This excerpt taken from the SYMM 10-Q filed Jun 17, 2008.
Short-term Investment Sold After the Fiscal Third Quarter Balance Sheet Date
In the fourth quarter of fiscal 2007, we purchased corporate securities with a $3.0 million par value maturing on March 12, 2010. At the third quarter balance sheet date of March 30, 2008, this short-term investment had a temporary impairment of $0.6 million, and we had both the intent and ability to hold this investment until maturity. However, early in the fourth quarter of fiscal 2008, we received information from our investment manager that the investment might severely deteriorate in value. As a result, in April 2008, we sold the investment rather than risk further loss, and will recognize a $0.5 million loss in the fourth quarter of fiscal 2008.
We believe that our existing cash resources will be sufficient to meet our anticipated operating and working capital expenditure needs in the ordinary course of business for at least the next 12 months and the foreseeable future. We base our expense levels in part on our expectation of future revenue levels. If our revenue for a particular period is lower than we expect, we may take steps to reduce our operating expenses accordingly. If cash generated from operations is insufficient to satisfy our liquidity requirements or if we require additional capital resources to grow our business or to acquire complementary technologies and businesses in the future, we may seek to issue additional equity securities or obtain additional debt financing. Additional financing may not be available at all or on terms favorable to us. Additional financing may also be dilutive to our existing stockholders. As a result of our delayed filing of this Quarterly Report on Form 10-Q for the quarter ended March 30, 2008 and our delayed filing of our Quarterly Report on Form 10-Q for the quarter ended December 30, 2007, we will be ineligible to register our securities on Form S-3 for sale by us or resale by others until we have timely filed all periodic reports under the Securities and Exchange Act of 1934 for a period of twelve calendar months and any portion of a month from the due date of the last untimely report. We may use Form S-1 to raise capital or complete acquisitions, but doing so could increase transaction costs and adversely impact our ability to raise capital or complete acquisitions of other companies in a timely manner. We do not have any arrangements or relationships with entities that are not consolidated into our financial statements that are reasonably likely to materially affect our liquidity or the availability of our capital resources.
On May 7, 2008, we received a notice of acceleration from the trustee under the indenture governing our $120.0 million principal amount of 3.25% Senior Contingent Convertible Subordinated Notes due 2025. The notice states that our failure to file our Quarterly Report on Form 10-Q for the quarter ended December 30, 2007 violates certain provisions of the indenture. The acceleration letter declares that the principal amount outstanding under the Notes, together with any accrued and unpaid interest, and fees and expenses, are immediately due and payable. This notice of acceleration relates to the trustees and certain bondholders previous notice received by the Company on or about March 3, 2008 stating that our failure to file our Quarterly Report on Form 10-Q for the quarter ended December 30, 2007 with the Securities and Exchange Commission (SEC) violates provisions of the indenture. We believe we are not in default under the indenture. We also believe that no event of default entitling holders to accelerate has occurred with respect to the notes. We believe the indenture requires us to provide to the trustee, copies of the reports we are required to file with the SEC, such as our quarterly and annual reports, within 15 days of filing such reports with the SEC rather than the date such reports are due to be filed with the SEC. Accordingly, we have continued to classify the notes as long-term.