Note 9. Long-Term Investment

12 Months Ended

Mar. 31, 2013

Investment [Text Block]

NOTE 9.    LONG-TERM INVESTMENT

Our long-term investment consists of our investment in Skypoint Telecom Fund II (US), L.P. (“Skypoint Fund”). Skypoint Fund is a venture capital fund that invested primarily in private companies in the telecommunications and/or networking industries. We account for this non-marketable equity investment under the cost method. We periodically review and determine whether the investment is other-than-temporarily impaired, in which case the investment is written down to its impaired value.

As of the dates indicated below, our long-term investment balance, which is included in the “Other non-current assets” line item on the consolidated balance sheets was as follows (in thousands):

	Fiscal Years Ended
	March 31, 2013		April 1, 2012
Beginning balance	$	1,273	$	1,563
Contributions		15		114
Capital distributions		—		(404	)
Ending balance	$	1,288	$	1,273

The carrying amount of $1.3 million as of March 31, 2013 reflects the net of the capital contributions, capital distributions and cumulative impairment charges. We have made $4.8 million in capital contributions to Skypoint Fund since we became a limited partner in July 2001. During the first quarter of fiscal year 2013, we contributed $15,000 to the fund and the limited partners of the Skypoint Fund agreed to extend the term of the Skypoint Fund for one additional year. As of March 31, 2013, we do not have any further capital commitments.

In the third quarter of fiscal year 2012, Skypoint Fund informed us of the sale of one of the portfolio companies in the fund. Our distribution from the sale is approximately $404,000, of which $76,000 will be held in escrow until May 18, 2013. In accordance with the standard related to accounting for cost method investments, we recorded the distributions on the cost basis and reduced the carrying value of our investment in the Skypoint Fund.

Impairment

We evaluate our long-term investment for impairment on an annual basis or whenever events and changes in circumstances suggest that the carrying amount may not be recoverable. We conduct our annual impairment analysis in the fourth quarter of each fiscal year by comparing the carrying amount to the fair value of the underlying investments. If the carrying amount exceeds its fair value, long term-investment is considered impaired and a second step is performed to measure the amount of impairment loss. We analyzed the fair value of the underlying investments of Skypoint Fund and as a result, no impairment was recorded for fiscal year 2013, 2012 or 2011.