments	$ 21,000	$ 17,000
Short-term investments
Available-for-sale investments
Cost	17,073,000	16,202,000
Gross Unrealized Gains	1,000	10,000
Gross Unrealized Losses	(44,000)	(13,000)
Fair Value	17,030,000	16,199,000
Short-term investments | State and municipal obligations
Available-for-sale investments
Cost	1,585,000	1,632,000
Gross Unrealized Gains		1,000
Fair Value	1,585,000	1,633,000
Short-term investments | Corporate notes
Available-for-sale investments
Cost	555,000	557,000
Gross Unrealized Losses		(2,000)
Fair Value	555,000	555,000
Short-term investments | Certificates of deposits
Available-for-sale investments
Cost	7,500,000	10,000,000
Gross Unrealized Gains	1,000	9,000
Gross Unrealized Losses	(16,000)	(3,000)
Fair Value	7,485,000	10,006,000
Short-term investments | Foreign government obligations
Available-for-sale investments
Cost	5,431,000	1,001,000
Gross Unrealized Losses	(26,000)	(1,000)
Fair Value	5,405,000	1,000,000
Short-term investments | Agency bonds
Available-for-sale investments
Cost	2,002,000	3,012,000
Gross Unrealized Losses	(2,000)	(7,000)
Fair Value	2,000,000	3,005,000
Long-term investment
Available-for-sale investments
Cost	8,250,000	12,942,000
Gross Unrealized Gains		3,000
Gross Unrealized Losses	(51,000)	(47,000)
Fair Value	8,199,000	12,898,000
Long-term investment | Certificates of deposits
Available-for-sale investments
Cost	8,250,000	7,500,000
Gross Unrealized Gains		3,000
Gross Unrealized Losses	(51,000)	(39,000)
Fair Value	$ 8,199,000	7,464,000
Long-term investment | Foreign government obligations
Available-for-sale investments
Cost		5,442,000
Gross Unrealized Losses		(8,000)
Fair Value		$ 5,434,000

6. FINANCIAL INSTRUMENTS - Cont

6. FINANCIAL INSTRUMENTS - Contractual maturities (Details) $ in Thousands	Dec. 31, 2017USD ($)
FINANCIAL INSTRUMENTS
Maturing within one year, Cost	$ 17,073
Maturing in one to three years, Cost	8,250
Total	25,323
Maturing within one year, Fair Value	17,030
Maturing in one to three years, Fair Value	8,199
Fair Value	$ 25,229

7. COMMITMENTS AND CONTINGENC40

7. COMMITMENTS AND CONTINGENCIES - Royalties and Product Warranties (Details)	9 Months Ended
	Dec. 31, 2017
Product warranties
Warranty period	3 years

8. STOCK- BASED COMPENSATION -

8. STOCK- BASED COMPENSATION - Stock options activities (Details)	9 Months Ended
	Dec. 31, 2017USD ($)$ / sharesshares
STOCK- BASED COMPENSATION
Shares available for grant, Beginning	5,464,185
Granted (in shares)	(898,874)
Forfeited (in shares)	9,800
Shares available for grant, Ending	4,575,111
Number of Shares Underlying Options Outstanding
Balance at the beginning of the period (in shares)	7,622,830
Granted (in shares)	898,874
Exercised (in shares)	(523,773)
Forfeited (in shares)	(97,200)
Balance at the end of the period (in shares)	7,900,731
Options vested and exercisable (in shares)	4,884,592
Options vested and expected to vest (in shares)	7,829,674
Weighted Average Remaining Contractual Life
Options weighted average remaining contractual life	5 years 8 months 5 days
Options vested and exercisable	3 years 11 months 16 days
Options vested and expected to vest	5 years 7 months 24 days
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share) | $ / shares	$ 5.09
Granted (in dollars per share) | $ / shares	7.17
Exercised (in dollars per share) | $ / shares	4.39
Forfeited (in dollars per share) | $ / shares	5.10
Balance at the end of the period (in dollars per share) | $ / shares	5.37
Options vested and exercisable (in dollars per share) | $ / shares	5.20
Options vested and expected to vest (in dollars per share) | $ / shares	$ 5.36
Intrinsic Value
Exercised (in dollars) | $	$ 1,787,814
Options vested and exercisable (in dollars) | $	13,630,614
Options vested and expected to vest (in dollars) | $	$ 20,474,445

8. STOCK- BASED COMPENSATION 42

8. STOCK- BASED COMPENSATION - Options outstanding by exercise price (Details) - $ / shares	9 Months Ended
	Dec. 31, 2017	Mar. 31, 2017
Options outstanding by exercise price
Exercise Price (in dollars per share)	$ 5.37	$ 5.09
Number of Shares Underlying Options Outstanding (in shares)	7,900,731
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.37
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 8 months 5 days
Options Exercisable, Number Vested and Exercisable (in shares)	4,884,592
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.20
$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)	884,945
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.29
Options Outstanding, Weighted Average Remaining Contractual Life	3 years 6 months
Options Exercisable, Number Vested and Exercisable (in shares)	733,789
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.27
$3.60 - $4.17
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	3.60
Exercise Price, high end of range (in dollars per share)	$ 4.17
Number of Shares Underlying Options Outstanding (in shares)	1,037,183
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.98
Options Outstanding, Weighted Average Remaining Contractual Life	2 years 11 months 9 days
Options Exercisable, Number Vested and Exercisable (in shares)	942,089
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 4.02
$4.30 - $4.98
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	4.30
Exercise Price, high end of range (in dollars per share)	$ 4.98
Number of Shares Underlying Options Outstanding (in shares)	1,201,191
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 4.82
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 9 months 15 days
Options Exercisable, Number Vested and Exercisable (in shares)	713,709
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 4.74
$4.99 - $5.23
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	4.99
Exercise Price, high end of range (in dollars per share)	$ 5.23
Number of Shares Underlying Options Outstanding (in shares)	1,158,816
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.10
Options Outstanding, Weighted Average Remaining Contractual Life	7 years 8 months 12 days
Options Exercisable, Number Vested and Exercisable (in shares)	175,239
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.12
$5.28 - $6.00
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	5.28
Exercise Price, high end of range (in dollars per share)	$ 6
Number of Shares Underlying Options Outstanding (in shares)	990,966
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.64
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 7 months 10 days
Options Exercisable, Number Vested and Exercisable (in shares)	815,243
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.71
$6.16 - $6.54
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	6.16
Exercise Price, high end of range (in dollars per share)	$ 6.54
Number of Shares Underlying Options Outstanding (in shares)	857,658
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 6.35
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 6 months 26 days
Options Exercisable, Number Vested and Exercisable (in shares)	630,425
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 6.41
$6.61 - $6.86
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	6.61
Exercise Price, high end of range (in dollars per share)	$ 6.86
Number of Shares Underlying Options Outstanding (in shares)	843,896
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 6.80
Options Outstanding, Weighted Average Remaining Contractual Life	6 years 5 months 23 days
Options Exercisable, Number Vested and Exercisable (in shares)	604,005
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 6.78
$7.00 - $7.26
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	7
Exercise Price, high end of range (in dollars per share)	$ 7.26
Number of Shares Underlying Options Outstanding (in shares)	733,506
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 7.20
Options Outstanding, Weighted Average Remaining Contractual Life	8 years 15 days
Options Exercisable, Number Vested and Exercisable (in shares)	161,513
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 7
$ 7.40
Options outstanding by exercise price
Exercise Price (in dollars per share)	$ 7.40
Number of Shares Underlying Options Outstanding (in shares)	83,990
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 7.40
Options Outstanding, Weighted Average Remaining Contractual Life	9 years 4 months 6 days
$ 9.20
Options outstanding by exercise price
Exercise Price (in dollars per share)	$ 9.20
Number of Shares Underlying Options Outstanding (in shares)	108,580
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 9.20
Options Outstanding, Weighted Average Remaining Contractual Life	3 years 29 days
Options Exercisable, Number Vested and Exercisable (in shares)	108,580
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		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Stock-based compensation expense by line item
Stock-based compensation expense	$ 535	$ 429	$ 1,521	$ 1,359
Other information
Income tax benefit recognized from allocation of share-based compensation expense	0	0	0	0
Windfall tax benefits realized	0	0	0	0
Unrecognized compensation costs	4,200		$ 4,200
Weighted average period of recognition of unrecognized compensation costs			2 years 2 months 5 days
Cost of revenues
Stock-based compensation expense by line item
Stock-based compensation expense	73	78	$ 186	209
Research and development
Stock-based compensation expense by line item
Stock-based compensation expense	292	251	843	712
Selling, general and administrative
Stock-based compensation expense by line item
Stock-based compensation expense	$ 170	$ 100	$ 492	$ 438

8. STOCK- BASED COMPENSATION 44

8. STOCK- BASED COMPENSATION - Weighted average assumptions (Details) - $ / shares	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Stock-based compensation
Weighted average fair value per underlying share of options granted (in dollars per share)	$ 2.35	$ 1.75	$ 2.49	$ 1.56
Employee stock options
Stock-based compensation
Risk-free interest rate (as a percent)	2.00%	1.62%
Risk-free interest rate, low end of range (as a percent)			1.84%	1.12%
Risk-free interest rate, high end of range (as a percent)			2.00%	1.62%
Expected life	5 years	5 years	5 years	5 years
Volatility (as a percent)	35.50%	33.30%
Volatility, low end of range (as a percent)			35.50%	33.30%
Volatility, high end of range (as a percent)			36.50%	34.80%
Employee stock purchase plan options
Stock-based compensation
Risk-free interest rate (as a percent)	1.42%	0.45%
Risk-free interest rate, low end of range (as a percent)			1.04%	0.38%
Risk-free interest rate, high end of range (as a percent)			1.42%	0.45%
Expected life	6 months	6 months	6 months	6 months
Volatility (as a percent)	38.80%	30.80%
Volatility, low end of range (as a percent)			38.80%	30.80%
Volatility, high end of range (as a percent)			51.10%	39.60%

9. SEGMENT AND GEOGRAPHIC INF45

9. SEGMENT AND GEOGRAPHIC INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2017USD ($)segment	Dec. 31, 2016USD ($)
Net revenues and long-lived assets by geographic area
Revenue, Net	$ 11,118	$ 11,484	$ 31,452	$ 37,788
Number of reportable business segments | segment			1
United States
Net revenues and long-lived assets by geographic area
Revenue, Net	6,404	3,838	$ 15,820	14,094
China
Net revenues and long-lived assets by geographic area
Revenue, Net	1,372	2,024	4,319	8,121
Singapore
Net revenues and long-lived assets by geographic area
Revenue, Net	1,068	2,947	4,768	8,502
Netherlands
Net revenues and long-lived assets by geographic area
Revenue, Net	1,145	1,576	3,128	3,539
Rest of the world
Net revenues and long-lived assets by geographic area
Revenue, Net	$ 1,129	$ 1,099	$ 3,417	$ 3,532