##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
 FORM 10-K
 (Mark
One)
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended February 28, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For
the transition period from 
 to
 Commission file number 0-13394
 
 VIDEO DISPLAY CORPORATION
  Georgia
    
    58-1217564(State of Incorporation)
    
    (IRS Employer Identification No.)1868 Tucker Industrial Road, Tucker Georgia
    
    30084(Address of principal executive offices)
    
    (Zip code)
 (770) 938-2080
  Title of each class
    
    Name of each exchange on which registeredCommon Stock, no par value
    
    NASDAQ/NMS
  o þ
 o þ
 þ o
 þ
 o o
  Large accelerated filer o
Accelerated filer o
Non-accelerated filer o(Do not check if a smaller reporting company)
Smaller reporting company þ o þ
   DOCUMENTS INCORPORATED BY REFERENCE




---



##### 



VIDEO DISPLAY CORPORATION
TABLE OF CONTENTS
 ITEM
    
    
    
    PAGENUMBER
    
    
    
    NUMBERPART IItem 1.
    
    Business
    
    
    2Item 1A.
    
    Risk Factors
    
    
    8Item 1B.
    
    Unresolved Staff Comments
    
    
    11Item 2.
    
    Properties
    
    
    12Item 3.
    
    Legal Proceedings
    
    
    12Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    13PART IIItem 5.
    
    Market for Registrants Common Equity, Related Stockholder Matters and
Issuer Purchases of Equity Securities
    
    
    14Item 6.
    
    Selected Financial Data
    
    
    15Item 7.
    
    Managements Discussion and Analysis of Financial Condition and Results of
Operations
    
    
    16Item 7A.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    27Item 8.
    
    Financial Statements and Supplementary Data
    
    
    28Item 9.
    
    Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure
    
    
    57Item 9A(T).
    
    Controls and Procedures
    
    
    57Item 9B.
    
    Other Information
    
    
    58PART IIIItem 10.
    
    Directors, Executive Officers and Corporate Governance
    
    
    59Item 11.
    
    Executive Compensation
    
    
    59Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
    
    
    59Item 13.
    
    Certain Relationships and Related Transactions, and Director Independence
    
    
    59Item 14.
    
    Principal Accounting Fees and Services
    
    
    59PART IVItem 15.
    
    Exhibits, Financial Statement Schedules
    
    
    60Signatures
    
    
    61EX-10(B)EX-10(C)EX-10(D)EX-21EX-23.1EX-31.1EX-31.2EX-32




---



##### Table of Contents



PART I
 
 Item 1. Business.
 General
  Description of Principal Business
   
    2




---



##### Table of Contents



Segment Information
  Principal Products In Display Segment
 Monitors
      3




---



##### Table of Contents



Data Display CRTs and Entertainment CRTs
       Component Parts
   4




---



##### Table of Contents



Principal Products in Wholesale Distribution Segment
  Patents and Trademarks
  Seasonal Variations in Business
  Working Capital Practices
  Concentration of Customers
  5




---



##### Table of Contents



Backlog
  Government Contracts
  Environmental Matters
  Research and Development
  Employees
  6




---



##### Table of Contents



Competition
        7




---



##### Table of Contents



Item 1A. Risk Factors.
 Forward looking statements and risk factors
   Our industry is highly competitive and competitive conditions may adversely affect our business.
   Competitors or third parties may infringe on our intellectual property.
  8




---



##### Table of Contents



Migration to flat panel and other technology may negatively affect our CRT business.
   Future acquisitions may not provide benefits to the Company.
  Changes in government priorities may affect military spending, and our financial condition and
results of operations could suffer if their purchases decline.
  If we are unable to retain certain key personnel and hire new highly skilled personnel, we may not
be able to execute our business plan.
  Our business operations could be disrupted if our information technology systems fail to perform
adequately.
  Changes to accounting rules or regulations may adversely affect our results of operations.
 9




---



##### Table of Contents



The Companys stock price may be negatively affected by a variety of factors.
  Changes to estimates related to long term assets, or operating results that are lower than our
current estimates, may cause us to incur impairment charges.
  International factors could negatively affect our business.
  
    
    Economic downturns;
    
    Currency exchange rate and interest rate fluctuations;
    
    Changes in governmental policy, including, among others, those relating to taxation;
    
    International military, political, diplomatic and terrorist incidents;
    
    Government instability;
    
    Nationalization of foreign assets; and
    
    Tariffs and governmental trade policies.
  Our level of indebtedness could adversely affect the future operation of our business.
 Our level of indebtedness could have important consequences, including:
    
    making it more difficult for us to make payments on the debt, as our
business may not be able to generate sufficient cash flows from
operating activities to meet our debt service obligations;
 10




---



##### Table of Contents




    
    increasing our vulnerability to general economic and industry conditions;
    
    requiring a substantial portion of cash flow from operating activities
to be dedicated to the payment of our outstanding lines of credit and
long-term debt, and as a result reducing our ability to use our cash
flow to fund our operations and capital expenditures, capitalize on
future business opportunities and expand our business and execute our
strategy;
    
    exposing us to the risk of increased interest rates since much of our
borrowings are at variable rates of interest;
    
    causing us to make non-strategic divestitures;
    
    limiting our ability to obtain additional financing for working
capital, capital expenditures, debt service requirements and other
general corporate purposes; and
    
    limiting our ability to adjust to changing market conditions and to
react to competitive pressure and placing us at a competitive
disadvantage compared to our competitors who may have lower debt
leverage.
 Our debt agreements contain covenants that limit our flexibility in operating our business.
  
    
    incur additional indebtedness;
    
    make certain investments, loans or advances;
    
    transfer and sell certain assets;
    
    create or permit liens on assets;
    
    consolidate, merge, sell or otherwise dispose of all or substantially all of our assets;
    
    engage in any business activity substantially different from our current businesses;
    
    pay dividends; and
    
    cause, permit or suffer a change in capital ownership.
  
 Item 1B. Unresolved Staff Comments.
  11




---



##### Table of Contents



Item 2. Properties.
  Location
    
    Square Feet
    
    Lease ExpiresCRT, Monitor and Electron Gun  Manufacturing and Warehouse FacilitiesTucker, Georgia
    
    
    59,000
    
    
    October 31, 2018Stone Mountain, Georgia
    
    
    45,000
    
    
    May 31, 2018White Mills, Pennsylvania
    
    
    110,000
    
    
    Company OwnedBossier City, Louisiana
    
    
    26,000
    
    
    Company OwnedBirdsboro, Pennsylvania
    
    
    40,000
    
    
    Company Owned (a)Phelps, New York
    
    
    32,000
    
    
    Company OwnedCape Canaveral, Florida
    
    
    30,000
    
    
    January 17, 2010Lexington, Kentucky
    
    
    80,000
    
    
    March 31, 2010Wholesale Electronic Parts DistributionBedford Heights, Ohio
    
    
    60,000
    
    
    Company OwnedBedford Heights, Ohio
    
    
    40,000
    
    
    January 31, 2011Beachwood, Ohio
    
    
    16,000
    
    
    July 31, 2010Richardson, Texas
    
    
    13,000
    
    
    April 30, 2012Buffalo, New York
    
    
    30,000
    
    
    November 30, 2009
 
 (a)
    
    The Birdsboro, Pennsylvania property secures mortgage loans from a bank
with a principal balance of $0.5 million as of February 28, 2009. This mortgage
loan bears an interest rate of approximately 7.3%. Monthly principal and interest
payments of approximately $5,000 are payable through October 2021. 
 Item 3. Legal Proceedings.
  Barco Federal Systems, LLC and
Barco N.V., a Belgian corporation Aydin Displays, Inc. a Pennsylvania corporation
 12




---



##### Table of Contents



Item 4. Submission of Matters to a Vote of Security Holders.
  13




---



##### Table of Contents



PART II
 
 Item 5. Market for Registrants Common Equity, Related Stockholder Matters, and Issuer Purchases of
Equity Securities.
   For Fiscal Years EndedFebruary 28, 2009
    
    February 29, 2008Quarter Ended
    
    High
    
    Low
    
    High
    
    LowMay
    
    $
    7.90
    
    
    $
    6.86
    
    
    $
    8.31
    
    
    $
    7.19August
    
    
    8.42
    
    
    
    7.00
    
    
    
    8.12
    
    
    
    7.45November
    
    
    9.30
    
    
    
    7.00
    
    
    
    8.72
    
    
    
    7.64February
    
    
    8.02
    
    
    
    2.00
    
    
    
    8.00
    
    
    
    6.28
   Securities Authorized for Issuance Under Equity Compensation Plans
  Number of securitiesNumber of
    
    
    
    
    
    remaining available forsecurities to be
    
    
    
    
    
    future issuance underissued upon exercise
    
    Weighted-average
    
    equity compensationof outstanding
    
    exercise price of
    
    plans (excludingoptions, warrants
    
    outstanding options,
    
    securities reflected inStock Option Plan
    
    and rights
    
    warrants and rights
    
    first column)Equity compensation plans
approved by security holders
    
    
    87,000
    
    
    $
    5.46
    
    
    
    747,000
 14




---



##### Table of Contents



Issuer Purchases of Equity Securities
   Maximum Numberof Shares thatTotal
    
    
    
    
    
    Total Number of
    
    May Yet BeNumber
    
    Average
    
    Shares Purchased
    
    Purchased Underof
    
    Price
    
    as Part of Publicly
    
    the Plans orShares
    
    Paid Per
    
    Announced Plans
    
    Programs atFiscal Period
    
    Purchased
    
    Share
    
    or Programs
    
    Period EndDecember 1, 2008 through
December 31, 2008
    
    
    25,852
    
    
    $
    7.56
    
    
    
    25,852
    
    
    
    652,085January 1, 2009 through
January 31, 2009
    
    
    212,058
    
    
    
    4.27
    
    
    
    212,058
    
    
    
    440,027February 1, 2009 through
February 28, 2009
    
    
    394,572
    
    
    
    3.35
    
    
    
    394,572
    
    
    
    45,455Total Fourth Quarter
Fiscal 2009
    
    
    632,482
    
    
    $
    3.83
    
    
    
    632,482
    
    
    
    45,455
 
 Item 6. Selected Financial Data
  15




---



##### Table of Contents



Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations.
 Overview
 Disclosures about Segments of an Enterprise and Related Information.
 
    
    Monitor offers a wide range of CRT, flat panel and projection display systems for use
in training and simulation, military, medical, and industrial applications.
    
    Data Display CRTs offers a wide range of CRTs for use in data display screens,
including computer terminal monitors and medical monitoring equipment.
    
    Entertainment CRTs offers a wide range of CRTs and projection tubes for television
and home theater equipment.
    
    Component Parts provides replacement electron guns and other components for CRTs
primarily for servicing the Companys internal needs.
  Inventory
management
  Interest rate exposure
 16




---



##### Table of Contents



Operations
   2009
    
    
    2008Amount
    
    
    %
    
    
    Amount
    
    
    %Net SalesDisplay SegmentMonitors
    
    $
    40,596
    
    
    
    55.7
    %
    
    $
    44,331
    
    
    
    52.3
    %Data Display CRTs
    
    
    8,003
    
    
    
    11.0
    
    
    
    11,285
    
    
    
    13.3Entertainment CRTs
    
    
    1,281
    
    
    
    1.7
    
    
    
    2,217
    
    
    
    2.6Component Parts
    
    
    263
    
    
    
    0.4
    
    
    
    454
    
    
    
    0.6Total Display Segment
    
    
    50,143
    
    
    
    68.8
    
    
    
    58,287
    
    
    
    68.8Wholesale Distribution
Segment
    
    
    22,760
    
    
    
    31.2
    
    
    
    26,407
    
    
    
    31.2$
    72,903
    
    
    
    100.0
    %
    
    $
    84,694
    
    
    
    100.0
    %Costs and expensesCost of goods sold
    
    $
    48,023
    
    
    
    65.9
    %
    
    $
    56,199
    
    
    
    66.4
    %Selling and delivery
    
    
    7,388
    
    
    
    10.1
    
    
    
    7,725
    
    
    
    9.1General and administrative
    
    
    16,854
    
    
    
    23.1
    
    
    
    15,565
    
    
    
    18.472,265
    
    
    
    99.1
    
    
    
    79,489
    
    
    
    93.9Income from operations
    
    
    638
    
    
    
    0.9
    
    
    
    5,205
    
    
    
    6.1Interest expense
    
    
    (1,083
    )
    
    
    (1.5
    )
    
    
    (1,771
    )
    
    
    (2.1
    )Other income, net
    
    
    325
    
    
    
    0.4
    
    
    
    500
    
    
    
    0.6Income (loss) before income taxes
    
    
    (120
    )
    
    
    (0.2
    )
    
    
    3,934
    
    
    
    4.6Provision
for  (benefit from) income taxes
    
    
    (434
    )
    
    
    (0.6
    )
    
    
    1,163
    
    
    
    1.4Net income
    
    $
    314
    
    
    
    0.4
    %
    
    $
    2,771
    
    
    
    3.2
    %
 17




---



##### Table of Contents



Fiscal 2009 Compared to Fiscal 2008
         18




---



##### Table of Contents



19




---



##### Table of Contents



Fiscal 2008 Compared to Fiscal 2007
          20




---



##### Table of Contents



Managements Discussion of Liquidity and Capital Resources
   21




---



##### Table of Contents



22




---



##### Table of Contents



Transactions with Related Parties, Contractual Obligations, and Commitments
   23




---



##### Table of Contents



Contractual Obligations
  Payments due by periodLess than
    
    1 - 3
    
    3 - 5
    
    More thanTotal
    
    1 year
    
    years
    
    years
    
    5 yearsLong-term debt obligations
    
    $
    24,443
    
    
    $
    4,245
    
    
    $
    18,785
    
    
    $
    853
    
    
    $
    560Capital lease obligations
    
    
    349
    
    
    
    187
    
    
    
    162
    
    
    
    
    
    
    
    Interest obligations on
long-term debt and capital
lease obligations (a)
    
    
    1,725
    
    
    
    922
    
    
    
    532
    
    
    
    154
    
    
    
    117Operating lease obligations
    
    
    4,918
    
    
    
    1,455
    
    
    
    1,275
    
    
    
    772
    
    
    
    1,416Purchase obligations
    
    
    1,352
    
    
    
    1,352
    
    
    
    
    
    
    
    
    
    
    
    Warranty reserve obligations
    
    
    585
    
    
    
    585
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    33,372
    
    
    $
    8,746
    
    
    $
    20,754
    
    
    $
    1,779
    
    
    $
    2,093
 
 (a)
    
    This line item was calculated by utilizing the effective rate on outstanding debt as of
February 28, 2009 and the increase due to the covenant waiver. Off-Balance Sheet Arrangements
  Critical Accounting Policies
  Reserves on inventories
   24




---



##### Table of Contents



Revenue and profit or loss recognition
     Allowance for bad debts
  25




---



##### Table of Contents



Warranty
reserves
  Other loss contingencies
  Reclassified Revenues
  Recent Accounting Pronouncements
 Fair Values Measurements.
 The Fair Value Option for Financial
Assets and Financial Liabilities.
 Accounting for Uncertainty in
Income Taxes Accounting for Income Taxes
  26




---



##### Table of Contents



Business Combinations. purchase method
 Non-controlling Interest in Consolidated
Financial Statements.
 Determination of the Useful Life of Intangible
Assets Goodwill and Other Intangible Assets
  Impact of Inflation
  
 Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
  27




---



##### Table of Contents



Item 8. Financial Statements and Supplementary Data.
   Report of Independent Registered Public Accounting Firm
    
    
    29Consolidated Balance Sheets as of February 28, 2009 and February 29, 2008
    
    
    30Consolidated Statements of Operations for the years ended
February 28, 2009 and February 29, 2008
    
    
    32Consolidated Statements of Shareholders Equity and Comprehensive Income for the
years ended February 28, 2009 and February 29, 2008
    
    
    33Consolidated Statements of Cash Flows for the years ended
February 28, 2009 and February 29, 2008
    
    
    34Notes to Consolidated Financial Statements
    
    
    35
 28




---



##### Table of Contents



Report of Independent Registered Public Accounting Firm
 
    
 29




---



##### Table of Contents



February 28,
    
    
    February 29,2009
    
    
    2008AssetsCurrent AssetsCash
    
    $
    662
    
    
    $
    1,636Accounts receivable, less allowance for
bad debts of $608 and $201, respectively
    
    
    9,088
    
    
    
    10,373Inventories, net
    
    
    36,692
    
    
    
    34,550Cost and estimated earnings in excess of
billings on uncompleted contracts
    
    
    1,421
    
    
    
    2,225Deferred income taxes
    
    
    2,724
    
    
    
    2,998Income taxes refundable
    
    
    1,836
    
    
    
    672Investments
    
    
    335
    
    
    
    Prepaid expenses and other current assets
    
    
    612
    
    
    
    367Total current assets
    
    
    53,370
    
    
    
    52,821Property, plant and equipment:Land
    
    
    585
    
    
    
    585Buildings
    
    
    8,262
    
    
    
    8,258Machinery and equipment
    
    
    21,786
    
    
    
    20,94330,633
    
    
    
    29,786Accumulated depreciation
    
    
    (23,866
    )
    
    
    (22,470
    )Net property, plant and equipment
    
    
    6,767
    
    
    
    7,316Goodwill
    
    
    1,376
    
    
    
    1,343Intangible assets, net
    
    
    2,083
    
    
    
    2,954Deferred income taxes
    
    
    576
    
    
    
    192Other assets
    
    
    36
    
    
    
    74Total assets
    
    $
    64,208
    
    
    $
    64,700
  30




---



##### Table of Contents



February 28, 2009
    
    
    February 29, 2008Liabilities and Shareholders EquityCurrent liabilitiesAccounts payable
    
    $
    7,175
    
    
    $
    7,334Accrued liabilities
    
    
    5,245
    
    
    
    5,074Billings in excess of cost and estimated earnings on uncompleted contracts
    
    
    108
    
    
    
    Current maturities of notes payable to officers
and directors
    
    
    396
    
    
    
    648Line of credit
    
    
    3,493
    
    
    
    Current maturities of long-term debt
and financing lease obligations
    
    
    544
    
    
    
    789Total current liabilities
    
    
    16,961
    
    
    
    13,845Line of credit
    
    
    16,498
    
    
    
    15,164Long-term debt, less current maturities
    
    
    1,707
    
    
    
    1,928Financing lease obligations, less current maturities
    
    
    162
    
    
    
    313Notes payable to officers and directors,
less current maturities
    
    
    1,992
    
    
    
    2,377Other long-term liabilities
    
    
    123
    
    
    
    123Total liabilities
    
    
    37,443
    
    
    
    33,750Commitments and contingencies (See Note 15)Shareholders EquityPreferred stock, no par value  10,000 shares
authorized; none issued and outstanding
    
    
    
    
    
    
    Common stock, no par value  50,000 shares
authorized; 9,707 issued and 8,601 outstanding
at February 28, 2009, and 9,707 issued and 9,491
outstanding at February 29, 2008
    
    
    7,293
    
    
    
    7,293Additional paid-in capital
    
    
    147
    
    
    
    127Retained earnings
    
    
    26,461
    
    
    
    26,147Accumulated other comprehensive income (loss)
    
    
    (90
    )
    
    
    85Treasury stock, 1,165 shares at February 28, 2009
and 275 shares at February 29, 2008 at cost
    
    
    (7,046
    )
    
    
    (2,702
    )Total shareholders equity
    
    
    26,765
    
    
    
    30,950Total liabilities and shareholders equity
    
    $
    64,208
    
    
    $
    64,700
  31




---



##### Table of Contents



February 28, 2009
    
    
    February 29, 2008Net sales
    
    $
    72,903
    
    
    $
    84,694Cost of goods sold
    
    
    48,023
    
    
    
    56,199Gross profit
    
    
    24,880
    
    
    
    28,495Operating expensesSelling and delivery
    
    
    7,388
    
    
    
    7,725General and administrative
    
    
    16,854
    
    
    
    15,56524,242
    
    
    
    23,290Operating income
    
    
    638
    
    
    
    5,205Other income (expense)Interest expense
    
    
    (1,083
    )
    
    
    (1,771
    )Other, net
    
    
    325
    
    
    
    500(759
    )
    
    
    (1,271
    )Income
(loss) before income taxes
    
    
    (120
    )
    
    
    3,934Provision
for (benefit from) income taxes
    
    
    (434
    )
    
    
    1,163Net income
    
    $
    314
    
    
    $
    2,771Net income per share  basic
    
    $
    0.03
    
    
    $
    0.29Net income per share  diluted
    
    $
    0.03
    
    
    $
    0.29Average shares outstanding  basic
    
    
    9,315
    
    
    
    9,583Average shares outstanding  diluted
    
    
    9,664
    
    
    
    9,664
  32




---



##### Table of Contents



CurrentAccumulated
    
    
    
    
    
    
    YearAdditional
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    Compre-Common
    
    
    Share
    
    
    Paid-in
    
    
    Retained
    
    
    Comprehensive
    
    
    Treasury
    
    
    hensiveShares
    
    
    Amount
    
    
    Capital
    
    
    Earnings
    
    
    Income (Loss)
    
    
    Stock
    
    
    IncomeBalance, February 28, 2007
    
    
    9,600
    
    
    
    7,284
    
    
    
    171
    
    
    
    23,376
    
    
    
    95
    
    
    
    (1,385
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,771
    
    
    
    
    
    
    
    
    
    
    $
    2,771Foreign currency
translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (10
    )
    
    
    
    
    
    
    (10
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,761Issuance of common stock
under stock option plan
    
    
    
    
    
    
    9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Issuance of common stock
from treasury
    
    
    67
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Repurchase of treasury stock
    
    
    (176
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,317
    )Share based compensation
    
    
    
    
    
    
    
    
    
    
    (44
    )
    
    
    
    
    
    
    
    
    
    
    Balance, February 29, 2008
    
    
    9,491
    
    
    
    7,293
    
    
    
    127
    
    
    
    26,147
    
    
    
    85
    
    
    
    (2,702
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    314
    
    
    
    
    
    
    
    
    
    
    $
    314Foreign currency
translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (175
    )
    
    
    
    
    
    
    (175
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    139Issuance of common stock
from treasury
    
    
    9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    77Repurchase of treasury stock
    
    
    (899
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,421
    )Share based compensation
    
    
    
    
    
    
    
    
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    Balance, February 28, 2009
    
    
    8,601
    
    
    $
    7,293
    
    
    $
    147
    
    
    $
    26,461
    
    
    $
    (90
    )
    
    $
    (7,046
    )
  33




---



##### Table of Contents



February 28,
    
    
    February 29,2009
    
    
    2008Operating ActivitiesNet income
    
    $
    314
    
    
    $
    2,771Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation and amortization
    
    
    2,387
    
    
    
    2,354Provision for bad debts
    
    
    406
    
    
    
    (257
    )Reserves on inventories
    
    
    1,247
    
    
    
    1,875Non-cash charge for share based compensation
    
    
    20
    
    
    
    (44
    )Deferred income taxes
    
    
    (110
    )
    
    
    (219
    )(Gain) Loss on disposal of equipment
    
    
    36
    
    
    
    29Changes in working capital items, net of effect of
acquisitions:Accounts receivable
    
    
    879
    
    
    
    380Inventories
    
    
    (3,389
    )
    
    
    (3,081
    )Cost, estimated earnings and billings, net
on uncompleted contracts
    
    
    912
    
    
    
    705Prepaid expenses and other assets
    
    
    (241
    )
    
    
    (816
    )Increase in income taxes refundable
    
    
    (1,164
    )
    
    
    Accounts payable and accrued liabilities
    
    
    12
    
    
    
    2,028Net cash provided by operating activities
    
    
    1,309
    
    
    
    5,725Investing ActivitiesCapital expenditures
    
    
    (991
    )
    
    
    (839
    )Patents
    
    
    (12
    )
    
    
    Investments
in equity securities
    
    
    (334
    )
    
    
    Net cash used in investing activities
    
    
    (1,337
    )
    
    
    (839
    )Financing ActivitiesProceeds from long-term debt, lines of credit
and financing lease obligations
    
    
    24,763
    
    
    
    22,749Repayments of long-term debt, lines of credit
and financing lease obligations
    
    
    (20,552
    )
    
    
    (22,867
    )Proceeds from notes payable from officers and
directors
    
    
    115
    
    
    
    1,103Repayments of notes payable to officers and directors
    
    
    (2,459
    )
    
    
    (4,143
    )Proceeds from stock option exercises
    
    
    
    
    
    
    9Purchases and retirements of common stock and
purchases of treasury stock
    
    
    (2,638
    )
    
    
    (1,317
    )Net cash used in financing activities
    
    
    (771
    )
    
    
    (4,466
    )Effect of exchange rates on cash
    
    
    (175
    )
    
    
    (10
    )Net change in cash
    
    
    (974
    )
    
    
    410Cash, beginning of year
    
    
    1,636
    
    
    
    1,226Cash, end of year
    
    $
    662
    
    
    $
    1,636
 
 34




---



##### Table of Contents



Note 1. Summary of Significant Accounting Policies
 Fiscal Year
  Nature of Business
  Principles of Consolidation
  Reclassifications
 Reporting Revenue Gross as a Principal versus Net as an Agent
 Use of Estimates
  Revenue Recognition
  35




---



##### Table of Contents



Research and Development
  Financial Instruments
  Accounts Receivable and Allowance for Doubtful Accounts
  36




---



##### Table of Contents



Warranty Reserves
  Inventories
   Property, Plant and Equipment
   37




---



##### Table of Contents



Goodwill and Other Intangibles
   Stock-Based Compensation Plans
 Share-Based Payment Accounting for Stock Issued to Employees, Accounting for Stock-Based Compensation,
   Comprehensive Income
  38




---



##### Table of Contents



Stock Repurchase Program
  Taxes on Income
 Accounting for Income Taxes,
 Accounting for Uncertainty
in Income Taxes
   Foreign Currency Translations
  39




---



##### Table of Contents



Net Income per Share
   Average Shares
    
    
    Net IncomeNet Income
    
    
    Outstanding
    
    
    Per Share2009Basic
    
    $
    314
    
    
    
    9,315
    
    
    $
    0.03Effect of dilution:Options
    
    
    
    
    
    
    349Diluted
    
    $
    314
    
    
    
    9,664
    
    
    $
    0.032008Basic
    
    $
    2,771
    
    
    
    9,586
    
    
    $
    0.29Effect of dilution:Options
    
    
    
    
    
    
    81Diluted
    
    $
    2,771
    
    
    
    9,667
    
    
    $
    0.29
  Segment Reporting
 Disclosures about Segments of an Enterprise and Related
Information
 Recent Accounting Pronouncements
 Fair Values Measurements.
 40




---



##### Table of Contents



The Fair Value Option for Financial
Assets and Financial Liabilities.
 Accounting for Uncertainty in
Income Taxes Accounting for Income Taxes
  Business Combinations. purchase method
 Non-controlling Interest in Consolidated
Financial Statements.
 41




---



##### Table of Contents



Determination of the Useful Life of Intangible
Assets Goodwill and Other Intangible Assets
  42




---



##### Table of Contents



Note 2. Costs and Estimated Earnings Related to Billings on Uncompleted Contracts
  February 28,
    
    
    February 29,2009
    
    
    2008Costs incurred to date on uncompleted contracts
    
    $
    3,423
    
    
    $
    7,325Estimated earnings recognized to date on these contracts
    
    
    1,515
    
    
    
    1,6174,938
    
    
    
    8,942Billings to date
    
    
    (3,625
    )
    
    
    (6,717
    )Costs and estimated earnings in excess of billings, net
    
    $
    1,313
    
    
    $
    2,225Costs and estimated earnings in excess of billings
    
    $
    1,421
    
    
    $
    2,225Billings in excess of costs and estimated earnings
    
    
    (108
    )
    
    
    $
    1,313
    
    
    $
    2,225
   43




---



##### Table of Contents



44




---



##### Table of Contents



Note 3. Intangible Assets
  February 28, 2009
    
    
    February 29, 2008Accumulated
    
    
    
    
    
    
    AccumulatedCost
    
    
    Amortization
    
    
    Cost
    
    
    AmortizationCustomer lists
    
    $
    3,611
    
    
    $
    2,124
    
    
    $
    3,611
    
    
    $
    1,635Non-compete
agreements
    
    
    1,245
    
    
    
    1,054
    
    
    
    1,245
    
    
    
    803Patents/designs
    
    
    777
    
    
    
    395
    
    
    
    765
    
    
    
    274Other intangibles
    
    
    149
    
    
    
    126
    
    
    
    149
    
    
    
    104$
    5,782
    
    
    $
    3,699
    
    
    $
    5,770
    
    
    $
    2,816
  Year
    
    Amort. Exp.2010
    
    $
    6652011
    
    $
    2392012
    
    $
    1822013
    
    $
    1382014
    
    $
    138Thereafter
    
    $
    721
 Note 4. Business Acquisitions
  Note 5. Inventories
  February 28,
    
    
    February 29,2009
    
    
    2008Raw materials
    
    $
    20,086
    
    
    $
    19,028Work-in-process
    
    
    7,938
    
    
    
    6,699Finished goods
    
    
    12,245
    
    
    
    14,37440,269
    
    
    
    40,101Reserves for obsolescence
    
    
    (3,577
    )
    
    
    (5,551
    )$
    36,692
    
    
    $
    34,550
  45




---



##### Table of Contents



Note 6. Long-Term Debt
  February 28,
    
    
    February 29,2009
    
    
    2008Note payable to RBC Bank; interest rate at
LIBOR plus applicable margin as defined per
the loan agreement, (2.51% combined rate as
of February 28, 2009); monthly principal
payments of $25 plus accrued interest,
payable through July 2011; collateralized
by all assets of the Company
    
    $
    1,553
    
    
    $
    2,050Mortgage payable to bank; interest rate at
Federal Home Loan Bank Board Index rate
plus 1.95% (7.25% as of February 28, 2009);
monthly principal and interest payments of
$5 payable through October 2021;
collateralized by land and building of
Teltron Technologies, Inc.
    
    
    478
    
    
    
    500Other
    
    
    33
    
    
    
    62,064
    
    
    
    2,556Financing lease obligations
    
    
    349
    
    
    
    4742,413
    
    
    
    3,030Less current maturities
    
    
    (544
    )
    
    
    (789
    )$
    1,869
    
    
    $
    2,241
  Year
    
    Amount2010
    
    $
    5442011
    
    
    4752012
    
    
    9932013
    
    
    302014
    
    
    32Thereafter
    
    
    339$
    2,413
  Note 7. Lines of Credit
  46




---



##### Table of Contents



Note 8. Notes Payable to Officers and Directors
   Note 9. Convertible Notes Payable
   47




---



##### Table of Contents



Note 10. Accrued Expenses and Warranty Obligations
  2009
    
    
    2008Balance at beginning of year
    
    $
    576
    
    
    $
    363Provision for current year sales
    
    
    1,713
    
    
    
    941Warranty costs incurred
    
    
    (1,704
    )
    
    
    (728
    )Balance at end of year
    
    $
    585
    
    
    $
    576
  February 28,
    
    
    February 29,2009
    
    
    2008Accrued compensation and benefits
    
    $
    1,095
    
    
    $
    1,219Accrued liability to issue stock
    
    
    1,625
    
    
    
    1,625Accrued warranty
    
    
    585
    
    
    
    576Accrued customer advances
    
    
    128
    
    
    
    173Accrued other
    
    
    1,812
    
    
    
    1,481$
    5,245
    
    
    $
    5,074
 Note 11. Stock Options
  48




---



##### Table of Contents



AverageNumber of
    
    
    ExerciseShares
    
    
    Price(in thousands)
    
    
    Per ShareOutstanding at February 28, 2007
    
    
    234
    
    
    $
    5.52Granted
    
    
    41
    
    
    
    7.74Exercised
    
    
    (67
    )
    
    
    1.45Forfeited or expired
    
    
    (84
    )
    
    
    10.23Outstanding at February 29, 2008
    
    
    124
    
    
    $
    5.31Granted
    
    
    6
    
    
    
    8.08Forfeited or expired
    
    
    (43
    )
    
    
    5.40Outstanding at February 28, 2009
    
    
    87
    
    
    $
    5.46Options exercisableFebruary 28, 2009
    
    
    46
    
    
    $
    3.40February 29, 2008
    
    
    89
    
    
    
    4.37
 Options Outstanding
    
    Options ExercisableNumber
    
    Weighted Average
    
    
    
    
    
    NumberOutstanding at
    
    Remaining
    
    Weighted
    
    Exercisable at
    
    WeightedRange
    
    February 28, 2009
    
    Contractual Life
    
    Average
    
    February 28, 2009
    
    Averageof Exercise Prices
    
    (in thousands)
    
    (in years)
    
    Exercise Price
    
    (in thousands)
    
    Exercise Price$2.20 - 2.20
    
    
    20
    
    
    
    1.4
    
    
    $
    2.20
    
    
    
    20
    
    
    $
    2.203.25 - 3.25
    
    
    20
    
    
    
    2.7
    
    
    
    3.25
    
    
    
    20
    
    
    
    3.257.71 - 8.08
    
    
    47
    
    
    
    7.2
    
    
    
    7.78
    
    
    
    6
    
    
    
    7.9187
    
    
    
    4.8
    
    
    $
    5.46
    
    
    
    46
    
    
    $
    3.40
  49




---



##### Table of Contents



Note 12. Taxes on Income
  Fiscal Year EndedFebruary 28,
    
    
    February 29,2009
    
    
    2008Current:Federal
    
    $
    (400
    )
    
    $
    1,311State
    
    
    76
    
    
    
    (22
    )Foreign
    
    
    
    
    
    
    93(324
    )
    
    
    1,382Deferred:Federal
    
    
    (96
    )
    
    
    (190
    )State
    
    
    (14
    )
    
    
    (29
    )(110
    )
    
    
    (219
    )Total
    
    $
    (434
    )
    
    $
    1,163
  Fiscal Year EndedFebruary 28,
    
    
    February 29,2009
    
    
    2008U.S. operations
    
    $
    (52
    )
    
    $
    3,627Foreign operations
    
    
    (68
    )
    
    
    307$
    (120
    )
    
    $
    3,934
 50




---



##### Table of Contents



Fiscal Year EndedFebruary 28,
    
    
    February 29,2009
    
    
    2008Statutory U.S. federal income tax rate
    
    $
    (39
    )
    
    $
    1,338State income taxes, net of federal benefit
    
    
    (2
    )
    
    
    (76
    )Foreign operating loss
    
    
    (23
    )
    
    
    (12
    )Research and experimentation credits
    
    
    (408
    )
    
    
    Transfer pricing adjustment
    
    
    42
    
    
    
    Non-deductible expenses
    
    
    55
    
    
    
    3Domestic production activities deduction
    
    
    (23
    )
    
    
    (84
    )Other
    
    
    (34
    )
    
    
    (6
    )Taxes at effective income tax rate
    
    $
    (434
    )
    
    $
    1,163
    Fiscal Year EndedFebruary 28,
    
    
    February 29,2009
    
    
    2008Deferred tax assets:Investment capital loss carry forwards
    
    $
    
    
    
    $
    41Uniform capitalization costs
    
    
    720
    
    
    
    362Inventory reserves
    
    
    1,359
    
    
    
    2,075Accrued liabilities
    
    
    712
    
    
    
    793Allowance for doubtful accounts
    
    
    231
    
    
    
    77Amortization of intangibles
    
    
    559
    
    
    
    401Other
    
    
    
    
    
    
    273,581
    
    
    
    3,776State NOL
    
    
    134
    
    
    
    Valuation
allowance
    
    
    
    
    
    
    (38
    )Foreign
tax credit carryforward
    
    
    107
    
    
    
    Deferred tax liabilities:Basis difference of property, plant and equipment
    
    
    (483
    )
    
    
    (531
    )Other
    
    
    (39
    )
    
    
    (17
    )Net deferred tax assets
    
    $
    3,300
    
    
    $
    3,190Current asset
    
    $
    2,724
    
    
    $
    2,998Non-current asset
    
    
    576
    
    
    
    192$
    3,300
    
    
    $
    3,190
  51




---



##### Table of Contents



Note 13. Segment Information
 Disclosures about Segments of an Enterprise and Related
Information,
    Fiscal Year EndedFebruary 28,
    
    
    February 29,2009
    
    
    2008Net SalesDisplay SegmentMonitors
    
    $
    40,596
    
    
    $
    44,331Data display CRTs
    
    
    8,003
    
    
    
    11,285Entertainment CRTs
    
    
    1,281
    
    
    
    2,217Component parts
    
    
    263
    
    
    
    45450,143
    
    
    
    58,287Wholesale Distribution Segment
    
    
    22,760
    
    
    
    26,407$
    72,903
    
    
    $
    84,694
 52




---



##### Table of Contents



Fiscal Year EndedFebruary 28,
    
    
    February 29,2009
    
    
    2008Income (loss) before income taxesDisplay SegmentMonitors
    
    $
    1,252
    
    
    $
    3,826Data display CRTs
    
    
    504
    
    
    
    1,320Entertainment CRTs
    
    
    (173
    )
    
    
    481Component parts
    
    
    317
    
    
    
    1881,900
    
    
    
    5,815Wholesale Distribution Segment
    
    
    (1,262
    )
    
    
    (610
    )638
    
    
    
    5,205Other income (expense)Interest expense
    
    
    (1,083
    )
    
    
    (1,771
    )Other, net
    
    
    325
    
    
    
    500$
    (120
    )
    
    $
    3,934
 Fiscal Year EndedFebruary 28,
    
    
    February 29,2009
    
    
    2008Depreciation and amortizationDisplay SegmentMonitors
    
    $
    1,804
    
    
    $
    1,815Data display CRTs
    
    
    166
    
    
    
    176Entertainment CRTs
    
    
    34
    
    
    
    35Component parts
    
    
    5
    
    
    
    62,009
    
    
    
    2,032Wholesale Distribution Segment
    
    
    378
    
    
    
    322$
    2,387
    
    
    $
    2,354
 Fiscal Year EndedFebruary 28,
    
    
    February 29,2009
    
    
    2008Capital Expenditures**Display SegmentMonitors
    
    $
    770
    
    
    $
    417Data display CRTs
    
    
    82
    
    
    
    16Entertainment CRTs
    
    
    
    
    
    
    Component parts
    
    
    
    
    
    
    13852
    
    
    
    446Wholesale Distribution Segment
    
    
    139
    
    
    
    393$
    991
    
    
    $
    839
 
 **
    
    Includes non-cash additions and additions to fixed assets through business acquisitions. 53




---



##### Table of Contents



Fiscal Year EndedFebruary 28,
    
    
    February 29,2009
    
    
    2008Identifiable AssetsDisplay SegmentMonitors
    
    $
    49,232
    
    
    $
    47,866Data display CRTs
    
    
    4,576
    
    
    
    4,235Entertainment CRTs
    
    
    2,181
    
    
    
    2,356Component parts
    
    
    904
    
    
    
    81156,785
    
    
    
    55,268Wholesale Distribution Segment
    
    
    7,315
    
    
    
    9,432$
    64,208
    
    
    $
    64,700
 Fiscal Year EndedFebruary 28,
    
    
    February 29,2009
    
    
    2008Geographic sales informationUnited States
    
    $
    63,399
    
    
    $
    72,803All other
    
    
    9,504
    
    
    
    11,891$
    72,903
    
    
    $
    84,694
 Note 14. Benefit Plan
  Note 15. Commitments and Contingencies
 Operating Leases
   Fiscal Year
    
    Amount2010
    
    $
    1,4552011
    
    
    6942012
    
    
    5812013
    
    
    4582014
    
    
    314Thereafter
    
    
    1,416$
    4,918
 54




---



##### Table of Contents



Related Party Leases
   Fiscal Year
    
    Amount2010
    
    $
    3142011
    
    
    3142012
    
    
    3142013
    
    
    3142014
    
    
    314Thereafter
    
    
    1,416$
    2,986
  Legal Proceedings
 Barco Federal Systems, LLC and
Barco N.V., a Belgian corporation Aydin Displays, Inc. a Pennsylvania corporation
  Note 16. Concentrations of Risk and Major Customers
   55




---



##### Table of Contents



Note 17. Supplemental Cash Flow Information
 Fiscal Year Ended(in thousands)February 28,
    
    
    February 29,2009
    
    
    2008Cash paid for:Interest
    
    $
    1,083
    
    
    $
    1,833Income taxes, net of refunds
    
    $
    751
    
    
    $
    2,118
 Non-cash investing and financing activities:
   Note 18. Selected Quarterly Financial Data (unaudited)
  2009First
    
    Second
    
    Third
    
    FourthQuarter
    
    Quarter
    
    Quarter
    
    Quarter(in thousands, except per share amounts)Net sales
    
    $
    19,226
    
    
    $
    18,988
    
    
    $
    18,208
    
    
    $
    16,481Gross profit
    
    
    7,192
    
    
    
    7,068
    
    
    
    5,619
    
    
    
    5,001Net income (loss)
    
    
    579
    
    
    
    554
    
    
    
    (265
    )
    
    
    (554
    )Basic net income
(loss) per share
    
    $
    0.06
    
    
    $
    0.06
    
    
    $
    (0.03
    )
    
    $
    (0.06
    )Diluted net
income (loss)
per share
    
    $
    0.06
    
    
    $
    0.06
    
    
    $
    (0.03
    )
    
    $
    (0.06
    )
 56




---



##### Table of Contents



2008First
    
    Second
    
    Third
    
    FourthQuarter
    
    Quarter
    
    Quarter
    
    Quarter(in thousands, except per share amounts)Net Sales
    
    $
    20,653
    
    
    $
    21,590
    
    
    $
    20,619
    
    
    $
    21,832Gross profit
    
    
    7,540
    
    
    
    7,656
    
    
    
    7,051
    
    
    
    6,247Net income
    
    
    853
    
    
    
    1,238
    
    
    
    654
    
    
    
    26Basic net income
per share
    
    $
    0.09
    
    
    $
    0.13
    
    
    $
    0.07
    
    
    $
    0.00Diluted net
income per share
    
    $
    0.09
    
    
    $
    0.13
    
    
    $
    0.07
    
    
    $
    0.00
 Note 19. Subsequent Events
  
 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
  
 Item 9A(T). Controls and Procedures.
 Evaluation of disclosure controls and procedures.
   Changes in Internal Controls
  57




---



##### Table of Contents



Managements Report on Internal Control Over Financial Reporting
   Internal Control- Integrated
Framework.
  Limitations on the effectiveness of controls.
  
 Item 9B. Other Information.
  58




---



##### Table of Contents



PART III
 
 Item 10. Directors, Executive Officers and Corporate Governance.
  
 Item 11. Executive Compensation.
  
 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters.
  
 Item 13. Certain Relationships and Related Transactions, and Director Independence.
  
 Item 14. Principal Accounting Fees and Services.
  59




---



##### Table of Contents



PART IV
 
 Item 15. Exhibits, Financial Statement Schedules.
    Report of Independent Registered Public Accounting FirmConsolidated Balance Sheets as of February 28, 2009 and February 29, 2008Consolidated Statements of Operations  Fiscal Years Ended
February 28, 2009 and February 29, 2008.Consolidated Statements of Shareholders Equity and Comprehensive Income 
Fiscal Years Ended February 28, 2009 and February 29, 2008.Consolidated Statements of Cash Flows  Fiscal Years Ended February 28, 2009 and February
29, 2008.Notes to Consolidated Financial Statements
    Exhibit Number
    
    Exhibit Description3(a)
    
    Articles of Incorporation of the Company (incorporated by reference to
Exhibit 3A to the Companys Registration Statement on Form S-18 filed
January 15, 1985).3(b)
    
    By-Laws of the Company (incorporated by reference to Exhibit 3B to the
Companys Registration Statement on Form S-18 filed January 15, 1985).10(b)
    
    Lease dated June 1, 2008 by and between Registrant (Lessee) and Ronald
D. Ordway (Lessor) with respect to premises located at 4601 Lewis Road,
Stone Mountain, Georgia.10(c)
    
    Lease dated November 1, 2008 by and between Registrant (Lessee) and
Ronald D. Ordway (Lessor) with respect to premises located at 1868
Tucker Industrial Road, Tucker, Georgia.10(d)
    
    Amendment to Loan Documents and
Waiver dated May 27, 2009.10(h)
    
    Loan and Security Agreement and related documents, dated September 26,
2008, among Video Display Corporation and Subsidiaries and RBC Centura
Bank as lender and RBC Centura Bank as collateral agent. (incorporated by reference to
Exhibit 10(h) to the Companys 2009 10Q dated January 14,
2009)10(i)
    
    $6,000,000 Subordinated Note, dated June 29, 2006, between Video
Display Corporation and Ronald D. Ordway (holder) (incorporated by
reference to Exhibit 10(i) to the Companys Current Report on Form 8-K
dated June 29, 2006).10(j)
    
    Video Display Corporation 2006 Stock Incentive Plan (incorporated by
reference to Appendix A to the Companys 2006 Proxy Statement on
Schedule 14A).21
    
    Subsidiary companies23.1
    
    Consent of Carr, Riggs & Ingram, LLC31.1
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.31.2
    
    Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32
    
    Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 60




---



##### Table of Contents



SIGNATURES
  Date:  May 29, 2009
    VIDEO DISPLAY CORPORATIONBy:
    /s/ Ronald D. OrdwayRonald D. OrdwayChairman of the Board and
Chief Executive Officer POWER OF ATTORNEY
   Signature -Name
    
    Capacity
    
    Date/s/ Ronald D. Ordway

Ronald D. Ordway
    
    Chief Executive Officer,
Treasurer and Director
(Principal Executive Officer)
    
    May 29, 2009/s/ Gregory L. Osborn

Gregory L. Osborn
    
    Chief Financial Officer
(Principal Financial Officer)
    
    May 29, 2009/s/ Murray Fox

Murray Fox
    
    Director
    
    May 29, 2009/s/ Carolyn Howard

Carolyn Howard
    
    Director
    
    May 29, 2009/s/ Peter Frend

Peter Frend
    
    Director
    
    May 29, 2009/s/ Carleton Sawyer

Carleton Sawyer
    
    Director
    
    May 29, 2009
 61




---



##### Table of Contents



Report of Independent Registered Public Accounting Firm




---



##### Table of Contents



Column A
    
    Column B
    
    Column C
    
    Column D
    
    Column EAdditionsBalance at
    
    Charged to
    
    Charged to
    
    
    
    
    
    Balance atBeginning
    
    Costs and
    
    Other
    
    
    
    
    
    End ofDescription
    
    of Period
    
    Expenses
    
    Accounts
    
    Deductions
    
    PeriodAllowance for
doubtful accounts:February 28, 2009
    
    $
    201
    
    
    $
    462
    
    
    $
    
    
    
    $
    55
    
    
    $
    608February 29, 2008
    
    
    458
    
    
    
    198
    
    
    
    
    
    
    
    455
    
    
    
    201Reserves for
inventory:February 28, 2009
    
    $
    5,551
    
    
    $
    1,247
    
    
    $
    
    
    
    $
    3,221
    
    
    $
    3,577February 29, 2008
    
    
    5,386
    
    
    
    1,875
    
    
    
    
    
    
    
    1,710
    
    
    
    5,551