Debt	12 Months Ended
Dec. 31, 2011
Notes to Financial Statements
Debt	6. Debt The Company has a secured revolving credit facility with Silicon Valley Bank (SVB) with maximum borrowing availability of $5 million (subject to the borrowing base) and a maturity date of December 31, 2012. The loan and security agreement, as amended, governing this revolving credit facility contains customary borrowing terms and conditions, including the accuracy of representations and warranties, compliance with financial maintenance and restrictive covenants and the absence of events of default. Under the financial maintenance covenants, the Company is required to maintain at all times, tested on the last day of each month: (1) a ratio of “quick assets to current liabilities” minus “deferred revenue” (all as defined in the loan and security agreement) of at least 1.00:1.00 and (2) “tangible net worth” (as defined in the loan and security agreement) of at least $25,350 increasing by (i) 50% of quarterly net profits and (ii) 75% of net proceeds derived from issuances of equity and issuances of subordinated debt. Borrowings under the revolving credit facility bear interest at the prime rate, as in effect from time to time, plus 50 basis points. The maximum that the Company may borrow at any given time is based on among other things, eligible accounts receivable, inventory, and cash. The Company is prohibited from paying cash dividends on its common stock. The Company’s obligations are secured by substantially all of its assets, principally accounts receivable and inventory. As of December 31, 2011, there were no borrowings outstanding under the revolving credit facility and approximately $3,274 was available for borrowing thereunder. As of December 31, 2011, the Company was in compliance with all covenants under the loan and security agreement, as amended. The foregoing description of the revolving credit facility is not complete and is qualified in its entirety by reference to the loan and security agreement dated as of October 23, 2008, as amended by the first amendment to loan and security agreement dated as of October 20, 2010 and further amended by the second amendment to loan and security agreement dated June 22, 2011, copies of which are listed and incorporated by reference as Exhibits 10.9, 10.10 and 10.11 to the report in which these Consolidated Financial Statements are included, and are incorporated by reference herein.

Debt

12 Months Ended

Dec. 31, 2011

6. Debt

The Company has a secured revolving credit facility with Silicon Valley Bank (SVB) with maximum borrowing availability of $5 million (subject to the borrowing base) and a maturity date of December 31, 2012. The loan and security agreement, as amended, governing this revolving credit facility contains customary borrowing terms and conditions, including the accuracy of representations and warranties, compliance with financial maintenance and restrictive covenants and the absence of events of default. Under the financial maintenance covenants, the Company is required to maintain at all times, tested on the last day of each month: (1) a ratio of “quick assets to current liabilities” minus “deferred revenue” (all as defined in the loan and security agreement) of at least 1.00:1.00 and (2) “tangible net worth” (as defined in the loan and security agreement) of at least $25,350 increasing by (i) 50% of quarterly net profits and (ii) 75% of net proceeds derived from issuances of equity and issuances of subordinated debt. Borrowings under the revolving credit facility bear interest at the prime rate, as in effect from time to time, plus 50 basis points. The maximum that the Company may borrow at any given time is based on among other things, eligible accounts receivable, inventory, and cash. The Company is prohibited from paying cash dividends on its common stock. The Company’s obligations are secured by substantially all of its assets, principally accounts receivable and inventory. As of December 31, 2011, there were no borrowings outstanding under the revolving credit facility and approximately $3,274 was available for borrowing thereunder. As of December 31, 2011, the Company was in compliance with all covenants under the loan and security agreement, as amended. The foregoing description of the revolving credit facility is not complete and is qualified in its entirety by reference to the loan and security agreement dated as of October 23, 2008, as amended by the first amendment to loan and security agreement dated as of October 20, 2010 and further amended by the second amendment to loan and security agreement dated June 22, 2011, copies of which are listed and incorporated by reference as Exhibits 10.9, 10.10 and 10.11 to the report in which these Consolidated Financial Statements are included, and are incorporated by reference herein.

- 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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