8x8 2006 Annual Report Download - page 53

Download and view the complete annual report

Please find page 53 of the 2006 8x8 annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 85

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85

50
Contractual maturities of available-for-sale debt securities as of March 31, 2006 are set forth below (in thousands):
The Company has classified certain long-term investments, consisting of auction rate securities, as short-term due to
its intent not to hold them to maturity.
RESTRICTED CASH
Restricted cash at March 31, 2005 represented amounts held in certificates of deposit to support stand-by letters of
credit used as security for third party vendors.
INVENTORY
Inventory is stated at the lower of standard cost, which approximates actual cost using the first-in, first-out method,
or market. Inventory reserves are established when conditions indicate that the current replacement cost or market is
below the carrying value due to obsolescence, changes in price levels, or other causes. Reserves are established for
excess inventory generally based on inventory levels in excess of demand, as determined by management, for each
specific product. Inventory at March 31, 2006 and 2005 was comprised of the following:
PROPERTY AND EQUIPMENT
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and
amortization are computed using the straight-line method. Estimated useful lives of three years are used for
equipment and software and five years for furniture and fixtures. Amortization of leasehold improvements is
computed using the shorter of the remaining facility lease term or the estimated useful life of the improvements.
Property and equipment at March 31, 2006 and 2005 was comprised of the following:
Maintenance, repairs and ordinary replacements are charged to expense. Expenditures for improvements that extend
the physical or economic life of the property are capitalized. Gains or losses on the disposition of property and
equipment are recorded in the loss from operations.
Due within one year.................................................................................................................
.
$ 14,864
Due after one year....................................................................................................................
.
1,993
Due after five years..................................................................................................................
.
5,500
Total ......................................................................................................................................
.
$ 22,357
March 31,
2006 2005
(in thousands)
Work-in-process..........................................................................................
.
$1,192$1,267
Finished goods............................................................................................
.
546 333
$1,738$1,600
March 31,
2006 2005
(in thousands)
Machinery and computer equipment........................................................ $ 3,467 $ 3,372
Furniture and fixtures..................................................................................
.
82 121
Licensed software........................................................................................ 1,579 1,059
Leasehold improvements............................................................................ 183 172
5,311 4,724
Less: accumulated depreciation and amortization....................................
.
(2,240) (2,936)
$3,071$1,788