SUBSEQUENT EVENT

9 Months Ended

Sep. 28, 2014

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENT

On October 21, 2014, we entered into an amendment with Silicon Valley Bank, as "lender" and "agent," to amend our existing credit agreement, dated as of April 12, 2013. This amendment extends the term of our credit facility to October 12, 2017. This amendment also allows us to make a one-time request to increase the existing credit facility up to an additional $25.0 million.

Under the amendment, the advances available to us under the borrowing base formula increased to 85 percent of eligible accounts receivable and advance billings and 50 percent of eligible inventory. The amendment also lowered the "Applicable Margin," as defined in the credit agreement, with respect to our interest rate on outstanding borrowings to zero percent for ABR loans and 2.75 percent for Eurodollar loans.

The amendment also retroactively lowered our required minimum consolidated EBITDA to $2.0 million for the two consecutive quarters ended September 28, 2014; established a minimum quick ratio requirement equal to or greater than 1.00; and removed certain financial covenants when our "Available Funds," as defined in the credit agreement to be cash, cash equivalents and availability under the credit agreement, are equal to or greater than $30.0 million as of the last day of such fiscal quarter.

In connection with the amendment, we agreed to pay Silicon Valley Bank a commitment fee of $62,500 related to the extension of the term of the facility from April 12, 2016 to October 12, 2017.