Borrowings

12 Months Ended

May 31, 2012

Borrowings [Abstract]

Borrowings

Note 5: Borrowings

On February 3, 2012, we entered into a fifth amendment to commercial credit agreement (“Credit Agreement Amendment”) with an institutional lender. The Credit Agreement Amendment amends the commercial credit agreement dated September 29, 2008 (the “Commercial Credit Agreement”), pursuant to which the lender provides us with a revolving line of credit. The Credit Agreement Amendment amends the Commercial Credit Agreement by (i) increasing the permitted maximum aggregate outstanding principal amount under the Commercial Credit Agreement from $10,000 to $25,000; (ii) increasing the letter of credit sublimits from $5,000 to $10,000; (iii) extending the term and maturity date of the Commercial Credit Agreement from October 1, 2012 to October 1, 2015; (iv) amending the interest rate provisions in the loan agreement such that the margin on loans bears interest at the reference rate minus 0.25% or LIBOR plus 1.50%; (v) amending the quick ratio financial covenant; and (vi) amending the minimum tangible net worth financial covenant. We are in compliance with all loan covenants at May 31, 2012.

During fiscal 2012, we borrowed and repaid $3,250 under the Commercial Credit Agreement. We do not currently have any loan balance under the Commercial Credit Agreement.