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3. DEBT

3 Months Ended

Jun. 30, 2012

As of June 30, 2012, the Company had the following credit facilities:

	●	$45.0 million term loan under the Credit Agreement, dated as of October 9, 2007, as amended (the “Term Loan Credit Agreement”), by and among the Company, Silver Point Finance, LLC and its affiliates SPCP Group IV, LLC and SPCP Group, LLC (together with Silver Point Finance, LLC, “Silver Point”), and PCHI and Ganesha, as Credit Parties, bearing a fixed interest rate of 14.5% per year ($45.0 million outstanding balance at June 30, 2012). If any event of default occurs and continues, the lender can increase the interest rate to 19.5% per year. The stated maturity date for this Credit Agreement is April 13, 2013 and, accordingly, the term loan is reflected in the accompanying unaudited condensed consolidated balance sheet as current debt.

	●	$14.0 million revolving line of credit under the Credit and Security Agreement, dated as of August 30, 2010, as amended (the “Revolving Loan Agreement”), by and among the Company, MidCap Funding IV, LLC, as assigned to it from MidCap Financial, LLC, as administrative agent and a lender, and Silicon Valley Bank, as a lender (collectively, the “Lenders”), bearing an interest rate of 5.0% plus LIBOR, with a 2.5% floor, per year (7.5% at June 30, 2012) and an unused commitment fee of 0.625% per year ($14.0 million outstanding balance at June 30, 2012). For purposes of calculating interest, all payments the Company makes on the revolving line of credit are subject to a six business day clearance period. The stated maturity date for this Revolving Loan Agreement is August 30, 2013.

The Company’s credit facilities contain various affirmative and negative covenants and customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to similar obligations, events of bankruptcy and insolvency, judgment defaults, the invalidity of liens on collateral, and the occurrence of events which have a material adverse effect on the Company. As of June 30, 2012, the Company was in compliance with all financial covenants.

The Company's outstanding debt consists of the following:

	June 30,		March 31,
	2012		2012

Current:
Revolving line of credit	$	14,000	$	14,000
Term loan		45,000		–
	$	59,000	$	14,000

Noncurrent:
Term loan	$	–	$	45,000

On August 1, 2012, the Company amended its Revolving Loan Agreement and Term Loan Credit Agreement (Note 14).

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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