Derivative Financial Instruments

3 Months Ended

Jun. 30, 2011

Derivative Financial Instruments [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

(3) DERIVATIVE FINANCIAL INSTRUMENTS

The Company enters into foreign currency forward contracts in order to reduce the impact of certain foreign currency fluctuations on sales denominated in a foreign currency. Derivatives are not used for trading or speculative activities. Firmly committed transactions and the related receivables may be hedged with forward exchange contracts. Gains and losses arising from foreign currency forward contracts are recorded in other expense, net as offsets of gains and losses resulting from the underlying hedged transactions. As of June 30, 2011 and 2010, the notional amount of open foreign currency forward contracts was $2,522,000 and $6,098,000, respectively. The related unrealized gain was $1,000 and $236,000 at June 30, 2011 and 2010, respectively. There were no open foreign currency forward contracts as of March 31, 2011. We believe we do not have significant counterparty credit risks as of June 30, 2011.

The following table shows the fair value of the foreign currency forward contracts designated as hedging instruments and included in the Company’s condensed consolidated balance sheet as of June 30, 2011 and 2010 (in thousands):

	Fair Value of Derivative Instruments
		Fair Value
	Balance Sheet	June 30,		June 30,
	Location	2011		2010
Foreign currency forward contracts	Other current assets	$	1	$	236