View Filing Data

Fair Value

Useful Life

(in thousands)

(in years)

Total acquired identifiable intangible assets

Print Document View Excel Document

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Dec. 31, 2015	Jan. 31, 2016
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, 2015
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		22,344,102
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2016

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
ASSETS
Cash and cash equivalents	$ 30,725	$ 36,776
Short-term investments	19,381	22,201
Accounts receivable, net	8,654	8,257
Inventories	7,443	8,412
Prepaid expenses and other current assets	2,714	2,297
Total current assets	68,917	77,943
Property and equipment, net	8,921	8,708
Long-term investments	15,489	21,740
Goodwill	8,030
Other assets	6,838	498
Total assets	108,195	108,889
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	2,229	2,961
Accrued expenses and other liabilities	4,369	5,937
Deferred revenue	1,942	2,815
Total current liabilities	8,540	11,713
Income taxes payable	101	780
Long term deferred income taxes	875
Other accrued expenses	6,329
Total liabilities	15,845	12,493
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock: $0.001 par value authorized: 5,000,000 shares; issued and outstanding: none
Common Stock: $0.001 par value authorized: 150,000,000 shares; issued and outstanding: 22,510,419 and 23,128,372 shares, respectively	23	23
Additional paid-in capital	27,529	29,407
Accumulated other comprehensive income (loss)	(59)	26
Retained earnings	64,857	66,940
Total stockholders' equity	92,350	96,396
Total liabilities and stockholders' equity	$ 108,195	$ 108,889

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2015	Mar. 31, 2015
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	22,510,419	23,128,372
Common stock, shares outstanding	22,510,419	23,128,372

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Income Statement
Net revenues	$ 12,921	$ 14,227	$ 40,523	$ 40,435
Cost of revenues	6,535	7,577	19,925	21,785
Gross profit	6,386	6,650	20,598	18,650
Operating expenses:
Research and development	2,782	2,850	8,720	8,869
Selling, general and administrative	5,164	4,454	14,743	12,945
Total operating expenses	7,946	7,304	23,463	21,814
Loss from operations	(1,560)	(654)	(2,865)	(3,164)
Interest income, net	78	76	229	249
Other income (expense), net	11	25	(45)	35
Loss before income taxes	(1,471)	(553)	(2,681)	(2,880)
Benefit for income taxes	(652)	(701)	(598)	(632)
Net income (loss)	$ (819)	$ 148	$ (2,083)	$ (2,248)
Net income (loss) per share:
Basic	$ (0.04)	$ 0.01	$ (0.09)	$ (0.09)
Diluted	$ (0.04)	$ 0.01	$ (0.09)	$ (0.09)
Weighted average shares used in per share calculations:
Basic	22,612	23,738	22,743	25,591
Diluted	22,612	24,325	22,743	25,591

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements Of Comprehensive Income ( Loss)
Net income (loss)	$ (819)	$ 148	$ (2,083)	$ (2,248)
Net unrealized loss on available-for-sale investments, net of tax	(68)	(46)	(85)	(81)
Total comprehensive income (loss)	$ (887)	$ 102	$ (2,168)	$ (2,329)

- Definition

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

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net loss	$ (2,083)	$ (2,248)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Allowance for sales returns, doubtful accounts and other	(3)	(11)
Provision for excess and obsolete inventories	914	912
Depreciation and amortization	1,037	1,294
Stock-based compensation	1,387	1,533
Amortization of premium on investments	177	478
Changes in assets and liabilities, net of impact of acquisition:
Accounts receivable	(394)	2,727
Inventory	55	(1,786)
Prepaid expenses and other assets	(364)	1,782
Accounts payable	(726)	(1,950)
Accrued expenses and other liabilities	(2,278)	(524)
Deferred revenue	(873)	(262)
Net cash provided by (used in) operating activities	(3,151)	1,945
Cash flows from investing activities:
Purchase of investments	(12,526)	(10,712)
Sales and maturities of short-term investments	21,335	34,754
Acquisition	(7,343)
Purchases of property and equipment	(1,101)	(453)
Net cash provided by investing activities	365	23,589
Cash flows from financing activities:
Repurchase of common stock	(4,083)	(27,120)
Proceeds from issuance of common stock under employee stock plans	818	919
Net cash used in financing activities	(3,265)	(26,201)
Net decrease in cash and cash equivalents	(6,051)	(667)
Cash and cash equivalents at beginning of the year	36,776	41,520
Cash and cash equivalents at end of the period	30,725	40,853
Supplemental cash flow information:
Net cash paid (received) for income taxes	$ 78	$ (1,597)

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Dec. 31, 2015
Company And Summary Of Significant Accounting Policies Details Narrative
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 GAAP 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, 2015. The consolidated results of operations for the three months and nine months ended December 31, 2015 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, 2015. Litigation and settlement costs From time to time, the Company is involved in legal actions. See Note 6 for information regarding litigation that was resolved during the nine months ended December 31, 2015. Recent accounting pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which eliminates the current requirement to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, entities will be required to classify all deferred tax assets and liabilities as noncurrent. The update is effective for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard on its consolidated financial statements. In September 2015, the FASB issued a new accounting standard that eliminates the requirement to restate prior period financial statements for measurement period adjustments following a business combination. The new guidance requires that the cumulative impact of a measurement period adjustment including the impact on prior periods be recognized in the reporting period in which the adjustment is identified along with additional disclosures. The new guidance will be effective for the Company beginning in the first quarter of fiscal 2017. The new guidance is required to be adopted prospectively with early adoption permitted for financial statements that have not yet been made available for issuance. The new guidance is not expected to have a material impact on the Company’s consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory". This standard update intends to simplify the subsequent measurement of inventory, excluding inventory accounted for under the last-in, first-out or the retail inventory methods. The update replaces the current lower of cost or market test with a lower of cost and net realizable value test. Under the current guidance, market could be replacement cost, net realizable value or net realizable value less an approximately normal profit margin. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The update is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard on its consolidated financial statements. In August 2014, the FASB issued new guidance related to the Company’s responsibility to evaluate whether there is substantial doubt about its ability to continue ongoing business operations and to provide relevant footnote disclosures. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." The new accounting standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The accounting standard is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early adoption is permitted for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. ASU No. 2014-09 provides for one of two methods of transition: retrospective application to each prior period presented; or, recognition of the cumulative effect of retrospective application of the new standard in the period of initial application. The Company is currently evaluating the impact of this accounting standard on its consolidated financial statements.

2. NET LOSS PER COMMON SHARE

9 Months Ended

Dec. 31, 2015

NET INCOME (LOSS) PER COMMON 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 (loss) per share. The following table sets forth the computation of basic and diluted net income (loss) per share:



	Three Months Ended December 31,				Nine Months Ended December 31,
	2015		2014		2015		2014

	(In thousands, except per share amounts)

Net income (loss)	$	(819)	$	148	$	(2,083)	$	(2,248)

Denominators:
Weighted average shares—Basic		22,612		23,738		22,743		25,591
Dilutive effect of employee stock options		—		587		—		—
Weighted average shares—Dilutive		22,612		24,325		22,743		25,591
Net income (loss) per common share—Basic	$	(0.04)	$	0.01	$	(0.09)		(0.09)
Net income (loss) per common share—Diluted	$	(0.04)	$	0.01	$	(0.09)		(0.09)

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



	Three Months Ended December 31,		Nine Months Ended December 31,
	2015	2014	2015	2014

	(In thousands)
Shares underlying options	5,887	4,245	5,282	3,786

3. BALANCE SHEET DETAIL

9 Months Ended

Dec. 31, 2015

Balance Sheet Detail

NOTE 3 - BALANCE SHEET DETAIL

NOTE 3—BALANCE SHEET DETAIL



	December 31, 2015		March 31, 2015

	(In thousands)
Inventories:
Work-in-progress	$	1,669	$	2,422
Finished goods		5,379		5,362
Inventory at distributors		395		628
	$	7,443	$	8,412


	December 31, 2015		March 31, 2015
	(In thousands)
Accounts receivable, net:
Accounts receivable	$	8,754	$	8,360
Less: Allowances for sales returns, doubtful accounts and other		(100)		(103)
	$	8,654	$	8,257


	December 31, 2015		March 31, 2015
	(In thousands)
Prepaid expenses and other current assets:
Prepaid tooling and masks	$	1,767	$	1,208
Prepaid income taxes		—		139
Other receivables		306		350
Other prepaid expenses and other current assets		641		600
	$	2,714	$	2,297


	December 31, 2015		March 31, 2015
	(In thousands)
Property and equipment, net:
Computer and other equipment	$	18,351	$	17,264
Software		4,793		4,792
Land		3,900		3,900
Building and building improvements		2,256		2,256
Furniture and fixtures		114		110
Leasehold improvements		820		791
		30,234		29,113
Less: Accumulated depreciation and amortization		(21,313)		(20,405)
	$	8,921	$	8,708

Depreciation and amortization expense was $322,000 and $322,000, respectively, for the three months ended December 31, 2015 and 2014 and $892,000 and $1,164,000, respectively, for the nine months ended December 31, 2015 and 2014.


	December 31, 2015		March 31, 2015
	(In thousands)
Other assets:
Non-current deferred income taxes	$	31	$	27
Intangibles, net		3,748		393
Deposits		3,059		78
	$	6,838	$	498

Deposits at December 31, 2015 include approximately $3.0 million placed in escrow in connection with the Company’s acquisition of MikaMonu on November 23, 2015. See Note 9— Acquisition for more information.

The following table summarizes the components of intangible assets and related accumulated amortization balances at December 31, 2015 (in thousands):


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
Product designs	$	590	$	534	$	56
Patents		4,220		528		3,692
Software		80		80		—
Total	$	4,890	$	1,142	$	3,748

Amortization of intangible assets included in cost of revenues was $63,000 and $41,000, respectively, for the three months ended December 31, 2015 and 2014 and $145,000 and $130,000, respectively, for the nine months ended December 31, 2015 and 2014.

As of December 31, 2015, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands):


Twelve Month Period Ending December 31,
2016	$	370
2017		313
2018		287
2019		233
2020		233
Thereafter		2,312
Total	$	3,748


	December 31, 2015		March 31, 2015
	(In thousands)
Accrued expenses and other liabilities:
Accrued compensation	$	2,683	$	3,386
Accrued professional fees		480		1,380
Accrued commissions		267		268
Other accrued expenses		939		903
	$	4,369	$	5,937


	December 31, 2015		March 31, 2015
	(In thousands)
Other accrued expenses:
Contingent consideration	$	5,800	$	—
Escrow indemnity accrual		484		—
Other long-term accrued liabilities		45		—
	$	6,329	$	—

4. INCOME TAXES	9 Months Ended
4. INCOME TAXES	Dec. 31, 2015
Income Taxes
NOTE 4-INCOME TAXES	NOTE 4—INCOME TAXES The current portion of the Company’s unrecognized tax benefits was $0 at both December 31, 2015 and March 31, 2015. The long-term portion at December 31, 2015 and March 31, 2015 was $101,000 and $780,000, respectively, of which the timing of the resolution is uncertain. As of December 31, 2015, $1,731,000 of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets. As of December 31, 2015 and March 31, 2015, the Company’s net deferred tax assets of $7.2 million and $6.0 million, respectively, were subject to a full valuation allowance. The Company recorded a net deferred tax liability of $821,000 associated with the estimated fair value adjustments of the intangible assets acquired in its acquisition of MikaMonu in the quarter ended December 31, 2015. During the three months ended December 31, 2015, the Company recorded a tax benefit of $698,000 due to the reduction of uncertain tax benefits as a result of the lapse of applicable statutes of limitations. 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 $438,000, 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 2013 through 2015 remain open to examination by federal tax authorities, and fiscal years 2012 through 2015 remain open to examination by California tax authorities. The Company’s estimated annual effective income tax rate was approximately 9.6% and 5.1% as of December 31, 2015 and 2014, respectively. The annual effective tax rate as of December 31, 2015 and 2014 varies from the United States statutory income tax rate primarily due to valuation allowances in the United States whereby pre-tax losses do not result in the recognition of corresponding income tax benefits and expenses and the foreign tax differential.

5. FINANCIAL INSTRUMENTS

9 Months Ended

Dec. 31, 2015

Financial Instruments.

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 disclosures. 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, 2015, the Level 1 category included money market funds of $6.2 million, which were included in cash and cash equivalents on the Condensed Consolidated Balance Sheets.

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, 2015, the Level 2 category included short-term investments of $19.4 million and long-term investments of $ 15.5 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, 2015, the Company had no Level 3 financial assets and a Level 3 financial liability consisting of the contingent consideration liability for the acquisition of MikMonu. See Note 9—Acquisition for more information.

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


			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets and Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
	December 31, 2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds	$	6,219	$	6,219	$	—	$	—
Marketable securities		34,870		—		34,870		—
Total	$	41,089	$	6,219	$	34,870	$	—


			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets and Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
	March 31, 2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds	$	4,409	$	4,409	$	—	$	—
Marketable securities		43,941		—		43,941		—
Total	$	48,350	$	4,409	$	43,941	$	—

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 (loss) in the Condensed Consolidated Balance Sheets. The Company had money market funds of $6.2 million and $4.4 million at December 31, 2015 and March 31, 2015, respectively, included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. 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:



	December 31, 2015
			Gross		Gross
			Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
Short-term investments:
State and municipal obligations	$	1,021	$	2	$	—	$	1,023
Corporate notes		3,425		—		(6)		3,419
Certificates of deposit		9,250		3		(5)		9,248
Foreign government obligations		2,692		—		(2)		2,690
Agency bonds		3,003		—		(2)		3,001
Total short-term investments	$	19,391	$	5	$	(15)	$	19,381
Long-term investments:
Corporate notes	$	2,276	$	—	$	(10)	$	2,266
Certificates of deposit		12,250		2		(29)		12,223
Agency bonds		1,000		—		—		1,000
Total long-term investments	$	15,526	$	2	$	(39)	$	15,489



	March 31, 2015
			Gross		Gross
			Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
Short-term investments:
State and municipal obligations	$	6,810	$	—	$	—	$	6,810
Corporate notes		7,366		10		—		7,376
Agency bonds		1,006		—		—		1,006
Certificates of deposit		7,000		9		—		7,009
Total short-term investments	$	22,182	$	19	$	—	$	22,201
Long-term investments:
State and municipal obligations	$	1,053	$	4	$	—	$	1,057
Corporate notes		4,232		—		(10)		4,222
Certificates of deposit		9,750		24		(1)		9,773
Agency bonds		4,003		4		(2)		4,005
Foreign government obligations		2,684		—		(1)		2,683
Total long-term investments	$	21,722	$	32	$	(14)	$	21,740

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 asset related to unrecognized gains and losses on short-term and long-term investments was $17,000 at December 31, 2015. The deferred tax liability related to unrecognized gains and losses on short-term and long-term investments $11,000 at March 31, 2015.

As of December 31, 2015, contractual maturities of the Company’s available-for-sale investments were as follows:



			Fair
	Cost		Value
	(In thousands)
Maturing within one year	$	19,391	$	19,381
Maturing in one to three years		15,526		15,489
Maturing in more than three years		—		—
	$	34,917	$	34,870

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

Dec. 31, 2015

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 material for the three months or nine months ended December 31, 2015 or 2014.

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 sought 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 the Company’s distributors and 11 of its customers who allegedly incorporate the Company’s 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 sought 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.

The Company did not record any loss contingency during fiscal 2013, fiscal 2014 or fiscal 2015 in connection with these legal proceedings as the Company was unable to predict their outcome and could not estimate the likelihood or potential dollar amount of any adverse results.

On May 6, 2015, the Company and Cypress entered into a settlement agreement to resolve the patent infringement litigation and a separate lawsuit pending in the United States District Court for the Northern District of California in which the Company alleged that Cypress had violated federal and state antitrust laws. Under the settlement agreement:

Each of the parties agreed to dismiss its lawsuit with prejudice in consideration of the dismissal with prejudice of the lawsuit brought by the other party; and

Each party agreed to release all claims against the other with respect to issues raised in the two lawsuits.

The parties agreed that the settlement agreement was entered into to resolve disputed claims, and that each party denies any liability to the other party.

7. STOCK- BASED COMPENSATION

9 Months Ended

Dec. 31, 2015

Stock-Based Compensation

NOTE 7-STOCK- BASED COMPENSATION

NOTE 7—STOCK-BASED COMPENSATION

As of December 31, 2015, 6,719,123 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, 2015:



			Weighted
		Number of Shares	Average	Weighted
	Shares	Underlying	Remaining	Average
	Available for	Options	Contractual	Exercise		Intrinsic
	Grant	Outstanding	Life (Years)	Price		Value
Balance at March 31, 2015	6,213,943	6,774,151		$	5.16
Options reserved	1,156,419	—			—
Granted	(661,103)	661,103			4.90
Exercised	—	(76,745)			4.19	$	46,977
Forfeited/expired	9,864	(19,864)			4.64
Balance at December 31, 2015	6,719,123	7,338,645		$	5.15
Options vested and exercisable		4,976,550	3.82	$	5.05	$	484,583
Options vested and expected to vest		7,290,669	5.22	$	5.14	$	484,583

The weighted average fair value per underlying share of options granted during the three months ended December 31, 2015 and 2014 was $1.48 and $1.79, respectively and for the nine months ended December 31, 2015 and 2014 was $1.70 and $2.10, respectively.

Options outstanding by exercise price at December 31, 2015 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	-	3.43	892,584	$	3.18	3.10	892,584	$	3.18
$	3.75	-	4.00	812,779	$	3.96	3.21	812,779	$	3.96
$	4.17	-	4.68	747,515	$	4.30	5.94	357,926	$	4.30
$	4.81	-	4.98	997,676	$	4.92	7.88	389,871	$	4.88
$	5.13	-	5.34	625,513	$	5.23	8.74	49,980	$	5.19
$	5.50			783,433	$	5.50	0.88	783,433	$	5.50
$	5.59	-	6.00	901,930	$	5.77	5.53	532,248	$	5.81
$	6.28	-	6.63	812,219	$	6.48	6.36	645,440	$	6.47
$	6.82	-	7.00	651,376	$	6.90	6.06	398,669	$	6.92
$	9.20			113,620	$	9.20	5.07	113,620	$	9.20
				7,338,645	$	5.15	5.25	4,976,550	$	5.05

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 December 31,				Nine Months Ended December 31,
	2015		2014		2015		2014
	(In thousands)
Cost of revenues	$	85	$	93	$	242	$	296
Research and development		208		220		649		709
Selling, general and administrative		121		77		496		528
Total	$	414	$	390	$	1,387	$	1,533

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.

No tax benefit related to stock-based compensation was recognized in the three months or nine months ended December 31, 2015 or December 31, 2014 due to a full valuation allowance. There were no windfall tax benefits realized from exercised stock options in any of these periods. Compensation cost capitalized within inventory at December 31, 2015 was immaterial. As of December 31, 2015, the Company’s total unrecognized compensation cost was $2.9 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 December 31,						Nine Months Ended December 31,
	2015			2014			2015				2014
	(In thousands)						(In thousands)
Stock Option Plans:
Risk-free interest rate		1.56	%		1.60	%	1.52	-	1.57	%	1.60	-	1.70	%
Expected life (in years)		5.00			5.00		5.00						5.00
Volatility		36.3	%		41.3	%	36.3	-	38.0	%	41.3	-	44.8	%
Dividend yield		—	%		—	%	—		—	%			—	%
Employee Stock Purchase Plan:
Risk-free interest rate		0.15	%		0.05	%	0.09	-	0.15	%			0.05	%
Expected life (in years)		0.50			0.50		0.50						0.50
Volatility		27.9	%		38.0	%	26.3	-	27.9	%	30.8	-	38.0	%
Dividend yield		—	%		—	%			—	%			—	%

8. SEGMENT AND GEOGRAPHIC INFORMATION

9 Months Ended

Dec. 31, 2015

Segment And Geographic Information

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 December 31,				Nine Months Ended December 31,
	2015		2014		2015		2014
	(In thousands)
United States	$	4,873	$	5,077	$	16,123	$	13,471
China		2,808		4,459		9,916		11,697
Malaysia		10		20		15		2,720
Singapore		1,682		1,455		4,681		4,955
Netherlands		2,518		1,505		6,073		2,977
Rest of the world		1,030		1,711		3,715		4,615
	$	12,921	$	14,227	$	40,523	$	40,435

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599

+ Details

9. ACQUISITION

9 Months Ended

Dec. 31, 2015

Acquisition

NOTE 9-ACQUISITION

NOTE 9—ACQUISITION

On November 23, 2015, the Company acquired all of the outstanding capital stock of privately held MikaMonu Group Ltd. (“MikaMonu”), a development-stage, Israel-based company that specializes in in-place associative computing for markets including big data, computer vision and cyber security. MikaMonu, located in Tel Aviv, held 12 United States patents and a number of pending patent applications.

The acquisition was undertaken by the Company in order to gain access to the MikaMonu patents and the potential markets, and new customer base in those markets, that can be served with new products that the Company plans to develop using the MikaMonu patents obtained in the acquisition.

The acquisition has been accounted for as a purchase under authoritative guidance for business combinations. The purchase price of the acquisition has been preliminarily allocated to the intangible assets acquired, with the excess of the purchase price over the fair value of assets acquired recorded as goodwill. The Company will perform a goodwill impairment test in February of each fiscal year.

The results of operations of MikaMonu and the estimated fair value of the assets acquired were included in the Company’s condensed consolidated financial statements beginning November 23, 2015.

Consideration

Under the terms of the acquisition agreement, the Company paid the former MikaMonu shareholders initial cash consideration of approximately $5.0 million at the closing on November 23, 2015. Approximately $484,000 of the initial payment was deposited in escrow to provide a fund for potential future indemnification claims by the Company. This amount is included in other assets on the Condensed Consolidated Balance Sheet at December 31, 2015.

The Company is also required to pay the former MikaMonu shareholders future contingent consideration consisting of retention payments and “earnout” payments, as described below.

The Company will make cash retention payments of up to an additional $2.5 million to the three former MikaMonu shareholders in installments over a four-year period, conditioned on the continued employment of Dr. Avidan Akerib, MikaMonu’s co-founder and chief technologist. The retention amount of $2.5 million has been deposited in escrow and is included in other assets on the Consolidated Balance Sheet at December 31, 2015.

The Company will also make “earnout” payments to the former MikaMonu shareholders in cash or shares of the Company’s common stock, at the Company’s discretion, during a period of up to ten years following the closing if certain product development milestones and revenue targets for products based on the MikaMonu technology are achieved. Earnout amounts of $750,000 will be payable if certain product development milestones are achieved by December 31, 2017. Additional earnout amounts of $2,750,000 and $4,000,000 will be payable if certain revenue milestones are achieved by January 1, 2021 and January 1, 2022, respectively; and additional payments, up to a maximum of $30 million, equal to 5% of net revenues from the sale of qualifying products in excess of certain thresholds will be made quarterly through December 31, 2025.

The portion of the retention payment contingently payable to Dr. Akerib (approximately $1.2 million) will be recorded as compensation expense over the period that his services are provided to the Company. The portion of the retention payment contingently payable to the other former MikaMonu shareholders (approximately $1.3 million) plus the maximum amount of the potential earnout payments totals approximately $38.8 million. The Company has determined that the fair value of this contingent consideration liability was $5.8 million at the acquisition date. This amount is included in other accrued expenses on the Consolidated Balance Sheet at December 31, 2015.

The fair value of the contingent consideration liability was determined as of the acquisition date using unobservable inputs. These inputs include the estimated amount and timing of future cash flows, the probability of success (achievement of the various contingent events) and a risk-adjusted discount rate of approximately 14.8% used to adjust the probability-weighted cash flows to their present value. Subsequent to the acquisition date, at each reporting period, the contingent consideration liability will be re-measured at then current fair value with changes recorded in the Consolidated Statements of Operations. Changes in any of the inputs may result in material adjustments to the recorded fair value.

Acquisition-related costs

Acquisition-related costs of approximately $376,000 and $394,000 are included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations for the three months and nine months ended December 31, 2015, respectively.

Purchase price allocation

The allocation of the purchase price to acquired identifiable intangible assets and goodwill was based on their estimated fair values at the date of acquisition. The fair value allocated to patents was $3.5 million and the fair value allocated to goodwill was $8.0 million.

The fair value allocated to tangible and identifiable intangible assets and goodwill of MikaMonu acquired on November 23, 2015 was computed as follows (in thousands):


Cash and cash equivalents	$	1
Other receivables		54
Property and equipment, net		10
Intangible assets		3,500
Goodwill		8,030
Total assets acquired		11,595
Accrued expenses		(10)
Net deferred tax liability		(821)
Total liabilities assumed		(831)
Fair value of net assets acquired	$	10,764

The deferred tax liability associated with the estimated fair value adjustments of the intangible assets acquired is recorded at an estimated weighted average statutory tax rate in the jurisdictions where the fair value adjustments may occur.

Identifiable intangible assets

The following table sets forth the components of the identifiable intangible assets acquired in the MikaMonu acquisition, which are being amortized over their estimated useful lives on a straight-line basis:

The fair value of patents was determined using relief from royalty approach, which discounted expected future cash flows to present value. The cash flows were discounted at a rate of approximately 14.0%.

Prior to the closing of the acquisition, there were no material relationships between the Company and MikaMonu.

The following table summarizes total net revenues and net loss of the combined entity had the acquisition of MikaMonu occurred on April 1, 2014 (in thousands, except loss per share data):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2015		2014		2015		2014

Pro forma net revenues	$	12,921	$	14,227	$	40,523	$	40,670
Pro forma net loss	$	(563)	$	(166)	$	(2,540)	$	(3,229)
Pro forma net loss per share, basic and diluted	$	(0.02)	$	(0.01)	$	(0.11)	$	(0.13)

The combined results in the table above have been prepared for comparative purposes only and include acquisition related adjustments for, among other items, the amortization of identifiable intangible assets. Since the acquisition date, the results of MikaMonu have been included in the Company’s condensed consolidated financial statements. The combined results do not purport to be indicative of the results of operations which would have resulted had the acquisition been effected at the beginning of the applicable periods noted above, or the future results of operations of the combined entity.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4922-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Dec. 31, 2015
Company And Summary Of Significant Accounting Policies Details Narrative
Basis of consolidation	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 GAAP 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, 2015. The consolidated results of operations for the three months and nine months ended December 31, 2015 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, 2015.
Litigation and settlement costs	Litigation and settlement costs From time to time, the Company is involved in legal actions. See Note 6 for information regarding litigation that was resolved during the nine months ended December 31, 2015.
Recent accounting pronouncements	Recent accounting pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which eliminates the current requirement to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, entities will be required to classify all deferred tax assets and liabilities as noncurrent. The update is effective for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard on its consolidated financial statements. In September 2015, the FASB issued a new accounting standard that eliminates the requirement to restate prior period financial statements for measurement period adjustments following a business combination. The new guidance requires that the cumulative impact of a measurement period adjustment including the impact on prior periods be recognized in the reporting period in which the adjustment is identified along with additional disclosures. The new guidance will be effective for the Company beginning in the first quarter of fiscal 2017. The new guidance is required to be adopted prospectively with early adoption permitted for financial statements that have not yet been made available for issuance. The new guidance is not expected to have a material impact on the Company’s consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory". This standard update intends to simplify the subsequent measurement of inventory, excluding inventory accounted for under the last-in, first-out or the retail inventory methods. The update replaces the current lower of cost or market test with a lower of cost and net realizable value test. Under the current guidance, market could be replacement cost, net realizable value or net realizable value less an approximately normal profit margin. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The update is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard on its consolidated financial statements. In August 2014, the FASB issued new guidance related to the Company’s responsibility to evaluate whether there is substantial doubt about its ability to continue ongoing business operations and to provide relevant footnote disclosures. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." The new accounting standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The accounting standard is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early adoption is permitted for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. ASU No. 2014-09 provides for one of two methods of transition: retrospective application to each prior period presented; or, recognition of the cumulative effect of retrospective application of the new standard in the period of initial application. The Company is currently evaluating the impact of this accounting standard on its consolidated financial statements.

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

9 Months Ended

Dec. 31, 2015

NET INCOME (LOSS) PER COMMON SHARE

Basic and diluted net loss per share



	Three Months Ended December 31,				Nine Months Ended December 31,
	2015		2014		2015		2014

	(In thousands, except per share amounts)

Net income (loss)	$	(819)	$	148	$	(2,083)	$	(2,248)

Denominators:
Weighted average shares—Basic		22,612		23,738		22,743		25,591
Dilutive effect of employee stock options		—		587		—		—
Weighted average shares—Dilutive		22,612		24,325		22,743		25,591
Net income (loss) per common share—Basic	$	(0.04)	$	0.01	$	(0.09)		(0.09)
Net income (loss) per common share—Diluted	$	(0.04)	$	0.01	$	(0.09)		(0.09)

Anti-dilutive shares



	Three Months Ended December 31,		Nine Months Ended December 31,
	2015	2014	2015	2014

	(In thousands)
Shares underlying options	5,887	4,245	5,282	3,786

3. BALANCE SHEET DETAIL (Tables)

9 Months Ended

Dec. 31, 2015

Balance Sheet Detail

Schedule of Inventories



	December 31, 2015		March 31, 2015

	(In thousands)
Inventories:
Work-in-progress	$	1,669	$	2,422
Finished goods		5,379		5,362
Inventory at distributors		395		628
	$	7,443	$	8,412

Schedule of Accounts Receivable, Net


	December 31, 2015		March 31, 2015
	(In thousands)
Accounts receivable, net:
Accounts receivable	$	8,754	$	8,360
Less: Allowances for sales returns, doubtful accounts and other		(100)		(103)
	$	8,654	$	8,257

Schedule of Prepaid Expenses and Other Current Assets


	December 31, 2015		March 31, 2015
	(In thousands)
Prepaid expenses and other current assets:
Prepaid tooling and masks	$	1,767	$	1,208
Prepaid income taxes		—		139
Other receivables		306		350
Other prepaid expenses and other current assets		641		600
	$	2,714	$	2,297

Schedule of Property and Equipment, Net


	December 31, 2015		March 31, 2015
	(In thousands)
Property and equipment, net:
Computer and other equipment	$	18,351	$	17,264
Software		4,793		4,792
Land		3,900		3,900
Building and building improvements		2,256		2,256
Furniture and fixtures		114		110
Leasehold improvements		820		791
		30,234		29,113
Less: Accumulated depreciation and amortization		(21,313)		(20,405)
	$	8,921	$	8,708

Schedule of Other Assets


	December 31, 2015		March 31, 2015
	(In thousands)
Other assets:
Non-current deferred income taxes	$	31	$	27
Intangibles, net		3,748		393
Deposits		3,059		78
	$	6,838	$	498

Schedule of Intangible Assets

The following table summarizes the components of intangible assets and related accumulated amortization balances at December 31, 2015 (in thousands):


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
Product designs	$	590	$	534	$	56
Patents		4,220		528		3,692
Software		80		80		—
Total	$	4,890	$	1,142	$	3,748

Estimated future amortization expense of intangible assets

As of December 31, 2015, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands):


Twelve Month Period Ending December 31,
2016	$	370
2017		313
2018		287
2019		233
2020		233
Thereafter		2,312
Total	$	3,748

Schedule of Accrued Expenses and Other Liabilities


	December 31, 2015		March 31, 2015
	(In thousands)
Accrued expenses and other liabilities:
Accrued compensation	$	2,683	$	3,386
Accrued professional fees		480		1,380
Accrued commissions		267		268
Other accrued expenses		939		903
	$	4,369	$	5,937

Other Accrued Expenses


	December 31, 2015		March 31, 2015
	(In thousands)
Other accrued expenses:
Contingent consideration	$	5,800	$	—
Escrow indemnity accrual		484		—
Other long-term accrued liabilities		45		—
	$	6,329	$	—

5. FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Dec. 31, 2015

Financial Instruments.

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

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


			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets and Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
	December 31, 2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds	$	6,219	$	6,219	$	—	$	—
Marketable securities		34,870		—		34,870		—
Total	$	41,089	$	6,219	$	34,870	$	—


			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets and Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
	March 31, 2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds	$	4,409	$	4,409	$	—	$	—
Marketable securities		43,941		—		43,941		—
Total	$	48,350	$	4,409	$	43,941	$	—

Schedule of Available-for-sale investments



	December 31, 2015
			Gross		Gross
			Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
Short-term investments:
State and municipal obligations	$	1,021	$	2	$	—	$	1,023
Corporate notes		3,425		—		(6)		3,419
Certificates of deposit		9,250		3		(5)		9,248
Foreign government obligations		2,692		—		(2)		2,690
Agency bonds		3,003		—		(2)		3,001
Total short-term investments	$	19,391	$	5	$	(15)	$	19,381
Long-term investments:
Corporate notes	$	2,276	$	—	$	(10)	$	2,266
Certificates of deposit		12,250		2		(29)		12,223
Agency bonds		1,000		—		—		1,000
Total long-term investments	$	15,526	$	2	$	(39)	$	15,489



	March 31, 2015
			Gross		Gross
			Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
Short-term investments:
State and municipal obligations	$	6,810	$	—	$	—	$	6,810
Corporate notes		7,366		10		—		7,376
Agency bonds		1,006		—		—		1,006
Certificates of deposit		7,000		9		—		7,009
Total short-term investments	$	22,182	$	19	$	—	$	22,201
Long-term investments:
State and municipal obligations	$	1,053	$	4	$	—	$	1,057
Corporate notes		4,232		—		(10)		4,222
Certificates of deposit		9,750		24		(1)		9,773
Agency bonds		4,003		4		(2)		4,005
Foreign government obligations		2,684		—		(1)		2,683
Total long-term investments	$	21,722	$	32	$	(14)	$	21,740

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



			Fair
	Cost		Value
	(In thousands)
Maturing within one year	$	19,391	$	19,381
Maturing in one to three years		15,526		15,489
Maturing in more than three years		—		—
	$	34,917	$	34,870

- 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 + Details

7. STOCK- BASED COMPENSATION (Tables)

9 Months Ended

Dec. 31, 2015

Stock-Based Compensation

Summary of stock option activities



			Weighted
		Number of Shares	Average	Weighted
	Shares	Underlying	Remaining	Average
	Available for	Options	Contractual	Exercise		Intrinsic
	Grant	Outstanding	Life (Years)	Price		Value
Balance at March 31, 2015	6,213,943	6,774,151		$	5.16
Options reserved	1,156,419	—			—
Granted	(661,103)	661,103			4.90
Exercised	—	(76,745)			4.19	$	46,977
Forfeited/expired	9,864	(19,864)			4.64
Balance at December 31, 2015	6,719,123	7,338,645		$	5.15
Options vested and exercisable		4,976,550	3.82	$	5.05	$	484,583
Options vested and expected to vest		7,290,669	5.22	$	5.14	$	484,583

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	-	3.43	892,584	$	3.18	3.10	892,584	$	3.18
$	3.75	-	4.00	812,779	$	3.96	3.21	812,779	$	3.96
$	4.17	-	4.68	747,515	$	4.30	5.94	357,926	$	4.30
$	4.81	-	4.98	997,676	$	4.92	7.88	389,871	$	4.88
$	5.13	-	5.34	625,513	$	5.23	8.74	49,980	$	5.19
$	5.50			783,433	$	5.50	0.88	783,433	$	5.50
$	5.59	-	6.00	901,930	$	5.77	5.53	532,248	$	5.81
$	6.28	-	6.63	812,219	$	6.48	6.36	645,440	$	6.47
$	6.82	-	7.00	651,376	$	6.90	6.06	398,669	$	6.92
$	9.20			113,620	$	9.20	5.07	113,620	$	9.20
				7,338,645	$	5.15	5.25	4,976,550	$	5.05

Summary of stock-based compensation expense by line item



	Three Months Ended December 31,				Nine Months Ended December 31,
	2015		2014		2015		2014
	(In thousands)
Cost of revenues	$	85	$	93	$	242	$	296
Research and development		208		220		649		709
Selling, general and administrative		121		77		496		528
Total	$	414	$	390	$	1,387	$	1,533

Schedule of weighted average assumptions



	Three Months Ended December 31,						Nine Months Ended December 31,
	2015			2014			2015				2014
	(In thousands)						(In thousands)
Stock Option Plans:
Risk-free interest rate		1.56	%		1.60	%	1.52	-	1.57	%	1.60	-	1.70	%
Expected life (in years)		5.00			5.00		5.00						5.00
Volatility		36.3	%		41.3	%	36.3	-	38.0	%	41.3	-	44.8	%
Dividend yield		—	%		—	%	—		—	%			—	%
Employee Stock Purchase Plan:
Risk-free interest rate		0.15	%		0.05	%	0.09	-	0.15	%			0.05	%
Expected life (in years)		0.50			0.50		0.50						0.50
Volatility		27.9	%		38.0	%	26.3	-	27.9	%	30.8	-	38.0	%
Dividend yield		—	%		—	%			—	%			—	%

8. SEGMENT AND GEOGRAPHIC INFORMATION (Tables)

9 Months Ended

Dec. 31, 2015

Segment And Geographic Information

Net revenues by geographic area



	Three Months Ended December 31,				Nine Months Ended December 31,
	2015		2014		2015		2014
	(In thousands)
United States	$	4,873	$	5,077	$	16,123	$	13,471
China		2,808		4,459		9,916		11,697
Malaysia		10		20		15		2,720
Singapore		1,682		1,455		4,681		4,955
Netherlands		2,518		1,505		6,073		2,977
Rest of the world		1,030		1,711		3,715		4,615
	$	12,921	$	14,227	$	40,523	$	40,435

9. ACQUISTION (Tables)

9 Months Ended

Dec. 31, 2015

Acquisition

Schedule of fair value allocated to tangible and identifiable intangible assets and goodwill

The fair value allocated to tangible and identifiable intangible assets and goodwill of MikaMonu acquired on November 23, 2015 was computed as follows (in thousands):


Cash and cash equivalents	$	1
Other receivables		54
Property and equipment, net		10
Intangible assets		3,500
Goodwill		8,030
Total assets acquired		11,595
Accrued expenses		(10)
Net deferred tax liability		(821)
Total liabilities assumed		(831)
Fair value of net assets acquired	$	10,764

Schedule of components of identifiable assets acquired

Schedule of pro forma financial information

The following table summarizes total net revenues and net loss of the combined entity had the acquisition of MikaMonu occurred on April 1, 2014 (in thousands, except loss per share data):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2015		2014		2015		2014

Pro forma net revenues	$	12,921	$	14,227	$	40,523	$	40,670
Pro forma net loss	$	(563)	$	(166)	$	(2,540)	$	(3,229)
Pro forma net loss per share, basic and diluted	$	(0.02)	$	(0.01)	$	(0.11)	$	(0.13)

2. NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
NET INCOME (LOSS) PER COMMON SHARE
Net income (loss)	$ (819)	$ 148	$ (2,083)	$ (2,248)
Weighted average shares-Basic	22,612	23,738	22,743	25,591
Dilutive effect of employee stock options		587
Weighted average shares-Dilutive	22,612	24,325	22,743	25,591
Net income (loss) per common share - Basic	$ (0.04)	$ 0.01	$ (0.09)	$ (0.09)
Net income (loss) per common share - Diluted	$ (0.04)	$ 0.01	$ (0.09)	$ (0.09)

- Definition

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

2. NET INCOME (LOSS) PER COMMON SHARE - Shares underlying options (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
NET INCOME (LOSS) PER COMMON SHARE
Antidilutive shares excluded from computation of EPS	5,887	4,245	5,282	3,786

3. BALANCE SHEET DETAIL - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Inventories:
Work-in-progress	$ 1,669	$ 2,422
Finished goods	5,379	5,362
Inventory at distributors	395	628
Total Inventory	$ 7,443	$ 8,412

3. BALANCE SHEET DETAIL - Accounts receivable, net (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Accounts receivable, net:
Accounts receivable	$ 8,754	$ 8,360
Less: Allowances for sales returns, doubtful accounts and other	(100)	(103)
Total accounts receivable, net	$ 8,654	$ 8,257

3. BALANCE SHEET DETAIL - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Prepaid expenses and other current assets:
Prepaid tooling and masks	$ 1,767	$ 1,208
Prepaid income taxes		139
Other receivables	306	350
Other prepaid expenses	641	600
Total prepaid expenses and other current assets	$ 2,714	$ 2,297

3.BALANCE SHEET DETAIL - Property, Plant and Equipment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2015
Property and equipment, net:
Property and equipment, gross	$ 30,234,000		$ 30,234,000		$ 29,113,000
Less: Accumulated depreciation and amortization	(21,313,000)		(21,313,000)		(20,405,000)
Property, Plant and Equipment, Net, Total	8,921,000		8,921,000		8,708,000
Depreciation and amortization	322,000	$ 322,000	892,000	$ 1,164,000
Computer and other equipment
Property and equipment, net:
Property and equipment, gross	18,351,000		18,351,000		17,264,000
Software
Property and equipment, net:
Property and equipment, gross	4,793,000		4,793,000		4,792,000
Land
Property and equipment, net:
Property and equipment, gross	3,900,000		3,900,000		3,900,000
Building and building improvements
Property and equipment, net:
Property and equipment, gross	2,256,000		2,256,000		2,256,000
Furniture and fixtures
Property and equipment, net:
Property and equipment, gross	114,000		114,000		110,000
Leasehold improvements
Property and equipment, net:
Property and equipment, gross	$ 820,000		$ 820,000		$ 791,000

3. BALANCE SHEET DETAIL - Other assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Other assets:
Non-current deferred income taxes	$ 31	$ 27
Intangibles, net	3,748	393
Deposits	3,059	78
Total Other Assets	$ 6,838	$ 498

3. BALANCE SHEET DETAIL - Intangible assets (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2015
Gross Carrying Amount	$ 4,890,000		$ 4,890,000
Accumulated Amortization	1,142,000		1,142,000
Net Carrying Amount	3,748,000		3,748,000		$ 393,000
Amortization of intangible assets	63,000	$ 41,000	145,000	$ 130,000
Product designs
Gross Carrying Amount	590,000		590,000
Accumulated Amortization	534,000		534,000
Net Carrying Amount	56,000		56,000
Patents
Gross Carrying Amount	4,220,000		4,220,000
Accumulated Amortization	528,000		528,000
Net Carrying Amount	3,692,000		3,692,000
Software.
Gross Carrying Amount	80,000		80,000
Accumulated Amortization	$ 80,000		$ 80,000

3. BALANCE SHEET DETAIL - Amortization expense (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Estimated future amortization expense
2016	$ 370
2017	313
2018	287
2019	233
2020	233
Thereafter	2,312
Total	$ 3,748

3. BALANCE SHEET DETAIL - Accrued expenses and other liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Accrued expenses and other liabilities:
Accrued compensation	$ 2,683	$ 3,386
Accrued professional fees	480	1,380
Accrued commissions	267	268
Other accrued expenses.	939	903
Total Accrued Expenses and Other Liabilities	$ 4,369	$ 5,937

3. BALANCE SHEET DETAIL - Long term liabilities (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Other accrued expenses:
Contingent consideration liability	$ 5,800
Escrow indemnity accrual	484
Other long term accrued liabilities	45
Other accrued expenses	$ 6,329

4. INCOME TAXES (Details) - USD ($)	3 Months Ended	9 Months Ended
4. INCOME TAXES (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2015
Unrecognized tax benefits, current	$ 0	$ 0		$ 0
Unrecognized tax benefits, noncurrent	101,000	101,000		780,000
Deferred tax assets unrecognized tax benefit	1,731,000	1,731,000
Deferred tax assets net of liabilities	7,200,000	7,200,000		$ 6,000,000
Lapses during the current year applicable to statutes of limitations	698,000
Possible reduction in uncertain tax benefits	438,000	$ 438,000
Effective annual income tax rate		9.60%	5.10%
MikaMonu
Net deferred tax liability	$ 821,000	$ 821,000

5. FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Fair value measurements
Short-term investments	$ 19,381	$ 22,201
Long-term investments	15,489	21,740
Recurring
Fair value measurements
Money market funds included in cash and cash equivalents	6,219	4,409
Marketable securities	34,870	43,941
Assets	41,089	48,350
Recurring \| Level 1
Fair value measurements
Money market funds included in cash and cash equivalents	6,219	4,409
Assets	6,219	4,409
Recurring \| Level 2
Fair value measurements
Marketable securities	34,870	43,941
Assets	34,870	$ 43,941
Recurring \| Level 3
Fair value measurements
Assets	$ 0

5. FINANCIAL INSTRUMENTS - Available for sale investments (Details) - USD ($)	9 Months Ended
	Dec. 31, 2015	Mar. 31, 2015
Available-for-sale investments
Cost	$ 34,917,000
Fair Value	$ 34,870,000
Other information
Maximum maturity period of investment portfolio	3 years
Deferred tax asset related to unrecognized gains and losses on short-term and long-term investments	$ 17,000
Deferred tax liability related to unrecognized gains and losses on short-term and long-term investments		$ 11,000
Short-term investments
Available-for-sale investments
Cost	19,391,000	22,182,000
Gross Unrealized Gains	5,000	19,000
Gross Unrealized Losses	(15,000)
Fair Value	19,381,000	22,201,000
Short-term investments \| State and municipal obligations
Available-for-sale investments
Cost	1,021,000	6,810,000
Gross Unrealized Gains	2,000
Fair Value	1,023,000	6,810,000
Short-term investments \| Corporate notes
Available-for-sale investments
Cost	3,425,000	7,366,000
Gross Unrealized Gains		10,000
Gross Unrealized Losses	(6,000)
Fair Value	3,419,000	7,376,000
Short-term investments \| Certificates of deposits
Available-for-sale investments
Cost	9,250,000	7,000,000
Gross Unrealized Gains	3,000	9,000
Gross Unrealized Losses	(5,000)
Fair Value	9,248,000	7,009,000
Short-term investments \| International government obligations
Available-for-sale investments
Cost	2,692,000
Gross Unrealized Losses	(2,000)
Fair Value	2,690,000
Short-term investments \| Agency bonds
Available-for-sale investments
Cost	3,003,000	1,006,000
Gross Unrealized Losses	(2,000)
Fair Value	3,001,000	1,006,000
Long-term investment
Available-for-sale investments
Cost	15,526,000	21,722,000
Gross Unrealized Gains	2,000	32,000
Gross Unrealized Losses	(39,000)	(14,000)
Fair Value	15,489,000	21,740,000
Long-term investment \| State and municipal obligations
Available-for-sale investments
Cost		1,053,000
Gross Unrealized Gains		4,000
Fair Value		1,057,000
Long-term investment \| Corporate notes
Available-for-sale investments
Cost	2,276,000	4,232,000
Gross Unrealized Losses	(10,000)	(10,000)
Fair Value	2,266,000	4,222,000
Long-term investment \| Certificates of deposits
Available-for-sale investments
Cost	12,250,000	9,750,000
Gross Unrealized Gains	2,000	24,000
Gross Unrealized Losses	(29,000)	(1,000)
Fair Value	12,223,000	9,773,000
Long-term investment \| International government obligations
Available-for-sale investments
Cost		2,684,000
Gross Unrealized Losses		(1,000)
Fair Value		2,683,000
Long-term investment \| Agency bonds
Available-for-sale investments
Cost	1,000,000	4,003,000
Gross Unrealized Gains		4,000
Gross Unrealized Losses		(2,000)
Fair Value	$ 1,000,000	$ 4,005,000

5. FINANCIAL INSTRUMENTS - Contractual maturities (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Financial Instruments.
Maturing within one year, Cost	$ 19,391
Maturing in one to three years, Cost	15,526
Total	34,917
Maturing within one year, Fair Value	19,381
Maturing in one to three years, Fair Value	15,489
Fair Value	$ 34,870

6-COMMITMENTS AND CONTINGENCIES - Royalties and Product Warranties (Details)	9 Months Ended
	Dec. 31, 2015
Product warranties
Warranty period	3 years

6-COMMITMENTS AND CONTINGENCIES - Legal proceedings (Details)	9 Months Ended
	Dec. 31, 2015 lawsuit item customer patent
Legal proceedings
Number of lawsuits \| lawsuit	2
Cypress Semiconductor Litigation
Legal proceedings
Number of patents infringed	5
Cypress Semiconductor International Trade Commission
Legal proceedings
Number of patents infringed	3
Number of additional patent infringement complaints	1
Number of distributors \| item	3
Number of customers who infringed patents \| customer	11
Number of terminated or dismissed patent claims	1
Cypress Semiconductor Northern District Litigation
Legal proceedings
Number of terminated or dismissed patent claims	3
Number of patent claims transferred	2

7. STOCK- BASED COMPENSATION (Details)	9 Months Ended
7. STOCK- BASED COMPENSATION (Details)	Dec. 31, 2015 USD ($) $ / shares shares
Stock-Based Compensation
Shares available for grant, Beginning	6,213,943
Options reserved (in shares)	1,156,419
Granted (in shares)	(661,103)
Forfeited/expired (in shares)	9,864
Shares available for grant, Ending	6,719,123
Number of Shares Underlying Options Outstanding
Balance at the beginning of the period (in shares)	6,774,151
Granted (in shares)	661,103
Exercised (in shares)	(76,745)
Forfeited (in shares)	(19,864)
Balance at the end of the period (in shares)	7,338,645
Options vested and exercisable (in shares)	4,976,550
Options vested and expected to vest (in shares)	7,290,669
Weighted Average Remaining Contractual Life
Options vested and exercisable (in dollars per share)	3 years 9 months 26 days
Options vested and expected to vest (in dollars per share)	5 years 2 months 19 days
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share) \| $ / shares	$ 5.16
Granted (in dollars per share) \| $ / shares	4.90
Exercised (in dollars per share) \| $ / shares	4.19
Forfeited (in dollars per share) \| $ / shares	4.64
Balance at the end of the period (in dollars per share) \| $ / shares	5.15
Options vested and exercisable (in dollars per share) \| $ / shares	5.05
Options vested and expected to vest (in dollars per share) \| $ / shares	$ 5.14
Intrinsic Value
Exercised (in dollars) \| $	$ 46,977
Options vested and exercisable (in dollars) \| $	484,583
Options vested and expected to vest (in dollars) \| $	$ 484,583

7. STOCK- BASED COMPENSATION - Options outstanding by exercise price (Details) - $ / shares	9 Months Ended
	Dec. 31, 2015	Mar. 31, 2015
Options outstanding by exercise price
Exercise Price (in dollars per share)	$ 5.15	$ 5.16
Number of Shares Underlying Options Outstanding (in shares)	7,338,645
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.15
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 3 months
Options Exercisable, Number Vested and Exercisable (in shares)	4,976,550
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.05
$2.43 - $3.43
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)	$ 3.43
Number of Shares Underlying Options Outstanding (in shares)	892,584
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.18
Options Outstanding, Weighted Average Remaining Contractual Life	3 years 1 month 6 days
Options Exercisable, Number Vested and Exercisable (in shares)	892,584
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.18
$3.75 - $4.00
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	3.75
Exercise Price, high end of range (in dollars per share)	$ 4.00
Number of Shares Underlying Options Outstanding (in shares)	812,779
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.96
Options Outstanding, Weighted Average Remaining Contractual Life	3 years 2 months 16 days
Options Exercisable, Number Vested and Exercisable (in shares)	812,779
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.96
$4.17 - $4.68
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)	$ 4.68
Number of Shares Underlying Options Outstanding (in shares)	747,515
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 4.30
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 11 months 9 days
Options Exercisable, Number Vested and Exercisable (in shares)	357,926
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 4.30
$4.81 - $4.98
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)	$ 4.98
Number of Shares Underlying Options Outstanding (in shares)	997,676
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 4.92
Options Outstanding, Weighted Average Remaining Contractual Life	7 years 10 months 17 days
Options Exercisable, Number Vested and Exercisable (in shares)	389,871
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 4.88
$5.13 - $5.34
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	5.13
Exercise Price, high end of range (in dollars per share)	$ 5.34
Number of Shares Underlying Options Outstanding (in shares)	625,513
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.23
Options Outstanding, Weighted Average Remaining Contractual Life	8 years 8 months 27 days
Options Exercisable, Number Vested and Exercisable (in shares)	49,980
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.19
$5.50
Options outstanding by exercise price
Exercise Price (in dollars per share)	$ 5.50
Number of Shares Underlying Options Outstanding (in shares)	783,433
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.50
Options Outstanding, Weighted Average Remaining Contractual Life	10 months 17 days
Options Exercisable, Number Vested and Exercisable (in shares)	783,433
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.50
$5.59 - $6.00
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)	$ 6.00
Number of Shares Underlying Options Outstanding (in shares)	901,930
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.77
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 6 months 11 days
Options Exercisable, Number Vested and Exercisable (in shares)	532,248
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.81
$6.28 - $6.63
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	6.28
Exercise Price, high end of range (in dollars per share)	$ 6.63
Number of Shares Underlying Options Outstanding (in shares)	812,219
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 6.48
Options Outstanding, Weighted Average Remaining Contractual Life	6 years 4 months 10 days
Options Exercisable, Number Vested and Exercisable (in shares)	645,440
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 6.47
$6.82 - $7.00
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	6.82
Exercise Price, high end of range (in dollars per share)	$ 7.00
Number of Shares Underlying Options Outstanding (in shares)	651,376
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 6.90
Options Outstanding, Weighted Average Remaining Contractual Life	6 years 22 days
Options Exercisable, Number Vested and Exercisable (in shares)	398,669
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 6.92
$9.20
Options outstanding by exercise price
Exercise Price (in dollars per share)	$ 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	5 years 26 days
Options Exercisable, Number Vested and Exercisable (in shares)	113,620
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 9.20

7. STOCK- BASED COMPENSATION - Stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Stock-based compensation expense by line item
Stock-based compensation expense	$ 414	$ 390	$ 1,387	$ 1,533
Other information
Income tax benefit recognized from allocation of share-based compensation expense	0	0	0	0
Windfall tax benefits recognized	0	0	0	0
Unrecognized compensation costs	2,900		$ 2,900
Weighted average period of recognition of unrecognized compensation costs			2 years 4 days
Cost of revenues
Stock-based compensation expense by line item
Stock-based compensation expense	85	93	$ 242	296
Research and Development Expense
Stock-based compensation expense by line item
Stock-based compensation expense	208	220	649	709
Selling, general and administrative
Stock-based compensation expense by line item
Stock-based compensation expense	$ 121	$ 77	$ 496	$ 528

7. STOCK- BASED COMPENSATION - Weighted average assumptions (Details) - $ / shares	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Stock-based compensation
Weighted average fair value per underlying share of options granted (in dollars per share)	$ 1.48	$ 1.79	$ 1.70	$ 2.10
Employee Consultants And Directors Stock Options
Stock-based compensation
Risk-free interest rate (as a percent)	1.56%	1.60%
Risk-free interest rate, low end of range (as a percent)			1.52%	1.60%
Risk-free interest rate, high end of range (as a percent)			1.57%	1.70%
Expected life	5 years	5 years	5 years	5 years
Volatility (as a percent)	36.30%	41.30%
Volatility, low end of range (as a percent)			36.30%	41.30%
Volatility, high end of range (as a percent)			38.00%	44.80%
Dividend yield (as a percent)	0.00%	0.00%	0.00%	0.00%
Employee stock purchase plan
Stock-based compensation
Risk-free interest rate (as a percent)	0.15%	0.05%		0.05%
Risk-free interest rate, low end of range (as a percent)			0.09%
Risk-free interest rate, high end of range (as a percent)			0.15%
Expected life	6 months	6 months		6 months
Volatility (as a percent)	27.90%	38.00%
Volatility, low end of range (as a percent)			26.30%	30.80%
Volatility, high end of range (as a percent)			27.90%	38.00%
Dividend yield (as a percent)	0.00%	0.00%	0.00%	0.00%

8. SEGMENT AND GEOGRAPHIC INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2015 USD ($) segment	Dec. 31, 2014 USD ($)
Net revenues by geographic area
Revenue, Net	$ 12,921	$ 14,227	$ 40,523	$ 40,435
Number of reportable business segments \| segment			1
United States
Net revenues by geographic area
Revenue, Net	4,873	5,077	$ 16,123	13,471
China
Net revenues by geographic area
Revenue, Net	2,808	4,459	9,916	11,697
Malaysia
Net revenues by geographic area
Revenue, Net	10	20	15	2,720
Singapore
Net revenues by geographic area
Revenue, Net	1,682	1,455	4,681	4,955
Netherlands
Net revenues by geographic area
Revenue, Net	2,518	1,505	6,073	2,977
Rest of the world
Net revenues by geographic area
Revenue, Net	$ 1,030	$ 1,711	$ 3,715	$ 4,615

9. ACQUISITION (Details)		3 Months Ended		9 Months Ended
9. ACQUISITION (Details)	Nov. 23, 2015 USD ($) employee patent	Dec. 31, 2015 USD ($) $ / shares	Dec. 31, 2014 USD ($) $ / shares	Dec. 31, 2015 USD ($) $ / shares	Dec. 31, 2014 USD ($) $ / shares
Acquisition disclosure
Cash paid for acquisition				$ 7,343,000
Contingent consideration liability		$ 5,800,000		5,800,000
Assets acquired and liabilities assumed
Goodwill		8,030,000		8,030,000
MikaMonu
Acquisition disclosure
Number of former employees receiving retention payments \| employee	3
Cash paid for acquisition	$ 5,000,000
Contingent consideration, acquisition date fair value	2,500,000
Amount of payment held in escrow	$ 484,000
Term of additional contingent payments	4 years
Discount rate (as a percent)	14.80%
Contingent consideration liability	$ 5,800,000
Assets acquired and liabilities assumed
Cash and cash equivalents	1,000
Other receivables	54,000
Property and equipment, net	10,000
Intangible assets	3,500,000
Goodwill	8,030,000
Total assets acquired	11,595,000
Accrued expenses	(10,000)
Net deferred tax liability	(821,000)
Total liabilities assumed	(831,000)
Fair value of net assets acquired	$ 10,764,000
Pro forma financial information
Total net revenues		12,921,000	$ 14,227,000	40,523,000	$ 40,670,000
Net loss		$ (563,000)	$ (166,000)	$ (2,540,000)	$ (3,229,000)
Net loss per share, basic and diluted \| $ / shares		$ (0.02)	$ (0.01)	$ (0.11)	$ (0.13)
MikaMonu \| Patents
Acquisition disclosure
Discount rate (as a percent)	14.00%
Assets acquired and liabilities assumed
Intangible assets	$ 3,500,000
Useful life	15 years
MikaMonu \| Selling, general and administrative
Acquisition disclosure
Acquisition related costs		$ 376,000		$ 394,000
MikaMonu \| Other assets.
Acquisition disclosure
Amount of payment held in escrow	$ 2,500,000
MikaMonu \| United States
Acquisition disclosure
Number of patents held \| patent	12
MikaMonu \| Continued employment of Dr. Avidan Akerib
Acquisition disclosure
Contingent consideration	$ 1,200,000
MikaMonu \| Product development milestones and revenue targets
Acquisition disclosure
Contingent consideration		1,300,000		1,300,000
Term of additional contingent payments	10 years
MikaMonu \| Product development milestones and revenue targets \| Maximum
Acquisition disclosure
Contingent consideration		$ 38,800,000		$ 38,800,000
MikaMonu \| Product development milestones to be achieved by December 31, 2017
Acquisition disclosure
Contingent consideration	$ 750,000
MikaMonu \| Revenue milestones to be achieved by January, 1 2021
Acquisition disclosure
Contingent consideration	2,750,000
MikaMonu \| Revenue milestones to be achieved by January, 1 2022
Acquisition disclosure
Contingent consideration	4,000,000
MikaMonu \| Quarterly payments based on net revenue \| Maximum
Acquisition disclosure
Contingent consideration	$ 30,000,000
Contingent consideration, percent of net revenue	5.00%