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Commitments and Contingencies

3 Months Ended

Nov. 30, 2012

5. Commitments and Contingencies

Operating Lease Agreements—The Company has several operating leases with unrelated parties, primarily for land, plant and office spaces in Taiwan, which are noncancellable and which expire at various dates between January 2013 and December 2020. Lease expense related to these noncancellable operating leases was $202 thousand and $200 thousand during the three months ended November 30, 2012 and 2011. Lease expense is recognized on a straight-line basis over the term of the lease. The aggregate future noncancellable minimum rental payments for the Company’s operating leases as of November 30, 2012 consisted of the following (in thousands):

Years Ending August 31,	Operating Leases
Remainder of 2013	$	669
2014	867
2015	945
2016	888
2017	272
Thereafter	246
Total	$	3,887

Purchase Obligations—The Company had purchase commitments for property, plant and equipment in the amount of $3.7 million as of both November 30, 2012 and August 31, 2012.

Litigation—From time to time, the Company is subject to legal proceedings and claims arising in the ordinary course of business. There were no material pending legal proceedings and claims as of November 30, 2012 and, to the best knowledge of management, there were none threatened as of November 30, 2012.