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Short-Term And Long-Term Obligations
3 Months Ended
Sep. 30, 2011
Short-Term And Long-Term Obligations [Abstract] 
Short-Term And Long-Term Obligations

Note 9. Short-term and Long-term Obligations

Long-term obligations consisted of the following (in thousands):

 

     September 30,
2011		     June 30,
2011		  

Line of credit

    $ 17,141      $ 14,554   

Building loans

      13,459        13,597   

Capital leases

      77        86   
  

 

 

    

 

 

  

Total

      30,677        28,237   

Current portion

      (591 )     (591 )
  

 

 

    

 

 

  

Long-term portion

    $ 30,086      $ 27,646   
  

 

 

    

 

 

  

In June 2010, the Company obtained a revolving line of credit totaling $25,000,000 that matures on June 15, 2013 with an interest rate at the LIBOR rate plus 1.50% per annum. The Company used $18,553,000 of the line of credit to purchase three buildings in San Jose, California. The loan is secured by all the Company's assets except for the three buildings purchased in San Jose, California. In December 2010, the Company repaid $13,854,000 of the line of credit by obtaining a new term loan from another bank for $13,875,000 and the remaining $4,699,000 of the line of credit has been extended to be paid-off by June 15, 2013. The term loan is secured by the three buildings purchased in San Jose, California in June 2010 and the principal and interest are payable monthly through October 1, 2013 with an interest rate at the LIBOR rate plus 1.75% per annum. The LIBOR rate was 0.22% at September 30, 2011.

In March 2011, the Company drew an additional $9,855,000 from the revolving line of credit with an interest rate equal to the lender's established interest rate which is adjusted monthly and paid $9,195,000 for a deposit to purchase land in Taiwan that is adjacent to the land that was purchased in August 2010. The title to the land in Taiwan is expected to transfer in the first half of fiscal year 2012. In August and September 2011, the Company also drew an additional $3,156,000 from the revolving line of credit for the construction of facilities in Taiwan. The interest rate was 1.64% at September 30, 2011 and June 30, 2011.

As of September 30, 2011 and June 30, 2011, the total outstanding borrowings under these loans were $30,600,000 and $28,151,000, respectively. As of September 30, 2011, the unused revolving line of credit was $7,859,000 and the Company was in compliance with the financial covenants associated with these loans.

As of September 30, 2011 and June 30, 2011, the total assets except for the three buildings purchased in San Jose, California in June 2010 collateralizing the line of credit were $469,963,000 and $446,347,000, respectively. As of September 30, 2011, the gross cost and net book value of the land, building and related improvements collateralizing the term loan were $18,503,000 and $18,216,000, respectively.

In August 2011, the Company entered into an amendment to the credit agreement with Bank of America, N.A. which permits the Company to make investments in its wholly-owned subsidiaries or a non-wholly-owned subsidiary if the aggregate amount of the Company's investments in that subsidiary never exceeds an amount equal to 5% of the Company's total consolidated assets.

In October 2011, the Company entered into a second amendment to the credit agreement with Bank of America, N.A. which provided for (i) a $40,000,000 revolving line of credit facility that replaced the existing $25,000,000 revolving line of credit and (ii) a five-year $14,000,000 term loan facility to pay off the outstanding term loan of $13,412,500. The term loan is secured by the three buildings purchased in San Jose, California in June 2010 and the principal and interest are payable monthly through September 30, 2016 with an interest rate at the LIBOR rate plus 1.50% per annum. The interest rate for the revolving line of credit is at the LIBOR rate plus 1.25% per annum.

In October 2011, the Company also obtained a revolving line of credit from China Trust Bank totaling $11,150,000 that matures on July 31, 2012 with an interest rate equal to the lender's established interest rate plus 0.5% which is adjusted monthly. In addition, the Company drew $4,481,000 from this revolving line of credit with an interest rate at 1.44% per annum.