Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Sep. 30, 2013 | Nov. 14, 2013 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'MSN | ' |
Entity Registrant Name | 'EMERSON RADIO CORP | ' |
Entity Central Index Key | '0000032621 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 27,129,832 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Revenues: | ' | ' | ' | ' |
Net product sales | $17,258 | $32,299 | $40,739 | $77,175 |
Licensing revenue | 1,080 | 2,416 | 2,251 | 3,551 |
Net revenues | 18,338 | 34,715 | 42,990 | 80,726 |
Costs and expenses: | ' | ' | ' | ' |
Cost of sales | 15,635 | 29,102 | 36,619 | 68,275 |
Other operating costs and expenses | 171 | 385 | 322 | 793 |
Selling, general and administrative expenses | 2,325 | 1,737 | 4,513 | 3,745 |
Impairment of trademark | ' | 1,326 | ' | 1,326 |
Total costs and expenses | 18,131 | 32,550 | 41,454 | 74,139 |
Operating income | 207 | 2,165 | 1,536 | 6,587 |
Other income: | ' | ' | ' | ' |
Interest income, net | 121 | 67 | 343 | 98 |
Income before income taxes | 328 | 2,232 | 1,879 | 6,685 |
(Benefit) provision for income taxes | -60 | 285 | 122 | 898 |
Net income | $388 | $1,947 | $1,757 | $5,787 |
Net income per share: | ' | ' | ' | ' |
Basic | $0.01 | $0.07 | $0.06 | $0.21 |
Diluted | $0.01 | $0.07 | $0.06 | $0.21 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic | 27,130 | 27,130 | 27,130 | 27,130 |
Diluted | 27,130 | 27,130 | 27,130 | 27,130 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $388 | $1,947 | $1,757 | $5,787 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Foreign currency translation adj. | ' | ' | ' | 427 |
Comprehensive income | $388 | $1,947 | $1,757 | $6,214 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $52,108 | $21,412 |
Restricted cash | 73 | 70 |
Short term investments | 15,155 | 45,235 |
Accounts receivable, net | 5,249 | 7,883 |
Other receivables | 231 | 969 |
Due from affiliates | ' | 1 |
Inventory | 7,299 | 3,454 |
Prepaid expenses and other current assets | 2,833 | 1,873 |
Deferred tax assets | 1,582 | 1,685 |
Total current assets | 84,530 | 82,582 |
Property, plant and equipment, net | 229 | 258 |
Trademarks, net | 219 | 219 |
Deferred tax assets | 1,113 | 1,121 |
Other assets | 43 | 104 |
Total assets | 86,134 | 84,284 |
Current liabilities: | ' | ' |
Current maturities of long-term borrowings | 43 | 43 |
Accounts payable and other current liabilities | 8,347 | 7,790 |
Accrued sales returns | 1,077 | 965 |
Income taxes payable | 711 | 1,281 |
Total current liabilities | 10,178 | 10,079 |
Long-term borrowings | 15 | 30 |
Deferred tax liabilities | 203 | 194 |
Total liabilities | 10,396 | 10,303 |
Shareholders' equity: | ' | ' |
Preferred shares - $.01 par value, 10,000,000 shares authorized at September 30, 2013 and March 31, 2013, respectively; 3,677 shares issued and outstanding at September 30, 2013 and March 31, 2013, respectively; liquidation preference of $3,677,000 at September 30, 2013 and March 31, 2013, respectively | 3,310 | 3,310 |
Common shares - $.01 par value, 75,000,000 shares authorized, 52,965,797 shares issued at September 30, 2013 and March 31, 2013, respectively; 27,129,832 shares outstanding at September 30, 2013 and March 31, 2013, respectively | 529 | 529 |
Additional paid-in capital | 98,785 | 98,785 |
Accumulated deficit | -2,662 | -4,419 |
Treasury stock, at cost, 25,835,965 shares | -24,224 | -24,224 |
Total shareholders' equity | 75,738 | 73,981 |
Total liabilities and shareholders' equity | $86,134 | $84,284 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
Preferred shares, par value | $0.01 | $0.01 |
Preferred shares, shares authorized | 10,000,000 | 10,000,000 |
Preferred shares, shares issued | 3,677 | 3,677 |
Preferred shares, shares outstanding | 3,677 | 3,677 |
Preferred shares, liquidation preference | $3,677,000 | $3,677,000 |
Common shares, par value | $0.01 | $0.01 |
Common shares, shares authorized | 75,000,000 | 75,000,000 |
Common shares, shares issued | 52,965,797 | 52,965,797 |
Common shares, shares outstanding | 27,129,832 | 27,129,832 |
Treasury stock, shares | 25,835,965 | 25,835,965 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $1,757 | $5,787 |
Adjustments to reconcile net income to net cash used by operating activities: | ' | ' |
Depreciation and amortization | 52 | 48 |
Deferred tax expense | 120 | 17 |
Asset allowances, reserves and other | -243 | 229 |
Impairment of trademark | ' | 1,326 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 2,989 | -4,116 |
Other receivables | 738 | -1,084 |
Due from affiliates | 1 | ' |
Inventories | -3,845 | -1,364 |
Prepaid expenses and other current assets | -960 | -2,583 |
Other assets | 61 | -69 |
Accounts payable and other current liabilities | 557 | 9,140 |
Due to affiliates | ' | -11 |
Interest and income taxes payable | -570 | 125 |
Net cash provided by operating activities | 657 | 7,445 |
Cash flows from investing activities: | ' | ' |
Short term investment | 30,080 | -25,000 |
(Increase) decrease in restricted cash | -3 | 97 |
Additions to property and equipment | -23 | -1 |
Disposals of property and equipment | ' | 7 |
Net cash provided (used) by investing activities | 30,054 | -24,897 |
Cash flows from financing activities: | ' | ' |
Repayments of short-term borrowings | ' | 1 |
Net decrease in capital lease | -15 | -21 |
Net cash used by financing activities | -15 | -20 |
Net increase (decrease) in cash and cash equivalents | 30,696 | -17,472 |
Cash and cash equivalents at beginning of period | 21,412 | 44,960 |
Cash and cash equivalents at end of period | 52,108 | 27,488 |
Cash paid during the period for: | ' | ' |
Interest | 6 | 7 |
Income taxes | $573 | $606 |
Background_and_Basis_of_Presen
Background and Basis of Presentation | 6 Months Ended |
Sep. 30, 2013 | |
Background and Basis of Presentation | ' |
NOTE 1 — BACKGROUND AND BASIS OF PRESENTATION | |
The consolidated financial statements include the accounts of Emerson Radio Corp. (“Emerson”, consolidated — the “Company”), and its subsidiaries. The Company designs, sources, imports and markets a variety of houseware and consumer electronic products, and licenses the Company’s trademarks for a variety of products domestically and internationally. | |
The unaudited interim consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the Company’s consolidated financial position as of September 30, 2013 and the results of operations for the three and six month periods ended September 30, 2013 and September 30, 2012. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary in order to make the financial statements not misleading have been included. All significant intercompany accounts and transactions have been eliminated in consolidation. The preparation of the unaudited interim consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes; actual results could materially differ from those estimates. The unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and accordingly do not include all of the disclosures normally made in the Company’s annual consolidated financial statements. Accordingly, these unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended March 31, 2013 (“fiscal 2013”), included in the Company’s annual report on Form 10-K, as amended, for fiscal 2013. | |
The results of operations for the three and six month periods ended September 30, 2013 are not necessarily indicative of the results of operations that may be expected for any other interim periods or for the full year ended March 31, 2014 (“fiscal 2014”). | |
Whenever necessary, reclassifications are made to conform the prior year’s financial statements to the current year’s presentation. | |
Unless otherwise disclosed in the notes to these financial statements, the estimated fair value of the financial assets and liabilities approximates the carrying value. | |
Subsequent events have been evaluated through November 14, 2013. | |
Stock-Based Compensation | |
The Company measures compensation cost for stock-based compensation arrangements based on grant date fair value. The computed fair value is expensed ratably over the requisite vesting period as required by Accounting Standards Codification (“ASC”) Topic 718 “Compensation — Stock Compensation”. All outstanding stock based compensation arrangements issued by the Company were fully vested as of November 30, 2009. Consequently, the Company recorded no compensation costs during either of the three or six month periods ended September 30, 2013 and September 30, 2012. | |
Sales Allowance and Marketing Support Expenses | |
Sales allowances, marketing support programs, promotions and other volume-based incentives which are provided to retailers and distributors are accounted for on an accrual basis as a reduction to net revenues in the period in which the related sales are recognized in accordance with ASC topic 605, “Revenue Recognition”, subtopic 50 “Customer Payments and Incentives” and Securities and Exchange Commission Staff Accounting Bulletins 101 “Revenue Recognition in Financial Statements,” and 104 “Revenue Recognition, corrected copy” (“SAB’s 101 and 104”). | |
At the time of sale, the Company reduces recognized gross revenue by allowances to cover, in addition to estimated sales returns as required by ASC topic 605, “Revenue Recognition”, subtopic 15 “Products”, (i) sales incentives offered to customers that meet the criteria for accrual under ASC topic 605, subtopic 50 and (ii) under SAB’s 101 and 104, an estimated amount to recognize additional non-offered deductions it anticipates and can reasonably estimate will be taken by customers which it does not expect to recover. Accruals for the estimated amount of future non-offered deductions are required to be made as contra-revenue items because that percentage of shipped revenue fails to meet the collectability criteria within SAB 104’s and 101’s four revenue recognition criteria, all of which are required to be met in order to recognize revenue. | |
If additional marketing support programs, promotions and other volume-based incentives are required to promote the Company’s products subsequent to the initial sale, then additional reserves may be required and are accrued for when such support is offered. | |
Net_Earnings_Per_Share
Net Earnings Per Share | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Net Earnings Per Share | ' | ||||||||||||||||
NOTE 2 — NET EARNINGS PER SHARE | |||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 388 | $ | 1,947 | $ | 1,757 | $ | 5,787 | |||||||||
Denominator: | |||||||||||||||||
Denominator for basic earnings per share — weighted average shares | 27,130 | 27,130 | 27,130 | 27,130 | |||||||||||||
Effect of dilutive securities on denominator: | |||||||||||||||||
Options (computed using the treasury stock method) | — | — | — | — | |||||||||||||
Denominator for diluted earnings per share — weighted average shares and assumed conversions | 27,130 | 27,130 | 27,130 | 27,130 | |||||||||||||
Basic and diluted earnings per share | $ | 0.01 | $ | 0.07 | $ | 0.06 | $ | 0.21 | |||||||||
Shareholders_Equity
Shareholders' Equity | 6 Months Ended |
Sep. 30, 2013 | |
Shareholders' Equity | ' |
NOTE 3 — SHAREHOLDERS’ EQUITY | |
Outstanding capital stock at September 30, 2013 consisted of common stock and Series A preferred stock. The Series A preferred stock is non-voting, has no dividend preferences and has not been convertible since March 31, 2002; however, it retains a liquidation preference. | |
At September 30, 2013, the Company had approximately 50,000 options outstanding and exercisable, all of which were non-dilutive for the three and six month periods ending September 30, 2013 and September 30, 2012, with exercise prices ranging from $3.07 to $3.19. 25,000 of these options expire in January 2016 and 25,000 of these options expire in November 2016. |
Inventory
Inventory | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory | ' | ||||||||
NOTE 4 — INVENTORY | |||||||||
Inventories are stated at the lower of cost or market. Cost is determined using the first-in, first-out method. As of September 30, 2013 and March 31, 2013, inventories consisted of the following (in thousands): | |||||||||
September 30, 2013 | March 31, 2013 | ||||||||
(Unaudited) | |||||||||
Finished goods | $ | 7,299 | $ | 3,454 | |||||
Income_Taxes
Income Taxes | 6 Months Ended | ||||
Sep. 30, 2013 | |||||
Income Taxes | ' | ||||
NOTE 5 — INCOME TAXES | |||||
Income Tax Issues Concerning Overseas Income | |||||
On April 15, 2013 and June 5, 2013, Emerson received correspondence from the IRS including a (i) Form 5701 and Form 886-A regarding Adjusted Sales Income (collectively referred to as “NOPA 1”) and (ii) Form 5701 and Form 886-A regarding Adjusted Subpart F-Foreign Base Company Sales Income (collectively referred to as “NOPA 2”). | |||||
With respect to NOPA 1, the IRS is (i) challenging the position of the Company with respect to the way the Company’s controlled foreign corporation in Macao (the “Macao CFC”) recorded its product sales during Fiscal 2010 and Fiscal 2011 and (ii) asserting that an upward adjustment to the Company’s Fiscal 2010 and Fiscal 2011 taxable income of $4,981,520 and $5,680,182, respectively, is required. | |||||
With respect to NOPA 2, the IRS is challenging the position of the Company with respect to the fact that the Company considered the service fee paid by the Company to the Macao CFC to be non-taxable in the U.S. The IRS has taken the position that the service fee paid to the Macao CFC by the Company constitutes foreign base company sales income (“FBCSI”). The IRS asserts that the service fee earned by the Macao CFC in connection with its sales of products to the Company should be taxable to the Company as FBCSI. As a result, the IRS determined that an upward adjustment to the Company’s Fiscal 2010 and Fiscal 2011 taxable income of $1,553,984 and $1,143,162, respectively, is required. | |||||
The Company has evaluated the determinations made by the IRS as set forth in each of NOPA 1 and NOPA 2 in order to decide (a) how it will proceed and (b) the potential impact on the Company’s financial condition and operations. Furthermore, although NOPA 1 and NOPA 2 represent potential adjustments to Fiscal 2010 and Fiscal 2011 only, the Company believes it is likely that the IRS will take the position that the same type of adjustments should be made for each of the Company’s subsequent fiscal years. The assessment and payment of such additional taxes, penalties and interest would have a material adverse effect on the Company’s financial condition and results of operations. | |||||
With respect to NOPA 1, the Company is appealing the proposed adjustment with the IRS. In the event that the Company is not successful in its appeal, the Company estimates that it could be liable for a maximum in taxes, penalties and interest of approximately $13.3 million pertaining to NOPA 1, in the aggregate, for its Fiscal 2010, Fiscal 2011, Fiscal 2012 and Fiscal 2013 periods. However, because the Company’s current assessment is that its appeal of NOPA 1 is more likely than not to be successful, the Company has not recorded any liability to its September 30, 2013 or March 31, 2013 balance sheets related to NOPA 1. | |||||
With respect to NOPA 2, the Company agrees in principle with the IRS’ position that the service fee paid to the Macao CFC by the Company would be treated as FBCSI and taxable to the Company but the Company does not agree with the adjustment to the Company’s taxable income as calculated by the IRS. However, the Company has estimated at approximately $1.1 million the amount of taxes, penalties and interest for which it would be liable for its Fiscal 2010, Fiscal 2011, Fiscal 2012 and Fiscal 2013 periods using the adjustments to taxable income as proposed by the IRS, and recorded such amount as a liability to its September 30, 2013 and March 31, 2013 balance sheets. | |||||
The Company has no U.S. federal net operating loss carry forwards and some U.S. state net operating loss carry forwards included in net deferred tax assets that are available to offset future taxable income and can be carried forward for 20 years. Although realization is not assured, management believes it is more likely than not that all of the net deferred tax assets will be realized through tax planning strategies available in future periods and through future profitable operating results. The amount of the deferred tax asset considered realizable could be reduced or eliminated if certain tax planning strategies are not successfully executed or estimates of future taxable income during the carry forward period are reduced. If management determines that the Company would not be able to realize all or part of the net deferred tax asset in the future, an adjustment to the deferred tax asset would be charged to income in the period such determination was made. | |||||
The Company’s effective tax rate differs from the federal statutory rate primarily due to expenses that are not deductible for federal income tax purposes, income and losses incurred in foreign jurisdictions and taxed at locally applicable tax rates, and state income taxes. | |||||
The Company is subject to examination and assessment by tax authorities in numerous jurisdictions. A summary of the Company’s open tax years is as follows as of September 30, 2013: | |||||
Jurisdiction | Open tax years | ||||
U.S. federal | 2008-2012 | ||||
States | 2008-2012 | ||||
Based on the outcome of tax examinations or due to the expiration of statutes of limitations, it is reasonably possible that the unrecognized tax benefits related to uncertain tax positions taken in previously filed returns may be different from the liabilities that have been recorded for these unrecognized tax benefits. As a result, the Company may be subject to additional tax expense. | |||||
Related_Party_Transactions
Related Party Transactions | 6 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions | ' |
NOTE 6 — RELATED PARTY TRANSACTIONS | |
From time to time, Emerson engages in business transactions with its controlling shareholder, The Grande Holdings Limited (In Liquidation) (“Grande”), a Bermuda Corporation, and one or more of Grande’s direct and indirect subsidiaries. Set forth below is a summary of such transactions. | |
Controlling Shareholder | |
Grande has, together with S&T International Distribution Limited (“S&T”), a subsidiary of Grande, and Grande N.A.K.S. Ltd., a subsidiary of Grande (together with Grande, the “Reporting Persons”), filed, on April 29, 2013, a Schedule 13D/A with the Securities and Exchange Commission (“SEC”) stating that, as of the filing date, the Reporting Persons had the shared power to vote and direct the disposition of 15,243,283 shares, or approximately 56.2%, of the outstanding common stock of Emerson. As the Reporting Persons, and by extension Grande (as their ultimate parent) have control of a majority of the outstanding shares of common stock of Emerson, Emerson is a Controlled company, as defined in Section 801(a) of the NYSE MKT Rules. | |
On May 31, 2011, upon application of a major creditor, the High Court of Hong Kong appointed Fok Hei Yu (who is also known by the anglicized name Vincent Fok), a current director of the Company, and Roderick John Sutton, both of FTI Consulting (Hong Kong) Limited (“FTI”), as Joint and Several Provisional Liquidators over Grande. Accordingly, as of May 31, 2011, the directors of Grande no longer have the ability to exercise control over Grande or the power to direct the voting and disposition of the 15,243,283 shares beneficially owned by Grande. Instead, Mr. Fok and Mr. Sutton, as Provisional Liquidators over Grande, have such power. In addition, on March 20, 2013, the Provisional Liquidators informed Emerson that they are obligated to liquidate the 15,243,283 shares in the Company beneficially owned by Grande. The Company can make no assurances regarding whether or to what extent such shares will be liquidated or retained by Grande, the timing, prices or amounts of any sales of shares or the impact, if any, on the Company, its other shareholders or the trading price of its common stock of any actual or anticipated dispositions of shares by the Provisional Liquidators. | |
Related Party Transactions | |
Rented Office Space in Hong Kong | |
Until May 2013, at which time these charges ceased, the Company was billed for service charges from Brighton Marketing Limited, a subsidiary of Grande, in connection with the Company’s rented office space in Hong Kong. These charges totaled approximately $2,000 for the three month period ended September 30, 2012. For the six month periods ended September 30, 2013 and September 30, 2012, these charges totaled approximately $1,000 and $2,000, respectively. Emerson owed Brighton Marketing Limited nil at both September 30, 2013 and September 30, 2012 pertaining to these charges. | |
The Company continues to be charged for service charges from The Grande Properties Management Limited, a related party to Christopher Ho, the Chairman of the Board of Directors of the Company, in connection with the Company’s rented office space in Hong Kong. These charges totaled approximately $4,000 and $10,000, respectively for the three month periods ended September 30, 2013 and September 30, 2012. These charges totaled approximately $8,000 and $21,000, respectively, for the six month periods ended September 30, 2013 and September 30, 2012. The Company owed nil to The Grande Properties Management Limited related to these charges at both September 30, 2013 and September 30, 2012. | |
Beginning July 3, 2012, the Company entered into a rental agreement with Lafe Strategic Services Limited (“Lafe”), which is a related party to Mr Ho, whereby the Company was leasing out excess space within its rented office space in Hong Kong to Lafe. The rental agreement was on a month-by-month basis, cancellable by either the Company or Lafe on one month’s written notice. During the three month period ended September 30, 2012, the Company earned rental income of approximately $9,000 and owed Lafe an amount of approximately $6,000 for a security deposit paid the Company by Lafe at the inception of the agreement. The agreement was cancelled by Lafe effective April 1, 2013 at which time Lafe owed Emerson nil in rental payable from the arrangement. Emerson returned the approximately $6,000 to Lafe in July 2013 that Emerson had been holding as a security deposit in accordance with the terms of the agreement. | |
Mr. Ho did not stand for re-election to serve as a director of the Company at the Company’s 2013 Annual Meeting of Stockholders held on November 7, 2013. Accordingly, Mr. Ho is no longer a director of the Company or a related party to the Company after November 7, 2013. | |
Consulting Services Provided to Emerson by one of its Directors | |
During the three months ended September 30, 2013 and September 30, 2012, Emerson paid consulting fees of approximately $29,000 and $23,000, respectively, to Eduard Will, a director of Emerson, for work performed by Mr. Will related to strategy for the Kayne Litigation as more fully described in Note 8 – “Legal Proceedings – Kayne Litigation” and merger and acquisition research. In addition, during the three months ended September 30, 2013 and September 30, 2012, Emerson paid expense reimbursements and advances, in the aggregate, of nil and approximately $8,000, respectively, to Mr. Will, related to this consulting work and his service as a director of Emerson. | |
During the six months ended September 30, 2013 and September 30, 2012, Emerson paid consulting fees of approximately $58,000 and $52,000, respectively, to Mr. Will, for work performed by Mr. Will related to strategy for the Kayne Litigation as more fully described in Note 8 – “Legal Proceedings – Kayne Litigation”, merger and acquisition research, as well as work related to the strategy for a shareholder derivative lawsuit that the Company settled in January 2011. In addition, during the six months ended September 30, 2013 and September 30, 2012, Emerson paid expense reimbursements and advances, in the aggregate, of nil and approximately $10,000, respectively, to Mr. Will, related to this consulting work and his service as a director of Emerson. | |
At both September 30, 2013 and September 30, 2012, the Company owed Mr. Will nil related to these activities. | |
Mr. Will was not re-elected to serve as a director of the Company at the Company’s 2013 Annual Meeting of Stockholders held on November 7, 2013. Accordingly, Mr. Will is no longer a director of the Company or a related party to the Company after November 7, 2013. | |
Dividend-Related Issues with S&T | |
On March 2, 2010, the Board declared an extraordinary dividend of $1.10 per common share, which was paid on March 24, 2010. In connection with the Company’s determination as to the taxability of the dividend, the Board relied upon information and research provided to it by the Company’s tax advisors and, in reliance on the “stock-for-debt” exception in the Internal Revenue Code Sections 108(e)(8) and (e)(10), concluded that 4.9% of such dividend paid was taxable to the recipients. | |
In August 2012, the Company received a Form 886-A from the IRS which challenges the Company’s conclusions and determines that the Company does not qualify for the above-referenced exception. Accordingly, the IRS has concluded that 100% of the dividend paid was taxable to the recipients. The Company is defending its position and calculations and is contesting the position asserted by the IRS. The Company prepared and, on October 25, 2012, delivered its rebuttal to the IRS contesting the IRS determination. There can be no assurance that the Company will be successful in defending its position. | |
In the event that the Company is not successful in establishing with the IRS that the Company calculations were correct, then the shareholders who received the dividend likely will be subject to and liable for an assessment of additional taxes due. Moreover, the Company may be contingently liable for taxes due by certain of its shareholders resulting from the dividend paid by the Company. | |
Initially, the Company withheld from the dividend paid to foreign shareholders an amount equal to the tax liability associated with such dividend. On April 7, 2010, upon a request made to the Company by its foreign controlling shareholder, S&T, the Company entered into an agreement with S&T (the “Agreement”), whereby the Company returned to S&T on April 7, 2010 that portion of the funds withheld for taxes from the dividend paid on March 24, 2010 to S&T, which the Company believes is not subject to U.S. tax based on the Company’s good-faith estimate of its accumulated earnings and profits. The Agreement includes provisions pursuant to which S&T agreed to indemnify the Company for any liability imposed on it as a result of the Company’s agreement not to withhold such funds for S&T’s possible tax liability and a pledge of stock as collateral. The Company continues to assert that such dividend is largely not subject to U.S. tax based on the Company’s good-faith estimate of its accumulated earnings and profits. In addition, the Company also continues to assert that this transaction results in an off-balance sheet arrangement and a possible contingent tax liability of the Company, which, if recognized, would be offset in part by the calling by the Company on S&T of the indemnification provisions of the Agreement. | |
Per the terms of the Agreement, Emerson invoiced S&T in June 2010 approximately $42,000 for reimbursement of legal fees incurred by Emerson with regard to the Agreement and approximately $33,000 as a transaction fee for having entered into the Agreement. In January 2011, Emerson agreed, upon the request of S&T, to waive approximately $5,000 of the legal charges that had been invoiced to S&T in June 2010. S&T paid the full amount owed to Emerson of approximately $70,000 in February 2011. | |
In February 2011, upon the request of S&T to the Company, the Company and S&T agreed that the collateral pledged as a part of the Agreement would no longer be required and such collateral was returned by the Company to S&T in March 2011 and the Agreement was amended and restated to remove the collateral requirement but retain the indemnification provisions. The Agreement, as amended (the “Amended Agreement”), remains in effect as of today. In the event that (i) the Company is not successful in establishing with the IRS that the Company’s calculations were correct and (ii) S&T is unable or unwilling to pay the additional taxes due or indemnify the Company under the terms of the Amended Agreement, the Company may be liable to pay such additional taxes which would have a material adverse effect on the Company’s financial condition and results of operations. | |
Other | |
During the three months ended September 30, 2013 and September 30, 2012, Emerson invoiced Vigers Appraisal & Consulting Ltd. (“Vigers”), a related party to Mr. Ho, approximately $1,000 and $1,000, respectively, for usage of telephone and data lines maintained by Emerson. During the six months ended September 30, 2013 and September 30, 2012, Emerson invoiced Vigers approximately $2,000 and $2,000, respectively, for usage of telephone and data lines maintained by Emerson. Vigers owed Emerson nil and approximately $1,000 at September 30, 2013 and September 30, 2012, respectively, related to this activity. | |
Mr. Ho did not stand for re-election to serve as a director of the Company at the Company’s 2013 Annual Meeting of Stockholders held on November 7, 2013. Accordingly, Mr. Ho is no longer a director of the Company or a related party to the Company after November 7, 2013. | |
Borrowings
Borrowings | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Borrowings | ' | ||||||||
NOTE 7 — BORROWINGS | |||||||||
Short-term Borrowings | |||||||||
Letters of Credit — The Company uses Hang Seng Bank to issue letters of credit on behalf of the Company, as needed, on a 100% cash collateralized basis. At September 30, 2013, the Company had outstanding letters of credit totaling $73,000. A like amount of cash, which was posted by the Company as collateral against these outstanding letters of credit, at September 30, 2013, has been classified by the Company as Restricted Cash on the balance sheet. | |||||||||
Long-term Borrowings | |||||||||
At September 30, 2013 and March 31, 2013, borrowings under long-term facilities consisted of the following (in thousands): | |||||||||
September 30, 2013 | March 31, 2013 | ||||||||
(Unaudited) | |||||||||
Capitalized lease obligations | 58 | 73 | |||||||
Less current maturities | (43 | ) | (43 | ) | |||||
Long term borrowings | $ | 15 | $ | 30 | |||||
Legal_Proceedings
Legal Proceedings | 6 Months Ended |
Sep. 30, 2013 | |
Legal Proceedings | ' |
NOTE 8 — LEGAL PROCEEDINGS | |
Kayne Litigation. On July 7, 2011, the Company was served with an amended complaint (the “Complaint”) filed in the United States District Court for the Central District of California alleging, among other things, that the Company, certain of its present and former directors and other entities or individuals now or previously associated with Grande, intentionally interfered with the ability of the plaintiffs to collect on a judgment (now, with interest, approximately $60 million) they had against Grande by engaging in transactions (such as the dividend paid to all shareholders in March 2010) which transferred assets out of the United States. The Complaint also asserts claims under the civil RICO statute and for alter ego liability. In the Company’s opinion, the claims appear to be devoid of merit. Accordingly, on September 27, 2011, Emerson moved to dismiss the action for failure to state a claim. On or about February 27, 2012, the Court dismissed the intentional interference claim and portions of the Civil RICO claim with leave to re-plead, but denied the motion to dismiss the alter ego claim. On March 19, 2012, the plaintiffs filed a Second Amended Complaint setting forth the same claims as the Complaint. On April 20, 2012, the Company moved to dismiss the re-pleaded intentional interference and RICO claims, and oral arguments on this motion were held on June 18, 2012. On September 6, 2012, the Court dismissed the RICO claim, but granted the plaintiffs leave to re-plead. On September 17, 2012, the plaintiffs filed a Third Amended Complaint setting forth the same claims as the Complaint. The Company’s response to the Third Amended Complaint was due and filed on October 4, 2012, which joined in a co-defendants’ motion to dismiss the alter ego claim and the RICO claim. The Court heard oral argument on December 17, 2012. On May 9, 2013, the Court granted, in part, the motion to dismiss and dismissed the RICO claim with prejudice. On May 23, 2013, Emerson filed an Answer in which it denied the allegations of the Third Amended Complaint. Discovery, which included the exchange of thousands of documents and numerous depositions of fact and expert witnesses, is now complete. On June 24, 2013, Emerson, and the other parties moved for summary judgment seeking dismissal of the remaining two claims. The court held oral argument on that motion on July 29, 2013. On August 28, 2013, the Court granted the motion, in part, and dismissed the intentional interference claim. The alter ego claim is the only remaining claim. Emerson will continue to defend the action vigorously. This matter is scheduled for trial on December 3, 2013. | |
Other. Except for the litigation matter described above, the Company is not currently a party to any legal proceedings other than litigation matters, in most cases involving ordinary and routine claims incidental to our business. Management cannot estimate with certainty the Company’s ultimate legal and financial liability with respect to such pending litigation matters. However, management believes, based on our examination of such matters, that the Company’s ultimate liability will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Trademarks
Trademarks | 6 Months Ended |
Sep. 30, 2013 | |
Trademarks | ' |
NOTE 9 — TRADEMARKS | |
In September 2012, upon completion of an analysis which showed the absence of future expected cash flows, the Company determined that the value of one of its non-strategic trademarks was fully impaired. Thus, the Company recorded in September 2012 an impairment charge of $1.3 million to write off this trademark. The Company does not anticipate any future material adverse financial impacts arising from this impairment. | |
Short_Term_Investments
Short Term Investments | 6 Months Ended |
Sep. 30, 2013 | |
Short Term Investments | ' |
NOTE 10 — SHORT TERM INVESTMENTS | |
During the six months ended September 30, 2013, the Company had $15.2 million invested in certificates of deposit with durations in excess of three months. $10.1 million of the certificates mature on December 4, 2013 and $5.1 million of the certificates mature on March 31, 2014. |
Background_and_Basis_of_Presen1
Background and Basis of Presentation (Policies) | 6 Months Ended |
Sep. 30, 2013 | |
Preparation of Financial Statements | ' |
The unaudited interim consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the Company’s consolidated financial position as of September 30, 2013 and the results of operations for the three and six month periods ended September 30, 2013 and September 30, 2012. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary in order to make the financial statements not misleading have been included. All significant intercompany accounts and transactions have been eliminated in consolidation. The preparation of the unaudited interim consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes; actual results could materially differ from those estimates. The unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and accordingly do not include all of the disclosures normally made in the Company’s annual consolidated financial statements. Accordingly, these unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the fiscal year ended March 31, 2013 (“fiscal 2013”), included in the Company’s annual report on Form 10-K, as amended, for fiscal 2013. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company measures compensation cost for stock-based compensation arrangements based on grant date fair value. The computed fair value is expensed ratably over the requisite vesting period as required by Accounting Standards Codification (“ASC”) Topic 718 “Compensation — Stock Compensation”. All outstanding stock based compensation arrangements issued by the Company were fully vested as of November 30, 2009. Consequently, the Company recorded no compensation costs during either of the three or six month periods ended September 30, 2013 and September 30, 2012. | |
Sales Allowance and Marketing Support Expenses | ' |
Sales Allowance and Marketing Support Expenses | |
Sales allowances, marketing support programs, promotions and other volume-based incentives which are provided to retailers and distributors are accounted for on an accrual basis as a reduction to net revenues in the period in which the related sales are recognized in accordance with ASC topic 605, “Revenue Recognition”, subtopic 50 “Customer Payments and Incentives” and Securities and Exchange Commission Staff Accounting Bulletins 101 “Revenue Recognition in Financial Statements,” and 104 “Revenue Recognition, corrected copy” (“SAB’s 101 and 104”). | |
At the time of sale, the Company reduces recognized gross revenue by allowances to cover, in addition to estimated sales returns as required by ASC topic 605, “Revenue Recognition”, subtopic 15 “Products”, (i) sales incentives offered to customers that meet the criteria for accrual under ASC topic 605, subtopic 50 and (ii) under SAB’s 101 and 104, an estimated amount to recognize additional non-offered deductions it anticipates and can reasonably estimate will be taken by customers which it does not expect to recover. Accruals for the estimated amount of future non-offered deductions are required to be made as contra-revenue items because that percentage of shipped revenue fails to meet the collectability criteria within SAB 104’s and 101’s four revenue recognition criteria, all of which are required to be met in order to recognize revenue. | |
If additional marketing support programs, promotions and other volume-based incentives are required to promote the Company’s products subsequent to the initial sale, then additional reserves may be required and are accrued for when such support is offered. | |
Net_Earnings_Per_Share_Tables
Net Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Computation of Basic and Diluted Earnings per Share | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): | |||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 388 | $ | 1,947 | $ | 1,757 | $ | 5,787 | |||||||||
Denominator: | |||||||||||||||||
Denominator for basic earnings per share — weighted average shares | 27,130 | 27,130 | 27,130 | 27,130 | |||||||||||||
Effect of dilutive securities on denominator: | |||||||||||||||||
Options (computed using the treasury stock method) | — | — | — | — | |||||||||||||
Denominator for diluted earnings per share — weighted average shares and assumed conversions | 27,130 | 27,130 | 27,130 | 27,130 | |||||||||||||
Basic and diluted earnings per share | $ | 0.01 | $ | 0.07 | $ | 0.06 | $ | 0.21 | |||||||||
Inventory_Tables
Inventory (Tables) | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Reconciliation of Inventory | ' | ||||||||
As of September 30, 2013 and March 31, 2013, inventories consisted of the following (in thousands): | |||||||||
September 30, 2013 | March 31, 2013 | ||||||||
(Unaudited) | |||||||||
Finished goods | $ | 7,299 | $ | 3,454 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | ||||
Sep. 30, 2013 | |||||
Summary of Open Tax Years | ' | ||||
A summary of the Company’s open tax years is as follows as of September 30, 2013: | |||||
Jurisdiction | Open tax years | ||||
U.S. federal | 2008-2012 | ||||
States | 2008-2012 |
Borrowings_Tables
Borrowings (Tables) | 6 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Long Term Borrowings | ' | ||||||||
At September 30, 2013 and March 31, 2013, borrowings under long-term facilities consisted of the following (in thousands): | |||||||||
September 30, 2013 | March 31, 2013 | ||||||||
(Unaudited) | |||||||||
Capitalized lease obligations | 58 | 73 | |||||||
Less current maturities | (43 | ) | (43 | ) | |||||
Long term borrowings | $ | 15 | $ | 30 | |||||
Background_and_Basis_of_Presen2
Background and Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Basis of Presentation [Line Items] | ' | ' | ' | ' |
Stock based compensation costs | $0 | $0 | $0 | $0 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator: | ' | ' | ' | ' |
Net income | $388 | $1,947 | $1,757 | $5,787 |
Denominator: | ' | ' | ' | ' |
Denominator for basic earnings per share - weighted average shares | 27,130 | 27,130 | 27,130 | 27,130 |
Effect of dilutive securities on denominator: | ' | ' | ' | ' |
Options (computed using the treasury stock method) | ' | ' | ' | ' |
Denominator for diluted earnings per share - weighted average shares and assumed conversions | 27,130 | 27,130 | 27,130 | 27,130 |
Basic and diluted earnings per share | $0.01 | $0.07 | $0.06 | $0.21 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Minimum | Maximum | Stock Options 1 | Stock Options 2 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Options outstanding | 50,000 | 50,000 | ' | ' | 25,000 | 25,000 |
Options outstanding and exercisable with exercise prices | ' | ' | $3.07 | $3.19 | ' | ' |
Option outstanding, expiration period | ' | ' | ' | ' | '2016-01 | '2016-11 |
Inventory_Detail
Inventory (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Finished goods | $7,299 | $3,454 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 6 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2011 | Mar. 31, 2010 | Sep. 30, 2013 | Mar. 31, 2011 | Mar. 31, 2010 | |
Notice of Proposed Adjustment One | Notice of Proposed Adjustment One | Notice of Proposed Adjustment One | Notice of Proposed Adjustment Two | Notice of Proposed Adjustment Two | Notice of Proposed Adjustment Two | ||
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Adjustment to taxable income | ' | ' | $5,680,182 | $4,981,520 | ' | $1,143,162 | $1,553,984 |
Estimated income tax adjustment liable for taxes, penalties and interest, in aggregate for fiscal 2010 through 2013 | ' | $13,300,000 | ' | ' | $1,100,000 | ' | ' |
Tax net operating loss can be carried forward | '20 years | ' | ' | ' | ' | ' | ' |
Summary_of_Open_Tax_Years_Deta
Summary of Open Tax Years (Detail) | 6 Months Ended |
Sep. 30, 2013 | |
Minimum | U.S. federal | ' |
Income Tax Examination [Line Items] | ' |
Open tax years | '2008 |
Minimum | States | ' |
Income Tax Examination [Line Items] | ' |
Open tax years | '2008 |
Maximum | U.S. federal | ' |
Income Tax Examination [Line Items] | ' |
Open tax years | '2012 |
Maximum | States | ' |
Income Tax Examination [Line Items] | ' |
Open tax years | '2012 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
Feb. 28, 2011 | Jan. 31, 2011 | Jun. 30, 2010 | Aug. 31, 2012 | Mar. 02, 2010 | Apr. 29, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 03, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Grande [Member] | Amount owed from Emerson to Brighton Marketing Limited | Amount owed from Emerson to Brighton Marketing Limited | Amount owed from Emerson to Brighton Marketing Limited | Grande Properties Management Limited | Grande Properties Management Limited | Grande Properties Management Limited | Grande Properties Management Limited | Lafe Strategic Services Limited | Lafe Strategic Services Limited | Lafe Strategic Services Limited | Mr. Eduard Will, a director of Emerson | Mr. Eduard Will, a director of Emerson | Mr. Eduard Will, a director of Emerson | Mr. Eduard Will, a director of Emerson | Vigers Appraisal & Consulting Ltd | Vigers Appraisal & Consulting Ltd | Vigers Appraisal & Consulting Ltd | Vigers Appraisal & Consulting Ltd | ||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grande's (Provisional Liquidator Appointed) Ownership Interest in Emerson number of shares | ' | ' | ' | ' | ' | 15,243,283 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grande's (Provisional Liquidator Appointed) Ownership Interest Percentage | ' | ' | ' | ' | ' | 56.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service charge from related party | ' | ' | ' | ' | ' | ' | $2,000 | $1,000 | $2,000 | $4,000 | $10,000 | $8,000 | $21,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount owed to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rental income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Security deposit returned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount receivable from related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | 1,000 |
Security deposit paid at inception of agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notice period to cancel rental agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 month | ' | ' | ' | ' | ' | ' | ' | ' |
Consulting fees paid to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,000 | 23,000 | 58,000 | 52,000 | ' | ' | ' | ' |
Expense reimbursements and advances paid to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000 | ' | 10,000 | ' | ' | ' | ' |
Extraordinary dividend declared | ' | ' | ' | ' | $1.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company's assertion as to the percent of the dividend that is taxable to the recipient | ' | ' | ' | ' | 4.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Internal Revenue Service's assertion as to the percent of the dividend that is taxable to the recipient, which the company is refuting | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursement of legal fees | ' | ' | 42,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreement transaction fees | ' | ' | 33,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Waive of legal charges | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receipts from related party for amount owned | 70,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount invoiced to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | $1,000 | $2,000 | $2,000 |
Borrowings_Additional_Informat
Borrowings - Additional Information (Detail) (USD $) | Sep. 30, 2013 |
Credit Facility Short Term Borrowings [Line Items] | ' |
Letters of credit issued percentage of cash collateralized basis | 100.00% |
Outstanding letters of credit | $73,000 |
Long_Term_Borrowings_Detail
Long Term Borrowings (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Borrowings [Line Items] | ' | ' |
Capitalized lease obligations | $58 | $73 |
Less current maturities | -43 | -43 |
Long term borrowings | $15 | $30 |
Legal_Proceedings_Additional_I
Legal Proceedings - Additional Information (Detail) (USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jul. 07, 2011 |
Commitments and Contingencies Disclosure [Line Items] | ' |
Reference to approximate value of previous judgment that plaintiff had against Grande | $60 |
Trademarks_Additional_Informat
Trademarks - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 |
Schedule Of Goodwill And Intangible Assets [Line Items] | ' | ' | ' |
Impairment charge to write off trademark | $1,300 | $1,326 | $1,326 |
Short_Term_Investments_Additio
Short Term Investments - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Certificates of Deposit | Certificates of Deposit Maturing in December 04 2013 | Certificates of Deposit Maturing in March 31 2013 | ||
Investment [Line Items] | ' | ' | ' | ' | ' |
Short-term Investments | $15,155 | $45,235 | $15,200 | $10,100 | $5,100 |
Certificate of deposit, maturity year and month | ' | ' | ' | 4-Dec-13 | 31-Mar-14 |