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Correction of immaterial errors
 6 Months Ended
Jul. 31, 2012
Correction of immaterial errors [Abstract]  
Correction of immaterial errors [Text Block]
Correction of immaterial errors. In the second quarter of 2012, management discovered prior period inventory errors. The cumulative adjustment for the inventory errors covering the period from February 1, 2006 to January 31, 2012, was approximately $236 thousand. The adjustment applicable to the fourth quarter of 2011 was approximately $28 thousand, no adjustment to the first three quarters of 2011 and the adjustment applicable to prior years (February 2006 - January 2011) totaled approximately $208 thousand.

Pursuant to the guidance of Staff Accounting Bulletin ("SAB") No. 99, Materiality, the Company concluded that the errors were not material to any of its prior period financial statements. Although the errors were immaterial to prior periods, the prior period financial statements were revised, in accordance with SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, due to the significance of the out-of-period correction.

A reconciliation of the effects of the adjustments to the previously reported balance sheet at January 31, 2012 follows:
 
As Reported
Adjustment
As Adjusted
Inventories, net

$39,968


$236


$40,204

Total current assets
82,434

236

82,670

Total assets
157,047

236

157,283

Retained earnings
22,802

236

23,038

Total stockholders' equity
72,119

236

72,355

Total liabilities and stockholders' equity
157,047

236

157,283

A reconciliation of the effects of the adjustments to the previously reported statement of operation for the year ending January 31, 2012 follows:
 
As Reported
Adjustment
As Adjusted
Cost of sales

$197,203


($28
)

$197,175

Gross profit
36,293

28

36,321

Loss from operations
(5,091
)
28

(5,063
)
Loss before income taxes
(4,970
)
28

(4,942
)
Net loss
(4,987
)
28

(4,959
)
A reconciliation of the effects of the adjustments to the previously reported statement of cash flows for the year ending January 31, 2012 follows:
 
As Reported
Adjustment
As Adjusted
Net loss

($4,987
)

$28


($4,959
)
Inventories
(4,593
)
(28
)
(4,621
)

A reconciliation of the effects of the adjustments to the previously reported statement of shareholders equity for the year ending January 31, 2012 follows:
 
As Reported
Adjustment
As Adjusted
Net loss

($4,987
)

$28


($4,959
)
Retained earnings
22,802

236

23,038

Total comprehensive loss
(6,760
)
28

(6,732
)