Note 5 - Goodwill and Intangible Assets

6 Months Ended

Jul. 31, 2017

Goodwill and Intangible Assets Disclosure [Text Block]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The changes in the carrying amount of goodwill for the

six

months ended

July 31, 2017

were as follows:

	Gross Carrying Amount		Accumulated Impairment			Goodwill, Net
	(in thousands)
Balance at January 31, 2017	$	26,166	$	(15,608	)	$	10,558
Impact of foreign currency translation		314		-			314
Balance at July 31, 2017	$	26,480	$	(15,608	)	$	10,872

The Company performed its annual goodwill impairment review during the

fourth

quarter of fiscal

2017.

The analysis compared the Company’s market capitalization to its net assets as of the test date,

November 30, 2016.

As the market capitalization significantly exceeded the Company’s net assets, there was

indication of goodwill impairment for fiscal

2017.

The Company monitors the indicators for goodwill impairment testing between annual tests.

adverse events occurred during the

six

months ended

July 31, 2017

that would cause the Company to test goodwill for impairment.

Intangible Assets

	July 31, 2017			January 31, 2017
	(in thousands)
Amortizable intangible assets
Customer relationships (1)	$	1,500		$	2,721
Trade name		349			515
		1,849			3,236
Less: accumulated amortization		(1,707	)		(2,821	)
Net amortizable intangible assets	$	142		$	415

______________________

(

)

Customer relationships include the impact of foreign currency translation.

The Company’s intangible assets are related to the DynaSys and CEBOS acquisitions completed in fiscal

2013.

Intangible assets are included in “Other assets, net” in the accompanying Condensed Consolidated Balance Sheets. As of

July 31, 2017,

all of the Company’s intangible assets were determined to have finite useful lives, and therefore were subject to amortization. It is the Company’s policy to write off amortizable intangible assets once fully amortized. Accordingly, during the

second

quarter of fiscal

2018,

the Company wrote off approximately

$1.5

million of cost and accumulated amortization related to the DynaSys acquisition which became fully amortized during the quarter.

Amortization of intangible assets was

$0.3

million for each of the

six

months ended

July 31 2017

and

2016.

Estimated future amortization expense relating to the Company’s intangible assets as of

July 31, 2017

$142,000

in fiscal

2018.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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