LONG-TERM INVESTMENT

9 Months Ended

Dec. 30, 2012

LONG-TERM INVESTMENT

NOTE 6.       LONG-TERM INVESTMENT

Our long-term investment consists of our investment in Skypoint Telecom Fund II (US), L.P. (“Skypoint Fund”). Skypoint Fund is a venture capital fund that invested primarily in private companies in the telecommunications and/or networking industries. We account for this non-marketable equity investment under the cost method. We periodically review and determine whether the investment is other-than-temporarily impaired, in which case the investment is written down to its impaired value.

As of the dates indicated below, our long-term investment balance, which is included in the “Other non-current assets” line item on the condensed consolidated balance sheets was as follows (in thousands):

	December 30, 2012		April 1, 2012
Beginning balance	$	1,273	$	1,563
Contributions		15		114
Capital distributions		—		(404	)
Ending balance	$	1,288	$	1,273

We have made approximately $4.8 million in capital contributions to Skypoint Fund since we became a limited partner in July 2001. We contributed $15,000 to the fund during the nine months ended December 30, 2012. In the three months ended July 1, 2012, the limited partners of the Skypoint Fund agreed to extend the term of the Skypoint Fund for one additional year. As of December 30, 2012, we do not have any further capital commitments.

The carrying amount of $1.3 million as of December 30, 2012 is net of capital contributions, cumulative impairment charges and capital distributions.

Impairment

We evaluate our long-term investment for impairment on an annual basis or whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. We conduct our annual impairment analysis in the fourth quarter of each fiscal year. Impairment is tested by comparing the carrying amount to the fair value of the underlying investments. If the carrying amount exceeds its fair value, long term-investment is considered impaired and a second step is performed to measure the amount of impairment loss. As of December 30, 2012, no events or changes in circumstances suggest that the carrying amount for long-term investment may not be recoverable and therefore we did not perform an interim long-term investment impairment analysis.