9. GAIN ON BANKRUPTCY CLAIM
or Spansion, the Companys largest customer in fiscal 2010 and 2011, filed for bankruptcy in Japan in February 2009 and in
the United States in March 2009. The Company filed claims in the Spansion U.S. and Spansion Japan bankruptcy actions. In the first
quarter of fiscal 2011, the Company's Japanese subsidiary received approximately $155,000 in proceeds from the Spansion Japan
bankruptcy claim and recorded the amount as a reduction of operating expenses.