The Company and Operations

12 Months Ended

Feb. 28, 2013

The Company and Operations/Composition of Certain Balance Sheet Accounts [Abstract]

The Company and Operations

1. The Company and Operations

Meade Instruments Corp. (the “Company”) is engaged in the design, manufacture, marketing and sale of consumer products, primarily telescopes, telescope accessories and binoculars. The Company designs its products in-house or with the assistance of external consultants. Most of the entry level products are manufactured overseas by contract manufacturers in Asia, while the high-end telescopes are manufactured and assembled at the Company’s Mexico facility. Sales of the Company’s products are driven by an in-house sales force as well as a network of sales representatives throughout the U.S. and through distributors internationally. The Company currently operates out of two primary locations: Irvine, California and Tijuana, Mexico. The California facility serves as the Company’s corporate headquarters, research and development facility; the Mexico facility contains the Company’s manufacturing, assembly, repair, packaging, distribution and other general and administrative functions. The Company’s business is seasonal and the financial results have historically varied significantly on a quarter-by-quarter basis throughout each year.

The Company has incurred substantial losses for several years and has attempted repeatedly unsuccessfully to restructure the Company and return it to profitability. In January 2013, the Company’s board of directors decided that the Company should explore strategic alternatives in order to ensure that shareholder value was preserved. The Company’s board of directors approved a merger agreement and on May 17, 2013, the Company announced that it had entered into an Agreement and Plan of Merger which would allow for all outstanding shares of the Company to be purchased by a wholly-owned subsidiary of JOC North America LLC, a subsidiary of Jinghua Optics & Electronics for approximately $4.5 million.