Significant Accounting Policies

9 Months Ended

Jun. 30, 2011

Significant Accounting Policies

Significant Accounting Policies

2.  Significant Accounting Policies

Cash and Cash Equivalents

The Company held $15.0 million in cash and cash equivalents as of June 30, 2011.  Cash equivalents consisted of money market funds purchased with original maturities of three months or less.  Cash equivalents are measured at fair value, as described in more detail in Note 3.  The Company held cash totaling $15.3 million as of September 30, 2010.  The following table presents balances of cash and cash equivalents held as of June 30, 2011 and September 30, 2010 (in thousands):

	June 30,		September 30,
	2011		2010
Cash	$	9,000	$	15,323
Cash equivalents	6,004		—
Total cash and cash equivalents	$	15,004	$	15,323

Comprehensive Income

During each period presented, comprehensive income was equal to net income.

Significant Customers

The following tables summarize those customers which accounted for greater than 10% of the Company’s net revenues or accounts receivable:

	Net Revenues
	Three months ended				Nine months ended				Accounts Receivable at
	June 30,				June 30,				June 30,		September 30,
	2011		2010		2011		2010		2011		2010
EMC Corporation (1)	63	%	58	%	60	%	48	%	62	%	51	%
Tektronix, Inc.	8	%	20	%	10	%	22	%	6	%	16	%

(1) On April 1, 2011, EMC Corporation acquired Netwitness Corporation (“Netwitness”), which was also previously one of the Company’s customers. As a result, the Company has included revenues from sales to Netwitness after April 1, 2011 in determining net revenues from EMC Corporation. The Company has also included accounts receivable from Netwitness in determining EMC Corporation’s receivable balance as of June 30, 2011.