ASTRO MED INC /NEW/, 10-Q filed on 12/10/2014
Quarterly Report
Document and Entity Information
9 Months Ended
Nov. 1, 2014
Dec. 5, 2014
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Nov. 01, 2014 
 
Document Fiscal Year Focus
2015 
 
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
 
7,239,496 
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Nov. 1, 2014
Jan. 31, 2014
CURRENT ASSETS
 
 
Cash and Cash Equivalents
$ 13,272 
$ 8,341 
Securities Available for Sale
17,631 
18,766 
Accounts Receivable, net
13,766 
11,366 
Inventories
16,424 
15,178 
Deferred Tax Assets
1,701 
1,673 
Restricted Cash
 
1,800 
Line of Credit Receivable
180 
240 
Note Receivable
250 
250 
Asset Held for Sale
2,120 
2,120 
Prepaid Expenses and Other Current Assets
3,666 
1,383 
Current Assets of Discontinued Operations
 
3,917 
Total Current Assets
69,010 
65,034 
PROPERTY, PLANT AND EQUIPMENT
36,540 
34,960 
Less Accumulated Depreciation
(28,275)
(27,368)
Property, Plant and Equipment, net
8,265 
7,592 
OTHER ASSETS
 
 
Note Receivable
253 
440 
Deferred Tax Assets
270 
313 
Intangible Assets
2,873 
3,400 
Goodwill
991 
991 
Other
91 
194 
Total Other Assets
4,478 
5,338 
TOTAL ASSETS
81,753 
77,964 
CURRENT LIABILITIES
 
 
Accounts Payable
4,432 
2,374 
Accrued Compensation
3,279 
3,130 
Other Liabilities and Accrued Expenses
2,253 
2,310 
Deferred Revenue
492 
454 
Income Taxes Payable
113 
788 
Current Liabilities of Discontinued Operations
 
836 
Total Current Liabilities
10,569 
9,892 
Long Term Obligations
42 
250 
Deferred Tax Liabilities
39 
77 
Other Long Term Liabilities
1,007 
1,131 
TOTAL LIABILITIES
11,657 
11,350 
SHAREHOLDERS' EQUITY
 
 
Common Stock, $0.05 Par Value, Authorized 13,000,000 shares; Issued 9,513,370 shares and 9,291,225 shares at November 1, 2014 and January 31, 2014, respectively
476 
465 
Additional Paid-in Capital
43,191 
41,235 
Retained Earnings
39,700 
37,201 
Treasury Stock, at Cost, 1,776,121 shares and 1,730,042 shares at November 1, 2014 and January 31, 2014, respectively
(13,091)
(12,463)
Accumulated Other Comprehensive Income (Loss)
(180)
176 
TOTAL SHAREHOLDERS' EQUITY
70,096 
66,614 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 81,753 
$ 77,964 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Nov. 1, 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
9,513,370 
9,291,225 
Treasury Stock, Shares
1,776,121 
1,730,042 
Condensed Consolidated Statements of Income (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Nov. 1, 2014
Nov. 2, 2013
Nov. 1, 2014
Nov. 2, 2013
Income Statement [Abstract]
 
 
 
 
Net Sales
$ 23,137 
$ 18,179 
$ 66,277 
$ 50,858 
Cost of Sales
12,985 
10,816 
37,901 
30,796 
Product Replacement Related Costs
   
   
   
672 
Gross Profit
10,152 
7,363 
28,376 
19,390 
Operating Expenses:
 
 
 
 
Selling and Marketing
4,606 
3,727 
13,483 
10,680 
Research and Development
1,564 
1,230 
4,414 
3,617 
General and Administrative
1,407 
1,223 
4,041 
3,745 
Operating Expenses
7,577 
6,180 
21,938 
18,042 
Operating Income, net
2,575 
1,183 
6,438 
1,348 
Other Expense
(46)
(2)
(85)
(64)
Income from Continuing Operations before Income Taxes
2,529 
1,181 
6,353 
1,284 
Income Tax Provision for Continuing Operations
974 
436 
2,235 
446 
Income from Continuing Operations
1,555 
745 
4,118 
838 
Income from Discontinued Operations, net of tax benefit of $89 and tax expense of $333 for the three and nine months ended November 2, 2013, respectively
 
363 
 
517 
Net Income
$ 1,555 
$ 1,108 
$ 4,118 
$ 1,355 
Net Income per Common Share-Basic:
 
 
 
 
From Continuing Operations
$ 0.20 
$ 0.10 
$ 0.54 
$ 0.11 
From Discontinued Operations
 
$ 0.05 
 
$ 0.07 
Net Income Per Common Share-Basic
$ 0.20 
$ 0.15 
$ 0.54 
$ 0.18 
Net Income per Common Share-Diluted:
 
 
 
 
From Continuing Operations
$ 0.20 
$ 0.10 
$ 0.52 
$ 0.11 
From Discontinued Operations
 
$ 0.04 
 
$ 0.07 
Net Income Per Common Share-Diluted
$ 0.20 
$ 0.14 
$ 0.52 
$ 0.18 
Weighted Average Number of Common Shares Outstanding:
 
 
 
 
Basic
7,729,530 
7,489,690 
7,677,751 
7,449,251 
Diluted
7,926,150 
7,715,820 
7,897,061 
7,650,014 
Dividends Declared Per Common Share
$ 0.07 
$ 0.07 
$ 0.21 
$ 0.21 
Condensed Consolidated Statements of Income (Parenthetical) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Nov. 2, 2013
Nov. 2, 2013
Income Statement [Abstract]
 
 
Income tax expense (benefit) of discontinued operations
$ (89)
$ 333 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Nov. 1, 2014
Nov. 2, 2013
Nov. 1, 2014
Nov. 2, 2013
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net Income
$ 1,555 
$ 1,108 
$ 4,118 
$ 1,355 
Other Comprehensive Income (Loss), Net of Taxes and Reclassification Adjustments:
 
 
 
 
Foreign Currency Translation Adjustments
(307)
137 
(348)
(56)
Unrealized Holding Gain (Loss) on Securities Available for Sale
(6)
14 
(8)
18 
Net Other Comprehensive Income (Loss)
(313)
151 
(356)
(38)
Comprehensive Income
$ 1,242 
$ 1,259 
$ 3,762 
$ 1,317 
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Nov. 1, 2014
Nov. 2, 2013
Cash Flows from Operating Activities:
 
 
Net Income
$ 4,118 
$ 1,355 
Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities:
 
 
Depreciation and Amortization
1,541 
951 
Share-Based Compensation
381 
406 
Deferred Income Tax Provision (Benefit)
(23)
192 
Changes in Assets and Liabilities:
 
 
Accounts Receivable
(2,400)
(3,368)
Inventories
(1,245)
(1,039)
Income Taxes
(1,349)
(4,940)
Accounts Payable and Accrued Expenses
1,984 
1,087 
Other
(1,223)
362 
Net Cash Provided (Used) by Operating Activities
1,784 
(4,994)
Cash Flows from Investing Activities:
 
 
Proceeds from Sales/Maturities of Securities Available for Sale
10,585 
7,940 
Purchases of Securities Available for Sale
(9,462)
(19,056)
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
248 
 
Additions to Property, Plant and Equipment
(1,719)
(910)
Net Cash Provided (Used) by Investing Activities
3,807 
(12,026)
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
959 
564 
Dividends Paid
(1,619)
(1,569)
Net Cash Used by Financing Activities
(660)
(1,005)
Net Increase (Decrease) in Cash and Cash Equivalents
4,931 
(18,025)
Cash and Cash Equivalents, Beginning of Period
8,341 
30,999 
Cash and Cash Equivalents, End of Period
13,272 
12,974 
Supplemental Disclosures of Cash Flow Information:
 
 
Cash Paid During the Period for Income Taxes, Net of Refunds
$ 3,602 
$ 4,881 
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 applications.

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). The Company has classified the results of operations of its Grass segment as discontinued operations for the three and nine months periods ended November 2, 2013. 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, a company of VT Systems (“Miltope”). Astro-Med’s ruggedized printer product line is part of the Ruggedized product group and is reported as part of the Test & Measurement (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 three and nine months periods ended November 1, 2014. 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, which is engaged in the design, development, manufacture and testing of ruggedized computers and computer peripheral equipment for military, industry and commercial avionics applications. Astro-Med’s ruggedized printer product line is part of the Ruggedized 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 three and nine months periods ended November 1, 2014 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 is being 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 representations, 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 entered into a manufacturing services agreement under which Miltope provided transition services and continued to manufacture printers for Astro-Med. This agreement concluded in the third quarter of the current year, as the Company has transitioned all 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
November 2, 2013
   Nine Months Ended 
November 2, 2013
(In thousands)          

Net Sales

   $20,179    $56,858

The impact on net income and earnings per share would not have been material to the Company in fiscal 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, 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  
     November 1,
2014
     November 2,
2013
     November 1,
2014
     November 2,
2013
 

Weighted Average Common Shares Outstanding—Basic

     7,729,530         7,489,690         7,677,751         7,449,251   

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

     196,620         226,130         219,310         200,763   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted Average Common Shares Outstanding—Diluted

     7,926,150         7,715,820         7,897,061         7,650,014   
  

 

 

    

 

 

    

 

 

    

 

 

 

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. For the three and six months ended November 2, 2013, the diluted per share amounts do not reflect common equivalent shares outstanding of 131,600 and 172,100, respectively. These outstanding options were not included due to their anti-dilutive effect, as the exercise price was greater than the average market price of the underlying stock during the period presented.

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 November 1, 2014, 205,164 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 also receives an annual retainer of $6,000 and the Chair of the Audit Committee and Compensation Committee 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.

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      Nine Months Ended  
     November 1,
2014
     November 2,
2013
     November 1,
2014
     November 2,
2013
 
(In thousands)                            

Stock Options

   $ 64       $ 46       $ 179       $ 140   

Restricted Stock Awards and Restricted Stock Units

     58         81         202         266   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 122       $ 127       $ 381       $ 406   
  

 

 

    

 

 

    

 

 

    

 

 

 

Stock Options

The fair value of stock options granted during the nine months ended November 1, 2014 and November 2, 2013 was estimated using the following assumptions:

 

     Nine Months Ended  
     November 1, 2014     November 2, 2013  

Risk Free Interest Rate

     1.6     0.8

Expected Volatility

     26.8     38.3

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 $2.43, $2.93 and $2.84, during the first, second and third quarters of fiscal 2015, respectively, compared to $2.79 during the first and second quarters of fiscal 2014. No options were granted during the third quarter of fiscal 2014.

Aggregated information regarding stock options granted under the Plan for the nine months ended November 1, 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

     155,600        13.98         

Exercised

     (188,393     8.56         

Expired or canceled

     (10,787     9.07         
  

 

 

   

 

 

       

Outstanding at November 1, 2014

     693,067      $ 9.84         5.9       $ 2,485,570   
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable at November 1, 2014

     449,493      $ 8.62         4.2       $ 2,088,870   
  

 

 

   

 

 

    

 

 

    

 

 

 

As of November 1, 2014, there was $518,000 of unrecognized compensation expense related to unvested options, which will be recognized through August 2018.

 

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

Aggregated information regarding RSUs and RSAs granted under the Plan for the nine months ended November 1, 2014 is summarized below:

 

     RSAs & RSUs     Weighted Average
Grant Date Fair Value
 

Unvested at January 31, 2014

     106,496      $ 9.12   

Granted

     7,245        13.80   

Vested

     (35,662     8.75   

Forfeited

     (5,834     10.07   
  

 

 

   

 

 

 

Unvested at November 1, 2014

     72,245      $ 9.70   
  

 

 

   

 

 

 

As of November 1, 2014, there was $286,000 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 quarters ended November 1, 2014 and November 2, 2013, there were 872 and 886 shares respectively, purchased under this plan. During the nine months ended November 1, 2014 and November 2, 2013, there were 2,464 and 3,152 shares respectively, purchased under this plan. As of November 1, 2014, 57,778 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:

 

     November 1, 2014     January 31, 2014  
(In thousands)             

Materials and Supplies

   $ 10,671      $ 10,722   

Work-In-Process

     1,493        852   

Finished Goods

     7,859        6,798   
  

 

 

   

 

 

 
     20,023        18,372   

Inventory Reserve

     (3,599     (3,194
  

 

 

   

 

 

 
   $ 16,424      $ 15,178   
  

 

 

   

 

 

 

Income Taxes
Income Taxes

(8) Income Taxes

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

 

     Three Months Ended     Nine Months Ended  

Fiscal 2015

     38.5     35.2

Fiscal 2014

     36.9     34.7

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 under accrual of the 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 three months ended November 2, 2013, the Company recognized income tax expense on income from continuing operations of $436,000 which includes a benefit of approximately $18,000 recorded as the result of a favorable adjustment in the filing of a prior year’s tax return.

During the nine months ended November 1, 2014, the Company recognized an income tax expense of approximately $2,235,000. The effective tax rate in this quarter was directly impacted by an $80,000 tax expense related to the under accrual of the prior year’s state taxes and offset by a tax benefit of $141,000 related to the favorable resolution of a previously uncertain tax position. During the nine months ended November 2, 2013, the Company recognized an income tax expense of approximately $446,000 which included an expense of $464,000 on nine month pretax income from continuing operations and a benefit of $18,000 related to the favorable adjustment in the filing of the prior year’s tax returns.

As of November 1, 2014, the Company’s cumulative unrecognized tax benefits totaled $650,000 compared to $715,000 as of January 31, 2014. There were no developments affecting unrecognized tax benefits during the quarter ended November 1, 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 which commenced on January 30, 2013. The note receivable is disclosed at its present value on the accompanying condensed consolidated balance sheets. As of November 1, 2014, $503,000 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 on 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 November 1, 2014, $180,000 remains outstanding on this revolving line of credit.

Segment Information
Segment Information

(10) Segment Information

Astro-Med reports two segments: 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. The Company has classified the results of operations of Grass as discontinued operations for the three and nine months ended November 2, 2013. Refer to Note 15, “Discontinued Operations” for a further discussion.

On January 22, 2014, Astro-Med completed the acquisition of the ruggedized printer product line from Miltope. Astro-Med’s ruggedized printer product line is part of the Ruggedized 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 below for the three and nine months periods ended November 1, 2014. Assuming the acquisition of Miltope occurred on February 1, 2013 the Company’s net sales (on a pro forma basis) for the three and nine months periods ended November 2, 2013 would have been $20,179,000 and $56,858,000, respectively. Refer to Note 4, “Acquisition,” for further details.

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

(In thousands)

   November 1,
2014
     November 2,
2013
     November 1,
2014
    November 2,
2013
    November 1,
2014
     November 2,
2013
     November 1,
2014
    November 2,
2013
 

QuickLabel

   $ 15,252       $ 12,509       $ 1,959      $ 1,494      $ 44,931       $ 36,102       $ 6,405      $ 3,962   

T&M

     7,885         5,670         2,023        912        21,346         14,756         4,074        1,803   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 23,137       $ 18,179         3,982        2,406      $ 66,277       $ 50,858         10,479        5,765   
  

 

 

    

 

 

        

 

 

    

 

 

      

Product Replacement Related Costs

           —         —               —         672   

Corporate Expenses

           1,407        1,223              4,041        3,745   
        

 

 

   

 

 

         

 

 

   

 

 

 

Operating Income

           2,575        1,183              6,438        1,348   

Other Expense—Net

           (46     (2           (85     (64
        

 

 

   

 

 

         

 

 

   

 

 

 

Income From Continuing Operations Before Income Taxes

           2,529        1,181              6,353        1,284   

Income Tax Provision

           974        436              2,235        446   
        

 

 

   

 

 

         

 

 

   

 

 

 

Income From Continuing Operations

           1,555        745              4,118        838   

Income From Discontinued Operations, Net of Income Taxes

           —         363              —         517   
        

 

 

   

 

 

         

 

 

   

 

 

 

Net Income

         $ 1,555      $ 1,108            $ 4,118      $ 1,355   
        

 

 

   

 

 

         

 

 

   

 

 

 
Recent Accounting Pronouncements
Recent Accounting Pronouncements

(11) Recent Accounting Pronouncements

Revenue Recognition

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 and is effective for public entities for interim and annual reporting periods beginning after December 15, 2016. Early application is not permitted and 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.

Discontinued Operations

In April 2014, the FASB issued 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 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

(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 43 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)

November 1, 2014

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
    Fair Value  

State and Municipal Obligations

   $ 17,605       $ 28       $ (2 )   $ 17,631   
  

 

 

    

 

 

    

 

 

   

 

 

 

 

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)

November 1, 2014

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 5,954       $ —        $ —        $ 5,954   

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

     —          17,631         —          17,631   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 5,954       $ 17,631       $ —        $ 23,585   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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 (Loss)
Accumulated Other Comprehensive Income (Loss)

(14) Accumulated Other Comprehensive Income (Loss)

The changes in the balance of accumulated other comprehensive income (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, 2014

   $ 152      $ 24      $ 176   

Other Comprehensive Income (Loss)

     (348     (8     (356

Amounts reclassified to Net Income

     —         —         —    
  

 

 

   

 

 

   

 

 

 

Net Other Comprehensive Income (Loss)

     (348     (8     (356
  

 

 

   

 

 

   

 

 

 

Balance at November 1, 2014

   $ (196   $ 16      $ (180
  

 

 

   

 

 

   

 

 

 

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 were not significant and therefore Grass has been disclosed as a discontinued operation for the fiscal 2014 periods presented. The TSA 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 have not been, and are not expected to be material.

Results for discontinued operations are as follows:

 

     Three Months Ended
November 2,

2013
     Nine Months Ended
November 2,

2013
 
(In thousands)              

Net Sales

   $ 2,485       $ 6,201   

Gross Profit

   $ 290       $ 668   

Income from Discontinued Operations

   $ 363       $ 517   

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 in current assets 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 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 and are included in the cost of sales in the accompanying condensed consolidated statement of income for the nine months ended November 2, 2013. As of November 1, 2014, the Company had expended $271,000 in replacement costs which have been charged against this reserve. The remaining reserve amount of $402,000 is included in Other Accrued Expenses in the accompanying condensed consolidated balance sheet dated November 1, 2014.

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. 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 through fiscal 2017.

Line of Credit
Line of Credit

(17) Line of Credit

On September 5, 2014, Astro-Med entered into a new unsecured revolving line of credit agreement with Wells Fargo Bank to replace the previous agreement which expired on May 30, 2014. The terms of the new agreement are for a three-year, $10 million revolving line of credit to be available to the Company to be used for ongoing working capital requirements, business acquisitions or general corporate purposes as needed. Any borrowings made under the new 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. In addition, the new agreement provided 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 the November 1, 2014, there have been no borrowings against this line of credit and the Company was in compliance with its financial covenants.

Subsequent Event
Subsequent Event

(18) Subsequent Event

On December 5, 2014, the Company repurchased 500,000 shares of the Company’s common stock from the Estate of Albert W. Ondis for an aggregate purchase price of $6,250,000. Prior to entering into the Stock Purchase Agreement, the Company obtained an opinion from an independent investment banking firm as to the fairness, from a financial point of view, to the public shareholders of the Company other than the selling shareholders, of the consideration paid by the Company in the transaction. The purchase was funded using existing cash on hand. In regards to this transaction, the Company has filed a current report on Form 8-K dated December 5, 2014, which included, the Stock Repurchase Agreement dated December 4, 2014 as Exhibit 10.

Recent Accounting Pronouncements (Policies)
Recent Accounting Pronouncements

Recent Accounting Pronouncements

Revenue Recognition

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 and is effective for public entities for interim and annual reporting periods beginning after December 15, 2016. Early application is not permitted and 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.

Discontinued Operations

In April 2014, the FASB issued 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 nine months of the current year, have had or are expected to have a material impact on our consolidated financial statements.

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
November 2, 2013
   Nine Months Ended 
November 2, 2013
(In thousands)          

Net Sales

   $20,179    $56,858

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 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  
     November 1,
2014
     November 2,
2013
     November 1,
2014
     November 2,
2013
 

Weighted Average Common Shares Outstanding—Basic

     7,729,530         7,489,690         7,677,751         7,449,251   

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

     196,620         226,130         219,310         200,763   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted Average Common Shares Outstanding—Diluted

     7,926,150         7,715,820         7,897,061         7,650,014   
  

 

 

    

 

 

    

 

 

    

 

 

 
Share-Based Compensation (Tables)

Share-based compensation expense was recognized as follows:

 

     Three Months Ended      Nine Months Ended  
     November 1,
2014
     November 2,
2013
     November 1,
2014
     November 2,
2013
 
(In thousands)                            

Stock Options

   $ 64       $ 46       $ 179       $ 140   

Restricted Stock Awards and Restricted Stock Units

     58         81         202         266   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 122       $ 127       $ 381       $ 406   
  

 

 

    

 

 

    

 

 

    

 

 

 

The fair value of stock options granted during the nine months ended November 1, 2014 and November 2, 2013 was estimated using the following assumptions:

 

     Nine Months Ended  
     November 1, 2014     November 2, 2013  

Risk Free Interest Rate

     1.6     0.8

Expected Volatility

     26.8     38.3

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 nine months ended November 1, 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

     155,600        13.98         

Exercised

     (188,393     8.56         

Expired or canceled

     (10,787     9.07         
  

 

 

   

 

 

       

Outstanding at November 1, 2014

     693,067      $ 9.84         5.9       $ 2,485,570   
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable at November 1, 2014

     449,493      $ 8.62         4.2       $ 2,088,870   
  

 

 

   

 

 

    

 

 

    

 

 

 

Aggregated information regarding RSUs and RSAs granted under the Plan for the nine months ended November 1, 2014 is summarized below:

 

     RSAs & RSUs     Weighted Average
Grant Date Fair Value
 

Unvested at January 31, 2014

     106,496      $ 9.12   

Granted

     7,245        13.80   

Vested

     (35,662     8.75   

Forfeited

     (5,834     10.07   
  

 

 

   

 

 

 

Unvested at November 1, 2014

     72,245      $ 9.70   
  

 

 

   

 

 

 
Inventories (Tables)
Components of Inventories

The components of inventories are as follows:

 

     November 1, 2014     January 31, 2014  
(In thousands)             

Materials and Supplies

   $ 10,671      $ 10,722   

Work-In-Process

     1,493        852   

Finished Goods

     7,859        6,798   
  

 

 

   

 

 

 
     20,023        18,372   

Inventory Reserve

     (3,599     (3,194
  

 

 

   

 

 

 
   $ 16,424      $ 15,178   
  

 

 

   

 

 

 

Income Taxes (Tables)
Projected Effective Tax Rate for Periods

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

 

     Three Months Ended     Nine Months Ended  

Fiscal 2015

     38.5     35.2

Fiscal 2014

     36.9     34.7
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)

   November 1,
2014
     November 2,
2013
     November 1,
2014
    November 2,
2013
    November 1,
2014
     November 2,
2013
     November 1,
2014
    November 2,
2013
 

QuickLabel

   $ 15,252       $ 12,509       $ 1,959      $ 1,494      $ 44,931       $ 36,102       $ 6,405      $ 3,962   

T&M

     7,885         5,670         2,023        912        21,346         14,756         4,074        1,803   
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 23,137       $ 18,179         3,982        2,406      $ 66,277       $ 50,858         10,479        5,765   
  

 

 

    

 

 

        

 

 

    

 

 

      

Product Replacement Related Costs

           —         —               —         672   

Corporate Expenses

           1,407        1,223              4,041        3,745   
        

 

 

   

 

 

         

 

 

   

 

 

 

Operating Income

           2,575        1,183              6,438        1,348   

Other Expense—Net

           (46     (2           (85     (64
        

 

 

   

 

 

         

 

 

   

 

 

 

Income From Continuing Operations Before Income Taxes

           2,529        1,181              6,353        1,284   

Income Tax Provision

           974        436              2,235        446   
        

 

 

   

 

 

         

 

 

   

 

 

 

Income From Continuing Operations

           1,555        745              4,118        838   

Income From Discontinued Operations, Net of Income Taxes

           —         363              —         517   
        

 

 

   

 

 

         

 

 

   

 

 

 

Net Income

         $ 1,555      $ 1,108            $ 4,118      $ 1,355   
        

 

 

   

 

 

         

 

 

   

 

 

 

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

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

 

(In thousands)

November 1, 2014

   Amortized Cost      Gross Unrealized
Gains
     Gross Unrealized
Losses
    Fair Value  

State and Municipal Obligations

   $ 17,605       $ 28       $ (2 )   $ 17,631   
  

 

 

    

 

 

    

 

 

   

 

 

 

 

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)

November 1, 2014

   Level 1      Level 2      Level 3      Total  

Money Market Funds (included in Cash and Cash Equivalents)

   $ 5,954       $ —        $ —        $ 5,954   

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

     —          17,631         —          17,631   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 5,954       $ 17,631       $ —        $ 23,585   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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

The changes in the balance of accumulated other comprehensive income (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, 2014

   $ 152      $ 24      $ 176   

Other Comprehensive Income (Loss)

     (348     (8     (356

Amounts reclassified to Net Income

     —         —         —    
  

 

 

   

 

 

   

 

 

 

Net Other Comprehensive Income (Loss)

     (348     (8     (356
  

 

 

   

 

 

   

 

 

 

Balance at November 1, 2014

   $ (196   $ 16      $ (180
  

 

 

   

 

 

   

 

 

 

Discontinued Operations (Tables)
Summary of Discontinued Operations

Results for discontinued operations are as follows:

 

     Three Months Ended
November 2,

2013
     Nine Months Ended
November 2,

2013
 
(In thousands)              

Net Sales

   $ 2,485       $ 6,201   

Gross Profit

   $ 290       $ 668   

Income from Discontinued Operations

   $ 363       $ 517   

Acquisition - Additional Information (Detail) (Miltope's Ruggedized Printer Product Line Operation [Member], USD $)
9 Months Ended
Nov. 1, 2014
Jan. 22, 2014
Miltope's 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 
Amount held in escrow related to business acquisition
 
$ 500,000 
Duration of escrow deposits
12 months 
 
Acquisition - Purchase Price of Acquisition Allocated on Basis of Estimated Fair Value (Detail) (USD $)
In Thousands, unless otherwise specified
Nov. 1, 2014
Jan. 31, 2014
Jan. 22, 2014
Miltope's Ruggedized Printer Product Line Operation [Member]
Business Acquisition [Line Items]
 
 
 
Accounts Receivable
 
 
$ 713 
Inventories
 
 
2,503 
Identifiable Intangible Assets
 
 
3,400 
Goodwill
991 
991 
196 
Warranty Reserve
 
 
(80)
Total Purchase Price
 
 
$ 6,732 
Acquisition - Unaudited Pro-Forma Information (Detail) (Miltope's Ruggedized Printer Product Line Operation [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Nov. 2, 2013
Nov. 2, 2013
Miltope's Ruggedized Printer Product Line Operation [Member]
 
 
Business Acquisition [Line Items]
 
 
Net sales
$ 20,179 
$ 56,858 
Net Income Per Common Share - Reconciliation of Shares Used in Calculating Basic and Diluted (Detail)
3 Months Ended 9 Months Ended
Nov. 1, 2014
Nov. 2, 2013
Nov. 1, 2014
Nov. 2, 2013
Equity [Abstract]
 
 
 
 
Weighted Average Common Shares Outstanding-Basic
7,729,530 
7,489,690 
7,677,751 
7,449,251 
Effect of Dilutive Options, Restricted Stock Awards and Restricted Stock Units
196,620 
226,130 
219,310 
200,763 
Weighted Average Common Shares Outstanding-Diluted
7,926,150 
7,715,820 
7,897,061 
7,650,014 
Net Income Per Common Share - Additional Information (Detail)
3 Months Ended 6 Months Ended 9 Months Ended
Nov. 1, 2014
Nov. 2, 2013
Nov. 2, 2013
Nov. 1, 2014
Equity [Abstract]
 
 
 
 
Anti-dilutive option
155,000 
131,600 
172,100 
155,000 
Share-Based Compensation - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 9 Months Ended
Nov. 1, 2014
Aug. 2, 2014
May 3, 2014
Nov. 2, 2013
Aug. 3, 2013
May 4, 2013
Nov. 1, 2014
Equity_Plan
Nov. 2, 2013
Jan. 31, 2014
Nov. 1, 2014
Employee Stock Purchase Plan [Member]
Nov. 2, 2013
Employee Stock Purchase Plan [Member]
Nov. 1, 2014
Employee Stock Purchase Plan [Member]
Nov. 1, 2014
Non-Employee Director [Member]
Aug. 1, 2014
Chairman of Board [Member]
Aug. 1, 2014
Chair of Audit Committee [Member]
Aug. 1, 2014
Chair of Compensation Committee [Member]
Nov. 1, 2014
2013 Restricted Stock Units (RSUs) [Member]
First Anniversary [Member]
Nov. 1, 2014
2013 Restricted Stock Units (RSUs) [Member]
Second Anniversary [Member]
Nov. 1, 2014
2014 Restricted Stock Units (RSUs) [Member]
Nov. 1, 2014
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
Nov. 1, 2014
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
Net Sales Target [Member]
Nov. 1, 2014
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
ORONA Target [Member]
Nov. 1, 2014
2014 Restricted Stock Units (RSUs) [Member]
Officer [Member]
Third Anniversary [Member]
Nov. 1, 2014
Equity Incentive Plan [Member]
Nov. 1, 2014
Equity Incentive Plan [Member]
Non-Employee Director [Member]
Nov. 1, 2014
Restricted Stock [Member]
Non-Employee Director [Member]
Nov. 1, 2014
Stock Option [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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
205,164 
 
 
 
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
 
 
 
 
 
 
155,600 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
$ 2.84 
$ 2.93 
$ 2.43 
$ 0.00 
$ 2.79 
$ 2.79 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense related to unvested options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
518,000 
Unrecognized compensation expense related to unvested options, recognize date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Through April 2016 
 
 
 
 
 
 
 
Through August 2018 
Unrecognized compensation expense related to unvested RSUs and RSAs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 286,000 
 
 
 
 
 
 
 
 
Employee Stock Purchase Plan discount rate
 
 
 
 
 
 
 
 
 
 
 
15.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reservation of shares under Stock Purchase Plan
 
 
 
 
 
 
247,500 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares purchase under Employee Stock Purchase Plan
 
 
 
 
 
 
2,464 
3,152 
 
872 
886 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock options granted
693,067 
 
 
 
 
 
693,067 
 
736,647 
57,778 
 
57,778 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-Based Compensation - Share-Based Compensation Expense (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Nov. 1, 2014
Nov. 2, 2013
Nov. 1, 2014
Nov. 2, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Share-based compensation, Total
$ 122 
$ 127 
$ 381 
$ 406 
Stock Options [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Share-based compensation, Total
64 
46 
179 
140 
Restricted Stock Awards and Restricted Stock Units [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Share-based compensation, Total
$ 58 
$ 81 
$ 202 
$ 266 
Share-Based Compensation - Fair Value of Stock Options Granted (Detail)
9 Months Ended
Nov. 1, 2014
Nov. 2, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
Risk Free Interest Rate
1.60% 
0.80% 
Expected Volatility
26.80% 
38.30% 
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 $)
9 Months Ended 12 Months Ended
Nov. 1, 2014
Jan. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
Beginning balance, Number of Options
736,647 
 
Granted, Number of Options
155,600 
 
Exercised, Number of Options
(188,393)
 
Expired or canceled, Number of Options
(10,787)
 
Ending balance, Number of Options
693,067 
736,647 
Exercisable, Number of Options
449,493 
 
Beginning balance, Weighted Average Exercise Price
$ 8.63 
 
Granted, Weighted Average Exercise Price
$ 13.98 
 
Exercised, Weighted Average Exercise Price
$ 8.56 
 
Expired or canceled, Weighted Average Exercise Price
$ 9.07 
 
Ending balance, Weighted Average Exercise Price
$ 9.84 
$ 8.63 
Exercisable, Weighted Average Exercise Price
$ 8.62 
 
Weighted Average Remaining Contractual Life (in Years)
5 years 10 months 24 days 
4 years 8 months 12 days 
Exercisable, Weighted Average Remaining Contractual Life (in Years)
4 years 2 months 12 days 
 
Beginning balance, Aggregated Intrinsic Value
$ 3,707,000 
 
Ending balance, Aggregated Intrinsic Value
2,485,570 
 
Exercisable, Aggregate Intrinsic Value
$ 2,088,870 
$ 3,707,000 
Share-Based Compensation - Aggregated Information Regarding RSUs and RSAs Granted (Detail) (USD $)
9 Months Ended
Nov. 1, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
Beginning balance, Unvested Restricted Stock Units and Restricted Stock Awards
106,496 
Granted, Restricted Stock Units and Restricted Stock Awards
7,245 
Vested, Restricted Stock Units and Restricted Stock Awards
(35,662)
Forfeited, Restricted Stock Units and Restricted Stock Awards
(5,834)
Ending balance, Unvested Restricted Stock Units and Restricted Stock Awards
72,245 
Beginning balance, Weighted Average Grant Date Fair Value
$ 9.12 
Granted, Weighted Average Grant Date Fair Value
$ 13.80 
Vested, Weighted Average Grant Date Fair Value
$ 8.75 
Forfeited, Weighted Average Grant Date Fair Value
$ 10.07 
Ending balance, Weighted Average Grant Date Fair Value
$ 9.70 
Inventories - Components of Inventories (Detail) (USD $)
In Thousands, unless otherwise specified
Nov. 1, 2014
Jan. 31, 2014
Inventory Disclosure [Abstract]
 
 
Materials and Supplies
$ 10,671 
$ 10,722 
Work-In-Process
1,493 
852 
Finished Goods
7,859 
6,798 
Inventory, Gross
20,023 
18,372 
Inventory Reserve
(3,599)
(3,194)
Balance at November 1
$ 16,424 
$ 15,178 
Income Taxes - Projected Effective Tax Rate for Periods (Detail)
3 Months Ended 9 Months Ended
Nov. 1, 2014
Nov. 2, 2013
Nov. 1, 2014
Nov. 2, 2013
Income Tax Disclosure [Abstract]
 
 
 
 
Effective tax rates for income from continuing operations
38.50% 
36.90% 
35.20% 
34.70% 
Income Taxes - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Nov. 1, 2014
Nov. 2, 2013
Nov. 1, 2014
Nov. 2, 2013
Jan. 31, 2014
Income Tax Disclosure [Abstract]
 
 
 
 
 
Income tax expense
$ 974,000 
$ 436,000 
$ 2,235,000 
$ 446,000 
 
Income tax expense (benefit) related to prior year's state taxes
80,000 
(18,000)
80,000 
(18,000)
 
Income tax benefit from expiration of the statue of limitations
41,000 
 
141,000 
 
 
Expense included in income tax
 
 
 
464,000 
 
Cumulative unrecognized tax benefits
650,000 
 
650,000 
 
715,000 
Developments affecting unrecognized tax benefits
$ 0 
 
 
 
 
Note Receivable and Line of Credit Issued - Additional Information (Detail) (USD $)
0 Months Ended 9 Months Ended
Jan. 30, 2012
Nov. 1, 2014
Installment
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
 
503,000 
 
Revolving line of credit
 
600,000 
 
Interest rate on outstanding credit balance
 
2.00% 
 
Line of credit facility maturity date
 
Jan. 31, 2015 
 
Extended revolving line of credit
 
$ 180,000 
 
Line of credit issued initial term
 
1 year 
 
Segment Information - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 3 Months Ended 9 Months Ended
Nov. 1, 2014
Segment
Nov. 2, 2013
Miltope's Ruggedized Printer Product Line Operation [Member]
Nov. 2, 2013
Miltope's Ruggedized Printer Product Line Operation [Member]
Sales Information [Line Items]
 
 
 
Number of reporting segments
 
 
Net sales
 
$ 20,179 
$ 56,858 
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
Nov. 1, 2014
Nov. 2, 2013
Nov. 1, 2014
Nov. 2, 2013
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
$ 23,137 
$ 18,179 
$ 66,277 
$ 50,858 
Product Replacement Related Costs
   
   
   
672 
Corporate Expenses
1,407 
1,223 
4,041 
3,745 
Operating Income
2,575 
1,183 
6,438 
1,348 
Other Expense-Net
(46)
(2)
(85)
(64)
Income From Continuing Operations Before Income Taxes
2,529 
1,181 
6,353 
1,284 
Income Tax Provision
974 
436 
2,235 
446 
Income from Continuing Operations
1,555 
745 
4,118 
838 
Income From Discontinued Operations, Net of Income Taxes
 
363 
 
517 
Net Income
1,555 
1,108 
4,118 
1,355 
Operating Segments [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Operating Income
3,982 
2,406 
10,479 
5,765 
Operating Segments [Member] |
QuickLabel [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
15,252 
12,509 
44,931 
36,102 
Operating Income
1,959 
1,494 
6,405 
3,962 
Operating Segments [Member] |
T&M [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net Sales
7,885 
5,670 
21,346 
14,756 
Operating Income
$ 2,023 
$ 912 
$ 4,074 
$ 1,803 
Securities Available for Sale - Additional Information (Detail) (USD $)
9 Months Ended
Nov. 1, 2014
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]
 
Anticipated maturity period
1 month 
Maximum [Member]
 
Schedule of Available-for-sale Securities [Line Items]
 
Anticipated maturity period
43 months 
Securities Available for Sale - Fair Value, Amortized Cost and Gross Unrealized Gains and Losses of Securities Available for Sale (Detail) (USD $)
In Thousands, unless otherwise specified
9 Months Ended 12 Months Ended
Nov. 1, 2014
Jan. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
 
 
Fair Value
$ 17,631 
$ 18,766 
State and Municipal Obligations [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
17,605 
18,729 
Gross Unrealized Gains
28 
37 
Gross Unrealized Losses
(2)
 
Fair Value
$ 17,631 
$ 18,766 
Fair Value - Assets Measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Thousands, unless otherwise specified
Nov. 1, 2014
Jan. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Money Market Funds (included in Cash and Cash Equivalents)
$ 5,954 
$ 4,734 
State and Municipal Obligations (included in Securities Available for Sale)
17,631 
18,766 
Total
23,585 
23,500 
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)
5,954 
4,734 
State and Municipal Obligations (included in Securities Available for Sale)
   
   
Total
5,954 
4,734 
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Money Market Funds (included in Cash and Cash Equivalents)
   
   
State and Municipal Obligations (included in Securities Available for Sale)
17,631 
18,766 
Total
17,631 
18,766 
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [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 (Loss) - Changes in the Balance of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Nov. 1, 2014
Nov. 2, 2013
Nov. 1, 2014
Nov. 2, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Beginning Balance
 
 
$ 176 
 
Other Comprehensive Income (Loss)
 
 
(356)
 
Amounts reclassified to Net Income
 
 
   
 
Net Other Comprehensive Income (Loss)
(313)
151 
(356)
(38)
Ending Balance
(180)
 
(180)
 
Foreign Currency Translation Adjustments [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Beginning Balance
 
 
152 
 
Other Comprehensive Income (Loss)
 
 
(348)
 
Amounts reclassified to Net Income
 
 
   
 
Net Other Comprehensive Income (Loss)
 
 
(348)
 
Ending Balance
(196)
 
(196)
 
Unrealized Holding Gain on Available for Sale Securities [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Beginning Balance
 
 
24 
 
Other Comprehensive Income (Loss)
 
 
(8)
 
Amounts reclassified to Net Income
 
 
   
 
Net Other Comprehensive Income (Loss)
 
 
(8)
 
Ending Balance
$ 16 
 
$ 16 
 
Discontinued Operations - Additional Information (Detail) (USD $)
0 Months Ended 3 Months Ended 9 Months Ended
Jan. 31, 2013
May 3, 2014
Nov. 1, 2014
Discontinued Operations and Disposal Groups [Abstract]
 
 
 
Proceeds from sale
$ 18,600,000 
 
$ 1,800,000 
Period of transition services and manufacturing, Maximum
 
 
12 months 
Transition Service Agreement expiration date
 
 
Jan. 31, 2014 
Amount received from disposition of inventory
 
$ 2,355,000 
$ (2,355,000)
Discontinued Operations - Summary of Discontinued Operations (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Nov. 2, 2013
Nov. 2, 2013
Discontinued Operations and Disposal Groups [Abstract]
 
 
Net Sales
$ 2,485 
$ 6,201 
Gross Profit
290 
668 
Income from Discontinued Operations
$ 363 
$ 517 
Commitments and Contingencies - Additional Information (Detail) (USD $)
1 Months Ended 3 Months Ended 9 Months Ended
Jan. 31, 2014
Nov. 1, 2014
Nov. 2, 2013
Nov. 1, 2014
Nov. 2, 2013
Commitments and Contingencies Disclosure [Abstract]
 
 
 
 
 
Estimated costs associated with the replacement program
 
    
    
    
$ 672,000 
Replacement costs charged against the reserve
 
271,000 
 
271,000 
 
Other Accrued Expenses
 
402,000 
 
402,000 
 
Non-refundable settlement from supplier for recovery
$ 450,000 
 
 
 
 
Period of receiving lower product prices
 
 
 
3 years 
 
Line of Credit - Additional Information (Detail) (Wells Fargo Bank [Member], USD $)
9 Months Ended
Nov. 1, 2014
Credit Facilities [Line Items]
 
Agreement expiration date
May 30, 2014 
Revolving line of credit
$ 10,000,000 
Agreement term
3 years 
Line of credit, interest rate description
Any borrowings made under the new 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. 
Borrowings against new line of credit
$ 0 
Fixed Charge Coverage Ratio
Funded debt to adjusted EBITDA ratio
1.25 
London Interbank Offered Rate (LIBOR) [Member]
 
Credit Facilities [Line Items]
 
Percentage above rate
1.50% 
London Interbank Offered Rate (LIBOR) [Member] |
Minimum [Member]
 
Credit Facilities [Line Items]
 
Percentage above rate
0.00% 
London Interbank Offered Rate (LIBOR) [Member] |
Maximum [Member]
 
Credit Facilities [Line Items]
 
Percentage above rate
2.25% 
Federal Funds Effective Swap Rate [Member]
 
Credit Facilities [Line Items]
 
Percentage above rate
1.50% 
Subsequent Event - Additional Information (Detail) (Subsequent Event [Member], USD $)
0 Months Ended
Dec. 5, 2014
Subsequent Event [Member]
 
Subsequent Event [Line Items]
 
Stock Repurchased During Period, Shares
500,000 
Stock Repurchased During Period, Value
$ 6,250,000