MEADE INSTRUMENTS CORP

CIK:0001032067|SEC Filings

Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	May 31, 2013	May 31, 2012
Consolidated Statements of Operations [Abstract]
Net sales	$ 2,795	$ 4,104
Cost of sales	2,163	3,237
Gross profit	632	867
Selling expenses	405	415
General and administrative expenses	985	904
Research and development expenses	150	272
Release of warranty liability		(293)
Operating loss	(908)	(431)
Interest expense	13
Loss before income taxes	(921)	(431)
Income tax expense (benefit)
Net loss	$ (921)	$ (431)
Net loss per share - basic and diluted	$ (0.79)	$ (0.37)
Weighted average common shares outstanding - basic and diluted	1,173	1,167

Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	May 31, 2013	May 31, 2012
Cash flows from operating activities:
Net loss	$ (921)	$ (431)
Adjustments to reconcile net loss to net cash used in operating activities:
Release of warranty liability		(293)
Depreciation and amortization	84	77
Bad debt expense	75	(28)
Stock-based compensation	30	9
Deferred rent amortization	(4)	(2)
Gain on sale of fixed assets	(2)	(5)
Changes in assets and liabilities:
Accounts receivable	486	(193)
Inventories	802	37
Prepaid expenses and other current assets	(32)	(99)
Accounts payable	(831)	(222)
Accrued liabilities	(97)	24
Net cash used in operating activities	(410)	(1,126)
Cash flows from investing activities:
Capital expenditures		(82)
Proceeds from sale of fixed assets	2	5
Net cash used in investing activities	2	(77)
Cash flows from financing activities
Net advances on credit facility	337
Net cash provided by financing activities	337
Net decrease in cash	(71)	(1,203)
Cash at beginning of period	320	3,904
Cash at end of period	$ 249	$ 2,701

Composition of Certain Balance Sheet Accounts

3 Months Ended

May 31, 2013

The Consolidated Financial Statements Have Been Prepared by the Company and are Unaudited/Composition of Certain Balance Sheet Accounts [Abstract]

Composition of Certain Balance Sheet Accounts

E.	Composition of Certain Balance Sheet Accounts

The composition of inventories is as follows:


	May 31, 2013		February 28, 2013
	(In thousands)
Raw materials	$	2,488	$	2,560
Work in process		2,172		2,294
Finished goods		1,678		2,286

	$	6,338	$	7,140

Intangible assets were a result of an acquisition of substantially all of the assets and assumption of substantially all of the liabilities of Coronado Technology Group, LLC that occurred on December 1, 2004 and included the following assets:


			May 31, 2013							February 28, 2013
	Amortization Periods (In Years)		Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net book Value
	(In thousands)
Trademarks		7-15	$	424	$	(406	)	$	18	$	424	$	(397	)	$	27
Completed technologies		12		1,620		(1,147	)		473		1,620		(1,113	)		507

Total			$	2,044	$	(1,553	)	$	491	$	2,044	$	(1,510	)	$	534

The changes in the carrying amount of acquisition-related intangible assets for the three months ended May 31, 2013, are as follows:


	Amortizing Intangible Assets
	(In thousands)
Balance, net, February 28, 2013	$	534
Amortization		(43	)

Balance, net, May 31, 2013	$	491

Amortization of acquisition-related intangible assets over the next four fiscal years is estimated as follows:


Fiscal Year	(In thousands)
2014	$	119
2015		135
2016		135
2017		102

Total	$	491

The composition of property and equipment is as follows:


	May 31, 2013			February 28, 2013
	(In thousands)
Molds and dies	$	1,317		$	1,317
Machinery and equipment		4,531			4,531
Furniture and fixtures		251			251
Autos and trucks		127			127
Leasehold improvements		138			138

		6,364			6,364
Less accumulated depreciation and amortization		(6,206	)		(6,168	)

	$	158		$	196

Since certain of the Company’s machinery and equipment is old and fully depreciated, it is possible that certain of the Company’s machinery and equipment could require replacement in the near future.