Segment Reporting

3 Months Ended

Jul. 31, 2011

Segment Reporting [Abstract]

Segment Reporting

(17) Segment Reporting:

We have two reportable segments: firearms and security solutions. The firearm segment consists of products and services manufactured and sold from our Springfield, Massachusetts; Houlton, Maine; and Rochester, New Hampshire facilities, which includes primarily firearms, handcuffs, and related accessories sold through a distribution chain and direct sales to consumers and international, state, and federal governments. The security solutions segment consists of products and services produced and sold from our Franklin, Tennessee facilities, which includes the sales and installation of perimeter security products to military, government, and corporate customers. Operating costs are reported based on the activities performed within each segment.

Segment assets are those directly used in or clearly allocable to an operating segment’s operations. For both segments, assets include accounts receivable, inventory, prepaid expenses, deferred tax assets, machinery and equipment, furniture and fixtures, and computer equipment. In addition, included in the assets of the firearm segment are intangible assets totaling $4.9 million and property, plant, and equipment totaling $61.9 million. Included in the assets of the security solutions segment are intangible assets totaling $3.6 million and property, plant, and equipment totaling $1.6 million.

Results by business segment are presented in the following table for the three months ended July 31, 2011 and 2010, respectively (dollars in thousands):

	For the three months ended July 31, 2011									For the three months ended July 31, 2010
				Security									Security
	Firearms			Solutions			Total			Firearms			Solutions			Total
Net product and services sales to external customers	$	91,730		$	7,461		$	99,191		$	77,763		$	17,121		$	94,884
Operating income/(loss)		5,533			(2,381	)		3,152			6,923			(318	)		6,605
As a percentage of revenue		6.0	%		-31.9	%		3.2	%		8.9	%		-1.9	%		7.0	%
Depreciation and amortization		3,629			327			3,956			2,871			537			3,408
Stock based compensation		512			75			587			427			141			568
Income tax expense/(benefit)		1,749			(1,212	)		537			2,751			(369	)		2,382
Assets		251,218			21,754			272,972			221,147			121,954			343,101
Expenditures for property, plant and equipment		4,730			372			5,102			1,964			76			2,040