8x8 2008 Annual Report Download - page 52

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instances is one year. The Company recognizes royalties upon notification of sale by its licensees. Revenue from consulting,
training, and development services is recognized as the services are performed.
CASH, CASH EQUIVALENTS AND INVESTMENTS
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.
Management determines the appropriate categorization of its investments at the time of purchase and reevaluates the
classification at each reporting date. The cost of the Company's investments is determined based upon specific identification.
The Company’ s investments are comprised of corporate debt, federal agency securities and money market funds. At March 31,
2008 and 2007, all investments were classified as available-for-sale and reported at fair value, based upon quoted market
prices, with unrealized gains and losses, net of related tax, if any, included in other comprehensive loss and disclosed as a
separate component of stockholders’ equity. Realized gains and losses on sales of all such investments are reported within the
caption of other income, net in the statements of operations and computed using the specific identification method. The
Company’ s investments in marketable securities are monitored on a periodic basis for impairment. In the event that the
carrying value of an investment exceeds its fair value and the decline in value is determined to be other-than-temporary, an
impairment charge is recorded and a new cost basis for the investment is established.
Available-for-sale investments were (in thousands):
Gross
Amortized Unrealized Estimated
As of March 31, 2008 Costs Loss Fair Value
Money market funds $ 8,775 $ - $ 8,775
Corporate deb
t
2,583 (1) 2,582
Federal agency securities 794 6 800
Total available-for-sale investments $ 12,152 $ 5 $ 12,157
Reported as (in thousands):
Cash and cash equivalents $ 8,775
Short-term investments 3,382
Total $ 12,157
Gross
Amortized Unrealized Estimated
As of March 31, 2007 Costs Loss Fair Value
Money market funds $ 4,585 $ - $ 4,585
Commercial pape
r
499 - 499
Federal agency securities 2,500 (3) 2,497
Auction rate securities 2,700 - 2,700
Total available-for-sale investments $ 10,284 $ (3) $ 10,281
Reported as (in thousands):
Cash and cash equivalents $ 5,084
Short-term investments 5,197
Total $ 10,281
Contractual maturities of money market, corporate debt and federal agency securities as of March 31, 2008 are set forth below
(in thousands):
Due within one yea
r
$ 12,157
Total
$
12,157
50