Emerson Radio (MSN) 10-Q 14 Feb 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 31, 2018	Feb. 11, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q3
Trading Symbol	MSN
Entity Registrant Name	EMERSON RADIO CORP
Entity Central Index Key	32,621
Current Fiscal Year End Date	--03-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		21,042,652

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Net revenues:
Net revenues	$ 2,541	$ 4,236	$ 7,390	$ 10,959
Costs and expenses:
Cost of sales	2,358	4,046	7,003	10,292
Other operating costs and expenses	2	14	22	38
Selling, general and administrative expenses	948	1,100	2,883	3,784
Total costs and expenses	3,308	5,160	9,908	14,114
Operating (loss)	(767)	(924)	(2,518)	(3,155)
Other income:
Interest income, net	240	131	617	365
(Loss) before income taxes	(527)	(793)	(1,901)	(2,790)
Provision for income tax expense	2	378	73	313
Net (loss)	$ (529)	$ (1,171)	$ (1,974)	$ (3,103)
Basic (loss) per share	$ (0.02)	$ (0.05)	$ (0.09)	$ (0.12)
Diluted (loss) per share	$ (0.02)	$ (0.05)	$ (0.09)	$ (0.12)
Weighted average shares outstanding
Basic	21,637	24,299	22,221	25,857
Diluted	21,637	24,299	22,221	25,857
Net Product Sales
Net revenues:
Net revenues	$ 2,421	$ 4,075	$ 7,040	$ 10,413
Licensing Revenue
Net revenues:
Net revenues	$ 120	$ 161	$ 350	$ 546

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2018	Mar. 31, 2018
Current Assets:
Cash and cash equivalents	$ 21,928	$ 25,096
Short term investments	14,031	16,000
Accounts receivable, net	749	1,884
Royalty receivable	163	63
Inventory	4,618	3,164
Prepaid purchases	36	360
Prepaid expenses and other current assets	572	497
Total Current Assets	42,097	47,064
Property, plant, and equipment, net	8	14
Deferred tax assets, net	448	528
Other assets	157	151
Total Non-current Assets	613	693
Total Assets	42,710	47,757
Current Liabilities:
Accounts payable and other current liabilities	636	803
Due to affiliates	5
Income tax payable, current portion	250	250
Deferred revenue		50
Total Current Liabilities	891	1,103
Non-Current Liabilities:
Income tax payable	2,621	2,871
Total Non-current Liabilities	2,621	2,871
Total Liabilities	3,512	3,974
Shareholders’ Equity:
Series A Preferred shares — 10,000,000 shares authorized; 3,677 shares issued and outstanding; liquidation preference of $3,677,000	3,310	3,310
Common shares — $0.01 par value, 75,000,000 shares authorized; 52,965,797 shares issued at December 31, 2018 and March 31, 2018, respectively; 21,047,155 and 22,799,088 shares outstanding at December 31, 2018 and March 31, 2018, respectively	529	529
Additional paid-in capital	79,792	79,792
Accumulated deficit	(11,239)	(9,265)
Treasury stock, at cost (31,918,642 and 30,166,709 shares at December 31, 2018 and March 31, 2018, respectively)	(33,194)	(30,583)
Total Shareholders’ Equity	39,198	43,783
Total Liabilities and Shareholders’ Equity	$ 42,710	$ 47,757

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Dec. 31, 2018	Mar. 31, 2018
Statement Of Financial Position [Abstract]
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	21,047,155	22,799,088
Treasury stock, shares	31,918,642	30,166,709

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash Flows from Operating Activities:
Net (loss)	$ (1,974)	$ (3,103)
Adjustments to reconcile net loss to net cash (used) provided by operating activities:
Depreciation and amortization	5	6
Deferred tax assets	80	222
Asset allowances and reserves	(177)	14
Changes in assets and liabilities:
Accounts receivable	1,312	(398)
Royalty receivable	(100)	36
Due to affiliates	5
Inventory	(1,454)	(2,233)
Prepaid purchases	324	(701)
Prepaid expenses and other current assets	(75)	918
Other assets	(6)	(71)
Accounts payable and other current liabilities	(167)	331
Deferred revenue	(50)
Income taxes payable	(250)	130
Net cash (used) by operating activities	(2,527)	(4,849)
Cash Flows From Investing Activities:
Proceeds from sale of short term investments	30,079	47,902
Purchases of short term investments	(28,110)	(45,057)
Additions to property, plant and equipment		(4)
Proceeds from disposals of property, plant and equipment	1
Net cash provided by investing activities	1,970	2,841
Cash Flows from Financing Activities:
Purchases of treasury stock	(2,611)	(4,644)
Net cash (used) by financing activities	(2,611)	(4,644)
Net (decrease) in cash and cash equivalents	(3,168)	(6,652)
Cash and cash equivalents at beginning of the period	25,096	27,471
Cash and cash equivalents at end of the period	21,928	20,819
Cash paid for:
Interest		3
Income taxes	$ 277	$ 4

Background and Basis of Present

Background and Basis of Presentation	9 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Background and Basis of Presentation	NOTE 1 — BACKGROUND AND BASIS OF PRESENTATION The consolidated financial statements include the accounts of Emerson Radio Corp. and its subsidiaries (“Emerson” or the “Company”). The Company designs, sources, imports and markets certain houseware and consumer electronic products, and licenses the Company’s trademarks for a variety of products. 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 December 31, 2018 and the results of operations for the three and nine month periods ended December 31, 2018 and December 31, 2017. 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, 2018 (“Fiscal 2018”), included in the Company’s annual report on Form 10-K, as amended, for fiscal 2018. The results of operations for the three and nine month periods ended December 31, 2018 are not necessarily indicative of the results of operations that may be expected for any other interim periods or for the full year ending March 31, 2019 (“Fiscal 2019”). Whenever necessary, reclassifications are made to conform the prior year’s consolidated financial statements to the current year’s presentation. Unless otherwise disclosed in the notes to these consolidated financial statements, the estimated fair value of the financial assets and liabilities approximates the carrying value. Recently Adopted Accounting Pronouncements In May 2014, issued ASU 2014-09 "Revenue from Contracts with Customers", subsequently amended and collectively Topic 606. The standard replaced almost all existing revenue recognition guidance in U.S. GAAP, with the intention to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The core principle of ASC 606 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASC 606 allows for adoption either on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the new guidance recognized at the date of initial application, which became effective for the Company beginning April 1, 2018. The Company adopted ASC 606 in the first quarter of fiscal 2019 on a modified retrospective basis with no changes recognized in the prior year comparative financial statements. The adoption of this standard did not have a material impact on the Company’s financial statements. The Company has enhanced its disclosures of revenue to comply with the new guidance. Recently Issued Accounting Pronouncements The following Accounting Standards Updates (“ASUs”) were issued by the Financial Accounting Standards Board which relate to or could relate to the Company as concerns the Company’s normal ongoing operations or the industry in which the Company operates. Accounting Standards Update 2016-02 “Leases” (Issued February 2016) In February 2016, the FASB issued ASU 2016-02 "Leases" to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 creates a new Accounting Standards Codification Topic 842 "Leases" to replace the previous Topic 840 "Leases." ASU 2016-02 affects both lessees and lessors, although for the latter the provisions are similar to the previous model, but updated to align with certain changes to the lessee model and also the new revenue recognition provisions contained in ASU 2014-09 (see above). ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is assessing the standard to determine if ASU 2016-02 will have a material impact on its financial statements. Accounting Standards Update 2016-13 “Financial Instruments – Credit Losses” (Issued June 2016) In June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses" to introduce new guidance for the accounting for credit losses on instruments within its scope. ASU 2016-13 requires among other things, the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted. The Company does not expect these amendments to have a material impact on its financial statements. Revenue recognition : Sales to customers and related cost of sales are primarily recognized at the point in time when control of goods transfers to the customer. Under the Direct Import Program, title passes in the country of origin. Under the Domestic Program, title passes primarily at the time of shipment. Estimates for future expected returns are based upon historical return rates and netted against revenues. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. Revenue is recorded net of customer discounts, promotional allowances, volume rebates and similar charges. When the Company offers the right to return product, historical experience is utilized to establish a liability for the estimate of expected returns. Sales and other tax amounts collected from customers for remittance to governmental authorities are excluded from revenue. Management must make estimates of potential future product returns related to current period product revenue. Management analyzes historical returns, current economic trends and changes in customer demand for the Company’s products when evaluating the adequacy of the reserve for sales returns. Management judgments and estimates must be made and used in connection with establishing the sales return reserves in any accounting period. Additional reserves may be required if actual sales returns increase above the historical return rates. Conversely, the sales return reserve could be decreased if the actual return rates are less than the historical return rates, which were used to establish the reserve. The Company adopted ASC topic 606 effective April 1, 2018. 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. Prior to the adoption of ASC topic 606, the Company followed the provisions of ASC topic 605 in prior periods. The adoption of ASC topic 606 did not have a material impact on revenue recognition as compared to revenue recognition provided under ASC topic 605. 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.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Share	NOTE 2 — EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts). Weighted average shares includes the impact of shares held in treasury. Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Numerator: Net (loss) $ (529 ) $ (1,171 ) $ (1,974 ) $ (3,103 ) Denominator: Denominator for basic and diluted earnings per share — weighted average shares 21,637 24,299 22,221 25,857 Net (loss) per share: Basic and diluted (loss) per share $ (0.02 ) $ (0.05 ) $ (0.09 ) $ (0.12 )

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Shareholders' Equity	NOTE 3 — SHAREHOLDERS’ EQUITY Outstanding capital stock at December 31, 2018 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 December 31, 2018, the Company had no options, warrants or other potentially dilutive securities outstanding. In December 2016, the Company publicly announced the approval by the Board of Directors of the repurchase of up to $5 million of its common stock, that the repurchases may be effected from time to time at prevailing market prices, through open market or in privately negotiated transactions, which may include, in whole or in part, the establishment of a purchase program pursuant to the safe harbor provided by Rule 10b5-1 under the Securities Exchange Act of 1934, through block purchases or through accelerated or forward or similar stock purchases, and that the Company intends to run the repurchase program through the end of calendar 2017, unless the period is extended or shortened by the Board of Directors. In September 2017, the Company’s Board of Directors approved an additional $5 million, bringing the total authorized stock repurchases under the program to $10 million and extended the program to June 30, 2018 . In June 2018, the extended the program to December 31, 2018, as of which date the program expired. Under the program, repurchases were funded from available working capital and all repurchased shares will be held in the treasury as authorized and issued shares available for general corporate purposes. During the three months ended December 31, 2018, 1,262,822 shares for $1,884,474 were repurchased. As of December 31, 2018, the Company had repurchased 6,082,677 shares for $8,970,556 under this program. Subsequent to December 31, 2018, the Company settled an additional 4,503 shares purchased under the program prior to its expiration for $6,540. These were the final purchases under the program.

Inventory

Inventory	9 Months Ended
	Dec. 31, 2018
Inventory Disclosure [Abstract]
Inventory	NOTE 4 — INVENTORY Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. As of December 31, 2018 and March 31, 2018, inventories consisted of the following (in thousands): December March Finished goods $ 4,618 $ 3,164

Income Taxes

Income Taxes	9 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 5 — INCOME TAXES At December 31, 2018, the Company had $2.3 million of U.S. federal net operating loss (“NOL”) carry forwards. These losses do not expire but are limited to utilization of 80% of taxable income in any one year. At December 31, 2018 the Company had approximately $9.2 million of U.S. state net operating loss carry forwards. The tax benefits related to these state net operating loss carry forwards and future deductible temporary differences are recorded to the extent management believes it is more likely than not that such benefits will be realized. The income of foreign subsidiaries before taxes was $215,000 for the quarter ended December 31, 2018 as compared to a loss before taxes of $57,000 for the quarter ended December 31, 2017, respectively. The Company analyzed the future reasonability of recognizing its deferred tax assets at December 31, 2018. As a result, the Company concluded that a valuation allowance of approximately $1,080,000 would be recorded against the assets Although the Company generated a net operating loss, it recorded income tax expense of approximately $2,100 during the three months ended December 31, 2018, resulting from the change in its deferred tax asset balance. During the three months ended December 31, 2017, the Company recorded an income tax expense of $378,000. For the nine months ended December 31, 2018 the Company recorded income tax expense of $73,000 as compared to income tax expense of $313,000 for the nine months ended December 31, 2017. The Company is subject to examination and assessment by tax authorities in numerous jurisdictions. As of December 31, 2018, the Company’s open tax years for examination for U.S. federal tax are 2014-2017, and for U.S. states’ tax are 2013-2017. 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. In December 2017, President Trump signed into law H.R.1, commonly known as the Tax Cuts and Jobs Act (“TCJA”), which makes significant changes to the Internal Revenue Code. Subsequent to enactment of the TCJA in December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to provide guidance regarding accounting for the TCJA’s impact. SAB 118 requires companies to recognize those tax items for which accounting can be completed. For items whose accounting has not been completed, companies must recognize provisional amounts to the extent they are reasonably estimable, with subsequent adjustments over a measurement period as more information is available and calculations are finalized. The TCJA lowered the Company’s US statutory federal tax rate from 34% to 21% effective January 1, 2018. While the Company has recognized the provisional tax effect of the transition tax on deemed repatriation and the revaluation of deferred tax assets and liabilities in its financial statements for the year ended March 31, 2018, the ultimate tax impact could differ from these provisional amounts. The Company will continue to analyze the impact of the TCJA, including any additional regulatory guidance issued by the U.S. tax authorities, and expects to complete its accounting in 2019. Prior to March 2018, the Company had asserted under ASC 740-30 that all of the unremitted earnings of its foreign subsidiaries were indefinitely invested. The Company evaluated this assertion each period based on a number of factors, including the operating plans, budgets, and forecasts for both the Company and its foreign subsidiaries; the long-term and short-term financial requirements in the U.S. and in each foreign jurisdiction; and the tax consequences of any decision to repatriate earnings of foreign subsidiaries to the U.S. Because of the transition tax on deemed repatriation required by the TCJA, the Company has been subject to tax in 2018 on the entire amount of its previously undistributed earnings from foreign subsidiaries. Beginning in 2019, the TCJA will generally provide a 100% deduction for U.S. federal tax purposes of dividends received by the Company from its foreign subsidiaries. However, the Company is currently evaluating the potential foreign and U.S. state tax liabilities that would result from future repatriations, if any, and how the TCJA will affect the Company's existing accounting position with regard to the indefinite reinvestment of undistributed foreign earnings. The Company expects to complete this evaluation and determine the impact which the legislation may have on its indefinite reinvestment assertion within the measurement period provided by SAB 118. The TCJA establishes new tax rules designed to tax U.S. companies on global intangible low-taxed income (GILTI) earned by foreign subsidiaries. Because of the complexity of the new GILTI tax rules, the Company is continuing to evaluate this provision of the TCJA. Therefore, the Company has not made any adjustments related to potential GILTI tax in its December 31, 2018 financial statements.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 6 — RELATED PARTY TRANSACTIONS From time to time, Emerson engages in business transactions with its controlling shareholder, Nimble Holdings Company Limited (“Nimble”), formerly known as The Grande Holdings Limited (“Grande”), and one or more of Nimble’s direct and indirect subsidiaries. Controlling Shareholder S&T International Distribution Limited (“S&T”), which is a wholly owned subsidiary of Grande N.A.K.S. Ltd., which is a wholly owned subsidiary of Nimble, collectively have the shared power to vote and direct the disposition of 15,243,283 shares, or approximately 72.4%, of the Company’s outstanding common stock as of December 31, 2018. Accordingly, the Company is a “controlled company” as defined in Section 801(a) of the NYSE American Company Guide. On September 26, 2017, Wealth Warrior Global Limited (“Wealth Warrior”) acquired approximately 65.9% of the outstanding share capital of Nimble from Sino Bright Enterprises Co., Ltd., a company related to the Company’s Chairman of the Board. Based upon disclosures filed by Wealth Warrior on a Schedule 13D on October 10, 2017, as subsequently amended, Wealth Warrior, together with its affiliates, collectively held 73.9% of the outstanding share capital of Nimble as of October 10, 2017. Accordingly, a change of control of the Company was deemed to have occurred as Wealth Warrior may be deemed to be a controlling person of Nimble, and as a result may be deemed to share the power to vote or direct the vote of (and to share the power to dispose or direct the disposition of) the shares of the Company held for the account of S&T. Related Party Transactions Ancillary expenses pertaining to rented office space in Hong Kong During the three and nine months ended December 31, 2018, the Company was billed approximately $5,000 and $5,800 for utility and service charges from Lafe Strategic Services Limited (“LSSL”), which is a company related to the Company’s Chairman of the Board, in connection with the Company’s rented office space in Hong Kong. The Company owed $5,000 to LSSL related to these charges at December 31, 2018. Administrative service fees charged to related parties During the three and nine months ended December 31, 2018, the Company billed approximately $6,000 Security deposit and charges of rental and utility fees on new office space in Hong Kong During the three and nine months ended December 31, 2018, the Company was billed approximately $22,500 and $30,500 for rental and utility fees from Vigers Appraisal and Consulting Ltd (“VACL”), which is a company related to the Company’s Chairman of the Board. During the nine months ended December 31, 2018, a 3 month security deposit of approximately $39,600 was billed from VACL.

Short Term Investments

Short Term Investments	9 Months Ended
	Dec. 31, 2018
Short Term Investments [Abstract]
Short Term Investments	NOTE 7 — SHORT TERM INVESTMENTS At December 31, 2018 and March 31, 2018, the Company held short term investments totaling $14.0 million and $16.0 million, respectively. These investments were comprised of bank certificates of deposit, which bear an interest rate of approximately 3.15% and will mature in February 2019.

Concentration Risk

Concentration Risk	9 Months Ended
	Dec. 31, 2018
Risks And Uncertainties [Abstract]
Concentration Risk	NOTE 8 — CONCENTRATION RISK Customer Concentration For the three months ended December 31, 2018, the Company’s three largest customers accounted for approximately 89% of the Company’s net revenues, of which Walmart accounted for 51%, Amazon accounted for 23% and Fred Meyer accounted for 15%. For the nine months ended December 31, 2018, the Company’s three largest customers accounted for approximately 80% of the Company’s net revenues, of which Walmart accounted for 49%, Amazon accounted for 17% and Fred Meyer accounted for 14%. For the three months ended December 31, 2017, the Company’s three largest customers accounted for approximately 92% of the Company’s net revenues, of which Walmart accounted for 61%, Amazon accounted for 17% and Fred Meyer accounted for 14%. For the nine months ended December 31, 2017, the Company’s three largest customers accounted for approximately 84% of the Company’s net revenues, of which Walmart accounted for 62%, Amazon accounted for 11% and Fred Meyer accounted for 11%. A significant decline in net sales to any of the Company’s key customers would have a material adverse effect on the Company’s business, financial condition and results of operation. Product Concentration For the three and nine months ended December 31, 2018, the Company’s gross product sales were comprised of two product types within two categories — housewares products and audio products, of which microwave ovens generated approximately 30% and 40%, respectively, of the Company’s gross product sales. Audio products generated approximately 67% and 56%, respectively, of the Company’s gross product sales. For the three and nine months ended December 31, 2017, the Company’s gross product sales were comprised of the same two product types within two categories — housewares products and audio products, of which microwave ovens generated approximately 59% and 63%, respectively, of the Company’s gross product sales. Audio products generated approximately 33% and 28%, respectively, of the Company’s gross product sales. Concentrations of Credit Risk As a percent of the Company’s total trade accounts receivable, net of specific reserves, the Company’s top 2 customers accounted for 53% and 46% as of December 31, 2018, respectively. As a percent of the Company’s total trade accounts receivable, net of specific reserves, the Company’s top 2 customers accounted for 64% and 21% as of March 31, 2018, respectively. The Company periodically performs credit evaluations of its customers but generally does not require collateral, and the Company provides for any anticipated credit losses in the financial statements based upon management’s estimates and ongoing reviews of recorded allowances. Due to the high concentration of the Company’s net trade accounts receivables among just two customers, any significant failure by one of these customers to pay the Company the amounts owing against these receivables would result in a material adverse effect on the Company’s business, financial condition and results of operations. Supplier Concentration During the three and nine months ended December 31, 2018, the Company procured approximately 96% and 90% of its products for resale from its two largest factory suppliers, of which 86% and 72%, respectively, was supplied by its largest supplier. During the three and nine months ended December 31, 2017, the Company procured approximately 97% and 93% of its products for resale from its two largest factory suppliers, of which 68% and 63%, respectively, was supplied by its largest supplier.

Background and Basis of Prese_2

Background and Basis of Presentation (Policies)	9 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
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 December 31, 2018 and the results of operations for the three and nine month periods ended December 31, 2018 and December 31, 2017. 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, 2018 (“Fiscal 2018”), included in the Company’s annual report on Form 10-K, as amended, for fiscal 2018.
Recently Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements In May 2014, issued ASU 2014-09 "Revenue from Contracts with Customers", subsequently amended and collectively Topic 606. The standard replaced almost all existing revenue recognition guidance in U.S. GAAP, with the intention to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The core principle of ASC 606 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASC 606 allows for adoption either on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the new guidance recognized at the date of initial application, which became effective for the Company beginning April 1, 2018. The Company adopted ASC 606 in the first quarter of fiscal 2019 on a modified retrospective basis with no changes recognized in the prior year comparative financial statements. The adoption of this standard did not have a material impact on the Company’s financial statements. The Company has enhanced its disclosures of revenue to comply with the new guidance. Recently Issued Accounting Pronouncements The following Accounting Standards Updates (“ASUs”) were issued by the Financial Accounting Standards Board which relate to or could relate to the Company as concerns the Company’s normal ongoing operations or the industry in which the Company operates. Accounting Standards Update 2016-02 “Leases” (Issued February 2016) In February 2016, the FASB issued ASU 2016-02 "Leases" to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 creates a new Accounting Standards Codification Topic 842 "Leases" to replace the previous Topic 840 "Leases." ASU 2016-02 affects both lessees and lessors, although for the latter the provisions are similar to the previous model, but updated to align with certain changes to the lessee model and also the new revenue recognition provisions contained in ASU 2014-09 (see above). ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is assessing the standard to determine if ASU 2016-02 will have a material impact on its financial statements. Accounting Standards Update 2016-13 “Financial Instruments – Credit Losses” (Issued June 2016) In June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses" to introduce new guidance for the accounting for credit losses on instruments within its scope. ASU 2016-13 requires among other things, the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption is permitted. The Company does not expect these amendments to have a material impact on its financial statements.
Revenue Recognition	Revenue recognition : Sales to customers and related cost of sales are primarily recognized at the point in time when control of goods transfers to the customer. Under the Direct Import Program, title passes in the country of origin. Under the Domestic Program, title passes primarily at the time of shipment. Estimates for future expected returns are based upon historical return rates and netted against revenues. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. Revenue is recorded net of customer discounts, promotional allowances, volume rebates and similar charges. When the Company offers the right to return product, historical experience is utilized to establish a liability for the estimate of expected returns. Sales and other tax amounts collected from customers for remittance to governmental authorities are excluded from revenue. Management must make estimates of potential future product returns related to current period product revenue. Management analyzes historical returns, current economic trends and changes in customer demand for the Company’s products when evaluating the adequacy of the reserve for sales returns. Management judgments and estimates must be made and used in connection with establishing the sales return reserves in any accounting period. Additional reserves may be required if actual sales returns increase above the historical return rates. Conversely, the sales return reserve could be decreased if the actual return rates are less than the historical return rates, which were used to establish the reserve. The Company adopted ASC topic 606 effective April 1, 2018. 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. Prior to the adoption of ASC topic 606, the Company followed the provisions of ASC topic 605 in prior periods. The adoption of ASC topic 606 did not have a material impact on revenue recognition as compared to revenue recognition provided under ASC topic 605. 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.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
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). Weighted average shares includes the impact of shares held in treasury. Three Months Ended December 31, Nine Months Ended December 31, 2018 2017 2018 2017 Numerator: Net (loss) $ (529 ) $ (1,171 ) $ (1,974 ) $ (3,103 ) Denominator: Denominator for basic and diluted earnings per share — weighted average shares 21,637 24,299 22,221 25,857 Net (loss) per share: Basic and diluted (loss) per share $ (0.02 ) $ (0.05 ) $ (0.09 ) $ (0.12 )

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Dec. 31, 2018
Inventory Disclosure [Abstract]
Inventory	As of December 31, 2018 and March 31, 2018, inventories consisted of the following (in thousands): December March Finished goods $ 4,618 $ 3,164

Computation of Basic and Dilute

Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Numerator:
Net (loss)	$ (529)	$ (1,171)	$ (1,974)	$ (3,103)
Denominator:
Denominator for basic and diluted earnings per share — weighted average shares	21,637	24,299	22,221	25,857
Net (loss) per share:
Basic and diluted (loss) per share	$ (0.02)	$ (0.05)	$ (0.09)	$ (0.12)

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($)	Jun. 27, 2018	Sep. 30, 2017	Dec. 31, 2018	Jan. 01, 2019	Mar. 31, 2018	Dec. 31, 2016
Equity Class Of Treasury Stock [Line Items]
Options outstanding			0
Warrants outstanding			0
Other potentially dilutive securities outstanding			0
Treasury stock, shares			31,918,642		30,166,709
Cost of shares repurchased under common stock repurchase program			$ 33,194,000		$ 30,583,000
Common Stock
Equity Class Of Treasury Stock [Line Items]
Stock repurchase program, authorized amount		$ 10,000,000
Stock repurchase program, additional authorized repurchase amount		$ 5,000,000
Stock repurchase program, expiration date	Dec. 31, 2018	Jun. 30, 2018
Number of common shares repurchased			1,262,822
Cost of shares repurchased under common stock repurchase program			$ 1,884,474
Common Stock | Common Stock Repurchase Program
Equity Class Of Treasury Stock [Line Items]
Treasury stock, shares			6,082,677
Cost of shares repurchased under common stock repurchase program			$ 8,970,556
Common Stock | Common Stock Repurchase Program | Subsequent Event
Equity Class Of Treasury Stock [Line Items]
Treasury stock, shares				4,503
Cost of shares repurchased under common stock repurchase program				$ 6,540
Common Stock | Maximum
Equity Class Of Treasury Stock [Line Items]
Stock repurchase program, authorized amount						$ 5,000,000

Inventory (Detail)

Inventory (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Mar. 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 4,618	$ 3,164

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Schedule Of Income Taxes [Line Items]
Income (loss) of foreign subsidiaries before taxes	$ 215,000	$ 57,000
Deferred tax valuation allowance against assets	1,080,000		$ 1,080,000
Income tax expense	2,000	$ 378,000	$ 73,000	$ 313,000
Corporate tax rate			21.00%	34.00%
Deduction for U.S. federal tax			100.00%
U.S. federal
Schedule Of Income Taxes [Line Items]
Net operating loss carry forwards, amount	$ 2,300,000		$ 2,300,000
Operating loss carryovers, limitations on use	At December 31, 2018, the Company had $2.3 million of U.S. federal net operating loss (“NOL”) carry forwards. These losses do not expire but are limited to utilization of 80% of taxable income in any one year.
Percentage of NOLs utilization limit against taxable income	80.00%
U.S. federal | Earliest Tax Year
Schedule Of Income Taxes [Line Items]
Open tax years			2,014
U.S. federal | Latest Tax Year
Schedule Of Income Taxes [Line Items]
Open tax years			2,017
States
Schedule Of Income Taxes [Line Items]
Net operating loss carry forwards, amount	$ 9,200,000		$ 9,200,000
States | Earliest Tax Year
Schedule Of Income Taxes [Line Items]
Open tax years			2,013
States | Latest Tax Year
Schedule Of Income Taxes [Line Items]
Open tax years			2,017

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Oct. 10, 2017	Sep. 26, 2017
Related Party Transaction [Line Items]
Utility and service charges	$ 2,358,000	$ 4,046,000	$ 7,003,000	$ 10,292,000
Nimble Holding Company Limited
Related Party Transaction [Line Items]
Nimble's Ownership Interest in Emerson number of shares	15,243,283		15,243,283
Nimble's Ownership Interest Percentage	72.40%		72.40%
Nimble Holding Company Limited | Wealth Warrior Global Limited
Related Party Transaction [Line Items]
Percentage of outstanding shares acquired						65.90%
Nimble Holding Company Limited | Wealth Warrior Global Limited and its Affiliates
Related Party Transaction [Line Items]
Related party ownership percentage					73.90%
LSSL
Related Party Transaction [Line Items]
Due to related parties for utility and service charges	$ 5,000		$ 5,000
LSSL | Utility and Service
Related Party Transaction [Line Items]
Utility and service charges	5,000		5,800
PAL, SARC and TICL
Related Party Transaction [Line Items]
Administrative service fees charged to related parties	6,000		17,000
PAL
Related Party Transaction [Line Items]
Due from related parties	0		0
SARC
Related Party Transaction [Line Items]
Due from related parties	0		0
TICL
Related Party Transaction [Line Items]
Due from related parties	0		0
VACL
Related Party Transaction [Line Items]
Due from related parties	0		0
Advanced payment of rental and utility fees from related parties	$ 22,500		30,500
Security deposit from related parties			$ 39,600

Short Term Investments - Additi

Short Term Investments - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2018	Mar. 31, 2018
Investments Schedule [Abstract]
Short term investments	$ 14,031	$ 16,000
Bank certificates of deposit interest bearing rate	3.15%
Bank certificates of deposit maturity month and year	2019-02

Concentration Risk - Additional

Concentration Risk - Additional Information (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Mar. 31, 2018
Customer Concentration Risk | Net Revenues
Concentration Risk [Line Items]
Concentration risk, percentage	89.00%	92.00%	80.00%	84.00%
Customer Concentration Risk | Net Revenues | Walmart
Concentration Risk [Line Items]
Concentration risk, percentage	51.00%	61.00%	49.00%	62.00%
Customer Concentration Risk | Net Revenues | Amazon.com
Concentration Risk [Line Items]
Concentration risk, percentage	23.00%	17.00%	17.00%	11.00%
Customer Concentration Risk | Net Revenues | Fred Meyer
Concentration Risk [Line Items]
Concentration risk, percentage	15.00%	14.00%	14.00%	11.00%
Product Concentration Risk | Net Revenues | Microwave Ovens
Concentration Risk [Line Items]
Concentration risk, percentage	30.00%	59.00%	40.00%	63.00%
Product Concentration Risk | Net Revenues | Audio Products
Concentration Risk [Line Items]
Concentration risk, percentage	67.00%	33.00%	56.00%	28.00%
Credit Concentration Risk | Accounts Receivable | Customer One
Concentration Risk [Line Items]
Concentration risk, percentage			53.00%		64.00%
Credit Concentration Risk | Accounts Receivable | Customer Two
Concentration Risk [Line Items]
Concentration risk, percentage			46.00%		21.00%
Supplier Concentration Risk | Products for Resale
Concentration Risk [Line Items]
Concentration risk, percentage	86.00%	68.00%	72.00%	63.00%
Supplier Concentration Risk | Products for Resale | Two Largest Factory Suppliers
Concentration Risk [Line Items]
Concentration risk, percentage	96.00%	97.00%	90.00%	93.00%