Quarterly report pursuant to Section 13 or 15(d)

Consolidated Balance Sheet Detail

v3.8.0.1
Consolidated Balance Sheet Detail
9 Months Ended
Oct. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Consolidated Balance Sheet Detail

5.

Consolidated Balance Sheet Detail

Inventories, net

Inventories consist primarily of hardware and related component parts and are stated at the lower of cost (on a first-in, first-out basis) or market. Inventories consist of the following:  

 

 

 

As of

 

 

 

October 31,

 

 

January 31,

 

 

 

2017

 

 

2017

 

 

 

(Amounts in thousands)

 

Components and assemblies

 

$

506

 

 

$

500

 

Finished products

 

 

344

 

 

 

270

 

Total inventories, net

 

$

850

 

 

$

770

 

 

Property and equipment, net

Property and equipment, net consists of the following:

 

 

 

Estimated

 

 

As of

 

 

 

Useful

 

 

October 31,

 

 

January 31,

 

 

 

Life (Years)

 

 

2017

 

 

2017

 

 

 

 

 

 

 

(Amounts in thousands)

 

Land

 

 

 

 

 

$

2,780

 

 

$

2,780

 

Buildings

 

 

20

 

 

 

11,839

 

 

 

11,726

 

Office furniture and equipment

 

 

5

 

 

 

1,222

 

 

 

1,091

 

Computer equipment, software and demonstration equipment

 

 

3

 

 

 

16,428

 

 

 

18,194

 

Service and spare components

 

 

5

 

 

 

1,158

 

 

 

1,158

 

Leasehold improvements

 

1-7

 

 

 

1,081

 

 

 

1,064

 

 

 

 

 

 

 

 

34,508

 

 

 

36,013

 

Less - Accumulated depreciation and amortization

 

 

 

 

 

 

(24,377

)

 

 

(24,528

)

Total property and equipment, net

 

 

 

 

 

$

10,131

 

 

$

11,485

 

 

Depreciation and amortization expense on property and equipment, net was $0.6 million and $1.8 million for the three and nine months ended October 31, 2017 and $0.7 million and $2.3 million for the three and nine months ended October 31, 2016.

 

Loss on Impairment of Long-Lived Assets

 

During the third quarter of fiscal 2017, we began actively marketing our facility in Greenville, New Hampshire for sale and identified a potential buyer. Accordingly, we determined at the time that the sale of the asset group was probable by the end of the fourth quarter of fiscal 2017. We determined that the asset group met all the criteria of held for sale accounting and classified the asset group as held for sale on our consolidated balance sheets beginning in the third quarter of fiscal 2017. We originally placed the asset group for sale in August 2016 for $0.3 million, which was the net book value of the asset group at that time. To be more competitive in the real estate market in which the property is located, we reduced the selling price in September 2016 to $0.2 million. As a result, we recorded a loss on impairment of long-lived assets of $0.1 million in our consolidated statements of operations and comprehensive loss during the three and nine months ended October 31, 2016. Subsequently, in January 2017, after a potential buyer declined to purchase this facility, we determined that the sale of the facility was not imminent due to the location of the building and the overall market conditions in the area. Consequently, we decided to fully impair the facility since we felt that carrying amount was greater than the fair value. As a result, we recorded a $0.3 million loss on impairment of long-lived assets in our consolidated statements of operations and comprehensive loss at January 31, 2017.

Other accrued expenses

Other accrued expenses consist of the following:

 

 

 

As of

 

 

 

October 31,

 

 

January 31,

 

 

 

2017

 

 

2017

 

 

 

(Amounts in thousands)

 

Accrued compensation and commissions

 

$

1,880

 

 

$

1,799

 

Accrued bonuses

 

 

2,467

 

 

 

1,871

 

Accrued restructuring

 

 

850

 

 

 

1,023

 

Employee benefits

 

 

372

 

 

 

885

 

Taxes

 

 

3,850

 

 

 

919

 

Accrued other

 

 

3,369

 

 

 

3,431

 

Total other accrued expenses

 

$

12,788

 

 

$

9,928