Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Nov. 29, 2014 | Jan. 05, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 29-Nov-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | RELL | |
Entity Registrant Name | RICHARDSON ELECTRONICS LTD/DE | |
Entity Central Index Key | 355948 | |
Current Fiscal Year End Date | -25 | |
Entity Filer Category | Accelerated Filer | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,651,679 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,140,644 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Nov. 29, 2014 | 31-May-14 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $89,886 | $102,752 |
Accounts receivable, less allowance of $488 and $581 | 17,625 | 18,354 |
Inventories | 37,122 | 33,869 |
Prepaid expenses and other assets | 1,914 | 1,089 |
Deferred income taxes | 1,604 | 1,537 |
Income tax receivable | 0 | 2,888 |
Investments—current | 23,395 | 31,732 |
Discontinued operations—assets | 0 | 18 |
Total current assets | 171,546 | 192,239 |
Non-current assets: | ||
Property, plant and equipment, net | 8,352 | 7,223 |
Other intangibles | 790 | 843 |
Non-current deferred income taxes | 1,570 | 1,724 |
Investments—non-current | 12,028 | 1,516 |
Total non-current assets | 22,740 | 11,306 |
Total assets | 194,286 | 203,545 |
Current liabilities: | ||
Accounts payable | 13,523 | 12,337 |
Accrued liabilities | 7,862 | 9,220 |
Discontinued operations—liabilities | 0 | 7 |
Total current liabilities | 21,385 | 21,564 |
Non-current liabilities: | ||
Long-term income tax liabilities | 5,572 | 5,691 |
Other non-current liabilities | 1,174 | 1,315 |
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | 0 | 130 |
Total non-current liabilities | 6,746 | 7,136 |
Total liabilities | 28,131 | 28,700 |
Commitments and contingencies | 0 | 0 |
Stockholders’ equity | ||
Preferred stock, $1.00 par value, no shares issued | ||
Additional paid-in capital | 64,228 | 66,141 |
Common stock in treasury, at cost, 6 shares at November 29, 2014, and 1 share at May 31, 2014 | -57 | -14 |
Retained earnings | 95,174 | 97,959 |
Accumulated other comprehensive income | 6,120 | 10,057 |
Total stockholders’ equity | 166,155 | 174,845 |
Total liabilities and stockholders’ equity | 194,286 | 203,545 |
Common Stock | ||
Stockholders’ equity | ||
Common stock | 583 | 592 |
Class B Common Stock | ||
Stockholders’ equity | ||
Common stock | $107 | $110 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Nov. 29, 2014 | 31-May-14 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance | $488 | $581 |
Preferred stock, par value | $1 | $1 |
Preferred stock, shares issued | 0 | 0 |
Common stock in treasury | 6 | 1 |
Common Stock | ||
Common stock, par value | $0.05 | $0.05 |
Common stock, shares issued | 11,667 | 11,835 |
Class B Common Stock | ||
Common stock, par value | $0.05 | $0.05 |
Common stock, shares issued | 2,141 | 2,191 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
Nov. 29, 2014 | Nov. 30, 2013 | Nov. 29, 2014 | Nov. 30, 2013 | |
Net Sales | $33,841,000 | $35,436,000 | $68,540,000 | $69,693,000 |
Cost of Sales | 23,379,000 | 24,429,000 | 47,420,000 | 48,494,000 |
Gross profit | 10,462,000 | 11,007,000 | 21,120,000 | 21,199,000 |
Selling, general, and administrative expenses | 12,621,000 | 10,473,000 | 23,803,000 | 20,542,000 |
Loss on disposal of assets | 0 | 0 | 9,000 | 0 |
Operating income (loss) | -2,159,000 | 534,000 | -2,692,000 | 657,000 |
Other (income) expense: | ||||
Investment/interest income | -249,000 | -255,000 | -505,000 | -520,000 |
Foreign exchange (gain) loss | 47,000 | -14,000 | -10,000 | 92,000 |
Other, net | -14,000 | 15,000 | -16,000 | -15,000 |
Total other income | -216,000 | -254,000 | -531,000 | -2,558,000 |
Income (loss) from continuing operations before income taxes | -1,943,000 | 788,000 | -2,161,000 | 3,215,000 |
Income tax provision (benefit) | -799,000 | 157,000 | -934,000 | 605,000 |
Income (loss) from continuing operations | -1,144,000 | 631,000 | -1,227,000 | 2,610,000 |
Income (loss) from discontinued operations, net of tax | 87,000 | -107,000 | 87,000 | -118,000 |
Net income (loss) | -1,057,000 | 524,000 | -1,140,000 | 2,492,000 |
Foreign currency translation gain (loss), net of tax | -2,993,000 | 1,196,000 | -3,961,000 | 1,621,000 |
Fair value adjustments on investments | 0 | 22,000 | 25,000 | 23,000 |
Comprehensive income (loss) | -4,050,000 | 1,742,000 | -5,076,000 | 4,136,000 |
Common Stock | ||||
Other (income) expense: | ||||
Net income (loss) | ||||
Foreign currency translation gain (loss), net of tax | ||||
Fair value adjustments on investments | ||||
Net income per common share-Basic: | ||||
Income from continuing operations | ($0.08) | $0.05 | ($0.09) | $0.19 |
Income (loss) from discontinued operations | $0.01 | ($0.01) | $0.01 | ($0.01) |
Total net income per common share-Basic: | ($0.07) | $0.04 | ($0.08) | $0.18 |
Net income per Common share - Diluted: | ||||
Income from continuing operations | ($0.08) | $0.04 | ($0.09) | $0.18 |
Income (loss) from discontinued operations | $0.01 | ($0.01) | $0.01 | ($0.01) |
Total net income per Common share - Diluted: | ($0.07) | $0.03 | ($0.08) | $0.17 |
Weighted average number of shares: | ||||
Common shares - Basic | 11,770,000 | 11,871,000 | 11,797,000 | 11,997,000 |
Common shares - Diluted | 11,770,000 | 14,185,000 | 11,797,000 | 14,433,000 |
Dividends per common share | $0.06 | $0.06 | $0.12 | $0.12 |
Class B Common Stock | ||||
Net income per common share-Basic: | ||||
Income from continuing operations | ($0.07) | $0.04 | ($0.08) | $0.17 |
Income (loss) from discontinued operations | $0.01 | ($0.01) | $0.01 | ($0.01) |
Total net income per common share-Basic: | ($0.06) | $0.03 | ($0.07) | $0.16 |
Net income per Common share - Diluted: | ||||
Income from continuing operations | ($0.07) | $0.04 | ($0.08) | $0.17 |
Income (loss) from discontinued operations | $0.01 | ($0.01) | $0.01 | ($0.01) |
Total net income per Common share - Diluted: | ($0.06) | $0.03 | ($0.07) | $0.16 |
Weighted average number of shares: | ||||
Common shares - Basic | 2,141,000 | 2,191,000 | 2,161,000 | 2,309,000 |
Common shares - Diluted | 2,141,000 | 2,191,000 | 2,161,000 | 2,309,000 |
Dividends per common share | $0.05 | $0.05 | $0.11 | $0.11 |
Anti-trust class action lawsuit settlement [Domain] | ||||
Other (income) expense: | ||||
Other, net | $0 | $0 | $0 | ($2,115,000) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 29, 2014 | Nov. 30, 2013 | Nov. 29, 2014 | Nov. 30, 2013 |
Operating activities: | ||||
Net income (loss) | ($1,057) | $524 | ($1,140) | $2,492 |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 443 | 273 | 809 | 521 |
Gain on sale of investments | -6 | -12 | -9 | -19 |
(Gain) loss on disposal of assets | -26 | 0 | -26 | 0 |
Share-based compensation expense | 266 | 270 | 386 | 384 |
Deferred income taxes | -88 | -108 | -167 | -167 |
Change in assets and liabilities, net of effect of acquired businesses: | ||||
Accounts receivable | 78 | -508 | -294 | -1,726 |
Income tax receivable | 580 | 357 | 2,888 | 3,108 |
Inventories | -2,151 | 310 | -4,261 | -140 |
Prepaid expenses and other assets | -1,038 | -430 | -903 | -274 |
Accounts payable | 1,388 | 317 | 1,489 | -2,230 |
Accrued liabilities | -439 | -565 | -1,101 | -2,455 |
Long-term income tax liabilities | 0 | -235 | 0 | -477 |
Other | 42 | 56 | -7 | 47 |
Net cash provided by (used in) operating activities | -2,008 | 249 | -2,336 | -936 |
Investing activities: | ||||
Cash consideration paid for acquired businesses | 0 | 0 | 0 | -973 |
Capital expenditures | -1,102 | -540 | -1,936 | -981 |
Proceeds from maturity of investments | 725 | 14,044 | 31,207 | 54,532 |
Purchases of investments | -981 | -11,458 | -33,343 | -51,552 |
Proceeds from sales of available-for-sale securities | 37 | 20 | 74 | 76 |
Purchases of available-for-sale securities | -37 | -20 | -74 | -76 |
Other | -2 | 22 | -30 | 91 |
Net cash provided by (used in) investing activities | -1,360 | 2,068 | -4,102 | 1,117 |
Financing activities: | ||||
Repurchase of common stock | -2,151 | -2,025 | -2,640 | -8,725 |
Proceeds from issuance of common stock | 130 | 100 | 288 | 171 |
Cash dividends paid | -817 | -828 | -1,645 | -1,685 |
Other | -4 | 0 | -2 | 1 |
Net cash used in financing activities | -2,842 | -2,753 | -3,999 | -10,238 |
Effect of exchange rate changes on cash and cash equivalents | -1,988 | 552 | -2,429 | 701 |
Increase/ (decrease) in cash and cash equivalents | -8,198 | 116 | -12,866 | -9,356 |
Cash and cash equivalents at beginning of period | 98,084 | 92,530 | 102,752 | 102,002 |
Cash and cash equivalents at end of period | $89,886 | $92,646 | $89,886 | $92,646 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Class B Common Stock | Common Stock | Class B Common Stock | Par Value | Additional Paid-in Capital | Common Stock in Treasury | Retained Earnings | Retained Earnings | Retained Earnings | Accumulated Other Comprehensive Income (loss) |
Share data in Thousands, unless otherwise specified | Common Stock | Class B Common Stock | ||||||||||
Beginning Balance at May. 31, 2014 | $174,845,000 | $702,000 | $66,141,000 | ($14,000) | $97,959,000 | $10,057,000 | ||||||
Beginning Balance (in shares) at May. 31, 2014 | 11,835 | 2,191 | ||||||||||
Net income (loss) | -1,140,000 | -1,140,000 | ||||||||||
Foreign currency translation | -3,961,000 | -3,961,000 | ||||||||||
Fair value adjustments on investments | 25,000 | 25,000 | ||||||||||
Share-based compensation: | ||||||||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 0 | 0 | ||||||||||
Stock options | 385,000 | 385,000 | ||||||||||
Common stock: | ||||||||||||
Options Exercised, in shares | 44 | |||||||||||
Options Exercised | 288,000 | 2,000 | 286,000 | |||||||||
Canceled Shares | -50 | |||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 50 | |||||||||||
Repurchase of common stock | -2,640,000 | -2,640,000 | ||||||||||
Treasury Stock, Shares, Acquired | -261 | |||||||||||
Treasury stock | 0 | -13,000 | -2,584,000 | 2,597,000 | ||||||||
Stockholders' Equity, Other Shares | -1 | |||||||||||
Other | -2,000 | -1,000 | 0 | -1,000 | ||||||||
Dividends paid | ||||||||||||
Dividends declared to common stock | -1,411,000 | -234,000 | -1,411,000 | -234,000 | ||||||||
Ending Balance at Nov. 29, 2014 | $166,155,000 | $690,000 | $64,228,000 | ($57,000) | $95,174,000 | $6,120,000 | ||||||
Ending Balance (in shares) at Nov. 29, 2014 | 11,667 | 2,141 |
Consolidated_Statement_of_Stoc1
Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $) | 6 Months Ended |
Nov. 29, 2014 | |
Common Stock | |
Dividends per common share | $0.12 |
Class B Common Stock | |
Dividends per common share | $0.11 |
DESCRIPTION_OF_THE_COMPANY
DESCRIPTION OF THE COMPANY | 6 Months Ended |
Nov. 29, 2014 | |
DESCRIPTION OF THE COMPANY | DESCRIPTION OF THE COMPANY |
Richardson Electronics, Ltd. (“we”, “us”, “the Company”, and “our”) is incorporated in the state of Delaware. We are a leading global provider of engineered solutions, power grid and microwave tubes and related components, and customized display solutions, serving customers in the alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. Our strategy is to provide specialized technical expertise and “engineered solutions” based on our core engineering and manufacturing capabilities. We provide solutions and add value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair. | |
Our products include electron tubes and related components, microwave generators, subsystems used in semiconductor manufacturing, and visual technology solutions. These products are used to control, switch or amplify electrical power signals, or are used as display devices in a variety of industrial, commercial, medical, and communication applications. | |
During the first quarter of fiscal 2015, we created a new strategic business unit called Richardson Healthcare (“Healthcare”). As hospitals remain under pressure to reduce costs while serving a much larger customer base, there is a growing demand for independent sources of high value replacement parts for diagnostic imaging. Having access to parts that are tested and in stock enables hospitals to terminate expensive service contracts with the Original Equipment Manufacturers ("OEM") and instead use third party service providers or in-house technicians. With our global infrastructure, technical sales team, and experience servicing the healthcare market, we are well positioned to take advantage of this market opportunity. Over time we will expand our position from being the leader in power grid tubes to a key player in the high growth, high profile healthcare industry. | |
We have three operating segments, which we define as follows: | |
Electron Device Group (“EDG”) provides engineered solutions and distributes electronic components to customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. EDG focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. EDG also offers its customers technical services for both microwave and industrial equipment. | |
Canvys provides customized display solutions serving the corporate enterprise, financial, industrial, and OEM markets. | |
Healthcare manufactures, distributes and services high value replacement parts for the healthcare market including hospitals, medical centers, independent service organizations, and multi-vendor service providers. Products include power grid tubes, hydrogen thyratrons, klystrons, magnetrons; Image Systems medical displays and workstations for picture archiving and communication systems ("PACS"); visual solutions for operating rooms/surgical environments; digital radiography solutions including replacement flat panel detectors and upgrades; and additional replacement components currently under development for the diagnostic imaging service market. Through a combination of newly developed products and partnerships, service offerings, and training programs we help our customers improve efficiency and deliver better clinical outcomes while lowering the cost of healthcare delivery. | |
We currently have operations in the following major geographic regions: North America, Asia/Pacific, Europe, and Latin America. |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Nov. 29, 2014 | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION |
The accompanying unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by GAAP for complete financial statements. | |
Our fiscal quarter ends on the Saturday nearest the end of the quarter-ending month. The first six months of fiscal 2015 and 2014 contained 26 weeks, respectively. | |
In the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results of interim periods have been made. All inter-company transactions and balances have been eliminated. The unaudited consolidated financial statements presented herein include the accounts of our wholly owned subsidiaries. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The results of our operations for the three and six months ended November 29, 2014, are not necessarily indicative of the results that may be expected for the fiscal year ending May 30, 2015. | |
Due to the change in our healthcare business model, the financial results for our healthcare business that were part of our Canvys segment will now be part of our Healthcare segment. All prior period segment financial results have been revised to reflect this change. | |
The financial information contained in this report should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended May 31, 2014, that we filed on July 25, 2014. |
UPDATES_TO_CRITICAL_ACCOUNTING
UPDATES TO CRITICAL ACCOUNTING POLICIES AND ESTIMATES | 6 Months Ended |
Nov. 29, 2014 | |
UPDATES TO CRITICAL ACCOUNTING POLICIES AND ESTIMATES | CRITICAL ACCOUNTING POLICIES AND ESTIMATES |
Inventories: Our worldwide inventories are stated at the lower of cost or market, generally using a weighted-average cost method. Our inventories from continuing operations include approximately $33.4 million of finished goods and $3.7 million of raw materials and work-in-progress as of November 29, 2014, as compared to approximately $30.9 million of finished goods and $3.0 million of raw materials and work-in-progress as of May 31, 2014. At this time, we do not anticipate any material risks or uncertainties related to possible future inventory write-downs. | |
Revenue Recognition: Our product sales are recognized as revenue upon shipment, when title passes to the customer, when delivery has occurred or services have been rendered, and when collectability is reasonably assured. We also record estimated discounts and returns based on our historical experience. | |
Loss Contingencies: We accrue a liability for loss contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. If we determine that there is at least a reasonable possibility that a loss may have been incurred, we will include a disclosure describing the contingency. | |
Other Intangible Assets: Intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized on a straight-line basis over their useful lives. | |
New Accounting Pronouncements: In May 2014, the FASB and the International Accounting Standards Board ("IASB") issued new joint guidance surrounding revenue recognition. Under U.S. generally accepted accounting principles ("US GAAP"), this guidance is being introduced to the ASC as Topic 606, Revenue from Contracts with Customers ("Topic 606"), by Accounting Standards Update No. 2014-09 ("ASU 2014-09"). The new standard supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to use more judgment and make more estimates while recognizing revenue, which could result in additional disclosures to the financial statements. Topic 606 allows for either a "full retrospective" adoption or a "modified retrospective" adoption. The standard is effective for us in our fiscal year 2018. We are currently evaluating which method we will use and the revenue recognition impact this guidance will have once implemented. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended | |||||||||||||||
Nov. 29, 2014 | ||||||||||||||||
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS | |||||||||||||||
During fiscal year 2011, we completed the sale of the assets primarily used or held for use in, and certain liabilities of, our RF, Wireless and Power Division ("RFPD"), as well as certain other Company assets, including our information technology assets, to Arrow Electronics, Inc. ("Arrow") in exchange for $238.8 million ("the Transaction"). In accordance with Accounting Standards Codification (“ASC”) 205-20, Presentation of Financial Statements - Discontinued Operations (“ASC 205-20”), we reported the financial results of RFPD as a discontinued operation. | ||||||||||||||||
Financial Summary – Discontinued Operations | ||||||||||||||||
Summary financial results for the three and six months ended November 29, 2014, and November 30, 2013, are presented in the following table (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
29-Nov-14 | 30-Nov-13 | 29-Nov-14 | 30-Nov-13 | |||||||||||||
Net sales | $ | — | $ | 178 | $ | — | $ | 264 | ||||||||
Gross profit (loss) (1) | — | (55 | ) | — | (103 | ) | ||||||||||
Selling, general, and administrative expenses (2) | — | 117 | — | 149 | ||||||||||||
Other expense | — | — | — | 1 | ||||||||||||
Income tax benefit (3) | (87 | ) | (65 | ) | (87 | ) | (135 | ) | ||||||||
Income (Loss) from discontinued operations, net of tax | $ | 87 | $ | (107 | ) | $ | 87 | $ | (118 | ) | ||||||
Notes: | ||||||||||||||||
(1) Gross profit (loss) for fiscal year 2014 includes unabsorbed manufacturing labor and overhead expenses related to the Manufacturing Agreement with RFPD which ended March 1, 2014. | ||||||||||||||||
(2) Selling, General, and Administrative expenses relate primarily to professional fees for tax audits resulting from the Transaction. | ||||||||||||||||
(3) Income tax benefit relates to the reversal of tax reserves. | ||||||||||||||||
Net sales and gross profit (loss) for the three and six months ended November 30, 2013, reflect our financial results relating to the Manufacturing Agreement with Arrow that we entered into in connection with the Transaction. The Manufacturing Agreement ended on March 1, 2014. | ||||||||||||||||
Assets and liabilities classified as discontinued operations on our consolidated balance sheets as of November 29, 2014, and May 31, 2014, include the following (in thousands): | ||||||||||||||||
November 29, 2014 | May 31, 2014 | |||||||||||||||
Inventories | $ | — | $ | 18 | ||||||||||||
Discontinued operations - Assets | $ | — | $ | 18 | ||||||||||||
Accrued liabilities - current | $ | — | $ | 7 | ||||||||||||
Accrued liabilities - non-current | — | 130 | ||||||||||||||
Discontinued operations - Liabilities | $ | — | $ | 137 | ||||||||||||
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended | |||||||
Nov. 29, 2014 | ||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | OTHER INTANGIBLE ASSETS | |||||||
Intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized on a straight-line basis over their useful lives. | ||||||||
Our intangible assets represent the fair value for trade name, customer relationships, and non-compete agreements acquired in connection with our acquisitions. | ||||||||
Intangible assets subject to amortization as well as amortization expense are as follows (in thousands): | ||||||||
Intangible Assets Subject to | ||||||||
Amortization as of | ||||||||
November 29, 2014 | May 31, 2014 | |||||||
Gross Amounts: | ||||||||
Trade Name | $ | 29 | $ | 29 | ||||
Customer Relationship (1) | 959 | 977 | ||||||
Non-compete Agreements | 47 | 47 | ||||||
Total Gross Amounts | $ | 1,035 | $ | 1,053 | ||||
Accumulated Amortization: | ||||||||
Trade Name | $ | 23 | $ | 18 | ||||
Customer Relationship | 204 | 178 | ||||||
Non-compete Agreements | 18 | 14 | ||||||
Total Accumulated Amortization | $ | 245 | $ | 210 | ||||
(1) Change from prior periods reflect impact of foreign currency translation. | ||||||||
The amortization expense associated with the intangible assets subject to amortization for the next five years is presented in the following table (in thousands): | ||||||||
Amortization | ||||||||
Expense | ||||||||
Fiscal Year | ||||||||
Remaining 2015 | $ | 41 | ||||||
2016 | 67 | |||||||
2017 | 57 | |||||||
2018 | 56 | |||||||
2019 | 46 | |||||||
Thereafter | 523 | |||||||
The weighted average number of years of amortization expense remaining is 17.4. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Nov. 29, 2014 | |
INVESTMENTS | INVESTMENTS |
As of November 29, 2014, we had approximately $34.9 million invested in time deposits and certificates of deposit (“CD”). $23.4 million of this amount matures in less than twelve months and $11.5 million matures in greater than twelve months. The fair value of these investments is equal to the face value of each time deposit and CD. | |
As of May 31, 2014, we had approximately $32.7 million invested in time deposits and CD’s. $31.7 million of this amount matures in less than twelve months and $1.0 million matures in greater than twelve months. The fair value of these investments is equal to the face value of each time deposit and CD. | |
We also have investments in equity securities, all of which are classified as available-for-sale and are carried at their fair value based on quoted market prices. Our equity investments, which are included in non-current assets, had a carrying amount of $0.6 million as of November 29, 2014, compared to $0.5 million as of May 31, 2014. Proceeds from the sale of securities were less than $0.1 million during the second quarter of fiscal 2015 compared to $0.1 million during the second quarter of fiscal 2014. We reinvested proceeds from the sale of securities, and the cost of the equity securities sold was based on a specific identification method. Gross realized gains and losses on those sales were less than $0.1 million during the second quarter of fiscal 2015 and fiscal 2014. Net unrealized holding losses of less than $0.1 million during the second quarter of fiscal 2015 and fiscal 2014 have been included in accumulated other comprehensive income (loss). |
WARRANTIES
WARRANTIES | 6 Months Ended |
Nov. 29, 2014 | |
WARRANTIES | WARRANTIES |
We offer warranties for the limited number of specific products we manufacture. We also provide extended warranties for some products we sell that lengthen the period of coverage specified in the manufacturer’s original warranty. Our warranty terms generally range from one to three years. | |
Warranty reserves are established for costs that are expected to be incurred after the sale and delivery of products under warranty. Warranty reserves are included in accrued liabilities on our consolidated balance sheets. The warranty reserves are determined based on known product failures, historical experience, and other available evidence. Warranty reserves were approximately $0.2 million as of November 29, 2014, and May 31, 2014. |
LEASE_OBLIGATIONS_OTHER_COMMIT
LEASE OBLIGATIONS, OTHER COMMITMENTS, AND CONTINGENCIES | 6 Months Ended | |||
Nov. 29, 2014 | ||||
LEASE OBLIGATIONS, OTHER COMMITMENTS, AND CONTINGENCIES | LEASE OBLIGATIONS, OTHER COMMITMENTS, AND CONTINGENCIES | |||
We lease certain warehouse and office facilities and office equipment under non-cancelable operating leases. Rent expense from continuing operations during the first six months of fiscal 2015 was $0.8 million compared to $0.8 million during the first six months of fiscal 2014. Under the terms of the Transaction, Arrow assumed many of our facility leases and we are sub-leasing space from Arrow. Our future lease commitments for minimum rentals, including common area maintenance charges and property taxes during the next five years have been adjusted to reflect the Transaction as follows (in thousands): | ||||
Fiscal Year | Payments | |||
Remaining 2015 | $ | 692 | ||
2016 | 703 | |||
2017 | 150 | |||
2018 | 95 | |||
2019 | 66 | |||
Thereafter | 55 | |||
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Nov. 29, 2014 | |
INCOME TAXES | INCOME TAXES |
The effective income tax rate from continuing operations during the first six months of fiscal 2015 was a tax benefit of 43.1%, as compared to a tax provision of 18.8% during the first six months of fiscal 2014. The difference in rate during the first six months of fiscal 2015, as compared to the first six months of fiscal 2014, reflects the impact of tax benefit on the six month loss for fiscal 2015, the deferred tax impact of the change in the statutory tax rate in Japan during the first six months of fiscal 2015, the reduction in uncertain tax positions as a result of settling an income tax audit in Italy, and the recording of a tax benefit related to compensation expense. The 43.1% effective rate differs from the federal statutory rate of 34.0% as a result of our geographical distribution of income, the deferred tax impact of the change in the statutory tax rate in Japan, the reduction in uncertain tax positions as a result of settling an income tax audit in Italy, the recording of a tax benefit related to compensation expense, and our position with respect to ASC 740-30, Income Taxes – Other Considerations or Special Areas ("ASC 740-30"). | |
In the normal course of business, we are subject to examination by taxing authorities throughout the world. Generally, years prior to fiscal 2007 are closed for examination under the statute of limitations for U.S. federal, U.S. state and local, and non-U.S. tax jurisdictions. We are also currently under examination in Germany (fiscal 2008 through 2010) and Thailand (fiscal 2008 through 2011). Our primary foreign tax jurisdictions are Germany and the Netherlands. We have tax years open in Germany beginning in fiscal 2007 and the Netherlands beginning in fiscal 2009. | |
We have historically determined that certain undistributed earnings of our foreign subsidiaries, to the extent of cash available, will be repatriated to the U.S. Accordingly, we have provided a deferred tax liability totally $6.1 million as of November 29, 2014, on foreign earnings of $39.7 million. In addition, as of November 29, 2014, approximately $40.8 million of cumulative positive earnings of some of our foreign subsidiaries are still considered permanently reinvested pursuant to ASC 740-30. Due to various tax attributes that are continuously changing, it is not practical to determine what, if any, tax liability might exist if such earnings were to be repatriated. | |
We have no liability recorded in any tax jurisdiction for uncertain tax positions related to continuing operations as of November 29, 2014, and November 30, 2013. | |
It is not expected that there will be a change in the unrecognized tax benefits within the next 12 months. |
CALCULATION_OF_EARNINGS_PER_SH
CALCULATION OF EARNINGS PER SHARE | 6 Months Ended | |||||||||||||||
Nov. 29, 2014 | ||||||||||||||||
CALCULATION OF EARNINGS PER SHARE | CALCULATION OF EARNINGS PER SHARE | |||||||||||||||
We have authorized 17,000,000 shares of common stock and 3,000,000 shares of Class B common stock. The Class B common stock has 10 votes per share and has transferability restrictions; however, Class B common stock may be converted into common stock on a share-for-share basis at any time. With respect to dividends and distributions, shares of common stock and Class B common stock rank equally and have the same rights, except that Class B common stock cash dividends are limited to 90% of the amount of Class A common stock cash dividends. | ||||||||||||||||
In accordance with ASC 260-10, Earnings Per Share (“ASC 260”), our Class B common stock is considered a participating security requiring the use of the two-class method for the computation of basic and diluted earnings per share. The two-class computation method for each period reflects the cash dividends paid per share for each class of stock, plus the amount of allocated undistributed earnings per share computed using the participation percentage which reflects the dividend rights of each class of stock. Basic and diluted earnings per share were computed using the two-class method as prescribed in ASC 260. The shares of Class B common stock are considered to be participating convertible securities since the shares of Class B common stock are convertible on a share-for-share basis into shares of common stock and may participate in dividends with common stock according to a predetermined formula which is 90% of the amount of Class A common stock cash dividends. | ||||||||||||||||
The earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive income (loss) are based on the following amounts (in thousands, except per share amounts): | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
November 29, 2014 | November 30, 2013 | |||||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||||
Numerator for Basic and Diluted EPS: | ||||||||||||||||
Income (loss) from continuing operations | $ | (1,144 | ) | $ | (1,144 | ) | $ | 631 | $ | 631 | ||||||
Less dividends: | ||||||||||||||||
Common stock | 701 | 701 | 710 | 710 | ||||||||||||
Class B common stock | 116 | 116 | 118 | 118 | ||||||||||||
Undistributed losses | $ | (1,961 | ) | $ | (1,961 | ) | $ | (197 | ) | $ | (197 | ) | ||||
Common stock undistributed losses | $ | (1,685 | ) | $ | (1,685 | ) | $ | (169 | ) | $ | (169 | ) | ||||
Class B common stock undistributed losses | (276 | ) | (276 | ) | (28 | ) | (28 | ) | ||||||||
Total undistributed losses | $ | (1,961 | ) | $ | (1,961 | ) | $ | (197 | ) | $ | (197 | ) | ||||
Income (loss) from discontinued operations | $ | 87 | $ | 87 | $ | (107 | ) | $ | (107 | ) | ||||||
Less dividends: | ||||||||||||||||
Common stock | 701 | 701 | 710 | 710 | ||||||||||||
Class B common stock | 116 | 116 | 118 | 118 | ||||||||||||
Undistributed losses | $ | (730 | ) | $ | (730 | ) | $ | (935 | ) | $ | (935 | ) | ||||
Common stock undistributed losses | $ | (627 | ) | $ | (627 | ) | $ | (802 | ) | $ | (803 | ) | ||||
Class B common stock undistributed losses | (103 | ) | (103 | ) | (133 | ) | (132 | ) | ||||||||
Total undistributed losses | $ | (730 | ) | $ | (730 | ) | $ | (935 | ) | $ | (935 | ) | ||||
Net income (loss) | $ | (1,057 | ) | $ | (1,057 | ) | $ | 524 | $ | 524 | ||||||
Less dividends: | ||||||||||||||||
Common stock | 701 | 701 | 710 | 710 | ||||||||||||
Class B common stock | 116 | 116 | 118 | 118 | ||||||||||||
Undistributed losses | $ | (1,874 | ) | $ | (1,874 | ) | $ | (304 | ) | $ | (304 | ) | ||||
Common stock undistributed losses | $ | (1,610 | ) | $ | (1,610 | ) | $ | (261 | ) | $ | (261 | ) | ||||
Class B common stock undistributed losses | (264 | ) | (264 | ) | (43 | ) | (43 | ) | ||||||||
Total undistributed losses | $ | (1,874 | ) | $ | (1,874 | ) | $ | (304 | ) | $ | (304 | ) | ||||
Denominator for basic and diluted EPS: | ||||||||||||||||
Common stock weighted average shares | 11,770 | 11,770 | 11,871 | 11,871 | ||||||||||||
Class B common stock weighted average shares, | 2,141 | 2,141 | 2,191 | 2,191 | ||||||||||||
and shares under if-converted method for | ||||||||||||||||
diluted EPS | ||||||||||||||||
Effect of dilutive stock options | — | 123 | ||||||||||||||
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions | 13,911 | 14,185 | ||||||||||||||
Income (loss) from continuing operations per share: | ||||||||||||||||
Common stock | $ | (0.08 | ) | $ | (0.08 | ) | $ | 0.05 | $ | 0.04 | ||||||
Class B common stock | $ | (0.07 | ) | $ | (0.07 | ) | $ | 0.04 | $ | 0.04 | ||||||
Income (loss) from discontinued operations per share: | ||||||||||||||||
Common stock | $ | 0.01 | $ | 0.01 | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
Class B common stock | $ | 0.01 | $ | 0.01 | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
Net income (loss) per share: | ||||||||||||||||
Common stock | $ | (0.07 | ) | $ | (0.07 | ) | $ | 0.04 | $ | 0.03 | ||||||
Class B common stock | $ | (0.06 | ) | $ | (0.06 | ) | $ | 0.03 | $ | 0.03 | ||||||
Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the second quarter of fiscal 2015 and fiscal 2014 were 666,564 and 512,064, respectively. | ||||||||||||||||
Six Months Ended | ||||||||||||||||
November 29, 2014 | November 30, 2013 | |||||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||||
Numerator for Basic and Diluted EPS: | ||||||||||||||||
Income (loss) from continuing operations | $ | (1,227 | ) | $ | (1,227 | ) | $ | 2,610 | $ | 2,610 | ||||||
Less dividends: | ||||||||||||||||
Common stock | 1,411 | 1,411 | 1,433 | 1,433 | ||||||||||||
Class B common stock | 234 | 234 | 252 | 252 | ||||||||||||
Undistributed earnings (losses) | $ | (2,872 | ) | $ | (2,872 | ) | $ | 925 | $ | 925 | ||||||
Common stock undistributed earnings (losses) | $ | (2,466 | ) | $ | (2,466 | ) | $ | 788 | $ | 790 | ||||||
Class B common stock undistributed earnings (losses) | (406 | ) | (406 | ) | 137 | 135 | ||||||||||
Total undistributed earnings (losses) | $ | (2,872 | ) | $ | (2,872 | ) | $ | 925 | $ | 925 | ||||||
Income (loss) from discontinued operations | $ | 87 | $ | 87 | $ | (118 | ) | $ | (118 | ) | ||||||
Less dividends: | ||||||||||||||||
Common stock | 1,411 | 1,411 | 1,433 | 1,433 | ||||||||||||
Class B common stock | 234 | 234 | 252 | 252 | ||||||||||||
Undistributed losses | $ | (1,558 | ) | $ | (1,558 | ) | $ | (1,803 | ) | $ | (1,803 | ) | ||||
Common stock undistributed losses | $ | (1,337 | ) | $ | (1,337 | ) | $ | (1,537 | ) | $ | (1,539 | ) | ||||
Class B common stock undistributed losses | (221 | ) | (221 | ) | (266 | ) | (264 | ) | ||||||||
Total undistributed losses | $ | (1,558 | ) | $ | (1,558 | ) | $ | (1,803 | ) | $ | (1,803 | ) | ||||
Net income (loss) | $ | (1,140 | ) | $ | (1,140 | ) | $ | 2,492 | $ | 2,492 | ||||||
Less dividends: | ||||||||||||||||
Common stock | 1,411 | 1,411 | 1,433 | 1,433 | ||||||||||||
Class B common stock | 234 | 234 | 252 | 252 | ||||||||||||
Undistributed earnings (losses) | $ | (2,785 | ) | $ | (2,785 | ) | $ | 807 | $ | 807 | ||||||
Common stock undistributed earnings (losses) | $ | (2,391 | ) | $ | (2,391 | ) | $ | 688 | $ | 689 | ||||||
Class B common stock undistributed earnings (losses) | (394 | ) | (394 | ) | 119 | 118 | ||||||||||
Total undistributed earnings (losses) | $ | (2,785 | ) | $ | (2,785 | ) | $ | 807 | $ | 807 | ||||||
Denominator for basic and diluted EPS: | ||||||||||||||||
Common stock weighted average shares | 11,797 | 11,797 | 11,997 | 11,997 | ||||||||||||
Class B common stock weighted average shares, | 2,161 | 2,161 | 2,309 | 2,309 | ||||||||||||
and shares under if-converted method for | ||||||||||||||||
diluted EPS | ||||||||||||||||
Effect of dilutive securities Dilutive stock options | — | 127 | ||||||||||||||
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions | 13,958 | 14,433 | ||||||||||||||
Income (loss) from continuing operations per share: | ||||||||||||||||
Common stock | $ | (0.09 | ) | $ | (0.09 | ) | $ | 0.19 | $ | 0.18 | ||||||
Class B common stock | $ | (0.08 | ) | $ | (0.08 | ) | $ | 0.17 | $ | 0.17 | ||||||
Income (loss) from discontinued operations per share: | ||||||||||||||||
Common stock | $ | 0.01 | $ | 0.01 | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
Class B common stock | $ | 0.01 | $ | 0.01 | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
Net income (loss) per share: | ||||||||||||||||
Common stock | $ | (0.08 | ) | $ | (0.08 | ) | $ | 0.18 | $ | 0.17 | ||||||
Class B common stock | $ | (0.07 | ) | $ | (0.07 | ) | $ | 0.16 | $ | 0.16 | ||||||
Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first six months of fiscal 2015 and fiscal 2014 were 661,564 and 487,064, respectively. |
SEGMENT_REPORTING
SEGMENT REPORTING | 6 Months Ended | |||||||||||||||
Nov. 29, 2014 | ||||||||||||||||
SEGMENT REPORTING | SEGMENT REPORTING | |||||||||||||||
During the first quarter of fiscal 2015, we created a new strategic business unit called Healthcare. As hospitals remain under pressure to reduce costs while serving a much larger customer base, there is a growing demand for independent sources of high value replacement parts for diagnostic imaging. Having access to parts that are tested and in stock enables hospitals to terminate expensive service contracts with the OEM and instead use third party service providers or in house technicians. With our global infrastructure, technical sales team, and experience servicing the healthcare market, we are well positioned to take advantage of this market opportunity. Over time we will expand our position from being the leader in power grid tubes to a key player in the high growth, high profile healthcare industry. | ||||||||||||||||
In accordance with ASC 280-10, Segment Reporting, we have identified three reportable segments: EDG, Canvys, and Healthcare. | ||||||||||||||||
Electron Device Group (“EDG”) provides engineered solutions and distributes electronic components to customers in alternative energy, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. EDG focuses on various applications including broadcast transmission, CO2 laser cutting, diagnostic imaging, dielectric and induction heating, high energy transfer, high voltage switching, plasma, power conversion, radar, and radiation oncology. EDG also offers its customers technical services for both microwave and industrial equipment. | ||||||||||||||||
Canvys provides customized display solutions serving the corporate enterprise, financial, industrial, and OEM markets. | ||||||||||||||||
Healthcare manufactures, distributes and services high value replacement parts for the healthcare market including hospitals, medical centers, independent service organizations, and multi-vendor service providers. Products include power grid tubes, hydrogen thyratrons, klystrons, magnetrons; Image Systems medical displays and workstations for picture archiving and communication systems ("PACS"); visual solutions for operating rooms/surgical environments; digital radiography solutions including replacement flat panel detectors and upgrades; and additional replacement components currently under development for the diagnostic imaging service market. Through a combination of newly developed products and partnerships, service offerings, and training programs we help our customers improve efficiency and deliver better clinical outcomes while lowering the cost of healthcare delivery. | ||||||||||||||||
The CEO evaluates performance and allocates resources primarily based on the gross profit of each segment. | ||||||||||||||||
Operating results by segment are summarized in the following table (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
November 29, | November 30, | November 29, 2014 | November 30, 2013 | |||||||||||||
2014 | 2013 | |||||||||||||||
EDG | ||||||||||||||||
Net Sales | $ | 26,787 | $ | 26,163 | $ | 54,225 | $ | 51,642 | ||||||||
Gross Profit | 8,537 | 8,507 | 17,223 | 16,366 | ||||||||||||
Canvys | ||||||||||||||||
Net Sales | $ | 5,906 | $ | 7,591 | $ | 11,874 | $ | 15,037 | ||||||||
Gross Profit | 1,653 | 2,053 | 3,309 | 4,025 | ||||||||||||
Healthcare | ||||||||||||||||
Net Sales | $ | 1,148 | $ | 1,682 | $ | 2,441 | $ | 3,014 | ||||||||
Gross Profit | 272 | 447 | 588 | 808 | ||||||||||||
Geographic net sales information is primarily grouped by customer destination into five areas: North America; Asia/Pacific; Europe; Latin America; and Other. | ||||||||||||||||
Net sales and gross profit by geographic region are summarized in the following table (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
November 29, 2014 | November 30, 2013 | November 29, 2014 | November 30, 2013 | |||||||||||||
Net Sales | ||||||||||||||||
North America | $ | 13,769 | $ | 14,296 | $ | 28,468 | $ | 28,492 | ||||||||
Asia/Pacific | 5,918 | 6,248 | 12,424 | 12,553 | ||||||||||||
Europe | 12,082 | 12,175 | 23,131 | 23,665 | ||||||||||||
Latin America | 2,207 | 2,574 | 4,528 | 4,771 | ||||||||||||
Other | (135 | ) | 143 | (11 | ) | 212 | ||||||||||
Total | $ | 33,841 | $ | 35,436 | $ | 68,540 | $ | 69,693 | ||||||||
Gross Profit (loss) | ||||||||||||||||
North America | $ | 4,847 | $ | 4,687 | $ | 10,030 | $ | 9,584 | ||||||||
Asia/Pacific | 1,994 | 2,144 | 4,113 | 4,089 | ||||||||||||
Europe | 4,028 | 4,111 | 7,747 | 7,706 | ||||||||||||
Latin America | 811 | 1,011 | 1,689 | 1,834 | ||||||||||||
Other | (1,218 | ) | (946 | ) | (2,459 | ) | (2,014 | ) | ||||||||
Total | $ | 10,462 | $ | 11,007 | $ | 21,120 | $ | 21,199 | ||||||||
We sell our products to customers in diversified industries and perform periodic credit evaluations of our customers’ financial condition. Terms are generally on open account, payable net 30 days in North America, and vary throughout Asia/Pacific, Europe, and Latin America. Estimates of credit losses are recorded in the financial statements based on monthly reviews of outstanding accounts. Other primarily includes net sales not allocated to a specific geographical region, unabsorbed value-add costs, and other unallocated expenses. |
LITIGATION
LITIGATION | 6 Months Ended |
Nov. 29, 2014 | |
LITIGATION | LITIGATION |
We are involved in several pending judicial proceedings concerning matters arising in the ordinary course of business. While the outcome of litigation is subject to uncertainties, based on information available at the time the financial statements were issued, we determined disclosure of contingencies relating to any of our pending judicial proceedings was not necessary because there was less than a reasonable possibility that a material loss had been incurred. | |
During the first quarter of fiscal 2014, we received a settlement in the amount of $2.1 million related to an anti-trust class action lawsuit settlement. The settlement was recorded as proceeds from legal settlement within the Other Income section of our Consolidated Statements of Comprehensive Income. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended | |||
Nov. 29, 2014 | ||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS | |||
ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States, and expands disclosures about fair value measurements. | ||||
ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists; therefore requiring an entity to develop its own assumptions. | ||||
As of November 29, 2014, we held investments that are required to be measured at fair value on a recurring basis. Our investments consist of time deposits and CDs, which face value is equal to fair value, and equity securities of publicly traded companies for which market prices are readily available. | ||||
Investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of November 29, 2014, and May 31, 2014, were as follows (in thousands): | ||||
Level 1 | ||||
November 29, 2014 | ||||
Time deposits/CDs | $ | 34,867 | ||
Equity securities | 556 | |||
Total | $ | 35,423 | ||
May 31, 2014 | ||||
Time deposits/CDs | $ | 32,732 | ||
Equity securities | 516 | |||
Total | $ | 33,248 | ||
UPDATES_TO_CRITICAL_ACCOUNTING1
UPDATES TO CRITICAL ACCOUNTING POLICIES AND ESTIMATES (Policies) | 6 Months Ended |
Nov. 29, 2014 | |
Inventories | Inventories: Our worldwide inventories are stated at the lower of cost or market, generally using a weighted-average cost method. Our inventories from continuing operations include approximately $33.4 million of finished goods and $3.7 million of raw materials and work-in-progress as of November 29, 2014, as compared to approximately $30.9 million of finished goods and $3.0 million of raw materials and work-in-progress as of May 31, 2014. At this time, we do not anticipate any material risks or uncertainties related to possible future inventory write-downs. |
Revenue Recognition | Revenue Recognition: Our product sales are recognized as revenue upon shipment, when title passes to the customer, when delivery has occurred or services have been rendered, and when collectability is reasonably assured. We also record estimated discounts and returns based on our historical experience. |
Loss Contingencies | Loss Contingencies: We accrue a liability for loss contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. If we determine that there is at least a reasonable possibility that a loss may have been incurred, we will include a disclosure describing the contingency. |
Goodwill and Other Intangible Assets | Other Intangible Assets: Intangible assets are initially recorded at their fair market values determined on quoted market prices in active markets, if available, or recognized valuation models. Intangible assets that have finite useful lives are amortized on a straight-line basis over their useful lives. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements: In May 2014, the FASB and the International Accounting Standards Board ("IASB") issued new joint guidance surrounding revenue recognition. Under U.S. generally accepted accounting principles ("US GAAP"), this guidance is being introduced to the ASC as Topic 606, Revenue from Contracts with Customers ("Topic 606"), by Accounting Standards Update No. 2014-09 ("ASU 2014-09"). The new standard supersedes a majority of existing revenue recognition guidance under US GAAP, and requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Companies may need to use more judgment and make more estimates while recognizing revenue, which could result in additional disclosures to the financial statements. Topic 606 allows for either a "full retrospective" adoption or a "modified retrospective" adoption. The standard is effective for us in our fiscal year 2018. We are currently evaluating which method we will use and the revenue recognition impact this guidance will have once implemented. |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended | |||||||||||||||
Nov. 29, 2014 | ||||||||||||||||
Summary financial results | Summary financial results for the three and six months ended November 29, 2014, and November 30, 2013, are presented in the following table (in thousands): | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
29-Nov-14 | 30-Nov-13 | 29-Nov-14 | 30-Nov-13 | |||||||||||||
Net sales | $ | — | $ | 178 | $ | — | $ | 264 | ||||||||
Gross profit (loss) (1) | — | (55 | ) | — | (103 | ) | ||||||||||
Selling, general, and administrative expenses (2) | — | 117 | — | 149 | ||||||||||||
Other expense | — | — | — | 1 | ||||||||||||
Income tax benefit (3) | (87 | ) | (65 | ) | (87 | ) | (135 | ) | ||||||||
Income (Loss) from discontinued operations, net of tax | $ | 87 | $ | (107 | ) | $ | 87 | $ | (118 | ) | ||||||
Notes: | ||||||||||||||||
(1) Gross profit (loss) for fiscal year 2014 includes unabsorbed manufacturing labor and overhead expenses related to the Manufacturing Agreement with RFPD which ended March 1, 2014. | ||||||||||||||||
(2) Selling, General, and Administrative expenses relate primarily to professional fees for tax audits resulting from the Transaction. | ||||||||||||||||
(3) Income tax benefit relates to the reversal of tax reserves. | ||||||||||||||||
Assets and liabilities classified as discontinued operations | Assets and liabilities classified as discontinued operations on our consolidated balance sheets as of November 29, 2014, and May 31, 2014, include the following (in thousands): | |||||||||||||||
November 29, 2014 | May 31, 2014 | |||||||||||||||
Inventories | $ | — | $ | 18 | ||||||||||||
Discontinued operations - Assets | $ | — | $ | 18 | ||||||||||||
Accrued liabilities - current | $ | — | $ | 7 | ||||||||||||
Accrued liabilities - non-current | — | 130 | ||||||||||||||
Discontinued operations - Liabilities | $ | — | $ | 137 | ||||||||||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended | |||||||
Nov. 29, 2014 | ||||||||
Intangible assets subject to amortization | Intangible assets subject to amortization as well as amortization expense are as follows (in thousands): | |||||||
Intangible Assets Subject to | ||||||||
Amortization as of | ||||||||
November 29, 2014 | May 31, 2014 | |||||||
Gross Amounts: | ||||||||
Trade Name | $ | 29 | $ | 29 | ||||
Customer Relationship (1) | 959 | 977 | ||||||
Non-compete Agreements | 47 | 47 | ||||||
Total Gross Amounts | $ | 1,035 | $ | 1,053 | ||||
Accumulated Amortization: | ||||||||
Trade Name | $ | 23 | $ | 18 | ||||
Customer Relationship | 204 | 178 | ||||||
Non-compete Agreements | 18 | 14 | ||||||
Total Accumulated Amortization | $ | 245 | $ | 210 | ||||
(1) Change from prior periods reflect impact of foreign currency translation. | ||||||||
Intangible Assets Amortization expense | The amortization expense associated with the intangible assets subject to amortization for the next five years is presented in the following table (in thousands): | |||||||
Amortization | ||||||||
Expense | ||||||||
Fiscal Year | ||||||||
Remaining 2015 | $ | 41 | ||||||
2016 | 67 | |||||||
2017 | 57 | |||||||
2018 | 56 | |||||||
2019 | 46 | |||||||
Thereafter | 523 | |||||||
LEASE_OBLIGATIONS_OTHER_COMMIT1
LEASE OBLIGATIONS, OTHER COMMITMENTS, AND CONTINGENCIES (Tables) | 6 Months Ended | |||
Nov. 29, 2014 | ||||
Future lease commitments charges | Our future lease commitments for minimum rentals, including common area maintenance charges and property taxes during the next five years have been adjusted to reflect the Transaction as follows (in thousands): | |||
Fiscal Year | Payments | |||
Remaining 2015 | $ | 692 | ||
2016 | 703 | |||
2017 | 150 | |||
2018 | 95 | |||
2019 | 66 | |||
Thereafter | 55 | |||
CALCULATION_OF_EARNINGS_PER_SH1
CALCULATION OF EARNINGS PER SHARE (Tables) | 6 Months Ended | |||||||||||||||
Nov. 29, 2014 | ||||||||||||||||
Earnings per share | The earnings per share (“EPS”) presented in our unaudited consolidated statements of comprehensive income (loss) are based on the following amounts (in thousands, except per share amounts): | |||||||||||||||
For the Three Months Ended | ||||||||||||||||
November 29, 2014 | November 30, 2013 | |||||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||||
Numerator for Basic and Diluted EPS: | ||||||||||||||||
Income (loss) from continuing operations | $ | (1,144 | ) | $ | (1,144 | ) | $ | 631 | $ | 631 | ||||||
Less dividends: | ||||||||||||||||
Common stock | 701 | 701 | 710 | 710 | ||||||||||||
Class B common stock | 116 | 116 | 118 | 118 | ||||||||||||
Undistributed losses | $ | (1,961 | ) | $ | (1,961 | ) | $ | (197 | ) | $ | (197 | ) | ||||
Common stock undistributed losses | $ | (1,685 | ) | $ | (1,685 | ) | $ | (169 | ) | $ | (169 | ) | ||||
Class B common stock undistributed losses | (276 | ) | (276 | ) | (28 | ) | (28 | ) | ||||||||
Total undistributed losses | $ | (1,961 | ) | $ | (1,961 | ) | $ | (197 | ) | $ | (197 | ) | ||||
Income (loss) from discontinued operations | $ | 87 | $ | 87 | $ | (107 | ) | $ | (107 | ) | ||||||
Less dividends: | ||||||||||||||||
Common stock | 701 | 701 | 710 | 710 | ||||||||||||
Class B common stock | 116 | 116 | 118 | 118 | ||||||||||||
Undistributed losses | $ | (730 | ) | $ | (730 | ) | $ | (935 | ) | $ | (935 | ) | ||||
Common stock undistributed losses | $ | (627 | ) | $ | (627 | ) | $ | (802 | ) | $ | (803 | ) | ||||
Class B common stock undistributed losses | (103 | ) | (103 | ) | (133 | ) | (132 | ) | ||||||||
Total undistributed losses | $ | (730 | ) | $ | (730 | ) | $ | (935 | ) | $ | (935 | ) | ||||
Net income (loss) | $ | (1,057 | ) | $ | (1,057 | ) | $ | 524 | $ | 524 | ||||||
Less dividends: | ||||||||||||||||
Common stock | 701 | 701 | 710 | 710 | ||||||||||||
Class B common stock | 116 | 116 | 118 | 118 | ||||||||||||
Undistributed losses | $ | (1,874 | ) | $ | (1,874 | ) | $ | (304 | ) | $ | (304 | ) | ||||
Common stock undistributed losses | $ | (1,610 | ) | $ | (1,610 | ) | $ | (261 | ) | $ | (261 | ) | ||||
Class B common stock undistributed losses | (264 | ) | (264 | ) | (43 | ) | (43 | ) | ||||||||
Total undistributed losses | $ | (1,874 | ) | $ | (1,874 | ) | $ | (304 | ) | $ | (304 | ) | ||||
Denominator for basic and diluted EPS: | ||||||||||||||||
Common stock weighted average shares | 11,770 | 11,770 | 11,871 | 11,871 | ||||||||||||
Class B common stock weighted average shares, | 2,141 | 2,141 | 2,191 | 2,191 | ||||||||||||
and shares under if-converted method for | ||||||||||||||||
diluted EPS | ||||||||||||||||
Effect of dilutive stock options | — | 123 | ||||||||||||||
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions | 13,911 | 14,185 | ||||||||||||||
Income (loss) from continuing operations per share: | ||||||||||||||||
Common stock | $ | (0.08 | ) | $ | (0.08 | ) | $ | 0.05 | $ | 0.04 | ||||||
Class B common stock | $ | (0.07 | ) | $ | (0.07 | ) | $ | 0.04 | $ | 0.04 | ||||||
Income (loss) from discontinued operations per share: | ||||||||||||||||
Common stock | $ | 0.01 | $ | 0.01 | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
Class B common stock | $ | 0.01 | $ | 0.01 | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
Net income (loss) per share: | ||||||||||||||||
Common stock | $ | (0.07 | ) | $ | (0.07 | ) | $ | 0.04 | $ | 0.03 | ||||||
Class B common stock | $ | (0.06 | ) | $ | (0.06 | ) | $ | 0.03 | $ | 0.03 | ||||||
Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the second quarter of fiscal 2015 and fiscal 2014 were 666,564 and 512,064, respectively. | ||||||||||||||||
Six Months Ended | ||||||||||||||||
November 29, 2014 | November 30, 2013 | |||||||||||||||
Basic | Diluted | Basic | Diluted | |||||||||||||
Numerator for Basic and Diluted EPS: | ||||||||||||||||
Income (loss) from continuing operations | $ | (1,227 | ) | $ | (1,227 | ) | $ | 2,610 | $ | 2,610 | ||||||
Less dividends: | ||||||||||||||||
Common stock | 1,411 | 1,411 | 1,433 | 1,433 | ||||||||||||
Class B common stock | 234 | 234 | 252 | 252 | ||||||||||||
Undistributed earnings (losses) | $ | (2,872 | ) | $ | (2,872 | ) | $ | 925 | $ | 925 | ||||||
Common stock undistributed earnings (losses) | $ | (2,466 | ) | $ | (2,466 | ) | $ | 788 | $ | 790 | ||||||
Class B common stock undistributed earnings (losses) | (406 | ) | (406 | ) | 137 | 135 | ||||||||||
Total undistributed earnings (losses) | $ | (2,872 | ) | $ | (2,872 | ) | $ | 925 | $ | 925 | ||||||
Income (loss) from discontinued operations | $ | 87 | $ | 87 | $ | (118 | ) | $ | (118 | ) | ||||||
Less dividends: | ||||||||||||||||
Common stock | 1,411 | 1,411 | 1,433 | 1,433 | ||||||||||||
Class B common stock | 234 | 234 | 252 | 252 | ||||||||||||
Undistributed losses | $ | (1,558 | ) | $ | (1,558 | ) | $ | (1,803 | ) | $ | (1,803 | ) | ||||
Common stock undistributed losses | $ | (1,337 | ) | $ | (1,337 | ) | $ | (1,537 | ) | $ | (1,539 | ) | ||||
Class B common stock undistributed losses | (221 | ) | (221 | ) | (266 | ) | (264 | ) | ||||||||
Total undistributed losses | $ | (1,558 | ) | $ | (1,558 | ) | $ | (1,803 | ) | $ | (1,803 | ) | ||||
Net income (loss) | $ | (1,140 | ) | $ | (1,140 | ) | $ | 2,492 | $ | 2,492 | ||||||
Less dividends: | ||||||||||||||||
Common stock | 1,411 | 1,411 | 1,433 | 1,433 | ||||||||||||
Class B common stock | 234 | 234 | 252 | 252 | ||||||||||||
Undistributed earnings (losses) | $ | (2,785 | ) | $ | (2,785 | ) | $ | 807 | $ | 807 | ||||||
Common stock undistributed earnings (losses) | $ | (2,391 | ) | $ | (2,391 | ) | $ | 688 | $ | 689 | ||||||
Class B common stock undistributed earnings (losses) | (394 | ) | (394 | ) | 119 | 118 | ||||||||||
Total undistributed earnings (losses) | $ | (2,785 | ) | $ | (2,785 | ) | $ | 807 | $ | 807 | ||||||
Denominator for basic and diluted EPS: | ||||||||||||||||
Common stock weighted average shares | 11,797 | 11,797 | 11,997 | 11,997 | ||||||||||||
Class B common stock weighted average shares, | 2,161 | 2,161 | 2,309 | 2,309 | ||||||||||||
and shares under if-converted method for | ||||||||||||||||
diluted EPS | ||||||||||||||||
Effect of dilutive securities Dilutive stock options | — | 127 | ||||||||||||||
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions | 13,958 | 14,433 | ||||||||||||||
Income (loss) from continuing operations per share: | ||||||||||||||||
Common stock | $ | (0.09 | ) | $ | (0.09 | ) | $ | 0.19 | $ | 0.18 | ||||||
Class B common stock | $ | (0.08 | ) | $ | (0.08 | ) | $ | 0.17 | $ | 0.17 | ||||||
Income (loss) from discontinued operations per share: | ||||||||||||||||
Common stock | $ | 0.01 | $ | 0.01 | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
Class B common stock | $ | 0.01 | $ | 0.01 | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
Net income (loss) per share: | ||||||||||||||||
Common stock | $ | (0.08 | ) | $ | (0.08 | ) | $ | 0.18 | $ | 0.17 | ||||||
Class B common stock | $ | (0.07 | ) | $ | (0.07 | ) | $ | 0.16 | $ | 0.16 | ||||||
Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for the first six months of fiscal 2015 and fiscal 2014 were 661,564 and 487,064, respectively. |
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 6 Months Ended | |||||||||||||||
Nov. 29, 2014 | ||||||||||||||||
Summarized operating results by segment | Operating results by segment are summarized in the following table (in thousands): | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
November 29, | November 30, | November 29, 2014 | November 30, 2013 | |||||||||||||
2014 | 2013 | |||||||||||||||
EDG | ||||||||||||||||
Net Sales | $ | 26,787 | $ | 26,163 | $ | 54,225 | $ | 51,642 | ||||||||
Gross Profit | 8,537 | 8,507 | 17,223 | 16,366 | ||||||||||||
Canvys | ||||||||||||||||
Net Sales | $ | 5,906 | $ | 7,591 | $ | 11,874 | $ | 15,037 | ||||||||
Gross Profit | 1,653 | 2,053 | 3,309 | 4,025 | ||||||||||||
Healthcare | ||||||||||||||||
Net Sales | $ | 1,148 | $ | 1,682 | $ | 2,441 | $ | 3,014 | ||||||||
Gross Profit | 272 | 447 | 588 | 808 | ||||||||||||
Net Sales and Gross Profit by Geographic Region | Net sales and gross profit by geographic region are summarized in the following table (in thousands): | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
November 29, 2014 | November 30, 2013 | November 29, 2014 | November 30, 2013 | |||||||||||||
Net Sales | ||||||||||||||||
North America | $ | 13,769 | $ | 14,296 | $ | 28,468 | $ | 28,492 | ||||||||
Asia/Pacific | 5,918 | 6,248 | 12,424 | 12,553 | ||||||||||||
Europe | 12,082 | 12,175 | 23,131 | 23,665 | ||||||||||||
Latin America | 2,207 | 2,574 | 4,528 | 4,771 | ||||||||||||
Other | (135 | ) | 143 | (11 | ) | 212 | ||||||||||
Total | $ | 33,841 | $ | 35,436 | $ | 68,540 | $ | 69,693 | ||||||||
Gross Profit (loss) | ||||||||||||||||
North America | $ | 4,847 | $ | 4,687 | $ | 10,030 | $ | 9,584 | ||||||||
Asia/Pacific | 1,994 | 2,144 | 4,113 | 4,089 | ||||||||||||
Europe | 4,028 | 4,111 | 7,747 | 7,706 | ||||||||||||
Latin America | 811 | 1,011 | 1,689 | 1,834 | ||||||||||||
Other | (1,218 | ) | (946 | ) | (2,459 | ) | (2,014 | ) | ||||||||
Total | $ | 10,462 | $ | 11,007 | $ | 21,120 | $ | 21,199 | ||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | |||
Nov. 29, 2014 | ||||
Investments measured at fair value on a recurring basis | Investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 as of November 29, 2014, and May 31, 2014, were as follows (in thousands): | |||
Level 1 | ||||
November 29, 2014 | ||||
Time deposits/CDs | $ | 34,867 | ||
Equity securities | 556 | |||
Total | $ | 35,423 | ||
May 31, 2014 | ||||
Time deposits/CDs | $ | 32,732 | ||
Equity securities | 516 | |||
Total | $ | 33,248 | ||
Recovered_Sheet1
Updates to Critical Accounting Policies and Estimates - Additional Information (Detail) (USD $) | Nov. 29, 2014 | 31-May-14 |
In Millions, unless otherwise specified | ||
Update Of Summary Of Significant Accounting Policies [Line Items] | ||
Finished Goods Included in inventories | $33.40 | $30.90 |
Raw material and Work in progress included in inventories | $3.70 | $3 |
Discontinued_Operations_Detail
Discontinued Operations (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 01, 2011 | Nov. 29, 2014 | Nov. 30, 2013 | Nov. 29, 2014 | Nov. 30, 2013 | 28-May-11 | |
Discontinued Operations [Line Items] | ||||||
Proceeds from Divestiture of Businesses | $238,800,000 | $238,800,000 | ||||
Net sales | 0 | 178,000 | 0 | 264,000 | ||
Gross profit (loss) | 0 | -55,000 | 0 | -103,000 | ||
Selling, general, and administrative expenses | 0 | 117,000 | 0 | 149,000 | ||
Additional gain on sale | 0 | 0 | 0 | -1,000 | ||
Income tax provision (benefit) | -87,000 | -65,000 | -87,000 | -135,000 | ||
Income (loss) from discontinued operations, net of tax | $87,000 | ($107,000) | $87,000 | ($118,000) |
Assets_and_Liabilities_Classif
Assets and Liabilities Classified as Discontinued Operations (Detail) (USD $) | Nov. 29, 2014 | 31-May-14 |
In Thousands, unless otherwise specified | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventories | $0 | $18 |
Discontinued operations-Assets | 0 | 18 |
Accrued liabilities-current | 0 | 7 |
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | 0 | 130 |
Discontinued operations-Liabilities | $0 | $137 |
Recovered_Sheet2
Goodwill and Other Intangible Assets - Additional Information (Detail) | 6 Months Ended |
Nov. 29, 2014 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |
Weighted average number of years of amortization expense | 17 years 4 months 18 days |
Intangible_Assets_Subject_to_A
Intangible Assets Subject to Amortization and Amortization Expense (Detail) (USD $) | Nov. 29, 2014 | 31-May-14 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Gross | $1,035 | $1,053 |
Finite Lived Intangible Assets Accumulated Amortization | 245 | 210 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Gross | 29 | 29 |
Finite Lived Intangible Assets Accumulated Amortization | 23 | 18 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Gross | 959 | 977 |
Finite Lived Intangible Assets Accumulated Amortization | 204 | 178 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets Gross | 47 | 47 |
Finite Lived Intangible Assets Accumulated Amortization | $18 | $14 |
Intangible_Assets_Amortization
Intangible Assets Amortization expense (Detail) (USD $) | Nov. 29, 2014 |
In Thousands, unless otherwise specified | |
Finite Lived Intangible Assets Future Amortization Expense [Line Items] | |
Remaining 2015 | $41 |
2016 | 67 |
2017 | 57 |
2018 | 56 |
2019 | 46 |
Thereafter | $523 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Nov. 29, 2014 | Nov. 30, 2013 | 31-May-14 |
Investment [Line Items] | |||
Investment in time deposits and certificate of deposits | $34.90 | $32.70 | |
Investment in time deposits and certificate of deposits, less than twelve months | 23.4 | 31.7 | |
Investment in time deposits and certificate of deposits, greater than twelve months | 11.5 | 1 | |
Investments, which are included in non-current assets | $0.60 | $0.50 | |
Proceeds from the sale of securities description | less than $0.1 million | 0.1 | |
Gross realized gains and losses on sale, description | less than $0.1 million | less than $0.1 million | |
Net unrealized holding gains, description | less than $0.1 million | less than $0.1 million |
Warranties_Additional_Informat
Warranties - Additional Information (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Nov. 29, 2014 | 31-May-14 |
Warranties [Line Items] | ||
Warranty term, minimum | 1 year | |
Warranty term, maximum | 3 years | |
Warranty reserves | $0.20 | $0.20 |
Recovered_Sheet3
Lease Obligations Other Commitments and Contingencies - Additional Information (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Nov. 29, 2014 | Nov. 30, 2013 |
Commitments and Contingencies Disclosure [Line Items] | ||
Rent expense from continuing operations during the first six months of fiscal 2015 | $0.80 | $0.80 |
Future_Minimum_Lease_Commitmen
Future Minimum Lease Commitments (Detail) (USD $) | Nov. 29, 2014 |
In Thousands, unless otherwise specified | |
Future Minimum Payments Under Non-Cancelable Operating Leases With Initial Terms Of One-Year Or More [Line Items] | |
Remaining 2015 | $692 |
2016 | 703 |
2017 | 150 |
2018 | 95 |
2019 | 66 |
Thereafter | $55 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 6 Months Ended | |
Nov. 29, 2014 | Nov. 30, 2013 | |
Income Tax [Line Items] | ||
Effective income tax rate from continuing operation | 43.10% | 18.80% |
Document Fiscal Year Focus | 2015 | |
Federal statutory rate | 34.00% | |
Description of tax years open for examination in foreign tax jurisdictions | Our primary foreign tax jurisdictions are Germany and the Netherlands. We have tax years open in Germany beginning in fiscal 2007 and the Netherlands beginning in fiscal 2009. | |
Deferred Tax Liabilities, Other | $6,100,000 | |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 39,700,000 | |
Cumulative positive earnings of foreign subsidiaries | 40,800,000 | |
Liability for uncertain tax positions related to continuing operations, excluding interest and penalties | $0 | $0 |
Recovered_Sheet4
Calculation of Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Nov. 29, 2014 | Nov. 30, 2013 | Nov. 29, 2014 | Nov. 30, 2013 | |
Computation Of Earnings Per Share Line Items | ||||
Common stock options anti-dilutive | 666,564 | 512,064 | 661,564 | 487,064 |
Common Stock | ||||
Computation Of Earnings Per Share Line Items | ||||
Common stock shares, authorized | 17,000,000 | 17,000,000 | ||
Class B Common Stock | ||||
Computation Of Earnings Per Share Line Items | ||||
Common stock shares, authorized | 3,000,000 | 3,000,000 | ||
Number of votes for Class B common stock | 10 | |||
Cash dividends Class A common stock | 90.00% |
Earnings_Per_Share_Detail
Earnings Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Nov. 29, 2014 | Nov. 30, 2013 | Nov. 29, 2014 | Nov. 30, 2013 | |
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Income from continuing operations | ($1,144,000) | $631,000 | ($1,227,000) | $2,610,000 |
Income (loss) from discontinued operations, net of tax | 87,000 | -107,000 | 87,000 | -118,000 |
Net income (loss) | -1,057,000 | 524,000 | -1,140,000 | 2,492,000 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 666,564 | 512,064 | 661,564 | 487,064 |
Common Stock | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Net income (loss) | ||||
Denominator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Weighted average shares, basic (in shares) | 11,770,000 | 11,871,000 | 11,797,000 | 11,997,000 |
Weighted average shares, diluted (in shares) | 11,770,000 | 14,185,000 | 11,797,000 | 14,433,000 |
Weighted average shares and shares under if-coverted method for diluted EPS, basic (in shares) | ($0.08) | $0.05 | ($0.09) | $0.19 |
Weighted average shares and shares under if-coverted method for diluted EPS, diluted (in shares) | ($0.08) | $0.04 | ($0.09) | $0.18 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income per share, basic (in dollars per share) | ($0.07) | $0.04 | ($0.08) | $0.18 |
Net income per share, diluted (in dollars per share) | ($0.07) | $0.03 | ($0.08) | $0.17 |
Class B Common Stock | ||||
Denominator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Weighted average shares, basic (in shares) | 2,141,000 | 2,191,000 | 2,161,000 | 2,309,000 |
Weighted average shares, diluted (in shares) | 2,141,000 | 2,191,000 | 2,161,000 | 2,309,000 |
Weighted average shares and shares under if-coverted method for diluted EPS, basic (in shares) | ($0.07) | $0.04 | ($0.08) | $0.17 |
Weighted average shares and shares under if-coverted method for diluted EPS, diluted (in shares) | ($0.07) | $0.04 | ($0.08) | $0.17 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income per share, basic (in dollars per share) | ($0.06) | $0.03 | ($0.07) | $0.16 |
Net income per share, diluted (in dollars per share) | ($0.06) | $0.03 | ($0.07) | $0.16 |
Basic | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Undistributed basic earnings (losses) | -1,874 | -304 | -2,785 | 807 |
Net income (loss) | -1,057 | 524 | -1,140 | 2,492 |
Basic | Common Stock | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Dividends | 701 | 710 | 1,411 | 1,433 |
Undistributed basic earnings (losses) | -1,610 | -261 | -2,391 | 688 |
Denominator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Weighted average shares, basic (in shares) | 11,770 | 11,871 | 11,797 | 11,997 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income per share, basic (in dollars per share) | ($0.07) | $0.04 | ($0.08) | $0.18 |
Basic | Class B Common Stock | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Dividends | 116 | 118 | 234 | 252 |
Undistributed basic earnings (losses) | -264 | -43 | -394 | 119 |
Denominator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Weighted average shares and shares under if-coverted method for diluted EPS, basic (in shares) | $2,141 | $2,191 | $2,161 | $2,309 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income per share, basic (in dollars per share) | ($0.06) | $0.03 | ($0.07) | $0.16 |
Basic | Continuing Operations | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Income from continuing operations | -1,144 | 631 | -1,227 | 2,610 |
Undistributed basic earnings (losses) | -1,961 | -197 | -2,872 | 925 |
Basic | Continuing Operations | Common Stock | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Dividends | 701 | 710 | 1,411 | 1,433 |
Undistributed basic earnings (losses) | -1,685 | -169 | -2,466 | 788 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income per share, basic (in dollars per share) | ($0.08) | $0.05 | ($0.09) | $0.19 |
Basic | Continuing Operations | Class B Common Stock | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Dividends | 116 | 118 | 234 | 252 |
Undistributed basic earnings (losses) | -276 | -28 | -406 | 137 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income per share, basic (in dollars per share) | ($0.07) | $0.04 | ($0.08) | $0.17 |
Basic | Discontinued Operations | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Undistributed basic earnings (losses) | -730 | -935 | -1,558 | -1,803 |
Income (loss) from discontinued operations, net of tax | 87 | -107 | 87 | -118 |
Basic | Discontinued Operations | Common Stock | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Dividends | 701 | 710 | 1,411 | 1,433 |
Undistributed basic earnings (losses) | -627 | -802 | -1,337 | -1,537 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income per share, basic (in dollars per share) | $0.01 | ($0.01) | $0.01 | ($0.01) |
Basic | Discontinued Operations | Class B Common Stock | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Dividends | 116 | 118 | 234 | 252 |
Undistributed basic earnings (losses) | -103 | -133 | -221 | -266 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income per share, basic (in dollars per share) | $0.01 | ($0.01) | $0.01 | ($0.01) |
Diluted | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Undistributed diluted earnings (losses) | -1,874 | -304 | -2,785 | 807 |
Net income (loss) | -1,057 | 524 | -1,140 | 2,492 |
Denominator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Weighted average shares, diluted (in shares) | 11,770 | 11,871 | 11,797 | 11,997 |
Weighted average shares and shares under if-coverted method for diluted EPS, diluted (in shares) | $2,141 | $2,191 | $2,161 | $2,309 |
Effect of dilutive securities dilutive stock options (in shares) | 0 | 123 | 0 | 127 |
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions (in shares) | 13,911 | 14,185 | 13,958 | 14,433 |
Diluted | Common Stock | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Dividends | 701 | 710 | 1,411 | 1,433 |
Undistributed diluted earnings (losses) | -1,610 | -261 | -2,391 | 689 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income per share, diluted (in dollars per share) | ($0.07) | $0.03 | ($0.08) | $0.17 |
Diluted | Class B Common Stock | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Dividends | 116 | 118 | 234 | 252 |
Undistributed diluted earnings (losses) | -264 | -43 | -394 | 118 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income per share, diluted (in dollars per share) | ($0.06) | $0.03 | ($0.07) | $0.16 |
Diluted | Continuing Operations | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Income from continuing operations | -1,144 | 631 | -1,227 | 2,610 |
Undistributed diluted earnings (losses) | -1,961 | -197 | -2,872 | 925 |
Diluted | Continuing Operations | Common Stock | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Dividends | 701 | 710 | 1,411 | 1,433 |
Undistributed diluted earnings (losses) | -1,685 | -169 | -2,466 | 790 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income per share, diluted (in dollars per share) | ($0.08) | $0.04 | ($0.09) | $0.18 |
Diluted | Continuing Operations | Class B Common Stock | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Dividends | 116 | 118 | 234 | 252 |
Undistributed diluted earnings (losses) | -276 | -28 | -406 | 135 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income per share, diluted (in dollars per share) | ($0.07) | $0.04 | ($0.08) | $0.17 |
Diluted | Discontinued Operations | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Undistributed diluted earnings (losses) | -730 | -935 | -1,558 | -1,803 |
Income (loss) from discontinued operations, net of tax | 87 | -107 | 87 | -118 |
Diluted | Discontinued Operations | Common Stock | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Dividends | 701 | 710 | 1,411 | 1,433 |
Undistributed diluted earnings (losses) | -627 | -803 | -1,337 | -1,539 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income per share, diluted (in dollars per share) | $0.01 | ($0.01) | $0.01 | ($0.01) |
Diluted | Discontinued Operations | Class B Common Stock | ||||
Numerator for Basic and Diluted Earnings Per Share [Abstract] | ||||
Dividends | 116 | 118 | 234 | 252 |
Undistributed diluted earnings (losses) | ($103) | ($132) | ($221) | ($264) |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income per share, diluted (in dollars per share) | $0.01 | ($0.01) | $0.01 | ($0.01) |
Operating_Results_by_Segment_D
Operating Results by Segment (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 29, 2014 | Nov. 30, 2013 | Nov. 29, 2014 | Nov. 30, 2013 |
Segment Reporting Information [Line Items] | ||||
Net Sales | $33,841 | $35,436 | $68,540 | $69,693 |
Gross Profit | 10,462 | 11,007 | 21,120 | 21,199 |
EDG | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 26,787 | 26,163 | 54,225 | 51,642 |
Gross Profit | 8,537 | 8,507 | 17,223 | 16,366 |
Canvys | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 5,906 | 7,591 | 11,874 | 15,037 |
Gross Profit | 1,653 | 2,053 | 3,309 | 4,025 |
Healthcare [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 1,148 | 1,682 | 2,441 | 3,014 |
Gross Profit | $272 | $447 | $588 | $808 |
Net_Sales_and_Gross_Profit_by_
Net Sales and Gross Profit by Geographic Region (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 29, 2014 | Nov. 30, 2013 | Nov. 29, 2014 | Nov. 30, 2013 |
Segment Reporting Information [Line Items] | ||||
Net Sales | $33,841 | $35,436 | $68,540 | $69,693 |
Total, Gross Profit | 10,462 | 11,007 | 21,120 | 21,199 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 13,769 | 14,296 | 28,468 | 28,492 |
Total, Gross Profit | 4,847 | 4,687 | 10,030 | 9,584 |
Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 5,918 | 6,248 | 12,424 | 12,553 |
Total, Gross Profit | 1,994 | 2,144 | 4,113 | 4,089 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 12,082 | 12,175 | 23,131 | 23,665 |
Total, Gross Profit | 4,028 | 4,111 | 7,747 | 7,706 |
Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 2,207 | 2,574 | 4,528 | 4,771 |
Total, Gross Profit | 811 | 1,011 | 1,689 | 1,834 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | -135 | 143 | -11 | 212 |
Total, Gross Profit | ($1,218) | ($946) | ($2,459) | ($2,014) |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Nov. 29, 2014 | |
Segment Reporting Information [Line Items] | |
Credit payment period | 30 days |
LITIGATION_Litigation_Details
LITIGATION Litigation (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Nov. 29, 2014 | Aug. 30, 2014 | Nov. 30, 2013 | Nov. 29, 2014 | Nov. 30, 2013 |
Litigation [Abstract] | |||||
Other Nonoperating Income (Expense) | ($14) | $15 | ($16) | ($15) | |
Anti-trust class action lawsuit settlement [Domain] | |||||
Litigation [Abstract] | |||||
Other Nonoperating Income (Expense) | $0 | ($2,100) | $0 | $0 | ($2,115) |
Investments_Measured_at_Fair_V
Investments Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, Level 1, USD $) | Nov. 29, 2014 | 31-May-14 |
In Thousands, unless otherwise specified | ||
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Time deposits/CDs | $34,867 | $32,732 |
Equity securities | 556 | 516 |
Fair value, Total | $35,423 | $33,248 |