Supplementary Financial Information

12 Months Ended

Mar. 31, 2012

Supplementary Financial Information

Supplementary Financial Information

2.Supplementary Financial Information

Inventories

The following table presents details regarding our inventories:

	March 31,
	2012		2011
	(In thousands)
Materials and supplies	$	1,513	$	1,734
Work in process	98		84
Finished goods	843		574
	$	2,454	$	2,392

Property and Equipment

The following table presents details of our property and equipment:

	March 31,
	2012			2011
	(In thousands)
Equipment	$	5,545		$	8,101
Leasehold improvements	1,946			1,985
Accumulated depreciation	(5,543		)	(7,625		)
	$	1,948		$	2,461

Intangible Assets

The following table presents details regarding our intangible assets:

	March 31,
	2012					2011
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
	(In thousands)
Technology	$	1,856	$	(935	)	$	1,566	$	(719	)
Customer contracts / relationships	750		(122		)	500		(21		)
Other	1,110		(219		)	550		(31		)
Capitalized software development costs	138		—			—		—
Total	$	3,854	$	(1,276	)	$	2,616	$	(771	)

Amortization expense for intangible assets subject to amortization was approximately $504,000, $176,000 and $113,000 for the fiscal years ended March 31, 2012, 2011 and 2010, respectively.

In Fiscal 2012, we capitalized approximately $138,000 of internal costs incurred in developing software products to be sold. These costs related to the internal development of our performance measurement software offerings.

We do not have any intangible assets with indefinite useful lives. Future estimated amortization expense is as follows:

Year Ending March 31,
(In thousands)
2013	$	644
2014	627
2015	431
2016	360
2017	378
Thereafter	—
	$	2,440

Refer to Note 4 for additional information regarding intangible assets acquired during the last three fiscal years. If we acquire additional intangible assets in future periods, our amortization expense will increase.

Goodwill

The following table presents the activity related to the carrying value of our goodwill by reportable segment for Fiscal 2011 and Fiscal 2012:

	Roadway Sensors		Transportation Systems			Total
	(In thousands)
Balance - March 31, 2010
Goodwill	$	8,214	$	14,906		$	23,120
Accumulated impairment losses	—		—			—
	8,214		14,906			23,120
Acquisition of Meridian Environmental Technology, Inc. (Note 4)	—		1,372			1,372
Impairment loss	—		(7,970		)	(7,970		)
Balance - March 31, 2011
Goodwill	8,214		16,278			24,492
Accumulated impairment losses	—		(7,970		)	(7,970		)
	8,214		8,308			16,522
Acquisition of Berkeley Transportation Systems, Inc. (Note 4)	—		796			796
Balance - March 31, 2012
Goodwill	8,214		17,074			25,288
Accumulated impairment losses	—		(7,970		)	(7,970		)
	$	8,214	$	9,104		$	17,318

The measurement period adjustments in the table above are due primarily to certain income tax-related adjustments pertaining to our acquisition of Meridian Environmental Technology, Inc. in January 2011 (see Note 4).

Warranty Reserve Activity

The following table presents activity with respect to the warranty reserve:

	Year Ended March 31,
	2012			2011			2010
	(In thousands)
Balance at beginning of fiscal year	$	279		$	297		$	247
Additions charged to cost of sales	86			137			218
Warranty claims	(134		)	(155		)	(168		)
Balance at end of fiscal year	$	231		$	279		$	297

Earnings Per Share

The following table sets forth the computation of basic and diluted income (loss) from continuing operations per share:

	Year Ended March 31,
	2012		2011			2010
	(In thousands, except per share amounts)
Numerator:
Income (loss) from continuing operations	$	1,306	$	(5,154	)	$	2,394
Denominator:
Weighted average common shares used in basic computation	34,259		34,335			34,249
Dilutive stock options	96		—			185
Dilutive restricted stock units	25		—			—
Dilutive warrants	—		—			1
Weighted average common shares used in diluted computation	34,380		34,335			34,435
Income (loss) from continuing operations per share:
Basic	$	0.04	$	(0.15	)	$	0.07
Diluted	$	0.04	$	(0.15	)	$	0.07

The following instruments were excluded for purposes of calculating weighted average common share equivalents in the computation of diluted income (loss) from continuing operations per share as their effect would have been anti-dilutive:

	Year Ended March 31,
	2012	2011	2010
	(In thousands)
Stock options	1,840	1,467	1,790
Restricted stock units	—	54	—
Warrants	15	272	371