ASTRO MED INC /NEW/, 10-Q filed on 6/4/2014
Quarterly Report
Document and Entity Information
3 Months Ended
May 3, 2014
May 23, 2014
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
May 03, 2014 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q1 
 
Trading Symbol
ALOT 
 
Entity Registrant Name
ASTRO MED INC /NEW/ 
 
Entity Central Index Key
0000008146 
 
Current Fiscal Year End Date
--01-31 
 
Entity Filer Category
Smaller Reporting Company 
 
Entity Common Stock, Shares Outstanding
 
7,679,142 
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
May 3, 2014
Jan. 31, 2014
CURRENT ASSETS
 
 
Cash and Cash Equivalents
$ 10,140 
$ 8,341 
Securities Available for Sale
18,455 
18,766 
Accounts Receivable, net
12,844 
11,366 
Inventories
16,181 
15,178 
Deferred Tax Assets
1,677 
1,673 
Restricted Cash
 
1,800 
Line of Credit Receivable
220 
240 
Note Receivable
250 
250 
Asset Held for Sale
2,120 
2,120 
Prepaid Expenses and Other Current Assets
3,709 
1,383 
Current Assets of Discontinued Operations
 
3,917 
Total Current Assets
65,596 
65,034 
PROPERTY, PLANT AND EQUIPMENT
35,306 
34,960 
Less Accumulated Depreciation
(27,743)
(27,368)
Property, Plant and Equipment, net
7,563 
7,592 
OTHER ASSETS
 
 
Note Receivable
440 
440 
Deferred Tax Asset
270 
313 
Intangible Assets
3,224 
3,400 
Goodwill
991 
991 
Other
195 
194 
Total Other Assets
5,120 
5,338 
TOTAL ASSETS
78,279 
77,964 
CURRENT LIABILITIES
 
 
Accounts Payable
2,480 
2,374 
Accrued Compensation
2,191 
3,130 
Other Liabilities and Accrued Expenses
3,791 
2,310 
Deferred Revenue
445 
454 
Income Taxes Payable
12 
788 
Current Liabilities of Discontinued Operations
 
836 
Total Current Liabilities
8,919 
9,892 
Long Term Obligations
167 
250 
Deferred Tax Liabilities
97 
77 
Other Long Term Liabilities
1,008 
1,131 
TOTAL LIABILITIES
10,191 
11,350 
SHAREHOLDERS' EQUITY
 
 
Common Stock, $0.05 Par Value, Authorized 13,000,000 shares; Issued 9,455,263 shares and 9,291,225 shares at May 3, 2014 and January 31, 2014, respectively
473 
465 
Additional Paid-in Capital
42,644 
41,235 
Retained Earnings
37,797 
37,201 
Treasury Stock, at Cost, 1,776,121 shares and 1,730,042 shares at May 3, 2014 and January 31, 2014, respectively
(13,091)
(12,463)
Accumulated Other Comprehensive Income
265 
176 
TOTAL SHAREHOLDERS' EQUITY
68,088 
66,614 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 78,279 
$ 77,964 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
May 3, 2014
Jan. 31, 2014
Statement Of Financial Position [Abstract]
 
 
Common Stock, Par Value
$ 0.05 
$ 0.05 
Common Stock, Shares Authorized
13,000,000 
13,000,000 
Common Stock, Shares Issued
9,455,263 
9,291,225 
Treasury Stock, Shares
1,776,121 
1,730,042 
Condensed Consolidated Statements of Operations (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended
May 3, 2014
May 4, 2013
Income Statement [Abstract]
 
 
Net Sales
$ 20,774 
$ 15,485 
Cost of Sales
12,139 
9,708 
Product Replacement Related Costs
 
672 
Gross Profit
8,635 
5,105 
Operating Expenses:
 
 
Selling and Marketing
4,374 
3,572 
Research and Development
1,371 
1,113 
General and Administrative
1,191 
1,142 
Operating Expenses
6,936 
5,827 
Operating Income (Loss)
1,699 
(722)
Other Income (Expense), net
(121)
(36)
Income from Continuing Operations before Income Taxes
1,578 
(758)
Income Tax Provision (Benefit) for Continuing Operations
449 
(319)
Income (Loss) from Continuing Operations
1,129 
(439)
Loss from Discontinued Operations, Net of Tax Benefit of $7
 
(10)
Net Income (Loss)
$ 1,129 
$ (449)
Net Income (Loss) per Common Share-Basic:
 
 
From Continuing Operations
$ 0.15 
$ (0.06)
From Discontinued Operations
   
   
Net Income (Loss) Per Common Share-Basic
$ 0.15 
$ (0.06)
Net Income (Loss) per Common Share-Diluted:
 
 
From Continuing Operations
$ 0.14 
$ (0.06)
From Discontinued Operations
   
   
Net Income (Loss) Per Common Share-Diluted
$ 0.14 
$ (0.06)
Weighted Average Number of Common Shares Outstanding:
 
 
Basic
7,600,780 
7,401,465 
Diluted
7,848,300 
7,401,465 
Dividends Declared Per Common Share
$ 0.07 
$ 0.07 
Condensed Consolidated Statements of Operations (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 4, 2013
Income Statement [Abstract]
 
Income tax expense (benefit) of discontinued operations
$ (7)
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 3, 2014
May 4, 2013
Statement Of Income And Comprehensive Income [Abstract]
 
 
Net Income (Loss)
$ 1,129 
$ (449)
Other Comprehensive Income (Loss), Net of Taxes and Reclassification Adjustments:
 
 
Foreign Currency Translation Adjustments
92 
(154)
Unrealized Holding Loss Arising During the Period
(3)
(1)
Net Other Comprehensive Income (Loss)
89 
(155)
Comprehensive Income (Loss)
$ 1,218 
$ (604)
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 3, 2014
May 4, 2013
Cash Flows from Operating Activities:
 
 
Net Income (Loss)
$ 1,129 
$ (449)
Adjustments to Reconcile Net Income to Net Cash Used by Operating Activities:
 
 
Depreciation and Amortization
512 
310 
Share-Based Compensation
131 
161 
Deferred Income Tax Provision
59 
21 
Changes in Assets and Liabilities:
 
 
Accounts Receivable
(166)
(224)
Inventories
(1,003)
(1,049)
Income Taxes
(731)
(5,077)
Accounts Payable and Accrued Expenses
(1,691)
(431)
Other
(735)
(235)
Net Cash Used by Operating Activities
(2,495)
(6,973)
Cash Flows from Investing Activities:
 
 
Proceeds from Sales/Maturities of Securities Available for Sale
2,880 
1,935 
Purchases of Securities Available for Sale
(2,574)
(13,527)
Release of Funds Held in Escrow From Sale of Grass
1,800 
 
Proceeds Received on Disposition of Grass Inventory
2,355 
 
Additions to Property, Plant and Equipment
(292)
(113)
Net Cash Provided (Used) by Investing Activities
4,169 
(11,705)
Cash Flows from Financing Activities:
 
 
Proceeds from Common Shares Issued Under Employee Benefit Plans and Employee Stock Option Plans, Net of Payment of Minimum Tax Withholdings
658 
391 
Dividends Paid
(533)
(521)
Net Cash Provided (Used) by Financing Activities
125 
(130)
Net Increase (Decrease) in Cash and Cash Equivalents
1,799 
(18,808)
Cash and Cash Equivalents, Beginning of Period
8,341 
30,999 
Cash and Cash Equivalents, End of Period
10,140 
12,191 
Supplemental Disclosures of Cash Flow Information:
 
 
Cash Paid During the Period for Income Taxes, Net of Refunds
$ 1,471 
$ 4,755 
Overview
Overview

(1) Overview

Headquartered in West Warwick, Rhode Island, Astro-Med Inc. designs, develops, manufactures and distributes a broad range of specialty printers and data acquisition and analysis systems. Our products are distributed through our own sales force and authorized dealers in the United States. We also sell to customers outside of the United States primarily through our Company offices in Canada and Europe as well as with independent dealers and representatives. Astro-Med, Inc. products are sold under the brand names Astro-Med ® Test & Measurement and QuickLabel ® Systems and are employed around the world in a wide range of aerospace, apparel, automotive, avionics, chemical, computer peripherals, communications, distribution, food and beverage, general manufacturing, packaging and transportation.

Unless otherwise indicated, references to “Astro-Med,” the “Company,” “we,” “our,” and “us” in this Quarterly Report on Form 10-Q refer to Astro-Med, Inc. and its consolidated subsidiaries.

Basis of Presentation
Basis of Presentation

(2) Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared by Astro-Med pursuant to the rules and regulations of the Securities and Exchange Commission, and reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results of the interim periods included herein. These financial statements do not include all disclosures associated with annual financial statements and, accordingly, should be read in conjunction with footnotes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2014.

On January 31, 2013, the Company completed the sale of substantially all of the assets of its Grass Technologies Product Group (Grass). Consequently, the Company has classified the results of operations of its Grass segment as discontinued operations for the first quarter fiscal 2014 period presented. Refer to Note 15, “Discontinued Operations,” for further details.

On January 22, 2014, Astro-Med completed the acquisition of the ruggedized printer product line from Miltope Corporation (Miltope). Astro-Med’s ruggedized printer product line is part of the Test & Measurement (T&M) product group and is reported as part of the T&M segment. The results of the Miltope’s ruggedized printer product line operations have been included in the condensed consolidated financial statements of the Company for the first quarter fiscal 2015. Refer to Note 4, “Acquisition,” for further details.

Results of operations for the interim periods presented herein are not necessarily indicative of the results that may be expected for the full year.

The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Some of the more significant estimates relate to the allowances for doubtful accounts and credits, inventory valuation, impairment of long-lived assets and goodwill, income taxes, share-based compensation, accrued expenses and warranty reserves. Management’s estimates are based on the facts and circumstances available at the time estimates are made, past historical experience, risk of loss, general economic conditions and trends, and management’s assessments of the probable future outcome of these matters. Consequently, actual results could differ from those estimates.

Certain amounts in prior year’s financial statements have been reclassified to conform to the current year’s presentation.

Principles of Consolidation
Principles of Consolidation

(3) Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation.

Acquisition
Acquisition

(4) Acquisition

On January 22, 2014, Astro-Med completed the acquisition of the Ruggedized Printer Product line from Miltope Corporation (Miltope), a company of VT Systems, which is engaged in the design, development, manufacture and testing of ruggedized computers and computer peripheral equipment for military, industry and commercial applications. Astro-Med’s ruggedized printer product line is part of the Test & Measurement (T&M) product group and is reported as part of the T&M segment. The results of the Miltope’s ruggedized printer product line operations have been included in the condensed consolidated financial statements for the first quarter fiscal 2015 as presented.

The purchase price of the acquisition was $6,732,000 which was funded using existing cash on hand. Of the $6,732,000 purchase price, $500,000 will be held in escrow for twelve months following the acquisition date to provide an indemnity to the Company in the event of any breach in the representation, warranties and covenants of Miltope. The assets acquired consist of all of the assets of the Miltope ruggedized printer product line excluding plant and equipment and personnel. The acquisition was accounted for under the acquisition method in accordance with the guidance provided by FASB ASC 805, “Business Combinations.”

As part of the acquisition, Miltope and Astro-Med have entered into a manufacturing services agreement under which Miltope will provide transition services and continue to manufacture printers for Astro-Med for up to six months until the Company transitions the manufacturing to its West Warwick, Rhode Island facility.

The purchase price of the acquisition has been allocated on the basis of the estimated fair value as follows:

 

(In thousands)       

Accounts Receivable

   $ 713   

Inventories

     2,503   

Identifiable Intangible Assets

     3,400   

Goodwill

     196   

Warranty Reserve

     (80
  

 

 

 

Total Purchase Price

   $ 6,732   
  

 

 

 

The following unaudited pro forma information assumes the acquisition of Miltope occurred on February 1, 2013. This information has been prepared for informational purposes only and does not purport to represent the results of operations that would have happened had the acquisition occurred as of the date indicated, nor of future results of operations.

 

     Three Months Ended
May 4, 2013
(In thousands)            

Net Revenue

   $ 17,485      

The impact on net income and earnings per share would not have been material to the Company in fiscal 2014.

Net Income (Loss) Per Common Share
Net Income (Loss) Per Common Share

(5) Net Income (Loss) Per Common Share

Basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted average number of shares and, if dilutive, common equivalent shares for stock options, restricted stock awards and restricted stock units outstanding during the period. A reconciliation of the shares used in calculating basic and diluted net income (loss) per share is as follows:

 

     Three Months Ended  
     May 3,
2014
     May 4,
2013
 

Weighted Average Common Shares Outstanding—Basic

     7,600,780         7,401,465   

Effect of Dilutive Options, Restricted Stock Awards and Restricted Stock Units

     247,520         —     
  

 

 

    

 

 

 

Weighted Average Common Shares Outstanding—Diluted

     7,848,300         7,401,465   
  

 

 

    

 

 

 

For the three months ended May 3, 2014 and May 4, 2013, the diluted per share amounts do not reflect common equivalent shares outstanding of 75,600 and 155,900, respectively, because their effect would have been anti-dilutive, as the exercise price was greater than the average market price of the underlying stock during the period presented.

 

For the three months ended May 4, 2013, diluted net loss per common share is the same as basic net loss per common share, as the inclusion of the effect of the common share equivalents then outstanding would be anti-dilutive. For this reason, excluded from the calculation of diluted net loss per common share for the three month period ended May 4, 2013 were “in the money” options to purchase 175,951 shares of the Company’s common stock.

Share-Based Compensation
Share-Based Compensation

(6) Share-Based Compensation

Astro-Med has one equity incentive plan (the “Plan”) under which incentive stock options, non-qualified stock options, restricted stock units (“RSUs”), restricted stock awards (“RSAs”) and other equity based awards may be granted to directors, officers and certain employees. An aggregate of 1,000,000 shares were authorized for awards under the Plan. At May 3, 2014, 290,609 shares were available for grant under the Plan. Options granted to employees vest over four years. The exercise price of each stock option will be established at the discretion of the Compensation Committee; however, any incentive stock options granted must be at an exercise price of not less than fair market value at the date of grant. In fiscal year 2013, a portion of the Company’s executive’s long-term incentive compensation was awarded in the form of RSUs (“2013 RSUs”). The 2013 RSUs were earned based on the Company achieving specific thresholds of net sales and annual operating income as established under the fiscal 2013 Domestic Management Bonus Plan and vested fifty percent on the first anniversary of the grant date and fifty percent on the second anniversary of the grant date provided that the grantee was employed on each vesting date by Astro-Med or an affiliate company. All such 2013 RSUs were earned and vested as of March 2014. In April 2013, the Company granted options and RSUs to officers (“2014 RSUs”). Each 2014 RSU will be earned and vest as follows: twenty-five percent of the 2014 RSU vests on the third anniversary of the grant date, fifty percent of the 2014 RSU vests upon the Company achieving its cumulative budgeted net sales target for fiscal years 2014 through 2016 (the “Measurement Period”), and twenty-five percent of the total 2014 RSU vests upon the Company’s achieving a target average annual ORONA (operating income return on net assets as calculated under the Domestic Management Bonus Plan) for the Measurement Period. The grantee may not sell, transfer or otherwise dispose of more than fifty percent of the common stock issued upon vesting of the RSU until the first anniversary of the vesting date.

The Plan provides for an automatic annual grant of ten-year options to purchase 5,000 shares of stock to each non-employee director upon the adjournment of each shareholders’ meeting. Each such option is exercisable at the fair market value as of the grant date and vests immediately prior to the next succeeding shareholders’ meeting. In addition to the automatic option grant under Plan, the Company has a Non-Employee Director Annual Compensation Program (the “Program”) which provides that each non-employee director is entitled to an annual cash retainer of $7,000 (the “Annual Cash Retainer”), plus $500 for each Board and committee meeting attended. In addition, effective August 1, 2014, the Chairman of the Board will receive an annual retainer of $6,000 and the Chair of the Audit Committee and Compensation Committee will each receive an annual retainer of $4,000 each (“Chair Retainer”). The non-employee director may elect for any fiscal year to receive all or a portion of the Annual Cash Retainer and/or Chair Retainer (collectively the “Cash Retainer”) in the form of common stock of the Company, which will be issued under the Plan. If a non-employee director elects to receive all or a portion of the Cash Retainer in the form of common stock, such shares shall be issued in four quarterly installments on the first day of each fiscal quarter, and the number of shares of common stock to be issued shall be based on the fair market value of such common stock on the date such installment is payable. The common stock received in lieu of such Cash Retainer will be fully vested. However, a non-employee director who receives common stock in lieu of all or a portion of the Cash Retainer may not sell, transfer, assign, pledge or otherwise encumber the common stock prior to the first anniversary of the date on which such shares were issuable. In the event of the death or disability of a nonemployee director, or a change in control of the Company, any shares of common stock issued in lieu of such Cash Retainer, shall no longer be subject to such restrictions on transfer and/or Chair Retainer (collectively the “Cash Retainer”).

In addition, under the Program, each non-employee director receives RSAs with a value equal to $20,000 (the “Equity Retainer”) upon adjournment of each annual shareholders meeting. If a non-employee director is first appointed or elected to the Board of Directors effective on a date other than at the annual shareholders meeting, on the date of such appointment or election, the director shall receive a pro rata award of restricted common stock having a value based on the number of days remaining until the next annual meeting. The Equity Retainer will vest on the earlier of 12 months after the grant date or the date immediately prior to the next annual meeting of the shareholders following the meeting at which such RSAs were granted. However, a non-employee director may not sell, transfer, assign, pledge or otherwise encumber the vested common stock prior to the second anniversary of the vesting date. In the event of the death or disability of a non-employee director, or a change in control of the Company, the RSAs shall immediately vest and shall no longer be subject to such restrictions on transfer.

We account for compensation cost related to share-based payments based on fair value of the stock options, RSUs and RSAs when awarded to an employee or director. We have estimated the fair value of each option on the date of grant using the Black-Scholes option-pricing model. Our estimate requires a number of complex and subjective assumptions including our stock price volatility, employee exercise patterns (expected life of the options), the risk-free interest rate and the Company’s dividend yield. The stock price volatility assumption is based on the historical weekly price data of our common stock over a period equivalent to the weighted average expected life of our options. Management evaluated whether there were factors during that period which were unusual and would distort the volatility figure if used to estimate future volatility and concluded that there were no such factors. In determining the expected life of the option grants, the Company has observed the actual terms of prior grants with similar characteristics and the actual vesting schedule of the grant and has assessed the expected risk tolerance of different option groups. The risk-free interest rate is based on the actual U.S. Treasury zero coupon rates for bonds matching the expected term of the option as of the option grant date. The dividend assumption is based upon the prior year’s average dividend yield. Reductions in compensation expense associated with the forfeited options are estimated at the date of grant, and this estimated forfeiture rate is adjusted periodically based on actual forfeiture experience. Our accounting for share-based compensation for RSUs and RSAs is also based on the fair value method. The fair value of the RSUs and RSAs is based on the closing market price of the Company’s common stock on the grant date of the RSU or RSA.

Share-based compensation expense was recognized as follows:

 

     Three Months Ended  
     May 3, 2014      May 4, 2013  
(In thousands)              

Stock Options

   $ 54       $ 46   

Restricted Stock Awards and Restricted Stock Units

     77         115   
  

 

 

    

 

 

 

Total

   $ 131       $ 161   
  

 

 

    

 

 

 

Stock Options

The fair value of stock options granted during the three months ended May 3, 2014 and May 4, 2013 was estimated using the following assumptions:

 

     Three Months Ended  
     May 3, 2014     May 4, 2013  

Risk Free Interest Rate

     1.6     0.8

Expected Volatility

     26.8     38.5

Expected Life (in years)

     5.0        5.0   

Dividend Yield

     2.0     2.6

The weighted average fair value per share for options granted was $2.93 during the first quarter of fiscal 2015 as compared to $2.79 during the first quarter of fiscal 2014.

Aggregated information regarding stock options granted under the Plan for the three months ended May 3, 2014 is summarized below:

 

    Number of Options     Weighted Average
Exercise Price
    Weighted Average
Remaining
Contractual Life
(in Years)
    Aggregate Intrinsic
Value
 

Outstanding at January 31, 2014

    736,647      $ 8.63        4.7      $ 3,707,000   

Granted

    75,600        14.20       

Exercised

    (152,789     8.71       

Expired or canceled

    (8,986     8.70       
 

 

 

   

 

 

     

Outstanding at May 3, 2014

    650,472      $ 9.26        5.8      $ 2,324,921   
 

 

 

   

 

 

   

 

 

   

 

 

 

Exercisable at May 3, 2014

    452,599      $ 8.50        4.4      $ 1,878,835   
 

 

 

   

 

 

   

 

 

   

 

 

 

As of May 3, 2014, there was $419,000 of unrecognized compensation expense related to unvested options, which will be recognized through March 2018.

 

Restricted Stock Units (RSUs) and Restricted Stock Awards (RSAs)

Aggregated information regarding RSUs and RSAs granted under the Plan for the three months ended May 3, 2014 is summarized below:

 

     RSAs & RSUs     Weighted Average
Grant Date Fair Value
 

Unvested at January 31, 2014

     106,496      $ 9.12   

Granted

     —          —     

Vested

     (15,618     8.53   

Forfeited

     (5,834     10.07   
  

 

 

   

 

 

 

Unvested at May 3, 2014

     85,044      $ 9.16   
  

 

 

   

 

 

 

As of May 3, 2014, there was $300,000 of unrecognized compensation expense related to unvested RSUs and RSAs which will be recognized through April 2016.

Employee Stock Purchase Plan

Astro-Med has an Employee Stock Purchase Plan allowing eligible employees to purchase shares of common stock at a 15% discount from fair value on the date of purchase. A total of 247,500 shares were reserved for issuance under this plan. During the quarter ended May 3, 2014 and May 4, 2013, there were 815 and 1,212 shares respectively, purchased under this plan. As of May 3, 2014, 59,427 shares remain available.

Inventories
Inventories

(7) Inventories

Inventories are stated at the lower of cost (first-in, first-out) or market and include material, labor and manufacturing overhead. The components of inventories are as follows:

 

     May 3, 2014     January 31, 2014  
(In thousands)             

Materials and Supplies

   $ 10,257      $ 10,722   

Work-In-Process

     1,657        852   

Finished Goods

     7,764        6,798   
  

 

 

   

 

 

 
     19,678        18,372   

Inventory Reserve

     (3,497     (3,194
  

 

 

   

 

 

 
   $ 16,181      $ 15,178   
  

 

 

   

 

 

 
Income Taxes
Income Taxes

(8) Income Taxes

The Company’s effective tax rates for income (loss) from continuing operations based on the projected effective tax rate for the full year, are as follows:

 

     Three Months Ended  

Fiscal 2015

     28.5

Fiscal 2014

     (42.1 )% 

During the first quarter of fiscal 2015, the Company recognized an income tax expense of approximately $449,000 which included an expense of $549,000 on the quarter’s pretax income and a benefit of $100,000 related to the favorable resolution of a previously uncertain tax position. During the first quarter of fiscal 2014, the Company recognized an income tax benefit on the loss from continuing operations of approximately $319,000.

As of May 3, 2014, the Company’s cumulative unrecognized tax benefits totaled $651,000 compared to $715,000 as of January 31, 2014.

Note Receivable and Line of Credit Issued
Note Receivable and Line of Credit Issued

(9) Note Receivable and Line of Credit Issued

On January 30, 2012, the Company completed the sale of its label manufacturing operations in Asheboro, North Carolina to Label Line Ltd. The net sale price of $1,000,000 was received in the form of a promissory note issued by Label Line Ltd. and is fully secured by a first lien on various collateral, including the Asheboro plant and plant assets. The note bears interest at 3.75% is payable in sixteen quarterly installments of principal and interest commencing on January 30, 2013. The Note Receivable is disclosed at its present value on the accompanying condensed consolidated balance sheets. As of May 3, 2014, $690,000 remains outstanding on this note.

The terms of the Asheboro sale also included an agreement for Astro-Med to provide Label Line Ltd. with additional financing in the form of a revolving line of credit in the amount of $600,000. This line of credit is fully secured by a first lien on various collateral of Label Line Ltd., including the Asheboro plant and plant assets and bears interest at a rate equal to the United States prime rate plus an additional margin of two percent of the outstanding credit balance. Although the initial term was for a period of one-year from the date of the sale, the agreement has been extended through January 31, 2015. As of May 3, 2014, $220,000 remains outstanding on this revolving line of credit.

Segment Information
Segment Information

(10) Segment Information

Astro-Med reports two segments consistent with its sales product groups: QuickLabel Systems (QuickLabel) and Test & Measurement (T&M). On January 31, 2013, the Company completed the sale of substantially all of the assets of its Grass Technologies Product Group (Grass) in order to focus on its existing core businesses. Consequently, the Company has classified the results of operations of Grass as discontinued operations for the first quarter of fiscal 2014. Refer to Note 14, “Discontinued Operations” for a further discussion.

The Company evaluates segment performance based on the segment profit before corporate expenses.

Summarized below are the Net Sales and Segment Operating Profit for each reporting segment:

 

     Three Months Ended  
     Net Sales      Segment Operating Profit  

(In thousands)

   May 3,
2014
     May 4,
2013
     May 3,
2014
    May 4,
2013
 

QuickLabel

   $ 14,423       $ 11,396       $ 2,198      $ 891   

T&M

     6,351         4,089         692        201   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 20,774       $ 15,485         2,890        1,092   
  

 

 

    

 

 

      

Product Replacement Related Costs

           —         672  

Corporate Expenses

           1,191        1,142   
        

 

 

   

 

 

 

Operating Income (Loss)

           1,699        (722

Other Income (Expense)—Net

           (121     (36
        

 

 

   

 

 

 

Income (Loss) From Continuing Operations Before Income Taxes

           1,578        (758

Income Tax Provision (Benefit)

           449        (319
        

 

 

   

 

 

 
           1,129        (439

Loss From Discontinued Operations, Net of Income Taxes

           —          (10
        

 

 

   

 

 

 

Net Income (Loss)

         $ 1,129      $ (449
        

 

 

   

 

 

 
Recent Accounting Pronouncements
Recent Accounting Pronouncements

(11) Recent Accounting Pronouncements

Discontinued Operations

In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. In addition, this ASU expands the disclosure requirements for disposals that meet the definition of a discontinued operation and requires entities to disclose information about disposals of individually significant components that do not meet the definition of a discontinued operation. ASU 2014-08 is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2014. Early adoption is permitted for disposals that have not been reported in financial statements previously issued. We are currently evaluating the impact of the adoption of ASU 2014-08 and do not expect it to have a material effect on the Company’s financial position or results of operations.

Income Taxes

In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740)—Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability. This ASU is effective for annual and interim periods beginning after December 15, 2013, with early adoption permitted. The adoption of this guidance did not have a material effect on the Company’s financial position or results of operations.

No other new accounting pronouncements, issued or effective during the first three months of the current year, have had or are expected to have a material impact on our consolidated financial statements.

Securities Available for Sale
Securities Available for Sale

(12) Securities Available for Sale

Pursuant to our investment policy, securities available for sale include state and municipal securities with various contractual or anticipated maturity dates ranging from one to 34 months. Securities available for sale are carried at fair value, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in shareholders’ equity until realized. Realized gains and losses from the sale of available for sale securities, if any, are determined on a specific identification basis. A decline in the fair value of any available for sale security below cost that is determined to be other than temporary will result in a write-down of its carrying amount to fair value. No such impairment charges were recorded for any period presented. All short-term investment (classified as cash equivalents) securities have original maturities greater than 90 days.

The fair value, amortized cost and gross unrealized gains and losses of the securities are as follows:

 

(In thousands)

May 3, 2014

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
    Fair Value  

State and Municipal Obligations

   $ 18,422       $ 35       $ (2 )   $ 18,455   
  

 

 

    

 

 

    

 

 

   

 

 

 

 

January 31, 2014

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
     Fair Value  

State and Municipal Obligations

   $ 18,729       $ 37       $ —        $ 18,766   
  

 

 

    

 

 

    

 

 

    

 

 

 
Fair Value
Fair Value

(13) Fair Value

We measure our financial assets at fair value on a recurring basis in accordance with the guidance provided in ASC 820, “Fair Value Measurement and Disclosures” which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In addition, ASC 820 establishes a three-tiered hierarchy for inputs used in management’s determination of fair value of financial instruments that emphasizes the use of observable inputs over the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect management’s belief about the assumptions market participants would use in pricing a financial instrument based on the best information available in the circumstances.

 

The fair value hierarchy is summarized as follows:

 

    Level 1—Quoted prices in active markets for identical assets or liabilities;

 

    Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

 

    Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Cash and cash equivalents (including short term investment money market funds with original maturity of less than 90 days), accounts receivables, accounts payable, accrued compensation and other expenses and income tax payable are reflected in the condensed consolidated balance sheet at carrying value, which approximates fair value due to the short term nature of the these instruments.

Assets measured at fair value on a recurring basis are summarized below:

 

(In thousands)

May 3, 2014

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 5,110       $ —        $ —        $ 5,110   

State and Municipal Obligations (included in Securities Available for Sale)

     —           18,455         —           18,455   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 5,110       $ 18,455      $ —        $ 23,565   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

January 31, 2014

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 4,734       $ —        $ —        $ 4,734   

State and Municipal Obligations (included in Securities Available for Sale)

     —           18,766         —           18,766   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 4,734       $ 18,766      $ —        $ 23,500   
  

 

 

    

 

 

    

 

 

    

 

 

 

For our money market funds and state and municipal obligations, we utilize the market approach to measure fair value. The market approach is based on using quoted prices for identical or similar assets.

Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income

(14) Accumulated Other Comprehensive Income

The changes in the balance of accumulated other comprehensive income by component are as follows:

 

(In thousands)    Foreign Currency
Translation
Adjustments
     Unrealized Holding Gain
on Available for
Sale Securities
    Total  

Balance at January 31, 2014

   $ 152       $ 24      $ 176   

Other Comprehensive Income (Loss)

     92         (3     89   

Amounts reclassified to Net Income

     —           —          —     
  

 

 

    

 

 

   

 

 

 

Net Other Comprehensive Income (Loss)

     92         (3     89   
  

 

 

    

 

 

   

 

 

 

Balance at May 3, 2014

   $ 244       $ 21      $ 265   
  

 

 

    

 

 

   

 

 

 

The amounts presented above in other comprehensive income (loss) are net of taxes.

Discontinued Operations
Discontinued Operations

(15) Discontinued Operations

On January 31, 2013, the Company completed the sale of substantially all of the assets of its Grass Technologies Product Group (Grass) which manufactured polysomnography and electroencephalography systems and related accessories and propriety electrodes for use in both research and clinical settings for $18.6 million in cash, of which $1.8 million was held in escrow and received in the first quarter of the current year. The assets sold consisted primarily of working capital (exclusive of inventory and accounts payable related to manufacturing), the engineering, sales and support workforce, intellectual property and certain other related assets.

As part of this transaction, Astro-Med entered into a Transition Service Agreement (TSA) with the purchaser pursuant to which the Company agreed to provide transition services and continue to manufacture Grass products for the purchaser for a period not to exceed twelve months following the sale closing date. The Company determined that cash flows from this activity was not significant and therefore Grass has been disclosed as a discontinued operation for the first quarter fiscal 2014 period presented. The TSA officially expired on January 31, 2014 and the Company is no longer reporting discontinued operations in fiscal 2015.

In accordance with the terms of the TSA agreement, the purchaser was obligated to acquire the remaining Grass inventory upon expiration of the TSA on January 31, 2014. In connection with the disposition of the inventory previously included in discontinued operations, the Company received $2,355,000 in the first quarter of fiscal 2015 from the purchaser of Grass related to the disposition of this inventory. Any future services related to Grass post fiscal 2014 are not expected to be material.

Results for discontinued operations are as follows:

 

     May 4,
2013
 
(In thousands)       

Net Sales

   $ 1,745   

Gross Profit

   $ 48   

Net Loss from Discontinued Operations

   $ (10

As a result of the sale of the Grass assets, the Company is in the process of selling its facility located in Rockland, Massachusetts, which was the former location of Grass production. This property is being actively marketed with sale considered probable within the next twelve months and accordingly, the property is classified as an Asset Held for Sale in the accompanying condensed consolidated balance sheets.

Commitments and Contingencies
Commitments and Contingencies

(16) Commitments and Contingencies

Product Replacement Program

In April 2013, tests conducted by the Company revealed that one of its suppliers had been using a non-conforming part in certain models of Astro-Med’s Test & Measurement printers. No malfunctions have been reported by customers as a result of the non-conforming material.

Upon identifying this issue, Astro-Med immediately suspended production of the printers, notified all customers and contacted the supplier who confirmed the problem. Astro-Med is continuing to work with its customers to replace the non-conforming material on existing printers with conforming material. The estimated costs associated with the replacement program were $672,000, which was based upon the number of printers shipped during the period the non-conforming material was used. Those estimated costs were recognized and recorded as a reserve in the first quarter of fiscal 2014 and are included in the cost of sales in the accompanying condensed consolidated statement of operations for the three months ended May 4, 2013. As of May 3, 2014, the Company had expended $221,000 in replacement costs which have been charged against this reserve. The remaining reserve amount of $451,000 is included in Other Accrued Expenses in the accompanying condensed consolidated balance sheet dated May 3, 2014.

Astro-Med is currently receiving power supplies with compliant materials and has resumed printer production and shipments to customers.

 

Since the supplier deviated from the agreed upon specifications for the power supply while providing certificates of conformance to the original specifications, in January 2014, Astro-Med received a $450,000 settlement from the supplier for recovery of the costs and expense associated with this issue. This settlement was recorded in cost of sales during the fourth quarter of the fiscal year ended January 31, 2014. In addition to this cash settlement, the Company will receive lower product prices from the supplier for a period of three years.

Recent Accounting Pronouncements (Policies)

Discontinued Operations

In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. In addition, this ASU expands the disclosure requirements for disposals that meet the definition of a discontinued operation and requires entities to disclose information about disposals of individually significant components that do not meet the definition of a discontinued operation. ASU 2014-08 is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2014. Early adoption is permitted for disposals that have not been reported in financial statements previously issued. We are currently evaluating the impact of the adoption of ASU 2014-08 and do not expect it to have a material effect on the Company’s financial position or results of operations.

Income Taxes

In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740)—Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability. This ASU is effective for annual and interim periods beginning after December 15, 2013, with early adoption permitted. The adoption of this guidance did not have a material effect on the Company’s financial position or results of operations.

Acquisition (Tables)

The following unaudited pro forma information assumes the acquisition of Miltope occurred on February 1, 2013. This information has been prepared for informational purposes only and does not purport to represent the results of operations that would have happened had the acquisition occurred as of the date indicated, nor of future results of operations.

 

     Three Months Ended
May 4, 2013
(In thousands)            

Net Revenue

   $ 17,485      

The purchase price of the acquisition has been allocated on the basis of the estimated fair value as follows:

 

(In thousands)       

Accounts Receivable

   $ 713   

Inventories

     2,503   

Identifiable Intangible Assets

     3,400   

Goodwill

     196   

Warranty Reserve

     (80
  

 

 

 

Total Purchase Price

   $ 6,732   
  

 

 

 
Net Income (Loss) Per Common Share (Tables)
Reconciliation of Shares Used in Calculating Basic and Diluted

A reconciliation of the shares used in calculating basic and diluted net income (loss) per share is as follows:

 

     Three Months Ended  
     May 3,
2014
     May 4,
2013
 

Weighted Average Common Shares Outstanding—Basic

     7,600,780         7,401,465   

Effect of Dilutive Options, Restricted Stock Awards and Restricted Stock Units

     247,520         —     
  

 

 

    

 

 

 

Weighted Average Common Shares Outstanding—Diluted

     7,848,300         7,401,465   
  

 

 

    

 

 

 
Share-Based Compensation (Tables)

Share-based compensation expense was recognized as follows:

 

     Three Months Ended  
     May 3, 2014      May 4, 2013  
(In thousands)              

Stock Options

   $ 54       $ 46   

Restricted Stock Awards and Restricted Stock Units

     77         115   
  

 

 

    

 

 

 

Total

   $ 131       $ 161   
  

 

 

    

 

 

 

The fair value of stock options granted during the three months ended May 3, 2014 and May 4, 2013 was estimated using the following assumptions:

 

     Three Months Ended  
     May 3, 2014     May 4, 2013  

Risk Free Interest Rate

     1.6     0.8

Expected Volatility

     26.8     38.5

Expected Life (in years)

     5.0        5.0   

Dividend Yield

     2.0     2.6

Aggregated information regarding stock options granted under the Plan for the three months ended May 3, 2014 is summarized below:

 

    Number of Options     Weighted Average
Exercise Price
    Weighted Average
Remaining
Contractual Life
(in Years)
    Aggregate Intrinsic
Value
 

Outstanding at January 31, 2014

    736,647      $ 8.63        4.7      $ 3,707,000   

Granted

    75,600        14.20       

Exercised

    (152,789     8.71       

Expired or canceled

    (8,986     8.70       
 

 

 

   

 

 

     

Outstanding at May 3, 2014

    650,472      $ 9.26        5.8      $ 2,324,921   
 

 

 

   

 

 

   

 

 

   

 

 

 

Exercisable at May 3, 2014

    452,599      $ 8.50        4.4      $ 1,878,835   
 

 

 

   

 

 

   

 

 

   

 

 

 

Aggregated information regarding RSUs and RSAs granted under the Plan for the three months ended May 3, 2014 is summarized below:

 

     RSAs & RSUs     Weighted Average
Grant Date Fair Value
 

Unvested at January 31, 2014

     106,496      $ 9.12   

Granted

     —          —     

Vested

     (15,618     8.53   

Forfeited

     (5,834     10.07   
  

 

 

   

 

 

 

Unvested at May 3, 2014

     85,044      $ 9.16   
  

 

 

   

 

 

 
Inventories (Tables)
Components of Inventories

The components of inventories are as follows:

 

     May 3, 2014     January 31, 2014  
(In thousands)             

Materials and Supplies

   $ 10,257      $ 10,722   

Work-In-Process

     1,657        852   

Finished Goods

     7,764        6,798   
  

 

 

   

 

 

 
     19,678        18,372   

Inventory Reserve

     (3,497     (3,194
  

 

 

   

 

 

 
   $ 16,181      $ 15,178   
  

 

 

   

 

 

 
Income Taxes (Tables)
Projected Effective Tax Rate for Periods

The Company’s effective tax rates for income (loss) from continuing operations based on the projected effective tax rate for the full year, are as follows:

 

     Three Months Ended  

Fiscal 2015

     28.5

Fiscal 2014

     (42.1 )% 
Segment Information (Tables)
Net Sales and Segment Operating Profit for Each Reporting Segment

Summarized below are the Net Sales and Segment Operating Profit for each reporting segment:

 

     Three Months Ended  
     Net Sales      Segment Operating Profit  

(In thousands)

   May 3,
2014
     May 4,
2013
     May 3,
2014
    May 4,
2013
 

QuickLabel

   $ 14,423       $ 11,396       $ 2,198      $ 891   

T&M

     6,351         4,089         692        201   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 20,774       $ 15,485         2,890        1,092   
  

 

 

    

 

 

      

Product Replacement Related Costs

           —         672  

Corporate Expenses

           1,191        1,142   
        

 

 

   

 

 

 

Operating Income (Loss)

           1,699        (722

Other Income (Expense)—Net

           (121     (36
        

 

 

   

 

 

 

Income (Loss) From Continuing Operations Before Income Taxes

           1,578        (758

Income Tax Provision (Benefit)

           449        (319
        

 

 

   

 

 

 
           1,129        (439

Loss From Discontinued Operations, Net of Income Taxes

           —          (10
        

 

 

   

 

 

 

Net Income (Loss)

         $ 1,129      $ (449
        

 

 

   

 

 

 
Securities Available for Sale (Tables)
Fair Value, Amortized Cost and Gross Unrealized Gains and Losses of the Securities

The fair value, amortized cost and gross unrealized gains and losses of the securities are as follows:

 

(In thousands)

May 3, 2014

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
    Fair Value  

State and Municipal Obligations

   $ 18,422       $ 35       $ (2 )   $ 18,455   
  

 

 

    

 

 

    

 

 

   

 

 

 

 

January 31, 2014

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
     Fair Value  

State and Municipal Obligations

   $ 18,729       $ 37       $ —        $ 18,766   
  

 

 

    

 

 

    

 

 

    

 

 

 
Fair Value (Tables)
Assets Measured at Fair Value on a Recurring Basis

Assets measured at fair value on a recurring basis are summarized below:

 

(In thousands)

May 3, 2014

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 5,110       $ —        $ —        $ 5,110   

State and Municipal Obligations (included in Securities Available for Sale)

     —           18,455         —           18,455   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 5,110       $ 18,455      $ —        $ 23,565   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

January 31, 2014

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 4,734       $ —        $ —        $ 4,734   

State and Municipal Obligations (included in Securities Available for Sale)

     —           18,766         —           18,766   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 4,734       $ 18,766      $ —        $ 23,500   
  

 

 

    

 

 

    

 

 

    

 

 

 
Accumulated Other Comprehensive Income (Tables)
Changes in the Balance of Accumulated Other Comprehensive Income

The changes in the balance of accumulated other comprehensive income by component are as follows:

 

(In thousands)    Foreign Currency
Translation
Adjustments
     Unrealized Holding Gain
on Available for
Sale Securities
    Total  

Balance at January 31, 2014

   $ 152       $ 24      $ 176   

Other Comprehensive Income (Loss)

     92         (3     89   

Amounts reclassified to Net Income

     —           —          —     
  

 

 

    

 

 

   

 

 

 

Net Other Comprehensive Income (Loss)

     92         (3     89   
  

 

 

    

 

 

   

 

 

 

Balance at May 3, 2014

   $ 244       $ 21      $ 265   
  

 

 

    

 

 

   

 

 

 
Discontinued Operations (Tables)
Summary of Discontinued Operations

Results for discontinued operations are as follows:

 

     May 4,
2013
 
(In thousands)       

Net Sales

   $ 1,745   

Gross Profit

   $ 48   

Net Loss from Discontinued Operations

   $ (10
Acquisition - Additional Information (Detail) (Miltope Ruggedized Printer Product Line Operation [Member], USD $)
0 Months Ended 3 Months Ended
Jan. 22, 2014
May 3, 2014
Miltope Ruggedized Printer Product Line Operation [Member]
 
 
Business Acquisition [Line Items]
 
 
Completion date of acquisition
 
Jan. 22, 2014 
Purchase price of the acquisition
$ 6,732,000 
 
Funded acquisition using existing cash
6,732,000 
 
Amount held in escrow related to business acquisition
$ 500,000 
 
Duration of escrow deposits
 
12 months 
Transition services period
 
6 months 
Acquisition - Purchase Price of Acquisition Allocated on Basis of Estimated Fair Value (Detail) (Miltope Ruggedized Printer Product Line Operation [Member], USD $)
In Thousands, unless otherwise specified
Jan. 22, 2014
Miltope Ruggedized Printer Product Line Operation [Member]
 
Business Acquisition [Line Items]
 
Accounts Receivable
$ 713 
Inventories
2,503 
Identifiable Intangible Assets
3,400 
Goodwill
196 
Warranty Reserve
(80)
Total Purchase Price
$ 6,732 
Acquisition - Unaudited Pro-Forma Information (Detail) (Miltope Ruggedized Printer Product Line Operation [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 4, 2013
Miltope Ruggedized Printer Product Line Operation [Member]
 
Business Acquisition [Line Items]
 
Net Revenue
$ 17,485 
Net Income (Loss) Per Common Share - Reconciliation of Shares Used in Calculating Basic and Diluted (Detail)
3 Months Ended
May 3, 2014
May 4, 2013
Equity [Abstract]
 
 
Weighted Average Common Shares Outstanding-Basic
7,600,780 
7,401,465 
Effect of Dilutive Options, Restricted Stock Awards and Restricted Stock Units
247,520 
 
Weighted Average Common Shares Outstanding-Diluted
7,848,300 
7,401,465 
Net Income (Loss) Per Common Share - Additional Information (Detail)
3 Months Ended
May 3, 2014
May 4, 2013
Equity [Abstract]
 
 
Anti-dilutive option
75,600 
155,900 
Anti-dilutive in the money options
 
175,951 
Share-Based Compensation - Additional Information (Detail) (USD $)
3 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended
May 3, 2014
Equity_Plan
May 4, 2013
Jan. 31, 2014
May 3, 2014
Employee Stock Purchase Plan [Member]
May 4, 2013
Employee Stock Purchase Plan [Member]
May 3, 2014
Non-Employee Director [Member]
Aug. 1, 2014
Chairman of Board [Member]
Scenario, Forecast [Member]
Aug. 1, 2014
Chair of Audit Committee [Member]
Scenario, Forecast [Member]
Aug. 1, 2014
Chair of Compensation Committee [Member]
Scenario, Forecast [Member]
May 3, 2014
Equity Incentive Plan [Member]
May 3, 2013
Equity Incentive Plan [Member]
May 3, 2014
Equity Incentive Plan [Member]
Non-Employee Director [Member]
May 3, 2014
Restricted Stock [Member]
Non-Employee Director [Member]
May 3, 2014
Stock Option [Member]
May 3, 2013
Stock Option [Member]
May 3, 2014
2013 Restricted Stock Units (RSUs) [Member]
First Anniversary [Member]
May 3, 2014
2013 Restricted Stock Units (RSUs) [Member]
Second Anniversary [Member]
May 3, 2014
2014 Restricted Stock Units (RSUs) [Member]
May 3, 2014
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
May 3, 2014
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
Net Sales Target [Member]
May 3, 2014
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
ORONA Target [Member]
May 3, 2014
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
Third Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of equity incentive plan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Award vesting period
 
 
 
 
 
 
 
 
 
 
 
 
12 months 
 
4 years 
 
 
 
 
 
 
 
Aggregate shares authorized for awards under the Plan
 
 
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
Shares available for grant under the Plan
 
 
 
 
 
 
 
 
 
290,609 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted stock unit vested percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
50.00% 
 
 
50.00% 
25.00% 
25.00% 
Maximum disposal restricted percentage of RSU
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cumulative budgeted net sales target measurement period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2014 through 2016 
 
 
 
Option expiration period
 
 
 
 
 
 
 
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
Stock options grant to each non-employee director
75,600 
 
 
 
 
 
 
 
 
 
 
5,000 
 
 
 
 
 
 
 
 
 
 
Non-employee director is entitled to an annual cash retainer
$ 7,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-employee director is entitled to an annual cash retainer additional
 
 
 
 
 
500 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of Chair Retainer payable
 
 
 
 
 
 
6,000 
4,000 
4,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-employee director received restricted stock award value
20,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options granted weighted average fair value per share
$ 2.93 
$ 2.79 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense related to unvested options
 
 
 
 
 
 
 
 
 
 
 
 
 
419,000 
 
 
 
 
 
 
 
 
Unrecognized compensation expense related to unvested options, recognize date
 
 
 
 
 
 
 
 
 
 
 
 
 
Through March 2018 
 
 
 
Through April 2016 
 
 
 
 
Unrecognized compensation expense related to unvested RSUs and RSAs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 300,000 
 
 
 
 
Employee Stock Purchase Plan discount rate
 
 
 
15.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reservation of shares under Stock Purchase Plan
247,500 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares purchase under Employee Stock Purchase Plan
 
 
 
815 
1,212 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock options granted
650,472 
 
736,647 
59,427 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-Based Compensation - Share-Based Compensation Expense (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 3, 2014
May 4, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based compensation, Total
$ 131 
$ 161 
Stock Options [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based compensation, Total
54 
46 
Restricted Stock Awards and Restricted Stock Units [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based compensation, Total
$ 77 
$ 115 
Share-Based Compensation - Fair Value of Stock Options Granted (Detail)
3 Months Ended
May 3, 2014
May 4, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
 
 
Risk Free Interest Rate
1.60% 
0.80% 
Expected Volatility
26.80% 
38.50% 
Expected Life (in years)
5 years 
5 years 
Dividend Yield
2.00% 
2.60% 
Share-Based Compensation - Aggregated Information Regarding Stock Options Granted (Detail) (USD $)
3 Months Ended 12 Months Ended
May 3, 2014
Jan. 31, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
 
 
Beginning balance, Number of Options
736,647 
 
Granted, Number of Options
75,600 
 
Exercised, Number of Options
(152,789)
 
Expired or canceled, Number of Options
(8,986)
 
Ending balance, Number of Options
650,472 
736,647 
Exercisable, Number of Options
452,599 
 
Beginning balance, Weighted Average Exercise Price
$ 8.63 
 
Granted, Weighted Average Exercise Price
$ 14.20 
 
Exercised, Weighted Average Exercise Price
$ 8.71 
 
Expired or canceled, Weighted Average Exercise Price
$ 8.70 
 
Ending balance, Weighted Average Exercise Price
$ 9.26 
$ 8.63 
Exercisable, Weighted Average Exercise Price
$ 8.50 
 
Weighted Average Remaining Contractual Life (in Years)
5 years 9 months 18 days 
4 years 8 months 12 days 
Exercisable, Weighted Average Remaining Contractual Life (in Years)
4 years 4 months 24 days 
 
Beginning balance, Aggregated Intrinsic Value
$ 3,707,000 
 
Ending balance, Aggregated Intrinsic Value
2,324,921 
3,707,000 
Exercisable, Aggregate Intrinsic Value
$ 1,878,835 
 
Share-Based Compensation - Aggregated Information Regarding RSUs and RSAs Granted (Detail) (USD $)
3 Months Ended
May 3, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
 
Beginning balance, Unvested Restricted Stock Units and Restricted Stock Awards
106,496 
Granted, Restricted Stock Units and Restricted Stock Awards
   
Vested, Restricted Stock Units and Restricted Stock Awards
(15,618)
Forfeited, Restricted Stock Units and Restricted Stock Awards
(5,834)
Ending balance, Unvested Restricted Stock Units and Restricted Stock Awards
85,044 
Beginning balance, Weighted Average Grant Date Fair Value
$ 9.12 
Granted, Weighted Average Grant Date Fair Value
   
Vested, Weighted Average Grant Date Fair Value
$ 8.53 
Forfeited, Weighted Average Grant Date Fair Value
$ 10.07 
Ending balance, Weighted Average Grant Date Fair Value
$ 9.16 
Inventories - Components of Inventories (Detail) (USD $)
In Thousands, unless otherwise specified
May 3, 2014
Jan. 31, 2014
Inventory Disclosure [Abstract]
 
 
Materials and Supplies
$ 10,257 
$ 10,722 
Work-In-Process
1,657 
852 
Finished Goods
7,764 
6,798 
Inventory, Gross
19,678 
18,372 
Inventory Reserve
(3,497)
(3,194)
Balance at May 3
$ 16,181 
$ 15,178 
Income Taxes - Projected Effective Tax Rate for Periods (Detail)
3 Months Ended
May 3, 2014
Income Tax Disclosure [Abstract]
 
Fiscal 2015
28.50% 
Fiscal 2014
(42.10%)
Income Taxes - Additional Information (Detail) (USD $)
3 Months Ended
May 3, 2014
May 4, 2013
Jan. 31, 2014
Income Tax Disclosure [Abstract]
 
 
 
Income tax expense
$ 449,000 
$ (319,000)
 
Expense included in income tax
549,000 
 
 
Pretax income and benefit
100,000 
 
 
Cumulative unrecognized tax benefits
$ 651,000 
 
$ 715,000 
Note Receivable and Line of Credit Issued - Additional Information (Detail) (USD $)
0 Months Ended 3 Months Ended
Jan. 30, 2012
May 3, 2014
Installment
Note Receivable And Line Of Credit Issued [Line Items]
 
 
Net sale price
$ 1,000,000 
 
Promissory note interest rate
3.75% 
 
Interest commencement date
 
Jan. 30, 2013 
Interest installments
 
16 
Promissory note outstanding
 
690,000 
Revolving Credit Facility [Member]
 
 
Note Receivable And Line Of Credit Issued [Line Items]
 
 
Revolving line of credit
 
600,000 
Line of credit facility maturity date
 
Jan. 31, 2015 
Extended revolving line of credit
 
$ 220,000 
Line of credit issued initial term
 
1 year 
Prime Rate [Member] |
Revolving Credit Facility [Member]
 
 
Note Receivable And Line Of Credit Issued [Line Items]
 
 
Interest rate on outstanding credit balance
 
2.00% 
Segment Information - Additional Information (Detail)
3 Months Ended
May 3, 2014
Segment
Segment Reporting [Abstract]
 
Number of reporting segments
Segment Information - Net Sales and Segment Operating Profit for Each Reporting Segment (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 3, 2014
May 4, 2013
Segment Reporting Information [Line Items]
 
 
Net Sales
$ 20,774 
$ 15,485 
Product Replacement Related Costs
 
672 
Corporate Expenses
1,191 
1,142 
Operating Income (Loss)
1,699 
(722)
Other Income (Expense)-Net
(121)
(36)
Income (Loss) From Continuing Operations Before Income Taxes
1,578 
(758)
Income Tax Provision (Benefit)
449 
(319)
Income (Loss) from Continuing Operations
1,129 
(439)
Loss From Discontinued Operations, Net of Income Taxes
 
(10)
Net Income (Loss)
1,129 
(449)
QuickLabel [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net Sales
14,423 
11,396 
T&M [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Net Sales
6,351 
4,089 
Astro Med Inc [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Operating Income (Loss)
2,890 
1,092 
Astro Med Inc [Member] |
QuickLabel [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Operating Income (Loss)
2,198 
891 
Astro Med Inc [Member] |
T&M [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Operating Income (Loss)
$ 692 
$ 201 
Securities Available for Sale - Additional Information (Detail) (USD $)
3 Months Ended
May 3, 2014
Schedule of Held-to-maturity Securities [Line Items]
 
Impairment charges on available for sale security
$ 0 
Maximum [Member]
 
Schedule of Held-to-maturity Securities [Line Items]
 
Anticipated maturity period
34 months 
Minimum [Member]
 
Schedule of Held-to-maturity Securities [Line Items]
 
Original maturity of short-term investments
90 days 
Anticipated maturity period
1 month 
Securities Available for Sale - Fair Value, Amortized Cost and Gross Unrealized Gains and Losses of the Securities (Detail) (State and Municipal Obligations [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
May 3, 2014
Jan. 31, 2014
State and Municipal Obligations [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
$ 18,422 
$ 18,729 
Gross Unrealized Gains
35 
37 
Gross Unrealized Losses
(2)
   
Fair Value
$ 18,455 
$ 18,766 
Fair Value - Additional Information (Detail) (Maximum [Member])
3 Months Ended
May 3, 2014
Maximum [Member]
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
Cash and cash equivalents, maturity period
90 days 
Fair Value - Assets Measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
May 3, 2014
Jan. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Money Market Funds (included in Cash and Cash Equivalents)
$ 5,110 
$ 4,734 
State and Municipal Obligations (included in Securities Available for Sale)
18,455 
18,766 
Total
23,565 
23,500 
Level 1 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Money Market Funds (included in Cash and Cash Equivalents)
5,110 
4,734 
State and Municipal Obligations (included in Securities Available for Sale)
   
   
Total
5,110 
4,734 
Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Money Market Funds (included in Cash and Cash Equivalents)
   
   
State and Municipal Obligations (included in Securities Available for Sale)
18,455 
18,766 
Total
18,455 
18,766 
Level 3 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Money Market Funds (included in Cash and Cash Equivalents)
   
   
State and Municipal Obligations (included in Securities Available for Sale)
   
   
Total
   
   
Accumulated Other Comprehensive Income - Changes in the Balance of Accumulated Other Comprehensive Income (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 3, 2014
May 4, 2013
Schedule of Capitalization, Equity [Line Items]
 
 
Beginning Balance
$ 176 
 
Other Comprehensive Income (Loss)
89 
 
Amounts reclassified to Net Income
   
 
Net Other Comprehensive Income (Loss)
89 
(155)
Ending Balance
265 
 
Foreign Currency Translation Adjustments [Member]
 
 
Schedule of Capitalization, Equity [Line Items]
 
 
Beginning Balance
152 
 
Other Comprehensive Income (Loss)
92 
 
Amounts reclassified to Net Income
   
 
Net Other Comprehensive Income (Loss)
92 
 
Ending Balance
244 
 
Unrealized Holding Gain on Available for Sale Securities [Member]
 
 
Schedule of Capitalization, Equity [Line Items]
 
 
Beginning Balance
24 
 
Other Comprehensive Income (Loss)
(3)
 
Amounts reclassified to Net Income
   
 
Net Other Comprehensive Income (Loss)
(3)
 
Ending Balance
$ 21 
 
Discontinued Operations - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
0 Months Ended 3 Months Ended
Jan. 31, 2013
May 3, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Proceeds from sale
 
$ 1,800 
Period of transition services and manufacturing, Maximum
 
12 months 
Transition Service Agreement expiration date
 
Jan. 31, 2014 
Amount received from disposition of inventory
 
(2,355)
Grass Technologies Product Group [Member]
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Proceeds from sale
18,600 
1,800 
Amount received from disposition of inventory
 
$ 2,355 
Discontinued Operations - Summary of Discontinued Operations (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
May 4, 2013
Discontinued Operations And Disposal Groups [Abstract]
 
Net Sales
$ 1,745 
Gross Profit
48 
Net Loss from Discontinued Operations
$ (10)
Commitments and Contingencies - Additional Information (Detail) (USD $)
1 Months Ended 3 Months Ended
Jan. 31, 2014
May 3, 2014
May 4, 2013
Commitments And Contingencies Disclosure [Abstract]
 
 
 
Estimated costs associated with the replacement program
 
 
$ 672,000 
Replacement costs charged against the reserve
 
221,000 
 
Other Accrued Expenses
 
451,000 
 
Cash received from supplier for recovery
$ 450,000 
 
 
Period of receiving lower product prices
 
3 years