FAIR VALUE MEASUREMENTS

6 Months Ended

Sep. 30, 2014

6.FAIR VALUE MEASUREMENTS

The Company has categorized its financial assets, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. If the inputs used to measure a financial instrument fall within different levels of the hierarchy, the categorization of such financial asset is based on the lowest level input that is significant to the fair value measurement of such instrument.

Financial assets are categorized based on the inputs to the valuation techniques as follows:

Level 1 - Financial assets whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access at the measurement date (examples include actively exchange-traded equity securities, listed derivatives, and most U.S. government and agency securities).

Level 2 - Financial assets whose values are based on quoted prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 2 inputs include the following:

Quoted prices for identical or similar assets or liabilities in non-active markets;

Inputs other than quoted prices that are observable for substantially the full term of the asset or liability; and

Inputs that are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability.

Level 3 - Financial assets whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s assumptions about the assumptions a market participant would use in pricing the asset or liability. The Company currently does not have any Level 3 financial assets or liabilities.

The following table presents the financial assets that the Company measures at fair value on a recurring basis, based on the fair value hierarchy as of September 30, 2014 and March 31, 2014:

(In thousands)	September 30, 2014		March 31, 2014
Level 1 — Financial Assets
Money market funds	$	34,762	$	33,623
Treasury bills	17,721		17,722
Total Level 1 Financial Assets	52,483		51,345
Level 2 — Financial Assets
Corporate debentures/bonds	31,996		41,424
Commercial paper	—		6,193
Government agency bonds	26,642		26,660
Total Level 2 Financial Assets	58,638		74,277
Total cash equivalents and short-term investments	$	111,121	$	125,622

These investments are classified as available-for-sale and are recorded at their fair market values using the specific identification method. As of September 30, 2014, all of the Company’s available-for-sale securities had contractual maturities of sixteen months or less. The Company had no material realized gains or losses on its available-for-sale securities for the three and six months ended September 30, 2014 and September 30, 2013, respectively. The unrealized holding gains or losses on these securities are included as a component of other comprehensive income (loss), as disclosed in the condensed consolidated statements of operations and comprehensive income (loss).

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2014:
Short-term investments:
Corporate debentures/bonds	$	32,032	$	1	$	(37	)	$	31,996
Government agency bonds	26,633		9		—			26,642
Treasury bills	17,704		17		—			17,721
Total short-term investments	$	76,369	$	27	$	(37	)	$	76,359
Cash equivalents:
Money market funds	$	34,762	$	—	$	—		$	34,762
Total cash equivalents	$	34,762	$	—	$	—		$	34,762

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2014:
Short-term investments:
Corporate debentures/bonds	$	38,076	$	9	$	(11	)	$	38,074
Commercial paper	6,193		—		—			6,193
Government agency bonds	26,652		10		(2		)	26,660
Treasury bills	17,708		14		—			17,722
Total short-term investments	$	88,629	$	33	$	(13	)	$	88,649
Cash equivalents:
Money market funds	$	33,623	$	—	$	—		$	33,623
Corporate debentures/bonds	3,350		—		—			3,350
Total cash equivalents	$	36,973	$	—	$	—		$	36,973

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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