Mesa Laboratories (MLAB) 10-Q 4 Feb 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Dec. 31, 2015	Jan. 27, 2016
Entity Registrant Name	MESA LABORATORIES INC /CO
Entity Central Index Key	724,004
Trading Symbol	mlab
Current Fiscal Year End Date	--03-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		3,626,528
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Dec. 31, 2015	Mar. 31, 2015
ASSETS
Cash and cash equivalents	$ 3,272,000	$ 2,034,000
Accounts receivable, net	13,283,000	12,145,000
Inventories, net	14,716,000	12,420,000
Prepaid expenses and other	1,294,000	1,334,000
Deferred income taxes	1,682,000	1,689,000
Total current assets	34,247,000	29,622,000
Property, plant and equipment, net	15,685,000	9,598,000
Intangibles, net	41,231,000	33,231,000
Goodwill	63,953,000	44,869,000
Total assets	155,116,000	117,320,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	3,053,000	2,503,000
Accrued salaries and payroll taxes	4,340,000	4,105,000
Unearned revenues	2,809,000	1,314,000
Current portion of contingent consideration	4,696,000	1,220,000
Other accrued expenses	2,803,000	1,307,000
Income taxes payable	201,000	1,208,000
Current portion of long-term debt	3,000,000	3,000,000
Total current liabilities	20,902,000	14,657,000
Deferred income taxes	5,243,000	5,122,000
Long-term debt	44,000,000	23,250,000
Contingent consideration	4,327,000	812,000
Total liabilities	$ 74,472,000	$ 43,841,000
Commitments and Contingencies (Note 7)
Stockholders’ equity:
Common stock, no par value; authorized 25,000,000 shares; issued and outstanding, 3,625,003 and 3,561,540 shares, respectively	$ 21,437,000	$ 17,751,000
Retained earnings	60,657,000	55,962,000
Accumulated other comprehensive loss	(1,450,000)	(234,000)
Total stockholders’ equity	80,644,000	73,479,000
Total liabilities and stockholders’ equity	$ 155,116,000	$ 117,320,000

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Dec. 31, 2015	Mar. 31, 2015
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares anthorized (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	3,625,003	3,561,540
Common stock, shares outstanding (in shares)	3,625,003	3,561,540

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Revenues	$ 19,913	$ 17,830	$ 59,847	$ 52,770
Cost of revenues	7,704	6,778	23,430	20,890
Gross profit	12,209	11,052	36,417	31,880
Operating expenses
Selling	1,517	1,772	5,604	5,177
General and administrative	5,885	4,740	17,404	12,581
Research and development	975	832	2,929	2,459
Total operating expenses	8,377	7,344	25,937	20,217
Operating income	3,832	3,708	10,480	11,663
Other (expense) income, net	(381)	5	(710)	(314)
Earnings before income taxes	3,451	3,713	9,770	11,349
Income taxes	1,090	1,310	3,351	4,005
Net income	$ 2,361	$ 2,403	$ 6,419	$ 7,344
Net income per share:
Basic (in dollars per share)	$ 0.65	$ 0.68	$ 1.79	$ 2.09
Diluted (in dollars per share)	$ 0.63	$ 0.66	$ 1.72	$ 2.01
Weighted average common shares outstanding:
Basic (in shares)	3,614	3,532	3,596	3,513
Diluted (in shares)	3,755	3,654	3,729	3,649

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Net income available for shareholders	$ 2,361	$ 2,403	$ 6,419	$ 7,344
Other comprehensive loss, net of tax:
Foreign currency translation	(1,847)	(250)	(1,216)	(250)
Total comprehensive income	$ 514	$ 2,153	$ 5,203	$ 7,094

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 6,419	$ 7,344
Depreciation and amortization	5,207	4,162
Stock-based compensation	$ 1,001	776
Loss on disposition of assets		$ 16
Deferred income taxes	$ 128
Foreign currency adjustments	85	$ (169)
Change in assets and liabilities, net of effects of acquisitions
Accounts receivable, net	72	(1,994)
Inventories, net	(1,901)	(3,340)
Prepaid expenses and other	40	538
Accounts payable	80	747
Accrued liabilities and taxes payable	710	(1,439)
Unearned revenues	(118)	$ (465)
Contingent consideration	(1,770)
Net cash provided by operating activities	9,953	$ 6,176
Cash flows from investing activities:
Acquisitions	(23,199)	(19,050)
Purchases of property, plant and equipment	(6,291)	(2,212)
Net cash used in investing activities	(29,490)	(21,262)
Cash flows from financing activities:
Proceeds from the issuance of debt	25,000	23,000
Payments on debt	(4,250)	(11,500)
Dividends	(1,724)	(1,618)
Proceeds from the exercise of stock options	1,800	1,137
Net cash provided by financing activities	20,826	11,019
Effect of exchange rate changes on cash and cash equivalents	(51)	(81)
Net increase (decrease) in cash and cash equivalents	1,238	(4,148)
Cash and cash equivalents at beginning of period	2,034	5,575
Cash and cash equivalents at end of period	3,272	1,427
Cash paid for:
Income taxes	3,375	2,789
Interest	563	354
Supplemental non-cash activity:
Repayment of employee loans for stock options		24
Contingent consideration as part of an acquisition	$ 9,541	$ 300

Note 1 - Description of Busines

Note 1 - Description of Business and Summary of Significant Accounting Policies	9 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	Note 1 -Description of Business and Summary of Significant Accounting Policies Description of Business Mesa Laboratories, Inc. was incorporated under the laws of the State of Colorado on March 26, 1982. The terms “we,” “us,” “our,” the “Company” or “Mesa” are used in this report to refer collectively to the parent company and the subsidiaries through which our various businesses are actually conducted. We pursue a strategy of focusing primarily on quality control products and services, which are sold into niche markets that are driven by regulatory requirements. We prefer markets that have limited competition where we can establish a commanding presence and achieve high gross margins. We are organized into four divisions across eight physical locations. Our Instruments Division designs, manufactures and markets quality control instruments and disposable products utilized in connection with the healthcare, pharmaceutical, food and beverage, medical device, industrial hygiene, environmental air sampling and semiconductor industries. Our Biological Indicators Division provides testing services, along with the manufacturing and marketing of biological indicators and distribution of chemical indicators used to assess the effectiveness of sterilization processes, including steam, hydrogen peroxide, ethylene oxide and radiation, in the hospital, dental, medical device and pharmaceutical industries. Our Continuous Monitoring Division designs, develops and markets systems which are used to monitor various environmental parameters such as temperature, humidity and differential pressure to ensure that critical storage and processing conditions are maintained in hospitals, pharmaceutical and medical device manufacturers, blood banks, pharmacies and a number of other laboratory and industrial environments. Our Cold Chain Division provides parameter monitoring of products in a cold chain, consulting services such as compliance monitoring, packaging development and validation or mapping of transport and storage containers, and thermal packaging products such as coolers, boxes, insulation materials and phase-change products to control temperature during transport. Basis of Presentation The accompanying condensed consolidated balance sheet as of March 31, 2015, has been derived from audited consolidated financial statements. The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as our annual audited consolidated financial statements and in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. In the opinion of management, such unaudited information includes all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of this interim information. Operating results and cash flows for interim periods are not necessarily indicative of results that can be expected for the entire year. The information included in this report should be read in conjunction with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended March 31, 2015. The summary of our significant accounting policies is incorporated by reference to our Annual Report on Form 10-K for the year ended March 31, 2015. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board “(IASB”) issued a jointly converged standard on the recognition of revenue from contracts with customers. The issued guidance converges the criteria for reporting revenues, as well as requiring disclosures sufficient to describe the nature, amount, timing and uncertainty of revenues and cash flows arising from these contracts. Companies can transition to the standard either retrospectively or as a cumulative effective adjustment as of the date of adoption. The new standard is effective for our fiscal year (and interim periods within that year) ending March 31, 2019. We are evaluating the impact of this standard on our condensed consolidated financial statements and disclosures. In November 2015, the FASB issued new requirements for the presentation of deferred tax assets and liabilities, requiring noncurrent classification for all deferred tax assets and liabilities on the condensed consolidated balance sheets. The requirements of the new standard are effective for our fiscal year (and interim periods within that year) ending March 31, 2018. We do not expect this guidance to have a material impact on our results of operations or financial position.

Note 2 - Acquisitions and Dispo

Note 2 - Acquisitions and Dispositions	9 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Mergers, Acquisitions and Dispositions Disclosures [Text Block]	Note 2 – Acquisition s and Dispositions Acquisitions For the nine months ended December 31, 2015, our acquisitions of businesses (net of cash acquired) totaled $32,740,000, which consisted of the following material acquisitions: Infitrak On July 6, 2015, we completed a business combination (the “Infitrak Acquisition”) whereby we acquired all of the common stock of 2396081 Ontario Inc. and its wholly owned operating subsidiary, Infitrak Inc. (collectively “Infitrak”), a company whose business provides consulting, packaging and measuring solutions for cold chain applications. The stock purchase agreement (the “Infitrak Agreement”) includes provisions for both contingent consideration based upon the two year growth in gross profit (as defined in the Earn-Out Agreement) of the packaging component of our cold chain business subsequent to the acquisition and for a holdback payment (subject to a post-closing adjustment), payable at the one year anniversary of the closing date. Under the terms of the Infitrak Agreement, we are required to pay contingent consideration if the gross profit (as defined in the Earn-Out Agreement) for the packaging component of our cold chain business for the two years subsequent to the acquisition meets certain levels. The potential consideration payable ranges from $0 to $15,000,000 CDN (approximately $0 to $10,800,000 as of December 31, 2015) and is based upon a sliding scale of growth in gross profit (as defined in the Earn-Out Agreement) for year one and year two of 30 to 70 percent and 15 to 75 percent, respectively. Based upon both historical and projected growth rates, we recorded $9,541,000 of contingent consideration payable which represented our best estimate of the amount that will ultimately be paid. After the finalization of our purchase accounting, any changes to the contingent consideration ultimately paid will result in additional income or expense in our condensed consolidated statements of income. We will continue to monitor the results of the packaging component of our cold chain business and we will adjust the contingent liability on a go forward basis, based on then current information. The contingent consideration is payable in two annual installments beginning in the second quarter of our year ending March 31, 2017. We expect to achieve savings and generate growth as we integrate the Infitrak operations and sales and marketing functions. These factors, among others, contributed to a purchase price in excess of the estimated fair value of the net identifiable assets acquired and, as a result, we recorded goodwill in connection with this transaction. The goodwill is not expected to be deductible for tax purposes and it was assigned to our Cold Chain segment. The Infitrak Acquisition constituted the acquisition of a business and was recognized at fair value. Due to the recent nature of the transaction, the purchase price allocation was based upon a preliminary estimated fair value of the assets and liabilities acquired as we are in the process of finalizing our valuation of the assets acquired and liabilities assumed. We determined the preliminary estimated fair values using discounted cash flow analyses and estimates made by management. The following reflects our preliminary allocation of the consideration, subject to customary purchase price adjustments in accordance with the Infitrak Agreement (in thousands): Cash consideration $ 8,748 Holdback payment liability 637 Contingent consideration liability 9,541 Aggregate consideration $ 18,926 Accounts receivable, net $ 925 Inventories, net 310 Property, plant and equipment, net 530 Intangibles, net 5,869 Goodwill 12,529 Accounts payable (470 ) Accrued liabilities (767 ) Total purchase price allocation $ 18,926 The accompanying condensed consolidated statements of income include the results of the Infitrak Acquisition from the acquisition date of July 6, 2015. The pro forma effects of the acquisition on the results of operations as if the acquisition had been completed on April 1, 2015 and 2014, are as follows (in thousands, except per share data): Three Months E nded December 31 , Nine Months E nded December 31 , 201 5 201 4 201 5 201 4 Revenues $ 19,913 $ 18,592 $ 61,687 $ 55,057 Net income 2,361 2,493 6,721 7,615 Net Income per common share: Basic $ 0.65 $ 0.71 $ 1.87 $ 2.17 Diluted 0.63 0.68 1.80 2.09 North Bay On August 6, 2015, we completed a business combination (the “North Bay Acquisition”) whereby we acquired substantially all of the assets (other than certain fixed assets) and certain liabilities of the dental sterilizer testing business of North Bay Bioscience, LLC (“North Bay”). The asset purchase agreement (the “North Bay Agreement”) includes a provision for a holdback payment (subject to a post-closing adjustment), payable at the one year anniversary of the closing date. We expect to achieve savings and generate growth as we integrate the North Bay operations and sales and marketing functions. These factors, among others, contributed to a purchase price in excess of the estimated fair value of the net identifiable assets acquired and, as a result, we recorded goodwill in connection with this transaction. The goodwill is expected to be deductible for tax purposes and it was assigned to our Biological Indicators segment. The North Bay Acquisition constituted the acquisition of a business and was recognized at fair value. We determined the estimated fair values using discounted cash flow analyses and estimates made by management. The following reflects our allocation of the consideration, subject to customary purchase price adjustments in accordance with the North Bay Agreement (in thousands): Cash consideration $ 10,322 Holdback payment liability 1,000 Aggregate consideration $ 11,322 Cash $ 20 Accounts receivable, net 285 Inventories, net 85 Property, plant and equipment, net 229 Intangibles, net 4,454 Goodwill 7,962 Accrued liabilities (100 ) Unearned revenues (1,613 ) Total purchase price allocation $ 11,322 The accompanying condensed consolidated statements of income include the results of the North Bay Acquisition from the acquisition date of August 6, 2015. The pro forma effects of the acquisition on the results of operations as if the acquisition had been completed on April 1, 2015 and 2014, are as follows (in thousands, except per share data): Three Months E nded December 31 , Nine Months E nded December 31 , 201 5 201 4 201 5 201 4 Revenues $ 19,913 $ 18,910 $ 61,241 $ 56,009 Net income 2,361 2,553 6,713 7,793 Net Income per common share: Basic $ 0.65 $ 0.72 $ 1.87 $ 2.22 Diluted 0.63 0.70 1.80 2.14

Note 3 - Inventories

Note 3 - Inventories	9 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note 3 - Inventories Inventories consist of the following (in thousands): December 31, 2015 March 31, 2015 Raw materials $ 9,282 $ 10,366 Work-in-process 549 530 Finished goods 5,383 1,913 Less: reserve (498 ) (389 ) $ 14,716 $ 12,420

Note 4 - Long-term Debt

Note 4 - Long-term Debt	9 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Debt Disclosure [Text Block]	Note 4 - Long-T erm Debt Long-term debt consists of the following (in thousands): December 31, 2015 March 31, 201 5 Line of credit (2.42% at December 31, 2015) $ 28,500 $ 13,500 Term loan (2.42% at December 31, 2015) 18,500 12,750 Less: current portion (3,000 ) (3,000 ) Long-term portion $ 44,000 $ 23,250 In February 2012, we entered into a three year agreement (the “Credit Facility”) for a $20,000,000 revolving line of credit (“Line of Credit”) and up to $1,000,000 of letters of credit. Funds from the Credit Facility were used for general working capital and corporate needs, retiring existing debt, or to support acquisitions and capital expenditures. In April 2014, the Credit Facility was amended to include a $15,000,000 term loan (the “Initial Term Loan”) and to extend the maturity date of the Credit Facility to June 30, 2017. On July 1, 2015, we further amended our Credit Facility to extend the maturity date to June 30, 2020, increase the Line of Credit to $50,000,000 and establish a new $20,000,000 term loan (the “Term Loan”). The majority of the proceeds from the Term Loan were used to pay down the remaining $12,000,000 balance of the Initial Term Loan. The remaining $8,000,000 was combined with a $1,000,000 draw under the Line of Credit to fund the Infitrak Acquisition (see Note 2). Under the Line of Credit, indebtedness bears interest at either: (1) LIBOR, as defined, plus an applicable margin ranging from 1.5% to 2.25%; or (2) the bank’s commercial bank floating rate (“CBFR”), which is the bank’s prime rate adjusted down by 0.5%. We elect the interest rate with each borrowing under the line of credit. In addition, there is an unused line fee of 0.25%. Letter of credit fees are based on the applicable LIBOR rate. The Term Loan bears interest at LIBOR, as defined, plus an applicable margin ranging from 1.5% to 2.25% and requires 20 quarterly principal payments (the first due date was July 15, 2015) in the amount of $750,000 with the remaining balance of principal and accrued interest due on June 30, 2020. The Credit Facility is secured by all of our assets and requires us to maintain a ratio of funded debt to our trailing four quarters of EBIDTA, as defined, of 3.25 to 1.0 through March 31, 2016 and 3.0 to 1.0 thereafter, and a minimum fixed charge coverage ratio of 1.35 to 1.0. We were in compliance with the required covenants at December 31, 2015. As of December 31, 2015, future contractual maturities of debt as are as follows (in thousands): Year E nding March 31, 2016 $ 750 2017 3,000 2018 3,000 2019 3,000 2020 3,000 Thereafter 34,250 $ 47,000 In January 2016, we made a $750,000 required principle payment on the Term Loan.

Note 5 - Stock-based Compensati

Note 5 - Stock-based Compensation	9 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 5 - Stock-B ased Compensation Amounts recognized in the condensed consolidated financial statements related to stock-based compensation are as follows (in thousands, except per share data): Three Months E nded December 31 , Nine Months E nded December 31 , 2015 2014 2015 2014 Total cost of stock-based compensation charged against income before income taxes $ 344 $ 260 $ 1,001 $ 776 Amount of income tax benefit recognized in earnings 109 92 343 274 Amount charged against net income $ 235 $ 168 $ 658 $ 502 Impact on net income per common share: Basic $ 0.07 $ 0.05 $ 0.18 $ 0.14 Diluted 0.06 0.05 $ 0.18 0.14 Stock-based compensation expense is included in cost of revenues, selling, and general and administrative expense in the accompanying condensed consolidated statements of income. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model (“Black-Scholes”). We use historical data to estimate the expected price volatility, the expected stock option life and expected forfeiture rate. The risk-free interest rate is based on the United States Treasury yield curve in effect at the time of grant for the estimated life of the stock option. The dividend yield is calculated based upon the dividend payments made during the prior four quarters as a percent of the average stock price for that period. The following is a summary of stock option activity for the nine months ended December 31, 2015: Number of Weighted- A verage Exercise Price per Share Weighted- A verage Remaining Contractual Term Aggregate Intrinsic Value (000s) Outstanding at March 31, 2015 437,248 $ 55.81 4.9 $ 9,445 Stock options granted 183,550 72.87 6.9 Stock options forfeited (12,384 ) 76.89 7.2 Stock options expired -- -- Stock options exercised (72,803 ) 39.98 Outstanding at December 31, 2015 535,611 63.32 5.3 19,412 Exercisable at December 31, 2015 173,949 41.4 3.6 10,107 The total intrinsic value of stock options exercised was $4,263,767 and $2,003,000 for the nine months ended December 31, 2015 and 2014, respectively. A summary of the status of our unvested stock option shares as of December 31, 2015 is as follows: Number of Weighted- A verage Unvested at March 31, 2015 274,038 $ 18.42 Stock options granted 183,550 18.77 Stock options forfeited (12,384 ) 19.53 Stock options vested (83,542 ) 14.56 Unvested at December 31, 2015 361,662 19.43 As of December 31, 2015, there was $4,966,245 of total unrecognized compensation expense related to unvested stock options. As of December 31, 2015, we have 914,110 shares available for future stock option grants.

Note 6 - Net Income Per Share

Note 6 - Net Income Per Share	9 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 6 - Net Income Per Share Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted net income per share is computed similarly to basic net income per share, except that it includes the potential dilution that could occur if dilutive securities were exercised. The following table presents a reconciliation of the denominators used in the computation of net income per share - basic and diluted (in thousands, except per share data): Three M onths E nded December 31 , Nine M onths E nded December 31 , 2015 201 4 2015 2014 Net income available for shareholders $ 2,361 $ 2,403 $ 6,419 $ 7,344 Weighted average outstanding shares of common stock 3,614 3,532 3,596 3,513 Dilutive effect of stock options 141 122 133 136 Common stock and equivalents 3,755 3,654 3,729 3,649 Net income per share: Basic $ 0.65 $ 0.68 $ 1.79 $ 2.09 Diluted 0.63 0.66 1.72 2.01 For the three and nine months ended December 31, 2015, 91,000 and 136,000 outstanding stock options, respectively, were excluded from the calculation of diluted net income per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares and, therefore, their inclusion would have been anti-dilutive. For the three and nine months ended December 31, 2014, 155,000 and 173,000 outstanding stock options, respectively, were excluded from the calculation of diluted net income per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares and, therefore, their inclusion would have been anti-dilutive.

Note 7 - Commitments and Contin

Note 7 - Commitments and Contingencies	9 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 7- Commitments and Contingencies Under the terms of the Amega Agreement, we were required to pay contingent consideration (the “Amega Earn-Out”) if the cumulative revenues for our Continuous Monitoring Division for the three years subsequent to the acquisition met certain levels. The potential consideration payable ranged from $0 to $10,000,000 and was based upon a sliding scale of three-year cumulative revenues between $31,625,000 and $43,500,000. Based upon both historical and projected growth rates, we recorded $500,000 of contingent consideration payable which represented our best estimate of the amount that would ultimately be paid. Any changes to the contingent consideration ultimately paid would have resulted in additional income or expense in our condensed consolidated statements of income. The contingent consideration was payable in the third quarter of our year ending March 31, 2017. In November 2014, Amega and its owner Anthony Amato (“Amato”) filed a complaint ( Anthony Amato and Amega Scientific Corporation v. Mesa Laboratories, Inc., Civil Action No. 1:14-cv-03228 In October 2015, we entered into a settlement agreement (the “Amato Settlement”) whereby we paid Amato $3,165,000. In exchange, Amato agreed to dismiss the complaint, release Mesa of any and all claims by Amega and Amato, and relieve us of any future payment obligation under the Amega Earn-Out. Insurance covered $415,000 of the settlement payment and we had $1,041,000 accrued on our condensed consolidated balance sheet remaining from the original hold back and contingent consideration payable. The remaining $1,709,000 was recorded as general and administrative expense in the accompanying condensed consolidated statements of income for the nine months ended December 31, 2015. Under the terms of the PCD Agreement, we are required to pay contingent consideration if the cumulative revenues for our process challenge device business for the three years subsequent to the acquisition meet certain levels. The potential consideration payable ranges from $0 to $1,500,000 and is based upon a sliding scale of three-year cumulative revenues between $9,900,000 and $12,600,000. Based upon both historical and projected growth rates, we recorded $300,000 of contingent consideration payable which represented our best estimate of the amount that will ultimately be paid. We paid $150,000 of the contingent consideration during the three months ended December 31, 2015 (based upon the current run rate projected over the entire three-year contingent consideration period). This amount is subject to modification at the end of the second and third years of the earn-out period based upon the actual revenues earned over the contingent consideration period. Any changes to the contingent consideration ultimately paid will result in additional income or expense in our condensed consolidated statements of income. We will continue to monitor the results of our process challenge device business and we will adjust the contingent liability on a go forward basis, based on then current information. Under the terms of the Infitrak Agreement, we are required to pay contingent consideration if the gross profit (as defined in the Earn-Out Agreement) for the packaging component of our cold chain business for the two years subsequent to the acquisition meets certain levels. The potential consideration payable ranges from $0 to $15,000,000 CDN (approximately $0 to $10,800,000 as of December 31, 2015) and is based upon a sliding scale of growth in gross profit (as defined in the Earn-Out Agreement) for year one and year two of 30 to 70 percent and 15 to 75 percent, respectively. Based upon both historical and projected growth rates, we recorded $9,541,000 (valued at approximately $8,700,000 as of December 31, 2015 based on the then current exchange rate) of contingent consideration payable which represented our best estimate of the amount that will ultimately be paid. After the finalization of our purchase accounting, any changes to the contingent consideration ultimately paid will result in additional income or expense in our condensed consolidated statements of income. We will continue to monitor the results of our cold chain business and we will adjust the contingent liability on a go forward basis, based on then current information. The contingent consideration is payable in two annual installments beginning in the second quarter of our year ending March 31, 2017. A company is required to collect and remit state sales tax from certain of its customers if that company is determined to have “nexus” in a particular state. The determination of nexus varies state by state and often requires knowledge of each jurisdiction’s tax case law. During the year ended March 31, 2013, we determined that there are states in which we most likely had established nexus during prior periods without properly collecting and remitting sales tax. We recorded an estimate of $100,000 associated with one specific state but we were unable to estimate our remaining exposure at that time. During the year ended March 31, 2014, we completed our analysis associated with the remaining states and we recorded an estimate of $1,408,000, which was included in other accrued expenses on the consolidated balance sheets and in general and administrative expense on the consolidated statements of income for the year ended March 31, 2014. That estimate was based upon facts and circumstances known at such time and our ultimate liability was subject to change as further analysis is completed and state sales tax returns are filed. During the year ended March 31, 2015 we successfully completed and filed several state sales tax returns which concluded our obligation for historical sales taxes in those states. In addition we continued to work through the process in the remaining states. As a result of this work, we determined that our exposure had increased above and beyond our original accrual and as a result, we recorded an additional accrual of $460,000 during the year ended March 31, 2015. During the nine months ended December 31, 2015 we successfully completed and filed additional state sales tax returns which concluded our obligation for historical sales taxes in those remaining states.

Note 8 - Comprehensive Income

Note 8 - Comprehensive Income	9 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Comprehensive Income (Loss) Note [Text Block]	Note 8 – Comprehensive Income The following table summarizes the changes in each component of accumulated other comprehensive income (“AOCI”), net of tax (in thousands): Foreign Currency Translation AOCI Balance at September 30, 2015 $ 397 $ 397 Quarter ended September 30, 2015: Unrealized loss arising during the period (1,847 ) (1,847 ) Balance at December 31, 2015 $ (1,450 ) $ (1,450 ) Foreign Currency Translation AOCI Balance at September 30, 2014 $ -- $ -- Quarter ended September 30, 2014: Unrealized loss arising during the period (250 ) (250 ) Balance at December 31, 2014 $ (250 ) $ (250 ) Foreign Currency Translation AOCI Balance at March 31, 2015 $ (234 ) $ (234 ) Nine months ended December 31, 2015: Unrealized loss arising during the period (1,216 ) (1,216 ) Balance at December 31, 2015 $ (1,450 ) $ (1,450 ) Foreign Currency Translation AOCI Balance at March 31, 2014 $ -- $ -- Nine months ended December 31, 2014: Unrealized gain arising during the period (250 ) (250 ) Balance at December 31, 2014 $ (250 ) $ (250 )

Note 9 - Segment Information

Note 9 - Segment Information	9 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note 9 - Segment Information We have four reporting segments: Biological Indicators, Instruments, Continuous Monitoring and Cold Chain. The following tables set forth our segment information (in thousands): Three Months Ended December 31, 2015 Biological Indicators Instruments Continuous Monitoring Cold Chain Total Revenues $ 7,819 $ 8,260 $ 2,595 $ 1,239 $ 19,913 Gross profit $ 4,869 $ 5,511 $ 1,254 $ 575 $ 12,209 Selling expenses 505 784 132 96 1,517 $ 4,364 $ 4,727 $ 1,122 $ 479 10,692 Reconciling items (1) (7,241 ) Earnings before income taxes $ 3,451 Three Months Ended December 31, 2014 Biological Indicators Instruments Continuous Monitoring Cold Chain Total Revenues $ 6,964 $ 8,216 $ 2,650 $ -- $ 17,830 Gross profit $ 4,194 $ 5,412 $ 1,446 $ -- $ 11,052 Selling expenses 365 919 488 -- 1,772 $ 3,829 $ 4,493 $ 958 $ -- 9,280 Reconciling items (1) (5,567 ) Earnings before income taxes $ 3,713 Nine Months Ended December 31, 2015 Biological Indicators Instruments Continuous Monitoring Cold Chain Total Revenues $ 23,537 $ 25,819 $ 7,412 $ 3,079 $ 59,847 Gross profit $ 15,157 $ 16,571 $ 3,246 $ 1,443 $ 36,417 Selling expenses 1,372 2,975 1,098 159 5,604 $ 13,785 $ 13,596 $ 2,148 $ 1,284 30,813 Reconciling items (1) (21,043 ) Earnings before income taxes $ 9,770 Nine Months Ended December 31, 2014 Biological Indicators Instruments Continuous Monitoring Cold Chain Total Revenues $ 19,822 $ 24,966 $ 7,982 $ -- $ 52,770 Gross profit $ 12,029 $ 15,794 $ 4,057 $ -- $ 31,880 Selling expenses 766 3,093 1,318 -- 5,177 $ 11,263 $ 12,701 $ 2,739 $ -- 26,703 Reconciling items (1) (15,354 ) Earnings before income taxes $ 11,349 (1) December 31, 2015 March 31, 201 5 Total assets Biological Indicators $ 54,285 $ 36,304 Instruments 50,436 44,401 Continuous Monitoring 25,965 31,558 Cold Chain 18,182 -- Corporate and administrative 6,813 5,057 $ 155,681 $ 117,320 All long-lived assets are located in the United States except for $6,470,000 and $16,839,000 which are associated with our French and Canadian subsidiaries, respectively. Revenues from external customers are attributed to individual countries based upon locations to which the product is shipped or exported, as follows (in thousands): Three M onths E nded December 31 , Nine Months Ended December 31, 201 5 2014 2015 2014 Net revenues from unaffiliated customers: United States $ 12,787 $ 11,423 $ 37,510 $ 29,612 Foreign 7,126 6,407 22,337 23,158 $ 19,913 $ 17,830 $ 59,847 $ 52,770 No foreign country exceeds 10 percent of total revenues.

Note 10 - Income Taxes

Note 10 - Income Taxes	9 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 10 – Income Taxes For interim income tax reporting, we estimate our annual effective tax rate and apply this effective tax rate to our year to date pre-tax income. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, settlement with taxing authorities and foreign currency fluctuations. Our effective income tax rate was 31.6 and 35.3 percent for the three months ended December 31, 2015 and 2014, respectively and 34.3 and 35.3 percent for the nine months ended December 31, 2015 and 2014, respectively. The effective tax rate for the three and nine months ended December 31, 2015 differed from the statutory federal rate of 35 percent primarily as a result of the impact of state income taxes, domestic manufacturing deductions, research and development tax credits and certain discrete period items. We anticipate that our effective tax rate for the year ending March 31, 2016 will approximate 34 to 37 percent.

Note 11 - Subsequent Event

Note 11 - Subsequent Event	9 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Subsequent Events [Text Block]	Note 11 - Subsequent Event In January 2016, our Board of Directors declared a quarterly cash dividend of $0.16 per share of common stock, payable on March 15, 2016, to shareholders of record at the close of business on February 29, 2016.

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying condensed consolidated balance sheet as of March 31, 2015, has been derived from audited consolidated financial statements. The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as our annual audited consolidated financial statements and in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. In the opinion of management, such unaudited information includes all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of this interim information. Operating results and cash flows for interim periods are not necessarily indicative of results that can be expected for the entire year. The information included in this report should be read in conjunction with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended March 31, 2015. The summary of our significant accounting policies is incorporated by reference to our Annual Report on Form 10-K for the year ended March 31, 2015.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board “(IASB”) issued a jointly converged standard on the recognition of revenue from contracts with customers. The issued guidance converges the criteria for reporting revenues, as well as requiring disclosures sufficient to describe the nature, amount, timing and uncertainty of revenues and cash flows arising from these contracts. Companies can transition to the standard either retrospectively or as a cumulative effective adjustment as of the date of adoption. The new standard is effective for our fiscal year (and interim periods within that year) ending March 31, 2019. We are evaluating the impact of this standard on our condensed consolidated financial statements and disclosures. In November 2015, the FASB issued new requirements for the presentation of deferred tax assets and liabilities, requiring noncurrent classification for all deferred tax assets and liabilities on the condensed consolidated balance sheets. The requirements of the new standard are effective for our fiscal year (and interim periods within that year) ending March 31, 2018. We do not expect this guidance to have a material impact on our results of operations or financial position.

Note 2 - Acquisitions and Dis19

Note 2 - Acquisitions and Dispositions (Tables)	9 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	Cash consideration $ 8,748 Holdback payment liability 637 Contingent consideration liability 9,541 Aggregate consideration $ 18,926 Accounts receivable, net $ 925 Inventories, net 310 Property, plant and equipment, net 530 Intangibles, net 5,869 Goodwill 12,529 Accounts payable (470 ) Accrued liabilities (767 ) Total purchase price allocation $ 18,926 Cash consideration $ 10,322 Holdback payment liability 1,000 Aggregate consideration $ 11,322 Cash $ 20 Accounts receivable, net 285 Inventories, net 85 Property, plant and equipment, net 229 Intangibles, net 4,454 Goodwill 7,962 Accrued liabilities (100 ) Unearned revenues (1,613 ) Total purchase price allocation $ 11,322
Business Acquisition, Pro Forma Information [Table Text Block]	Three Months E nded December 31 , Nine Months E nded December 31 , 201 5 201 4 201 5 201 4 Revenues $ 19,913 $ 18,592 $ 61,687 $ 55,057 Net income 2,361 2,493 6,721 7,615 Net Income per common share: Basic $ 0.65 $ 0.71 $ 1.87 $ 2.17 Diluted 0.63 0.68 1.80 2.09 Three Months E nded December 31 , Nine Months E nded December 31 , 201 5 201 4 201 5 201 4 Revenues $ 19,913 $ 18,910 $ 61,241 $ 56,009 Net income 2,361 2,553 6,713 7,793 Net Income per common share: Basic $ 0.65 $ 0.72 $ 1.87 $ 2.22 Diluted 0.63 0.70 1.80 2.14

Note 3 - Inventories (Tables)

Note 3 - Inventories (Tables)	9 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Inventory, Current [Table Text Block]	December 31, 2015 March 31, 2015 Raw materials $ 9,282 $ 10,366 Work-in-process 549 530 Finished goods 5,383 1,913 Less: reserve (498 ) (389 ) $ 14,716 $ 12,420

Note 4 - Long-term Debt (Tables

Note 4 - Long-term Debt (Tables)	9 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Debt [Table Text Block]	December 31, 2015 March 31, 201 5 Line of credit (2.42% at December 31, 2015) $ 28,500 $ 13,500 Term loan (2.42% at December 31, 2015) 18,500 12,750 Less: current portion (3,000 ) (3,000 ) Long-term portion $ 44,000 $ 23,250
Schedule of Maturities of Long-term Debt [Table Text Block]	Year E nding March 31, 2016 $ 750 2017 3,000 2018 3,000 2019 3,000 2020 3,000 Thereafter 34,250 $ 47,000

Note 5 - Stock-based Compensa22

Note 5 - Stock-based Compensation (Tables)	9 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Three Months E nded December 31 , Nine Months E nded December 31 , 2015 2014 2015 2014 Total cost of stock-based compensation charged against income before income taxes $ 344 $ 260 $ 1,001 $ 776 Amount of income tax benefit recognized in earnings 109 92 343 274 Amount charged against net income $ 235 $ 168 $ 658 $ 502 Impact on net income per common share: Basic $ 0.07 $ 0.05 $ 0.18 $ 0.14 Diluted 0.06 0.05 $ 0.18 0.14
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Number of Weighted- A verage Exercise Price per Share Weighted- A verage Remaining Contractual Term Aggregate Intrinsic Value (000s) Outstanding at March 31, 2015 437,248 $ 55.81 4.9 $ 9,445 Stock options granted 183,550 72.87 6.9 Stock options forfeited (12,384 ) 76.89 7.2 Stock options expired -- -- Stock options exercised (72,803 ) 39.98 Outstanding at December 31, 2015 535,611 63.32 5.3 19,412 Exercisable at December 31, 2015 173,949 41.4 3.6 10,107
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]	Number of Weighted- A verage Unvested at March 31, 2015 274,038 $ 18.42 Stock options granted 183,550 18.77 Stock options forfeited (12,384 ) 19.53 Stock options vested (83,542 ) 14.56 Unvested at December 31, 2015 361,662 19.43

Note 6 - Net Income Per Share (

Note 6 - Net Income Per Share (Tables)	9 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three M onths E nded December 31 , Nine M onths E nded December 31 , 2015 201 4 2015 2014 Net income available for shareholders $ 2,361 $ 2,403 $ 6,419 $ 7,344 Weighted average outstanding shares of common stock 3,614 3,532 3,596 3,513 Dilutive effect of stock options 141 122 133 136 Common stock and equivalents 3,755 3,654 3,729 3,649 Net income per share: Basic $ 0.65 $ 0.68 $ 1.79 $ 2.09 Diluted 0.63 0.66 1.72 2.01

Note 8 - Comprehensive Income (

Note 8 - Comprehensive Income (Tables)	9 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Foreign Currency Translation AOCI Balance at September 30, 2015 $ 397 $ 397 Quarter ended September 30, 2015: Unrealized loss arising during the period (1,847 ) (1,847 ) Balance at December 31, 2015 $ (1,450 ) $ (1,450 ) Foreign Currency Translation AOCI Balance at September 30, 2014 $ -- $ -- Quarter ended September 30, 2014: Unrealized loss arising during the period (250 ) (250 ) Balance at December 31, 2014 $ (250 ) $ (250 ) Foreign Currency Translation AOCI Balance at March 31, 2015 $ (234 ) $ (234 ) Nine months ended December 31, 2015: Unrealized loss arising during the period (1,216 ) (1,216 ) Balance at December 31, 2015 $ (1,450 ) $ (1,450 ) Foreign Currency Translation AOCI Balance at March 31, 2014 $ -- $ -- Nine months ended December 31, 2014: Unrealized gain arising during the period (250 ) (250 ) Balance at December 31, 2014 $ (250 ) $ (250 )

Note 9 - Segment Information (T

Note 9 - Segment Information (Tables)	9 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended December 31, 2015 Biological Indicators Instruments Continuous Monitoring Cold Chain Total Revenues $ 7,819 $ 8,260 $ 2,595 $ 1,239 $ 19,913 Gross profit $ 4,869 $ 5,511 $ 1,254 $ 575 $ 12,209 Selling expenses 505 784 132 96 1,517 $ 4,364 $ 4,727 $ 1,122 $ 479 10,692 Reconciling items (1) (7,241 ) Earnings before income taxes $ 3,451 Three Months Ended December 31, 2014 Biological Indicators Instruments Continuous Monitoring Cold Chain Total Revenues $ 6,964 $ 8,216 $ 2,650 $ -- $ 17,830 Gross profit $ 4,194 $ 5,412 $ 1,446 $ -- $ 11,052 Selling expenses 365 919 488 -- 1,772 $ 3,829 $ 4,493 $ 958 $ -- 9,280 Reconciling items (1) (5,567 ) Earnings before income taxes $ 3,713 Nine Months Ended December 31, 2015 Biological Indicators Instruments Continuous Monitoring Cold Chain Total Revenues $ 23,537 $ 25,819 $ 7,412 $ 3,079 $ 59,847 Gross profit $ 15,157 $ 16,571 $ 3,246 $ 1,443 $ 36,417 Selling expenses 1,372 2,975 1,098 159 5,604 $ 13,785 $ 13,596 $ 2,148 $ 1,284 30,813 Reconciling items (1) (21,043 ) Earnings before income taxes $ 9,770 Nine Months Ended December 31, 2014 Biological Indicators Instruments Continuous Monitoring Cold Chain Total Revenues $ 19,822 $ 24,966 $ 7,982 $ -- $ 52,770 Gross profit $ 12,029 $ 15,794 $ 4,057 $ -- $ 31,880 Selling expenses 766 3,093 1,318 -- 5,177 $ 11,263 $ 12,701 $ 2,739 $ -- 26,703 Reconciling items (1) (15,354 ) Earnings before income taxes $ 11,349
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	December 31, 2015 March 31, 201 5 Total assets Biological Indicators $ 54,285 $ 36,304 Instruments 50,436 44,401 Continuous Monitoring 25,965 31,558 Cold Chain 18,182 -- Corporate and administrative 6,813 5,057 $ 155,681 $ 117,320
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	Three M onths E nded December 31 , Nine Months Ended December 31, 201 5 2014 2015 2014 Net revenues from unaffiliated customers: United States $ 12,787 $ 11,423 $ 37,510 $ 29,612 Foreign 7,126 6,407 22,337 23,158 $ 19,913 $ 17,830 $ 59,847 $ 52,770

Note 1 - Description of Busin26

Note 1 - Description of Business and Summary of Significant Accounting Policies (Details Textual)	9 Months Ended
	Dec. 31, 2015
Number of Operating Segments	4
Number of Physical Locations in Which Entity is Organized	8

Note 2 - Acquisitions and Dis27

Note 2 - Acquisitions and Dispositions (Details Textual)	1 Months Ended	9 Months Ended
	Jul. 31, 2015	Dec. 31, 2015USD ($)	Sep. 30, 2016	Dec. 31, 2015CAD	Dec. 31, 2015USD ($)	Jul. 06, 2015CAD	Jul. 06, 2015USD ($)	Mar. 31, 2015USD ($)
Infitrak Acquisition [Member] | Minimum [Member] | Contingent Consideration Year 1 [Member]
Business Combination, Contingent Consideration, Sliding Scale of Growth				30.00%	30.00%	30.00%	30.00%
Infitrak Acquisition [Member] | Minimum [Member] | Contingent Consideration Year 2 [Member]
Business Combination, Contingent Consideration, Sliding Scale of Growth				15.00%	15.00%	15.00%	15.00%
Infitrak Acquisition [Member] | Maximum [Member] | Contingent Consideration Year 1 [Member]
Business Combination, Contingent Consideration, Sliding Scale of Growth				70.00%	70.00%	70.00%	70.00%
Infitrak Acquisition [Member] | Maximum [Member] | Contingent Consideration Year 2 [Member]
Business Combination, Contingent Consideration, Sliding Scale of Growth				75.00%	75.00%	75.00%	75.00%
Infitrak Acquisition [Member] | Scenario, Forecast [Member]
Business Combination, Contingent Consideration, Payment Installments			2
Infitrak Acquisition [Member]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low					$ 0	CAD 0
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High					10,800,000	CAD 15,000,000
Business Combination, Contingent Consideration, Liability				CAD 9,541,000	8,700,000		$ 9,541,000
Business Acquisition, Earn Out Period for Determination of Contingent Consideration	2 years
Payments to Acquire Businesses, Net of Cash Acquired		$ 32,740,000
Business Combination, Contingent Consideration, Liability					$ 4,327,000			$ 812,000

Note 2 - Acquisitions and Dis28

Note 2 - Acquisitions and Dispositions - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Aug. 06, 2015	Jul. 06, 2015
Infitrak Acquisition [Member]
Cash consideration		$ 8,748
Holdback payment liability		637
Contingent consideration liability		9,541
Aggregate consideration		18,926
Accounts receivable, net		925
Inventories, net		310
Property, plant and equipment, net		530
Intangibles, net		5,869
Goodwill		12,529
Accounts payable		470
Accrued liabilities		767
Total purchase price allocation		$ 18,926
North Bay Acquisition [Member]
Cash consideration	$ 10,322
Holdback payment liability	1,000
Aggregate consideration	11,322
Accounts receivable, net	285
Inventories, net	85
Property, plant and equipment, net	229
Intangibles, net	4,454
Goodwill	7,962
Accrued liabilities	100
Total purchase price allocation	11,322
Cash	20
Unearned revenues	$ 1,613

Note 2 - Acquisitions and Dis29

Note 2 - Acquisitions and Dispositions - Pro Forma Effects (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Infitrak Acquisition [Member]
Revenues	$ 19,913	$ 18,592	$ 61,687	$ 55,057
Net income	$ 2,361	$ 2,493	$ 6,721	$ 7,615
Net Income per common share:
Basic (in dollars per share)	$ 0.65	$ 0.71	$ 1.87	$ 2.17
Diluted (in dollars per share)	$ 0.63	$ 0.68	$ 1.80	$ 2.09
Revenues	$ 19,913	$ 18,592	$ 61,687	$ 55,057
Net income	2,361	2,493	6,721	7,615
North Bay Acquisition [Member]
Revenues	19,913	18,910	61,241	56,009
Net income	$ 2,361	$ 2,553	$ 6,713	$ 7,793
Net Income per common share:
Basic (in dollars per share)	$ 0.65	$ 0.72	$ 1.87	$ 2.22
Diluted (in dollars per share)	$ 0.63	$ 0.70	$ 1.80	$ 2.14
Revenues	$ 19,913	$ 18,910	$ 61,241	$ 56,009
Net income	$ 2,361	$ 2,553	$ 6,713	$ 7,793

Note 3 - Inventories - Summary

Note 3 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Raw materials	$ 9,282	$ 10,366
Work-in-process	549	530
Finished goods	5,383	1,913
Less: reserve	(498)	(389)
Total	$ 14,716	$ 12,420

Note 4 - Long-term Debt (Detail

Note 4 - Long-term Debt (Details Textual)	Jul. 02, 2015USD ($)	Jan. 31, 2016USD ($)	Feb. 29, 2012USD ($)	Apr. 30, 2014USD ($)
Line of Credit [Member] | Infitrak Acquisition [Member]
Proceeds from Lines of Credit	$ 1,000,000
Line of Credit [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	1.50%
Line of Credit [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.25%
Line of Credit [Member] | Debt Instrument, Variable Rate Base CBFR Using One Month LIBOR [Member]
Debt Instrument, Basis Spread on Variable Rate Used to Calculate Commercial Bank Floating Rate	0.50%
Line of Credit [Member] | Through March 31, 2016 [Member]
Debt Instrument Covenant, Ratio of Funded Debt to Consolidated EBITDA	3.25
Line of Credit [Member] | After March 31, 2016 [Member]
Debt Instrument Covenant, Ratio of Funded Debt to Consolidated EBITDA	3
Line of Credit [Member]
Debt Instrument, Term			3 years
Line of Credit Facility, Maximum Borrowing Capacity	$ 50,000,000
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.25%
Debt Instrument Covenant, Fixed Charge Coverage Ratio	1.35
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 20,000,000
Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 1,000,000
Initial Term Loan [Member]
Long-term Debt, Gross				$ 15,000,000
Term Loan [Member] | Infitrak Acquisition [Member]
Proceeds from Issuance of Long-term Debt	$ 8,000,000
Term Loan [Member] | Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	2.25%
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	1.50%
Term Loan [Member] | Subsequent Event [Member]
Repayments of Long-term Debt		$ 750,000
Term Loan [Member]
Long-term Debt, Gross	$ 20,000,000
Repayments of Long-term Debt	$ 12,000,000
Line of Credit Facility, Periodic Payment, Number of Quarterly Payments	20
Line of Credit Facility, Periodic Payment, Principal	$ 750,000

Note 4 - Long-Term Debt - Long-

Note 4 - Long-Term Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Line of Credit [Member]
Long-term debt	$ 28,500	$ 13,500
Term Loan [Member]
Long-term debt	18,500	12,750
Long-term debt	47,000
Less: current portion	(3,000)	(3,000)
Long-term portion	$ 44,000	$ 23,250

Note 4 - Long-Term Debt - Lon33

Note 4 - Long-Term Debt - Long-term Debt (Details) (Parentheticals)	Dec. 31, 2015
Line of Credit [Member]
Line of credit, interest rate at end of period	2.42%
Term Loan [Member]
Term loan, interest rate at end of period	2.42%

Note 4 - Long-Term Debt - Futur

Note 4 - Long-Term Debt - Future Contractual Maturities of Debt (Details) $ in Thousands	Dec. 31, 2015USD ($)
2,016	$ 750
2,017	3,000
2,018	3,000
2,019	3,000
2,020	3,000
Thereafter	34,250
Total	$ 47,000

Note 5 - Stock-based Compensa35

Note 5 - Stock-based Compensation (Details Textual) - USD ($)	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 4,263,767	$ 2,003,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 4,966,245
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	914,110

Note 5 - Stock-Based Compensa36

Note 5 - Stock-Based Compensation - Allocation of Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Total cost of stock-based compensation charged against income before income taxes	$ 344	$ 260	$ 1,001	$ 776
Amount of income tax benefit recognized in earnings	109	92	343	274
Amount charged against net income	$ 235	$ 168	$ 658	$ 502
Basic (in dollars per share)	$ 0.07	$ 0.05	$ 0.18	$ 0.14
Diluted (in dollars per share)	$ 0.06	$ 0.05	$ 0.18	$ 0.14

Note 5 - Stock-Based Compensa37

Note 5 - Stock-Based Compensation - Summary of Option Activity (Details) $ in Thousands	9 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Outstanding (in shares) | shares	437,248
Weighted-Average Exercise Price per Share (in dollars per share) | $ / shares	$ 55.81
Weighted-Average Remaining Contractual Term	4 years 328 days
Aggregate Intrinsice Value | $	$ 9,445
Stock options granted (in shares) | shares	183,550
Stock options granted (in dollars per share) | $ / shares	$ 72.87
Stock options granted	6 years 328 days
Stock options forfeited (in shares) | shares	(12,384)
Stock options forfeited (in dollars per share) | $ / shares	$ 76.89
Stock options forfeited	7 years 73 days
Stock options exercised (in shares) | shares	(72,803)
Stock options exercised (in dollars per share) | $ / shares	$ 39.98
Outstanding (in shares) | shares	535,611
Weighted-Average Exercise Price per Share (in dollars per share) | $ / shares	$ 63.32
Aggregate Intrinsice Value | $	$ 19,412
Exercisable (in shares) | shares	173,949
Weighted-Average Exercise Price per Share, Exercisable (in dollars per share) | $ / shares	$ 41.40
Weighted-Average Remaining Contractual Term, Exercisable	3 years 219 days
Aggregate Intrinsice Value, Exercisable | $	$ 10,107

Note 5 - Stock-Based Compensa38

Note 5 - Stock-Based Compensation - Summary of Unvested Options (Details)	9 Months Ended
	Dec. 31, 2015$ / sharesshares
Unvested (in shares) | shares	274,038
Unvested (in dollars per share) | $ / shares	$ 18.42
Stock options granted (in shares) | shares	183,550
Stock options granted (in dollars per share) | $ / shares	$ 18.77
Stock options forfeited (in shares) | shares	(12,384)
Stock options forfeited (in dollars per share) | $ / shares	$ 19.53
Stock options vested (in shares) | shares	(83,542)
Stock options vested (in dollars per share) | $ / shares	$ 14.56
Unvested (in shares) | shares	361,662
Unvested (in dollars per share) | $ / shares	$ 19.43

Note 6 - Net Income Per Share39

Note 6 - Net Income Per Share (Details Textual) - shares	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	91,000	155,000	136,000	173,000

Note 6 - Net Income Per Share -

Note 6 - Net Income Per Share - Computation of Net Income per Share - Basic & Diluted (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Net income available for shareholders	$ 2,361	$ 2,403	$ 6,419	$ 7,344
Weighted average outstanding shares of common stock (in shares)	3,614	3,532	3,596	3,513
Dilutive effect of stock options (in shares)	141	122	133	136
Common stock and equivalents (in shares)	3,755	3,654	3,729	3,649
Basic (in dollars per share)	$ 0.65	$ 0.68	$ 1.79	$ 2.09
Diluted (in dollars per share)	$ 0.63	$ 0.66	$ 1.72	$ 2.01

Note 7 - Commitments and Cont41

Note 7 - Commitments and Contingencies (Details Textual)

Oct. 15, 2014CAD

Nov. 06, 2013USD ($)

Oct. 31, 2015USD ($)

Jul. 31, 2015

Nov. 30, 2014USD ($)

Dec. 31, 2015USD ($)

Dec. 31, 2015USD ($)

Sep. 30, 2016

Dec. 31, 2015CAD

Dec. 31, 2015USD ($)

Sep. 30, 2015USD ($)

Jul. 06, 2015CAD

Jul. 06, 2015USD ($)

Mar. 31, 2015USD ($)

Oct. 15, 2014USD ($)

Mar. 31, 2014USD ($)

Mar. 31, 2013USD ($)

May. 15, 2012USD ($)

Amega Scientific Corporation [Member] | Minimum [Member]

Business Acquisition, Revenue Required in Three Years Subsequent to Acquisition for Payment of Contingent Consideration

$ 31,625,000

Amega Scientific Corporation [Member] | Maximum [Member]

Business Acquisition, Revenue Required in Three Years Subsequent to Acquisition for Payment of Contingent Consideration

$ 43,500,000

Amega Scientific Corporation [Member]

Business Acquisition, Earn Out Period for Determination of Contingent Consideration

3 years

Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low

$ 0

Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High

$ 10,000,000

Business Acquisition, Agreement Holdback, Payment Period from Effective Date Less Any Losses Incurred by Buyer Payable To Seller

3 years

Business Combination, Contingent Consideration, Liability

$ 500,000

PCD [Member] | Minimum [Member]

Business Acquisition, Revenue Required in Three Years Subsequent to Acquisition for Payment of Contingent Consideration

$ 9,900,000

PCD [Member] | Maximum [Member]

Business Acquisition, Revenue Required in Three Years Subsequent to Acquisition for Payment of Contingent Consideration

12,600,000

PCD [Member]

Business Acquisition, Earn Out Period for Determination of Contingent Consideration

3 years

Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low

CAD 0

0

Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High

CAD 15,000,000

1,500,000

Business Combination, Contingent Consideration, Liability

$ 300,000

Business Combination, Payment of Contingent Consideration

$ 150,000

Infitrak Acquisition [Member] | Minimum [Member] | Contingent Consideration Year 1 [Member]

Business Combination, Contingent Consideration, Sliding Scale of Growth

30.00%

30.00%

30.00%

30.00%

Infitrak Acquisition [Member] | Minimum [Member] | Contingent Consideration Year 2 [Member]

Business Combination, Contingent Consideration, Sliding Scale of Growth

15.00%

15.00%

15.00%

15.00%

Infitrak Acquisition [Member] | Maximum [Member] | Contingent Consideration Year 1 [Member]

Business Combination, Contingent Consideration, Sliding Scale of Growth

70.00%

70.00%

70.00%

70.00%

Infitrak Acquisition [Member] | Maximum [Member] | Contingent Consideration Year 2 [Member]

Business Combination, Contingent Consideration, Sliding Scale of Growth

75.00%

75.00%

75.00%

75.00%

Infitrak Acquisition [Member] | Scenario, Forecast [Member]

Business Combination, Contingent Consideration, Payment Installments

2

Infitrak Acquisition [Member]

Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low

$ 0

CAD 0

Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High

10,800,000

CAD 15,000,000

Business Combination, Contingent Consideration, Liability

CAD 9,541,000

8,700,000

$ 9,541,000

Minimum [Member] | Anthony Amato and Amega Scientific Corporation [Member] | Lost Future Earnings and Punitive Damages [Member]

Loss Contingency, Damages Sought, Value

$ 500,000

Anthony Amato and Amega Scientific Corporation [Member] | Improperly with holding Amount [Member]

Loss Contingency, Damages Sought, Value

704,065.86

Anthony Amato and Amega Scientific Corporation [Member] | Subsequent Event [Member] | General and Administrative Expense [Member]

Gain (Loss) Related to Litigation Settlement

$ 1,709,000

Anthony Amato and Amega Scientific Corporation [Member] | Subsequent Event [Member]

Payments for Legal Settlements

$ 3,165,000

Litigation Settlement, Insurance Covered

$ 415,000

Anthony Amato and Amega Scientific Corporation [Member]

Loss Contingency, Damages Sought, Value

10,000,000

Loss Contingency Expected Immeditate Accelaration of Stock Option Granted

$ 10,000

Loss Contingency Accrual

$ 1,041,000

General and Administrative Expense [Member] | Other Accrued Expenses [Member]

Sales and Excise Tax Payable

$ 460,000

$ 1,408,000

$ 100,000

Business Acquisition, Earn Out Period for Determination of Contingent Consideration

2 years

Business Combination, Contingent Consideration, Liability

$ 4,327,000

$ 812,000

Number of States Due Sales Tax

1

Note 8 - Comprehensive Income -

Note 8 - Comprehensive Income - Changes in Accumulated Other Comprehensive Income (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance	$ 397,000	$ 0	$ (234,000)	$ 0
Unrealized loss arising during the period	(1,847,000)	(250,000)	(1,216,000)	(250,000)
Balance	(1,450,000)	0	(1,450,000)	0
Balance	397,000	0	(234,000)	0
Unrealized loss arising during the period	(1,847,000)	(250,000)	(1,216,000)	(250,000)
Balance	$ (1,450,000)	$ 0	$ (1,450,000)	$ 0

Note 9 - Segment Information (D

Note 9 - Segment Information (Details Textual)	Dec. 31, 2015USD ($)
FRANCE
Long-Lived Assets	$ 6,470,000
CANADA
Long-Lived Assets	$ 16,839,000

Note 9 - Segment Information -

Note 9 - Segment Information - Operating Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2015	Dec. 31, 2014
Biological Indicators [Member]
Revenues	$ 7,819		$ 6,964		$ 23,537	$ 19,822
Gross profit	4,869		4,194		15,157	12,029
Selling expenses	505		365		1,372	766
Gross profit after deducting selling expense and impairment of intangible asset	$ 4,364		$ 3,829		$ 13,785	$ 11,263
Reconciling items (1)		[1]		[1]
Earnings before income taxes
Instruments [Member]
Revenues	$ 8,260		$ 8,216		$ 25,819	$ 24,966
Gross profit	5,511		5,412		16,571	15,794
Selling expenses	784		919		2,975	3,093
Gross profit after deducting selling expense and impairment of intangible asset	$ 4,727		$ 4,493		$ 13,596	$ 12,701
Reconciling items (1)		[1]		[1]
Earnings before income taxes
Continuous Monitoring [Member]
Revenues	$ 2,595		$ 2,650		$ 7,412	$ 7,982
Gross profit	1,254		1,446		3,246	4,057
Selling expenses	132		488		1,098	1,318
Gross profit after deducting selling expense and impairment of intangible asset	$ 1,122		$ 958		$ 2,148	$ 2,739
Reconciling items (1)		[1]		[1]
Earnings before income taxes
Cold Chain [member]
Revenues	$ 1,239				$ 3,079
Gross profit	575				1,443
Selling expenses	96				159
Gross profit after deducting selling expense and impairment of intangible asset	$ 479				$ 1,284
Reconciling items (1)		[1]		[1]
Earnings before income taxes
Revenues	$ 19,913		$ 17,830		$ 59,847	$ 52,770
Gross profit	12,209		11,052		36,417	31,880
Selling expenses	1,517		1,772		5,604	5,177
Gross profit after deducting selling expense and impairment of intangible asset	10,692		9,280		30,813	26,703
Reconciling items (1)	(7,241)	[1]	(5,567)	[1]	(21,043)	(15,354)
Earnings before income taxes	$ 3,451		$ 3,713		$ 9,770	$ 11,349
[1]	Reconciling items include general and administrative, research and development, and other expenses.

Note 9 - Segment Information 45

Note 9 - Segment Information - Operating Segment Asset Reconciliation (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Biological Indicators [Member]
Assets	$ 54,285	$ 36,304
Instruments [Member]
Assets	50,436	44,401
Continuous Monitoring [Member]
Assets	25,965	31,558
Cold Chain [member]
Assets	18,182
Corporate Segment [Member]
Assets	6,813	5,057
Assets	$ 155,116	$ 117,320

Note 9 - Segment Information 46

Note 9 - Segment Information - Revenues from External Customers (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
UNITED STATES
Revenues	$ 12,787	$ 11,423	$ 37,510	$ 29,612
Foreign [Member]
Revenues	7,126	6,407	22,337	23,158
Revenues	$ 19,913	$ 17,830	$ 59,847	$ 52,770

Note 10 - Income Taxes (Details

Note 10 - Income Taxes (Details Textual)	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Minimum [Member] | Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, Percent			34.00%
Maximum [Member] | Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, Percent			37.00%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%		35.00%
Effective Income Tax Rate Reconciliation, Percent	31.60%	35.30%	34.30%	35.30%

Note 11 - Subsequent Event (Det

Note 11 - Subsequent Event (Details Textual)	1 Months Ended
	Jan. 31, 2016$ / shares
Subsequent Event [Member]
Common Stock, Dividends, Per Share, Declared	$ 0.16