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Borrowings
9 Months Ended
Jun. 27, 2014
Borrowings

NOTE 8 – BORROWINGS

The Company entered into a new credit agreement with Silicon Valley Bank on November 21, 2013, resulting in the termination of its prior credit agreement with Bank of America. The Company’s credit agreement with Silicon Valley Bank allows for borrowing up to 80% of its eligible accounts receivable with a maximum borrowing capacity of $12.0 million. The credit agreement has interest rates ranging from LIBOR + 2.25% to Prime + 0.75%, expires on November 21, 2015, and is secured by substantially all of the assets of the Company. The Company’s current borrowing capacity is $12.0 million, of which approximately $0.8 million is committed through standby letters of credit related to the Company’s capital lease obligations. There were no amounts outstanding under the Company’s credit agreement as of June 27, 2014 and September 27, 2013. The credit agreement contains certain financial covenants, with which the Company was in compliance as of June 27, 2014.