Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

Commitments and Contingencies
3 Months Ended
Jun. 30, 2012
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
Note 10. Commitments and Contingencies


Future obligations and commitments, which are comprised of future minimum lease payments and inventory purchase obligations, decreased $0.8 million in the first quarter ended June 30, 2012 to $15.9 million, which was down from $16.7 million at March 31, 2012.


The Company and its subsidiaries are involved in various assertions, claims, proceedings and requests for indemnification concerning intellectual property, including patent infringement suits involving technologies that are incorporated in the Company’s products, which are being handled and defended in the ordinary course of business. These matters are in various stages of investigation and litigation, and they are being vigorously defended. Although the Company does not expect that the outcome in any of these matters, individually or collectively, will have a material adverse effect on its financial condition or results of operations, litigation is inherently unpredictable. Therefore, judgments could be rendered, or settlements entered, that could adversely affect the Company’s operating results or cash flows in a particular period. The Company routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability, and it records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable. The Company has not recorded any contingent liability attributable to existing litigation.


Contingency Reserves

As of June 30, 2012 and March 31, 2012, the Company had a contingent liability of $810,000 related to certain intellectual property and indemnification claims, of which $410,000 related to discontinued operations. These reserves are classified as Accrued expenses on the Condensed Consolidated Balance Sheet.

Additionally, as of June 30, 2012, the Company has a contingent cash consideration payable of approximately $3.0 million related to the acquisition of ANTONE. The ANTONE contingent consideration is based upon the profitability of the acquired products for post-closing periods through June 30, 2016. See Notes 1 and 12 for additional information.