Note 5 - Property And Equipment

6 Months Ended

Nov. 30, 2012

Property, Plant and Equipment Disclosure [Text Block]

5.     PROPERTY AND EQUIPMENT

Property and equipment consists of the following (in thousands):

	November 30, 2012			May 31, 2012
Land	$	313		$	301
Buildings and improvements		2,495			2,304
Leasehold improvements		12,389			11,994
Capital work-in-progress		3,830			4,545
Furniture and fixtures		2,099			1,966
Machinery, equipment, and instruments		63,717			55,271
		84,843			76,381
Less accumulated depreciation		(20,355	)		(11,719	)
Property and equipment, net	$	64,488		$	64,662

Depreciation expense was $5.2 million and $4.8 million for the three month fiscal periods ended November 30, 2012 and November 30, 2011, respectively.  Depreciation expense was $10.1 million and $8.6 million for the six month 2013 and 2012 fiscal periods ended November 30, 2012 and November 30, 2011, respectively.  Depreciation expense is primarily included in cost of sales in the consolidated statements of operations.

During the second quarter of fiscal 2013, the Company recognized a disposition loss of $1.2 million to reduce certain capital work-in-progress equipment associated with a high speed filling project to its estimated salvage value.  The project was determined to be no longer economically viable during the second quarter of fiscal 2013 and management therefore decided to retire or dispose of the equipment.

For the year ended May 31, 2012, certain amounts within property and equipment have been reclassified for presentation purposes.  There has been no change in accumulated depreciation or the total property and equipment, net.