Rackable Systems (RACK) owns $9mm auction rate securities

... the headline says they had an "auction-rate security auction failure".

The 10K says they owned $65mm short-term investments that consisted of student loans and federally backed securities. As of February, they have $9mm in auction rate securities. They may need to take an impairment charge associated with them.

This is totally non-operational and they've already addressed most of the problem. Stock is trading down 10% in pre-market on the headline. I bought a little at $8.