Certain Financial Statement Information

Accounts receivable, net:



	March 31,
	2015			2014
	(In thousands)
Accounts receivable	$	12,709		$	25,629
Less: allowance for bad debts	(302		)	(451		)
	$	12,407		$	25,178

Inventories, net:



	March 31,
	2015		2014
	(In thousands)
Finished goods	$	15,310	$	9,375
Work in process	5,377		6,510
Raw materials	2,827		3,061
	$	23,514	$	18,946

Other current assets:



	March 31,
	2015		2014
	(In thousands)
Prepaid expenses	$	14,847	$	10,978
Executive deferred compensation assets	1,004		1,035
Proceeds receivable from sale of strategic investment	—		3,353
Other	989		1,433
	$	16,840	$	16,799

Property and equipment:



	Useful Life	March 31,
	Useful Life	2015			2014
	(In years)	(In thousands)
Machinery and equipment*	3-5	$	37,286		$	44,503
Leasehold improvements	1-5	9,909			11,574
Computers, office furniture and equipment*	3-5	32,902			43,365
		80,097			99,442
Less: accumulated depreciation and amortization*		(63,348		)	(78,696		)
		$	16,749		$	20,746


*	During the fiscal year ended March 31, 2015, the Company wrote-off fully depreciated assets with an acquired cost of $24.0 million. Also the Company wrote-off of a capitalized mask of $2.6 million as a result of recent restructuring. Refer to Note 7, Restructuring, to the Consolidated Financial Statements for additional information.

Goodwill and purchased intangibles:

Goodwill is as follows:



	March 31,
	2015		2014
	(In thousands)
Goodwill	$	11,425	$	11,425

Purchase-related intangibles are as follows:



	March 31, 2015								March 31, 2014
	Gross		Accumulated Amortization and Impairments			Net		Weighted average remaining useful life	Gross		Accumulated Amortization and Impairments			Net		Weighted average remaining useful life
	(In thousands)							(In years)	(In thousands)							(In years)
Developed technology/in-process research and development	$	425,000	$	(425,000	)	$	—	0.0	$	425,000	$	(425,000	)	$	—	0.0
Customer relationships	6,330		(6,330		)	—		0.0	6,330		(6,225		)	105		0.4
Patents/core technology rights/trade name	62,306		(62,306		)	—		0.0	62,306		(62,306		)	—		0.0
	$	493,636	$	(493,636	)	$	—		$	493,636	$	(493,531	)	$	105

Other Assets:



	March 31,
	2015		2014
	(In thousands)
Non-current portion of prepaid expenses	$	1,974	$	4,235
Strategic investments*	—		3,000
Other	$	596	$	519
	$	2,570	$	7,754

*During the fiscal year ended March 31, 2015, the Company recorded other-than-temporary impairment charges of $3.0 million with respect to two of its strategic investments. Refer to Note 1, Summary of Significant Accounting Policies, to the Consolidated Financial Statements for details.

Other accrued liabilities:



	March 31,
	2015		2014
	(In thousands)
Employee related liabilities	$	1,454	$	1,733
Executive deferred compensation	1,025		1,314
Income taxes	1,311		962
Professional fees	515		1,259
Other	3,339		5,609
	$	7,644	$	10,877

Warranty Reserves:

The Company’s products typically carry a one-year warranty. The Company establishes reserves for estimated product warranty costs at the time revenue is recognized. Although the Company engages in extensive product quality programs and processes, its warranty obligation is affected by product failure rates, use of materials and service delivery costs incurred in correcting any product failure. Should actual product failure rates, use of materials or service delivery costs differ from the Company’s estimates, additional warranty reserves could be required, which could reduce its gross margin.

The following table summarizes warranty reserve activity:



	March 31,
	2015			2014
	(In thousands)
Beginning balance	$	199		$	220
Additions during the period	85			58
Settlements and expirations	(121		)	(79		)
Change in estimates	31			—
Ending balance	$	194		$	199

Net realized gain on short-term investments and interest income, net:



	Fiscal Years Ended March 31,
	2015		2014		2013
	(In thousands)
Net realized gain on short-term investments	1,353		3,360		1,391
Interest income, net	1,411		1,692		2,347
Impairments of short-term investments and marketable securities	—		—		(1,143		)
	$	2,764	$	5,052	$	2,595

Other (expense) income, net:



	Fiscal Years Ended March 31,
	2015			2014		2013
	(In thousands)
Impairment of strategic investments	$	(3,000	)	$	—	$	(2,250	)
Impairment of notes receivable and other assets	—			—		(1,800		)
Net (loss) gain on disposals of property	(27		)	67		(21		)
Other, net	(29		)	287		1,677
	$	(3,056	)	$	354	$	(2,394	)

Net loss per share:

Shares used in basic net loss per share are computed using the weighted average number of common shares outstanding during each period. Shares used in diluted net loss per share include the dilutive effect of common shares potentially issuable upon the exercise of stock options and vesting of RSUs. The reconciliation of shares used to calculate basic and diluted net loss per share consists of the following (in thousands, except per share data):



	Fiscal Years Ended March 31,
	2015			2014			2013
Net loss	$	(52,058	)	$	(5,694	)	$	(134,115	)
Shares used in net loss per share computation:
Weighted average common shares outstanding, basic	78,814			72,897			65,258
Net effect of dilutive common share equivalents	—			—			—
Weighted average common shares outstanding, diluted	78,814			72,897			65,258
Basic and diluted net loss per share	$	(0.66	)	$	(0.08	)	$	(2.06	)

The effect of dilutive securities (comprised of options and RSUs) totaling 1.4 million, 1.5 million and 0.8 million shares for the fiscal years ended March 31, 2015, 2014 and 2013, respectively, has been excluded from the diluted net loss per share computation since the Company incurred losses in the periods presented and their effect would be antidilutive.