Correction of immaterial errors

12 Months Ended

Jan. 31, 2012

Correction of immaterial errors [Abstract]

Correction of immaterial errors

Note 7 - Correction of immaterial errors

In the fourth quarter of 2011, management discovered prior period tax accounting errors. The cumulative adjustment for the tax errors covering the period from February 1, 2007 to January 31, 2011, was approximately $315 thousand. The adjustment applicable to the fourth quarter of 2010 was approximately $135 thousand and the adjustment applicable to prior years (February 2007 - January 2010) totaled approximately $180 thousand.

Pursuant to the guidance of Staff Accounting Bulletin ("SAB") No. 99, Materiality, the Company concluded that the errors were not material to any of its prior period financial statements. Although the errors were immaterial to prior periods, the prior period financial statements were revised, in accordance with SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, due to the significance of the out-of-period correction.

A reconciliation of the effects of the adjustments to the previously reported balance sheet at January 31, 2011 follows:

($ in thousands)	As Reported		Adjustment			As Adjusted
Other long-term liabilities		$3,271		$367			$3,638
Total long-term liabilities	44,601		367			44,968
Additional paid in Capital	49,055		(52		)	49,003
Retained earnings	28,104		(315		)	27,789
Total stockholders' equity	78,421		(367		)	78,054

A reconciliation of the effects of the adjustments to the previously reported statement of operation for the year ending January 31, 2011 follows:

($ in thousands)	As Reported			Adjustment			As Adjusted
Income tax benefit		($1,890	)		$135			($1,755	)
Net Income	4,510			(135		)	4,375

A reconciliation of the effects of the adjustments to the previously reported statement of cash flows for the year ending January 31, 2011 follows:

($ in thousands)	As Reported			Adjustment			As Adjusted
Net Income		$4,510			($135	)		$4,375
Deferred tax benefit	(3,914		)	162			(3,752		)
Net cash provided by operating activities	8,687			27			8,714
Tax expense (benefit) of stock options exercised	29			(27		)	2
Net cash provided by financing activities	3,396			(27		)	3,369

A reconciliation of the effects of the adjustments to the previously reported statement of shareholders equity for the year ending January 31, 2011 follows:

($ in thousands)	As Reported		Adjustment			As Adjusted
Net Income		$4,510		($135	)		$4,375
Retained earnings	28,104		(315		)	27,789
Tax expense (benefit) of stock options exercised	29		(27		)	2
Additional paid in Capital	49,055		(52		)	49,003
Total comprehensive income	4,889		(135		)	4,754

A reconciliation of the effects of the adjustments to the previously reported statement of shareholders equity for the year ending January 31, 2010 follows:

($ in thousands)	As Reported		Adjustment			As Adjusted
Additional paid in Capital		$48,086		($25	)		$48,061
Retained earnings	23,594		(180		)	23,414
Total comprehensive income	7,220		(180		)	7,040