View Filing Data

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Dec. 31, 2013	Jan. 31, 2014
Document And Entity Information
Entity Registrant Name	GSI TECHNOLOGY INC
Entity Central Index Key	0001126741
Document Type	10-Q
Document Period End Date	Dec. 31, 2013
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		27,514,019
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2014

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2013	Mar. 31, 2013
ASSETS.
Cash and cash equivalents	$ 42,040	$ 41,120
Short-term investments	32,779	26,139
Accounts receivable, net	9,054	10,241
Inventories	9,221	13,809
Prepaid expenses and other current assets	4,090	4,945
Deferred income taxes	1,339	1,224
Total current assets	98,523	97,478
Property and equipment, net	9,625	10,774
Long-term investments	34,199	35,495
Other assets	2,387	2,098
Total assets	144,734	145,845
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	3,015	3,804
Accrued expenses and other liabilities	3,960	3,978
Deferred revenue	2,391	3,077
Total current liabilities	9,366	10,859
Income taxes payable	1,908	2,803
Total liabilities	11,274	13,662
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock: $0.001 par value authorized: 5,000,000 shares; issued and outstanding: none	0	0
Common Stock: $0.001 par value authorized: 150,000,000 shares; issued and outstanding: 27,521,248 and 27,065,209 shares, respectively	28	27
Additional paid-in capital	56,092	54,004
Accumulated other comprehensive income	22	45
Retained earnings	77,318	78,107
Total stockholders' equity	133,460	132,183
Total liabilities and stockholders' equity	$ 144,734	$ 145,845

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2013	Mar. 31, 2013
Stockholders' Equity
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	27,521,248	27,065,209
Common stock, shares outstanding	27,521,248	27,065,209

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Income Statement
Net revenues	$ 13,778	$ 17,514	$ 45,732	$ 50,307
Cost of revenues	8,410	10,170	25,496	28,994
Gross profit	5,368	7,344	20,236	21,313
Operating expenses:
Research and development	2,780	2,858	8,728	8,568
Selling, general and administrative	4,490	3,891	13,710	9,764
Total operating expenses	7,270	6,749	22,438	18,332
Income (loss) from operations	(1,902)	595	(2,202)	2,981
Interest income, net	92	117	291	348
Other income (expense), net	(30)	(8)	(33)	28
Income (loss) before income taxes	(1,840)	704	(1,944)	3,357
Provision (benefit) for income taxes	(1,106)	(140)	(1,155)	461
Net income (loss)	$ (734)	$ 844	$ (789)	$ 2,896
Net income (loss) per share:
Basic	$ (0.03)	$ 0.03	$ (0.03)	$ 0.11
Diluted	$ (0.03)	$ 0.03	$ (0.03)	$ 0.10
Weighted average shares used in per share calculations:
Basic	27,667	26,963	27,495	27,152
Diluted	27,667	27,987	27,495	27,957

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Consolidated Statements Of Comprehensive Income
Net income (loss)	$ (734)	$ 844	$ (789)	$ 2,896
Net unrealized gain (loss) on available-for-sale investments, net of tax	15	(38)	(23)	(46)
Comprehensive net income (loss)	$ (719)	$ 806	$ (812)	$ 2,850

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6518256

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-Name Statement of Financial Accounting Standard (FAS)
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-Publisher SEC
-Name Regulation S-X (SX)
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Research Bulletin (ARB)
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
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+ Details

- Definition

Net of tax amount of unrealized holding gain (loss) before reclassification adjustments and transfers on available-for-sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-Publisher AICPA
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+ Details

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net income (loss)	$ (789,000)	$ 2,896,000
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Allowance for sales returns, doubtful accounts and other	(15,000)	0
Provision for excess and obsolete inventories	1,642,000	544,000
Depreciation and amortization	1,486,000	1,847,000
Stock-based compensation	1,644,000	1,688,000
Deferred income taxes	(115,000)	63,000
Windfall tax benefits from stock options exercised	(280,000)	(20,000)
Amortization of bond premium on investments	640,000	792,000
Changes in assets and liabilities:
Accounts receivable	1,202,000	1,917,000
Inventory	2,946,000	993,000
Prepaid expenses and other assets	439,000	941,000
Accounts payable	(789,000)	(1,730,000)
Accrued expenses and other liabilities	(582,000)	(516,000)
Deferred revenue	(686,000)	(201,000)
Net cash provided by operating activities	6,743,000	9,214,000
Cash flows from investing activities:
Purchase of investments	(29,927,000)	(27,660,000)
Sales and maturities of short-term investments	23,912,000	22,673,000
Purchases of property and equipment	(253,000)	(313,000)
Net cash used in investing activities	(6,268,000)	(5,300,000)
Cash flows from financing activities:
Repurchase of common stock	(2,536,000)	(3,626,000)
Windfall tax benefits from stock options exercised	280,000	20,000
Proceeds from issuance of common stock under employee stock plans	2,701,000	654,000
Net cash provided by (used in) financing activities	445,000	(2,952,000)
Net increase in cash and cash equivalents	920,000	962,000
Cash and cash equivalents at beginning of the period	41,120,000	31,634,000
Cash and cash equivalents at end of the period	42,040,000	32,596,000
Non-cash investing activities:
Purchases of property and equipment through accounts payable and accruals	0	91,000
Supplemental cash flow information:
Net cash paid for income taxes	$ 28,000	$ 359,000

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Dec. 31, 2013
Accounting Policies
NOTE 1-THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1—THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES *Basis of presentation* The accompanying unaudited condensed consolidated financial statements of GSI Technology, Inc. and its subsidiaries (“GSI” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, the interim financial statements do not include all of the information and footnotes required by generally accepted accounting principles for annual financial statements. These interim financial statements contain all adjustments (which consist of only normal, recurring adjustments) that are, in the opinion of management, necessary to state fairly the interim financial information included therein. The Company believes that the disclosures are adequate to make the information not misleading. However, these financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2013. The consolidated results of operations for the three months and nine months ended December 31, 2013 are not necessarily indicative of the results to be expected for the entire fiscal year. *Significant accounting policies* The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2013. *Litigation and settlement costs* From time to time, the Company is involved in legal actions. The Company currently is a party to pending legal proceedings which it is defending aggressively. See Note 6 for additional information regarding this pending litigation. There are many uncertainties associated with any litigation, and the Company may not prevail. The litigation, regardless of its eventual outcome, will be costly and time consuming and, should the outcome be adverse to the Company, could result in the Company being required to pay significant monetary damages. If that occurs, our business, financial condition and results of operations could be materially and adversely affected. If information becomes available that causes us to determine that a loss in any of our pending litigation, or the settlement of such litigation, is probable, and we can reasonably estimate the loss associated with such events, we will record the loss in accordance with GAAP. However, the actual liability in any such litigation may be materially different from our estimates, which could require us to record additional costs. *Excess and Obsolete Inventory Write-Down* The Company recorded write-downs of excess and obsolete inventories of $1.1 million and $253,000, respectively, for the three months ended December 31, 2013 and 2012 and $1.6 million and $544,000, respectively, for the nine months ended December 31, 2013 and 2012. The increased write-downs recorded in the three and nine months ended December 31, 2013 were taken in response to the decline in the business and in response to the fact that management’s prior expectations regarding the recoverability of certain products, which were based on estimates of increasing demand for these products in anticipation of, and following the favorable ITC ruling on June 7, 2013 and the exit of a competitor from the SRAM market in the December 2012 quarter, did not materialize.

2. NET INCOME (LOSS) PER COMMON SHARE

9 Months Ended

Dec. 31, 2013

Net income (loss) per share:

NOTE 2 - NET INCOME (LOSS) PER COMMON SHARE

NOTE 2—NET INCOME (LOSS) PER COMMON SHARE

The Company uses the treasury stock method to calculate the weighted average shares used in computing diluted net income per share. The following table sets forth the computation of basic and diluted net income (loss) per share:

	Three Months Ended Dec. 31,					Nine Months Ended Dec. 31,
	2013			2012		2013			2012
	(In thousands, except per share amounts)
Net income (loss)	$	(734	)	$	844	$	(789	)	$	2,896

Denominators:
Weighted average shares—Basic	27,667			26,963		27,495			27,152
Dilutive effect of employee stock options	—			1,024		—			805
Dilutive effect of employee stock purchase plan options	—			—		—			—
Weighted average shares—Dilutive	27,667			27,987		27,495			27,957
Net income (loss) per common share—Basic	$	(0.03	)	$	0.03	$	(0.03	)	$	0.11
Net income (loss) per common share—Diluted	$	(0.03	)	$	0.03	$	(0.03	)	$	0.10

The following shares of common stock underlying outstanding stock options, determined on a weighted average basis, were excluded from the computation of diluted net income per share as they had an anti-dilutive effect:

	Three Months Ended Dec. 31,		Nine Months Ended Dec. 31,
	2013	2012	2013	2012
	(In thousands)
Shares underlying options	3,027	3,243	3,026	3,130

3. BALANCE SHEET DETAIL

9 Months Ended

Dec. 31, 2013

Balance Sheet Related Disclosures

NOTE 3 - BALANCE SHEET DETAIL

NOTE 3—BALANCE SHEET DETAIL

	Dec. 31, 2013		March 31, 2013
	(In thousands)
Inventories:
Work-in-progress	$	2,674	$	4,236
Finished goods	6,002		8,772
Inventory at distributors	545		801
	$	9,221	$	13,809

	Dec. 31, 2013			March 31, 2013
	(In thousands)
Accounts receivable, net:
Accounts receivable	$	9,155		$	10,357
Less: Allowances for sales returns, doubtful accounts and other	(101		)	(116		)
	$	9,054		$	10,241

	Dec. 31, 2013		March 31, 2013
	(In thousands)
Prepaid expenses and other current assets:
Prepaid tooling and masks	$	580	$	1,230
Prepaid income taxes	2,144		2,037
Other receivables	388		557
Other prepaid expenses	978		1,121
	$	4,090	$	4,945

	Dec. 31, 2013			March 31, 2013
	(In thousands)
Property and equipment, net:
Computer and other equipment	$	16,483		$	16,344
Software	4,779			4,690
Land	3,900			3,900
Building and building improvements	2,256			2,256
Furniture and fixtures	110			110
Leasehold improvements	792			767
Construction in progress	—			51
	28,320			28,118
Less: Accumulated depreciation and amortization	(18,695		)	(17,344		)
	$	9,625		$	10,774

Depreciation and amortization expense was $443,000 and $531,000, respectively, for the three months ended December 31, 2013 and 2012 and $1,351,000 and $1,712,000, respectively, for the nine months ended December 31, 2013 and 2012.

	Dec. 31, 2013		March 31, 2013
	(In thousands)
Other Assets:
Non-current deferred income taxes	$	1,696	$	1,272
Intangibles, net	609		744
Deposits	82		82
	$	2,387	$	2,098

The following table summarizes the components of intangible assets and related accumulated amortization balances at December 31, 2013 (in thousands):

	Gross
	Carrying		Accumulated			Net Carrying
	Amount		Amortization			Amount
Intangible assets:
Product designs	$	590	$	(365	)	$	225
Patents	720		(347		)	373
Software	80		(69		)	11
Total	$	1,390	$	(781	)	$	609

Amortization of intangible assets included in cost of revenues was $45,000 and $45,000, respectively, for the three months ended December 31, 2013 and 2012 and $135,000 and $135,000, respectively, for the nine months ended December 31, 2013 and 2012.

	Dec. 31, 2013		March 31, 2013
	(In thousands)
Accrued expenses and other liabilities:
Accrued compensation	$	2,238	$	2,181
Accrued professional fees	701		560
Accrued commissions	299		353
Other accrued expenses	722		884
	$	3,960	$	3,978

4. INCOME TAXES	9 Months Ended
4. INCOME TAXES	Dec. 31, 2013
Income Tax Disclosure
NOTE 4-INCOME TAXES	NOTE 4—INCOME TAXES The current portion of the Company’s unrecognized tax benefits was $0 at both December 31, 2013 and March 31, 2013. The long-term portion at December 31, 2013 and March 31, 2013 was $2,163,000 and $2,803,000, respectively, of which the timing of the resolution is uncertain. As of December 31, 2013, $544,000 of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets. The unrecognized tax benefit balance of $2,329,000 as of December 31, 2013 would affect the Company’s effective tax rate if recognized. It is possible, however, that some months or years may elapse before an uncertain position for which the Company has established a reserve is resolved. Management believes that it is reasonably possible that within the next twelve months the Company could have a reduction in uncertain tax benefits of up to $775,000, including interest and penalties, related to positions taken with respect to credits and loss carryforwards on previously filed tax returns. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the provision for income taxes in the Condensed Consolidated Statements of Operations. The Company is subject to taxation in the United States and various state and foreign jurisdictions. Fiscal years 2010 through 2013 remain open to examination by federal tax authorities, and fiscal years 2009 through 2013 remain open to examination by California tax authorities. In the three months ended June 30, 2012, the Company settled an examination by the California Franchise Tax Board. The tax provision for the nine month period ended December 31, 2012 includes a discrete benefit of $168,000 associated with the net result of the settlement and the associated tax reserves, including interest to date. During the quarter ended December 31, 2013, the Company established a valuation allowance of $371,000 for California research and development tax credit carryovers that are not expected to be utilized in future years. The Company’s estimated annual effective income tax rate was approximately 34.5% and 26.1% as of December 31, 2013 and 2012, respectively. The differences between the effective income tax rate and the applicable statutory U.S. income tax rate in each period were primarily due to the effects of tax credits, foreign tax rate differentials and tax free interest income, offset by stock-based compensation expense.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
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-Paragraph 1
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-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

5. FINANCIAL INSTRUMENTS

9 Months Ended

Dec. 31, 2013

Investments, All Other Investments

NOTE 5-FINANCIAL INSTRUMENTS

NOTE 5—FINANCIAL INSTRUMENTS

Fair value measurements

Authoritative accounting guidance for fair value measurements provides a framework for measuring fair value and related disclosure. The guidance applies to all financial assets and financial liabilities that are measured on a recurring basis. The guidance requires fair value measurement to be classified and disclosed in one of the following three categories:

Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities. The fair value of available-for-sale securities included in the Level 1 category is based on quoted prices that are readily and regularly available in an active market. As of December 31, 2013, the Level 1 category included money market funds of $7.0 million, which were included in cash and cash equivalents in the Condensed Consolidated Balance Sheet.

Level 2: Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. The fair value of available-for-sale securities included in the Level 2 category is based on the market values obtained from an independent pricing service that were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well established independent pricing vendors and broker-dealers. As of December 31, 2013, the Level 2 category included short-term investments of $32.8 million and long-term investments of $34.2 million, which were comprised of certificates of deposit, corporate debt securities and government and agency securities.

Level 3: Valuations based on inputs that are unobservable and involve management judgment and the reporting entity’s own assumptions about market participants and pricing. As of December 31, 2013, the Company had no Level 3 financial assets measured at fair value in the Condensed Consolidated Balance Sheet.

The fair value of financial assets and liabilities measured on a recurring basis is as follows (in thousands):

			Fair Value Measurements at Reporting Date Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical Assets		Observable		Unobservable
			and Liabilties		Inputs		Inputs
	Dec. 31, 2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds	$	7,044	$	7,044	$	—	$	—
Marketable securities	66,978		—		66,978		—
Total	$	74,022	$	7,044	$	66,978	$	—

			Fair Value Measurements at Reporting Date Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical Assets		Observable		Unobservable
			and Liabilties		Inputs		Inputs
	March 31, 2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds	$	10,445	$	10,445	$	—	$	—
Marketable securities	61,634		—		61,634		—
Total	$	72,079	$	10,445	$	61,634	$	—

Short-term and long-term investments

All of the Company’s short-term and long-term investments are classified as available-for-sale. Available-for-sale debt securities with maturities greater than twelve months are classified as long-term investments when they are not intended for use in current operations. Investments in available-for-sale securities are reported at fair value with unrecognized gains (losses), net of tax, as a component of accumulated other comprehensive income in the Condensed Consolidated Balance Sheets. The Company had money market funds of $7.0 million and $10.4 million at December 31, 2013 and March 31, 2013, respectively, included in cash and cash equivalents in the Condensed Consolidated Balance Sheet. The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when declines are determined to be other-than-temporary.

The following table summarizes the Company’s available-for-sale investments:

	Dec. 31, 2013
			Gross		Gross
			Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
Short-term investments:
State and municipal obligations	$	7,688	$	1				$	7,689
Corporate notes	3,018		7					3,025
Agency bonds	5,527		8					5,535
Certificates of deposit	14,999		5		—			15,004
Other	1,524		2					1,526
Total short-term investments	$	32,756	$	23	$	—		$	32,779
Long-term investments:
State and municipal obligations	$	9,048	$	2	$	—		$	9,050
Corporate notes	7,408		27		—			7,435
Agency bonds	999		—		(2		)	997
Certificates of deposit	10,751		—		(21		)	10,730
Other	5,988		—		(1		)	5,987
Total long-term investments	$	34,194	$	29	$	(24	)	$	34,199

	March 31, 2013
			Gross		Gross
			Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
Short-term investments:
State and municipal obligations	$	10,564	$	17	$	—		$	10,581
Corporate notes	6,052		14		—			6,066
Certificates of deposit	9,480		12		—			9,492
Total short-term investments	$	26,096	$	43	$	—		$	26,139
Long-term investments:
State and municipal obligations	$	11,992	$	3	$	—		$	11,995
Corporate notes	8,436		14		—			8,450
Certificates of deposit	9,008		18		—			9,026
Other	6,042		—		(18		)	6,024
Total long-term investments	$	35,478	$	35	$	(18	)	$	35,495

The Company’s investment portfolio consists of both corporate and governmental securities that have a maximum maturity of three years. All unrealized gains are due to changes in interest rates and bond yields. Subject to normal credit risks, the Company has the ability to realize the full value of all these investments upon maturity.

The deferred tax liability related to unrecognized gains and losses on short-term and long-term investments was $7,000 and $14,000 at December 31, 2013 and March 31, 2013, respectively.

As of December 31, 2013, contractual maturities of the Company’s available-for-sale non-equity investments were as follows:

			Fair
	Cost		Value
	(In thousands)
Maturing within one year	$	32,756	$	32,779
Maturing in one to three years	34,194		34,199
Maturing in more than three years	—		—
	$	66,950	$	66,978

The Company classifies its short-term investments as “available-for-sale” as they are intended to be available for use in current operations.

6. COMMITMENTS AND CONTINGENCIES	9 Months Ended
6. COMMITMENTS AND CONTINGENCIES	Dec. 31, 2013
Commitments and Contingencies Disclosure
NOTE 6-COMMITMENTS AND CONTINGENCIES	NOTE 6—COMMITMENTS AND CONTINGENCIES *Indemnification obligations* The Company is a party to a variety of agreements pursuant to which it may be obligated to indemnify the other party with respect to certain matters. Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold and certain intellectual property rights. In each of these circumstances, the Company’s indemnification obligations are conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party’s claims. Further, the Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements. It is not possible to predict the maximum potential amount of future payments that may be required under these or similar agreements due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material effect on its business, financial condition, cash flows or results of operations. *Product warranties* The Company warrants its products to be free of defects generally for a period of three years. The Company estimates its warranty costs based on historical warranty claim experience and includes such costs in cost of revenues. Warranty costs were not significant for the three months or nine months ended December 31, 2013 or 2012. *Legal proceedings* In March 2011, Cypress Semiconductor Corporation, a semiconductor manufacturer, filed a lawsuit against the Company in the United States District Court for the District of Minnesota alleging that the Company’s products, including its SigmaDDR and SigmaQuad families of Very Fast SRAMs, infringe five patents held by Cypress. The complaint seeks unspecified damages for past infringement and a permanent injunction against future infringement. On June 10, 2011, Cypress filed a complaint against the Company with the United States International Trade Commission (the “ITC”). The ITC complaint, as subsequently amended, alleged infringement by the Company of three of the five patents involved in the District Court case and one additional patent and also alleged infringement by three of our distributors and 11 of our customers who allegedly incorporate our SRAMs in their products. The ITC complaint sought a limited exclusion order excluding the allegedly infringing SRAMs, and products containing them, from entry into the United States and permanent orders directing the Company and the other respondents to cease and desist from selling or distributing such products in the United States. On July 21, 2011, the ITC formally instituted an investigation in response to Cypress’s complaint. On June 7, 2013, the ITC announced that the full Commission had affirmed the determination of Chief Administrative Judge Charles E. Bullock that GSI’s SRAM devices, and products containing them, do not infringe the Cypress patents and that Cypress had failed to establish existence of a domestic industry that practices the patents. Moreover, the Commission reversed a portion of Judge Bullock’s determination with respect to the validity of the patents, finding the asserted claims of one of the patents to have been anticipated by prior art and, therefore, invalid. The Commission ordered the investigation terminated, and Cypress did not appeal the ruling. The Minnesota District Court case had been stayed pending the conclusion of the ITC proceeding. Following the termination of the ITC investigation, the stay was lifted. On May 1, 2013, Cypress filed an additional lawsuit in the United States District Court for the Northern District of California alleging infringement by our products of five additional Cypress patents. Like the Minnesota case, the complaint in the California lawsuit seeks unspecified damages for past infringement and a permanent injunction against future infringement. The Company filed answers in both cases denying liability and asserting affirmative defenses. On August 7, 2013, the parties stipulated that the claims in the Minnesota case with respect to three of the asserted patents would be dismissed without prejudice and that the claims with respect to the remaining two patents would be transferred to, and consolidated with, the California case. On August 20, 2013, the Court in the California case ordered the cases consolidated. Discovery in the case is proceeding. The Company believes that it has strong defenses against Cypress’ patent infringement claims and intends to continue to defend itself vigorously. However, the litigation process is inherently uncertain, and the Company may not prevail. Patent litigation is particularly complex and can extend for a protracted period of time, which can substantially increase the cost of such litigation. The Company has not recorded any loss contingency during fiscal 2011, fiscal 2012 or fiscal 2013 in connection with these legal proceedings as the Company cannot predict their outcome and cannot estimate the likelihood or potential dollar amount of any adverse results. However, an unfavorable outcome in these proceedings could have a material adverse impact on the Company’s financial position, results of operations or cash flows for the period in which the outcome occurs and in future periods.

- Definition

The entire disclosure for commitments and contingencies.

+ References

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+ Details

7. STOCK- BASED COMPENSATION

9 Months Ended

Dec. 31, 2013

Equity

NOTE 7-STOCK- BASED COMPENSATION

NOTE 7—STOCK-BASED COMPENSATION

As of December 31, 2013, 5,671,955 shares of common stock were available for grant under the Company’s 2007 Equity Incentive Plan.

The following table summarizes the Company’s stock option activities for the nine months ended December 31, 2013:

			Weighted
	Number of Shares		Average	Weighted
	Underlying		Remaining	Average
	Options		Contractual	Exercise		Intrinsic
	Outstanding		Life (Years)	Price		Value
Balance at March 31, 2013	6,336,319			$	4.73
Granted	678,483			6.42
Exercised	(723,673	)		2.97		$	2,386,568
Forfeited	(141,320	)		6.01
Balance at December 31, 2013	6,149,809			$	5.09
Options vested and exercisable	3,748,121		4.78	$	4.56	$	7,989,938
Options vested and expected to vest	6,083,320		6.12	$	5.08	$	9,916,505

The weighted average fair value per underlying share of options granted during the three months ended December 31, 2013 and 2012 was $2.78 and $2.43, respectively, and for the nine months ended December 31, 2013 and 2012 was $2.73 and $2.12, respectively.

Options outstanding by exercise price at December 31, 2013 were as follows:

	Number of	Options Outstanding			Options Exercisable
	Shares	Weighted		Weighted Average		Weighted
	Underlying	Average		Remaining	Number	Average
	Options	Exercise		Contractual	Vested and	Exercise
Exercise Price	Outstanding	Price		Life (Years)	Exercisable	Price
$2.43 - 3.38	647,144	$	3.01	4.78	647,144	$	3.01
$3.43 - 3.94	498,291	$	3.55	5.27	498,291	$	3.55
$4.00	697,038	$	4.00	5.43	697,038	$	4.00
$4.17 - 4.50	652,634	$	4.26	5.84	369,545	$	4.32
$4.81 - 4.92	511,335	$	4.87	8.19	132,690	$	4.88
$5.50	817,333	$	5.50	2.86	817,333	$	5.50
$5.59 - 5.76	622,280	$	5.70	7.55	206,845	$	5.71
$6.00 - 6.54	818,658	$	6.32	7.38	158,299	$	6.34
$6.63 - 7.00	771,476	$	6.86	8.33	158,221	$	6.93
$9.20	113,620	$	9.20	7.08	62,715	$	9.20
	6,149,809				3,748,121

The following table summarizes stock-based compensation expense by line item in the Condensed Consolidated Statements of Operations, all relating to employee stock plans:

	Three Months Ended Dec. 31,				Nine Months Ended Dec. 31,
	2013		2012		2013		2012
	(In thousands)
Cost of revenues	$	86	$	68	$	282	$	245
Research and development	235		287		726		861
Selling, general and administrative	195		210		636		582
Total	$	516	$	565	$	1,644	$	1,688

As stock-based compensation expense recognized in the Condensed Consolidated Statement of Operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures in accordance with authoritative guidance. The Company estimates forfeitures at the time of grant and revises the original estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

The Company recognized related income tax benefits of $35,000 and $51,000, respectively, for the three months ended December 31, 2013 and 2012, and of $81,000 and $167,000, respectively, for the nine months ended December 31, 2013 and 2012. Windfall tax benefits realized from exercised stock options were $280,000 and $20,000, respectively, for the nine months ended December 31, 2013 and 2012. Compensation cost capitalized within inventory at December 31, 2013 was insignificant. As of December 31, 2013, the Company’s total unrecognized compensation cost was $4.0 million, which will be recognized over a weighted average period of 2.01 years. The Company calculated the fair value of stock-based awards in the periods presented using the Black-Scholes option pricing model and the following weighted average assumptions:

	Three Months Ended Dec. 31,		Nine Months Ended Dec. 31,
	2013	2012	2013	2012

Stock Option Plans:
Risk-free interest rate	1.43%	0.69%	0.91 - 1.51%	0.67 - 0.79%
Expected life (in years)	5.00	5.00	5.00	5.00
Volatility	46.6%	50.2%	46.6 - 48.4%	50.2 - 52.9%
Dividend yield	—%	—%	—%	—%
Employee Stock Purchase Plan:
Risk-free interest rate	0.07%	0.14%	0.07 - 0.09%	0.14 - 0.15%
Expected life (in years)	0.50	0.50	0.50	0.50
Volatility	32.8%	47.3%	30.4 - 32.8%	23.4 - 47.3%
Dividend yield	—%	—%	—%	—%

8. SEGMENT AND GEOGRAPHIC INFORMATION

9 Months Ended

Dec. 31, 2013

Segment Reporting

NOTE 8-SEGMENT AND GEOGRAPHIC INFORMATION

NOTE 8—SEGMENT AND GEOGRAPHIC INFORMATION

Based on its operating management and financial reporting structure, the Company has determined that it has one reportable business segment: the design, development and sale of integrated circuits.

The following is a summary of net revenues by geographic area based on the location to which product is shipped:

	Three Months Ended Dec. 31,				Nine Months Ended Dec. 31,
	2013		2012		2013		2012
	(In thousands)
United States	$	4,123	$	4,951	$	14,507	$	14,152
China	3,465		2,746		9,736		11,054
Malaysia	2,310		5,929		7,865		13,662
Singapore	1,803		1,989		4,868		5,497
Netherlands	768		575		4,180		1,580
Rest of the world	1,309		1,324		4,576		4,362
	$	13,778	$	17,514	$	45,732	$	50,307

All sales are denominated in United States dollars.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Dec. 31, 2013
Accounting Policies
Basis of presentation	*Basis of presentation* The accompanying unaudited condensed consolidated financial statements of GSI Technology, Inc. and its subsidiaries (“GSI” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, the interim financial statements do not include all of the information and footnotes required by generally accepted accounting principles for annual financial statements. These interim financial statements contain all adjustments (which consist of only normal, recurring adjustments) that are, in the opinion of management, necessary to state fairly the interim financial information included therein. The Company believes that the disclosures are adequate to make the information not misleading. However, these financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2013. The consolidated results of operations for the three months and nine months ended December 31, 2013 are not necessarily indicative of the results to be expected for the entire fiscal year.
Significant accounting policies	*Significant accounting policies* The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2013.
Litigation and settlement costs	*Litigation and settlement costs* From time to time, the Company is involved in legal actions. The Company currently is a party to pending legal proceedings which it is defending aggressively. See Note 6 for additional information regarding this pending litigation. There are many uncertainties associated with any litigation, and the Company may not prevail. The litigation, regardless of its eventual outcome, will be costly and time consuming and, should the outcome be adverse to the Company, could result in the Company being required to pay significant monetary damages. If that occurs, our business, financial condition and results of operations could be materially and adversely affected. If information becomes available that causes us to determine that a loss in any of our pending litigation, or the settlement of such litigation, is probable, and we can reasonably estimate the loss associated with such events, we will record the loss in accordance with GAAP. However, the actual liability in any such litigation may be materially different from our estimates, which could require us to record additional costs.
Excess and Obsolete Inventory Write-Down	*Excess and Obsolete Inventory Write-Down* The Company recorded write-downs of excess and obsolete inventories of $1.1 million and $253,000, respectively, for the three months ended December 31, 2013 and 2012 and $1.6 million and $544,000, respectively, for the nine months ended December 31, 2013 and 2012. The increased write-downs recorded in the three and nine months ended December 31, 2013 were taken in response to the decline in the business and in response to the fact that management’s prior expectations regarding the recoverability of certain products, which were based on estimates of increasing demand for these products in anticipation of, and following the favorable ITC ruling on June 7, 2013 and the exit of a competitor from the SRAM market in the December 2012 quarter, did not materialize.

- Definition

Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.

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-URI http://asc.fasb.org/subtopic&trid=2196966

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 325
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=2197087

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.3A-02)
-URI http://asc.fasb.org/extlink&oid=6959686&loc=d3e355033-122828

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=16385135&loc=d3e33801-111570

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 5, 6, 16-19
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 96-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 18
-Paragraph 20
-Subparagraph a(2)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 97-2
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph k
-Article 1

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 140
-Paragraph 46
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02, 03
-Article 3A

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

2. NET INCOME (LOSS) PER COMMON SHARE (Tables)

9 Months Ended

Dec. 31, 2013

Net income (loss) per share:

Basic and diluted net income (loss) per share

	Three Months Ended Dec. 31,					Nine Months Ended Dec. 31,
	2013			2012		2013			2012
	(In thousands, except per share amounts)
Net income (loss)	$	(734	)	$	844	$	(789	)	$	2,896

Denominators:
Weighted average shares—Basic	27,667			26,963		27,495			27,152
Dilutive effect of employee stock options	—			1,024		—			805
Dilutive effect of employee stock purchase plan options	—			—		—			—
Weighted average shares—Dilutive	27,667			27,987		27,495			27,957
Net income (loss) per common share—Basic	$	(0.03	)	$	0.03	$	(0.03	)	$	0.11
Net income (loss) per common share—Diluted	$	(0.03	)	$	0.03	$	(0.03	)	$	0.10

Anti-dilutive shares

	Three Months Ended Dec. 31,		Nine Months Ended Dec. 31,
	2013	2012	2013	2012
	(In thousands)
Shares underlying options	3,027	3,243	3,026	3,130

3. BALANCE SHEET DETAIL (Tables)

9 Months Ended

Dec. 31, 2013

Balance Sheet Detail Tables

Schedule of Inventories

	Dec. 31, 2013		March 31, 2013
	(In thousands)
Inventories:
Work-in-progress	$	2,674	$	4,236
Finished goods	6,002		8,772
Inventory at distributors	545		801
	$	9,221	$	13,809

Schedule of Accounts Receivable, Net

	Dec. 31, 2013			March 31, 2013
	(In thousands)
Accounts receivable, net:
Accounts receivable	$	9,155		$	10,357
Less: Allowances for sales returns, doubtful accounts and other	(101		)	(116		)
	$	9,054		$	10,241

Schedule of Prepaid Expenses and Other Current Assets

	Dec. 31, 2013		March 31, 2013
	(In thousands)
Prepaid expenses and other current assets:
Prepaid tooling and masks	$	580	$	1,230
Prepaid income taxes	2,144		2,037
Other receivables	388		557
Other prepaid expenses	978		1,121
	$	4,090	$	4,945

Schedule of Property and Equipment, Net

	Dec. 31, 2013			March 31, 2013
	(In thousands)
Property and equipment, net:
Computer and other equipment	$	16,483		$	16,344
Software	4,779			4,690
Land	3,900			3,900
Building and building improvements	2,256			2,256
Furniture and fixtures	110			110
Leasehold improvements	792			767
Construction in progress	—			51
	28,320			28,118
Less: Accumulated depreciation and amortization	(18,695		)	(17,344		)
	$	9,625		$	10,774

Schedule of Other Assets

	Dec. 31, 2013		March 31, 2013
	(In thousands)
Other Assets:
Non-current deferred income taxes	$	1,696	$	1,272
Intangibles, net	609		744
Deposits	82		82
	$	2,387	$	2,098

Schedule of Intangible Assets

	Gross
	Carrying		Accumulated			Net Carrying
	Amount		Amortization			Amount
Intangible assets:
Product designs	$	590	$	(365	)	$	225
Patents	720		(347		)	373
Software	80		(69		)	11
Total	$	1,390	$	(781	)	$	609

Schedule of Accrued Expenses and Other Liabilities

	Dec. 31, 2013		March 31, 2013
	(In thousands)
Accrued expenses and other liabilities:
Accrued compensation	$	2,238	$	2,181
Accrued professional fees	701		560
Accrued commissions	299		353
Other accrued expenses	722		884
	$	3,960	$	3,978

5. FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Dec. 31, 2013

Financial Instruments Tables

Schedule of Fair value of financial assets and liabilities measured on a recurring basis

			Fair Value Measurements at Reporting Date Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical Assets		Observable		Unobservable
			and Liabilties		Inputs		Inputs
	Dec. 31, 2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds	$	7,044	$	7,044	$	—	$	—
Marketable securities	66,978		—		66,978		—
Total	$	74,022	$	7,044	$	66,978	$	—

			Fair Value Measurements at Reporting Date Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical Assets		Observable		Unobservable
			and Liabilties		Inputs		Inputs
	March 31, 2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds	$	10,445	$	10,445	$	—	$	—
Marketable securities	61,634		—		61,634		—
Total	$	72,079	$	10,445	$	61,634	$	—

Schedule of Available-for-sale investments

	Dec. 31, 2013
			Gross		Gross
			Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
Short-term investments:
State and municipal obligations	$	7,688	$	1				$	7,689
Corporate notes	3,018		7					3,025
Agency bonds	5,527		8					5,535
Certificates of deposit	14,999		5		—			15,004
Other	1,524		2					1,526
Total short-term investments	$	32,756	$	23	$	—		$	32,779
Long-term investments:
State and municipal obligations	$	9,048	$	2	$	—		$	9,050
Corporate notes	7,408		27		—			7,435
Agency bonds	999		—		(2		)	997
Certificates of deposit	10,751		—		(21		)	10,730
Other	5,988		—		(1		)	5,987
Total long-term investments	$	34,194	$	29	$	(24	)	$	34,199

	March 31, 2013
			Gross		Gross
			Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(In thousands)
Short-term investments:
State and municipal obligations	$	10,564	$	17	$	—		$	10,581
Corporate notes	6,052		14		—			6,066
Certificates of deposit	9,480		12		—			9,492
Total short-term investments	$	26,096	$	43	$	—		$	26,139
Long-term investments:
State and municipal obligations	$	11,992	$	3	$	—		$	11,995
Corporate notes	8,436		14		—			8,450
Certificates of deposit	9,008		18		—			9,026
Other	6,042		—		(18		)	6,024
Total long-term investments	$	35,478	$	35	$	(18	)	$	35,495

Schedule of Contractual maturities of the available-for-sale non-equity investments

			Fair
	Cost		Value
	(In thousands)
Maturing within one year	$	32,756	$	32,779
Maturing in one to three years	34,194		34,199
Maturing in more than three years	—		—
	$	66,950	$	66,978

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 19, 20, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 17
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-1
-Paragraph 21
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

7. STOCK- BASED COMPENSATION (Tables)

9 Months Ended

Dec. 31, 2013

Stock- Based Compensation Tables

Summary of stock option activities

			Weighted
	Number of Shares		Average	Weighted
	Underlying		Remaining	Average
	Options		Contractual	Exercise		Intrinsic
	Outstanding		Life (Years)	Price		Value
Balance at March 31, 2013	6,336,319			$	4.73
Granted	678,483			6.42
Exercised	(723,673	)		2.97		$	2,386,568
Forfeited	(141,320	)		6.01
Balance at December 31, 2013	6,149,809			$	5.09
Options vested and exercisable	3,748,121		4.78	$	4.56	$	7,989,938
Options vested and expected to vest	6,083,320		6.12	$	5.08	$	9,916,505

Schedule of options outstanding by exercise price

	Number of	Options Outstanding			Options Exercisable
	Shares	Weighted		Weighted Average		Weighted
	Underlying	Average		Remaining	Number	Average
	Options	Exercise		Contractual	Vested and	Exercise
Exercise Price	Outstanding	Price		Life (Years)	Exercisable	Price
$2.43 - 3.38	647,144	$	3.01	4.78	647,144	$	3.01
$3.43 - 3.94	498,291	$	3.55	5.27	498,291	$	3.55
$4.00	697,038	$	4.00	5.43	697,038	$	4.00
$4.17 - 4.50	652,634	$	4.26	5.84	369,545	$	4.32
$4.81 - 4.92	511,335	$	4.87	8.19	132,690	$	4.88
$5.50	817,333	$	5.50	2.86	817,333	$	5.50
$5.59 - 5.76	622,280	$	5.70	7.55	206,845	$	5.71
$6.00 - 6.54	818,658	$	6.32	7.38	158,299	$	6.34
$6.63 - 7.00	771,476	$	6.86	8.33	158,221	$	6.93
$9.20	113,620	$	9.20	7.08	62,715	$	9.20
	6,149,809				3,748,121

Summary of stock-based compensation expense by line item

	Three Months Ended Dec. 31,				Nine Months Ended Dec. 31,
	2013		2012		2013		2012
	(In thousands)
Cost of revenues	$	86	$	68	$	282	$	245
Research and development	235		287		726		861
Selling, general and administrative	195		210		636		582
Total	$	516	$	565	$	1,644	$	1,688

Summary of valuation assumptions

	Three Months Ended Dec. 31,		Nine Months Ended Dec. 31,
	2013	2012	2013	2012

Stock Option Plans:
Risk-free interest rate	1.43%	0.69%	0.91 - 1.51%	0.67 - 0.79%
Expected life (in years)	5.00	5.00	5.00	5.00
Volatility	46.6%	50.2%	46.6 - 48.4%	50.2 - 52.9%
Dividend yield	—%	—%	—%	—%
Employee Stock Purchase Plan:
Risk-free interest rate	0.07%	0.14%	0.07 - 0.09%	0.14 - 0.15%
Expected life (in years)	0.50	0.50	0.50	0.50
Volatility	32.8%	47.3%	30.4 - 32.8%	23.4 - 47.3%
Dividend yield	—%	—%	—%	—%

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

8. SEGMENT AND GEOGRAPHIC INFORMATION (Tables)

9 Months Ended

Dec. 31, 2013

Segment Reporting

Net revenues by geographic area

	Three Months Ended Dec. 31,				Nine Months Ended Dec. 31,
	2013		2012		2013		2012
	(In thousands)
United States	$	4,123	$	4,951	$	14,507	$	14,152
China	3,465		2,746		9,736		11,054
Malaysia	2,310		5,929		7,865		13,662
Singapore	1,803		1,989		4,868		5,497
Netherlands	768		575		4,180		1,580
Rest of the world	1,309		1,324		4,576		4,362
	$	13,778	$	17,514	$	45,732	$	50,307

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Company And Summary Of Significant Accounting Policies Details Narrative
Provision for excess and obsolete inventories	$ 1,100,000	$ 253,000	$ 1,642,000	$ 544,000

- Definition

Charge to cost of goods sold that represents the reduction of the carrying amount of inventory, generally attributable to obsolescence or market conditions.

+ References + Details

2. NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Net Income (Loss) Per Common Share Details
Net income (loss)	$ (734)	$ 844	$ (789)	$ 2,896
Weighted average shares-Basic	27,667	26,963	27,495	27,152
Dilutive effect of employee stock options		1,024		805
Dilutive effect of employee stock purchase plan options	0
Weighted average shares-Dilutive	27,667	27,987	27,495	27,957
Net income (loss) common share - Basic	$ (0.03)	$ 0.03	$ (0.03)	$ 0.11
Net income (loss) common share - Diluted	$ (0.03)	$ 0.03	$ (0.03)	$ 0.10

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.21)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04.23)
-URI http://asc.fasb.org/extlink&oid=6879574&loc=d3e536633-122882

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 18
-Article 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 36, 37, 38
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 20
-Article 5

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 21
-Article 9

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period.

+ References + Details

- Definition

Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1448-109256

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Weighted-Average Number of Common Shares Outstanding
-URI http://asc.fasb.org/extlink&oid=6528421

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

2. NET INCOME (LOSS) PER COMMON SHARE (Details 1) - shares	3 Months Ended		9 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Net Income (Loss) Per Common Share Details 1
Shares underlying options	3,027	3,243	3,026	3,130

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

3. BALANCE SHEET DETAIL (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Mar. 31, 2013
Inventories:
Work-in-progress	$ 2,674	$ 4,236
Finished goods	6,002	8,772
Inventory at distributors	545	801
Total Inventory	$ 9,221	$ 13,809

3. BALANCE SHEET DETAIL (Details 1) - USD ($) $ in Thousands	Dec. 31, 2013	Mar. 31, 2013
Accounts receivable, net:
Accounts receivable	$ 9,155	$ 10,357
Less: Allowances for sales returns, doubtful accounts and other	(101)	(116)
Total accounts receivable, net	$ 9,054	$ 10,241

3. BALANCE SHEET DETAIL (Details 2) - USD ($) $ in Thousands	Dec. 31, 2013	Mar. 31, 2013
Prepaid expenses and other current assets:
Prepaid tooling and masks	$ 580	$ 1,230
Prepaid income taxes	2,144	2,037
Other receivables	388	557
Other prepaid expenses	978	1,121
Total prepaid expenses and other current assets	$ 4,090	$ 4,945

3. BALANCE SHEET DETAIL (Details 3) - USD ($)	3 Months Ended		9 Months Ended
3. BALANCE SHEET DETAIL (Details 3) - USD ($)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2013
Property and equipment, net:
Computer and other equipment	$ 16,483,000		$ 16,483,000		$ 16,344,000
Software	4,779,000		4,779,000		4,690,000
Land	3,900,000		3,900,000		3,900,000
Building and building improvements	2,256,000		2,256,000		2,256,000
Furniture and fixtures	110,000		110,000		110,000
Leasehold improvements	792,000		792,000		767,000
Construction in progress					51,000
Property, Plant, and Equipment, Gross	28,320,000		28,320,000		28,118,000
Less: Accumulated depreciation and amortization	(18,695,000)		(18,695,000)		(17,344,000)
Property, Plant, and Equipment, Net	9,625,000		9,625,000		$ 10,774,000
Depreciation and amortization	$ 443,000	$ 531,000	$ 1,351,000	$ 1,712,000

3. BALANCE SHEET DETAIL (Details 4) - USD ($)	3 Months Ended		9 Months Ended
3. BALANCE SHEET DETAIL (Details 4) - USD ($)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2013
Other assets:
Non-current deferred income taxes	$ 1,696,000		$ 1,696,000		$ 1,272,000
Intangibles, net	609,000		609,000		744,000
Deposits	82,000		82,000		82,000
Total Other Assets	2,387,000		2,387,000		$ 2,098,000
Amortization of intangible assets	$ 45,000	$ 45,000	$ 135,000	$ 135,000

3. BALANCE SHEET DETAIL (Details 5) - USD ($) $ in Thousands	Dec. 31, 2013	Mar. 31, 2013
Gross Carrying Amount	$ 1,390
Accumulated Amortization	(781)
Net Carrying Amount	609	$ 744
Product Designs
Gross Carrying Amount	590
Accumulated Amortization	(365)
Net Carrying Amount	225
Patents
Gross Carrying Amount	720
Accumulated Amortization	(347)
Net Carrying Amount	373
Software
Gross Carrying Amount	80
Accumulated Amortization	(69)
Net Carrying Amount	$ 11

3. BALANCE SHEET DETAIL (Details 6) - USD ($) $ in Thousands	Dec. 31, 2013	Mar. 31, 2013
Accrued expenses and other liabilities:
Accrued compensation	$ 2,238	$ 2,181
Accrued professional fees	701	560
Accrued commissions	299	353
Other accrued expenses	722	884
Total Accrued Expenses and Other Liabilities	$ 3,960	$ 3,978

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable for professional fees, such as for legal and accounting services received. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable for sales commissions. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable arising from transactions not otherwise specified in the taxonomy. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

4. INCOME TAXES (Details Narrative) - USD ($)	9 Months Ended
4. INCOME TAXES (Details Narrative) - USD ($)	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2013
Income Taxes Details Narrative
Unrecognized tax benefits, Current	$ 0		$ 0
Unrecognized tax benefits, Long Term	2,163,000		$ 2,803,000
Unrecognized tax benefits had been recorded as a reduction to net deferred tax assets	544,000
Unrecognized tax benefits	2,329,000
Reduction in uncertain tax benefits	775,000
Discrete benefit from tax provision associated with net result of settlement and associated tax reserves		$ 168,000
Valuation allowance for California research and development tax credit carryforward	$ 371,000
Effective annual income tax rate	34.50%	26.10%

- Definition

The portion of the deferred tax asset arising from a tax credit carryforward for which it is more likely than not that a tax benefit will not be realized.

+ References + Details

5. FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2013	Mar. 31, 2013
Assets:
Money market funds	$ 7,044	$ 10,445
Marketable securities	66,978	61,634
Total	74,022	72,079
Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)
Assets:
Money market funds	7,044	10,445
Total	7,044	10,445
Significant Other Observable Inputs (Level 2)
Assets:
Marketable securities	66,978	61,634
Total	$ 66,978	$ 61,634

5. FINANCIAL INSTRUMENTS (Details 1) - USD ($)	9 Months Ended
5. FINANCIAL INSTRUMENTS (Details 1) - USD ($)	Dec. 31, 2013	Mar. 31, 2013
Fair Value	$ 66,978,000
Maximum maturity period of investment portfolio	3 years
Deferred tax liability related to unrecognized gains and losses on short-term and long-term investments	$ 7,000
Deferred tax liability related to unrecognized gains and losses on long-term investments		$ 14,000
Short Term Investments
Available-for-sale securities, Cost	32,756,000	26,096,000
Available-for-sale securities, Gross Unrealized Gains	23,000	43,000
Fair Value	32,779,000	26,139,000
Short Term Investments \| State and municipal bonds
Available-for-sale securities, Cost	7,688,000	10,564,000
Available-for-sale securities, Gross Unrealized Gains	1,000	17,000
Available-for-sale securities, Gross Unrealized Losses	0
Fair Value	7,689,000	10,581,000
Short Term Investments \| Corporate Notes
Available-for-sale securities, Cost	3,018,000	6,052,000
Available-for-sale securities, Gross Unrealized Gains	7,000	14,000
Available-for-sale securities, Gross Unrealized Losses	0
Fair Value	3,025,000	6,066,000
Short Term Investments \| Agency bonds
Available-for-sale securities, Cost	5,527,000
Available-for-sale securities, Gross Unrealized Gains	8,000
Available-for-sale securities, Gross Unrealized Losses	0
Fair Value	5,535,000
Short Term Investments \| Certificate of deposits
Available-for-sale securities, Cost	14,999,000	9,480,000
Available-for-sale securities, Gross Unrealized Gains	5,000	12,000
Fair Value	15,004,000	9,492,000
Short Term Investments \| Other
Available-for-sale securities, Cost	1,524,000
Available-for-sale securities, Gross Unrealized Gains	2,000
Available-for-sale securities, Gross Unrealized Losses	0
Fair Value	1,526,000
Long Term Investments
Available-for-sale securities, Cost	34,194,000	35,478,000
Available-for-sale securities, Gross Unrealized Gains	29,000	35,000
Available-for-sale securities, Gross Unrealized Losses	(24,000)	(18,000)
Fair Value	34,199,000	35,495,000
Long Term Investments \| State and municipal bonds
Available-for-sale securities, Cost	9,048,000	11,992,000
Available-for-sale securities, Gross Unrealized Gains	2,000	3,000
Fair Value	9,050,000	11,995,000
Long Term Investments \| Corporate Notes
Available-for-sale securities, Cost	7,408,000	8,436,000
Available-for-sale securities, Gross Unrealized Gains	27,000	14,000
Fair Value	7,435,000	8,450,000
Long Term Investments \| Agency bonds
Available-for-sale securities, Cost	999,000
Available-for-sale securities, Gross Unrealized Losses	(2,000)
Fair Value	997,000
Long Term Investments \| Certificate of deposits
Available-for-sale securities, Cost	10,751,000	9,008,000
Available-for-sale securities, Gross Unrealized Gains		18,000
Available-for-sale securities, Gross Unrealized Losses	(21,000)
Fair Value	10,730,000	9,026,000
Long Term Investments \| Other
Available-for-sale securities, Cost	5,988,000	6,042,000
Available-for-sale securities, Gross Unrealized Losses	(1,000)	(18,000)
Fair Value	$ 5,987,000	$ 6,024,000

5. FINANCIAL INSTRUMENTS (Details 2) $ in Thousands	Dec. 31, 2013 USD ($)
Financial Instruments Details 2
Maturing within one year, Cost	$ 32,756
Maturing in one to three years, Cost	34,194
Total, Cost	66,950
Maturing within one year, Fair Value	32,779
Maturing in one to three years, Fair Value	34,199
Fair Value	$ 66,978

- Definition

Amount of debt securities categorized neither as held-to-maturity nor trading.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 25
-Paragraph 1
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=7534914&loc=d3e22054-111558

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6871852&loc=d3e26610-111562

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-Subparagraph (b)-(g)
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 12
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 13
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 15C
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

6. COMMITMENTS AND CONTINGENCIES (Details)	9 Months Ended
6. COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2013 item
Commitments and Contingencies Disclosure
Warranty period	3 years
Number of patents infringed	3
Number of patents filed	5
Number of additional patents filed	1
Number of patents infringed by distributors and customers	3
Number of customers who infringed patents	11
Number of additional patents infringed	5
Number of patent claims transferred	2

7. STOCK- BASED COMPENSATION (Details) - USD ($)	3 Months Ended		9 Months Ended
7. STOCK- BASED COMPENSATION (Details) - USD ($)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013
Shares available for grant
Shares of common stock available for grant, Ending	5,671,955		5,671,955
Number of Options
Number of Underlying Options Outstanding, Beginning			6,336,319
Number of Underlying Options Granted			678,483
Number of Underlying Options Exercised			(723,673)
Number of Underlying Options Forfeited			(141,320)
Number of Options Underlying Outstanding, Ending	6,149,809		6,149,809
Options Vested and Exercisable	3,748,121		3,748,121
Options Vested and expected to vest	6,083,320		6,083,320
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Beginning			$ 4.73
Weighted Average Exercise Price Granted			6.42
Weighted Average Exercise Price Exercised			2.97
Weighted Average Exercise Price Forfeited			6.01
Weighted Average Exercise Price Outstanding, Ending	$ 5.09		5.09
Weighted Average Exercise Price Vested and Exercisable	4.56		4.56
Weighted Average Exercise Price vested and expected to vest	$ 5.08		$ 5.08
Weighted Average Remaining Contractual Life (in years)
Weighted Average Remaining Contractual Life (in years) Exercisable			4 years 9 months 11 days
Weighted Average Remaining Contractual Life (in years) Vested and expected to vest			6 years 1 month 13 days
Aggregate Intrinsic Value
Intrinsic Value of Exercised Options			$ 2,386,568
Aggregate Intrinsic Value Exercisable	$ 7,989,938		7,989,938
Aggregate Intrinsic Value vested and expected to vest	$ 9,916,505		$ 9,916,505
Weighted average fair value per underlying share of options granted (in dollars per share)	$ 2.78	$ 2.43	$ 2.73	$ 2.12
Options outstanding by exercise price
Exercise Price (in dollars per share)	5.09		4.73		$ 5.09
Number of Shares Underlying Options Outstanding (in shares)					6,149,809
Options Exercisable, Number Vested and Exercisable (in shares)					3,748,121
$2.43 - 3.38
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)			2.43
Exercise Price, high end of range (in dollars per share)			$ 3.38
Number of Shares Underlying Options Outstanding (in shares)					647,144
Options Outstanding, Weighted Average Exercise Price (in dollars per share)					$ 3.01
Options Outstanding, Weighted Average Remaining Contractual Life (Years)			4 years 9 months 11 days
Options Exercisable, Number Vested and Exercisable (in shares)					647,144
Options Exercisable, Weighted Average Exercise Price (in dollars per share)					$ 3.01
$3.43 - 3.94
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)			$ 3.43
Exercise Price, high end of range (in dollars per share)			$ 3.94
Number of Shares Underlying Options Outstanding (in shares)					498,291
Options Outstanding, Weighted Average Exercise Price (in dollars per share)					$ 3.55
Options Outstanding, Weighted Average Remaining Contractual Life (Years)			5 years 3 months 7 days
Options Exercisable, Number Vested and Exercisable (in shares)					498,291
Options Exercisable, Weighted Average Exercise Price (in dollars per share)					$ 3.55
$4
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Ending	4.00		$ 4.00
Options outstanding by exercise price
Exercise Price (in dollars per share)	4.00		$ 4.00		$ 4.00
Number of Shares Underlying Options Outstanding (in shares)					697,038
Options Outstanding, Weighted Average Exercise Price (in dollars per share)					$ 4.00
Options Outstanding, Weighted Average Remaining Contractual Life (Years)			5 years 5 months 5 days
Options Exercisable, Number Vested and Exercisable (in shares)					697,038
Options Exercisable, Weighted Average Exercise Price (in dollars per share)					$ 4.00
$4.17 - 4.50
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)			$ 4.17
Exercise Price, high end of range (in dollars per share)			$ 4.50
Number of Shares Underlying Options Outstanding (in shares)					652,634
Options Outstanding, Weighted Average Exercise Price (in dollars per share)					$ 4.26
Options Outstanding, Weighted Average Remaining Contractual Life (Years)			5 years 10 months 2 days
Options Exercisable, Number Vested and Exercisable (in shares)					369,545
Options Exercisable, Weighted Average Exercise Price (in dollars per share)					$ 4.32
$4.81 - 4.92
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)			$ 4.81
Exercise Price, high end of range (in dollars per share)			$ 4.92
Number of Shares Underlying Options Outstanding (in shares)					511,335
Options Outstanding, Weighted Average Exercise Price (in dollars per share)					$ 4.87
Options Outstanding, Weighted Average Remaining Contractual Life (Years)			8 years 2 months 8 days
Options Exercisable, Number Vested and Exercisable (in shares)					132,690
Options Exercisable, Weighted Average Exercise Price (in dollars per share)					$ 4.88
$5.50
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Ending	5.50		$ 5.50
Options outstanding by exercise price
Exercise Price (in dollars per share)	5.50		$ 5.50		$ 5.50
Number of Shares Underlying Options Outstanding (in shares)					817,333
Options Outstanding, Weighted Average Exercise Price (in dollars per share)					$ 5.50
Options Outstanding, Weighted Average Remaining Contractual Life (Years)			2 years 10 months 10 days
Options Exercisable, Number Vested and Exercisable (in shares)					817,333
Options Exercisable, Weighted Average Exercise Price (in dollars per share)					$ 5.50
$5.59 - 5.76
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)			$ 5.59
Exercise Price, high end of range (in dollars per share)			$ 5.76
Number of Shares Underlying Options Outstanding (in shares)					622,280
Options Outstanding, Weighted Average Exercise Price (in dollars per share)					$ 5.70
Options Outstanding, Weighted Average Remaining Contractual Life (Years)			7 years 6 months 18 days
Options Exercisable, Number Vested and Exercisable (in shares)					206,845
Options Exercisable, Weighted Average Exercise Price (in dollars per share)					$ 5.71
$6.00 - 6.54
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)			$ 6.00
Exercise Price, high end of range (in dollars per share)			$ 6.54
Number of Shares Underlying Options Outstanding (in shares)					818,658
Options Outstanding, Weighted Average Exercise Price (in dollars per share)					$ 6.32
Options Outstanding, Weighted Average Remaining Contractual Life (Years)			7 years 4 months 17 days
Options Exercisable, Number Vested and Exercisable (in shares)					158,299
Options Exercisable, Weighted Average Exercise Price (in dollars per share)					$ 6.34
$6.63 - 7.00
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)			$ 6.63
Exercise Price, high end of range (in dollars per share)			$ 7.00
Number of Shares Underlying Options Outstanding (in shares)					771,476
Options Outstanding, Weighted Average Exercise Price (in dollars per share)					$ 6.86
Options Outstanding, Weighted Average Remaining Contractual Life (Years)			8 years 3 months 29 days
Options Exercisable, Number Vested and Exercisable (in shares)					158,221
Options Exercisable, Weighted Average Exercise Price (in dollars per share)					$ 6.93
$9.20
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Ending	9.20		$ 9.20
Options outstanding by exercise price
Exercise Price (in dollars per share)	$ 9.20		$ 9.20		$ 9.20
Number of Shares Underlying Options Outstanding (in shares)					113,620
Options Outstanding, Weighted Average Exercise Price (in dollars per share)					$ 9.20
Options Outstanding, Weighted Average Remaining Contractual Life (Years)			7 years 29 days
Options Exercisable, Number Vested and Exercisable (in shares)					62,715
Options Exercisable, Weighted Average Exercise Price (in dollars per share)					$ 9.20

7. STOCK- BASED COMPENSATION (Details 1) - USD ($)	3 Months Ended		9 Months Ended
7. STOCK- BASED COMPENSATION (Details 1) - USD ($)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Stock-based compensation	$ 516,000	$ 565,000	$ 1,644,000	$ 1,688,000
Tax benefit recognized from allocation of share-based compensation expense	35,000	51,000	81,000	167,000
Windfall tax benefits realized from exercised stock options			280,000	20,000
Unrecognized compensation costs	4,000,000		$ 4,000,000
Weighted average period of recognition of unrecognized compensation costs			2 years 4 days
Cost of revenues
Stock-based compensation	86,000	68,000	$ 282,000	245,000
Research and Development.
Stock-based compensation	235,000	287,000	726,000	861,000
Selling, general and administrative
Stock-based compensation	$ 195,000	$ 210,000	$ 636,000	$ 582,000

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

7. STOCK- BASED COMPENSATION (Details 2)	3 Months Ended		9 Months Ended
7. STOCK- BASED COMPENSATION (Details 2)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Stock Options Plans
Risk-free interest rate	1.43%	0.69%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum			0.91%	0.67%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum			1.51%	0.79%
Expected life (in years)	5 years	5 years	5 years	5 years
Volatility	46.60%	50.20%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum			46.60%	50.20%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum			48.40%	52.90%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Employee Stock Purchase Plan
Risk-free interest rate	0.07%	0.14%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum			0.07%	0.14%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum			0.09%	0.15%
Expected life (in years)	6 months	6 months	6 months	6 months
Volatility	32.80%	47.30%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum			30.40%	23.40%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum			32.80%	47.30%
Dividend yield	0.00%	0.00%	0.00%	0.00%

8. SEGMENT AND GEOGRAPHIC INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2013 USD ($) item	Dec. 31, 2012 USD ($)
Segment And Geographic Information Details
Number of reportable business segments \| item			1
Net revenues	$ 13,778	$ 17,514	$ 45,732	$ 50,307
United States
Net revenues	4,123	4,951	14,507	14,152
China
Net revenues	3,465	2,746	9,736	11,054
Malaysia
Net revenues	2,310	5,929	7,865	13,662
Singapore
Net revenues	1,803	1,989	4,868	5,497
Netherlands
Net revenues	768	575	4,180	1,580
Rest of the World
Net revenues	$ 1,309	$ 1,324	$ 4,576	$ 4,362