8x8 2007 Annual Report Download - page 53

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Gross
Amortized Unrealized Estimated
As of March 31, 2006 Costs Loss Fair Value
Money market funds $ 3,663 $ - $ 3,663
Commercial pape
r
997 - 997
Certificates of deposi
t
250 - 250
Federal agency securities 4,499 (15) 4,484
Auction rate securities 5,500 - 5,500
Corporate bonds 7,483 (20) 7,463
Total available-for-sale investments $ 22,392 $ (35) $ 22,357
Reported as (in thousands, restated):
Cash and cash equivalents $ 5,659
Short-term investments 14,705
Long-term investments 1,993
Total $ 22,357
Contractual maturities of money market, federal agency and auction rate securities as of March 31, 2007 are set forth below (in
thousands):
Due within one yea
r
$ 7,581
Due after one yea
r
-
Due after five years 2,700
Total
$
10,281
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.
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, 2007 and 2006 was comprised of the following:
2007 2006
Work-in-process $ 1,919 $ 1,192
Finished goods 710 546
$ 2,629 $ 1,738
(in thousands)
March 31,
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, 2007 and 2006 was
comprised of the following:
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