Note 5 - Investments in and Notes Receivable from Privately Held Companies

3 Months Ended

May 03, 2014

Investment Holdings [Abstract]

Investment Holdings [Text Block]

5.             Investments in and notes receivable from privately held companies

The following table sets forth the value of investments in and notes receivable from privately-held companies (in thousands): 

	May 3, 2014		February 1, 2014
Equity investments:
Issuer A	$	2,000	$	2,000
Issuer B		1,000		1,000
Issuer C		730		730
Issuer D		142		143
Total equity investments		3,872		3,873
Notes receivable:
Issuer A		170		230
Total notes receivable		170		230
Total equity investments and notes receivable	$	4,042	$	4,103

Equity investments

During fiscal 2009, we purchased shares of preferred stock in a privately-held venture capital funded technology company (“Issuer A”) at a total investment cost of $1.0 million. In the fourth quarter of fiscal 2010, we purchased additional shares of preferred stock in Issuer A at a cost of $1.0 million.

In the third quarter of fiscal 2011, we purchased shares of preferred stock in another privately-held technology company (“Issuer B”) at a total investment cost of $1.0 million.

In the fourth quarter of fiscal 2011, we purchased shares of preferred stock in another privately-held technology company (“Issuer C”) at a total investment cost of $1.0 million. In the fourth quarter of fiscal 2014, we recorded an impairment charge of $0.3 million on this investment as we concluded the impairment to be other-than-temporary.

In the third quarter of fiscal 2012, we made an equity investment of $0.1 million in a privately-held joint venture (“Issuer D”).

Notes receivable from privately-held companies

In November 2010, we loaned $1.0 million to Issuer A and received a secured promissory note. This promissory note is secured by the assets of Issuer A, bears interest at a rate of 5% per annum and is scheduled to be fully repaid during the second quarter of fiscal 2015.

As of May 3, 2014 and February 1, 2014, our notes receivable from privately-held companies were valued at $0.2 million, representing their cost. We made the above-described investments because we viewed the issuer as either having strategic technology or a business that would complement our technological capabilities or help create an opportunity for us to sell our chipset solutions. We analyze each investment quarterly for evidence of impairment.

Our President and Chief Executive Officer is a member of the Board of Directors of two of the companies we have invested in. In the case of Issuer B, the investment transaction was negotiated without the personal involvement of the executive officer who had a personal interest in the transaction.