Note 9 - Debt

6 Months Ended

Dec. 31, 2011

Debt Disclosure [Text Block]

Note 9:                      Debt

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

	December 31, 2011		June 30, 2011
Notes payable and current maturities
Loan and Security Agreement	$	12,600	$	8,000
Current portion of Term Note		1,261		-
Short-term foreign credit facility		70		27
Capitalized leases		395		211
	$	14,326	$	8,238
Long-term debt
Term Note		14,136		-
Capitalized leases		609		721
		14,745		721
	$	29,071	$	8,959

The material financial covenants of the Loan and Security Agreement are 1)  achieve a minimum Tangible Net Worth of $120 million excluding any pension liability, 2) incur no more than $15.0 million for capital expenditures on a fiscal year basis,  3) maintain a Debt Service Coverage Ratio of a minimum of 1.25 to 1 and 4) maintain consolidated cash plus liquid investments of not less than $10.0 million at any time.  As of December 31, 2011, the Company was in compliance with each of these financial covenants.

The effective interest rate on the short-term borrowings under the Loan and Security Agreement for the six-months ended December 31, 2011 was 1.89%.

On November 22, 2011, in conjunction with the Bytewise acquisition, the Company entered into a new $15.5 million term loan (the “Term Loan”) under the existing Loan and Security Agreement with TD Bank N.A.  The term loan is a ten year loan bearing a fixed interest rate of 4.5% and is payable in fixed monthly payments of principal and interest of $160,640.  The term loan is subject to the same financial covenants as the Loan and Security Agreement.