Note 6 - Cash, Cash Equivalents and Marketable Securities

3 Months Ended

Sep. 30, 2011

Cash, Cash Equivalents, and Marketable Securities [Text Block]

Note 6 – Cash, Cash Equivalents and Marketable Securities

All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. The Company’s marketable debt securities have been classified and accounted for as available-for-sale. Management determines the appropriate classification of its investments at the time of purchase and reevaluates the available-for-sale designations as of each balance sheet date. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Marketable debt securities with maturities of 12 months or less are classified as short-term and marketable debt securities with maturities greater than 12 months are classified as long-term.

The following tables summarize the Company’s available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short-term or long-term marketable securities as of September 30, 2011 and June 30, 2011 (in thousands):

	September 30, 2011
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash & Cash Equivalents		Short-term Marketable Securities		Long-term Marketable Securities
Cash		540							540		540
Level 1:
Money Market Funds		1,578							1,578		1,578
U.S. Treasury Securities		1,432		5		-			1,437				1,115		322
Subtotal	$	3,010	$	5	$	-		$	3,015	$	2,118	$	1,115	$	322
Level 2:
U.S. Agency Securities		5,508		9		-			5,517				4,756		761
Corporate securities		4,231		3		(8	)		4,226		1,182		2,295		749
Municipal securities		1,592		3		-			1,595		431		317		847
Asset backed securities		2,930		-		-			2,930				623		2,307
Mortgage backed securities		3,897		5		-			3,902				86		3,816
Subtotal	$	18,158	$	20	$	(8	)	$	18,170	$	1,613	$	8,077	$	8,480
Total	$	21,708	$	25	$	(8	)	$	21,725	$	3,731	$	9,192	$	8,802
	June 30, 2011
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash & Cash Equivalents		Short-term Marketable Securities		Long-term Marketable Securities
Cash		865							865		865
Level 1:
Money Market Funds		4,105							4,105		4,105
U.S. Treasury Securities		2,541		8		-			2,549				2,409		140
Subtotal	$	6,646	$	8		-		$	6,654	$	4,105	$	2,409		140
Level 2:						-
U.S. Agency Securities		6,143		13		-			6,156				5,394		762
Corporate securities		3,181		5		-			3,186				2,256		930
Asset backed securities		2,964		6		-			2,970				467		2,503
Mortgage backed securities		2,826		8		(1	)		2,833				187		2,646
Subtotal	$	15,114	$	32	$	(1	)	$	15,145	$	-	$	8,304	$	6,841
Total	$	22,625	$	40	$	(1	)	$	22,664	$	4,970	$	10,713	$	6,981

There were unrealized loss positions as of September 30, 2011. The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2011 and at June 30, 2011 (in thousands):

	Less Than 12 Months					12 Months or Greater					Total
September 30, 2011	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Corporate securities		3,477		(7	)		749		(1	)		4,226		(8	)
Total	$	3,477	$	(7	)	$	749	$	(1	)	$	4,226	$	(8	)
	Less Than 12 Months					12 Months or Greater					Total
June 30, 2011	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Government Sponsored Enterprise collateralized      mortgage obligations		187		(1	)		2,646		—			2,833		(1	)
Total	$	187	$	(1	)	$	2,646	$	—		$	2,833	$	(1	)

Available-for-sale securities are recorded at market value. Unrealized holding gains and losses, net of the related income tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of shareholders’ equity until realized. Dividend and interest income are recognized when earned. Realized gains and losses for securities classified as available-for-sale are included in earnings when the underlying securities are sold and are derived using the specific identification method for determining the cost of securities sold. Loss on the sale of marketable securities for the three months ended September 30, 2011 and 2010 was $17,000 and $3,000, respectively.  The change in net unrealized gain on available-for-sale securities that has been included in the other comprehensive income of shareholder’s equity during the three months ended September 30, 2011 was $(21,000). The change in net unrealized gain on available-for-sale securities that has been included in the other comprehensive income of shareholder’s equity during the three months ended September 30, 2010 was $14,000.