Nature Of Operations, Segment Reporting And Geographical Information

12 Months Ended

Jan. 31, 2012

Nature Of Operations, Segment Reporting And Geographical Information [Abstract]

Nature Of Operations, Segment Reporting And Geographical Information

Note 10—Nature of Operations, Segment Reporting and Geographical Information

The Company's operations consist of the design, development, manufacture and sale of specialty data recorder and acquisition systems, label printing and applicator systems, neuropsychological instrumentation systems and consumable supplies. The Company organizes and manages its business as a portfolio of products and services designed around a common theme of data acquisition and information output. The Company reports three reporting segments consistent with its sales product groups: Test & Measurement (T&M), QuickLabel Systems (QuickLabel), and Grass Technologies (Grass).

T&M produces data recording equipment used worldwide for a variety of recording, monitoring and troubleshooting applications for the aerospace, automotive, metal mill, power and telecommunications industries. QuickLabel produces an array of high-technology digital label printers, labeling software and consumables for a variety of commercial industries worldwide. Grass produces a range of instrumentation equipment and supplies for clinical neurophysiology (EEG and epilepsy monitoring), polysomnography (PSG—Sleep Monitoring) and biomedical research applications used worldwide by universities, medical centers and companies engaged in a variety of clinical and research activities. The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies herein. The Company evaluates segment performance based on the segment profit before corporate and financial administration expenses.

Business is conducted in the United States and through foreign affiliates in Canada and Europe. Manufacturing activities are primarily conducted in the United States. Sales and service activities outside the United States are conducted through wholly-owned entities and, to a lesser extent, through authorized distributors and agents. Transfer prices are intended to produce gross profit margins as would be associated with an arms-length transaction.

Summarized below are the Net Sales and Segment Operating Profit (both in dollars and as a percentage of Net Sales) for each reporting segment:

($ in thousands)	Net Sales				Segment Operating Profit					Segment Operating Profit % of Net Sales
	2012		2011		2012			2011		2012			2011
T&M	$	17,138	$	14,837	$	2,425		$	1,200		14.1	%		8.1	%
QuickLabel		43,586		39,500		2,553			1,847		5.9	%		4.7	%
Grass		18,469		16,679		3,592			3,358		19.5	%		20.1	%
Total	$	79,193	$	71,016		8,570			6,405		10.8	%		9.0	%
Corporate Expenses						3,972			3,749
Loss on Sale of Asheboro*						(681	)		—
Gain on Legal Settlement						—			104
Operating Income						3,917			2,760
Other Income, Net						316			24
Income Before Income Taxes						4,233			2,784
Income Tax Provision						1,101			722
Net Income					$	3,132		$	2,062

* The Asheboro operations were part of the QuickLabel Systems segment.

No customer accounted for greater than 10% of net sales in fiscal 2012 and 2011.

Other information by segment is presented below:

($ in thousands)	Assets
	2012		2011
T&M	$	10,300	$	10,205
QuickLabel		21,260		21,714
Grass		11,054		11,780
Corporate*		24,448		21,300
Total	$	67,062	$	64,999

* Corporate assets consist of cash and cash equivalents, securities available for sale, income tax accounts and miscellaneous fixed assets.

($ in thousands)	Depreciation and Amortization				Capital Expenditures
	2012		2011		2012		2011
T&M	$	567	$	455	$	497	$	324
QuickLabel		806		751		535		1,664
Grass		203		370		123		102
Total	$	1,576	$	1,576	$	1,155	$	2,090

Geographical Data

Presented below is selected financial information by geographic area:

($ in thousands)	Net Sales				Long-Lived Assets
	2012		2011		2012		2011
United States	$	55,004	$	50,614	$	10,031	$	11,352
Europe		14,915		12,016		646		705
Asia		3,882		3,450		—		—
Canada		3,145		3,014		494		485
Central and South America		1,406		1,059		—		—
Other		841		863		—		—
Total	$	79,193	$	71,016	$	11,171	$	12,542

Long-lived assets excludes goodwill assigned to the following segments: T&M $0.7 million and Grass $1.6 million at January 31, 2012 and 2011.