ASTRO MED INC /NEW/, 10-Q filed on 12/11/2015
Quarterly Report
Document and Entity Information
9 Months Ended
Oct. 31, 2015
Dec. 4, 2015
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Oct. 31, 2015 
 
Document Fiscal Year Focus
2016 
 
Document Fiscal Period Focus
Q3 
 
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
 
7,340,736 
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2015
Jan. 31, 2015
CURRENT ASSETS
 
 
Cash and Cash Equivalents
$ 11,296 
$ 7,958 
Securities Available for Sale
11,159 
15,174 
Accounts Receivable, net
14,913 
14,107 
Inventories
15,124 
15,582 
Deferred Tax Assets
3,425 
2,629 
Line of Credit Receivable
150 
173 
Note Receivable
253 
255 
Asset Held for Sale
 
1,900 
Prepaid Expenses and Other Current Assets
3,465 
4,140 
Total Current Assets
59,785 
61,918 
PROPERTY, PLANT AND EQUIPMENT
38,951 
36,823 
Less Accumulated Depreciation
(29,535)
(28,444)
Property, Plant and Equipment, net
9,416 
8,379 
OTHER ASSETS
 
 
Note Receivable
 
256 
Intangible Assets, net
6,132 
2,698 
Goodwill
4,522 
991 
Other
92 
88 
Total Other Assets
10,746 
4,033 
TOTAL ASSETS
79,947 
74,330 
CURRENT LIABILITIES
 
 
Accounts Payable
5,375 
3,155 
Accrued Compensation
2,912 
3,302 
Other Liabilities and Accrued Expenses
2,379 
2,343 
Deferred Revenue
481 
621 
Income Taxes Payable
1,056 
148 
Total Current Liabilities
12,203 
9,569 
Deferred Tax Liabilities
65 
83 
Other Long Term Liabilities
1,070 
1,167 
TOTAL LIABILITIES
13,338 
10,819 
SHAREHOLDERS' EQUITY
 
 
Common Stock, $0.05 Par Value, Authorized 13,000,000 shares; Issued 9,601,043 shares and 9,544,864 shares at October 31, 2015 and January 31, 2015, respectively
480 
477 
Additional Paid-in Capital
44,718 
43,600 
Retained Earnings
41,897 
39,735 
Treasury Stock, at Cost, 2,297,659 and 2,293,606 shares at October 31, 2015 and January 31, 2015, respectively
(19,658)
(19,602)
Accumulated Other Comprehensive Loss
(828)
(699)
TOTAL SHAREHOLDERS' EQUITY
66,609 
63,511 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 79,947 
$ 74,330 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Oct. 31, 2015
Jan. 31, 2015
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
9,601,043 
9,544,864 
Treasury Stock, Shares
2,297,659 
2,293,606 
Condensed Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2015
Nov. 1, 2014
Oct. 31, 2015
Nov. 1, 2014
Income Statement [Abstract]
 
 
 
 
Net Sales
$ 24,753 
$ 23,137 
$ 70,897 
$ 66,277 
Cost of Sales
14,601 
12,985 
41,869 
37,901 
Gross Profit
10,152 
10,152 
29,028 
28,376 
Operating Expenses:
 
 
 
 
Selling and Marketing
4,563 
4,606 
13,555 
13,483 
Research and Development
1,839 
1,564 
5,200 
4,414 
General and Administrative
1,891 
1,407 
5,132 
4,041 
Operating Expenses
8,293 
7,577 
23,887 
21,938 
Operating Income, net
1,859 
2,575 
5,141 
6,438 
Other Income (Expense)
333 
(46)
587 
(85)
Income before Income Taxes
2,192 
2,529 
5,728 
6,353 
Income Tax Provision
873 
974 
2,031 
2,235 
Net Income
$ 1,319 
$ 1,555 
$ 3,697 
$ 4,118 
Net Income per Common Share-Basic
$ 0.18 
$ 0.20 
$ 0.51 
$ 0.54 
Net Income per Common Share-Diluted
$ 0.18 
$ 0.20 
$ 0.50 
$ 0.52 
Weighted Average Number of Common Shares Outstanding:
 
 
 
 
Basic
7,295 
7,730 
7,277 
7,678 
Diluted
7,466 
7,926 
7,462 
7,897 
Dividends Declared Per Common Share
$ 0.07 
$ 0.07 
$ 0.21 
$ 0.21 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2015
Nov. 1, 2014
Oct. 31, 2015
Nov. 1, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net Income
$ 1,319 
$ 1,555 
$ 3,697 
$ 4,118 
Other Comprehensive Loss, Net of Taxes and Reclassification Adjustments:
 
 
 
 
Foreign Currency Translation Adjustments
(7)
(307)
(120)
(348)
Unrealized Holding Gain (Loss) on Securities Available for Sale
(6)
(9)
(8)
Other Comprehensive Loss
(1)
(313)
(129)
(356)
Comprehensive Income
$ 1,318 
$ 1,242 
$ 3,568 
$ 3,762 
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Oct. 31, 2015
Nov. 1, 2014
Cash Flows from Operating Activities:
 
 
Net Income
$ 3,697 
$ 4,118 
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
 
 
Depreciation and Amortization
1,467 
1,541 
Share-Based Compensation
834 
381 
Deferred Income Tax Benefit
(814)
(23)
Changes in Assets and Liabilities, Net of Acquisition:
 
 
Accounts Receivable
(756)
(2,400)
Inventories
457 
(1,245)
Income Taxes
2,101 
(1,349)
Accounts Payable and Accrued Expenses
1,856 
1,984 
Other
(597)
(1,004)
Net Cash Provided by Operating Activities
8,245 
2,003 
Cash Flows from Investing Activities:
 
 
Proceeds from Sales/Maturities of Securities Available for Sale
7,693 
10,585 
Purchases of Securities Available for Sale
(3,692)
(9,462)
Acquisition of RITEC's Ruggedized Printer Business
(7,360)
 
Net Proceeds Received for Sale of Asset Held for Sale
1,698 
 
Release of Funds Held in Escrow From Sale of Grass
 
1,800 
Proceeds Received on Disposition of Grass Inventory
 
2,355 
Payments Received on Line of Credit and Note Receivable
270 
248 
Additions to Property, Plant and Equipment
(2,173)
(1,719)
Net Cash Provided (Used) by Investing Activities
(3,564)
3,807 
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
231 
959 
Dividends Paid
(1,534)
(1,619)
Net Cash Used by Financing Activities
(1,303)
(660)
Effect of Exchange Rate Changes on Cash and Cash Equivalents
(40)
(219)
Net Increase in Cash and Cash Equivalents
3,338 
4,931 
Cash and Cash Equivalents, Beginning of Period
7,958 
8,341 
Cash and Cash Equivalents, End of Period
11,296 
13,272 
Supplemental Disclosures of Cash Flow Information:
 
 
Cash Paid During the Period for Income Taxes, Net of Refunds
$ 711 
$ 3,602 
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, Mexico, Europe and Southeast Asia as well as with independent dealers and representatives. Astro-Med’s products 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 applications.

On September 25, 2015, the Company announced it will begin doing business as AstroNova on a worldwide basis. The name change is part of our plan to modernize the Company and effectively communicate our strategy. The AstroNova name and brand emphasizes our traditional strengths in aerospace and acknowledges our expanding presence in test and measurement, product identification and other new areas where we can apply our data visualization technology. Astro-Med’s Ruggedized products and Test and Measurement business will adopt the AstroNova brand. QuickLabel Systems products will continue to go to market under the QuickLabel® brand.

The Company has filed for trademark protection of the AstroNova name and logo in the United States and other countries.

The Company will continue to trade on NASDAQ stock exchange under its official name, Astro-Med, Inc., using its present ticker symbol, ALOT.

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 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, 2015.

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 June 19, 2015, Astro-Med completed the acquisition of the ruggedized printer product line for civil and commercial aircraft from Rugged Information Technology Equipment Corporation (RITEC) under the terms of an Asset Purchase Agreement dated June 18, 2015. The products of RITEC consist of rugged printers for use in commercial aircraft sold primarily to aircraft manufacturers, tier one contractors and directly to airlines around the world. 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 Company began shipment of RITEC products in the third quarter of the current fiscal year.

 

The purchase price of the acquisition was $7,360,000 which was funded using available cash and investment securities. Of the $7,360,000 purchase price, $750,000 is being held in escrow for twelve months following the acquisition date to support an indemnity to the Company in the event of any breach in the representations, warranties and covenants of RITEC. The assets acquired consist principally of accounts receivables and certain intangible assets. Acquisition related costs of approximately $18,000 and $107,000 are included in the general and administrative expenses in the Company’s consolidated statements of income for the three and nine months ended October 31, 2015, respectively. The acquisition was accounted for under the acquisition method in accordance with the guidance provided by FASB ASC 805, “Business Combinations.”

Astro-Med also entered into a Transition Services Agreement, under which RITEC will provide transition services and continue to manufacture products in the acquired product line for approximately six months after the date of purchase until the Company transitions the manufacturing to its West Warwick, Rhode Island facility. Upon expiration of the Transition Services Agreement, Astro-Med will purchase any inventory held by RITEC at its book value (net of reserves), which the Company estimates will be approximately $100,000.

Also as part of the Asset Purchase Agreement, Astro-Med entered into a License Agreement, which grants RITEC certain rights to use the intellectual property acquired by the Company in the design, development, marketing, manufacture, sale and servicing of ruggedized printers for aircraft sold to the military end-user market and printers sold to other non-aircraft market segments. RITEC will pay royalties equal to 7.5% of the sales price on all products sold into the military end-user aircraft market during the first five years of the License Agreement.

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

 

(In thousands)       

Accounts Receivable

   $ 50   

Identifiable Intangible Assets

     3,780   

Goodwill

     3,530   
  

 

 

 

Total Purchase Price

   $ 7,360   
  

 

 

 

The fair value of the identifiable intangible assets acquired was estimated by applying the income approach. This fair value measurement is based on significant inputs that are not observable in the market and therefore, represent a Level 3 measurement as defined in ASC 820, “Fair Value Measurement and Disclosure.” Key assumptions include (1) a weighted average cost of capital of 15.5%; (2) a range of earnings projections from $110,000-$700,000 and (3) a range of contract renewal probability from 0%-100%.

Goodwill of $3,530,000, which is deductible for tax purposes, represents the excess of the purchase price over the estimated fair value assigned to the tangible and identifiable intangible assets acquired from RITEC. The carrying amount of the goodwill was allocated to the T&M segment of the Company.

The following table reflects the fair value of the acquired identifiable intangible assets and related estimated useful lives:

 

(In thousands)    Fair
Value
     Useful Life
(Years)
 

Customer Contract Relationships

   $ 2,830         10   

Non-Compete Agreement

     950         5   
  

 

 

    

Total

   $ 3,780      
  

 

 

    

Assuming the acquisition of RITEC occurred on February 1, 2014, the impact on net sales, net income and earnings per share would not have been material to the Company for the three and nine months ended October 31, 2015 and November 1, 2014.

Net Income Per Common Share
Net Income Per Common Share

(5) Net Income 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, unvested restricted stock awards and restricted stock units outstanding during the period. A reconciliation of the shares used in calculating basic and diluted net income per share is as follows:

 

     Three Months Ended      Nine Months Ended  
     October 31,
2015
     November 1,
2014
     October 31,
2015
     November 1,
2014
 

Weighted Average Common Shares Outstanding—Basic

     7,294,595         7,729,530         7,277,356         7,677,751   

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

     171,557         196,620         185,058         219,310   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted Average Common Shares Outstanding—Diluted

     7,466,152         7,926,150         7,462,414         7,897,061   
  

 

 

    

 

 

    

 

 

    

 

 

 

For the three and nine months ended October 31, 2015 the diluted per share amounts do not reflect common equivalent shares outstanding of 449,100 and 424,100, respectively. For the three and nine months ended November 1, 2014 the diluted per share amounts do not reflect common equivalent shares outstanding of 155,000. These outstanding common equivalent shares were not included due to their anti-dilutive effect. Anti-dilutive shares consist of those common stock equivalents that have either an exercise price above the average stock price for the period, or the common stock equivalent’s related average unrecognized stock compensation expense is sufficient to “buy back” the entire amount of shares. Restricted stock units which vest based upon achievement of performance targets are excluded from the diluted shares outstanding unless the performance targets have been met as of the end of the reporting period regardless of whether such performance targets are probable of achievement as of the end of the measurement period.

Intangible Assets
Intangible Assets

(6) Intangible Assets

Intangible assets are as follows:

 

     October 31, 2015      January 31, 2015  
(In thousands)    Gross
Carrying
Amount
     Accumulated
Amortization
    Net
Carrying
Amount
     Gross
Carrying
Amount
     Accumulated
Amortization
    Net
Carrying
Amount
 

Intangible assets subject to amortization:

               

Customer Contract Relationships (Miltope)

   $ 3,100       $ (669   $ 2,431       $ 3,100       $ (402   $ 2,698   

Customer Contract Relationships (RITEC)

     2,830         (16 )     2,814         —          —         —    

Non-Compete Agreement (RITEC)

     950         (63     887         —          —         —    
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Intangible assets, net

   $ 6,880       $ (748   $ 6,132       $ 3,100       $ (402   $ 2,698   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

There were no impairments to intangible assets during the periods ended October 31, 2015 and November 1, 2014. Amortization expense of $152,000 and $175,000 in regards to the above acquired intangibles has been included in the condensed consolidated statement of income for the three months ended October 31, 2015 and November 1, 2014, respectively. Amortization expense of $347,000 and $526,000 in regards to the above acquired intangibles has been included in the condensed consolidated statement of income for the nine months ended October 31, 2015 and November 1, 2014, respectively.

Estimated amortization expense for the next five years is as follows:

 

(In thousands)    Remainder
of
2016
     2017      2018      2019      2020  

Estimated amortization expense

   $ 152       $ 715       $ 774       $ 769       $ 802   

Share-Based Compensation
Share-Based Compensation

(7) Share-Based Compensation

Astro-Med has two equity incentive plans – the 2007 Equity Incentive Plan (the “2007 Plan”) and the 2015 Equity Incentive Plan (the “2015 Plan”). Under these plans, the Company may grant incentive stock options, non-qualified stock options, stock appreciation rights, time or performance based restricted stock units (“RSUs”), restricted stock awards (“RSAs”), and other stock-based awards to executives, key employees, directors and other eligible individuals. At October 31, 2015, 107,122 shares were available for grant under the 2007 Plan, of which 100,000 are reserved for stock options that the Company is obligated to issue to its CEO in fiscal years 2017 and 2018 pursuant to an Equity Incentive Award Agreement dated as of November 24, 2014 (the “CEO Equity Incentive Agreement”). The 2007 Plan will expire in May 2017. The 2015 Plan was approved by the Company’s shareholders at the 2015 annual meeting. The 2015 Plan authorizes the issuance of up to 500,000 shares (subject to adjustment for stock dividends and stock splits) and will expire in May 2025. At October 31, 2015, 240,000 shares were available for grant under the 2015 Plan.

 

Options granted to date to employees under both Plans vest over four years and expire after ten years. The exercise price of each stock option is established at the discretion of the Compensation Committee; however, any incentive stock options granted under the 2007 Plan, and all options granted under the 2015 Plan, must be at an exercise price of not less than the fair market value of the Company’s common stock on the date of grant.

Under the Plans, each non-employee director receives an automatic annual grant of ten-year options to purchase 5,000 shares of stock upon the adjournment of each shareholders meeting. Each such option is exercisable at the fair market value of the Company’s common stock as of the grant date, and vests immediately prior to the next succeeding shareholders’ meeting. During the second quarter of fiscal 2016, 25,000 options in total were granted to the non-employee directors. In addition to the automatic option grant, 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, the Chairman of the Board also receives an annual retainer of $6,000, and the Chairs of the Audit and Compensation Committees each receive an annual retainer of $4,000 (“Chair Retainer”). The non-employee directors 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 one of the Plans. 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 the Company’s common stock on the date such installment is payable. The common stock received in lieu of such Cash Retainer is fully vested upon issuance. 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 non-employee director, or a change in control of the Company, any shares of common stock issued in lieu of the Cash Retainer, shall no longer be subject to such restrictions on transfer. During the first, second and third quarters of fiscal 2016, 698, 722 and 752 shares, respectively, were awarded to non-employee directors in lieu of 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 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.

In March 2012 (fiscal year 2013), a portion of the Company’s executives’ 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 (fiscal year 2014), the Company granted options and RSUs to officers (“2014 RSUs”). The 2014 RSUs will be earned and vest as follows: twenty-five percent vest on the third anniversary of the grant date, fifty percent vest upon the Company achieving its cumulative budgeted net sales target for fiscal years 2014 through 2016 (the “Measurement Period”), and twenty-five percent vest upon the Company 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 2014 RSUs until the first anniversary of the vesting date. On February 1, 2014, the Company accelerated the vesting of 4,166 of the 2014 RSUs held by Everett Pizzuti in connection with his retirement. None of the remaining 2014 RSUs, have vested as of October 31, 2015.

In March 2015 (fiscal year 2016), the Company granted 50,000 options and 537 RSAs to its CEO pursuant to the CEO Equity Incentive Agreement, and 35,000 options to other key employees. The options and RSAs vest in four equal annual installments commencing on the first anniversary of the grant date.

In May 2015 (fiscal year 2016), the Company granted an aggregate of 80,000 time-based and 155,000 performance-based RSUs (“2016 RSUs”) to certain officers of the Company. The time-based 2016 RSUs will vest in four equal annual installments commencing on the first anniversary of the grant date. The performance-based 2016 RSUs will vest over three years based upon the increase in net sales, if any, achieved each fiscal year relative to a three-year net sales increase goal. Performance-based 2016 RSUs that are earned based on organic revenue growth will be fully vested when earned, while those earned based on revenue growth via acquisitions will vest annually over a three-year period following the fiscal year in which the revenue growth occurs. Any performance-based 2016 RSUs that have not been earned at the end of the three-year performance period will be forfeited.

 

We account for compensation cost related to share-based payments based on the estimated fair value of the equity award. We estimate 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 expected future dividend yield. The stock price volatility assumption is based on the historical weekly price 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 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 RSUs and RSAs is based on the closing market price of the Company’s common stock on the grant date.

 

Share-based compensation expense was recognized as follows:

 

     Three Months Ended      Nine Months Ended  
     October 31,
2015
     November 1,
2014
     October 31,
2015
     November 1,
2014
 
(In thousands)                            

Stock Options

   $ 69       $ 62       $ 212       $ 174   

Restricted Stock Awards and Restricted Stock Units

     318         58         614         202   

Employee Stock Purchase Plan

     4         2         8         5   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 391       $ 122       $ 834       $ 381   
  

 

 

    

 

 

    

 

 

    

 

 

 

Stock Options

The fair value of stock options granted during the nine months ended October 31, 2015 and November 1, 2014 was estimated using the following assumptions:

 

     October 31,
2015
   November 1,
2014

Risk Free Interest Rate

       1.6%           1.6%   

Expected Volatility

       22.7%           26.8%   

Expected Life (in years)

       5.0              5.0      

Dividend Yield

       2.0%           2.0%   

The weighted average fair value per share for options granted during the nine months ended October 31, 2015 was $2.43, compared to $2.87 during the nine months ended November 1, 2014.

Aggregated information regarding stock options granted under the Plans for the nine months ended October 31, 2015 is summarized below:

 

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

Outstanding at January 31, 2015

     656,011      $ 10.01         4.2       $ 3,225,000   

Granted

     110,000      $ 13.98         

Exercised

     (30,482   $ 7.95         

Expired or canceled

     (2,093   $ 7.93         

Forfeited

     (700   $ 12.61         
  

 

 

         

Outstanding at October 31, 2015

     732,736      $ 10.70         5.9       $ 2,176,189   
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable at October 31, 2015

     480,023      $ 9.42         4.5       $ 1,980,934   
  

 

 

   

 

 

    

 

 

    

 

 

 

As of October 31, 2015, there was $508,000 of unrecognized compensation expense related to unvested options, which may be recognized through March 2019.

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

Aggregated information regarding RSUs and RSAs granted under the Plan for the nine months ended October 31, 2015 is summarized below:

 

     RSAs & RSUs     Weighted Average
Grant Date Fair Value
 

Unvested at January 31, 2015

     72,245      $ 9.70   

Granted

     244,824      $ 14.05   

Vested

     (21,917   $ 10.51   

Forfeited

     (2,800   $ 10.07   
  

 

 

   

Unvested at October 31, 2015

     292,352      $ 13.28   
  

 

 

   

 

 

 

 

As of October 31, 2015, there was $1,531,000 of unrecognized compensation expense related to unvested RSUs and RSAs which may be recognized through May 2019.

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 nine months ended October 31, 2015 and November 1, 2014, there were 3,795 and 2,464 shares, respectively, purchased under this plan. As of October 31, 2015, 53,210 shares remain available for purchase under the plan.

Inventories
Inventories

(8) 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:

 

(In thousands)    October 31, 2015     January 31, 2015  

Materials and Supplies

   $ 9,945      $ 10,600   

Work-In-Process

     627        765   

Finished Goods

     8,404        7,372   
  

 

 

   

 

 

 
     18,976        18,737   

Inventory Reserve

     (3,852     (3,155
  

 

 

   

 

 

 
   $ 15,124      $ 15,582   
  

 

 

   

 

 

 

Income Taxes
Income Taxes

(9) Income Taxes

The Company’s effective tax rates for the period, which are based on the projected effective tax rate for the full year, are as follows:

 

     Three Months Ended    Nine Months Ended

Fiscal 2016

       39.8%           35.5%   

Fiscal 2015

       38.5%           35.2%   

During the three months ended October 31, 2015, the Company recognized an income tax expense of approximately $873,000. The effective tax rate in this quarter was directly impacted by a $65,000 tax expense due to the change in estimate relating to prior year’s federal taxes. During the three months ended November 1, 2014, the Company recognized an income tax expense of approximately $974,000. The effective tax rate in this quarter was directly impacted by an $80,000 tax expense related to the change in estimate relating to prior year’s state taxes and offset by a tax benefit of $41,000 related to the favorable resolution of a previously uncertain tax position.

During the nine months ended October 31, 2015, the Company recognized income tax expense of $2,031,000. The effective tax rate in this period was directly impacted by a $135,000 tax benefit related to the statute of limitations expiring on a previously uncertain tax position and a $65,000 tax expense due to the change in estimate relating to prior year’s federal taxes. During the nine months ended November 1, 2014, the Company recognized income tax expense of $2,235,000 which was directly impacted by an $80,000 tax expense due to the change in estimate related to prior year’s state taxes, offset by a tax benefit of $141,000 related to the favorable resolution of a previously uncertain tax position.

As of October 31, 2015, the Company’s cumulative unrecognized tax benefits totaled $653,000 compared to $707,000 as of January 31, 2015. There were no other developments affecting unrecognized tax benefits during the period ended October 31, 2015.

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

(10) 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 secured by a first lien on various collateral, including the Asheboro plant and plant assets. The note bears interest at the rate of 3.75% per annum and is payable in sixteen quarterly installments of principal and interest which commenced on January 30, 2013. As of October 31, 2015, $253,000 remains outstanding on this note which approximates its estimated fair value.

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 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 on the outstanding credit balance. The term of this revolving line of credit has been extended through January 31, 2016. As of October 31, 2015, $150,000 remains outstanding on this revolving line of credit. The estimated fair value of the line of credit approximates its carrying value.

Segment Information
Segment Information

(11) Segment Information

Astro-Med reports two segments: QuickLabel Systems (QuickLabel) and Test & Measurement (T&M). The Company evaluates segment performance based on the segment profit before corporate expenses.

On June 19, 2015, Astro-Med completed the asset purchase of the ruggedized printer product line from RITEC. Astro-Med’s ruggedized printer product line is part of the T&M product group and is reported as part of the T&M segment. The Company began shipments of the RITEC products in the third quarter of the current fiscal year. Refer to Note 4, “Acquisition,” for further details.

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

 

     Three Months Ended     Nine Months Ended  
     Net Sales      Segment Operating Profit     Net Sales      Segment Operating Profit  

(In thousands)

   October 31,
2015
     November 1,
2014
     October 31,
2015
     November 1,
2014
    October 31,
2015
     November 1,
2014
     October 31,
2015
     November 1,
2014
 

QuickLabel

   $ 17,744       $ 15,252       $ 2,901       $ 1,959      $ 50,487       $ 44,931       $ 7,599       $ 6,405   

T&M

     7,009         7,885         849         2,023        20,410         21,346         2,674         4,074   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 24,753       $ 23,137         3,750         3,982      $ 70,897       $ 66,277         10,273         10,479   
  

 

 

    

 

 

         

 

 

    

 

 

       

Corporate Expenses

           1,891         1,407              5,132         4,041   
        

 

 

    

 

 

         

 

 

    

 

 

 

Operating Income

           1,859         2,575              5,141         6,438   

Other Income (Expense)—Net

           333         (46           587         (85
        

 

 

    

 

 

         

 

 

    

 

 

 

Income Before Income Taxes

           2,192         2,529              5,728         6,353   

Income Tax Provision

           873         974              2,031         2,235   
        

 

 

    

 

 

         

 

 

    

 

 

 

Net Income

         $ 1,319       $ 1,555            $ 3,697       $ 4,118   
        

 

 

    

 

 

         

 

 

    

 

 

 

Recent Accounting Pronouncements
Recent Accounting Pronouncements

(12) Recent Accounting Pronouncements

Inventory

In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-11, “Inventory (Topic 330).” ASU 2015-11 requires inventory to be measured at the lower of cost and net realizable value instead of at lower of cost or market. This guidance does not apply to inventory that is measured using last-in, first out (LIFO) or the retail inventory method but applies to all other inventory including inventory measured using first-in, first-out (FIFO) or the average cost method. ASU 2015-11 will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years (Q1 fiscal 2018 for Astro-Med) and should be applied prospectively. Early adoption is permitted as of the beginning of an interim or annual reporting period. Astro-Med is currently evaluating the effect of this new guidance on the Company’s consolidated financial statements.

Revenue Recognition

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 completes the joint effort by the FASB and International Accounting Standards Board (IASB) to improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards (IFRS). ASU 2014-09 applies to all companies that enter into contracts with customers to transfer goods or services. In July 2015, the FASB modified ASU 2014-09 to be effective for annual reporting periods beginning after December 15, 2017 (Q1 fiscal 2019 for Astro-Med), including interim periods within that reporting period. As modified, the FASB permits the adoption of the new revenue standard early, but not before the annual periods beginning after December 15, 2016. Entities have the choice to apply ASU 2014-09 either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying ASU 2014-09 at the date of initial application and not adjusting comparative information. The Company is currently evaluating the requirements of ASU 2014-09 and has not yet determined its impact on the Company’s consolidated financial statements.

No other new accounting pronouncements, issued or effective during the first nine 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

(13) 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 27 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 securities have original maturities greater than 90 days.

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

 

(In thousands)

October 31, 2015

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
    Fair Value  

State and Municipal Obligations

   $ 11,148       $ 14       $ (3   $ 11,159   
  

 

 

    

 

 

    

 

 

   

 

 

 

January 31, 2015

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
    Fair Value  

State and Municipal Obligations

   $ 15,150       $ 26       $ (2   $ 15,174   
  

 

 

    

 

 

    

 

 

   

 

 

 

Fair Value
Fair Value

(14) 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, accounts receivable, 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)

October 31, 2015

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 3,560       $ —        $ —        $ 3,560   

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

     —          11,159         —          11,159   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 3,560       $ 11,159       $ —        $ 14,719   
  

 

 

    

 

 

    

 

 

    

 

 

 

January 31, 2015

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 3,028       $ —        $ —        $ 3,028   

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

     —          15,174         —          15,174   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 3,028       $ 15,174       $ —        $ 18,202   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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.

Non-financial assets such as goodwill, intangible assets, and property, plant and equipment are required to be measured at fair value only when impairment loss is recognized. The Company did not record an impairment loss related to these assets during the nine month periods ended October 31, 2015 and November 1, 2014.

Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss

(15) Accumulated Other Comprehensive Loss

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

 

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

Balance at January 31, 2015

   $ (714    $ 15       $ (699

Other Comprehensive Loss

     (120      (9      (129
  

 

 

    

 

 

    

 

 

 

Balance at October 31, 2015

   $ (834    $ 6       $ (828
  

 

 

    

 

 

    

 

 

 

The amounts presented above in other comprehensive loss are net of taxes, except for translation adjustments associated with our German subsidiary.

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 power supplies for 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. As of October 31, 2015, the Company had expended $381,000 in replacement costs which have been charged against this reserve. The remaining reserve amount of $291,000 is included in Other Accrued Expenses in the accompanying condensed consolidated balance sheet dated October 31, 2015.

Astro-Med is currently receiving power supplies with compliant parts 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 non-refundable $450,000 settlement from the supplier for recovery of the costs and expense associated with this issue. In addition to this cash settlement, the Company is receiving lower product prices from the supplier through fiscal 2017.

Line of Credit
Line of Credit

(17) Line of Credit

The Company has a three-year, $10 million revolving line of credit available for ongoing working capital requirements, business acquisitions or general corporate purposes as needed. Any borrowings made under this line of credit bear interest at either a fluctuating base rate equal to the highest of (i) the Prime Rate, (ii) 1.50% above the daily one month LIBOR, and (iii) the Federal Funds Rate in effect plus 1.50% or at a fixed rate of LIBOR plus an agreed upon margin of between 0% and 2.25%, based on the Company’s funded debt to EBITDA ratio as defined in the agreement. The agreement provides for two financial covenant requirements, namely, Total Funded Debt to Adjusted EBITDA (as defined) of not greater than 3 to 1 and a Fixed Charge Coverage Ratio (as defined) of not less than 1.25 to 1, both measured at the end of each quarter on a rolling four quarter basis. As of October 31, 2015, there have been no borrowings against this line of credit and the Company was in compliance with its financial covenants.

Sale of Asset Held for Sale
Sale of Asset Held for Sale

(18) Sale of Asset Held for Sale

On October 29, 2015, the Company completed the sale of its former Grass Facility located in Rockland, Massachusetts for $1,800,000 in cash. The net cash proceeds received of $1,698,000 reflect closing costs and broker fees previously accrued. After considering reserved amounts, the net loss on the sale of $3,000 was recognized in the consolidated income statement for the three and nine month periods ended October 31, 2015.

Acquisition (Tables) (RITEC [Member])

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

 


(In thousands)       

Accounts Receivable

   $ 50   

Identifiable Intangible Assets

     3,780   

Goodwill

     3,530   
  

 

 

 

Total Purchase Price

   $ 7,360   
  

 

 

The following table reflects the fair value of the acquired identifiable intangible assets and related estimated useful lives:

 

(In thousands)    Fair
Value
     Useful Life
(Years)
 

Customer Contract Relationships

   $ 2,830         10   

Non-Compete Agreement

     950         5   
  

 

 

    

Total

   $ 3,780      
  

 

 

    
Net Income 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 per share is as follows:

 

     Three Months Ended      Nine Months Ended  
     October 31,
2015
     November 1,
2014
     October 31,
2015
     November 1,
2014
 

Weighted Average Common Shares Outstanding—Basic

     7,294,595         7,729,530         7,277,356         7,677,751   

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

     171,557         196,620         185,058         219,310   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted Average Common Shares Outstanding—Diluted

     7,466,152         7,926,150         7,462,414         7,897,061   
  

 

 

    

 

 

    

 

 

    

 

 

 
Intangible Assets (Tables)

Intangible assets are as follows:

 

     October 31, 2015      January 31, 2015  
(In thousands)    Gross
Carrying
Amount
     Accumulated
Amortization
    Net
Carrying
Amount
     Gross
Carrying
Amount
     Accumulated
Amortization
    Net
Carrying
Amount
 

Intangible assets subject to amortization:

               

Customer Contract Relationships (Miltope)

   $ 3,100       $ (669   $ 2,431       $ 3,100       $ (402   $ 2,698   

Customer Contract Relationships (RITEC)

     2,830         (16 )     2,814         —          —         —    

Non-Compete Agreement (RITEC)

     950         (63     887         —          —         —    
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Intangible assets, net

   $ 6,880       $ (748   $ 6,132       $ 3,100       $ (402   $ 2,698   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Estimated amortization expense for the next five years is as follows:

 

(In thousands)    Remainder
of
2016
     2017      2018      2019      2020  

Estimated amortization expense

   $ 152       $ 715       $ 774       $ 769       $ 802   

Share-Based Compensation (Tables)

Share-based compensation expense was recognized as follows:

 

     Three Months Ended      Nine Months Ended  
     October 31,
2015
     November 1,
2014
     October 31,
2015
     November 1,
2014
 
(In thousands)                            

Stock Options

   $ 69       $ 62       $ 212       $ 174   

Restricted Stock Awards and Restricted Stock Units

     318         58         614         202   

Employee Stock Purchase Plan

     4         2         8         5   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 391       $ 122       $ 834       $ 381   
  

 

 

    

 

 

    

 

 

    

 

 

 

The fair value of stock options granted during the nine months ended October 31, 2015 and November 1, 2014 was estimated using the following assumptions:

 

     October 31,
2015
   November 1,
2014

Risk Free Interest Rate

       1.6%           1.6%   

Expected Volatility

       22.7%           26.8%   

Expected Life (in years)

       5.0              5.0      

Dividend Yield

       2.0%           2.0%   

Aggregated information regarding stock options granted under the Plans for the nine months ended October 31, 2015 is summarized below:

 

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

Outstanding at January 31, 2015

     656,011      $ 10.01         4.2       $ 3,225,000   

Granted

     110,000      $ 13.98         

Exercised

     (30,482   $ 7.95         

Expired or canceled

     (2,093   $ 7.93         

Forfeited

     (700   $ 12.61         
  

 

 

         

Outstanding at October 31, 2015

     732,736      $ 10.70         5.9       $ 2,176,189   
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable at October 31, 2015

     480,023      $ 9.42         4.5       $ 1,980,934   
  

 

 

   

 

 

    

 

 

    

 

 

 

Aggregated information regarding RSUs and RSAs granted under the Plan for the nine months ended October 31, 2015 is summarized below:

 

     RSAs & RSUs     Weighted Average
Grant Date Fair Value
 

Unvested at January 31, 2015

     72,245      $ 9.70   

Granted

     244,824      $ 14.05   

Vested

     (21,917   $ 10.51   

Forfeited

     (2,800   $ 10.07   
  

 

 

   

Unvested at October 31, 2015

     292,352      $ 13.28   
  

 

 

   

 

 

 

 

Inventories (Tables)
Components of Inventories

The components of inventories are as follows:

 

(In thousands)    October 31, 2015     January 31, 2015  

Materials and Supplies

   $ 9,945      $ 10,600   

Work-In-Process

     627        765   

Finished Goods

     8,404        7,372   
  

 

 

   

 

 

 
     18,976        18,737   

Inventory Reserve

     (3,852     (3,155
  

 

 

   

 

 

 
   $ 15,124      $ 15,582   
  

 

 

   

 

 

 

Income Taxes (Tables)
Projected Effective Tax Rate for Periods

The Company’s effective tax rates for the period, which are based on the projected effective tax rate for the full year, are as follows:

 

     Three Months Ended    Nine Months Ended

Fiscal 2016

       39.8%           35.5%   

Fiscal 2015

       38.5%           35.2%   

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     Nine Months Ended  
     Net Sales      Segment Operating Profit     Net Sales      Segment Operating Profit  

(In thousands)

   October 31,
2015
     November 1,
2014
     October 31,
2015
     November 1,
2014
    October 31,
2015
     November 1,
2014
     October 31,
2015
     November 1,
2014
 

QuickLabel

   $ 17,744       $ 15,252       $ 2,901       $ 1,959      $ 50,487       $ 44,931       $ 7,599       $ 6,405   

T&M

     7,009         7,885         849         2,023        20,410         21,346         2,674         4,074   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 24,753       $ 23,137         3,750         3,982      $ 70,897       $ 66,277         10,273         10,479   
  

 

 

    

 

 

         

 

 

    

 

 

       

Corporate Expenses

           1,891         1,407              5,132         4,041   
        

 

 

    

 

 

         

 

 

    

 

 

 

Operating Income

           1,859         2,575              5,141         6,438   

Other Income (Expense)—Net

           333         (46           587         (85
        

 

 

    

 

 

         

 

 

    

 

 

 

Income Before Income Taxes

           2,192         2,529              5,728         6,353   

Income Tax Provision

           873         974              2,031         2,235   
        

 

 

    

 

 

         

 

 

    

 

 

 

Net Income

         $ 1,319       $ 1,555            $ 3,697       $ 4,118   
        

 

 

    

 

 

         

 

 

    

 

 

 

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 securities available for sale are as follows:

 

(In thousands)

October 31, 2015

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
    Fair Value  

State and Municipal Obligations

   $ 11,148       $ 14       $ (3   $ 11,159   
  

 

 

    

 

 

    

 

 

   

 

 

 

January 31, 2015

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
    Fair Value  

State and Municipal Obligations

   $ 15,150       $ 26       $ (2   $ 15,174   
  

 

 

    

 

 

    

 

 

   

 

 

 

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)

October 31, 2015

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 3,560       $ —        $ —        $ 3,560   

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

     —          11,159         —          11,159   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 3,560       $ 11,159       $ —        $ 14,719   
  

 

 

    

 

 

    

 

 

    

 

 

 

January 31, 2015

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 3,028       $ —        $ —        $ 3,028   

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

     —          15,174         —          15,174   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 3,028       $ 15,174       $ —        $ 18,202   
  

 

 

    

 

 

    

 

 

    

 

 

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

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

 

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

Balance at January 31, 2015

   $ (714    $ 15       $ (699

Other Comprehensive Loss

     (120      (9      (129
  

 

 

    

 

 

    

 

 

 

Balance at October 31, 2015

   $ (834    $ 6       $ (828
  

 

 

    

 

 

    

 

 

 

Acquisition - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Oct. 31, 2015
Oct. 31, 2015
Business Acquisition [Line Items]
 
 
Purchase price of the acquisition
 
$ 7,360,000 
Fair value assumptions, Weighted average cost of capital
 
15.50% 
Fair value key assumptions
 
Key assumptions include (1) a weighted average cost of capital of 15.5%; (2) a range of earnings projections from $110,000-$700,000 and (3) a range of contract renewal probability from 0%-100%. 
Minimum [Member]
 
 
Business Acquisition [Line Items]
 
 
Fair value assumptions, Earnings projections
 
110,000 
Fair value assumptions, Contract renewal probability
 
0.00% 
Maximum [Member]
 
 
Business Acquisition [Line Items]
 
 
Fair value assumptions, Earnings projections
 
700,000 
Fair value assumptions, Contract renewal probability
 
100.00% 
RITEC [Member]
 
 
Business Acquisition [Line Items]
 
 
Completion date of acquisition
 
Jun. 19, 2015 
Date of asset purchase agreement
 
Jun. 18, 2015 
Purchase price of the acquisition
 
7,360,000 
Amount held in escrow related to business acquisition
750,000 
750,000 
Duration of escrow deposits
 
12 months 
General and administrative expenses
18,000 
107,000 
Estimated inventory purchase
100,000 
100,000 
Percentage of royalties on sale price of products
 
7.50% 
Initial royalty payment period
 
5 years 
Goodwill deductible for tax purposes
$ 3,530,000 
$ 3,530,000 
Acquisition - Purchase Price of Acquisition Allocated on Basis of Fair Value (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2015
Jan. 31, 2015
Oct. 31, 2015
RITEC [Member]
Jun. 19, 2015
RITEC [Member]
Business Acquisition [Line Items]
 
 
 
 
Accounts Receivable
 
 
 
$ 50 
Identifiable Intangible Assets
 
 
3,780 
3,780 
Goodwill
4,522 
991 
 
3,530 
Total Purchase Price
 
 
 
$ 7,360 
Net Income Per Common Share - Reconciliation of Shares Used in Calculating Basic and Diluted (Detail)
3 Months Ended 9 Months Ended
Oct. 31, 2015
Nov. 1, 2014
Oct. 31, 2015
Nov. 1, 2014
Earnings Per Share [Abstract]
 
 
 
 
Weighted Average Common Shares Outstanding-Basic
7,295,000 
7,730,000 
7,277,000 
7,678,000 
Effect of Dilutive Options, Restricted Stock Awards and Restricted Stock Units
171,557 
196,620 
185,058 
219,310 
Weighted Average Common Shares Outstanding-Diluted
7,466,000 
7,926,000 
7,462,000 
7,897,000 
Net Income Per Common Share - Additional Information (Detail)
3 Months Ended 9 Months Ended
Oct. 31, 2015
Nov. 1, 2014
Oct. 31, 2015
Nov. 1, 2014
Earnings Per Share [Abstract]
 
 
 
 
Number of common equivalent shares
449,100 
155,000 
424,100 
155,000 
Intangible Assets - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Oct. 31, 2015
Nov. 1, 2014
Oct. 31, 2015
Nov. 1, 2014
Impairment of Intangible Assets (Excluding Goodwill) [Abstract]
 
 
 
 
Impairments of intangible assets
 
 
$ 0 
$ 0 
Amortization expense
$ 152,000 
$ 175,000 
$ 347,000 
$ 526,000 
Intangible Assets - Summary of Estimated Amortization Expense (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2015
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
Remainder of 2016
$ 152 
2017
715 
2018
774 
2019
769 
2020
$ 802 
Share-Based Compensation - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 1 Months Ended
Aug. 1, 2015
Oct. 31, 2015
Equity_Plan
Nov. 1, 2014
Oct. 31, 2015
2007 Equity Incentive Plan [Member]
Oct. 31, 2015
2015 Equity Incentive Plan [Member]
Oct. 31, 2015
Employee Stock Purchase Plan [Member]
Nov. 1, 2014
Employee Stock Purchase Plan [Member]
Oct. 31, 2015
Maximum [Member]
2015 Equity Incentive Plan [Member]
Aug. 1, 2015
Non-Employee Director [Member]
Aug. 1, 2015
Chairman of Board [Member]
Aug. 1, 2015
Chair of Audit Committee [Member]
Aug. 1, 2015
Chair of Compensation Committee [Member]
Mar. 31, 2015
Chief Executive Officer [Member]
Mar. 31, 2015
Other Key Employees [Member]
Oct. 31, 2015
RSA [Member]
Non-Employee Director [Member]
Mar. 31, 2015
RSA [Member]
Chief Executive Officer [Member]
Oct. 31, 2015
Stock Options [Member]
Oct. 31, 2015
Stock Options [Member]
2007 Equity Incentive Plan [Member]
Oct. 31, 2015
Stock Options [Member]
2015 Equity Incentive Plan [Member]
Oct. 31, 2015
2013 Restricted Stock Units (RSUs) [Member]
First Anniversary [Member]
Oct. 31, 2015
2013 Restricted Stock Units (RSUs) [Member]
Second Anniversary [Member]
Feb. 1, 2014
2014 Restricted Stock Units (RSUs) [Member]
Oct. 31, 2015
2014 Restricted Stock Units (RSUs) [Member]
Oct. 31, 2015
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
Oct. 31, 2015
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
Net Sales Target [Member]
Oct. 31, 2015
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
ORONA Target [Member]
Oct. 31, 2015
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
Third Anniversary [Member]
Oct. 31, 2015
Equity Incentive Plan [Member]
Non-Employee Director [Member]
Aug. 1, 2015
Equity Incentive Plan [Member]
Non-Employee Director [Member]
May 2, 2015
Equity Incentive Plan [Member]
Non-Employee Director [Member]
Oct. 31, 2015
Equity Incentive Plan [Member]
Non-Employee Director [Member]
Mar. 31, 2015
Restricted Stock And Stock Option [Member]
Installment
May 31, 2015
Time Based RSUs [Member]
Installment
May 31, 2015
Performance Based RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Incentive plan, expiration period
 
 
 
2017-05 
2025-05 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares available for grant under the Plan
 
 
 
107,122 
240,000 
53,210 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum number of shares of common stock of the Company authorized for issuance
 
 
 
 
 
 
 
500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reservation of shares under Stock Purchase Plan
 
247,500 
 
100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of equity incentive plan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Award vesting period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12 months 
 
 
4 years 
4 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 years 
Option expiration period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 years 
10 years 
 
 
 
 
 
 
 
 
 
 
 
10 years 
 
 
 
Number of options, granted
 
110,000 
 
 
 
 
 
 
25,000 
 
 
 
50,000 
35,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of stock options grant to each non-employee director
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
752 
722 
698 
 
 
 
 
Non-employee director received restricted stock award value
 
20,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted stock unit vested percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
50.00% 
 
 
 
50.00% 
25.00% 
25.00% 
 
 
 
 
 
 
 
Maximum disposal restricted percentage of RSU
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of accelerated vesting shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,166 
 
 
 
 
 
 
 
 
 
 
 
Cumulative budgeted net sales target measurement period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2014 through 2016 
 
 
 
 
 
 
 
 
 
 
Restricted stocks, granted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
537 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
80,000 
155,000 
Number of annual vesting installments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options granted weighted average fair value per share
 
$ 2.43 
$ 2.87 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense related to unvested options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
508,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense related to unvested options, recognize date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Through March 2019 
 
 
 
 
 
Through May 2019 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense related to unvested RSUs and RSAs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,531,000 
 
 
 
 
 
 
 
 
 
 
 
Employee Stock Purchase Plan discount rate
 
 
 
 
 
15.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares purchase under Employee Stock Purchase Plan
 
 
 
 
 
3,795 
2,464 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-Based Compensation - Share-Based Compensation Expense (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2015
Nov. 1, 2014
Oct. 31, 2015
Nov. 1, 2014
Share-based Compensation [Abstract]
 
 
 
 
Stock Options
$ 69 
$ 62 
$ 212 
$ 174 
Restricted Stock Awards and Restricted Stock Units
318 
58 
614 
202 
Employee Stock Purchase Plan
Total
$ 391 
$ 122 
$ 834 
$ 381 
Share-Based Compensation - Fair Value of Stock Options Granted (Detail)
9 Months Ended
Oct. 31, 2015
Nov. 1, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
Risk Free Interest Rate
1.60% 
1.60% 
Expected Volatility
22.70% 
26.80% 
Expected Life (in years)
5 years 
5 years 
Dividend Yield
2.00% 
2.00% 
Share-Based Compensation - Aggregated Information Regarding Stock Options Granted (Detail) (USD $)
9 Months Ended 12 Months Ended
Oct. 31, 2015
Jan. 31, 2015
Share-based Compensation [Abstract]
 
 
Beginning balance, Number of Options
656,011 
 
Granted, Number of Options
110,000 
 
Exercised, Number of Options
(30,482)
 
Expired or canceled, Number of Options
(2,093)
 
Forfeited, Number of Options
(700)
 
Ending balance, Number of Options
732,736 
656,011 
Exercisable, Number of Options
480,023 
 
Beginning balance, Weighted Average Exercise Price
$ 10.01 
 
Granted, Weighted Average Exercise Price
$ 13.98 
 
Exercised, Weighted Average Exercise Price
$ 7.95 
 
Expired or canceled, Weighted Average Exercise Price
$ 7.93 
 
Forfeited, Weighted Average Exercise Price
$ 12.61 
 
Ending balance, Weighted Average Exercise Price
$ 10.70 
$ 10.01 
Exercisable, Weighted Average Exercise Price
$ 9.42 
 
Weighted Average Remaining Contractual Life (in Years)
5 years 10 months 24 days 
4 years 2 months 12 days 
Exercisable, Weighted Average Remaining Contractual Life (in Years)
4 years 6 months 
 
Beginning balance, Aggregated Intrinsic Value
$ 3,225,000 
 
Ending balance, Aggregated Intrinsic Value
2,176,189 
 
Exercisable, Aggregate Intrinsic Value
$ 1,980,934 
$ 3,225,000 
Share-Based Compensation - Aggregated Information Regarding RSUs and RSAs Granted (Detail) (Restricted Stock Awards and Restricted Stock Units [Member], USD $)
9 Months Ended
Oct. 31, 2015
Restricted Stock Awards and Restricted Stock Units [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Beginning balance, Unvested Restricted Stock Units and Restricted Stock Awards
72,245 
Granted, Restricted Stock Units and Restricted Stock Awards
244,824 
Vested, Restricted Stock Units and Restricted Stock Awards
(21,917)
Forfeited, Restricted Stock Units and Restricted Stock Awards
(2,800)
Ending balance, Unvested Restricted Stock Units and Restricted Stock Awards
292,352 
Beginning balance, Weighted Average Grant Date Fair Value
$ 9.70 
Granted, Weighted Average Grant Date Fair Value
$ 14.05 
Vested, Weighted Average Grant Date Fair Value
$ 10.51 
Forfeited, Weighted Average Grant Date Fair Value
$ 10.07 
Ending balance, Weighted Average Grant Date Fair Value
$ 13.28 
Inventories - Components of Inventories (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2015
Jan. 31, 2015
Inventory Disclosure [Abstract]
 
 
Materials and Supplies
$ 9,945 
$ 10,600 
Work-In-Process
627 
765 
Finished Goods
8,404 
7,372 
Inventory, Gross
18,976 
18,737 
Inventory Reserve
(3,852)
(3,155)
Total Inventory
$ 15,124 
$ 15,582 
Income Taxes - Projected Effective Tax Rate for Periods (Detail)
3 Months Ended 9 Months Ended
Oct. 31, 2015
Nov. 1, 2014
Oct. 31, 2015
Nov. 1, 2014
Income Tax Disclosure [Abstract]
 
 
 
 
Effective tax rates for income from continuing operations
39.80% 
38.50% 
35.50% 
35.20% 
Income Taxes - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Oct. 31, 2015
Nov. 1, 2014
Oct. 31, 2015
Nov. 1, 2014
Jan. 31, 2015
Income Tax Benefit [Line Items]
 
 
 
 
 
Income tax expense
$ 873,000 
$ 974,000 
$ 2,031,000 
$ 2,235,000 
 
Favorable resolution of a previously uncertain tax position
 
41,000 
 
141,000 
 
Income tax benefit from expiration of the statue of limitations
 
 
135,000 
 
 
Cumulative unrecognized tax benefits
653,000 
 
653,000 
 
707,000 
Developments affecting unrecognized tax benefits
 
 
 
 
Federal Tax [Member]
 
 
 
 
 
Income Tax Benefit [Line Items]
 
 
 
 
 
Income tax expense (benefit) related to prior year's taxes
65,000 
 
65,000 
 
 
State Tax [Member]
 
 
 
 
 
Income Tax Benefit [Line Items]
 
 
 
 
 
Income tax expense (benefit) related to prior year's taxes
 
$ 80,000 
 
$ 80,000 
 
Note Receivable and Line of Credit Issued - Additional Information (Detail) (USD $)
0 Months Ended 9 Months Ended
Jan. 30, 2012
Oct. 31, 2015
Installment
Jan. 31, 2015
Jan. 30, 2012
Debt Disclosure [Abstract]
 
 
 
 
Net sale price
 
 
 
$ 1,000,000 
Promissory note interest rate
3.75% 
 
 
 
Interest commencement date
 
Jan. 30, 2013 
 
 
Interest installments
 
16 
 
 
Promissory note outstanding
 
253,000 
 
 
Revolving line of credit issued maximum
 
600,000 
 
 
Interest rate on outstanding credit balance
 
2.00% 
 
 
Line of credit facility maturity date
 
Jan. 31, 2016 
 
 
Extended revolving line of credit
 
$ 150,000 
$ 173,000 
 
Segment Information - Additional Information (Detail)
9 Months Ended
Oct. 31, 2015
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 9 Months Ended
Oct. 31, 2015
Nov. 1, 2014
Oct. 31, 2015
Nov. 1, 2014
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
$ 24,753 
$ 23,137 
$ 70,897 
$ 66,277 
Corporate Expenses
1,891 
1,407 
5,132 
4,041 
Operating Income, net
1,859 
2,575 
5,141 
6,438 
Other Income (Expense)-Net
333 
(46)
587 
(85)
Income Before Income Taxes
2,192 
2,529 
5,728 
6,353 
Income Tax Provision
873 
974 
2,031 
2,235 
Net Income
1,319 
1,555 
3,697 
4,118 
Operating Segments [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Operating Income, net
3,750 
3,982 
10,273 
10,479 
Operating Segments [Member] |
QuickLabel [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
17,744 
15,252 
50,487 
44,931 
Operating Income, net
2,901 
1,959 
7,599 
6,405 
Operating Segments [Member] |
T&M [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
7,009 
7,885 
20,410 
21,346 
Operating Income, net
849 
2,023 
2,674 
4,074 
Corporate Expenses [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Corporate Expenses
$ 1,891 
$ 1,407 
$ 5,132 
$ 4,041 
Securities Available for Sale - Additional Information (Detail) (USD $)
9 Months Ended
Oct. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
 
Impairment charges on available for sale security
$ 0 
Minimum [Member]
 
Schedule of Available-for-sale Securities [Line Items]
 
Original maturity of short-term investments
90 days 
Anticipated maturity period
1 month 
Maximum [Member]
 
Schedule of Available-for-sale Securities [Line Items]
 
Anticipated maturity period
27 months 
Securities Available for Sale - Fair Value, Amortized Cost and Gross Unrealized Gains and Losses of the Securities (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Oct. 31, 2015
Jan. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair Value
$ 11,159 
$ 15,174 
State and Municipal Obligations [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
11,148 
15,150 
Gross Unrealized Gains
14 
26 
Gross Unrealized Losses
(3)
(2)
Fair Value
$ 11,159 
$ 15,174 
Fair Value - Assets Measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
Oct. 31, 2015
Jan. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Money Market Funds (included in Cash and Cash Equivalents)
$ 3,560 
$ 3,028 
State and Municipal Obligations (included in Securities Available for Sale)
11,159 
15,174 
Total
14,719 
18,202 
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Money Market Funds (included in Cash and Cash Equivalents)
3,560 
3,028 
Total
3,560 
3,028 
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
State and Municipal Obligations (included in Securities Available for Sale)
11,159 
15,174 
Total
$ 11,159 
$ 15,174 
Accumulated Other Comprehensive Loss - Changes in the Balance of Accumulated Other Comprehensive Loss (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Oct. 31, 2015
Nov. 1, 2014
Oct. 31, 2015
Nov. 1, 2014
Schedule of Capitalization, Equity [Line Items]
 
 
 
 
Beginning Balance
 
 
$ (699)
 
Other Comprehensive Loss
(1)
(313)
(129)
(356)
Ending Balance
(828)
 
(828)
 
Foreign Currency Translation Adjustments [Member]
 
 
 
 
Schedule of Capitalization, Equity [Line Items]
 
 
 
 
Beginning Balance
 
 
(714)
 
Other Comprehensive Loss
 
 
(120)
 
Ending Balance
(834)
 
(834)
 
Unrealized Holding Gain on Available for Sale Securities [Member]
 
 
 
 
Schedule of Capitalization, Equity [Line Items]
 
 
 
 
Beginning Balance
 
 
15 
 
Other Comprehensive Loss
 
 
(9)
 
Ending Balance
$ 6 
 
$ 6 
 
Commitments and Contingencies - Additional Information (Detail) (USD $)
1 Months Ended 3 Months Ended 9 Months Ended
Jan. 31, 2014
May 4, 2013
Oct. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
 
 
 
Estimated replacement cost
 
$ 672,000