Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | May 31, 2017 | Sep. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ORION ENERGY SYSTEMS, INC. | ||
Entity Central Index Key | 1,409,375 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 29,845,443 | ||
Entity Common Stock, Shares Outstanding | 28,497,329 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 17,307 | $ 15,542 |
Accounts receivable, net | 9,171 | 10,889 |
Inventories, net | 13,593 | 17,024 |
Deferred contract costs | 935 | 37 |
Prepaid expenses and other current assets | 2,877 | 5,038 |
Total current assets | 43,883 | 48,530 |
Property and equipment, net | 13,786 | 17,004 |
Other intangible assets, net | 4,207 | 5,048 |
Long-term accounts receivable | 5 | 108 |
Other long-term assets | 170 | 185 |
Total assets | 62,051 | 70,875 |
Liabilities and Shareholders’ Equity | ||
Accounts payable | 11,635 | 11,716 |
Accrued expenses and other | 5,988 | 6,586 |
Deferred revenue, current | 621 | 243 |
Current maturities of long-term debt | 152 | 746 |
Total current liabilities | 18,396 | 19,291 |
Revolving credit facility | 6,629 | 3,719 |
Long-term debt, less current maturities | 190 | 302 |
Deferred revenue, long-term | 944 | 1,022 |
Other long-term liabilities | 442 | 558 |
Total liabilities | 26,601 | 24,892 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $0.01 par value: Shares authorized: 30,000,000 shares at March 31, 2017 and 2016; no shares issued and outstanding at March 31, 2017 and 2016 | 0 | 0 |
Common stock, no par value: Shares authorized: 200,000,000 at March 31, 2017 and 2016; shares issued: 37,747,227 and 37,192,559 at March 31, 2017 and 2016; shares outstanding: 28,317,490 and 27,767,138 at March 31, 2017 and 2016 | 0 | 0 |
Additional paid-in capital | 153,901 | 152,140 |
Treasury stock: 9,429,737 and 9,425,421 common shares at March 31, 2017 and 2016 | (36,081) | (36,075) |
Shareholder notes receivable | (4) | (4) |
Retained deficit | (82,366) | (70,078) |
Total shareholders’ equity | 35,450 | 45,983 |
Total liabilities and shareholders’ equity | $ 62,051 | $ 70,875 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Mar. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 30,000,000 | 30,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 37,747,227 | 37,192,559 |
Common stock, shares outstanding (shares) | 28,317,490 | 27,767,138 |
Treasury stock (shares) | 9,429,737 | 9,425,421 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | |||
Product revenue | $ 66,224 | $ 64,897 | $ 65,881 |
Service revenue | 3,987 | 2,745 | 6,329 |
Total revenue | 70,211 | 67,642 | 72,210 |
Cost of product revenue | 49,630 | 49,630 | 68,388 |
Cost of service revenue | 3,244 | 2,015 | 4,959 |
Total cost of revenue | 52,874 | 51,645 | 73,347 |
Gross profit (loss) | 17,337 | 15,997 | (1,137) |
Operating expenses: | |||
General and administrative | 14,777 | 16,884 | 14,908 |
Impairment of assets | 250 | 6,023 | 0 |
Acquisition and integration related expenses | 0 | 0 | 47 |
Sales and marketing | 12,833 | 11,343 | 13,290 |
Research and development | 2,004 | 1,668 | 2,554 |
Total operating expenses | 29,864 | 35,918 | 30,799 |
Loss from operations | (12,527) | (19,921) | (31,936) |
Other income (expense): | |||
Other income | 215 | 0 | 0 |
Interest expense | (273) | (297) | (376) |
Interest income | 36 | 128 | 300 |
Total other expense | (22) | (169) | (76) |
Loss before income tax | (12,549) | (20,090) | (32,012) |
Income tax (benefit) expense | (261) | 36 | 49 |
Net loss and comprehensive loss | $ (12,288) | $ (20,126) | $ (32,061) |
Basic net loss per share attributable to common shareholders (usd per share) | $ (0.44) | $ (0.73) | $ (1.43) |
Weighted-average common shares outstanding (shares) | 28,156,382 | 27,627,693 | 22,353,419 |
Diluted net loss per share (usd per share) | $ (0.44) | $ (0.73) | $ (1.43) |
Weighted-average common shares and share equivalents outstanding (shares) | 28,156,382 | 27,627,693 | 22,353,419 |
Statements of Shareholders' Equ
Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock, Shares | Common Stock, Additional Paid-in Capital | Treasury Stock | Shareholder Notes Receivable | Retained Earnings (Deficit) |
Shareholders' equity, at beginning of period (shares) at Mar. 31, 2014 | 21,588,326 | |||||
Shareholders' equity, beginning of period at Mar. 31, 2014 | $ 77,012 | $ 130,987 | $ (36,034) | $ (50) | $ (17,891) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of common stock for cash, net of issuance costs (shares) | 5,462,500 | |||||
Issuance of common stock for cash, net of issuance costs | 17,465 | 17,465 | ||||
Issuance of stock and warrants for services (shares) | 27,931 | |||||
Issuance of stock for services | 131 | 131 | ||||
Exercise of stock options for cash (shares) | 178,387 | |||||
Exercise of stock options and warrants for cash | 430 | 430 | ||||
Shares issued under Employee Stock Purchase Plan (shares) | 1,486 | |||||
Shares issued under Employee Stock Purchase Plan | 11 | 4 | 7 | |||
Collection of shareholder notes receivable | 46 | 46 | ||||
Stock-based compensation (shares) | 170,055 | |||||
Stock-based compensation | 1,499 | 1,499 | ||||
Employee tax withholdings on stock-based compensation (shares) | (7,152) | |||||
Employee tax withholdings on stock-based compensation | (22) | (22) | ||||
Net loss | (32,061) | (32,061) | ||||
Shareholders' equity, at end of period (shares) at Mar. 31, 2015 | 27,421,533 | |||||
Shareholders' equity, end of period at Mar. 31, 2015 | 64,511 | 150,516 | (36,049) | (4) | (49,952) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of stock and warrants for services (shares) | 35,290 | |||||
Issuance of stock for services | 66 | 66 | ||||
Exercise of stock options for cash (shares) | 46,410 | |||||
Exercise of stock options and warrants for cash | $ 97 | 97 | ||||
Shares issued under Employee Stock Purchase Plan (shares) | 3,925 | 3,925 | ||||
Shares issued under Employee Stock Purchase Plan | $ 7 | (1) | 8 | |||
Stock-based compensation (shares) | 270,303 | |||||
Stock-based compensation | 1,462 | 1,462 | ||||
Employee tax withholdings on stock-based compensation (shares) | (10,323) | |||||
Employee tax withholdings on stock-based compensation | (34) | (34) | ||||
Net loss | $ (20,126) | (20,126) | ||||
Shareholders' equity, at end of period (shares) at Mar. 31, 2016 | 27,767,138 | 27,767,138 | ||||
Shareholders' equity, end of period at Mar. 31, 2016 | $ 45,983 | 152,140 | (36,075) | (4) | (70,078) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Issuance of stock and warrants for services (shares) | 110,566 | |||||
Issuance of stock for services | $ 156 | 156 | ||||
Shares issued under Employee Stock Purchase Plan (shares) | 5,156 | 5,156 | ||||
Shares issued under Employee Stock Purchase Plan | $ 8 | 0 | 8 | |||
Stock-based compensation (shares) | 444,102 | |||||
Stock-based compensation | 1,605 | 1,605 | ||||
Employee tax withholdings on stock-based compensation (shares) | (9,472) | |||||
Employee tax withholdings on stock-based compensation | (14) | (14) | ||||
Net loss | $ (12,288) | (12,288) | ||||
Shareholders' equity, at end of period (shares) at Mar. 31, 2017 | 28,317,490 | 28,317,490 | ||||
Shareholders' equity, end of period at Mar. 31, 2017 | $ 35,450 | $ 153,901 | $ (36,081) | $ (4) | $ (82,366) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities | |||
Net loss | $ (12,288) | $ (20,126) | $ (32,061) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 1,451 | 2,950 | 2,853 |
Amortization | 881 | 1,215 | 1,327 |
Stock-based compensation expense | 1,605 | 1,462 | 1,499 |
Impairment of assets | 250 | 6,023 | 12,130 |
Loss (gain) on sale of property and equipment | 1 | 40 | (21) |
Provision for inventory reserves | 2,212 | 509 | 361 |
Provision for bad debts | 132 | 575 | 285 |
Other | 177 | 258 | 265 |
Changes in operating assets and liabilities: | |||
Accounts receivable, current and long-term | 1,687 | 7,116 | (1,909) |
Inventories, current | 1,220 | (3,249) | (2,356) |
Deferred contract costs | (899) | 137 | 651 |
Prepaid expenses and other current assets | 2,084 | (2,645) | 1,261 |
Accounts payable | (81) | 713 | 2,475 |
Accrued expenses and other | (635) | 1,803 | 838 |
Deferred revenue, current and long-term | 300 | (254) | (410) |
Net cash used in operating activities | (1,903) | (3,473) | (12,812) |
Investing activities | |||
Purchase of property and equipment | (660) | (401) | (2,006) |
Purchase of short-term investments | 0 | 0 | (2) |
Sale of short-term investments | 0 | 0 | 472 |
Additions to patents and licenses | (291) | (6) | (234) |
Proceeds from sales of property, plant and equipment | 2,600 | 35 | 1,040 |
Net cash provided by (used in) investing activities | 1,649 | (372) | (730) |
Financing activities | |||
Payment of long-term debt | (880) | (1,901) | (4,494) |
Proceeds from revolving credit facility | 87,935 | 65,767 | 2,500 |
Repayments of revolving credit facility | (85,025) | (64,549) | 0 |
Proceeds from long-term debt | 0 | 0 | 446 |
Proceeds from repayment of shareholder notes | 0 | 0 | 46 |
Proceeds from issuance of common stock, net of issuance costs | 0 | (2) | 17,465 |
Payments to settle employee tax withholdings on stock-based compensation | (19) | (34) | (22) |
Deferred financing costs | 0 | 0 | (406) |
Net proceeds from employee equity exercises | 8 | 104 | 441 |
Net cash provided by (used in) financing activities | 2,019 | (615) | 15,976 |
Net increase (decrease) in cash and cash equivalents | 1,765 | (4,460) | 2,434 |
Cash and cash equivalents at beginning of period | 15,542 | 20,002 | 17,568 |
Cash and cash equivalents at end of period | 17,307 | 15,542 | 20,002 |
Supplemental cash flow information: | |||
Cash paid for interest | 164 | 191 | 287 |
Cash (received) paid for income taxes | (153) | 18 | 42 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Vendor financed capital lease addition | $ 175 | $ 396 | $ 0 |
Description of Business
Description of Business | 12 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Organization Orion includes Orion Energy Systems, Inc., a Wisconsin corporation, and all consolidated subsidiaries. Orion is a developer, manufacturer and seller of lighting and energy management systems to commercial and industrial businesses, and federal and local governments, predominantly in North America. Orion’s corporate offices and leased primary manufacturing operations are located in Manitowoc, Wisconsin. Orion leases office space in Jacksonville, Florida; Chicago, Illinois; and Houston, Texas. Orion also leases warehouse space in Manitowoc, Wisconsin and Augusta, Georgia. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of Orion Energy Systems, Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Reclassifications Where appropriate, certain reclassifications have been made to prior years’ financial statements to conform to the current year presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during that reporting period. Areas that require the use of significant management estimates include revenue recognition, inventory obsolescence and allowance for doubtful accounts, accruals for warranty and loss contingencies, income taxes and certain equity transactions. Accordingly, actual results could differ from those estimates. Cash and Cash Equivalents Orion considers all highly liquid, short-term investments with original maturities of three months or less to be cash equivalents. Fair Value of Financial Instruments Orion’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other, revolving credit facility and long-term debt. The carrying amounts of Orion’s financial instruments approximate their respective fair values due to the relatively short-term nature of these instruments, or in the case of long-term debt and revolving credit facility, because of the interest rates currently available to Orion for similar obligations. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. GAAP describes a fair value hierarchy based on the following three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: Level 1 — Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly. Level 3 — Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management's best estimate of what market participants would use in valuing the asset or liability at the measurement date. Allowance for Doubtful Accounts Orion performs ongoing evaluations of its customers and continuously monitors collections and payments and estimate an allowance for doubtful accounts based upon the aging of the underlying receivables, historical experience with write-offs and specific customer collection issues that have been identified. See Note 3 - Accounts Receivable for further discussion of the allowance for doubtful accounts Long-Term Receivables Orion records a long-term receivable for the non-current portion of its sales-type capital lease OTA contracts. The receivable is recorded at the net present value of the future cash flows from scheduled customer payments. Orion uses the implied cost of capital from each individual contract as the discount rate. Deferred Contract Costs Deferred contract costs consist primarily of the costs of products delivered, and services performed, that are subject to additional performance obligations or customer acceptance. These deferred contract costs are expensed at the time the related revenue is recognized. Deferred costs amounted to $935,000 as of March 31, 2017 and $37,000 as of March 31, 2016 . Incentive Compensation Orion’s compensation committee approved an Executive Fiscal Year 2017 Annual Cash Incentive Program under its 2004 Stock and Incentive Plan. The plan provided for performance cash bonus payments ranging from 35-100% of the fiscal 2017 base salaries of Orion’s named executive officers and other key employees. The plan provided for bonuses to be paid out on the basis of the achievement in fiscal 2017 of at least (i) $500,000 of profit before taxes and (ii) revenue growth of 10% more than fiscal year 2016. Based upon the results for the year ended March 31, 2017, Orion did not accrue any expense related to this plan. Orion’s compensation committee approved an Executive Fiscal Year 2016 Annual Cash Incentive Program under its 2004 Stock and Incentive Awards Plan. The plan provided for performance cash bonus payments ranging from 35-100% of the fiscal 2016 base salaries of Orion’s named executive officers and other key employees. The plan provided for bonuses to be paid out on the basis of the achievement in fiscal 2016 of at least (i) $110,000 of profit before taxes and (ii) revenue growth of 10% more than fiscal year 2015. Based upon the results for the year ended March 31, 2016, Orion did not accrue any expense related to this plan. Orion’s compensation committee approved an Executive Fiscal Year 2015 Annual Cash Incentive Program under its 2004 Stock and Incentive Awards Plan. The plan provided for performance cash bonus payments ranging from 35-100% of the fiscal 2015 base salaries of Orion’s named executive officers and other key employees. The plan provided for bonuses to be paid out on the basis of the achievement in fiscal 2015 of at least (i) $2,300,000 of profit before taxes and (ii) revenue of at least $90,400,000 . Based upon the results for the year ended March 31, 2015, Orion did not accrue any expense related to this plan. Revenue Recognition Revenue is recognized on the sales of Orion's lighting and related energy-efficiency systems and products when the following four criteria are met: 1. persuasive evidence of an arrangement exists; 2. delivery has occurred and title has passed to the customer; 3. the sales price is fixed and determinable and no further obligation exists; and 4. collectability is reasonably assured. These four criteria are met for Orion’s product-only revenue upon delivery of the product and title passing to the customer. At that time, Orion provides for estimated costs that may be incurred for product warranties and sales returns. Revenues are presented net of sales tax and other sales related taxes. For sales of Orion’s lighting and energy management technologies under multiple element arrangements, consisting of a combination of product sales and services, Orion determines revenue by allocating the total contract revenue to each element based on their relative selling prices in accordance with ASC 605-25, Revenue Recognition - Multiple Element Arrangements . In such circumstances, Orion uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (1) vendor-specific objective evidence ("VSOE") of fair value, if available, (2) third-party evidence ("TPE") of selling price if VSOE is not available, and (3) best estimate of the selling price if neither VSOE nor TPE is available (a description as to how Orion determines estimated selling price is provided below). The nature of Orion’s multiple element arrangements for the sale of its lighting and energy management technologies is similar to a construction project, with materials being delivered and contracting and project management activities occurring according to an installation schedule. The significant deliverables include the shipment of products and related transfer of title and the installation. To determine the selling price in multiple-element arrangements, Orion establishes the selling price for its energy management system products using management's best estimate of the selling price, as VSOE and TPE do not exist. Product revenue is recognized when title and risk of loss for the products transfers. For product revenue, management's best estimate of selling price is determined using a cost plus gross profit margin method. In addition, Orion records in service revenue the selling price for its installation and recycling services using management’s best estimate of selling price, as VSOE and TPE do not exist. Service revenue is recognized when services are completed and customer acceptance has been received. Recycling services provided in connection with installation entail the disposal of the customer’s legacy lighting fixtures. Orion’s service revenues, other than for installation and recycling that are completed prior to delivery of the product, are included in product revenue using management’s best estimate of selling price, as VSOE and TPE do not exist. These services include comprehensive site assessment, site field verification, utility incentive and government subsidy management, engineering design, and project management. For these services, along with Orion's installation and recycling services, under a multiple-element arrangement, management’s best estimate of selling price is determined using a cost plus gross profit margin method with consideraion given to other relevant economic conditions and trends, customer demand, pricing practices, and margin objectives. The determination of an estimated selling price is made through consultation with and approval by management, taking into account the preceding factors. Orion offers a financing program, called an Orion Throughput Agreement, or OTA, for a customer’s lease of Orion’s energy management systems. The OTA is structured as a sales-type lease and upon successful installation of the system and customer acknowledgment that the system is operating as specified, revenue is recognized at Orion’s net investment in the lease, which typically is the net present value of the future cash flows. Orion has limited Power Purchase Agreement (“PPA”) contracts still outstanding. Those PPA’s outstanding are supply side agreements for the generation of electricity for which we recognize revenue on a monthly basis over the life of the PPA contract, typically in excess of 10 years . Prior to fiscal 2015, Orion sold solar PV systems which were recognized to revenue using the percentage-of-completion method by measuring project progress by the percentage of costs incurred to date of the total estimated costs for each contract as materials are installed. Revenue from sales of Orion's solar PV systems is generally recognized over a period of three to 15 months . There were no sales of solar PV systems in fiscal 2017, fiscal 2016 or fiscal 2015. Deferred revenue relates to advance customer billings, investment tax grants received related to PPAs and long term maintenance contracts on OTAs and is classified as a liability on the condensed consolidated balance sheet. The fair value of the maintenance is readily determinable based upon pricing from third-party vendors. Deferred revenue related to maintenance services is recognized when the services are delivered, which occurs in excess of a year after the original OTA contract is executed. Shipping and Handling Costs Orion records costs incurred in connection with shipping and handling of products as cost of product revenue. Amounts billed to customers in connection with these costs are included in product revenue. Advertising Advertising costs of $94,000 , $4,000 and $149,000 for fiscal 2017 , 2016 and 2015 , respectively, were charged to operations as incurred. Research and Development Orion expenses research and development costs as incurred. Amounts are included in the Statement of Operations and Comprehensive Income on the line item Research and development. Income Taxes Orion recognizes deferred tax assets and liabilities for the future tax consequences of temporary differences between financial reporting and income tax basis of assets and liabilities, measured using the enacted tax rates and laws expected to be in effect when the temporary differences reverse. Deferred income taxes also arise from the future tax benefits of operating loss and tax credit carry-forwards. A valuation allowance is established when management determines that it is more likely than not that all or a portion of a deferred tax asset will not be realized. For the fiscal year ended March 31, 2017 , Orion recorded a full valuation allowance of $4,627,000 against its deferred tax assets. ASC 740, Income Taxes , also prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination. Orion has classified the amounts recorded for uncertain tax benefits in the balance sheet as other liabilities (non-current) to the extent that payment is not anticipated within one year. Orion recognizes penalties and interest related to uncertain tax liabilities in income tax expense. Penalties and interest are immaterial and are included in the unrecognized tax benefits. Deferred tax benefits have not been recognized for income tax effects resulting from the exercise of non-qualified stock options. These benefits will be recognized in the period in which the benefits are realized as a reduction in taxes payable and an increase in additional paid-in capital. Realized tax benefits (expense) from the exercise of stock options were $0 , for the fiscal years 2017 , 2016 and 2015 . Stock Based Compensation Orion’s share-based payments to employees are measured at fair value and are recognized in earnings, net of estimated forfeitures, on a straight-line basis over the requisite service period. Cash flows from the exercise of stock options resulting from tax benefits in excess of recognized cumulative compensation costs (excess tax benefits) are classified as financing cash flows. Orion realized no such tax benefits during the years ended March 31, 2017 , 2016 and 2015 . Historically, Orion uses the Black-Scholes option-pricing model for issued stock options. Orion calculated volatility based upon the historical market price of its common stock. The risk-free interest rate is the rate available as of the option date on zero-coupon U.S. Government issues with a remaining term equal to the expected term of the option. The expected term was based upon the vesting term of Orion’s options and expected exercise behavior. Orion accounts for stock-based compensation in accordance with ASC 718, Compensation - Stock Compensation. Under the fair value recognition provisions of ASC 718, stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense ratably over the requisite service period, net of estimated forfeitures. As more fully described in Note 9, Orion currently awards non-vested restricted stock to employees, executive officers and directors. Orion did not issue any stock options during fiscal 2017, fiscal 2016 or fiscal 2015. Orion has not paid dividends in the past and does not plan to pay any dividends in the foreseeable future. Orion estimates its forfeiture rate of unvested stock awards based on historical experience. Concentration of Credit Risk and Other Risks and Uncertainties Orion’s cash is deposited with two financial institutions. At times, deposits in these institutions exceed the amount of insurance provided on such deposits. Orion has not experienced any losses in such accounts and believes that it is not exposed to any significant financial institution viability risk on these balances. Orion purchases components necessary for its lighting products, including ballasts, lamps and LED components, from multiple suppliers. For fiscal 2017 , 2016 and 2015 , no supplier accounted for more than 10% of total cost of revenue. In fiscal 2017 and fiscal 2016 , no customer accounted for 10% of revenue. In fiscal 2015 , one customer accounted for 12% of revenue. As of March 31, 2017 , one customer accounted for 11.6% of accounts receivable and as of March 31, 2016 , one customer accounted for 10.3% of accounts receivable. Recent Accounting Pronouncements Issued: Not Yet Adopted In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15, "Classification of Certain Cash Receipts and Cash Payments," which provides clarification and additional guidance as to the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The ASU provides guidance, as to the classification of a number of transactions including: contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. The new standard will be effective for Orion in the first quarter of fiscal 2019 and will be applied through retrospective adjustment to all periods presented. Orion does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Subtopic 842)." This ASU requires that lessees recognize right-of-use assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and disclose additional quantitative and qualitative information about leasing arrangements. Under this ASU, leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. Similarly, lessors will be required to classify leases as sales-type, finance or operating leases, with classification affecting the pattern of income recognition. Classification for both lessees and lessors will be based on an assessment of whether risks and rewards as well as substantive control have been transferred through the lease contract. This ASU also provides guidance on the presentation of the effects of leases in the income statement and statement of cash flows. This guidance will be effective for Orion on April 1, 2019. Early adoption of the standard is permitted and a modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company has not yet completed its review of the full provisions of this standard against its outstanding lease arrangements and is in the process of quantifying the lease liability and related right of use asset which will be recorded to its consolidated balance sheets upon adoption of the standard. In addition, management continues to assess the impact of adoption of this standard on its consolidated statements of operations, cash flows, and the related footnote disclosures. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In addition, the ASU requires enhanced and expanded financial statement disclosures. Since the issuance of this ASU, the FASB has issued further ASU’s to provide additional guidance and clarification as to the application of ASU 2014-09 and delaying its original effective date. The ASU allows companies to elect either a full retrospective or modified retrospective approach to adoption. Orion will adopt ASU 2014-09 and the related updates with their effective date on April 1, 2018. Orion has begun the process of implementing this standard, including performing a review of its revenue streams to identify any differences in the timing, measurement, or presentation of revenue recognition. The Company is in the process of reviewing the provisions of these standards against its customer contracts, including evaluating and identifying distinct performance obligations. The Company continues to evaluate its customer contracts to determine the impact on the timing and presentation of revenue. In addition, the Company is evaluating any necessary changes to its revenue related processes and controls as a result of the new standard, including the related footnote disclosures. Under ASU 2014-09 incremental contract costs, including sales commissions, may be required to be capitalized and expensed over the period these costs are recovered. Although Orion incurs commission costs, its contracts are typically completed within one year. As such, the Company will elect to apply the practical expedient for contract costs recovered within one year and will continue to recognize commissions as cost of sales immediately rather than capitalizing and expensing these costs over the contract period. Orion currently plans to elect the modified retrospective adoption method but continues to evaluate both of the available transition methods. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” to simplify the presentation of deferred taxes. The amendments in this update require that deferred tax assets and liabilities be classified as non-current on the balance sheet. This ASU is effective for Orion's annual reporting period, and interim periods therein, as of April 1, 2017. The adoption of this standard will have no impact on Orion’s consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value for entities that measure inventory using first-in, first-out ("FIFO") or average cost. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU is effective for Orion on April 1, 2017. The Company believes the adoption of this standard will not have a material impact on Orion’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of related matters in the statement of cash flows. The ASU is effective for Orion as of April 1, 2017. The adoption of this standard is not expected to have a material impact on Orion’s consolidated financial statements. Recently Adopted Standards As of April 1, 2016, Orion adopted the provisions of ASU 2015-03 “Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” and the related ASU 2015-15 “Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update).” This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a reduction of the carrying amount of that debt liability, consistent with debt discounts, with the exception of debt issuance costs associated with line of credit agreements which may remain classified as an asset and amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. As Orion’s only deferred debt issuance costs relate to its revolving line of credit, upon adoption of these standards a reclassification of the deferred financing costs was not required and there was no impact on Orion’s condensed consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements - Going Concern" ("ASU 2014-15"). ASU 2014-15 requires an entity's management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern and if those conditions exist prescribes the necessary disclosures. Orion incorporated the provisions of this standard in performing its going concern analysis as of March 31, 2017. The adoption of this standard did not have an impact on Orion’s consolidated financial statements or footnote disclosures. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Orion’s accounts receivable are due from companies in the commercial, governmental, industrial and agricultural industries, as well as wholesalers. Credit is extended based on an evaluation of a customer’s financial condition. Generally, collateral is not required for end users; however, the payment of certain trade accounts receivable from wholesalers is secured by irrevocable standby letters of credit and/or guarantees. Accounts receivable are generally due within 30 - 60 days. Accounts receivable are stated at the amount Orion expects to collect from outstanding balances. Orion provides for probable uncollectible amounts through a charge to earnings and a credit to an allowance for doubtful accounts based on its assessment of the current status of individual accounts. Balances that are still outstanding after Orion has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and a credit to accounts receivable. Orion's accounts receivable and allowance for doubtful accounts balances were as follows (dollars in thousands): 2017 2016 Accounts receivable, gross $ 9,315 $ 11,394 Allowance for doubtful accounts (144 ) (505 ) Accounts receivable, net $ 9,171 $ 10,889 |
Financing Receivables
Financing Receivables | 12 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | FINANCING RECEIVABLES Orion considers its lease balances included in consolidated current and long-term accounts receivable from its OTA, sales-type leases to be financing receivables. Additional disclosures on the credit quality of Orion’s financing receivables are as follows: Age Analysis as of March 31, 2017 (dollars in thousands): Not Past Due 1-90 days Greater than 90 Total past due Total sales-type Lease balances included in consolidated accounts receivable—current $ 44 $ — $ 3 $ 3 $ 47 Lease balances included in consolidated accounts receivable—long-term 5 — — — 5 Total gross sales-type leases 49 — 3 3 52 Allowance — — — — — Total net sales-type leases $ 49 $ — $ 3 $ 3 $ 52 Age Analysis as of March 31, 2016 (dollars in thousands): Not Past Due 1-90 days Greater than 90 Total past due Total sales-type Lease balances included in consolidated accounts receivable—current $ 294 $ 4 $ 10 $ 14 $ 308 Lease balances included in consolidated accounts receivable—long-term 101 — — — 101 Total gross sales-type leases 395 4 10 14 409 Allowance — — (9 ) (9 ) (9 ) Total net sales-type leases $ 395 $ 4 $ 1 $ 5 $ 400 Allowance for Credit Losses on Financing Receivables Orion’s allowance for credit losses is based on management’s assessment of the collectability of customer accounts. A considerable amount of judgment is required in order to make this assessment including a detailed analysis of the aging of the lease receivables and the current credit worthiness of Orion's customers and an analysis of historical bad debts and other adjustments. If there is a deterioration of a major customer’s credit worthiness or actual defaults are higher than historical experience, the estimate of the recoverability of amounts due could be adversely affected. Orion reviews in detail the allowance for doubtful accounts on a quarterly basis and adjusts the allowance estimate to reflect actual portfolio performance and any changes in future portfolio performance expectations. Orion’s provision for write-offs and credit losses against the OTA sales-type lease receivable balances in fiscal 2017 , fiscal 2016 and fiscal 2015, respectively, was as follows (dollars in thousands): Balance at Provisions Write offs Balance at March 31, (in Thousands) 2017 Allowance for Doubtful Accounts on financing receivables $ 9 $ — $ 9 $ — 2016 Allowance for Doubtful Accounts on financing receivables $ 156 $ 30 $ 177 $ 9 2015 Allowance for Doubtful Accounts on financing receivables $ 94 $ 62 $ — $ 156 |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consist of raw materials and components, such as drivers, metal sheet and coil stock and molded parts; work in process inventories, such as frames and reflectors; and finished goods, including completed fixtures and systems, and accessories. All inventories are stated at the lower of cost or market value with cost determined using the first-in, first-out (FIFO) method. Orion reduces the carrying value of its inventories for differences between the cost and estimated net realizable value, taking into consideration usage in the preceding 9 to 24 months, expected demand, and other information indicating obsolescence. Orion records, as a charge to cost of product revenue, the amount required to reduce the carrying value of inventory to net realizable value. As of March 31, 2017 and 2016 , Orion's inventory balances were as follows (dollars in thousands): Cost Obsolescence Reserve Net As of March 31, 2017 Raw materials and components $ 8,104 $ (1,807 ) $ 6,297 Work in process 1,918 (329 ) 1,589 Finished goods 7,044 (1,337 ) 5,707 Total $ 17,066 $ (3,473 ) $ 13,593 As of March 31, 2016 Raw materials and components $ 10,556 $ (1,052 ) $ 9,504 Work in process 2,045 (119 ) 1,926 Finished goods 6,550 (956 ) 5,594 Total $ 19,151 $ (2,127 ) $ 17,024 Costs associated with the procurement and warehousing of inventories, such as inbound freight charges and purchasing and receiving costs, are also included in cost of product revenue. In fiscal 2017, Orion increased its obsolescence reserve by $1,346,000 . The reserve was increased by $1,671,000 related to its fluorescent and LED exterior products. The reserve increase was reduced by disposals during the year of fully reserved inventory items along with other inventory related activities. Orion’s customer preference is for higher performing LED lighting technologies rather than lower-priced earlier generation solutions. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist primarily of prepaid insurance premiums, prepaid license fees, purchase deposits, advance payments to contractors, unbilled receivables, prepaid taxes and miscellaneous receivables. Prepaid expenses and other current assets include the following (dollars in thousands): March 31, 2017 March 31, 2016 Unbilled accounts receivable $ 2,226 $ 4,307 Other prepaid expenses 651 731 Total $ 2,877 $ 5,038 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment are stated at cost. Expenditures for additions and improvements are capitalized, while replacements, maintenance and repairs, which do not improve or extend the lives of the respective assets, are expensed as incurred. Properties sold, or otherwise disposed of, are removed from the property accounts, with gains or losses on disposal credited or charged to income from operations. Orion periodically reviews the carrying values of property and equipment for impairment in accordance with ASC 360, Property, Plant and Equipment , if events or changes in circumstances indicate that the assets may be impaired. The estimated future undiscounted cash flows expected to result from the use of the assets and their eventual disposition are compared to the assets' carrying amount to determine if a write down to market value is required. In fiscal 2017, no fixed asset impairment charges were required. On June 30, 2016, Orion completed the sale of its Manitowoc manufacturing and distribution facility for gross cash proceeds of $2,600,000 , which approximated the assets' net carrying values. In conjunction with the sale, Orion entered into an agreement with the buyer to leaseback approximately 197,000 square feet of the building for not less than three years , subject to mutual options to reduce the amount of leased space. In conjunction with the anticipated sale of this facility, in fiscal 2016, the Company reviewed the carrying value of the manufacturing and distribution facility assets for impairment performing a probability weighted analysis of expected future cash flows. Based on that analysis, the Company concluded that the assets' carrying values were no longer supported. As such, Orion recorded an impairment charge of $1,614,000 in fiscal 2016 to write the assets down to their fair value, which approximates the expected selling price. The impairment charge was recorded to all three of Orion’s reportable segments as follows: Orion U.S. Markets $689,000 , Orion Engineered Systems $804,000 , and Orion Distribution Services $121,000 . In fiscal 2015, an impairment charge of $ 1,030,000 was recorded in connection with the assessment of carrying costs related to the wireless controls product offering. Property and equipment were comprised of the following (dollars in thousands): March 31, 2017 March 31, 2016 Land and land improvements $ 424 $ 421 Buildings and building improvements 9,245 11,849 Furniture, fixtures and office equipment 7,056 7,233 Leasehold improvements 324 148 Equipment leased to customers under Power Purchase Agreements 4,997 4,997 Plant equipment 11,627 10,805 Construction in progress 61 128 33,734 35,581 Less: accumulated depreciation and amortization (19,948 ) (18,577 ) Net property and equipment $ 13,786 $ 17,004 Equipment included above under capital leases was as follows (dollars in thousands): March 31, 2017 March 31, 2016 Equipment $ 581 408 Less: accumulated depreciation and amortization (202 ) (65 ) Net equipment $ 379 $ 343 Depreciation is recognized over the estimated useful lives of the respective assets, using the straight-line method. Orion recorded depreciation expense of $1,451,000 , $2,950,000 and $2,853,000 for the years ended March 31, 2017 , 2016 and 2015 , respectively. Depreciable lives by asset category are as follows: Land improvements 10-15 years Buildings and building improvements 10-39 years Furniture, fixtures and office equipment 2-10 years Leasehold improvements Shorter of asset life or life of lease Equipment leased to customers under Power Purchase Agreements 20 years Plant equipment 3-10 years No interest was capitalized for construction in progress during fiscal 2017 or fiscal 2016 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANIGBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The costs of specifically identifiable intangible assets that do not have an indefinite life are amortized over their estimated useful lives. Goodwill and intangible assets with indefinite lives are not amortized. As of March 31, 2016 and March 31, 2017, Orion had no goodwill on its Consolidated Balance Sheet. Prior to March 31, 2016, Orion had allocated goodwill to its reporting units which were also two of its reportable segments as follows: $2,371,000 to the U.S. Markets ("USM") and $2,038,000 to Orion Engineered Systems ("OES"). The Orion Distribution Services ("ODS") segment had no goodwill. Orion tests goodwill for impairment at least annually as of the first day of the fiscal fourth quarter, or when indications of potential impairment exist. Orion performed its last annual goodwill impairment test as of January 1, 2016. In accordance with ASC 350, Intangibles - Goodwill and Other, Step 1 of the impairment test compares the fair value of the reporting unit with its carrying value. Orion determined the fair value of each reporting unit using a discounted cash flow method and the guideline public entity method. After completing a Step 1 evaluation, the estimated fair value of both reporting units was determined to be lower than their carrying values. As such, each unit failed Step 1 of the goodwill impairment test and Step 2 of the goodwill impairment test was performed. In conjunction with the Step 2 test, Orion performed a hypothetical purchase price allocation for each of its reporting units to determine the implied fair value of goodwill and compared the implied fair value of goodwill to the carrying amount of goodwill. A third-party valuation firm was engaged to assist in the Step 2 valuation process. The fair value determination was categorized as Level 3 in the fair value hierarchy (see “ Fair Value of Financial Instruments” for the definition of Level 3 inputs). As a result of Step 2 of the goodwill impairment tests as of January 1, 2016, Orion’s USM segment recorded a goodwill impairment charge of $2,371,000 and Orion’s OES segment recorded a goodwill impairment charge of $2,038,000 . Therefore, as of March 31, 2017 and March 31, 2016, Orion had no goodwill on its Consolidated Balance Sheets. The change in the carrying value of goodwill during fiscal 2016 was as follows (dollars in thousands): Balance at March 31, 2015 $ 4,409 Impairments (4,409 ) Balance at March 31, 2016 $ — Amortizable intangible assets are amortized over their estimated economic useful life to reflect the pattern of economic benefits consumed based upon the following lives and methods: Patents 10-17 years Straight-line Licenses 7-13 years Straight-line Customer relationships 5-8 years Accelerated based upon the pattern of economic benefits consumed Developed technology 8 years Accelerated based upon the pattern of economic benefits consumed Non-competition agreements 5 years Straight-line Intangible assets that have a definite life are evaluated for potential impairment whenever events or circumstances indicate that the carrying value may not be recoverable based primarily upon whether expected future undiscounted cash flows are sufficient to support the asset recovery. If the actual useful life of the asset is shorter than the estimated life, the asset may be deemed to be impaired and accordingly a write-down of the value of the asset determined by a discounted cash flow analysis or shorter amortization period may be required. Indefinite lived intangible assets are evaluated for impairment at least annually on the first day of Orion’s fiscal fourth quarter, or when indications of potential impairment exist. This annual impairment review may begin with a qualitative test to determine whether it is more likely than not that an indefinite lived intangible asset's carrying value is greater than its fair value. If the qualitative assessment reveals that asset impairment is more likely than not, a quantitative impairment test is performed comparing the fair value of the indefinite lived intangible asset to its carrying value. Alternatively, the qualitative test may be bypassed and the quantitative impairment test may be immediately performed. If the fair value of the indefinite lived intangible asset exceeds its carrying value, the indefinite lived intangible asset is not impaired and no further review is performed. If the carrying value of the indefinite lived intangible asset exceeds its fair value, an impairment loss would be recognized in an amount equal to such excess. Once an impairment loss is recognized, the adjusted carrying value becomes the new accounting basis of the indefinite lived intangible asset. Orion performed a qualitative assessment in conjunction with its annual impairment test of its indefinite lived intangible assets as of January 1, 2017. This qualitative assessment considered Orion’s operating results for the first nine months of fiscal 2017 in comparison to prior years as well as its anticipated fourth quarter results and fiscal 2018 plan. As a result of the conditions that existed as of the assessment date, an asset impairment was not deemed to be more likely than not and a quantitative analysis was not required. During the fourth quarter of fiscal 2017, Orion achieved lower than anticipated operating results, made a strategic shift in its manufacturing strategy and approach to the fluorescent and LED exterior lighting market, and revised its fiscal 2018 forecast. As a result, a triggering event occurred requiring the Company to reassess its indefinite lived intangible assets for impairment. As such Orion performed a quantitative impairment review of its indefinite lived intangible assets related to the Harris trade name applying the royalty replacement method to determine the asset’s fair value as of March 31, 2017. Under the royalty replacement method, the fair value of the Harris tradename was determined based on a market participant’s view of the royalty that would be paid to license the right to use the tradename. This quantitative analysis incorporated several assumptions including forecasted future revenues and cash flows, estimated royalty rate, based on similar licensing transactions and market royalty rates, and discount rate, which incorporates assumptions such as weighted-average cost of capital and risk premium. As a result of this impairment test, the carrying value of the Harris trade name exceeded its estimated fair value and an impairment of $250,000 was recorded to Impairment of assets during the fourth quarter to reduce the asset’s carrying value to its calculated fair value. This fair value determination was categorized as Level 3 in the fair value hierarchy (see “Fair Value of Financial Instruments” for the definition of Level 3 inputs). The components of, and changes in, the carrying amount of other intangible assets were as follows (dollars in thousands): March 31, 2017 March 31, 2016 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Patents $ 2,658 $ (1,211 ) $ 1,447 $ 2,377 $ (1,053 ) $ 1,324 Licenses 58 (58 ) — 58 (58 ) — Trade name and trademarks 1,715 — 1,715 1,956 — 1,956 Customer relationships 3,600 (3,054 ) 546 3,600 (2,512 ) 1,088 Developed technology 900 (426 ) 474 900 (265 ) 635 Non-competition agreements 100 (75 ) 25 100 (55 ) 45 Total $ 9,031 $ (4,824 ) $ 4,207 $ 8,991 $ (3,943 ) $ 5,048 As of March 31, 2017 , the weighted average useful life of intangible assets was 6.0 years . The estimated amortization expense for each of the next five years is shown below (dollars in thousands): Fiscal 2018 $ 621 Fiscal 2019 445 Fiscal 2020 359 Fiscal 2021 285 Fiscal 2022 167 Thereafter 615 $ 2,492 Amortization expense is set forth in the following table (dollars in thousands): Fiscal Year Ended March 31, 2017 2016 2015 Amortization included in cost of sales: Patents $ 158 $ 139 $ 132 Total $ 158 $ 139 $ 132 Amortization included in operating expenses: Customer relationships $ 542 $ 891 $ 1,085 Developed technology 161 156 90 Non-competition agreements 20 20 20 Patents — 9 — Total 723 1,076 1,195 Total amortization $ 881 $ 1,215 $ 1,327 Orion’s management periodically reviews the carrying value of patent applications and related costs. When a patent application is probable of being unsuccessful or a patent is no longer in use, Orion writes off the remaining carrying value as a charge to general and administrative expense within its Consolidated Statement of Operations. Such write-offs recorded in fiscal 2017 , 2016 and 2015 were $0 , $78,000 and $120,000 , respectively. Included in other income in fiscal 2017 are product royalties received from licensing agreements for our patents. |
Other Long-Term Assets
Other Long-Term Assets | 12 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER LONG-TERM ASSETS | OTHER LONG-TERM ASSETS Other long-term assets include the following (dollars in thousands): March 31, 2017 March 31, 2016 Deferred financing costs $ — $ 92 Security deposits 117 87 Other 53 6 Total $ 170 $ 185 Deferred financing costs related to debt issuances are allocated to interest expense over the life of the debt ( 1 to 3 years ). For the years ended March 31, 2017, 2016 and 2015, the expense was $110,000 , $114,000 and $156,000 respectively. |
Accrued Expenses and Other
Accrued Expenses and Other | 12 Months Ended |
Mar. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
ACCRUED EXPENSES AND OTHER | ACCRUED EXPENSES AND OTHER Accrued expenses and other include the following (dollars in thousands): March 31, 2017 March 31, 2016 Compensation and benefits $ 2,431 $ 1,794 Sales tax 213 913 Contract costs 223 586 Legal and professional fees (1) 2,262 2,348 Warranty (2) 449 554 Other accruals 410 391 Total $ 5,988 $ 6,586 (1) Includes a $1,400 loss contingency recorded in fiscal 2016. (2) See table below for additional long-term warranty liability. Orion generally offers a limited warranty of one to ten years on its lighting products in addition to those standard warranties offered by major original equipment component manufacturers. The manufacturers’ warranties cover lamps and ballasts, which are significant components in Orion's lighting products. Changes in Orion’s warranty accrual (both current and long-term) were as follows (dollars in thousands): March 31, 2017 2016 Beginning of year (1) $ 864 $ 1,015 Provision to product cost of revenue (102 ) 159 Charges (3 ) (310 ) End of year (1) $ 759 $ 864 (1) Includes a $310 reserve related to solar operating system warranties. |
Net Income (Loss) per Common Sh
Net Income (Loss) per Common Share | 12 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER COMMON SHARE | NET INCOME (LOSS) PER COMMON SHARE Basic net income (loss) per common share is computed by dividing net income (loss) attributable to common shareholders by the weighted-average number of common shares outstanding for the period and does not consider common stock equivalents. Diluted net income (loss) per common share reflects the dilution that would occur if warrants and stock options were exercised and restricted shares vested. In the computation of diluted net income (loss) per common share, Orion uses the treasury stock method for outstanding options, warrants and restricted shares. Diluted net loss per common share is the same as basic net loss per common share for the years ended March 31, 2017 , March 31, 2016 and March 31, 2015 because the effects of potentially dilutive securities would be anti-dilutive. The effect of net income (loss) per common share is calculated based upon the following shares: Fiscal Year Ended March 31, 2017 2016 2015 Numerator: Net loss (dollars in thousands) $ (12,288 ) $ (20,126 ) $ (32,061 ) Denominator: Weighted-average common shares outstanding 28,156,382 27,627,693 22,353,419 Weighted-average common shares and share equivalents outstanding 28,156,382 27,627,693 22,353,419 Net loss per common share: Basic $ (0.44 ) $ (0.73 ) $ (1.43 ) Diluted $ (0.44 ) $ (0.73 ) $ (1.43 ) The following table indicates the number of potentially dilutive securities as of the end of each period: March 31, 2017 2016 2015 Common stock options 1,520,953 2,017,046 2,426,836 Restricted shares 1,704,543 1,053,389 704,688 Total 3,225,496 3,070,435 3,131,524 |
Acquisition
Acquisition | 12 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
ACQUISITION | ACQUISITION On July 1, 2013, Orion acquired all of the equity interests of Harris Manufacturing, Inc. and Harris LED, LLC (collectively, "Harris"). Harris was a Florida-based lighting company which engineered, designed, sourced and manufactured energy-efficient lighting systems, including fluorescent and LED lighting solutions, and day-lighting products. The acquisition was consummated pursuant to a Stock and Unit Purchase Agreement, dated as of May 22, 2013 ("Purchase Agreement"), by and among Harris, the shareholders and members of Harris ("Harris Shareholders"), and Orion. The acquisition consideration paid to the Harris Shareholders was valued under the Purchase Agreement at an aggregate of $10,801,000 , plus an adjustment of approximately $200,000 to reflect Orion's acquisition of net working capital in excess of a targeted amount, plus an additional $612,000 for the contingent consideration earn-out value assigned to non-employee Harris shareholders. On October 21, 2013, Orion executed a letter agreement amending the Purchase Agreement. The letter agreement established a fixed future consideration of $1,371,000 for the previously existing earn-out component of the Purchase Agreement and eliminated the requirement that certain revenue targets must be achieved. Under the letter agreement, on January 2, 2014, Orion issued $571,000 , or 83,943 shares, of Orion's unregistered common stock. The fixed consideration was determined based upon the existing share calculation at a fair value of $3.80 per common share. On January 2, 2015, Orion would pay $800,000 in cash to settle all outstanding obligations related to the earn-out component of the Purchase Agreement. In December 2014, Orion amended the letter agreement to defer the January 2, 2015 payment of $800,000 in cash until February 13, 2015, to settle all outstanding obligations related to the earn-out component of the Purchase Agreement. The final payment was made on February 12, 2015. The Purchase Agreement contained customary representations and warranties, as well as indemnification obligations, and limitations thereon, by Orion and the Harris Shareholders. On December 31, 2014, Harris was merged with and into Orion. Orion recorded $612,000 for the non-employee Harris Shareholder portion of the contingent consideration liability on the acquisition date. During the year ended March 31, 2015, Orion expensed $147,000 in compensation expense as contingent consideration for employee Harris shareholders. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS During fiscal 2017 , 2016 and 2015, Orion purchased goods and services from an entity in the amount of $41,000 , $21,000 , and $38,000 , respectively, for which a director of Orion serves as a minority owner and serves as president and chairman of the board of directors. In fiscal 2017, Orion purchased services in the amount of $43,000 from an immediate family member of a named executive officer who is now currently employed by Orion. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt as of March 31, 2017 and 2016 consisted of the following (dollars in thousands): March 31, 2017 2016 Revolving credit facility $ 6,629 $ 3,719 Harris seller's note — 546 Equipment lease obligations 321 345 Customer equipment finance notes payable 7 90 Other long-term debt 14 67 Total long-term debt 6,971 4,767 Less current maturities (152 ) (746 ) Long-term debt, less current maturities $ 6,819 $ 4,021 Revolving Credit Agreement Orion has an amended credit agreement ("Credit Agreement") that provides for a revolving credit facility ("Credit Facility")subject to a borrowing base requirement based on eligible receivables and inventory. As of March 31, 2017 Orion's borrowing base was approximately $6,832,000 . The Credit Facility has a maturity date of February 6, 2019 and includes a $2,000,000 sublimit for the issuance of letters of credit. As of March 31, 2017 , Orion had no outstanding letters of credit. Borrowings outstanding as of March 31, 2017 , amounted to approximately $6,629,000 and are included in non-current liabilities in the accompanying Consolidated Balance Sheet. Orion estimates that as of March 31, 2017 , it was eligible to borrow an additional $203,000 under the Credit Facility based upon current levels of eligible inventory and accounts receivable. Subject in each case to Orion's applicable borrowing base limitations, the Credit Agreement otherwise provides for a $15,000,000 Credit Facility. This limit may increase to $20,000,000 based on a borrowing base requirement, if Orion satisfies certain conditions. Orion did not meet the requirements to increase the borrowing limit to $20,000,000 as of July 31, 2016, the most recent measurement date. From and after any increase in the Credit Facility limit from $15,000,000 to $20,000,000 , the Credit Agreement requires that Orion maintain, as of the end of each month, a minimum ratio for the trailing twelve-month period of (i) earnings before interest, taxes, depreciation and amortization, subject to certain adjustments, to (ii) the sum of cash interest expense, certain principal payments on indebtedness and certain dividends, distributions and stock redemptions, equal to at least 1.10 to 1.00. The Credit Agreement contains additional customary covenants, including certain restrictions on Orion’s ability to incur additional indebtedness, consolidate or merge, enter into acquisitions, guarantee obligations of third parties, make loans or advances, declare or pay any dividend or distribution on Orion’s stock, redeem or repurchase shares of Orion’s stock, or pledge or dispose of assets. Orion was in compliance with its covenants in the Credit Agreement as of March 31, 2017 . Each subsidiary of Orion is a joint and several co-borrower or guarantor under the Credit Agreement, and the Credit Agreement is secured by a security interest in substantially all of Orion’s and each subsidiary’s personal property (excluding various assets relating to customer OTAs) and a mortgage on certain real property. Borrowings under the Credit Agreement bear interest at the daily three-month LIBOR plus 3.0% per annum, with a minimum interest charge for each year or portion of a year during the term of the Credit Agreement of $130,000 , regardless of usage. As of March 31, 2017 , the interest rate was 4.15% . Orion must pay an unused line fee of 0.25% per annum of the daily average unused amount of the Credit Facility and a letter of credit fee at the rate of 3.0% per annum on the undrawn amount of letters of credit outstanding from time to time under the Credit Facility. Harris Seller's Note On July 1, 2013, Orion issued an unsecured and subordinated promissory note in the principal amount of $3,124,000 to partially fund the acquisition of Harris Manufacturing, Inc. and Harris LED, LLC (collectively, "Harris"). The note is included in the table above as Harris seller's note. The notes interest rate was 4% per annum. Principal and interest were payable quarterly. The note matured in July 2016 and was paid in full upon maturity. Equipment Lease Obligation In March 2016 and June 2015, Orion entered into lease agreements with a financing company in the principal amount of $19,000 and $377,000 , respectively, to fund certain equipment. The leases are secured by the related equipment. The leases bear interest at a rate of 5.94% and 3.6% and mature in February 2018 and June 2020. Both leases contain a one dollar buyout option. Customer Equipment Finance Notes Payable In December 2014, Orion entered into a secured borrowing agreement with a financing company in the principal amount of $446,000 to fund completed customer contracts under its OTA finance program that were previously funded under the OTA credit agreement. The loan amount is secured by the OTA-related equipment and the expected future monthly payments under the supporting 25 individual OTA customer contracts. The borrowing agreement bears interest at a rate of 8.36% and matures in April 2018. In June 2011, Orion entered into a note agreement with a financial institution that provided Orion with $2,831,000 to fund completed customer contracts under Orion’s OTA finance program. This note is included in the table above as customer equipment finance notes payable in the prior year. The note is collateralized by the OTA-related equipment and the expected future monthly payments under the supporting 40 individual OTA contracts. The note bears interest at 7.85% . The note matured in April 2016 and was paid in full upon maturity. Other Long-Term Debt In September 2010, Orion entered into a note agreement with the Wisconsin Department of Commerce that provided Orion with $260,000 to fund Orion’s rooftop solar project at its Manitowoc manufacturing facility. This note is included in the table above as other long-term debt. The note is collateralized by the related solar equipment. The note allowed for two years without interest accruing or principal payments due. Beginning in July 2012, the note bears interest at 2% and require monthly payments of $4,600 . The note matures in June 2017. The note agreement requires Orion to maintain a certain number of jobs at its Manitowoc facilities during the note’s duration. Orion was in compliance with all covenants in the note agreement as of March 31, 2017 . Aggregate Maturities As of March 31, 2017 , aggregate maturities of long-term debt were as follows (dollars in thousands): Fiscal 2018 $ 152 Fiscal 2019 6,707 Fiscal 2020 83 Fiscal 2021 29 Fiscal 2022 — Thereafter — $ 6,971 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The total provision (benefit) for income taxes consists of the following for the fiscal years ending (dollars in thousands): Fiscal Year Ended March 31, 2017 2016 2015 Current $ (261 ) $ 36 $ 49 Deferred — — — $ (261 ) $ 36 $ 49 2017 2016 2015 Federal $ (283 ) $ 15 $ — State 22 21 49 $ (261 ) $ 36 $ 49 A reconciliation of the statutory federal income tax rate and effective income tax rate is as follows: Fiscal Year Ended March 31, 2017 2016 2015 Statutory federal tax rate 34.0 % 34.0 % 34.0 % State taxes, net 3.5 % 2.8 % 3.6 % Federal tax credit — % — % 0.2 % State tax credit — % — % 0.1 % Change in valuation reserve (37.6 )% (29.1 )% (37.0 )% Permanent items (0.5 )% (7.5 )% (0.1 )% Change in tax contingency reserve 1.0 % (0.1 )% — % Federal Refunds 1.4 % — % — % Other, net 0.3 % (0.3 )% (1.0 )% Effective income tax rate 2.1 % (0.2 )% (0.2 )% The net deferred tax assets and liabilities reported in the accompanying consolidated financial statements include the following components (dollars in thousands): March 31, 2017 2016 Inventory, accruals and reserves $ 4,016 $ 3,686 Other 54 187 Deferred revenue (141 ) 73 Valuation allowance (3,929 ) (3,946 ) Total net current deferred tax assets and liabilities $ — $ — Federal and state operating loss carry-forwards 23,927 19,727 Tax credit carry-forwards 1,403 1,475 Non-qualified stock options 3,265 3,125 Deferred revenue (51 ) (31 ) Fixed assets (1,360 ) (1,493 ) Intangible assets (1,034 ) (1,297 ) Valuation allowance (26,150 ) (21,506 ) Total net long-term deferred tax assets and liabilities $ — $ — Total net deferred tax assets $ — $ — Orion is eligible for tax benefits associated with the excess of the tax deduction available for exercises of non-qualified stock options, or NQSOs, over the amount recorded at grant. The amount of the benefit is based upon the ultimate deduction reflected in the applicable income tax return. Benefits of $0 were recorded in fiscal 2017 , fiscal 2016 and fiscal 2015 , as a reduction in taxes payable and a credit to additional paid in capital based on the amount that was utilized in the current year. As of March 31, 2017 , Orion has federal net operating loss carryforwards of approximately $65,746,000 , of which $2,977,000 are associated with the exercise of NQSOs that have not yet been recognized by Orion in its financial statements. Orion also has state net operating loss carry-forwards of approximately $56,231,000 , of which $3,324,000 are associated with the exercise of NQSOs. Orion also has federal tax credit carry-forwards of approximately $1,403,000 and state tax credits of $724,000 . Orion's net operating loss and tax credit carry-forwards will begin to expire in varying amounts between 2030 and 2037. For the fiscal year ended March 31, 2017 , Orion has recorded a valuation allowance of $30,078,000 , equaling the net deferred tax asset due to the uncertainty of its realization value in the future. For the fiscal years ended March 31, 2017 and March 31, 2016, the valuation allowance against Orion's net federal and net state deferred tax assets increased $4,627,000 and $5,740,000 , respectively. Orion considers future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for the valuation allowance. In the event that Orion determines that the deferred tax assets are able to be realized, an adjustment to the deferred tax asset would increase income in the period such determination is made. Generally, a change of more than 50% in the ownership of Orion's stock, by value, over a three year period constitutes an ownership change for federal income tax purposes as defined under Section 382 of the Internal Revenue Code. As a result, Orion's ability to use its net operating loss carry-forwards, attributable to the period prior to such ownership change, to offset taxable income can be subject to limitations in a particular year, which could potentially result in increased future tax liability for Orion. There was no limitation of net operating loss carry-forwards that occurred for fiscal 2017 , fiscal 2016 , or fiscal 2015 . Orion records its tax provision based on the respective tax rules and regulations for the jurisdictions in which it operates. Where Orion believes that a tax position is supportable for income tax purposes, the item is included in their income tax returns. Where treatment of a position is uncertain, a liability is recorded based upon the expected most likely outcome taking into consideration the technical merits of the position based on specific tax regulations and facts of each matter. These liabilities may be affected by changing interpretations of laws, rulings by tax authorities, or the expiration of the statute of limitations. Orion files income tax returns in the United States federal jurisdiction and in several state jurisdictions. The Company's federal tax returns for tax years beginning April 1, 2013 or later are open. For states in which Orion files state income tax returns, the statue of limitations is generally open for tax years ended March 31, 2013 and forward. State income tax returns are generally subject to examination for a period of 3 to 5 years after filing of the respective return. The state effect of any federal changes remains subject to examination by various states for a period of up to two years after formal notification to the states. Orion currently has no state income tax return positions in the process of examination, administrative appeals or litigation. Orion has settled with the Wisconsin Department of Revenue with respect to an assessment regarding the proper classification of our products for tax purposes under Wisconsin law. The issue under review is whether the installation of our lighting systems is considered a real property construction activity under Wisconsin law. We have resolved this matter with the Wisconsin Department of Revenue in fiscal 2017 for the amount of $460,000 . Uncertain tax positions As of March 31, 2017 , the balance of gross unrecognized tax benefits was approximately $113,000 , all of which would reduce Orion’s effective tax rate if recognized. Orion has classified the amounts recorded for uncertain tax benefits in the balance sheet as other liabilities (non-current) to the extent that payment is not anticipated within one year. Orion recognizes penalties and interest related to uncertain tax liabilities in income tax expense. Penalties and interest are included in the unrecognized tax benefits. Orion had the following unrecognized tax benefit activity (dollars in thousands): Fiscal Year Ended March 31, 2017 2016 2015 Unrecognized tax benefits as of beginning of fiscal year $ 227 $ 212 $ 210 Additions based on tax positions related to the current period positions 2 15 2 Reduction for tax positions of prior years $ (116 ) $ — $ — Unrecognized tax benefits as of end of fiscal year $ 113 $ 227 $ 212 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases Orion leases office space and equipment under operating leases expiring at various dates through 2020. Rent expense under operating leases was $854,000 , $502,000 and $398,000 for fiscal 2017 , 2016 and 2015 , respectively. Total annual commitments under non-cancelable operating leases with terms in excess of one year at March 31, 2017 are as follows (dollars in thousand): Fiscal 2018 $ 654 Fiscal 2019 473 Fiscal 2020 114 $ 1,241 On March 1, 2016, Orion entered into a lease agreement as a lessor for excess office space at its corporate headquarters in Manitowoc, Wisconsin. The initial term of the lease is 24 months and the tenant has the option to extend the term for up to three additional twelve month periods. The monthly rental payment Orion receives is $21,000 and is included in general and administrative expenses. On March 31, 2016, Orion entered into a purchase and sale agreement ("Agreement") with third party to sell and leaseback Orion's manufacturing and distribution facility for gross cash proceeds of $2,600,000 . The transaction closed on June 30, 2016. Pursuant to the Agreement, a lease was entered into on June 30, 2016, in which Orion is leasing approximately 197,000 square feet of the building for not less than three years , with rent at $2.00 per square foot per annum. Orion's monthly payment under this lease is approximately $38,000 . The lease contains options by either party to reduce the amount of leased space after March 1, 2017. Purchase Commitments Orion enters into non-cancellable purchase commitments for certain inventory items in order to secure better pricing and ensure materials on hand and capital expenditures. As of March 31, 2017 , Orion had entered into $4,218,000 of purchase commitments related to fiscal 2018 for inventory purchases. Retirement Savings Plan Orion sponsors a tax deferred retirement savings plan that permits eligible employees to contribute varying percentages of their compensation up to the limit allowed by the Internal Revenue Service. This plan also provides for discretionary contributions by Orion. In fiscal 2017 , 2016 and 2015 , Orion made matching contributions of approximately $9,000 , $10,000 and $23,000 , respectively. Litigation Orion is subject to various claims and legal proceedings arising in the ordinary course of business. As of the date of this report, Orion is unable to currently assess whether the final resolution of any of such claims or legal proceedings may have a material adverse effect on our future results of operations. In addition to ordinary-course litigation, Orion is a party to the proceedings described below. On March 27, 2014, Orion was named as a defendant in a civil lawsuit filed by Neal R. Verfuerth, a Former Chief Executive Officer who was terminated for cause in November 2012, in the United States District Court for the Eastern District of Wisconsin (Green Bay Division). The plaintiff alleged, among other things, that Orion breached certain agreements entered into with the plaintiff, including the plaintiff’s employment agreement, and violated certain laws. The complaint sought, among other relief, unspecified pecuniary and compensatory damages, fees and such other relief as the court may deem just and proper. On November 4, 2014, the court granted Orion's motion to dismiss six of the plaintiff's claims. On January 9, 2015, the plaintiff filed an amended complaint re-alleging claims that were dismissed by the court, including, among other things, a retaliation claim and certain claims with respect to prior management agreements and certain intellectual property rights. On January 22, 2015, Orion filed a motion to dismiss and a motion to strike certain of the claims made in the amended complaint. On May 18, 2015, the court dismissed the intellectual property claims re-alleged in the January 9, 2015 amended complaint. At the court's direction, the parties attempted to mediate the matter in May 2016, but were unsuccessful in resolving the matter. On August 25, 2016, the Chief Judge of the United States District Court for the Eastern District of Wisconsin (Green Bay Division) dismissed all claims against Orion brought by the plaintiff, including his claims that Orion had allegedly breached the plaintiff’s employment agreement and had allegedly violated the plaintiff's whistleblower rights. On September 22, 2016, the plaintiff filed an appeal to the United States Court of Appeals challenging the judgment rendered on August 25, 2016. After the court-mandated mediation was unsuccessful, the plaintiff moved forward with his appeal focusing only on the District Court's dismissal of his whistleblower claims. Orion intends to continue to defend against the claims vigorously. Orion believes it has substantial legal and factual defenses to the claims and allegations remaining in the case and that Orion will prevail in this proceeding. Based upon the current status of the lawsuit, Orion does not believe that it is reasonably possible that the lawsuit will have a material adverse impact on its future continuing results of operations. State Tax Assessment Orion negotiated a settlement with the Wisconsin Department of Revenue with respect to an assessment regarding the proper classification of its products for tax purposes under Wisconsin law. Orion resolved this matter with the Wisconsin Department of Revenue in June 2016 for $460,000 . |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Common Stock Transactions On February 20, 2015, Orion completed an underwritten public offering of 5,462,500 shares of its common stock, at an offering price to public of $3.50 per share. Net proceeds of the offering approximated $17,465,000 . Share Repurchase Program and Treasury Stock In October 2011, Orion’s Board of Directors approved a share repurchase program authorizing Orion to repurchase in aggregate up to a maximum of $1,000,000 of Orion’s outstanding common stock. In November 2011, Orion’s Board of Directors approved an increase to the share repurchase program authorizing Orion to repurchase in aggregate up to a maximum of $2,500,000 of Orion’s outstanding common stock. In April 2012, Orion's Board approved another increase to the share repurchase program authorizing Orion to repurchase in aggregate up to a maximum of $7,500,000 of Orion's outstanding common stock. As of March 31, 2017 , Orion had repurchased 3,022,349 shares of common stock at a cost of $6,791,000 under the program. Orion did not repurchase any shares in fiscal 2017, fiscal 2016 or fiscal 2015 and does not intend to repurchase any additional common stock under this program in the near-term. Shareholder Rights Plan On January 7, 2009, Orion’s Board of Directors adopted a shareholder rights plan and declared a dividend distribution of one common share purchase right (Right) for each outstanding share of Orion’s common stock. The issuance date for the distribution of the Rights was February 15, 2009 to shareholders of record on February 1, 2009. Each Right entitles the registered holder to purchase from Orion one share of Orion’s common stock at a price of $30.00 per share, subject to adjustment (Purchase Price). The Rights will not be exercisable (and will be transferable only with Orion’s common stock) until a “Distribution Date” occurs (or the Rights are earlier redeemed or expire). A Distribution Date generally will occur on the earlier of a public announcement that a person or group of affiliated or associated persons (Acquiring Person) has acquired beneficial ownership of 20% or more of Orion’s outstanding common stock (Shares Acquisition Date) or 10 business days after the commencement of, or the announcement of an intention to make, a tender offer or exchange offer that would result in any such person or group of persons acquiring such beneficial ownership. If a person becomes an Acquiring Person, holders of Rights (except as otherwise provided in the shareholder rights plan) will have the right to receive that number of shares of Orion’s common stock having a market value of two times the then-current Purchase Price, and all Rights beneficially owned by an Acquiring Person, or by certain related parties or transferees, will be null and void. If, after a Shares Acquisition Date, Orion is acquired in a merger or other business combination transaction or 50% or more of its consolidated assets or earning power are sold, proper provision will be made so that each holder of a Right (except as otherwise provided in the shareholder rights plan) will thereafter have the right to receive that number of shares of the acquiring company’s common stock which at the time of such transaction will have a market value of two times the then-current Purchase Price. Until a Right is exercised, the holder thereof, as such, will have no rights as a shareholder of Orion. At any time prior to a person becoming an Acquiring Person, the Board of Directors of Orion may redeem the Rights in whole, but not in part, at a price of $0.001 per Right. Unless they are extended or earlier redeemed or exchanged, the Rights will expire on January 7, 2019. Employee Stock Purchase Plan In August 2010, Orion’s Board of Directors approved a non-compensatory employee stock purchase plan, or ESPP. The ESPP authorizes 2,500,000 shares to be issued from treasury or authorized shares to satisfy employee share purchases under the ESPP. All full-time employees of Orion are eligible to be granted a non-transferable purchase right each calendar quarter to purchase directly from Orion up to $20,000 of Orion’s common stock at a purchase price equal to 100% of the closing sale price of Orion’s common stock on The NASDAQ Capital Market on the last trading day of each quarter. The ESPP allows for employee loans from Orion, except for Section 16 officers, limited to 20% of an individual’s annual income and no more than $250,000 outstanding at any one time. Interest on the loans is charged at the 10 -year loan IRS rate and is payable at the end of each calendar year or upon loan maturity. The loans are secured by a pledge of any and all Orion’s shares purchased by the participant under the ESPP and Orion has full recourse against the employee, including offset against compensation payable. As of March 31, 2013, Orion had halted the loan program. Orion had the following shares issued from treasury during fiscal 2017 and fiscal 2016 : As of March 31, 2017 Shares Issued Under ESPP Closing Market Shares Issued Under Loan Dollar Value of Repayment of Quarter Ended March 31, 2017 1,034 $1.98 — $ — $ — Quarter Ended December 31, 2016 840 $2.17 — — — Quarter Ended September 30, 2016 1,511 $1.33 — — — Quarter Ended June 30, 2016 1,771 $1.16 — — — Total 5,156 $1.16 - 2.17 — $ — $ — As of March 31, 2016 Shares Issued Under ESPP Closing Market Shares Issued Under Loan Dollar Value of Repayment of Quarter Ended March 31, 2016 1,435 $1.39 — $ — $ — Quarter Ended December 31, 2015 1,170 $2.17 — — — Quarter Ended September 30, 2015 779 $1.80 — — — Quarter Ended June 30, 2015 541 $2.51 — — — Total 3,925 $1.39 - 2.51 — $ — $ — In prior years, Orion issued loans to non-executive employees to purchase shares of its stock. As of March 31, 2017 and March 31, 2016, $4,000 of such loans remained outstanding and are reflected on Orion’s balance sheet as a contra-equity account. No new loans were issued during the periods presented as the loan program was discontinued. |
Stock Options, Restricted Share
Stock Options, Restricted Shares and Warrants | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK OPTIONS, RESTRICTED SHARES AND WARRANTS | STOCK OPTIONS, RESTRICTED SHARES AND WARRANTS At Orion's 2016 Annual Meeting of Shareholders held on August 3, 2016, Orion's shareholders approved the Orion Energy Systems, Inc. 2016 Omnibus Incentive Plan (the "Plan"). The Plan authorizes grants of equity-based and incentive cash awards to eligible participants designated by the Plan's administrator. Awards under the Plan may consist of stock options, stock appreciation rights, performance shares, performance units, shares of Orion's common stock ("Common Stock"), restricted stock, restricted stock units, incentive awards or dividend equivalent units. An aggregate of 1,750,000 shares of Common Stock are reserved for issuance under the Plan. Prior to shareholder approval of the Plan, the Company maintained its 2004 Stock and Incentive Awards Plan, as amended, which authorized the grant of cash and equity awards to employees (the “Former Plan”). No new awards will be granted under the Former Plan, however, all awards granted under the Former Plan that were outstanding as of August 3, 2016 will continue to be governed by the Former Plan. Forfeited awards originally issued under the Former Plan are canceled and are not available for subsequent issuance under the 2016 Omnibus Plan. Certain non-employee directors have elected to receive stock awards in lieu of cash compensation pursuant to elections made under Orion’s non-employee director compensation program. The Plan and the Former Plan also permit accelerated vesting in the event of certain changes of control of Orion as well as under other special circumstances. Orion historically granted stock options and restricted stock under the Former Plan. Orion has not issued stock options since fiscal 2014 and instead has issued restricted stock. Orion accounts for stock-based compensation in accordance with ASC 718, Compensation - Stock Compensation. Under the fair value recognition provisions of ASC 718, stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense ratably over the requisite service period, net of estimated forfeitures In fiscal 2017 , an aggregate of 1,132,392 restricted shares were granted valued at a price per share between $1.35 and $2.22 , which was the closing market price as of each grant date. In fiscal 2016 , an aggregate of 795,805 restricted shares were granted valued at a price per share between $1.34 and $2.62 , which was the closing market price as of each grant date. In fiscal 2015, an aggregate of 410,496 restricted shares were granted valued at a price per share between $4.16 and $7.23 , which was the closing market price as of each grant date. In fiscal 2017 , Orion granted an aggregate of 53,501 shares from the 2004 Stock and Incentive Awards Plan and the 2016 Omnibus Incentive Plan to certain non-employee directors who elected to receive stock awards in lieu of cash compensation. The shares were valued ranging from $1.38 to $1.85 per share, the closing market price as of the issuance dates. In fiscal 2016 , Orion granted 35,290 shares from the 2004 Stock and Incentive Awards Plan to certain non-employee directors who elected to receive stock awards in lieu of cash compensation. The shares were valued ranging from $1.20 to $2.62 per share, the closing market price as of the issuance dates. Additionally, during fiscal 2016, Orion issued 2,500 shares to a consultant as part of a consulting compensation agreement. The shares were valued at $2.00 per share, the closing market price as of the issuance date. In fiscal 2015 , Orion granted 27,931 shares from the 2004 Stock and Incentive Awards Plan to certain non-employee directors who elected to receive stock awards in lieu of cash compensation. The shares were valued ranging from $4.20 to $5.23 per share, the closing market price as of the issuance dates. On June 7, 2016, Orion issued and sold 57,065 shares of its common stock to an executive. On August 5, 2016, Orion sold an aggregate of 63,381 shares of its common stock, in equal amounts, to three recently retired members of Orion's board of directors. In each case above, the purchase price for the shares was calculated based on the closing price of Orion's common stock on the NASDAQ Capital Market of the date of the issuance. The shares of common stock were offered and sold pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(2) and Rule 701. The following amounts of stock-based compensation were recorded (dollars in thousands): Fiscal Year Ended March 31, 2017 2016 2015 Cost of product revenue $ 30 $ 36 $ 50 General and administrative 1,337 1,148 1,056 Sales and marketing 139 235 360 Research and development 99 43 33 $ 1,605 $ 1,462 $ 1,499 The number of shares available for grant under the plans were as follows: Available at March 31, 2014 1,291,996 Granted stock options — Granted shares (27,931 ) Restricted Shares (410,496 ) Forfeited restricted shares 74,957 Forfeited stock options 150,074 Available at March 31, 2015 1,078,600 Granted stock options — Granted shares (64,960 ) Restricted Shares (795,805 ) Forfeited restricted shares 206,471 Forfeited stock options 363,380 Available at March 31, 2016 787,686 Shares reserved under new plan 1,750,000 Shares canceled from old plan (168,289 ) Granted stock options — Granted shares (58,484 ) Restricted shares (1,132,392 ) Forfeited restricted shares 52,500 Forfeited stock options 67,200 Available at March 31, 2017 1,298,221 The following table summarizes information with respect to outstanding stock options: Number of Weighted Weighted Aggregate Intrinsic Outstanding at March 31, 2014 2,716,317 $ 3.43 1.32 Granted — $ — Exercised (139,407 ) $ 2.46 Forfeited (150,074 ) $ 3.13 Outstanding at March 31, 2015 2,426,836 $ 3.50 — Granted — $ — Exercised (46,410 ) $ 2.09 Forfeited (363,380 ) $ 4.68 Outstanding at March 31, 2016 2,017,046 $ 3.32 — Granted — $ — Exercised (80,000 ) $ 2.20 Forfeited (416,093 ) $ 3.41 Outstanding at March 31, 2017 1,520,953 $ 3.36 — $ 53,760 Exercisable at March 31, 2017 1,405,653 $ 49,536 The aggregate intrinsic value represents the total pre-tax intrinsic value, which is calculated as the difference between the exercise price of the underlying stock options and the fair value of Orion’s closing common stock price of $1.98 as of March 31, 2017 . The following table summarizes the range of exercise prices on outstanding stock options at March 31, 2017 : March 31, 2017 Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Vested Weighted Average Exercise Price $1.62 - 2.20 460,584 5.33 $1.90 406,484 $1.89 $2.41 - 2.75 212,640 5.99 2.45 209,440 2.44 $2.86 - 4.28 650,674 2.97 3.39 592,674 3.43 $4.49 - 4.76 25,000 1.44 4.64 25,000 4.64 $5.35 - 5.44 75,204 2.01 5.39 75,204 5.39 $9.00 27,000 0.87 9.00 27,000 9.00 $10.14 - 11.61 69,851 0.98 10.56 69,851 10.56 1,520,953 3.90 $3.36 1,405,653 $3.42 During fiscal 2017 , Orion granted restricted shares as follows (which are included in the above stock plan activity tables): Balance at March 31, 2016 1,053,389 Shares issued 1,132,392 Shares vested (375,738 ) Shares forfeited (105,500 ) Shares outstanding at March 31, 2017 1,704,543 Per share price on grant date $1.35-6.80 Compensation expense $ 1,680,362 As of March 31, 2017 , the weighted average grant-date fair value of restricted shares granted was $1.43 . Unrecognized compensation cost related to non-vested common stock-based compensation as of March 31, 2017 is as follows (dollars in thousands): Fiscal 2018 $ 1,189 Fiscal 2019 673 Fiscal 2020 186 Fiscal 2021 46 Fiscal 2022 — Thereafter — $ 2,094 Remaining weighted average expected term 2.2 years Orion previously issued warrants in connection with various stock offerings and services rendered. The warrants granted the holder the option to purchase common stock at specified prices for a specified period of time. No warrants were issued in fiscal 2017 , 2016 or 2015 . During fiscal 2015, all warrants outstanding for a total of 38,980 shares were exercised at $2.25 per share, and as a result, none remain outstanding. |
Segment Data
Segment Data | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT DATA | SEGMENT DATA Orion has the following business segments: Orion U.S. Markets Division ("USM"), Orion Engineered Services Division ("OES") and Orion Distribution Services Division ("ODS"). The accounting policies are the same for each business segment as they are on a consolidated basis. Business segment assets consist of all balance sheet assets except for cash and other long term assets which are grouped in Corporate and Other. Orion U.S. Markets Division Our USM segment sells commercial lighting systems and energy management systems to the wholesale contractor markets. USM customers include ESCOs and electrical contractors. During fiscal 2017, a significant portion of the historic sales of this division migrated to distribution channel sales as a result of the implementation of our distribution sales strategy. The migrated sales are included in Orion's ODS Division. We expect this migration to continue during fiscal 2018. Orion Engineered Systems Division The OES segment develops and sells lighting products and provides construction and engineering services for Orion's commercial lighting and energy management systems. OES provides turnkey solutions for large national accounts, governments, municipalities and schools. Orion Distribution Services Division The ODS segment focuses on selling lighting products through manufacturer representative agencies and a network of broadline North American distributors. This segment expanded in fiscal 2017 as a result of the expansion of sales through distributors as a result of the implementation of Orion's distribution sales strategy. This expansion included the migration of customers from direct sales previously included in Orion's USM division. Corporate and Other Corporate and Other is comprised of operating expenses not directly allocated to Orion’s segments and adjustments to reconcile to consolidated results. Revenues Operating (Loss) Profit (dollars in thousands) For the year ended March 31, For the year ended March 31, 2017 2016 2015 2017 2016 2015 Segments: U.S. Markets $ 17,852 $ 38,841 $ 37,778 $ (1,357 ) $ (4,958 ) $ (12,542 ) Engineered Systems 29,501 26,325 33,454 (3,647 ) (6,982 ) (12,431 ) Distribution Services 22,858 2,476 978 (927 ) (632 ) (455 ) Corporate and Other — — — (6,596 ) (7,349 ) (6,508 ) $ 70,211 $ 67,642 $ 72,210 $ (12,527 ) $ (19,921 ) $ (31,936 ) Depreciation and Amortization Capital Expenditures For the year ended March 31, For the year ended March 31, 2017 2016 2015 2017 2016 2015 Segments: U.S. Markets $ 359 $ 1,168 $ 1,711 $ 150 $ 72 $ 626 Engineered Systems 1,249 1,987 1,404 224 43 495 Distribution Services 148 71 32 184 10 40 Corporate and Other 576 939 1,036 102 276 845 $ 2,332 $ 4,165 $ 4,183 $ 660 $ 401 $ 2,006 Total Assets Deferred Revenue March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Segments: U.S. Markets $ 6,698 $ 18,503 $ 141 $ 167 Engineered Systems 18,111 21,885 1,424 1,098 Distribution Services 9,702 1,386 — — Corporate and Other 27,540 29,101 — — $ 62,051 $ 70,875 $ 1,565 $ 1,265 Orion’s revenue outside the United States is insignificant and Orion has no long-lived assets outside the United States. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and noted the following event requiring disclosure. On May 25, 2017, Orion's Board of Directors restructured its management team. As part of this restructuring, Orion's Chief Executive Officer left the Company and its current Board Chair assumed the role of Chief Executive Officer. Orion estimates that the accrual needed for severance and other related costs for the departing CEO and other cost reduction initiatives because of the management change to be approximately $1,500,000 to $2,000,000 . These costs are expected to be principally incurred in the first quarter of fiscal 2018. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) Summary quarterly results for the years ended March 31, 2017 and March 31, 2016 are as follows: Three Months Ended Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Total (in thousands, except per share amounts) Total revenue $ 15,290 $ 20,617 $ 18,670 $ 15,634 $ 70,211 Gross profit $ 912 $ 6,155 $ 6,244 $ 4,026 $ 17,337 Net loss (1) $ (7,292 ) $ (1,086 ) $ (970 ) $ (2,940 ) $ (12,288 ) Basic net loss per share $ (0.26 ) $ (0.04 ) $ (0.03 ) $ (0.11 ) $ (0.44 ) Shares used in basic per share calculation 28,310 28,259 28,172 27,886 28,156 Diluted net loss per share $ (0.26 ) $ (0.04 ) $ (0.03 ) $ (0.11 ) $ (0.44 ) Shares used in diluted per share calculation 28,310 28,259 28,172 27,886 28,156 Three Months Ended Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Total (in thousands, except per share amounts) Total revenue $ 18,576 $ 16,751 $ 15,728 $ 16,587 $ 67,642 Gross profit $ 4,619 $ 4,708 $ 2,913 $ 3,757 $ 15,997 Net loss (2) $ (10,871 ) $ (2,004 ) $ (3,600 ) $ (3,651 ) $ (20,126 ) Basic net loss per share $ (0.39 ) $ (0.07 ) $ (0.13 ) $ (0.13 ) $ (0.73 ) Shares used in basic per share calculation 27,759 27,672 27,598 27,482 27,628 Diluted net loss per share $ (0.39 ) $ (0.07 ) $ (0.13 ) $ (0.13 ) $ (0.73 ) Shares used in diluted per share calculation 27,759 27,672 27,598 27,482 27,628 (1) Includes intangible impairment of $250 and $2,209 related to inventory reserve and other inventory adjustments. (2) Includes $4,409 related to the impairment of goodwill, and $1,614 related to the write-down to fair value of the manufacturing facility, and $1,400 reserve for a loss contingency. The four quarters for net earnings per share may not add to the total year because of differences in the weighted average number of shares outstanding during the quarters and the year. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
SCEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II Balance at Provisions Write offs Balance at March 31, (in Thousands) 2017 Allowance for Doubtful Accounts $ 505 $ 132 $ 493 $ 144 2016 Allowance for Doubtful Accounts $ 458 $ 575 $ 528 $ 505 2015 Allowance for Doubtful Accounts $ 384 $ 285 $ 211 $ 458 2017 Inventory Obsolescence Reserve $ 2,127 $ 2,212 $ 866 $ 3,473 2016 Inventory Obsolescence Reserve $ 1,619 $ 509 $ 1 $ 2,127 2015 Inventory Obsolescence Reserve $ 2,527 $ 10,505 $ 11,413 $ 1,619 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Orion Energy Systems, Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. |
Reclassifications | Reclassifications Where appropriate, certain reclassifications have been made to prior years’ financial statements to conform to the current year presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during that reporting period. Areas that require the use of significant management estimates include revenue recognition, inventory obsolescence and allowance for doubtful accounts, accruals for warranty and loss contingencies, income taxes and certain equity transactions. Accordingly, actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Orion considers all highly liquid, short-term investments with original maturities of three months or less to be cash equivalents. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Orion’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other, revolving credit facility and long-term debt. The carrying amounts of Orion’s financial instruments approximate their respective fair values due to the relatively short-term nature of these instruments, or in the case of long-term debt and revolving credit facility, because of the interest rates currently available to Orion for similar obligations. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. GAAP describes a fair value hierarchy based on the following three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: Level 1 — Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 — Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly. Level 3 — Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management's best estimate of what market participants would use in valuing the asset or liability at the measurement date. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Orion performs ongoing evaluations of its customers and continuously monitors collections and payments and estimate an allowance for doubtful accounts based upon the aging of the underlying receivables, historical experience with write-offs and specific customer collection issues that have been identified. |
Long-Term Receivables | Long-Term Receivables Orion records a long-term receivable for the non-current portion of its sales-type capital lease OTA contracts. The receivable is recorded at the net present value of the future cash flows from scheduled customer payments. Orion uses the implied cost of capital from each individual contract as the discount rate. |
Deferred Contract Costs | Deferred Contract Costs Deferred contract costs consist primarily of the costs of products delivered, and services performed, that are subject to additional performance obligations or customer acceptance. These deferred contract costs are expensed at the time the related revenue is recognized. |
Incentive Compensation | Incentive Compensation Orion’s compensation committee approved an Executive Fiscal Year 2017 Annual Cash Incentive Program under its 2004 Stock and Incentive Plan. The plan provided for performance cash bonus payments ranging from 35-100% of the fiscal 2017 base salaries of Orion’s named executive officers and other key employees. The plan provided for bonuses to be paid out on the basis of the achievement in fiscal 2017 of at least (i) $500,000 of profit before taxes and (ii) revenue growth of 10% more than fiscal year 2016. Based upon the results for the year ended March 31, 2017, Orion did not accrue any expense related to this plan. Orion’s compensation committee approved an Executive Fiscal Year 2016 Annual Cash Incentive Program under its 2004 Stock and Incentive Awards Plan. The plan provided for performance cash bonus payments ranging from 35-100% of the fiscal 2016 base salaries of Orion’s named executive officers and other key employees. The plan provided for bonuses to be paid out on the basis of the achievement in fiscal 2016 of at least (i) $110,000 of profit before taxes and (ii) revenue growth of 10% more than fiscal year 2015. Based upon the results for the year ended March 31, 2016, Orion did not accrue any expense related to this plan. Orion’s compensation committee approved an Executive Fiscal Year 2015 Annual Cash Incentive Program under its 2004 Stock and Incentive Awards Plan. The plan provided for performance cash bonus payments ranging from 35-100% of the fiscal 2015 base salaries of Orion’s named executive officers and other key employees. The plan provided for bonuses to be paid out on the basis of the achievement in fiscal 2015 of at least (i) $2,300,000 of profit before taxes and (ii) revenue of at least $90,400,000 . Based upon the results for the year ended March 31, 2015, Orion did not accrue any expense related to this plan. |
Revenue Recognition | Revenue Recognition Revenue is recognized on the sales of Orion's lighting and related energy-efficiency systems and products when the following four criteria are met: 1. persuasive evidence of an arrangement exists; 2. delivery has occurred and title has passed to the customer; 3. the sales price is fixed and determinable and no further obligation exists; and 4. collectability is reasonably assured. These four criteria are met for Orion’s product-only revenue upon delivery of the product and title passing to the customer. At that time, Orion provides for estimated costs that may be incurred for product warranties and sales returns. Revenues are presented net of sales tax and other sales related taxes. For sales of Orion’s lighting and energy management technologies under multiple element arrangements, consisting of a combination of product sales and services, Orion determines revenue by allocating the total contract revenue to each element based on their relative selling prices in accordance with ASC 605-25, Revenue Recognition - Multiple Element Arrangements . In such circumstances, Orion uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (1) vendor-specific objective evidence ("VSOE") of fair value, if available, (2) third-party evidence ("TPE") of selling price if VSOE is not available, and (3) best estimate of the selling price if neither VSOE nor TPE is available (a description as to how Orion determines estimated selling price is provided below). The nature of Orion’s multiple element arrangements for the sale of its lighting and energy management technologies is similar to a construction project, with materials being delivered and contracting and project management activities occurring according to an installation schedule. The significant deliverables include the shipment of products and related transfer of title and the installation. To determine the selling price in multiple-element arrangements, Orion establishes the selling price for its energy management system products using management's best estimate of the selling price, as VSOE and TPE do not exist. Product revenue is recognized when title and risk of loss for the products transfers. For product revenue, management's best estimate of selling price is determined using a cost plus gross profit margin method. In addition, Orion records in service revenue the selling price for its installation and recycling services using management’s best estimate of selling price, as VSOE and TPE do not exist. Service revenue is recognized when services are completed and customer acceptance has been received. Recycling services provided in connection with installation entail the disposal of the customer’s legacy lighting fixtures. Orion’s service revenues, other than for installation and recycling that are completed prior to delivery of the product, are included in product revenue using management’s best estimate of selling price, as VSOE and TPE do not exist. These services include comprehensive site assessment, site field verification, utility incentive and government subsidy management, engineering design, and project management. For these services, along with Orion's installation and recycling services, under a multiple-element arrangement, management’s best estimate of selling price is determined using a cost plus gross profit margin method with consideraion given to other relevant economic conditions and trends, customer demand, pricing practices, and margin objectives. The determination of an estimated selling price is made through consultation with and approval by management, taking into account the preceding factors. Orion offers a financing program, called an Orion Throughput Agreement, or OTA, for a customer’s lease of Orion’s energy management systems. The OTA is structured as a sales-type lease and upon successful installation of the system and customer acknowledgment that the system is operating as specified, revenue is recognized at Orion’s net investment in the lease, which typically is the net present value of the future cash flows. Orion has limited Power Purchase Agreement (“PPA”) contracts still outstanding. Those PPA’s outstanding are supply side agreements for the generation of electricity for which we recognize revenue on a monthly basis over the life of the PPA contract, typically in excess of 10 years . Prior to fiscal 2015, Orion sold solar PV systems which were recognized to revenue using the percentage-of-completion method by measuring project progress by the percentage of costs incurred to date of the total estimated costs for each contract as materials are installed. Revenue from sales of Orion's solar PV systems is generally recognized over a period of three to 15 months . There were no sales of solar PV systems in fiscal 2017, fiscal 2016 or fiscal 2015. Deferred revenue relates to advance customer billings, investment tax grants received related to PPAs and long term maintenance contracts on OTAs and is classified as a liability on the condensed consolidated balance sheet. The fair value of the maintenance is readily determinable based upon pricing from third-party vendors. Deferred revenue related to maintenance services is recognized when the services are delivered, which occurs in excess of a year after the original OTA contract is executed. |
Shipping and Handling Costs | Shipping and Handling Costs Orion records costs incurred in connection with shipping and handling of products as cost of product revenue. Amounts billed to customers in connection with these costs are included in product revenue. |
Advertising | Advertising Advertising costs of $94,000 , $4,000 and $149,000 for fiscal 2017 , 2016 and 2015 , respectively, were charged to operations as incurred. |
Research and Development | Research and Development Orion expenses research and development costs as incurred. Amounts are included in the Statement of Operations and Comprehensive Income on the line item Research and development. |
Income Taxes | Income Taxes Orion recognizes deferred tax assets and liabilities for the future tax consequences of temporary differences between financial reporting and income tax basis of assets and liabilities, measured using the enacted tax rates and laws expected to be in effect when the temporary differences reverse. Deferred income taxes also arise from the future tax benefits of operating loss and tax credit carry-forwards. A valuation allowance is established when management determines that it is more likely than not that all or a portion of a deferred tax asset will not be realized. For the fiscal year ended March 31, 2017 , Orion recorded a full valuation allowance of $4,627,000 against its deferred tax assets. ASC 740, Income Taxes , also prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination. Orion has classified the amounts recorded for uncertain tax benefits in the balance sheet as other liabilities (non-current) to the extent that payment is not anticipated within one year. Orion recognizes penalties and interest related to uncertain tax liabilities in income tax expense. Penalties and interest are immaterial and are included in the unrecognized tax benefits. Deferred tax benefits have not been recognized for income tax effects resulting from the exercise of non-qualified stock options. These benefits will be recognized in the period in which the benefits are realized as a reduction in taxes payable and an increase in additional paid-in capital. |
Stock Based Compensation | Stock Based Compensation Orion’s share-based payments to employees are measured at fair value and are recognized in earnings, net of estimated forfeitures, on a straight-line basis over the requisite service period. Cash flows from the exercise of stock options resulting from tax benefits in excess of recognized cumulative compensation costs (excess tax benefits) are classified as financing cash flows. Orion realized no such tax benefits during the years ended March 31, 2017 , 2016 and 2015 . Historically, Orion uses the Black-Scholes option-pricing model for issued stock options. Orion calculated volatility based upon the historical market price of its common stock. The risk-free interest rate is the rate available as of the option date on zero-coupon U.S. Government issues with a remaining term equal to the expected term of the option. The expected term was based upon the vesting term of Orion’s options and expected exercise behavior. Orion accounts for stock-based compensation in accordance with ASC 718, Compensation - Stock Compensation. Under the fair value recognition provisions of ASC 718, stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense ratably over the requisite service period, net of estimated forfeitures. As more fully described in Note 9, Orion currently awards non-vested restricted stock to employees, executive officers and directors. Orion did not issue any stock options during fiscal 2017, fiscal 2016 or fiscal 2015. Orion has not paid dividends in the past and does not plan to pay any dividends in the foreseeable future. Orion estimates its forfeiture rate of unvested stock awards based on historical experience. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Orion’s cash is deposited with two financial institutions. At times, deposits in these institutions exceed the amount of insurance provided on such deposits. Orion has not experienced any losses in such accounts and believes that it is not exposed to any significant financial institution viability risk on these balances. Orion purchases components necessary for its lighting products, including ballasts, lamps and LED components, from multiple suppliers. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Issued: Not Yet Adopted In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15, "Classification of Certain Cash Receipts and Cash Payments," which provides clarification and additional guidance as to the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The ASU provides guidance, as to the classification of a number of transactions including: contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. The new standard will be effective for Orion in the first quarter of fiscal 2019 and will be applied through retrospective adjustment to all periods presented. Orion does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Subtopic 842)." This ASU requires that lessees recognize right-of-use assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and disclose additional quantitative and qualitative information about leasing arrangements. Under this ASU, leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. Similarly, lessors will be required to classify leases as sales-type, finance or operating leases, with classification affecting the pattern of income recognition. Classification for both lessees and lessors will be based on an assessment of whether risks and rewards as well as substantive control have been transferred through the lease contract. This ASU also provides guidance on the presentation of the effects of leases in the income statement and statement of cash flows. This guidance will be effective for Orion on April 1, 2019. Early adoption of the standard is permitted and a modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company has not yet completed its review of the full provisions of this standard against its outstanding lease arrangements and is in the process of quantifying the lease liability and related right of use asset which will be recorded to its consolidated balance sheets upon adoption of the standard. In addition, management continues to assess the impact of adoption of this standard on its consolidated statements of operations, cash flows, and the related footnote disclosures. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In addition, the ASU requires enhanced and expanded financial statement disclosures. Since the issuance of this ASU, the FASB has issued further ASU’s to provide additional guidance and clarification as to the application of ASU 2014-09 and delaying its original effective date. The ASU allows companies to elect either a full retrospective or modified retrospective approach to adoption. Orion will adopt ASU 2014-09 and the related updates with their effective date on April 1, 2018. Orion has begun the process of implementing this standard, including performing a review of its revenue streams to identify any differences in the timing, measurement, or presentation of revenue recognition. The Company is in the process of reviewing the provisions of these standards against its customer contracts, including evaluating and identifying distinct performance obligations. The Company continues to evaluate its customer contracts to determine the impact on the timing and presentation of revenue. In addition, the Company is evaluating any necessary changes to its revenue related processes and controls as a result of the new standard, including the related footnote disclosures. Under ASU 2014-09 incremental contract costs, including sales commissions, may be required to be capitalized and expensed over the period these costs are recovered. Although Orion incurs commission costs, its contracts are typically completed within one year. As such, the Company will elect to apply the practical expedient for contract costs recovered within one year and will continue to recognize commissions as cost of sales immediately rather than capitalizing and expensing these costs over the contract period. Orion currently plans to elect the modified retrospective adoption method but continues to evaluate both of the available transition methods. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” to simplify the presentation of deferred taxes. The amendments in this update require that deferred tax assets and liabilities be classified as non-current on the balance sheet. This ASU is effective for Orion's annual reporting period, and interim periods therein, as of April 1, 2017. The adoption of this standard will have no impact on Orion’s consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value for entities that measure inventory using first-in, first-out ("FIFO") or average cost. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU is effective for Orion on April 1, 2017. The Company believes the adoption of this standard will not have a material impact on Orion’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of related matters in the statement of cash flows. The ASU is effective for Orion as of April 1, 2017. The adoption of this standard is not expected to have a material impact on Orion’s consolidated financial statements. Recently Adopted Standards As of April 1, 2016, Orion adopted the provisions of ASU 2015-03 “Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” and the related ASU 2015-15 “Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update).” This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a reduction of the carrying amount of that debt liability, consistent with debt discounts, with the exception of debt issuance costs associated with line of credit agreements which may remain classified as an asset and amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. As Orion’s only deferred debt issuance costs relate to its revolving line of credit, upon adoption of these standards a reclassification of the deferred financing costs was not required and there was no impact on Orion’s condensed consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements - Going Concern" ("ASU 2014-15"). ASU 2014-15 requires an entity's management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern and if those conditions exist prescribes the necessary disclosures. Orion incorporated the provisions of this standard in performing its going concern analysis as of March 31, 2017. The adoption of this standard did not have an impact on Orion’s consolidated financial statements or footnote disclosures. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Accounts receivable and allowance for doubtful accounts balances | Orion's accounts receivable and allowance for doubtful accounts balances were as follows (dollars in thousands): 2017 2016 Accounts receivable, gross $ 9,315 $ 11,394 Allowance for doubtful accounts (144 ) (505 ) Accounts receivable, net $ 9,171 $ 10,889 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Credit quality of the company's financing receivables using aging analysis | Age Analysis as of March 31, 2017 (dollars in thousands): Not Past Due 1-90 days Greater than 90 Total past due Total sales-type Lease balances included in consolidated accounts receivable—current $ 44 $ — $ 3 $ 3 $ 47 Lease balances included in consolidated accounts receivable—long-term 5 — — — 5 Total gross sales-type leases 49 — 3 3 52 Allowance — — — — — Total net sales-type leases $ 49 $ — $ 3 $ 3 $ 52 Age Analysis as of March 31, 2016 (dollars in thousands): Not Past Due 1-90 days Greater than 90 Total past due Total sales-type Lease balances included in consolidated accounts receivable—current $ 294 $ 4 $ 10 $ 14 $ 308 Lease balances included in consolidated accounts receivable—long-term 101 — — — 101 Total gross sales-type leases 395 4 10 14 409 Allowance — — (9 ) (9 ) (9 ) Total net sales-type leases $ 395 $ 4 $ 1 $ 5 $ 400 |
Provisions for write-offs and credit losses against OTA sales-type lease receivable balances | Orion’s provision for write-offs and credit losses against the OTA sales-type lease receivable balances in fiscal 2017 , fiscal 2016 and fiscal 2015, respectively, was as follows (dollars in thousands): Balance at Provisions Write offs Balance at March 31, (in Thousands) 2017 Allowance for Doubtful Accounts on financing receivables $ 9 $ — $ 9 $ — 2016 Allowance for Doubtful Accounts on financing receivables $ 156 $ 30 $ 177 $ 9 2015 Allowance for Doubtful Accounts on financing receivables $ 94 $ 62 $ — $ 156 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | As of March 31, 2017 and 2016 , Orion's inventory balances were as follows (dollars in thousands): Cost Obsolescence Reserve Net As of March 31, 2017 Raw materials and components $ 8,104 $ (1,807 ) $ 6,297 Work in process 1,918 (329 ) 1,589 Finished goods 7,044 (1,337 ) 5,707 Total $ 17,066 $ (3,473 ) $ 13,593 As of March 31, 2016 Raw materials and components $ 10,556 $ (1,052 ) $ 9,504 Work in process 2,045 (119 ) 1,926 Finished goods 6,550 (956 ) 5,594 Total $ 19,151 $ (2,127 ) $ 17,024 |
Prepaid Expenses and Other Cu33
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid expenses and other current assets | Prepaid expenses and other current assets include the following (dollars in thousands): March 31, 2017 March 31, 2016 Unbilled accounts receivable $ 2,226 $ 4,307 Other prepaid expenses 651 731 Total $ 2,877 $ 5,038 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment were comprised of the following (dollars in thousands): March 31, 2017 March 31, 2016 Land and land improvements $ 424 $ 421 Buildings and building improvements 9,245 11,849 Furniture, fixtures and office equipment 7,056 7,233 Leasehold improvements 324 148 Equipment leased to customers under Power Purchase Agreements 4,997 4,997 Plant equipment 11,627 10,805 Construction in progress 61 128 33,734 35,581 Less: accumulated depreciation and amortization (19,948 ) (18,577 ) Net property and equipment $ 13,786 $ 17,004 Depreciable lives by asset category are as follows: Land improvements 10-15 years Buildings and building improvements 10-39 years Furniture, fixtures and office equipment 2-10 years Leasehold improvements Shorter of asset life or life of lease Equipment leased to customers under Power Purchase Agreements 20 years Plant equipment 3-10 years |
Equipment under capital leases | Equipment included above under capital leases was as follows (dollars in thousands): March 31, 2017 March 31, 2016 Equipment $ 581 408 Less: accumulated depreciation and amortization (202 ) (65 ) Net equipment $ 379 $ 343 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in carrying value of goodwill | The change in the carrying value of goodwill during fiscal 2016 was as follows (dollars in thousands): Balance at March 31, 2015 $ 4,409 Impairments (4,409 ) Balance at March 31, 2016 $ — |
Schedule of intangible assets and goodwill | Amortizable intangible assets are amortized over their estimated economic useful life to reflect the pattern of economic benefits consumed based upon the following lives and methods: Patents 10-17 years Straight-line Licenses 7-13 years Straight-line Customer relationships 5-8 years Accelerated based upon the pattern of economic benefits consumed Developed technology 8 years Accelerated based upon the pattern of economic benefits consumed Non-competition agreements 5 years Straight-line The components of, and changes in, the carrying amount of other intangible assets were as follows (dollars in thousands): March 31, 2017 March 31, 2016 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Patents $ 2,658 $ (1,211 ) $ 1,447 $ 2,377 $ (1,053 ) $ 1,324 Licenses 58 (58 ) — 58 (58 ) — Trade name and trademarks 1,715 — 1,715 1,956 — 1,956 Customer relationships 3,600 (3,054 ) 546 3,600 (2,512 ) 1,088 Developed technology 900 (426 ) 474 900 (265 ) 635 Non-competition agreements 100 (75 ) 25 100 (55 ) 45 Total $ 9,031 $ (4,824 ) $ 4,207 $ 8,991 $ (3,943 ) $ 5,048 As of March 31, 2017 , the weighted average useful life of intangible assets was 6.0 years . The estimated amortization expense for each of the next five years is shown below (dollars in thousands): Fiscal 2018 $ 621 Fiscal 2019 445 Fiscal 2020 359 Fiscal 2021 285 Fiscal 2022 167 Thereafter 615 $ 2,492 Amortization expense is set forth in the following table (dollars in thousands): Fiscal Year Ended March 31, 2017 2016 2015 Amortization included in cost of sales: Patents $ 158 $ 139 $ 132 Total $ 158 $ 139 $ 132 Amortization included in operating expenses: Customer relationships $ 542 $ 891 $ 1,085 Developed technology 161 156 90 Non-competition agreements 20 20 20 Patents — 9 — Total 723 1,076 1,195 Total amortization $ 881 $ 1,215 $ 1,327 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other long-term assets | Other long-term assets include the following (dollars in thousands): March 31, 2017 March 31, 2016 Deferred financing costs $ — $ 92 Security deposits 117 87 Other 53 6 Total $ 170 $ 185 |
Accrued Expenses and Other (Tab
Accrued Expenses and Other (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Expenses and Other | Accrued expenses and other include the following (dollars in thousands): March 31, 2017 March 31, 2016 Compensation and benefits $ 2,431 $ 1,794 Sales tax 213 913 Contract costs 223 586 Legal and professional fees (1) 2,262 2,348 Warranty (2) 449 554 Other accruals 410 391 Total $ 5,988 $ 6,586 (1) Includes a $1,400 loss contingency recorded in fiscal 2016. (2) See table below for additional long-term warranty liability. |
Changes in warranty accrual | Changes in Orion’s warranty accrual (both current and long-term) were as follows (dollars in thousands): March 31, 2017 2016 Beginning of year (1) $ 864 $ 1,015 Provision to product cost of revenue (102 ) 159 Charges (3 ) (310 ) End of year (1) $ 759 $ 864 (1) Includes a $310 reserve related to solar operating system warranties. |
Net Income (Loss) per Common 38
Net Income (Loss) per Common Share (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Summary of the effect of net income per common share | The effect of net income (loss) per common share is calculated based upon the following shares: Fiscal Year Ended March 31, 2017 2016 2015 Numerator: Net loss (dollars in thousands) $ (12,288 ) $ (20,126 ) $ (32,061 ) Denominator: Weighted-average common shares outstanding 28,156,382 27,627,693 22,353,419 Weighted-average common shares and share equivalents outstanding 28,156,382 27,627,693 22,353,419 Net loss per common share: Basic $ (0.44 ) $ (0.73 ) $ (1.43 ) Diluted $ (0.44 ) $ (0.73 ) $ (1.43 ) |
Number of potentially dilutive securities | The following table indicates the number of potentially dilutive securities as of the end of each period: March 31, 2017 2016 2015 Common stock options 1,520,953 2,017,046 2,426,836 Restricted shares 1,704,543 1,053,389 704,688 Total 3,225,496 3,070,435 3,131,524 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt as of March 31, 2017 and 2016 consisted of the following (dollars in thousands): March 31, 2017 2016 Revolving credit facility $ 6,629 $ 3,719 Harris seller's note — 546 Equipment lease obligations 321 345 Customer equipment finance notes payable 7 90 Other long-term debt 14 67 Total long-term debt 6,971 4,767 Less current maturities (152 ) (746 ) Long-term debt, less current maturities $ 6,819 $ 4,021 |
Schedule of maturities of long-term debt | As of March 31, 2017 , aggregate maturities of long-term debt were as follows (dollars in thousands): Fiscal 2018 $ 152 Fiscal 2019 6,707 Fiscal 2020 83 Fiscal 2021 29 Fiscal 2022 — Thereafter — $ 6,971 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense (benefit) | The total provision (benefit) for income taxes consists of the following for the fiscal years ending (dollars in thousands): Fiscal Year Ended March 31, 2017 2016 2015 Current $ (261 ) $ 36 $ 49 Deferred — — — $ (261 ) $ 36 $ 49 2017 2016 2015 Federal $ (283 ) $ 15 $ — State 22 21 49 $ (261 ) $ 36 $ 49 |
Reconciliation of the statutory federal income tax rate and the effective income tax rate | A reconciliation of the statutory federal income tax rate and effective income tax rate is as follows: Fiscal Year Ended March 31, 2017 2016 2015 Statutory federal tax rate 34.0 % 34.0 % 34.0 % State taxes, net 3.5 % 2.8 % 3.6 % Federal tax credit — % — % 0.2 % State tax credit — % — % 0.1 % Change in valuation reserve (37.6 )% (29.1 )% (37.0 )% Permanent items (0.5 )% (7.5 )% (0.1 )% Change in tax contingency reserve 1.0 % (0.1 )% — % Federal Refunds 1.4 % — % — % Other, net 0.3 % (0.3 )% (1.0 )% Effective income tax rate 2.1 % (0.2 )% (0.2 )% |
Schedule of deferred tax assets and liabilities | The net deferred tax assets and liabilities reported in the accompanying consolidated financial statements include the following components (dollars in thousands): March 31, 2017 2016 Inventory, accruals and reserves $ 4,016 $ 3,686 Other 54 187 Deferred revenue (141 ) 73 Valuation allowance (3,929 ) (3,946 ) Total net current deferred tax assets and liabilities $ — $ — Federal and state operating loss carry-forwards 23,927 19,727 Tax credit carry-forwards 1,403 1,475 Non-qualified stock options 3,265 3,125 Deferred revenue (51 ) (31 ) Fixed assets (1,360 ) (1,493 ) Intangible assets (1,034 ) (1,297 ) Valuation allowance (26,150 ) (21,506 ) Total net long-term deferred tax assets and liabilities $ — $ — Total net deferred tax assets $ — $ — |
Unrecognized tax benefit activity | Orion had the following unrecognized tax benefit activity (dollars in thousands): Fiscal Year Ended March 31, 2017 2016 2015 Unrecognized tax benefits as of beginning of fiscal year $ 227 $ 212 $ 210 Additions based on tax positions related to the current period positions 2 15 2 Reduction for tax positions of prior years $ (116 ) $ — $ — Unrecognized tax benefits as of end of fiscal year $ 113 $ 227 $ 212 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of annual commitments under non-cancellable operating leases | Total annual commitments under non-cancelable operating leases with terms in excess of one year at March 31, 2017 are as follows (dollars in thousand): Fiscal 2018 $ 654 Fiscal 2019 473 Fiscal 2020 114 $ 1,241 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Shares issued from treasury | Orion had the following shares issued from treasury during fiscal 2017 and fiscal 2016 : As of March 31, 2017 Shares Issued Under ESPP Closing Market Shares Issued Under Loan Dollar Value of Repayment of Quarter Ended March 31, 2017 1,034 $1.98 — $ — $ — Quarter Ended December 31, 2016 840 $2.17 — — — Quarter Ended September 30, 2016 1,511 $1.33 — — — Quarter Ended June 30, 2016 1,771 $1.16 — — — Total 5,156 $1.16 - 2.17 — $ — $ — As of March 31, 2016 Shares Issued Under ESPP Closing Market Shares Issued Under Loan Dollar Value of Repayment of Quarter Ended March 31, 2016 1,435 $1.39 — $ — $ — Quarter Ended December 31, 2015 1,170 $2.17 — — — Quarter Ended September 30, 2015 779 $1.80 — — — Quarter Ended June 30, 2015 541 $2.51 — — — Total 3,925 $1.39 - 2.51 — $ — $ — |
Stock Options, Restricted Sha43
Stock Options, Restricted Shares and Warrants (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation | The following amounts of stock-based compensation were recorded (dollars in thousands): Fiscal Year Ended March 31, 2017 2016 2015 Cost of product revenue $ 30 $ 36 $ 50 General and administrative 1,337 1,148 1,056 Sales and marketing 139 235 360 Research and development 99 43 33 $ 1,605 $ 1,462 $ 1,499 |
Number of shares available for grant | The number of shares available for grant under the plans were as follows: Available at March 31, 2014 1,291,996 Granted stock options — Granted shares (27,931 ) Restricted Shares (410,496 ) Forfeited restricted shares 74,957 Forfeited stock options 150,074 Available at March 31, 2015 1,078,600 Granted stock options — Granted shares (64,960 ) Restricted Shares (795,805 ) Forfeited restricted shares 206,471 Forfeited stock options 363,380 Available at March 31, 2016 787,686 Shares reserved under new plan 1,750,000 Shares canceled from old plan (168,289 ) Granted stock options — Granted shares (58,484 ) Restricted shares (1,132,392 ) Forfeited restricted shares 52,500 Forfeited stock options 67,200 Available at March 31, 2017 1,298,221 |
Summary of outstanding stock options | The following table summarizes information with respect to outstanding stock options: Number of Weighted Weighted Aggregate Intrinsic Outstanding at March 31, 2014 2,716,317 $ 3.43 1.32 Granted — $ — Exercised (139,407 ) $ 2.46 Forfeited (150,074 ) $ 3.13 Outstanding at March 31, 2015 2,426,836 $ 3.50 — Granted — $ — Exercised (46,410 ) $ 2.09 Forfeited (363,380 ) $ 4.68 Outstanding at March 31, 2016 2,017,046 $ 3.32 — Granted — $ — Exercised (80,000 ) $ 2.20 Forfeited (416,093 ) $ 3.41 Outstanding at March 31, 2017 1,520,953 $ 3.36 — $ 53,760 Exercisable at March 31, 2017 1,405,653 $ 49,536 |
Schedule of range of exercise prices | The following table summarizes the range of exercise prices on outstanding stock options at March 31, 2017 : March 31, 2017 Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Vested Weighted Average Exercise Price $1.62 - 2.20 460,584 5.33 $1.90 406,484 $1.89 $2.41 - 2.75 212,640 5.99 2.45 209,440 2.44 $2.86 - 4.28 650,674 2.97 3.39 592,674 3.43 $4.49 - 4.76 25,000 1.44 4.64 25,000 4.64 $5.35 - 5.44 75,204 2.01 5.39 75,204 5.39 $9.00 27,000 0.87 9.00 27,000 9.00 $10.14 - 11.61 69,851 0.98 10.56 69,851 10.56 1,520,953 3.90 $3.36 1,405,653 $3.42 |
Summary of restricted shares granted | During fiscal 2017 , Orion granted restricted shares as follows (which are included in the above stock plan activity tables): Balance at March 31, 2016 1,053,389 Shares issued 1,132,392 Shares vested (375,738 ) Shares forfeited (105,500 ) Shares outstanding at March 31, 2017 1,704,543 Per share price on grant date $1.35-6.80 Compensation expense $ 1,680,362 |
Schedule of unrecognized compensation cost related to non-vested awards | Unrecognized compensation cost related to non-vested common stock-based compensation as of March 31, 2017 is as follows (dollars in thousands): Fiscal 2018 $ 1,189 Fiscal 2019 673 Fiscal 2020 186 Fiscal 2021 46 Fiscal 2022 — Thereafter — $ 2,094 Remaining weighted average expected term 2.2 years |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Revenues Operating (Loss) Profit (dollars in thousands) For the year ended March 31, For the year ended March 31, 2017 2016 2015 2017 2016 2015 Segments: U.S. Markets $ 17,852 $ 38,841 $ 37,778 $ (1,357 ) $ (4,958 ) $ (12,542 ) Engineered Systems 29,501 26,325 33,454 (3,647 ) (6,982 ) (12,431 ) Distribution Services 22,858 2,476 978 (927 ) (632 ) (455 ) Corporate and Other — — — (6,596 ) (7,349 ) (6,508 ) $ 70,211 $ 67,642 $ 72,210 $ (12,527 ) $ (19,921 ) $ (31,936 ) Depreciation and Amortization Capital Expenditures For the year ended March 31, For the year ended March 31, 2017 2016 2015 2017 2016 2015 Segments: U.S. Markets $ 359 $ 1,168 $ 1,711 $ 150 $ 72 $ 626 Engineered Systems 1,249 1,987 1,404 224 43 495 Distribution Services 148 71 32 184 10 40 Corporate and Other 576 939 1,036 102 276 845 $ 2,332 $ 4,165 $ 4,183 $ 660 $ 401 $ 2,006 Total Assets Deferred Revenue March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Segments: U.S. Markets $ 6,698 $ 18,503 $ 141 $ 167 Engineered Systems 18,111 21,885 1,424 1,098 Distribution Services 9,702 1,386 — — Corporate and Other 27,540 29,101 — — $ 62,051 $ 70,875 $ 1,565 $ 1,265 |
Quarterly Financial Data (Una45
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Summary quarterly results for the years ended March 31, 2017 and March 31, 2016 are as follows: Three Months Ended Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Total (in thousands, except per share amounts) Total revenue $ 15,290 $ 20,617 $ 18,670 $ 15,634 $ 70,211 Gross profit $ 912 $ 6,155 $ 6,244 $ 4,026 $ 17,337 Net loss (1) $ (7,292 ) $ (1,086 ) $ (970 ) $ (2,940 ) $ (12,288 ) Basic net loss per share $ (0.26 ) $ (0.04 ) $ (0.03 ) $ (0.11 ) $ (0.44 ) Shares used in basic per share calculation 28,310 28,259 28,172 27,886 28,156 Diluted net loss per share $ (0.26 ) $ (0.04 ) $ (0.03 ) $ (0.11 ) $ (0.44 ) Shares used in diluted per share calculation 28,310 28,259 28,172 27,886 28,156 Three Months Ended Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Total (in thousands, except per share amounts) Total revenue $ 18,576 $ 16,751 $ 15,728 $ 16,587 $ 67,642 Gross profit $ 4,619 $ 4,708 $ 2,913 $ 3,757 $ 15,997 Net loss (2) $ (10,871 ) $ (2,004 ) $ (3,600 ) $ (3,651 ) $ (20,126 ) Basic net loss per share $ (0.39 ) $ (0.07 ) $ (0.13 ) $ (0.13 ) $ (0.73 ) Shares used in basic per share calculation 27,759 27,672 27,598 27,482 27,628 Diluted net loss per share $ (0.39 ) $ (0.07 ) $ (0.13 ) $ (0.13 ) $ (0.73 ) Shares used in diluted per share calculation 27,759 27,672 27,598 27,482 27,628 (1) Includes intangible impairment of $250 and $2,209 related to inventory reserve and other inventory adjustments. (2) Includes $4,409 related to the impairment of goodwill, and $1,614 related to the write-down to fair value of the manufacturing facility, and $1,400 reserve for a loss contingency. |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Accounting Policies [Abstract] | |||
Deferred contract costs | $ 935,000 | $ 37,000 | |
Power purchase agreement product revenue is recognized term | 10 years | ||
Solar power systems completion period minimum | 3 months | ||
Solar power systems completion period maximum | 15 months | ||
Advertising costs | $ 94,000 | 4,000 | $ 149,000 |
Deferred tax assets valuation allowance | 4,630,000 | ||
Tax benefit (expense) | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Incentive Compensation) (Details) - Deferred Bonus - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Discretionary bonus payments, profit achievement before taxes | $ 500 | $ 110 | $ 2,300 |
Discretionary bonus payments, revenue achievement percent (minimum) | 10.00% | 10.00% | |
Discretionary bonus payments, revenue achievement (minimum) | $ 90,400 | ||
Minimum | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Discretionary bonus payments, percentage | 35.00% | 35.00% | 35.00% |
Maximum | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Discretionary bonus payments, percentage | 100.00% | 100.00% | 100.00% |
Summary of Significant Accoun48
Summary of Significant Accounting Policies (Concentration Risk) (Details) - financial_instituion | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Concentration Risk [Line Items] | |||
Number of financial institutions (financial institution) | 2 | ||
Customer Concentration Risk | Sales | Customer One | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | ||
Customer Concentration Risk | Accounts Receivable | Customer One | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.60% | 10.30% |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) | 12 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Accounts receivable, minimum period due | 30 days |
Accounts receivable, maximum period due | 60 days |
(Accounts Receivable and Allowa
(Accounts Receivable and Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 9,315 | $ 11,394 |
Allowance for doubtful accounts | (144) | (505) |
Total net sales-type leases | $ 9,171 | $ 10,889 |
Financing Receivables (Aging An
Financing Receivables (Aging Analysis) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Credit quality of the Company's financing receivables using Aging Analysis | ||
Total gross sales-type leases | $ 9,315 | $ 11,394 |
Allowance | (144) | (505) |
Total net sales-type leases | 9,171 | 10,889 |
Sales-type leases | ||
Credit quality of the Company's financing receivables using Aging Analysis | ||
Lease balances included in consolidated accounts receivable—current | 47 | 308 |
Lease balances included in consolidated accounts receivable—long-term | 5 | 101 |
Total gross sales-type leases | 52 | 409 |
Allowance | 0 | (9) |
Total net sales-type leases | 52 | 400 |
Sales-type leases | Not Past Due | ||
Credit quality of the Company's financing receivables using Aging Analysis | ||
Lease balances included in consolidated accounts receivable—current | 44 | 294 |
Lease balances included in consolidated accounts receivable—long-term | 5 | 101 |
Total gross sales-type leases | 49 | 395 |
Allowance | 0 | 0 |
Total net sales-type leases | 49 | 395 |
Sales-type leases | 1-90 days past due | ||
Credit quality of the Company's financing receivables using Aging Analysis | ||
Lease balances included in consolidated accounts receivable—current | 0 | 4 |
Lease balances included in consolidated accounts receivable—long-term | 0 | 0 |
Total gross sales-type leases | 0 | 4 |
Allowance | 0 | 0 |
Total net sales-type leases | 0 | 4 |
Sales-type leases | Greater than 90 days past due | ||
Credit quality of the Company's financing receivables using Aging Analysis | ||
Lease balances included in consolidated accounts receivable—current | 3 | 10 |
Lease balances included in consolidated accounts receivable—long-term | 0 | 0 |
Total gross sales-type leases | 3 | 10 |
Allowance | 0 | (9) |
Total net sales-type leases | 3 | 1 |
Sales-type leases | Total past due | ||
Credit quality of the Company's financing receivables using Aging Analysis | ||
Lease balances included in consolidated accounts receivable—current | 3 | 14 |
Lease balances included in consolidated accounts receivable—long-term | 0 | 0 |
Total gross sales-type leases | 3 | 14 |
Allowance | 0 | (9) |
Total net sales-type leases | $ 3 | $ 5 |
Financing Receivables (Allowanc
Financing Receivables (Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Provisions charged to expense | $ 132 | $ 575 | $ 285 |
Sales-type leases | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance for doubtful accounts on financing receivables, beginning of period | 9 | 156 | 94 |
Provisions charged to expense | 0 | 30 | 62 |
Write offs and other | 9 | 177 | 0 |
Allowance for doubtful accounts on financing receivables, end of period | $ 0 | $ 9 | $ 156 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Inventory [Line Items] | ||
Raw material and components, cost | $ 8,104 | $ 10,556 |
Raw materials and components, obsolescence reserve | (1,807) | (1,052) |
Raw materials and components | 6,297 | 9,504 |
Work in process, cost | 1,918 | 2,045 |
Work in process, obsolescence reserve | (329) | (119) |
Work in process | 1,589 | 1,926 |
Finished goods, cost | 7,044 | 6,550 |
Finished goods, obsolescence reserve | (1,337) | (956) |
Finished goods | 5,707 | 5,594 |
Total cost | 17,066 | 19,151 |
Total obsolescence reserve | (3,473) | (2,127) |
Total | 13,593 | $ 17,024 |
Increase in obsolescence reserve | 1,346 | |
Inventory Obsolescence Reserve | ||
Inventory [Line Items] | ||
Increase in obsolescence reserve | $ 1,671 | |
Minimum | ||
Inventory [Line Items] | ||
Inventory consideration usage | 9 months | |
Maximum | ||
Inventory [Line Items] | ||
Inventory consideration usage | 24 months |
Prepaid Expenses and Other Cu54
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Unbilled accounts receivable | $ 2,226 | $ 4,307 |
Other prepaid expenses | 651 | 731 |
Total | $ 2,877 | $ 5,038 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) ft² in Thousands | Jun. 30, 2016USD ($)ft² | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) |
Property, Plant and Equipment [Line Items] | |||||
Fixed asset impairment charges | $ 0 | ||||
Impairment charge as a result of purchase and sale agreement | $ 1,614,000 | ||||
Number of reportable segments (segment) | segment | 3 | ||||
Impairment charge | $ 1,030,000 | ||||
Depreciation | $ 1,451,000 | $ 2,950,000 | $ 2,853,000 | ||
Construction in Progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Interest capitalized for construction in progress | $ 0 | $ 0 | |||
Operating Segments | U.S. Markets | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment charge as a result of purchase and sale agreement | $ 689,000 | ||||
Operating Segments | Engineered Systems | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment charge as a result of purchase and sale agreement | 804,000 | ||||
Operating Segments | Distribution Services | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment charge as a result of purchase and sale agreement | $ 121,000 | ||||
Manitowoc Manufacturing and Distribution Facility | |||||
Property, Plant and Equipment [Line Items] | |||||
Gross cash proceeds from sale leaseback agreement | $ 2,600,000 | ||||
Area of leased property (sqft) | ft² | 197 | ||||
Sale leaseback term | 3 years |
Property and Equipment (Summary
Property and Equipment (Summary of Property and Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Property and equipment | ||
Gross property and equipment | $ 33,734 | $ 35,581 |
Less: accumulated depreciation and amortization | (19,948) | (18,577) |
Net property and equipment | 13,786 | 17,004 |
Land and land improvements | ||
Property and equipment | ||
Gross property and equipment | 424 | 421 |
Buildings and building improvements | ||
Property and equipment | ||
Gross property and equipment | 9,245 | 11,849 |
Furniture, fixtures and office equipment | ||
Property and equipment | ||
Gross property and equipment | 7,056 | 7,233 |
Leasehold improvements | ||
Property and equipment | ||
Gross property and equipment | 324 | 148 |
Equipment leased to customers under Power Purchase Agreements | ||
Property and equipment | ||
Gross property and equipment | 4,997 | 4,997 |
Plant equipment | ||
Property and equipment | ||
Gross property and equipment | 11,627 | 10,805 |
Construction in progress | ||
Property and equipment | ||
Gross property and equipment | $ 61 | $ 128 |
Property and Equipment (Equipme
Property and Equipment (Equipment under Capital Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Capital Leased Assets [Line Items] | ||
Equipment | $ 33,734 | $ 35,581 |
Less: accumulated depreciation and amortization | (19,948) | (18,577) |
Net property and equipment | 13,786 | 17,004 |
Assets Held under Capital Leases | ||
Capital Leased Assets [Line Items] | ||
Equipment | 581 | 408 |
Less: accumulated depreciation and amortization | (202) | (65) |
Net property and equipment | $ 379 | $ 343 |
Property and Equipment (Useful
Property and Equipment (Useful Lives) (Details) | 12 Months Ended |
Mar. 31, 2017 | |
Land improvements | Minimum | |
Depreciation using the straight-line method | |
Property, plant and equipment, useful life | 10 years |
Land improvements | Maximum | |
Depreciation using the straight-line method | |
Property, plant and equipment, useful life | 15 years |
Buildings and building improvements | Minimum | |
Depreciation using the straight-line method | |
Property, plant and equipment, useful life | 10 years |
Buildings and building improvements | Maximum | |
Depreciation using the straight-line method | |
Property, plant and equipment, useful life | 39 years |
Furniture, fixtures and office equipment | Minimum | |
Depreciation using the straight-line method | |
Property, plant and equipment, useful life | 2 years |
Furniture, fixtures and office equipment | Maximum | |
Depreciation using the straight-line method | |
Property, plant and equipment, useful life | 10 years |
Equipment leased to customers under Power Purchase Agreements | |
Depreciation using the straight-line method | |
Property, plant and equipment, useful life | 20 years |
Plant equipment | Minimum | |
Depreciation using the straight-line method | |
Property, plant and equipment, useful life | 3 years |
Plant equipment | Maximum | |
Depreciation using the straight-line method | |
Property, plant and equipment, useful life | 10 years |
Goodwill and Other Intangible59
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 0 | $ 0 | $ 0 | $ 4,409,000 |
Goodwill impairment charge | 4,409,000 | |||
Impairment write-off of intangible assets | $ 250,000 | |||
Intangible assets, useful life | 6 years 1 day | |||
Patents | ||||
Segment Reporting Information [Line Items] | ||||
Impairment write-off of intangible assets | $ 0 | $ 78,000 | 120,000 | |
Trade name and trademarks | ||||
Segment Reporting Information [Line Items] | ||||
Impairment write-off of intangible assets | $ 250,000 | |||
U.S. Markets | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 2,371,000 | |||
Goodwill impairment charge | 2,371,000 | |||
Engineered Systems | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | $ 2,038,000 | |||
Goodwill impairment charge | $ 2,038,000 |
Goodwill and Other Intangible60
Goodwill and Other Intangible Assets (Change in Carrying Value of Goodwill) (Details) | 12 Months Ended |
Mar. 31, 2016USD ($) | |
Change in Carrying Value of Goodwill | |
Goodwill, beginning balance | $ 4,409,000 |
Impairments | (4,409,000) |
Goodwill, ending balance | $ 0 |
Goodwill and Other Intangible61
Goodwill and Other Intangible Assets (Useful Lives) (Details) | 12 Months Ended |
Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 6 years 1 day |
Patents | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 10 years |
Patents | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 17 years |
Licenses | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 7 years |
Licenses | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 13 years |
Customer relationships | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 5 years |
Customer relationships | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 8 years |
Developed technology | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 8 years |
Non-competition agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, useful life | 5 years |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 9,031 | $ 8,991 |
Accumulated Amortization | (4,824) | (3,943) |
Intangible Assets, Net | 4,207 | 5,048 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,658 | 2,377 |
Accumulated Amortization | (1,211) | (1,053) |
Intangible Assets, Net | 1,447 | 1,324 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 58 | 58 |
Accumulated Amortization | (58) | (58) |
Intangible Assets, Net | 0 | 0 |
Trade name and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,715 | 1,956 |
Accumulated Amortization | 0 | 0 |
Intangible Assets, Net | 1,715 | 1,956 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,600 | 3,600 |
Accumulated Amortization | (3,054) | (2,512) |
Intangible Assets, Net | 546 | 1,088 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 900 | 900 |
Accumulated Amortization | (426) | (265) |
Intangible Assets, Net | 474 | 635 |
Non-competition agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 100 | 100 |
Accumulated Amortization | (75) | (55) |
Intangible Assets, Net | $ 25 | $ 45 |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets (Future Amortization by Fiscal Year) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Finite-Lived Intangible Assets, Estimated Amortization Expense | |
Fiscal 2,018 | $ 621 |
Fiscal 2,019 | 445 |
Fiscal 2,020 | 359 |
Fiscal 2,021 | 285 |
Fiscal 2,022 | 167 |
Thereafter | 615 |
Total | $ 2,492 |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 881 | $ 1,215 | $ 1,327 |
Cost of Sales | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 158 | 139 | 132 |
Cost of Sales | Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 158 | 139 | 132 |
Operating Expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 723 | 1,076 | 1,195 |
Operating Expenses | Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 542 | 891 | 1,085 |
Operating Expenses | Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 161 | 156 | 90 |
Operating Expenses | Non-competition agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 20 | 20 | 20 |
Operating Expenses | Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 0 | $ 9 | $ 0 |
Other Long-Term Assets (Summary
Other Long-Term Assets (Summary of Other Long-Term Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred financing costs | $ 0 | $ 92 |
Security deposits | 117 | 87 |
Other | 53 | 6 |
Other Long-Term Assets | $ 170 | $ 185 |
Other Long-Term Assets (Narrati
Other Long-Term Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Debt useful life, minimum | 1 year | ||
Debt useful life, maximum | 3 years | ||
Interest expense | $ 110 | $ 114 | $ 156 |
Accrued Expenses and Other (Acc
Accrued Expenses and Other (Accrued Expenses and Other) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Compensation and benefits | $ 2,431 | $ 1,794 |
Sales tax | 213 | 913 |
Contract costs | 223 | 586 |
Legal and professional fees | 2,262 | 2,348 |
Warranty | 449 | 554 |
Other accruals | 410 | 391 |
Total | $ 5,988 | 6,586 |
Loss contingency | $ 1,400 |
Accrued Expenses and Other (Nar
Accrued Expenses and Other (Narrative) (Details) | 12 Months Ended |
Mar. 31, 2017 | |
Minimum | |
Segment Reporting Information [Line Items] | |
Limited warranty term | 1 year |
Maximum | |
Segment Reporting Information [Line Items] | |
Limited warranty term | 10 years |
Accrued Expenses and Other (War
Accrued Expenses and Other (Warranty Accrual) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning of year | $ 864 | $ 1,015 |
Provision to product cost of revenue | (102) | 159 |
Charges | (3) | (310) |
End of year | $ 759 | $ 864 |
Net Income (Loss) per Common 70
Net Income (Loss) per Common Share (Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Net loss | $ (7,292) | $ (1,086) | $ (970) | $ (2,940) | $ (10,871) | $ (2,004) | $ (3,600) | $ (3,651) | $ (12,288) | $ (20,126) | $ (32,061) |
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | |||||||||||
Weighted-average common shares outstanding (shares) | 28,310,000 | 28,259,000 | 28,172,000 | 27,886,000 | 27,759,000 | 27,672,000 | 27,598,000 | 27,482,000 | 28,156,382 | 27,627,693 | 22,353,419 |
Weighted-average common shares and share equivalents outstanding (shares) | 28,310,000 | 28,259,000 | 28,172,000 | 27,886,000 | 27,759,000 | 27,672,000 | 27,598,000 | 27,482,000 | 28,156,382 | 27,627,693 | 22,353,419 |
Net loss per common share: | |||||||||||
Basic (usd per share) | $ (0.26) | $ (0.04) | $ (0.03) | $ (0.11) | $ (0.39) | $ (0.07) | $ (0.13) | $ (0.13) | $ (0.44) | $ (0.73) | $ (1.43) |
Diluted (usd per share) | $ (0.26) | $ (0.04) | $ (0.03) | $ (0.11) | $ (0.39) | $ (0.07) | $ (0.13) | $ (0.13) | $ (0.44) | $ (0.73) | $ (1.43) |
Net Income (Loss) per Common 71
Net Income (Loss) per Common Share (Dilutive Securities) (Details) - shares | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Number of potentially dilutive securities | |||
Number of potentially dilutive securities (shares) | 3,225,496 | 3,070,435 | 3,131,524 |
Common stock options | |||
Number of potentially dilutive securities | |||
Number of potentially dilutive securities (shares) | 1,520,953 | 2,017,046 | 2,426,836 |
Restricted shares | |||
Number of potentially dilutive securities | |||
Number of potentially dilutive securities (shares) | 1,704,543 | 1,053,389 | 704,688 |
Acquisition (Details)
Acquisition (Details) - Harris - USD ($) $ / shares in Units, $ in Thousands | Feb. 13, 2015 | Jan. 02, 2014 | Mar. 31, 2015 | Jan. 02, 2015 | Oct. 21, 2013 | Jul. 01, 2013 |
Business Acquisition [Line Items] | ||||||
Purchase agreement, value | $ 10,801 | |||||
Purchase agreement, potential adjustment, amount | 200 | |||||
Contingent consideration, recorded liability | $ 612 | |||||
Fixed future consideration | $ 1,371 | |||||
Business acquisition, common stock issued | $ 571 | |||||
Acquisition consideration (shares) | 83,943 | |||||
Common stock fair value (usd per share) | $ 3.80 | |||||
Future cash consideration | $ 800 | |||||
Acquisition consideration, cash | $ 800 | |||||
Contingent consideration, reduction in liability during period | $ 147 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Entity that Current Director Owns Minority Interest and Serves as Board of Directors Chairman | |||
Related Party Transaction | |||
Purchased goods and services | $ 41 | $ 21 | $ 38 |
Immediate family member of management | Services purchased from an Immediate family member of a named executive officer | |||
Related Party Transaction | |||
Purchased goods and services | $ 43 |
Long-Term Debt (Summary of Debt
Long-Term Debt (Summary of Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Long-term debt | ||
Long-term debt | $ 6,971 | $ 4,767 |
Current maturities | (152) | (746) |
Long-term debt, less current maturities | 6,819 | 4,021 |
Revolving credit facility | ||
Long-term debt | ||
Long-term debt | 6,629 | 3,719 |
Harris seller's note | ||
Long-term debt | ||
Long-term debt | 0 | 546 |
Equipment lease obligations | ||
Long-term debt | ||
Long-term debt | 321 | 345 |
Customer equipment finance notes payable | ||
Long-term debt | ||
Long-term debt | 7 | 90 |
Other long-term debt | ||
Long-term debt | ||
Long-term debt | $ 14 | $ 67 |
Long-Term Debt (Revolving Credi
Long-Term Debt (Revolving Credit Facility) (Details) | Feb. 06, 2015USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) |
Debt (Textual) [Abstract] | |||
Outstanding letters of credit totaling | $ 0 | ||
Revolving credit facility | 6,629,000 | $ 3,719,000 | |
Wells Fargo Bank, National Association | Credit Agreement | Revolving credit facility | |||
Debt (Textual) [Abstract] | |||
Current borrowings under credit facility | 6,832,000 | ||
Maximum borrowing capacity under credit facility | $ 20,000,000 | 15,000,000 | |
Revolving credit facility | 6,629,000 | ||
Additional borrowing capacity | 203,000 | ||
Potential maximum borrowing capacity | $ 20,000,000 | ||
Minimum indebtedness ratio | 1.10 | ||
Interest charge | $ 130,000 | ||
Effective interest rate, percentage | 4.15% | ||
Commitment fee percentage | 0.25% | ||
Wells Fargo Bank, National Association | Credit Agreement | Revolving credit facility | London Interbank Offered Rate (LIBOR) | |||
Debt (Textual) [Abstract] | |||
Spread on basis rate (percentage) | 3.00% | ||
Wells Fargo Bank, National Association | Credit Agreement | Letter of Credit | |||
Debt (Textual) [Abstract] | |||
Maximum borrowing capacity under credit facility | $ 2,000,000 | ||
Commitment fee percentage | 3.00% |
Long-Term Debt (All Other Debt)
Long-Term Debt (All Other Debt) (Details) | 1 Months Ended | |||||||
Jul. 31, 2012USD ($) | Sep. 30, 2010USD ($) | Mar. 31, 2017contract | Mar. 31, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Jul. 01, 2013USD ($) | Jun. 30, 2011USD ($) | |
Equipment lease obligations | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate, percentage | 5.94% | 3.60% | ||||||
Principal amount of debt | $ 19,000 | $ 377,000 | ||||||
Value of buyout option | $ 1 | $ 1 | ||||||
Harris seller's note | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 3,124,000 | |||||||
Stated interest rate, percentage | 4.00% | |||||||
Secured Debt | December 2014 OTA Finance Program | De Lage Landen Financial Services, Inc. | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate, percentage | 8.36% | |||||||
Principal amount of secured debt | $ 446,000 | |||||||
Number of individual OTA customer contracts (contract) | contract | 25 | |||||||
June 2011 OTA Finance Program | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 2,831,000 | |||||||
Stated interest rate, percentage | 7.85% | |||||||
Number of supporting individual OTA customer contracts (contract) | contract | 40 | |||||||
Agreement with Wisconsin Department of Commerce | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 260,000 | |||||||
Stated interest rate, percentage | 2.00% | |||||||
Period of time without interest accruing or principal payments due | 2 years | |||||||
Monthly principal and interest payment | $ 4,600 |
Long-Term Debt (Aggregate Matur
Long-Term Debt (Aggregate Maturities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Debt Disclosure [Abstract] | ||
Fiscal 2,018 | $ 152 | |
Fiscal 2,019 | 6,707 | |
Fiscal 2,020 | 83 | |
Fiscal 2,021 | 29 | |
Fiscal 2,022 | 0 | |
Thereafter | 0 | |
Long-term debt | $ 6,971 | $ 4,767 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense or Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current | $ (261) | $ 36 | $ 49 |
Deferred | 0 | 0 | 0 |
Federal | (283) | 15 | 0 |
State | 22 | 21 | 49 |
Total provision (benefit) for income taxes | $ (261) | $ 36 | $ 49 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of tax rates) (Details) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 34.00% | 34.00% | 34.00% |
State taxes, net | 3.50% | 2.80% | 3.60% |
Federal tax credit | (0.00%) | (0.00%) | 0.20% |
State tax credit | (0.00%) | (0.00%) | 0.10% |
Change in valuation reserve | (37.60%) | (29.10%) | (37.00%) |
Permanent items | (0.50%) | (7.50%) | (0.10%) |
Change in tax contingency reserve | 1.00% | (0.10%) | 0.00% |
Federal Refunds | 1.40% | 0.00% | 0.00% |
Other, net | 0.30% | (0.30%) | (1.00%) |
Effective income tax rate | 2.10% | (0.20%) | (0.20%) |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Inventory, accruals and reserves | $ 4,016 | $ 3,686 |
Other | 54 | 187 |
Deferred revenue | (141) | 73 |
Valuation allowance | (3,929) | (3,946) |
Total net current deferred tax assets and liabilities | 0 | 0 |
Federal and state operating loss carry-forwards | 23,927 | 19,727 |
Tax credit carry-forwards | 1,403 | 1,475 |
Non-qualified stock options | 3,265 | 3,125 |
Deferred revenue | (51) | (31) |
Fixed assets | (1,360) | (1,493) |
Intangible assets | (1,034) | (1,297) |
Valuation allowance | (26,150) | (21,506) |
Total net long-term deferred tax assets and liabilities | 0 | 0 |
Total net deferred tax assets | $ 0 | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Excess tax benefits from stock-based compensation | $ 0 | $ 0 | $ 0 | |
Valuation allowance | 30,078,000 | |||
Increase in valuation allowance | 4,627,000 | 5,740,000 | ||
Unrecognized tax benefits | $ 113,000 | $ 227,000 | $ 212,000 | $ 210,000 |
Minimum | ||||
Operating Loss Carryforwards [Line Items] | ||||
Examination period for state income tax returns | 3 years | |||
Maximum | ||||
Operating Loss Carryforwards [Line Items] | ||||
Examination period for state income tax returns | 5 years | |||
Domestic Country | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 65,746,000 | |||
Exercise of NQSOs | 2,977,000 | |||
Tax credit carryforwards | 1,403,000 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 56,231,000 | |||
Exercise of NQSOs | 3,324,000 | |||
Tax credit carryforwards | 724,000 | |||
State and Local Jurisdiction | Wisconsin Department of Revenue | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax settlement | $ 460,000 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefit Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized tax benefits as of beginning of fiscal year | $ 227 | $ 212 | $ 210 |
Additions based on tax positions related to the current period positions | 2 | 15 | 2 |
Reduction for tax positions of prior years | (116) | 0 | 0 |
Unrecognized tax benefits as of end of fiscal year | $ 113 | $ 227 | $ 212 |
Commitments and Contingencies83
Commitments and Contingencies (Narrative) (Details) ft² in Thousands | Mar. 31, 2017USD ($) | Jun. 30, 2016USD ($)ft² | Mar. 31, 2016USD ($) | Mar. 01, 2016 | Nov. 04, 2014claim | Mar. 31, 2017USD ($)extension_option | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) |
Long-term Purchase Commitment [Line Items] | ||||||||
Rent expense under operating leases | $ 854,000 | $ 502,000 | $ 398,000 | |||||
Initial lease term | 24 months | |||||||
Number of extension options (extension option) | extension_option | 3 | |||||||
Extended lease term | 12 months | |||||||
Discretionary company contributions to retirement savings plan | $ 9,000 | $ 10,000 | $ 23,000 | |||||
Number of claims dismissed (claim) | claim | 6 | |||||||
State and Local Jurisdiction | Wisconsin Department of Revenue | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Income tax settlement | $ 460,000 | 460,000 | ||||||
Inventories | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Purchase commitments | 4,218,000 | 4,218,000 | ||||||
General and administrative | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Monthly rental payment receivable | $ 21,000 | |||||||
Agreement with Tramontina U.S. Cookware, Inc. | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Gross cash proceeds from sale leaseback agreement | $ 2,600,000 | |||||||
Area of leased property (sqft) | ft² | 197 | |||||||
Sale leaseback term | 3 years | |||||||
Rent expense per square foot | $ 2 | |||||||
Monthly rental payments | $ 38,000 |
Commitments and Contingencies84
Commitments and Contingencies (Schedule of Annual Commitments under Non-Cancelable Operating Agreements) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Fiscal 2,018 | $ 654 |
Fiscal 2,019 | 473 |
Fiscal 2,020 | 114 |
Total future payments due | $ 1,241 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) | Feb. 20, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2017 | Apr. 30, 2012 | Nov. 30, 2011 | Oct. 31, 2011 | Aug. 31, 2010 | Feb. 15, 2009 |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Issuance of common stock for cash, net of issuance costs (shares) | 5,462,500 | |||||||||
Offering price, per share (USD per share) | $ 3.50 | |||||||||
Issuance of common stock for cash, net of issuance costs | $ 17,465,000 | $ 0 | $ (2,000) | $ 17,465,000 | ||||||
Common stock purchased per right (shares) | 1 | |||||||||
Right issue share price (USD per share) | $ 30 | |||||||||
Minimum subscription percentage | 20.00% | |||||||||
Number of business days to trigger a distribution date | 10 days | |||||||||
Share acquisition percentage | 50.00% | |||||||||
Prior to a person becoming an acquiring person, the board of directors of the company's redemption rate (USD per share) | $ 0.001 | |||||||||
Employee stock purchase plan, shares authorized (shares) | 2,500,000 | |||||||||
Maximum amount limit for ESPP per employee | $ 20,000 | $ 20,000 | ||||||||
Purchase price to market price matching percentage | 100.00% | 100.00% | ||||||||
Sec 16 Officers limit percentage on ESPP based on annual income | 20.00% | 20.00% | ||||||||
Sec 16 officers maximum limit on ESPP in amounts | $ 250,000 | $ 250,000 | ||||||||
Period of interest on loans | 10 years | |||||||||
Shareholder notes receivable | $ 4,000 | $ 4,000 | $ 4,000 | |||||||
October 2,011 | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchase program, authorized amount | $ 7,500,000 | $ 2,500,000 | $ 1,000,000 | |||||||
Treasury stock purchase (shares) | 3,022,349 | |||||||||
Repurchase of common stock into treasury | $ 6,791,000 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule of ESPP Activity) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |
Shares issued from treasury | ||||||||||
Shares Issued Under ESPP Plan (shares) | 1,034 | 840 | 1,511 | 1,771 | 1,435 | 1,170 | 779 | 541 | 5,156 | 3,925 |
Closing Market Price (usd per share) | $ 1.98 | $ 2.17 | $ 1.33 | $ 1.16 | $ 1.39 | $ 2.17 | $ 1.80 | $ 2.51 | ||
Shares Issued Under Loan Program (shares) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Dollar Value of Loans Issued | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Repayment of Loans | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Minimum | ||||||||||
Shares issued from treasury | ||||||||||
Closing Market Price (usd per share) | $ 1.16 | $ 1.39 | ||||||||
Maximum | ||||||||||
Shares issued from treasury | ||||||||||
Closing Market Price (usd per share) | $ 2.17 | $ 2.51 |
Stock Options, Restricted Sha87
Stock Options, Restricted Shares and Warrants (Narrative) (Details) | Aug. 05, 2016directorshares | Jun. 07, 2016shares | Mar. 31, 2017$ / sharesshares | Mar. 31, 2016$ / sharesshares | Mar. 31, 2015$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reserved shares for issuance to key employees (shares) | shares | 1,750,000 | ||||
Grant of shares to non-employees and consultants (shares) | shares | 2,500 | ||||
Common stock closing price (usd per share) | $ 1.98 | ||||
Value of shares issued to consultants (usd per share) | $ 2 | ||||
Warrants exercised (shares) | shares | 38,980 | ||||
Warrants exercised (usd per share) | $ 2.25 | ||||
Common Stock | Executive | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued and sold (in shares) | shares | 57,065 | ||||
Common Stock | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock issued and sold (in shares) | shares | 63,381 | ||||
Number of recently retired members of the board of directors (in director) | director | 3 | ||||
Restricted shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares granted (shares) | shares | 1,132,392 | 795,805 | 410,496 | ||
Weighted average grant-date fair value (usd per share) | $ 1.43 | ||||
Restricted shares | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Per share price on grant date (USD per share) | 1.35 | $ 1.34 | $ 4.16 | ||
Weighted average grant-date fair value (usd per share) | 1.35 | ||||
Restricted shares | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Per share price on grant date (USD per share) | 2.22 | $ 2.62 | $ 7.23 | ||
Weighted average grant-date fair value (usd per share) | $ 6.80 | ||||
Non-Employee Director | 2004 Stock and Incentive Awards Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant of shares to non-employees and consultants (shares) | shares | 53,501 | 35,290 | 27,931 | ||
Non-Employee Director | Minimum | 2004 Stock and Incentive Awards Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock closing price (usd per share) | $ 1.38 | $ 1.2 | $ 4.2 | ||
Non-Employee Director | Maximum | 2004 Stock and Incentive Awards Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock closing price (usd per share) | $ 1.85 | $ 2.62 | $ 5.23 |
Stock Options, Restricted Sha88
Stock Options, Restricted Shares and Warrants (Stock-based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Stock-based compensation | |||
Compensation expense | $ 1,605 | $ 1,462 | $ 1,499 |
Cost of product revenue | |||
Stock-based compensation | |||
Compensation expense | 30 | 36 | 50 |
General and administrative | |||
Stock-based compensation | |||
Compensation expense | 1,337 | 1,148 | 1,056 |
Sales and marketing | |||
Stock-based compensation | |||
Compensation expense | 139 | 235 | 360 |
Research and development | |||
Stock-based compensation | |||
Compensation expense | $ 99 | $ 43 | $ 33 |
Stock Options, Restricted Sha89
Stock Options, Restricted Shares and Warrants (Schedule of Shares Available for Grant) (Details) - shares | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward] | |||
Number of shares available for grant, beginning of period (shares) | 787,686 | 1,078,600 | 1,291,996 |
Shares reserved under new plan (shares) | 1,750,000 | ||
Shares canceled from old plan (shares) | (168,289) | ||
Granted shares (shares) | (58,484) | (64,960) | (27,931) |
Number of shares available for grant, end of period (shares) | 1,298,221 | 787,686 | 1,078,600 |
Common stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward] | |||
Granted stock options (shares) | 0 | 0 | 0 |
Forfeited stock options (shares) | 67,200 | 363,380 | 150,074 |
Restricted shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward] | |||
Restricted shares (shares) | (1,132,392) | (795,805) | (410,496) |
Forfeited stock options (shares) | 52,500 | 206,471 | 74,957 |
Stock Options, Restricted Sha90
Stock Options, Restricted Shares and Warrants (Summary of Outstanding Stock Options) (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Number of Shares | ||||
Beginning Balance (shares) | 2,017,046 | 2,426,836 | 2,716,317 | |
Granted (shares) | 0 | 0 | 0 | |
Exercised (shares) | (80,000) | (46,410) | (139,407) | |
Forfeited (shares) | (416,093) | (363,380) | (150,074) | |
Ending Balance (shares) | 1,520,953 | 2,017,046 | 2,426,836 | 2,716,317 |
Number of Shares, Exercisable (shares) | 1,405,653 | |||
Weighted Average Exercise Price | ||||
Beginning Balance (in dollars per share) | $ 3.32 | $ 3.50 | $ 3.43 | |
Granted Stock Options (in dollars per share) | 0 | 0 | 0 | |
Exercised (in dollars per share) | 2.20 | 2.09 | 2.46 | |
Forfeited (in dollars per share) | 3.41 | 4.68 | 3.13 | |
Ending Balance (in dollars per share) | 3.36 | 3.32 | 3.50 | $ 3.43 |
Weighted Average Fair Value of Options Granted (usd per share) | $ 0 | $ 0 | $ 0 | $ 1.32 |
Aggregate Intrinsic Value, Outstanding | $ 53,760 | |||
Aggregate Intrinsic Value, Exercisable | $ 49,536 |
Stock Options, Restricted Sha91
Stock Options, Restricted Shares and Warrants (Summary of Exercise Price Range) (Details) - $ / shares | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Outstanding (shares) | 1,520,953 | 2,017,046 | 2,426,836 | 2,716,317 |
Weighted Average Remaining Contractual Life (Years) | 3 years 10 months 24 days | |||
Weighted Average Exercise Price (usd per share) | $ 3.36 | $ 3.32 | $ 3.50 | $ 3.43 |
Vested (shares) | 1,405,653 | |||
Weighted Average Exercise Price (usd per share) | $ 3.42 | |||
$1.62 - 2.20 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price Range, Lower Range Limit (usd per share) | 1.62 | |||
Exercise Price Range, Upper Range Limit (usd per share) | $ 2.20 | |||
Outstanding (shares) | 460,584 | |||
Weighted Average Remaining Contractual Life (Years) | 5 years 3 months 29 days | |||
Weighted Average Exercise Price (usd per share) | $ 1.90 | |||
Vested (shares) | 406,484 | |||
Weighted Average Exercise Price (usd per share) | $ 1.89 | |||
$2.41 - 2.75 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price Range, Lower Range Limit (usd per share) | 2.41 | |||
Exercise Price Range, Upper Range Limit (usd per share) | $ 2.75 | |||
Outstanding (shares) | 212,640 | |||
Weighted Average Remaining Contractual Life (Years) | 5 years 11 months 27 days | |||
Weighted Average Exercise Price (usd per share) | $ 2.45 | |||
Vested (shares) | 209,440 | |||
Weighted Average Exercise Price (usd per share) | $ 2.44 | |||
$2.86 - 4.28 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price Range, Lower Range Limit (usd per share) | 2.86 | |||
Exercise Price Range, Upper Range Limit (usd per share) | $ 4.28 | |||
Outstanding (shares) | 650,674 | |||
Weighted Average Remaining Contractual Life (Years) | 2 years 11 months 19 days | |||
Weighted Average Exercise Price (usd per share) | $ 3.39 | |||
Vested (shares) | 592,674 | |||
Weighted Average Exercise Price (usd per share) | $ 3.43 | |||
$4.49 - 4.76 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price Range, Lower Range Limit (usd per share) | 4.49 | |||
Exercise Price Range, Upper Range Limit (usd per share) | $ 4.76 | |||
Outstanding (shares) | 25,000 | |||
Weighted Average Remaining Contractual Life (Years) | 1 year 5 months 9 days | |||
Weighted Average Exercise Price (usd per share) | $ 4.64 | |||
Vested (shares) | 25,000 | |||
Weighted Average Exercise Price (usd per share) | $ 4.64 | |||
$5.35 - 5.44 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price Range, Lower Range Limit (usd per share) | 5.35 | |||
Exercise Price Range, Upper Range Limit (usd per share) | $ 5.44 | |||
Outstanding (shares) | 75,204 | |||
Weighted Average Remaining Contractual Life (Years) | 2 years 3 days | |||
Weighted Average Exercise Price (usd per share) | $ 5.39 | |||
Vested (shares) | 75,204 | |||
Weighted Average Exercise Price (usd per share) | $ 5.39 | |||
$ 9 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price Range, Lower Range Limit (usd per share) | $ 9 | |||
Outstanding (shares) | 27,000 | |||
Weighted Average Remaining Contractual Life (Years) | 10 months 13 days | |||
Weighted Average Exercise Price (usd per share) | $ 9 | |||
Vested (shares) | 27,000 | |||
Weighted Average Exercise Price (usd per share) | $ 9 | |||
$10.14 - 11.61 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Exercise Price Range, Lower Range Limit (usd per share) | 10.14 | |||
Exercise Price Range, Upper Range Limit (usd per share) | $ 11.61 | |||
Outstanding (shares) | 69,851 | |||
Weighted Average Remaining Contractual Life (Years) | 11 months 23 days | |||
Weighted Average Exercise Price (usd per share) | $ 10.56 | |||
Vested (shares) | 69,851 | |||
Weighted Average Exercise Price (usd per share) | $ 10.56 |
Stock Options, Restricted Sha92
Stock Options, Restricted Shares and Warrants (Schedule of Restricted Shares) (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Compensation expense | $ 1,605,000 | $ 1,462,000 | $ 1,499,000 |
Restricted shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Shares outstanding, beginning of the period (shares) | 1,053,389 | ||
Shares issued (shares) | 1,132,392 | ||
Shares vested (shares) | (375,738) | ||
Shares forfeited (shares) | (105,500) | ||
Shares outstanding, end of the period (shares) | 1,704,543 | 1,053,389 | |
Per share price on grant date (usd per share) | $ 1.43 | ||
Compensation expense | $ 1,680,362 | ||
Restricted shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Per share price on grant date (usd per share) | $ 1.35 | ||
Restricted shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Per share price on grant date (usd per share) | $ 6.80 |
Stock Options, Restricted Sha93
Stock Options, Restricted Shares and Warrants (Summary of Unrecognized Compensation Cost) (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2017USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Fiscal 2,018 | $ 1,189 |
Fiscal 2,019 | 673 |
Fiscal 2,020 | 186 |
Fiscal 2,021 | 46 |
Fiscal 2,022 | 0 |
Thereafter | 0 |
Total compensation cost | $ 2,094 |
Remaining weighted average expected term | 2 years 2 months |
Segment Data (Reconciliation of
Segment Data (Reconciliation of Segment Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Corporate and Other | |||||||||||
Revenues | $ 15,290 | $ 20,617 | $ 18,670 | $ 15,634 | $ 18,576 | $ 16,751 | $ 15,728 | $ 16,587 | $ 70,211 | $ 67,642 | $ 72,210 |
Operating (Loss) Profit | (12,527) | (19,921) | (31,936) | ||||||||
Depreciation and Amortization | 2,332 | 4,165 | 4,183 | ||||||||
Capital Expenditures | 660 | 401 | 2,006 | ||||||||
U.S. Markets | |||||||||||
Corporate and Other | |||||||||||
Revenues | 17,852 | 38,841 | 37,778 | ||||||||
Operating (Loss) Profit | (1,357) | (4,958) | (12,542) | ||||||||
Depreciation and Amortization | 359 | 1,168 | 1,711 | ||||||||
Capital Expenditures | 150 | 72 | 626 | ||||||||
Engineered Systems | |||||||||||
Corporate and Other | |||||||||||
Revenues | 29,501 | 26,325 | 33,454 | ||||||||
Operating (Loss) Profit | (3,647) | (6,982) | (12,431) | ||||||||
Depreciation and Amortization | 1,249 | 1,987 | 1,404 | ||||||||
Capital Expenditures | 224 | 43 | 495 | ||||||||
Distribution Services | |||||||||||
Corporate and Other | |||||||||||
Revenues | 22,858 | 2,476 | 978 | ||||||||
Operating (Loss) Profit | (927) | (632) | (455) | ||||||||
Depreciation and Amortization | 148 | 71 | 32 | ||||||||
Capital Expenditures | 184 | 10 | 40 | ||||||||
Corporate and Other | |||||||||||
Corporate and Other | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating (Loss) Profit | (6,596) | (7,349) | (6,508) | ||||||||
Depreciation and Amortization | 576 | 939 | 1,036 | ||||||||
Capital Expenditures | $ 102 | $ 276 | $ 845 |
Segment Data (Reconciliation 95
Segment Data (Reconciliation of Segment Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Corporate and Other | ||
Total Assets | $ 62,051 | $ 70,875 |
Deferred Revenue | 1,565 | 1,265 |
U.S. Markets | ||
Corporate and Other | ||
Total Assets | 6,698 | 18,503 |
Deferred Revenue | 141 | 167 |
Engineered Systems | ||
Corporate and Other | ||
Total Assets | 18,111 | 21,885 |
Deferred Revenue | 1,424 | 1,098 |
Distribution Services | ||
Corporate and Other | ||
Total Assets | 9,702 | 1,386 |
Deferred Revenue | 0 | 0 |
Corporate and Other | ||
Corporate and Other | ||
Total Assets | 27,540 | 29,101 |
Deferred Revenue | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Severance and other related costs $ in Thousands | May 25, 2017USD ($) |
Minimum | |
Subsequent Event [Line Items] | |
Estimated accrual for restructuring of management team | $ 1,500 |
Maximum | |
Subsequent Event [Line Items] | |
Estimated accrual for restructuring of management team | $ 2,000 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Total revenue | $ 15,290 | $ 20,617 | $ 18,670 | $ 15,634 | $ 18,576 | $ 16,751 | $ 15,728 | $ 16,587 | $ 70,211 | $ 67,642 | $ 72,210 |
Gross profit | 912 | 6,155 | 6,244 | 4,026 | 4,619 | 4,708 | 2,913 | 3,757 | 17,337 | 15,997 | (1,137) |
Net loss | $ (7,292) | $ (1,086) | $ (970) | $ (2,940) | $ (10,871) | $ (2,004) | $ (3,600) | $ (3,651) | $ (12,288) | $ (20,126) | $ (32,061) |
Basic net income per share (in usd per share) | $ (0.26) | $ (0.04) | $ (0.03) | $ (0.11) | $ (0.39) | $ (0.07) | $ (0.13) | $ (0.13) | $ (0.44) | $ (0.73) | $ (1.43) |
Shares used in basic per share calculation | 28,310,000 | 28,259,000 | 28,172,000 | 27,886,000 | 27,759,000 | 27,672,000 | 27,598,000 | 27,482,000 | 28,156,382 | 27,627,693 | 22,353,419 |
Diluted net income per share (in usd per share) | $ (0.26) | $ (0.04) | $ (0.03) | $ (0.11) | $ (0.39) | $ (0.07) | $ (0.13) | $ (0.13) | $ (0.44) | $ (0.73) | $ (1.43) |
Shares used in diluted per share calculation | 28,310,000 | 28,259,000 | 28,172,000 | 27,886,000 | 27,759,000 | 27,672,000 | 27,598,000 | 27,482,000 | 28,156,382 | 27,627,693 | 22,353,419 |
Impairment write-off of intangible assets | $ 250 | ||||||||||
Inventory reserve and other adjustments | 2,209 | ||||||||||
Goodwill impairment charge | $ 4,409 | ||||||||||
Impairment related to write-down to fair value of manufacturing facility | $ 1,614 | ||||||||||
Reserve for loss contingency | $ 1,400 |
Schedule II Valuation and Qua98
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for Doubtful Accounts | |||
SCHEDULE II VALUATION and QUALIFYING ACCOUNTS | |||
Balance at beginning of period | $ 505 | $ 458 | $ 384 |
Provisions charged to expense | 132 | 575 | 285 |
Write offs and other | 493 | 528 | 211 |
Balance at end of period | 144 | 505 | 458 |
Inventory Obsolescence Reserve | |||
SCHEDULE II VALUATION and QUALIFYING ACCOUNTS | |||
Balance at beginning of period | 2,127 | 1,619 | 2,527 |
Provisions charged to expense | 2,212 | 509 | 10,505 |
Write offs and other | 866 | 1 | 11,413 |
Balance at end of period | $ 3,473 | $ 2,127 | $ 1,619 |