NOTE 8 — BORROWINGS

Short-term Borrowings

At June 30, 2011, the Company had no short-term borrowings. At March 31, 2011, the Company had $2.5 million of short-term borrowings outstanding under a credit line maintained with Smith Barney, collateralized by the Company’s auction rate security holdings, which were sold in full for cash in May 2011. Upon the sale of this last remaining auction rate security in May 2011, the Company paid in full the $2.5 million balance of its short-term borrowings using the sale proceeds (see Note 10 – Marketable Securities).

Letters of Credit – Beginning November 2010, the Company began utilizing Hang Seng Bank to issue letters of credit on behalf of the Company, as needed, on a 100% cash collateralized basis. At June 30, 2011, the Company had outstanding letters of credit totaling $2,049,000. A like amount of cash, which was posted by the Company as collateral against these outstanding letters of credit, at June 30, 2011, has been classified by the Company as Restricted Cash on the balance sheet.

Long-term Borrowings

At June 30, 2011 and March 31, 2011, borrowings under long-term facilities consisted of the following (in thousands):


	June 30, 2011			March 31, 2011
	(Unaudited)
Capitalized lease obligations and other		173			196
Less current maturities		(46	)		(46	)

Long term debt and notes payable	$	127		$	150