FAIR VALUE MEASUREMENTS

6 Months Ended

Sep. 30, 2015

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

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, 2015 and March 31, 2015:

(In thousands)	September 30, 2015		March 31, 2015
Level 1 — Financial Assets
Money market funds	$	58,755	$	51,784
Treasury bills	—		5,403
Total Level 1 Financial Assets	58,755		57,187
Level 2 — Financial Assets
Corporate debentures/bonds	5,890		13,813
Government agency bonds	1,804		5,317
Total Level 2 Financial Assets	7,694		19,130
Total cash equivalents and short-term investments	$	66,449	$	76,317

Short-term investments are classified as available-for-sale and are recorded at their fair market values using the specific identification method. As of September 30, 2015, all of the Company’s available-for-sale securities had contractual maturities of seven 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, 2015 and September 30, 2014. 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, 2015:
Short-term investments:
Corporate debentures/bonds	$	5,890	$	—	$	—	$	5,890
Government agency bonds	1,804		—		—		1,804
Total short-term investments	$	7,694	$	—	$	—	$	7,694
Cash equivalents:
Money market funds	$	58,755	—		—		$	58,755
Total cash equivalents	$	58,755	$	—	$	—	$	58,755

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2015:
Short-term investments:
Corporate debentures/bonds	$	13,823	$	—	$	(10	)	$	13,813
Government agency bonds	5,315		2		—			5,317
Treasury bills	5,400		3		—			5,403
Total short-term investments	$	24,538	$	5	$	(10	)	$	24,533
Cash equivalents:
Money market funds	$	51,784	$	—	$	—		$	51,784
Total cash equivalents	$	51,784	$	—	$	—		$	51,784