COMMITMENTS AND CONTINGENCIES

12 Months Ended

Mar. 30, 2013

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

14.COMMITMENTS AND CONTINGENCIES

Operating Leases

As part of the Company’s acquisition of a six-inch wafer fabrication operation in fiscal 1999, the Company assumed an operating lease for its manufacturing facility.  On April 16, 2010, the Board of Directors of the Company approved the amendment of the lease extending the lease term by five years, expiring on April 30, 2016 at a specified new rent schedule.  Beginning May 2011, the monthly rent was  $48,000 with a provision for an annual increase of approximately 3%  in each of the following five years.  The Company is responsible for maintenance costs, including property taxes, utilities, insurance and other costs. As of March 30, 2013, the Company had an asset retirement obligation of approximately $622,000 as a result of the provisions under this operating lease to restore the property to its original condition at the end of the lease period.The Company is accreting up to this liability over the related lease period, and as of March 30, 2013, the recorded liability which is included in other accrued liabilities amounts to $575,000.

The Company also leases a facility to house its operations in Hong Kong under an operating lease for the equivalent of approximately $19,900 per month exclusive of building maintenance fees, rates, taxes and other duties imposed by the government of Hong Kong upon the leased property.  The original lease for 23,600 square feet and a lease for additional space of 4,500 square feet were combined and renewed in November 2012. This lease covers three years from December 1, 2012 to November 30, 2015.  A lease for additional space of 10,000 square feet was renewed in August 2011and covers three years from October 1, 2011 to September 30, 2014. The Company has an option to renew all three of these Hong Kong leases for an additional three years.

The Company has other operating leases for its field sales offices in Shenzhen & Shanghai, China, Taiwan, Japan, and Korea expiring at various dates through fiscal year 2016.

Future minimum lease payments under all non-cancelable operating leases as of March 30, 2013 are as follows (in thousands):

Payment Due by Fiscal Year	Operating Lease
2014	$	908
2015		853
2016		784
2017		55
	$	2,600

Facilities rental expenses (net of sublease income) were approximately$1,086,000 in fiscal year 2013. Facilities rental expenses were  $1,070,000 in fiscal year 2012 and  $1,068,000in fiscal 2011.

Indemnification

As is customary in the Company’s industry, the Company has agreed to defend certain customers, distributors, suppliers, and subcontractors against certain claims, which third parties may assert that its products allegedly infringe certain of their intellectual property rights, including patents, trademarks, trade secrets, or copyrights.  The Company has agreed to pay certain amounts of any resulting damage awards and typically has the option to replace any infringing product with non-infringing product.  The terms of these indemnification obligations are generally perpetual from the effective date of the agreement.  In certain cases, there are limits on and exceptions to the Company’s potential liability for indemnification relating to intellectual property infringement claims.  The Company cannot estimate the amount of potential future payments, if any, that it might be required to make as a result of these agreements.  To date, the Company has not paid any damage award or been required to defend any claim related to its indemnification obligations, and accordingly, it has not accrued any amount for indemnification obligations.  However, there can be no assurance that the Company will not have any financial exposure under those indemnification obligations in the future.

Legal Proceedings

From time to time the Company is subject to possible claims or assessments from third parties arising in the normal course of business.  Management has reviewed such possible claims and assessments with legal counsel and believes that it is unlikely that they will result in a material adverse impact on the Company’s financial position, results of operations or cash flows.