Long-term Debt and Capital Lease Obligations

12 Months Ended

Dec. 31, 2012

Long-term Debt and Capital Lease Obligations

6. Long-term Debt and Capital Lease Obligations

Long-term debt and capital lease obligations were comprised of the following at December 31:

In thousands	2012			2011
Bank term loan	$	11,200		$	12,600
Capital lease obligations		15			69
		11,215			12,669
Less current portion		(2,115	)		(1,454	)
	$	9,100		$	11,215

The term loan provides for quarterly payments of principal and interest with final scheduled maturity on December 31, 2015. The loan bears interest at LIBOR plus 1.25 to 2.25 percent, depending on the percentage of the Company’s liquid assets on deposit with or invested through the bank, or at the prime rate. The effective interest on the loan was 1.46 percent at December 31, 2012. The loan is secured by a lien on all assets of the Company excluding intellectual property, which the Company has agreed not to pledge to any other party. The loan requires the Company to maintain a minimum of $15 million in unrestricted cash, cash equivalents and investments. The loan also contains certain covenants that restrict additional indebtedness, additional liens and sales of assets, and dividends, distributions or repurchases of common stock.

In addition, the Company leases certain equipment under capital leases with original terms of up to four years. These leases have effective interest rates ranging from 7.2 percent to 12.3 percent and are secured by the underlying leased assets.

The future scheduled principal payments due under these financing obligations were as follows at December 31, 2012:

In thousands	Bank Term Loan			Capital Lease Obligations
Year ended December 31:
2013	$	2,100		$	15
2014		4,200			—
2015		4,900			—
		11,200			15
Less current portion		(2,100	)		(15	)
Long-term portion	$	9,100		$	—