10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES AND EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 000-21377

ROFIN-SINAR TECHNOLOGIES INC.

(Exact name of Registrant as specified in its charter)

Delaware	38-3306461
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
40984 Concept Drive, Plymouth, MI	48170
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:  (734) 455-5400

(Former name, former address and former fiscal year,
if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes [X] / No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted in its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes [X ] / No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of "large accelerated filer", "accelerated filer" and "Smaller Reporting Company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [X]    Accelerated filer  [  ]

Non-accelerated filer   [   ]   Smaller reporting company [   ]

Indicate by check mark whether the registrant is a shell Company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] / No [X]

28,162,403 shares of the registrant's common stock, par value $0.01 per share, were outstanding as of May 8, 2015.

ROFIN-SINAR TECHNOLOGIES INC.

INDEX

PART I	FINANCIAL INFORMATION		Page No.
	Item 1 - Financial Statements
	Condensed Consolidated Balance Sheets
	March 31, 2015 and September 30, 2014		3
	Condensed Consolidated Statements of Operations
	Three months and six months ended March 31, 2015 and 2014		4
	Condensed Consolidated Statements of Comprehensive Income (Loss)
	Three months and six months ended March 31, 2015 and 2013		5
	Condensed Consolidated Statement of Stockholders' Equity
	Six months ended March 31, 2015 and 2014		6
	Condensed Consolidated Statements of Cash Flows
	Six months ended March 31, 2015 and 2014		7
	Notes to Condensed Consolidated Financial Statements		8
	Item 2 -	Management's Discussion and Analysis of
		Financial Condition and Results of Operations	17
	Item 3 -	Quantitative and Qualitative Disclosures About Market Risk	23
	Item 4 -	Controls and Procedures	24
PART II	OTHER INFORMATION
	Item 1 -	Legal Proceedings	24
	Item 1A -	Risk Factors	24
	Item 2 -	Unregistered Sales of Equity Securities and Use of Proceeds	25
	Item 3 -	Defaults Upon Senior Securities	25
	Item 4 -	Mine Safety Disclosures	25
	Item 5 -	Other Information	25
	Item 6 -	Exhibits	26
	SIGNATURES		27

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PART I.  ITEM 1.  FINANCIAL INFORMATION

Rofin-Sinar Technologies Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(dollars in thousands, except per share amounts)

	March 31, 2015			September 30, 2014
ASSETS
Current assets:
Cash and cash equivalents (Note 4)	$	146,116		$	128,537
Short-term investments (Note 4)	—			13,121
Accounts receivable, net of allowance for doubtful accounts                $2,681and $3,338, respectively	86,689			108,026
Inventories, net (Note 5)	177,541			190,321
Other current assets and prepaid expenses	34,723			33,870
Total current assets	445,069			473,875
Property and equipment, net	85,017			79,703
Goodwill (Note 6)	91,409			100,355
Other intangibles, net (Note 6)	13,640			15,712
Other assets	18,122			18,940
Total assets	$	653,257		$	688,585
LIABILITIES AND EQUITY
Current liabilities:
Lines of credit and short-term borrowings	$	4,971		$	3,255
Accounts payable, trade	21,482			22,702
Accounts payable to related party	439			443
Income tax payable	3,862			5,872
Accrued liabilities (Note 7)	65,981			67,581
Total current liabilities	96,735			99,853
Long-term debt	18,067			11,511
Pension obligations	22,926			25,692
Other long-term liabilities	11,250			12,820
Total liabilities	148,978			149,876
Commitments and contingencies
Stockholders’ equity:
Preferred stock, 5,000,000 shares authorized, none issued or outstanding	—			—
Common stock, $0.01 par value, 50,000,000 shares authorized, 33,031,187 shares issued at March 31, 2015, and 32,884,000 shares issued at September 30, 2014	330			329
Additional paid-in capital	236,806			232,832
Retained earnings	502,880			487,976
Accumulated other comprehensive income (Note 10)	(67,017		)	(14,072		)
Treasury stock, at cost, 4,871,884 shares at March 31, 2015,               and 4,871,884 shares at September 30, 2014	(169,262		)	(169,262		)
Total Rofin-Sinar Technologies Inc. stockholders’ equity	503,737			537,803
Non-controlling interest in subsidiaries	542			906
Total equity	504,279			538,709
Total liabilities and equity	$	653,257		$	688,585

See accompanying notes to condensed consolidated financial statements

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Rofin-Sinar Technologies Inc. and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

Periods Ended March 31, 2015 and 2014

(dollars in thousands, except per share amounts)

	Three Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
Net sales	$	122,719		$	128,589		$	245,106		$	249,778
Cost of goods sold	77,322			82,253			157,082			162,134
Gross profit	45,397			46,336			88,024			87,644
Selling, general, and administrative expenses	24,490			27,728			48,589			53,121
Research and development expenses	9,710			11,559			20,326			23,099
Amortization expense	751			664			1,535			1,355
Income from operations	10,446			6,385			17,574			10,069
Other (income) expense
Interest income	(110		)	(134		)	(200		)	(258		)
Interest expense	95			101			176			512
Foreign currency (income) expense	(1,975		)	798			(3,279		)	959
Other (income) expense	85			(988		)	118			(1,237		)
Income before income tax	12,351			6,608			20,759			10,093
Income tax expense	3,603			2,113			5,840			3,347
Net income	8,748			4,495			14,919			6,746
Less:  Net income attributable to the non-controlling interest	11			6			15			47
Net income attributable to RSTI	$	8,737		$	4,489		$	14,904		$	6,699
Net income attributable to RSTI per share:
Per share of common stock basic	$	0.31		$	0.16		$	0.53		$	0.24
Per share of common stock diluted	$	0.31		$	0.16		$	0.53		$	0.24
Weighted-average shares used in computing earnings per share (Note 12)
Basic	28,113,807			28,116,693			28,080,589			28,132,038
Diluted	28,243,878			28,272,005			28,224,091			28,301,366

See accompanying notes to condensed consolidated financial statements

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Rofin-Sinar Technologies Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

Periods Ended March 31, 2015 and 2014

(dollars in thousands)

	Three Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
Net income	$	8,748		$	4,495		$	14,919		$	6,746
Other comprehensive income (loss):
Fair value of interest rate swap agreements, net of tax expense of $1, $8, $2 and $8	2			23			6			21
Foreign currency translation adjustments	(38,898		)	(2		)	(53,021		)	5,789
Defined benefit pension plans, net of tax of $20, $17, $40 and $34	35			30			70			59
Other comprehensive income (loss), net of tax	$	(38,861	)	$	51		$	(52,945	)	$	5,869
Total comprehensive income (loss)	$	(30,113	)	$	4,546		$	(38,026	)	$	12,615
Less:  Total comprehensive income (loss) attributable to the               noncontrolling interest	11			6			15			47
Total comprehensive income (loss) attributable to RSTI	$	(30,124	)	$	4,540		$	(38,041	)	$	12,568

See accompanying notes to condensed consolidated financial statements

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Rofin-Sinar Technologies Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders' Equity (Unaudited)

Six Months Ended March 31, 2015 and 2014

(dollars in thousands)

	Common Stock		Additional Paid-in Capital			Retained Earnings		Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Rofin-Sinar Technologies Stockholders’ Equity			Non-Controlling Interest in Subsidiaries			Total Equity
BALANCES at September 30, 2013	$	327	$	228,124		$	462,808	$	11,533		$	(163,026	)	$	539,766		$	3,652		$	543,418
Total comprehensive income						6,699		5,869			—			12,568			47			12,615
Purchase of non-controlling interest	—		—			—		—			—			—			(370		)	(370		)
Common stock issued in connection with Stock Incentive Plans	2		4,622			—		—			—			4,624			—			4,624
Purchases of treasury stock	—		—			—		—			(5,593		)	(5,593		)	—			(5,593		)
BALANCES at March 31, 2014	$	329	$	232,746		$	469,507	$	17,402		$	(168,619	)	$	551,365		$	3,329		$	554,694
BALANCES at September 30, 2014	$	329	$	232,832		$	487,976	$	(14,072	)	$	(169,262	)	$	537,803		$	906		$	538,709
Total comprehensive income (loss)						14,904		(52,945		)	—			(38,041		)	15			(38,026		)
Purchase of non-controlling interest	—		(69		)	—		—			—			(69		)	(379		)	(448		)
Common stock issued in connection with Stock Incentive Plans	1		4,043			—		—			—			4,044			—			4,044
BALANCES at March 31, 2015	$	330	$	236,806		$	502,880	$	(67,017	)	$	(169,262	)	$	503,737		$	542		$	504,279

See accompanying notes to consolidated financial statements

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Rofin-Sinar Technologies Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

Six Months Ended March 31, 2015 and 2014

(dollars in thousands)

	Six Months Ended March 31,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	14,919		$	6,746
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization	8,390			8,324
Stock-based compensation expenses	2,198			2,193
Other adjustments	(3,531		)	(1,771		)
Change in operating assets and liabilities:
Accounts receivable, trade	11,854			15,401
Inventories	(7,939		)	(4,834		)
Accounts payable	1,207			1,372
Changes in other operating assets and liabilities	3,077			(9,006		)
Net cash provided by operating activities	30,175			18,425
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from the sale of property and equipment	461			150
Additions to property and equipment	(23,076		)	(4,247		)
Purchases of short-term investments	(114		)	(14,876		)
Sales of short-term and long-term investments	12,658			19,546
Net cash provided by (used in) investing activities	(10,071		)	573
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowing from banks	26,408			20,333
Repayments to banks	(15,183		)	(15,468		)
Purchase of non-controlling interests	(413		)	(234		)
Purchases of treasury stock	—			(5,593		)
Issuance of common stock	1,573			2,138
Net cash provided by financing activities	12,385			1,176
Effect of foreign currency translation on cash	(14,910		)	1,173
Net increase in cash and cash equivalents	17,579			21,347
Cash and cash equivalents at beginning of period	128,537			133,733
Cash and cash equivalents at end of period	$	146,116		$	155,080
Cash paid for interest	$	151		$	168
Cash paid for taxes	$	8,211		$	7,379

See accompanying notes to condensed consolidated financial statements

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Rofin-Sinar Technologies Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (Unaudited)

(dollars in thousands)

1. Basis of Presentation

The accompanying unaudited, condensed and consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial reporting, and with instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements for interim reporting do not include all of the information and notes or disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. Results for interim periods should not be considered indicative of results for a full year. The September 30, 2014, condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. For further information, refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2014, as filed with the Securities and Exchange Commission on December 1, 2014.

2. New Accounting Standards

In March 2013, the FASB issued ASU No. 2013-05, “Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity”. This ASU amended guidance related to a parent company’s accounting for the release of the cumulative translation adjustment into net income upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This guidance became effective for the Company in fiscal year 2015, and is to be applied prospectively to derecognition events occurring after the effective date. The adoption of this amendment did not have an impact on the Company's financial statements.

In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax Credit Carryforward Exists". ASU 2013-11 provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. Under this guidance an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. These amendments were effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 (fiscal year 2015 for the Company). The adoption did not have an impact on the Company's consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 provides guidance on revenue from contracts with customers, which implements a five step process of how an entity should recognize revenue in order to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the impact that the adoption will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. This guidance becomes effective for the Company at the beginning of our 2017 fiscal year, however on April 1, 2015, the FASB proposed to defer the effective date of this revenue recognition guidance by one year.

In August 2014, the FASB issued No. ASU 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern". ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, ASU 2014-15 (1) provides a definition of the term substantial doubt, (2) requires an evaluation every reporting period including interim periods, (3) provides principles for considering the mitigating effect of management’s plans, (4) requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) requires an express statement and other disclosures when substantial doubt is not alleviated, and (6)

8

requires an assessment for a period of one year after the date that the financial statements are issued (or are available to be issued). The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early application is permitted. This guidance will not have a material impact on our consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-05, "Customer's Accounting for Fees Paid in a Cloud Computing Arrangement". ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If the arrangement includes a software license, the customer should account for the software license element in a manner consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015 (fiscal year 2017 for the Company). The Company does not believe the pronouncement will have a material impact on the Company’s consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs”. This standard amends existing guidance to require the presentation of debt issuance cost in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. The Company does not believe the pronouncement will have a material impact on the Company’s financial statements and will implement the pronouncement beginning in the period after December 15, 2015.

Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

3. Acquisitions

On November 18, 2013, the Company purchased the remaining 10% of the share capital of m2k-laser GmbH through its wholly-owned subsidiary RSL under an option agreement between the Company and the minority shareholders of m2k-laser GmbH. As a result, the Company currently holds 100% of the share capital of m2k-laser GmbH.

Effective December 20, 2013, the Company acquired the remaining 12% of the common stock of ROFIN-BAASEL Japan Corp. through its wholly-owned subsidiary RSL. The Company currently holds 100% of the share capital of ROFIN-BAASEL Japan Corp.

On April 10, 2014, the Company completed the acquisition of certain assets of FiLaser USA LLC ("FiLaser") and subsidiaries. The transaction contained all intellectual property including know-how, patents and patent applications of FiLaser. FiLaser developed advanced laser process technology used for precision cutting and drilling of brittle material including glass, sapphire and semiconductor substrates. The Company has held back approximately 28% of the purchase price as security for various claims. In addition, the purchase agreement also provides for potential future earn-out payments from revenues generated from certain of these intangible assets.

Effective June 12, 2014, the Company acquired the remaining 5% of the common stock of DILAS Diodenlaser GmbH through its wholly-owned subsidiary ROFIN-SINAR Technologies Europe S.L. The Company currently holds 100% of the share capital of DILAS Diodenlaser GmbH.

Effective December 23, 2014, the Company acquired an additional 8.8% of the common stock of Nanjing Eastern Laser Co., Ltd. The Company currently holds 88.8% of the share capital of Nanjing Eastern Laser Co., Ltd.

4. Fair Value Measurements

The Company’s cash and cash equivalents, short-term investments, accounts receivable, and accrued liabilities are carried at amounts, which reasonably approximate their fair values due to their short-term nature. The Company’s lines of credit, short-term borrowings and long-term debt bear interest at variable and fixed interest rates that approximate market. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied.

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Assets and liabilities recorded at fair value in our balance sheet are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities are as follows:

• Level 1 - Unadjusted observable quoted prices for identical instruments in active markets.

• Level 2 - Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.

• Level 3 - Unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability.

Financial assets and liabilities measured at fair value on a recurring basis are classified on the valuation technique level in the table below:

March 31, 2015	Total			Level 1		Level 2			Level 3
Cash and cash equivalents	$	146,116		$	146,116	$	—		$	—
Short-term investments	—			—		—			—
Derivatives	(123		)	—		(123		)	—
Other long-term assets	550			—		550			—
Total assets and liabilities at fair value	$	146,543		$	146,116	$	427		$	—

September 30, 2014	Total			Level 1		Level 2			Level 3
Cash and cash equivalents	$	128,537		$	128,537	$	—		$	—
Short-term investments	13,121			13,121		—			—
Derivatives	(92		)	—		(92		)	—
Other long-term assets	550			—		550			—
Total assets and liabilities at fair value	$	142,116		$	141,658	$	458		$	—

5. Inventories

Inventories are stated at the lower of cost or market, after provisions for excess and obsolete inventory salable at prices below cost.

Costs are determined using the first in, first out and weighted-average cost methods and are summarized as follows:

	March 31, 2015		September 30, 2014
Finished goods	$	29,262	$	31,625
Work in progress	37,481		41,057
Raw materials and supplies	65,924		68,298
Demo inventory	15,174		18,268
Service parts	29,700		31,073
Total inventories	$	177,541	$	190,321

Net inventory is net of provisions for excess and obsolete inventory of $27,829 and $29,974 at March 31, 2015, and September 30, 2014, respectively.

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6. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the six months endedMarch 31, 2015, are as follows:

	Germany			United States			Rest of World			Total
Balance as of September 30, 2014	$	40,938		$	13,091		$	46,326		$	100,355
Currency translation differences	(5,678		)	(426		)	(2,842		)	(8,946		)
Balance as of March 31, 2015	$	35,260		$	12,665		$	43,484		$	91,409

The carrying values of other intangible assets are as follows:

	March 31, 2015				September 30, 2014
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Patents	$	16,748	$	8,478	$	17,947	$	8,721
Customer base	16,853		15,814		18,404		16,883
Other	20,772		16,441		22,101		17,136
Total	$	54,373	$	40,733	$	58,452	$	42,740

Amortization expense for each of the six-month periods ended March 31, 2015 and 2014, was $1,535 and $1,355, respectively. At March 31, 2015, estimated amortization expense of existing intangible assets for the remainder of fiscal year 2015 and the next five fiscal years based on the average exchange rates as of March 31, 2015, is as follows:

2015 (remainder)	1,300
2016	1,900
2017	1,700
2018	1,300
2019	1,100
2020	1,100

7. Accrued Liabilities

Accrued liabilities are comprised of the following:

	March 31, 2015		September 30, 2014
Employee compensation	$	18,271	$	21,822
Warranty reserves	9,737		10,778
Other taxes payable	196		665
Customer deposits	18,595		12,379
Other	19,182		21,937
Total accrued liabilities	$	65,981	$	67,581

8. Income Taxes

The Company's policy is to recognize interest and penalties accrued on any unrecognized tax benefits as interest expense and selling, general and administrative expense, respectively. The Company has classified unrecognized tax benefits as non-current because payment is not anticipated within one year of the balance sheet date.

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As of March 31, 2015, the Company's gross unrecognized tax benefits totaled $0.5 million which includes $0.2 million of interest and penalties. The Company estimates that the unrecognized tax benefits will not change significantly within the next year.

The Company files federal and state income tax returns in several domestic and foreign jurisdictions. In most tax jurisdictions, returns are subject to examination by the relevant tax authorities for a number of years after the returns have been filed. With limited exceptions, the Company is no longer subject to examination by the United States Internal Revenue Service for tax years through 2008. With respect to state and local tax jurisdictions and countries outside the United States, with limited exceptions, the Company is no longer subject to income tax audits for tax years before 2008.

9. Product Warranties

The Company provides for the estimated costs of product warranties when revenue is recognized. The estimate of costs to fulfill warranty obligations is based on historical experience and an expectation of future conditions.

The changes in warranty reserve for the six-month periods ended March 31, 2015 and 2014, are as follows:

	2015			2014
Balance at September 30,	$	10,778		$	12,301
Additional accruals for warranties during the period	1,710			2,509
Usage during the period	(1,628		)	(3,668		)
Currency translation	(1,123		)	154
Balance at March 31,	$	9,737		$	11,296

10. Accumulated Other Comprehensive Income (Loss)

The changes in Accumulated Other Comprehensive Income by component, net of tax, during the three-month periods ended March 31, 2015 and 2014, are as follows:

	Defined Benefit Plans			Foreign Currency Translation Adjustments			Fair Value of Interest Swap Agreements			Total
Balance at December 31, 2014	$	(6,216	)	$	(21,882	)	$	(58	)	$	(28,156	)
Other comprehensive income (loss) before reclassifications	—			(38,898		)	2			(38,896		)
Amounts reclassified from accumulated other comprehensive income	35			—			—			35
Balance at March 31, 2015	$	(6,181	)	$	(60,780	)	$	(56	)	$	(67,017	)

	Defined Benefit Plans			Foreign Currency Translation Adjustments			Fair Value of Interest Swap Agreements			Total
Balance at December 31, 2013	$	(5,420	)	$	22,882		$	(111	)	$	17,351
Other comprehensive income (loss) before reclassifications	—			(2		)	23			21
Amounts reclassified from accumulated other comprehensive income	30			—			—			30
Balance at March 31, 2014	$	(5,390	)	$	22,880		$	(88	)	$	17,402

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The changes in Accumulated Other Comprehensive Income by component, net of tax, during the six-month periods ended March 31, 2015 and 2014, are as follows:

	Defined Benefit Plans			Foreign Currency Translation Adjustments			Fair Value of Interest Swap Agreements			Total
Balance at September 30, 2014	$	(6,251	)	$	(7,759	)	$	(62	)	$	(14,072	)
Other comprehensive income (loss) before reclassifications	—			(53,021		)	6			(53,015		)
Amounts reclassified from accumulated other comprehensive income	70			—			—			70
Balance at March 31, 2015	$	(6,181	)	$	(60,780	)	$	(56	)	$	(67,017	)

	Defined Benefit Plans			Foreign Currency Translation Adjustments		Fair Value of Interest Swap Agreements			Total
Balance at September 30, 2013	$	(5,449	)	$	17,091	$	(109	)	$	11,533
Other comprehensive income before reclassifications	—			5,789		21			5,810
Amounts reclassified from accumulated other comprehensive income	59			—		—			59
Balance at March 31, 2014	$	(5,390	)	$	22,880	$	(88	)	$	17,402

The reclassifications out of Accumulated Other Comprehensive Income for the three and six-month periods ended March 31, 2015 and 2014, are as follows:

	Three Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
Unamortized loss on defined benefit pension plans
Amortization	$	55		$	47		$	110		$	93
Tax effects	(20		)	(17		)	(40		)	(34		)
Total reclassification for the period	$	35		$	30		$	70		$	59

11. Stock Incentive Plans

The Company maintains an Incentive Stock Plan, whereby incentive and non-qualified stock options, restricted stock and performance shares may be granted to officers and other key employees to purchase a specified number of shares of common stock at a price not less than the fair market value on the date of grant. The term of the Incentive Stock Plan continues through 2017. There were no incentive stock options, restricted stock or performance shares granted in fiscal year 2014 or through the first six months of fiscal year 2015. Non-qualified stock options were granted to officers and other key employees in the first quarter of fiscal year 2015 and 2014. During the six-month periods ended March 31, 2015 and 2014, outside directors each received 3,000 shares of common stock, from the 2007 Incentive Stock Plan, that were fully vested upon grant. Options granted to officers and other key employees generally vest over five years and will expire not later than ten years after the date on which they are granted.

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The fair value of each option award is estimated on the date of grant using the Black-Scholes model. The following assumptions were used in these calculations:

	November 2014 Grants			November 2013 Grants
Weighted average grant date fair value	$	8.37		$	11.72
Expected life	5.40 years			5.40 years
Volatility	37.47		%	50.55		%
Risk-free interest rate	1.73		%	1.48		%
Dividend yield	—		%	—		%

The Company uses historical data to estimate the expected life, volatility, and annual forfeiture rates of outstanding options. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant.

The balance of outstanding stock options and all options activity at and for the six months endedMarch 31, 2015, are as follows:

	Number of Shares		Weighted Average Exercise Price			Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (Millions)
Outstanding at September 30, 2014	3,357,050		$	27	1/10	4.86 years
Granted	341,750		$	22	3/4
Exercised	(228,696	)	$	17	1/8
Forfeited	(37,104	)	$	22	1/2
Outstanding at March 31, 2015	3,433,000		$	27	2/5	5.11 years	$	2.54
Exercisable at March 31, 2015	2,424,400		$	28	1/5	3.74 years	$	2.04

As of March 31, 2015, there were $10.4 million of total unrecognized compensation costs related to unvested stock options. These costs are expected to be recognized over a weighted-average period of 3.22 years.

During the three and six-month periods ended March 31, 2015 and 2014, the following activity occurred under the Incentive Stock Plan:

	Three Months Ended March 31,				Six Months Ended March 31,
	2015		2014		2015		2014
Total intrinsic value of stock options exercised	$	508	$	704	$	1,141	$	1,017
Cash received from stock option exercises	$	468	$	1,558	$	1,573	$	2,138

12. Earnings Per Common Share

The basic earnings per common share (EPS) calculation is computed by dividing net income attributable to holders of RSTI common stock by the weighted average number of shares outstanding during the period. Diluted earnings per common share reflect the potential dilution from common stock equivalents (stock options).

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The calculation of the weighted average number of shares outstanding for each period is as follows:

	Three Months Ended March 31,		Six Months Ended March 31,
	2015	2014	2015	2014
Weighted number of shares for basic earnings per common share	28,113,807	28,116,693	28,080,589	28,132,038
Potential additional shares due to outstanding dilutive stock options	130,071	155,312	143,502	169,328
Weighted number of shares for diluted earnings per common share	28,243,878	28,272,005	28,224,091	28,301,366

The weighted average diluted shares outstanding for the six months endedMarch 31, 2015 and 2014, excludes the dilutive effect of approximately 2.4 million and 2.9 million stock options, respectively, since the impact of including these options in diluted earnings per share for these periods was antidilutive.

13. Defined Benefit Plans

Components of net periodic cost were as follows for the three and six-month periods ended March 31, 2015 and 2014:

	Three Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
Service cost	$	232		$	245		$	477		$	490
Interest cost	265			335			544			669
Expected return on plan assets	(175		)	(167		)	(350		)	(334		)
Amortization of prior net (gain) loss	(6		)	28			(13		)	56
Amortization of prior service cost	61			19			123			38
Net periodic pension cost	$	377		$	460		$	781		$	919

14. Segment and Geographic Information

Assets, property and equipment, sales, and income before income taxes, by geographic region attributable based on the geographic location of the RSTI entities are summarized below:

	March 31, 2015			September 30, 2014
ASSETS
North America	$	245,160		$	246,370
Germany	404,006			430,123
Other	324,084			347,992
Intercompany eliminations	(319,993		)	(335,900		)
	$	653,257		$	688,585

	March 31, 2015			September 30, 2014
PROPERTY AND EQUIPMENT, NET
North America	$	15,570		$	16,319
Germany	45,882			41,828
Other	23,828			21,822
Intercompany eliminations	(263		)	(266		)
	$	85,017		$	79,703

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	Three Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
NET SALES
North America	$	38,999		$	35,722		$	75,131		$	68,477
Germany	73,497			76,954			151,210			153,126
Other	62,117			68,905			123,570			132,427
Intercompany eliminations	(51,894		)	(52,992		)	(104,805		)	(104,252		)
	$	122,719		$	128,589		$	245,106		$	249,778
INTERCOMPANY SALES
North America	$	3,659		$	3,844		$	7,020		$	6,101
Germany	35,497			35,660			72,546			69,717
Other	12,738			13,488			25,239			28,434
Intercompany eliminations	(51,894		)	(52,992		)	(104,805		)	(104,252		)
	$	—		$	—		$	—		$	—
EXTERNAL SALES
North America	$	35,340		$	31,878		$	68,111		$	62,376
Germany	38,000			41,294			78,664			83,409
Other	49,379			55,417			98,331			103,993
	$	122,719		$	128,589		$	245,106		$	249,778

INCOME BEFORE INCOME TAX
North America	$	735		$	2,256		$	878		$	2,274
Germany	5,420			(745		)	9,985			(2,350		)
Other	6,429			5,507			10,756			11,616
Intercompany eliminations	(233		)	(410		)	(860		)	(1,447		)
	$	12,351		$	6,608		$	20,759		$	10,093

15. Enterprise-Wide Information

The Company generates revenues from the sale and servicing of laser products used for macro applications, from the sale and servicing of laser products for marking and micro applications, and from the sale of components products as follows:

	Three Months Ended March 31,				Six Months Ended March 31,
	2015		2014		2015		2014
Macro applications	$	48,374	$	46,772	$	96,082	$	95,858
Marking and micro applications	55,902		65,907		113,509		121,883
Components	18,443		15,910		35,515		32,037
	$	122,719	$	128,589	$	245,106	$	249,778

16. Treasury Stock

As previously reported, on February 5, 2014, the Board of Directors authorized the Company to initiate a share buyback of up to $25.0 million of the Company’s Common Stock over the next twelve months ending February 10, 2015, subject to market conditions. The program permitted share repurchases from time to time in open market transactions or privately negotiated transactions at the Company’s discretion. During the six-months ended March 31, 2015, the Company did not repurchase any shares of common stock.

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ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Forward-looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as "may", "believe", "will", "expect", "project", "anticipate", "estimate", "plan", "continue", "position" or other words or terms of similar meaning. These forward-looking statements are based on the current plans, expectations, and assumptions of our management and are subject to a number of uncertainties and risks that could significantly affect our current plans and expectations, including by way of example those risk factors discussed under the sections entitled "Risk Factors" in Item 1A of the Company's Annual Report for the year ended September 30, 2014, as well as future results of operations and financial condition. In making these forward-looking statements, we claim the protection of the safe-harbor for forward-looking statements contained in the Reform Act. We do not assume any obligation to update these forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting such forward-looking statements.

Overview

Rofin-Sinar Technologies Inc. (herein also referred to as "RSTI", "Rofin-Sinar", "Rofin", or the "Company" or "we", "us" or "our") is a leader in the design, development, engineering, manufacturing and marketing of laser sources and laser-based system solutions for industrial material processing applications, which include primarily cutting, welding and marking a wide range of materials. The Company's product portfolio ranges from single laser-beam sources to highly complex systems, covering all of the key laser technologies such as CO₂ lasers, fiber, solid-state and diode lasers, and the entire power spectrum, from single-digit watts up to multi-kilowatts, as well as a comprehensive spectrum of wavelengths or pulse durations. An extensive range of laser components completes the product portfolio. Lasers are a non-contact technology for material processing, which have several advantages compared to conventional manufacturing tools that are desirable in industrial applications. The Company's lasers all deliver a high-quality beam at guaranteed power outputs and feature compact design, high processing speed, flexibility, low operating and maintenance costs, and easy integration into the customer's production process, thus meeting a broad range of its customers' material processing requirements.

Through its global manufacturing, distribution and service network, the Company provides a comprehensive range of laser sources and laser-based system solutions to the following principal target markets: the machine tool, automotive, semiconductor, electronics, and photovoltaic industries. The Company sells directly to end-users and to original equipment manufacturers (“OEMs”) (principally in the machine tool industry) that integrate Rofin's laser sources with other system components. Many of Rofin's customers are among the largest global participants in their respective industries.  

Rofin's sales approach in the laser-related business reflects the many different requirements of its customers throughout a multitude of industries, and is divided into three areas of core competence: Macro, Micro and Marking. The core of the Macro business section is high-powered laser sources, primarily used for cutting and welding as well as surface treatment applications. The Micro section concentrates on laser sources and laser-based system solutions that require less power output for micro-processing of materials. The Marking section specializes in innovative marking solutions on both organic and inorganic materials for many different industries. The activities in the components sector, which comprise diodes and diode laser components, power supplies, fibers and fiber beam deliveries as well as fiber laser components, round out the Company's business activities in the industrial laser market.

During the second quarter of fiscal years 2015 and 2014, we realized approximately 39% and 36% of revenues, respectively, from the sale and servicing of laser products used for macro applications, approximately 46% and 51%, respectively, from the sale and servicing of laser products for marking and micro applications, and approximately 15% and 13%, respectively, from the sale of components.

Our second quarter results confirm that our strategic and technological initiatives are growing our business and improving profitability. Net income and earnings per share nearly doubled year-over-year and we see further improvements in the gross margin as well as positive effects from our operating expenses cost controls. These excellent results were supported by a favorable product mix including better fixed cost absorption and the introduction of our third generation of high-power fiber lasers. Quarterly net sales reflect the adverse currency impact. Revenues in the quarter were driven by a high sales level to the automotive sector, strong business from the machine tool and medical device industries and an increased demand from the semiconductor sector.

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We achieved strong order entry of $141 million for the quarter, which included a new record high of orders for our high-power fiber lasers - both in units and revenue - as well as stable orders for our high-power CO₂ lasers. In addition, our innovative “FiLaser” technology for brittle material cutting continues to bring in first orders from potential volume customers. Another highlight in bookings was high order intake during the quarter from the solar industry, in particular from China, where we see potential for additional orders in the coming months. The backlog of over $160 million at the end of March is the third highest in the Company’s history - even with the adverse effect of exchange rate fluctuations.

The significantly higher order entry and the positive feedback from our worldwide OEM customers for our third generation of high-power fiber lasers are very encouraging. We will continue to work on diversifying our product and application portfolio especially for our ultrashort pulse lasers. In the course of our ongoing efforts to streamline our cost structure and increase our efficiency, we have identified additional cost cutting measures that should reduce operating expenses by at least $5 million during the next fiscal year. Over the next few quarters, we expect to see further improvements in our profitability and our near-record backlog is a good indication and provides a solid basis for future revenue growth. Our achieving a 37% gross margin this quarter confirms that we are making progress toward our 40% gross margin goal by the fourth quarter of fiscal 2015.

 At March 31, 2015, the Company had 2,264 employees compared to 2,256 employees at March 31, 2014.

Results of Operations

For the periods indicated, the following table sets forth the percentage of net sales represented by the respective line items in the Company's consolidated statements of operations.

	Three Months Ended March 31,				Six Months Ended March 31,
	2015		2014		2015		2014
Net sales	100.0	%	100.0	%	100.0	%	100.0	%
Cost of goods sold	63.0	%	64.0	%	64.1	%	64.9	%
Gross profit	37.0	%	36.0	%	35.9	%	35.1	%
Selling, general and administrative expenses	20.0	%	21.6	%	19.8	%	21.3	%
Research and development expenses	7.9	%	9.0	%	8.3	%	9.2	%
Amortization expenses	0.6	%	0.5	%	0.6	%	0.5	%
Income from operations	8.5	%	5.0	%	7.2	%	4.0	%
Income before income taxes	10.1	%	5.1	%	8.5	%	4.0	%
Net income attributable to RSTI	7.1	%	3.5	%	6.1	%	2.7	%

Net Sales - Net sales of $122.7 million and $245.1 million represent decreases of $5.9 million and $4.7 million, or 5% and 2%, for the three and six-month periods ended March 31, 2015, as compared to the corresponding periods in fiscal year 2014. The decrease for the three months ended March 31, 2015, resulted from net sales decreases of $0.4 million, or 1%, in Asia, and $10.9 million, or 16%, in Europe, offset by an increase of $5.4 million, or 22%, in North America, compared to the corresponding period in fiscal year 2014. The decrease for the six months ended March 31, 2015, resulted from a net sales decrease of $14.1 million, or 11%, in Europe, offset by an increases of $7.9 million, or 16%, in North America, and $1.5 million, or 2%, in Asia, as compared to the corresponding period in fiscal year 2014. The U.S. dollar strengthened against foreign currencies, primarily against the Euro, which had an unfavorable effect on net sales of $21.3 million for the six-month period ended March 31, 2015.

Net sales of laser products for macro applications increased by $1.6 million, or 3%, to $48.4 million, for the three-months ended March 31, 2015, and was mainly attributable to the higher demand in the automotive and semiconductor industries which was partially offset by lower demand from the machine tool industry. Net sales of laser products for macro applications increased by $0.2 million, to $96.1 million, for the six-month period ended March 31, 2015, which was not materially different as compared to the corresponding period of fiscal year 2014.

Net sales of lasers for marking and micro applications decreased by $10.0 million, or 15%, to $55.9 million, for the three-month period ended March 31, 2015, and reflects lower demand from the electronics and jewelry industries. Net sales of lasers for marking and micro applications decreased by $8.4 million, or 7%, to $113.5 million for the six-month period ended March 31, 2015, and was mainly due to the negative impact of exchange rate fluctuations and a decrease in the semiconductor and jewelry industries. However, this decrease was partially offset by higher demand from the machine tool and automotive

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industries.

Revenues for the component business increased by $2.5 million, or 16%, to $18.4 million for the three-month period ended March 31, 2015, as compared to the corresponding period of fiscal year 2014. Revenues for the six-month period ended March 31, 2015, increased by $3.5 million, or 11%, to $35.5 million, compared to the corresponding period in fiscal year 2014. The increases are mainly attributable to higher demand for laser diodes and optical components.

Gross Profit - Our gross profit of $45.4 million for the three-month period ended March 31, 2015, represents a decrease of $0.9 million, or 2%, from the corresponding period of fiscal year 2014, but as a percentage of sales increased from 36% to 37%. Our gross profit of $88.0 million for the six-month period ended March 31, 2015, represents an increase of $0.4 million, which was not materially different from the corresponding period of fiscal year 2014. As a percentage of sales, gross profit for the six-month period ended March 31, 2015, increased from 35% to 36%. As a percentage of sales for the three and six-month periods ended March 31, 2015, gross profit increased slightly due to a favorable product mix, better absorption of fixed costs, and results of our cost reduction program for high-power fiber laser manufacturing. Gross profit was unfavorably affected by $3.7 million due to the strengthening of the U.S. dollar against foreign currencies, primarily against the Euro, in the six-month period ended March 31, 2015.

Selling, General and Administrative Expenses - Selling, general and administrative ("SG&A") expenses of $24.5 million and $48.6 million for the three and six-month periods ended March 31, 2015, represents a decrease of $3.2 million, or 12%, for the three-month period, and a decrease of $4.5 million, or 9%, for the six-month period, compared to the corresponding periods of fiscal year 2014. The decrease in SG&A expenses for the three-month period is mainly due to the impact of exchange rate fluctuations and lower labor costs, partially offset by an increase in consulting fees. SG&A, a significant portion of which is incurred in foreign currencies, was favorably affected by $4.1 million due to the strengthening of the U.S. dollar against foreign currencies, primarily the Euro, for the six-month period ended March 31, 2015. As a percentage of net sales, SG&A expenses decreased from 22% to 20% for the three-month period ended March 31, 2015, and decreased from 21% to 20% for the six-month period ended March 31, 2015, as compared to the corresponding prior year period.

Research and Development - The Company spent net $9.7 million and $20.3 million on research and development ("R&D") during the three and six-month periods ended March 31, 2015, which represents decreases of $1.9 million, or 16%, and $2.8 million, or 12%, for the three and six-month periods ended March 31, 2015, as compared to the corresponding period in fiscal year 2014. Gross R&D expenses for the three-month periods ended March 31, 2015 and 2014, were $10.0 million and $11.9 million, respectively, and were reduced by $0.3 million of government grants during each period. Gross R&D expenses for the six-month periods ended March 31, 2015 and 2014, were $20.7 million and $23.9 million, respectively, and were reduced by $0.4 million and $0.8 million, respectively, of government grants during each period. R&D, a significant portion of which is conducted in Europe, and therefore incurred in foreign currencies, was favorably affected by $2.3 million due to the strengthening of the U.S. dollar against foreign currencies, primarily the Euro, for the six-month period ended March 31, 2015.

Amortization Expense - Amortization expense for the three and six-month periods ended March 31, 2015, amounted to $0.8 million and $1.5 million, respectively. This represents an increase of $0.1 million and $0.2 million for the three and six-month periods when compared to the same period of fiscal year 2014. This increase is attributable to the newly acquired intangible assets from FiLaser.

Other (Income) Expense -  Net other income of $1.9 million for the three-month period ended March 31, 2015, represents a increase of $1.7 million compared to net other income of $0.2 million for the corresponding period of fiscal year 2014. Net other income of $3.2 million for the six-month period ended March 31, 2015, represents an increase of $3.2 million compared to net other income of less than $0.1 million for the corresponding period of the prior year. Net interest expense for the three-month period ended March 31, 2015, within this category, includes $0.1 million of interest expense offset by $0.1 million of interest income. The increase in net foreign currency income in the three-month period ended March 31, 2015, is due to higher net exchange gains in the current period compared to the corresponding period in fiscal year 2014. For the six months ended March 31, 2015, net interest expense, within this category, includes $0.2 million of interest expense offset by $0.2 million of interest income. The increase in net foreign currency income in the six-month period ended March 31, 2015, is due to higher net exchange gains in the current period compared to the corresponding period in fiscal year 2014. Other income for the three and six-month periods ending March 31, 2014, included $1.0 million due to the partial forgiveness of a loan with the State of Connecticut related to investments and creation of new jobs.

Income Tax Expense - Income tax expense of $3.6 million and $5.8 million for the three and six-month periods ended March 31, 2015, represents an effective tax rate of 29% and 28%, compared to and 32% and 33% for the corresponding period of fiscal year 2014. The decrease in the effective tax rate is mainly due to the generation of taxable income in countries with lower tax rates. Income tax expense, a significant portion of which is incurred in foreign currencies, was favorably affected by

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$0.7 million due to the strengthening of the U.S. dollar against foreign currencies, primarily against the Euro, during the six-month period ended March 31, 2015.

Net Income Attributable to RSTI - As a result of the foregoing factors, the Company realized consolidated net income attributable to RSTI of $8.7 million and $14.9 million for the three and six-month periods ended March 31, 2015, which represents an increase of $4.2 million, or 95%, and an increase of $8.2 million, or 122%, from the corresponding period in fiscal year 2014. For the three-month period ended March 31, 2015, both the basic and diluted earnings per common share calculations equaled $0.31, based upon a weighted average of 28.1 million and 28.2 million shares of common stock outstanding, as compared to basic and diluted earnings per common share calculation of $0.16, based upon a weighted average of 28.1 million and 28.3 million shares of common stock outstanding for the corresponding period of fiscal year 2014.

Liquidity and Capital Resources

The Company's primary sources of liquidity at March 31, 2015, were cash and cash equivalents of $146.1 million, short-term credit lines of $63.9 million and long-term credit lines of $19.1 million. As of March 31, 2015, $4.0 million was outstanding under the short-term lines of credit and $1.3 million was used for bank guarantees under these lines of credit, leaving $58.6 million available for borrowing under our short-term lines of credit. In addition, the Company maintained short-term credit lines specific to bank guarantees for $11.7 million, of which $3.8 million was used. Therefore, $66.5 million was unused and available under our short-term and bank guarantee lines of credit, in aggregate, at March 31, 2015.  At such date, the entire amount of our long-term lines of credit was fully drawn and $1.0 million was classified under short-term lines of credit for the current portion of the long-term debt. The Company is subject to financial covenants, which could restrict the Company from drawing money under these lines of credit. At March 31, 2015, the Company was in compliance with these covenants.

Cash and cash equivalents increased by $17.6 million during the six-month period endedMarch 31, 2015. Approximately $30.2 million in cash and cash equivalents were provided by operating activities, mainly as the result of net income generated for the six-month period endedMarch 31, 2015, a decrease in trade accounts receivable and changes in non-cash transactions (depreciation and stock-based compensation expense), partially offset by an increase of net inventories.

Net cash used in investing activities totaled $10.1 million for the six-month period endedMarch 31, 2015, and was primarily related to additions to property and equipment partly offset by net sales of short-term investments.

Net cash provided by financing activities totaled $12.4 million for the six-month period endedMarch 31, 2015, and was primarily related to borrowings from banks and by the issuance of common stock from option exercises, which were partially offset by repayments to banks and purchases of non-controlling interests.

Management believes that the Company's cash flow from operations, along with existing cash and cash equivalents and availability under the credit facilities and lines of credit, will provide adequate resources to meet both our capital requirements and operational needs on both a short-term and long-term basis.

As of March 31, 2015, $118.8 million of the total $146.1 million of our cash, cash equivalents and short-term investments, was held by our non-US subsidiaries, with the balance of $27.3 million held by our US subsidiaries. As of that date, $20.0 million was owed by our non-US subsidiaries and $3.0 million was owed by our US subsidiaries from the total indebtedness amounting to $23.0 million. We expect our existing domestic cash, cash equivalents and short-term investments, together with cash flows from operations to be sufficient to fund our domestic operating activities. In addition our US subsidiaries had $20.0 million in available and unused lines of credit at March 31, 2015. Therefore, we do not intend, nor do we foresee a need, to repatriate foreign earnings that are considered to be indefinitely reinvested, and we do not believe there are any material implications for or restrictions on the liquidity of our domestic subsidiaries as a result of having a majority of our cash, cash equivalents and short-term investments held by our foreign subsidiaries.

The Company has listed all its material contractual obligations in the Annual Report on Form 10-K, for the fiscal year ended September 30, 2014, and has not entered into any further material contractual obligations since that date.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements (other than operating leases) or financing arrangements involving variable interest entities.

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Currency Exchange Rate Fluctuations

Although we report our consolidated financial statements in U.S. dollars, during the six-month period ended March 31, 2015, approximately 66% of our sales have been denominated in other currencies, primarily the Euro, British pound sterling, Swiss franc, Swedish krona, Singapore dollar, Taiwanese dollar, Korean won, Canadian dollar, Chinese RMB, Japanese yen and Indian rupee. Net sales, costs and related assets and liabilities of our operations are generally denominated in the functional currencies of the relevant operating units, thereby serving to reduce our exposure to exchange gains and losses.

Exchange differences upon translation from each operating unit's functional currency to U.S. dollars are accumulated as a separate component of equity. The currency translation adjustment component of shareholders’ equity had the effect of decreasing total equity by $60.8 million at March 31, 2015, as compared to $7.8 million at September 30, 2014.

The fluctuation of the Euro and the other relevant functional currencies against the U.S. dollar has had the effect of increasing or decreasing (as applicable) reported net sales, as well as cost of goods sold, gross margin, selling, general and administrative expenses, and research and development expenses, denominated in such foreign currencies when translated into U.S. dollars as compared to prior periods.

The Company defines the term “constant currency”, a non-GAAP measure, to mean that financial data for a period are translated into U.S. dollars using the same foreign currency exchange rates that were used to translate financial data for the previously reported period. Changes in net sales and order entry include the effect of fluctuations in foreign currency exchange rates. The Company's management reviews and analyzes business results on a constant currency basis and believes these results represent the Company's underlying business trends without distortion due to currency fluctuations. The Company believes that this “constant currency” financial information is a useful measure for investors because it reflects actual changes in the development of net sales and order entry.

The following table illustrates the development of the order entry and sales figures, taking into account exchange rate fluctuations. The non-GAAP presentation shows the second quarter 2015 figures when applying the average exchange rates of the second quarter of fiscal year 2014:

	March 31, 2015				March 31, 2014
	GAAP Actual		Non-GAAP Constant Currency		GAAP Actual
Net Sales	$	122,719	$	136,947	$	128,589
Order Entry	$	141,215	$	159,635	$	127,473

Between the second quarter of fiscal year 2014 and the second quarter of fiscal year 2015, the average exchange rate for the Euro weakened against the U.S. dollar by approximately 15.6%. The impact of this weakening was to decrease net sales by $14.2 million because approximately 66% of fiscal year 2015 sales were denominated in other currencies, primarily the Euro. These exchange rate fluctuations also had the effect of decreasing order entry by $18.4 million.

Critical Accounting Policies

Our significant accounting policies are more fully described in Part 2, Item 8, Note 1 of our consolidated financial statements in our Annual Report on Form 10-K, for the fiscal year ended September 30, 2014. Certain of the accounting policies require the application of significant judgment by management in selecting appropriate assumptions for calculating financial estimates. By their nature, these judgments are subject to an inherent degree of uncertainty.

Allowance for Doubtful Accounts

The Company records allowances for uncollectible customer accounts receivable based on historical experience. Additionally, an allowance is made based on an assessment of specific customers' financial condition and liquidity.

If the financial condition of the Company's customers were to deteriorate, additional allowances may be required. No individual customer represents more than 10% of total accounts receivable. Any increase in allowance will impact operating income during a given period.

21

Inventory Valuation

Inventories are stated at the lower of cost or market, after provisions for excess and obsolete inventory salable at prices below cost. Provisions for slow moving and obsolete inventories are provided based on current assessments about historical experience and future product demand and production requirements for the next twelve months. We also write-down up to 90% of our total demo inventory costs over thirty six months. These factors are impacted by market conditions, technology changes and changes in strategic direction, and require estimates and management judgment that may include elements that are uncertain. The Company evaluates the adequacy of these provisions quarterly. Although the Company strives to achieve a balance between market demands and risk of inventory excess or obsolescence, it is possible that, should conditions change, additional provisions may be needed. Any changes in the provisions will impact operating income during a given period.

Warranty Reserves

The Company provides reserves for the estimated costs of product warranties when revenue is recognized. The Company relies upon historical experience, expectation of future conditions, and its service data to estimate its warranty reserve. The Company continuously monitors this data to evaluate the sufficiency of the reserve. Warranty expense has historically been within our expectations. To the extent we experience increased warranty claim activity or increased costs associated with servicing those claims (such costs may include material, labor and travel costs), revisions to the estimated warranty liability would be required. Increases in reserves will impact operating income during the period.

Pension

The determination of the Company's obligation and expense for pension is dependent on the selection of certain assumptions used by actuaries in calculating those amounts. Assumptions are made about interest rates, expected investment return on plan assets, total turnover rates and rates of future compensation increases. In addition, the Company's actuarial consultants use subjective factors such as withdrawal rates and mortality rates to develop their calculations of these amounts. The Company generally reviews these assumptions at the beginning of each fiscal year. The Company is required to consider current market conditions, including changes in interest rates, in making these assumptions. The actuarial assumptions that the Company may use may differ materially from actual results due to changing market and economic conditions, higher or lower withdrawal rates or longer or shorter life spans of participants. These differences may result in a significant impact on the amount of pension benefits expense the Company has recorded or may record.

The discount rate enables the Company to state expected future cash flows at a present value on the measurement date. The Company has little latitude in selecting this rate, and it must represent the market rate of high-quality fixed income investments. A lower discount rate increases the present value of benefit obligations and increases pension expense.

To determine the expected long-term rate of return on plan assets, the Company considers the current and expected asset allocations, as well as historical and expected returns on various categories of plan assets.

Income Taxes

We estimate our income tax provision in each of the jurisdictions in which we operate, a process that includes estimating exposures related to examinations by taxing authorities. We must also make judgments regarding the ability to realize our deferred tax assets. The carrying value of our net deferred tax assets is based on our belief that it is more likely than not that we will generate sufficient future taxable income in certain jurisdictions to realize these deferred tax assets. A valuation allowance has been established for deferred tax assets that we do not believe meet the “more likely than not” criteria. We assess whether an uncertain tax position taken or expected to be taken in a tax return meets the threshold for recognition and measurement in the consolidated financial statements. Our judgments regarding future taxable income as well as tax positions taken or expected to be taken in a tax return may change due to changes in market conditions, changes in tax laws or other factors. If our assumptions and consequently our estimates change in the future, the valuation allowances and/or tax reserves established may be increased or decreased, resulting in a respective increase or decrease in income tax expense.

22

Share-Based Payment

Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the employee's requisite vesting period. We make judgments about the fair value of the awards, including the expected term of the award, volatility of the underlying stock and estimated forfeitures, which impact the amount of compensation expense recognized in the financial statements. Such amounts may change as a result of additional grants, forfeitures, modifications in assumptions and other factors. The income tax effects of share-based payments are recognized in the financial statements for those awards which will normally result in tax deductions under existing tax law. Under current U.S. federal tax laws, we receive a compensation expense deduction related to stock options only when those options are exercised and vested shares are received. Accordingly, the financial statement recognition of compensation cost for stock options creates a deductible temporary difference which results in a deferred tax asset and a corresponding deferred tax benefit in the income statement for all U.S.-based employees. Stock-based compensation expense related to non-US employees is treated as a permanent difference for income tax purposes.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

For the three-month period ended March 31, 2015, we did not experience any material change in market risk exposures affecting the quantitative and qualitative disclosures as presented in our Annual Report on Form 10-K for the fiscal year ended September 30, 2014.

The following discussion about the Company's market risk disclosures involves forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements. The Company is exposed to market risk related to changes in interest rates and foreign currency exchange rates. The Company does not use derivative financial instruments for trading purposes.

Interest Rate Sensitivity

At March 31, 2015, the Company maintained cash equivalents and short-term investments of $146.1 million, mainly consisting of interest bearing securities and demand deposits with maturities mainly of less than one year. If interest rates were to increase or decrease by 10%, interest income would increase or decrease by less than $0.1 million.

At March 31, 2015, the Company had $0.2 million of variable rate debt on which the interest rate is reset every three months, $2.8 million of variable rate debt on which the interest rate is reset every six months, and $20.0 million of fixed rate debt.

Maturities of this debt are as follows (amounts in dollars):

2015	2.2	million
2016	3.8	million
2017	5.3	million
2018	1.9	million
2019	1.7	million
2020 and thereafter	8.1	million

A 10% change in the variable interest rates of the Company's debt would result in an increase or decrease in interest expense of less than $0.1 million.

The Company has entered into two interest rate swap agreements to minimize the interest expenses on a portion of its variable debt described in the previous paragraph by shifting from variable to fixed interest rates. One swap agreement is for a total notional amount of Euro 0.2 million (equivalent to $0.2 million based on the exchange rate at March 31, 2015) and the other is for a total notional amount of Swiss francs 2.8 million (equivalent to $2.8 million based on the exchange rates at March 31, 2015).

23

Foreign Currency Exchange Risk

The Company enters into foreign currency forward contracts and forward exchange options generally of less than one year duration to hedge a portion of its foreign currency risk on sales transactions. At March 31, 2015, the Company held Japanese yen forward exchange options with notional amounts of Euro 1.0 million and $0.2 million. Under these Japanese yen forward exchange options, the profit or loss resulting from a 10% change in currency exchange rates would vary approximately from $0.1 million profit to a $0.2 million loss.

Item 4.  Controls and Procedures

As of the end of the quarterly period covered by this report, the Chief Executive Officer and Chief Financial Officer of the Company (collectively, the "certifying officers") have evaluated the effectiveness of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as amended). These disclosure controls and procedures are designed to ensure that the information required to be disclosed by the Company in its periodic reports filed with the Securities and Exchange Commission (the "Commission") is recorded, processed, summarized and reported within the time periods specified by the Commission's rules and forms, and that the information is communicated to the certifying officers on a timely basis.

The certifying officers concluded, based on their evaluation, that the Company's disclosure controls and procedures were effective, as of the end of the quarterly period covered by this report, in ensuring that material information relating to the Company, including its consolidated subsidiaries, is made known to them in a timely fashion, taking into consideration the size and nature of the Company's business and operations.

There have been no changes in the Company's internal control over financial reporting that occurred during the quarterly period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

The Company has been and is likely to be involved from time to time in litigation involving its intellectual property and routine litigation arising in the ordinary course of business.

A licensor of patents that, before their expiration in 2010, covered the technology used in certain of the Company's CO2 lasers has asserted that the Company has calculated royalties due in respect of certain sales of such CO2 lasers in a manner that is not consistent with the applicable license agreement. In addition, the licensor claims that it has not been provided with copies of invoices and other documentation relating to such sales, to which it asserts it is entitled under the license agreement. The Company disputes these and related allegations and believes that it is in compliance with all of its obligations under the license agreement. The patents, and therefore the license rights, have already expired and there are no further license fees to be calculated and paid. Accordingly, management believes that the resolution of this matter will not have a material adverse impact on the Company's financial condition or results of operations or cash flows.

Item 1A. Risk Factors

For information regarding risk factors that could affect the Company's results of operations, financial condition and liquidity, see the risk factors discussion provided under "Risk Factors" in Item 1A of the Company's Annual Report on Form 10-K for the year ended September 30, 2014. See also "Overview" and "Forward-Looking Statements" included in this Quarterly Report on Form 10-Q.

24

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

As previously reported, on February 5, 2014, the Board of Directors authorized the Company to initiate a share buyback of up to $25.0 million of the Company’s Common Stock over the twelve months ending February 10, 2015, subject to market conditions. The program permitted share repurchases from time to time in open market transactions or privately negotiated transactions at the Company’s discretion. During the six-months ended March 31, 2015, the Company did not repurchase any shares of common stock.

Item 3.   Defaults Upon Senior Securities

None

Item 4.   Mine Safety Disclosures

Not applicable

Item 5.   Other Information

None

25

Item 6.   Exhibits

31.1	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.1	Section 1350 Certification of Chief Executive Officer
32.2	Section 1350 Certification of Chief Financial Officer
101.INS *	XBRL Instance Document
101.SCH *	XBRL Taxonomy Extension Schema
101.CAL *	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF *	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB *	XBRL Taxonomy Extension Label Linkbase Document
101.PRE *	XBRL Taxonomy Extension Presentation Linkbase Document
	* The Exhibits 101 are filed with the SEC only.

26

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: May 11, 2015	Rofin-Sinar Technologies Inc.
	(Registrant)
	/s/ Gunther Braun
	Gunther Braun
	President, Chief Executive Officer,
	and Director
	/s/ Ingrid Mittelstaedt
	Ingrid Mittelstaedt
	Chief Financial Officer,
	Executive Vice President, Finance
	and Administration, and Treasurer

27

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

I, Gunther Braun, Chief Executive Officer and President, of Rofin-Sinar Technologies, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Rofin-Sinar Technologies Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; 

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report, based on such evaluation; and

d) disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:   May 11, 2015
	/s/ Gunther Braun
	Gunther Braun
	President, Chief Executive Officer and Director

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

I, Ingrid Mittelstaedt, Chief Financial Officer, of Rofin-Sinar Technologies, Inc., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Rofin-Sinar Technologies Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report, based on such evaluation; and

d) disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:   May 11, 2015
	/s/ Ingrid Mittelstaedt
	Ingrid Mittelstaedt
	Chief Financial Officer, Executive Vice President, Finance and Administration, and Treasurer

EX-32.1

Exhibit 32.1

ROFIN-SINAR TECHNOLOGIES INC.

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Rofin-Sinar Technologies Inc. (the "Company") on Form 10-Q for the quarter ended March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Gunther Braun, Chief Executive Officer and President of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a)  or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

This Certification has not been, and shall not be deemed, "filed" with the Securities and Exchange Commission.

Date:   May 11, 2015
	/s/ Gunther Braun
	Gunther Braun
	President, Chief Executive Officer and Director

EX-32.2

Exhibit 32.2

ROFIN-SINAR TECHNOLOGIES INC.

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Rofin-Sinar Technologies Inc. (the "Company") on Form 10-Q for the quarter ended March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Ingrid Mittelstaedt, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

This Certification has not been, and shall not be deemed, "filed" with the Securities and Exchange Commission.

Date:    May 11, 2015
	/s/ Ingrid Mittelstaedt
	Ingrid Mittelstaedt
	Chief Financial Officer, Executive Vice President, Finance and Administration, and Treasurer

XML

Inventories, Net of Obsolescence and Lower of Cost or Market Reserves (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Sep. 30, 2014
Inventory Disclosure [Abstract]
Provisions for excess and obsolete inventory	$ 27,829	$ 29,974
Inventory, Net [Abstract]
Finished goods	29,262	31,625
Work in progress	37,481	41,057
Raw materials and supplies	65,924	68,298
Demo inventory	15,174	18,268
Service parts	29,700	31,073
Total inventories	$ 177,541	$ 190,321

XML

SEGMENT AND GEOGRAPHIC INFORMATION (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2014
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 653,257		$ 653,257		$ 688,585
Property and equipment, net	85,017		85,017		79,703
Net sales	122,719	128,589	245,106	249,778
Intercompany revenues	122,719	128,589	245,106	249,778
Revenue from Related Parties	0	0	0	0
Income (loss) before income taxes	12,351	6,608	20,759	10,093
North America
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	245,160		245,160		246,370
Property and equipment, net	15,570		15,570		16,319
Net sales	38,999	35,722	75,131	68,477
Intercompany revenues	35,340	31,878	68,111	62,376
Revenue from Related Parties	3,659	3,844	7,020	6,101
Income (loss) before income taxes	735	2,256	878	2,274
Germany
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	404,006		404,006		430,123
Property and equipment, net	45,882		45,882		41,828
Net sales	73,497	76,954	151,210	153,126
Intercompany revenues	38,000	41,294	78,664	83,409
Revenue from Related Parties	35,497	35,660	72,546	69,717
Income (loss) before income taxes	5,420	(745)	9,985	(2,350)
Other
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	324,084		324,084		347,992
Property and equipment, net	23,828		23,828		21,822
Net sales	62,117	68,905	123,570	132,427
Intercompany revenues	49,379	55,417	98,331	103,993
Revenue from Related Parties	12,738	13,488	25,239	28,434
Income (loss) before income taxes	6,429	5,507	10,756	11,616
Geography Eliminations [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	(319,993)		(319,993)		(335,900)
Property and equipment, net	(263)		(263)		(266)
Net sales	(51,894)	(52,992)	(104,805)	(104,252)
Income (loss) before income taxes	(233)	(410)	(860)	(1,447)
Consolidation, Eliminations [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Revenue from Related Parties	$ (51,894)	$ (52,992)	$ (104,805)	$ (104,252)

XML

EARNINGS PER COMMON SHARE - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted number of shares for basic earnings per common share	28,113,807	28,116,693	28,080,589	28,132,038
Potential additional shares due to outstanding dilutive stock options	130,071	155,312	143,502	169,328
Weighted number of shares for diluted earnings per common share	28,243,878	28,272,005	28,224,091	28,301,366
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)			2,400,000	2,900,000

XML

EARNINGS PER COMMON SHARE (Tables)

6 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Calculation of the Weighted Average Number of Shares Outstanding

The calculation of the weighted average number of shares outstanding for each period is as follows:

	Three Months Ended March 31,		Six Months Ended March 31,
	2015	2014	2015	2014
Weighted number of shares for basic earnings per common share	28,113,807	28,116,693	28,080,589	28,132,038
Potential additional shares due to outstanding dilutive stock options	130,071	155,312	143,502	169,328
Weighted number of shares for diluted earnings per common share	28,243,878	28,272,005	28,224,091	28,301,366

XML

BASIS OF PRESENTATION Basis of Presentation (Policies)

6 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy

In March 2013, the FASB issued ASU No. 2013-05, “Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity”. This ASU amended guidance related to a parent company’s accounting for the release of the cumulative translation adjustment into net income upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This guidance became effective for the Company in fiscal year 2015, and is to be applied prospectively to derecognition events occurring after the effective date. The adoption of this amendment did not have an impact on the Company's financial statements.

In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax Credit Carryforward Exists". ASU 2013-11 provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. Under this guidance an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. These amendments were effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 (fiscal year 2015 for the Company). The adoption did not have an impact on the Company's consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 provides guidance on revenue from contracts with customers, which implements a five step process of how an entity should recognize revenue in order to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the impact that the adoption will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. This guidance becomes effective for the Company at the beginning of our 2017 fiscal year, however on April 1, 2015, the FASB proposed to defer the effective date of this revenue recognition guidance by one year.

In August 2014, the FASB issued No. ASU 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern". ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, ASU 2014-15 (1) provides a definition of the term substantial doubt, (2) requires an evaluation every reporting period including interim periods, (3) provides principles for considering the mitigating effect of management’s plans, (4) requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) requires an express statement and other disclosures when substantial doubt is not alleviated, and (6) requires an assessment for a period of one year after the date that the financial statements are issued (or are available to be issued). The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early application is permitted. This guidance will not have a material impact on our consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-05, "Customer's Accounting for Fees Paid in a Cloud Computing Arrangement". ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If the arrangement includes a software license, the customer should account for the software license element in a manner consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015 (fiscal year 2017 for the Company). The Company does not believe the pronouncement will have a material impact on the Company’s consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs”. This standard amends existing guidance to require the presentation of debt issuance cost in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. The Company does not believe the pronouncement will have a material impact on the Company’s financial statements and will implement the pronouncement beginning in the period after December 15, 2015.

Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

Basis of Accounting, Policy

The accompanying unaudited, condensed and consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial reporting, and with instructions to Form 10-Q and Rule 10-01 of Regulation S-X. 

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TREASURY STOCK (Details) (USD $)	0 Months Ended	6 Months Ended
	Feb. 05, 2014	Mar. 31, 2015	Mar. 31, 2014
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract]
Stock Repurchase Program, Authorized Amount	$ 25,000,000
Payments for Repurchase of Common Stock		$ 0	$ 5,593,000

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INCOME TAXES - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Unrecognized gross tax benefits	$ 0.5
Unrecognized tax benefit, interest and penalties	$ 0.2

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ACQUISITIONS (Details)	Nov. 18, 2013	Dec. 20, 2013	Apr. 10, 2014	Jun. 12, 2014	Dec. 23, 2014
M 2 K Laser GmbH
Business Acquisition [Line Items]
Additional investment in subsidiary, percentage acquired	10.00%
Equity investment	100.00%
Rofin-Baasel Japan Corp.
Business Acquisition [Line Items]
Additional investment in subsidiary, percentage acquired		12.00%
Equity investment		100.00%
Filaser
Business Acquisition [Line Items]
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed, Yet To Be Paid			28.00%
DILAS Diodenlaser
Business Acquisition [Line Items]
Additional investment in subsidiary, percentage acquired				5.00%
Equity investment				100.00%
Nanjing Easter Laser Company Ltd
Business Acquisition [Line Items]
Additional investment in subsidiary, percentage acquired					8.80%
Equity investment					88.80%

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DEFINED BENEFIT PLANS (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Service Cost	$ 232	$ 245	$ 477	$ 490
Interest Cost	265	335	544	669
Expected return on plan assets	(175)	(167)	(350)	(334)
Amortization of net loss	(6)	28	(13)	56
Amortization of prior service cost	61	19	123	38
Net periodic benefit cost	$ 377	$ 460	$ 781	$ 919

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BASIS OF PRESENTATION

6 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited, condensed and consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial reporting, and with instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements for interim reporting do not include all of the information and notes or disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. Results for interim periods should not be considered indicative of results for a full year. The September 30, 2014, condensed consolidated balance sheet was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. For further information, refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2014, as filed with the Securities and Exchange Commission on December 1, 2014.

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PRODUCT WARRANTIES (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Beginning balance	$ 10,778	$ 12,301
Additional accruals for warranties during the period	1,710	2,509
Usage during the period	(1,628)	(3,668)
Currency translation	(1,123)	154
Ending balance	$ 9,737	$ 11,296

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ACCRUED LIABILITIES (Tables)

6 Months Ended

Mar. 31, 2015

Payables and Accruals [Abstract]

Summary of Accrued Liabilities

Accrued liabilities are comprised of the following:

	March 31, 2015		September 30, 2014
Employee compensation	$	18,271	$	21,822
Warranty reserves	9,737		10,778
Other taxes payable	196		665
Customer deposits	18,595		12,379
Other	19,182		21,937
Total accrued liabilities	$	65,981	$	67,581

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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

6 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the six months endedMarch 31, 2015, are as follows:

	Germany			United States			Rest of World			Total
Balance as of September 30, 2014	$	40,938		$	13,091		$	46,326		$	100,355
Currency translation differences	(5,678		)	(426		)	(2,842		)	(8,946		)
Balance as of March 31, 2015	$	35,260		$	12,665		$	43,484		$	91,409

Carrying Values of Other Intangible Assets

he carrying values of other intangible assets are as follows:

	March 31, 2015				September 30, 2014
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Patents	$	16,748	$	8,478	$	17,947	$	8,721
Customer base	16,853		15,814		18,404		16,883
Other	20,772		16,441		22,101		17,136
Total	$	54,373	$	40,733	$	58,452	$	42,740

Estimated Future Amortization Expense Related to Intangible Assets

At March 31, 2015, estimated amortization expense of existing intangible assets for the remainder of fiscal year 2015 and the next five fiscal years based on the average exchange rates as of March 31, 2015, is as follows:

2015 (remainder)	1,300
2016	1,900
2017	1,700
2018	1,300
2019	1,100
2020	1,100

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Changes in Accumulated Other Comprehensive Income by component
Balance at beginning of period	$ (28,156)	$ 17,351	$ (14,072)	$ 11,533
Other comprehensive income (loss) before reclassifications	(38,896)	21	(53,015)	5,810
Amounts reclassified from accumulated other comprehensive income	35	30	70	59
Balance at end of period	(67,017)	17,402	(67,017)	17,402
Reclassifications out of Accumulated Other Comprehensive Income
Amortization	55	47	110	93
Tax effects	(20)	(17)	(40)	(34)
Total reclassification for the period	35	30	70	59
Defined Benefit Plans
Changes in Accumulated Other Comprehensive Income by component
Balance at beginning of period	(6,216)	(5,420)	(6,251)	(5,449)
Other comprehensive income (loss) before reclassifications	0	0	0	0
Amounts reclassified from accumulated other comprehensive income	35	30	70	59
Balance at end of period	(6,181)	(5,390)	(6,181)	(5,390)
Reclassifications out of Accumulated Other Comprehensive Income
Total reclassification for the period	35	30	70	59
Foreign Currency Translation Adjustments
Changes in Accumulated Other Comprehensive Income by component
Balance at beginning of period	(21,882)	22,882	(7,759)	17,091
Other comprehensive income (loss) before reclassifications	(38,898)	(2)	(53,021)	5,789
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Balance at end of period	(60,780)	22,880	(60,780)	22,880
Reclassifications out of Accumulated Other Comprehensive Income
Total reclassification for the period	0	0	0	0
Fair Value of Interest Swap Agreements
Changes in Accumulated Other Comprehensive Income by component
Balance at beginning of period	(58)	(111)	(62)	(109)
Other comprehensive income (loss) before reclassifications	2	23	6	21
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Balance at end of period	(56)	(88)	(56)	(88)
Reclassifications out of Accumulated Other Comprehensive Income
Total reclassification for the period	$ 0	$ 0	$ 0	$ 0

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PRODUCT WARRANTIES (Tables)

6 Months Ended

Mar. 31, 2015

Product Warranties Disclosures [Abstract]

Schedule of Change in Warranty Reserves

The changes in warranty reserve for the six-month periods ended March 31, 2015 and 2014, are as follows:

	2015			2014
Balance at September 30,	$	10,778		$	12,301
Additional accruals for warranties during the period	1,710			2,509
Usage during the period	(1,628		)	(3,668		)
Currency translation	(1,123		)	154
Balance at March 31,	$	9,737		$	11,296

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

6 Months Ended

Mar. 31, 2015

Accumulated Other Comprehensive Income (Loss) [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The changes in Accumulated Other Comprehensive Income by component, net of tax, during the six-month periods ended March 31, 2015 and 2014, are as follows:

	Defined Benefit Plans			Foreign Currency Translation Adjustments			Fair Value of Interest Swap Agreements			Total
Balance at September 30, 2014	$	(6,251	)	$	(7,759	)	$	(62	)	$	(14,072	)
Other comprehensive income (loss) before reclassifications	—			(53,021		)	6			(53,015		)
Amounts reclassified from accumulated other comprehensive income	70			—			—			70
Balance at March 31, 2015	$	(6,181	)	$	(60,780	)	$	(56	)	$	(67,017	)

	Defined Benefit Plans			Foreign Currency Translation Adjustments		Fair Value of Interest Swap Agreements			Total
Balance at September 30, 2013	$	(5,449	)	$	17,091	$	(109	)	$	11,533
Other comprehensive income before reclassifications	—			5,789		21			5,810
Amounts reclassified from accumulated other comprehensive income	59			—		—			59
Balance at March 31, 2014	$	(5,390	)	$	22,880	$	(88	)	$	17,402

The changes in Accumulated Other Comprehensive Income by component, net of tax, during the three-month periods ended March 31, 2015 and 2014, are as follows:

	Defined Benefit Plans			Foreign Currency Translation Adjustments			Fair Value of Interest Swap Agreements			Total
Balance at December 31, 2014	$	(6,216	)	$	(21,882	)	$	(58	)	$	(28,156	)
Other comprehensive income (loss) before reclassifications	—			(38,898		)	2			(38,896		)
Amounts reclassified from accumulated other comprehensive income	35			—			—			35
Balance at March 31, 2015	$	(6,181	)	$	(60,780	)	$	(56	)	$	(67,017	)

	Defined Benefit Plans			Foreign Currency Translation Adjustments			Fair Value of Interest Swap Agreements			Total
Balance at December 31, 2013	$	(5,420	)	$	22,882		$	(111	)	$	17,351
Other comprehensive income (loss) before reclassifications	—			(2		)	23			21
Amounts reclassified from accumulated other comprehensive income	30			—			—			30
Balance at March 31, 2014	$	(5,390	)	$	22,880		$	(88	)	$	17,402

Reclassification out of Accumulated Other Comprehensive Income

The reclassifications out of Accumulated Other Comprehensive Income for the three and six-month periods ended March 31, 2015 and 2014, are as follows:

	Three Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
Unamortized loss on defined benefit pension plans
Amortization	$	55		$	47		$	110		$	93
Tax effects	(20		)	(17		)	(40		)	(34		)
Total reclassification for the period	$	35		$	30		$	70		$	59

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 14,919	$ 6,746
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,390	8,324
Stock-based compensation expenses	2,198	2,193
Other adjustments	(3,531)	(1,771)
Change in operating assets and liabilities:
Accounts receivable, trade	11,854	15,401
Inventories	(7,939)	(4,834)
Accounts payable	1,207	1,372
Changes in other operating assets and liabilities	3,077	(9,006)
Net cash provided by operating activities	30,175	18,425
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from the sale of property and equipment	461	150
Additions to property and equipment	(23,076)	(4,247)
Purchases of short-term investments	(114)	(14,876)
Sales of short-term and long-term investments	12,658	19,546
Net cash provided by (used in) investing activities	(10,071)	573
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowing from banks	26,408	20,333
Repayments to banks	(15,183)	(15,468)
Purchase of non-controlling interests	(413)	(234)
Purchases of treasury stock	0	(5,593)
Issuance of common stock	1,573	2,138
Net cash provided by financing activities	12,385	1,176
Effect of foreign currency translation on cash	(14,910)	1,173
Net increase in cash and cash equivalents	17,579	21,347
Cash and cash equivalents at beginning of period	128,537	133,733
Cash and cash equivalents at end of period	146,116	155,080
Cash paid for interest	151	168
Cash paid for taxes	$ 8,211	$ 7,379

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STOCK INCENTIVE PLANS (Tables)

6 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Weighted-Average Assumptions Used to Estimate the Grant Date Fair Values for Stock Options Granted

The fair value of each option award is estimated on the date of grant using the Black-Scholes model. The following assumptions were used in these calculations:

	November 2014 Grants			November 2013 Grants
Weighted average grant date fair value	$	8.37		$	11.72
Expected life	5.40 years			5.40 years
Volatility	37.47		%	50.55		%
Risk-free interest rate	1.73		%	1.48		%
Dividend yield	—		%	—		%

Stock Options Activity

The balance of outstanding stock options and all options activity at and for the six months endedMarch 31, 2015, are as follows:

	Number of Shares		Weighted Average Exercise Price			Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (Millions)
Outstanding at September 30, 2014	3,357,050		$	27	1/10	4.86 years
Granted	341,750		$	22	3/4
Exercised	(228,696	)	$	17	1/8
Forfeited	(37,104	)	$	22	1/2
Outstanding at March 31, 2015	3,433,000		$	27	2/5	5.11 years	$	2.54
Exercisable at March 31, 2015	2,424,400		$	28	1/5	3.74 years	$	2.04

Intrinsic Value of Stock Options Exercised

During the three and six-month periods ended March 31, 2015 and 2014, the following activity occurred under the Incentive Stock Plan:

	Three Months Ended March 31,				Six Months Ended March 31,
	2015		2014		2015		2014
Total intrinsic value of stock options exercised	$	508	$	704	$	1,141	$	1,017
Cash received from stock option exercises	$	468	$	1,558	$	1,573	$	2,138

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GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2014
Goodwill [Roll Forward]
Beginning balance			$ 100,355
Currency translation differences			(8,946)
Ending balance	91,409		91,409
Intangible Assets, Net (Including Goodwill) [Abstract]
Gross Carrying Amount	54,373		54,373		58,452
Accumulated Amortization	40,733		40,733		42,740
Intangible assets amortization expense	751	664	1,535	1,355
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2015 (remainder)	1,300		1,300
2016	1,900		1,900
2017	1,700		1,700
2018	1,300		1,300
2019	1,100		1,100
2020	1,100		1,100
Patents
Intangible Assets, Net (Including Goodwill) [Abstract]
Gross Carrying Amount	16,748		16,748		17,947
Accumulated Amortization	8,478		8,478		8,721
Customer base
Intangible Assets, Net (Including Goodwill) [Abstract]
Gross Carrying Amount	16,853		16,853		18,404
Accumulated Amortization	15,814		15,814		16,883
Other Intangible Assets
Intangible Assets, Net (Including Goodwill) [Abstract]
Gross Carrying Amount	20,772		20,772		22,101
Accumulated Amortization	16,441		16,441		17,136
Germany
Goodwill [Roll Forward]
Beginning balance			40,938
Currency translation differences			(5,678)
Ending balance	35,260		35,260
United States
Goodwill [Roll Forward]
Beginning balance			13,091
Currency translation differences			(426)
Ending balance	12,665		12,665
Rest of World
Goodwill [Roll Forward]
Beginning balance			46,326
Currency translation differences			(2,842)
Ending balance	$ 43,484		$ 43,484

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Sep. 30, 2014
Current assets:
Cash and cash equivalents (Note 4)	$ 146,116	$ 128,537
Short-term investments (Note 4)	0	13,121
Accounts receivable, net of allowance for doubtful accounts $2,681and $3,338, respectively	86,689	108,026
Inventories, net (Note 5)	177,541	190,321
Other current assets and prepaid expenses	34,723	33,870
Total current assets	445,069	473,875
Property and equipment, net	85,017	79,703
Goodwill (Note 6)	91,409	100,355
Other intangibles, net (Note 6)	13,640	15,712
Other assets	18,122	18,940
Total assets	653,257	688,585
Current liabilities:
Lines of credit and short-term borrowings	4,971	3,255
Accounts payable, trade	21,482	22,702
Accounts payable to related party	439	443
Income tax payable	3,862	5,872
Accrued liabilities (Note 7)	65,981	67,581
Total current liabilities	96,735	99,853
Long-term debt	18,067	11,511
Pension obligations	22,926	25,692
Other long-term liabilities	11,250	12,820
Total liabilities	148,978	149,876
Commitments and contingencies
Stockholders’ equity:
Preferred stock, 5,000,000 shares authorized, none issued or outstanding	0	0
Common stock, $0.01 par value, 50,000,000 shares authorized, 33,031,187 shares issued at March 31, 2015, and 32,884,000 shares issued at September 30, 2014	330	329
Additional paid-in capital	236,806	232,832
Retained earnings	502,880	487,976
Accumulated other comprehensive income (Note 10)	(67,017)	(14,072)
Treasury stock, at cost, 4,871,884 shares at March 31, 2015, and 4,871,884 shares at September 30, 2014	(169,262)	(169,262)
Total Rofin-Sinar Technologies Inc. stockholders’ equity	503,737	537,803
Non-controlling interest in subsidiaries	542	906
Total equity	504,279	538,709
Total liabilities and equity	$ 653,257	$ 688,585

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STOCK INCENTIVE PLANS - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected life (in years)	5 years 4 months 25 days	5 years 4 months 25 days
Incentive Compensation Plan 2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period Shares Long TermIncentive Plan Activity			3,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Weighted average grant date fair value	$ 8.37	$ 11.72
Expected volatility rate	37.47%	50.55%
Risk-free interest rate	1.73%	1.48%
Dividend yield	0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Granted (shares)			341,750
Exercised (shares)			(228,696)
Forfeited (shares)			(37,104)
Ending (shares)	3,433,000		3,433,000
Exercisable (sharse)	2,424,400		2,424,400
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted average exercise price, beginning			$ 27.10
Weighted average exercise price, granted			$ 22.75
Weighted average exercise price, exercised			$ 17.13
Weighted average exercise price, forfeited			$ 22.50
Weighted average exercise price, ending	$ 27.40		$ 27.40
Weighted average exercise price, exercisable	$ 28.20		$ 28.20
Weighted Average Remaining Contractual Term (Years)			5 years 1 month 10 days
Aggregate intrinsic value of options outstanding	$ 2,540,000		$ 2,540,000
Weighted Average Remaining Contractual Term (Years), Exercisable			3 years 8 months 25 days
Aggregate intrinsic value of options exercisable	2,040,000		2,040,000
Total unrecognized compensation costs related to stock options	10,400,000		10,400,000
Total unrecognized compensation costs related to stock options, weighted average period of recognition (in years)			3 years 2 months 20 days
Total intrinsic value of stock options exercised	508,000	704,000	1,141,000	1,017,000
Cash received from stock options exercises	$ 468,000	$ 1,558,000	$ 1,573,000	$ 2,138,000

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CONSOLIDATED STATMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Fair value of interest swap agreement, taxes	$ 1	$ 8	$ 2	$ 8
Defined benefit pension plans, taxes	$ 20	$ 17	$ 40	$ 34

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SEGMENT AND GEOGRAPHIC INFORMATION (Tables)

6 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Assets by Geographic Region

Assets, property and equipment, sales, and income before income taxes, by geographic region attributable based on the geographic location of the RSTI entities are summarized below:

	March 31, 2015			September 30, 2014
ASSETS
North America	$	245,160		$	246,370
Germany	404,006			430,123
Other	324,084			347,992
Intercompany eliminations	(319,993		)	(335,900		)
	$	653,257		$	688,585

	March 31, 2015			September 30, 2014
PROPERTY AND EQUIPMENT, NET
North America	$	15,570		$	16,319
Germany	45,882			41,828
Other	23,828			21,822
Intercompany eliminations	(263		)	(266		)
	$	85,017		$	79,703

Revenues by Geographic Region

	Three Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
NET SALES
North America	$	38,999		$	35,722		$	75,131		$	68,477
Germany	73,497			76,954			151,210			153,126
Other	62,117			68,905			123,570			132,427
Intercompany eliminations	(51,894		)	(52,992		)	(104,805		)	(104,252		)
	$	122,719		$	128,589		$	245,106		$	249,778
INTERCOMPANY SALES
North America	$	3,659		$	3,844		$	7,020		$	6,101
Germany	35,497			35,660			72,546			69,717
Other	12,738			13,488			25,239			28,434
Intercompany eliminations	(51,894		)	(52,992		)	(104,805		)	(104,252		)
	$	—		$	—		$	—		$	—
EXTERNAL SALES
North America	$	35,340		$	31,878		$	68,111		$	62,376
Germany	38,000			41,294			78,664			83,409
Other	49,379			55,417			98,331			103,993
	$	122,719		$	128,589		$	245,106		$	249,778

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

INCOME BEFORE INCOME TAX
North America	$	735		$	2,256		$	878		$	2,274
Germany	5,420			(745		)	9,985			(2,350		)
Other	6,429			5,507			10,756			11,616
Intercompany eliminations	(233		)	(410		)	(860		)	(1,447		)
	$	12,351		$	6,608		$	20,759		$	10,093

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SEGMENT AND GEOGRAPHIC INFORMATION

6 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

Assets, property and equipment, sales, and income before income taxes, by geographic region attributable based on the geographic location of the RSTI entities are summarized below:

	March 31, 2015			September 30, 2014
ASSETS
North America	$	245,160		$	246,370
Germany	404,006			430,123
Other	324,084			347,992
Intercompany eliminations	(319,993		)	(335,900		)
	$	653,257		$	688,585

	March 31, 2015			September 30, 2014
PROPERTY AND EQUIPMENT, NET
North America	$	15,570		$	16,319
Germany	45,882			41,828
Other	23,828			21,822
Intercompany eliminations	(263		)	(266		)
	$	85,017		$	79,703

	Three Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
NET SALES
North America	$	38,999		$	35,722		$	75,131		$	68,477
Germany	73,497			76,954			151,210			153,126
Other	62,117			68,905			123,570			132,427
Intercompany eliminations	(51,894		)	(52,992		)	(104,805		)	(104,252		)
	$	122,719		$	128,589		$	245,106		$	249,778
INTERCOMPANY SALES
North America	$	3,659		$	3,844		$	7,020		$	6,101
Germany	35,497			35,660			72,546			69,717
Other	12,738			13,488			25,239			28,434
Intercompany eliminations	(51,894		)	(52,992		)	(104,805		)	(104,252		)
	$	—		$	—		$	—		$	—
EXTERNAL SALES
North America	$	35,340		$	31,878		$	68,111		$	62,376
Germany	38,000			41,294			78,664			83,409
Other	49,379			55,417			98,331			103,993
	$	122,719		$	128,589		$	245,106		$	249,778

INCOME BEFORE INCOME TAX
North America	$	735		$	2,256		$	878		$	2,274
Germany	5,420			(745		)	9,985			(2,350		)
Other	6,429			5,507			10,756			11,616
Intercompany eliminations	(233		)	(410		)	(860		)	(1,447		)
	$	12,351		$	6,608		$	20,759		$	10,093

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ENTERPRISE WIDE INFORMATION (Tables)

6 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Schedule of Product Sales

The Company generates revenues from the sale and servicing of laser products used for macro applications, from the sale and servicing of laser products for marking and micro applications, and from the sale of components products as follows:

	Three Months Ended March 31,				Six Months Ended March 31,
	2015		2014		2015		2014
Macro applications	$	48,374	$	46,772	$	96,082	$	95,858
Marking and micro applications	55,902		65,907		113,509		121,883
Components	18,443		15,910		35,515		32,037
	$	122,719	$	128,589	$	245,106	$	249,778

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TREASURY STOCK

6 Months Ended

Mar. 31, 2015

Treasury Stock, Number of Shares and Restriction Disclosures [Abstract]

Treasury Stock

Treasury Stock

As previously reported, on February 5, 2014, the Board of Directors authorized the Company to initiate a share buyback of up to $25.0 million of the Company’s Common Stock over the next twelve months ending February 10, 2015, subject to market conditions. The program permitted share repurchases from time to time in open market transactions or privately negotiated transactions at the Company’s discretion. During the six-months ended March 31, 2015, the Company did not repurchase any shares of common stock.

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) In Thousands, unless otherwise specified	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Rofin-Sinar Technologies Stockholders’ Equity	Non-Controlling Interest in Subsidiaries
Beginning Balance at Sep. 30, 2013	$ 543,418	$ 327	$ 228,124	$ 462,808	$ 11,533	$ (163,026)	$ 539,766	$ 3,652
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total comprehensive income	12,615			6,699	5,869	0	12,568
Less: Net income attributable to the non-controlling interest	47
Purchase of non-controlling interest	(370)		0				0	(370)
Common stock issued in connection with Stock Incentive Plans	4,624	2	4,622	0	0	0	4,624	0
Purchases of treasury stock	(5,593)					(5,593)	(5,593)
Ending Balance at Mar. 31, 2014	554,694	329	232,746	469,507	17,402	(168,619)	551,365	3,329
Beginning Balance at Sep. 30, 2014	538,709	329	232,832	487,976	(14,072)	(169,262)	537,803	906
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total comprehensive income	(38,026)			14,904	(52,945)	0	(38,041)	15
Less: Net income attributable to the non-controlling interest	15
Purchase of non-controlling interest	(448)	0	(69)				(69)	(379)
Common stock issued in connection with Stock Incentive Plans	4,044	1	4,043	0	0	0	4,044	0
Ending Balance at Mar. 31, 2015	$ 504,279	$ 330	$ 236,806	$ 502,880	$ (67,017)	$ (169,262)	$ 503,737	$ 542

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Sep. 30, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 2,681	$ 3,338
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	33,031,187	32,884,000
Treasury shares	4,871,884	4,871,884

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PRODUCT WARRANTIES

6 Months Ended

Mar. 31, 2015

Product Warranties Disclosures [Abstract]

Product Warranties

Product Warranties

The Company provides for the estimated costs of product warranties when revenue is recognized. The estimate of costs to fulfill warranty obligations is based on historical experience and an expectation of future conditions.

The changes in warranty reserve for the six-month periods ended March 31, 2015 and 2014, are as follows:

	2015			2014
Balance at September 30,	$	10,778		$	12,301
Additional accruals for warranties during the period	1,710			2,509
Usage during the period	(1,628		)	(3,668		)
Currency translation	(1,123		)	154
Balance at March 31,	$	9,737		$	11,296

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Document and Entity Information	6 Months Ended
	Mar. 31, 2015	May 08, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Trading Symbol	RSTI
Entity Registrant Name	ROFIN SINAR TECHNOLOGIES INC
Entity Central Index Key	0001019361
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		28,162,403

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

6 Months Ended

Mar. 31, 2015

Accumulated Other Comprehensive Income (Loss) [Abstract]

Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The changes in Accumulated Other Comprehensive Income by component, net of tax, during the three-month periods ended March 31, 2015 and 2014, are as follows:

	Defined Benefit Plans			Foreign Currency Translation Adjustments			Fair Value of Interest Swap Agreements			Total
Balance at December 31, 2014	$	(6,216	)	$	(21,882	)	$	(58	)	$	(28,156	)
Other comprehensive income (loss) before reclassifications	—			(38,898		)	2			(38,896		)
Amounts reclassified from accumulated other comprehensive income	35			—			—			35
Balance at March 31, 2015	$	(6,181	)	$	(60,780	)	$	(56	)	$	(67,017	)

	Defined Benefit Plans			Foreign Currency Translation Adjustments			Fair Value of Interest Swap Agreements			Total
Balance at December 31, 2013	$	(5,420	)	$	22,882		$	(111	)	$	17,351
Other comprehensive income (loss) before reclassifications	—			(2		)	23			21
Amounts reclassified from accumulated other comprehensive income	30			—			—			30
Balance at March 31, 2014	$	(5,390	)	$	22,880		$	(88	)	$	17,402

The changes in Accumulated Other Comprehensive Income by component, net of tax, during the six-month periods ended March 31, 2015 and 2014, are as follows:

	Defined Benefit Plans			Foreign Currency Translation Adjustments			Fair Value of Interest Swap Agreements			Total
Balance at September 30, 2014	$	(6,251	)	$	(7,759	)	$	(62	)	$	(14,072	)
Other comprehensive income (loss) before reclassifications	—			(53,021		)	6			(53,015		)
Amounts reclassified from accumulated other comprehensive income	70			—			—			70
Balance at March 31, 2015	$	(6,181	)	$	(60,780	)	$	(56	)	$	(67,017	)

	Defined Benefit Plans			Foreign Currency Translation Adjustments		Fair Value of Interest Swap Agreements			Total
Balance at September 30, 2013	$	(5,449	)	$	17,091	$	(109	)	$	11,533
Other comprehensive income before reclassifications	—			5,789		21			5,810
Amounts reclassified from accumulated other comprehensive income	59			—		—			59
Balance at March 31, 2014	$	(5,390	)	$	22,880	$	(88	)	$	17,402

The reclassifications out of Accumulated Other Comprehensive Income for the three and six-month periods ended March 31, 2015 and 2014, are as follows:

	Three Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
Unamortized loss on defined benefit pension plans
Amortization	$	55		$	47		$	110		$	93
Tax effects	(20		)	(17		)	(40		)	(34		)
Total reclassification for the period	$	35		$	30		$	70		$	59

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Net sales	$ 122,719	$ 128,589	$ 245,106	$ 249,778
Cost of goods sold	77,322	82,253	157,082	162,134
Gross profit	45,397	46,336	88,024	87,644
Selling, general, and administrative expenses	24,490	27,728	48,589	53,121
Research and development expenses	9,710	11,559	20,326	23,099
Amortization expense	751	664	1,535	1,355
Income from operations	10,446	6,385	17,574	10,069
Other (income) expense
Interest income	(110)	(134)	(200)	(258)
Interest expense	95	101	176	512
Foreign currency (income) expense	(1,975)	798	(3,279)	959
Other (income) expense	85	(988)	118	(1,237)
Income before income tax	12,351	6,608	20,759	10,093
Income tax expense	3,603	2,113	5,840	3,347
Net income	8,748	4,495	14,919	6,746
Less: Net income attributable to the non-controlling interest	11	6	15	47
Net income attributable to RSTI	$ 8,737	$ 4,489	$ 14,904	$ 6,699
Net income attributable to RSTI per share:
Per share of common stock basic	$ 0.31	$ 0.16	$ 0.53	$ 0.24
Per share of common stock diluted	$ 0.31	$ 0.16	$ 0.53	$ 0.24
Weighted-average shares used in computing earnings per share (Note 12)
Basic (shares)	28,113,807	28,116,693	28,080,589	28,132,038
Diluted (shares)	28,243,878	28,272,005	28,224,091	28,301,366

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FAIR VALUE MEASUREMENTS

6 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The Company’s cash and cash equivalents, short-term investments, accounts receivable, and accrued liabilities are carried at amounts, which reasonably approximate their fair values due to their short-term nature. The Company’s lines of credit, short-term borrowings and long-term debt bear interest at variable and fixed interest rates that approximate market. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied.

Assets and liabilities recorded at fair value in our balance sheet are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities are as follows:

• Level 1 - Unadjusted observable quoted prices for identical instruments in active markets.

• Level 2 - Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.

• Level 3 - Unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability.

Financial assets and liabilities measured at fair value on a recurring basis are classified on the valuation technique level in the table below:

March 31, 2015	Total			Level 1		Level 2			Level 3
Cash and cash equivalents	$	146,116		$	146,116	$	—		$	—
Short-term investments	—			—		—			—
Derivatives	(123		)	—		(123		)	—
Other long-term assets	550			—		550			—
Total assets and liabilities at fair value	$	146,543		$	146,116	$	427		$	—

September 30, 2014	Total			Level 1		Level 2			Level 3
Cash and cash equivalents	$	128,537		$	128,537	$	—		$	—
Short-term investments	13,121			13,121		—			—
Derivatives	(92		)	—		(92		)	—
Other long-term assets	550			—		550			—
Total assets and liabilities at fair value	$	142,116		$	141,658	$	458		$	—

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ACQUISITIONS

6 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Acquisitions

Acquisitions

On November 18, 2013, the Company purchased the remaining 10% of the share capital of m2k-laser GmbH through its wholly-owned subsidiary RSL under an option agreement between the Company and the minority shareholders of m2k-laser GmbH. As a result, the Company currently holds 100% of the share capital of m2k-laser GmbH.

Effective December 20, 2013, the Company acquired the remaining 12% of the common stock of ROFIN-BAASEL Japan Corp. through its wholly-owned subsidiary RSL. The Company currently holds 100% of the share capital of ROFIN-BAASEL Japan Corp.

On April 10, 2014, the Company completed the acquisition of certain assets of FiLaser USA LLC ("FiLaser") and subsidiaries. The transaction contained all intellectual property including know-how, patents and patent applications of FiLaser. FiLaser developed advanced laser process technology used for precision cutting and drilling of brittle material including glass, sapphire and semiconductor substrates. The Company has held back approximately 28% of the purchase price as security for various claims. In addition, the purchase agreement also provides for potential future earn-out payments from revenues generated from certain of these intangible assets.

Effective June 12, 2014, the Company acquired the remaining 5% of the common stock of DILAS Diodenlaser GmbH through its wholly-owned subsidiary ROFIN-SINAR Technologies Europe S.L. The Company currently holds 100% of the share capital of DILAS Diodenlaser GmbH.

Effective December 23, 2014, the Company acquired an additional 8.8% of the common stock of Nanjing Eastern Laser Co., Ltd. The Company currently holds 88.8% of the share capital of Nanjing Eastern Laser Co., Ltd.

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ENTERPRISE WIDE INFORMATION

6 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Enterprise Wide Information

Enterprise-Wide Information

The Company generates revenues from the sale and servicing of laser products used for macro applications, from the sale and servicing of laser products for marking and micro applications, and from the sale of components products as follows:

	Three Months Ended March 31,				Six Months Ended March 31,
	2015		2014		2015		2014
Macro applications	$	48,374	$	46,772	$	96,082	$	95,858
Marking and micro applications	55,902		65,907		113,509		121,883
Components	18,443		15,910		35,515		32,037
	$	122,719	$	128,589	$	245,106	$	249,778

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STOCK INCENTIVE PLANS

6 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Incentive Plans

Stock Incentive Plans

The Company maintains an Incentive Stock Plan, whereby incentive and non-qualified stock options, restricted stock and performance shares may be granted to officers and other key employees to purchase a specified number of shares of common stock at a price not less than the fair market value on the date of grant. The term of the Incentive Stock Plan continues through 2017. There were no incentive stock options, restricted stock or performance shares granted in fiscal year 2014 or through the first six months of fiscal year 2015. Non-qualified stock options were granted to officers and other key employees in the first quarter of fiscal year 2015 and 2014. During the six-month periods ended March 31, 2015 and 2014, outside directors each received 3,000 shares of common stock, from the 2007 Incentive Stock Plan, that were fully vested upon grant. Options granted to officers and other key employees generally vest over five years and will expire not later than ten years after the date on which they are granted.

The fair value of each option award is estimated on the date of grant using the Black-Scholes model. The following assumptions were used in these calculations:

	November 2014 Grants			November 2013 Grants
Weighted average grant date fair value	$	8.37		$	11.72
Expected life	5.40 years			5.40 years
Volatility	37.47		%	50.55		%
Risk-free interest rate	1.73		%	1.48		%
Dividend yield	—		%	—		%

The Company uses historical data to estimate the expected life, volatility, and annual forfeiture rates of outstanding options. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant.

The balance of outstanding stock options and all options activity at and for the six months endedMarch 31, 2015, are as follows:

	Number of Shares		Weighted Average Exercise Price			Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (Millions)
Outstanding at September 30, 2014	3,357,050		$	27	1/10	4.86 years
Granted	341,750		$	22	3/4
Exercised	(228,696	)	$	17	1/8
Forfeited	(37,104	)	$	22	1/2
Outstanding at March 31, 2015	3,433,000		$	27	2/5	5.11 years	$	2.54
Exercisable at March 31, 2015	2,424,400		$	28	1/5	3.74 years	$	2.04

As of March 31, 2015, there were $10.4 million of total unrecognized compensation costs related to unvested stock options. These costs are expected to be recognized over a weighted-average period of 3.22 years.

During the three and six-month periods ended March 31, 2015 and 2014, the following activity occurred under the Incentive Stock Plan:

	Three Months Ended March 31,				Six Months Ended March 31,
	2015		2014		2015		2014
Total intrinsic value of stock options exercised	$	508	$	704	$	1,141	$	1,017
Cash received from stock option exercises	$	468	$	1,558	$	1,573	$	2,138

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ACCRUED LIABILITIES

6 Months Ended

Mar. 31, 2015

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued Liabilities

Accrued liabilities are comprised of the following:

	March 31, 2015		September 30, 2014
Employee compensation	$	18,271	$	21,822
Warranty reserves	9,737		10,778
Other taxes payable	196		665
Customer deposits	18,595		12,379
Other	19,182		21,937
Total accrued liabilities	$	65,981	$	67,581

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INVENTORIES

6 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories are stated at the lower of cost or market, after provisions for excess and obsolete inventory salable at prices below cost.

Costs are determined using the first in, first out and weighted-average cost methods and are summarized as follows:

	March 31, 2015		September 30, 2014
Finished goods	$	29,262	$	31,625
Work in progress	37,481		41,057
Raw materials and supplies	65,924		68,298
Demo inventory	15,174		18,268
Service parts	29,700		31,073
Total inventories	$	177,541	$	190,321

Net inventory is net of provisions for excess and obsolete inventory of $27,829 and $29,974 at March 31, 2015, and September 30, 2014, respectively.

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GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the six months endedMarch 31, 2015, are as follows:

	Germany			United States			Rest of World			Total
Balance as of September 30, 2014	$	40,938		$	13,091		$	46,326		$	100,355
Currency translation differences	(5,678		)	(426		)	(2,842		)	(8,946		)
Balance as of March 31, 2015	$	35,260		$	12,665		$	43,484		$	91,409

The carrying values of other intangible assets are as follows:

	March 31, 2015				September 30, 2014
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Patents	$	16,748	$	8,478	$	17,947	$	8,721
Customer base	16,853		15,814		18,404		16,883
Other	20,772		16,441		22,101		17,136
Total	$	54,373	$	40,733	$	58,452	$	42,740

Amortization expense for each of the six-month periods ended March 31, 2015 and 2014, was $1,535 and $1,355, respectively. At March 31, 2015, estimated amortization expense of existing intangible assets for the remainder of fiscal year 2015 and the next five fiscal years based on the average exchange rates as of March 31, 2015, is as follows:

2015 (remainder)	1,300
2016	1,900
2017	1,700
2018	1,300
2019	1,100
2020	1,100

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INCOME TAXES

6 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company's policy is to recognize interest and penalties accrued on any unrecognized tax benefits as interest expense and selling, general and administrative expense, respectively. The Company has classified unrecognized tax benefits as non-current because payment is not anticipated within one year of the balance sheet date.

As of March 31, 2015, the Company's gross unrecognized tax benefits totaled $0.5 million which includes $0.2 million of interest and penalties. The Company estimates that the unrecognized tax benefits will not change significantly within the next year.

The Company files federal and state income tax returns in several domestic and foreign jurisdictions. In most tax jurisdictions, returns are subject to examination by the relevant tax authorities for a number of years after the returns have been filed. With limited exceptions, the Company is no longer subject to examination by the United States Internal Revenue Service for tax years through 2008. With respect to state and local tax jurisdictions and countries outside the United States, with limited exceptions, the Company is no longer subject to income tax audits for tax years before 2008.

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DEFINED BENEFIT PLANS (Tables)

6 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Costs

Components of net periodic cost were as follows for the three and six-month periods ended March 31, 2015 and 2014:

	Three Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
Service cost	$	232		$	245		$	477		$	490
Interest cost	265			335			544			669
Expected return on plan assets	(175		)	(167		)	(350		)	(334		)
Amortization of prior net (gain) loss	(6		)	28			(13		)	56
Amortization of prior service cost	61			19			123			38
Net periodic pension cost	$	377		$	460		$	781		$	919

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DEFINED BENEFIT PLANS

6 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Defined Benefit Plans

Defined Benefit Plans

Components of net periodic cost were as follows for the three and six-month periods ended March 31, 2015 and 2014:

	Three Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
Service cost	$	232		$	245		$	477		$	490
Interest cost	265			335			544			669
Expected return on plan assets	(175		)	(167		)	(350		)	(334		)
Amortization of prior net (gain) loss	(6		)	28			(13		)	56
Amortization of prior service cost	61			19			123			38
Net periodic pension cost	$	377		$	460		$	781		$	919

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis are classified on the valuation technique level in the table below:

March 31, 2015	Total			Level 1		Level 2			Level 3
Cash and cash equivalents	$	146,116		$	146,116	$	—		$	—
Short-term investments	—			—		—			—
Derivatives	(123		)	—		(123		)	—
Other long-term assets	550			—		550			—
Total assets and liabilities at fair value	$	146,543		$	146,116	$	427		$	—

September 30, 2014	Total			Level 1		Level 2			Level 3
Cash and cash equivalents	$	128,537		$	128,537	$	—		$	—
Short-term investments	13,121			13,121		—			—
Derivatives	(92		)	—		(92		)	—
Other long-term assets	550			—		550			—
Total assets and liabilities at fair value	$	142,116		$	141,658	$	458		$	—

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ENTERPRISE WIDE INFORMATION (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Revenue from External Customer [Line Items]
Revenue, Net	$ 122,719	$ 128,589	$ 245,106	$ 249,778
Laser Macro Products
Revenue from External Customer [Line Items]
Revenue, Net	48,374	46,772	96,082	95,858
Laser Marking And Micro Products
Revenue from External Customer [Line Items]
Revenue, Net	55,902	65,907	113,509	121,883
Components
Revenue from External Customer [Line Items]
Revenue, Net	$ 18,443	$ 15,910	$ 35,515	$ 32,037

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ACCRUED LIABILITIES (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Sep. 30, 2014	Mar. 31, 2014	Sep. 30, 2013
Payables and Accruals [Abstract]
Employee compensation	$ 18,271	$ 21,822
Warranty reserves	9,737	10,778	11,296	12,301
Other taxes payable	196	665
Customer deposits	18,595	12,379
Other	19,182	21,937
Total accrued liabilities	$ 65,981	$ 67,581

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 8,748	$ 4,495	$ 14,919	$ 6,746
Fair value of interest rate swap agreements, net of tax expense of $1 and $8, $2 and $8	2	23	6	21
Foreign currency translation adjustments	(38,898)	(2)	(53,021)	5,789
Defined benefit pension plans, net of tax of $20 and $17, $40 and $34	35	30	70	59
Other Comprehensive Income (Loss), Net of Tax	(38,861)	51	(52,945)	5,869
Total comprehensive income (loss)	(30,113)	4,546	(38,026)	12,615
Less: Net income attributable to the non-controlling interest	11	6	15	47
Total comprehensive income (loss) attributable to RSTI	$ (30,124)	$ 4,540	$ (38,041)	$ 12,568

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NEW ACCOUNTING STANDARDS

6 Months Ended

Mar. 31, 2015

Accounting Changes and Error Corrections [Abstract]

New Accounting Standards

New Accounting Standards

In March 2013, the FASB issued ASU No. 2013-05, “Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity”. This ASU amended guidance related to a parent company’s accounting for the release of the cumulative translation adjustment into net income upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This guidance became effective for the Company in fiscal year 2015, and is to be applied prospectively to derecognition events occurring after the effective date. The adoption of this amendment did not have an impact on the Company's financial statements.

In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax Credit Carryforward Exists". ASU 2013-11 provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. Under this guidance an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. These amendments were effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 (fiscal year 2015 for the Company). The adoption did not have an impact on the Company's consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 provides guidance on revenue from contracts with customers, which implements a five step process of how an entity should recognize revenue in order to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the impact that the adoption will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. This guidance becomes effective for the Company at the beginning of our 2017 fiscal year, however on April 1, 2015, the FASB proposed to defer the effective date of this revenue recognition guidance by one year.

In August 2014, the FASB issued No. ASU 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern". ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, ASU 2014-15 (1) provides a definition of the term substantial doubt, (2) requires an evaluation every reporting period including interim periods, (3) provides principles for considering the mitigating effect of management’s plans, (4) requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) requires an express statement and other disclosures when substantial doubt is not alleviated, and (6) requires an assessment for a period of one year after the date that the financial statements are issued (or are available to be issued). The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early application is permitted. This guidance will not have a material impact on our consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-05, "Customer's Accounting for Fees Paid in a Cloud Computing Arrangement". ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If the arrangement includes a software license, the customer should account for the software license element in a manner consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. This guidance will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015 (fiscal year 2017 for the Company). The Company does not believe the pronouncement will have a material impact on the Company’s consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs”. This standard amends existing guidance to require the presentation of debt issuance cost in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. The Company does not believe the pronouncement will have a material impact on the Company’s financial statements and will implement the pronouncement beginning in the period after December 15, 2015.

Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

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INVENTORIES (Tables)

6 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Inventories, Net of Obsolescens and Lower Cost or Market Reserve

Costs are determined using the first in, first out and weighted-average cost methods and are summarized as follows:

	March 31, 2015		September 30, 2014
Finished goods	$	29,262	$	31,625
Work in progress	37,481		41,057
Raw materials and supplies	65,924		68,298
Demo inventory	15,174		18,268
Service parts	29,700		31,073
Total inventories	$	177,541	$	190,321

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FAIR VALUE MEASUREMENTS Assets and Liabilities Measured on a Recurring Basis (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Sep. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 146,116	$ 128,537
Short-term investments, Fair Value Disclosure	0	13,121
Derivative Liability, Fair Value, Gross Liability		92
Derivative Asset, Fair Value, Gross Liability	(123)
Held-to-maturity Securities, Fair Value	(550)	(550)
Total assets and liabilities at fair value	146,543	142,116
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	146,116	128,537
Short-term investments, Fair Value Disclosure	0	13,121
Derivative Liability, Fair Value, Gross Liability		0
Derivative Asset, Fair Value, Gross Liability	0
Held-to-maturity Securities, Fair Value	0	0
Total assets and liabilities at fair value	146,116	141,658
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Short-term investments, Fair Value Disclosure	0	0
Derivative Liability, Fair Value, Gross Liability		92
Derivative Asset, Fair Value, Gross Liability	(123)
Held-to-maturity Securities, Fair Value	(550)	(550)
Total assets and liabilities at fair value	427	458
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Short-term investments, Fair Value Disclosure	0	0
Derivative Liability, Fair Value, Gross Liability		0
Derivative Asset, Fair Value, Gross Liability	0
Held-to-maturity Securities, Fair Value	0	0
Total assets and liabilities at fair value	$ 0	$ 0

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EARNINGS PER COMMON SHARE

6 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earning per Common Share

Earnings Per Common Share

The basic earnings per common share (EPS) calculation is computed by dividing net income attributable to holders of RSTI common stock by the weighted average number of shares outstanding during the period. Diluted earnings per common share reflect the potential dilution from common stock equivalents (stock options).

The calculation of the weighted average number of shares outstanding for each period is as follows:

	Three Months Ended March 31,		Six Months Ended March 31,
	2015	2014	2015	2014
Weighted number of shares for basic earnings per common share	28,113,807	28,116,693	28,080,589	28,132,038
Potential additional shares due to outstanding dilutive stock options	130,071	155,312	143,502	169,328
Weighted number of shares for diluted earnings per common share	28,243,878	28,272,005	28,224,091	28,301,366

The weighted average diluted shares outstanding for the six months endedMarch 31, 2015 and 2014, excludes the dilutive effect of approximately 2.4 million and 2.9 million stock options, respectively, since the impact of including these options in diluted earnings per share for these periods was antidilutive.