FINANCING RECEIVABLES

12 Months Ended

Mar. 31, 2011

FINANCING RECEIVABLES [Abstract]

FINANCING RECEIVABLES

5. FINANCING RECEIVABLES

The Company adopted ASU No. 2010-20 “Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses” during the third quarter of fiscal 2011. The disclosure requirements of this ASU are applicable to certain trade receivables with payment terms greater than one year and our loans receivable.

The Company allows deferred payment terms that exceed one year for customers purchasing licenses (perpetual or time-based) for our software products and the related maintenance services (“multi-year deferred payment arrangements”). A financing receivable exists when the license transfers to the customer or the related maintenance service has been provided (i.e., revenue recognition has occurred) prior to the due date of the related receivable. Our products financing receivables primarily consist of the perpetual license portion of outstanding multi-year deferred payment arrangements.

Our loans receivables consist of a note due from CareTech, Inc. (see note 7 for additional information) and ForeSee Results, Inc. (“ForeSee”). As of March 31, 2011, the ForeSee note receivable, including interest (fixed rate of 10.25%), was $8.0 million and will become due on March 30, 2012.

The following is an aged analysis of our products and loans financing receivables based on invoice date as of March 31, 2011 (in thousands):

					Greater
					than
	0-29 days		30-90 days		90 days				Total
	past		past		past				financing
	invoice date		invoice date		invoice date		Unbilled		receivables
Pass rating
Products	$	6,439	$	434	$	179	$	37,971	$	45,023
Loans								9,753		9,753
Total		6,439		434		179		47,724		54,776
Watch rating
Products		-		69		40		280		389
Total financing receivables	$	6,439	$	503	$	219	$	48,004	$	55,165

The Company performs a credit review of its financing receivables each reporting period to determine if an allowance for credit loss is required. As of March 31, 2011, the allowance for credit losses on our financing receivables is $389,000. See the “concentration of credit risk” section within note 1 for additional information on our credit risk evaluation process and changes to the total accounts receivable allowance for doubtful accounts balance.