Note 6 - Cash, Cash Equivalents and Marketable Securities

9 Months Ended

Mar. 31, 2013

Cash and Cash Equivalents Disclosure [Text Block]

Note 6 – Cash, Cash Equivalents and Marketable Securities Recorded at Fair Value

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 re-evaluates 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 March 31, 2013 and June 30, 2012 (in thousands):

	March 31, 2013
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash & Cash Equivalents		Short-term Marketable Securities		Long-term Marketable Securities
Level 1:
Cash		376		-		-			376		376		-		-
Money Market Funds		449		-		-			449		449		-		-
U.S. Treasury Securities		2,008		1		-			2,009		-		2,009		-
Subtotal	$	2,833	$	1	$	-		$	2,834	$	825	$	2,009	$	-
Level 2:
U.S. Agency Securities		549		-		(1	)		548		-		-		548
Corporate securities		5,914		4		(5	)		5,913		-		2,488		3,425
Municipal securities		6,275		23		-			6,298		-		2,585		3,713
Asset backed securities		553		1		-			554		-		467		87
Mortgage backed securities		597		1		-			598		-		135		463
Subtotal	$	13,888	$	29	$	(6	)	$	13,911	$	-	$	5,675	$	8,236
Total	$	16,721	$	30	$	(6	)	$	16,745	$	825	$	7,684	$	8,236

	June 30, 2012
	Adjusted Cost		Unrealized Gains		Unrealized Losses			Fair Value		Cash & Cash Equivalents		Short-term Marketable Securities		Long-term Marketable Securities
Level 1:
Cash		635		-		-			635		635		-		-
Money Market Funds		6,746		-		-			6,746		6,746		-		-
U.S. Treasury Securities		2,524		-		(1	)		2,523		-		1,508		1,015
Subtotal	$	9,905	$	-		(1	)	$	9,904	$	7,381	$	1,508		1,015
Level 2:											-
U.S. Agency Securities		753		1		-			754		-		754		-
Corporate securities		2,593		5		(1	)		2,597		-		1,696		901
Municipal Securities		3,471		6		-			3,477		-		1,752		1,725
Asset backed securities		1,629		1		-			1,630		-		1,256		374
Mortgage backed securities		2,525		-		(2	)		2,523		-		169		2,354
Subtotal	$	10,971	$	13	$	(3	)	$	10,981	$	-	$	5,627	$	5,354
Total	$	20,876	$	13	$	(4	)	$	20,885	$	7,381	$	7,135	$	6,369

There were unrealized loss positions as of March 31, 2013. 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 March 31, 2013 and at June 30, 2012 (in thousands):

	Less Than 12 Months				12 Months or Greater					Total
March 31, 2013	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Agency Bonds		-		-		548		(1	)		548		(1	)
Corporate Bonds		2,488		-		3,425		(5	)		5,913		(5	)
Total	$	2,488	$	-	$	3,973	$	(6	)	$	6,461	$	(6	)

	Less Than 12 Months					12 Months or Greater					Total
June 30, 2012	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(In thousands)
US Treasury obligations and direct obligations of U.S. Government agencies		2,262		—			1,015		(1	)		3,277		(1	)
Corporate bonds		1,696		—			901		(1	)		2,597		(1	)
Government Sponsored Enterprise collateralized mortgage obligations		169		(1	)		2,354		(1	)		2,523		(2	)
Total	$	4,127	$	(1	)	$	4,270	$	(3	)	$	8,397	$	(4	)

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 nine months ended March 31, 2013 and 2012 was $47,000 and $54,000, respectively. The gain in net unrealized gain on available-for-sale securities that has been included in the other comprehensive income of shareholders’ equity during the nine months ended March 31, 2013 was $14,000. The loss in net unrealized gain on available-for-sale securities that has been included in the other comprehensive income of shareholders’ equity during the nine months ended March 31, 2012 was $19,000.