Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 29, 2016 | Mar. 31, 2016 | Aug. 31, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CalAmp Corp. | ||
Entity Central Index Key | 730,255 | ||
Entity Filer Category | Accelerated Filer | ||
Trading Symbol | CAMP | ||
Current Fiscal Year End Date | --02-29 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Feb. 29, 2016 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 586,651,000 | ||
Entity Common Stock, Shares Outstanding | 36,674,631 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 29, 2016 | Feb. 28, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 139,388 | $ 34,184 |
Short-term marketable securities | 88,718 | 10,177 |
Accounts receivable, less allowance for doubtful accounts of $622 and $673 at February 28, 2016 and 2015, respectively | 49,432 | 47,917 |
Inventories | 16,731 | 18,666 |
Prepaid expenses and other current assets | 4,498 | 5,110 |
Total current assets | 298,767 | 116,054 |
Property, equipment and improvements, net of accumulated depreciation and amortization | 11,225 | 10,525 |
Deferred income tax assets | 30,213 | 34,822 |
Goodwill | 16,508 | 15,483 |
Other intangible assets, net | 17,010 | 22,596 |
Other assets | 10,640 | 3,137 |
Total assets | 384,363 | 202,617 |
Current liabilities: | ||
Accounts payable | 24,938 | 24,012 |
Accrued payroll and employee benefits | 6,814 | 5,522 |
Deferred revenue | 9,438 | 10,748 |
Other current liabilities | 8,375 | 6,723 |
Total current liabilities | 49,565 | $ 47,005 |
1.625% convertible senior unsecured notes | 139,800 | |
Other non-current liabilities | 5,551 | $ 4,227 |
Total liabilities | $ 194,916 | $ 51,232 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value; 3,000 shares authorized; no shares issued or outstanding | ||
Common stock, $.01 par value; 80,000 shares authorized; 36,667 and 36,225 shares issued and outstanding at February 28, 2016 and 2015, respectively | $ 367 | $ 362 |
Additional paid-in capital | 229,159 | 207,881 |
Accumulated deficit | (39,853) | (56,793) |
Accumulated other comprehensive loss | (226) | (65) |
Total stockholders' equity | 189,447 | 151,385 |
Total Liabilities and Stockholders' Equity | $ 384,363 | $ 202,617 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Feb. 29, 2016 | Feb. 28, 2015 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Allowance for doubtful accounts (in dollars) | $ 622 | $ 673 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 3,000 | 3,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 80,000 | 80,000 |
Common stock, shares issued | 36,667 | 36,225 |
Common stock, shares outstanding | 36,667 | 36,225 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Revenues: | |||
Products | $ 237,981 | $ 209,895 | $ 195,549 |
Application subscriptions and other services | 42,738 | 40,711 | 40,354 |
Total revenues | 280,719 | 250,606 | 235,903 |
Cost of revenues: | |||
Products | 158,689 | 144,911 | 139,205 |
Application subscriptions and other services | 19,071 | 18,291 | 16,767 |
Total cost of revenues | 177,760 | 163,202 | 155,972 |
Gross profit | 102,959 | 87,404 | 79,931 |
Operating expenses: | |||
Research and development | 19,803 | 19,854 | 21,052 |
Selling | 23,380 | 20,442 | 19,837 |
General and administrative | 25,065 | 15,578 | 14,416 |
Intangible asset amortization | 6,626 | 6,590 | 6,283 |
Total operating expenses | 74,874 | 62,464 | 61,588 |
Operating income | 28,085 | 24,940 | 18,343 |
Non-operating income (expense): | |||
Investment income | 1,871 | 224 | 42 |
Interest expense | (7,595) | (296) | (407) |
Other expense | (20) | (68) | (67) |
Total non-operating income (expense) | (5,744) | (140) | (432) |
Income before income taxes and equity in net loss of affiliate | 22,341 | 24,800 | 17,911 |
Income tax provision | (4,572) | (8,292) | (6,108) |
Income before equity in net loss of affiliate | 17,769 | $ 16,508 | $ 11,803 |
Equity in net loss of affiliate | (829) | ||
Net income | $ 16,940 | $ 16,508 | $ 11,803 |
Earnings per share: | |||
Basic | $ 0.46 | $ 0.46 | $ 0.34 |
Diluted | $ 0.46 | $ 0.45 | $ 0.33 |
Shares used in computing earnings per share: | |||
Basic | 36,448 | 35,784 | 34,969 |
Diluted | 36,950 | 36,530 | 36,023 |
Comprehensive income: | |||
Net income | $ 16,940 | $ 16,508 | $ 11,803 |
Other comprehensive loss: | |||
Foreign currency cumulative translation adjustment | (161) | ||
Total comprehensive income | $ 16,779 | $ 16,508 | $ 11,803 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Balances at Feb. 28, 2013 | $ 117,549 | $ 350 | $ 202,368 | $ (85,104) | $ (65) |
Balances (in shares) at Feb. 28, 2013 | 35,041 | ||||
Net income | 11,803 | $ 11,803 | |||
Stock-based compensation expense | $ 2,924 | $ 2,924 | |||
Issuance of shares for restricted stock awards | $ 1 | (1) | |||
Issuance of shares for restricted stock awards (in shares) | 90 | ||||
Shares issued on net share settlement of equity awards | $ (3,057) | $ 2 | (3,059) | ||
Shares issued on net share settlement of equity awards (in shares) | 180 | ||||
Exercise of stock options | $ 3,928 | $ 6 | 3,922 | ||
Exercise of stock options (in shares) | 548 | ||||
Foreign currency cumulative translation adjustment | |||||
Balances (in shares) at Feb. 28, 2014 | 35,859 | ||||
Balances at Feb. 28, 2014 | $ 133,147 | $ 359 | $ 206,154 | $ (73,301) | $ (65) |
Net income | 16,508 | $ 16,508 | |||
Stock-based compensation expense | $ 4,100 | $ 4,100 | |||
Issuance of shares for restricted stock awards | $ 1 | (1) | |||
Issuance of shares for restricted stock awards (in shares) | 106 | ||||
Shares issued on net share settlement of equity awards | $ (3,088) | $ 1 | (3,089) | ||
Shares issued on net share settlement of equity awards (in shares) | 117 | ||||
Exercise of stock options | $ 718 | $ 1 | 717 | ||
Exercise of stock options (in shares) | 143 | ||||
Foreign currency cumulative translation adjustment | |||||
Balances (in shares) at Feb. 28, 2015 | 36,225 | ||||
Balances at Feb. 28, 2015 | $ 151,385 | $ 362 | $ 207,881 | $ (56,793) | $ (65) |
Net income | 16,940 | $ 16,940 | |||
Stock-based compensation expense | 5,854 | $ 5,854 | |||
Equity component of convertible senior notes, net of tax | 20,104 | 20,104 | |||
Purchase of note hedges, net of tax | (19,324) | (19,324) | |||
Sale of warrants | $ 15,991 | 15,991 | |||
Issuance of shares for restricted stock awards | $ 1 | (1) | |||
Issuance of shares for restricted stock awards (in shares) | 115 | ||||
Shares issued on net share settlement of equity awards | $ (2,625) | $ 1 | (2,626) | ||
Shares issued on net share settlement of equity awards (in shares) | 99 | ||||
Exercise of stock options | 1,283 | $ 3 | $ 1,280 | ||
Exercise of stock options (in shares) | 228 | ||||
Foreign currency cumulative translation adjustment | (161) | $ (161) | |||
Balances (in shares) at Feb. 29, 2016 | 36,667 | ||||
Balances at Feb. 29, 2016 | $ 189,447 | $ 367 | $ 229,159 | $ (39,853) | $ (226) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 16,940 | $ 16,508 | $ 11,803 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 3,582 | 2,796 | 1,822 |
Intangible assets amortization expense | 6,626 | 6,590 | 6,283 |
Stock-based compensation expense | 5,854 | $ 4,100 | $ 2,924 |
Amortization of convertible debt issue costs and discount | 5,201 | ||
Deferred tax assets, net | 4,122 | $ 7,927 | $ 5,935 |
Unrealized gain on investment in LoJack common stock | (1,416) | ||
Equity in net loss of affiliate | 829 | ||
Other | (66) | $ 247 | $ 339 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,515) | (11,058) | (11,401) |
Inventories | 1,935 | (3,704) | (1,301) |
Prepaid expenses and other assets | (280) | (2,076) | (594) |
Accounts payable | 926 | 3,504 | 7,522 |
Accrued liabilities | 5,972 | 1,314 | (1,449) |
Deferred revenue | (1,310) | 2,497 | 933 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 47,400 | 28,645 | $ 22,816 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from maturities of marketable securities | 71,991 | 15,145 | |
Purchases of marketable securities | (150,532) | (16,304) | $ (9,018) |
Capital expenditures | (4,317) | (7,437) | (2,133) |
Acquisitions net of cash acquired | (1,500) | $ (52,954) | |
Purchase of LoJack common stock | (4,050) | ||
Purchase of equity investment in affiliate | (2,156) | ||
Other | (110) | (55) | $ (71) |
NET CASH USED IN INVESTING ACTIVITIES | (90,674) | $ (8,651) | $ (64,176) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of convertible notes | 172,500 | ||
Payment of debt issuance costs | (5,291) | ||
Purchase of convertible note hedges | (31,343) | ||
Proceeds from issuance of warrants | $ 15,991 | ||
Net repayments of bank term loan | $ (1,800) | ||
Payment of acquisition-related note and contingent consideration | $ (2,037) | $ (2,673) | (1,579) |
Taxes paid related to net share settlement of vested equity awards | (2,625) | (3,088) | (3,057) |
Proceeds from exercise of stock options | 1,283 | 718 | 3,928 |
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES | 148,478 | (5,043) | (2,508) |
Net change in cash and cash equivalents | 105,204 | 14,951 | (43,868) |
Cash and cash equivalents at beginning of year | 34,184 | 19,233 | 63,101 |
Cash and cash equivalents at end of year | $ 139,388 | $ 34,184 | $ 19,233 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Feb. 29, 2016 | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business CalAmp Corp. (CalAmp or the Company) is a leading provider of wireless communications solutions for a broad array of applications to customers globally. The Company's business activities are organized into its Wireless DataCom and Satellite business segments. On March 18, 2016, we completed the acquisition of LoJack Corporation (LoJack). This strategic acquisition is consistent with our long-term growth strategy. CalAmp's leading portfolio of wireless connectivity devices, software, services and applications, combined with LoJack's world-renowned brand, proprietary stolen vehicle recovery product, unique law enforcement network and strong relationships with auto dealers, heavy equipment providers and global licensees, will create a market leader that is well-positioned to drive the broad adoption of connected car solutions and vehicle telematics technologies and applications worldwide. Principles of Consolidation The consolidated financial statements include the accounts of the Company (a Delaware corporation) and its subsidiaries, all of which are wholly-owned. All significant intercompany transactions and accounts have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Areas where significant judgments are made include, but are not necessarily limited to, allowance for doubtful accounts, inventory valuation, product warranties, deferred income tax asset valuation allowances, valuation of purchased intangible assets and other long-lived assets, stock-based compensation, and revenue recognition. Fiscal Year Effective at the end of fiscal 2015, the Company changed its fiscal year-end from a 52-53 week fiscal year ending on the Saturday that falls the closest to February 28 to a fiscal year ending on the last day of February. In these consolidated financial statements, the fiscal year end for all years is shown as February 28 for clarity of presentation. The actual period end dates are February 29, 2016, February 28, 2015 and March 1, 2014. Revenue Recognition The Company recognizes revenue from product sales when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection of the sales price is reasonably assured. Generally, for product sales that are not bundled with an application service these criteria are met at the time product is shipped, except for shipments made on the basis of FOB Destination terms, in which case title transfers to the customer and the revenue is recorded by the Company when the shipment reaches the customer. Customers generally do not have a right of return except for defective products returned during the warranty period. The Company records estimated commitments related to customer incentive programs as reductions of revenues. In addition to product sales, the Company provides Software as a Service (SaaS) subscriptions for its fleet management and vehicle finance applications in which customers are provided with the ability to wirelessly communicate with monitoring devices installed in vehicles and other mobile or remote assets via software applications hosted by the Company at independent data centers. The Company defers the recognition of revenue for the products that are sold with application subscriptions because the products are not functional without the application services. In such circumstances, the associated product costs are recorded as deferred costs in the balance sheet. The deferred product revenue and deferred product cost amounts are amortized to application subscriptions revenue and cost of revenue on a straight-line basis over minimum contractual subscription periods of one five Cash and Cash Equivalents The Company considers all highly liquid investments with remaining maturities at date of purchase of three months or less to be cash equivalents. Concentrations of Risk Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit, and are therefore considered by management to bear minimal credit risk. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents, marketable securities and trade receivables. EchoStar accounts for essentially all of the revenue of CalAmp's Satellite segment. EchoStar accounted for 14 15 21 EchoStar accounted for 10 12 15 Some of the Company's components, assemblies and electronic manufacturing services are purchased from sole source suppliers. In addition, a substantial portion of the Company's inventory is purchased from one supplier that functions as an independent foreign procurement agent and contract manufacturer. This supplier accounted for 56 59 65 57 16 15 Allowance for Doubtful Accounts The Company establishes an allowance for estimated bad debts based upon a review and evaluation of specific customer accounts identified as having known or expected collection problems based on historical experience or due to insolvency, disputes or other collection issues. Property, equipment and improvements Property, equipment and improvements are stated at the lower of cost or fair value determined through periodic impairment analyses. The Company follows the policy of capitalizing expenditures that increase asset lives, and expensing ordinary maintenance and repairs as incurred. Depreciation and amortization are based upon the estimated useful lives of the related assets, with such amounts computed using the straight-line method. Plant equipment and office equipment are depreciated over useful lives ranging from two five 18 The Company capitalizes certain costs incurred in connection with developing or obtaining internal-use software and software that are embedded in a product and sold as part of the product as a whole. These costs are included in Property, Equipment and Improvements in the consolidated balance sheets and are amortized over useful lives ranging from three seven Operating Leases Rent expense under operating leases is recognized on a straight-line basis over the lease term. The difference between recognized rent expense and the rent payment amount is recorded as an increase or decrease in deferred rent liability. The Company accounts for tenant allowances in lease agreements as a deferred rent credit, which is amortized on a straight-line basis over the lease term as a reduction of rent expense. Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible assets and identifiable intangible assets of businesses acquired. Goodwill is not amortized. Instead, goodwill is tested for impairment on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company performs its goodwill impairment test in the fourth quarter of each year. The Company did not recognize any impairment charges related to goodwill during fiscal years 2016, 2015 and 2014. The cost of definite-lived identified intangible assets is amortized over the assets' estimated useful lives ranging from two seven Accounting for Long-Lived Assets The Company reviews property and equipment and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amounts of an asset may not be recoverable. Recoverability is measured by comparison of the asset's carrying amount to the undiscounted future net cash flows an asset is expected to generate. If a long-lived asset or group of assets is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset or asset group exceeds the discounted future cash flows that are projected to be generated by the asset or asset group. Fair Value Measurements The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly manner in an arms-length transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Inputs that are generally unobservable and typically reflect management's estimate of assumptions that market participants would use in pricing the asset or liability. In accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other items at fair value. The Company has elected the fair value option for its investment in marketable securities on a contract-by-contract basis at the time each contract is initially recognized in the financial statements or upon an event that gives rise to a new basis of accounting for the items. Warranty The Company generally warrants its products against defects over periods ranging from 12 24 one two three Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and for income tax purposes. The Company evaluates the realizability of its deferred income tax assets and a valuation allowance is provided, as necessary. In assessing this valuation allowance, the Company reviews historical and future expected operating results and other factors, including its recent cumulative earnings experience, expectations of future taxable income by taxing jurisdiction and the carryforward periods available for tax reporting purposes, to determine whether it is more likely than not that deferred tax assets are realizable. Foreign Currency Translation and Accumulated Other Comprehensive Loss Account The Company's Canadian subsidiary changed its functional currency from the Canadian dollar to the U.S. dollar effective at the end of fiscal 2010. The cumulative foreign currency translation loss of $ 65,000 The Company's New Zealand branch uses the U.S. dollar as its functional currency. The Company's United Kingdom subsidiary uses the British pound, the local currency, as its functional currency. Its financial statements are translated into U.S. dollars using current or historical rates, as appropriate, with translation gains or losses included in the accumulated other comprehensive loss account in the stockholders' equity section of the consolidated balance sheet. Cumulative foreign currency loss as of February 28, 2016 amounted to $ 161,000 The aggregate foreign transaction exchange rate losses included in determining income before income taxes were $ 27,000 53,000 62,000 Stock-Based Compensation The Company measures stock-based compensation expense at the grant date, based on the fair value of the equity award, and recognizes the expense over the employee's requisite service (vesting) period using the straight-line method. The measurement of stock-based compensation expense is based on several criteria including, but not limited to, the type of equity award, the valuation model used and associated input factors, such as expected term of the award, stock price volatility, risk free interest rate and forfeiture rate. Certain of these inputs are subjective to some degree and are determined based in part on management's judgment. The Company recognizes the compensation expense on a straight-line basis for its graded-vesting awards. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. However, the cumulative compensation expense recognized in any period must at least equal the portion of the grant-date fair value associated with equity awards that are vested as of such period-end date. As used in this context, the term forfeitures is distinct from cancellations or expirations, and refers only to the unvested portion of the surrendered equity awards. Business Combinations The Company applies the provisions of ASC 805, Business Combinations, in the accounting for its acquisitions, which requires recognition of the assets acquired and the liabilities assumed at their acquisition date fair values, separately from goodwill. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period that exists up to 12 months from the acquisition date, the Company may record adjustments to the tangible and specifically identifiable intangible assets acquired and liabilities assumed with a corresponding adjustment to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired and liabilities assumed, whichever comes first, the impact of any subsequent adjustments is included in the consolidated statements of operations. Costs to exit or restructure certain activities of an acquired company or the Company's internal operations are accounted for as a one-time termination and exit cost pursuant to ASC 420, Exit or Disposal Cost Obligations, and are accounted for separately from the business combination. A liability for costs associated with an exit or disposal activity is recognized and measured at its fair value in the Company's consolidated statement of operations in the period in which the liability is incurred. Uncertain income tax positions and tax-related valuation allowances that are acquired in connection with a business combination are initially estimated as of the acquisition date. The Company reevaluates these items quarterly based upon facts and circumstances that existed as of the acquisition date, with any adjustments to the preliminary estimates being recorded to goodwill provided that such adjustments occur within the 12 month measurement period. Subsequent to the end of the measurement period or the Company's final determination of the value of the tax allowance or contingency, whichever comes first, changes to these uncertain tax positions and tax-related valuation allowances will affect the provision for income taxes in the consolidated statement of operations, and could have a material impact on results of operations and financial position. Recently Adopted Accounting Standards In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2015-03, InterestImputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). The FASB issued ASU 2015-03 to simplify the presentation of debt issuance costs related to a recognized debt liability to present the debt issuance costs as a direct deduction from the carrying value of the debt liability rather than showing the debt issuance costs as a deferred charge on the balance sheet. As permitted by ASU 2015-03, the Company early-adopted this standard with respect to the convertible senior unsecured notes issued in May 2015, as discussed further in Note 8. In November 2015, the FASB issued Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes (ASU 2015-17). ASU 2015-17 amends existing guidance to require that deferred income tax liabilities and assets be classified as noncurrent in a classified balance sheet, and eliminates the prior guidance which required an entity to separate deferred tax liabilities and assets into a current amount and a noncurrent amount in a classified balance sheet. As permitted by ASU 2015-17, the Company early-adopted this standard and applied it retrospectively to all periods presented. Recently Issued Accounting Standards In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial InstrumentsOverall: Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). This standard revises an entity's accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. ASU 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Early adoption is permitted. The Company is currently evaluating the impact of adoption of the new standard on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. This ASU must be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is continuing to evaluate the effect and methodology of adopting this new accounting guidance on its results of operations, cash flows and financial position. Reclassifications Certain amounts in the financial statements of prior years have been reclassified to conform to the fiscal 2016 presentation, with no effect on net earnings. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Feb. 29, 2016 | |
ACQUISITIONS [Abstract] | |
ACQUISITIONS | NOTE 2 ACQUISITIONS Crashboxx acquisition On April 17, 2015, the Company acquired certain intangible assets from a company doing business as Crashboxx to advance its insurance telematics strategy for a cash payment of $ 1.5 455,000 5 930,000 1,025,000 Radio Satellite Integrators acquisition On December 18, 2013, the Company completed the acquisition of all outstanding capital stock of Radio Satellite Integrators, Inc. (RSI) for a cash payment at closing of $ 6.5 2.1 two Following is the purchase price allocation for RSI (in thousands): Purchase price $ 8,563 Less cash acquired (382 ) Net purchase price 8,181 Fair value of net assets acquired: Current assets other than cash $ 941 Customer lists 3,150 Developed technology 1,970 Other non-current assets 10 Current liabilities (1,675 ) Deferred tax liabilities, net (1,768 ) Total fair value of net assets acquired 2,628 Goodwill $ 5,553 This goodwill is primarily attributable to the benefit of having an assembled workforce to address the Company's governmental markets and the value that the Company expected to derive from RSI's customer relationships beyond the current contractual terms of these service agreements. The goodwill arising from this acquisition is not deductible for income tax purposes. Wireless Matrix acquisition On March 4, 2013, the Company completed the acquisition of all outstanding capital stock of Wireless Matrix USA, Inc. (Wireless Matrix). Under the terms of the agreement, the Company acquired Wireless Matrix for a cash payment of $ 52.9 6.1 44.8 3.2 Following is the purchase price allocation for Wireless Matrix (in thousands): Purchase price $ 52,986 Less cash acquired (6,149 ) Net cash paid 46,837 Fair value of net assets acquired: Current assets other than cash $ 6,353 Deferred tax assets, net 9,437 Property and equipment 1,683 Customer lists 14,440 Developed technology 11,180 Other non-current assets 144 Current liabilities (5,218 ) Total fair value of net assets acquired 38,019 Goodwill $ 8,818 The Company paid a premium (i.e., goodwill) over the fair value of the net tangible and identified intangible assets acquired. A principal rationale for this acquisition is that the Company could leverage Wireless Matrix's mobile workforce management and asset tracking applications to build upon its current product offerings for its customers in the energy, government and transportation markets and expand its turnkey offerings to global enterprise customers in new vertical markets such as heavy equipment and insurance telematics, among others. The Company believes that this acquisition accelerated its development roadmap, thereby enabling it to offer higher margin turnkey solutions for new and existing customers, and further enhanced its relevance with mobile network operators and key channel partners in the global M 2 |
CASH, CASH EQUIVALENTS AND INVE
CASH, CASH EQUIVALENTS AND INVESTMENTS | 12 Months Ended |
Feb. 29, 2016 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS [Abstract] | |
CASH, CASH EQUIVALENTS AND INVESTMENTS | NOTE 3 CASH, CASH EQUIVALENTS AND INVESTMENTS The following table summarizes the Company's financial instrument assets using the hierarchy described in Note 1 under the heading Fair Value Measurements (in thousands): As of February 28, 2016 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Adjusted Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 6,890 $ - $ 6,890 $ 6,890 $ - $ - Level 1: LoJack common stock (1) 4,050 1,416 5,466 - - 5,466 Mutual funds (2) 3,753 (383 ) 3,370 - - 3,370 Level 2: Repurchase agreements 130,900 - 130,900 130,900 - - Corporate bonds 82,300 (16 ) 82,284 1,556 80,728 Commercial paper 8,032 - 8,032 42 7,990 - Total $ 235,925 $ 1,017 $ 236,942 $ 139,388 $ 88,718 $ 8,836 As of February 28, 2015 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Adjusted Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 11,384 $ - $ 11,384 $ 11,384 $ - $ - Level 1: Commercial paper 400 - 400 400 - - Mutual funds (2) 2,138 84 2,222 - - 2,222 Level 2: Repurchase agreements 22,400 - 22,400 22,400 - - Commercial paper 10,184 (7 ) 10,177 - 10,177 - Total $ 46,506 $ 77 $ 46,583 $ 34,184 $ 10,177 $ 2,222 (1) The Company purchased 850,100 100 1.4 (2) The Company has established a non-qualified deferred compensation plan for certain members of management and all non-employee directors. The Company is informally funding its obligations under the deferred compensation plan by purchasing shares in various equity, bond and money market mutual funds that are held in a Rabbi Trust and are restricted for payment of obligations to plan participants. See Note 7 for additional information regarding the deferred compensation plan. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Feb. 29, 2016 | |
INVENTORIES [Abstract] | |
INVENTORIES | NOTE 4 INVENTORIES Inventories consist of the following (in thousands): February 28, 2016 2015 Raw materials $ 14,145 $ 14,519 Work in process 180 361 Finished goods 2,406 3,786 $ 16,731 $ 18,666 |
PROPERTY, EQUIPMENT AND IMPROVE
PROPERTY, EQUIPMENT AND IMPROVEMENTS | 12 Months Ended |
Feb. 29, 2016 | |
PROPERTY, EQUIPMENT AND IMPROVEMENTS [Abstract] | |
PROPERTY, EQUIPMENT AND IMPROVEMENTS | NOTE 5 PROPERTY, EQUIPMENT AND IMPROVEMENTS Property, equipment and improvements consist of the following (in thousands): February 28, 2016 2015 Leasehold improvements $ 1,815 $ 1,833 Plant equipment and tooling 12,541 13,355 Office equipment, computers and furniture 6,468 5,753 Software 9,789 7,439 30,613 28,380 Less accumulated depreciation and amortization (21,852 ) (20,177 ) 8,761 8,203 Fixed assets not yet in service 2,464 2,322 $ 11,225 $ 10,525 Depreciation expense was $ 3,582,000 2,796,000 1,822,000 Fixed assets not yet in service consist primarily of capitalized internal-use software and certain tooling and other equipment that have not been placed into service. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Feb. 29, 2016 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 6 GOODWILL AND OTHER INTANGIBLE ASSETS All goodwill shown in the accompanying consolidated balance sheets is associated with the Company's Wireless DataCom segment. Changes in goodwill are as follows (in thousands): Year Ended February 28, 2016 2015 Balance at beginning of year $ 15,483 $ 15,422 Crashboxx acquisition 1,025 - Purchase price allocation adjustments - 61 Balance at end of year $ 16,508 $ 15,483 Other intangible assets are comprised as follows (in thousands): Gross Accumulated Amortization Net Amortization February 28, February 28, February 28, February 28, February 28, Period 2015 Additions Retirements 2016 2015 Expense Retirements 2016 2016 2015 Supply contract 5 $ 2,220 $ - $ - $ 2,220 $ 1,247 $ 432 $ - $ 1,679 $ 541 $ 973 Developed technology 2 7 16,151 930 (3,001 ) 14,080 7,126 2,302 (3,001 ) 6,427 7,653 9,025 Tradename 7 2,130 13 - 2,143 1,217 305 - 1,522 621 913 Customer lists 5 7 19,438 - (1,138 ) 18,300 7,949 3,547 (1,138 ) 10,358 7,942 11,489 Covenants not to compete 5 262 - (92 ) 170 187 33 (92 ) 128 42 75 Patents 5 176 97 - 273 55 7 - 62 211 121 $ 40,377 $ 1,040 $ (4,231 ) $ 37,186 $ 17,781 $ 6,626 $ (4,231 ) $ 20,176 $ 17,010 $ 22,596 Amortization expense of intangible assets was $ 6,626,000 6,590,000 6,283,000 Fiscal Year 2017 $ 6,689 2018 6,235 2019 2,890 2020 882 2021 174 Thereafter 140 $ 17,010 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Feb. 29, 2016 | |
OTHER ASSETS [Abstract] | |
OTHER ASSETS | NOTE 7 OTHER ASSETS Other assets consist of the following (in thousands): February 28, 2016 2015 Investment in LoJack common stock $ 5,466 $ - Deferred compensation plan assets 3,370 2,222 Equity investment in U.K. affiliate 1,167 - Other 637 915 $ 10,640 $ 3,137 In November and December 2015, prior to entering into a definitive agreement to acquire LoJack, CalAmp purchased 850,100 4.76 6.43 1.4 The Company established a non-qualified deferred compensation plan in August 2013 in which certain members of management and all non-employee directors are eligible to participate. Participants may defer a portion of their compensation until retirement or a date specified by the participant in accordance with the plan. The Company is informally funding the deferred compensation plan obligations by making cash deposits to a Rabbi Trust that are invested in various equity, bond and money market mutual funds in generally the same proportion as investment elections made by the participants for their compensation deferrals. The deferred compensation plan liability is included in Other Non-current Liabilities in the accompanying consolidated balance sheets. In September 2015, the Company invested £ 1,400,000 2,156,000 49 829,000 161,000 |
FINANCING ARRANGEMENTS AND CONT
FINANCING ARRANGEMENTS AND CONTRACTUAL CASH OBLIGATIONS | 12 Months Ended |
Feb. 29, 2016 | |
FINANCING ARRANGEMENTS AND CONTRACTUAL CASH OBLIGATIONS [Abstract] | |
FINANCING ARRANGEMENTS AND CONTRACTUAL CASH OBLIGATIONS | NOTE 8 - FINANCING ARRANGEMENTS AND CONTRACTUAL CASH OBLIGATIONS Bank Credit Facility The Company has a credit facility with Square 1 Bank that provides for borrowings up to $ 15 85 March 1, 2017 The bank credit facility contains financial covenants that require the Company to maintain a minimum level of earnings before interest, income taxes, depreciation, amortization and other noncash charges (EBITDA) and a minimum debt coverage ratio, both measured monthly on a rolling 12-month basis. At February 28, 2016, the Company was in compliance with its debt covenants under the credit facility. The credit facility also provides for a number of customary events of default, including a provision that a material adverse change constitutes an event of default that permits the lender, at its option, to accelerate the loan. Among other provisions, the credit facility requires a lock-box and cash collateral account whereby cash remittances from the Company's customers are directed to the cash collateral account and which amounts are applied to reduce, if applicable, the outstanding revolving loan principal. Borrowings, if any, under the bank credit facility are secured by substantially all of the assets of the Company and its domestic subsidiaries. 1.625% Convertible Senior Unsecured Notes In May 2015, the Company issued $ 172.5 1.625 The net proceeds from the sale of the Notes were approximately $ 167.2 5.3 15.4 Under the Indenture, the Notes bear interest at a rate of 1.625 May 15, 2020 The Indenture contains customary terms and conditions, including that upon certain events of default occurring and continuing, either the Trustee or the holders of at least 25% in aggregate principal amount of the then outstanding Notes, by notice to the Company and the Trustee, may declare 100% of the principal amount of, and accrued and unpaid interest, if any, on all the Notes then outstanding to be due and payable immediately. Such events of default include, without limitation, the default by the Company or any of its subsidiaries with respect to indebtedness for borrowed money in excess of $10 million and the entry of judgments for the payment of $10 million or more against the Company or any of its subsidiaries which are not paid, discharged or stayed within 60 days. The Notes will be convertible into cash, shares of the Company's common stock or a combination of cash and shares of common stock, at the Company's election, based on an initial conversion rate of 36.2398 27.594 If the Company undergoes a fundamental change (as defined in the Indenture), holders of the Notes may require the Company to repurchase their Notes at a repurchase price of 100 In addition, following certain corporate events that occur prior to maturity, the Company will increase the conversion rate for a holder who elects to convert its Notes in connection with such a corporate event in certain circumstances. In such event, an aggregate of up to 2.5 Accounting guidance requires that convertible debt that can be settled for cash, such as the Notes, be separated into the liability and equity component at issuance and each be assigned a value. The value assigned to the liability component is the estimated fair value, as of the issuance date, of a similar debt without the conversion feature. The difference between the principal amount of the Notes and the estimated fair value of the liability component, representing the value of the embedded conversion option assigned to the equity component, is recorded as a debt discount on the issuance date. The fair value of the liability component of the Notes in the amount of $ 138.9 6.2 3 33.6 33.6 16.0 33.6 6.2 In accounting for the transaction costs related to the Notes issuance, the Company allocated the total amount incurred to the liability and equity components based on their relative fair values. Issuance costs attributable to the liability component of $ 4.3 1.0 0.4 Balances attributable to the Notes consist of the following at February 28, 2016 (in thousands): Principal $ 172,500 Less: Unamortized debt discount (29,002 ) Unamortized debt issuance costs (3,698 ) Net carrying amount of the Notes $ 139,800 The Notes are carried at their principal amount, net of unamortized debt discount and issuance costs, and are not marked to market each period. The approximate fair value of the Notes as of February 28, 2016 was $ 164 million, which was estimated on the basis of inputs that are observable in the market and which is considered a Level 2 measurement method in the fair value hierarchy. See Note 13 for information related to interest expense on the Notes. Note Hedge and Warrant Arrangements In connection with the sale of the Notes, the Company entered into privately negotiated note hedge transactions relating to 6.25 172.5 31.3 19.3 The note hedges cover, subject to anti-dilution adjustments substantially similar to those applicable to the Notes, the 6.25 million shares of the Company's common stock that initially underlie the Notes. The note hedges are intended generally to reduce the potential dilution to the Company's outstanding common stock and/or reduce the amount of any cash payments the Company is required to make in excess of the principal amount of any converted Notes upon any conversion of Notes in the event that the market price per share of the Company's common stock is greater than the strike price of the note hedges, which is initially equal to $ 27.594 Separately, the Company also entered into privately negotiated warrant transactions with the Hedge Counterparties, giving them the right to acquire the same number of shares of common stock that underlie the Notes at a strike price of $ 39.42 100 19.71 16.0 The warrants will have a dilutive effect to the extent that the market price of the Company's common stock exceeds the applicable strike price of the warrants on any expiration date of the warrants. The note hedges and warrants are separate transactions, entered into by the Company with the Hedge Counterparties and are not part of the terms of the Notes and will not affect the holders' rights under the Notes. In addition, holders of the Notes will not have any rights with respect to the note hedges or the warrants. The values ascribed to the note hedges and warrants were initially recorded to and continue to be classified as additional paid-in capital within stockholders' equity. The Company is required, for the remaining term of the Notes, to assess whether the note hedges and warrants continue to meet the stockholders' equity classification requirements. If in any future period these derivative instruments fail to satisfy those requirements, they would need to be reclassified out of stockholders' equity, to either assets or liabilities depending on their nature, and be recorded at fair value with subsequent changes in their fair value reflected in earnings. The Company elected to integrate the call options with the Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $ 31.3 12.0 Contractual Cash Obligations Following is a summary of the Company's contractual cash obligations as of February 28, 2016 (in thousands): Future Estimated Cash Payments Due by Fiscal Year 2017 2018 2019 2020 2021 Total Convertible senior notes principal $ - $ - $ - $ - $ 172,500 $ 172,500 Convertible senior notes stated interest 2,803 2,803 2,803 2,803 1,402 12,614 Operating leases 2,237 1,867 1,498 819 129 6,550 Purchase obligations 39,768 - - - - 39,768 Other contractual commitments 3,470 - - - - 3,470 Total contractual obligations $ 48,278 $ 4,670 $ 4,301 $ 3,622 $ 174,031 $ 234,902 Purchase obligations consist primarily of inventory purchase commitments. Rent expense under operating leases was $ 2,179,000 2,146,000 1,886,000 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Feb. 29, 2016 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 9 INCOME TAXES The Company's income before income taxes and equity in net loss of affiliate consists of the following (in thousands): Year Ended February 28, 2016 2015 2014 Domestic $ 22,461 $ 24,684 $ 17,185 Foreign (120 ) 116 726 Total income before income taxes and equity in net loss of affiliate $ 22,341 $ 24,800 $ 17,911 The income tax provision consists of the following (in thousands): Year Ended February 28, 2016 2015 2014 Current: Federal $ (182 ) $ - $ - State (208 ) (325 ) (42 ) Foreign (60 ) (49 ) (45 ) Total current (450 ) (374 ) (87 ) Deferred: Federal (4,331 ) (8,134 ) (6,346 ) State 209 216 325 Total deferred (4,122 ) (7,918 ) (6,021 ) Total income tax provision $ (4,572 ) $ (8,292 ) $ (6,108 ) Differences between the income tax provision reported in the consolidated statements of comprehensive income and the income tax amount computed using the statutory U.S. federal income tax rate are as follows (in thousands): Year Ended February 28, 2016 2015 2014 Income tax provision at U.S. statutory federal rate of 35 $ (7,819 ) $ (8,680 ) $ (6,269 ) State income tax provision, net of federal income tax effect (833 ) (867 ) (770 ) Foreign taxes (102 ) 41 209 Valuation allowance reductions (increases) 2,541 250 (865 ) Research and development tax credits 1,008 1,556 1,126 Other, net 633 (592 ) 461 Total income tax provision $ (4,572 ) $ (8,292 ) $ (6,108 ) The components of net deferred income tax assets for U.S. income tax purposes are as follows (in thousands): February 28, 2016 2015 Net operating loss carryforwards $ 10,660 $ 20,318 Depreciation, amortization and impairments 1,598 1,785 Research and development credits 9,747 8,738 Stock-based compensation 2,383 1,869 Other tax credits 917 635 Inventory reserve 502 484 Warranty reserve 752 697 Payroll and employee benefit accruals 2,421 1,797 Allowance for doubtful accounts 241 258 Other accrued liabilities 2,694 2,158 Other, net (84 ) 242 Gross deferred tax assets 31,831 38,981 Valuation allowance (1,618 ) (4,159 ) Net deferred tax assets $ 30,213 $ 34,822 During fiscal 2016, the Company reduced the deferred tax assets valuation allowance by $ 2.5 At February 28, 2016, the Company had NOLs of approximately $ 53 65 2033 As of February 28, 2016, the Company had R&D tax credit carryforwards of $ 6.7 6.3 2036 As described further in Note 10, the Company has tax deductions on exercised stock options and vested restricted stock awards that exceed stock compensation expense amounts recognized for financial reporting purposes. These excess tax deductions, which amounted to $ 4.5 6.5 12.8 The Company follows FASB ASC Topic 740, Income Taxes, which clarifies the accounting for income taxes by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. Management determined based on its evaluation of the Company's income tax positions that it has one uncertain tax position relating to federal R&D tax credits of $ 1.0 Activity in the amount of unrecognized tax benefits for uncertain tax positions during the past three years is as follows (in thousands): Balance at February 28, 2013 $ 1,089 Decrease in fiscal 2014 (60 ) Balance at February 28, 2014 1,029 Change in fiscal 2015 - Balance at February 28, 2015 1,029 Change in fiscal 2016 - Balance at February 28, 2016 $ 1,029 The Company files income tax returns in the U.S. federal jurisdiction, various U.S. states, Canada, United Kingdom and New Zealand. Income tax returns filed for fiscal year 2011 2012 2016 2012 2016 The Company also has deferred tax assets for Canadian income tax purposes amounting to $ 3.1 100 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Feb. 29, 2016 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 10 STOCKHOLDERS' EQUITY Equity Awards Under the Company's 2004 Incentive Stock Plan (the 2004 Plan), which was adopted on July 30, 2004 and was amended effective July 30, 2009 and July 29, 2014, various types of equity awards can be made, including stock options, stock appreciation rights, restricted stock, performance stock units (PSUs), restricted stock units (RSUs), phantom stock and bonus stock. To date, stock options, restricted stock, PSUs, RSUs and bonus stock have been granted under the 2004 Plan. Options are generally granted with exercise prices equal to market value on the date of grant. All option grants expire 10 Equity awards to officers and other employees become exercisable on a vesting schedule established by the Compensation Committee of the Board of Directors at the time of grant, generally over a four Under the 2004 Plan, on the day of the annual stockholders meeting each non-employee director receives an equity award of up to 20,000 one 12 The following table summarizes stock option activity for fiscal years 2016, 2015 and 2014 (options in thousands): Weighted Number of Average Options Exercise Price Outstanding at February 28, 2013 1,656 $ 5.53 Granted 56 15.14 Exercised (611 ) 7.28 Forfeited or expired (8 ) 4.53 Outstanding at February 28, 2014 1,093 5.04 Granted 61 17.47 Exercised (143 ) 5.01 Forfeited or expired (4 ) 6.88 Outstanding at February 28, 2015 1,007 5.80 Granted 82 17.54 Exercised (228 ) 5.62 Forfeited or expired (1 ) 1.80 Outstanding at February 28, 2016 860 $ 6.96 Exercisable at February 28, 2016 688 $ 4.66 The weighted average fair value for stock options granted in fiscal years 2016, 2015 and 2014 was $ 9.39 11.02 9.43 Year Ended February 28, Black-Scholes Valuation Assumptions 2016 2015 2014 Expected life (years) (1) 6 6 6 Expected volatility (2) 56 % 70 % 69 % Risk-free interest rates (3) 1.8 % 1.9 % 1.7 % Expected dividend yield 0 % 0 % 0 % (1) The expected life of stock options is estimated based on historical experience. (2) The expected volatility is estimated based on historical volatility of the Company's stock price. (3) Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of the stock options. The weighted average remaining contractual term and the aggregate intrinsic value of outstanding options as of February 28, 2016 was 4.7 9.7 3.7 9.4 During fiscal 2014, upon the net share settlement exercise of 62,899 four 37,417 Changes in the Company's outstanding restricted stock shares, PSUs and RSUs during fiscal years 2016, 2015 and 2014 were as follows (shares, PSUs and RSUs in thousands): Number of Restricted Weighted Shares, Average Grant PSUs and Date Fair RSUs Value Outstanding at February 28, 2013 1,338 $ 4.40 Granted 312 15.58 Vested (592 ) 3.83 Forfeited (34 ) 7.88 Outstanding at February 28, 2014 1,024 8.02 Granted 365 17.92 Vested (471 ) 6.28 Forfeited (32 ) 11.69 Outstanding at February 28, 2015 886 12.90 Granted 517 17.75 Vested (407 ) 9.97 Forfeited (43 ) 15.55 Outstanding at February 28, 2016 953 $ 16.66 The Company retained 147,335 175,176 203,383 Stock-based compensation expense during fiscal years 2016, 2015 and 2014 is included in the following captions of the consolidated statements of comprehensive income (in thousands): Year Ended February 28, 2016 2015 2014 Cost of revenues $ 229 $ 241 $ 191 Research and development 781 613 516 Selling 1,208 591 360 General and administrative 3,636 2,655 1,857 $ 5,854 $ 4,100 $ 2,924 As of February 28, 2016, there was $ 13.4 2.7 As of February 28, 2016, there were 2,025,714 Tax Benefits from Exercise of Stock Options and Vesting of Restricted Stock and RSU Awards Total cash received as a result of option exercises was $ 1,283,000 718,000 3,928,000 9,078,000 9,900,000 17,532,000 4,531,000 6,515,000 12,781,000 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Feb. 29, 2016 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | NOTE 11 EARNINGS PER SHARE Earnings per share is computed using the two-class method. Year Ended February 28, 2016 2015 2014 Net income $ 16,940 $ 16,508 $ 11,803 Basic weighted average number of common shares outstanding 36,448 35,784 34,969 Effect of stock options and restricted stock units computed on treasury stock method 502 746 1,054 Diluted weighted average number of common shares outstanding 36,950 36,530 36,023 Earnings per share: Basic $ 0.46 $ 0.46 $ 0.34 Diluted $ 0.46 $ 0.45 $ 0.33 Shares subject to anti-dilutive stock options and restricted stock-based awards of 199,000 159,000 57,000 The Company has the option to pay cash, issue shares of common stock or any combination thereof for the aggregate amount due upon conversion of the Notes. The Company's intent is to settle the principal amount of the Notes in cash upon conversion. As a result, only the shares issuable for the conversion value, if any, in excess of the principal amounts of the Notes would be included in diluted earnings per share. During fiscal 2016 from the time of the issuance of Notes, the average market price of the Company's common stock was less than the $ 27.594 |
EMPLOYEE RETIREMENT PLANS
EMPLOYEE RETIREMENT PLANS | 12 Months Ended |
Feb. 29, 2016 | |
EMPLOYEE RETIREMENT PLANS [Abstract] | |
EMPLOYEE RETIREMENT PLANS | NOTE 12 EMPLOYEE RETIREMENT PLANS The Company maintains a 401(k) employee savings plan in the U.S. and a similar retirement savings plan in New Zealand in which all employees of these respective countries are eligible to participate. The Company may make matching contributions to the savings plans as authorized by the Board of Directors. The matching contribution in the U.S. savings plan is currently equal to a 100 3 50 2 3 1,169,000 1,059,000 733,000 |
OTHER FINANCIAL INFORMATION
OTHER FINANCIAL INFORMATION | 12 Months Ended |
Feb. 29, 2016 | |
OTHER FINANCIAL INFORMATION [Abstract] | |
OTHER FINANCIAL INFORMATION | NOTE 13 OTHER FINANCIAL INFORMATION Supplemental Balance Sheet Information Other non-current liabilities consist of the following (in thousands): February 28, 2016 2015 Deferred compensation plan liability $ 3,392 $ 2,246 Deferred revenue 1,070 1,652 Deferred rent 559 329 Acquisition-related contingent consideration 530 - $ 5,551 $ 4,227 See Note 7 for information related to non-qualified deferred compensation plan. The acquisition-related contingent consideration at February 28, 2016 is comprised of the estimated earn-out of $ 530,000 Supplemental Income Statement Information Investment income consists of the following (in thousands): Year Ended February 28, 2016 2015 2014 Investment income on cash equivalents and marketable securities $ 814 $ 58 $ 42 Investment income (loss) on Rabbi Trust assets (359 ) 166 - Unrealized gain on investment in LoJack common stock 1,416 - - Total investment income $ 1,871 $ 224 $ 42 Interest expense consists of the following (in thousands): Year Ended February 28, 2016 2015 2014 Interest expense on convertible senior unsecured notes: Stated interest at 1.625 $ 2,268 $ - $ - Amortization of note discount 4,613 - - Amortization of debt issue costs 588 - - 7,469 - - Other interest expense 126 296 407 Total interest expense $ 7,595 $ 296 $ 407 Supplemental Cash Flow Information Net cash provided by operating activities in the consolidated statements of cash flows includes cash payments for interest and income taxes as follows (in thousands): Year Ended February 28, 2016 2015 2014 Interest expense paid $ 1,512 $ 12 $ 117 Income tax paid $ 451 $ 347 $ 35 Following is the supplemental schedule of non-cash investing and financing activities (in thousands): Year Ended February 28, 2016 2015 2014 Acquisition of Crashboxx in April 2015: Accrued liability for earn-out consideration $ 455 $ - $ - Valuation and Qualifying Accounts Following is the Company's schedule of valuation and qualifying accounts for the last three years (in thousands): Charged Balance at (credited) beginning to costs and Balance at of year expenses Deductions end of year Allowance for doubtful accounts: Fiscal 2014 $ 461 $ 353 $ (53 ) $ 761 Fiscal 2015 761 188 (276 ) 673 Fiscal 2016 673 170 (221 ) 622 Warranty reserve: Fiscal 2014 $ 1,328 $ 881 $ (693 ) $ 1,516 Fiscal 2015 1,516 1,333 (1,030 ) 1,819 Fiscal 2016 1,819 1,015 (942 ) 1,892 Deferred tax assets valuation allowance: Fiscal 2014 $ 3,959 $ 890 $ - $ 4,849 Fiscal 2015 4,849 150 (840 ) 4,159 Fiscal 2016 4,159 - (2,541 ) 1,618 The warranty reserve is included in the Other Current Liabilities in the consolidated balance sheets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Feb. 29, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 14 COMMITMENTS AND CONTINGENCIES Operating Lease Commitments The Company leases facilities in California, Minnesota, Virginia and New Zealand. The Company also leases certain manufacturing equipment and office equipment under operating lease arrangements. A summary of future payments of operating lease commitments is included in the contractual cash obligations table in Note 8. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Feb. 29, 2016 | |
LEGAL PROCEEDINGS [Abstract] | |
LEGAL PROCEEDINGS | NOTE 15 LEGAL PROCEEDINGS In December 2013, a patent infringement lawsuit was filed against the Company by Omega Patents, LLC, (Omega), a non-practicing entity, also known as a patent-assertion entity. Omega alleged that certain of the Company's vehicle tracking products infringed on certain patents asserted by Omega. On February 24, 2016, a jury in the U.S. District Court for the Middle District of Florida awarded Omega damages of $ 2.9 In addition to the foregoing matter, from time to time as a normal consequence of doing business, various claims and litigation may be asserted or commenced against the Company. In particular, the Company in the ordinary course of business may receive claims concerning contract performance, or claims that its products or services infringe the intellectual property of third parties. While the outcome of any such claims or litigation cannot be predicted with certainty, management does not believe that the outcome of any of such matters existing at the present time would have a material adverse effect on the Company's consolidated financial position or results of operations. |
SEGMENT AND GEOGRAPHIC DATA
SEGMENT AND GEOGRAPHIC DATA | 12 Months Ended |
Feb. 29, 2016 | |
SEGMENT AND GEOGRAPHIC DATA [Abstract] | |
SEGMENT AND GEOGRAPHIC DATA | NOTE 16 SEGMENT AND GEOGRAPHIC DATA The Company's business activities are organized into its Wireless DataCom and Satellite business segments . Information by business segment is as follows (in thousands, except percentages): Year ended February 28, 2016 Year ended February 28, 2015 Operating Segments Operating Segments Wireless Corporate Wireless Corporate DataCom Satellite Expenses Total DataCom Satellite Expenses Total Revenues $ 241,387 $ 39,332 $ 280,719 $ 213,119 $ 37,487 $ 250,606 Gross profit $ 91,976 $ 10,983 $ 102,959 $ 77,899 $ 9,505 $ 87,404 Gross margin 38.1 % 27.9 % 36.7 % 36.6 % 25.4 % 34.9 % Operating income $ 28,148 $ 6,417 $ (6,480 ) $ 28,085 $ 23,833 $ 5,017 $ (3,910 ) $ 24,940 Year ended February 28, 2014 Operating Segments Wireless Corporate DataCom Satellite Expenses Total Revenues $ 187,012 $ 48,891 $ 235,903 Gross profit $ 70,114 $ 9,817 $ 79,931 Gross margin 37.5 % 20.1 % 33.9 % Operating income $ 16,324 $ 5,642 $ (3,623 ) $ 18,343 The Company considers operating income to be a primary measure of operating performance of its business segments. The amount shown for each period in the Corporate Expenses column above consists of expenses that are not allocated to the business segments. These non-allocated corporate expenses include salaries and benefits of certain corporate staff and expenses such as audit fees, investor relations, stock listing fees, director and officer liability insurance, and director fees and expenses. It is not practicable for the Company to report identifiable assets by segment because these businesses share resources, functions and facilities. The Company does not have significant long-lived assets outside the United States. The Company's revenues were derived mainly from customers in the United States, which represented 83 79 81 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Feb. 29, 2016 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | NOTE 17 QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following summarizes certain quarterly statement of operations data for each of the quarters in fiscal years 2016 and 2015 (in thousands, except percentages and per share data). The operating results in any quarter are not necessarily indicative of the results that may be expected for any future period. The Company derived this data from the unaudited consolidated interim financial statements that, in the Company's opinion, have been prepared on substantially the same basis as the audited financial statements contained elsewhere in this report and include all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. These unaudited quarterly results should be read in conjunction with the financial statements and notes thereto included elsewhere in this report. Fiscal 2016 First Second Third Fourth Quarter Quarter Quarter Quarter Total Revenues $ 65,429 $ 69,808 $ 74,675 $ 70,807 $ 280,719 Gross profit 23,526 25,303 26,574 27,556 102,959 Gross margin 36.0 % 36.2 % 35.6 % 38.9 % 36.7 % Net income 4,059 3,499 3,876 5,506 16,940 Earnings per diluted share 0.11 0.10 0.10 0.15 0.46 Fiscal 2015 First Second Third Fourth Quarter Quarter Quarter Quarter Total Revenues $ 58,981 $ 59,210 $ 63,225 $ 69,190 $ 250,606 Gross profit 20,219 20,496 22,104 24,585 87,404 Gross margin 34.3 % 34.6 % 35.0 % 35.5 % 34.9 % Net income 2,693 3,278 4,021 6,516 16,508 Earnings per diluted share 0.07 0.09 0.11 0.18 0.45 The net income in the fiscal 2016 fourth quarter includes acquisition expenses of $ 2.0 1.4 2.9 2.4 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Feb. 29, 2016 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 18 SUBSEQUENT EVENTS LoJack Acquisition As of March 15, 2016, the Company acquired effective control of LoJack through a tender offer process that resulted in CalAmp owning 80.2 6.45 6.45 130.7 5.5 850,100 The acquisition will be accounted for as business combination. Since the closing of this acquisition occurred subsequent to the Company's fiscal year-end, the allocation of the purchase price to the underlying assets acquired and liabilities assumed is subject to a formal valuation process, which has not yet been completed. The Company will include the preliminary purchase price allocation in the first quarter of fiscal 2017. The purchase price allocation will be finalized as soon as practicable within the measurement period, but not later than one year following the acquisition date. Cessation of Key Customer Relationship Subsequent to the end of fiscal 2016, EchoStar notified CalAmp that, as a result of a consolidation of its supplier base in specific areas of its business to better align with its future requirements and its reduced demand for the products that we currently supply, it has determined that it will discontinue purchasing products from CalAmp at the end of the current product demand forecast. EchoStar's current product demand forecast extends through August 2016. As a result of EchoStar's decision, CalAmp expects sales to this customer will cease after the second quarter of fiscal 2017. CalAmp is currently evaluating its Satellite business, but in light of the fact that EchoStar accounts for essentially all of the revenue of the Satellite segment, CalAmp expects that this portion of its operations will be discontinued during fiscal 2017. |
DESCRIPTION OF BUSINESS AND S25
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Feb. 29, 2016 | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Description of Business | Description of Business CalAmp Corp. (CalAmp or the Company) is a leading provider of wireless communications solutions for a broad array of applications to customers globally. The Company's business activities are organized into its Wireless DataCom and Satellite business segments. On March 18, 2016, we completed the acquisition of LoJack Corporation (LoJack). This strategic acquisition is consistent with our long-term growth strategy. CalAmp's leading portfolio of wireless connectivity devices, software, services and applications, combined with LoJack's world-renowned brand, proprietary stolen vehicle recovery product, unique law enforcement network and strong relationships with auto dealers, heavy equipment providers and global licensees, will create a market leader that is well-positioned to drive the broad adoption of connected car solutions and vehicle telematics technologies and applications worldwide. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company (a Delaware corporation) and its subsidiaries, all of which are wholly-owned. All significant intercompany transactions and accounts have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Areas where significant judgments are made include, but are not necessarily limited to, allowance for doubtful accounts, inventory valuation, product warranties, deferred income tax asset valuation allowances, valuation of purchased intangible assets and other long-lived assets, stock-based compensation, and revenue recognition. |
Fiscal Year | Fiscal Year Effective at the end of fiscal 2015, the Company changed its fiscal year-end from a 52-53 week fiscal year ending on the Saturday that falls the closest to February 28 to a fiscal year ending on the last day of February. In these consolidated financial statements, the fiscal year end for all years is shown as February 28 for clarity of presentation. The actual period end dates are February 29, 2016, February 28, 2015 and March 1, 2014. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from product sales when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection of the sales price is reasonably assured. Generally, for product sales that are not bundled with an application service these criteria are met at the time product is shipped, except for shipments made on the basis of FOB Destination terms, in which case title transfers to the customer and the revenue is recorded by the Company when the shipment reaches the customer. Customers generally do not have a right of return except for defective products returned during the warranty period. The Company records estimated commitments related to customer incentive programs as reductions of revenues. In addition to product sales, the Company provides Software as a Service (SaaS) subscriptions for its fleet management and vehicle finance applications in which customers are provided with the ability to wirelessly communicate with monitoring devices installed in vehicles and other mobile or remote assets via software applications hosted by the Company at independent data centers. The Company defers the recognition of revenue for the products that are sold with application subscriptions because the products are not functional without the application services. In such circumstances, the associated product costs are recorded as deferred costs in the balance sheet. The deferred product revenue and deferred product cost amounts are amortized to application subscriptions revenue and cost of revenue on a straight-line basis over minimum contractual subscription periods of one five |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with remaining maturities at date of purchase of three months or less to be cash equivalents. |
Concentrations of Risk | Concentrations of Risk Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions of reputable credit, and are therefore considered by management to bear minimal credit risk. Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents, marketable securities and trade receivables. EchoStar accounts for essentially all of the revenue of CalAmp's Satellite segment. EchoStar accounted for 14 15 21 EchoStar accounted for 10 12 15 Some of the Company's components, assemblies and electronic manufacturing services are purchased from sole source suppliers. In addition, a substantial portion of the Company's inventory is purchased from one supplier that functions as an independent foreign procurement agent and contract manufacturer. This supplier accounted for 56 59 65 57 16 15 |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company establishes an allowance for estimated bad debts based upon a review and evaluation of specific customer accounts identified as having known or expected collection problems based on historical experience or due to insolvency, disputes or other collection issues. |
Property, equipment and improvements | Property, equipment and improvements Property, equipment and improvements are stated at the lower of cost or fair value determined through periodic impairment analyses. The Company follows the policy of capitalizing expenditures that increase asset lives, and expensing ordinary maintenance and repairs as incurred. Depreciation and amortization are based upon the estimated useful lives of the related assets, with such amounts computed using the straight-line method. Plant equipment and office equipment are depreciated over useful lives ranging from two five 18 The Company capitalizes certain costs incurred in connection with developing or obtaining internal-use software and software that are embedded in a product and sold as part of the product as a whole. These costs are included in Property, Equipment and Improvements in the consolidated balance sheets and are amortized over useful lives ranging from three seven |
Operating Leases | Operating Leases Rent expense under operating leases is recognized on a straight-line basis over the lease term. The difference between recognized rent expense and the rent payment amount is recorded as an increase or decrease in deferred rent liability. The Company accounts for tenant allowances in lease agreements as a deferred rent credit, which is amortized on a straight-line basis over the lease term as a reduction of rent expense. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible assets and identifiable intangible assets of businesses acquired. Goodwill is not amortized. Instead, goodwill is tested for impairment on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company performs its goodwill impairment test in the fourth quarter of each year. The Company did not recognize any impairment charges related to goodwill during fiscal years 2016, 2015 and 2014. The cost of definite-lived identified intangible assets is amortized over the assets' estimated useful lives ranging from two seven |
Accounting for Long-Lived Assets | Accounting for Long-Lived Assets The Company reviews property and equipment and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amounts of an asset may not be recoverable. Recoverability is measured by comparison of the asset's carrying amount to the undiscounted future net cash flows an asset is expected to generate. If a long-lived asset or group of assets is considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset or asset group exceeds the discounted future cash flows that are projected to be generated by the asset or asset group. |
Fair Value Measurements | Fair Value Measurements The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly manner in an arms-length transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Inputs that are generally unobservable and typically reflect management's estimate of assumptions that market participants would use in pricing the asset or liability. In accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other items at fair value. The Company has elected the fair value option for its investment in marketable securities on a contract-by-contract basis at the time each contract is initially recognized in the financial statements or upon an event that gives rise to a new basis of accounting for the items. |
Warranty | Warranty The Company generally warrants its products against defects over periods ranging from 12 24 one two three |
Deferred Income Taxes | Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and for income tax purposes. The Company evaluates the realizability of its deferred income tax assets and a valuation allowance is provided, as necessary. In assessing this valuation allowance, the Company reviews historical and future expected operating results and other factors, including its recent cumulative earnings experience, expectations of future taxable income by taxing jurisdiction and the carryforward periods available for tax reporting purposes, to determine whether it is more likely than not that deferred tax assets are realizable. |
Foreign Currency Translation and Accumulated Other Comprehensive Loss Account | Foreign Currency Translation and Accumulated Other Comprehensive Loss Account The Company's Canadian subsidiary changed its functional currency from the Canadian dollar to the U.S. dollar effective at the end of fiscal 2010. The cumulative foreign currency translation loss of $ 65,000 The Company's New Zealand branch uses the U.S. dollar as its functional currency. The Company's United Kingdom subsidiary uses the British pound, the local currency, as its functional currency. Its financial statements are translated into U.S. dollars using current or historical rates, as appropriate, with translation gains or losses included in the accumulated other comprehensive loss account in the stockholders' equity section of the consolidated balance sheet. Cumulative foreign currency loss as of February 28, 2016 amounted to $ 161,000 The aggregate foreign transaction exchange rate losses included in determining income before income taxes were $ 27,000 53,000 62,000 |
Stock-Based Compensation | Stock-Based Compensation The Company measures stock-based compensation expense at the grant date, based on the fair value of the equity award, and recognizes the expense over the employee's requisite service (vesting) period using the straight-line method. The measurement of stock-based compensation expense is based on several criteria including, but not limited to, the type of equity award, the valuation model used and associated input factors, such as expected term of the award, stock price volatility, risk free interest rate and forfeiture rate. Certain of these inputs are subjective to some degree and are determined based in part on management's judgment. The Company recognizes the compensation expense on a straight-line basis for its graded-vesting awards. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. However, the cumulative compensation expense recognized in any period must at least equal the portion of the grant-date fair value associated with equity awards that are vested as of such period-end date. As used in this context, the term forfeitures is distinct from cancellations or expirations, and refers only to the unvested portion of the surrendered equity awards. |
Business Combinations | Business Combinations The Company applies the provisions of ASC 805, Business Combinations, in the accounting for its acquisitions, which requires recognition of the assets acquired and the liabilities assumed at their acquisition date fair values, separately from goodwill. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the tangible and identifiable intangible assets acquired and liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period that exists up to 12 months from the acquisition date, the Company may record adjustments to the tangible and specifically identifiable intangible assets acquired and liabilities assumed with a corresponding adjustment to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired and liabilities assumed, whichever comes first, the impact of any subsequent adjustments is included in the consolidated statements of operations. Costs to exit or restructure certain activities of an acquired company or the Company's internal operations are accounted for as a one-time termination and exit cost pursuant to ASC 420, Exit or Disposal Cost Obligations, and are accounted for separately from the business combination. A liability for costs associated with an exit or disposal activity is recognized and measured at its fair value in the Company's consolidated statement of operations in the period in which the liability is incurred. Uncertain income tax positions and tax-related valuation allowances that are acquired in connection with a business combination are initially estimated as of the acquisition date. The Company reevaluates these items quarterly based upon facts and circumstances that existed as of the acquisition date, with any adjustments to the preliminary estimates being recorded to goodwill provided that such adjustments occur within the 12 month measurement period. Subsequent to the end of the measurement period or the Company's final determination of the value of the tax allowance or contingency, whichever comes first, changes to these uncertain tax positions and tax-related valuation allowances will affect the provision for income taxes in the consolidated statement of operations, and could have a material impact on results of operations and financial position. |
Recently Adopted or Issued Accounting Standards | Recently Adopted Accounting Standards In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2015-03, InterestImputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). The FASB issued ASU 2015-03 to simplify the presentation of debt issuance costs related to a recognized debt liability to present the debt issuance costs as a direct deduction from the carrying value of the debt liability rather than showing the debt issuance costs as a deferred charge on the balance sheet. As permitted by ASU 2015-03, the Company early-adopted this standard with respect to the convertible senior unsecured notes issued in May 2015, as discussed further in Note 8. In November 2015, the FASB issued Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes (ASU 2015-17). ASU 2015-17 amends existing guidance to require that deferred income tax liabilities and assets be classified as noncurrent in a classified balance sheet, and eliminates the prior guidance which required an entity to separate deferred tax liabilities and assets into a current amount and a noncurrent amount in a classified balance sheet. As permitted by ASU 2015-17, the Company early-adopted this standard and applied it retrospectively to all periods presented. Recently Issued Accounting Standards In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial InstrumentsOverall: Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01). This standard revises an entity's accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. ASU 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Early adoption is permitted. The Company is currently evaluating the impact of adoption of the new standard on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. This ASU must be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is continuing to evaluate the effect and methodology of adopting this new accounting guidance on its results of operations, cash flows and financial position. |
Reclassifications | Reclassifications Certain amounts in the financial statements of prior years have been reclassified to conform to the fiscal 2016 presentation, with no effect on net earnings. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Feb. 29, 2016 | |
Radio Satellite Integrators, Inc. [Member] | |
Business Acquisition [Line Items] | |
Summary of Purchase Price Allocation | Purchase price $ 8,563 Less cash acquired (382 ) Net purchase price 8,181 Fair value of net assets acquired: Current assets other than cash $ 941 Customer lists 3,150 Developed technology 1,970 Other non-current assets 10 Current liabilities (1,675 ) Deferred tax liabilities, net (1,768 ) Total fair value of net assets acquired 2,628 Goodwill $ 5,553 |
Wireless Matrix USA, Inc. [Member] | |
Business Acquisition [Line Items] | |
Summary of Purchase Price Allocation | Purchase price $ 52,986 Less cash acquired (6,149 ) Net cash paid 46,837 Fair value of net assets acquired: Current assets other than cash $ 6,353 Deferred tax assets, net 9,437 Property and equipment 1,683 Customer lists 14,440 Developed technology 11,180 Other non-current assets 144 Current liabilities (5,218 ) Total fair value of net assets acquired 38,019 Goodwill $ 8,818 |
CASH, CASH EQUIVALENTS AND IN27
CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables) | 12 Months Ended |
Feb. 29, 2016 | |
CASH, CASH EQUIVALENTS AND INVESTMENTS [Abstract] | |
Schedule of Cash and Marketable Securities | As of February 28, 2016 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Adjusted Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 6,890 $ - $ 6,890 $ 6,890 $ - $ - Level 1: LoJack common stock (1) 4,050 1,416 5,466 - - 5,466 Mutual funds (2) 3,753 (383 ) 3,370 - - 3,370 Level 2: Repurchase agreements 130,900 - 130,900 130,900 - - Corporate bonds 82,300 (16 ) 82,284 1,556 80,728 Commercial paper 8,032 - 8,032 42 7,990 - Total $ 235,925 $ 1,017 $ 236,942 $ 139,388 $ 88,718 $ 8,836 As of February 28, 2015 Balance Sheet Classification of Fair Value Unrealized Cash and Short-Term Adjusted Gains Fair Cash Marketable Other Cost (Losses) Value Equivalents Securities Assets Cash $ 11,384 $ - $ 11,384 $ 11,384 $ - $ - Level 1: Commercial paper 400 - 400 400 - - Mutual funds (2) 2,138 84 2,222 - - 2,222 Level 2: Repurchase agreements 22,400 - 22,400 22,400 - - Commercial paper 10,184 (7 ) 10,177 - 10,177 - Total $ 46,506 $ 77 $ 46,583 $ 34,184 $ 10,177 $ 2,222 (1) The Company purchased 850,100 100 1.4 (2) The Company has established a non-qualified deferred compensation plan for certain members of management and all non-employee directors. The Company is informally funding its obligations under the deferred compensation plan by purchasing shares in various equity, bond and money market mutual funds that are held in a Rabbi Trust and are restricted for payment of obligations to plan participants. See Note 7 for additional information regarding the deferred compensation plan. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Feb. 29, 2016 | |
INVENTORIES [Abstract] | |
Schedule of Inventories | February 28, 2016 2015 Raw materials $ 14,145 $ 14,519 Work in process 180 361 Finished goods 2,406 3,786 $ 16,731 $ 18,666 |
PROPERTY, EQUIPMENT AND IMPRO29
PROPERTY, EQUIPMENT AND IMPROVEMENTS (Tables) | 12 Months Ended |
Feb. 29, 2016 | |
PROPERTY, EQUIPMENT AND IMPROVEMENTS [Abstract] | |
Schedule of Property, Equipment and Improvements | February 28, 2016 2015 Leasehold improvements $ 1,815 $ 1,833 Plant equipment and tooling 12,541 13,355 Office equipment, computers and furniture 6,468 5,753 Software 9,789 7,439 30,613 28,380 Less accumulated depreciation and amortization (21,852 ) (20,177 ) 8,761 8,203 Fixed assets not yet in service 2,464 2,322 $ 11,225 $ 10,525 |
GOODWILL AND OTHER INTANGIBLE30
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Feb. 29, 2016 | |
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | |
Schedule of Goodwill | Year Ended February 28, 2016 2015 Balance at beginning of year $ 15,483 $ 15,422 Crashboxx acquisition 1,025 - Purchase price allocation adjustments - 61 Balance at end of year $ 16,508 $ 15,483 |
Schedule of Other Intangible Assets | Gross Accumulated Amortization Net Amortization February 28, February 28, February 28, February 28, February 28, Period 2015 Additions Retirements 2016 2015 Expense Retirements 2016 2016 2015 Supply contract 5 $ 2,220 $ - $ - $ 2,220 $ 1,247 $ 432 $ - $ 1,679 $ 541 $ 973 Developed technology 2 7 16,151 930 (3,001 ) 14,080 7,126 2,302 (3,001 ) 6,427 7,653 9,025 Tradename 7 2,130 13 - 2,143 1,217 305 - 1,522 621 913 Customer lists 5 7 19,438 - (1,138 ) 18,300 7,949 3,547 (1,138 ) 10,358 7,942 11,489 Covenants not to compete 5 262 - (92 ) 170 187 33 (92 ) 128 42 75 Patents 5 176 97 - 273 55 7 - 62 211 121 $ 40,377 $ 1,040 $ (4,231 ) $ 37,186 $ 17,781 $ 6,626 $ (4,231 ) $ 20,176 $ 17,010 $ 22,596 |
Schedule of Future Amortization Expense | Fiscal Year 2017 $ 6,689 2018 6,235 2019 2,890 2020 882 2021 174 Thereafter 140 $ 17,010 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Feb. 29, 2016 | |
OTHER ASSETS [Abstract] | |
Schedule of Other Assets | February 28, 2016 2015 Investment in LoJack common stock $ 5,466 $ - Deferred compensation plan assets 3,370 2,222 Equity investment in U.K. affiliate 1,167 - Other 637 915 $ 10,640 $ 3,137 |
FINANCING ARRANGEMENTS AND CO32
FINANCING ARRANGEMENTS AND CONTRACTUAL CASH OBLIGATIONS (Tables) | 12 Months Ended |
Feb. 29, 2016 | |
FINANCING ARRANGEMENTS AND CONTRACTUAL CASH OBLIGATIONS [Abstract] | |
Schedule of Balances Attributable to the Notes | Principal $ 172,500 Less: Unamortized debt discount (29,002 ) Unamortized debt issuance costs (3,698 ) Net carrying amount of the Notes $ 139,800 |
Schedule of Contractual Cash Obligations | Future Estimated Cash Payments Due by Fiscal Year 2017 2018 2019 2020 2021 Total Convertible senior notes principal $ - $ - $ - $ - $ 172,500 $ 172,500 Convertible senior notes stated interest 2,803 2,803 2,803 2,803 1,402 12,614 Operating leases 2,237 1,867 1,498 819 129 6,550 Purchase obligations 39,768 - - - - 39,768 Other contractual commitments 3,470 - - - - 3,470 Total contractual obligations $ 48,278 $ 4,670 $ 4,301 $ 3,622 $ 174,031 $ 234,902 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Feb. 29, 2016 | |
INCOME TAXES [Abstract] | |
Schedule of Income Before Income Taxes | Year Ended February 28, 2016 2015 2014 Domestic $ 22,461 $ 24,684 $ 17,185 Foreign (120 ) 116 726 Total income before income taxes and equity in net loss of affiliate $ 22,341 $ 24,800 $ 17,911 |
Schedule of Income Tax Benefit (Provision) | Year Ended February 28, 2016 2015 2014 Current: Federal $ (182 ) $ - $ - State (208 ) (325 ) (42 ) Foreign (60 ) (49 ) (45 ) Total current (450 ) (374 ) (87 ) Deferred: Federal (4,331 ) (8,134 ) (6,346 ) State 209 216 325 Total deferred (4,122 ) (7,918 ) (6,021 ) Total income tax provision $ (4,572 ) $ (8,292 ) $ (6,108 ) |
Reconciliation of Effective Income Tax Benefit (Provision) | Year Ended February 28, 2016 2015 2014 Income tax provision at U.S. statutory federal rate of 35 $ (7,819 ) $ (8,680 ) $ (6,269 ) State income tax provision, net of federal income tax effect (833 ) (867 ) (770 ) Foreign taxes (102 ) 41 209 Valuation allowance reductions (increases) 2,541 250 (865 ) Research and development tax credits 1,008 1,556 1,126 Other, net 633 (592 ) 461 Total income tax provision $ (4,572 ) $ (8,292 ) $ (6,108 ) |
Schedule of Net Deferred Tax Income Assets | February 28, 2016 2015 Net operating loss carryforwards $ 10,660 $ 20,318 Depreciation, amortization and impairments 1,598 1,785 Research and development credits 9,747 8,738 Stock-based compensation 2,383 1,869 Other tax credits 917 635 Inventory reserve 502 484 Warranty reserve 752 697 Payroll and employee benefit accruals 2,421 1,797 Allowance for doubtful accounts 241 258 Other accrued liabilities 2,694 2,158 Other, net (84 ) 242 Gross deferred tax assets 31,831 38,981 Valuation allowance (1,618 ) (4,159 ) Net deferred tax assets $ 30,213 $ 34,822 |
Reconciliation of Unrecognized Tax Benefits | Balance at February 28, 2013 $ 1,089 Decrease in fiscal 2014 (60 ) Balance at February 28, 2014 1,029 Change in fiscal 2015 - Balance at February 28, 2015 1,029 Change in fiscal 2016 - Balance at February 28, 2016 $ 1,029 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Feb. 29, 2016 | |
STOCKHOLDERS' EQUITY [Abstract] | |
Summary of Stock Option Activity | Weighted Number of Average Options Exercise Price Outstanding at February 28, 2013 1,656 $ 5.53 Granted 56 15.14 Exercised (611 ) 7.28 Forfeited or expired (8 ) 4.53 Outstanding at February 28, 2014 1,093 5.04 Granted 61 17.47 Exercised (143 ) 5.01 Forfeited or expired (4 ) 6.88 Outstanding at February 28, 2015 1,007 5.80 Granted 82 17.54 Exercised (228 ) 5.62 Forfeited or expired (1 ) 1.80 Outstanding at February 28, 2016 860 $ 6.96 Exercisable at February 28, 2016 688 $ 4.66 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year Ended February 28, Black-Scholes Valuation Assumptions 2016 2015 2014 Expected life (years) (1) 6 6 6 Expected volatility (2) 56 % 70 % 69 % Risk-free interest rates (3) 1.8 % 1.9 % 1.7 % Expected dividend yield 0 % 0 % 0 % (1) The expected life of stock options is estimated based on historical experience. (2) The expected volatility is estimated based on historical volatility of the Company's stock price. (3) Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of the stock options. |
Summary of Restricted Stock Shares, Performance Stock Units (PSU's) and RSUs Activity | Number of Restricted Weighted Shares, Average Grant PSUs and Date Fair RSUs Value Outstanding at February 28, 2013 1,338 $ 4.40 Granted 312 15.58 Vested (592 ) 3.83 Forfeited (34 ) 7.88 Outstanding at February 28, 2014 1,024 8.02 Granted 365 17.92 Vested (471 ) 6.28 Forfeited (32 ) 11.69 Outstanding at February 28, 2015 886 12.90 Granted 517 17.75 Vested (407 ) 9.97 Forfeited (43 ) 15.55 Outstanding at February 28, 2016 953 $ 16.66 |
Schedule of Stock-based Compensation Expense | Year Ended February 28, 2016 2015 2014 Cost of revenues $ 229 $ 241 $ 191 Research and development 781 613 516 Selling 1,208 591 360 General and administrative 3,636 2,655 1,857 $ 5,854 $ 4,100 $ 2,924 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Feb. 29, 2016 | |
EARNINGS PER SHARE [Abstract] | |
Schedule of Weighted Average Number of Shares | Year Ended February 28, 2016 2015 2014 Net income $ 16,940 $ 16,508 $ 11,803 Basic weighted average number of common shares outstanding 36,448 35,784 34,969 Effect of stock options and restricted stock units computed on treasury stock method 502 746 1,054 Diluted weighted average number of common shares outstanding 36,950 36,530 36,023 Earnings per share: Basic $ 0.46 $ 0.46 $ 0.34 Diluted $ 0.46 $ 0.45 $ 0.33 |
OTHER FINANCIAL INFORMATION (Ta
OTHER FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Feb. 29, 2016 | |
OTHER FINANCIAL INFORMATION [Abstract] | |
Schedule of Supplemental Balance Sheet Information | February 28, 2016 2015 Deferred compensation plan liability $ 3,392 $ 2,246 Deferred revenue 1,070 1,652 Deferred rent 559 329 Acquisition-related contingent consideration 530 - $ 5,551 $ 4,227 |
Schedule of Investment income (loss) | Year Ended February 28, 2016 2015 2014 Investment income on cash equivalents and marketable securities $ 814 $ 58 $ 42 Investment income (loss) on Rabbi Trust assets (359 ) 166 - Unrealized gain on investment in LoJack common stock 1,416 - - Total investment income $ 1,871 $ 224 $ 42 |
Schedule of Interest expense | Year Ended February 28, 2016 2015 2014 Interest expense on convertible senior unsecured notes: Stated interest at 1.625 $ 2,268 $ - $ - Amortization of note discount 4,613 - - Amortization of debt issue costs 588 - - 7,469 - - Other interest expense 126 296 407 Total interest expense $ 7,595 $ 296 $ 407 |
Schedule of Supplemental Cash Flow Information | Year Ended February 28, 2016 2015 2014 Interest expense paid $ 1,512 $ 12 $ 117 Income tax paid $ 451 $ 347 $ 35 |
Schedule of Supplemental Non-Cash Investing and Financing Activities | Year Ended February 28, 2016 2015 2014 Acquisition of Crashboxx in April 2015: Accrued liability for earn-out consideration $ 455 $ - $ - |
Schedule of Valuation and Qualifying Accounts | Charged Balance at (credited) beginning to costs and Balance at of year expenses Deductions end of year Allowance for doubtful accounts: Fiscal 2014 $ 461 $ 353 $ (53 ) $ 761 Fiscal 2015 761 188 (276 ) 673 Fiscal 2016 673 170 (221 ) 622 Warranty reserve: Fiscal 2014 $ 1,328 $ 881 $ (693 ) $ 1,516 Fiscal 2015 1,516 1,333 (1,030 ) 1,819 Fiscal 2016 1,819 1,015 (942 ) 1,892 Deferred tax assets valuation allowance: Fiscal 2014 $ 3,959 $ 890 $ - $ 4,849 Fiscal 2015 4,849 150 (840 ) 4,159 Fiscal 2016 4,159 - (2,541 ) 1,618 |
SEGMENT AND GEOGRAPHIC DATA (Ta
SEGMENT AND GEOGRAPHIC DATA (Tables) | 12 Months Ended |
Feb. 29, 2016 | |
SEGMENT AND GEOGRAPHIC DATA [Abstract] | |
Summary of Segment Information | Year ended February 28, 2016 Year ended February 28, 2015 Operating Segments Operating Segments Wireless Corporate Wireless Corporate DataCom Satellite Expenses Total DataCom Satellite Expenses Total Revenues $ 241,387 $ 39,332 $ 280,719 $ 213,119 $ 37,487 $ 250,606 Gross profit $ 91,976 $ 10,983 $ 102,959 $ 77,899 $ 9,505 $ 87,404 Gross margin 38.1 % 27.9 % 36.7 % 36.6 % 25.4 % 34.9 % Operating income $ 28,148 $ 6,417 $ (6,480 ) $ 28,085 $ 23,833 $ 5,017 $ (3,910 ) $ 24,940 Year ended February 28, 2014 Operating Segments Wireless Corporate DataCom Satellite Expenses Total Revenues $ 187,012 $ 48,891 $ 235,903 Gross profit $ 70,114 $ 9,817 $ 79,931 Gross margin 37.5 % 20.1 % 33.9 % Operating income $ 16,324 $ 5,642 $ (3,623 ) $ 18,343 |
QUARTERLY FINANCIAL INFORMATI38
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Feb. 29, 2016 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) [Abstract] | |
Schedule of Quarterly Financial Information | Fiscal 2016 First Second Third Fourth Quarter Quarter Quarter Quarter Total Revenues $ 65,429 $ 69,808 $ 74,675 $ 70,807 $ 280,719 Gross profit 23,526 25,303 26,574 27,556 102,959 Gross margin 36.0 % 36.2 % 35.6 % 38.9 % 36.7 % Net income 4,059 3,499 3,876 5,506 16,940 Earnings per diluted share 0.11 0.10 0.10 0.15 0.46 Fiscal 2015 First Second Third Fourth Quarter Quarter Quarter Quarter Total Revenues $ 58,981 $ 59,210 $ 63,225 $ 69,190 $ 250,606 Gross profit 20,219 20,496 22,104 24,585 87,404 Gross margin 34.3 % 34.6 % 35.0 % 35.5 % 34.9 % Net income 2,693 3,278 4,021 6,516 16,508 Earnings per diluted share 0.07 0.09 0.11 0.18 0.45 |
DESCRIPTION OF BUSINESS AND S39
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Foreign transaction exchange gains (losses) | $ (27,000) | $ (53,000) | $ (62,000) |
Canadian Subsidiary [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Cumulative foreign currency translation loss | (65,000) | ||
UK Subsidiary [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Cumulative foreign currency translation loss | $ (161,000) | ||
Minimum [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Finite-Lived Intangible Asset, Useful Life | 2 years | ||
Warranty Term | 12 months | ||
Maximum [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||
Warranty Term | 24 months | ||
Tooling [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Property, Plant and Equipment, Useful Life | 18 months | ||
Plant Equipment and Office Equipment [Member] | Minimum [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Property, Plant and Equipment, Useful Life | 2 years | ||
Plant Equipment and Office Equipment [Member] | Maximum [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Software Development [Member] | Minimum [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Software Development [Member] | Maximum [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Revenues [Member] | Customer Concentration Risk [Member] | EchoStar [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Concentration percentage | 14.00% | 15.00% | 21.00% |
Accounts receivable [Member] | Customer Concentration Risk [Member] | EchoStar [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Concentration percentage | 10.00% | 12.00% | |
Accounts receivable [Member] | Customer Concentration Risk [Member] | Customer One from Wireless Datacom Segment [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Concentration percentage | 15.00% | 15.00% | |
Inventory purchases [Member] | Major supplier [Member] | Supplier One [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Concentration percentage | 56.00% | 59.00% | 65.00% |
Inventory purchases [Member] | Major supplier [Member] | Supplier Two [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Concentration percentage | 16.00% | ||
Accounts payable [Member] | Major supplier [Member] | Supplier One [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Concentration percentage | 57.00% | ||
Accounts payable [Member] | Major supplier [Member] | Supplier Two [Member] | |||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Concentration percentage | 15.00% |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) - USD ($) | Apr. 17, 2015 | Dec. 18, 2013 | Mar. 04, 2013 | Feb. 28, 2013 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 |
Business Acquisition [Line Items] | |||||||
Intangible asset amortization | $ 6,626,000 | $ 6,590,000 | $ 6,283,000 | ||||
Crashboxx [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash payment for acquisition | $ 1,500,000 | ||||||
Future earn-out payments | $ 455,000 | ||||||
Radio Satellite Integrators, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 8,563,000 | ||||||
Cash acquired | 382,000 | ||||||
Cash payment for acquisition | 6,500,000 | ||||||
Future earn-out payments | $ 2,100,000 | ||||||
Wireless Matrix USA, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 52,986,000 | ||||||
Cash acquired | 6,149,000 | ||||||
Cash payment for acquisition | $ 52,900,000 | ||||||
Proceeds from sale of common stock used to fund acquisition | $ 44,800,000 | ||||||
Debt instrument, face amount | $ 3,200,000 |
ACQUISITIONS (Summary of Purcha
ACQUISITIONS (Summary of Purchase Price Allocation) (Details) - USD ($) | Dec. 18, 2013 | Mar. 04, 2013 | Feb. 29, 2016 | Feb. 28, 2014 | Apr. 17, 2015 | Feb. 28, 2015 |
Business Acquisition [Line Items] | ||||||
Net cash paid | $ 1,500,000 | $ 52,954,000 | ||||
Fair value of net assets acquired: | ||||||
Goodwill | $ 16,508,000 | $ 15,422,000 | $ 15,483,000 | |||
Crashboxx [Member] | ||||||
Fair value of net assets acquired: | ||||||
Goodwill | $ 1,025,000 | |||||
Crashboxx [Member] | Developed technology [Member] | ||||||
Fair value of net assets acquired: | ||||||
Finite-lived intangible assets | $ 930,000 | |||||
Radio Satellite Integrators, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 8,563,000 | |||||
Less Cash Acquired | (382,000) | |||||
Net cash paid | 8,181,000 | |||||
Fair value of net assets acquired: | ||||||
Current assets other than cash | 941,000 | |||||
Other non-current assets | 10,000 | |||||
Current liabilities | (1,675,000) | |||||
Deferred tax liabilities, net | (1,768,000) | |||||
Total fair value of net assets acquired | 2,628,000 | |||||
Goodwill | 5,553,000 | |||||
Radio Satellite Integrators, Inc. [Member] | Customer lists [Member] | ||||||
Fair value of net assets acquired: | ||||||
Finite-lived intangible assets | 3,150,000 | |||||
Radio Satellite Integrators, Inc. [Member] | Developed technology [Member] | ||||||
Fair value of net assets acquired: | ||||||
Finite-lived intangible assets | $ 1,970,000 | |||||
Wireless Matrix USA, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Purchase price | $ 52,986,000 | |||||
Less Cash Acquired | (6,149,000) | |||||
Net cash paid | 46,837,000 | |||||
Fair value of net assets acquired: | ||||||
Current assets other than cash | 6,353,000 | |||||
Deferred tax assets, net | 9,437,000 | |||||
Property and equipment | 1,683,000 | |||||
Other non-current assets | 144,000 | |||||
Current liabilities | (5,218,000) | |||||
Total fair value of net assets acquired | 38,019,000 | |||||
Goodwill | 8,818,000 | |||||
Wireless Matrix USA, Inc. [Member] | Customer lists [Member] | ||||||
Fair value of net assets acquired: | ||||||
Finite-lived intangible assets | 14,440,000 | |||||
Wireless Matrix USA, Inc. [Member] | Developed technology [Member] | ||||||
Fair value of net assets acquired: | ||||||
Finite-lived intangible assets | $ 11,180,000 |
CASH, CASH EQUIVALENTS AND IN42
CASH, CASH EQUIVALENTS AND INVESTMENTS (Details) - USD ($) $ in Thousands | Mar. 18, 2016 | Feb. 29, 2016 | Feb. 28, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Adjusted Cost | $ 235,925 | $ 46,506 | ||
Unrealized Gains (Losses) | 1,017 | 77 | ||
Fair Value | $ 236,942 | 46,583 | ||
LoJack [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Owned, Balance, Shares | 850,100 | |||
Subsequent Event [Member] | LoJack [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Cash and Cash Equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 139,388 | 34,184 | ||
Short-Term Marketable Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | 88,718 | 10,177 | ||
Other Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | 8,836 | 2,222 | ||
Cash [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Adjusted Cost | $ 6,890 | $ 11,384 | ||
Unrealized Gains (Losses) | ||||
Fair Value | $ 6,890 | $ 11,384 | ||
Cash [Member] | Cash and Cash Equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 6,890 | $ 11,384 | ||
Cash [Member] | Short-Term Marketable Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | ||||
Cash [Member] | Other Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | ||||
Level 1 [Member] | Domestic Equities [Member | LoJack [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Adjusted Cost | [1] | $ 4,050 | ||
Unrealized Gains (Losses) | [1] | 1,416 | ||
Fair Value | [1] | $ 5,466 | ||
Level 1 [Member] | Domestic Equities [Member | Cash and Cash Equivalents [Member] | LoJack [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [1] | |||
Level 1 [Member] | Domestic Equities [Member | Short-Term Marketable Securities [Member] | LoJack [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [1] | |||
Level 1 [Member] | Domestic Equities [Member | Other Assets [Member] | LoJack [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [1] | $ 5,466 | ||
Level 1 [Member] | Mutual funds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Adjusted Cost | [2] | 3,753 | $ 2,138 | |
Unrealized Gains (Losses) | [2] | (383) | 84 | |
Fair Value | [2] | $ 3,370 | $ 2,222 | |
Level 1 [Member] | Mutual funds [Member] | Cash and Cash Equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [2] | |||
Level 1 [Member] | Mutual funds [Member] | Short-Term Marketable Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [2] | |||
Level 1 [Member] | Mutual funds [Member] | Other Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | [2] | $ 3,370 | $ 2,222 | |
Level 1 [Member] | Commercial Paper [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Adjusted Cost | $ 400 | |||
Unrealized Gains (Losses) | ||||
Fair Value | $ 400 | |||
Level 1 [Member] | Commercial Paper [Member] | Cash and Cash Equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 400 | |||
Level 1 [Member] | Commercial Paper [Member] | Short-Term Marketable Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | ||||
Level 1 [Member] | Commercial Paper [Member] | Other Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | ||||
Level 2 [Member] | Repurchase Agreements [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Adjusted Cost | $ 130,900 | $ 22,400 | ||
Unrealized Gains (Losses) | ||||
Fair Value | $ 130,900 | $ 22,400 | ||
Level 2 [Member] | Repurchase Agreements [Member] | Cash and Cash Equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 130,900 | $ 22,400 | ||
Level 2 [Member] | Repurchase Agreements [Member] | Short-Term Marketable Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | ||||
Level 2 [Member] | Repurchase Agreements [Member] | Other Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | ||||
Level 2 [Member] | Corporate Bonds [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Adjusted Cost | $ 82,300 | |||
Unrealized Gains (Losses) | (16) | |||
Fair Value | 82,284 | |||
Level 2 [Member] | Corporate Bonds [Member] | Cash and Cash Equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | 1,556 | |||
Level 2 [Member] | Corporate Bonds [Member] | Short-Term Marketable Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | 80,728 | |||
Level 2 [Member] | Commercial Paper [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Adjusted Cost | $ 8,032 | $ 10,184 | ||
Unrealized Gains (Losses) | (7) | |||
Fair Value | $ 8,032 | $ 10,177 | ||
Level 2 [Member] | Commercial Paper [Member] | Cash and Cash Equivalents [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | 42 | |||
Level 2 [Member] | Commercial Paper [Member] | Short-Term Marketable Securities [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 7,990 | $ 10,177 | ||
Level 2 [Member] | Commercial Paper [Member] | Other Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value | ||||
[1] | The Company purchased 850,100 shares of LoJack common stock in the open market in November and December 2015, prior to entering into a definitive agreement to acquire 100% of LoJack. These shares are considered trading securities and were recorded at fair value at the end of fiscal 2016, resulting in a gain of $1.4 million that was recorded as investment income in the consolidated statement of comprehensive income. | |||
[2] | The Company has established a non-qualified deferred compensation plan for certain members of management and all non-employee directors. The Company is informally funding its obligations under the deferred compensation plan by purchasing shares in various equity, bond and money market mutual funds that are held in a “Rabbi Trust” and are restricted for payment of obligations to plan participants. See Note 7 for additional information regarding the deferred compensation plan. |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Feb. 28, 2015 |
INVENTORIES [Abstract] | ||
Raw materials | $ 14,145 | $ 14,519 |
Work in process | 180 | 361 |
Finished goods | 2,406 | 3,786 |
Inventories | $ 16,731 | $ 18,666 |
PROPERTY, EQUIPMENT AND IMPRO44
PROPERTY, EQUIPMENT AND IMPROVEMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Property, equipment and improvements | |||
Property, equipment and improvements, net of accumulated depreciation and amortization | $ 11,225 | $ 10,525 | |
Depreciation expense | 3,582 | 2,796 | $ 1,822 |
Leasehold Improvements [Member] | |||
Property, equipment and improvements | |||
Property, equipment and improvements, gross | 1,815 | 1,833 | |
Plant Equipment and Tooling [Member] | |||
Property, equipment and improvements | |||
Property, equipment and improvements, gross | 12,541 | 13,355 | |
Office Equipment, Computers and Furniture [Member] | |||
Property, equipment and improvements | |||
Property, equipment and improvements, gross | 6,468 | 5,753 | |
Software [Member] | |||
Property, equipment and improvements | |||
Property, equipment and improvements, gross | 9,789 | 7,439 | |
Property and Equipment, Excluding Fixed Assets Not Yet In Service [Member] | |||
Property, equipment and improvements | |||
Property, equipment and improvements, gross | 30,613 | 28,380 | |
Less accumulated depreciation and amortization | (21,852) | (20,177) | |
Property, equipment and improvements, net of accumulated depreciation and amortization | 8,761 | 8,203 | |
Fixed Assets Not Yet in Service [Member] | |||
Property, equipment and improvements | |||
Property, equipment and improvements, gross | $ 2,464 | $ 2,322 |
GOODWILL AND OTHER INTANGIBLE45
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 29, 2016 | Feb. 28, 2015 | |
Goodwill [Line Items] | ||
Balance at beginning of period | $ 15,483 | $ 15,422 |
Crashboxx acquisition | $ 1,025 | |
Purchase price allocation adjustments | $ 61 | |
Balance at end of period | $ 16,508 | $ 15,483 |
GOODWILL AND OTHER INTANGIBLE46
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Other intangible assets: | |||
Beginning balance | $ 40,377 | ||
Additions | 1,040 | ||
Retirements | (4,231) | ||
Ending balance | 37,186 | $ 40,377 | |
Beginning balance | 17,781 | ||
Intangible assets amortization expense | 6,626 | 6,590 | $ 6,283 |
Retirements | (4,231) | ||
Ending balance | 20,176 | 17,781 | |
Net | $ 17,010 | 22,596 | |
Minimum [Member] | |||
Other intangible assets: | |||
Amortization period | 2 years | ||
Maximum [Member] | |||
Other intangible assets: | |||
Amortization period | 7 years | ||
Supply contract [Member] | |||
Other intangible assets: | |||
Amortization period | 5 years | ||
Beginning balance | $ 2,220 | ||
Additions | |||
Retirements | |||
Ending balance | $ 2,220 | 2,220 | |
Beginning balance | 1,247 | ||
Intangible assets amortization expense | $ 432 | ||
Retirements | |||
Ending balance | $ 1,679 | 1,247 | |
Net | 541 | 973 | |
Developed technology [Member] | |||
Other intangible assets: | |||
Beginning balance | 16,151 | ||
Additions | 930 | ||
Retirements | (3,001) | ||
Ending balance | 14,080 | 16,151 | |
Beginning balance | 7,126 | ||
Intangible assets amortization expense | 2,302 | ||
Retirements | (3,001) | ||
Ending balance | 6,427 | 7,126 | |
Net | $ 7,653 | 9,025 | |
Developed technology [Member] | Minimum [Member] | |||
Other intangible assets: | |||
Amortization period | 2 years | ||
Developed technology [Member] | Maximum [Member] | |||
Other intangible assets: | |||
Amortization period | 7 years | ||
Tradename [Member] | |||
Other intangible assets: | |||
Amortization period | 7 years | ||
Beginning balance | $ 2,130 | ||
Additions | $ 13 | ||
Retirements | |||
Ending balance | $ 2,143 | 2,130 | |
Beginning balance | 1,217 | ||
Intangible assets amortization expense | $ 305 | ||
Retirements | |||
Ending balance | $ 1,522 | 1,217 | |
Net | 621 | 913 | |
Customer lists [Member] | |||
Other intangible assets: | |||
Beginning balance | $ 19,438 | ||
Additions | |||
Retirements | $ (1,138) | ||
Ending balance | 18,300 | 19,438 | |
Beginning balance | 7,949 | ||
Intangible assets amortization expense | 3,547 | ||
Retirements | (1,138) | ||
Ending balance | 10,358 | 7,949 | |
Net | $ 7,942 | 11,489 | |
Customer lists [Member] | Minimum [Member] | |||
Other intangible assets: | |||
Amortization period | 5 years | ||
Customer lists [Member] | Maximum [Member] | |||
Other intangible assets: | |||
Amortization period | 7 years | ||
Covenants not to Compete [Member] | |||
Other intangible assets: | |||
Amortization period | 5 years | ||
Beginning balance | $ 262 | ||
Additions | |||
Retirements | $ (92) | ||
Ending balance | 170 | 262 | |
Beginning balance | 187 | ||
Intangible assets amortization expense | 33 | ||
Retirements | (92) | ||
Ending balance | 128 | 187 | |
Net | $ 42 | 75 | |
Patents [Member] | |||
Other intangible assets: | |||
Amortization period | 5 years | ||
Beginning balance | $ 176 | ||
Additions | $ 97 | ||
Retirements | |||
Ending balance | $ 273 | 176 | |
Beginning balance | 55 | ||
Intangible assets amortization expense | $ 7 | ||
Retirements | |||
Ending balance | $ 62 | 55 | |
Net | $ 211 | $ 121 |
GOODWILL AND OTHER INTANGIBLE47
GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule of Future Amortization Expense) (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Feb. 28, 2015 |
Fiscal Year | ||
2,017 | $ 6,689 | |
2,018 | 6,235 | |
2,019 | 2,890 | |
2,020 | 882 | |
2,021 | 174 | |
Thereafter | 140 | |
Net | $ 17,010 | $ 22,596 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) | 3 Months Ended | 12 Months Ended | |||
Feb. 29, 2016USD ($)$ / sharesshares | Feb. 29, 2016USD ($)$ / sharesshares | Feb. 29, 2016GBP (£) | Feb. 28, 2015USD ($) | Feb. 28, 2014USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||
Investment in LoJack common stock | $ 5,466,000 | $ 5,466,000 | |||
Deferred compensation plan assets | 3,370,000 | 3,370,000 | $ 2,222,000 | ||
Equity investment in U.K. affiliate | 1,167,000 | 1,167,000 | |||
Other | 637,000 | 637,000 | $ 915,000 | ||
Total | 10,640,000 | 10,640,000 | $ 3,137,000 | ||
Unrealized gain on investment in LoJack common stock | 1,400,000 | 1,416,000 | |||
Deferred compensation plan liabilities | $ 3,392,000 | 3,392,000 | $ 2,246,000 | ||
Investment in equity method investment | 2,156,000 | ||||
Equity in net loss of affiliate | (829,000) | ||||
Foreign currency cumulative translation adjustment | $ (161,000) | ||||
LoJack [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment Owned, Balance, Shares | shares | 850,100 | 850,100 | |||
Investment, Average Purchase Price | $ / shares | $ 4.76 | ||||
Share Price | $ / shares | $ 6.43 | $ 6.43 | |||
Unrealized gain on investment in LoJack common stock | $ 1,400,000 | ||||
Smart Driver Club Limited [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in equity method investment | 2,156,000 | £ 1,400,000 | |||
Equity in net loss of affiliate | (829,000) | ||||
Foreign currency cumulative translation adjustment | $ (161,000) | ||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% |
FINANCING ARRANGEMENTS AND CO49
FINANCING ARRANGEMENTS AND CONTRACTUAL CASH OBLIGATIONS (Bank Credit Facility) (Details) - Line of Credit [Member] $ in Millions | 12 Months Ended |
Feb. 29, 2016USD ($) | |
Bank Credit Facility | |
Maximum borrowing capacity | $ 15 |
Maximum borrowing capacity, percent of eligible accounts receivable | 85.00% |
Maturity date | Mar. 1, 2017 |
FINANCING ARRANGEMENTS AND CO50
FINANCING ARRANGEMENTS AND CONTRACTUAL CASH OBLIGATIONS (Long-term Debt) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | ||
May. 31, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Debt Instrument [Line Items] | ||||
Issuance costs attributable to the liability component | $ 5,291 | |||
Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 172,500 | $ 172,500 | ||
Interest rate (as a percent) | 1.625% | 1.625% | ||
Net proceeds from sale of the Notes | $ 167,200 | |||
Unamortized issuance costs | 5,300 | $ 3,698 | ||
Net proceeds used to pay the cost of the convertible note hedge transactions | 15,400 | |||
Maturity date | May 15, 2020 | |||
Conversion rate of shares of common stock | 36.2398 | |||
Conversion price (in dollars per share) | $ 27.594 | |||
Percentage of repurchase price of the principal amount | 100.00% | |||
Maximum number of shares of common stock that could be issued, following certain corporate events that occur prior to maturity | 2.5 | |||
Discount rate (as a percent) | 6.20% | |||
Conversion premium | $ 33,600 | |||
Debt discount to be amortized | 33,600 | $ 29,002 | ||
Effective interest rate | 6.20% | |||
Deferred tax asset related to notes issuance | $ 400 | |||
Equity component of issuance costs | 1,000 | |||
Fair value of the Notes | $ 138,900 | 164,000 | ||
Deferred tax effect of conversion feature | 16,000 | |||
Issuance costs attributable to the liability component | $ 4,300 | |||
Debt Instrument, Covenant Description | The Indenture contains customary terms and conditions, including that upon certain events of default occurring and continuing, either the Trustee or the holders of at least 25% in aggregate principal amount of the then outstanding Notes, by notice to the Company and the Trustee, may declare 100% of the principal amount of, and accrued and unpaid interest, if any, on all the Notes then outstanding to be due and payable immediately. Such events of default include, without limitation, the default by the Company or any of its subsidiaries with respect to indebtedness for borrowed money in excess of $10 million and the entry of judgments for the payment of $10 million or more against the Company or any of its subsidiaries which are not paid, discharged or stayed within 60 days. |
FINANCING ARRANGEMENTS AND CO51
FINANCING ARRANGEMENTS AND CONTRACTUAL CASH OBLIGATIONS (Schedule of Balances Attributable to Notes) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
May. 31, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | |
Liability component: | |||
1.625% convertible senior unsecured notes | $ 139,800 | ||
Convertible Senior Notes [Member] | |||
Liability component: | |||
Term loan amount | $ 172,500 | 172,500 | |
Less: Unamortized debt discount | (33,600) | (29,002) | |
Unamortized debt issuance costs | $ (5,300) | (3,698) | |
1.625% convertible senior unsecured notes | $ 139,800 |
FINANCING ARRANGEMENTS AND CO52
FINANCING ARRANGEMENTS AND CONTRACTUAL CASH OBLIGATIONS (Note Hedge and Warrant Arrangements) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Apr. 30, 2015 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 |
Debt Instrument [Line Items] | ||||
Purchase of note hedges, net of tax | $ (19,324) | |||
Proceeds from issuance of warrants | $ 15,991 | |||
Warrant [Member] | ||||
Debt Instrument [Line Items] | ||||
Strike price of underlie convertible notes (in dollars per share) | $ 39.42 | |||
Percentage of premium on sale price of common stock | 100.00% | |||
Share price (in dollars per share) | $ 19.71 | |||
Note Hedge [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of common stock with hedge transactions | 6,250 | |||
Debt Instrument, Face Amount | $ 172,500 | |||
Payments for notes hedges | 31,300 | |||
Purchase of note hedges, net of tax | $ 19,300 | |||
Conversion price for the Notes | $ 27.594 | |||
Issue discount interest deductible for income tax purposes | $ 31,300 | |||
Deferred tax asset | $ 12,000 |
FINANCING ARRANGEMENTS AND CO53
FINANCING ARRANGEMENTS AND CONTRACTUAL CASH OBLIGATIONS (Contractual Cash Obligations) (Details) - USD ($) | 12 Months Ended | |||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | May. 31, 2015 | |
Operating leases | ||||
2,017 | $ 2,237,000 | |||
2,018 | 1,867,000 | |||
2,019 | 1,498,000 | |||
2,020 | 819,000 | |||
2,021 | 129,000 | |||
Total | 6,550,000 | |||
Purchase obligations | ||||
2,017 | $ 39,768,000 | |||
2,018 | ||||
2,019 | ||||
2,020 | ||||
2,021 | ||||
Total | $ 39,768,000 | |||
Total contractual obligations | ||||
2,017 | 48,278,000 | |||
2,018 | 4,670,000 | |||
2,019 | 4,301,000 | |||
2,020 | 3,622,000 | |||
2,021 | 174,031,000 | |||
Total | 234,902,000 | |||
Rent expense under operating leases | 2,179,000 | $ 2,146,000 | $ 1,886,000 | |
Other Contractual Commitments [Member] | ||||
Commitments | ||||
2,017 | $ 3,470,000 | |||
2,018 | ||||
2,019 | ||||
2,020 | ||||
2,021 | ||||
Total | $ 3,470,000 | |||
Convertible Senior Notes [Member] | ||||
Debt | ||||
2,017 | ||||
2,018 | ||||
2,019 | ||||
2,020 | ||||
2,021 | $ 172,500,000 | |||
Total | 172,500,000 | $ 172,500,000 | ||
Commitments | ||||
2,017 | 2,803,000 | |||
2,018 | 2,803,000 | |||
2,019 | 2,803,000 | |||
2,020 | 2,803,000 | |||
2,021 | 1,402,000 | |||
Total | $ 12,614,000 |
INCOME TAXES (Income Before Inc
INCOME TAXES (Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
INCOME TAXES [Abstract] | |||
Domestic | $ 22,461 | $ 24,684 | $ 17,185 |
Foreign | (120) | 116 | 726 |
Income before income taxes and equity in net loss of affiliate | $ 22,341 | $ 24,800 | $ 17,911 |
INCOME TAXES (Income Tax Benefi
INCOME TAXES (Income Tax Benefit (Provision)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Current: | ||||
Federal | $ (182) | |||
State | (208) | $ (325) | $ (42) | |
Foreign | (60) | (49) | (45) | |
Total current | (450) | (374) | (87) | |
Deferred: | ||||
Federal | (4,331) | (8,134) | (6,346) | |
State | 209 | 216 | 325 | |
Total deferred | (4,122) | (7,918) | (6,021) | |
Total income tax provision | $ 2,400 | $ (4,572) | $ (8,292) | $ (6,108) |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Income Tax Benefit (Provision)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
INCOME TAXES [Abstract] | ||||
Income tax provision at U.S. statutory federal rate of 35% | $ (7,819) | $ (8,680) | $ (6,269) | |
U.S. statutory federal rate | 35.00% | |||
State income tax provision, net of federal income tax effect | $ (833) | (867) | (770) | |
Foreign taxes | (102) | 41 | 209 | |
Valuation allowance reductions (increases) | 2,541 | 250 | (865) | |
Research and development tax credits | 1,008 | 1,556 | 1,126 | |
Other, net | 633 | (592) | 461 | |
Total income tax provision | $ 2,400 | $ (4,572) | $ (8,292) | $ (6,108) |
INCOME TAXES (Deferred Tax Asse
INCOME TAXES (Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Feb. 28, 2015 |
INCOME TAXES [Abstract] | ||
Net operating loss carryforwards | $ 10,660 | $ 20,318 |
Depreciation, amortization and impairments | 1,598 | 1,785 |
Research and development credits | 9,747 | 8,738 |
Stock-based compensation | 2,383 | 1,869 |
Other tax credits | 917 | 635 |
Inventory reserve | 502 | 484 |
Warranty reserve | 752 | 697 |
Payroll and employee benefit accruals | 2,421 | 1,797 |
Allowance for doubtful accounts | 241 | 258 |
Other accured liabilities | 2,694 | 2,158 |
Other, net | (84) | 242 |
Gross deferred tax assets | 31,831 | 38,981 |
Valuation allowance | (1,618) | (4,159) |
Net deferred tax assets | $ 30,213 | $ 34,822 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
INCOME TAXES [Abstract] | |||
Excess tax deductions from share-based payment arrangements | $ 4.5 | $ 6.5 | $ 12.8 |
Unrecognized tax benefit from uncertain tax position related to federal research and development tax credits | 1 | ||
Change in valuation allowance | (2.5) | ||
Foreign deferred tax assets | $ 3.1 | ||
Valuation allowance percentage | 100.00% | ||
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | $ 53 | ||
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | 6.7 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards | 65 | ||
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | $ 6.3 |
INCOME TAXES (Unrecognized Tax
INCOME TAXES (Unrecognized Tax Benefits for Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
INCOME TAXES [Abstract] | |||
Unrecognized tax benefits, Balance | $ 1,029 | $ 1,029 | $ 1,089 |
Change in fiscal year | (60) | ||
Unrecognized tax benefits, Balance | $ 1,029 | $ 1,029 | $ 1,029 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested restricted stock and RSUs retained to cover the the minimum required statutory amount of withholding taxes (Shares) | 147,335 | 175,176 | 203,383 |
Unrecognized share-based compensation cost | $ 13,400,000 | ||
Unrecognized compensation cost, recognition period | 2 years 8 months 12 days | ||
Shares available for grant | 2,025,714 | ||
Proceeds from option exercises | $ 1,283,000 | $ 718,000 | $ 3,928,000 |
Aggregate fair value of options exercised and vested restricted stock-based awards | 9,078,000 | 9,900,000 | 17,532,000 |
Excess tax deductions from option exercises and vested restricted stock-based awards | $ 4,531,000 | $ 6,515,000 | $ 12,781,000 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Vesting period | 4 years | ||
Weighted average fair value of stock options granted | $ 9.39 | $ 11.02 | $ 9.43 |
Weighted average remaining contractual term of outstanding options | 4 years 8 months 12 days | ||
Aggregate intrinsic value of outstanding options | $ 9,700,000 | ||
Weighted average remaining contractual term of exercisable options | 3 years 8 months 12 days | ||
Aggregate intrinsic value of exercisable options | $ 9,400,000 | ||
Options exercised upon net share settlement | 62,899 | ||
Options retained by the company to cover option exercise price | 37,417 | ||
Restricted Stock Units (Rsus) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of units granted to non-employee directors | 20,000 | ||
Vesting period | 12 months |
STOCKHOLDERS' EQUITY (Summary o
STOCKHOLDERS' EQUITY (Summary of Stock Option Activity) (Details) - Employee Stock Option [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Number of Options | |||
Outstanding, beginning balance | 1,007 | 1,093 | 1,656 |
Granted | 82 | 61 | 56 |
Exercised | (228) | (143) | (611) |
Forfeited or expired | (1) | (4) | (8) |
Outstanding, ending balance | 860 | 1,007 | 1,093 |
Exercisable | 688 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning balance | $ 5.80 | $ 5.04 | $ 5.53 |
Granted | 17.54 | 17.47 | 15.14 |
Exercised | 5.62 | 5.01 | 7.28 |
Forfeited or expired | 1.80 | 6.88 | 4.53 |
Outstanding, ending balance | 6.96 | $ 5.80 | $ 5.04 |
Exercisable | $ 4.66 |
STOCKHOLDERS' EQUITY (Fair Valu
STOCKHOLDERS' EQUITY (Fair Value Assumptions) (Details) - Employee Stock Option [Member] | 12 Months Ended | |||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life (years) | [1] | 6 years | 6 years | 6 years |
Expected volatility | [2] | 56.00% | 70.00% | 69.00% |
Risk-free interest rates | [3] | 1.80% | 1.90% | 1.70% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
[1] | The expected life of stock options is estimated based on historical experience. | |||
[2] | The expected volatility is estimated based on historical volatility of the Company's stock price. | |||
[3] | Based on the U.S. Treasury constant maturity interest rate whose term is consistent with the expected life of the stock options. |
STOCKHOLDERS' EQUITY (Summary63
STOCKHOLDERS' EQUITY (Summary of Restricted Stock Shares and RSUs Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Number of Restricted Shares, PSUs and RSUs | |||
Outstanding, beginning balance | 886 | 1,024 | 1,338 |
Granted | 517 | 365 | 312 |
Vested | (407) | (471) | (592) |
Forfeited | (43) | (32) | (34) |
Outstanding, ending balance | 953 | 886 | 1,024 |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning balance | $ 12.90 | $ 8.02 | $ 4.40 |
Granted | 17.75 | 17.92 | 15.58 |
Vested | 9.97 | 6.28 | 3.83 |
Forfeited | 15.55 | 11.69 | 7.88 |
Outstanding, ending balance | $ 16.66 | $ 12.90 | $ 8.02 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of Stock-based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 5,854 | $ 4,100 | $ 2,924 |
Cost of revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 229 | 241 | 191 |
Research and development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 781 | 613 | 516 |
Selling [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 1,208 | 591 | 360 |
General and administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 3,636 | $ 2,655 | $ 1,857 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
EARNINGS PER SHARE [Abstract] | |||||||||||
Net income | $ 5,506 | $ 3,876 | $ 3,499 | $ 4,059 | $ 6,516 | $ 4,021 | $ 3,278 | $ 2,693 | $ 16,940 | $ 16,508 | $ 11,803 |
Basic weighted average number of common shares outstanding | 36,448,000 | 35,784,000 | 34,969,000 | ||||||||
Effect of stock options and restricted stock units computed on treasury stock method | 502,000 | 746,000 | 1,054,000 | ||||||||
Diluted weighted average number of common shares outstanding | 36,950,000 | 36,530,000 | 36,023,000 | ||||||||
Basic | $ 0.46 | $ 0.46 | $ 0.34 | ||||||||
Diluted | $ 0.15 | $ 0.10 | $ 0.10 | $ 0.11 | $ 0.18 | $ 0.11 | $ 0.09 | $ 0.07 | $ 0.46 | $ 0.45 | $ 0.33 |
Shares subject to anti-dilutive stock options and restricted stock-based awards excluded from calculation | 199,000 | 159,000 | 57,000 | ||||||||
Convertible Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Conversion price (in dollars per share) | $ 27.594 | $ 27.594 |
EMPLOYEE RETIREMENT PLANS (Deta
EMPLOYEE RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
EMPLOYEE RETIREMENT PLANS [Abstract] | |||
Matching contributions made by company to 401(k) plan | $ 1,169,000 | $ 1,059,000 | $ 733,000 |
US Plan [Member] | Defined Contribution Plan Threshold One [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percent of employee contribution matched by the Company | 100.00% | ||
Percent of employee compensation contributed | 3.00% | ||
US Plan [Member] | Defined Contribution Plan Threshold Two [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percent of employee contribution matched by the Company | 50.00% | ||
Percent of employee compensation contributed | 2.00% | ||
New Zealand Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percent of employee compensation contributed | 3.00% |
OTHER FINANCIAL INFORMATION (Sc
OTHER FINANCIAL INFORMATION (Schedule of Other Non-Current Liabilities) (Details) - USD ($) $ in Thousands | Feb. 29, 2016 | Feb. 28, 2015 |
OTHER FINANCIAL INFORMATION [Abstract] | ||
Deferred compensation plan liability | $ 3,392 | $ 2,246 |
Deferred revenue | 1,070 | 1,652 |
Deferred rent | 559 | $ 329 |
Acquisition-related contingent consideration | 530 | |
Total other non-current liabilities | $ 5,551 | $ 4,227 |
OTHER FINANCIAL INFORMATION (68
OTHER FINANCIAL INFORMATION (Schedule of Investment Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
OTHER FINANCIAL INFORMATION [Abstract] | ||||
Investment income on cash equivalents and marketable securities | $ 814 | $ 58 | $ 42 | |
Investment income (loss) on Rabbi Trust assets | (359) | $ 166 | ||
Unrealized gain on investment in LoJack common stock | $ 1,400 | 1,416 | ||
Total investment income | $ 1,871 | $ 224 | $ 42 |
OTHER FINANCIAL INFORMATION (69
OTHER FINANCIAL INFORMATION (Schedule of Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | May. 31, 2015 | |
Interest expense on convertible senior unsecured notes: | ||||
Stated interest at 1.625% per annum | $ 2,268 | |||
Amortization of note discount | 4,613 | |||
Amortization of debt issue costs | 588 | |||
Interest expense on convertible notes | 7,469 | |||
Other interest expense | 126 | $ 296 | $ 407 | |
Total interest expense | $ 7,595 | $ 296 | $ 407 | |
Convertible Senior Notes [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Interest rate (as a percent) | 1.625% | 1.625% |
OTHER FINANCIAL INFORMATION (70
OTHER FINANCIAL INFORMATION (Schedule of Cash Payments for Interest and Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
OTHER FINANCIAL INFORMATION [Abstract] | |||
Interest expense paid | $ 1,512 | $ 12 | $ 117 |
Income tax paid | $ 451 | $ 347 | $ 35 |
OTHER FINANCIAL INFORMATION (71
OTHER FINANCIAL INFORMATION (Schedule of Non-cash Investing and Financing Activities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Acquisition of Crashboxx in April 2015: | |||
Accrued liability for earn-out consideration | $ 455 |
OTHER FINANCIAL INFORMATION (72
OTHER FINANCIAL INFORMATION (Schedule of Valuation and Qualifying Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | $ 673 | $ 761 | $ 461 |
Charged (credited) to costs and expenses | 170 | 188 | 353 |
Deductions | (221) | (276) | (53) |
Balance at end of period year | 622 | 673 | 761 |
Warranty Reserve [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | 1,819 | 1,516 | 1,328 |
Charged (credited) to costs and expenses | 1,015 | 1,333 | 881 |
Deductions | (942) | (1,030) | (693) |
Balance at end of period year | 1,892 | 1,819 | 1,516 |
Deferred Tax Assets Valuation Allowance [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of year | $ 4,159 | 4,849 | 3,959 |
Charged (credited) to costs and expenses | 150 | $ 890 | |
Deductions | $ (2,541) | (840) | |
Balance at end of period year | $ 1,618 | $ 4,159 | $ 4,849 |
LEGAL PROCEEDINGS (Details)
LEGAL PROCEEDINGS (Details) $ in Millions | Feb. 24, 2016USD ($) |
LEGAL PROCEEDINGS [Abstract] | |
Damages awarded | $ 2.9 |
SEGMENT AND GEOGRAPHIC DATA (De
SEGMENT AND GEOGRAPHIC DATA (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 70,807 | $ 74,675 | $ 69,808 | $ 65,429 | $ 69,190 | $ 63,225 | $ 59,210 | $ 58,981 | $ 280,719 | $ 250,606 | $ 235,903 |
Gross profit | $ 27,556 | $ 26,574 | $ 25,303 | $ 23,526 | $ 24,585 | $ 22,104 | $ 20,496 | $ 20,219 | $ 102,959 | $ 87,404 | $ 79,931 |
Gross margin | 38.90% | 35.60% | 36.20% | 36.00% | 35.50% | 35.00% | 34.60% | 34.30% | 36.70% | 34.90% | 33.90% |
Operating income | $ 28,085 | $ 24,940 | $ 18,343 | ||||||||
United States [Member] | Sales Revenue, Net [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration percentage | 83.00% | 79.00% | 81.00% | ||||||||
Operating Segments [Member] | Wireless Datacom [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 241,387 | $ 213,119 | $ 187,012 | ||||||||
Gross profit | $ 91,976 | $ 77,899 | $ 70,114 | ||||||||
Gross margin | 38.10% | 36.60% | 37.50% | ||||||||
Operating income | $ 28,148 | $ 23,833 | $ 16,324 | ||||||||
Operating Segments [Member] | Satellite [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 39,332 | 37,487 | 48,891 | ||||||||
Gross profit | $ 10,983 | $ 9,505 | $ 9,817 | ||||||||
Gross margin | 27.90% | 25.40% | 20.10% | ||||||||
Operating income | $ 6,417 | $ 5,017 | $ 5,642 | ||||||||
Corporate Expenses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | $ (6,480) | $ (3,910) | $ (3,623) |
QUARTERLY FINANCIAL INFORMATI75
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 29, 2016 | Nov. 30, 2015 | Aug. 31, 2015 | May. 31, 2015 | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | May. 31, 2014 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) [Abstract] | |||||||||||
Revenues | $ 70,807 | $ 74,675 | $ 69,808 | $ 65,429 | $ 69,190 | $ 63,225 | $ 59,210 | $ 58,981 | $ 280,719 | $ 250,606 | $ 235,903 |
Gross profit | $ 27,556 | $ 26,574 | $ 25,303 | $ 23,526 | $ 24,585 | $ 22,104 | $ 20,496 | $ 20,219 | $ 102,959 | $ 87,404 | $ 79,931 |
Gross margin | 38.90% | 35.60% | 36.20% | 36.00% | 35.50% | 35.00% | 34.60% | 34.30% | 36.70% | 34.90% | 33.90% |
Net income | $ 5,506 | $ 3,876 | $ 3,499 | $ 4,059 | $ 6,516 | $ 4,021 | $ 3,278 | $ 2,693 | $ 16,940 | $ 16,508 | $ 11,803 |
Earnings per diluted share | $ 0.15 | $ 0.10 | $ 0.10 | $ 0.11 | $ 0.18 | $ 0.11 | $ 0.09 | $ 0.07 | $ 0.46 | $ 0.45 | $ 0.33 |
Acquisition expenses | $ 2,000 | ||||||||||
Unrealized gain on investment in LoJack common stock | 1,400 | $ 1,416 | |||||||||
Litigation provision | (2,900) | ||||||||||
Income tax expense (benefit) | $ (2,400) | $ 4,572 | $ 8,292 | $ 6,108 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - LoJack Corporation [Member] - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | ||
Mar. 18, 2016 | Mar. 15, 2016 | Feb. 29, 2016 | |
Subsequent Event [Line Items] | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | $ 5.5 | ||
Investment Owned, Balance, Shares | 850,100 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Share price | $ 6.45 | $ 6.45 | |
Purchase price | $ 130.7 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 80.20% |