ASTRONOVA, INC., 10-K filed on 4/17/2023
Annual Report
v3.23.1
Cover Page - USD ($)
 12 Months Ended
Jan. 31, 2023
Apr. 12, 2023
Jul. 30, 2022
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Jan. 31, 2023    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Entity Registrant Name AstroNova, Inc.    
Entity Central Index Key 0000008146    
Current Fiscal Year End Date --01-31    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Well-known Seasoned Issuer No    
Entity Filer Category Accelerated Filer    
Trading Symbol ALOT    
Entity Shell Company false    
Entity Small Business true    
Entity Emerging Growth Company false    
Title of 12(b) Security Common Stock    
Security Exchange Name NASDAQ    
Entity Incorporation, State or Country Code RI    
Entity File Number 0-13200    
Document Annual Report true    
Document Transition Report false    
Entity Tax Identification Number 05-0318215    
Entity Address, Address Line One 600 East Greenwich Avenue    
Entity Address, City or Town West Warwick    
Entity Address, Postal Zip Code 02893    
Entity Address, State or Province RI    
City Area Code 401    
Local Phone Number 828-4000    
Entity Common Stock, Shares Outstanding   7,400,560  
Entity Public Float     $ 84,333,000
ICFR Auditor Attestation Flag true    
Auditor Name Wolf & Company, P.C.    
Auditor Firm ID 392    
Auditor Location Boston, MA    
v3.23.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Jan. 31, 2023
Jan. 31, 2022
CURRENT ASSETS    
Cash and Cash Equivalents $ 3,946 $ 5,276
Accounts Receivable, net of reserves of $731 in 2023 and $826 in 2022 21,598 17,124
Inventories 51,324 34,609
Employee Retention Credit Receivable 0 3,135
Prepaid Expenses and Other Current Assets 2,894 3,634
Total Current Assets 79,762 63,778
Property, Plant and Equipment, net 14,288 11,441
Identifiable Intangibles, net 21,232 19,200
Goodwill 14,658 12,156
Deferred Tax Assets, net 6,907 5,591
Right of Use Asset 794 1,094
Other Assets 1,566 1,695
TOTAL ASSETS 139,207 114,955
CURRENT LIABILITIES    
Accounts Payable 8,618 8,590
Accrued Compensation 2,750 3,512
Other Accrued Expenses 3,308 4,113
Revolving Line of Credit 15,900 0
Current Portion of Long-Term Debt 2,100 1,000
Current Liability—Royalty Obligation 1,725 2,000
Current Liability—Excess Royalty Payment Due 423 235
Income Taxes Payable 786 323
Deferred Revenue 1,888 262
Total Current Liabilities 37,498 20,035
NON-CURRENT LIABILITIES    
Long-Term Debt, net of current portion 12,040 8,154
Royalty Obligation, net of current portion 3,415 4,361
Lease Liabilities, net of current portion 555 808
Income Taxes Payable 491 399
Deferred Revenue 674 0
Deferred Tax Liabilities 167 186
TOTAL LIABILITIES 54,840 33,943
Commitments and Contingencies
SHAREHOLDERS' EQUITY    
Preferred Stock 0 0
Common Stock 534 528
Additional Paid-in Capital 61,131 59,692
Retained Earnings 59,175 56,514
Treasury Stock, at Cost (34,235) (33,974)
Accumulated Other Comprehensive Loss, net of tax (2,238) (1,748)
TOTAL SHAREHOLDERS' EQUITY 84,367 81,012
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 139,207 $ 114,955
v3.23.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Jan. 31, 2023
Jan. 31, 2022
Statement of Financial Position [Abstract]    
Accounts Receivable, Reserves $ 731 $ 826
Preferred Stock, Par Value $ 10 $ 10
Preferred Stock, Shares Authorized 100,000 100,000
Preferred Stock, Shares Issued 0 0
Common Stock, Par Value $ 0.05 $ 0.05
Common Stock, Shares Authorized 13,000,000  
Common Stock, Shares Issued 10,676,851 10,566,404
Treasury Stock, Shares 3,342,032 3,324,280
v3.23.1
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Income Statement [Abstract]      
Revenue $ 142,527 $ 117,480 $ 116,033
Cost of Revenue 94,371 73,741 74,673
Gross Profit 48,156 43,739 41,360
Costs and Expenses:      
Selling and Marketing 24,456 23,177 23,301
Research and Development 6,822 6,753 6,206
General and Administrative 11,435 9,553 9,420
Operating Expenses 42,713 39,483 38,927
Operating Income 5,443 4,256 2,433
Other Income (Expense):      
Interest Expense (1,678) (677) (955)
Gain (Loss) on Foreign Currency Transactions (474) (288) 590
Gain on Extinguishment of Debt – PPP Loan 0 4,466  
Loss on Disposal of Assets 0 (696)  
Other, net 119 (27) 111
Other Income (Expense), net (2,033) 2,778 (254)
Income before Income Taxes 3,410 7,034 2,179
Income Tax Provision 749 605 895
Net Income $ 2,661 $ 6,429 $ 1,284
Net Income Per Common Share—Basic $ 0.36 $ 0.89 $ 0.18
Net Income Per Common Share—Diluted $ 0.36 $ 0.88 $ 0.18
Weighted Average Number of Common Shares Outstanding—Basic 7,307 7,207 7,104
Dilutive Effect of Common Stock Equivalents 67 132 62
Weighted Average Number of Common Shares Outstanding—Diluted 7,374 7,339 7,166
v3.23.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net Income $ 2,661 $ 6,429 $ 1,284
Other Comprehensive Income (Loss), net of taxes and reclassification adjustments:      
Foreign Currency Translation Adjustments (537) (1,426) 710
Change in Value of Derivatives Designated as Cash Flow Hedge 0 0 (239)
(Gains) Losses from Cash Flow Hedges Reclassified to Income Statement 47 62 193
Cross-Currency Interest Rate Swap Terminations 0 0 45
Other Comprehensive Income (Loss) (490) (1,364) 709
Comprehensive Income $ 2,171 $ 5,065 $ 1,993
v3.23.1
Consolidated Statements of Changes in Shareholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Treasury Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Jan. 31, 2020 $ 71,375 $ 517 $ 56,130 $ 49,298 $ (33,477) $ (1,093)
Beginning Balance, Shares at Jan. 31, 2020   10,343,610        
Share-Based Compensation 1,819   1,819      
Employee Option Exercises $ 104 $ 1 103   0  
Employee Option Exercises, Shares 1,200 16,487        
Restricted Stock Awards Vested, net $ (111) $ 3 (3)   (111)  
Restricted Stock Awards Vested, net, Shares   64,997        
Common Stock—Cash Dividend—$0.07 per share (497)     (497)    
Net Income 1,284     1,284    
Other Comprehensive Income (Loss) 709         709
Ending Balance at Jan. 31, 2021 74,683 $ 521 58,049 50,085 (33,588) (384)
Ending Balance, Shares at Jan. 31, 2021   10,425,094        
Share-Based Compensation 1,493   1,493      
Employee Option Exercises $ 157 $ 1 156      
Employee Option Exercises, Shares 6,425 14,371        
Restricted Stock Awards Vested, net $ (386) $ 6 (6)   (386)  
Restricted Stock Awards Vested, net, Shares   126,939        
Net Income 6,429     6,429    
Other Comprehensive Income (Loss) (1,364)         (1,364)
Ending Balance at Jan. 31, 2022 81,012 $ 528 59,692 56,514 (33,974) (1,748)
Ending Balance, Shares at Jan. 31, 2022   10,566,404        
Share-Based Compensation 1,290   1,290      
Employee Option Exercises $ 155 $ 2 153      
Employee Option Exercises, Shares 42,944 25,123        
Restricted Stock Awards Vested, net $ (261) $ 4 (4)   (261)  
Restricted Stock Awards Vested, net, Shares   85,324        
Net Income 2,661     2,661    
Other Comprehensive Income (Loss) (490)         (490)
Ending Balance at Jan. 31, 2023 $ 84,367 $ 534 $ 61,131 $ 59,175 $ (34,235) $ (2,238)
Ending Balance, Shares at Jan. 31, 2023   10,676,851        
v3.23.1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical)
 12 Months Ended
Jan. 31, 2021
$ / shares
Statement of Stockholders' Equity [Abstract]  
Cash dividend per share $ 0.07
v3.23.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Cash Flows from Operating Activities:      
Net Income $ 2,661 $ 6,429 $ 1,284
Adjustments to Reconcile Net Income to Net Cash (Used) Provided By Operating Activities:      
Depreciation and Amortization 3,916 3,994 5,983
Amortization of Debt Issuance Costs 25 44 75
Share-Based Compensation 1,290 1,493 1,819
Loss on Disposal of Assets 0 696  
Gain on Extinguishment of Debt 0 (4,466)  
Deferred Income Tax Provision (Benefit) (1,336) 210 (1,021)
Changes in Assets and Liabilities, net of impact of acquisition:      
Accounts Receivable (1,234) 77 2,702
Other Receivable – Employee Retention Credit Receivable 3,135 (3,135)  
Inventories (11,581) (4,883) 4,247
Accounts Payable and Accrued Expenses (3,236) 4,052 (57)
Income Taxes Payable 1,710 (2,043) 1,482
Other 1,714 (1,074) (970)
Net Cash Provided (Used) by Operating Activities (2,936) 1,394 15,544
Cash Flows from Investing Activities:      
Cash Paid for Astro Machine Acquisition, net of cash acquired (17,034)    
Additions to Property, Plant and Equipment (229) (1,796) (2,587)
Net Cash Used by Investing Activities (17,263) (1,796) (2,587)
Cash Flows from Financing Activities:      
Net Cash Proceeds from Employee Stock Option Plans 85 60 9
Net Cash Proceeds from Share Purchases under Employee Stock Purchase Plan 70 96 95
Net Cash Used for Payment of Taxes Related to Vested Restricted Stock (261) (386) (111)
Net (Repayments)/Borrowings under Revolving Credit Facility 15,900   (6,500)
Payment of Minimum Guarantee Royalty Obligation (2,000) (2,000) (2,000)
Proceeds from Long-Term Debt – PPP Loan     4,422
Proceeds from Long-Term Debt Borrowings 6,000 10,000 15,232
Payoff of Long-Term Debt   (12,576) (11,732)
Principal Payments on Long-Term Debt (1,000) (750) (3,958)
Payments of Debt Issuance Costs (39)   (100)
Dividends Paid     (497)
Net Cash Provided (Used) by Financing Activities 18,755 (5,556) (5,140)
Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents 114 (205) (627)
Net Increase (Decrease) in Cash and Cash Equivalents (1,330) (6,163) 7,190
Cash and Cash Equivalents, Beginning of Year 5,276 11,439 4,249
Cash and Cash Equivalents, End of Year 3,946 5,276 11,439
Supplemental Information:      
Cash Paid During the Period for Interest 791 342 677
Cash Paid During the Period for Income Taxes, Net of Refunds 311 $ 2,414 $ 446
Non-Cash Transactions:      
Reclassifcation of Inventories to Property, Plant and Equipment 348    
Recognize intangible asset and royalty payable related to Honeywell Asset Purchase and License Agreement $ 530    
v3.23.1
Summary of Significant Accounting Policies
 12 Months Ended
Jan. 31, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Note 1—Summary of Significant Accounting Policies
Basis of Presentation:
The accompanying financial statements and accompanying notes have been prepared by us pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and are presented in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Our fiscal year end is January 31. Unless otherwise stated, all years and dates refer to our fiscal year.
Principles of Consolidation:
The consolidated financial statements include the accounts of AstroNova, Inc. and its subsidiaries. All material intercompany accounts and transactions are eliminated in consolidation.
Reclassification:
Certain amounts in prior year’s financial statements have been reclassified to conform to the current year’s presentation.
Use of Estimates:
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect these financial statements and accompanying notes using information that is reasonably available to us at this time. Some of the more significant estimates relate to revenue recognition; the allowances for doubtful accounts; inventory valuation; income taxes; valuation of long-lived assets, intangible assets and goodwill; share-based compensation; and warranty reserves. Management’s estimates are based on the facts and circumstances available at the time estimates are made, historical experience, risk of loss, general economic conditions and trends, and management’s assessments of the probable future outcome of these matters, including our expectations at the time
regarding
the ongoing impact from the
COVID-19
pandemic. Consequently, actual results could differ from those estimates.
Cash and Cash Equivalents:
Highly liquid investments with an original maturity of 90 days or less are considered to be cash equivalents. At
January
 31, 2023 and 2022, $3.2 million and $3.7 million, respectively, was held in foreign bank accounts.
Inventories:
Inventories are stated at the lower of standard and average cost or net realizable value and include material, labor and manufacturing overhead.
Property, Plant and Equipment:
Property
, plant and equipment are stated at cost less accumulated depreciation. Depreciation is provided on the straight-line basis over the estimated useful lives of the assets (land improvements—10 to 20 years; buildings and leasehold improvements—10 to 45 years; machinery and equipment—3 to 10 years and
computer
equipment and software—3 to 10 years).
Revenue Recognition:
We recognize revenue in accordance with Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers (“ASC 606”).” The core principle of ASC 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASC 606 defines a five-step process to recognize revenue and requires judgment and estimates within the revenue recognition process, including identifying contracts with customers, identifying performance obligations in the contract, determining and estimating the amount of any variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation and recognizing revenue when the entity satisfies each performance obligation.
The vast majority of our revenue is generated from the sale of distinct products. Revenue is measured as the amount of consideration we expect to receive in exchange for such products, which is generally at the contractually stated prices, and is recognized when we satisfy a performance obligation by transferring control of
a product to a customer. The transfer of control generally occurs at one point in time, upon shipment, when title and risk of loss pass to the customer. Returns and customer credits are infrequent and are recorded as a reduction to revenue. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue.
Many of the contracts entered into with customers are commonly comprised of a combination of equipment, supplies, installation and/or training services. We determine performance obligations by assessing whether the products or services are distinct from other elements of the contract. In order to be distinct, the product must perform either on its own or with readily available resources and must be separate within the context of the contract.
Most of our hardware products contain embedded operating systems and data management software which is included in the purchase price of the equipment. The software is deemed incidental to the systems as a whole, as it is not sold or marketed separately, and its production costs are minor compared to those of the hardware system. Hardware and software elements are typically delivered at the same time and are accounted for as a single performance obligation for which revenue is recognized at the point in time when ownership is transferred to the customer.
Installation and training services vary based on certain factors such as the complexity of the equipment, staffing availability in a geographic location and customer preferences, and can range from a few days to a few months. The delivery of installation and training services are not assessed to determine whether they are separate performance obligations, as the amounts are not material to the contract.
Shipping and handling activities that occur after control over a product has transferred to a customer are accounted for as fulfillment activities rather than performance obligations, as allowed under a practical expedient provided by ASC 606. The shipping and handling fees charged to customers are recognized as revenue and the related costs are included in cost of revenue at the point in time when ownership of the product is transferred to the customer.
We may perform services at the request of the customer, generally for the repair and maintenance of products previously sold. These services are short in duration and total approximately 5.0% and 4.4% of revenue for the years ended January 31, 2023 and 2022, respectively. Revenue is recognized as services are rendered and accepted by the customer. We also provide service agreements on certain of our Product Identification equipment. Service agreements are purchased separately from the equipment and provide for the right to obtain service and maintenance on the equipment for a period of typically one to two years. Accordingly, revenue on these agreements is recognized over the term of the agreements. The portion of service agreement contracts that are uncompleted at the end of any reporting period are included in deferred revenue.
We generally provide warranties for our products. The standard warranty period is typically 12 months for most hardware products except for airborne printers, which typically have warranties that extend for
3-5
years, consistent with industry practice. Such assurance-type warranties are not deemed to be separate performance obligations from the hardware product and costs associated with providing the warranties are accrued in accordance with ASC 450, “Contingencies,” as we have the ability to ascertain the likelihood of the liability and can reasonably estimate the amount of the liability. Our estimate of costs to service the warranty obligations is based on historical experience and expectations of future conditions. To the extent that our experience in warranty claims or costs associated with servicing those claims differ from the original estimates, revisions to the estimated warranty liability are recorded at that time, with an offsetting adjustment to cost of revenue. On occasion, customers request a warranty period longer than our standard warranty. In those instances, in which extended warranty services are separately quoted to the customer, an additional performance obligation is created, and the associated revenue is deferred and recognized as service revenue ratably over the term of the extended warranty period. The portion of service contracts and extended warranty services agreements that are uncompleted at the end of any reporting period are included in deferred revenue.
 
We recognize and subsequently amortize an asset for the incremental direct costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year (Refer to Note 3, “Revenue Recognition” included in our notes to the consolidated financial statement). We apply the practical expedient to expense costs incurred for costs to obtain a contract when the amortization period would have been less than a year. These costs include sales commissions paid to the internal direct sales team as well as to third-party representatives and distributors. Contractual agreements with each of these parties outline commission structures and rates to be paid. Generally speaking, the contracts are all individual procurement decisions by the customers and do not include renewal provisions and, as such, the majority of the contracts have an economic life of significantly less than a year.
Accounts Receivables and Allowance for Doubtful Accounts:
Standard payment terms are typically 30 days after shipment but vary by type and geographic location of our customer. Credit is extended based upon an evaluation of the customer’s financial condition. In circumstances where we are aware of a customer’s inability to meet its financial obligations, an allowance is established. The remainder of the allowance established is based on a variety of factors, including the age of amounts outstanding relative to their contractual due date, historical
write-off
experience and current market assessments. Accounts receivable are stated at their estimated net realizable value.
Business Combinations:
We account for business acquisitions under the acquisition method of accounting in accordance with ASC 805, ‘‘Business Combinations,’’ where the total purchase price is allocated to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after obtaining more information regarding, among other things, asset valuations, liabilities assumed and revisions to preliminary estimates. The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenue, costs and cash flows, discount rates, and selection of comparable companies. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable. As a result, actual results may differ from these estimates. During the measurement period, we may record adjustments to acquired assets and assumed liabilities, with corresponding offsets to goodwill. Upon the conclusion of a measurement period, any subsequent adjustments are recorded to earnings.
At the acquisition date, the Company measures the fair values of all assets acquired and liabilities assumed that arise from contractual contingencies. The Company also measures the fair values of all
non-contractual
contingencies if, as of the acquisitions date, it is more likely than not that the contingencies will give rise to assets or liabilities.
Acquisition related costs not considered part of the considerations are expensed as incurred and recorded in Acquisition costs within the consolidated statement of operations.
Research
and Development Costs:
We charge costs to expense in the period incurred, and these expenses are presented in the consolidated statement of income. The following costs are included in research and development expense: salaries and benefits, external engineering service costs, engineering related information costs and supplies.
Foreign Currency Translation:
The financial statements of foreign subsidiaries and branches are measured using the local currency as the functional currency. Foreign currency-denominated assets and liabilities are translated into U.S. dollars at
year-end
exchange rates with the translation adjustment recorded as a component of accumulated comprehensive income (loss) in shareholders’ equity. Revenues and expenses are translated at the average monthly exchange rates in effect during the related period. We do not provide for U.S. income taxes on foreign currency translation adjustments associated with our subsidiaries in Germany, Denmark and China since
 
their undistributed earnings are considered to be permanently invested. Included in our consolidated statements of income was a net transaction foreign exchange loss of $0.5 million and $0.3 million in fiscal 2022 and 2023, respectively, and a net transaction foreign exchange gain of $0.6 million in fiscal 2021.
Advertising:
We expense advertising costs as incurred. Advertising costs including advertising production, trade shows and other activities are designed to enhance demand for our products and amounted to approximately $1.6 million, $1.3 million, and $0.9 million in fiscal years 2023, 2022, and 2021, respectively.
Long-Lived Assets:
Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. If the projected undiscounted cash flows are less than the carrying value, then an impairment charge would be recorded for the excess of the carrying value over the fair value, as determined by the discounting of future cash flows. There were no impairment charges for our long-lived assets in fiscal years 2023, 2022, or 2021.
Intangible Assets:
Intangible assets include the value of customer and distributor relationships, trademarks and existing technology acquired in connection with business and asset acquisitions and are stated at cost (fair value at acquisition) less accumulated amortization. These intangible assets have a definite life and are amortized over the assets’ useful lives using a systematic and rational basis which is representative of the assets’ use. Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. If necessary, an impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the asset. The amount of the impairment loss recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. There were no impairment charges for our intangible assets in fiscal years 2023, 2022, or 2021.
Goodwill:
Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a purchase business combination. Management evaluates the recoverability of goodwill annually or more frequently if events or changes in circumstances, such as declines in revenue, earnings or cash flows, or material adverse changes in the business climate indicate that the carrying value of an asset might be impaired. Goodwill is tested for impairment at the reporting unit level. A reporting unit is an operating segment, or a business unit one level below an operating segment if discrete financial information for that business is prepared and regularly reviewed by segment management. However, components within an operating segment are aggregated as a single reporting unit if they have similar economic characteristics. We determined that each of our operating segments (Product Identification (“PI”) and Test & Measurement (“T&M”) represents a reporting unit for purposes of goodwill impairment testing.
The accounting guidance related to goodwill impairment testing allows for the performance of an optional qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Factors that management considers in this qualitative assessment include macroeconomic conditions, industry and market considerations, overall financial performance (both current and projected), changes in management and strategy and changes in the composition or carrying amount of net assets. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then a quantitative assessment is required for the reporting unit. Additionally, we can elect to forgo the qualitative assessment and perform the quantitative test. The quantitative assessment compares the fair value of the reporting unit with its carrying value. If the quantitative assessment is performed, we estimate the fair value of our reporting units using a blended income and market approach. The income approach is based on a discounted cash flow model and provides a fair value estimate based upon the reporting unit’s expected long-term operating cash flow performance. The market approach compares the reporting unit to publicly traded companies and transactions involving similar business, and requires the use of many assumptions and estimates including future revenue, expenses, capital expenditures, and working capital, as well as discount factors and
 
income tax rates. If the fair value of the reporting unit exceeds the carrying value of the net assets including goodwill assigned to that unit, goodwill is not impaired. If the carrying value of the reporting unit’s net assets including goodwill exceeds the fair value of the reporting unit, then we record an impairment charge based on that difference. We performed a qualitative assessment for our fiscal 2023 analysis of goodwill. Based on this assessment, management does not believe that it is more likely than not that the carrying values of the reporting units exceed their fair values. Accordingly, no quantitative assessment was performed. There were no impairment charges for our goodwill in fiscal years 2023, 2022, or 2021.
Leases:
We account for our leases in accordance with ASC 842, “Leases” (“ASC 842”). ASC 842 requires a lessee to recognize assets and liabilities on the balance sheet for all leases, with the result being the recognition of a right of use (“ROU”) asset and a lease liability. The lease liability is equal to the present value of the minimum lease payments for the term of the lease, including any optional renewal periods determined to be reasonably certain to be exercised, using a discount rate determined at lease commencement. This discount rate is the rate implicit in the lease, if known; otherwise, the incremental borrowing rate for the expected lease term is used. Our incremental borrowing rate approximates the rate we would have to pay to borrow on a collateralized basis over a similar term at lease inception. The value of the ROU asset is equal to the initial measurement of the lease liability plus any lease payments made to the lessor at or before the commencement date and any unamortized initial direct costs incurred by the lessee, less any unamortized lease incentives received. Several of our lease contracts include options to extend the lease term and we include the renewal options for these leases in the determination of the ROU asset and lease liability when the likelihood of renewal is determined to be reasonably certain.
We enter into lease contracts for certain of our facilities at various locations worldwide. At inception of a contract, we determine whether the contract is or contains a lease. If we have a right to obtain substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the asset, then the contract contains a lease.
There are two types of leases, operating leases and finance leases. Lease classification is determined at lease commencement. We have made an accounting policy election to apply the short-term exception, which does not require the capitalization of leases with terms of 12 months or less. All of our leases are classified as operating leases. Operating lease expense is recognized on a straight-line basis over the lease term and included in general and administrative expense on the consolidated statement of income. ROU assets are classified as such on the consolidated balance sheet, short-term lease liabilities are classified in accrued expenses, and long-term lease liabilities are classified as such in the consolidated balance sheet. In the statement of cash flow, payments for operating leases are classified as operating activities.
In addition, several of our lease agreements include
non-lease
components for items such as common area maintenance and utilities which are accounted for separately from the lease component.
Income Taxes:
We use the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting basis and tax basis of the assets and liabilities and are measured using statutory tax rates that will be in effect when the differences are expected to reverse. Our deferred taxes are presented as
non-current
in the accompanying consolidated balance sheet. An allowance against deferred tax assets is recognized when it is
more-likely-than-not
that some portion or all of the deferred tax assets will not be realized. At January 31, 2023, a valuation allowance was provided for deferred tax assets attributable to certain domestic R&D, foreign tax credit carryforwards and China net operating losses, all of which are expected to expire unused. At January 31, 2022, a valuation allowance was provided for deferred tax assets attributed to certain domestic R&D and foreign tax credit carryforwards.
We account for uncertain tax positions in accordance with the guidance provided in ASC 740, “Accounting for Income Taxes.” This guidance describes a recognition threshold and measurement attribute for the financial statement disclosure of tax positions taken or expected to be taken in a tax return and requires recognition of tax
 
benefits that satisfy a
more-likely-than-not
threshold. ASC 740 also provides guidance on
de-recognition,
classification, interest and penalties, accounting in interim periods and disclosure.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The legislation had sweeping effects including various types of economic relief for impacted businesses and industries. One such relief provision was the Paycheck Protection Program, which provided short-term cash flow assistance to finance employee payroll and qualified expenses. On May 6, 2020, we entered into a loan agreement with, and executed a promissory note in favor of Greenwood Credit Union (“Greenwood”) pursuant to which we borrowed
 $4.4
million (the “PPP Loan”). On December 27, 2020, the Consolidated Appropriations Act, 2021, H.R. 133 was signed into law. The legislation permits the deductibility of expenses to the extent that the payment of such expenses results (or is expected to result) in the forgiveness of a loan (covered loan) guaranteed under the Paycheck Protection Program. We have fully utilized the PPP Loan proceeds for qualifying expenses and applied for forgiveness
of the PPP Loan. Consistent with the legislation, we deducted the full
 $4.4 million of qualified expenses on our 2020 federal tax return. On June 15, 2021, Greenwood notified us that the United States Small Business Administration (the “SBA”) approved our application for forgiveness of the entire $4.4 million principal balance of our PPP Loan and all accrued interest thereon. As a result, in the second quarter of fiscal 2022, we recorded a
$4.5 million gain on extinguishment of debt. The PPP loan forgiveness is excluded from taxable income under Section 1106(i) of the CARES Act.
Net Income Per Common Share:
Basic net income per share is based on the weighted average number of shares outstanding during the period. Diluted net income per share is based on the basic weighted average number of shares and potential common equivalent shares for stock options, restricted stock awards and restricted stock units outstanding during the period using the treasury stock method. In fiscal years 2023, 2022, and 2021, there were 685,667; 345,085; and 642,623, respectively, common equivalent shares that were not included in the computation of diluted net income per common share because their inclusion would be anti-dilutive.
Fair Value Measurement:
We measure our assets and liabilities at fair value on a recurring and
non-recurring
basis in accordance with the guidance provided in ASC 820, “Fair Value Measurement and Disclosures,” which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In addition, ASC 820 establishes a three-tiered hierarchy for inputs used in management’s determination of fair value of financial instruments that emphasizes the use of observable inputs over the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect management’s belief about the assumptions market participants would use in pricing a financial instrument based on the best information available in the circumstances.
The fair value hierarchy is summarized as follows:
 
  •  
Level 1—Quoted prices in active markets for identical assets or liabilities;
 
  •  
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
 
  •  
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities
Cash and cash equivalents, accounts receivable, accounts payable, accrued compensation, other accrued expenses and income tax payable are reflected in the consolidated balance sheet at carrying value, which approximates fair value due to the short-term nature of these instruments.
 
Self-Insurance:
We are self-insured for U.S. medical and dental benefits for qualifying employees and maintain stop-loss coverage from a third party which limits our exposure to large claims. We record a liability associated with these benefits that includes an estimate of both claims filed and losses incurred but not yet reported based on historical claims experience. In estimating this accrual, we utilize an independent third-party broker to estimate a range of expected losses, which are based on analyses of historical data. Assumptions are closely monitored and adjusted when warranted by changing circumstances. Our liability for self-insured claims is included within accrued compensation in our consolidated balance sheets and was
$0.3 million and $0.2 million at January 31, 2023 and 2022, respectively.
Share-Based Compensation:
Compensation expense for time-based restricted stock units is measured at the grant date and recognized ratably over the vesting period. We determine the fair value of time-based and performance-based restricted stock units based on the closing market price of our common stock on the grant date. The recognition of compensation expense associated with performance-based restricted stock units requires judgment in assessing the probability of meeting the performance goals, as well as defined criteria for assessing achievement of the performance-related goals. For purposes of measuring compensation expense, the number of shares ultimately expected to vest is estimated at each reporting date based on management’s expectations regarding the relevant performance criteria. The performance shares begin vesting only upon the achievement of the performance criteria. The achievement of the performance goals can impact the valuation and associated expense of the restricted stock units. The assumptions used in accounting for the share-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if circumstances change and we use different assumptions, our stock-based compensation expense could be materially different in the future.
Share-based compensation becomes deductible for determining income taxes when the related award vests, is exercised, or is forfeited depending on the type of share-based award and subject to relevant tax law.
Derivative Financial Instruments:
We occasionally use derivative instruments as part of our overall strategy to manage exposure to market risks primarily associated with fluctuations in foreign currency exchange rates and interest rates. Derivative instruments are recognized as either assets or liabilities in the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the statement of income during the current period. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation.
For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income/(loss) and reclassified into earnings in the same line item associated with the forecasted transaction, and in the same period or periods during which the hedged transaction affects earnings (e.g., in “Interest Expense” when the hedged transactions are interest cash flows associated with floating-rate debt, or “Other, Net” for portions reclassified relating to the remeasurement of the debt). The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, are recognized in the statement of income during the current period.
Recent Accounting Pronouncements
There were no new accounting pronouncements, issued or effective during fiscal 2023, that have had or are expected to have a material impact on our consolidated financial statements.
 
v3.23.1
Acquisitions
 12 Months Ended
Jan. 31, 2023
Business Combinations [Abstract]  
Acquisitions
Note 2 – Acquisitions
Astro Machine
On August 4, 2022, we acquired Astro Machine LLC (“Astro Machine”), an Illinois-based manufacturer of printing equipment, including label printers, tabbers, conveyors, and envelope feeders, for aggregate consideration of $17.1 million.
The acquisition was accomplished pursuant to an Equity Interest Purchase Agreement dated as of August 4, 2022 (the “Purchase Agreement”) by and among us, GSND Holding Corporation (“GSND”), the parent company of Astro Machine, and Astro Machine. Pursuant to the Purchase Agreement, we purchased 100% of the issued and outstanding equity interests of Astro Machine from GSND for a purchase price of $15.6 million. The acquisition was funded using borrowings under our credit facility. We obtained a representation and warranty insurance policy and placed $300,000 of the purchase price into an escrow account, which pursuant to the terms and conditions of the Purchase Agreement, are our sole recourse for breaches of representations and warranties by GSND. Upon the closing of the transaction, Astro Machine became a wholly owned subsidiary of AstroNova, Inc.
Concurrently with the signing of the Purchase Agreement, our newly acquired subsidiary, Astro Machine, entered into a Purchase and Sale Agreement with Selak Real Estate Limited Partnership (“SRE”), pursuant to which Astro Machine purchased certain real property assets of SRE for a purchase price, paid in cash, of $1.5 million. These real estate assets are comprised of a 34,460 square foot industrial manufacturing building (including offices) on 1.26 acres of land, which is Astro Machine’s principal place of business.
This transaction is a business combination and was accounted for using the acquisition method of accounting prescribed by ASC 805, “Business Combinations” (“ASC 805”), whereby the results of operations, including the revenues and earnings of Astro Machine, are included in our financial statements from the date of acquisition. The purchase price of Astro Machine was allocated to the tangible and intangible assets acquired and liabilities assumed and recognized at their fair value based on widely accepted valuation techniques in accordance with ASC 820, “Fair Value Measurement,” as of the acquisition date. The process for estimating fair values requires the use of significant estimates, assumptions and judgments, including determining the timing and estimates of future cash flows and developing appropriate discount rates. The excess of the purchase price over the fair value of the net identified assets acquired and liabilities assumed was recorded as goodwill. ASC 805 establishes a measurement period to provide companies with a reasonable amount of time to obtain the information necessary to identify and measure various items in a business combination and cannot extend beyond one year from the acquisition date.
We completed our final fair value determination of the assets acquired and liabilities assumed during the fourth quarter of fiscal 2023. Since the initial preliminary estimates reported in the third quarter of fiscal 2023, we have adjusted certain amounts for the fair value of the assets acquired and liabilities assumed as a result of obtaining additional information that allowed us to determine the final purchase price allocation, as summarized in the table below. Measurement period adjustments were recognized in the reporting period in which the adjustments were determined and calculated as if the accounting had been completed at the acquisition date.
Total acquisition-related costs of $0.7 million are included in the general and administrative expenses in our consolidated statement of income for the year ended January 31, 2023.
 
The following table sets forth the final purchase price allocation of the Astro Machine acquisition for the estimated fair value of the net asset acquired and liabilities assumed as of the date of acquisition:
 
(In thousands)
 
 
 
 
Cash
    $ 91  
Accounts Receivable
      3,393  
Inventory
      5,715  
Property, Plant and Equipment
      4,200  
Identifiable Intangible Assets
      3,480  
Goodwill
      2,730  
Accounts Payable and Other Current Liabilities
      (2,484 ) 
    
 
 
  
Total Purchase Price
    $ 17,125  
The fair value of the intangible assets acquired was estimated by applying the income approach. This fair value measurement is based on significant inputs that are not observable in the market and therefore represent a Level 3 measurement as defined in ASC 820, “Fair Value Measurement.” Key assumptions in estimating the fair value of the intangibles include (1) remaining useful life of the tradename/trademarks and customer relations (2) the royalty rate of 0.75%, (3) customer attrition rate of 18.0%, (4) discount rate of 19.0% and (5) a range of revenue and net income projections for the fiscal years 2023-2026.
The following table sets forth the fair value of the acquired identifiable intangible assets and related estimated useful lives:
 
(In thousands)   
Fair
Value
 
  
Useful Life
(
y
ears)
  
Customer Relations
    $ 3,060        5  
Trademarks/Tradenames
      420        5  
    
 
 
           
Total
    $ 3,480           
    
 
 
           
The Customer Relations intangible asset represents the relationships that will be maintained with certain historical customers of Astro Machine. The trademark/tradename intangible assets reflect the industry reputation of the Astro Machine name recognition and the registered trademarks for the use of several marks and logos held by Astro Machine.
Goodwill of $2.73 million, which is not deductible for tax purposes, represents the excess of the purchase price over the estimated fair value assigned to the tangible and identifiable intangible assets acquired and liabilities assumed from Astro Machine. The goodwill recognized under ASC 805 is attributable to synergies which are expected to enhance and expand our overall product portfolio, opportunities in new and existing markets, future technologies that have yet to be determined and Astro Machine’s assembled work force. The carrying amount of the goodwill was allocated to the Product Identification (“PI”) segment.
The amounts of revenue and earnings before taxes included in our consolidated statement of income from the period August 4, 2022 (acquisition date) through January 31, 2023 are as follows:
 
(In thousands)
   
2023
  
Revenue
    $ 12,515  
Earnings before Taxes
      1,571  
Astro Machine results are reported as part of the PI segment. Proforma results are not provided, as disclosure of such amounts was impractical to determine as the acquired business had insufficient financial records and no audit
history prior to the transaction.
 
On June 30, 2022, AstroNova Inc. entered into an Asset Purchase and License Agreement with Honeywell Inc. (“New HW Agreement”) to acquire an exclusive, perpetual, world-wide license to manufacture Honeywell’s flight deck printers for the Boeing 787 aircraft.    The New HW Agreement provides for royalty payments to Honeywell based on gross revenues from the sales of the printers, paper and repair services of the licensed products in perpetuity. The royalty rates vary based on the year in which they are paid or earned and as products are sold or as services provided and range from single-digit to
mid-double-digit
percentages of gross revenue. The New HW Agreement included a provision for guaranteed minimum royalty payments to be paid in the event that the royalties earned by Honeywell do not meet the minimum for the preceding calendar year as follows: $100,000 in 2024, $200,000 in 2025, $233,000 in 2026 and 2027, and $234,000 in 2028.

This transaction was evaluated under ASC 805, “Business Combinations,” and was accounted for as an asset acquisition.

The purchase price was allocated to the customer relationship intangible, which was the only asset acquired as a result of this transaction. This asset will be amortized over the useful life of the intangible. The minimum royalty payment obligation and related customer relation intangible were recorded at the present value of the minimum royalty payments.
The acquired identifiable intangible asset is as follows:
 
(In thousands)
  
Fair
Value
 
  
Useful Life
(Years)
 
Customer Contract Relationships
  
$
530
 
  
 
20
 
The minimum royalty payment due was discounted based on the payment schedule and applicable discount rate, resulting in an outstanding royalty obligation of $0.5 million as of January 31, 2023, including $0.1 million recorded as a current liability.
Additional royalties based on sales activity will be recorded in the period that the associated revenue is earned. During the fourth quarter of 2023, we incurred $0.1 million
in e
xcess royalty expense, which is included in cost of revenue in our consolidated statement of income for the year ended January 31, 2023.
v3.23.1
Revenue Recognition
 12 Months Ended
Jan. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 3—Revenue Recognition
We derive revenue from the sale of (i) hardware including, digital color la
be
l printers and specialty OEM printing systems, portable data acquisition systems and airborne printers used in the flight deck and interior of commercial, business and military aircraft, (ii) related consumable supplies including paper, labels, tags, inks, toners and ribbons, (iii) repairs and maintenance of equipment and (iv) service agreements
.
Revenues disaggregated by primary geographic markets and major product types are as follows:
Primary geographical markets:

(In thousands)   
2023
     
2022
     
2021
  
United States
    $ 91,917      $ 68,185      $ 70,911  
Europe
      31,021        31,922        29,029  
Canada
      8,393        6,519        5,574  
Asia
      5,345        5,926        5,105  
Central and South America
      4,589        3,271        3,950  
Other
      1,262        1,657        1,464  
    
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 142,527      $ 117,480      $ 116,033  
    
 
 
     
 
 
     
 
 
  
 
Major product types:
 
(In thousands)   
2023
     
2022
     
2021
  
Hardware
    $ 42,445      $ 31,492      $ 34,111  
Supplies
      82,072        73,244        71,772  
Service and Other
      18,010        12,744        10,150  
    
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 142,527      $ 117,480      $ 116,033  
    
 
 
     
 
 
     
 
 
  
In December 2022, we entered into an amended contract with one of our T&M customers that provided for a total payment of $3.25
 million to be received as a result of our claims allowable under French law relating to additional component costs we have incurred and will continue to incur in order to supply aerospace printers under the contract for the period beginning in April 2022 and continuing through 2025. As of January 31, 2023, $
1.1 million was recognized as revenue in the consolidated income statement for the period ended January 31, 2023, in proportion to the total estimated shipments through the end of the contract period. The balance is recorded within deferred revenue, both current and
non-current,
and will be recognized into revenue based on shipments made of the printers during fiscal years 2024 and 2025.
Contract Assets and Liabilities
We normally do not have contract assets, which are primarily unbilled accounts receivable that are conditional on something other than the passage of time.
Our contract liabilities, which represent billings in excess of revenue recognized, are related to advanced billings for purchased service agreements and extended warranties. Contract liabilities were $412,000 and $262,000 at January 31, 2023 and January 31, 2022, respectively, and are recorded as current deferred revenue in the accompanying consolidated balance sheet. The decrease in the deferred revenue balance during the year ended January 31, 2023 is primarily due to $248,000 of revenue recognized during the period that was included in the deferred revenue balance at January 31, 2023 offset by cash payments received in advance of satisfying performance obligations.
Contract Costs
We have determined that certain costs related to obtaining sales contracts for our aerospace printer products meet the requirement to be capitalized. In the second quarter of fiscal 2022, we extended the remaining useful life of these deferred costs from 6 years to 20 years and changed the amortization method from units sold to the straight-line method. We believe these changes, based on
the life of the aircraft under the applicable sales contracts, appropriately reflects a more systematic and rational approach. This change was treated as a change in
 
accounting estimate that is affected by a change in accounting principle. The impact on net income was immaterial for the period ended January 
31
,
2022
. The balance of these contract assets at
January 31, 2022
, was $
1.3
 million, and in the first quarter of fiscal
2023
we incurred an additional $
0.1
 million in contract costs that will be amortized over
19
years. For the years ended January 
31
,
2023
,
2022
and
2021
, we amortized contract costs of $
75,000
, $
60,000
and $
27,000
, respectively. The balance of deferred incremental direct costs net of accumulated amortization at January 
31
,
2023
, was $
1.4
 million, of which $
0.1
 million is reported in other current assets and $
1.3
 million is reported in ot
her as
sets in the accompanying consolidated balance sheet.
v3.23.1
Intangible Assets
 12 Months Ended
Jan. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Note 4—Intangibl
e
Assets
Intangible assets are as follows:
 
 
 
January 31, 2023
 
 
January 31, 2022
 
(In thousands)
 
Gross
Carrying
Amount
 
 
Accumulated
Amortization
 
 
Currency
Translation
Adjustment
 
 
Net
Carrying
Amount
 
 
Gross
Carrying
Amount
 
 
Accumulated
Amortization
 
 
Currency
Translation
Adjustment
 
 
Net
Carrying
Amount
 
Miltope:
 
 
 
 
 
 
 
 
Customer Contract Relationships
 
$
 3,100
 
 
$
 (2,777
) 
 
$
—  
 
 
$
 323
 
 
$
 3,100
 
 
$
 (2,515
) 
 
$
—  
 
 
$
 585
 
RITEC:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer Contract Relationships
 
 
 2,830
 
 
 
 (1,623
) 
 
 
—  
 
 
 
 1,207
 
 
 
 2,830
 
 
 
 (1,557
) 
 
 
—  
 
 
 
 1,273
 
TrojanLabel:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Existing Technology
 
 
 2,327
 
 
 
 (2,087
) 
 
 
 94
 
 
 
 334
 
 
 
 2,327
 
 
 
 (1,767
) 
 
 
 127
 
 
 
 687
 
Distributor Relations
 
 
 937
 
 
 
 (588
) 
 
 
 27
 
 
 
 376
 
 
 
 937
 
 
 
 (498
) 
 
 
 46
 
 
 
 485
 
Honeywell:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer Contract Relationships
 
 
 27,773
 
 
 
 (11,913
) 
 
 
—  
 
 
 
 15,860
 
 
 
 27,243
 
 
 
 (11,073
) 
 
 
—  
 
 
 
 16,170
 
Astro Machine:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer Contract Relationships
 
 
 3,060
 
 
 
 (306
) 
 
 
—  
 
 
 
 2,754
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
Trademarks
 
 
 420
 
 
 
 (42
) 
 
 
—  
 
 
 
 378
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Intangible Assets, net
 
$
 40,447
 
 
$
 (19,336
) 
 
$
 121
 
 
$
 21,232
 
 
$
 36,437
 
 
$
 (17,410
) 
 
$
 173
 
 
$
 19,200
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
In the second quarter of 2022, we extended the remaining useful life of the pre-existing customer contract relationship intangibles for Honeywell International, Inc. (“Honeywell”) from
6 years to 20 years and for the RITEC intangibles we changed the amortization method which was based on revenue with a remaining life of 4 years to the straight-line method with a
20-year
remaining life. We believe these changes, based on the life of the aircraft related to these intangibles, appropriately reflects a more systematic and rational approach to distributing the cost of these intangibles over their useful lives. The change in the amortization of the Honeywell customer contract relationship intangibles is being treated as a change in accounting estimate in 2022 and the change in the amortization of the RITEC customer contract relationship intangibles is being treated as a change in accounting estimate in 2022 that is effected by a change in accounting principle. The changes in amortization resulted in a $1.8 million decrease in amortization expense and a $1.8 million increase to net income for the period ended January 31, 2022.
There were no impairments to intangible assets during the periods ended January 31, 2023 and 2022. Amortization expense of $1.9 million, $2.2 million, and $4.1 million with regard to acquired intangibles has been included in the consolidated statements of income for the years ended January 31, 2023, 2022 and 2021, respectively.
Estimated amortization expense for the next
five
fiscal years is as follows:
 
(In thousands)   
2024
     
2025
     
2026
     
2027
     
2028
  
Estimated amortization expense
    $ 2,378      $ 1,719      $ 1,718      $ 1,7192      $ 1,281  
v3.23.1
Inventories
 12 Months Ended
Jan. 31, 2023
Inventory Disclosure [Abstract]  
Inventories
Note 5—Inventories
The components of invento
ries
are as follows:
 
    
January 31,
  
    
2023
     
2022
  
(In thousands)              
Materials and Supplies
    $ 38,387      $ 22,709  
Work-in-Progress
      1,146        1,489  
Finished Goods
      23,221        19,718  
    
 
 
     
 
 
  
       62,754        43,916  
Inventory Reserve
      (11,430 )       (9,307 ) 
    
 
 
     
 
 
  
     $ 51,324      $ 34,609  
    
 
 
     
 
 
  
Finished goods inventory includes $2.3 million and $3.4 million of demonstration equipment at January 31, 2023 and 2022, respectively.
v3.23.1
Property, Plant and Equipment
 12 Months Ended
Jan. 31, 2023
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
Note 6—Property, Plant and Equipment
Property, plant and equipment consist of the following:
 
    
January 31,
  
    
2023
     
2022
  
(In thousands)              
Land and Land Improvements
    $ 2,304      $ 1,004  
Buildings and Leasehold Improvements
      14,158        12,666  
Machinery and Equipment
      24,960        23,238  
Computer Equipment and Software
      13,972        13,913  
    
 
 
     
 
 
  
Gross Property, Plant and Equipment
      55,394        50,821  
Accumulated Depreciation
      (41,106 )       (39,380 ) 
    
 
 
     
 
 
  
Net Property Plant and Equipment
    $ 14,288      $ 11,441  
    
 
 
     
 
 
  
Depreciation expense on property, plant and equipment was $2.0 million for the year ended January 31, 2023 and $1.7 million and $1.9 million for the years ended January 31, 2022 and 2021, respectively.
During fiscal 2022, we
wrote-off
our Oracle EnterpriseOne enterprise resource planning (“ERP”) system due to the full implementation of a new ERP system in our US operations. The book value and related accumulated depreciation of the Oracle EnterpriseOne ERP system along with the balance of the related prepaid service and maintenance contracts were removed from the accompanying consolidated balance sheet at January 31, 2022, and we have recorded a net loss on the disposal of $696,000, which is included in other income (expense) in the accompanying consolidated income statement for the year ended January 31, 2022.
v3.23.1
Accrued Expenses
 12 Months Ended
Jan. 31, 2023
Payables and Accruals [Abstract]  
Accrued Expenses
Note 7—Accrued Expenses
Accrued expenses consist of the following:

 
  
January 31,
 
(In thousands)   
2023
     
2022
  
Warranty
    $ 1,072      $ 834  
Professional Fees
      311        411  
Freight
      —          347  
Lease Liability
      275        327  
Accrued Property & Sales Tax
      187        316  
Stockholder Relation Fees
      86        102  
Dealer Commissions
      78        139  
Other Accrued Expenses
      1,299        1,637  
    
 
 
     
 
 
  
     $ 3,308      $ 4,113  
    
 
 
     
 
 
  
v3.23.1
Credit Agreement and Long-Term Debt
 12 Months Ended
Jan. 31, 2023
Debt Disclosure [Abstract]  
Credit Agreement and Long-Term Debt
Note 8—Credit Agreement and Long-Term Debt
Credit Agreement
In connection with the purchase of Astro Machine, on August 4, 2022, we entered into a Second Amendment to Amended and Restated Credit Agreement (the “Second Amendment”) with Bank of America, N.A., as lender (the “Lender”). The Second Amendment amended the Amended and Restated Credit Agreement dated as of July 30, 2020, as amended by the First Amendment to Amended and Restated Credit Agreement, dated as of March 24, 2021, and the LIBOR Transition Amendment, dated as of December 24, 2021 (the “Existing Credit Agreement,” and the Existing Credit Agreement as amended by the Second Amendment, the “Amended Credit Agreement”), between the Company and the Lender.
The Amended Credit Agreement provides for (i) a new term loan in the principal amount of $6.0 million, which term loan was in addition to the existing term loan outstanding under the Existing Credit Agreement in the principal amount of $9.0 million as of the effective date of the Second Amendment, and (ii) an increase in the aggregate principal amount of the revolving credit facility available thereunder from $22.5 million to $25.0 million. At the closing of the Second Amendment, we borrowed the entire $6.0 million term loan and $12.4 million under the revolving credit facility, and the proceeds of such borrowings were used in part to pay the purchase price payable under the Purchase Agreement and certain related transaction costs. The revolving credit facility may otherwise be used for corporate purposes.
The Amended Credit Agreement requires that the term loan be paid in quarterly installments on the last day of each of our fiscal quarters over the term of the Amended Credit Agreement on the following repayment schedule: the principal amount of each quarterly installment required to be paid on the last day of each of our fiscal quarters ending on or about October 31, 2022 through July 31, 2023 is $375,000; and the principal amount of each quarterly installment required to be paid on the last day of each of our fiscal quarters ending on or about October 31, 2023 through April 30, 2027 is $675,000. The entire remaining principal balance of the term loan is required to be paid on August 4, 2027. We may voluntarily prepay the term loan, in whole or in part, from time to time without premium or penalty (other than customary breakage costs, if applicable). We may repay borrowings under the revolving credit facility at any time without premium or penalty (other than customary breakage costs, if applicable), but in any event no later than August 4, 2027, and any outstanding revolving loans thereunder will be due and payable in full, and the revolving credit facility will terminate, on such date. We may reduce or terminate the revolving line of credit at any time, subject to certain thresholds and conditions, without premium or penalty.
The interest rates under the Amended Credit Agreement are as follows: the term loan and revolving credit loans bear interest at a rate per annum equal to, at our option, either (a) the BSBY Rate as defined in the
 
Amended Credit Agreement (or, in the case of revolving credit loans denominated in a currency other than U.S. Dollars, the applicable quoted rate), plus a margin that varies within a range of 1.60% to 2.50% based on our consolidated leverage ratio, or (b) a fluctuating reference rate equal to the highest of (i) the federal fund rate plus 0.50%, (ii) Bank of America’s publicly announced prime rate, (iii) the BSBY Rate plus 1.00%, or (iv) 0.50%, plus a margin that varies within a range of 0.60% to 1.50% based on our consolidated leverage ratio. In addition to certain other fees and expenses that we are required to pay to the Lender, we are required to pay a commitment fee on the undrawn portion of the revolving credit facility that varies within a range of 0.15% and 0.35% based on our consolidated leverage ratio. The loans under the Amended Credit Agreement are subject to certain mandatory prepayments, subject to various exceptions, from (a) net cash proceeds from certain dispositions of property, (b) net cash proceeds from certain issuances of equity, (c) net cash proceeds from certain issuances of additional debt and (d) net cash proceeds from certain extraordinary receipts.
Amounts repaid under the revolving credit facility may be reborrowed, subject to our continued compliance with the Amended Credit Agreement. No amount of the term loan that is repaid may be reborrowed.
We must comply with various customary financial and
non-financial
covenants under the Amended Credit Agreement. The financial covenants under the Amended Credit Agreement consist of a maximum consolidated leverage ratio, a minimum consolidated fixed charge coverage ratio and a minimum consolidated asset coverage ratio. The primary
non-financial
covenants limit our and our subsidiaries’ ability to incur future indebtedness, to place liens on assets, to pay dividends or distributions on our or our subsidiaries’ capital stock, to repurchase or acquire our or our subsidiaries’ capital stock, to conduct mergers or acquisitions, to sell assets, to alter our or our subsidiaries’ capital structure, to make investments and loans, to change the nature of our or our subsidiaries’ business, and to prepay subordinated indebtedness, in each case subject to certain exceptions and thresholds as set forth in the Amended Credit Agreement, certain of which provisions were modified by the Second Amendment. As of January 31, 2023, we believe we are in compliance with all of the covenants in the Credit Agreement.
The Lender is entitled to accelerate repayment of the loans and to terminate its revolving credit commitment under the Amended Credit Agreement upon the occurrence of any of various customary events of default, which include, among other events, the following (which are subject, in some cases, to certain grace periods): failure to pay when due any principal, interest or other amounts in respect of the loans, breach of any of our covenants or representations under the loan documents, default under any other of our or our subsidiaries’ significant indebtedness agreements, a bankruptcy, insolvency or similar event with respect to us or any of our subsidiaries, a significant unsatisfied judgment against us or any of our subsidiaries, or a change of control.
Our obligations under the Amended Credit Agreement continue to be secured by substantially all of our personal property assets (including a pledge of the equity interests we hold in ANI ApS, AstroNova GmbH and AstroNova SAS), subject to certain exceptions, and by a mortgage on our owned real property in West Warwick, Rhode Island, and are guaranteed by, and secured by substantially all of the personal property assets of Astro Machine.
Summary of Outstanding Debt
Revolving Credit Facility
During fiscal 2023 we borrowed a net of $15.9 million on our revolving line of credit. The balance outstanding under the revolving line of credit bore interest at a weighted average rate of 6.71% and 4.10% for the years ended January 31, 2023 and January 31, 2022, respectively, and we incurred $752,000 and $4,000 for interest on this obligation during the years ended January 31, 2023 and January 31, 2022, respectively. Commitment fees on the undrawn portion of our revolving credit facility of $30,000 and $50,000 were incurred for the yea
rs ended January 31
, 2023
and January 31
, 2022
, respectively. Both the interest expense and commitment fees are included as interest expense in the accompanying consolidated income statement for all periods presented. At January 31
, 2023
, $
9.1
 million remains available for borrowing under our revolving line of credit.
 
Long-Term Debt
Long-term debt in the accompanying condensed consolidated balance sheets under the Amended Credit Agreement is as follows:
 
    
January 31,
  
(In thousands)   
2023
     
2022
  
USD Term Loan (6.78% as of January 31, 2023); maturity date of August 4, 2027
    $ 14,250      $ —    
USD Term Loan (2.35% as of January 31, 2022); maturity date of September 30, 2025
      —        $ 9,250  
    
 
 
     
 
 
  
       14,250        9,250  
Debt Issuance Costs, net of accumulated amortization
      (110 )       (96 ) 
Current Portion of Term Loan
      (2,100 )       (1,000 ) 
    
 
 
     
 
 
  
Long-Term Debt
    $ 12,040      $ 8,154  
    
 
 
     
 
 
  
During the years ended January 31, 2023, 2022 and 2021, we recognized $0.6 million, $0.3 million and $0.5 million of interest expense on our long-term debt, respectively, which was included in interest expense in the accompanying consolidated income statement for all periods presented.
The schedule of required principal payments remaining on our long-term debt outstanding as of January 31, 2023 is as follows:
 
(In thousands)       
Fiscal 2024
    $ 2,100  
Fiscal 2025
      2,700  
Fiscal 2026
      2,700  
Fiscal 2027
      2,700  
Fiscal 2028
      4,050  
    
 
 
  
     $ 14,250  
    
 
 
  
v3.23.1
Paycheck Protection Program Loan
 12 Months Ended
Jan. 31, 2023
Debt Disclosure [Abstract]  
Paycheck Protection Program Loan
Note 9—Paycheck Protection Program Loan
On May 6, 2020, we entered into a loan agreement with, and executed a promissory note in favor of Greenwood pursuant to which we borrowed $4.4 million (the “PPP Loan”) from Greenwood under the Paycheck Protection Program (“PPP”) administered by the SBA and authorized by the CARES Act.
The PPP Loan, originally scheduled to mature on May 6, 2022, was unsecured and bore interest at a rate of 1.0% per annum, accruing from the loan date.
On June 15, 2021, Greenwood notified us that the SBA approved our application for forgiveness of the entire $4.4 million principal balance of our PPP Loan and all accrued interest thereon. As a result, in the second quarter of fiscal 2022, we recorded a $4.5 million gain on extinguishment of debt, which is included in the accompanying consolidated income statement for the period ended January 31,
2022.
v3.23.1
Derivative Financial Instruments and Risk Management
 12 Months Ended
Jan. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments and Risk Management
Note 10—Derivative Financial Instruments and Risk Management
In 2017, we entered into a cross-currency interest rate swap and an interest rate swap to manage the interest rate risk.
 
On July 30, 2020, we terminated these two swaps. The terms of the Amended and Restated Credit Agreement dated as of July 30, 2020, caused those swaps to cease to be effective hedges of the underlying exposures. The termination of the swaps was contracted immediately prior to the end of the second quarter of fiscal 2021 at a cash cost of approximately $0.7 million which was settled in the third quarter of fiscal 2021. Upon termination, the remaining balance of $58,000 in accumulated other comprehensive loss related to the cross-currency interest rate swap was reclassified into earnings as the forecasted foreign currency interest payments will not occur.
The $0.2 million remaining balance in accumulated other comprehensive loss related to the interest rate swap was amortized into earnings through the original term of the hedge relationship as the underlying floating interest rate debt still exists.
At January 31, 2023, we have fully reclassified all of the net losses on the frozen other comprehensive income balance from accumulated other comprehensive loss to earnings associated with the terminated interest rate swap due to the payment of variable interest associated with the floating interest rate debt.
The following tables present the impact of the derivative instruments in our consolidated financial statements for the years ended January 31, 2023 and 2022:
 
    
Years Ended
  
Cash Flow Hedge
(In thousands)
   
Amount of Gain(Loss)
Recognized in OCI
on
Derivative
     
Location of Gain (Loss)
Reclassified from
Accumulated OCI into
Income
     
Amount of Gain (Loss)
Reclassified from
Accumulated OCI into
Income
  
  
January 31,
2023
     
January 31,
2022
     
January 31,
2023
    
January 31,
2022
  
Swap contracts
    $ —        $ —          Other Income      $ (59 )    $ (79 ) 
    
 
 
     
 
 
              
 
 
    
 
 
  
v3.23.1
Employee Retention Credit
 12 Months Ended
Jan. 31, 2023
Employee Retention Credit Disclosure [Abstract]  
Employee Retention Credit
Note 11—Employee Retention Credit
The CARES Act provides an employee retention credit (“ERC”) that is a refundable tax credit against certain employer taxes. On December 27, 2020, Congress enacted the Taxpayer Certainty and Disaster Tax Relief Act of 2020, which amended and extended ERC availability under Section 2301 of the CARES Act. Before the enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, we were ineligible for the ERC because we received the PPP Loan. Following enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, we and other businesses that received loans under that program became retroactively eligible for the ERC.
As a result of the foregoing legislation, we were eligible to claim a refundable tax credit against the employer share of Social Security taxes equal to seventy percent (70%) of the qualified wages that we paid to our employees between December 31, 2020 and June 30, 2021. Qualified wages are limited to $10,000 per employee per calendar quarter in 2021 for a maximum ERC per employee of $7,000 per calendar quarter in 2021.
We evaluated our eligibility for the ERC in the second quarter of calendar year 2021
. In order to qualify for the ERC, we needed to experience a
20
% reduction in gross receipts from either (1)
 the same quarter in calendar year 2019
or (2)
 the immediately preceding quarter to the corresponding calendar quarter in 2019
. We determined that we qualified for the employee retention credit under the first scenario for wages paid in calendar year 2020
and the first calendar quarter of 2021
. In the second quarter of the current year, we amended certain payroll tax filings and applied for a refund of $
3.1
 
million. Since there is no US GAAP guidance for
for-profit
business entities that receive government assistance that is not in the form of a loan, an income tax credit or revenue from a contract with a customer, we determined the appropriate accounting treatment by analogy to other guidance. We accounted for the employee retention credit by analogy to International Accounting Standards (IAS) 20, Accounting for Government Grants and Disclosure of Government Assistance, of
 
International Financial Reporting Standards (IFRS). Under an IAS 20 analogy, a business entity would recognize the credit on a systematic basis over the periods in which the entity recognizes the payroll expenses for which the grant (i.e., tax credit) is intended to compensate when there is reasonable assurance (i.e., it is probable) that the entity will comply with any conditions attached to the grant and the grant (i.e., tax credit) will be received.
We recorded a $
3.1
 million receivable in the second quarter of fiscal 2022
for the ERC receivable, which was outstanding as of January 31
, 2022
and is included as such in the accompanying consolidated balance sheet. The $
3.1
 mil
lion of ERCs was recognized as a reduction in employer payroll taxes and allocated to the financial statement captions from which the employee’s taxes were originally incurred. As a result, we recorded a reduction in expenses of $1.7 million in cost of revenue, $0.8 million in selling and marketing, $0.3 million in research and development and $0.3 million in general and administrative which is reflected in the accompanying consolidated income statement for the year ended January 31, 2022. On March 22, 2022, we received the $3.1 million for the ERC.
v3.23.1
Royalty Obligation
 12 Months Ended
Jan. 31, 2023
Royalty Obligation Disclosure [Abstract]  
Royalty Obligation
Note 12—Royalty Obligation
In fiscal 2018, AstroNova, Inc. entered into an Asset Purchase and License Agreement with Honeywell International, Inc. to acquire an exclusive, perpetual, world-wide license to manufacture Honeywell’s narrow-format flight deck printers for two aircraft families along with certain inventory used in the manufacturing of the licensed printers. The purchase price included a guaranteed minimum royalty payment of $15.0 million, to be paid in quarterly installments over a
ten-year
period. Royalty payments are based on gross revenues from the sales of the printers, paper and repair services of the licensed products. The royalty rates vary based on the year in which they are paid or earned and product sold or service provided, and range from single-digit to mid double-digit percentages of gross revenue.
The guaranteed minimum royalty payment obligation was recorded at the present value of the minimum annual royalty payments. As of January 31, 2023, we had paid an aggregate of $
9.5 million of the guaranteed minimum royalty obligation. At January 31, 2023, the current portion of the outstanding guaranteed minimum royalty obligation of $1.6 million is to be paid over the next twelve months and is reported as a current liability and the remainder of $3.0 million is reported as a long-term liability on our consolidated balance sheet. In addition to the guaranteed minimum royalty payments, for the periods ended January 31, 2023 and January 31, 2022, we also incurred excess royalty expense of $1.3 million and $0.5 million, respectively, which is included in cost of revenue in our consolidated statements of income. A total of $0.4 million of excess royalty is payable and reported as a current liability on our consolidated balance sheet at January 31, 2023.
In fiscal 2023, AstroNova, Inc. entered into a second Asset Purchase and License Agreement with Honeywell International, Inc. as further discussed in Note 2.
v3.23.1
Leases
 12 Months Ended
Jan. 31, 2023
Leases [Abstract]  
Leases
Note 13—Leases
We enter into lease contracts for certain of our facilities at various locations worldwide. Our leases have remaining lease terms of one to six years, some of which include options to extend the lease term for periods of up to five years when it is reasonably certain that we will exercise such options.
Balance sheet and other information related to our leases is as follows:
 
Operating Leases
(In thousands)
   
Balance Sheet Classification
   
January 31,
2023
     
January 31,
2022
  
Lease Assets
    Right of Use Assets    $ 794      $ 1,094  
Lease Liabilities—Current
    Other Accrued Expenses    $ 275      $ 327  
Lease Liabilities—Long Term
    Lease Liabilities    $ 555      $ 808  
 
Lease cost information is as follows:
 
Operating Leases
(In thousands)
  
Statement of Income Classification
 
  
2023
 
  
2022
 
Operating Lease Costs
   
 
 General and Administrative Expense
 
    $ 460      $ 510  
At January 31, 2023, maturities of operating lease liabilities
are
as follows:
 
(In thousands)
       
2024
    $ 302  
2025
      199  
2026
      154  
2027
      149  
2028
      92  
Thereafter
      —    
    
 
 
  
Total Lease Payments
      896  
Less: Imputed Interest
      (66 ) 
    
 
 
  
Total Lease Liabilities
    $ 830  
    
 
 
  
As of January 31, 2023, the weighted-average remaining lease term and weighted-average discount rate for our operating leases are 3.8 years and 3.87%, respectively. We calculated the weighted-average discount rate using incremental borrowing rates, which equal the rates of interest that we would pay to borrow funds on a fully collateralized basis over a similar term.
Supplemental cash flow information related to leases is as follows:
 
(In thousands)
   
2023
     
2022
  
Cash paid for operating lease liabilities
    $ 314      $ 372  
v3.23.1
Accumulated Other Comprehensive Loss
 12 Months Ended
Jan. 31, 2023
Equity [Abstract]  
Accumulated Other Comprehensive Loss
Note 14—Accumulat
ed O
ther Comprehensive Loss
The changes in the balance of accumulated other comprehensive loss by component are as follows:
 
(In thousands)   
Foreign Currency
Translation
Adjustments
     
Net
Unrealized
Gain (Losses)
on Cash Flow
Hedges
     
Total
  
Balance at January 31, 2020
    $ (985 )     $ (108 )     $ (1,093 ) 
Other Comprehensive Income (Loss) before reclassification
      710        (239 )       471  
Amounts Reclassified from AOCI to Earnings
      —          193        193  
Cross-Currency Interest Rate Swap Termination
      —          45        45  
    
 
 
     
 
 
     
 
 
  
Other Comprehensive Income (Loss)
      710        (1 )       709  
    
 
 
     
 
 
     
 
 
  
Balance at January 31, 2021
    $ (275 )     $ (109 )     $ (384 ) 
Other Comprehensive Loss before reclassification
      (1,426 )       —          (1,426 ) 
Amounts Reclassified from AOCI to Earnings
      —          62        62  
    
 
 
     
 
 
     
 
 
  
Other Comprehensive Income (Loss)
      (1,426 )       62        (1,364 ) 
    
 
 
     
 
 
     
 
 
  
Balance at January 31, 2022
    $ (1,701 )     $ (47 )     $ (1,748 ) 
Other Comprehensive Income (Loss) before reclassification
      (537 )       —          (537 ) 
Amounts reclassified from AOCI to Earnings
      —          47        47  
    
 
 
     
 
 
     
 
 
  
Other Comprehensive Income (Loss)
      (537 )       47        (490 ) 
    
 
 
     
 
 
     
 
 
  
Balance at January 31, 2023
    $ (2,238 )     $ —        $ (2,238 ) 
    
 
 
     
 
 
     
 
 
  
 
The amounts presented above in other comprehensive income (loss) are net of taxes except for translation adjustments associated with our German, Danish and Shanghai subsidiaries.
v3.23.1
Shareholders' Equity
 12 Months Ended
Jan. 31, 2023
Federal Home Loan Banks [Abstract]  
Shareholders' Equity
Note 15—Shareholders’ Equity
During fiscal years 2023 and 2022, certain of our employees delivered a total of 17,752 and 27,222 shares, respectively, of our common stock to satisfy the exercise price and related taxes for stock options exercised and restricted stock vesting. The shares delivered were valued at a total of $0.3 million and $0.4 millio
n, resp
ectively, and are included in treasury stock in the accompanying consolidated balance sheets
a
t January 31, 2023 and 2022. These transactions did not impact the number of shares authorized for repurchase under our current repurchase program.
v3.23.1
Share-Based Compensation
 12 Months Ended
Jan. 31, 2023
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation
Note 16—Share-Based Compensation
The Company maintains the following share-based compensation plans:
Stock Plans:
We have one equity incentive plan from which we are authorized to grant equity awards, the AstroNova, Inc. 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan provides for, among other things, the issuance of awards, including incentive stock options,
non-qualified
stock options, stock appreciation rights, time-based restricted stock units (“RSUs”), or performance-based restricted stock units (“PSUs”) and restricted stock awards (RSAs). The 2018 Plan authorizes the issuance of up to 950,000 shares of common stock, plus an additional number of shares equal to the number of shares subject to awards granted under the previous equity incentive plans that are forfeited, cancelled, satisfied without the issuance of stock, otherwise terminated (other than by exercise), or, for shares of stock issued pursuant to any unvested award, that are reacquired by us at not more than the grantee’s purchase price (other than by exercise). Under the 2018 Plan, all awards to employees generally have a minimum vesting period of one year. Options granted under the 2018 Plan must be issued at an exercise price of not less than the fair market value of our common stock on the date of grant and expire after ten years. Under the 2018 Plan, there were 124,962 unvested RSUs; 128,793 unvested PSUs; 21,172 unvested RSAs and options to purchase an aggregate of 135,500 shares outstanding as of January 31, 2023.
In addition to the 2018 Plan, we previously granted equity awards under our 2015 Equity Incentive Plan (the “2015 Plan”) and our 2007 Equity Incentive Plan (the “2007 Plan”). No new awards may be issued under either the 2007 or 2015 Plans, but outstanding awards will continue to be governed by those plans. As of January 31, 2023, options to purchase an aggregate of 276,574 shares were outstanding under the 2007 Plan and options to purchase an aggregate of 135,125 shares were outstanding under the 2015 Plan.
We also have a
Non-Employee
Director Annual Compensation Program (the “Program”), under which each of our
non-employee
directors automatically receives a grant of restricted stock on the date of their
re-election
to our board of directors. The number of whole shares granted is equal to the number calculated by dividing the stock component of the director compensation amount determined by the compensation committee for that year by the fair market value of our stock on that day. The value of the restricted stock award for fiscal 2023 was $65,000. Shares of restricted stock granted under the Program become vested on the first anniversary of the date of grant, conditi
one
d upon the recipient’s continued service on our board of directors through that date.
 
Share-Based Compensation:
Share-based compensation expense has been recognized as follows:
 
    
Years Ended January 31
  
    
2023
     
2022
     
2021
  
(In thousands)                     
Stock Options
    $ 7      $ 210      $ 517  
Restricted Stock Awards and Restricted Stock Units
      1,271        1,266        1,285  
Employee Stock Purchase Plan
      12        17        17  
    
 
 
     
 
 
     
 
 
  
Total
    $ 1,290      $ 1,493      $ 1,819  
    
 
 
     
 
 
     
 
 
  
Stock Options:
Aggregated information regarding stock options granted under the plans is summarized below:
 
    
Number
of Shares
     
Weighted-
Average
Exercise
Price Per
Share
  
Options Outstanding, January 31, 2020
      679,044      $ 14.46  
Options Granted
      —          —    
Options Exercised
      (1,200 )       7.60  
Options Forfeited
      (54,361 )       12.89  
Options Cancelled
      (1,400 )       7.36  
    
 
 
     
 
 
  
Options Outstanding, January 31, 2021
      622,083      $ 14.63  
Options Granted
      —          —    
Options Exercised
      (6,425 )       9.34  
Options Forfeited
      (17,615 )       15.09  
Options Cancelled
      —          —    
    
 
 
     
 
 
  
Options Outstanding, January 31, 2022
      598,043      $ 14.67  
Options Granted
      —          —    
Options Exercised
      (42,944 )       8.74  
Options Forfeited
      (5,500 )       15.42  
Options Cancelled
      (2,400 )       8.09  
    
 
 
     
 
 
  
Options Outstanding, January 31, 2023
      547,199      $ 15.16  
    
 
 
     
 
 
  
Set forth below is a summary of options outstanding at January 31, 2023:
 
Outstanding
 
  
Exercisable
 
Range of
Exercise prices
  
Number of
Shares
 
  
Weighted-
Average
Exercise Price
 
  
Weighted-
Average
Remaining
Contractual Life
 
  
Number of
Shares
 
  
Weighted-
Average
Exercise Price
 
  
Weighted
Average
Remaining
Contractual
Life
 
$5.00-10.00
      —        $ —          —          —        $ —          —    
$10.01-15.00
      332,849        13.68        2.9        332,849        13.68        2.9  
$15.01-20.00
      214,350        17.45        4.8        214,350        17.45        4.8  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
       547,199      $ 15.16        3.7        547,199      $ 15.16        3.7  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
No options were granted during fiscal 2023 or fiscal 2022. As of January 31, 2023, there was no unrecognized compensation expense related to the unvested stock options granted under the plans
.
 
As of January 31, 2023, the aggregate intrinsic value (the aggregate difference between the closing stock price of our common stock on January 31, 2023, and the exercise price of the outstanding options) that would have been received by the option holders if all options had been exercised was $50,000 for all exercisable options and all options outstanding. The total aggregate intrinsic value of options exercised during fiscal 2023, 2022 and 2021 was $200,000, $26,000, and $4,000,
respectively.

Restricted Stock Units, Performance-Based Restricted Stock Units and Restricted Stock Awards :
Aggregated information regarding RSUs, PSUs and RSAs granted under the Plan is summarized below:
 
    
RSUs, PSUs &
RSAs
     
Weighted-Average
Grant Date Fair Value
  
Outstanding at January 31, 2020
      134,634      $ 16.79  
Granted
      245,131        7.61  
Vested
      (64,997 )       17.28  
Forfeited
      (117,355 )       8.83  
    
 
 
     
 
 
  
Outstanding at January 31, 2021
      197,413      $ 9.96  
Granted
      151,406        14.51  
Vested
      (126,939 )       10.43  
Forfeited
      (900 )       14.26  
    
 
 
     
 
 
  
Outstanding at January 31, 2022
      220,980      $ 13.23  
Granted
      141,371        12.70  
Vested
      (85,324 )       13.45  
Forfeited
      (2,100 )       13.25  
    
 
 
     
 
 
  
Outstanding at January 31, 2023
      274,927      $ 12.82  
    
 
 
     
 
 
  
As of January 31, 2023, there was $2.0 million of unrecognized compensation expense related to unvested RSUs, PSUs and RSAs. This expense is expected to be recognized over a weighted average period of 1.3 years.
Employee Stock Purchase Plan (ESPP):
On June 7, 2022, we adopted the AstroNova Inc. 2022 Employee Stock Purchase Plan (“2022 ESPP”) to replace our previous Employee Stock Purchase Plan (the “Prior ESPP”). The 2022 ESPP allows eligible employees to purchase shares of common stock at a 15% discount from fair value on the first or last day of an offering period, whichever is less. A total of 40,000 shares were reserved for issuance under this plan and 5,045 shares were purchased under the 2022 ESSP during the year ended January 31, 2023. During the periods ended January 31, 2023 and January 31, 2022, there were 1,550 and 8,092 shares, respectively, purchased under the Prior ESPP, and no additional purchases may be made under the Prior ESPP. As of January 31, 2023, 34,955 shares remain available for purchase under the 2022 ESPP.
v3.23.1
Income Taxes
 12 Months Ended
Jan. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes
Note 17—Income Taxes
The components of income (loss) before income taxes are as follows:
 
    
2023
     
2022
     
2021
  
(In thousands)                     
Domestic
    $ 1,773      $ 5,046      $ (1,193 ) 
Foreign
      1,637        1,988        3,372  
    
 
 
     
 
 
     
 
 
  
     $ 3,410      $ 7,034      $ 2,179  
    
 
 
     
 
 
     
 
 
  
 
The components of the provision for income taxes are as follows:
 
 
  
2023
 
  
2022
 
  
2021
 
(In thousands)
  
 
 
  
 
 
  
 
 
Current:
                           
Federal
    $ 902      $ (183 )     $ 1,272  
State
      313        76        224  
Foreign
      870        501        420  
    
 
 
     
 
 
     
 
 
  
       2,085        394        1,916  
    
 
 
     
 
 
     
 
 
  
Deferred:
                           
Federal
    $ (1,053 )     $ 180      $ (910 ) 
State
      (315 )       177        (189 ) 
Foreign
      32        (146 )       78  
    
 
 
     
 
 
     
 
 
  
       (1,336 )       211        (1,021 ) 
    
 
 
     
 
 
     
 
 
  
     $ 749      $ 605      $ 895  
    
 
 
     
 
 
     
 
 
  
Total income tax provision differs from the expected tax provision as a result of the following:
 
    
2023
     
2022
     
2021
  
(In thousands)                     
Income Tax Provision at Statutory Rate
    $ 716      $ 1,477      $ 458  
Change in Valuation Allowance
      182        57        (81 ) 
Foreign Rate Differential
      157        61        197  
Change in Reserves Related to ASC 740 Liability
      93        (245 )       (10 ) 
Denmark Statutory Audit
      —          —          341  
Meals and Entertainment
      —          9        11  
Canada Withholding Taxes
      —          —          62  
Global Intangible Low Taxed Income
      —          —          14  
Foreign Derived Intangible Income
      (180 )       (55 )       (150 ) 
R&D Credits
      (160 )       (180 )       (157 ) 
Share Based Compensation
      (52 )       (95 )       171  
Return to Provision Adjustment
      (22 )       368        (2 ) 
State Taxes, Net of Federal Tax Effect
      (2 )       143        28  
PPP Loan Forgiveness
      —          (937 )       —    
Other
      17        2        13  
    
 
 
     
 
 
     
 
 
  
     $ 749      $ 605      $ 895  
    
 
 
     
 
 
     
 
 
  
Our effective tax rate for fiscal 2023 was 22.0% compared to 8.6% in fiscal 2022 and 41.1% in fiscal 2021. The increase in the effective tax rate in fiscal 2023 from fiscal 2022 is primarily related to the absence of the PPP loan forgiveness which is
tax-exempt
income that was a
one-time
item that reduced the rate in fiscal 2022. Specific items increasing the effective tax rate in fiscal 2023 include the change in reserves related to ASC 740 liability and the increase in the valuation allowance recorded on China net operating losses. This increase was offset by state taxes, return to provision adjustments, share-based compensation, R&D tax credits, and foreign derived intangible income (“FDII”) deduction.
The decrease in the effective tax rate in fiscal 2022 from fiscal 2021 is primarily related to the
one-time
impact of the PPP loan forgiveness
tax-exempt
income. Specific items decreasing the effective tax rate include PPP loan forgiveness
tax-exempt
income, R&D tax credits, foreign derived intangible income (“FDII”) deduction and change in reserves related to ASC 740 liabilities. This decrease was offset by state taxes, return to provision adjustments, and taxes on foreign earnings.
 
The components of deferred income tax expense arise from various temporary differences and relate to items included in the statement of income. The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities are as follows:
 
    
January 31,
  
(In thousands)

   
2023
     
2022
  
Deferred Tax Assets:
                  
Inventory
    $ 2,710      $ 2,159  
Honeywell Royalty Liability
      3,008        2,655  
State R&D Credits
      1,851        1,925  
Share-Based Compensation
      620        593  
Bad Debt
      180        213  
Warranty Reserve
      258        198  
Compensation Accrual
      248        322  
Net Operating Loss
      135        152  
ASU 842 Adjustment – Lease Liability
      53        93  
Unrecognized State Tax Benefits
      58        64  
Foreign Tax Credit
      154        154  
Deferred Service Contract Revenue
      90        61  
Section 174 Capitalization*
      1,175        —    
Other
      281        224  
    
 
 
     
 
 
  
     10,821      8,813  
Deferred Tax Liabilities:
                  
Accumulated Tax Depreciation in Excess of Book Depreciation
      1,037        455  
Intangibles
      694        767  
ASU 842 Adjustment – Lease Liability
      50        90  
Other
      180        318  
    
 
 
     
 
 
  
     1,961      1,630  
    
 
 
     
 
 
  
Subtotal
      8,860        7,183  
Valuation Allowance
      (2,120 )       (1,778 ) 
    
 
 
     
 
 
  
Net Deferred Tax Assets
    $ 6,740      $ 5,405  
    
 
 
     
 
 
  
 
*
Beginning in fiscal 2023, changes to Section 174 of the Internal Revenue Code made by the Tax Cuts and Jobs Act of 2017 no longer permit an immediate deduction for research and development expenditures in the tax year that such costs are incurred. These costs are capitalized resulting in an increase in deferred tax assets of $1.2 million.
Deferred taxes are reflected in the consolidated balance sheet as follows:
 
    
January 31,
  
    
2023
     
2022
  
Deferred Tax Assets
      6,907        5,591  
Deferred Tax Liabilities
      (167 )       (186 ) 
    
 
 
     
 
 
  
Total Net Deferred Tax Assets
    $ 6,740      $ 5,405  
    
 
 
     
 
 
  
The valuation allowances of $2.1 million at January 31, 2023 and $1.8 million at January 31, 2022, relate to Rhode Island research and development tax credit carryforwards, foreign tax credit carryforwards, and China’s net operating losses that are expected to expire unutilized.
 
At January 31, 2023, we had net operating loss carryforwards of $0.1 million in China, which expire in 2024 through 2028. We have net operating loss carryforwards of less than $0.1 million in France, which can be carried forward indefinitely. We expect to utilize the net operating loss carryforwards in France before in future tax periods.
At January 31, 2023, we had state research credit carryforwards of approximately $1.9 million which expire in 2023 through 2030. Additionally, we had $0.2 million of foreign tax credits. We maintain a full valuation allowance against these credits as we expect these credits to expire unused.
We believe that it is reasonably possible that some unrecognized tax benefits, accrued interest and penalties could decrease income tax expense in the next year due to either the review of previously filed tax returns or the expiration of certain statutes of limitation. The changes in the balances of unrecognized tax benefits, excluding interest and penalties are as follows:
 
    
2023
     
2022
     
2021
  
(In thousands)                     
Balance, beginning of the year
    $ 303      $ 384      $ 362  
Increases in prior period tax positions
      24        63        59  
Increases in current period tax positions
      136        67        5  
Reductions related to lapse of statutes of limitations
      (49 )       (211 )       (42 ) 
    
 
 
     
 
 
     
 
 
  
Balance, end of the year
    $ 414      $ 303      $ 384  
    
 
 
     
 
 
     
 
 
  
During fiscal 2023 and 2022, we released $49,000 and $211,000, respectively, of uncertain tax positions including accrued interest and penalties relating to a change in various unrecognized tax positions. The Company has accrued potential interest and penalties of $77,000 included in income taxes payable in the accompanying consolidated balance sheet at the end of January 31, 2023.
The Company and its subsidiaries file income tax returns in U.S. federal jurisdictions, various state jurisdictions, and various foreign jurisdictions. In fiscal 2023, we released $27,000 related to a federal tax exposure for the fiscal 2019 tax year and $22,000 of state nexus positions as a result of the expiration of the statute of limitations.
U.S. income taxes have not been provided on $8.5 million of undistributed earnings of our foreign subsidiaries since it is our intention to permanently reinvest such earnings offshore. If the earnings were distributed in the form of dividends, the Company would not be subject to U.S. tax as a result of the Tax Act but could be subject to foreign income and withholding taxes. Determination of the amount of this unrecognized deferred income tax liability is not practical.
v3.23.1
Nature of Operations, Segment Reporting and Geographical Information
 12 Months Ended
Jan. 31, 2023
Segment Reporting [Abstract]  
Nature of Operations, Segment Reporting and Geographical Information
Note 18—Nature of Operations, Segment Reporting and Geographical Information
Our operations consist of the design, development, manufacture and sale of specialty printers and data acquisition and analysis systems, including both hardware and software and related consumable supplies. We organize and manage our business as a portfolio of products and services designed around a common theme of data acquisition and information output. We have two reporting segments consistent with our revenue product groups: Product Identification (“PI”) and Test & Measurement (“T&M”).
Our PI segment produces an array of high-technology digital color and monochrome label printers and mini presses, labeling software and supplies for a variety of commercial industries worldwide and includes our newly acquired Astro Machine. AstroNova’s T&M segment produces data acquisition systems used worldwide for a variety of recording, monitoring and troubleshooting applications for many industries including aerospace, automotive, defense, rail, energy, industrial and general manufacturing. The T&M segment also includes our line of aerospace flight deck and cabin printers.
 
Business is conducted in the United States and through foreign branch offices and subsidiaries in Canada, Europe, China, Southeast Asia and Mexico. Manufacturing activities are primarily conducted in the United States. Revenue and service activities outside the United States are conducted through wholly owned entities and, to a lesser extent, through authorized distributors and agents. Transfer prices are intended to produce gross profit margins as would be associated with an arms-length transaction.
The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies herein. We evaluate segment performance based on the segment profit before corporate and financial administration expenses.
Summarized below are the revenue and segment operating profit (loss) (both in dollars and as a percentage of revenue) for each reporting segment:
 
($ in thousands)
 
Revenue
 
 
Segment Operating Profit
(Loss)
 
 
Segment Operating Profit (Loss)
as a % of Revenue
 
 
 
2023
 
 
2022
 
 
2021
 
 
2023
 
 
2022
 
 
2021
 
 
2023
 
 
2022
 
 
2021
 
Product Identification
   $ 103,089     $ 90,915     $ 90,268     $ 7,889     $ 10,411     $ 12,885       7.7 %      11.5 %      14.3 % 
T&M
     39,438       26,565       25,765       8,989       3,398       (1,032 )      22.8 %      12.8 %      (4.0 )% 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 142,527     $ 117,480     $ 116,033       16,878       13,809       11,853       11.8 %      11.8 %      10.2 % 
   
 
 
    
 
 
    
 
 
                            
 
 
    
 
 
    
 
 
  
Corporate Expenses
                             11,435       9,553       9,420                          
                           
 
 
    
 
 
    
 
 
                          
Operating Income
                             5,443       4,256       2,433                          
Other Income (Expense), Net
                             (2,033 )      2,778       (254 )                         
                           
 
 
    
 
 
    
 
 
                          
Income Before Income Taxes
                             3,410       7,034       2,179                          
Income Tax Provision
                             749       605       895                          
                           
 
 
    
 
 
    
 
 
                          
Net Income
                           $ 2,661     $ 6,429     $ 1,284                          
                           
 
 
    
 
 
    
 
 
                          
No customer accounted for greater than 10% of net revenue in fiscal 2023, 2022 or 2021.
Other information by segment is presented below:
 
(In thousands)   
Assets
  
    
January 31,
  
    
2023
     
2022
  
Product Identification
    $ 69,607      $ 51,732  
T&M
      60,730        50,374  
Corporate*
      8,870        12,849  
    
 
 
     
 
 
  
Total
    $ 139,207      $ 114,955  
    
 
 
     
 
 
  
 
*
Corporate assets consist principally of cash, cash equivalents, deferred tax assets and refunds, and certain prepaid corporate assets.
 
(In thousands)   
Depreciation and
Amortization
     
Capital Expenditures
  
    
2023
     
2022
     
2021
     
2023
     
2022
     
2021
  
Product Identification
    $ 2,219      $ 1,157      $ 1,835      $ 121      $ 847      $ 1,563  
T&M
      1,697        2,837        4,148        108        949        1,024  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 3,916      $ 3,994      $ 5,983      $ 229      $ 1,796      $ 2,587  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  

Geographical Data
Presented below is selected financial information by geogr
ap
hic area:
 
                  
Long-Lived Assets*
  
(In thousands)   
Revenue
     
January 31,
  
    
2023
     
2022
     
2021
     
2023
     
2022
  
United States
    $ 91,917      $ 68,185      $ 70,911      $ 34,277      $ 29,131  
Europe
      31,021        31,922        29,029        1,230        1,486  
Canada
      8,393        6,519        5,574        4        9  
Asia
      5,345        5,926        5,105        9        15  
Central and South America
      4,589        3,271        3,950        —          —    
Other
      1,262        1,657        1,464        —          —    
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 142,527      $ 117,480      $ 116,033      $ 35,520      $ 30,641  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
*
Long-lived assets exclude goodwill assigned to the T&M segment of $4.5 million at both January 31, 2023 and 2022 and $10.1 million and $7.6 million assigned to the PI segment at January 31, 2023 and 2022, respectively. 
v3.23.1
Employee Benefit Plans
 12 Months Ended
Jan. 31, 2023
Postemployment Benefits [Abstract]  
Employee Benefit Plans
Note 19—Employee Benefit Plans
We sponsor a Profit-Sharing Plan (the “Plan”) which provides retirement benefits to all eligible domestic employees. The Plan allows participants to defer a portion of their cash compensation and contribute such deferral to the Plan through payroll deductions. The Company makes matching contributions up to specified levels. The deferrals are made within the limits prescribed by Section 401(k) of the Internal Revenue Code.
All contributions are deposited into trust funds. It is our policy to fund any contributions accrued. Our annual contribution amounts are determined by the Board of Directors. Contributions paid or accrued amounted to $0.5 million in fiscal 2023, $0.5 million in fiscal 2022 and $0.4 million in fiscal 2021.
v3.23.1
Product Warranty Liability
 12 Months Ended
Jan. 31, 2023
Guarantees and Product Warranties [Abstract]  
Product Warranty Liability
Note 20—Product Warranty Liability
We offer a manufacturer’s warranty for the majority of our hardware products. The specific terms and conditions of warranty vary depending upon the products sold and the country in which we do business. We estimate the warranty costs based on historical claims experience and record a liability in the amount of such estimates at the time product revenue is recognized. We regularly assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. Activity in the product warranty liability, which is included in other accrued expenses in the accompanying consolidated balance sheet, is as follows:
 
(
In thousands)
   
2023
     
2022
     
2021
  
Balance, beginning of the year
    $ 834      $ 730      $ 850  
Provision for Warranty Expense
      2,077        2,174        855  
Cost of Warranty Repairs
      (1,839 )       (2,070 )       (975 ) 
    
 
 
     
 
 
     
 
 
  
Balance, end of the year
    $ 1,072      $ 834      $ 730  
    
 
 
     
 
 
     
 
 
  

During fiscal 2022, we incurred incremental costs because of a product quality issue with one of our vendors. As the result of discussions with the vendor, which was responsible for the product quality issue, we entered into an agreement wh
ere
by the vendor paid us $975,000 as partial reimbursement of the costs we incurred in supporting our customers with respect to the product quality issue. For the period ended January 31, 2022, we recorded this payment to offset cost of goods in our PI segment for the product lines effected to partially reverse the accounting impact when the original costs of the quality issues were
incurred.
v3.23.1
Concentration of Risk
 12 Months Ended
Jan. 31, 2023
Risks and Uncertainties [Abstract]  
Concentration of Risk
 
Note 21—Concentration of Risk
Credit is generally extended on an uncollateralized basis to almost all customers after review of credit worthiness. Concentration of credit and geographic risk with respect to accounts receivable is limited due to the large number and general dispersion of accounts, which constitute our customer base. We periodically perform
on-going
credit evaluations of our customers. We have not historically experienced significant credit losses on collection of our accounts receivable.
During the years ended January 31, 2023, 2022 and 2021, one vendor accounted for 18.7%, 23.3% and 23.2% of purchases, respectively, and 16.2%, 15.4% and 28.3% of accounts payable, respectively, as of January 31, 2023, 2022 and 2021.
v3.23.1
Commitments and Contingencies
 12 Months Ended
Jan. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Note 22—Commitments and Contingencies
In order to meet our manufacturing demands and, in some cases, lock in particular pricing structures for specific goods used in manufacturing, we enter into purchase commitments with our suppliers. At January 31, 2023, our purchase commitments totaled $25.8 million, with $22.8 million due within 12 months, some of which are
non-cancelable.
We are also subject to contingencies, including legal proceedings and claims arising in the normal course of business that cover a wide range of matters including, among others, contract and employment claims; workers compensation claims; product liability; warranty and modification; and adjustment or replacement of component parts of units sold.
Direct costs associated with the estimated resolution of contingencies are accrued at the earliest date at which it is deemed probable that a liability has been incurred and the amount of such liability can be reasonably estimated. While it is impossible to ascertain the ultimate legal and financial liability with respect to contingent liabilities, including lawsuits, we believe that the aggregate amount of such liabilities, if any, in excess of amounts provided or covered by insurance, will not have a material adverse effect on the consolidated financial position or results of operations. It is possible, however, that future results of operations for any particular future period could be materially affected by changes in our assumptions or strategies related to these contingencies or changes out of our control.
v3.23.1
Fair Value Measurements
 12 Months Ended
Jan. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 23—Fair Value Measurements
Assets and Liabilities Not Recorded at Fair Value on the Cons
olid
ated Balance Sheet
Our long-term debt, including the current portion of long-term debt not reflected in the financial statements at fair value, is reflected in the table below:
 
    
Fair Value Measurement at
January 31, 2023
         
(In thousands)   
Level 1
     
Level 2
     
Level 3
     
Total
     
Carrying
Value
  
Long-Term Debt and Related Current Maturities
    $ —        $ —        $ 14,310      $ 14,310      $ 14,250  
     
    
Fair Value Measurement at
January 31, 2022
         
(In thousands)   
Level 1
     
Level 2
     
Level 3
     
Total
     
Carrying
Value
  
Long-Term Debt and Related Current Maturities
    $ —        $ —        $ 9,255      $ 9,255      $ 9,250  
The fair value of our long-term debt, including the current portion, is estimated by discounting the future cash flows using current interest rates at which similar borrowings with the same maturities would be made to borrowers with similar credit ratings and is classified as Level 3.
v3.23.1
Schedule II - Valuation and Qualifying Accounts and Reserves
 12 Months Ended
Jan. 31, 2023
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts and Reserves
SCHEDULE II—VA
LUA
TION AND Q
U
AL
IFY
ING ACCOUNTS AND RESERVES
 
Description
   
Balance at
Beginning
of Year
     
Provision/
(Benefit)
Charged to
Operations
     
Deductions(2)
    
Balance
at End
of Year
  
Allowance for Doubtful Accounts (1):
                                   
(In thousands)
                                   
Year Ended January 31,
                                   
2023
    $ 826      $ 100      $ (195 )    $ 731  
2022
    $ 1,054      $ 50      $ (278 )    $ 826  
2021
    $ 856      $ 194      $ 4     $ 1,054  
 
(1)
The allowance for doubtful accounts has been netted against accounts receivable in the balance sheets as of the respective balance sheet dates.
(2)
Uncollectible accounts written off, net of recoveries.
v3.23.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Jan. 31, 2023
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation:
The accompanying financial statements and accompanying notes have been prepared by us pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and are presented in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Our fiscal year end is January 31. Unless otherwise stated, all years and dates refer to our fiscal year.
Principles of Consolidation
Principles of Consolidation:
The consolidated financial statements include the accounts of AstroNova, Inc. and its subsidiaries. All material intercompany accounts and transactions are eliminated in consolidation.
Reclassification
Reclassification:
Certain amounts in prior year’s financial statements have been reclassified to conform to the current year’s presentation.
Use of Estimates
Use of Estimates:
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect these financial statements and accompanying notes using information that is reasonably available to us at this time. Some of the more significant estimates relate to revenue recognition; the allowances for doubtful accounts; inventory valuation; income taxes; valuation of long-lived assets, intangible assets and goodwill; share-based compensation; and warranty reserves. Management’s estimates are based on the facts and circumstances available at the time estimates are made, historical experience, risk of loss, general economic conditions and trends, and management’s assessments of the probable future outcome of these matters, including our expectations at the time
regarding
the ongoing impact from the
COVID-19
pandemic. Consequently, actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and Cash Equivalents:
Highly liquid investments with an original maturity of 90 days or less are considered to be cash equivalents. At
January
 31, 2023 and 2022, $3.2 million and $3.7 million, respectively, was held in foreign bank accounts.
Inventories
Inventories:
Inventories are stated at the lower of standard and average cost or net realizable value and include material, labor and manufacturing overhead.
Property, Plant and Equipment
Property, Plant and Equipment:
Property
, plant and equipment are stated at cost less accumulated depreciation. Depreciation is provided on the straight-line basis over the estimated useful lives of the assets (land improvements—10 to 20 years; buildings and leasehold improvements—10 to 45 years; machinery and equipment—3 to 10 years and
computer
equipment and software—3 to 10 years).
Revenue Recognition
Revenue Recognition:
We recognize revenue in accordance with Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers (“ASC 606”).” The core principle of ASC 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASC 606 defines a five-step process to recognize revenue and requires judgment and estimates within the revenue recognition process, including identifying contracts with customers, identifying performance obligations in the contract, determining and estimating the amount of any variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation and recognizing revenue when the entity satisfies each performance obligation.
The vast majority of our revenue is generated from the sale of distinct products. Revenue is measured as the amount of consideration we expect to receive in exchange for such products, which is generally at the contractually stated prices, and is recognized when we satisfy a performance obligation by transferring control of
a product to a customer. The transfer of control generally occurs at one point in time, upon shipment, when title and risk of loss pass to the customer. Returns and customer credits are infrequent and are recorded as a reduction to revenue. Sales taxes and value added taxes collected concurrently with revenue generating activities are excluded from revenue.
Many of the contracts entered into with customers are commonly comprised of a combination of equipment, supplies, installation and/or training services. We determine performance obligations by assessing whether the products or services are distinct from other elements of the contract. In order to be distinct, the product must perform either on its own or with readily available resources and must be separate within the context of the contract.
Most of our hardware products contain embedded operating systems and data management software which is included in the purchase price of the equipment. The software is deemed incidental to the systems as a whole, as it is not sold or marketed separately, and its production costs are minor compared to those of the hardware system. Hardware and software elements are typically delivered at the same time and are accounted for as a single performance obligation for which revenue is recognized at the point in time when ownership is transferred to the customer.
Installation and training services vary based on certain factors such as the complexity of the equipment, staffing availability in a geographic location and customer preferences, and can range from a few days to a few months. The delivery of installation and training services are not assessed to determine whether they are separate performance obligations, as the amounts are not material to the contract.
Shipping and handling activities that occur after control over a product has transferred to a customer are accounted for as fulfillment activities rather than performance obligations, as allowed under a practical expedient provided by ASC 606. The shipping and handling fees charged to customers are recognized as revenue and the related costs are included in cost of revenue at the point in time when ownership of the product is transferred to the customer.
We may perform services at the request of the customer, generally for the repair and maintenance of products previously sold. These services are short in duration and total approximately 5.0% and 4.4% of revenue for the years ended January 31, 2023 and 2022, respectively. Revenue is recognized as services are rendered and accepted by the customer. We also provide service agreements on certain of our Product Identification equipment. Service agreements are purchased separately from the equipment and provide for the right to obtain service and maintenance on the equipment for a period of typically one to two years. Accordingly, revenue on these agreements is recognized over the term of the agreements. The portion of service agreement contracts that are uncompleted at the end of any reporting period are included in deferred revenue.
We generally provide warranties for our products. The standard warranty period is typically 12 months for most hardware products except for airborne printers, which typically have warranties that extend for
3-5
years, consistent with industry practice. Such assurance-type warranties are not deemed to be separate performance obligations from the hardware product and costs associated with providing the warranties are accrued in accordance with ASC 450, “Contingencies,” as we have the ability to ascertain the likelihood of the liability and can reasonably estimate the amount of the liability. Our estimate of costs to service the warranty obligations is based on historical experience and expectations of future conditions. To the extent that our experience in warranty claims or costs associated with servicing those claims differ from the original estimates, revisions to the estimated warranty liability are recorded at that time, with an offsetting adjustment to cost of revenue. On occasion, customers request a warranty period longer than our standard warranty. In those instances, in which extended warranty services are separately quoted to the customer, an additional performance obligation is created, and the associated revenue is deferred and recognized as service revenue ratably over the term of the extended warranty period. The portion of service contracts and extended warranty services agreements that are uncompleted at the end of any reporting period are included in deferred revenue.
 
We recognize and subsequently amortize an asset for the incremental direct costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year (Refer to Note 3, “Revenue Recognition” included in our notes to the consolidated financial statement). We apply the practical expedient to expense costs incurred for costs to obtain a contract when the amortization period would have been less than a year. These costs include sales commissions paid to the internal direct sales team as well as to third-party representatives and distributors. Contractual agreements with each of these parties outline commission structures and rates to be paid. Generally speaking, the contracts are all individual procurement decisions by the customers and do not include renewal provisions and, as such, the majority of the contracts have an economic life of significantly less than a year.
Accounts Receivables and Allowance for Doubtful Accounts
Accounts Receivables and Allowance for Doubtful Accounts:
Standard payment terms are typically 30 days after shipment but vary by type and geographic location of our customer. Credit is extended based upon an evaluation of the customer’s financial condition. In circumstances where we are aware of a customer’s inability to meet its financial obligations, an allowance is established. The remainder of the allowance established is based on a variety of factors, including the age of amounts outstanding relative to their contractual due date, historical
write-off
experience and current market assessments. Accounts receivable are stated at their estimated net realizable value.
Business Combinations
Business Combinations:
We account for business acquisitions under the acquisition method of accounting in accordance with ASC 805, ‘‘Business Combinations,’’ where the total purchase price is allocated to the tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The purchase price is allocated using the information currently available, and may be adjusted, up to one year from acquisition date, after obtaining more information regarding, among other things, asset valuations, liabilities assumed and revisions to preliminary estimates. The purchase price in excess of the fair value of the tangible and identified intangible assets acquired less liabilities assumed is recognized as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenue, costs and cash flows, discount rates, and selection of comparable companies. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable. As a result, actual results may differ from these estimates. During the measurement period, we may record adjustments to acquired assets and assumed liabilities, with corresponding offsets to goodwill. Upon the conclusion of a measurement period, any subsequent adjustments are recorded to earnings.
At the acquisition date, the Company measures the fair values of all assets acquired and liabilities assumed that arise from contractual contingencies. The Company also measures the fair values of all
non-contractual
contingencies if, as of the acquisitions date, it is more likely than not that the contingencies will give rise to assets or liabilities.
Acquisition related costs not considered part of the considerations are expensed as incurred and recorded in Acquisition costs within the consolidated statement of operations.
Research and Development Costs
Research
and Development Costs:
We charge costs to expense in the period incurred, and these expenses are presented in the consolidated statement of income. The following costs are included in research and development expense: salaries and benefits, external engineering service costs, engineering related information costs and supplies.
Foreign Currency Translation
Foreign Currency Translation:
The financial statements of foreign subsidiaries and branches are measured using the local currency as the functional currency. Foreign currency-denominated assets and liabilities are translated into U.S. dollars at
year-end
exchange rates with the translation adjustment recorded as a component of accumulated comprehensive income (loss) in shareholders’ equity. Revenues and expenses are translated at the average monthly exchange rates in effect during the related period. We do not provide for U.S. income taxes on foreign currency translation adjustments associated with our subsidiaries in Germany, Denmark and China since
 
their undistributed earnings are considered to be permanently invested. Included in our consolidated statements of income was a net transaction foreign exchange loss of $0.5 million and $0.3 million in fiscal 2022 and 2023, respectively, and a net transaction foreign exchange gain of $0.6 million in fiscal 2021.
Advertising
Advertising:
We expense advertising costs as incurred. Advertising costs including advertising production, trade shows and other activities are designed to enhance demand for our products and amounted to approximately $1.6 million, $1.3 million, and $0.9 million in fiscal years 2023, 2022, and 2021, respectively.
Long-Lived Assets
Long-Lived Assets:
Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. If the projected undiscounted cash flows are less than the carrying value, then an impairment charge would be recorded for the excess of the carrying value over the fair value, as determined by the discounting of future cash flows. There were no impairment charges for our long-lived assets in fiscal years 2023, 2022, or 2021.
Intangible Assets
Intangible Assets:
Intangible assets include the value of customer and distributor relationships, trademarks and existing technology acquired in connection with business and asset acquisitions and are stated at cost (fair value at acquisition) less accumulated amortization. These intangible assets have a definite life and are amortized over the assets’ useful lives using a systematic and rational basis which is representative of the assets’ use. Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. If necessary, an impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the asset. The amount of the impairment loss recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. There were no impairment charges for our intangible assets in fiscal years 2023, 2022, or 2021.
Goodwill
Goodwill:
Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a purchase business combination. Management evaluates the recoverability of goodwill annually or more frequently if events or changes in circumstances, such as declines in revenue, earnings or cash flows, or material adverse changes in the business climate indicate that the carrying value of an asset might be impaired. Goodwill is tested for impairment at the reporting unit level. A reporting unit is an operating segment, or a business unit one level below an operating segment if discrete financial information for that business is prepared and regularly reviewed by segment management. However, components within an operating segment are aggregated as a single reporting unit if they have similar economic characteristics. We determined that each of our operating segments (Product Identification (“PI”) and Test & Measurement (“T&M”) represents a reporting unit for purposes of goodwill impairment testing.
The accounting guidance related to goodwill impairment testing allows for the performance of an optional qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Factors that management considers in this qualitative assessment include macroeconomic conditions, industry and market considerations, overall financial performance (both current and projected), changes in management and strategy and changes in the composition or carrying amount of net assets. If this qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then a quantitative assessment is required for the reporting unit. Additionally, we can elect to forgo the qualitative assessment and perform the quantitative test. The quantitative assessment compares the fair value of the reporting unit with its carrying value. If the quantitative assessment is performed, we estimate the fair value of our reporting units using a blended income and market approach. The income approach is based on a discounted cash flow model and provides a fair value estimate based upon the reporting unit’s expected long-term operating cash flow performance. The market approach compares the reporting unit to publicly traded companies and transactions involving similar business, and requires the use of many assumptions and estimates including future revenue, expenses, capital expenditures, and working capital, as well as discount factors and
 
income tax rates. If the fair value of the reporting unit exceeds the carrying value of the net assets including goodwill assigned to that unit, goodwill is not impaired. If the carrying value of the reporting unit’s net assets including goodwill exceeds the fair value of the reporting unit, then we record an impairment charge based on that difference. We performed a qualitative assessment for our fiscal 2023 analysis of goodwill. Based on this assessment, management does not believe that it is more likely than not that the carrying values of the reporting units exceed their fair values. Accordingly, no quantitative assessment was performed. There were no impairment charges for our goodwill in fiscal years 2023, 2022, or 2021.
Leases
Leases:
We account for our leases in accordance with ASC 842, “Leases” (“ASC 842”). ASC 842 requires a lessee to recognize assets and liabilities on the balance sheet for all leases, with the result being the recognition of a right of use (“ROU”) asset and a lease liability. The lease liability is equal to the present value of the minimum lease payments for the term of the lease, including any optional renewal periods determined to be reasonably certain to be exercised, using a discount rate determined at lease commencement. This discount rate is the rate implicit in the lease, if known; otherwise, the incremental borrowing rate for the expected lease term is used. Our incremental borrowing rate approximates the rate we would have to pay to borrow on a collateralized basis over a similar term at lease inception. The value of the ROU asset is equal to the initial measurement of the lease liability plus any lease payments made to the lessor at or before the commencement date and any unamortized initial direct costs incurred by the lessee, less any unamortized lease incentives received. Several of our lease contracts include options to extend the lease term and we include the renewal options for these leases in the determination of the ROU asset and lease liability when the likelihood of renewal is determined to be reasonably certain.
We enter into lease contracts for certain of our facilities at various locations worldwide. At inception of a contract, we determine whether the contract is or contains a lease. If we have a right to obtain substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the asset, then the contract contains a lease.
There are two types of leases, operating leases and finance leases. Lease classification is determined at lease commencement. We have made an accounting policy election to apply the short-term exception, which does not require the capitalization of leases with terms of 12 months or less. All of our leases are classified as operating leases. Operating lease expense is recognized on a straight-line basis over the lease term and included in general and administrative expense on the consolidated statement of income. ROU assets are classified as such on the consolidated balance sheet, short-term lease liabilities are classified in accrued expenses, and long-term lease liabilities are classified as such in the consolidated balance sheet. In the statement of cash flow, payments for operating leases are classified as operating activities.
In addition, several of our lease agreements include
non-lease
components for items such as common area maintenance and utilities which are accounted for separately from the lease component.
Income Taxes
Income Taxes:
We use the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting basis and tax basis of the assets and liabilities and are measured using statutory tax rates that will be in effect when the differences are expected to reverse. Our deferred taxes are presented as
non-current
in the accompanying consolidated balance sheet. An allowance against deferred tax assets is recognized when it is
more-likely-than-not
that some portion or all of the deferred tax assets will not be realized. At January 31, 2023, a valuation allowance was provided for deferred tax assets attributable to certain domestic R&D, foreign tax credit carryforwards and China net operating losses, all of which are expected to expire unused. At January 31, 2022, a valuation allowance was provided for deferred tax assets attributed to certain domestic R&D and foreign tax credit carryforwards.
We account for uncertain tax positions in accordance with the guidance provided in ASC 740, “Accounting for Income Taxes.” This guidance describes a recognition threshold and measurement attribute for the financial statement disclosure of tax positions taken or expected to be taken in a tax return and requires recognition of tax
 
benefits that satisfy a
more-likely-than-not
threshold. ASC 740 also provides guidance on
de-recognition,
classification, interest and penalties, accounting in interim periods and disclosure.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The legislation had sweeping effects including various types of economic relief for impacted businesses and industries. One such relief provision was the Paycheck Protection Program, which provided short-term cash flow assistance to finance employee payroll and qualified expenses. On May 6, 2020, we entered into a loan agreement with, and executed a promissory note in favor of Greenwood Credit Union (“Greenwood”) pursuant to which we borrowed
 $4.4
million (the “PPP Loan”). On December 27, 2020, the Consolidated Appropriations Act, 2021, H.R. 133 was signed into law. The legislation permits the deductibility of expenses to the extent that the payment of such expenses results (or is expected to result) in the forgiveness of a loan (covered loan) guaranteed under the Paycheck Protection Program. We have fully utilized the PPP Loan proceeds for qualifying expenses and applied for forgiveness
of the PPP Loan. Consistent with the legislation, we deducted the full
 $4.4 million of qualified expenses on our 2020 federal tax return. On June 15, 2021, Greenwood notified us that the United States Small Business Administration (the “SBA”) approved our application for forgiveness of the entire $4.4 million principal balance of our PPP Loan and all accrued interest thereon. As a result, in the second quarter of fiscal 2022, we recorded a
$4.5 million gain on extinguishment of debt. The PPP loan forgiveness is excluded from taxable income under Section 1106(i) of the CARES Act.
Net Income Per Common Share
Net Income Per Common Share:
Basic net income per share is based on the weighted average number of shares outstanding during the period. Diluted net income per share is based on the basic weighted average number of shares and potential common equivalent shares for stock options, restricted stock awards and restricted stock units outstanding during the period using the treasury stock method. In fiscal years 2023, 2022, and 2021, there were 685,667; 345,085; and 642,623, respectively, common equivalent shares that were not included in the computation of diluted net income per common share because their inclusion would be anti-dilutive.
Fair Value Measurement
Fair Value Measurement:
We measure our assets and liabilities at fair value on a recurring and
non-recurring
basis in accordance with the guidance provided in ASC 820, “Fair Value Measurement and Disclosures,” which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In addition, ASC 820 establishes a three-tiered hierarchy for inputs used in management’s determination of fair value of financial instruments that emphasizes the use of observable inputs over the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that reflect management’s belief about the assumptions market participants would use in pricing a financial instrument based on the best information available in the circumstances.
The fair value hierarchy is summarized as follows:
 
  •  
Level 1—Quoted prices in active markets for identical assets or liabilities;
 
  •  
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
 
  •  
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities
Cash and cash equivalents, accounts receivable, accounts payable, accrued compensation, other accrued expenses and income tax payable are reflected in the consolidated balance sheet at carrying value, which approximates fair value due to the short-term nature of these instruments.
Self-Insurance
 
Self-Insurance:
We are self-insured for U.S. medical and dental benefits for qualifying employees and maintain stop-loss coverage from a third party which limits our exposure to large claims. We record a liability associated with these benefits that includes an estimate of both claims filed and losses incurred but not yet reported based on historical claims experience. In estimating this accrual, we utilize an independent third-party broker to estimate a range of expected losses, which are based on analyses of historical data. Assumptions are closely monitored and adjusted when warranted by changing circumstances. Our liability for self-insured claims is included within accrued compensation in our consolidated balance sheets and was
$0.3 million and $0.2 million at January 31, 2023 and 2022, respectively.
Share-Based Compensation
Share-Based Compensation:
Compensation expense for time-based restricted stock units is measured at the grant date and recognized ratably over the vesting period. We determine the fair value of time-based and performance-based restricted stock units based on the closing market price of our common stock on the grant date. The recognition of compensation expense associated with performance-based restricted stock units requires judgment in assessing the probability of meeting the performance goals, as well as defined criteria for assessing achievement of the performance-related goals. For purposes of measuring compensation expense, the number of shares ultimately expected to vest is estimated at each reporting date based on management’s expectations regarding the relevant performance criteria. The performance shares begin vesting only upon the achievement of the performance criteria. The achievement of the performance goals can impact the valuation and associated expense of the restricted stock units. The assumptions used in accounting for the share-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if circumstances change and we use different assumptions, our stock-based compensation expense could be materially different in the future.
Share-based compensation becomes deductible for determining income taxes when the related award vests, is exercised, or is forfeited depending on the type of share-based award and subject to relevant tax law.
Derivative Financial Instruments
Derivative Financial Instruments:
We occasionally use derivative instruments as part of our overall strategy to manage exposure to market risks primarily associated with fluctuations in foreign currency exchange rates and interest rates. Derivative instruments are recognized as either assets or liabilities in the balance sheet at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, further, on the type of hedging relationship. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the statement of income during the current period. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation.
For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative instrument is reported as a component of other comprehensive income/(loss) and reclassified into earnings in the same line item associated with the forecasted transaction, and in the same period or periods during which the hedged transaction affects earnings (e.g., in “Interest Expense” when the hedged transactions are interest cash flows associated with floating-rate debt, or “Other, Net” for portions reclassified relating to the remeasurement of the debt). The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, are recognized in the statement of income during the current period.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
There were no new accounting pronouncements, issued or effective during fiscal 2023, that have had or are expected to have a material impact on our consolidated financial statements.
 
v3.23.1
Acquisitions (Tables)
 12 Months Ended
Jan. 31, 2023
Business Combinations [Abstract]  
Summary of Purchase Price of Acquisition Allocated on Basis of Fair Value
The following table sets forth the final purchase price allocation of the Astro Machine acquisition for the estimated fair value of the net asset acquired and liabilities assumed as of the date of acquisition:
 
(In thousands)
 
 
 
 
Cash
    $ 91  
Accounts Receivable
      3,393  
Inventory
      5,715  
Property, Plant and Equipment
      4,200  
Identifiable Intangible Assets
      3,480  
Goodwill
      2,730  
Accounts Payable and Other Current Liabilities
      (2,484 ) 
    
 
 
  
Total Purchase Price
    $ 17,125  
Summary of Fair Value of the Acquired Identifiable Intangible Assets and Related Estimated Useful Lives
The following table sets forth the fair value of the acquired identifiable intangible assets and related estimated useful lives:
 
(In thousands)   
Fair
Value
 
  
Useful Life
(
y
ears)
  
Customer Relations
    $ 3,060        5  
Trademarks/Tradenames
      420        5  
    
 
 
           
Total
    $ 3,480           
    
 
 
           
Summary of Revenue and Earnings Before Taxes
The amounts of revenue and earnings before taxes included in our consolidated statement of income from the period August 4, 2022 (acquisition date) through January 31, 2023 are as follows:
 
(In thousands)
   
2023
  
Revenue
    $ 12,515  
Earnings before Taxes
      1,571  
Summary of Acquired Identifiable Intangible Asset
The acquired identifiable intangible asset is as follows:
 
(In thousands)
  
Fair
Value
 
  
Useful Life
(Years)
 
Customer Contract Relationships
  
$
530
 
  
 
20
 
v3.23.1
Revenue Recognition (Tables)
 12 Months Ended
Jan. 31, 2023
Revenue from Contract with Customer [Abstract]  
Summary of Revenues Disaggregated by Primary Geographic Markets and Major Product Type
Primary geographical markets:

(In thousands)   
2023
     
2022
     
2021
  
United States
    $ 91,917      $ 68,185      $ 70,911  
Europe
      31,021        31,922        29,029  
Canada
      8,393        6,519        5,574  
Asia
      5,345        5,926        5,105  
Central and South America
      4,589        3,271        3,950  
Other
      1,262        1,657        1,464  
    
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 142,527      $ 117,480      $ 116,033  
    
 
 
     
 
 
     
 
 
  
 
Major product types:
 
(In thousands)   
2023
     
2022
     
2021
  
Hardware
    $ 42,445      $ 31,492      $ 34,111  
Supplies
      82,072        73,244        71,772  
Service and Other
      18,010        12,744        10,150  
    
 
 
     
 
 
     
 
 
  
Total Revenue
    $ 142,527      $ 117,480      $ 116,033  
    
 
 
     
 
 
     
 
 
  
v3.23.1
Intangible Assets (Tables)
 12 Months Ended
Jan. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Fair Value of Acquired Identifiable Intangible Assets and Related Estimated Useful Lives
Intangible assets are as follows:
 
 
 
January 31, 2023
 
 
January 31, 2022
 
(In thousands)
 
Gross
Carrying
Amount
 
 
Accumulated
Amortization
 
 
Currency
Translation
Adjustment
 
 
Net
Carrying
Amount
 
 
Gross
Carrying
Amount
 
 
Accumulated
Amortization
 
 
Currency
Translation
Adjustment
 
 
Net
Carrying
Amount
 
Miltope:
 
 
 
 
 
 
 
 
Customer Contract Relationships
 
$
 3,100
 
 
$
 (2,777
) 
 
$
—  
 
 
$
 323
 
 
$
 3,100
 
 
$
 (2,515
) 
 
$
—  
 
 
$
 585
 
RITEC:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer Contract Relationships
 
 
 2,830
 
 
 
 (1,623
) 
 
 
—  
 
 
 
 1,207
 
 
 
 2,830
 
 
 
 (1,557
) 
 
 
—  
 
 
 
 1,273
 
TrojanLabel:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Existing Technology
 
 
 2,327
 
 
 
 (2,087
) 
 
 
 94
 
 
 
 334
 
 
 
 2,327
 
 
 
 (1,767
) 
 
 
 127
 
 
 
 687
 
Distributor Relations
 
 
 937
 
 
 
 (588
) 
 
 
 27
 
 
 
 376
 
 
 
 937
 
 
 
 (498
) 
 
 
 46
 
 
 
 485
 
Honeywell:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer Contract Relationships
 
 
 27,773
 
 
 
 (11,913
) 
 
 
—  
 
 
 
 15,860
 
 
 
 27,243
 
 
 
 (11,073
) 
 
 
—  
 
 
 
 16,170
 
Astro Machine:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer Contract Relationships
 
 
 3,060
 
 
 
 (306
) 
 
 
—  
 
 
 
 2,754
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
Trademarks
 
 
 420
 
 
 
 (42
) 
 
 
—  
 
 
 
 378
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Intangible Assets, net
 
$
 40,447
 
 
$
 (19,336
) 
 
$
 121
 
 
$
 21,232
 
 
$
 36,437
 
 
$
 (17,410
) 
 
$
 173
 
 
$
 19,200
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Summary of Estimated Amortization Expense
Estimated amortization expense for the next
five
fiscal years is as follows:
 
(In thousands)   
2024
     
2025
     
2026
     
2027
     
2028
  
Estimated amortization expense
    $ 2,378      $ 1,719      $ 1,718      $ 1,7192      $ 1,281  
v3.23.1
Inventories (Tables)
 12 Months Ended
Jan. 31, 2023
Inventory Disclosure [Abstract]  
Components of Inventories
The components of invento
ries
are as follows:
 
    
January 31,
  
    
2023
     
2022
  
(In thousands)              
Materials and Supplies
    $ 38,387      $ 22,709  
Work-in-Progress
      1,146        1,489  
Finished Goods
      23,221        19,718  
    
 
 
     
 
 
  
       62,754        43,916  
Inventory Reserve
      (11,430 )       (9,307 ) 
    
 
 
     
 
 
  
     $ 51,324      $ 34,609  
    
 
 
     
 
 
  
v3.23.1
Property, Plant and Equipment (Tables)
 12 Months Ended
Jan. 31, 2023
Property, Plant and Equipment [Abstract]  
Summary of Property, Plant and Equipment
Property, plant and equipment consist of the following:
 
    
January 31,
  
    
2023
     
2022
  
(In thousands)              
Land and Land Improvements
    $ 2,304      $ 1,004  
Buildings and Leasehold Improvements
      14,158        12,666  
Machinery and Equipment
      24,960        23,238  
Computer Equipment and Software
      13,972        13,913  
    
 
 
     
 
 
  
Gross Property, Plant and Equipment
      55,394        50,821  
Accumulated Depreciation
      (41,106 )       (39,380 ) 
    
 
 
     
 
 
  
Net Property Plant and Equipment
    $ 14,288      $ 11,441  
    
 
 
     
 
 
  
v3.23.1
Accrued Expenses (Tables)
 12 Months Ended
Jan. 31, 2023
Payables and Accruals [Abstract]  
Summary of Accrued Expenses
Accrued expenses consist of the following:

 
  
January 31,
 
(In thousands)   
2023
     
2022
  
Warranty
    $ 1,072      $ 834  
Professional Fees
      311        411  
Freight
      —          347  
Lease Liability
      275        327  
Accrued Property & Sales Tax
      187        316  
Stockholder Relation Fees
      86        102  
Dealer Commissions
      78        139  
Other Accrued Expenses
      1,299        1,637  
    
 
 
     
 
 
  
     $ 3,308      $ 4,113  
    
 
 
     
 
 
  
v3.23.1
Credit Agreement and Long-Term Debt (Tables)
 12 Months Ended
Jan. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Long Term Debt in the Accompanying Condensed Consolidated Balance Sheets
Long-term debt in the accompanying condensed consolidated balance sheets under the Amended Credit Agreement is as follows:
 
    
January 31,
  
(In thousands)   
2023
     
2022
  
USD Term Loan (6.78% as of January 31, 2023); maturity date of August 4, 2027
    $ 14,250      $ —    
USD Term Loan (2.35% as of January 31, 2022); maturity date of September 30, 2025
      —        $ 9,250  
    
 
 
     
 
 
  
       14,250        9,250  
Debt Issuance Costs, net of accumulated amortization
      (110 )       (96 ) 
Current Portion of Term Loan
      (2,100 )       (1,000 ) 
    
 
 
     
 
 
  
Long-Term Debt
    $ 12,040      $ 8,154  
    
 
 
     
 
 
  
Schedule of Required Principal Payments Remaining on Long Term Debt Outstanding
The schedule of required principal payments remaining on our long-term debt outstanding as of January 31, 2023 is as follows:
 
(In thousands)       
Fiscal 2024
    $ 2,100  
Fiscal 2025
      2,700  
Fiscal 2026
      2,700  
Fiscal 2027
      2,700  
Fiscal 2028
      4,050  
    
 
 
  
     $ 14,250  
    
 
 
  
v3.23.1
Derivative Financial Instruments and Risk Management (Tables)
 12 Months Ended
Jan. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Impact of the Derivative Instruments in the Condensed Consolidated Financial Statements
The following tables present the impact of the derivative instruments in our consolidated financial statements for the years ended January 31, 2023 and 2022:
 
    
Years Ended
  
Cash Flow Hedge
(In thousands)
   
Amount of Gain(Loss)
Recognized in OCI
on
Derivative
     
Location of Gain (Loss)
Reclassified from
Accumulated OCI into
Income
     
Amount of Gain (Loss)
Reclassified from
Accumulated OCI into
Income
  
  
January 31,
2023
     
January 31,
2022
     
January 31,
2023
    
January 31,
2022
  
Swap contracts
    $ —        $ —          Other Income      $ (59 )    $ (79 ) 
    
 
 
     
 
 
              
 
 
    
 
 
  
v3.23.1
Leases (Tables)
 12 Months Ended
Jan. 31, 2023
Leases [Abstract]  
Schedule Of Balance Sheet And Other Information Related To Operating Leases
Balance sheet and other information related to our leases is as follows:
 
Operating Leases
(In thousands)
   
Balance Sheet Classification
   
January 31,
2023
     
January 31,
2022
  
Lease Assets
    Right of Use Assets    $ 794      $ 1,094  
Lease Liabilities—Current
    Other Accrued Expenses    $ 275      $ 327  
Lease Liabilities—Long Term
    Lease Liabilities    $ 555      $ 808  
Schedule Lease Cost Information
Lease cost information is as follows:
 
Operating Leases
(In thousands)
  
Statement of Income Classification
 
  
2023
 
  
2022
 
Operating Lease Costs
   
 
 General and Administrative Expense
 
    $ 460      $ 510  
Schedule of Maturities Of Lease Liabilities
At January 31, 2023, maturities of operating lease liabilities
are
as follows:
 
(In thousands)
       
2024
    $ 302  
2025
      199  
2026
      154  
2027
      149  
2028
      92  
Thereafter
      —    
    
 
 
  
Total Lease Payments
      896  
Less: Imputed Interest
      (66 ) 
    
 
 
  
Total Lease Liabilities
    $ 830  
    
 
 
  
Supplemental Cash Flow Information Related To Leases
Supplemental cash flow information related to leases is as follows:
 
(In thousands)
   
2023
     
2022
  
Cash paid for operating lease liabilities
    $ 314      $ 372  
v3.23.1
Accumulated Other Comprehensive Loss (Tables)
 12 Months Ended
Jan. 31, 2023
Equity [Abstract]  
Changes in Balance of Accumulated Other Comprehensive Loss
The changes in the balance of accumulated other comprehensive loss by component are as follows:
 
(In thousands)   
Foreign Currency
Translation
Adjustments
     
Net
Unrealized
Gain (Losses)
on Cash Flow
Hedges
     
Total
  
Balance at January 31, 2020
    $ (985 )     $ (108 )     $ (1,093 ) 
Other Comprehensive Income (Loss) before reclassification
      710        (239 )       471  
Amounts Reclassified from AOCI to Earnings
      —          193        193  
Cross-Currency Interest Rate Swap Termination
      —          45        45  
    
 
 
     
 
 
     
 
 
  
Other Comprehensive Income (Loss)
      710        (1 )       709  
    
 
 
     
 
 
     
 
 
  
Balance at January 31, 2021
    $ (275 )     $ (109 )     $ (384 ) 
Other Comprehensive Loss before reclassification
      (1,426 )       —          (1,426 ) 
Amounts Reclassified from AOCI to Earnings
      —          62        62  
    
 
 
     
 
 
     
 
 
  
Other Comprehensive Income (Loss)
      (1,426 )       62        (1,364 ) 
    
 
 
     
 
 
     
 
 
  
Balance at January 31, 2022
    $ (1,701 )     $ (47 )     $ (1,748 ) 
Other Comprehensive Income (Loss) before reclassification
      (537 )       —          (537 ) 
Amounts reclassified from AOCI to Earnings
      —          47        47  
    
 
 
     
 
 
     
 
 
  
Other Comprehensive Income (Loss)
      (537 )       47        (490 ) 
    
 
 
     
 
 
     
 
 
  
Balance at January 31, 2023
    $ (2,238 )     $ —        $ (2,238 ) 
    
 
 
     
 
 
     
 
 
  
v3.23.1
Share-Based Compensation (Tables)
 12 Months Ended
Jan. 31, 2023
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation Expense
Share-based compensation expense has been recognized as follows:
 
    
Years Ended January 31
  
    
2023
     
2022
     
2021
  
(In thousands)                     
Stock Options
    $ 7      $ 210      $ 517  
Restricted Stock Awards and Restricted Stock Units
      1,271        1,266        1,285  
Employee Stock Purchase Plan
      12        17        17  
    
 
 
     
 
 
     
 
 
  
Total
    $ 1,290      $ 1,493      $ 1,819  
    
 
 
     
 
 
     
 
 
  
Aggregated Information Regarding Stock Options Granted
Aggregated information regarding stock options granted under the plans is summarized below:
 
    
Number
of Shares
     
Weighted-
Average
Exercise
Price Per
Share
  
Options Outstanding, January 31, 2020
      679,044      $ 14.46  
Options Granted
      —          —    
Options Exercised
      (1,200 )       7.60  
Options Forfeited
      (54,361 )       12.89  
Options Cancelled
      (1,400 )       7.36  
    
 
 
     
 
 
  
Options Outstanding, January 31, 2021
      622,083      $ 14.63  
Options Granted
      —          —    
Options Exercised
      (6,425 )       9.34  
Options Forfeited
      (17,615 )       15.09  
Options Cancelled
      —          —    
    
 
 
     
 
 
  
Options Outstanding, January 31, 2022
      598,043      $ 14.67  
Options Granted
      —          —    
Options Exercised
      (42,944 )       8.74  
Options Forfeited
      (5,500 )       15.42  
Options Cancelled
      (2,400 )       8.09  
    
 
 
     
 
 
  
Options Outstanding, January 31, 2023
      547,199      $ 15.16  
    
 
 
     
 
 
  
Summary of Options Outstanding
Set forth below is a summary of options outstanding at January 31, 2023:
 
Outstanding
 
  
Exercisable
 
Range of
Exercise prices
  
Number of
Shares
 
  
Weighted-
Average
Exercise Price
 
  
Weighted-
Average
Remaining
Contractual Life
 
  
Number of
Shares
 
  
Weighted-
Average
Exercise Price
 
  
Weighted
Average
Remaining
Contractual
Life
 
$5.00-10.00
      —        $ —          —          —        $ —          —    
$10.01-15.00
      332,849        13.68        2.9        332,849        13.68        2.9  
$15.01-20.00
      214,350        17.45        4.8        214,350        17.45        4.8  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
       547,199      $ 15.16        3.7        547,199      $ 15.16        3.7  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Aggregated Information Regarding RSUs and RSAs Granted
Aggregated information regarding RSUs, PSUs and RSAs granted under the Plan is summarized below:
 
    
RSUs, PSUs &
RSAs
     
Weighted-Average
Grant Date Fair Value
  
Outstanding at January 31, 2020
      134,634      $ 16.79  
Granted
      245,131        7.61  
Vested
      (64,997 )       17.28  
Forfeited
      (117,355 )       8.83  
    
 
 
     
 
 
  
Outstanding at January 31, 2021
      197,413      $ 9.96  
Granted
      151,406        14.51  
Vested
      (126,939 )       10.43  
Forfeited
      (900 )       14.26  
    
 
 
     
 
 
  
Outstanding at January 31, 2022
      220,980      $ 13.23  
Granted
      141,371        12.70  
Vested
      (85,324 )       13.45  
Forfeited
      (2,100 )       13.25  
    
 
 
     
 
 
  
Outstanding at January 31, 2023
      274,927      $ 12.82  
    
 
 
     
 
 
  
v3.23.1
Income Taxes (Tables)
 12 Months Ended
Jan. 31, 2023
Income Tax Disclosure [Abstract]  
Components of Income before Income Taxes
The components of income (loss) before income taxes are as follows:
 
    
2023
     
2022
     
2021
  
(In thousands)                     
Domestic
    $ 1,773      $ 5,046      $ (1,193 ) 
Foreign
      1,637        1,988        3,372  
    
 
 
     
 
 
     
 
 
  
     $ 3,410      $ 7,034      $ 2,179  
    
 
 
     
 
 
     
 
 
  
Components of Provision for Income Taxes
The components of the provision for income taxes are as follows:
 
 
  
2023
 
  
2022
 
  
2021
 
(In thousands)
  
 
 
  
 
 
  
 
 
Current:
                           
Federal
    $ 902      $ (183 )     $ 1,272  
State
      313        76        224  
Foreign
      870        501        420  
    
 
 
     
 
 
     
 
 
  
       2,085        394        1,916  
    
 
 
     
 
 
     
 
 
  
Deferred:
                           
Federal
    $ (1,053 )     $ 180      $ (910 ) 
State
      (315 )       177        (189 ) 
Foreign
      32        (146 )       78  
    
 
 
     
 
 
     
 
 
  
       (1,336 )       211        (1,021 ) 
    
 
 
     
 
 
     
 
 
  
     $ 749      $ 605      $ 895  
    
 
 
     
 
 
     
 
 
  
Reconciliation of income tax provision/(benefit) With The Amount Computed By Applying The Statutory Federal Income Tax Rate To The Income Before Income Tax Provision/(benefit)
Total income tax provision differs from the expected tax provision as a result of the following:
 
    
2023
     
2022
     
2021
  
(In thousands)                     
Income Tax Provision at Statutory Rate
    $ 716      $ 1,477      $ 458  
Change in Valuation Allowance
      182        57        (81 ) 
Foreign Rate Differential
      157        61        197  
Change in Reserves Related to ASC 740 Liability
      93        (245 )       (10 ) 
Denmark Statutory Audit
      —          —          341  
Meals and Entertainment
      —          9        11  
Canada Withholding Taxes
      —          —          62  
Global Intangible Low Taxed Income
      —          —          14  
Foreign Derived Intangible Income
      (180 )       (55 )       (150 ) 
R&D Credits
      (160 )       (180 )       (157 ) 
Share Based Compensation
      (52 )       (95 )       171  
Return to Provision Adjustment
      (22 )       368        (2 ) 
State Taxes, Net of Federal Tax Effect
      (2 )       143        28  
PPP Loan Forgiveness
      —          (937 )       —    
Other
      17        2        13  
    
 
 
     
 
 
     
 
 
  
     $ 749      $ 605      $ 895  
    
 
 
     
 
 
     
 
 
  
Tax Effects of Temporary Differences that gave Rise to Significant Portions of Deferred Tax Assets and Liabilities The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities are as follows:
 
    
January 31,
  
(In thousands)

   
2023
     
2022
  
Deferred Tax Assets:
                  
Inventory
    $ 2,710      $ 2,159  
Honeywell Royalty Liability
      3,008        2,655  
State R&D Credits
      1,851        1,925  
Share-Based Compensation
      620        593  
Bad Debt
      180        213  
Warranty Reserve
      258        198  
Compensation Accrual
      248        322  
Net Operating Loss
      135        152  
ASU 842 Adjustment – Lease Liability
      53        93  
Unrecognized State Tax Benefits
      58        64  
Foreign Tax Credit
      154        154  
Deferred Service Contract Revenue
      90        61  
Section 174 Capitalization*
      1,175        —    
Other
      281        224  
    
 
 
     
 
 
  
     10,821      8,813  
Deferred Tax Liabilities:
                  
Accumulated Tax Depreciation in Excess of Book Depreciation
      1,037        455  
Intangibles
      694        767  
ASU 842 Adjustment – Lease Liability
      50        90  
Other
      180        318  
    
 
 
     
 
 
  
     1,961      1,630  
    
 
 
     
 
 
  
Subtotal
      8,860        7,183  
Valuation Allowance
      (2,120 )       (1,778 ) 
    
 
 
     
 
 
  
Net Deferred Tax Assets
    $ 6,740      $ 5,405  
    
 
 
     
 
 
  
 
*
Beginning in fiscal 2023, changes to Section 174 of the Internal Revenue Code made by the Tax Cuts and Jobs Act of 2017 no longer permit an immediate deduction for research and development expenditures in the tax year that such costs are incurred. These costs are capitalized resulting in an increase in deferred tax assets of $1.2 million.
Deferred taxes are reflected in the consolidated balance sheet as follows:
 
    
January 31,
  
    
2023
     
2022
  
Deferred Tax Assets
      6,907        5,591  
Deferred Tax Liabilities
      (167 )       (186 ) 
    
 
 
     
 
 
  
Total Net Deferred Tax Assets
    $ 6,740      $ 5,405  
    
 
 
     
 
 
  
Changes in Balance of Unrecognized Tax Benefits, Excluding Interest and Penalties
    
2023
     
2022
     
2021
  
(In thousands)                     
Balance, beginning of the year
    $ 303      $ 384      $ 362  
Increases in prior period tax positions
      24        63        59  
Increases in current period tax positions
      136        67        5  
Reductions related to lapse of statutes of limitations
      (49 )       (211 )       (42 ) 
    
 
 
     
 
 
     
 
 
  
Balance, end of the year
    $ 414      $ 303      $ 384  
    
 
 
     
 
 
     
 
 
  
v3.23.1
Nature of Operations, Segment Reporting and Geographical Information (Tables)
 12 Months Ended
Jan. 31, 2023
Segment Reporting [Abstract]  
Net Sales and Segment Operating Profit (loss) for Each Reporting Segment
Summarized below are the revenue and segment operating profit (loss) (both in dollars and as a percentage of revenue) for each reporting segment:
 
($ in thousands)
 
Revenue
 
 
Segment Operating Profit
(Loss)
 
 
Segment Operating Profit (Loss)
as a % of Revenue
 
 
 
2023
 
 
2022
 
 
2021
 
 
2023
 
 
2022
 
 
2021
 
 
2023
 
 
2022
 
 
2021
 
Product Identification
   $ 103,089     $ 90,915     $ 90,268     $ 7,889     $ 10,411     $ 12,885       7.7 %      11.5 %      14.3 % 
T&M
     39,438       26,565       25,765       8,989       3,398       (1,032 )      22.8 %      12.8 %      (4.0 )% 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   $ 142,527     $ 117,480     $ 116,033       16,878       13,809       11,853       11.8 %      11.8 %      10.2 % 
   
 
 
    
 
 
    
 
 
                            
 
 
    
 
 
    
 
 
  
Corporate Expenses
                             11,435       9,553       9,420                          
                           
 
 
    
 
 
    
 
 
                          
Operating Income
                             5,443       4,256       2,433                          
Other Income (Expense), Net
                             (2,033 )      2,778       (254 )                         
                           
 
 
    
 
 
    
 
 
                          
Income Before Income Taxes
                             3,410       7,034       2,179                          
Income Tax Provision
                             749       605       895                          
                           
 
 
    
 
 
    
 
 
                          
Net Income
                           $ 2,661     $ 6,429     $ 1,284                          
                           
 
 
    
 
 
    
 
 
                          
Summary of Other Information by Segment
Other information by segment is presented below:
 
(In thousands)   
Assets
  
    
January 31,
  
    
2023
     
2022
  
Product Identification
    $ 69,607      $ 51,732  
T&M
      60,730        50,374  
Corporate*
      8,870        12,849  
    
 
 
     
 
 
  
Total
    $ 139,207      $ 114,955  
    
 
 
     
 
 
  
 
*
Corporate assets consist principally of cash, cash equivalents, deferred tax assets and refunds, and certain prepaid corporate assets.
 
(In thousands)   
Depreciation and
Amortization
     
Capital Expenditures
  
    
2023
     
2022
     
2021
     
2023
     
2022
     
2021
  
Product Identification
    $ 2,219      $ 1,157      $ 1,835      $ 121      $ 847      $ 1,563  
T&M
      1,697        2,837        4,148        108        949        1,024  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 3,916      $ 3,994      $ 5,983      $ 229      $ 1,796      $ 2,587  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Summary of Selected Financial Information by Geographic Area
Presented below is selected financial information by geogr
ap
hic area:
 
                  
Long-Lived Assets*
  
(In thousands)   
Revenue
     
January 31,
  
    
2023
     
2022
     
2021
     
2023
     
2022
  
United States
    $ 91,917      $ 68,185      $ 70,911      $ 34,277      $ 29,131  
Europe
      31,021        31,922        29,029        1,230        1,486  
Canada
      8,393        6,519        5,574        4        9  
Asia
      5,345        5,926        5,105        9        15  
Central and South America
      4,589        3,271        3,950        —          —    
Other
      1,262        1,657        1,464        —          —    
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $ 142,527      $ 117,480      $ 116,033      $ 35,520      $ 30,641  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
*
Long-lived assets exclude goodwill assigned to the T&M segment of $4.5 million at both January 31, 2023 and 2022 and $10.1 million and $7.6 million assigned to the PI segment at January 31, 2023 and 2022, respectively. 
v3.23.1
Product Warranty Liability (Tables)
 12 Months Ended
Jan. 31, 2023
Guarantees and Product Warranties [Abstract]  
Activity in Product Warranty Liability Activity in the product warranty liability, which is included in other accrued expenses in the accompanying consolidated balance sheet, is as follows:
 
(
In thousands)
   
2023
     
2022
     
2021
  
Balance, beginning of the year
    $ 834      $ 730      $ 850  
Provision for Warranty Expense
      2,077        2,174        855  
Cost of Warranty Repairs
      (1,839 )       (2,070 )       (975 ) 
    
 
 
     
 
 
     
 
 
  
Balance, end of the year
    $ 1,072      $ 834      $ 730  
    
 
 
     
 
 
     
 
 
  
v3.23.1
Fair Value Measurements (Tables)
 12 Months Ended
Jan. 31, 2023
Fair Value Disclosures [Abstract]  
Summary of Changes in Fair value of Level 3 Financial Liability
Our long-term debt, including the current portion of long-term debt not reflected in the financial statements at fair value, is reflected in the table below:
 
    
Fair Value Measurement at
January 31, 2023
         
(In thousands)   
Level 1
     
Level 2
     
Level 3
     
Total
     
Carrying
Value
  
Long-Term Debt and Related Current Maturities
    $ —        $ —        $ 14,310      $ 14,310      $ 14,250  
     
    
Fair Value Measurement at
January 31, 2022
         
(In thousands)   
Level 1
     
Level 2
     
Level 3
     
Total
     
Carrying
Value
  
Long-Term Debt and Related Current Maturities
    $ —        $ —        $ 9,255      $ 9,255      $ 9,250  
v3.23.1
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jun. 15, 2021
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
May 06, 2020
Summary Of Significant Accounting Policies [Line Items]          
Highly liquid investments with an original maturity   90      
Cash of held in foreign bank accounts   $ 3,200 $ 3,700    
Net transactional foreign exchange gain (loss)   (474) (288) $ 590  
Advertising expense   1,600 1,300 900  
Impairment of Long lived assets held for use   0 0 0  
Impairment charges for intangible assets   $ 0 $ 0 $ 0  
Number of common equivalent shares   685,667 345,085 642,623  
Liability for self-insured claims   $ 300 $ 200    
Gain on Extinguishment of Debt – PPP Loan   0 4,466    
Foreign Exchange [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Net transactional foreign exchange gain (loss)   300 $ 500 $ 600  
Paycheck Protection Program Loan [Member] | Greenwood Credit Union [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Debt instrument face amount         $ 4,400
Gain on Extinguishment of Debt – PPP Loan   4,500      
Amount of PPP loan forgiven $ 4,400        
Promissory Note [Member] | Paycheck Protection Program Loan [Member] | Greenwood Credit Union [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Debt related commitment fees and debt issuance costs   $ 4,400      
Maximum [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Percentage of revenue satisfied for services   5.00% 4.40%    
Maximum [Member] | Airborne Product [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Products warranty period   5 years      
Minimum [Member] | Airborne Product [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Products warranty period   3 years      
Land Improvements [Member] | Maximum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   20 years      
Land Improvements [Member] | Minimum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   10 years      
Building And Leasehold Improvements [Member] | Maximum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   45 years      
Building And Leasehold Improvements [Member] | Minimum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   10 years      
Machinery and Equipment [Member] | Maximum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   10 years      
Machinery and Equipment [Member] | Minimum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   3 years      
Computer Equipment And Software [Member] | Maximum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   10 years      
Computer Equipment And Software [Member] | Minimum [Member]          
Summary Of Significant Accounting Policies [Line Items]          
Estimated useful lives of the assets   3 years      
v3.23.1
Acquisitions - Summary of Purchase Price of Acquisition Allocated on Basis of Fair Value (Detail)
$ in Thousands
Aug. 04, 2022
USD ($)
Business Acquisition [Line Items]  
Cash $ 91
Accounts Receivable 3,393
Inventory 5,715
Property, Plant and Equipment 4,200
Identifiable Intangible Assets 3,480
Goodwill 2,730
Accounts Payable and Other Current Liabilities (2,484)
Total Purchase Price $ 17,125
v3.23.1
Acquisitions - Summary of Fair Value of the Acquired Identifiable Intangible Assets and Related Estimated Useful Lives (Detail)
$ in Thousands
Aug. 04, 2022
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Fair Value $ 3,480
Customer Relationships [Member]  
Acquired Finite-Lived Intangible Assets [Line Items]  
Fair Value $ 3,060
Useful Life (Years) 5 years
Trademarks and Trade Names [Member]  
Acquired Finite-Lived Intangible Assets [Line Items]  
Fair Value $ 420
Useful Life (Years) 5 years
v3.23.1
Acquisitions - Summary of Revenue and Earnings Before Taxes (Detail) - Agreement With Astro Machine For Asset Acquisitions [Member]
$ in Thousands
 6 Months Ended
Jan. 31, 2023
USD ($)
Business Acquisition Pro Forma Information [Line Items]  
Revenue $ 12,515
Earnings before Taxes $ 1,571
v3.23.1
Acquisitions - Summary of Acquired Identifiable Intangible Asset (Detail) - Customer Contract Relationships [Member]
$ in Thousands
 12 Months Ended
Jan. 31, 2023
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Fair Value $ 530
Useful Life (Years) 20 years
v3.23.1
Acquisitions - Additional Information (Detail)
 12 Months Ended
Aug. 04, 2022
USD ($)
ft²
Jan. 31, 2023
USD ($)
Jan. 31, 2022
USD ($)
Business Acquisition [Line Items]      
Business Combination, Consideration Transferred   $ 17,034,000  
Area of Land | ft² 34,460    
Goodwill   14,658,000 $ 12,156,000
Royalty expense   100,000  
Royalty guarantee commitement due current and non current discounted value   500,000  
Royalty Payments Due In Next Twelve Months [Member]      
Business Acquisition [Line Items]      
Royalty guarantee commitement amount   100,000,000  
Royalty Payments Due Year Two [Member]      
Business Acquisition [Line Items]      
Royalty guarantee commitement amount   200,000,000  
Royalty Payments Due Year Three [Member]      
Business Acquisition [Line Items]      
Royalty guarantee commitement amount   233,000,000  
Royalty Payments Due Year Four [Member]      
Business Acquisition [Line Items]      
Royalty guarantee commitement amount   233,000,000  
Royalty Payments Due Year Five [Member]      
Business Acquisition [Line Items]      
Royalty guarantee commitement amount   234,000,000  
Non Current Liability [Member]      
Business Acquisition [Line Items]      
Royalty guarantees commitments amount non current   $ 100,000  
Measurement Input Royalty Rate [Member]      
Business Acquisition [Line Items]      
Fair Value Of Intangible Assets Measurement Input   0.0075  
Measurement Input Customer Attrition Rate [Member]      
Business Acquisition [Line Items]      
Fair Value Of Intangible Assets Measurement Input   0.18  
Measurement Input, Discount Rate [Member]      
Business Acquisition [Line Items]      
Fair Value Of Intangible Assets Measurement Input   0.19  
Agreement With Astro Machine For Asset Acquisitions [Member]      
Business Acquisition [Line Items]      
Purchase price of acquisition $ 15,600,000    
Business Combination, Consideration Transferred $ 17,100,000    
Payments to Acquire Businesses, Gross 100.00%    
Purchase price into an escrow account $ 300,000    
Payments to Acquire Additional Interest in Subsidiaries $ 1,500,000    
Number of Acres of land   1.26  
Goodwill   $ 2,730,000  
Agreement With Astro Machine For Asset Acquisitions [Member] | General and Administrative Expense [Member]      
Business Acquisition [Line Items]      
Business Combination, Acquisition Related Costs   $ 700,000  
v3.23.1
Revenue Recognition - Summary of Revenues Disaggregated by Primary Geographic Markets (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Disaggregation of Revenue [Line Items]      
Total Revenue $ 142,527 $ 117,480 $ 116,033
United States [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue 91,917 68,185 70,911
Europe [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue 31,021 31,922 29,029
Canada [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue 8,393 6,519 5,574
Asia [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue 5,345 5,926 5,105
Central and South America [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue 4,589 3,271 3,950
Other [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue $ 1,262 $ 1,657 $ 1,464
v3.23.1
Revenue Recognition - Summary of Revenues Disaggregated by Primary Product Type (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Disaggregation of Revenue [Line Items]      
Total Revenue $ 142,527 $ 117,480 $ 116,033
Hardware [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue 42,445 31,492 34,111
Supplies [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue 82,072 73,244 71,772
Service and Other [Member]      
Disaggregation of Revenue [Line Items]      
Total Revenue $ 18,010 $ 12,744 $ 10,150
v3.23.1
Revenue Recognition - Additional Information (Detail) - USD ($)
 3 Months Ended 12 Months Ended
Jul. 31, 2021
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Dec. 31, 2022
Contract liabilities and extended warranties   $ 412,000 $ 262,000    
Revenue recognized   248,000      
Contract assets balance   1,300,000 1,300,000    
Additional contract costs   100,000      
Amortization of incremental direct costs   75,000 $ 60,000 $ 27,000  
Deferred incremental direct contract costs reported in other current assets   $ 100,000      
Capitalized contract costs additional amounts incurred amortization period   19 years      
Capitalized contract cost net long term and short term   $ 1,400,000      
Capitalized contract costs additional amounts incurred amortization period   6 years      
Aerospace Customer [Member]          
Contract with customer liability         $ 3,250,000
Revenue recognized   $ 1,100,000      
Change in Accounting Method Accounted for as Change in Estimate [Member]          
Capitalized contract costs additional amounts incurred amortization period 20 years        
v3.23.1
Intangible Assets - Fair Value of Acquired Identifiable Intangible Assets and Related Estimated Useful Lives (Detail) - USD ($)
$ in Thousands
Jan. 31, 2023
Jan. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 40,447 $ 36,437
Accumulated Amortization (19,336) (17,410)
Currency Translation Adjustment 121 173
Net Carrying Amount 21,232 19,200
Customer Contract Relationships [Member] | Honeywell Asset Purchase and License Agreement [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 27,773 27,243
Accumulated Amortization (11,913) (11,073)
Net Carrying Amount 15,860 16,170
Customer Contract Relationships [Member] | Miltope [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 3,100 3,100
Accumulated Amortization (2,777) (2,515)
Net Carrying Amount 323 585
Customer Contract Relationships [Member] | RITEC [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 2,830 2,830
Accumulated Amortization (1,623) (1,557)
Net Carrying Amount 1,207 1,273
Customer Contract Relationships [Member] | Agreement With Astro Machine For Asset Acquisitions [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 3,060  
Accumulated Amortization (306)  
Net Carrying Amount 2,754  
Existing Technology [Member] | TrojanLabel ApS [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 2,327 2,327
Accumulated Amortization (2,087) (1,767)
Currency Translation Adjustment 94 127
Net Carrying Amount 334 687
Distributor Relations [Member] | TrojanLabel ApS [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 937 937
Accumulated Amortization (588) (498)
Currency Translation Adjustment 27 46
Net Carrying Amount 376 $ 485
Trademarks [Member] | Agreement With Astro Machine For Asset Acquisitions [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 420  
Accumulated Amortization (42)  
Net Carrying Amount $ 378  
v3.23.1
Intangible Assets - Additional Information (Detail) - USD ($)
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Intangible Assets [Line Items]      
Impairments of intangible assets $ 0 $ 0  
Amortization expense $ 1,900,000 $ 2,200,000 $ 4,100,000
Customer Contracts [Member] | RITEC [Member]      
Intangible Assets [Line Items]      
Finite lived intangible assets remaining useful Life 4 years    
Customer Contracts [Member] | Honeywell Asset Purchase and License Agreement [Member]      
Intangible Assets [Line Items]      
Finite lived intangible assets remaining useful Life 6 years    
Customer Contracts [Member] | Intangible Assets, Amortization Period [Member]      
Intangible Assets [Line Items]      
Decrease In amortization expense $ 1,800,000    
Increase in net income due to change of amortization method $ 1,800,000    
Customer Contracts [Member] | Intangible Assets, Amortization Period [Member] | RITEC [Member]      
Intangible Assets [Line Items]      
Finite lived intangible assets remaining useful Life 20 years    
Customer Contracts [Member] | Intangible Assets, Amortization Period [Member] | Honeywell Asset Purchase and License Agreement [Member]      
Intangible Assets [Line Items]      
Finite lived intangible assets remaining useful Life 20 years    
v3.23.1
Intangible Assets - Summary of Estimated Amortization Expense (Detail)
$ in Thousands
Jan. 31, 2023
USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]  
2024 $ 2,378
2025 1,719
2026 1,718
2027 17,192
2028 $ 1,281
v3.23.1
Inventories - Additional Information (Detail) - USD ($)
$ in Millions
Jan. 31, 2023
Jan. 31, 2022
Inventory Disclosure [Abstract]    
Inventory demonstration equipment $ 2.3 $ 3.4
v3.23.1
Inventories - Components of Inventories (Detail) - USD ($)
$ in Thousands
Jan. 31, 2023
Jan. 31, 2022
Inventory Disclosure [Abstract]    
Materials and Supplies $ 38,387 $ 22,709
Work-in-Progress 1,146 1,489
Finished Goods 23,221 19,718
Inventory, Gross 62,754 43,916
Inventory Reserve (11,430) (9,307)
Inventories $ 51,324 $ 34,609
v3.23.1
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($)
$ in Thousands
Jan. 31, 2023
Jan. 31, 2022
Land and Land Improvements $ 2,304 $ 1,004
Buildings and Leasehold Improvements 14,158 12,666
Machinery and Equipment 24,960 23,238
Computer Equipment and Software 13,972 13,913
Gross Property, Plant and Equipment 55,394 50,821
Accumulated Depreciation (41,106) (39,380)
Net Property Plant and Equipment $ 14,288 $ 11,441
v3.23.1
Property, Plant and Equipment - Additional Information (Detail) - USD ($)
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Depreciation expense on property, plant and equipment $ 2,000,000 $ 1,700,000 $ 1,900,000
Nonoperating Income (Expense) [Member]      
Capitalized Computer Software, Impairments   $ 696,000  
v3.23.1
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($)
$ in Thousands
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Payables and Accruals [Abstract]        
Warranty $ 1,072 $ 834 $ 730 $ 850
Professional Fees 311 411    
Freight 0 347    
Lease Liability 275 327    
Accrued Property & Sales Tax 187 316    
Stockholder Relation Fees 86 102    
Dealer Commissions 78 139    
Other Accrued Expenses 1,299 1,637    
Total $ 3,308 $ 4,113    
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Total Total    
v3.23.1
Credit Agreement and Long- Term Debt - Schedule of Long Term Debt in the Accompanying Condensed Consolidated Balance Sheets (Detail) - USD ($)
$ in Thousands
Jan. 31, 2023
Jan. 31, 2022
Debt Instrument [Line Items]    
USD Term Loan $ 14,250 $ 9,250
Debt Issuance Costs, net of accumulated amortization (110) (96)
Current Portion of Term Loan (2,100) (1,000)
Long-Term Debt 12,040 8,154
Term Loan Due September 30, 2025 [Member]    
Debt Instrument [Line Items]    
USD Term Loan 0 9,250
Term Loan Due August 4, 2027 [Member]    
Debt Instrument [Line Items]    
USD Term Loan $ 14,250 $ 0
v3.23.1
Credit Agreement and Long- Term Debt- Schedule of Required Principal Payments Remaining on Long Term Debt Outstanding (Detail) - Term Loan [Member]
$ in Thousands
Jan. 31, 2023
USD ($)
Debt Instrument [Line Items]  
Fiscal 2024 $ 2,100
Fiscal 2025 2,700
Fiscal 2026 2,700
Fiscal 2027 2,700
Fiscal 2028 4,050
Long-term Debt $ 14,250
v3.23.1
Credit Agreement and Long- Term Debt - Additional Information (Detail) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended 42 Months Ended
Aug. 04, 2022
Jul. 31, 2023
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Apr. 30, 2027
Debt Instrument [Line Items]            
Revolving loan outstanding     $ 15,900      
Interest Expense, Debt     $ 600 $ 300 $ 500  
Revolving Credit Facility [Member]            
Debt Instrument [Line Items]            
Variable interest rate     0.50      
LIBOR [Member] | Revolving Credit Facility [Member]            
Debt Instrument [Line Items]            
Interest rate     1.00%      
Federal Funds Effective Swap Rate [Member] | Revolving Credit Facility [Member]            
Debt Instrument [Line Items]            
Interest rate     0.50%      
Minimum [Member] | Revolving Credit Facility [Member]            
Debt Instrument [Line Items]            
Commitment fee rate     0.15%      
Percentage added to variable rate     0.60%      
Minimum [Member] | LIBOR [Member] | Revolving Credit Facility [Member]            
Debt Instrument [Line Items]            
Interest rate     1.60%      
Maximum [Member] | Revolving Credit Facility [Member]            
Debt Instrument [Line Items]            
Commitment fee rate     0.35%      
Percentage added to variable rate     1.50%      
Maximum [Member] | LIBOR [Member] | Revolving Credit Facility [Member]            
Debt Instrument [Line Items]            
Interest rate     2.50%      
Bank of America, N.A. [Member] | Term Loan [Member]            
Debt Instrument [Line Items]            
Debt Instrument, principal Periodic payment   $ 375,000       $ 675,000
Bank of America, N.A. [Member] | Term Loan [Member] | Additional Term Loan Availed [Member] | Second Amendment Credit Agreement [Member]            
Debt Instrument [Line Items]            
Principal amount of debt $ 6,000          
Bank of America, N.A. [Member] | Term Loan [Member] | Before Amendment To The Credit Agreement [Member]            
Debt Instrument [Line Items]            
Principal amount of debt     $ 9,000      
Bank of America, N.A. [Member] | Revolving Credit Facility [Member]            
Debt Instrument [Line Items]            
Line of Credit Facility, Remaining Borrowing Capacity     $ 9,100      
Long term debt weighted average interest rate over a period of time     6.71% 4.10%    
Bank of America, N.A. [Member] | Revolving Credit Facility [Member] | Second Amendment Credit Agreement [Member]            
Debt Instrument [Line Items]            
Maximum borrowing capacity     $ 25,000      
Proceeds from long term line of credit $ 12,400   6,000      
Bank of America, N.A. [Member] | Revolving Credit Facility [Member] | Before Amendment To The Credit Agreement [Member]            
Debt Instrument [Line Items]            
Maximum borrowing capacity       $ 22,500    
Bank of America, N.A. [Member] | Revolving Credit Facility [Member] | Other Expense [Member]            
Debt Instrument [Line Items]            
Interest Expense, Debt     752,000 4,000    
Line of Credit Facility, Commitment Fee Amount     $ 30,000 $ 50,000    
v3.23.1
Paycheck Protection Program Loan - Additional information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 15, 2021
Jul. 31, 2021
Jan. 31, 2023
Jan. 31, 2022
May 06, 2020
Extinguishment of Debt – PPP Loan     $ 0 $ 4,466  
Paycheck Protection Program Loan [Member] | Green wood Credit Union [Member]          
Debt instrument face amount         $ 4,400
Loan, payment terms     The PPP Loan, originally scheduled to mature on May 6, 2022, was unsecured and bore interest at a rate of 1.0% per annum, accruing from the loan date.    
Loan, maturity date     May 06, 2022    
Loan, interest rate     1.00%    
Amount of PPP loan forgiven $ 4,400        
Extinguishment of Debt – PPP Loan   $ 4,500      
v3.23.1
Derivative Financial Instruments and Risk Management - Additional Information (Detail) - USD ($)
 3 Months Ended
Jul. 30, 2020
Oct. 30, 2021
Cash Flow Hedging [Member]    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Cash paid termination of swaps   $ 700,000
Cross Currency Interest Rate Contract [Member]    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Interest Rate Swap Termination $ 200,000  
Cross Currency Interest Rate Contract [Member] | Cash Flow Hedging [Member]    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Amount of Gain Reclassified from Accumulated OCI into Income (Expense)   $ 58,000
v3.23.1
Derivative Financial Instruments and Risk Management - Schedule of Impact of the Derivative Instruments in the Condensed Consolidated Financial Statements (Detail) - Cash Flow Hedge [Member] - Cross Currency Interest Rate Contract [Member] - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Amount of Gain (Loss) Recognized in OCI on Derivative $ 0 $ 0
Location of Gain Reclassified from Accumulated OCI into Income (Expense) Other Income  
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income $ (59) $ (79)
v3.23.1
Employee Retention Credit - Additional Information (Detail) - USD ($)
$ in Thousands
 1 Months Ended 6 Months Ended 12 Months Ended
Mar. 22, 2022
Oct. 30, 2021
Jul. 31, 2021
Jun. 30, 2021
Jan. 31, 2023
Jan. 31, 2022
Employee Retention Credit Disclosure [Line Items]            
ERC receivables $ 3,100 $ 3,100     $ 0 $ 3,135
Cost of Sales [Member]            
Employee Retention Credit Disclosure [Line Items]            
Employee retention credit receivables   1,700        
Selling and Marketing Expense [Member]            
Employee Retention Credit Disclosure [Line Items]            
Employee Retention Credit Receivable - selling and marketing         800  
Research and Development Expense [Member]            
Employee Retention Credit Disclosure [Line Items]            
Employee Retention Credit Receivable - research and development   $ 300        
General and Administrative Expense [Member]            
Employee Retention Credit Disclosure [Line Items]            
Employee Retention Credit Receivable - general and administrative expenses         300  
Prepaid Expenses and Other Current Assets [Member]            
Employee Retention Credit Disclosure [Line Items]            
Employee retention credit         $ 3,100  
Cares Act [Member]            
Employee Retention Credit Disclosure [Line Items]            
Percentage of refundable tax credit can be claimed of qualified wages       (70.00%)    
Threshold qualified wages per employee per calendar quarter       $ 10,000    
Maximum threshold employee retention credit per employee per calendar quarter       $ 7,000    
Percentage of reduction of gross Receipts to qualify for employee retention credit     20.00%      
Cares Act [Member] | Prepaid Expenses and Other Current Assets [Member]            
Employee Retention Credit Disclosure [Line Items]            
Employee retention credit received $ 3,100          
v3.23.1
Royalty Obligation - Additional Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2018
Jan. 31, 2023
Jan. 31, 2022
Guaranteed Minimum Royalty Payments   $ 9,500  
Royalty Obligation, Current   1,725 $ 2,000
Royalty Obligation Non Current   3,415 4,361
Accrued Royalties, Current, Excess Royalty Payment Due   423 235
Honeywell Asset Purchase and License Agreement [Member]      
Payment Term Period 10 years    
Minimum Royalty Payment Obligation $ 15,000    
Royalty Obligation, Current   1,600  
Royalty Obligation Non Current   3,000  
Excess Royalty Payments   1,300 $ 500
Accrued Royalties, Current, Excess Royalty Payment Due   $ 400  
v3.23.1
Leases - Additional Information (Detail)
Jan. 31, 2023
Operating Lease, Weighted Average Remaining Lease Term 3 years 9 months 18 days
Operating Lease, Weighted Average Discount Rate, Percent 3.87%
v3.23.1
Leases - Schedule Of Balance Sheet And Other Information Related To Operating Leases (Detail) - USD ($)
$ in Thousands
Jan. 31, 2023
Jan. 31, 2022
Operating Leases [Abstract]    
Right of Use Assets $ 794 $ 1,094
Other Accrued Expenses 275 327
Lease Liabilities $ 555 $ 808
v3.23.1
Leases - Lease Cost Information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
General and Administrative Expense [Member]    
Operating Lease Costs $ 460 $ 510
v3.23.1
Leases - Maturities of lease liabilities (Detail)
$ in Thousands
Jan. 31, 2023
USD ($)
Leases [Abstract]  
2024 $ 302
2025 199
2026 154
2027 149
2028 92
Thereafter 0
Total Lease Payments 896
Less: Imputed Interest (66)
Total Lease Liabilities $ 830
v3.23.1
Leases - Supplemental cash flow information (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities [Abstract]    
Cash paid for operating lease liabilities $ 314 $ 372
v3.23.1
Accumulated Other Comprehensive Loss - Changes in Balance of Accumulated Other Comprehensive Loss (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Schedule of Capitalization, Equity [Line Items]      
Beginning Balance $ 81,012 $ 74,683 $ 71,375
Other Comprehensive Income (Loss) (490) (1,364) 709
Ending Balance 84,367 81,012 74,683
Foreign Currency Translation Adjustments [Member]      
Schedule of Capitalization, Equity [Line Items]      
Beginning Balance (1,701) (275) (985)
Other Comprehensive Income (Loss) before reclassification (537) (1,426) 710
Other Comprehensive Income (Loss) (537) (1,426) 710
Ending Balance (2,238) (1,701) (275)
Net Unrealized Gain/(Loss) on Cash Flow Hedges [Member]      
Schedule of Capitalization, Equity [Line Items]      
Beginning Balance (47) (109) (108)
Other Comprehensive Income (Loss) before reclassification     (239)
Amounts reclassified from AOCL to Earnings 47 62 193
Cross-Currency Interest Rate Swap Termination     45
Other Comprehensive Income (Loss) 47 62 (1)
Ending Balance   (47) (109)
Accumulated Other Comprehensive Income (Loss) [Member]      
Schedule of Capitalization, Equity [Line Items]      
Beginning Balance (1,748) (384) (1,093)
Other Comprehensive Income (Loss) before reclassification (537) (1,426) 471
Amounts reclassified from AOCL to Earnings 47 62 193
Cross-Currency Interest Rate Swap Termination     45
Other Comprehensive Income (Loss) (490) (1,364) 709
Ending Balance $ (2,238) $ (1,748) $ (384)
v3.23.1
Shareholders' Equity - Additional information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Class of Stock [Line Items]    
Company shares given to employees, shares 17,752 27,222
Company shares given to employees, value $ 0.3 $ 0.4
v3.23.1
Share-Based Compensation - Additional Information (Detail) - USD ($)
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares outstanding 547,199 598,043 622,083 679,044
Number of options granted 0 0 0  
Aggregate intrinsic value of options exercised $ 200,000 $ 26,000 $ 4,000  
Reservation of shares under Stock Purchase Plan 40,000      
Restricted Stock or Unit Expense $ 1,271,000 $ 1,266,000 $ 1,285,000  
Employee Stock Purchase Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Employee Stock Purchase Plan discount rate 15.00%      
2007 Equity Incentive Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares outstanding 276,574      
2018 Equity Incentive Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Shares authorized for grant under the Plan 950,000      
Number of shares outstanding 135,500      
2022 Employee Stock Purchase Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Shares purchase under Employee Stock Purchase Plan 5,045      
Shares available for grant under the Plan 34,955      
Prior Employee Stock Purchase Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Shares purchase under Employee Stock Purchase Plan 1,550 8,092    
Stock Options [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation expense related to options $ 0      
Aggregate intrinsic value of option exercised $ 50,000      
Restricted Stock Units (RSUs) [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation expense to be recognized, Weighted average period 1 year 3 months 18 days      
Unrecognized compensation expense related to RSUs and RSAs $ 2,000,000      
Restricted Stock Units (RSUs) [Member] | 2018 Equity Incentive Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of unvested shares 124,962      
RSA [Member] | 2015 Equity Incentive Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares outstanding 135,125      
RSA [Member] | 2018 Equity Incentive Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of unvested shares 21,172      
Performance Based RSUs [Member] | 2018 Equity Incentive Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of unvested shares 128,793      
Restricted Stock Award [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Restricted Stock or Unit Expense $ 65,000      
v3.23.1
Share-Based Compensation - Share-Based Compensation Expense (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Share-based Compensation [Abstract]      
Stock Options $ 7 $ 210 $ 517
Restricted Stock Awards and Restricted Stock Units 1,271 1,266 1,285
Employee Stock Purchase Plan 12 17 17
Total $ 1,290 $ 1,493 $ 1,819
v3.23.1
Share-Based Compensation - Aggregated Information Regarding Stock Options Granted (Detail) - $ / shares
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Share-based Compensation [Abstract]      
Beginning balance, Number of Options 598,043 622,083 679,044
Granted, Number of Options 0 0 0
Exercised, Number of Options (42,944) (6,425) (1,200)
Forfeited, Number of Options (5,500) (17,615) (54,361)
Canceled, Number of Options (2,400) 0 (1,400)
Ending balance, Number of Options 547,199 598,043 622,083
Beginning balance, Weighted-Average Exercise Price Per Share $ 14.67 $ 14.63 $ 14.46
Granted, Weighted-Average Exercise Price Per Share 0 0 0
Exercised, Weighted-Average Exercise Price Per Share 8.74 9.34 7.6
Forfeited, Weighted-Average Exercise Price Per Share 15.42 15.09 12.89
Cancelled, Weighted-Average Exercise Price Per Share 8.09 0 7.36
Ending balance, Weighted-Average Exercise Price Per Share $ 15.16 $ 14.67 $ 14.63
v3.23.1
Share-Based Compensation - Summary of Options Outstanding (Detail) - $ / shares
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of shares outstanding, total 547,199 598,043 622,083 679,044
Outstanding, Weighted Average Exercise Price $ 15.16      
Exercisable, Weighted Average Exercise Price $ 15.16      
Outstanding Remaining Contractual Life 3 years 8 months 12 days      
Number of shares exercisable, total 547,199      
Exercisable Remaining Contractual Life 3 years 8 months 12 days      
$5.00 - $10.00 [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Outstanding Range of Exercise prices, Lower Limit $ 5      
Outstanding Range of Exercise prices, Upper Limit $ 10      
Outstanding, Number of shares 0      
Outstanding, Weighted Average Exercise Price $ 0      
Exercisable, Weighted Average Exercise Price $ 0      
Exercisable, Number of shares 0      
$10.01 - $15.00 [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Outstanding Range of Exercise prices, Lower Limit $ 10.01      
Outstanding Range of Exercise prices, Upper Limit $ 15      
Outstanding, Number of shares 332,849      
Outstanding, Weighted Average Exercise Price $ 13.68      
Exercisable, Weighted Average Exercise Price $ 13.68      
Outstanding Remaining Contractual Life 2 years 10 months 24 days      
Exercisable, Number of shares 332,849      
Exercisable Remaining Contractual Life 2 years 10 months 24 days      
$15.01 - $20.00 [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Outstanding Range of Exercise prices, Lower Limit $ 15.01      
Outstanding Range of Exercise prices, Upper Limit $ 20      
Outstanding, Number of shares 214,350      
Outstanding, Weighted Average Exercise Price $ 17.45      
Exercisable, Weighted Average Exercise Price $ 17.45      
Outstanding Remaining Contractual Life 4 years 9 months 18 days      
Exercisable, Number of shares 214,350      
Exercisable Remaining Contractual Life 4 years 9 months 18 days      
v3.23.1
Share-Based Compensation - Aggregated Information Regarding RSUs and RSAs Granted (Detail) - Restricted Stock Award Preferred Stock Unit And Restricted Stock Unit [Member] - $ / shares
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Beginning balance, Outstanding Restricted Stock Units and Restricted Stock Awards 220,980 197,413 134,634
Granted, Restricted Stock Units and Restricted Stock Awards 141,371 151,406 245,131
Vested, Restricted Stock Units and Restricted Stock Awards (85,324) (126,939) (64,997)
Forfeited, Restricted Stock Units and Restricted Stock Awards (2,100) (900) (117,355)
Ending balance, Outstanding Restricted Stock Units and Restricted Stock Awards 274,927 220,980 197,413
Beginning balance, Weighted Average Grant Date Fair Value $ 13.23 $ 9.96 $ 16.79
Granted, Weighted Average Grant Date Fair Value 12.7 14.51 7.61
Vested, Weighted Average Grant Date Fair Value 13.45 10.43 17.28
Forfeited, Weighted Average Grant Date Fair Value 13.25 14.26 8.83
Ending balance, Weighted Average Grant Date Fair Value $ 12.82 $ 13.23 $ 9.96
v3.23.1
Income Taxes - Components of Income before Income Taxes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Income Tax Disclosure [Abstract]      
Domestic $ 1,773 $ 5,046 $ (1,193)
Foreign 1,637 1,988 3,372
Income before Income Taxes $ 3,410 $ 7,034 $ 2,179
v3.23.1
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Current:      
Federal $ 902 $ (183) $ 1,272
State 313 76 224
Foreign 870 501 420
Current Income Tax Expense 2,085 394 1,916
Deferred:      
Federal (1,053) 180 (910)
State (315) 177 (189)
Foreign 32 (146) 78
Deferred Income Tax Expense Total (1,336) 211 (1,021)
Total $ 749 $ 605 $ 895
v3.23.1
Income Taxes - Reconciliation of income tax provision/(benefit) With The Amount Computed By Applying The Statutory Federal Income Tax Rate To The Income Before Income Tax Provision/(benefit) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Income Tax Disclosure [Abstract]      
Income Tax Provision at Statutory Rate $ 716 $ 1,477 $ 458
Change in Valuation Allowance 182 57 (81)
Foreign Rate Differential 157 61 197
Change in Reserves Related to ASC 740 Liability 93 (245) (10)
Denmark Statutory Audit 0 0 341
Meals and Entertainment 0 9 11
Canada Withholding Taxes 0 0 62
Global Intangible Low Taxed Income 0 0 14
Foreign Derived Intangible Income (180) (55) (150)
R&D Credits (160) (180) (157)
Share Based Compensation (52) (95) 171
Return to Provision Adjustment (22) 368 (2)
State Taxes, Net of Federal Tax Effect (2) 143 28
PPP Loan Forgiveness 0 (937) 0
Other 17 2 13
Total $ 749 $ 605 $ 895
v3.23.1
Income Taxes - Tax Effects of Temporary Differences that gave Rise to Significant Portions of Deferred Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Jan. 31, 2023
Jan. 31, 2022
Deferred Tax Assets:    
Inventory $ 2,710 $ 2,159
Honeywell Royalty Liability 3,008 2,655
State R&D Credits 1,851 1,925
Share-Based Compensation 620 593
Bad Debt 180 213
Warranty Reserve 258 198
Compensation Accrual 248 322
Net Operating Loss 135 152
ASU 842 Adjustment – Lease Liability 53 93
Unrecognized State Tax Benefits 58 64
Foreign Tax Credit 154 154
Deferred Service Contract Revenue 90 61
Section 174 Capitalization [1] 1,175 0
Other 281 224
Deferred Tax Assets, Total 10,821 8,813
Deferred Tax Liabilities:    
Accumulated Tax Depreciation in Excess of Book Depreciation 1,037 455
Intangibles 694 767
ASU 842 Adjustment – Lease Liability 50 90
Other 180 318
Deferred Tax Liabilities, Total 1,961 1,630
Subtotal 8,860 7,183
Valuation Allowance (2,120) (1,778)
Net Deferred Tax Assets 6,740 5,405
Deferred taxes are reflected in the consolidated balance sheet as follows:    
Deferred Tax Assets 6,907 5,591
Deferred Tax Liabilities (167) (186)
Total Net Deferred Tax Assets $ 6,740 $ 5,405
[1] Beginning in fiscal 2023, changes to Section 174 of the Internal Revenue Code made by the Tax Cuts and Jobs Act of 2017 no longer permit an immediate deduction for research and development expenditures in the tax year that such costs are incurred. These costs are capitalized resulting in an increase in deferred tax assets of $1.2 million.
v3.23.1
Income Taxes - Tax Effects of Temporary Differences that gave Rise to Significant Portions of Deferred Tax Assets and Liabilities (Parenthetical) (Detail)
$ in Millions
 12 Months Ended
Jan. 31, 2023
USD ($)
Income Tax Disclosure [Abstract]  
Increase decrease in deferred tax assets $ 1.2
v3.23.1
Income Taxes - Change in Balance of Unrecognized Tax Benefits, Excluding Interest and Penalties (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Income Tax Disclosure [Abstract]      
Balance ,beginning of the year $ 303 $ 384 $ 362
Increases in prior period tax positions 24 63 59
Increases in current period tax positions 136 67 5
Reductions related to lapse of statutes of limitations (49) (211) (42)
Balance, end of the year $ 414 $ 303 $ 384
v3.23.1
Income Taxes - Additional Information (Detail) - USD ($)
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Jan. 31, 2020
Effective tax rate for income from continuing operation 22.00% 8.60% 41.10%  
Valuation allowance $ 2,120,000 $ 1,778,000    
Recognized (benefit) expense related to interest and penalties 49,000 211,000    
Accrued potential interest and penalties 77,000      
Deferred Tax Assets Operating loss carryforwards 135,000 152,000    
Deferred tax assets tax credit carryforwards research $ 1,851,000 1,925,000    
Deferred tax assets tax credit carryforwards expiration period 2023 through 2030      
Deemed repatriated earnings $ 8,500,000      
Recognized tax benefits excluding interest and penalties 414,000 303,000 $ 384,000 $ 362,000
Foreign tax credit 154,000 154,000    
Unrecognized tax benefits as a result of the expiration of the statute of limitations 49,000 $ 211,000 $ 42,000  
Additional Foreign Tax Credit [Member]        
Foreign tax credit 200,000      
Tax Credits Carry Forwards [Member]        
Deferred tax assets tax credit carryforwards research 1,900,000      
CHINA        
Deferred Tax Assets Operating loss carryforwards $ 100,000      
Deferred tax assets operating loss carryforwards expiration period 2024 through 2028      
DELAWARE        
Deferred Tax Assets Operating loss carryforwards $ 100,000      
Federal Tax [Member]        
Recognized tax benefits excluding interest and penalties 27,000      
Unrecognized tax benefits as a result of the expiration of the statute of limitations $ 22,000      
v3.23.1
Nature of Operations, Segment Reporting and Geographical Information - Additional Information (Detail)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
USD ($)
Segment
Jan. 31, 2022
USD ($)
Segment
Jan. 31, 2021
Segment
Segment Reporting Information [Line Items]      
Number of reporting segments | Segment 2    
Customer accounted for greater than 10% of net sales | Segment 10 10 10
Goodwill assigned $ 14,658 $ 12,156  
T&M [Member]      
Segment Reporting Information [Line Items]      
Goodwill assigned 4,500 4,500  
Product Identification [Member]      
Segment Reporting Information [Line Items]      
Goodwill assigned $ 10,100 $ 7,600  
v3.23.1
Nature of Operations, Segment Reporting and Geographical Information - Net Sales and Segment Operating Profit (loss) for Each Reporting Segment (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Segment Reporting Information [Line Items]      
Revenue $ 142,527 $ 117,480 $ 116,033
Corporate Expenses 11,435 9,553 9,420
Operating Income 5,443 4,256 2,433
Other Income (Expense), Net $ (2,033) $ 2,778 $ (254)
Segment Operating Profit % of Net Sales 11.80% 11.80% 10.20%
Income before Income Taxes $ 3,410 $ 7,034 $ 2,179
Income Tax Provision 749 605 895
Net Income 2,661 6,429 1,284
Operating Segments [Member]      
Segment Reporting Information [Line Items]      
Operating Income 16,878 13,809 11,853
Operating Segments [Member] | Product Identification [Member]      
Segment Reporting Information [Line Items]      
Revenue 103,089 90,915 90,268
Operating Income $ 7,889 $ 10,411 $ 12,885
Segment Operating Profit % of Net Sales 7.70% 11.50% 14.30%
Operating Segments [Member] | T&M [Member]      
Segment Reporting Information [Line Items]      
Revenue $ 39,438 $ 26,565 $ 25,765
Operating Income $ 8,989 $ 3,398 $ (1,032)
Segment Operating Profit % of Net Sales 22.80% 12.80% (4.00%)
Corporate Expenses [Member]      
Segment Reporting Information [Line Items]      
Corporate Expenses $ 11,435 $ 9,553 $ 9,420
v3.23.1
Nature of Operations, Segment Reporting and Geographical Information - Summary of Other Information by Segment (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Segment Reporting Information [Line Items]      
Assets $ 139,207 $ 114,955  
Depreciation and Amortization 3,916 3,994 $ 5,983
Capital Expenditures 229 1,796 2,587
Operating Segments [Member] | Product Identification [Member]      
Segment Reporting Information [Line Items]      
Assets 69,607 51,732  
Depreciation and Amortization 2,219 1,157 1,835
Capital Expenditures 121 847 1,563
Operating Segments [Member] | T&M [Member]      
Segment Reporting Information [Line Items]      
Assets 60,730 50,374  
Depreciation and Amortization 1,697 2,837 4,148
Capital Expenditures 108 949 $ 1,024
Corporate Expenses [Member]      
Segment Reporting Information [Line Items]      
Assets $ 8,870 $ 12,849  
v3.23.1
Nature of Operations, Segment Reporting and Geographical Information - Summary of Selected Financial Information by Geographic Area (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 142,527 $ 117,480 $ 116,033
Long-Lived Assets 35,520 30,641  
United States [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 91,917 68,185 70,911
Long-Lived Assets 34,277 29,131  
Europe [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 31,021 31,922 29,029
Long-Lived Assets 1,230 1,486  
Asia [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 5,345 5,926 5,105
Long-Lived Assets 9 15  
Canada [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 8,393 6,519 5,574
Long-Lived Assets 4 9  
Central and South America [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 4,589 3,271 3,950
Other [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 1,262 $ 1,657 $ 1,464
v3.23.1
Employee Benefit Plans - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Postemployment Benefits [Abstract]      
Contributions paid or accrued amounted $ 0.5 $ 0.5 $ 0.4
v3.23.1
Product Warranty Liability - Activity in Product Warranty Liability (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Product Warranties Disclosures [Abstract]      
Balance, beginning of the year $ 834 $ 730 $ 850
Provision for Warranty Expense 2,077 2,174 855
Cost of Warranty Repairs (1,839) (2,070) (975)
Balance, end of the year $ 1,072 $ 834 $ 730
v3.23.1
Product Warranty Liability - Additional Information (Detail)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
USD ($)
Product Warranties Disclosures [Abstract]  
Reimbursement received from vendor $ 975,000
v3.23.1
Concentration of Risk - Additional Information (Detail) - Vendor [Member] - Customer [Member]
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
Purchases [Member]      
Concentration Risk [Line Items]      
Concentration Risk, Percentage 18.70% 23.30% 23.20%
Trade Accounts Payables [Member]      
Concentration Risk [Line Items]      
Concentration Risk, Percentage 16.20% 15.40% 28.30%
v3.23.1
Commitments and Contingencies - Additional Information (Detail)
$ in Millions
Jan. 31, 2023
USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]  
Purchase obligation $ 25.8
Purchase obligation, to be paid, year one $ 22.8
v3.23.1
Fair Value Measurements - Schedule of Company's Long-Term Debt Including the Current Portion Not Reflected in Financial Statements at Fair Value (Detail) - USD ($)
$ in Thousands
Jan. 31, 2023
Jan. 31, 2022
Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-Term Debt and Related Current Maturities $ 14,310 $ 9,255
Fair Value [Member] | Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-Term Debt and Related Current Maturities 14,310 9,255
Carrying Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-Term Debt and Related Current Maturities $ 14,250 $ 9,250
v3.23.1
Schedule II - Valuation and Qualifying Accounts and Reserves (Detail) - Allowance for Doubtful Accounts [Member] - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2023
Jan. 31, 2022
Jan. 31, 2021
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Year $ 826 $ 1,054 $ 856
Provision/(Benefit) Charged to Operations 100 50 194
Deductions (195) (278) 4
Balance at End of Year $ 731 $ 826 $ 1,054