Fair Value of Financial Assets and Liabilities

9 Months Ended

Jan. 31, 2013

Fair Value of Financial Assets and Liabilities

3. Fair Value of Financial Assets and Liabilities

The following table summarizes the Company’s cash and cash equivalents as of January 31, 2013 and April 30, 2012 (in thousands):

	January 31, 2013		April 30, 2012
Demand deposit accounts	$	14,845	$	45,361
Money market funds		3		288
U.S. Treasury securities		8,997		7,499
Corporate bonds		—		21,219
Total cash and cash equivalents	$	23,845	$	74,367

The following table summarizes the Company’s short-term investments as of January 31, 2013 (in thousands):

	Cost		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
Certificates of deposit	$	11,596	$	(10	)	$	11,586
U.S. Treasury securities		70,080		(20	)		70,060
Total short-term investments	$	81,676	$	(30	)	$	81,646

The following table summarizes the Company’s short-term investments as of April 30, 2012 (in thousands):

	Cost		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
Certificates of deposit	$	4,510	$	(14	)	$	4,496
U.S. Treasury securities		28,126		(28	)		28,098
Corporate bonds		18,245		(5	)		18,240
Total short-term investments	$	50,881	$	(47	)	$	50,834

All short-term investments had original maturity dates of less than 12 months at January 31, 2013 and April 30, 2012.

The following table summarizes the fair value of the Company’s financial assets and liabilities that were measured on a recurring basis as of January 31, 2013 and April 30, 2012 (in thousands):

	Fair Value Measurements at January 31, 2013								Fair Value Measurements at April 30, 2012
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	3	$	—	$	—	$	3	$	288	$	—	$	—	$	288
U.S. Treasury securities		8,997		—		—		8,997		7,499		—		—		7,499
Corporate bonds		—		—		—		—		—		21,219		—		21,219
Total cash equivalents		9,000		—		—		9,000		7,787		21,219		—		29,006
Restricted cash		604		—		—		604		500		—		—		500
Short-term investments:
Certificates of deposit		—		11,586		—		11,586		—		4,496		—		4,496
Corporate bonds		—		—		—		—		—		18,239		—		18,239
U.S. Treasury securities		70,060		—		—		70,060		28,099		—		—		28,099
Total short-term investments		70,060		11,586		—		81,646		28,099		22,735		—		50,834
Total assets	$	79,664	$	11,586	$	—	$	91,250	$	36,386	$	43,954	$	—	$	80,340
Liabilities:
Contingent consideration (see Note 4)	$	—	$	—	$	4,270	$	4,270	$	—	$	—	$	—	$	—
Total liabilities	$	—	$	—	$	4,270	$	4,270	$	—	$	—	$	—	$	—

The Company measures certain assets, including property and equipment, goodwill and intangible assets, at fair value on a non-recurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired.

The Company previously classified all of its cash equivalents, restricted cash and short-term investments using Level 1 inputs. The Company has determined that the pricing methods for certain of these investments use significant other observable inputs. Accordingly, such investments held in prior periods have been presented as Level 2. The reclassification had no impact on the fair value of investments in any of the periods presented.