Certain Financial Statement Information (Tables)

9 Months Ended

Dec. 31, 2013

Certain Financial Statement Information [Abstract]

Schedule of Accounts receivable

Accounts receivable:

	December 31, 2013			March 31, 2013
	(In thousands)
Accounts receivable	$	29,281		$	25,278
Less: allowance for bad debts	(481		)	(703		)
	$	28,800		$	24,575

Schedule of Inventories

Inventories:

	December 31, 2013		March 31, 2013
	(In thousands)
Finished goods	$	4,513	$	7,247
Work in process	4,637		4,098
Raw materials	1,332		1,555
	$	10,482	$	12,900

Schedule of Assets Held-for-sale

Assets held for sale:

	December 31, 2013		March 31, 2013
	(In thousands)
Assets held for sale	$	14,260	$	—

Schedule of Other current assets

Other current assets:

	December 31, 2013		March 31, 2013
	(In thousands)
Prepaid expenses	$	11,177	$	13,762
Executive deferred compensation assets	1,157		693
Deposits	653		828
Receivable from sale of strategic investment and TPack	3,353		1,331
Other	1,489		1,384
	$	17,829	$	17,998

Schedule of Property and equipment

Property and equipment:

	Useful Life	December 31, 2013			March 31, 2013
	(In years)	(In thousands)
Machinery and equipment *	5-7	$	44,887		$	40,063
Leasehold improvements **	1-15	9,011			14,202
Computers, office furniture and equipment	3-7	43,992			43,485
Buildings **	31.5	—			2,756
Land **	—	—			9,800
		97,890			110,306
Less: accumulated depreciation and amortization		(77,718		)	(75,915		)
		$	20,172		$	34,391

* Includes capitalized mask costs.

** December 31, 2013 balances exclude $14.3 million, including land, building and leasehold improvements related to the Company's headquarters in Sunnyvale, California, which have been reclassified as assets held for sale and included under current assets.

Schedule of Goodwill

Goodwill is as follows:

	December 31, 2013		March 31, 2013
	(In thousands)
Goodwill	$	11,425	$	13,183

Schedule of Purchased intangible assets

Purchase-related intangibles are as follows:

	December 31, 2013								March 31, 2013
	Gross		Accumulated Amortization and Impairments			Net		Weighted average remaining useful life	Gross		Accumulated Amortization and Impairments			Net		Weighted average remaining useful life
	(In thousands)							(In years)	(In thousands)							(In years)
Developed technology/in-process research and development	$	425,000	$	(425,000	)	$	—	—	$	441,300	$	(431,771	)	$	9,529	3.5
Customer relationships	6,330		(6,163		)	167		0.7	12,830		(10,507		)	2,323		2.1
Patents/core technology rights/tradename	62,306		(62,306		)	—		—	63,206		(63,067		)	139		0.3
	$	493,636	$	(493,469	)	$	167		$	517,336	$	(505,345	)	$	11,991

During the quarter ended June 30, 2013, $11.4 million of purchased intangibles were written off pursuant to the sale of TPack. Please refer to Note 8, Sale of TPack A/S, to the Condensed Consolidated Financial Statements for further discussion.

Schedule of Estimated future amortization expense of purchased intangible assets

As of December 31, 2013, the estimated future amortization expense of purchased intangible assets to be charged to operating expenses was as follows (in thousands):

	Operating Expenses
Fiscal Years Ending March 31,
2014 (remainder of year)	$	63
2015	104
Total	$	167

Schedule of Other assets

Other assets:

	December 31, 2013		March 31, 2013
	(In thousands)
Non-current portion of prepaid expenses	$	4,842	$	7,866
Strategic investments	3,000		3,000
	$	7,842	$	10,866

Schedule of Other accrued liabilities

Other accrued liabilities:

	December 31, 2013		March 31, 2013
	(In thousands)
Employee related liabilities	$	1,902	$	2,236
Executive deferred compensation	1,415		1,284
Income taxes	1,254		903
Professional fees	2,033		3,840
Other	4,574		2,467
	$	11,178	$	10,730

Schedule of Cash, cash equivalents and available-for-sale investments by type of instruments

The following is a summary of cash, cash equivalents and available-for-sale investments by type of instrument (in thousands):

	December 31, 2013									March 31, 2013
	Amortized Cost		Gross Unrealized					Estimated Fair Value		Amortized Cost		Gross Unrealized					Estimated Fair Value
			Gains		Losses							Gains		Losses
Cash	$	19,716	$	—	$	—		$	19,716	$	8,529	$	—	$	—		$	8,529
Cash equivalents	3,914		—		—			3,914		10,536		—		—			10,536
U.S. Treasury securities and agency bonds	11,747		8		(4		)	11,751		12,363		10		—			12,373
Corporate bonds	15,482		56		(4		)	15,534		15,567		63		(2		)	15,628
Mortgage-backed and asset-backed securities*	4,015		300		(47		)	4,268		3,655		355		(7		)	4,003
Closed-end bond funds	14,374		2,261		(818		)	15,817		21,914		5,340		(39		)	27,215
Preferred stock	2,406		878		—			3,284		4,878		2,314		—			7,192
	$	71,654	$	3,503	$	(873	)	$	74,284	$	77,442	$	8,082	$	(48	)	$	85,476
Reported as:
Cash and cash equivalents								$	23,630								$	19,065
Short-term investments available-for-sale								50,654									66,411
								$	74,284								$	85,476

* At December 31, 2013 and March 31, 2013, approximately $1.1 million and $1.4 million of the estimated fair value presented were mortgage-backed securities, respectively.

Schedule of Cash, cash equivalents and available-for-sale investments by type of instruments measured at fair value on recurring basis

The following is a summary of cash, cash equivalents and available-for-sale investments by type of instrument measured at fair value on a recurring basis (in thousands):

	December 31, 2013								March 31, 2013
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash	$	19,716	$	—	$	—	$	19,716	$	8,529	$	—	$	—	$	8,529
Cash equivalents	3,914		—		—		3,914		9,508		1,028		—		10,536
U.S. Treasury securities and agency bonds	11,596		155		—		11,751		12,373		—		—		12,373
Corporate bonds	—		15,534		—		15,534		—		15,628		—		15,628
Mortgage-backed and asset-backed securities	—		4,268		—		4,268		—		4,003		—		4,003
Closed-end bond funds	15,817		—		—		15,817		27,215		—		—		27,215
Preferred stock	—		3,284		—		3,284		—		7,192		—		7,192
	$	51,043	$	23,241	$	—	$	74,284	$	57,625	$	27,851	$	—	$	85,476

Schedule of Cost and estimated fair values of available-for-sale securities with stated maturities by contractual maturity

The following is a summary of the cost and estimated fair values of available-for-sale securities with stated maturities, which include U.S. Treasury securities and agency bonds, corporate bonds and mortgage-backed and asset-backed securities, by contractual maturity (in thousands):

	December 31, 2013				March 31, 2013
	Cost		Estimated Fair Value		Cost		Estimated Fair Value
Less than 1 year	$	7,259	$	7,411	$	9,205	$	9,217
Mature in 1 – 2 years	22,341		22,369		19,843		20,040
Mature in 3 – 5 years	707		771		1,575		1,649
Mature after 5 years	937		1,002		962		1,098
	$	31,244	$	31,553	$	31,585	$	32,004

Schedule of Gross unrealized losses

The following is a summary of gross unrealized losses as of (in thousands):

	Less Than 12 Months of Unrealized Losses					12 Months or More of Unrealized Losses					Total
As of December 31, 2013	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
U.S. Treasury securities and agency bonds	$	2,566	$	(4	)	$	—	$	—		$	2,566	$	(4	)
Corporate bonds	2,811		(4		)	—		—			2,811		(4		)
Mortgage-backed and asset-backed securities	1,451		(47		)	6		—			1,457		(47		)
Closed-end bond funds	6,344		(721		)	377		(97		)	6,721		(818		)
	$	13,172	$	(776	)	$	383	$	(97	)	$	13,555	$	(873	)

	Less Than 12 Months of Unrealized Losses					12 Months or More of Unrealized Losses					Total
As of March 31, 2013	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
U.S. Treasury securities and agency bonds	$	300	$	—		$	—	$	—		$	300	$	—
Corporate bonds	2,276		(2		)	113		—			2,389		(2		)
Mortgage-backed and asset-backed securities	647		(3		)	—		(4		)	647		(7		)
Closed-end bond funds	—		—			6,991		(39		)	6,991		(39		)
	$	3,223	$	(5	)	$	7,104	$	(43	)	$	10,327	$	(48	)

Schedule of Warranty reserve activity

The following table summarizes warranty reserve activity (in thousands):

	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2013			2012			2013			2012
Beginning balance	$	187		$	370		$	220		$	454
Charged to costs of revenues	54			96			28			311
Cost incurred	(39		)	(108		)	(46		)	(407		)
Ending balance	$	202		$	358		$	202		$	358

Schedule of Interest income, net

Interest income (expense), net (in thousands):

	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2013		2012		2013		2012
Interest income	$	519	$	685	$	1,389	$	1,915
Net realized gain on short-term investments	6		207		3,290		1,401
	$	525	$	892	$	4,679	$	3,316

Schedule of Reconciliation of shares used to calculate basic and diluted net loss per share

The reconciliation of shares used to calculate basic and diluted net loss per share consists of the following (in thousands, except per share data):

	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2013			2012			2013			2012
Net loss	$	(7,284	)	$	(71,562	)	$	(28,810	)	$	(116,509	)
Shares used in net loss per share computation:
Weighted average common shares outstanding, basic	73,989			66,113			71,986			64,489
Net effect of dilutive common share equivalents	—			—			—			—
Weighted average common shares outstanding, diluted	73,989			66,113			71,986			64,489
Basic and diluted net loss per share	$	(0.10	)	$	(1.08	)	$	(0.40	)	$	(1.81	)