Investments

12 Months Ended

Dec. 31, 2012

Investments [Abstract]

INVESTMENTS

3. INVESTMENTS

The Company invests available cash primarily in investment grade commercial paper, corporate notes and government securities. The Company’s short-term investments balance of $24.4 million as of December 31, 2012 is comprised of U.S. Treasury securities of $3.5 million, corporate notes and bonds of $4.6 million, commercial paper of $7.0 million, FDIC guaranteed certificates of deposit of $6.5 million and common stock of $2.8 million. The Company’s investments are classified as available-for-sale securities and are carried at fair market value with unrealized gains and losses recorded in accumulated other comprehensive income (loss).

The Company’s long-term investment at December 31, 2011 consisted of a $2.0 million investment in Peregrine Semiconductor, Corp. (a customer) Series D-1 Preferred shares and was accounted for as a cost method investment. In August 2012, that investment was converted to common stock which is currently held by the Company as a short term investment as of December 31, 2012.

The following table presents the amortized cost, and gross unrealized gains and losses on all securities at December 31, 2012:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Short-term Investments:
U.S. Treasury securities and agency	$	3,509	$	—	$	—	$	3,509
FDIC Guaranteed certificates of deposit		6,453		—		6		6,447
Common stock		2,000		806		—		2,806
Corporate Notes/Bonds		4,606		—		4		4,602
Commercial Paper		6,999		—		2		6,997
Total short-term investments	$	23,567	$	806	$	12	$	24,361

The following table presents the amortized cost, and gross unrealized gains and losses on all securities at December 31, 2011:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Short-term Investments:
U.S. Treasury securities and agency	$	4,500	$	—	$	—	$	4,500
Corporate Notes/Bonds		37,085		—		37		37,048
Commercial Paper		8,992		—		12		8,980
Total short-term investments	$	50,577	$	—	$	49	$	50,528
Long-term Investments:
Peregrine Semiconductor, Corp. Series D-1 Preferred shares	$	2,000	$	—	$	—	$	2,000

The Company values its investments at fair value, defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

• Level 1—Quoted prices in active markets for identical assets or liabilities.

• Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company’s fixed income available-for-sale securities consist of high-quality, investment grade commercial paper, FDIC guaranteed certificates of deposits, common stock, corporate notes and government securities. The Company values these securities based on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. The valuation techniques used to measure the fair value of the Company’s financial instruments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models, such as discounted cash flow techniques.

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2012:

	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Money market funds	$	11,644	$	—	$	—	$	11,644
Investments:
Available-for-sales securities—current:
U.S. Treasury securities and agency		—		3,509		—		3,509
FDIC Guaranteed certificates of deposit		—		6,447		—		6,447
Common stock		2,806		—		—		2,806
Corporate notes/bonds		—		4,602		—		4,602
Commercial paper		—		6,997		—		6,997
Total	$	14,450	$	21,555	$	—	$	36,005

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2011:

	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Money market funds	$	839	$	—	$	—	$	839
Investments:
Available-for-sales securities— current:
U.S. Treasury securities and agency		—		4,500		—		4,500
Corporate notes/bonds		—		37,048		—		37,048
Commercial paper		—		8,980		—		8,980
Total	$	839	$	50,528	$	—	$	51,367

In addition to the debt securities noted above, the Company had approximately $7.9 million and $3.5 million of time deposits included in cash and cash equivalents as of December 31, 2012 and 2011, respectively.