XML 17 R12.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Debt
6 Months Ended
Jun. 30, 2011
Debt  
Debt

7. Debt

The Company's Amended Credit Facility executed with Silicon Valley Bank on October 29, 2010, and again amended in January 2011, contains financial covenants consisting of a minimum adjusted quick ratio and minimum quarterly free cash flow. The minimum adjust quick ratio is defined as the sum of our cash held with SVB and 80% of eligible domestic accounts receivable divided by the Amended Credit Facility balance. Free cash flow is defined as Adjusted EBITDA (a non-GAAP term defined as net income (loss) excluding the effects of interest, taxes, depreciation, amortization, stock-based compensation and other non-recurring income or expense items, such as in-process research and development expense and acquisition related transaction and restructuring expenses), less capital expenditures and cash taxes. As of June 30, 2011, the Company was in compliance with the minimum adjusted quick ratio covenant but was not in compliance with the minimum quarterly free cash flow covenant. In August 2011, the Company and Silicon Valley Bank executed an amendment to the amended credit facility. The amendment included a waiver for non-compliance with the minimum quarterly free cash flow covenant for the quarterly period ended June 30, 2011 (see Note 14).