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Fair Value

Useful Life

(in thousands)

(in years)

Total acquired identifiable intangible assets

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Mar. 31, 2016	May 31, 2016	Sep. 30, 2015
Document And Entity Information
Entity Registrant Name	GSI TECHNOLOGY INC
Entity Central Index Key	0001126741
Document Type	10-K
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 63.7
Entity Common Stock, Shares Outstanding		21,208,548
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2016

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
ASSETS
Cash and cash equivalents	$ 31,963	$ 36,776
Short-term investments	23,149	22,201
Accounts receivable, net	7,478	8,257
Inventories	7,174	8,412
Prepaid expenses and other current assets	2,198	2,297
Total current assets	71,962	77,943
Property and equipment, net	8,653	8,708
Long-term investments	11,148	21,740
Goodwill	8,030
Intangibles, net	3,651	393
Other assets	3,086	105
Total assets	106,530	108,889
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	2,514	2,961
Accrued expenses and other liabilities	4,398	5,937
Deferred revenue	2,330	2,815
Total current liabilities	9,242	11,713
Income taxes payable	116	780
Long term deferred income taxes	811
Other accrued expenses	6,492
Total liabilities	16,661	12,493
Commitments and contingencies (Note 7)
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: 21,716,364 and 23,128,372 shares, respectively	22	23
Additional paid-in capital	25,050	29,407
Accumulated other comprehensive income	27	26
Retained earnings	64,770	66,940
Total stockholders' equity	89,869	96,396
Total liabilities and stockholders' equity	$ 106,530	$ 108,889

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Income Statement
Net revenues	$ 52,736	$ 53,498	$ 58,579
Cost of revenues	25,999	28,375	32,469
Gross profit	26,737	25,123	26,110
Operating expenses:
Research and development	12,095	11,917	13,110
Selling, general and administrative	17,663	19,247	18,814
Total operating expenses	29,758	31,164	31,924
Loss from operations	(3,021)	(6,041)	(5,814)
Interest income, net	307	324	387
Other income (expense), net	(97)	64	(49)
Loss before income taxes	(2,811)	(5,653)	(5,476)
Provision (benefit) for income taxes	(641)	(675)	713
Net loss	$ (2,170)	$ (4,978)	$ (6,189)
Net loss per share:
Basic	$ (0.10)	$ (0.20)	$ (0.23)
Diluted	$ (0.10)	$ (0.20)	$ (0.23)
Weighted average shares used in per share calculations:
Basic	22,593	25,029	27,505
Diluted	22,593	25,029	27,505

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Retained Earnings	Total
Beginning Balance - Shares at Mar. 31, 2013	27,065,209
Beginning Balance - Amount at Mar. 31, 2013	$ 27	$ 54,004	$ 45	$ 78,107	$ 132,183
Issuance of common stock under employee stock option plans, Shares	932,800
Issuance of common stock under employee stock option plans, Amount	$ 1	3,080			3,081
Repurchase and retirement of common stock, shares	(436,527)
Repurchase and retirement of common stock, amount		(2,880)			(2,880)
Stock-based compensation expense		2,228			2,228
Windfall tax benefits recognized		(33)			(33)
Comprehensive loss:
Net loss				(6,189)	(6,189)
Net unrealized gain (loss) on available-for-sale investments			(12)		(12)
Total comprehensive loss					(6,201)
Ending Balance, Shares at Mar. 31, 2014	27,561,482
Ending Balance, Amount at Mar. 31, 2014	$ 28	56,399	33	71,918	128,378
Issuance of common stock under employee stock option plans, Shares	228,665
Issuance of common stock under employee stock option plans, Amount		952			952
Repurchase and retirement of common stock, shares	(4,661,775)
Repurchase and retirement of common stock, amount	$ (5)	(30,021)			(30,026)
Stock-based compensation expense		2,077			2,077
Comprehensive loss:
Net loss				(4,978)	(4,978)
Net unrealized gain (loss) on available-for-sale investments			(7)		(7)
Total comprehensive loss					(4,985)
Ending Balance, Shares at Mar. 31, 2015	23,128,372
Ending Balance, Amount at Mar. 31, 2015	$ 23	29,407	26	66,940	96,396
Issuance of common stock under employee stock option plans, Shares	199,961
Issuance of common stock under employee stock option plans, Amount		818			818
Repurchase and retirement of common stock, shares	(1,611,969)
Repurchase and retirement of common stock, amount	$ (1)	(7,025)			(7,026)
Stock-based compensation expense		1,850			1,850
Comprehensive loss:
Net loss				(2,170)	(2,170)
Net unrealized gain (loss) on available-for-sale investments			1		1
Total comprehensive loss					(2,169)
Ending Balance, Shares at Mar. 31, 2016	21,716,364
Ending Balance, Amount at Mar. 31, 2016	$ 22	$ 25,050	$ 27	$ 64,770	$ 89,869

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net loss	$ (2,170)	$ (4,978)	$ (6,189)
Adjustments to reconcile net loss to net cash provided by operating activities:
Allowance for sales returns, doubtful accounts and other	(3)	(8)	(5)
Provision for excess and obsolete inventories	1,172	1,067	2,079
Depreciation and amortization	1,459	1,633	1,981
Stock-based compensation	1,850	2,077	2,228
Deferred income taxes			1,224
Windfall tax benefits from stock options exercised			33
Amortization of bond premium on investment	209	593	842
Changes in assets and liabilities, net of impact of acquisition:
Accounts receivable	782	(11)	2,008
Inventory	66	(1,294)	3,545
Prepaid expenses and other assets	102	2,854	1,046
Accounts payable	(441)	(1,915)	1,066
Accrued expenses and other liabilities	(2,081)	811	(857)
Deferred revenue	(485)	292	(554)
Net cash provided by operating activities	460	1,121	8,447
Cash flows from investing activities:
Purchase of investments	(14,149)	(16,009)	(35,866)
Sales and maturities of investments	23,585	39,699	28,412
Acquisition	(4,359)
Restricted cash	(2,984)
Purchases of property and equipment	(1,158)	(481)	(761)
Net cash provided by (used in) investing activities	935	23,209	(8,215)
Cash flows from financing activities:
Repurchase of common stock	(7,026)	(30,026)	(2,880)
Windfall tax benefits from stock options exercised			(33)
Proceeds from issuance of common stock under employee stock plans	818	952	3,081
Net cash provided by (used in) financing activities	(6,208)	(29,074)	168
Net increase (decrease) in cash and cash equivalents	(4,813)	(4,744)	400
Cash and cash equivalents at beginning of the year	36,776	41,520	41,120
Cash and cash equivalents at end of the period	31,963	36,776	41,520
Non-cash financing activities:
Purchases of property and equipment through accounts payable and accruals		6
Supplemental cash flow information:
Net cash paid (received) for income taxes	$ 78	$ (2,394)	$ 2

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Mar. 31, 2016

Company And Summary Of Significant Accounting Policies Details

NOTE 1-THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1—THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company

GSI Technology, Inc. (the "Company") was incorporated in California in March 1995 and reincorporated in Delaware on June 9, 2004. The Company is a provider of "Very Fast" SRAM products and LLDRAM products that are incorporated primarily in high-performance networking and telecommunications equipment, such as routers, switches, wide area network infrastructure equipment, wireless base stations and network access equipment. In addition, the Company serves the ongoing needs of the military, industrial, test equipment and medical markets for high-performance SRAMs.

Accounting principles

The consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").

Basis of consolidation

The consolidated financial statements include the accounts of the Company's four wholly-owned subsidiaries, GSI Technology Holdings, Inc., GSI Technology (BVI), Inc., GSI Technology Israel Ltd. and GSI Technology Taiwan, Inc. All significant inter-company transactions and balances have been eliminated in consolidation.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates are inherent in the preparation of the consolidated financial statements and include revenue recognition, obsolete and excess inventory, the valuation allowance on deferred tax assets, the valuation of equity instruments and stock-based compensation. Actual results could differ from those estimates.

Risk and uncertainties

The Company buys all of its SRAM and LLDRAM wafers, integral components of its products, from single suppliers and is also dependent on independent suppliers to assemble and test its products. During the years ended March 31, 2016, 2015 and 2014, all of the wafers used in the Company's SRAM and LLDRAM products were supplied by Taiwan Semiconductor Manufacturing Company Limited, or TSMC, and Powerchip Technology Corporation, or Powerchip, respectively. If these suppliers fail to satisfy the Company's requirements on a timely basis at competitive prices, the Company could suffer manufacturing delays, a possible loss of revenues, or higher cost of revenues, any of which could adversely affect operating results.

A majority of the Company's net revenues come from sales to customers in the networking and telecommunications equipment industry. A decline in demand in this industry could have a material adverse affect on the Company's operating results and financial condition.

Because much of the manufacturing and testing of the Company's products is conducted in Taiwan, its business performance may be affected by changes in Taiwan's political, social and economic environment. For example, any political instability resulting from the relationship among the United States, Taiwan and the People's Republic of China could damage the Company's business. Moreover, the role of the Taiwanese government in the Taiwanese economy is significant. Taiwanese policies toward economic liberalization, and laws and policies affecting technology companies, foreign investment, currency exchange rates, taxes and other matters could change, resulting in greater restrictions on the Company's and its suppliers' ability to do business and operate facilities in Taiwan. If any of these risks were to occur, the Company's business could be harmed.

Some of the Company's suppliers and the Company's two principal operations are located near fault lines. In the event of a major earthquake or other natural disaster near the facilities of any of these suppliers or the Company, the Company's business could be harmed.

From time to time, the Company is involved in legal actions. See Note 7 for information regarding litigation that was resolved during the year ended March 31, 2016. There are many uncertainties associated with any litigation, and the Company may not prevail. If information becomes available that causes us to determine that a loss in any of our pending litigation, or the settlement of such litigation, is probable, and we can reasonably estimate the loss associated with such events, we will record the loss in accordance with GAAP. However, the actual liability in any such litigation may be materially different from our estimates, which could require us to record additional costs.

Revenue recognition

The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability of the resulting receivable is reasonably assured. Under these criteria, revenue from the sale of products is generally recognized upon shipment according to the Company's shipping terms, net of accruals for estimated sales returns and allowances based on historical experience. Sales to distributors are made under agreements allowing for returns or credits. Distributors have stock rotation, price protection and ship from stock pricing adjustment rights and the Company therefore defers recognition of revenue on sales to distributors until products are resold by the distributor. In light of possible changes to sales prices resulting from price protection and price adjustment rights granted, sales prices to the distributor are not fixed or determinable until the final sale to the end user. For sales to consignment warehouses, who purchase products from the Company for use by contract manufacturers, revenues are recognized upon delivery to the contract manufacturer.

Cash and cash equivalents

Cash and cash equivalents include cash in demand accounts and highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase, stated at cost, which approximates their fair value.

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" on the Consolidated Balance Sheets. The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when the declines in fair value are determined to be other-than-temporary.

Concentration of credit risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash, cash equivalents, short-term and long-term investments and accounts receivable. The Company places its cash primarily in checking, certificate of deposit, and money market accounts with reputable financial institutions. The Company's accounts receivable are derived primarily from revenue earned from customers located in the U.S. and Asia. The Company performs ongoing credit evaluations of its customers' financial condition and, generally, requires no collateral from its customers. The Company maintains an allowance for doubtful accounts receivable based upon the expected collectability of accounts receivable. There were no write offs of accounts receivable in the years ended March 31, 2016, 2015 or 2014.

At March 31, 2016, four customers accounted for 26%, 25%, 13%, and 11% of accounts receivable, and for the year then ended, four customers accounted for 28%, 16%, 14% and 13% of net revenues. At March 31, 2015, four customers accounted for 25%, 20%, 16%, and 13% of accounts receivable, and for the year then ended, three customers accounted for 35%, 13% and 12% of net revenues. At March 31, 2014, four customers accounted for 20%, 16%, 14%, and 12% of accounts receivable, and for the year then ended, four customers accounted for 30%, 14%, 12% and 10% of net revenues.

Inventories

Inventories are stated at the lower of cost or market value, cost being determined on a weighted average basis. Inventory write-down allowances are established when conditions indicate that the selling price could be less than cost due to physical deterioration, obsolescence, changes in price levels, or other causes. These allowances, once recorded, result in a new cost basis for the related inventory. These allowances are also considered for excess inventory generally based on inventory levels in excess of 12 months of forecasted demand, as estimated by management, for each specific product. The allowance is not reversed until the inventory is sold or disposed of.

The Company recorded write-downs of excess and obsolete inventories of $1.2 million, $1.1 million and $2.1 million, respectively, in fiscal 2016, 2015 and 2014.

Property and equipment, net

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as presented below:


Software		3 to 5 years
Computer and other equipment		5 to 10 years
Building and building improvements		10 to 25 years
Furniture and fixtures		7 years

Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the assets or the remaining lease term of the respective assets. Gains or losses on disposals of property and equipment are recorded within income from operations. Costs of repairs and maintenance are typically included as part of operating expenses unless they are incurred in relation to major improvements to existing property and equipment, at which time they are capitalized.

Impairment of long-lived assets

Long-lived assets held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable. If the sum of the expected future cash flows (undiscounted and before interest) from the use of the assets is less than the net book value of the asset an impairment could exist and the amount of the impairment loss, if any, will generally be measured as the difference between net book value of the assets and their estimated fair values. There were no impairment losses recognized during the years ended March 31, 2016, 2015 or 2014.

Goodwill and intangible assets

Goodwill is not amortized but is tested for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable.

The Company assesses goodwill for impairment on an annual basis on the last day of February in the fourth quarter of its fiscal year and if certain events or circumstances indicate that an impairment loss may have been incurred, on an interim basis. The Company has one reporting unit. In accordance with ASU 2011-08, Testing Goodwill for Impairment, qualitative factors can be assessed to determine whether it is necessary to perform the current two-step test for goodwill impairment. If an entity believes, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required.

Intangible assets with finite useful lives are amortized over their estimated useful lives, generally on a straight-line basis over five to fifteen years. The Company reviews identifiable amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value.

Research and development

Research and development expenses are related to new product designs, including, salaries, stock-based compensation, contractor fees, and allocation of corporate costs and are charged to the statement of operations as incurred.

Income taxes

The Company accounts for income taxes under the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when it is more likely than not that the deferred tax asset will not be realized. Because the Company recorded a cumulative three-year loss on a U.S. tax basis for the period ended March 31, 2016, the Company has recorded a tax provision reflecting a full valuation allowance of its $6.4 million and $6.0 million of net deferred tax assets at March 31, 2016 and 2015, respectively.

Authoritative guidance prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return (including a decision whether to file or not to file a return in a particular jurisdiction). Under the guidance, the financial statements will reflect expected future tax consequences of such positions presuming the taxing authorities' full knowledge of the position and all relevant facts, but without considering time values. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation process, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement.

Shipping and handling costs

The Company records costs related to shipping and handling in cost of revenues.

Advertising expense

Advertising costs are charged to expense in the period incurred. Advertising expense was $4,000, $5,000 and $7,000 for the years ended March 31, 2016, 2015, and 2014, respectively.

Foreign currency transactions

The U.S. dollar is the functional currency for all of the Company's foreign operations. Foreign currency transaction gains and losses, resulting from transactions denominated in currencies other than U.S. dollars are included in the Consolidated Statements of Operations. These gains and losses were not material for the years ended March 31, 2016, 2015 or 2014.

Segments

The Company operates as one segment for the design, development and sale of integrated circuits.

Accounting for stock-based compensation

Stock-based compensation expense recognized in the Consolidated Statement of Operations is based on options ultimately expected to vest, reduced by the amount of estimated forfeitures. The Company chose the straight-line method of allocating compensation cost over the requisite service period of the related award according to authoritative guidance. The Company calculated the expected term based on the historical average period of time that options were outstanding as adjusted for expected changes in future exercise patterns, which, for options granted in fiscal 2016, 2015 and 2014 resulted in an expected term of approximately five years. The Company used historical volatility to estimate expected volatility in fiscal 2016, 2015 and 2014. The risk-free interest rate is based on the U.S. Treasury yields in effect at the time of grant for periods corresponding to the expected life of the options. The dividend yield is 0%, based on the fact that the Company has never paid dividends and has no present intention to pay dividends. Changes to these assumptions may have a significant impact on the results of operations.

Authoritative guidance requires cash flows, if any, resulting from the tax benefits from tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) to be classified as financing cash flows.

Comprehensive loss

Comprehensive income (loss) is defined to include all changes in stockholders’ equity during a period except those resulting from investments by owners and distributions to owners. For the years ended March 31, 2016, 2015 and 2014, comprehensive loss was $2,169,000, $4,985,000 and $6,201,000, respectively.

Business combinations

The Company allocates the fair value of the purchase consideration of its acquisitions to the tangible assets, liabilities, and intangible assets acquired, based on their estimated fair values. Goodwill represents the excess of acquisition cost over the fair value of tangible and identified intangible net assets of businesses acquired. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of the acquired company are reflected in the Company’s consolidated financial statements after the closing date of the business combination. See Note 11 for additional information related to the acquisition of MikaMonu Group Ltd.

Recent accounting pronouncements

In March 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update for the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This accounting standard update will be effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, and early adoption is permitted. The Company is currently evaluating the methods and impact of adopting the new accounting standard on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. All leases create an asset and a liability for the lessee in accordance with FASB Concepts Statement No. 6, Elements of Financial Statements, and, therefore, recognition of those lease assets and lease liabilities represents a change of previous GAAP, which did not require lease assets and lease liabilities to be recognized for most leases. This ASU is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous GAAP. The Company is currently evaluating the impact the pronouncement will have on its consolidated financial statements and related disclosures.

In January 2016, the FASB issued an accounting standard update which requires equity investments to be measured at fair value with changes in fair value recognized in net income and simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. The accounting standard update also updates certain presentation and disclosure requirements. This accounting standard update will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements.

In November 2015, the 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. Implementation of this guidance in the quarter ended March 31, 2016 did not have a material impact on the Company’s 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. In March, April and May 2016, the FASB issued additional updates to the new revenue standard relating to reporting revenue on a gross versus net basis, identifying performance obligations and licensing arrangements, and narrow-scope improvements and practical expedients, respectively. The Company is in the process of assessing the impact this additional guidance is expected to have upon adoption, including determining the adoption method.

3. BALANCE SHEET DETAIL

12 Months Ended

Mar. 31, 2016

Balance Sheet Detail

NOTE 3 - BALANCE SHEET DETAIL

NOTE 3—BALANCE SHEET DETAIL



	March 31,
	2016		2015
	(In thousands)
Inventories:
Work-in-progress	$	1,697	$	2,422
Finished goods		5,011		5,362
Inventory at distributors		466		628
	$	7,174	$	8,412



	March 31,
	2016		2015
	(In thousands)
Accounts receivable, net:
Accounts receivable	$	7,578	$	8,360
Less: Allowances for sales returns, doubtful accounts and other		(100)		(103)
	$	7,478	$	8,257



	March 31,
	2016		2015
	(In thousands)
Prepaid expenses and other current assets:
Prepaid tooling and masks	$	1,224	$	1,208
Prepaid income taxes		-		139
Other receivables		230		350
Other prepaid expenses		744		600
	$	2,198	$	2,297



	March 31,
	2016		2015
	(In thousands)
Property and equipment, net:
Computer and other equipment	$	18,394	$	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		687		791
		30,144		29,113
Less: Accumulated depreciation and amortization		(21,491)		(20,405)
	$	8,653	$	8,708

Depreciation and amortization expense was $1,459,000, $1,633,000 and $1,981,000 for the years ended March 31, 2016, 2015 and 2014, respectively.



	March 31,
	2016		2015
	(In thousands)
Other assets:
Non-current deferred income taxes	$	-	$	27
Deposits		3,086		78
	$	3,086	$	105

The following table summarizes the components of intangible assets and related accumulated amortization balances at March 31, 2016 and 2015, respectively (in thousands):



				As of March 31, 2016
		Gross
	Carrying		Accumulated		Net Carrying
	Amount		Amortization		Amount
Intangible assets:
Product designs	$	590	$	(555)	$	35
Patents		4,220		(604)		3,616
Software		80		(80)		-
Total	$	4,890	$	(1,239)	$	3,651


				As of March 31, 2015
		Gross
	Carrying		Accumulated		Net Carrying
	Amount		Amortization		Amount
Intangible assets:
Product designs	$	590	$	(470)	$	120
Patents		720		(447)		273
Software		80		(80)		-
Total	$	1,390	$	(997)	$	393

Amortization of intangible assets of $242,000 and 171,000 was included in cost of revenues for the years ended March 31, 2016 and 2015, respectively.

As of March 31, 2016, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands):



Year Ending March 31,
2017	$	349
2018		313
2019		267
2020		233
2021		233
Thereafter		2,256
Total	$	3,651



	March 31,
	2016		2015
	(In thousands)
Accrued expenses and other liabilities:
Accrued compensation	$	3,082	$	3,386
Accrued professional fees		83		1,380
Accrued commissions		284		268
Accrued royalties		21		26
Other accrued expenses		928		877
	$	4,398	$	5,937


	March 31,
	2016		2015
	(In thousands)
Other accrued expenses:
Contingent consideration	$	5,856	$	-
Escrow indemnity accrual		484		-
Other long-term accrued liabilities		152		-
	$	6,492	$	-

5. INCOME TAXES

12 Months Ended

Mar. 31, 2016

Income Taxes

NOTE 5-INCOME TAXES

NOTE 5—INCOME TAXES

Loss before income taxes and income tax expense consists of the following:



	Year Ended March 31,
	2016		2015		2014
	(In thousands)
Loss before income taxes:
U.S.	$	(3,426)	$	(6,910)	$	(6,388)
Foreign		615		1,257		912
	$	(2,811)	$	(5,653)	$	(5,476)
Current income tax expense (benefit):
U.S. federal	$	(354)	$	(619)	$	(1,782)
Foreign		15		(2)		113
State		(289)		(54)		(82)
		(628)		(675)		(1,751)
Deferred income tax expense (benefit):
U.S. federal		(3)		-		1,892
Foreign		(10)		-		-
State		-		-		572
		(13)		-		2,464
Provision (benefit) for income tax	$	(641)	$	(675)	$	713

Income tax expense differs from the amount of income tax determined by applying the applicable U.S. statutory income tax rate to pre-tax income as follows:



	Year Ended March 31,
	2016		2015		2014
	(In thousands)
U.S. Federal taxes at statutory rate	$	(956)	$	(1,922)	$	(1,862)
State taxes, net of federal benefit		(204)		(39)		490
Stock-based compensation		470		447		392
Tax credits		(539)		(472)		(338)
Foreign tax rate differential		(368)		(916)		(650)
Tax exempt interest		(9)		(20)		(29)
Other		6		(35)		(72)
		(1,600)		(2,957)		(2,069)
Valuation allowance		959		2,282		2,782
	$	(641)	$	(675)	$	713

Deferred tax assets and deferred tax liabilities consist of the following:



	March 31,
	2016		2015
	(In thousands)
Deferred tax assets:
Deferred revenue	$	231	$	110
Tax credits		2,706		1,766
Net operating losses		1,356		1,165
Stock-based compensation		1,550		1,387
Property and equipment		297		193
Other reserves and accruals		1,175		1,407
Total deferred tax assets	$	7,315	$	6,028
Deferred tax liabilities:
Intangible assets	$	(856)	$	-
Unrecognized gains		(14)		(11)
Total deferred tax liabilities	$	(870)	$	(11)

Net deferred tax assets	$	6,445	$	6,017
Valuation allowance		(7,256)		(6,017)
Net deferred tax liability	$	(811)	$	-

U.S. income taxes and withholding taxes have not been provided on a cumulative total of $40.1 million of undistributed earnings for certain non-U.S. subsidiaries. The Company currently intends to indefinitely reinvest these earnings in operations outside the United States. No provision has been made for taxes that might be payable upon remittance of such earnings, nor is it practicable to determine the amount of such potential liability.

The long-term portion of the Company's unrecognized tax benefits at March 31, 2016 and 2015 was $116,000 and $780,000, respectively, of which the timing of the resolution is uncertain. As of March 31, 2016, $1,943,000 of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets. As of March 31, 2016, the Company’s net deferred tax assets of $6.4 million are subject to a full valuation allowance. It is possible, however, that some months or years may elapse before an uncertain position for which the Company has established a reserve is resolved. A reconciliation of unrecognized tax benefits is as follows:



	Year Ended March 31,
	2016		2015		2014
	(In thousands)
Unrecognized tax benefits, beginning of period	$	1,982	$	2,386	$	2,760
Additions based on tax positions related to current year		453		292		250
Additions based on tax positions related to prior years		183		-		13
Settlements during the current year		-		-		-
Lapses during the current year applicable to statutes of limitations		(563)		(696)		(637)
Unrecognized tax benefits, end of period	$	2,055	$	1,982	$	2,386

The unrecognized tax benefit balance as of March 31, 2016 of $112,000 would affect the Company's effective tax rate if recognized.

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 $16,000, including interest and penalties, as a result of the lapse of statute of limitations.

The Company's policy is to include interest and penalties related to unrecognized tax benefits within the provision for income taxes in the Consolidated Statements of Operations.

The Company is subject to taxation in the United States and various state and foreign jurisdictions. As of March 31, 2016, the Company maintained a full valuation allowance of $7.3 million for deferred tax assets that are not expected to be utilized in future years. Fiscal years 2013 through 2016 remain open to examination by the federal tax authorities and fiscal years 2011 through 2016 remain open to examination by California.

6. FINANCIAL INSTRUMENTS

12 Months Ended

Mar. 31, 2016

Financial Instruments.

NOTE 6-FINANCIAL INSTRUMENTS

NOTE 6—FINANCIAL INSTRUMENTS

Fair value measurements

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

Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities. The fair value of available-for-sale securities included in the Level 1 category is based on quoted prices that are readily and regularly available in an active market. As of March 31, 2016, the Level 1 category included money market funds of $6.6 million, which were included in cash and cash equivalents on the 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 March 31, 2016, the Level 2 category included short-term investments of $23.2 million and long term-investments of $11.1 million, which were primarily 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 March 31, 2016, the Company’s Level 3 financial instruments measured at fair value on the Consolidated Balance Sheets consisted of the contingent consideration liability related to the MikaMonu acquisition. Refer to Note 11, “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
	March 31, 2016		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds	$	6,611	$	6,611		—	$	—
Marketable securities		34,297		—		34,297		—
Total	$	40,908	$	6,611	$	34,297	$	—


			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 on the Consolidated Balance Sheets. The Company had money market funds of $6.6 million and $4.4 million at March 31, 2016 and March 31, 2015, respectively, included in cash and cash equivalents on the Consolidated Balance Sheets. The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when the declines are determined to be other-than-temporary.

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



	March 31, 2016
			Gross		Gross
			Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
Short-term investments:
State and municipal obligations	$	1,011	$	-	$	-	$	1,011
Corporate notes		5,680		-		(3)		5,677
Agency bonds		2,001		1		-		2,002
Foreign government obligations		2,695		3		-		2,698
Certificates of deposit		11,750		12		-		11,762
Total short-term investments	$	23,137	$	16	$	(3)	$	23,150
Long-term investments:
Corporate notes	$	558	$	1	$	-	$	559
Certificates of deposit		8,500		24		(1)		8,523
Agency bonds		1,000		4		-		1,004
Foreign government obligations		1,060		1		-		1,061
Total long-term investments	$	11,118	$	30	$	(1)	$	11,147



	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
Other		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 losses 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.

At March 31, 2016, the deferred tax liability related to unrecognized gains and losses on short-term and long-term investments was $14,000. At March 31, 2015, the deferred tax liability related to unrecognized gains and losses on short-term and long-term investments was $11,000.

As of March 31, 2016, contractual maturities of the Company's available-for-sale non-equity investments were as follows:



			Fair
	Cost		Value
	(In thousands)
Maturing within one year	$	23,137	$	23,150
Maturing in one to three years		11,118		11,147
Maturing in more than three years		-		-
	$	34,255	$	34,297

7. COMMITMENTS AND CONTINGENCIES

12 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure

NOTE 7-COMMITMENTS AND CONTINGENCIES

NOTE 7—COMMITMENTS AND CONTINGENCIES

Operating leases

The Company leases office space and equipment under noncancelable operating leases with various expiration dates through February 2018. Rent expense for the years ended March 31, 2016, 2015 and 2014 was $348,000, $354,000 and $368,000, respectively. The terms of the facility leases provide for rental payments on a graduated scale. The Company recognizes rent expense on a straight-line basis over the lease period, and has accrued for rent expense incurred but not paid.

Future minimum lease payments under noncancelable operating leases with remaining lease terms in excess of one year at March 31, 2016 are as follows:



	Operating
	Leases
		(In thousands)
Fiscal Year Ending March 31,

2017	$	304
2018		143
2019		-
2020		-
2021		-
Thereafter		-
Total	$	447

Royalty obligations

The Company has license agreements that require it to pay royalties on the sale of products using the licensed technology. Royalty expense for the years ended March 31, 2016, 2015 and 2014 was $44,000, $53,000 and $59,000, respectively, and was included within cost of revenues.

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 customarily 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, payment by the Company is 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 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. The Company believes that if it were to incur a loss in any of these matters, such loss should not have a material effect on its business, financial condition, cash flows or results of operations.

Product warranties

The Company warrants its products to be free of defects generally for a period of three years. The Company estimates its warranty costs based on historical warranty claim experience and includes such costs in cost of revenues. Warranty costs were not significant for the years ended March 31, 2016, 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 the Company’s 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 the Northern District of California and consolidated with the pending 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 2014, fiscal 2015 or fiscal 2016 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.

9. STOCK- BASED COMPENSATION

12 Months Ended

Mar. 31, 2016

Stock-Based Compensation

NOTE 9-STOCK- BASED COMPENSATION

NOTE 9—STOCK- BASED COMPENSATION

The 2000 Stock Option Plan

In February 2001, the Company adopted the 2000 Stock Option Plan (the "2000 Plan"). The 2000 Plan provided for the granting of stock options and stock purchase rights to employees, consultants and directors of the Company. Options granted under the 2000 Plan could be either incentive stock options ("ISOs") or nonstatutory stock options ("NSOs"). In December 2006, the Company's board of directors authorized an additional 500,000 shares of the Company's common stock to be reserved for issuance under the 2000 Plan. As of March 31, 2008, the Company had reserved 3,500,000 shares of common stock for issuance under the 2000 Plan.

Options under the 2000 Plan could be granted for periods of up to ten years. However, in the case of ISOs granted to an optionee who, at the time the option was granted, owned stock representing more than 10% of the voting power of all classes of stock of the Company, the maximum term of an option was five years from the date of grant. The exercise price of an ISO or NSO could not be less than 100% and 85% of the estimated fair value of the shares as determined by the board of directors on the date of grant, respectively. However the exercise price of an ISO or NSO granted to a 10% or greater stockholder could not be less than 110% of the estimated fair value of the shares on the date of grant.

The 2007 Equity Incentive Plan

In January 2007, the Company's board of directors approved the 2007 Equity Incentive Plan, (the "Equity Plan"), which was subsequently approved by the Company's stockholders in March 2007. A total of 3,000,000 shares of common stock were authorized and reserved for issuance under the Equity Plan. This reserve automatically increases on April 1 of each year through 2017 by an amount equal to the smaller of (a) five percent of the number of shares of common stock issued and outstanding on the immediately preceding March 31, or (b) a lesser amount determined by the board of directors. Appropriate adjustments will be made in the number of authorized shares and other numerical limits in the Equity Plan and in outstanding awards to prevent dilution or enlargement of participants' rights in the event of a stock split or other change in the Company's capital structure. Shares subject to awards which expire or are cancelled or forfeited will again become available for issuance under the Equity Plan. The shares available will not be reduced by awards settled in cash or by shares withheld to satisfy tax withholding obligations. Only the net number of shares issued upon the exercise of stock appreciation rights or options exercised by means of a net exercise or by tender of previously owned shares will be deducted from the shares available under the Equity Plan.

To enable compensation provided in connection with certain types of awards intended to qualify as “performance-based” within the meaning of Section 162(m) of the Internal Revenue Code, the Equity Plan establishes limits on the maximum aggregate number of shares or dollar value for which awards may be granted to an employee in any fiscal year, as follows:

No more than 300,000 shares subject to stock options and stock appreciation rights.

No more than 100,000 shares subject to restricted stock and restricted stock unit awards.

For each full fiscal year of the Company contained in the performance period of the award, no more than 50,000 shares subject to performance share awards and other stock-based awards or more than $500,000 subject to performance unit awards and other cash-based awards.

In addition, to comply with applicable tax rules, the Equity Plan also limits the number of shares that may be issued upon the exercise of ISOs granted under the Equity Plan to 3,000,000, cumulatively increased on April 1 of each subsequent year through 2017, by an amount equal to the smallest of (a) five percent of the number of shares of common stock issued and outstanding on the immediately preceding March 31, (b) 1,500,000 shares, or (c) a lesser amount determined by the board of directors.

Upon the adoption of the Equity Plan in March 2007, the 2000 Plan was terminated, no further options were granted under the 2000 Plan, the 535,597 shares that remained reserved for grant under the 2000 Plan were cancelled, and all subsequent grants of stock options were made pursuant to the Equity Plan.

Awards may be granted under the Equity Plan to the Company's employees, including officers, directors, or consultants or those of any present or future parent or subsidiary corporation or other affiliated entity. To date, options granted to non-officer employees generally vest 25% on the first anniversary and subsequent anniversaries of the date of grant, while grants to officers vest in full four years after the anniversary date of the officer's employment that is closest to the date of grant. While the Company may grant ISOs only to employees, the Company may grant NSOs, stock appreciation rights, restricted stock purchase rights or bonuses, restricted stock units, performance shares, performance units and cash-based awards or other stock-based awards to any eligible participant. Non-employee director awards may be granted only to members of the Company's board of directors who, at the time of grant, are not employees. Deferred compensation awards may be granted only to officers, directors and selected members of management or highly compensated employees.

Only members of the board of directors who are not employees at the time of grant are eligible to participate in the nonemployee director awards component of the Equity Plan. The board or the compensation committee shall set the amount and type of nonemployee director awards to be awarded on a periodic, non-discriminatory basis. Nonemployee director awards may be granted in the form of NSOs, stock appreciation rights, restricted stock awards and restricted stock unit awards. Subject to adjustment for changes in the Company's capital structure, no nonemployee director may be awarded, in any fiscal year, one or more nonemployee director awards for more than 2,000 shares. However, the annual limit may be increased by the following additions: (i) an additional 10,000 shares in the fiscal year in which the nonemployee director is first appointed or elected to the board, (ii) an additional 2,000 shares in any fiscal year in which the nonemployee director is serving as the chairman or lead director of the board, (iii) an additional 1,000 shares in any fiscal year for each committee of the board on which the nonemployee director is then serving other than as chairman of the committee, and (iv) an additional 2,000 shares in any fiscal year for each committee of the board on which the nonemployee director is then serving as chairman of the committee.

In the event of a change in control as described in the Equity Plan, the acquiring or successor entity may assume or continue all or any awards outstanding under the Equity Plan or substitute substantially equivalent awards. Any awards which are not assumed or continued in connection with a change in control or exercised or settled prior to the change in control will terminate effective as of the time of the change in control. The administrator may provide for the acceleration of vesting of any or all outstanding awards upon such terms and to such extent as it determines, except that the vesting of all nonemployee director awards will automatically be accelerated in full. The Equity Plan also authorizes the administrator, in its discretion and without the consent of any participant, to cancel each or any outstanding award denominated in shares upon a change in control in exchange for a payment to the participant with respect to each vested share subject to the cancelled award of an amount equal to the excess of the consideration to be paid per share of common stock in the change in control transaction over the exercise price per share, if any, under the award.

The 2007 Employee Stock Purchase Plan

In January 2007, the board of directors approved the 2007 Employee Stock Purchase Plan (the "2007 Purchase Plan") which was subsequently approved by the Company's stockholders in March 2007. A total of 500,000 shares of the Company's common stock was authorized and reserved for sale under the 2007 Purchase Plan. In addition, the 2007 Purchase Plan provides for an automatic annual increase in the number of shares available for issuance under the plan on April 1 of each year beginning in 2008 and continuing through and including April 1, 2017 equal to the lesser of (1) one percent of the number of issued and outstanding shares of common stock on the immediately preceding March 31, (2) 250,000 shares or (3) a number of shares as the board of directors may determine. Appropriate adjustments will be made in the number of authorized shares and in outstanding purchase rights to prevent dilution or enlargement of participants' rights in the event of a stock split or other change in our capital structure. Shares subject to purchase rights which expire or are canceled will again become available for issuance under the 2007 Purchase Plan.

The Company's employees and employees of any parent or subsidiary corporation designated by the administrator will be eligible to participate in the 2007 Purchase Plan if they are customarily employed by us for more than 20 hours per week and more than five months in any calendar year. However, an employee may not be granted a right to purchase stock under the 2007 Purchase Plan if: (1) the employee immediately after such grant would own stock possessing 5% or more of the total combined voting power or value of all classes of our capital stock or of any parent or subsidiary corporation, or (2) the employee's rights to purchase stock under all of our employee stock purchase plans would accrue at a rate that exceeds $25,000 in value for each calendar year of participation in such plans.

The 2007 Purchase Plan is designed to be implemented through a series of sequential offering periods, generally six (6) months in duration beginning on the first trading day on or after May 1 and November 1 of each year. The administrator is authorized to establish additional or alternative sequential or overlapping offering periods and offering periods having a different duration or different starting or ending dates, provided that no offering period may have a duration exceeding 27 months.

Amounts accumulated for each participant under the 2007 Purchase Plan are used to purchase shares of the Company's common stock at the end of each offering period at a price generally equal to 85% of the lower of the fair market value of our common stock at the beginning of an offering period or at the end of the offering period. Prior to commencement of an offering period, the administrator is authorized to reduce, but not increase, this purchase price discount for that offering period, or, under circumstances described in the 2007 Purchase Plan, during that offering period. The maximum number of shares a participant may purchase in any six-month offering period is the lesser of (i) that number of shares determined by multiplying (x) 1,000 shares by (y) the number of months (rounded to the nearest whole month) in the offering period and rounding to the nearest whole share or (ii) that number of whole shares determined by dividing (x) the product of $2,083.33 and the number of months (rounded to the nearest whole month) in the offering period and rounding to the nearest whole dollar by (y) the fair market value of a share of our common stock at the beginning of the offering period. Prior to the beginning of any offering period, the administrator may alter the maximum number of shares that may be purchased by any participant during the offering period or specify a maximum aggregate number of shares that may be purchased by all participants in the offering period. If insufficient shares remain available under the plan to permit all participants to purchase the number of shares to which they would otherwise be entitled, the administrator will make a pro rata allocation of the available shares. Any amounts withheld from participants' compensation in excess of the amounts used to purchase shares will be refunded, without interest.

In the event of a change in control, an acquiring or successor corporation may assume our rights and obligations under the 2007 Purchase Plan. If the acquiring or successor corporation does not assume such rights and obligations, then the purchase date of the offering periods then in progress will be accelerated to a date prior to the change in control.

The following table summarizes 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, 2013	4,867,458	6,336,319			4.46
Options reserved	1,353,260	-			-
Granted	(784,303)	784,303			6.45
Exercised	-	(816,957)			3.10	$	2,629,982
Forfeited	149,085	(159,685)			6.04
Balance at March 31, 2014	5,585,500	6,143,980			5.13
Options reserved	1,377,699	-			-
Granted	(791,903)	791,903			5.20
Exercised	-	(119,085)			3.88		262,253
Forfeited	42,647	(42,647)			5.49
Balance at March 31, 2015	6,213,943	6,774,151			5.16
Options reserved	1,156,419	-			-
Granted	(969,913)	969,913			4.42
Exercised	-	(76,745)			4.19		46,977
Forfeited	31,614	(41,614)			4.82
Balance at March 31, 2016	6,432,063	7,625,705		$	5.08
Options vested and exercisable		5,246,088	3.70	$	5.02	$	939,846
Options vested and expected to vest		7,574,414	5.14	$	5.08	$	1,150,077

The options outstanding and by exercise price at March 31, 2016 are 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	-	3.40	895,204	$	3.17	5.06	586,394	$	3.05
$	3.43	-	4.00	1,118,969	$	3.81	3.10	1,118,969	$	3.81
$	4.17	-	4.81	935,478	$	4.41	5.75	670,261	$	4.33
$	4.90	-	4.98	793,963	$	4.95	7.92	298,150	$	4.91
$	5.13	-	5.34	625,513	$	5.23	8.49	62,626	$	5.22
$	5.50			783,433	$	5.50	0.63	783,433	$	5.50
$	5.59	-	6.00	899,930	$	5.77	5.24	568,526	$	5.80
$	6.28	-	6.63	808,219	$	6.48	6.08	645,440	$	6.47
$	6.82	-	7.00	651,376	$	6.90	5.76	398,669	$	6.92
$	9.20			113,620	$	9.20	4.83	113,620	$	9.20
				7,625,705	$	5.08	5.17	5,246,088	$	5.02

Stock-based compensation

The Company recognized $1,850,000, $2,077,000 and $2,228,000 of stock-based compensation expense for the years ended March 31, 2016, 2015 and 2014, respectively, as follows:



	Year Ended March 31,
	2016		2015		2014
	(In thousands)
Cost of revenues	$	320	$	401	$	386
Research and development		858		941		970
Selling, general and administrative		672		735		872
Total	$	1,850	$	2,077	$	2,228

Stock-based compensation expense in the years ended March 31, 2016, 2015 and 2014 included $136,000, $153,000 and $152,000, respectively, related to the Company's Employee Stock Purchase Plan.

No tax benefit was recognized in either fiscal 2016 or fiscal 2015 due to a full valuation allowance. There were no windfall tax benefits realized from exercised stock options recognized in fiscal 2016 or fiscal 2015. The reversal of previously recognized windfall tax benefits realized from exercised stock options was $33,000 in fiscal 2014. Compensation cost capitalized within inventory at March 31, 2016 was not material. As of March 31, 2016, the Company's total unrecognized compensation cost was $2.9 million, which will be recognized over the weighted average period of 2.13 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:



	Year Ended March 31,
	2016				2015				2014
	(In thousands)
Stock Option Plans:
Risk-free interest rate	1.41	-	1.57	%	1.47	-	1.7	%	0.91	-	1.61	%
Expected life (in years)			5.00				5.00				5.00
Volatility	36.3	-	38.0	%	40.4	-	44.8	%	45.5	-	48.4	%
Dividend yield			-	%			-	%			-	%
Employee Stock Purchase Plan:
Risk-free interest rate	0.09		0.15	%			0.05	%	0.07	-	0.09	%
Expected life (in years)			0.50				0.50				0.50
Volatility	26.3	-	27.9	%	30.8	-	38.0	%	30.4	-	32.8	%
Dividend yield			-	%			-	%			-	%

The weighted average fair value of options granted during the years ended March 31, 2016, 2015 and 2014 was $1.52, $2.08 and $2.73, respectively.

10. SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

Mar. 31, 2016

Segment And Geographic Information

NOTE 10-SEGMENT AND GEOGRAPHIC INFORMATION

NOTE 10—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:



	Year Ended March 31,
	2016		2015		2014
		(In thousands)
United States	$	20,951	$	18,099	$	18,021
China		12,123		15,695		13,294
Malaysia		32		2,720		9,827
Singapore		7,345		6,552		5,979
Rest of the world		12,285		10,432		11,458
	$	52,736	$	53,498	$	58,579

All sales are denominated in United States dollars.

The locations and net book value of long-lived assets are as follows:



	March 31,
	2016		2015
		(In thousands)
United States	$	6,085	$	6,630
Taiwan		2,521		2,078
Israel		47		-
	$	8,653	$	8,708

- 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
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

11. ACQUISITION

12 Months Ended

Mar. 31, 2016

Acquisition

NOTE 11-ACQUISITION

NOTE 11—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 by new products that the Company plans to develop using the MikaMonu patents.

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 results of operations of MikaMonu and the estimated fair value of the assets acquired were included in the Company’s 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 $4.4 million at the closing on November 23, 2015. The Company will make cash payments of up to $484,000 to the three former MikaMonu shareholders in May 2017 upon the release of cash held in escrow for potential indemnification claims. This amount is included in other assets on the Consolidated Balance Sheet at March 31, 2016.

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 March 31, 2016.

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 determined that the fair value of this contingent consideration liability was $5.8 million at the acquisition date.

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 to 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. The amount included in other accrued expenses on the Consolidated Balance Sheet at March 31, 2016 was $5.9 million.

Acquisition-related costs

Acquisition-related costs of approximately $32,000 and $426,000 are included in selling, general and administrative expenses in the Consolidated Statements of Operations for the three months and twelve months ended March 31, 2016, 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. Goodwill represents the excess of the cost of an acquisition over the sum of the amounts assigned to identifiable intangible assets acquired less liabilities assumed. The goodwill resulting from the acquisition is not deductible for tax purposes.

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):


	Year Ended March 31,
	2016		2015

Pro forma net revenues	$	52,736	$	54,134
Pro forma net loss	$	(2,575)	$	(5,810)
Pro forma net loss per share, basic and diluted	$	(0.11)	$	(0.23)

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 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

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+ Details

13. QUARTERLY FINANCIAL DATA

12 Months Ended

Mar. 31, 2016

Quarterly Financial Data

NOTE 13-QUARTERLY FINANCIAL DATA (Unaudited)

NOTE 13 —QUARTERLY FINANCIAL DATA (Unaudited)



	Three Months Ended
	June 30,		September 30,		December 31,		March 31,
	2015		2015		2015		2016
	(In thousands, except per share amounts)
Consolidated Statement of Operations Data:
Net revenues	$	14,025	$	13,577	$	12,921	$	12,213
Gross profit	$	7,295	$	6,917	$	6,386	$	6,139
Net loss	$	(917)	$	(347)	$	(819)	$	(87)
Net loss per common share—Basic	$	(0.04)	$	(0.02)	$	(0.04)	$	-
Net loss per common share—Diluted	$	(0.04)	$	(0.02)	$	(0.04)	$	-



	Three Months Ended
	June 30,		September 30,		December 31,		March 31,
	2014		2014		2014		2015
	(In thousands, except per share amounts)
Consolidated Statement of Operations Data:
Net revenues	$	12,945	$	13,263	$	14,227	$	13,063
Gross profit	$	5,939	$	6,061	$	6,650	$	6,473
Net income (loss)	$	(1,446)	$	(950)	$	148	$	(2,730)
Net income (loss) per common share—Basic	$	(0.05)	$	(0.04)	$	0.01	$	(0.12)
Net income (loss) per common share—Diluted	$	(0.05)	$	(0.04)	$	0.01	$	(0.12)

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Mar. 31, 2016

Company And Summary Of Significant Accounting Policies Details

Accounting principles

The consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP").

Basis of consolidation

Use of estimates

Risk and uncertainties

Revenue recognition

Cash and cash equivalents

Short-term and long-term investments

Concentration of credit risk

Inventories

Excess and Obsolete Inventory Write-Down

The Company recorded write-downs of excess and obsolete inventories of $1.2 million, $1.1 million and $2.1 million, respectively, in fiscal 2016, 2015 and 2014.

Property and equipment, net

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as presented below:


Software		3 to 5 years
Computer and other equipment		5 to 10 years
Building and building improvements		10 to 25 years
Furniture and fixtures		7 years

Impairment of long-lived assets

Goodwill and intangible assets

Goodwill is not amortized but is tested for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable.

Research and development

Income taxes

Shipping and handling costs

The Company records costs related to shipping and handling in cost of revenues.

Advertising expense.

Advertising expense

Advertising costs are charged to expense in the period incurred. Advertising expense was $4,000, $5,000 and $7,000 for the years ended March 31, 2016, 2015, and 2014, respectively.

Foreign currency transactions

Segments

The Company operates as one segment for the design, development and sale of integrated circuits.

Accounting for stock-based compensation

Comprehensive income (loss)

Comprehensive loss

Business combinations

Recent accounting pronouncements

3. BALANCE SHEET DETAIL (Tables)

12 Months Ended

Mar. 31, 2016

Balance Sheet Detail

Schedule of Inventories



	March 31,
	2016		2015
	(In thousands)
Inventories:
Work-in-progress	$	1,697	$	2,422
Finished goods		5,011		5,362
Inventory at distributors		466		628
	$	7,174	$	8,412

Schedule of Accounts Receivable, Net



	March 31,
	2016		2015
	(In thousands)
Accounts receivable, net:
Accounts receivable	$	7,578	$	8,360
Less: Allowances for sales returns, doubtful accounts and other		(100)		(103)
	$	7,478	$	8,257

Schedule of Prepaid Expenses and Other Current Assets



	March 31,
	2016		2015
	(In thousands)
Prepaid expenses and other current assets:
Prepaid tooling and masks	$	1,224	$	1,208
Prepaid income taxes		-		139
Other receivables		230		350
Other prepaid expenses		744		600
	$	2,198	$	2,297

Schedule of Property and Equipment, Net



	March 31,
	2016		2015
	(In thousands)
Property and equipment, net:
Computer and other equipment	$	18,394	$	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		687		791
		30,144		29,113
Less: Accumulated depreciation and amortization		(21,491)		(20,405)
	$	8,653	$	8,708

Schedule of Other Assets



	March 31,
	2016		2015
	(In thousands)
Other assets:
Non-current deferred income taxes	$	-	$	27
Deposits		3,086		78
	$	3,086	$	105

Schedule of Intangible Assets

The following table summarizes the components of intangible assets and related accumulated amortization balances at March 31, 2016 and 2015, respectively (in thousands):



				As of March 31, 2016
		Gross
	Carrying		Accumulated		Net Carrying
	Amount		Amortization		Amount
Intangible assets:
Product designs	$	590	$	(555)	$	35
Patents		4,220		(604)		3,616
Software		80		(80)		-
Total	$	4,890	$	(1,239)	$	3,651


				As of March 31, 2015
		Gross
	Carrying		Accumulated		Net Carrying
	Amount		Amortization		Amount
Intangible assets:
Product designs	$	590	$	(470)	$	120
Patents		720		(447)		273
Software		80		(80)		-
Total	$	1,390	$	(997)	$	393

Estimated future amortization expense of intangible assets



Year Ending March 31,
2017	$	349
2018		313
2019		267
2020		233
2021		233
Thereafter		2,256
Total	$	3,651

Schedule of Accrued Expenses and Other Liabilities



	March 31,
	2016		2015
	(In thousands)
Accrued expenses and other liabilities:
Accrued compensation	$	3,082	$	3,386
Accrued professional fees		83		1,380
Accrued commissions		284		268
Accrued royalties		21		26
Other accrued expenses		928		877
	$	4,398	$	5,937

Other Accrued Expenses


	March 31,
	2016		2015
	(In thousands)
Other accrued expenses:
Contingent consideration	$	5,856	$	-
Escrow indemnity accrual		484		-
Other long-term accrued liabilities		152		-
	$	6,492	$	-

5. INCOME TAXES (Tables)

12 Months Ended

Mar. 31, 2016

Income Taxes

Loss before income taxes and income tax expense



	Year Ended March 31,
	2016		2015		2014
	(In thousands)
Loss before income taxes:
U.S.	$	(3,426)	$	(6,910)	$	(6,388)
Foreign		615		1,257		912
	$	(2,811)	$	(5,653)	$	(5,476)
Current income tax expense (benefit):
U.S. federal	$	(354)	$	(619)	$	(1,782)
Foreign		15		(2)		113
State		(289)		(54)		(82)
		(628)		(675)		(1,751)
Deferred income tax expense (benefit):
U.S. federal		(3)		-		1,892
Foreign		(10)		-		-
State		-		-		572
		(13)		-		2,464
Provision (benefit) for income tax	$	(641)	$	(675)	$	713

Income tax reconciliation



	Year Ended March 31,
	2016		2015		2014
	(In thousands)
U.S. Federal taxes at statutory rate	$	(956)	$	(1,922)	$	(1,862)
State taxes, net of federal benefit		(204)		(39)		490
Stock-based compensation		470		447		392
Tax credits		(539)		(472)		(338)
Foreign tax rate differential		(368)		(916)		(650)
Tax exempt interest		(9)		(20)		(29)
Other		6		(35)		(72)
		(1,600)		(2,957)		(2,069)
Valuation allowance		959		2,282		2,782
	$	(641)	$	(675)	$	713

Deferred tax assets and deferred tax liabilities



	March 31,
	2016		2015
	(In thousands)
Deferred tax assets:
Deferred revenue	$	231	$	110
Tax credits		2,706		1,766
Net operating losses		1,356		1,165
Stock-based compensation		1,550		1,387
Property and equipment		297		193
Other reserves and accruals		1,175		1,407
Total deferred tax assets	$	7,315	$	6,028
Deferred tax liabilities:
Intangible assets	$	(856)	$	-
Unrecognized gains		(14)		(11)
Total deferred tax liabilities	$	(870)	$	(11)

Net deferred tax assets	$	6,445	$	6,017
Valuation allowance		(7,256)		(6,017)
Net deferred tax liability	$	(811)	$	-

Unrecognized tax benefits



	Year Ended March 31,
	2016		2015		2014
	(In thousands)
Unrecognized tax benefits, beginning of period	$	1,982	$	2,386	$	2,760
Additions based on tax positions related to current year		453		292		250
Additions based on tax positions related to prior years		183		-		13
Settlements during the current year		-		-		-
Lapses during the current year applicable to statutes of limitations		(563)		(696)		(637)
Unrecognized tax benefits, end of period	$	2,055	$	1,982	$	2,386

6. FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Mar. 31, 2016

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
	March 31, 2016		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds	$	6,611	$	6,611		—	$	—
Marketable securities		34,297		—		34,297		—
Total	$	40,908	$	6,611	$	34,297	$	—


			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



	March 31, 2016
			Gross		Gross
			Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
Short-term investments:
State and municipal obligations	$	1,011	$	-	$	-	$	1,011
Corporate notes		5,680		-		(3)		5,677
Agency bonds		2,001		1		-		2,002
Foreign government obligations		2,695		3		-		2,698
Certificates of deposit		11,750		12		-		11,762
Total short-term investments	$	23,137	$	16	$	(3)	$	23,150
Long-term investments:
Corporate notes	$	558	$	1	$	-	$	559
Certificates of deposit		8,500		24		(1)		8,523
Agency bonds		1,000		4		-		1,004
Foreign government obligations		1,060		1		-		1,061
Total long-term investments	$	11,118	$	30	$	(1)	$	11,147



	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
Other		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	$	23,137	$	23,150
Maturing in one to three years		11,118		11,147
Maturing in more than three years		-		-
	$	34,255	$	34,297

- 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

9. STOCK- BASED COMPENSATION (Tables)

12 Months Ended

Mar. 31, 2016

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, 2013	4,867,458	6,336,319			4.46
Options reserved	1,353,260	-			-
Granted	(784,303)	784,303			6.45
Exercised	-	(816,957)			3.10	$	2,629,982
Forfeited	149,085	(159,685)			6.04
Balance at March 31, 2014	5,585,500	6,143,980			5.13
Options reserved	1,377,699	-			-
Granted	(791,903)	791,903			5.20
Exercised	-	(119,085)			3.88		262,253
Forfeited	42,647	(42,647)			5.49
Balance at March 31, 2015	6,213,943	6,774,151			5.16
Options reserved	1,156,419	-			-
Granted	(969,913)	969,913			4.42
Exercised	-	(76,745)			4.19		46,977
Forfeited	31,614	(41,614)			4.82
Balance at March 31, 2016	6,432,063	7,625,705		$	5.08
Options vested and exercisable		5,246,088	3.70	$	5.02	$	939,846
Options vested and expected to vest		7,574,414	5.14	$	5.08	$	1,150,077

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	-	3.40	895,204	$	3.17	5.06	586,394	$	3.05
$	3.43	-	4.00	1,118,969	$	3.81	3.10	1,118,969	$	3.81
$	4.17	-	4.81	935,478	$	4.41	5.75	670,261	$	4.33
$	4.90	-	4.98	793,963	$	4.95	7.92	298,150	$	4.91
$	5.13	-	5.34	625,513	$	5.23	8.49	62,626	$	5.22
$	5.50			783,433	$	5.50	0.63	783,433	$	5.50
$	5.59	-	6.00	899,930	$	5.77	5.24	568,526	$	5.80
$	6.28	-	6.63	808,219	$	6.48	6.08	645,440	$	6.47
$	6.82	-	7.00	651,376	$	6.90	5.76	398,669	$	6.92
$	9.20			113,620	$	9.20	4.83	113,620	$	9.20
				7,625,705	$	5.08	5.17	5,246,088	$	5.02

Summary of stock-based compensation expense by line item



	Year Ended March 31,
	2016		2015		2014
	(In thousands)
Cost of revenues	$	320	$	401	$	386
Research and development		858		941		970
Selling, general and administrative		672		735		872
Total	$	1,850	$	2,077	$	2,228

Schedule of weighted average assumptions



	Year Ended March 31,
	2016				2015				2014
	(In thousands)
Stock Option Plans:
Risk-free interest rate	1.41	-	1.57	%	1.47	-	1.7	%	0.91	-	1.61	%
Expected life (in years)			5.00				5.00				5.00
Volatility	36.3	-	38.0	%	40.4	-	44.8	%	45.5	-	48.4	%
Dividend yield			-	%			-	%			-	%
Employee Stock Purchase Plan:
Risk-free interest rate	0.09		0.15	%			0.05	%	0.07	-	0.09	%
Expected life (in years)			0.50				0.50				0.50
Volatility	26.3	-	27.9	%	30.8	-	38.0	%	30.4	-	32.8	%
Dividend yield			-	%			-	%			-	%

13. QUARTERLY FINANCIAL DATA (Tables)

12 Months Ended

Mar. 31, 2016

Quarterly Financial Data

Schedule of quarterly financial data



	Three Months Ended
	June 30,		September 30,		December 31,		March 31,
	2015		2015		2015		2016
	(In thousands, except per share amounts)
Consolidated Statement of Operations Data:
Net revenues	$	14,025	$	13,577	$	12,921	$	12,213
Gross profit	$	7,295	$	6,917	$	6,386	$	6,139
Net loss	$	(917)	$	(347)	$	(819)	$	(87)
Net loss per common share—Basic	$	(0.04)	$	(0.02)	$	(0.04)	$	-
Net loss per common share—Diluted	$	(0.04)	$	(0.02)	$	(0.04)	$	-



	Three Months Ended
	June 30,		September 30,		December 31,		March 31,
	2014		2014		2014		2015
	(In thousands, except per share amounts)
Consolidated Statement of Operations Data:
Net revenues	$	12,945	$	13,263	$	14,227	$	13,063
Gross profit	$	5,939	$	6,061	$	6,650	$	6,473
Net income (loss)	$	(1,446)	$	(950)	$	148	$	(2,730)
Net income (loss) per common share—Basic	$	(0.05)	$	(0.04)	$	0.01	$	(0.12)
Net income (loss) per common share—Diluted	$	(0.05)	$	(0.04)	$	0.01	$	(0.12)

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - PP&E (Details)	12 Months Ended
	Mar. 31, 2016 USD ($) segment	Mar. 31, 2015 USD ($)	Mar. 31, 2014 USD ($)
Property and equipment, net:
Impairment losses on long-lived equipment	$ 0	$ 0	$ 0
Inventories
Inventory Write-down	$ 1,172,000	1,067,000	2,079,000
Minimum months to determine excess inventory	12 months
Advertising Expense
Advertising expense	$ 4,000	5,000	7,000
Segments
Number of Reportable Segments \| segment	1
Operating segments \| segment	1
Accounting for stock-based compensation
Expected life	5 years
Dividend yield (as a percent)	0.00%
Net deferred tax assets	$ 6,445,000	6,017,000
Comprehensive income (loss)	$ (2,169,000)	$ (4,985,000)	$ (6,201,000)
Minimum
Property and equipment, net:
Useful life, intangible assets	5 years
Maximum
Property and equipment, net:
Useful life, intangible assets	15 years
Software \| Minimum
Property and equipment, net:
Useful life, property and equipment	3 years
Software \| Maximum
Property and equipment, net:
Useful life, property and equipment	5 years
Computer and other equipment \| Minimum
Property and equipment, net:
Useful life, property and equipment	5 years
Computer and other equipment \| Maximum
Property and equipment, net:
Useful life, property and equipment	10 years
Building and building improvements \| Minimum
Property and equipment, net:
Useful life, property and equipment	10 years
Building and building improvements \| Maximum
Property and equipment, net:
Useful life, property and equipment	25 years
Furniture and fixtures
Property and equipment, net:
Useful life, property and equipment	7 years

5. INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
5. INCOME TAXES (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Loss before income taxes:
U.S.	$ (3,426)	$ (6,910)	$ (6,388)
Foreign	615	1,257	912
Loss before income taxes	(2,811)	(5,653)	(5,476)
Current income tax expense (benefit):
U.S. federal	(354)	(619)	(1,782)
Foreign	15	(2)	113
State	(289)	(54)	(82)
Current Income Tax Expense (Benefit):	(628)	(675)	(1,751)
Deferred income tax expense (benefit):
U.S. federal	(3)		1,892
Foreign	(10)
State			572
Deferred Income Tax Expense (Benefit)	(13)		2,464
Provision (benefit) for income taxes	$ (641)	$ (675)	$ 713

5. INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
Deferred tax assets:
Deferred revenue	$ 231	$ 110
Tax credits	2,706	1,766
Net operating losses	1,356	1,165
Stock-based compensation	1,550	1,387
Property and equipment	297	193
Other reserves and accruals	1,175	1,407
Total deferred tax assets	7,315	6,028
Deferred tax liabilities:
Intangible assets	(856)
Unrecognized gains	(14)	(11)
Total deferred tax liabilities	(870)	(11)
Gross deferred tax assets	6,445	6,017
Valuation allowance	(7,256)	$ (6,017)
Net deferred tax liability	(811)
Undistributed earnings on which income taxes have not been provided	40,100
Deferred Tax Liabilities, Undistributed Foreign Earnings	$ 0

9. STOCK- BASED COMPENSATION (Details)	1 Months Ended		12 Months Ended
9. STOCK- BASED COMPENSATION (Details)	Mar. 31, 2007 shares	Dec. 31, 2006 shares	Mar. 31, 2016 USD ($) item shares	Mar. 31, 2008 shares
2000 Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award
Additional shares authorized		500,000
Maximum shares authorized				3,500,000
Option expiration period		10 years
Previously authorized shares cancelled (in shares)	535,597
2000 Stock Option Plan \| Shareholder Greater Than 10 Percent Voting Power Of All Classes Of Stock
Share-based Compensation Arrangement by Share-based Payment Award
Option expiration period		5 years
Threshold percentage of voting power of all classes of stock by which stock option terms are based		10.00%
2000 Stock Option Plan \| Shareholder Greater Than 10 Percent Voting Power Of All Classes Of Stock \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Exercise price percentage of fair value of shares		110.00%
2000 Stock Option Plan \| Incentive Stock Option \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Exercise price percentage of fair value of shares		100.00%
2000 Stock Option Plan \| Nonstatutory Stock Options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Exercise price percentage of fair value of shares		85.00%
2007 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Maximum shares authorized	3,000,000
Maximum annual plan shares authorized reserve increase percentage			0.05
Maximum shares subject to stock options and stock appreciation rights granted per employee per fiscal year			300,000
Maximum shares subject to stock restricted stock and restricted stock unit awards granted per employee per fiscal year			100,000
Maximum shares subject to performance share awards and other stock-based awards granted per employee per fiscal year			50,000
Maximum amount subject to performance unit awards and other cash-based awards granted per employee per fiscal year \| $			$ 500,000
2007 Equity Incentive Plan \| Non Officer Employee
Share-based Compensation Arrangement by Share-based Payment Award
Vesting percentage			25.00%
2007 Equity Incentive Plan \| Officer
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period			4 years
2007 Equity Incentive Plan \| Director
Share-based Compensation Arrangement by Share-based Payment Award
Maximum shares that can be awarded in any fiscal year to nonemployee directors			2,000
Additional shares that may be awarded to nonemployee directors in the first fiscal year on the board			10,000
Additional shares that may be awarded to nonemployee directors in any fiscal year serving as chairman of the board			2,000
Additional shares that may be awarded to nonemployee directors in any fiscal year for each committee they are serving in a capacity other than as the chairman of the committee			1,000
Additional shares that may be awarded to nonemployee directors in any fiscal year for each committee they are serving as the chairman of the committee			2,000
2007 Equity Incentive Plan \| Incentive Stock Option
Share-based Compensation Arrangement by Share-based Payment Award
Maximum shares authorized			3,000,000
Maximum annual plan shares authorized reserve increase percentage			0.05
Maximum annual plan shares authorized reserve share increase			1,500,000
2007 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award
Maximum shares authorized	500,000
Exercise price percentage of fair value of shares			85.00%
Maximum annual plan shares authorized reserve increase percentage			0.01
Maximum annual plan shares authorized reserve share increase			250,000
Minimum hours to work per week to qualify for the Employee Stock Purchase Plan \| item			20
Minimum number of months per year needed to work to qualify for the Employee Stock Purchase Plan			5 months
Maximum percentage stock ownership to qualify for the Employee Stock Purchase Plan			5.00%
Maximum annual purchase rights per employee per year to enable granting of additional rights \| $			$ 25,000
Offering period length			6 months
Maximum share purchase per employee per offering period number of shares multiplier			1,000
Maximum share purchase per employee per offering period value multiplier			2,083.33
2007 Employee Stock Purchase Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Offering period length			27 months

9. STOCK- BASED COMPENSATION - Stock options activities (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Stock-Based Compensation
Shares available for grant, Beginning	6,213,943	5,585,500	4,867,458
Options reserved (in shares)	1,156,419	1,377,699	1,353,260
Granted (in shares)	(969,913)	(791,903)	(784,303)
Forfeited/expired (in shares)	31,614	42,647	149,085
Shares available for grant, Ending	6,432,063	6,213,943	5,585,500
Number of Shares Underlying Options Outstanding
Balance at the beginning of the period (in shares)	6,774,151	6,143,980	6,336,319
Granted (in shares)	969,913	791,903	784,303
Exercised (in shares)	(76,745)	(119,085)	(816,957)
Forfeited (in shares)	(41,614)	(42,647)	(159,685)
Balance at the end of the period (in shares)	7,625,705	6,774,151	6,143,980
Options vested and exercisable (in shares)	5,246,088
Options vested and expected to vest (in shares)	7,574,414
Weighted Average Remaining Contractual Life
Options vested and exercisable	3 years 8 months 12 days
Options vested and expected to vest	5 years 1 month 21 days
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share)	$ 5.16	$ 5.13	$ 4.46
Granted (in dollars per share)	4.42	5.20	6.45
Exercised (in dollars per share)	4.19	3.88	3.10
Forfeited (in dollars per share)	4.82	5.49	6.04
Balance at the end of the period (in dollars per share)	5.08	$ 5.16	$ 5.13
Options vested and exercisable (in dollars per share)	5.02
Options vested and expected to vest (in dollars per share)	$ 5.08
Intrinsic Value
Exercised (in dollars)	$ 46,977	$ 262,253	$ 2,629,982
Options vested and exercisable (in dollars)	939,846
Options vested and expected to vest (in dollars)	$ 1,150,077

9. STOCK- BASED COMPENSATION - Options outstanding by exercise price (Details) - $ / shares	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2013
Options outstanding by exercise price
Exercise Price (in dollars per share)	$ 5.08	$ 5.16	$ 5.13	$ 4.46
Number of Shares Underlying Options Outstanding (in shares)	7,625,705
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.08
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 2 months 1 day
Options Exercisable, Number Vested and Exercisable (in shares)	5,246,088
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.02
$2.43 - $3.40
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)	$ 3.40
Number of Shares Underlying Options Outstanding (in shares)	895,204
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.17
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 22 days
Options Exercisable, Number Vested and Exercisable (in shares)	586,394
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.05
$3.43 - $4.00
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	3.43
Exercise Price, high end of range (in dollars per share)	$ 4.00
Number of Shares Underlying Options Outstanding (in shares)	1,118,969
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.81
Options Outstanding, Weighted Average Remaining Contractual Life	3 years 1 month 6 days
Options Exercisable, Number Vested and Exercisable (in shares)	1,118,969
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.81
$4.17 - $4.81
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)	$ 4.81
Number of Shares Underlying Options Outstanding (in shares)	935,478
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 4.41
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 9 months
Options Exercisable, Number Vested and Exercisable (in shares)	670,261
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 4.33
$4.90 - $4.98
Options outstanding by exercise price
Exercise Price, low end of range (in dollars per share)	4.90
Exercise Price, high end of range (in dollars per share)	$ 4.98
Number of Shares Underlying Options Outstanding (in shares)	793,963
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 4.95
Options Outstanding, Weighted Average Remaining Contractual Life	7 years 11 months 1 day
Options Exercisable, Number Vested and Exercisable (in shares)	298,150
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 4.91
$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 5 months 27 days
Options Exercisable, Number Vested and Exercisable (in shares)	62,626
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.22
$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	7 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)	899,930
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.77
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 2 months 27 days
Options Exercisable, Number Vested and Exercisable (in shares)	568,526
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.80
$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)	808,219
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 6.48
Options Outstanding, Weighted Average Remaining Contractual Life	6 years 29 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	5 years 9 months 4 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	4 years 9 months 29 days
Options Exercisable, Number Vested and Exercisable (in shares)	113,620
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 9.20

11. ACQUISITION (Details)		3 Months Ended	12 Months Ended
11. ACQUISITION (Details)	Nov. 23, 2015 USD ($) employee patent	Mar. 31, 2016 USD ($)	Mar. 31, 2016 USD ($) $ / shares	Mar. 31, 2015 USD ($) $ / shares
Acquisition disclosure
Cash paid for acquisition			$ 4,359,000
Contingent consideration liability		$ 5,856,000	5,856,000
Assets acquired and liabilities assumed
Goodwill		8,030,000	8,030,000
MikaMonu
Acquisition disclosure
Number of former shareholders receiving retention payments \| employee	3
Contingent consideration, acquisition date fair value	$ 2,500,000
Term of additional retention payments	4 years
Discount rate (as a percent)	14.80%
Acquisition related costs		32,000	426,000
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
Pro forma net revenues			52,736,000	$ 54,134,000
Pro forma net loss			$ (2,575,000)	$ (5,810,000)
Pro forma net loss per share, basic and diluted \| $ / shares			$ (0.11)	$ (0.23)
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 \| Other assets
Acquisition disclosure
Amount of payment held in escrow	$ 2,500,000	484,000	$ 484,000
MikaMonu \| Other accrued expenses
Acquisition disclosure
Contingent consideration liability		5,800,000	5,800,000
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%

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	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	21,716,364	23,128,372
Common stock, shares outstanding	21,716,364	23,128,372

4. GOODWILL	12 Months Ended
4. GOODWILL	Mar. 31, 2016
Goodwill.
NOTE 4-GOODWILL	NOTE 4—GOODWILL Goodwill represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed in a business combination. The Company tests for goodwill impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. The Company has one reporting unit. The Company assesses goodwill for impairment on an annual basis on the last day of February in the fourth quarter of its fiscal year. As of March 31, 2016, the Company had a goodwill balance of $8.0 million. The goodwill resulted from the acquisition of MikaMonu Group Ltd. (“MikaMonu”) in fiscal 2016. The Company’s market capitalization declined in fiscal 2016. A significant decline in a company’s stock price may suggest that an adverse change in the business climate may have caused the fair value of one or more reporting units to fall below their carrying value. Significant judgment has been applied to determine whether stock price declines are a short-term swing or a long-term trend. The Company believes that the decline in its stock price will not be sustained. The Company utilized a two-step quantitative analysis to complete its annual impairment test during the fourth quarter of fiscal 2016 and concluded that there was no impairment, as the fair value of its sole reporting unit exceeded its carrying value. The Company determined that the second step of the impairment test was not necessary. The Company believes that the fair value established during the fiscal 2016 annual goodwill impairment testing was reasonable, and no triggering event has taken place subsequent to the fiscal 2016 annual assessment. However, a sustained decline in the Company’s stock price could constitute a triggering event that would require assessment for potential goodwill impairment in fiscal 2017.

8. COMMON STOCK	12 Months Ended
8. COMMON STOCK	Mar. 31, 2016
Common Stock.
NOTE 8-COMMON STOCK	NOTE 8—COMMON STOCK The Company's Certificate of Incorporation, as amended, authorizes the Company to issue 150,000,000 shares of $0.001 par value common stock. On August 6, 2014, the Company completed a modified “Dutch auction” self-tender offer to repurchase for cash shares of its common stock. The Company accepted for purchase and retirement an aggregate of 3,846,153 shares of its common stock at a final purchase price of $6.50 per share, for an aggregate cost of approximately $25 million, excluding fees and expenses related to the tender offer. The Company’s board of directors has authorized the repurchase, at management's discretion, of shares of its common stock. Under the repurchase program, the Company may repurchase shares from time to time on the open market or in private transactions. The specific timing and amount of the repurchases will be dependent on market conditions, securities law limitations and other factors. The repurchase program may be suspended or terminated at any time without prior notice. Through March 31, 2016, including the shares purchased in the modified “Dutch Auction” self-tender offer, the Company has repurchased and retired a total of 10,340,501 shares at an average cost of $5.18 per share for a total cost of $53.5 million. At March 31, 2016, management was authorized to repurchase additional shares with a value of up to $1.5 million under the repurchase program.

12. EMPLOYEE BENEFIT PLANS	12 Months Ended
12. EMPLOYEE BENEFIT PLANS	Mar. 31, 2016
Compensation and Retirement Disclosure [Abstract]
NOTE 12-EMPLOYEE BENEFIT PLANS	NOTE 12—EMPLOYEE BENEFIT PLANS The Company provides a defined contribution retirement plan (the "Retirement Plan"), which qualifies under Section 401(k) of the Internal Revenue Code of 1986. The Retirement Plan covers essentially all United States employees. Eligible employees may make contributions to the Retirement Plan up to 15% of their annual compensation, but no greater than the annual IRS limitation for any plan year. The Retirement Plan does not provide for Company contributions. The Company provides a defined contribution retirement plan (the “Pension Plan”) that covers essentially all of its employees located in Israel. Eligible employees may make contributions to the Pension Plan up to 5% of eligible compensation, and the Company contributes up to 15.83% of eligible compensation. All contributions are fully vested. Pursuant to Israeli labor laws, the Company’s Israeli subsidiary is required to pay severance pay to dismissed employees and employees leaving their employment in certain circumstances. Severance pay is computed based on length of service and generally according to the latest monthly salary and one month’s salary for each year worked.

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	12 Months Ended
	Mar. 31, 2016 USD ($) subsidiary facility customer	Mar. 31, 2015 USD ($) customer	Mar. 31, 2014 USD ($) customer
Concentration of credit risk
Allowance for doubtful accounts receivable write-offs \| $	$ 0	$ 0	$ 0
Basis of consolidation and risks and uncertainties
Number of subsidiaries \| subsidiary	4
Number of principal operations near fault lines \| facility	2
Net revenue \| Customer Concentration Risk
Concentration of credit risk
Number of customers	4	3	4
Net revenue \| Customer Concentration Risk \| Customer One
Concentration of credit risk
Percentage attributable to customers	28.00%	35.00%	30.00%
Net revenue \| Customer Concentration Risk \| Customer Two
Concentration of credit risk
Percentage attributable to customers	16.00%	13.00%	14.00%
Net revenue \| Customer Concentration Risk \| Customer Three
Concentration of credit risk
Percentage attributable to customers	14.00%	12.00%	12.00%
Net revenue \| Customer Concentration Risk \| Customer Four
Concentration of credit risk
Percentage attributable to customers	13.00%		10.00%
Accounts receivable member \| Credit Concentration Risk
Concentration of credit risk
Number of customers	4	4	4
Accounts receivable member \| Credit Concentration Risk \| Customer One
Concentration of credit risk
Percentage attributable to customers	26.00%	25.00%	20.00%
Accounts receivable member \| Credit Concentration Risk \| Customer Two
Concentration of credit risk
Percentage attributable to customers	25.00%	20.00%	16.00%
Accounts receivable member \| Credit Concentration Risk \| Customer Three
Concentration of credit risk
Percentage attributable to customers	13.00%	16.00%	14.00%
Accounts receivable member \| Credit Concentration Risk \| Customer Four
Concentration of credit risk
Percentage attributable to customers	11.00%	13.00%	12.00%

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Consolidated Statements Of Comprehensive Income ( Loss)
Net income (loss)	$ (87)	$ (819)	$ (347)	$ (917)	$ (2,730)	$ 148	$ (950)	$ (1,446)	$ (2,170)	$ (4,978)	$ (6,189)
Net unrealized gain (loss) on available-for-sale investments, net of tax									1	(7)	(12)
Total comprehensive loss									$ (2,169)	$ (4,985)	$ (6,201)

3. BALANCE SHEET DETAIL - Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
Inventories:
Work-in-progress	$ 1,697	$ 2,422
Finished goods	5,011	5,362
Inventory at distributors	466	628
Total Inventory	$ 7,174	$ 8,412

3. BALANCE SHEET DETAIL - Accounts receivable, net (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
Accounts receivable, net:
Accounts receivable	$ 7,578	$ 8,360
Less: Allowances for sales returns, doubtful accounts and other	(100)	(103)
Total accounts receivable, net	$ 7,478	$ 8,257

3. BALANCE SHEET DETAIL - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
Prepaid expenses and other current assets:
Prepaid tooling and masks	$ 1,224	$ 1,208
Prepaid income taxes		139
Other receivables	230	350
Other prepaid expenses	744	600
Total prepaid expenses and other current assets	$ 2,198	$ 2,297

3. BALANCE SHEET DETAIL - Other assets (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
Other assets:
Non-current deferred income taxes		$ 27
Intangibles, net	$ 3,651	393
Deposits	3,086	78
Total Other Assets	$ 3,086	$ 105

3. BALANCE SHEET DETAIL - Intangible assets (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Gross Carrying Amount	$ 4,890,000	$ 1,390,000
Accumulated Amortization	(1,239,000)	(997,000)
Net Carrying Amount	3,651,000	393,000
Amortization of intangible assets	242,000	171,000
Product designs
Gross Carrying Amount	590,000	590,000
Accumulated Amortization	(555,000)	(470,000)
Net Carrying Amount	35,000	120,000
Patents
Gross Carrying Amount	4,220,000	720,000
Accumulated Amortization	(604,000)	(447,000)
Net Carrying Amount	3,616,000	273,000
Software.
Gross Carrying Amount	80,000	80,000
Accumulated Amortization	$ (80,000)	$ (80,000)

3. BALANCE SHEET DETAIL - Future amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
Year Ending March 31,
2017	$ 349
2018	313
2019	267
2020	233
2021	233
Thereafter	2,256
Total	$ 3,651	$ 393

3. BALANCE SHEET DETAIL - Accrued expenses and other liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
Accrued expenses and other liabilities:
Accrued compensation	$ 3,082	$ 3,386
Accrued professional fees	83	1,380
Accrued commissions	284	268
Accrued royalties	21	26
Other accrued expenses	928	877
Total Accrued Expenses and Other Liabilities	$ 4,398	$ 5,937

3. BALANCE SHEET DETAIL - Other LT accrued liabilities (Details) $ in Thousands	Mar. 31, 2016 USD ($)
Other accrued expenses:
Contingent consideration	$ 5,856
Escrow indemnity accrual	484
Other long term accrued liabilities	152
Other accrued expenses	$ 6,492

4. GOODWILL (Details)	12 Months Ended
4. GOODWILL (Details)	Mar. 31, 2016 USD ($) segment
Goodwill.
Goodwill	$ 8,030,000
Goodwill, Impairment Loss	$ 0
Number of Reportable Segments \| segment	1

6. FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
Fair value measurements
Short-term investments	$ 23,149	$ 22,201
Long-term investments	11,148	21,740
Level 2 \| Marketable securities
Fair value measurements
Short-term investments	23,200
Long-term investments	11,100
Recurring
Fair value measurements
Assets	40,908	48,350
Recurring \| Money market funds
Fair value measurements
Money market funds included in cash and cash equivalents	6,611	4,409
Recurring \| Marketable securities
Fair value measurements
Marketable securities	34,297	43,941
Recurring \| Level 1
Fair value measurements
Assets	6,611	4,409
Recurring \| Level 1 \| Money market funds
Fair value measurements
Money market funds included in cash and cash equivalents	6,611	4,409
Recurring \| Level 2
Fair value measurements
Assets	34,297	43,941
Recurring \| Level 2 \| Marketable securities
Fair value measurements
Marketable securities	$ 34,297	$ 43,941

6. FINANCIAL INSTRUMENTS - Available for sale investments (Details) - USD ($)	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Available-for-sale investments
Cost	$ 34,255,000
Fair Value	$ 34,297,000
Other information
Maximum maturity period of investment portfolio	3 years
Deferred tax liability related to unrecognized gains and losses on short-term and long-term investments	$ 14,000	$ 11,000
Short-term investments
Available-for-sale investments
Cost	23,137,000	22,182,000
Gross Unrealized Gains	16,000	19,000
Gross Unrealized Losses	(3,000)
Fair Value	23,150,000	22,201,000
Short-term investments \| State and municipal obligations
Available-for-sale investments
Cost	1,011,000	6,810,000
Fair Value	1,011,000	6,810,000
Short-term investments \| Corporate notes
Available-for-sale investments
Cost	5,680,000	7,366,000
Gross Unrealized Gains		10,000
Gross Unrealized Losses	(3,000)
Fair Value	5,677,000	7,376,000
Short-term investments \| Certificates of deposits
Available-for-sale investments
Cost	11,750,000	7,000,000
Gross Unrealized Gains	12,000	9,000
Fair Value	11,762,000	7,009,000
Short-term investments \| Foreign government obligations
Available-for-sale investments
Cost	2,695,000
Gross Unrealized Gains	3,000
Fair Value	2,698,000
Short-term investments \| Agency bonds
Available-for-sale investments
Cost	2,001,000	1,006,000
Gross Unrealized Gains	1,000
Fair Value	2,002,000	1,006,000
Long-term investment
Available-for-sale investments
Cost	11,118,000	21,722,000
Gross Unrealized Gains	30,000	32,000
Gross Unrealized Losses	(1,000)	(14,000)
Fair Value	11,147,000	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	558,000	4,232,000
Gross Unrealized Gains	1,000
Gross Unrealized Losses		(10,000)
Fair Value	559,000	4,222,000
Long-term investment \| Certificates of deposits
Available-for-sale investments
Cost	8,500,000	9,750,000
Gross Unrealized Gains	24,000	24,000
Gross Unrealized Losses	(1,000)	(1,000)
Fair Value	8,523,000	9,773,000
Long-term investment \| Foreign government obligations
Available-for-sale investments
Cost	1,060,000
Gross Unrealized Gains	1,000
Fair Value	1,061,000
Long-term investment \| Agency bonds
Available-for-sale investments
Cost	1,000,000	4,003,000
Gross Unrealized Gains	4,000	4,000
Gross Unrealized Losses		(2,000)
Fair Value	$ 1,004,000	4,005,000
Long-term investment \| Other Investments
Available-for-sale investments
Cost		2,684,000
Gross Unrealized Losses		(1,000)
Fair Value		$ 2,683,000

6. FINANCIAL INSTRUMENTS - Contractual maturities (Details) $ in Thousands	Mar. 31, 2016 USD ($)
Financial Instruments.
Maturing within one year, Cost	$ 23,137
Maturing in one to three years, Cost	11,118
Total	34,255
Maturing within one year, Fair Value	23,150
Maturing in one to three years, Fair Value	11,147
Fair Value	$ 34,297

7. COMMITMENTS AND CONTINGENCIES - Legal proceedings (Details)						1 Months Ended
	May 06, 2014 lawsuit	Aug. 07, 2013 patent	Jun. 07, 2013 claim	May 01, 2013 patent	Jun. 10, 2011 item customer patent	Mar. 31, 2011 patent
Cypress Semiconductor Litigation
Legal proceedings
Number of patents infringed						5
Number of lawsuits \| lawsuit	2
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 \| claim			1
Cypress Semiconductor Northern District Litigation
Legal proceedings
Number of terminated or dismissed patent claims		3
Number of additional patents infringed				5
Number of patent claims transferred		2

8. COMMON STOCK - Dutch auction (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Aug. 06, 2014	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Repurchase of common stock, amount		$ 7,026	$ 30,026	$ 2,880
Common stock, shares outstanding		21,716,364	23,128,372
Modified Dutch Auction [Member]
Repurchase of common stock, shares	3,846,153
Treasury stock acquired cost per share	$ 6.50
Repurchase of common stock, amount	$ 25,000

10. SEGMENT AND GEOGRAPHIC INFORMATION (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($)	Jun. 30, 2014 USD ($)	Mar. 31, 2016 USD ($) segment	Mar. 31, 2015 USD ($)	Mar. 31, 2014 USD ($)
Net revenues and long-lived assets by geographic area
Revenue, Net	$ 12,213	$ 12,921	$ 13,577	$ 14,025	$ 13,063	$ 14,227	$ 13,263	$ 12,945	$ 52,736	$ 53,498	$ 58,579
Number of reportable business segments \| segment									1
Property and equipment, net	8,653				8,708				$ 8,653	8,708
United States
Net revenues and long-lived assets by geographic area
Revenue, Net									20,951	18,099	18,021
Property and equipment, net	6,085				6,630				6,085	6,630
China
Net revenues and long-lived assets by geographic area
Revenue, Net									12,123	15,695	13,294
Malaysia
Net revenues and long-lived assets by geographic area
Revenue, Net									32	2,720	9,827
Singapore
Net revenues and long-lived assets by geographic area
Revenue, Net									7,345	6,552	5,979
Taiwan
Net revenues and long-lived assets by geographic area
Property and equipment, net	2,521				$ 2,078				2,521	2,078
Israel
Net revenues and long-lived assets by geographic area
Property and equipment, net	$ 47								47
Rest of the world
Net revenues and long-lived assets by geographic area
Revenue, Net									$ 12,285	$ 10,432	$ 11,458

12. EMPLOYEE BENEFIT PLANS (Details)	12 Months Ended
12. EMPLOYEE BENEFIT PLANS (Details)	Mar. 31, 2016
Retirement Plan \| United States
Maximum amount employee can contribute (as a percent)	15.00%
Pension Plan \| Israel
Maximum amount employee can contribute (as a percent)	5.00%
Maximum amount employer can contribute (as a percent)	15.83%