COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jun. 30, 2012

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 8 - COMMITMENTS AND CONTINGENCIES

Operating Leases:  The Company leases 190,489 square feet of space in Houston, Texas and Atlanta, Georgia.  The Company recognizes escalating rental payments that are quantifiable at the inception of the lease on a straight-line basis over the lease term. The leases expire from April 2014 to April 2015 with options to renew the Company's leases for warehouses for 5 years and for office space 10 years. Rent expense for the fiscal years ended June 30, 2012, 2011 and 2010 was $1.4 million, $1.5 million and $1.2 million, respectively.

Future minimum lease payments under non-cancelable operating leases as of June 30, 2012 are as follows (in thousands):

	Twelve Months Ending June 30,
	2013		2014		2015		2016		Total
Operating lease obligations	$	1,465		1,477		797		-	$	3,739

As a result of the termination of the U.S. Government contract, the Company is attempting to buy-out or sublease the Atlanta facility lease obligation.  In August 2012, the Company agreed in principle to a deal with the Atlanta facility landlord reducing its obligation under the lease for the 51,000 square foot facility by approximately 20,000 square feet effective September 1, 2012.  The sublease agreement would reduce the operating lease obligations by $87 thousand, $101 thousand and $59 thousand for the twelve months ending June 30, 2013, 2014 and 2015, respectively.

Other: The Company is also involved in legal proceedings and litigation in the ordinary course of business.  In the opinion of management, the outcome of such matters will not have a material adverse effect on the Company's consolidated financial position or consolidated results of operations.