Commitments and Continencies

12 Months Ended

Mar. 31, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

18. Commitments and Contingencies

Commitments

We lease certain equipment under capital lease arrangements expiring through fiscal 2016 at interest rates of 3.6% to 6.0%. We rent certain of our facilities under operating leases expiring through fiscal 2023.

Future minimum lease payments under capital leases, operating leases and commitments for the purchase of inventory and property and equipment are as follows (in thousands):

Fiscal Year Ended March 31,		Capital Leases		Operating Leases		Other Purchase Obligations		Total
	2013	$	3,179	$	1,647	$	18,566	$	23,392
	2014		2,746		1,190		6,091		10,027
	2015		2,470		1,081		4,500		8,051
	2016		709		764		4,500		5,973
	2017		-		701		-		701
	Thereafter		-		3,016		-		3,016
Total minimum payments			9,104	$	8,399	$	33,657	$	51,160
Less: interest			580
			8,524
Less: current portion			2,873
Capitalized lease obligations, net of current portion		$	5,651

Rent expense for fiscal years ended March 31, 2012, 2011 and 2010 amounted to $1.7 million, $2.1 million and $1.3 million, respectively.

As of March 31, 2012 and2011, we had cash deposits with financial institutions of $509,000 and $593,000, respectively, which were restricted as to use and represent compensating balances for current or future discounted acceptances and letters of credit. These balances are included in restricted cash on our balance sheets.

On November 13, 2009, we entered into a credit agreement with BOW. On December 29, 2010, we entered into an amendment with BOW to increase the line of credit to $20.0 million and to extend the expiration date to October 31, 2013. The credit agreement includes a letter of credit subfacility, under which BOW agrees to issue letters of credit of up to $3.0 million. However, borrowing under this subfacility is limited to the extent of availability under the $20.0 million revolving line of credit. At March 31, 2012, the outstanding principal balance under the credit agreement was $15.0 million. See Note 8, “Borrowing Arrangements” for further information regarding the terms of the credit agreement.

Legal Proceedings

We are currently involved in a variety of legal matters that arise in the normal course of business. Based on information currently available, management does not believe that the ultimate resolution of these matters will have a material adverse effect on our financial condition, results of operations and cash flows. Were an unfavorable ruling to occur, there exists the possibility of a material adverse impact on the results of operations of the period in which the ruling occurs.

Other Commitments and Contingencies

On occasion, we provide limited indemnification to customers against intellectual property infringement claims related to our products. To date, we have not experienced significant activity or claims related to such indemnifications. We also provide in the normal course of business indemnification to our officers, directors and selected parties. We are unable to estimate any potential future liability, if any. Therefore, no liability for these indemnification agreements has been recorded as of March 31, 2012 and 2011.