Foreign Currency Transactions and Derivatives

3 Months Ended

Jun. 30, 2011

Foreign Currency Transactions and Derivatives [Abstract]

Foreign Currency Transactions and Derivatives

Note 3 - Foreign Currency Transactions and Derivatives

The Company is exposed to foreign exchange rate risks related to assets and liabilities that are denominated in non-local currency and current inter-company balances due to and from the Company's foreign subsidiaries. We enter into foreign currency forward contracts to sell or buy currencies with the intent of mitigating foreign exchange rate risks related to these balances. The Company did not hedge currency risk related to anticipated revenue or expenses denominated in foreign currency. All foreign exchange derivatives are recognized in the consolidated balance sheets at fair value. See note 4 of the condensed consolidated financial statements for further information.

The foreign currency net gains or (losses) for the three months ended June 30, 2011 and 2010 were $(900,000) and $573,000, respectively. The hedging transaction net (loss) from foreign exchange derivative contracts for the three months ended June 30, 2011 and 2010 was $(256,000) and $(87,000), respectively. These amounts were recorded to “administrative and general” in the condensed consolidated statements of operations.

At June 30, 2011, the Company had derivative contracts maturing through July 2011 to sell $4.5 million and purchase $11.7 million in foreign currencies and had derivative contracts maturing through April 2011 to sell $3.3 million and purchase $5.7 million in foreign currencies at March 31, 2011.