Note 6 - Debt

3 Months Ended

Sep. 30, 2011

Debt Disclosure [Text Block]

Note 6: Debt

Debt, including capitalized lease obligations, is comprised of the following (in thousands):

	September 30,		June 30,
	2011		2011
Notes payable and current maturities
Loan and Security Agreement	$	9,500	$	8,000
Short-term foreign credit facility		59		27
Capitalized leases		297		211
	$	9,856	$	8,238
Long-term debt
Capitalized leases		614		721
	$	10,470	$	8,959

The material financial covenants of the Loan and Security Agreement are 1) achieve a minimum Tangible Net Worth of $130 million excluding any pension liability, 2) incur no more than $10.0 million for capital expenditures on a fiscal year basis, and 3) maintain a Debt Service Coverage Ratio of a minimum of 1.25 to 1.  As of September 30, 2011, the Company was in compliance with each of these financial covenants.

The effective interest rate on the Loan and Security Agreement for the three-months ended September 30, 2011 was 2.1%.