2.4.0.8060500 - Disclosure - RELATED PARTY TRANSACTIONStruefalsefalse1false falsefalsec20120501to20130430http://www.sec.gov/CIK0000354813duration2012-05-01T00:00:002013-04-30T00:00:001true 1us-gaap_RelatedPartyTransactionsAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0RELATED PARTY TRANSACTIONS [Abstract]2false 2us-gaap_RelatedPartyTransactionsDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1falsefalsefalse00<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; font-size: 10pt;">5. RELATED PARTY TRANSACTIONS</div><div style="text-indent: 0pt; display: block;"><br /></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">During the years ended April 30, 2013 and 2012, revenues from all related party agreements for sales of products and services totaled approximately $4.2 million (40% of total revenue) and $6.1 million (51% of total revenue), respectively. Included in accounts receivable at April 30, 2013 and 2012 was $411,000 and $189,000, respectively, from these customers. Descriptions of the transactions with the Company's related parties in the years ended April 30, 2013 and 2012 are presented below.</div><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;">&#160;</div></div><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">Berjaya Lottery Management (H.K.) Ltd.</div><div style="text-indent: 0pt; display: block;"><br /></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">In 1996, the Company entered into an agreement to purchase specific inventory on behalf of Berjaya Lottery Management (H.K.) Ltd. ("BLM"), the owner of 71.3% of ILTS's outstanding voting stock as of April 30, 2013. </div><div style="text-indent: 0pt; display: block;"><br /></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">Over time, the Company has sold or used portions of the BLM inventory in unrelated third-party transactions. The sale or use of the inventory resulted in a liability to BLM for the cost of the items utilized.</div><div style="text-indent: 0pt; display: block;"><br /></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">The financial activities and balances related to BLM were as follows:</div><div style="text-indent: 0pt; display: block;"><br /></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt;"><tr valign="top"><td align="right" style="width: 36pt;"><div style="display: inline; font-family: Symbol, serif; font-size: 10pt;">&#183; </div></td><td><div style="text-align: justify; text-indent: 0pt; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">There were no related party sales to BLM in the years ended April 30, 2013 and 2012;</div></td></tr></table></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt;"><tr valign="top"><td align="right" style="width: 36pt;"><div style="display: inline; font-family: Symbol, serif; font-size: 10pt;">&#183; </div></td><td><div style="text-align: justify; text-indent: 0pt; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">There were no accounts receivable balances from BLM at April 30, 2013 and 2012;</div></td></tr></table></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt;"><tr valign="top"><td align="right" style="width: 36pt;"><div style="display: inline; font-family: Symbol, serif; font-size: 10pt;">&#183; </div></td><td><div style="text-align: justify; text-indent: 0pt; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">Liabilities to BLM arising from the sale or use of the BLM inventory, recorded as "Payable to Parent," were $202,000 and $252,000 as of April 30, 2013 and 2012, respectively; and</div></td></tr></table></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt;"><tr valign="top"><td align="right" style="width: 36pt;"><div style="display: inline; font-family: Symbol, serif; font-size: 10pt;">&#183; </div></td><td><div style="text-align: justify; text-indent: 0pt; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">There were no inventory balances held for BLM as of April 30, 2013 and 2012.</div></td></tr></table></div></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">&#160;</div></div><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">Sports Toto Malaysia Sdn. Bhd.</div><div style="text-indent: 0pt; display: block;"><br /></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">The Company provides lottery products, software development and software support services to Sports Toto Malaysia ("STM"), an affiliate of BLM and a related party. </div><div style="text-indent: 0pt; display: block;"><br /></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">In December 2011, the Company signed a contract with STM for a complete DataTrakII lottery system valued at approximately $4.3 million. The contract was completed in fiscal 2013 and the related revenue was recognized accordingly.</div><div style="text-indent: 0pt; display: block;"><br /></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">In January 2013, the Company received from STM, an order valued at approximately $11 million for lottery products. Shipments of these products are to begin and be completed in fiscal 2014.</div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">&#160;</div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">The financial activities and balances related to transactions with STM were as follows:</div><div style="text-indent: 0pt; display: block;"><br /></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt;"><tr valign="top"><td align="right" style="width: 36pt;"><div style="display: inline; font-family: Symbol, serif; font-size: 10pt;">&#183; </div></td><td><div style="text-align: justify; text-indent: 0pt; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">Revenue recognized on the performance of contract deliverables and sale of support services totaled approximately $3 million during the year ended April 30, 2013, compared to $2 million in fiscal 2012;</div></td></tr></table></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt;"><tr valign="top"><td align="right" style="width: 36pt;"><div style="display: inline; font-family: Symbol, serif; font-size: 10pt;">&#183; </div></td><td><div style="text-align: justify; text-indent: 0pt; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">There was no net billings in excess of costs and estimated earnings balance as of April 30, 2013. Net cost and estimated earnings in excess of billings related to the abovementioned contract received in 2011 totaled approximately $726,000 as of April 30, 2012;</div></td></tr></table></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt;"><tr valign="top"><td align="right" style="width: 36pt;"><div style="display: inline; font-family: Symbol, serif; font-size: 10pt;">&#183; </div></td><td><div style="text-align: justify; text-indent: 0pt; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">The deferred revenue balance in connection with the lottery product order received in December 2011 and software support services totaled approximately $3.3 million as of April 30, 2013. The deferred revenue balance was $9,000 as of April 30, 2012 related to software support services; and</div></td></tr></table></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt;"><tr valign="top"><td align="right" style="width: 36pt;"><div style="display: inline; font-family: Symbol, serif; font-size: 10pt;">&#183; </div></td><td><div style="text-align: justify; text-indent: 0pt; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">Accounts receivable balance from STM totaled $410,000 as of April 30, 2013. There was no accounts receivable balance as of April 30, 2012.</div></td></tr></table></div><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div style="text-indent: 0pt; display: block; font-weight: bold;">&#160;</div><div style="text-indent: 0pt; display: block;"><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">Philippine Gaming Management Corporation</div><div style="text-align: center; text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;"><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; font-weight: bold; margin-right: 0pt;">&#160;</div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; font-weight: normal; margin-right: 0pt;">In December 2011, the Company received from Philippine Gaming Management Corporation ("PGMC"), a related party and a subsidiary of BLM, an order valued at approximately $1.1 million for lottery products. Shipments of these products were completed in fiscal 2013 and the related revenue was recognized accordingly.</div><div style="text-indent: 0pt; display: block; font-weight: normal;"><br /></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; font-weight: normal; margin-right: 0pt;">In addition, the Company provides PGMC with terminal spare parts on an ongoing basis and support services on an as-needed basis.</div><div style="text-indent: 0pt; display: block; font-weight: normal;"><br /></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; font-weight: normal; margin-right: 0pt;">The financial activities and balances related to transactions with PGMC were as follows:</div><div style="text-indent: 0pt; display: block; font-weight: normal;"><br /></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt;"><tr valign="top"><td align="right" style="width: 36pt;"><div style="display: inline; font-family: Symbol, serif; font-size: 10pt;">&#183; </div></td><td><div style="text-align: justify; text-indent: 0pt; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">Revenues recognized on the sale of lottery products and support services totaled approximately $1.1 million during the year ended April 30, 2013. 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The deferred revenue balance in connection with the lottery product order received in December 2011 mentioned above totaled approximately $264,000 as of April 30, 2012; and</div></td></tr></table></div><div><table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 10pt;"><tr valign="top"><td align="right" style="width: 36pt;"><div style="display: inline; font-family: Symbol, serif; font-size: 10pt;">&#183; </div></td><td><div style="text-align: justify; text-indent: 0pt; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">There was no accounts receivable balance as of April 30, 2013. Accounts receivable totaled $189,000 as of April 30, 2012. </div></td></tr></table></div></div></div></div><div style="text-align: left; text-indent: 0pt; display: block; margin-left: 0pt; font-weight: bold; margin-right: 0pt;">&#160;</div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">Natural Avenue Sdn. Bhd.</div></div><div style="text-indent: 0pt; display: block;"><br /></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">The Company provides Natural Avenue Sdn. Bhd. 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There was no accounts receivable balance from Natural Avenue as of April 30, 2012.</div></td></tr></table></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">&#160;</div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; font-weight: bold; margin-right: 0pt;">Sports Toto Computers Sdn. Bhd.</div><div style="text-indent: 0pt; display: block;"><br /></div><div style="text-align: left; text-indent: 0pt; display: block; font-family: Times New Roman; margin-left: 0pt; font-size: 10pt; margin-right: 0pt;">The Company engages Sports Toto Computers Sdn. Bhd. 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