View Filing Data

Fair Value

Useful Life

(in thousands)

(in years)

Total acquired identifiable intangible assets

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Jun. 30, 2016	Jul. 31, 2016
Document And Entity Information
Entity Registrant Name	GSI TECHNOLOGY INC
Entity Central Index Key	0001126741
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		20,549,058
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2017

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
ASSETS
Cash and cash equivalents	$ 28,237	$ 31,963
Short-term investments	21,727	23,149
Accounts receivable, net	9,180	7,478
Inventories	7,583	7,174
Prepaid expenses and other current assets	2,392	2,198
Total current assets	69,119	71,962
Property and equipment, net	8,464	8,653
Long-term investments	9,404	11,148
Goodwill	8,030	8,030
Intangible assets, net	3,551	3,651
Other assets	3,239	3,086
Total assets	101,807	106,530
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	2,067	2,514
Accrued expenses and other liabilities	4,411	4,398
Deferred revenue	1,976	2,330
Total current liabilities	8,454	9,242
Income taxes payable	251	116
Long term deferred income taxes		811
Other accrued expenses	6,156	6,492
Total liabilities	14,861	16,661
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: 20,838,246 and 21,716,364 shares, respectively	21	22
Additional paid-in capital	21,861	25,050
Accumulated other comprehensive income	34	27
Retained earnings	65,030	64,770
Total stockholders' equity	86,946	89,869
Total liabilities and stockholders' equity	$ 101,807	$ 106,530

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Mar. 31, 2016
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	20,838,246	21,716,364
Common stock, shares outstanding	20,838,246	21,716,364

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Income Statement
Net revenues	$ 12,946	$ 14,025
Cost of revenues	6,224	6,730
Gross profit	6,722	7,295
Operating expenses:
Research and development	3,499	2,998
Selling, general and administrative	2,834	5,305
Total operating expenses	6,333	8,303
Income (loss) from operations	389	(1,008)
Interest income, net	77	79
Other income (expense), net	65	37
Income (loss) before income taxes	531	(892)
Provision for income taxes	271	25
Net income (loss)	$ 260	$ (917)
Net income (loss) per share:
Basic	$ 0.01	$ (0.04)
Diluted	$ 0.01	$ (0.04)
Weighted average shares used in per share calculations:
Basic	21,299	22,943
Diluted	21,526	22,943

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Consolidated Statements Of Comprehensive Income ( Loss)
Net income (loss)	$ 260	$ (917)
Net unrealized gain (loss) on available-for-sale investments, net of tax	7	(5)
Total comprehensive income (loss)	$ 267	$ (922)

- Definition

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

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income (loss)	$ 260	$ (917)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Allowance for sales returns, doubtful accounts and other	1	3
Provision for excess and obsolete inventories	85	388
Depreciation and amortization	424	333
Stock-based compensation	443	474
Amortization of premium on investments	25	93
Changes in assets and liabilities:
Accounts receivable	(1,703)	(1,169)
Inventory	(494)	(650)
Prepaid expenses and other assets	(347)	(908)
Accounts payable	(447)	1,534
Accrued expenses and other liabilities	(999)	(1,845)
Deferred revenue	(354)	207
Net cash used in operating activities	(3,106)	(2,457)
Cash flows from investing activities:
Sales and maturities of short-term investments	3,148	7,000
Purchases of property and equipment	(135)	(6)
Net cash provided by investing activities	3,013	6,994
Cash flows from financing activities:
Repurchase of common stock	(3,906)	(2,453)
Proceeds from issuance of common stock under employee stock plans	273	316
Net cash used in financing activities	(3,633)	(2,137)
Net increase (decrease) in cash and cash equivalents	(3,726)	2,400
Cash and cash equivalents at beginning of the year	31,963	36,776
Cash and cash equivalents at end of the period	28,237	39,176
Supplemental cash flow information:
Net cash paid (received) for income taxes	$ 1,256	$ (132)

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Jun. 30, 2016
The Company And Summary Of Significant Accounting Policies
NOTE 1-THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1—THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited condensed consolidated financial statements of GSI Technology, Inc. and its subsidiaries (“GSI” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. These interim financial statements contain all adjustments (which consist of only normal, recurring adjustments) that are, in the opinion of management, necessary to state fairly the interim financial information included therein. The Company believes that the disclosures are adequate to make the information not misleading. However, these financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2016. The consolidated results of operations for the three months ended June 30, 2016 are not necessarily indicative of the results to be expected for the entire fiscal year. Significant accounting policies The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2016. Recent accounting pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies several aspects of the accounting for share-based payments 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 ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Assets.” ASU 2016-01 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 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.

2. NET INCOME (LOSS) PER COMMON SHARE

3 Months Ended

Jun. 30, 2016

NET INCOME (LOSS) PER COMMON SHARE

NOTE 2 - NET INCOME (LOSS) PER COMMON SHARE

NOTE 2—NET INCOME (LOSS) PER COMMON SHARE

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


	Three Months Ended June 30,
	2016		2015

Net income (loss)	$	260	$	(917)

Denominators:
Weighted average shares—Basic		21,299		22,943
Dilutive effect of employee stock options		223		—
Dilutive effect of employee stock purchase plan options		4		—
Weighted average shares—Dilutive		21,526		22,943
Net income (loss) per common share—Basic	$	0.01		(0.04)
Net income (loss) per common share—Diluted	$	0.01		(0.04)

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


	Three Months Ended June 30,
	2016	2015

Shares underlying options	6,666	4,782

3. BALANCE SHEET DETAIL

3 Months Ended

Jun. 30, 2016

BALANCE SHEET DETAIL

NOTE 3 - BALANCE SHEET DETAIL

NOTE 3—BALANCE SHEET DETAIL



	June 30, 2016		March 31, 2016
	(In thousands)
Inventories:
Work-in-progress	$	2,000	$	1,697
Finished goods		5,266		5,011
Inventory at distributors		317		466
	$	7,583	$	7,174



	June 30, 2016		March 31, 2016
	(In thousands)
Accounts receivable, net:
Accounts receivable	$	9,281	$	7,578
Less: Allowances for sales returns, doubtful accounts and other		(101)		(100)
	$	9,180	$	7,478



	June 30, 2016		March 31, 2016
	(In thousands)
Prepaid expenses and other current assets:
Prepaid tooling and masks	$	860	$	1,224
Prepaid income taxes		43		—
Escrow deposit		484		—
Other receivables		358		230
Other prepaid expenses and other current assets		647		744
	$	2,392	$	2,198



	June 30, 2016		March 31, 2016
	(In thousands)
Property and equipment, net:
Computer and other equipment	$	18,520	$	18,394
Software		4,793		4,793
Land		3,900		3,900
Building and building improvements		2,256		2,256
Furniture and fixtures		110		114
Leasehold improvements		696		687
		30,275		30,144
Less: Accumulated depreciation		(21,811)		(21,491)
	$	8,464	$	8,653

Depreciation expense was $324,000 and $292,000, respectively, for the three months ended June 30, 2016 and 2015.



	June 30, 2016		March 31, 2016
	(In thousands)
Other assets:
Escrow deposit	$	2,500	$	2,984
Non-current deferred income taxes		35		—
Prepaid income taxes		585		—
Deposits		119		102
	$	3,239	$	3,086

The escrow deposits at June 30, 2016 and March 31, 2016 include approximately $2.5 million and $3.0 million respectively, placed in escrow in connection with the Company’s acquisition of MikaMonu Group Ltd. on November 23, 2015. See Note 10— Acquisition for more information.

The following tables summarize the components of intangible assets and related accumulated amortization balances at June 30, 2016 and March 31, 2016 (in thousands):


	As of June 30, 2016
	Gross Carrying Amount		Accumulated amortization		Net Carrying Amount
Intangible assets:
Product designs	$	590	$	(576)	$	14
Patents		4,220		(683)		3,537
Software		80		(80)		—
Total	$	4,890	$	(1,339)	$	3,551


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

Amortization of intangible assets included in cost of revenues was $100,000 and $41,000, respectively, for the three months ended June 30, 2016 and 2015.

As of June 30, 2016, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands):


Three Months Ended June 30,
2017	$	327
2018		313
2019		247
2020		233
2021		233
Thereafter		2,198
Total	$	3,551



	June 30, 2016		March 31, 2016
	(In thousands)
Accrued expenses and other liabilities:
Accrued compensation	$	2,369	$	3,082
Escrow indemnity accrual		484		—
Accrued professional fees		173		83
Accrued commissions		363		284
Accrued income taxes		373		15
Other accrued expenses		649		934
	$	4,411	$	4,398



	June 30, 2016		March 31, 2016
	(In thousands)
Other accrued expenses:
Contingent consideration	$	5,895	$	5,856
Escrow indemnity accrual		—		484
Other long-term accrued liabilities		261		152
	$	6,156	$	6,492

4. GOODWILL	3 Months Ended
4. GOODWILL	Jun. 30, 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 and June 30, 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 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. No triggering event took place subsequent to the fiscal 2016 annual assessment that necessitated a quantitative impairment analysis for the Company’s one reporting unit. However, there continues to be a risk that 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.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

5. INCOME TAXES	3 Months Ended
5. INCOME TAXES	Jun. 30, 2016
INCOME TAXES
NOTE 5-INCOME TAXES	NOTE 5—INCOME TAXES The current portion of the Company’s unrecognized tax benefits was $0 at both June 30, 2016 and March 31, 2016. The long-term portion at June 30, 2016 and March 31, 2016 was $251,000 and $116,000, respectively, of which the timing of the resolution is uncertain. As of June 30, 2016, $2,011,000 of unrecognized tax benefits had been recorded as a reduction to net deferred tax assets. As of June 30, 2016 and March 31, 2016, the Company’s net deferred tax assets of $7.6 million and $6.4 million, respectively, were subject to a full valuation allowance. The Company recorded a net deferred tax liability of $821,000 associated with the estimated fair value adjustments of the intangible assets acquired in its acquisition of MikaMonu in the quarter ended December 31, 2015. During the three months ended June 30, 2016, the Company reversed the deferred tax liability and recorded a prepaid tax asset of $636,000 associated the transfer of the acquired intangible assets out of Israel. During the three months ended June 30, 2016, the Company recorded a tax benefit of $71,000 that is included in the tax provision for the quarter then ended, to the reduction of uncertain tax benefits as a result of the lapse of applicable statutes of limitations. Management believes that it is reasonably possible that within the next twelve months the Company could have a reduction in uncertain tax benefits of up to $438,000, including interest and penalties, related to positions taken with respect to credits and loss carryforwards on previously filed tax returns. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the provision for income taxes in the Condensed Consolidated Statements of Operations. The Company is subject to taxation in the United States and various state and foreign jurisdictions. Fiscal years 2013 through 2016 remain open to examination by federal tax authorities, and fiscal years 2012 through 2016 remain open to examination by California tax authorities. The Company’s estimated annual effective income tax rate was approximately (7.0%) and 2.6% as of June 30, 2016 and 2015, respectively. The annual effective tax rate as of June 30, 2016 and 2015 varies from the United States statutory income tax rate primarily due to valuation allowances in the United States, whereby pre-tax losses do not result in the recognition of corresponding income tax benefits and expenses, and the foreign tax differential.

6. FINANCIAL INSTRUMENTS

3 Months Ended

Jun. 30, 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 disclosures. The guidance applies to all financial assets and financial liabilities that are measured on a recurring basis. The guidance requires fair value measurement to be classified and disclosed in one of the following three categories:

Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities. The fair value of available-for-sale securities included in the Level 1 category is based on quoted prices that are readily and regularly available in an active market. As of June 30, 2016, the Level 1 category included money market funds of $4.9 million, which were included in cash and cash equivalents on the Condensed Consolidated Balance Sheets.

Level 2: Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly. The fair value of available-for-sale securities included in the Level 2 category is based on the market values obtained from an independent pricing service that were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well established independent pricing vendors and broker-dealers. As of June 30, 2016, the Level 2 category included short-term investments of $21.7 million and long-term investments of $9.4 million, which were comprised of certificates of deposit, corporate debt securities and government and agency securities.

Level 3: Valuations based on inputs that are unobservable and involve management judgment and the reporting entity’s own assumptions about market participants and pricing. As of June 30, 2016, the Company had no Level 3 financial assets and a Level 3 financial liability consisting of the contingent consideration liability for the acquisition of MikaMonu. See Note 10-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		Significant
			Markets for		Other		Significant
			Identical Assets		Observable		Unobservable
			and Liabilities		Inputs		Inputs
	June 30, 2016		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds	$	4,914	$	4,914	$	—	$	—
Marketable securities		31,131		—		31,131		—
Total	$	36,045	$	4,914	$	31,131	$	—


			Fair Value Measurements at Reporting Date Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical Assets		Observable		Unobservable
			and Liabilities		Inputs		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	$	—

Short-term and long-term investments

All of the Company’s short-term and long-term investments are classified as available-for-sale. Available-for-sale debt securities with maturities greater than twelve months are classified as long-term investments when they are not intended for use in current operations. Investments in available-for-sale securities are reported at fair value with unrecognized gains (losses), net of tax, as a component of accumulated other comprehensive income (loss) in the Condensed Consolidated Balance Sheets. The Company had money market funds of $4.9 million and $6.6 million at June 30, 2016 and March 31, 2016, respectively, included in cash and cash equivalents on the Condensed Consolidated Balance Sheets. The Company monitors its investments for impairment periodically and records appropriate reductions in carrying values when declines are determined to be other-than-temporary.

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


	June 30, 2016
			Gross		Gross
			Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
Short-term investments:
State and municipal obligations	$	1,000	$	—	$	—	$	1,000
Corporate notes		4,265		—		(2)		4,263
Certificates of deposit		11,750		14		—		11,764
Foreign government obligations		2,698		2		—		2,700
Agency bonds		2,000		—		—		2,000
Total short-term investments	$	21,713	$	16	$	(2)	$	21,727
Long-term investments:
Corporate notes	$	558	$	2	$	—	$	560
Certificates of deposit		6,750		30		—		6,780
Foreign government obligations		1,059		1		—		1,060
Agency bonds		1,000		4		—		1,004
Total long-term investments	$	9,367	$	37	$	—	$	9,404


	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

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

The deferred tax liability related to unrecognized gains and losses on short-term and long-term investments was $18,000 and $14,000 at June 30, 2016 and March 31, 2016, respectively.

As of June 30, 2016, contractual maturities of the Company’s available-for-sale investments were as follows:


			Fair
	Cost		Value
	(In thousands)
Maturing within one year	$	21,713	$	21,727
Maturing in one to three years		9,367		9,404
	$	31,080	$	31,131

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

7. COMMITMENTS AND CONTINGENCIES	3 Months Ended
7. COMMITMENTS AND CONTINGENCIES	Jun. 30, 2016
COMMITMENTS AND CONTINGENCIES.
NOTE 7-COMMITMENTS AND CONTINGENCIES	NOTE 7—COMMITMENTS AND CONTINGENCIES Indemnification obligations The Company is a party to a variety of agreements pursuant to which it may be obligated to indemnify the other party with respect to certain matters. Typically, these obligations arise in the context of contracts entered into by the Company, under which the Company agrees to hold the other party harmless against losses arising from a breach of representations and covenants related to such matters as title to assets sold and certain intellectual property rights. In each of these circumstances, the Company’s indemnification obligations are conditioned on the other party making a claim pursuant to the procedures specified in the particular contract, which procedures typically allow the Company to challenge the other party’s claims. Further, the Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments made by it under these agreements. It is not possible to predict the maximum potential amount of future payments that may be required under these or similar agreements due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material effect on its business, financial condition, cash flows or results of operations. Product warranties The Company warrants its products to be free of defects generally for a period of three years. The Company estimates its warranty costs based on historical warranty claim experience and includes such costs in cost of revenues. Warranty costs were not material for the three months ended June 30, 2016 or 2015. Legal proceedings From time to time, the Company may be involved in litigation relating to claims arising out of its day-to-day operations.

8. STOCK- BASED COMPENSATION

3 Months Ended

Jun. 30, 2016

STOCK- BASED COMPENSATION

NOTE 8-STOCK- BASED COMPENSATION

NOTE 8—STOCK-BASED COMPENSATION

As of June 30, 2016, 7,358,792 shares of common stock were available for grant under the Company’s 2007 Equity Incentive Plan.

The following table summarizes the Company’s stock option activities for the three months ended June 30, 2016:


			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, 2016	6,432,063	7,625,705		$	5.08
Options reserved	1,085,818	—			—
Granted	(160,590)	160,590			3.60
Exercised	—	(20,200)			3.39	$	10,208
Forfeited	1,501	(2,101)			5.82
Balance at June 30, 2016	7,358,792	7,763,994		$	5.05
Options vested and exercisable		5,417,275	3.58	$	5.03	$	1,043,486
Options vested and expected to vest		7,719,468	5.00	$	5.05	$	1,365,215

The weighted average fair value per underlying share of options granted during the three months ended June 30, 2016 and 2015 was $1.17 and $1.89, respectively.

Options outstanding by exercise price at June 30, 2016 were as follows:


				Number of	Options Outstanding			Options Exercisable
				Shares	Weighted		Weighted Average		Weighted
				Underlying	Average		Remaining	Number	Average
				Options	Exercise		Contractual	Vested and	Exercise
Exercise Price				Outstanding	Price		Life (Years)	Exercisable	Price
$	2.43	-	3.40	885,004	$	3.17	4.84	576,194	$	3.04
$	3.43	-	4.00	1,269,559	$	3.79	3.73	1,108,969	$	3.82
$	4.17	-	4.81	934,778	$	4.41	5.50	778,140	$	4.40
$	4.90	-	4.98	793,963	$	4.95	7.66	327,028	$	4.91
$	5.13	-	5.34	625,513	$	5.23	8.25	90,829	$	5.22
$	5.50			782,833	$	5.50	0.38	782,833	$	5.50
$	5.59	-	6.00	899,830	$	5.77	4.99	568,526	$	5.80
$	6.28	-	6.63	807,758	$	6.48	5.83	645,179	$	6.47
$	6.82	-	7.00	651,376	$	6.90	5.51	426,197	$	6.91
$	9.20			113,380	$	9.20	4.59	113,380	$	9.20
				7,763,994	$	5.05	5.02	5,417,275	$	5.03

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


	Three Months Ended June 30,
	2016		2015

Cost of revenues	$	73	$	69
Research and development		203		217
Selling, general and administrative		167		188
Total	$	443	$	474

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

No tax benefit related to stock-based compensation was recognized in the three months ended June 30, 2016 or June 30, 2015 due to a full valuation allowance. There were no windfall tax benefits realized from exercised stock options in either of these periods. Compensation cost capitalized within inventory at June 30, 2016 was immaterial. As of June 30, 2016, the Company’s total unrecognized compensation cost was $2.7 million, which will be recognized over a weighted average period of 2.08 years. The Company calculated the fair value of stock-based awards in the periods presented using the Black-Scholes option pricing model and the following weighted average assumptions:


	Three Months Ended June 30,
	2016			2015
	(In thousands)
Stock Option Plans:
Risk-free interest rate		1.26	%		1.52	%
Expected life (in years)		5.00			5.00
Volatility		34.8	%		38.0	%
Dividend yield		—	%		—	%
Employee Stock Purchase Plan:
Risk-free interest rate		0.38	%		0.09	%
Expected life (in years)		0.50			0.50
Volatility		39.6	%		26.3	%
Dividend yield		—	%		—	%

9. SEGMENT AND GEOGRAPHIC INFORMATION

3 Months Ended

Jun. 30, 2016

SEGMENT AND GEOGRAPHIC INFORMATION

NOTE 9-SEGMENT AND GEOGRAPHIC INFORMATION

NOTE 9—SEGMENT AND GEOGRAPHIC INFORMATION

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

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


	Three Months Ended June 30,
	2016		2015

United States	$	4,825	$	5,948
China		3,232		3,798
Singapore		3,295		1,398
Netherlands		379		1,698
Rest of the world		1,215		1,183
	$	12,946	$	14,025

All sales are denominated in United States dollars.

- Definition

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

+ References

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

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

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

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

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

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

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

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

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

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

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

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

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

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

+ Details

10. ACQUISITION

3 Months Ended

Jun. 30, 2016

ACQUISITION

NOTE 10-ACQUISITION

NOTE 10—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 accounted for as a purchase under authoritative guidance for business combinations. The purchase price of the acquisition has been preliminarily allocated to the intangible assets acquired, with the excess of the purchase price over the fair value of assets acquired recorded as goodwill. The Company will perform a goodwill impairment test in February of each fiscal year.

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

Consideration

Under the terms of the acquisition agreement, the Company paid the former MikaMonu shareholders initial cash consideration of approximately $4.4 million at the closing on November 23, 2015. In addition, $484,000 was deposited in escrow to provide a fund for potential future indemnification claims by the Company. This amount is included in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheet at June 30, 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 Condensed Consolidated Balance Sheet at June 30, 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 has determined that the fair value of this contingent consideration liability was $5.8 million at the acquisition date. This contingent consideration liability is included in other accrued expenses on the Condensed Consolidated Balance Sheet at June 30, 2016 and March 31, 2016 in the amount of $5.9 million at each 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 at then current fair value with changes recorded in the Consolidated Statements of Operations. Changes in any of the inputs may result in material adjustments to the recorded fair value.

Purchase price allocation

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

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


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

The deferred tax liability associated with the estimated fair value adjustments of the intangible assets acquired was 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:

- Definition

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

+ References

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

+ Details

1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Jun. 30, 2016
The Company And Summary Of Significant Accounting Policies
Basis of consolidation	Basis of presentation The accompanying unaudited condensed consolidated financial statements of GSI Technology, Inc. and its subsidiaries (“GSI” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for annual financial statements. These interim financial statements contain all adjustments (which consist of only normal, recurring adjustments) that are, in the opinion of management, necessary to state fairly the interim financial information included therein. The Company believes that the disclosures are adequate to make the information not misleading. However, these financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2016. The consolidated results of operations for the three months ended June 30, 2016 are not necessarily indicative of the results to be expected for the entire fiscal year.
Significant accounting policies	Significant accounting policies The Company’s significant accounting policies are disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2016.
Recent accounting pronouncements	Recent accounting pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies several aspects of the accounting for share-based payments 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 ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Assets.” ASU 2016-01 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 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.

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

3 Months Ended

Jun. 30, 2016

NET INCOME (LOSS) PER COMMON SHARE

Basic and diluted net loss per share


	Three Months Ended June 30,
	2016		2015

Net income (loss)	$	260	$	(917)

Denominators:
Weighted average shares—Basic		21,299		22,943
Dilutive effect of employee stock options		223		—
Dilutive effect of employee stock purchase plan options		4		—
Weighted average shares—Dilutive		21,526		22,943
Net income (loss) per common share—Basic	$	0.01		(0.04)
Net income (loss) per common share—Diluted	$	0.01		(0.04)

Anti-dilutive shares


	Three Months Ended June 30,
	2016	2015

Shares underlying options	6,666	4,782

3. BALANCE SHEET DETAIL (Tables)

3 Months Ended

Jun. 30, 2016

BALANCE SHEET DETAIL

Schedule of Inventories



	June 30, 2016		March 31, 2016
	(In thousands)
Inventories:
Work-in-progress	$	2,000	$	1,697
Finished goods		5,266		5,011
Inventory at distributors		317		466
	$	7,583	$	7,174

Schedule of Accounts Receivable, Net



	June 30, 2016		March 31, 2016
	(In thousands)
Accounts receivable, net:
Accounts receivable	$	9,281	$	7,578
Less: Allowances for sales returns, doubtful accounts and other		(101)		(100)
	$	9,180	$	7,478

Schedule of Prepaid Expenses and Other Current Assets



	June 30, 2016		March 31, 2016
	(In thousands)
Prepaid expenses and other current assets:
Prepaid tooling and masks	$	860	$	1,224
Prepaid income taxes		43		—
Escrow deposit		484		—
Other receivables		358		230
Other prepaid expenses and other current assets		647		744
	$	2,392	$	2,198

Schedule of Property and Equipment, Net



	June 30, 2016		March 31, 2016
	(In thousands)
Property and equipment, net:
Computer and other equipment	$	18,520	$	18,394
Software		4,793		4,793
Land		3,900		3,900
Building and building improvements		2,256		2,256
Furniture and fixtures		110		114
Leasehold improvements		696		687
		30,275		30,144
Less: Accumulated depreciation		(21,811)		(21,491)
	$	8,464	$	8,653

Schedule of Other Assets



	June 30, 2016		March 31, 2016
	(In thousands)
Other assets:
Escrow deposit	$	2,500	$	2,984
Non-current deferred income taxes		35		—
Prepaid income taxes		585		—
Deposits		119		102
	$	3,239	$	3,086

Schedule of Intangible Assets

The following tables summarize the components of intangible assets and related accumulated amortization balances at June 30, 2016 and March 31, 2016 (in thousands):


	As of June 30, 2016
	Gross Carrying Amount		Accumulated amortization		Net Carrying Amount
Intangible assets:
Product designs	$	590	$	(576)	$	14
Patents		4,220		(683)		3,537
Software		80		(80)		—
Total	$	4,890	$	(1,339)	$	3,551


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

Estimated future amortization expense of intangible assets

As of June 30, 2016, the estimated future amortization expense of intangible assets in the table above is as follows (in thousands):


Three Months Ended June 30,
2017	$	327
2018		313
2019		247
2020		233
2021		233
Thereafter		2,198
Total	$	3,551

Schedule of Accrued Expenses and Other Liabilities



	June 30, 2016		March 31, 2016
	(In thousands)
Accrued expenses and other liabilities:
Accrued compensation	$	2,369	$	3,082
Escrow indemnity accrual		484		—
Accrued professional fees		173		83
Accrued commissions		363		284
Accrued income taxes		373		15
Other accrued expenses		649		934
	$	4,411	$	4,398

Other Accrued Expenses



	June 30, 2016		March 31, 2016
	(In thousands)
Other accrued expenses:
Contingent consideration	$	5,895	$	5,856
Escrow indemnity accrual		—		484
Other long-term accrued liabilities		261		152
	$	6,156	$	6,492

6. FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Jun. 30, 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		Significant
			Markets for		Other		Significant
			Identical Assets		Observable		Unobservable
			and Liabilities		Inputs		Inputs
	June 30, 2016		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds	$	4,914	$	4,914	$	—	$	—
Marketable securities		31,131		—		31,131		—
Total	$	36,045	$	4,914	$	31,131	$	—


			Fair Value Measurements at Reporting Date Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical Assets		Observable		Unobservable
			and Liabilities		Inputs		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	$	—

Schedule of available-for-sale investments


	June 30, 2016
			Gross		Gross
			Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
Short-term investments:
State and municipal obligations	$	1,000	$	—	$	—	$	1,000
Corporate notes		4,265		—		(2)		4,263
Certificates of deposit		11,750		14		—		11,764
Foreign government obligations		2,698		2		—		2,700
Agency bonds		2,000		—		—		2,000
Total short-term investments	$	21,713	$	16	$	(2)	$	21,727
Long-term investments:
Corporate notes	$	558	$	2	$	—	$	560
Certificates of deposit		6,750		30		—		6,780
Foreign government obligations		1,059		1		—		1,060
Agency bonds		1,000		4		—		1,004
Total long-term investments	$	9,367	$	37	$	—	$	9,404


	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

Schedule of contractual maturities of the available-for-sale investments


			Fair
	Cost		Value
	(In thousands)
Maturing within one year	$	21,713	$	21,727
Maturing in one to three years		9,367		9,404
	$	31,080	$	31,131

- 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

8. STOCK- BASED COMPENSATION (Tables)

3 Months Ended

Jun. 30, 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, 2016	6,432,063	7,625,705		$	5.08
Options reserved	1,085,818	—			—
Granted	(160,590)	160,590			3.60
Exercised	—	(20,200)			3.39	$	10,208
Forfeited	1,501	(2,101)			5.82
Balance at June 30, 2016	7,358,792	7,763,994		$	5.05
Options vested and exercisable		5,417,275	3.58	$	5.03	$	1,043,486
Options vested and expected to vest		7,719,468	5.00	$	5.05	$	1,365,215

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	885,004	$	3.17	4.84	576,194	$	3.04
$	3.43	-	4.00	1,269,559	$	3.79	3.73	1,108,969	$	3.82
$	4.17	-	4.81	934,778	$	4.41	5.50	778,140	$	4.40
$	4.90	-	4.98	793,963	$	4.95	7.66	327,028	$	4.91
$	5.13	-	5.34	625,513	$	5.23	8.25	90,829	$	5.22
$	5.50			782,833	$	5.50	0.38	782,833	$	5.50
$	5.59	-	6.00	899,830	$	5.77	4.99	568,526	$	5.80
$	6.28	-	6.63	807,758	$	6.48	5.83	645,179	$	6.47
$	6.82	-	7.00	651,376	$	6.90	5.51	426,197	$	6.91
$	9.20			113,380	$	9.20	4.59	113,380	$	9.20
				7,763,994	$	5.05	5.02	5,417,275	$	5.03

Summary of stock-based compensation expense by line item


	Three Months Ended June 30,
	2016		2015

Cost of revenues	$	73	$	69
Research and development		203		217
Selling, general and administrative		167		188
Total	$	443	$	474

Schedule of weighted average assumptions


	Three Months Ended June 30,
	2016			2015
	(In thousands)
Stock Option Plans:
Risk-free interest rate		1.26	%		1.52	%
Expected life (in years)		5.00			5.00
Volatility		34.8	%		38.0	%
Dividend yield		—	%		—	%
Employee Stock Purchase Plan:
Risk-free interest rate		0.38	%		0.09	%
Expected life (in years)		0.50			0.50
Volatility		39.6	%		26.3	%
Dividend yield		—	%		—	%

9. SEGMENT AND GEOGRAPHIC INFORMATION (Tables)

3 Months Ended

Jun. 30, 2016

SEGMENT AND GEOGRAPHIC INFORMATION

Net revenues by geographic area


	Three Months Ended June 30,
	2016		2015

United States	$	4,825	$	5,948
China		3,232		3,798
Singapore		3,295		1,398
Netherlands		379		1,698
Rest of the world		1,215		1,183
	$	12,946	$	14,025

10. ACQUISITION (Tables)

3 Months Ended

Jun. 30, 2016

ACQUISITION

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

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


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

Schedule of components of identifiable assets acquired

2. NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
NET INCOME (LOSS) PER COMMON SHARE
Net income (loss)	$ 260	$ (917)
Weighted average shares-Basic	21,299	22,943
Dilutive effect of employee stock options	223
Dilutive effect of employee stock purchase plan options	4
Weighted average shares-Dilutive	21,526	22,943
Net income (loss) per common share - Basic	$ 0.01	$ (0.04)
Net income (loss) per common share - Diluted	$ 0.01	$ (0.04)

- Definition

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

+ References + Details

- Definition

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

+ References + Details

2. NET INCOME (LOSS) PER COMMON SHARE - Shares underlying options (Details) - shares shares in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
NET INCOME (LOSS) PER COMMON SHARE
Antidilutive shares excluded from computation of EPS	6,666	4,782

3. BALANCE SHEET DETAIL - Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Inventories:
Work-in-progress	$ 2,000	$ 1,697
Finished goods	5,266	5,011
Inventory at distributors	317	466
Total Inventory	$ 7,583	$ 7,174

3. BALANCE SHEET DETAIL - Accounts receivable, net (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Accounts receivable, net:
Accounts receivable	$ 9,281	$ 7,578
Less: Allowances for sales returns, doubtful accounts and other	(101)	(100)
Total accounts receivable, net	$ 9,180	$ 7,478

3. BALANCE SHEET DETAIL - Prepaid expenses and other current assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Prepaid expenses and other current assets:
Prepaid tooling and masks	$ 860	$ 1,224
Prepaid income taxes	43
Escrow deposit	484
Other receivables	358	230
Other prepaid expenses and other current assets	647	744
Total prepaid expenses and other current assets	$ 2,392	$ 2,198

3. BALANCE SHEET DETAIL - Property, Plant and Equipment (Details) - USD ($)	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
Property and equipment, net:
Property and equipment, gross	$ 30,275,000		$ 30,144,000
Less: Accumulated depreciation	(21,811,000)		(21,491,000)
Property, Plant and Equipment, Net, Total	8,464,000		8,653,000
Depreciation	324,000	$ 292,000
Computer and other equipment
Property and equipment, net:
Property and equipment, gross	18,520,000		18,394,000
Software
Property and equipment, net:
Property and equipment, gross	4,793,000		4,793,000
Land
Property and equipment, net:
Property and equipment, gross	3,900,000		3,900,000
Building and building improvements
Property and equipment, net:
Property and equipment, gross	2,256,000		2,256,000
Furniture and fixtures
Property and equipment, net:
Property and equipment, gross	110,000		114,000
Leasehold improvements
Property and equipment, net:
Property and equipment, gross	$ 696,000		$ 687,000

3. BALANCE SHEET DETAIL - Other assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Other assets:
Escrow deposit	$ 2,500	$ 2,984
Non-current deferred income taxes	35
Prepaid income taxes	585
Deposits	119	102
Total Other Assets	$ 3,239	$ 3,086

3. BALANCE SHEET DETAIL - Intangible assets (Details) - USD ($)	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
Gross Carrying Amount	$ 4,890,000		$ 4,890,000
Accumulated Amortization	(1,339,000)		(1,239,000)
Net Carrying Amount	3,551,000		3,651,000
Amortization of intangible assets	100,000	$ 41,000
Product designs
Gross Carrying Amount	590,000		590,000
Accumulated Amortization	(576,000)		(555,000)
Net Carrying Amount	14,000		35,000
Patents
Gross Carrying Amount	4,220,000		4,220,000
Accumulated Amortization	(683,000)		(604,000)
Net Carrying Amount	3,537,000		3,616,000
Software.
Gross Carrying Amount	80,000		80,000
Accumulated Amortization	$ (80,000)		$ (80,000)

3. BALANCE SHEET DETAIL - Amortization expense (Details) $ in Thousands	Jun. 30, 2016 USD ($)
Estimated future amortization expense
2017	$ 327
2018	313
2019	247
2020	233
2021	233
Thereafter	2,198
Total	$ 3,551

3. BALANCE SHEET DETAIL - Accrued expenses and other liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Accrued expenses and other liabilities:
Accrued compensation	$ 2,369	$ 3,082
Escrow indemnity accrual	484
Accrued professional fees	173	83
Accrued commissions	363	284
Accrued income taxes	373	15
Other accrued expenses	649	934
Total Accrued Expenses and Other Liabilities	$ 4,411	$ 4,398

3. BALANCE SHEET DETAIL - Other LT accrued liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Other accrued expenses:
Contingent consideration	$ 5,895	$ 5,856
Escrow indemnity accrual		484
Other long term accrued liabilities	261	152
Other accrued expenses	$ 6,156	$ 6,492

4. GOODWILL (Details)	3 Months Ended
4. GOODWILL (Details)	Jun. 30, 2016 USD ($) segment	Mar. 31, 2016 USD ($)
Goodwill.
Goodwill	$ 8,030,000	$ 8,030,000
Goodwill impairment		$ 0
Number of Reportable Segments \| segment	1

5. INCOME TAXES (Details) - USD ($)	3 Months Ended
5. INCOME TAXES (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016	Dec. 31, 2015
Unrecognized tax benefits, current	$ 0		$ 0
Unrecognized tax benefits, noncurrent	251,000		116,000
Deferred tax assets unrecognized tax benefit	2,011,000
Possible reduction in uncertain tax benefits	438,000
Net deferred tax assets	7,600,000		$ 6,400,000
Prepaid tax asset	$ 636,000
Effective annual income tax rate (as a percentage)	(7.00%)	2.60%
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Lapses during the current year applicable to statutes of limitations	$ 71,000
MikaMonu
Net deferred tax liability				$ 821,000

6. FINANCIAL INSTRUMENTS (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Fair value measurements
Money market funds	$ 4,914	$ 6,611
Marketable securities	31,131	34,297
Assets	36,045	40,908
Level 1
Fair value measurements
Money market funds	4,914	6,611
Assets	4,914	6,611
Level 2
Fair value measurements
Marketable securities	31,131	34,297
Assets	31,131	$ 34,297
Level 3
Fair value measurements
Assets	$ 0

6. FINANCIAL INSTRUMENTS - Available for sale investments (Details) - USD ($)	3 Months Ended
	Jun. 30, 2016	Mar. 31, 2016
Available-for-sale investments
Cost	$ 31,080,000
Fair Value	$ 31,131,000
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	$ 18,000	$ 14,000
Short-term investments
Available-for-sale investments
Cost	21,713,000	23,137,000
Gross Unrealized Gains	16,000	16,000
Gross Unrealized Losses	(2,000)	(3,000)
Fair Value	21,727,000	23,150,000
Short-term investments \| State and municipal obligations
Available-for-sale investments
Cost	1,000,000	1,011,000
Fair Value	1,000,000	1,011,000
Short-term investments \| Corporate notes
Available-for-sale investments
Cost	4,265,000	5,680,000
Gross Unrealized Losses	(2,000)	(3,000)
Fair Value	4,263,000	5,677,000
Short-term investments \| Certificates of deposits
Available-for-sale investments
Cost	11,750,000	11,750,000
Gross Unrealized Gains	14,000	12,000
Fair Value	11,764,000	11,762,000
Short-term investments \| Foreign government obligations
Available-for-sale investments
Cost	2,698,000	2,695,000
Gross Unrealized Gains	2,000	3,000
Fair Value	2,700,000	2,698,000
Short-term investments \| Agency bonds
Available-for-sale investments
Cost	2,000,000	2,001,000
Gross Unrealized Gains		1,000
Fair Value	2,000,000	2,002,000
Long-term investment
Available-for-sale investments
Cost	9,367,000	11,118,000
Gross Unrealized Gains	37,000	30,000
Gross Unrealized Losses		(1,000)
Fair Value	9,404,000	11,147,000
Long-term investment \| Corporate notes
Available-for-sale investments
Cost	558,000	558,000
Gross Unrealized Gains	2,000	1,000
Fair Value	560,000	559,000
Long-term investment \| Certificates of deposits
Available-for-sale investments
Cost	6,750,000	8,500,000
Gross Unrealized Gains	30,000	24,000
Gross Unrealized Losses		(1,000)
Fair Value	6,780,000	8,523,000
Long-term investment \| Foreign government obligations
Available-for-sale investments
Cost	1,059,000	1,060,000
Gross Unrealized Gains	1,000	1,000
Fair Value	1,060,000	1,061,000
Long-term investment \| Agency bonds
Available-for-sale investments
Cost	1,000,000	1,000,000
Gross Unrealized Gains	4,000	4,000
Fair Value	$ 1,004,000	$ 1,004,000

6. FINANCIAL INSTRUMENTS - Contractual maturities (Details) $ in Thousands	Jun. 30, 2016 USD ($)
FINANCIAL INSTRUMENTS
Maturing within one year, Cost	$ 21,713
Maturing in one to three years, Cost	9,367
Total	31,080
Maturing within one year, Fair Value	21,727
Maturing in one to three years, Fair Value	9,404
Fair Value	$ 31,131

7. COMMITMENTS AND CONTINGENCIES - Royalties and Product Warranties (Details)	3 Months Ended
	Jun. 30, 2016
Product warranties
Warranty period	3 years

8. STOCK- BASED COMPENSATION - Stock options activities (Details)	3 Months Ended
	Jun. 30, 2016 USD ($) $ / shares shares
STOCK- BASED COMPENSATION
Shares available for grant, Beginning	6,432,063
Options reserved (in shares)	1,085,818
Granted (in shares)	(160,590)
Forfeited (in shares)	1,501
Shares available for grant, Ending	7,358,792
Number of Shares Underlying Options Outstanding
Balance at the beginning of the period (in shares)	7,625,705
Granted (in shares)	160,590
Exercised (in shares)	(20,200)
Forfeited (in shares)	(2,101)
Balance at the end of the period (in shares)	7,763,994
Options vested and exercisable (in shares)	5,417,275
Options vested and expected to vest (in shares)	7,719,468
Weighted Average Remaining Contractual Life
Options vested and exercisable	3 years 6 months 29 days
Options vested and expected to vest	5 years
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share) \| $ / shares	$ 5.08
Granted (in dollars per share) \| $ / shares	3.60
Exercised (in dollars per share) \| $ / shares	3.39
Forfeited (in dollars per share) \| $ / shares	5.82
Balance at the end of the period (in dollars per share) \| $ / shares	5.05
Options vested and exercisable (in dollars per share) \| $ / shares	5.03
Options vested and expected to vest (in dollars per share) \| $ / shares	$ 5.05
Intrinsic Value
Exercised (in dollars) \| $	$ 10,208
Options vested and exercisable (in dollars) \| $	1,043,486
Options vested and expected to vest (in dollars) \| $	$ 1,365,215

8. STOCK- BASED COMPENSATION - Options outstanding by exercise price (Details) - $ / shares	3 Months Ended
	Jun. 30, 2016	Mar. 31, 2016
Options outstanding by exercise price
Exercise Price (in dollars per share)	$ 5.05	$ 5.08
Number of Shares Underlying Options Outstanding (in shares)	7,763,994
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.05
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 7 days
Options Exercisable, Number Vested and Exercisable (in shares)	5,417,275
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 5.03
$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)	885,004
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.17
Options Outstanding, Weighted Average Remaining Contractual Life	4 years 10 months 2 days
Options Exercisable, Number Vested and Exercisable (in shares)	576,194
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.04
$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)	1,269,559
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 3.79
Options Outstanding, Weighted Average Remaining Contractual Life	3 years 8 months 23 days
Options Exercisable, Number Vested and Exercisable (in shares)	1,108,969
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 3.82
$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)	934,778
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 4.41
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 6 months
Options Exercisable, Number Vested and Exercisable (in shares)	778,140
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 4.40
$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 7 months 28 days
Options Exercisable, Number Vested and Exercisable (in shares)	327,028
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 3 months
Options Exercisable, Number Vested and Exercisable (in shares)	90,829
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)	782,833
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.50
Options Outstanding, Weighted Average Remaining Contractual Life	4 months 17 days
Options Exercisable, Number Vested and Exercisable (in shares)	782,833
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)	899,830
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 5.77
Options Outstanding, Weighted Average Remaining Contractual Life	4 years 11 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)	807,758
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 6.48
Options Outstanding, Weighted Average Remaining Contractual Life	5 years 9 months 29 days
Options Exercisable, Number Vested and Exercisable (in shares)	645,179
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 6 months 4 days
Options Exercisable, Number Vested and Exercisable (in shares)	426,197
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 6.91
$9.20
Options outstanding by exercise price
Exercise Price (in dollars per share)	$ 9.20
Number of Shares Underlying Options Outstanding (in shares)	113,380
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 9.20
Options Outstanding, Weighted Average Remaining Contractual Life	4 years 7 months 2 days
Options Exercisable, Number Vested and Exercisable (in shares)	113,380
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 9.20

8. STOCK- BASED COMPENSATION - Stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Stock-based compensation expense by line item
Stock-based compensation expense	$ 443	$ 474
Other information
Income tax benefit recognized from allocation of share-based compensation expense	0	0
Windfall tax benefits recognized	0	0
Unrecognized compensation costs	$ 2,700
Weighted average period of recognition of unrecognized compensation costs	2 years 29 days
Cost of revenues
Stock-based compensation expense by line item
Stock-based compensation expense	$ 73	69
Research and development
Stock-based compensation expense by line item
Stock-based compensation expense	203	217
Selling, general and administrative
Stock-based compensation expense by line item
Stock-based compensation expense	$ 167	$ 188

8. STOCK- BASED COMPENSATION - Weighted average assumptions (Details) - $ / shares	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Stock-based compensation
Weighted average fair value per underlying share of options granted (in dollars per share)	$ 1.17	$ 1.89
Employee Consultants And Directors Stock Options
Stock-based compensation
Risk-free interest rate (as a percent)	1.26%	1.52%
Expected life	5 years	5 years
Volatility (as a percent)	34.80%	38.00%
Employee stock purchase plan
Stock-based compensation
Risk-free interest rate (as a percent)	0.38%	0.09%
Expected life	6 months	6 months
Volatility (as a percent)	39.60%	26.30%

9. SEGMENT AND GEOGRAPHIC INFORMATION (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2016 USD ($) segment	Jun. 30, 2015 USD ($)
Net revenues and long-lived assets by geographic area
Revenue, Net	$ 12,946	$ 14,025
Number of reportable business segments \| segment	1
United States
Net revenues and long-lived assets by geographic area
Revenue, Net	$ 4,825	5,948
China
Net revenues and long-lived assets by geographic area
Revenue, Net	3,232	3,798
Singapore
Net revenues and long-lived assets by geographic area
Revenue, Net	3,295	1,398
Netherlands
Net revenues and long-lived assets by geographic area
Revenue, Net	379	1,698
Rest of the world
Net revenues and long-lived assets by geographic area
Revenue, Net	$ 1,215	$ 1,183

10. ACQUISITION (Details)	Nov. 23, 2015 USD ($) employee patent	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)
Acquisition disclosure
Contingent consideration liability		$ 5,895,000	$ 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
Cash paid for acquisition	$ 4,400,000
Contingent consideration, acquisition date fair value	2,500,000
Amount of payment held in escrow	$ 484,000
Term of additional contingent payments	4 years
Discount rate (as a percent)	14.80%
Contingent consideration liability	$ 5,800,000
Assets acquired and liabilities assumed
Cash and cash equivalents	1,000
Other receivables	54,000
Property and equipment, net	10,000
Intangible assets	3,500,000
Goodwill	8,030,000
Total assets acquired	11,595,000
Accrued expenses	(10,000)
Net deferred tax liability	(821,000)
Total liabilities assumed	(831,000)
Fair value of net assets acquired	10,764,000
MikaMonu \| Patents
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
MikaMonu \| Other accrued expenses
Acquisition disclosure
Contingent consideration		5,900,000	$ 5,900,000
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
Term of additional contingent payments	10 years
MikaMonu \| Product development milestones and revenue targets \| Maximum
Acquisition disclosure
Contingent consideration		$ 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%