v2.3.0.11
Document and Entity Information
In Thousands
6 Months Ended
Oct. 31, 2011
Dec. 01, 2011
Document Information [Line Items]
Document Type 10-Q
Amendment Flag false
Document Period End Date Oct. 31, 2011
Document Fiscal Period Focus Q2
Document Fiscal Year Focus 2012
Entity Registrant Name FLOW INTERNATIONAL CORP
Entity Central Index Key 0000713002
Current Fiscal Year End Date --04-30
Entity Filer Category Accelerated Filer
Entity Common Stock, Shares Outstanding 47,856,579
v2.3.0.11
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands
Oct. 31, 2011
Apr. 30, 2011
Current Assets:
Cash and Cash Equivalents $ 9,618 $ 9,096
Restricted Cash 1,432 1,766
Receivables, net 47,610 47,082
Inventories, net 33,376 28,609
Other Current Assets 10,231 11,539
Total Current Assets 102,267 98,092
Property and Equipment, net 18,337 19,104
Intangible Assets, net 4,909 4,738
Deferred Income Taxes, net 24,751 25,171
Other Long-Term Assets 5,973 5,958
Total Assets 156,237 153,063
Current Liabilities:
Notes Payable 2,350 5,500
Current Portion of Long-Term Obligations 27 25
Accounts Payable 19,805 17,363
Accrued Payroll and Related Liabilities 7,401 7,080
Taxes Payable and Other Accrued Taxes 3,051 2,378
Deferred Revenue and Customer Deposits 12,775 13,317
Other Accrued Liabilities 10,606 11,298
Total Current Liabilities 56,015 56,961
Deferred Income Taxes 5,746 5,711
Subordinated Notes 9,143 8,723
Other Long-Term Liabilities 2,234 2,214
Total Liabilities 73,138 73,609
Commitments and Contingencies    
Shareholders' Equity:
Series A 8% Convertible Preferred Stock, $.01 par value, 1,000 shares authorized; no shares issued and outstanding 0 0
Common Stock, $.01 par value, 84,000 shares authorized; 47,857 and 47,378 shares issued and outstanding 474 469
Capital in Excess of Par 162,768 161,741
Accumulated Deficit (75,631) (79,121)
Accumulated Other Comprehensive Income (Loss):
Defined Benefit Plan Obligation, net of income tax (68) (68)
Cumulative Translation Adjustment, net of income tax (4,444) (3,567)
Total Shareholders' Equity 83,099 79,454
Total Liabilities and Shareholders' Equity $ 156,237 $ 153,063
v2.3.0.11
CONDENSED CONSOLIDATED BALANCE SHEETS Parenthetical (USD $)
Oct. 31, 2011
Apr. 30, 2011
Preferred Stock, stated percentage rate 8.00% 8.00%
Preferred Stock, par value $ 0.01 $ 0.01
Preferred Stock, shares authorized 1,000 1,000
Preferred Stock, shares issued 0 0
Preferred Stock, shares outstanding 0 0
Common Stock, par value $ 0.01 $ 0.01
Common Stock, shares authorized 84,000,000 84,000,000
Common Stock, shares issued 47,857,000 47,378,000
Common Stock, shares outstanding 47,857,000 47,378,000
v2.3.0.11
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data
3 Months Ended 6 Months Ended
Oct. 31, 2011
Oct. 31, 2010
Oct. 31, 2011
Oct. 31, 2010
Sales $ 64,533 $ 52,935 $ 124,563 $ 99,515
Cost of Sales 39,217 33,082 76,127 60,329
Gross Margin 25,316 19,853 48,436 39,186
Operating Expenses:
Sales and Marketing 12,082 10,885 24,778 21,481
Research and Engineering 2,711 2,436 5,367 4,582
General and Administrative 5,361 5,659 11,970 11,617
Total Operating Expenses 20,154 18,980 42,115 37,680
Operating Income 5,162 873 6,321 1,506
Interest Income 9 44 49 65
Interest Expense (309) (437) (620) (850)
Other Income (Expense), net 7 104 (127) 396
Income Before Taxes 4,869 584 5,623 1,117
Provision for Income Taxes (2,138) (804) (2,238) (1,868)
Income (Loss) from Continuing Operations 2,731 (220) 3,385 (751)
Income (Loss) from Discontinued Operations, net of Income Tax of $0, $0, $0 and $0 48 (103) 105 (112)
Net Income (Loss) $ 2,779 $ (323) $ 3,490 $ (863)
Basic and Diluted Income (Loss) Per Share:
Income (Loss) from Continuing Operations $ 0.06 $ (0.01) $ 0.07 $ (0.02)
Discontinued Operations $ 0.00 $ 0.00 $ 0.00 $ 0.00
Net Income (Loss) $ 0.06 $ (0.01) $ 0.07 $ (0.02)
Weighted Average Shares Used in Computing Basic and Diluted Income (Loss) Per Share:
Basic 47,800 47,160 47,666 47,102
Diluted 47,800 47,160 47,666 47,102
v2.3.0.11
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Parenthetical (USD $)
In Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2011
Oct. 31, 2010
Oct. 31, 2011
Oct. 31, 2010
Income Tax effect on Loss from Discontinued Operations $ 0 $ 0 $ 0 $ 0
v2.3.0.11
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands
6 Months Ended
Oct. 31, 2011
Oct. 31, 2010
Cash Flows from Operating Activities:
Net Income (Loss) $ 3,490 $ (863)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities:
Depreciation and Amortization 3,151 3,184
Deferred Income Taxes 1,189 947
Provision for Slow Moving and Obsolete Inventory 258 339
Bad Debt Expense 344 134
Warranty Expense 1,972 1,377
Incentive Stock Compensation Expense 1,198 1,284
Unrealized Foreign Exchange Currency Losses (Gains) 483 (292)
Amortization and Write-off of Deferred Debt Issuance Costs 19 231
Indemnification Charge (105) 112
Interest Accretion on Subordinated Notes 420 372
Other 7 12
Changes in Operating Assets and Liabilities:
Receivables (1,784) (4,245)
Inventories (5,865) (4,478)
Other Operating Assets 136 702
Accounts Payable 2,164 (383)
Accrued Payroll and Related Liabilities 141 696
Deferred Revenue and Customer Deposits (68) 1,718
Other Operating Liabilities (1,195) (876)
Net Cash Provided by (Used in) Operating Activities 5,955 (29)
Cash Flows From Investing Activities:
Expenditures for Property and Equipment (2,023) (800)
Expenditures for Intangible Assets (328) (349)
Proceeds from Sale of Property and Equipment 37 17
Restricted Cash 232 (24)
Net Cash Used in Investing Activities (2,082) (1,156)
Cash Flows From Financing Activities:
Borrowings under Credit Facility 31,200 18,050
Repayments under Credit Facility (34,350) (16,350)
Borrowings Under Other Financing Arrangements 37 0
Repayments Under Other Financing Arrangements (8) (35)
Net Cash Provided by (Used in) Financing Activities (3,121) 1,665
Effect of Changes in Exchange Rates (230) 45
Net Change in Cash And Cash Equivalents 522 525
Cash and Cash Equivalents, Beginning of Period 9,096 6,367
Cash and Cash Equivalents, End of Period 9,618 6,892
Supplemental Disclosures of Cash Flow Information:
Interest 215 186
Income Taxes 931 411
Supplemental Disclosures of Noncash Investing and Financing Activities:
Accounts Payable Incurred to Acquire Property and Equipment, and Intangible Assets $ 560 $ 794
v2.3.0.11
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (LOSS) (USD $)
In Thousands
Total
Common Stock
Capital In Excess of Par
Accumulated Deficit
Accumulated Other Comprehensive Loss
Balances, value at Apr. 30, 2010 $ 75,624 $ 465 $ 159,605 $ (79,887) $ (4,559)
Balances, shares at Apr. 30, 2010 46,927
Components of Comprehensive Income (Loss):
Net Income (Loss) (863)     (863)  
Cumulative Translation Adjustment, Net of Income Tax 655       655
Total Comprehensive Income (Loss) (208)        
Stock Compensation, value 863 2 861    
Stock Compensation, shares 241
Balances, value at Oct. 31, 2010 76,279 467 160,466 (80,750) (3,904)
Balances, shares at Oct. 31, 2010 47,168
Balances, value at Apr. 30, 2011 79,454 469 161,741 (79,121) (3,635)
Balances, shares at Apr. 30, 2011 47,378 47,378
Components of Comprehensive Income (Loss):
Net Income (Loss) 3,490     3,490  
Cumulative Translation Adjustment, Net of Income Tax (877)       (877)
Total Comprehensive Income (Loss) 2,613        
Stock Compensation, value 1,032 5 1,027    
Stock Compensation, shares 479
Balances, value at Oct. 31, 2011 $ 83,099 $ 474 $ 162,768 $ (75,631) $ (4,512)
Balances, shares at Oct. 31, 2011 47,857 47,857
v2.3.0.11
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (LOSS) Parenthetical (USD $)
6 Months Ended
Oct. 31, 2011
Oct. 31, 2010
Other Comprehensive Income, Foreign Currency Translation Adjustment, Tax $ (45,000) $ 3,000
v2.3.0.11
Basis of Presentation
6 Months Ended
Oct. 31, 2011
Basis of Presentation [Abstract]
Basis of Presentation
Basis of Presentation
In the opinion of the management of Flow International Corporation (the “Company”), the accompanying unaudited condensed consolidated financial statements (“financial statements”) are prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) for interim financial information and rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures usually found in financial statements prepared in accordance with GAAP have been condensed or omitted. The unaudited financial statements reflect all adjustments, which in the opinion of management are necessary to fairly state the financial position, results of operations and cash flows for the interim periods presented. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2011.
The preparation of these interim condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amount of assets and liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the Company’s financial statements. Operating results for the three and six months ended October 31, 2011 may not be indicative of future results.

Fair Value of Financial Instruments

The carrying value of the Company’s current assets and liabilities approximate fair values due to the short-term maturity of these assets and liabilities. Nonfinancial assets and liabilities measured on a nonrecurring basis that are included in the Company’s Condensed Consolidated Balance Sheets consist of long-lived assets, including cost-method investments and long-term subordinated notes issued to OMAX Corporation ("OMAX"). Certain of the Company's nonfinancial assets are measured at fair value when impairment indicators exist. Due to significant unobservable inputs, the fair value measures used to evaluate impairment and to calculate a prevailing market interest rate are Level 3 inputs. The carrying amount of these nonfinancial assets measured on a nonrecurring basis approximates fair value unless otherwise disclosed in these financial statements.
v2.3.0.11
Recently Issued Accounting Pronouncements
6 Months Ended
Oct. 31, 2011
Recently Issued Accounting Pronouncements [Abstract]
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements
Recent Accounting Pronouncements Not Yet Adopted
In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2011-05, Comprehensive Income (“or ASU 2011-05”). The new guidance eliminates the current option to report other comprehensive income and its components in the statement of changes in equity.  Instead, an entity will be required to present either a continuous statement of net income and other comprehensive income or two separate but consecutive statements. The new guidance will be effective for the Company beginning in fiscal year 2013. Adoption of the new guidance will not change the components that are reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income, it will only revise the manner in which comprehensive income is presented in the financial statements.
In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement. The FASB issued the new guidance to achieve common fair value measurement and disclosure requirements between U.S. GAAP and International Financial Reporting Standards. This ASU clarifies existing fair value measurement and disclosure requirements, amends certain fair value measurement principles and requires additional disclosures about fair value measurements. This new guidance will be effective for the Company beginning in the fourth quarter of the current fiscal year. Other than requiring additional disclosures, the Company does not anticipate the adoption of this new guidance to have a material impact on the financial statements.
v2.3.0.11
Receivables, Net
6 Months Ended
Oct. 31, 2011
Receivables, Net [Abstract]
Receivables, Net
Receivables, Net
Net receivables as of October 31, 2011 and April 30, 2011 consisted of the following:
 
October 31, 2011
 
April 30, 2011
Trade Accounts Receivable
$
37,910

 
$
37,521

Unbilled Revenues
10,929

 
10,865

 
48,839

 
48,386

Less: Allowance for Doubtful Accounts
(1,229
)
 
(1,304
)
Receivables, net
$
47,610

 
$
47,082

Unbilled revenues do not contain any amounts which are expected to be collected after one year.
v2.3.0.11
Inventories
6 Months Ended
Oct. 31, 2011
Inventories [Abstract]
Inventories
Inventories
Inventories as of October 31, 2011 and April 30, 2011 consisted of the following:
 
October 31, 2011
 
April 30, 2011
Raw Materials and Parts
$
20,345

 
$
18,134

Work in Process
3,321

 
1,945

Finished Goods
9,710

 
8,530

Inventories, net
$
33,376

 
$
28,609

v2.3.0.11
Notes Payable
6 Months Ended
Oct. 31, 2011
Notes Payable [Abstract]
Notes Payable
Notes Payable
Notes payable as of October 31, 2011 and April 30, 2011 consisted of the following:
 
October 31, 2011
 
April 30, 2011
Credit Facility
$
2,350

 
$
5,500

The Company has a $25.0 million Credit Facility that matures March 2, 2014. The agreement requires the Company to maintain the following financial covenants: 
Maximum Consolidated
 
Minimum Fixed Charge
Leverage Ratio (i)
 
Coverage Ratio (ii)
2.75x
 
1.75x
_________________________________
(i)
Defined as the ratio of consolidated indebtedness, excluding the subordinated notes issued to OMAX, to consolidated adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) for the most recent four fiscal quarters.
(ii)
Defined as the ratio of Adjusted EBITDA, less income taxes and maintenance capital expenditures, during the most recent four quarters, to the sum of interest charges during the most recent four quarters and scheduled debt repayments in the next four quarters.

A violation of any of the covenants above would result in an event of default and accelerate the repayment of all unpaid principal and interest and the termination of any letters of credit. The Company was in compliance with all its financial covenants as of October 31, 2011. All of the Company's domestic assets and certain interests in some foreign subsidiaries are pledged as collateral under the three-year Credit Facility Agreement. In addition, the terms of the Credit Facility Agreement limit the Company's ability to pay dividends.

Interest on the Credit Facility is based on the bank’s prime rate or LIBOR rate plus a percentage spread between 0.00% and 2.25% depending on whether it uses the bank’s prime rate or LIBOR rate and based on the Company’s current leverage ratio. The Company also pays an annual letter of credit fee ranging from 1.25% to 2.25% of the amount available to be drawn under each outstanding stand-by letter of credit. The annual letter of credit fee is payable quarterly in arrears and varies depending on the Company's leverage ratio.
 
As of October 31, 2011, the Company had $20.8 million available under its Credit Facility, net of $2.4 million in outstanding borrowings and $1.8 million in outstanding letters of credit.

Revolving Credit Facilities in Taiwan

The Company has two unsecured commitments in Taiwan of $1.3 million and $1.7 million bearing interest at 2.4% and 3.0% per annum, respectively. There were no outstanding balances under the Company’s unsecured Taiwan credit facilities as of October 31, 2011.

v2.3.0.11
Commitments and Contingencies
6 Months Ended
Oct. 31, 2011
Commitments and Contingencies [Abstract]
Commitments and Contingencies
Commitments and Contingencies
Warranty Obligations
The Company believes that its warranty accrual as of October 31, 2011, which is included in the Other Accrued Liabilities line item in the Condensed Consolidated Balance Sheets, is sufficient to cover expected warranty costs. The following table presents the fiscal year 2012 year-to-date activity for the Company’s warranty obligations:
Warranty liability as of April 30, 2011
$
2,804

Increase in warranty liability on fiscal year 2012 sales
1,972

Reduction in warranty liability for claims in fiscal year 2012
(1,907
)
Warranty liability as of October 31, 2011
$
2,869

Legal Proceedings
At any time, the Company may be involved in legal proceedings arising in the normal course of conducting business. The Company's policy is to routinely assess the likelihood of any adverse judgments or outcomes related to legal matters, as well as ranges of probable losses. A determination of the amount of the reserves required, if any, for these contingencies is based on historical experience and after analysis of each known issue. The Company records reserves related to legal matters for which it is probable that a loss has been incurred and the range of such loss can be estimated. With respect to other matters, management has concluded that a loss is only reasonably possible or remote and, therefore, no liability is recorded. Management discloses the facts regarding material matters assessed as reasonably possible and potential exposure, if determinable. Costs incurred defending claims are expensed as incurred. Other than those described below, the Company does not believe that the resolution of any such matters will have a material adverse effect on its consolidated financial position, results of operations or cash flows.

In litigation arising out of a June 2002 incident at a Crucible Metals' (“Crucible”) facility, the Company's excess insurance carrier is contesting its obligation to provide coverage for property damage.  The suits over insurance coverage, Flow Autoclave Systems, Inc., Flow Pressure Systems, ABB Pressure Systems, Avure Technologies AB and Avure Technologies, Inc. v. Lumbermens Mutual Casualty and Kemper Insurance Co., and Lumbermens Mutual Casualty Company v. Flow International Corporation, Flow Autoclave Systems, Inc., Flow Pressure Systems, ABB Pressure Systems, Avure Technologies AB and Avure Technologies, Inc., were originally filed in Supreme Court of the State of New York, County of Onondaga, Index No. 2005-2126 in 2005, and sought a declaratory judgment of the rights of the parties under the insurance policy issued by the carrier. The carrier, Lumbermens Mutual Casualty Company, has settled the claims relating to this incident for a total of approximately $3.4 million and is now seeking a declaratory judgment that it was not obligated to pay the claim, Lumberment Mutual Casualty Company v. Flow International Corporation, Flow Autoclave Systems, Inc., Flow Pressure Systems, ABB Pressure Systems, Avure Technologies AB, Avure Technologies, Inc., Travelers Property Casualty Company of America and Zurich American Insurance Company as subrogees of Crucible Materials Corporation, and Crucible Materials Corporation, filed in United States District Court for the Northern District of New York on August 13, 2008, case number 08-CV-865. The Company intends to vigorously contest the carrier's claim; however, the ultimate outcome or likelihood of this specific claim cannot be determined at this time and an unfavorable outcome ranging from $0 to $3.4 million is reasonably possible.

Other Claims or Assessments

In fiscal year 2009, the Company was notified by the purchaser of its Avure business (reported as a discontinued operation for the year ended April 30, 2006), that the Swedish Tax Authority was conducting an audit which included periods when the Company had owned the business. In the sale agreements, the Company made commitments to indemnify the purchaser for certain claims, including tax matters relating to the periods when it owned the business. The Swedish tax authority concluded its audit and issued a final report in November 2009 initially asserting that Avure owes 19.5 million Swedish Krona in additional taxes, penalties and fines. In April 2010, the Company filed an appeal to contest the Swedish Tax Authority's assertion. Since the filing of the Company's appeal, there has been further correspondence with the Swedish tax authorities as the Company continues to contest the findings. A charge was recorded in the first quarter of fiscal year 2010 related to the periods when the Company owned Avure. This charge was accounted for as an adjustment to the loss on the disposal of the Avure business and is reported as a charge to discontinued operations in the Company's Consolidated Statements of Operations. As of October 31, 2011, the Company has accrued $1.3 million related to the Avure matter. The balance of the accrued liability will fluctuate period over period with changes in foreign currency rates until such time as the matter is ultimately resolved.
v2.3.0.11
Stock-based Compensation
6 Months Ended
Oct. 31, 2011
Stock-based Compensation [Abstract]
Stock-based Compensation
Stock-based Compensation
The Company maintains a stock-based compensation plan (the “2005 Plan”) which was adopted to attract and retain talented employees and promote the growth and success of the business by aligning long-term interests of employees with those of shareholders. Shares are issuable in the form of common stock, restricted stock, performance stock units, stock options, stock appreciation rights, or cash awards.
Stock Options
The following table summarizes stock option activities for the six months ended October 31, 2011:
 
Number of Options
 
Weighted-Average Exercise Price
 
Aggregate Intrinsic Value
 
Weighted-Average Remaining Contractual Term (Years)
Outstanding at April 30, 2011
489,438

 
$
10.37

 
$

 
5.2

Granted

 

 
 
 
 
Exercised

 

 
 
 
 
Expired or forfeited
(61,270
)
 
9.82

 
 
 
 
Outstanding at October 31, 2011
428,168

 
$
10.45

 
$

 
5.4

Vested and Exercisable at October 31, 2011
384,413

 
$
10.53

 
$

 
5.3

There were no options granted or exercised for the respective six months ended October 31, 2011 and 2010.
For the respective six months ended October 31, 2011 and 2010, the Company recognized compensation expense related to stock options of $0.2 million and $0.3 million. As of October 31, 2011, total unrecognized compensation cost related to nonvested stock options was $0.1 million, which is expected to be recognized within the next 12 months.
Service and Performance-Based Stock Awards
The Company grants stock awards to employees and non-employee directors of the Company with service and/or performance conditions. Each non-employee director is eligible to receive and is granted fully vested common stock worth $40,000 annually. The compensation cost of the common stock or restricted stock units are based on their fair value at the grant date and recognized ratably over the service or performance period.
The following table summarizes the service and performance-based stock award activities for employees for the six months ended October 31, 2011:
 
Number of Shares
 
Weighted-Average Grant-date Fair Value
Nonvested at April 30, 2011
1,634,778

 
$
2.90

Granted
720,028

 
3.42

Vested
(381,311
)
 
3.01

Forfeited
(30,685
)
 
2.81

Nonvested at October 31, 2011
1,942,810

 
$
3.08

For the respective six months ended October 31, 2011 and 2010, the Company recognized compensation expense related to service and performance-based stock awards of $1.0 million in each period. As of October 31, 2011, total unrecognized compensation cost related to service and performance-based stock awards of $4.2 million is expected to be recognized over a weighted average period of 2.5 years.
v2.3.0.11
Basic and Diluted Income (Loss) per Share
6 Months Ended
Oct. 31, 2011
Basic and Diluted Income (Loss) per Share [Abstract]
Basic and Diluted Income (Loss) per Share
Basic and Diluted Income (Loss) per Share
Basic income (loss) per share is calculated by dividing income (loss) from continuing operations by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share is calculated by dividing income (loss) from continuing operations by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares include the dilutive effects of outstanding stock options and non-vested stock units except where their inclusion would be antidilutive.
The following table sets forth the computation of basic and diluted income (loss) from continuing operations per share for the respective three and six months ended October 31, 2011 and 2010:
 
Three Months Ended
 
Six Months Ended
 
October 31,
 
October 31,
 
2011
 
2010
 
2011
 
2010
Income (Loss) from Continuing Operations
$
2,731

 
$
(220
)
 
$
3,385

 
$
(751
)
Weighted average shares used in computing basic income (loss) per share
47,800

 
47,160

 
47,666

 
47,102

Dilutive potential common shares from employee stock options and restricted stock units

 

 

 

Weighted average shares used in computing diluted income (loss) per share
47,800

 
47,160

 
47,666

 
47,102

Basic and diluted income (loss) from continuing operations per share
$
0.06

 
$
(0.01
)
 
$
0.07

 
$
(0.02
)
There were 2.4 million and 2.3 million potentially dilutive common shares from employee stock options and restricted stock units which were excluded from the diluted weighted average per share calculation for the respective three and six months ended October 31, 2011 and 2010, as their effect would be antidilutive.
v2.3.0.11
Other Income (Expense), Net
6 Months Ended
Oct. 31, 2011
Other Income (Expense), Net [Abstract]
Other Income (Expense), Net
Other Income (Expense), Net
The following table sets forth the detail of Other Income (Expense), net:
 
Three Months Ended
 
Six Months Ended
 
October 31,
 
October 31,
 
2011
 
2010
 
2011
 
2010
Realized Foreign Exchange Gains (Losses), net
$
92

 
$
186

 
$
347

 
$
89

Unrealized Foreign Exchange Gains (Losses), net
(79
)
 
(76
)
 
(483
)
 
292

Other
(6
)
 
(6
)
 
9

 
15

Other Income (Expense), net
$
7

 
$
104

 
$
(127
)
 
$
396

v2.3.0.11
Income Taxes
6 Months Ended
Oct. 31, 2011
Income Taxes [Abstract]
Income Taxes
Income Taxes

For the three and six months ended October 31, 2011, the Company recorded income tax expense of $2.1 million and $2.2 million compared to income tax expense of $0.8 million and $1.9 million, respectively in the same period last year. For the three and six months ended October 31, 2010, the relationship between income tax expense and income before taxes was not customary as the Company recorded the impact of a $1.9 million repatriation treated as a dividend for income tax purposes and the tax impact of losses from subsidiaries for which a full valuation allowance is maintained.
The Company anticipates generating sufficient future taxable income to realize the benefits of its U.S. and certain of its foreign deferred tax assets while continuing to provide a full valuation allowance against its net operating losses and other net deferred tax assets in certain other foreign tax jurisdictions. The Company's valuation allowance, which was $9.3 million at October 31, 2011 and $9.7 million April 30, 2011, is mainly attributable to foreign net operating losses. Most of the foreign losses can be carried forward indefinitely, with certain amounts expiring between fiscal years 2014 and 2017.

As of October 31, 2011, the Company has not made a provision for U.S. or additional foreign withholding taxes for the excess of the financial reporting carrying value over the tax basis of investments in foreign subsidiaries with the exception of its subsidiaries in Taiwan, Japan, and Switzerland for which it provides deferred taxes.
v2.3.0.11
Segment Information
6 Months Ended
Oct. 31, 2011
Segment Information [Abstract]
Segment Information
Segment Information
The following table sets forth the revenue and gross margin of operations by reportable segment:
 
Three Months Ended
 
Six Months Ended
 
October 31,
 
October 31,
 
2011
 
2010
 
2011
 
2010
Standard Segment:
 
 
 
 
 
 
 
Sales
59,188

 
44,860

 
112,192

 
85,703

Gross Margin
24,203

 
18,619

 
45,850

 
36,076

Advanced Segment:
 
 
 
 
 
 
 
Sales
5,345

 
8,075

 
12,371

 
13,812

Gross Margin
1,113

 
1,234

 
2,586

 
3,110

Total:
 
 
 
 
 
 
 
Sales
64,533

 
52,935

 
124,563

 
99,515

Gross Margin
25,316

 
19,853

 
48,436

 
39,186