Note 3 - Acquisition

9 Months Ended

Mar. 31, 2012

Business Combination Disclosure [Text Block]

Note 3 - Acquisition

On December 15, 2010, we acquired substantially all of the outstanding equity interests in Maquiladora Chambers de Mexico, S.A. de C.V. (“MCM”) through a purchase agreement with the previous equity interest holders for $245,000.

The following represents the estimated acquisition values of the net assets acquired as of December 15, 2010, the acquisition date (in thousands):

Net working capital	$	(49	)
Land		107
Buildings		279
Equipment		64
Customer relationship intangible		107
Long-term employee retirement obligation assumed		(263	)
Net assets acquired	$	245

All assets and liabilities were recorded at their estimated fair values on the acquisition date.  We derived the estimated fair values from assumptions we believe unrelated market participants would use based on both observable and unobservable marketplace factors.  Our estimate of the value of net assets’ acquired equaled the fair value of the total consideration paid.  As a result, no goodwill was recognized.

The acquired buildings are being depreciated using the straight line method over their remaining economic lives, which range from 10 to 32 years.  The acquired furniture, software and equipment are being depreciated using the straight line method over periods of two to five years.  The customer relationship intangible is being amortized using the straight line method over three years.