Nature of Operations, Segment Reporting and Geographical Information

12 Months Ended

Jan. 31, 2014

Segment Reporting [Abstract]

Nature of Operations, Segment Reporting and Geographical Information

Note 12—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 19 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
	2014		2013		2014		2013		2014			2013
T&M	$	19,527	$	17,636	$	2,655	$	3,109		13.6	%		17.6	%
QuickLabel		49,065		43,588		5,154		4,380		10.5	%		10.0	%
Total	$	68,592	$	61,224		7,809		7,489		11.4	%		12.2	%
Product Replacement Costs						672		—
Corporate Expenses						5,604		4,563
Operating Income						1,533		2,926
Other Expense						121		41
Income from Continuing Operations Before Income Taxes						1,412		2,885
Income Tax Provision for Continuing Operations						175		847
						1,237		2,038
Income from Discontinued Operations, Net of Taxes						1,975		8,729
Net Income					$	3,212	$	10,767

No customer accounted for greater than 10% of net sales in fiscal 2014 and 2013.

Other information by segment is presented below:

(In thousands)	Assets
	2014		2013
T&M	$	17,049	$	10,493
QuickLabel		25,306		23,468
Discontinued Operations		3,917		3,131
Corporate*		31,692		42,821
Total	$	77,964	$	79,913

* Corporate assets consist principally of cash and cash equivalents, securities available for sale, and building held for sale.

(In thousands)	Depreciation and Amortization				Capital Expenditures
	2014		2013		2014		2013
T&M	$	640	$	435	$	585	$	383
QuickLabel		639		710		543		398
Discontinued Operations		—		186		—		68
Total	$	1,279	$	1,331	$	1,128	$	849

Geographical Data

Presented below is selected financial information by geographic area:

(In thousands)	Net Sales				Long-Lived Assets
	2014		2013		2014		2013
United States	$	48,679	$	44,613	$	10,115	$	6,741
Europe		14,909		12,324		538		609
Canada		2,569		2,136		339		438
Asia		1,167		910		—		—
Central and South America		908		752		—		—
Other		360		489		—		—
Total	$	68,592	$	61,224	$	10,992	$	7,788

Long-lived assets excludes goodwill assigned to the T&M segment of $1.0 and $0.7 million at January 31, 2014 and 2013, respectively.