View Filing Data

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Jul. 31, 2012	Sep. 01, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	SMITH & WESSON HOLDING CORP
Entity Central Index Key	0001092796
Document Type	10-Q
Document Period End Date	Jul. 31, 2012
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--04-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		65,497,767

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2012	Apr. 30, 2012
Current assets:
Cash and cash equivalents, including restricted cash of $3,336 on July 31, 2012 and $3,334 on April 30, 2012	$ 60,543	$ 56,717
Accounts receivable, net of allowance for doubtful accounts of $1,174 on July 31, 2012 and $1,058 on April 30, 2012	53,289	48,313
Inventories	62,827	55,296
Other current assets	9,410	4,139
Assets held for sale (Note 3 and 14)	1,047	13,490
Deferred income taxes	12,759	12,759
Total current assets	199,875	190,714
Property, plant, and equipment, net	63,190	60,528
Intangibles, net	4,374	4,532
Other assets	5,496	5,900
Total assets	272,935	261,674
Current liabilities:
Accounts payable	25,322	28,618
Accrued expenses	17,865	20,685
Accrued payroll	8,007	9,002
Accrued income taxes	8,148	291
Accrued taxes other than income	4,002	4,270
Accrued profit sharing	10,215	8,040
Accrued product/municipal liability	1,429	1,397
Accrued warranty	5,218	5,349
Liabilities held for sale (Note 3)		5,693
Current portion of notes payable	1,271
Total current liabilities	81,477	83,345
Deferred income taxes	4,537	4,537
Notes payable, net of current portion	43,556	50,000
Other non-current liabilities	11,221	10,948
Total liabilities	140,791	148,830
Commitments and contingencies (Note 14)
Stockholders' equity:
Preferred stock, $.001 par value, 20,000,000 shares authorized, no shares issued or outstanding
Common stock, $.001 par value, 100,000,000 shares authorized, 66,608,175 shares issued and 65,408,175 shares outstanding on July 31, 2012 and 66,512,097 shares issued and 65,312,097 shares outstanding on April 30, 2012	67	67
Additional paid-in capital	190,892	189,379
Accumulated deficit	(52,492)	(70,279)
Accumulated other comprehensive income	73	73
Treasury stock, at cost (1,200,000 common shares)	(6,396)	(6,396)
Total stockholders' equity	132,144	112,844
Total liabilities and stockholders' equity	$ 272,935	$ 261,674

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jul. 31, 2012	Apr. 30, 2012
Consolidated Balance Sheets [Abstract]
Restricted cash	$ 3,336	$ 3,334
Allowance for doubtful accounts receivable	$ 1,174	$ 1,058
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	66,608,175	66,512,097
Common stock, shares outstanding	65,408,175	65,312,097
Treasury stock, shares	1,200,000	1,200,000

Consolidated Statements of Operations and Comprehensive Income/(Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 31, 2012	Jul. 31, 2011
Consolidated Statements of Operations and Comprehensive Income/(Loss) [Abstract]
Net sales	$ 135,995	$ 91,730
Cost of sales	84,702	65,213
Gross profit	51,293	26,517
Operating expenses:
Research and development	1,143	1,338
Selling and marketing	6,828	8,125
General and administrative	12,026	11,520
Total operating expenses	19,997	20,983
Operating income from continuing operations	31,296	5,534
Other income/(expense):
Other income/(expense), net		34
Interest income	368	403
Interest expense	(1,987)	(1,941)
Total other income/(expense), net	(1,619)	(1,504)
Income from continuing operations before income taxes	29,677	4,030
Income tax expense	10,807	1,753
Income from continuing operations	18,870	2,277
Discontinued operations (Note 3):
Loss from operations of discontinued security solutions division	(1,682)	(2,702)
Income tax benefit	(599)	(1,216)
Loss on discontinued operations	(1,083)	(1,486)
Net income/comprehensive income	$ 17,787	$ 791
Net income per share (Note 12):
Basic - continuing operations	$ 0.29	$ 0.04
Basic - net income	0.27	0.01
Diluted - continuing operations	0.28	0.04
Diluted - net income	$ 0.27	$ 0.01
Weighted average number of common shares outstanding (Note 12):
Basic	65,352	64,529
Diluted	66,798	64,942

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 3 months ended Jul. 31, 2012 - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]
Beginning Balance, shares at Apr. 30, 2012		66,512,000				1,200,000
Beginning Balance at Apr. 30, 2012	$ 112,844,000	$ 67,000	$ 189,379,000	$ (70,279,000)	$ 73,000	$ (6,396,000)
Exercise of employee stock options, shares	113,336	89,000
Exercise of employee stock options	$ 527,000		527,000
Stock-based compensation	898,000		898,000
Tax deduction of stock-based compensation in excess of book deductions	$ 88,000		88,000
Issuance of common stock under restricted stock unit awards, shares	7,000	7,000
Issuance of common stock under restricted stock unit awards	$ 44,000
Net income	17,787,000			17,787,000
Ending balance, shares at Jul. 31, 2012		66,608,000				1,200,000
Ending balance at Jul. 31, 2012	$ 132,144,000	$ 67,000	$ 190,892,000	$ (52,492,000)	$ 73,000	$ (6,396,000)

- Definition

This element represents the amount of recognized equity-based compensation during the period, that is, the amount recognized as expense in the income statement (or as asset if compensation is capitalized). Alternate captions include the words "stock-based compensation".

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- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

- Definition

Number of shares issued during the period related to Restricted Stock Awards, net of any shares forfeited.

+ References + Details

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2012	Jul. 31, 2011
Cash flows from operating activities:
Net income	$ 17,787	$ 791
Adjustments to reconcile net income to net cash provided by/ (used in) operating activities:
Amortization and depreciation	3,985	3,629
Loss on sale of discontinued operations, including $45 of stock-based compensation expense (Note 12)	798
(Gain)/loss on sale of assets	(14)	199
Provision for/(recoveries of) losses on accounts receivable	75	(360)
Change in disposal group assets and liabilities	(1,112)	(29)
Stock-based compensation expense	853	587
Excess book deduction of stock-based compensation		(249)
Changes in operating assets and liabilities:
Accounts receivable	(5,051)	(5,991)
Inventories	(7,531)	(5,887)
Other current assets	(2,447)	(1,235)
Income tax receivable /payable	7,857	387
Accounts payable	(3,296)	(6,335)
Accrued payroll	(1,600)	1,195
Accrued taxes other than income	(268)	(1,056)
Accrued profit sharing	2,175	1,244
Accrued other expenses	(3,430)	(2,493)
Accrued product/municipal liability	32	(174)
Accrued warranty	(131)	52
Other assets	174	(23)
Other non-current liabilities	423	192
Net cash provided by/(used in) operating activities	9,279	(15,556)
Cash flows from investing activities:
Proceeds from sale of discontinued operations (Note 3)	5,500
Receipts from note receivable	18
Payments to acquire patents and software		(4)
Proceeds from sale of property and equipment	14	1
Payments to acquire property and equipment	(6,278)	(4,730)
Net cash used in investing activities	(746)	(4,733)
Cash flows from financing activities:
Proceeds from loans and notes payable	1,753	1,532
Cash paid for debt issue costs		(1,837)
Proceeds from energy efficiency incentive programs		225
Payments on capital lease obligation	(150)
Payments on loans and notes payable	(6,925)	(421)
Proceeds from exercise of options to acquire common stock	527	180
Excess tax benefit of stock-based compensation	88
Net cash used in financing activities	(4,707)	(321)
Net increase/ (decrease) in cash and cash equivalents	3,826	(20,610)
Cash and cash equivalents, beginning of period	56,717	58,292
Cash and cash equivalents, end of period	60,543	37,682
Cash paid for:
Interest	2,974	4,109
Income taxes	$ 2,397	$ 398

Organization

3 Months Ended

Jul. 31, 2012

Organization And Basis of Presentation [Abstract]

Organization

(1) Organization:

We are one of the world’s leading manufacturers of firearms. We manufacture a wide array of handguns, modern sporting rifles, hunting rifles, black powder firearms, handcuffs, and firearm-related products and accessories for sale to a wide variety of customers, including gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and throughout the world. We are one of the largest manufacturers of handguns, modern sporting rifles, and handcuffs in the United States, and an active participant in the hunting rifle market. We manufacture our firearm products at our facilities in Springfield, Massachusetts and Houlton, Maine. We sell our products under the Smith & Wesson brand, the M&P brand, the Thompson/Center brand, and the Walther brand. In addition, we pursue opportunities to license our name and trademarks to third parties for use in association with their products and services.

Basis of Presentation

3 Months Ended

Jul. 31, 2012

Organization And Basis of Presentation [Abstract]

Basis of Presentation

(2) Basis of Presentation:

The consolidated balance sheet as of July 31, 2012, the consolidated statements of income and comprehensive income for the three months ended July 31, 2012 and 2011, the consolidated statement of changes in stockholders’ equity for the three months ended July 31, 2012, and the consolidated statements of cash flows for the three months ended July 31, 2012 and 2011 have been prepared by us, without audit.

Smith & Wesson Security Solutions, Inc. (“SWSS”), our security solutions division, is being presented as discontinued operations in the consolidated statements of income and comprehensive income for all periods presented. See Note 3 for additional information regarding these discontinued operations. Unless stated otherwise, any reference to the consolidated statements of income and comprehensive income items in the notes to the consolidated financial statements refers to results from continuing operations.

The quarter end for our wholly owned subsidiaries Smith & Wesson Corp. and SWSS, was July 29, 2012, a two-day variance to our reported fiscal quarter end of July 31, 2012. This variance did not create any material difference in the consolidated financial statements as presented. In our opinion, all adjustments, which include only normal recurring adjustments necessary to fairly present the financial position, results of operations, changes in stockholders’ equity, and cash flows at July 31, 2012 and for the periods presented, have been included. All significant intercompany transactions have been eliminated. The consolidated balance sheet as of April 30, 2012 has been derived from our audited financial statements.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended April 30, 2012, filed with the SEC on June 28, 2012. The results of operations for the three months ended July 31, 2012 may not be indicative of the results that may be expected for the year ending April 30, 2013 or any other period.

Reclassification

Certain amounts presented in the prior periods’ consolidated financial statements related to discontinued operations have been reclassified to conform to the current period’s presentation.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

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+ Details

Discontinued Operations

3 Months Ended

Jul. 31, 2012

Discontinued Operations [Abstract]

Discontinued Operations

(3) Discontinued Operations:

Based on a combination of factors occurring since our July 2009 acquisition of SWSS, including federal and corporate budgetary constraints, increased price competition, and a fundamental change in strategic direction, on October 5, 2011, we committed to a plan to divest the assets, liabilities, and ongoing operations of our security solutions division. On July 10, 2012, we entered into an Asset Purchase Agreement with FutureNet Group, Inc. (“FutureNet”) whereby FutureNet acquired substantially all of the assets and assumed certain of the liabilities of SWSS for a purchase price of $8.3 million, including an $824,000 working capital adjustment. On July 26, 2012, we completed the disposition of SWSS and received $5.5 million in cash and recorded a receivable equal to $2.8 million in other current assets for the remaining portion of the purchase price. Prior to the disposition, we presented the assets and liabilities on separate lines as held for sale on our consolidated balance sheets. The operating results of SWSS are classified as discontinued operations and are presented in a separate line in the consolidated statements of income and comprehensive income for all periods presented. In connection with the divestiture of SWSS, we sold net assets of $13.0 million and incurred $1.6 million in closing-related costs, including $655,000 of legal, professional, and investment banking fees and $918,000 of severance and employee-related costs. During fiscal 2012, we recognized a loss on sale of the disposal group of $5.8 million and we recorded an additional $798,000 loss during the three months ended July 31, 2012, which is included in the loss from discontinued operations.

The following is a summary of the operating results of the discontinued operations (dollars in thousands):


	For the Three Months Ended:
	July 31, 2012			July 31, 2011
Net sales from discontinued operations	$	6,732		$	7,461
Loss before income taxes	$	(1,682	)	$	(2,702	)
Net loss from discontinued operations	$	(1,083	)	$	(1,486	)

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Significant Accounting Policies

3 Months Ended

Jul. 31, 2012

Significant Accounting Policies [Abstract]

Significant Accounting Policies

(4) Significant Accounting Policies:

Revenue Recognition — For our firearm products, we recognize revenue when the following four basic criteria have been met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been provided; (3) the fee is fixed or determinable; and (4) collection is reasonably assured. For our discontinued security solutions products and services, we recognize revenue from fixed-price contracts using the percentage-of-completion method, measured by the percentage of costs incurred to date to our total costs for each contract. Revenue from our security solutions business has been reclassified to discontinued operations.

Product sales account for most of our firearm revenue. We recognize revenue from firearm product sales when the earnings process is complete and the risks and rewards of ownership have transferred to the customer, which is generally upon shipment but could be delayed until customer acceptance is received. We also provide tooling, forging, heat treating, finishing, plating, and engineering support services to customers; we recognize this revenue when accepted by the customer, when no further contingencies or material performance obligations exist, and when collectibility is reasonably assured, thereby earning us the right to receive and retain payments for services performed and billed.

We recognize trademark licensing revenue for individual licensees on a quarterly basis based on historical experience and expected cash receipts from licensees. Licensing revenue consists of minimum royalties and/or a percentage of a licensee’s sales on licensed products. Under our current licensing agreements, this revenue is payable on a calendar quarter basis. We recognize non-refundable license fees received upon initial signing of license agreements as revenue when no future obligation is required on our part. As a result of a combination of uncertain factors regarding existing licensees, including current and past payment performance, market acceptance of the licensees’ products, and insufficient historical experience, we believe that reasonable assurance of collectability does not exist based on the results and past payment performance of licensees in general. Therefore, we do not recognize minimum royalty payments upon contract signing, but instead record royalty revenue monthly when the minimum royalty can be reasonably estimated for that month and payment is assured.

For our discontinued security solutions division, we determine percentage-of-completion by comparing the cost incurred to date to the estimated total cost required to complete the project. We consider costs incurred to date to be the most reliable, available measure of progress on these projects. We make adjustments to estimates to complete in the periods in which facts resulting in a change become known. When the estimate indicates that a loss will be incurred, we record the loss in the period in which it is identified. When reliable estimates cannot be made, we recognize revenue upon completion. Significant judgment is involved in the estimation process for each contract. Different assumptions could yield materially different results. Delays in the installation process could negatively affect operations in a given period by increasing volatility in revenue recognition. Recognition of revenue in conformity with accounting principles generally accepted in the United States requires us to make judgments that affect the timing and amount of reported revenue.

Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the financial statement dates and the reported amounts of revenue and expenses during the reporting periods. Our significant estimates include gross margin and percentage of completion on in-process security solutions projects, accruals for warranty, product liability, workers’ compensation expense, environmental liability, excess and obsolete inventory, allowance for doubtful accounts, income tax expense, forfeiture rates on stock-based awards, and medical claims payable. Actual results could differ from those estimates.

Segment Information — We have historically reported certain financial information under two segments: firearms and security solutions. As a result of our divestiture of SWSS, the results of the operations comprising the security solutions segment are now being reported as discontinued operations for all periods presented. See Note 3—Discontinued Operations for additional information.

Valuation of Long-lived Tangible and Intangible Assets — We evaluate the recoverability of long-lived assets, or asset groups, whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. When such evaluations indicate that the related future undiscounted cash flows are not sufficient to recover the carrying values of the assets, such carrying values are reduced to fair value and this adjusted carrying value becomes the asset’s new cost basis. We determine fair value primarily using future anticipated cash flows that are directly associated with and that are expected to arise as a direct result of the use and eventual disposition of the asset, or asset group, discounted using an interest rate commensurate with the risk involved.

We have significant long-lived tangible and intangible assets, which are susceptible to valuation adjustments as a result of changes in various factors or conditions. The most significant long-lived tangible and intangible assets are fixed assets, developed technology, patents, trademarks, and tradenames. We amortize all finite-lived intangible assets either on a straight-line basis or based upon patterns in which we expect to utilize the economic benefits of such assets. We initially determine the values of intangible assets by a risk-adjusted, discounted cash flow approach. We assess the potential impairment of identifiable intangible assets and fixed assets whenever events or changes in circumstances indicate that the carrying values may not be recoverable and at least annually. Factors we consider important, which could trigger an impairment of such assets, include the following:

•

significant underperformance relative to historical or projected future operating results;

•

significant changes in the manner or use of the assets or the strategy for our overall business;

•

significant negative industry or economic trends;

•

significant decline in our stock price for a sustained period; and

•

a decline in our market capitalization below net book value.

Future adverse changes in these or other unforeseeable factors could result in an impairment charge that would materially impact future results of operations and financial position in the reporting period identified.

We periodically review long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of those assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted cash flows to the recorded carrying value for the asset. If impairment is indicated, the asset is written down to its estimated fair value based on a discounted cash flow analysis. No impairment charges were taken during the three months ended July 31, 2012 based on the review of long-lived assets.

Significant judgments and estimates are involved in determining the useful lives of our long-lived assets, determining what reporting units exist, and assessing when events or circumstances would require an interim impairment analysis of goodwill or other long-lived assets to be performed. Changes in our organization or our management reporting structure, as well as other events and circumstances, including technological advances, increased competition, and changing economic or market conditions, could result in (a) shorter estimated useful lives, (b) additional reporting units, which may require alternative methods of estimating fair values or greater disaggregation or aggregation in our analysis by reporting unit, and (c) other changes in previous assumptions or estimates. A change in the weighted average cost of capital, for example, could materially change the valuation and, if increased, could cause an impairment. In turn, this could have an additional impact on our consolidated financial statements through accelerated amortization and impairment charges.

Notes Payable

3 Months Ended

Jul. 31, 2012

Notes Payable [Abstract]

Notes Payable

(5) Notes Payable:

Credit Facilities — We have a $60.0 million credit facility that provides for availability until December 7, 2014 for working capital needs. The revolving line of credit bears interest at a variable rate equal to LIBOR or prime plus an applicable margin based on our leverage ratio, at our election. As of July 31, 2012, there were no borrowings outstanding. Had there been borrowings, they would have borne an interest rate of 4.5% per annum.

As security for the credit facility, TD Bank, N.A. has a first priority lien on all of our personal property and real estate assets.

We may prepay, in whole or in part, any of the loans that have interest rates determined by reference to the prime rate, with interest accrued to the date of the prepayment on the amount prepaid, without any penalty or premium. Loans with a fixed rate of interest determined by reference to the LIBOR interest rate may be prepaid provided that we reimburse TD Bank for any costs associated with (i) our making payments on dates other than those specified in the credit agreement, or (ii) our borrowing or converting a LIBOR loan on a date other than the borrowing or conversion dates specified in the credit agreement.

Convertible Notes — On December 15, 2006, we issued an aggregate of $80.0 million of 4% senior convertible notes (the “Convertible Notes”) maturing on December 15, 2026 to qualified institutional buyers pursuant to the terms and conditions of a securities purchase agreement and indenture. In fiscal 2011, we exchanged a total of $50.0 million of Convertible Notes for $50.0 million of Senior Notes (as defined below). During fiscal 2012, we repurchased the remaining $30.0 million of Convertible Notes utilizing cash on hand. As of July 31, 2012, there were no outstanding Convertible Notes.

Senior Notes — During fiscal 2011, we issued an aggregate of $50.0 million of 9.5% senior notes due 2016 (“Senior Notes”) in exchange for $50.0 million of Convertible Notes pursuant to the terms and conditions of an exchange agreement and indenture (the “Senior Notes Indenture”). During the three months ended July 31, 2012, we purchased a total of $6.4 million of our Senior Notes in the open market utilizing cash on hand. We paid $560,000 of interest relating to these purchases.

The Senior Notes bear interest at a rate of 9.5% per annum payable on June 15 and December 15 of each year.

The Senior Notes are general unsecured obligations of our company. The Senior Notes Indenture contains certain affirmative and negative covenants, including limitations on restricted payments, limitations on indebtedness, limitations on the sale of assets, and limitations on liens.

The limitation on indebtedness in the Senior Notes Indenture is only applicable at such time that the consolidated coverage ratio (as set forth in the Senior Notes Indenture) for us and our restricted subsidiaries is less than 2.00 to 1.00. In general, as set forth in the Senior Notes Indenture, the consolidated coverage ratio is determined by comparing our prior four quarters’ consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) to our consolidated interest expense.

The credit agreement with TD Bank contains financial covenants relating to maintaining maximum leverage and minimum debt service coverage. The Senior Notes Indenture contains a financial covenant relating to times interest earned. We were in compliance with all debt covenants as of July 31, 2012.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Capital Lease

3 Months Ended

Jul. 31, 2012

Capital Lease [Abstract]

Capital Lease

(6) Capital Lease:

On October 28, 2011, we entered into a sale-leaseback agreement that included the sale of certain machinery and equipment. We then leased a total of $3.5 million of machinery and equipment to increase production capacity. The lease has an effective interest rate of 5.76% and is payable in 60 monthly installments through fiscal 2017. Leases are accounted for under the provisions of ASC 840-10, Leases, which requires that leases be evaluated and classified as operating or capital leases for financial reporting purposes. Based on our evaluation of ASC 840-10, we determined that the lease qualifies as a capital lease because the net present value of future lease payments exceed 90% of the fair market value of the leased machinery and equipment. We have pledged the assets financed to secure the amounts outstanding. We have included $424,000 of short-term capital lease obligation in accrued expenses and $2.8 million in other non-current liabilities.

The following sets forth the future minimum lease payments as of July 31, 2012 (in thousands):


	Capital Lease Obligation
2013	$	447
2014		596
2015		596
2016		596
2017		1,494

Total future minimum lease payments		3,729
Less amounts representing interest		(550	)
Present value of minimum lease payments		3,179
Less current maturities of capital lease		(424	)

Long-term maturities of capital lease	$	2,755

Inventories

3 Months Ended

Jul. 31, 2012

Inventories [Abstract]

Inventories

(7) Inventories:

The following sets forth a summary of inventories, stated at the lower of cost or market, as of July 31, 2012 and April 30, 2012 (in thousands):


	July 31, 2012		April 30, 2012
Finished goods	$	16,303	$	14,017
Finished parts		32,670		28,936
Work in process		8,597		7,889
Raw material		5,257		4,454

Total inventories	$	62,827	$	55,296

Accrued Expenses

3 Months Ended

Jul. 31, 2012

Accrued Expenses [Abstract]

Accrued Expenses

(8) Accrued Expenses:

Accrued expenses consisted of the following as of July 31, 2012 and April 30, 2012 (in thousands):


	July 31, 2012		April 30, 2012
Accrued distributor incentives	$	4,253	$	5,453
Accrued professional fees		3,040		3,682
Accrued rebates and promotions		2,533		2,862
Accrued employee benefits		2,159		1,902
Accrued commissions		1,301		1,235
Accrued workers’ compensation		986		766
Interest payable		533		1,783
Accrued utilities		500		436
Current portion of capital lease obligation		424		418
Accrued severance/restructuring costs		323		345
Pension liability		115		117
Accrued other		1,698		1,686

Total accrued expenses	$	17,865	$	20,685

Advertising Costs

3 Months Ended

Jul. 31, 2012

Advertising Costs [Abstract]

Advertising Costs

(9) Advertising Costs:

We expense advertising costs, primarily consisting of magazine advertisements, printed materials, and television advertisements, as incurred. For the three months ended July 31, 2012 and 2011, advertising expense for continuing operations was $3.1 million and $3.0 million, respectively.

Warranty Reserve

3 Months Ended

Jul. 31, 2012

Warranty Reserve [Abstract]

Warranty Reserve

(10) Warranty Reserve:

We generally provide a lifetime warranty to the original purchaser of our new firearm products and provide warranties for up to two years on the materials and workmanship in our security solutions projects, which includes products purchased by us from third-party manufacturers. We provide for estimated warranty obligations in the period in which we recognize the related revenue. We quantify and record an estimate for warranty-related costs based on our actual historical claims experience and current repair costs. We make adjustments to accruals as warranty claims data and historical experience warrant. Should we experience actual claims and repair costs that are higher than the estimated claims and repair costs used to calculate the provision, our operating results for the period or periods in which such returns or additional costs materialize would be adversely impacted.

On November 11, 2011, we initiated a recall of all Thompson/Center Arms Venture^TM rifles manufactured since the product’s introduction in mid 2009. As of July 31, 2012, we had incurred $652,000 in recall costs and we estimate the remaining cost of this recall will be $904,000, which is included in the accrued warranty balance. Warranty expense for the three months ended July 31, 2012 and 2011 was $828,000 and $700,000, respectively.

The following sets forth the change in accrued warranty, a portion of which is recorded as a non-current liability, in the three months ended July 31, 2012 and 2011 (in thousands):


	July 31, 2012			July 31, 2011
Beginning Balance	$	6,412		$	3,969
Warranties issued and adjustments to provisions		828			700
Warranty claims		(962	)		(764	)

Ending Balance	$	6,278		$	3,905

Self-Insurance Reserves

3 Months Ended

Jul. 31, 2012

Self-Insurance Reserves [Abstract]

Self-Insurance Reserves

(11) Self-Insurance Reserves:

As of July 31, 2012 and April 30, 2012, we had reserves for workers’ compensation, product liability, municipal liability, and medical/dental costs totaling $9.2 million and $9.0 million, respectively, of which $5.4 million have been classified as non-current and included in other non-current liabilities and $2.4 million and $2.2 million, respectively, have been included in accrued expenses, and $1.4 million have been included in accrued product/municipal liability on the accompanying consolidated balance sheets. In addition, $332,000 of excess workers’ compensation receivable has been classified as an other asset. While we believe these reserves to be adequate, it is possible that the ultimate liabilities will exceed such estimates. Amounts charged to expense were $3.4 million and $4.1 million for the three months ended July 31, 2012 and 2011, respectively.

It is our policy to provide an estimate for loss as a result of expected adverse findings or legal settlements on product liability, municipal liability, workers’ compensation, and other matters when such losses are probable and are reasonably estimable. It is also our policy to accrue for reasonably estimable legal costs associated with defending such litigation. While such estimates involve a range of possible costs, we determine, in consultation with litigation counsel, the most likely cost within such range on a case-by-case basis. We also record receivables from insurance carriers relating to these matters when their collection is probable. As of July 31, 2012 and April 30, 2012, we had accrued reserves for product and municipal litigation liabilities of $4.3 million and $4.5 million, respectively (of which $2.9 million and $3.1 million, respectively, were non-current), consisting entirely of expected legal defense costs. In addition, as of July 31, 2012 and April 30, 2012, we had recorded receivables from insurance carriers related to these liabilities of $1.9 million and $2.0 million, respectively, nearly all of which has been classified as other assets with $25,000 classified as other current assets.

Stockholders' Equity

3 Months Ended

Jul. 31, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

(12) Stockholders’ Equity:

Earnings per Share

The following table provides a reconciliation of the income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three months ended July 31, 2012 and 2011 (in thousands, except per share data):


	For the three months ended July 31,
	2012			2011
Net income/(loss)
Income from continuing operations	$	18,870		$	2,277
Loss from discontinued operations, net of tax		(1,083	)		(1,486	)

Net income	$	17,787		$	791

Weighted average shares outstanding—Basic		65,352			64,529
Dilutive effect of stock option and award plans		1,446			413

Diluted shares outstanding		66,798			64,942

Earnings per common share—Basic (a)
Income from continuing operations	$	0.29		$	0.04
Loss from discontinued operations	$	(0.02	)	$	(0.02	)
Net income	$	0.27		$	0.01
Earnings per common share—Diluted (a)
Income from continuing operations	$	0.28		$	0.04
Loss from discontinued operations	$	(0.02	)	$	(0.02	)
Net income	$	0.27		$	0.01

(a)	Net income per common share does not equal earnings per common share from continuing plus discontinued operations due to rounding.

For the three months ended July 31, 2012, 384,764 shares of common stock issuable upon the exercise of stock options were excluded from the computation of diluted earnings per share because the effect would be antidilutive. For the three months ended July 31, 2011, 2,431,906 shares of common stock issuable upon the conversion of Convertible Notes, and 1,160,132 shares of common stock issuable upon the exercise of stock options were excluded from the computation of diluted earnings per share because the effect would be antidilutive.

Stock Option and Employee Stock Purchase Plans

We have two stock option plans (the “SOPs”): the 2001 Stock Option Plan and the 2004 Incentive Stock Plan. New grants under the 2001 Stock Option Plan have not been made since the approval of the 2004 Incentive Stock Plan at our September 13, 2004 annual meeting of stockholders. All new grants covering all participants are issued under the 2004 Incentive Stock Plan.

The 2004 Incentive Stock Plan authorizes the issuance of the lesser of (1) 15% of the shares of our common stock outstanding from time to time, or (2) 10,000,000 shares of our common stock. The plan permits the grant of options to acquire common stock, restricted common stock and deferred stock, restricted stock units (“RSUs”), stock appreciation rights, and dividend equivalents. Our board of directors, or a committee established by our board, administers the SOPs, selects recipients to whom awards are granted, and determines the grants to be awarded. Options granted under the SOPs are exercisable at a price determined by our board or committee at the time of grant, but in no event less than fair market value of our common stock on the date granted. Grants of options may be made to employees and directors without regard to any performance measures. All options issued pursuant to the SOPs are nontransferable and subject to forfeiture.

Generally, awards vest over a period of three years and are exercisable for a period of 10 years. The plan also permits the grant of awards to non-employees, which the board has granted in the past. A separate option grant, outside of the 2004 Incentive Stock Plan, for 500,000 shares was made, at an exercise price of $1.47 per share, in connection with the hiring of our former President and Chief Executive Officer during the fiscal year ended April 30, 2005. Our former President and Chief Executive Officer resigned during fiscal 2012 and continues his service as a member of our Board of Directors and was appointed co-vice chairman of the Board. As of July 31, 2012, there were 350,000 options outstanding relating to this grant, which expire on December 6, 2014.

The number of shares and weighted average exercise prices of (i) options granted under the SOPs and (ii) the separate option grant to our former President and Chief Executive Officer outside of the SOPs for the three months ended July 31, 2012 and 2011 are as follows:


	For the Three Months Ended July 31,
	2012					2011
	Shares			Weighted- Average Price		Shares			Weighted- Average Price
Options outstanding, beginning of year		3,988,164		$	4.67		3,137,565		$	4.73
Granted during year		—			—		554,100			3.56
Exercised during year		(113,336	)		4.67		(100,000	)		1.80
Canceled/forfeited during year		(65,164	)		3.98		(195,334	)		4.87

Options outstanding, end of period		3,809,664		$	4.68		3,396,331		$	4.62

Weighted average remaining contractual life		6.48 years					6.89 years

Options exercisable, end of period		2,273,813		$	4.97		1,883,035		$	5.09

Weighted average remaining contractual life		4.88 years					5.02 years

The aggregate intrinsic value of outstanding options as of July 31, 2012 and 2011 was $21.9 million and $1.3 million, respectively. The aggregate intrinsic value of outstanding options that were exercisable as of July 31, 2012 and 2011 was $12.9 million and $1.3 million, respectively. The aggregate intrinsic value of the options exercised for the three months ended July 31, 2012 and 2011 was $511,000 and $174,000, respectively. At July 31, 2012, the total unamortized fair value of outstanding options was $2.1 million, which will be recognized over the remaining vesting period of 1.1 years.

On September 26, 2011, our stockholders approved our 2011 Employee Stock Purchase Plan (“ESPP”) to replace our expiring 2001 ESPP. All options and rights to participate in our ESPP are nontransferable and subject to forfeiture in accordance with the our ESPP guidelines. In the event of certain corporate transactions, each option outstanding under our ESPP will be assumed or an equivalent option will be substituted by the successor corporation or a parent or subsidiary of such successor corporation.

We measure the cost of employee services received in exchange for an award of an equity instrument based on the grant-date fair value of the award. We calculate the fair value of our stock options issued to employees using the Black-Scholes model at the time the options are granted. That amount is then amortized over the vesting period of the option. With our ESPP, fair value is determined at the beginning of the purchase period and amortized over the term of each exercise period.

The following assumptions were used in valuing our options during the three-month periods ended July 31, 2012 and 2011:


	For the Three Months Ended July 31,
	2012		2011
Stock option grants:
Risk-free interest rate		—		1.47 - 2.20	%
Expected term		—		5.42 - 8.18 years
Expected volatility		—		66.9 - 73.9	%
Dividend yield		—		0	%

We estimate expected volatility using historical volatility for the expected term. The fair value of each stock option or ESPP purchase was estimated on the date of the grant using the Black-Scholes option pricing model (using the risk-free interest rate, expected term, expected volatility, and dividend yield variables, as noted in the above table). There were no options granted during the three months ended July 31, 2012. There were 554,100 options granted during the three months ended July 31, 2011. The total stock-based compensation expense, including stock options and RSUs and performance-based RSUs (“PSUs”) awards, was $898,000, which included $45,000 of stock-based compensation expense related to the loss on sale of our discontinued operations, and $587,000 for the three months ended July 31, 2012 and 2011, respectively. Stock-based compensation expense is included in general and administrative expenses.

We grant service-based RSUs to employees and consultants. The grants are made at no cost to the recipient. An RSU represents one share of our common stock but does not carry voting or dividend rights. RSU grants to employees generally vest over a period of three years with one-third of the units vesting on each anniversary date of the grant date. The aggregate fair value of our RSU grants is being amortized to compensation expense over the vesting period.

We grant PSUs with market conditions to our executive officers. At the time of grant, we calculate the fair value of our PSUs using Monte-Carlo simulation. We incorporate the following variables into the valuation model:


	For the Three Months Ended July 31,
	2012		2011
Grant date fair market value
Smith & Wesson Holding Corporation	$	—	$	3.57
NASDAQ Composite Index	$	—	$	2,781.91
Russell 2000 Index	$	—	$	—
Volatility (a)
Smith & Wesson Holding Corporation		—		67.67	%
NASDAQ Composite Index		—		29.97	%
Russell 2000 Index		—		—
Correlation coefficient (b)		—		0.46
Risk-free interest rate (c)		—		0.63	%
Dividend yield (d)		—		0	%

(a)	Volatility is calculated over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years.

(b)	The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions.

(c)	The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period.

(d)	We do not expect to pay dividends in the foreseeable future.

The PSUs vest, and the fair value of the PSUs will be recognized, over the corresponding three-year performance period. Our PSUs have a maximum aggregate award equal to 200% of the target amount granted. The number of PSUs that may be earned depends upon the total shareholder return (“TSR”) of our common stock compared to the TSR of the Russell 2000 Index (the “RUT”) or the NASDAQ Composite Index (the “IXIC”), as applicable, over the three-year performance period. Our stock must outperform the RUT or the IXIC, as appropriate, by 10% in order for the target award to be earned.

During the three months ended July 31, 2012, we granted 4,500 service-based RSUs and no PSUs to employees and cancelled 11,665 service-based RSUs due to the service period condition not being met. Compensation expense recognized related to grants of RSUs was $150,000 for the three months ended July 31, 2012. During the three months ended July 31, 2012, we delivered 7,000 shares of common stock to consultants under vested RSUs with a total market value of $44,000.

During the three months ended July 31, 2011, we granted 95,200 PSUs to certain of our executive officers. Compensation expense recognized related to grants of RSUs and PSUs was $31,000 for the three months ended July 31, 2011. We did not cancel any RSUs or PSUs during the three months ended July 31, 2011. We delivered 1,000 shares of common stock to an employee under vested RSUs with a total market value of $3,000 during the three months ended July 31, 2011.

A summary of activity in unvested RSUs and PSUs for the three months ended July 31, 2012 and 2011 are as follows:


	For the Three Months Ended July 31,
	2012					2011
	Total # of Restricted Stock Units			Weighted Average Grant Date Fair Value		Total # of Restricted Stock Units			Weighted Average Grant Date Fair Value
RSUs and PSUs outstanding, beginning of year		384,140		$	7.91		123,600		$	5.27
Awarded		4,500			7.18		95,200			4.76
Vested		(7,000	)		8.12		(1,000	)		5.21
Forfeited		(11,665	)		7.98		—			—

RSUs and PSUs outstanding, end of period		369,975		$	7.89		217,800		$	5.72

As of July 31, 2012, there was $1.2 million of unrecognized compensation cost related to unvested RSUs and PSUs. This cost is expected to be recognized over a weighted average remaining contractual term of 2.0 years.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Income Taxes

3 Months Ended

Jul. 31, 2012

Income Taxes [Abstract]

Income Taxes

(13) Income Taxes:

We use an asset and liability approach for financial accounting and reporting of income taxes. Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and are measured by applying enacted tax rates and laws to the taxable years in which differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

We anticipate a potential future tax benefit of approximately $6.0 million resulting from the sale of SWSS. Although all steps have not yet been completed to secure a future tax deduction, we anticipate these steps will be completed during fiscal 2013.

At July 31, 2012, we had gross tax-affected unrecognized tax benefits of approximately $1.1 million, all of which, if recognized, would favorably impact our effective tax rate. Included in the unrecognized tax benefits at July 31, 2012 and 2011 was approximately $232,000 and $206,000, respectively, of accrued interest and penalties related to uncertain tax positions, which have been recorded in other non-current liabilities as none of these positions are expected to reverse in the next 12 months.

The full value of our unrecognized tax benefits has been classified as non-current income tax liabilities because a payment of cash is not anticipated within one year of the balance sheet date. In fiscal 2013, we expect to incur additional interest on outstanding tax accounts. We do not expect this change to be material. Interest and penalties related to income tax liabilities are included in income tax expense.

With limited exceptions, we are subject to U.S. federal, state, local, and non-U.S. income tax audits by tax authorities for fiscal years subsequent to April 30, 2008.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

+ Details

Commitments and Contingencies

3 Months Ended

Jul. 31, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

(14) Commitments and Contingencies:

Litigation

On January 19, 2010, the DOJ unsealed indictments of 22 individuals from the law enforcement and military equipment industries, one of whom was our former Vice President-Sales, International & U.S. Law Enforcement. We were not charged in the indictment. We also were served with a Grand Jury subpoena for the production of documents. We have always taken, and continue to take seriously, our obligation as an industry leader to foster a responsible and ethical culture, which includes adherence to laws and industry regulations in the United States and abroad. Although we are cooperating fully with the DOJ in this matter and have undertaken a comprehensive review of company policies and procedures, the DOJ may determine that we have violated FCPA laws. On February 21, 2012, the DOJ filed a motion to dismiss with prejudice the indictments of the remaining defendants who are pending trial, including our former Vice President-Sales, International & U.S. Law Enforcement. On February 24, 2012, the district court granted the motion to dismiss. We cannot predict, however, when the investigation will be completed or its outcome. There could be additional indictments of our company, our officers, or our employees. If the DOJ determines that we violated FCPA laws, we may face sanctions, including significant civil and criminal penalties. In addition, we could be prevented from bidding on domestic military and government contracts and could risk debarment by the U.S. Department of State. We also face increased legal expenses and could see an increase in the cost of doing international business. We could also see private civil litigation arising as a result of the outcome of the investigation. In addition, responding to the investigation may divert the time and attention of our management from normal business operations. Regardless of the outcome of the investigation, the publicity surrounding the investigation and the potential risks associated with the investigation could negatively impact the perception of our company by investors, customers, and others.

In fiscal 2011, we received a subpoena from the staff of the SEC giving notice that the SEC is conducting a non-public, fact-finding inquiry to determine whether there have been any violations of the federal securities laws. It appears this civil inquiry was triggered in part by the DOJ investigation into potential FCPA violations. Although we are cooperating fully with the SEC in this matter, the SEC may determine that we have violated federal securities laws. We cannot predict when this inquiry will be completed or its outcome. If the SEC determines that we have violated federal securities laws, we may face injunctive relief, disgorgement of ill-gotten gains, and sanctions, including fines and penalties, or may be forced to take corrective actions that could increase our costs or otherwise adversely affect our business, results of operations, and liquidity. We also face increased legal expenses and could see an increase in the cost of doing business. We could also see private civil litigation arising as a result of the outcome of this inquiry. In addition, responding to the inquiry may divert the time and attention of our management from normal business operations. Regardless of the outcome of the inquiry, the publicity surrounding the inquiry and the potential risks associated with the inquiry could negatively impact the perception of our company by investors, customers, and others.

We are involved in a purported stockholder derivative lawsuit. This action was brought by a putative plaintiff on behalf of our company against certain of our officers, directors, and employees. The lawsuit is based principally on a theory of breach of fiduciary duties. The putative plaintiff seeks unspecified damages on behalf of our company from the individual defendants, and recovery of their attorneys’ fees. A second purported stockholder derivative lawsuit against us was dismissed by the court on July 25, 2012.

We are a defendant in approximately 11 product liability cases and are aware of approximately 11 other product liability claims, primarily alleging defective product design, defective manufacturing, or failure to provide adequate warnings. In addition, we are a co-defendant in a case brought by the city of Gary, Indiana against numerous firearm manufacturers, distributors, and dealers seeking to recover damages allegedly arising out of the misuse of firearms by third parties. We believe that the various allegations as described above are unfounded, and, in addition, that any accident and any results from them were due to negligence or misuse of the firearm by the claimant or a third party and that there should be no recovery against us.

In addition, we are involved in lawsuits, claims, investigations, and proceedings, including commercial, environmental, and employment matters, which arise in the ordinary course of business.

The relief sought in individual cases primarily includes compensatory and, sometimes, punitive damages. Certain of the cases and claims seek unspecified compensatory or punitive damages. In others, compensatory damages sought may range from less than $75,000 to in excess of $1.4 million. In our experience, initial demands do not generally bear a reasonable relationship to the facts and circumstances of a particular matter. We believe that our accruals for product liability cases and claims, as described below, are a reasonable quantitative measure of the cost to us of product liability cases and claims.

We are vigorously defending ourselves in the lawsuits to which we are subject. An unfavorable outcome or prolonged litigation could harm our business. Litigation of this nature also is expensive and time consuming, and diverts the time and attention of our management.

We monitor the status of known claims and the product liability accrual, which includes amounts for defense costs for asserted and unasserted claims. While it is difficult to forecast the outcome of these claims, we believe, after consultation with litigation counsel, that it is uncertain whether the outcome of these claims will have a material adverse effect on our financial position, results of operations, or cash flows. We believe that we have provided adequate reserves for defense costs. We do not anticipate material adverse judgments and intend to vigorously defend ourselves.

We have recorded our liability for defense costs before consideration for reimbursement from insurance carriers. We have also recorded the amount due as reimbursement under existing policies from the insurance carriers as a receivable shown in other current assets and other assets.

At this time, an estimated range of reasonably possible additional losses relating to unfavorable outcomes cannot be made.

Environmental Remediation

We are subject to numerous federal, state, and local laws that regulate the discharge of materials into, or otherwise relate to the protection of, the environment. These laws have required, and are expected to continue to require, us to make significant expenditures of both a capital and expense nature. Several of the more significant federal laws applicable to our operations include the Clean Air Act, the Clean Water Act, the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), and the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act.

We have in place programs and personnel to monitor compliance with various federal, state, and local environmental regulations. In the normal course of our manufacturing operations, we are subject to governmental proceedings and orders pertaining to waste disposal, air emissions, and water discharges into the environment. We fund our environmental costs through cash flows from operations. We believe that we are in compliance with applicable environmental regulations in all material respects.

We are required to remediate hazardous waste at our facilities. Currently, we own designated sites in Springfield, Massachusetts and are subject to two release areas, which are the focus of remediation projects as part of the Massachusetts Contingency Plan (“MCP”). The MCP provides a structured environment for the voluntary remediation of regulated releases. We may be required to remove hazardous waste or remediate the alleged effects of hazardous substances on the environment associated with past disposal practices at sites not owned by us. We have received notice that we are a potentially responsible party from the Environmental Protection Agency and/or individual states under CERCLA or a state equivalent at one site.

On March 30, 2012, we entered into a purchase and sale agreement for the land and building we owned located in Rochester, New Hampshire pursuant to which we agreed to indemnify the buyer for losses arising from, among other things, environmental conditions related to our Thompson/Center subsidiaries’ manufacturing activities. We have estimated the total site remediation costs at $1.5 million and have offset the costs against $2.5 million of assets held for sale on our consolidated balance sheets. We believe the likelihood of environmental remediation costs exceeding the amount accrued to be remote.

As of July 31, 2012 and April 30, 2012, we had reserves of $2.1 million, including $1.5 million related to the land and building located in Rochester, New Hampshire for environmental matters that were reclassified to assets held for sale during fiscal 2012, for remediation of the sites referred to above. As of July 31, 2012 and April 30, 2012, we had recorded $577,000 of the environmental reserve in non-current liabilities with the remaining balances offset against assets held for sale as noted above. Based on the time frame of the purchase and sale agreement for the land and building located in Rochester, New Hampshire, payment of such remediation is likely to occur within the next 12 months and remediation to commence thereafter. We have calculated the net present value of the environmental reserve to be equal to the carrying value of the liability recorded on our books. Our estimate of these costs is based upon currently enacted laws and regulations, currently available facts, experience in remediation efforts, existing technology, and the ability of other potentially responsible parties or contractually liable parties to pay the allocated portions of any environmental obligations.

When the available information is sufficient to estimate the amount of liability, that estimate has been used; when the information is only sufficient to establish a range of probable liability and no point within the range is more likely than any other, the lower end of the range has been used. We may not have insurance coverage for our environmental remediation costs. We have not recognized any gains from probable recoveries or other gain contingencies. The environmental reserve was calculated using undiscounted amounts based on independent environmental remediation reports obtained.

Based on information known to us, we do not expect current environmental regulations or environmental proceedings and claims to have a material adverse effect on our consolidated financial position, results of operations, or cash flows. However, it is not possible to predict with certainty the impact on us of future environmental compliance requirements or of the cost of resolution of future environmental proceedings and claims, in part because the scope of the remedies that may be required is not certain, liability under federal environmental laws is joint and several in nature, and environmental laws and regulations are subject to modification and changes in interpretation. There can be no assurance that additional or changing environmental regulation will not become more burdensome in the future and that any such development would not have a material adverse effect on our company.

Suppliers

The inability to obtain sufficient quantities of components, parts, raw materials, and other supplies from independent sources necessary for the production of our products could result in reduced or delayed sales or lost orders. Any delay in or loss of sales could adversely impact our operating results. Many of the components, parts, raw materials, and other supplies used in the production of our products are available only from a limited number of suppliers. In most cases, we do not have long-term supply contracts with these suppliers.

Contracts

Employment Agreements — We have employment, severance, and change of control agreements with certain officers and managers.

Other Agreements — We have distribution agreements with various third parties in the ordinary course of business.

Outstanding Letters of Credit/Restricted Cash — We had open letters of credit aggregating $1.2 million as of July 31, 2012. We had restricted cash totaling $3.3 million as of July 31, 2012 of which $2.5 million acts as a compensating balance against our line of credit dated December 7, 2010 and $812,000 is related to the environmental remediation required to be performed in accordance with our credit facility with TD Bank.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Fair Value Measurements

3 Months Ended

Jul. 31, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

(15) Fair Value Measurements:

In accordance with ASC 820-10, Fair Value Measurements and Disclosures Topic, financial assets and liabilities recorded on the accompanying consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

Level 1—Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we have the ability to access at the measurement date (examples include active exchange-traded equity securities, listed derivatives, and most U.S. Government and agency securities).

Level 2—Financial assets and liabilities whose values are based on quoted prices in markets in which trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 2 inputs include the following:

•

quoted prices for identical or similar assets or liabilities in non-active markets (such as corporate and municipal bonds which trade infrequently);

•

inputs other than quoted prices that are observable for substantially the full term of the asset or liability (examples include interest rate and currency swaps); and

•

inputs that are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability (such as certain securities and derivatives).

We currently do not have any Level 2 financial assets or liabilities.

Level 3—Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our assumptions about the assumptions a market participant would use in pricing the asset or liability. We currently do not have any Level 3 financial assets or liabilities.

The following table presents information about our assets and liabilities that are measured at fair value on a recurring basis as of July 31, 2012 and April 30, 2012, respectively, and indicates the fair value hierarchy of the valuation techniques we utilized to determine such fair value (in thousands):


	July 31,				April 30,
Description	2012		(Level 1)		2012		(Level 1)
Assets:
Cash equivalents	$	60,516	$	60,516	$	56,717	$	56,717

Total assets	$	60,516	$	60,516	$	56,717	$	56,717

- Definition

The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 6
-Footnote 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 33
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Recent Accounting Pronouncements

3 Months Ended

Jul. 31, 2012

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

(16) Recent Accounting Pronouncements:

Recently Adopted Accounting Standards

In June 2011, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. The amendments in this ASU require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of equity. ASU 2011-05 is effective for interim and annual periods beginning after December 15, 2011. In December 2011, the FASB issued ASU 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05. ASU 2011-12 indefinitely defers certain reclassification adjustment provisions of ASU 2011-05. ASU 2011-12 is also effective for interim and annual periods beginning after December 15, 2011. These ASUs did not have a material impact on our consolidated financial statements.

Recently Issued Accounting Standards

The FASB did not issue any ASUs that are applicable or would have had a material impact on our financial during the three months ended July 31, 2012.

- Definition

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22583-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=6958853&loc=d3e46468-122699

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22580-107794

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22499-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 01
-Paragraph b
-Subparagraph 6
-Article 10

+ Details

Significant Accounting Policies (Policies)

3 Months Ended

Jul. 31, 2012

Significant Accounting Policies [Abstract]

Revenue Recognition

Use of Estimates

Segment Information

Valuation of Long-lived Tangible and Intangible Assets

•

significant underperformance relative to historical or projected future operating results;

•

significant changes in the manner or use of the assets or the strategy for our overall business;

•

significant negative industry or economic trends;

•

significant decline in our stock price for a sustained period; and

•

a decline in our market capitalization below net book value.

Fair Value Measurements and Disclosures Topic

•

quoted prices for identical or similar assets or liabilities in non-active markets (such as corporate and municipal bonds which trade infrequently);

•

inputs other than quoted prices that are observable for substantially the full term of the asset or liability (examples include interest rate and currency swaps); and

•

inputs that are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability (such as certain securities and derivatives).

We currently do not have any Level 2 financial assets or liabilities.

Comprehensive Income

Recently Issued Accounting Standards

The FASB did not issue any ASUs that are applicable or would have had a material impact on our financial during the three months ended July 31, 2012.

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References + Details

Discontinued Operations (Tables)

3 Months Ended

Jul. 31, 2012

Discontinued Operations [Abstract]

Summary of the operating results of the discontinued operations


	For the Three Months Ended:
	July 31, 2012			July 31, 2011
Net sales from discontinued operations	$	6,732		$	7,461
Loss before income taxes	$	(1,682	)	$	(2,702	)
Net loss from discontinued operations	$	(1,083	)	$	(1,486	)

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References + Details

Capital Lease (Tables)

3 Months Ended

Jul. 31, 2012

Capital Lease [Abstract]

Future minimum lease payments


	Capital Lease Obligation
2013	$	447
2014		596
2015		596
2016		596
2017		1,494

Total future minimum lease payments		3,729
Less amounts representing interest		(550	)
Present value of minimum lease payments		3,179
Less current maturities of capital lease		(424	)

Long-term maturities of capital lease	$	2,755

Inventories (Tables)

3 Months Ended

Jul. 31, 2012

Inventories [Abstract]

Summary of inventories


	July 31, 2012		April 30, 2012
Finished goods	$	16,303	$	14,017
Finished parts		32,670		28,936
Work in process		8,597		7,889
Raw material		5,257		4,454

Total inventories	$	62,827	$	55,296

Accrued Expenses (Tables)

3 Months Ended

Jul. 31, 2012

Accrued Expenses [Abstract]

Summary of Accrued Expenses


	July 31, 2012		April 30, 2012
Accrued distributor incentives	$	4,253	$	5,453
Accrued professional fees		3,040		3,682
Accrued rebates and promotions		2,533		2,862
Accrued employee benefits		2,159		1,902
Accrued commissions		1,301		1,235
Accrued workers’ compensation		986		766
Interest payable		533		1,783
Accrued utilities		500		436
Current portion of capital lease obligation		424		418
Accrued severance/restructuring costs		323		345
Pension liability		115		117
Accrued other		1,698		1,686

Total accrued expenses	$	17,865	$	20,685

Warranty Reserve (Tables)

3 Months Ended

Jul. 31, 2012

Warranty Reserve [Abstract]

Change in accrued warranty


	July 31, 2012			July 31, 2011
Beginning Balance	$	6,412		$	3,969
Warranties issued and adjustments to provisions		828			700
Warranty claims		(962	)		(764	)

Ending Balance	$	6,278		$	3,905

Stockholders' Equity (Tables)

3 Months Ended

Jul. 31, 2012

Stockholders' Equity [Abstract]

Reconciliation of the income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share


	For the three months ended July 31,
	2012			2011
Net income/(loss)
Income from continuing operations	$	18,870		$	2,277
Loss from discontinued operations, net of tax		(1,083	)		(1,486	)

Net income	$	17,787		$	791

Weighted average shares outstanding—Basic		65,352			64,529
Dilutive effect of stock option and award plans		1,446			413

Diluted shares outstanding		66,798			64,942

Earnings per common share—Basic (a)
Income from continuing operations	$	0.29		$	0.04
Loss from discontinued operations	$	(0.02	)	$	(0.02	)
Net income	$	0.27		$	0.01
Earnings per common share—Diluted (a)
Income from continuing operations	$	0.28		$	0.04
Loss from discontinued operations	$	(0.02	)	$	(0.02	)
Net income	$	0.27		$	0.01

(a)	Net income per common share does not equal earnings per common share from continuing plus discontinued operations due to rounding.

Number of shares and weighted average exercise prices


	For the Three Months Ended July 31,
	2012					2011
	Shares			Weighted- Average Price		Shares			Weighted- Average Price
Options outstanding, beginning of year		3,988,164		$	4.67		3,137,565		$	4.73
Granted during year		—			—		554,100			3.56
Exercised during year		(113,336	)		4.67		(100,000	)		1.80
Canceled/forfeited during year		(65,164	)		3.98		(195,334	)		4.87

Options outstanding, end of period		3,809,664		$	4.68		3,396,331		$	4.62

Weighted average remaining contractual life		6.48 years					6.89 years

Options exercisable, end of period		2,273,813		$	4.97		1,883,035		$	5.09

Weighted average remaining contractual life		4.88 years					5.02 years

Assumptions used in valuing options


	For the Three Months Ended July 31,
	2012		2011
Stock option grants:
Risk-free interest rate		—		1.47 - 2.20	%
Expected term		—		5.42 - 8.18 years
Expected volatility		—		66.9 - 73.9	%
Dividend yield		—		0	%

Fair value of PSUs using Monte-Carlo simulation


	For the Three Months Ended July 31,
	2012		2011
Grant date fair market value
Smith & Wesson Holding Corporation	$	—	$	3.57
NASDAQ Composite Index	$	—	$	2,781.91
Russell 2000 Index	$	—	$	—
Volatility (a)
Smith & Wesson Holding Corporation		—		67.67	%
NASDAQ Composite Index		—		29.97	%
Russell 2000 Index		—		—
Correlation coefficient (b)		—		0.46
Risk-free interest rate (c)		—		0.63	%
Dividend yield (d)		—		0	%

(a)	Volatility is calculated over the most recent period that represents the remaining term of the performance period as of the valuation date, or three years.

(b)	The correlation coefficient utilizes the same historical price data used to develop the volatility assumptions.

(c)	The risk-free interest rate is based on the yield of a zero-coupon U.S. Treasury bill, commensurate with the three-year performance period.

(d)	We do not expect to pay dividends in the foreseeable future.

Summary of activity in unvested RSUs and PSUs


	For the Three Months Ended July 31,
	2012					2011
	Total # of Restricted Stock Units			Weighted Average Grant Date Fair Value		Total # of Restricted Stock Units			Weighted Average Grant Date Fair Value
RSUs and PSUs outstanding, beginning of year		384,140		$	7.91		123,600		$	5.27
Awarded		4,500			7.18		95,200			4.76
Vested		(7,000	)		8.12		(1,000	)		5.21
Forfeited		(11,665	)		7.98		—			—

RSUs and PSUs outstanding, end of period		369,975		$	7.89		217,800		$	5.72

Fair Value Measurements (Tables)

3 Months Ended

Jul. 31, 2012

Fair Value Measurements [Abstract]

Fair value of assets and liabilities measured on a recurring basis


	July 31,				April 30,
Description	2012		(Level 1)		2012		(Level 1)
Assets:
Cash equivalents	$	60,516	$	60,516	$	56,717	$	56,717

Total assets	$	60,516	$	60,516	$	56,717	$	56,717

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
Discontinued Operations (Details) - USD ($) $ in Thousands	Jul. 31, 2012	Jul. 31, 2011
Summary of the operating results of the discontinued operations
Net sales from discontinued operations	$ 6,732	$ 7,461
Loss before income taxes	(1,682)	(2,702)
Net loss from discontinued operations	$ (1,083)	$ (1,486)

- Definition

Overall income (loss) from a disposal group that is classified as a component of the entity, before income tax, reported as a separate component of income before extraordinary items. Includes the following (before income tax): income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References + Details

- Definition

Amount of income (loss) from a disposal group, net of income tax before extraordinary items allocable to noncontrolling interests. Includes, net of tax, income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.12)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.14)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 13
-Article 7

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 47
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 15
-Article 5

+ Details

Discontinued Operations (Details Textual) - Smith and Wesson Security Solutions Inc [Member] - USD ($)	3 Months Ended
	Jul. 31, 2012	Jul. 26, 2012	Jul. 10, 2012
Discontinued Operations (Textual) [Abstract]
Purchase price to be paid for assets and liabilities			$ 8,300,000
Working capital adjustment Amount			$ 824,000
Cash received from completed disposition		$ 5,500,000
Recorded remaining proceeds in receivable from completed disposition		$ 2,800,000
Sold net assets	$ 13,000,000
Incurred closing-related costs	1,600,000
Legal, professional, and investment banking fees	655,000
Severance and employee-related costs	918,000
Loss on sale of the disposal group	5,800,000
Additional loss on sale of the disposal group	$ 798,000

Notes Payable (Details Textual)	3 Months Ended		12 Months Ended
Notes Payable (Details Textual)	Jul. 31, 2012 USD ($)	Jul. 31, 2011 USD ($)	Apr. 30, 2012 USD ($)	Apr. 30, 2011 USD ($)	Jun. 15, 2012	Dec. 15, 2011	Dec. 15, 2006 USD ($)
Notes Payable (Textual) [Abstract]
Amount of convertible debt exchanged				$ 50,000,000
Interest Paid on Purchase of Senior Notes	$ 2,974,000	$ 4,109,000
4% senior convertible notes [Member]
Notes Payable (Textual) [Abstract]
Notes issued							$ 80,000,000
Maturity Date	Dec. 15, 2026
Convertible Notes Exchanged Amount				50,000,000
Convertible Notes repurchased			$ 30,000,000
Convertible Notes Outstanding Amount	$ 0
Interest Rate							4.00%
9.5% Senior notes due 2016 [Member]
Notes Payable (Textual) [Abstract]
Notes issued				50,000,000
Senior Notes Exchanged Amount				$ 50,000,000
Convertible Notes repurchased	6,400,000
Interest Rate					9.50%	9.50%
Interest Paid on Purchase of Senior Notes	$ 560,000
9.5% Senior notes due 2016 [Member] \| Minimum [Member]
Notes Payable (Textual) [Abstract]
Consolidated Coverage Ratio	1.00
9.5% Senior notes due 2016 [Member] \| Maximum [Member]
Notes Payable (Textual) [Abstract]
Consolidated Coverage Ratio	2.00
Credit Facilities [Member]
Notes Payable (Textual) [Abstract]
Decrease in revolving line of credit	$ 60,000,000
Date until availability is provided	Dec. 07, 2014
Interest Description of revolving Line of Credit	Variable rate equal to LIBOR or prime plus an applicable margin based on our leverage ratio
Borrowings outstanding	$ 0
Interest rate on borrowings	4.50%

Capital Lease (Details) - USD ($) $ in Thousands	Jul. 31, 2012	Apr. 30, 2012
Future minimum lease payments
2013	$ 447
2014	596
2015	596
2016	596
2017	1,494
Total future minimum lease payments	3,729
Less amounts representing interests	(550)
Present value of minimum lease payments	3,179
Less current maturities of capital lease	(424)	$ (418)
Long-term maturities of capital lease	$ 2,755

Capital Lease (Details Textual) $ in Thousands	1 Months Ended	3 Months Ended
Capital Lease (Details Textual) $ in Thousands	Oct. 31, 2011	Jul. 31, 2012 USD ($) Installment	Apr. 30, 2012 USD ($)	Oct. 28, 2011 USD ($)
Capital Lease (Textual) [Abstract]
Proceeds from lease of machinery and equipment				$ 3,500
Effective interest rate	5.76%
Number of monthly installments \| Installment		60
Condition of lease qualifies as capital lease		Net present value of future lease payments exceed 90% of the fair market value of the leased machinery and equipment
Percentage of fair market value for qualifying as capital lease		90.00%
Current portion of capital lease obligation		$ 424	$ 418
Amount of short term capital lease obligations in other non current liabilities		$ 2,800

- Definition

Amount equal to the present value (the principal) at the beginning of the lease term of minimum lease payments during the lease term (excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, together with any profit thereon) net of payments or other amounts applied to the principal, through the balance sheet date and due to be paid within one year (or one operating cycle, if longer) of the balance sheet date.

+ References + Details

Inventories (Details) - USD ($) $ in Thousands	Jul. 31, 2012	Apr. 30, 2012
Summary of inventories
Finished goods	$ 16,303	$ 14,017
Finished parts	32,670	28,936
Work in process	8,597	7,889
Raw materials	5,257	4,454
Total inventories	$ 62,827	$ 55,296

Accrued Expenses (Details) - USD ($) $ in Thousands	Jul. 31, 2012	Apr. 30, 2012
Summary of Accrued Expenses
Accrued distributor incentives	$ 4,253	$ 5,453
Accrued professional fees	3,040	3,682
Accrued rebates and promotions	2,533	2,862
Accrued employee benefits	2,159	1,902
Accrued commissions	1,301	1,235
Accrued workers' compensation	986	766
Interest payable	533	1,783
Accrued utilities	500	436
Current portion of capital lease obligation	424	418
Accrued severance/restructuring costs	323	345
Pension liability	115	117
Accrued other	1,698	1,686
Total accrued expenses	$ 17,865	$ 20,685

Advertising Costs (Details Textual) - USD ($) $ in Millions	3 Months Ended
Advertising Costs (Details Textual) - USD ($) $ in Millions	Jul. 31, 2012	Jul. 31, 2011
Advertising Costs (Textual) [Abstract]
Advertising expense for continuing operations	$ 3.1	$ 3.0

Warranty Reserve (Details) - USD ($) $ in Thousands	3 Months Ended
Warranty Reserve (Details) - USD ($) $ in Thousands	Jul. 31, 2012	Jul. 31, 2011
Change in accrued warranty
Beginning Balance	$ 6,412	$ 3,969
Warranties issued and adjustments to provisions	828	700
Warranty claims	(962)	(764)
Ending Balance	$ 6,278	$ 3,905

Warranty Reserve (Details Textual) - USD ($)	3 Months Ended
Warranty Reserve (Details Textual) - USD ($)	Jul. 31, 2012	Jul. 31, 2011
Warranty Reserve (Textual) [Abstract]
Recall costs	$ 652,000
Remaining cost related to recall costs	904,000
Warranty expense	$ 828,000	$ 700,000

Self-Insurance Reserves (Details Textual) - USD ($)	3 Months Ended
Self-Insurance Reserves (Details Textual) - USD ($)	Jul. 31, 2012	Jul. 31, 2011	Apr. 30, 2012
Self-Insurance Reserves (Textual) [Abstract]
Reserves for workers' compensation, product liability, municipal liability, and medical/dental costs	$ 9,200,000		$ 9,000,000
Reserves for workers' compensation, product liability, municipal liability, and medical/dental costs, Non-current portion	5,400,000
Reserves for workers' compensation, product liability, municipal liability, and medical/dental costs, included in accrued expenses	2,400,000		2,200,000
Reserves for workers' compensation, product liability, municipal liability, and medical/dental costs, included in accrued product/municipal liability	1,400,000
Workers' compensation receivable classified as an other asset	332,000
Amounts charged to expense	3,400,000	$ 4,100,000
Accrued reserves for product and municipal litigation liabilities	4,300,000		4,500,000
Accrued reserves for product and municipal litigation liabilities, Non-current portion	2,900,000		3,100,000
Receivables from insurance carriers, included in other assets	1,900,000		$ 2,000,000
Receivables from insurance carriers, included in other current assets	$ 25,000

Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 31, 2012	Jul. 31, 2011
Net income/(loss)
Income from continuing operations	$ 18,870	$ 2,277
Loss from discontinued operations, net of tax	(1,083)	(1,486)
Net income/comprehensive income	$ 17,787	$ 791
Weighted average shares outstanding - Basic	65,352	64,529
Dilutive effect of stock option and award plans	1,446	413
Diluted shares outstanding	66,798	64,942
Earnings per common share - Basic
Income from continuing operations	$ 0.29	$ 0.04
Loss from discontinued operations	(0.02)	(0.02)
Net income	0.27	0.01
Earnings per common share - Diluted
Income from continuing operations	0.28	0.04
Loss from discontinued operations	(0.02)	(0.02)
Net income	$ 0.27	$ 0.01

Stockholders' Equity (Details 1) - $ / shares	3 Months Ended
Stockholders' Equity (Details 1) - $ / shares	Jul. 31, 2012	Jul. 31, 2011
Number of shares and weighted average exercise prices
Options outstanding, beginning of year, Shares	3,988,164	3,137,565
Options outstanding, beginning of year, Weighted-Average Exercise Price	$ 4.67	$ 4.73
Granted during year, Shares		554,100
Granted during year, Weighted-Average Exercise Price		$ 3.56
Exercised during year, Shares	(113,336)	(100,000)
Exercised during year, Weighted-Average Exercise Price	$ 4.67	$ 1.80
Canceled/forfeited during year, Shares	(65,164)	(195,334)
Canceled/forfeited during year, Weighted-Average Exercise Price	$ 3.98	$ 4.87
Options outstanding, end of year, Shares	3,809,664	3,396,331
Options outstanding, end of year, Weighted-Average Exercise Price	$ 4.68	$ 4.62
Weighted average remaining contractual life	6 years 5 months 23 days	6 years 10 months 21 days
Options exercisable, end of period, Shares	2,273,813	1,883,035
Options exercisable, end of period, Weighted-Average Exercise Price	$ 4.97	$ 5.09
Weighted average remaining contractual life	4 years 10 months 17 days	5 years 7 days

Stockholders' Equity (Details 2) - 2004 Incentive Stock Plan [Member]	3 Months Ended
	Jul. 31, 2012	Jul. 31, 2011
Assumptions used in valuing options
Dividend yield		0.00%
Minimum [Member]
Assumptions used in valuing options
Risk-free interest rate		1.47%
Expected term		5 years 5 months 1 day
Expected volatility		66.90%
Maximum [Member]
Assumptions used in valuing options
Risk-free interest rate		2.20%
Expected term		8 years 2 months 5 days
Expected volatility		73.90%

Stockholders' Equity (Details 3) - PSUs [Member]	3 Months Ended
Stockholders' Equity (Details 3) - PSUs [Member]	Jul. 31, 2012 $ / shares	Jul. 31, 2011 $ / shares
Fair value of PSUs using Monte-Carlo simulation
Correlation coefficient		0.46
Risk-free interest rate		0.63%
Dividend yield		0.00%
Smith & Wesson Holding Corporation [Member]
Fair value of PSUs using Monte-Carlo simulation
Grant date fair market value		$ 3.57
Volatility		67.67%
NASDAQ Composite Index [Member]
Fair value of PSUs using Monte-Carlo simulation
Grant date fair market value		$ 2,781.91
Volatility		29.97%
Russell 2000 Index [Member]
Fair value of PSUs using Monte-Carlo simulation
Grant date fair market value
Volatility

Stockholders' Equity (Details 4) - RSUs and PSUs [Member] - $ / shares	3 Months Ended
	Jul. 31, 2012	Jul. 31, 2011
Summary of activity in unvested restricted stock units and performance share units
Restricted Stock Units, RSUs and PSUs outstanding, beginning of year	384,140	123,600
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, beginning of year	$ 7.91	$ 5.27
Restricted Stock Units, Awarded	4,500	95,200
Weighted Average Grant Date Fair Value, Awarded	$ 7.18	$ 4.76
Restricted Stock Units, Vested	(7,000)	(1,000)
Weighted Average Grant Date Fair Value, Vested	$ 8.12	$ 5.21
Restricted Stock Units, Forfeited	(11,665)
Weighted Average Grant Date Fair Value, Forfeited	$ 7.98
Restricted Stock Units, RSUs and PSUs outstanding, end of period	369,975	217,800
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, end of period	$ 7.89	$ 5.72

Stockholders' Equity (Details Textual) - USD ($)	3 Months Ended
Stockholders' Equity (Details Textual) - USD ($)	Jul. 31, 2012	Jul. 31, 2011	Apr. 30, 2012	Apr. 30, 2011
Stockholders' Equity (Textual) [Abstract]
Period to award vested and calculate volatility rate	3 years
Option granted		554,100
Exercise price per share		$ 3.56
Option outstanding	3,809,664	3,396,331	3,988,164	3,137,565
Stock-based compensation expense		$ 31,000
Stock-based compensation expense related to the loss on sale of our discontinued operations	$ (798,000)
Stockholders Equity (Additional Textual) [Abstract]
Intrinsic value of stock vested	21,900,000	1,300,000
Intrinsic value of stock exercisable	12,900,000	1,300,000
Intrinsic value of stock exercised	511,000	174,000
Unamortized fair value of outstanding options	$ 2,100,000
Unamortized fair value options recognized remaining vesting period	1 year 1 month 6 days
Performance period	3 years
Percentage of maximum aggregate award granted	200.00%
Percentage of stock outperform in order for target award to be earned	10.00%
Amount of share based compensation delivered	$ 44,000	$ 3,000
Share based compensation delivered	7,000	1,000
Period for cost expected to be recognized over a weighted average remaining contractual term	2 years
General and Administrative Expense [Member]
Stockholders' Equity (Textual) [Abstract]
Stock-based compensation expense	$ 898,000	$ 587,000
Stock-based compensation expense related to the loss on sale of our discontinued operations	$ 45,000
Former President and Chief Executive Officer [Member]
Stockholders' Equity (Textual) [Abstract]
Option granted	500,000
Exercise price per share	$ 1.47
Option outstanding	350,000
Expiration date of options outstanding	Dec. 06, 2014
PSUs [Member]
Stockholders' Equity (Textual) [Abstract]
Unrecognized compensation cost	$ 1,200,000
PSUs [Member] \| Executive Officer [Member]
Stockholders' Equity (Textual) [Abstract]
Performance-based restricted stock units granted in period		95,200
Restricted Stock Units (RSUs) [Member]
Stockholders' Equity (Textual) [Abstract]
Stock-based compensation expense	$ 150,000
Performance-based restricted stock units granted in period	4,500
Other than options cancelled in period	11,665
Unrecognized compensation cost	$ 1,200,000
2004 Incentive Stock Plan [Member]
Stockholders' Equity (Textual) [Abstract]
Percentage of common stock authorized	15.00%
Authorized of common stock	10,000,000
Period to award vested and calculate volatility rate	3 years
Period of award vested exercisable	10 years
Employee Stock Purchase Plan [Member]
Stockholders' Equity (Textual) [Abstract]
Option granted	0	554,100
Convertible Notes [Member]
Stockholders' Equity (Textual) [Abstract]
Number of common stock issuable with antidilutive effect		2,431,906
Stock Options [Member]
Stockholders' Equity (Textual) [Abstract]
Number of common stock issuable with antidilutive effect	384,764	1,160,132

Income Taxes (Details Textual) - USD ($)	3 Months Ended
Income Taxes (Details Textual) - USD ($)	Jul. 31, 2012	Jul. 31, 2011
Income Taxes (Textual) [Abstract]
Estimated Future Income Tax Benefit	$ 6,000,000
Unrecognized tax benefits	1,100,000
Accrued interest and penalties related to uncertain tax positions	$ 232,000	$ 206,000
Unrecognized tax benefits expected reversal period	12 months

- Definition

The component of income tax expense for the period representing the increase (decrease) in the entity's deferred tax assets and liabilities pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Deferred Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6510177

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Commitments and Contingencies (Details)	3 Months Ended
Commitments and Contingencies (Details)	Jul. 31, 2012 USD ($) Cases Claims	Apr. 30, 2012 USD ($)	Mar. 30, 2012 USD ($)
Commitments and Contingencies (Textual) [Abstract]
Restricted cash	$ 3,336,000	$ 3,334,000
Commitments and Contingencies (Additional Textual) [Abstract]
Number of Product liability cases \| Cases	11
Number of Other product liability claims \| Claims	11
Assets held for sale	$ 1,047,000	13,490,000	$ 2,500,000
Reserves related to the land and building	$ 2,100,000	1,500,000
Site remediation costs	1.5
Environmental reserve in non-current liabilities	$ 577,000	$ 577,000
Letter of Credit [Member]
Commitments and Contingencies (Textual) [Abstract]
Restricted cash	2,500,000
Outstanding Letters of Credit	1,200,000
Environmental remediation [Member]
Commitments and Contingencies (Textual) [Abstract]
Restricted cash	812,000
Minimum [Member]
Commitments and Contingencies (Textual) [Abstract]
Compensatory damages sought	75,000
Maximum [Member]
Commitments and Contingencies (Textual) [Abstract]
Compensatory damages sought	$ 1,400,000

Fair Value Measurements (Details) - Recurring [Member] - USD ($) $ in Thousands	Jul. 31, 2012	Apr. 30, 2012
Assets:
Total assets	$ 60,516	$ 56,717
Level 1 [Member]
Assets:
Total assets	$ 60,516	$ 56,717

- Definition

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Company may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months.

+ References + Details