This excerpt taken from the CSPI 10-Q filed Aug 14, 2006.
There was no material change in our exposure to market risk during the quarter ended June 30, 2006.
This excerpt taken from the CSPI 10-Q filed May 15, 2006.
This excerpt taken from the CSPI 10-Q filed Aug 15, 2005.
This excerpt taken from the CSPI 10-Q filed May 16, 2005.
This excerpt taken from the CSPI 10-Q filed Feb 22, 2005.
This excerpt taken from the CSPI 10-K filed Jan 21, 2005.
We are exposed to market risk related to changes in interest rates and foreign currency exchange rates.
Foreign Exchange Risk Management
As a multinational corporation, we are exposed to changes in foreign exchange rates. Any foreign currency transaction, defined as a transaction denominated in a currency other than the U.S. dollar, will be reported in U.S. dollars at the applicable exchange rate. Asset and liabilities are translated into U.S. dollars at exchange rates in effect at the balance sheet date and income and expense items are translated at average rates for the period. The primary foreign currency denominated transactions include revenue and expenses and the resultant accounts receivable and accounts payable balances reflected on our balance sheet. Therefore, the change in the value of the U.S. dollar as compared to foreign currencies will have either a positive or negative effect on our financial position and results of operations. Our primary exposure relates to the Euro and the British pound.
Interest Rate Risk
Our invested cash balances are subject to interest rate risk and, as a result, changes in interest rates from time to time may affect our operating results. We invest our excess cash balances in highly liquid, interest bearing instruments, including money market funds and government and corporate bonds. At September 30, 2004, the fair value and principal amounts of our portfolio amounted to $9.9 million, with a yield to maturity of 2.45%. Our investments are limited to high grade corporate debt securities, government issued debt, municipal debt securities, money market funds and similar high quality instruments.
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