CASH, CASH EQUIVALENTS AND INVESTMENTS

9 Months Ended

Sep. 30, 2011

CASH, CASH EQUIVALENTS AND INVESTMENTS [Abstract]

CASH, CASH EQUIVALENTS AND INVESTMENTS

3. CASH, CASH EQUIVALENTS AND INVESTMENTS

The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. The Company classifies its remaining investments as available-for-sale. These securities are carried at fair market value, with unrealized gains and losses reported in shareholders' equity. Gains or losses on securities sold are based on the specific identification method.

Investments at September 30, 2012 consisted of the following (in thousands):

	Amortized	Unrealized		Aggregate Fair
Investment Classification	Cost	Gains	(Losses)	Market Value
September 30, 2012 -
Certificates of deposit	$   7,478	$   2	$     (4)	$     7,476
Commercial paper	2,998	-	-	2,998
Corporate bonds	147,852	44	(13)	147,883
U.S. government bonds	3,097	-	-	3,097
Convertible notes	4,300	-	-	4,300
	$165,725	$  46	$ (17)	$165,754

Investments at December 31, 2011 consisted of the following (in thousands):

	Amortized	Unrealized		Aggregate Fair
Investment Classification	Cost	Gains	(Losses)	Market Value
December 31, 2011 -
Certificates of deposit	$5,797	$   -	$(5)	$5,792
Corporate bonds	223,260	43	(25)	223,278
U.S. government bonds	5,224	-	-	5,224
	$234,281	$43	$(30)	$234,294

On July 13, 2012, the Company entered into a three-year joint development agreement with Plextronics, Inc. (Plextronics) a private company engaged in printed solar, lighting and other electronics related research and development.  Under the joint development agreement, the Company is committed to pay $1 million per year to Plextronics for three years.  In addition, the Company invested $4 million in Plextronics through the purchase of a convertible promissory note.  The Company also received warrants in connection with the purchase of the convertible note.  The note accrues interest at the rate of 3% per year and is due and payable by June 30, 2013.  The note is included in short-term investments on the consolidated balance sheet.  The Company has the option to convert the note into shares of Plextronics' preferred stock at a specified conversion price.

On July 17, 2012, the Company invested $300,000 in a private company engaged in plasma processing equipment research and development (the Borrower) through the purchase of a convertible promissory note. The note accrues interest at the rate of 5% per year and is due and payable by August 1, 2015.  The note is included in investments on the consolidated balance sheet.  The Company has the option to convert the note into shares of the Borrower's preferred stock at a specified conversion price.

All short-term investments held at September 30, 2012 will mature within one year. All long-term investments held at September 30, 2012 will mature in more than one year.