Nature of Operations, Segment Reporting and Geographical Information

12 Months Ended

Jan. 31, 2013

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 and related 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 two reporting segments consistent with its sales product groups: Test & Measurement (T&M) and QuickLabel Systems (QuickLabel).

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 color and monochrome label printers, labeling software and consumables for a variety of commercial industries worldwide.

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.

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. Grass produced a range of instrumentation equipment and supplies for clinical neurophysiology (EEG and epilepsy monitoring), polysomnography (PSG—Sleep Monitoring) and biomedical research applications used by universities, medical centers and companies engaged in a variety of clinical and research activities. Consequently, the Company has classified the results of operations of Grass as discontinued operations for all periods presented. Refer to Note 17 for further details.

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.

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
	2013		2012		2013			2012			2013			2012
T&M	$	17,636	$	17,138	$	3,109		$	2,425			17.6	%		14.1	%
QuickLabel		43,588		43,586		4,380			2,553			10.0	%		5.9	%
Total	$	61,224	$	60,724		7,489			4,978			12.2	%		8.2	%
Corporate Expenses						4,563			3,969
Loss on Sale of Asheboro*						—			(681	)
Operating Income						2,926			328
Other Income (Expense), Net						(41	)		316
Income From Continuing Operations Before Income Taxes						2,885			644
Income Tax Provision (Benefit)						847			(97	)
						2,038			741
Income from Discontinued Operations, Net of Taxes						8,729			2,391
Net Income					$	10,767		$	3,132

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

No customer accounted for greater than 10% of net sales in fiscal 2013 and 2012.

Other information by segment is presented below:

(In thousands)	Assets
	2013		2012
T&M	$	10,493	$	10,300
QuickLabel		23,468		21,260
Discontinued Operations		3,131		11,054
Corporate*		42,821		24,448
Total	$	79,913	$	67,062

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

(In thousands)	Depreciation and Amortization				Capital Expenditures
	2013		2012		2013		2012
T&M	$	435	$	567	$	383	$	497
QuickLabel		710		806		398		535
Discontinued Operations		186		203		68		122
Total	$	1,331	$	1,576	$	849	$	1,154

Geographical Data

Presented below is selected financial information by geographic area:

(In thousands)	Net Sales				Long-Lived Assets
	2013		2012		2013		2012
United States	$	44,613	$	43,570	$	6,741	$	7,073
Europe		12,324		12,914		609		646
Canada		2,136		2,074		438		494
Asia		910		1,050		—		—
Central and South America		752		610		—		—
Other		489		506		—		—
Total	$	61,224	$	60,724	$	7,788	$	8,213

Long-lived assets excludes goodwill assigned to the T&M segment of $0.7 million at January 31, 2013 and 2012.