x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
EXCHANGE ACT OF 1934 |
Massachusetts | 04-2441294 |
(State of incorporation) | (I.R.S. Employer Identification No.) |
Title of Each Class | Name of Exchange on Which Registered |
Common Stock, par value $0.01 per share | NASDAQ Global Market |
Large accelerated filer ¨ | Accelerated filer ¨ |
Non-accelerated filer ¨ | Smaller Reporting Company x |
Page | ||
Note: Items 1B, 6 and 7A are not required for Smaller Reporting Companies and therefore are not furnished. | ||
Item 1. | Business |
• | The HPP segment revenues have two distinct product lines: (i) our Multicomputer product portfolio of computing systems for digital signal processing ("DSP") applications within the defense market and (ii) our Myricom product line of network Ethernet adapters that are offered to both commercial and government customers. |
• | Our Multicomputer revenue flows from a modest number of existing high-value customers that support the deployment and maintenance of systems utilized by domestic and foreign government entities. During fiscal 2015, the Company determined to no longer design and develop new systems for the defense market and is not expected to participate in next generation of defense systems and applications. Instead, the Company will focus on servicing the existing product line. As a result, the revenue from these products as a percentage of overall Company revenue is expected to decline over time as we focus on the growth of our Myricom products and TS Segment product line. |
• | Our Myricom product portfolio derives its revenues from a line of network Ethernet adapters purchased by a wide range of customers in three specialized markets: (i) packet capture, (ii) financial transactions and (iii) the storage interconnect market. Our primary customers in the packet capture market include government agencies that want the ability to capture, inject, and analyze network traffic at line rate, and original equipment manufacturers ("OEM") selling into vendors of computer security appliances. Our customers in the financial transactions market include |
• | The TS segment consists of our wholly-owned Modcomp subsidiary, which operates in the United States, Germany and the United Kingdom. |
• | The TS segment generates product revenues by reselling third-party computer hardware and software as a value added reseller (“VAR”). The TS segment generates service revenues by the delivery of integration services for complex IT environments, including advanced security; unified communications and collaboration; wireless and mobility; data center solutions; and network solutions as well as managed IT services ("MSP") that primarily serve the small and mid-sized business market ("SMB"). |
• | Third party products and professional services are marketed and sold through the Company's direct sales force into a variety of vertical markets, including; automotive; defense; health care; education; federal, state and local government; and maritime. |
Segment | 2016 | % | 2015 | % | ||||||||||
(Dollar amounts in thousands) | ||||||||||||||
HPP | $ | 16,342 | 16 | % | $ | 13,948 | 16 | % | ||||||
TS | 87,025 | 84 | % | 75,358 | 84 | % | ||||||||
Total Sales | $ | 103,367 | 100 | % | $ | 89,306 | 100 | % |
• | Implementation, integration, migration, configuration, installation services and project management. |
• | Unified Storage Platforms ("USPs"). We help our customers implement USP solutions using products from Dell, EMC, HP and NetApp. USPs have advantages over conventional storage architecture, which include cost savings from better utilization of hardware and lower headcount requirements to run and maintain data storage systems, higher availability and faster data access rates resulting in increased productivity. |
• | Virtualization. We help our customers implement virtualization solutions using products from companies such as VMWare and Citrix that allow one computer to do the job of multiple computers by sharing resources of a single computer across multiple environments. Virtualization eliminates physical and geographical limitations and enables users to host multiple operating systems and applications on fewer servers. Benefits include energy cost savings, lower capital expenditure requirements, high availability of resources, better desktop management, increased security and improved disaster recovery. |
• | Enterprise security intrusion prevention, network access control and unified threat management. Using third-party products from companies like Checkpoint, Palo Alto, Juniper Networks and Cisco Systems, our services are designed to ensure data security and integrity through the establishment of virtual private networks, firewalls and other technologies. |
• | IT security compliance services. We provide services for IT security compliance with personal privacy laws such as the Payment Card Industry Data Security Standard (PCI DSS), the Health Insurance Portability and Accountability Act of 1996 (HIPAA), and internal control regulations under the Sarbanes-Oxley Act (SOX). |
• | Unified communications, wireless and routing and switching solutions using Cisco Systems and Aruba Networks products and services. |
• | Custom software applications and solutions development and support. We develop custom applications to customer specifications using industry standard platforms such as Microsoft.Net, SharePoint and OnBase. We are a Microsoft Gold Partner. |
• | Managed IT services that include monitoring, reporting and management of alerts for the resolution and preventive general IT and IT security support tasks. |
• | Maintenance and technical support for third-party products including hardware and software, operating system and user support. |
Item 1A. | Risk Factors |
• | cancel multi-year contracts and related orders if funds for contract performance for any subsequent year become unavailable; |
• | claim rights in systems and software developed by us; |
• | suspend or debar us from doing business with the federal government or with a governmental agency; |
• | impose fines and penalties and subject us to criminal prosecution; and |
• | control or prohibit the export of our data and technology. |
• | sales in relatively large dollar amounts to a relatively small number of customers; |
• | competitive pricing programs and volume discounts; |
• | loss of customers; |
• | market acceptance of our products; |
• | product obsolescence; |
• | general economic conditions; |
• | change in the mix of products sold; |
• | whether or not we are able to secure design wins for significant customer systems; |
• | timing of significant orders; |
• | delays in completion of internal product development projects or introduction of new products; |
• | delays in shipping our products; |
• | delays in acceptance testing by customers; |
• | production delays due to quality programs with outsourced components; |
• | shortages of components; |
• | timing of product line transitions; |
• | uncertainty and timing of funding of governmental programs, including defense; |
• | declines of revenues from previous generations of products following announcement of replacement products containing more advanced technology; and |
• | fixed nature of our expenditures on personnel, facilities and marketing programs. |
• | loss of a major customer; |
• | loss of a major supplier; |
• | the addition or departure of key personnel; |
• | variations in our quarterly operating results; |
• | announcements by us or our competitors of significant contracts, new products or product enhancements; |
• | acquisitions, distribution partnerships, joint ventures or capital commitments; |
• | regulatory changes; |
• | sales of our common stock or other securities in the future; |
• | changes in market valuations of technology companies; and |
• | fluctuations in stock market prices and volumes. |
Item 2. | Properties |
Location | Principal Use | Owned or Leased | Approximate Floor Area | |||
HPP Segment Properties: | ||||||
CSP Inc. | Corporate Headquarters | Leased | 13,515 S.F. | |||
175 Cabot Street, Suite 210 | Manufacturing, Sales, | |||||
Lowell, MA 01854 | Marketing and | |||||
Administration | ||||||
TS Segment Properties: | ||||||
Modcomp, Inc. | Division Headquarters | Leased | 11,815 S.F. | |||
1182 East Newport Center Drive | Sales, Marketing and | |||||
Deerfield Beach, FL 33442 | Administration | |||||
Modular Computer Systems GmbH | Sales, Marketing, Service | Leased | 11,031 S.F. | |||
Oskar-Jager-Strasse 173/K4 | and Administration | |||||
D-50825 Koln | ||||||
Germany | ||||||
Modcomp, Ltd. | Sales, Marketing and | Leased | 2,490 S.F. | |||
12a Oaklands Business Park, Fishponds Road | Administration | |||||
Wokingham Berkshire | ||||||
United Kingdom | ||||||
2016 | 2015 | ||||||||||||||
Fiscal Year: | High | Low | High | Low | |||||||||||
1st Quarter | $ | 7.18 | $ | 5.28 | $ | 8.34 | $ | 6.90 | |||||||
2nd Quarter | 6.95 | 5.36 | 7.79 | 6.18 | |||||||||||
3rd Quarter | 9.09 | 5.92 | 7.79 | 6.46 | |||||||||||
4th Quarter | 10.95 | 8.00 | 7.19 | 5.30 |
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
September 30, 2016 | % of sales | September 30, 2015 | % of sales | |||||||||||
(Dollar amounts in thousands) | ||||||||||||||
Sales | $ | 103,367 | 100 | % | $ | 89,306 | 100 | % | ||||||
Costs and expenses: | ||||||||||||||
Cost of sales | 78,326 | 76 | % | 70,119 | 79 | % | ||||||||
Engineering and development | 2,984 | 3 | % | 2,826 | 3 | % | ||||||||
Selling, general and administrative | 18,256 | 18 | % | 16,135 | 18 | % | ||||||||
Total costs and expenses | 99,566 | 96 | % | 89,080 | 100 | % | ||||||||
Operating income | 3,801 | 4 | % | 226 | — | % | ||||||||
Other expense, net | (201 | ) | — | % | (210 | ) | — | % | ||||||
Income before income taxes | 3,600 | 3 | % | 16 | — | % | ||||||||
Income tax expense | 996 | 1 | % | 226 | — | % | ||||||||
Net income (loss) | $ | 2,604 | 3 | % | $ | (210 | ) | — | % |
(Dollar amounts in thousands) | Increase | ||||||||||||||
2016 | 2015 | $ | % | ||||||||||||
Product | $ | 11,190 | $ | 9,894 | $ | 1,296 | 13 | % | |||||||
Services | 5,152 | 4,054 | 1,098 | 27 | % | ||||||||||
Total | $ | 16,342 | $ | 13,948 | $ | 2,394 | 17 | % |
(Dollar amounts in thousands) | Increase | ||||||||||||||
2016 | 2015 | $ | % | ||||||||||||
Product | $ | 66,645 | $ | 56,553 | $ | 10,092 | 18 | % | |||||||
Services | 20,380 | 18,805 | 1,575 | 8 | % | ||||||||||
Total | $ | 87,025 | $ | 75,358 | $ | 11,667 | 15 | % |
(Dollar amounts in thousands) | |||||||||||||||||||||
For the Twelve Months Ended September 30, | Increase | ||||||||||||||||||||
2016 | % | 2015 | % | $ | % | ||||||||||||||||
Americas | $ | 71,115 | 69 | % | $ | 58,433 | 66 | % | $ | 12,682 | 22 | % | |||||||||
Europe | 27,960 | 27 | % | 27,848 | 31 | % | 112 | — | % | ||||||||||||
Asia | 4,292 | 4 | % | 3,025 | 3 | % | 1,267 | 42 | % | ||||||||||||
Totals | $ | 103,367 | 100 | % | $ | 89,306 | 100 | % | $ | 14,061 | 16 | % |
(Dollar amounts in thousands) | |||||||||||||||||||
2016 | 2015 | Increase | |||||||||||||||||
GM$ | GM% | GM$ | GM% | GM$ | GM% | ||||||||||||||
HPP | $ | 10,111 | 62 | % | $ | 7,949 | 57 | % | $ | 2,162 | 5 | % | |||||||
TS | 14,930 | 17 | % | 11,238 | 15 | % | 3,692 | 2 | % | ||||||||||
Total | $ | 25,041 | 24 | % | $ | 19,187 | 21 | % | $ | 5,854 | 3 | % |
(Dollar amounts in thousands) | |||||||||||||||||||
2016 | 2015 | Increase | |||||||||||||||||
GM$ | GM% | GM$ | GM% | GM$ | GM% | ||||||||||||||
Product | $ | 5,072 | 45 | % | $ | 3,985 | 40 | % | $ | 1,087 | 5 | % | |||||||
Services | 5,039 | 98 | % | 3,964 | 98 | % | 1,075 | — | % | ||||||||||
Total | $ | 10,111 | 62 | % | $ | 7,949 | 57 | % | $ | 2,162 | 5 | % |
(Dollar amounts in thousands) | |||||||||||||||||||
2016 | 2015 | Increase | |||||||||||||||||
GM$ | GM% | GM$ | GM% | GM$ | GM% | ||||||||||||||
Product | $ | 9,224 | 14 | % | $ | 6,984 | 12 | % | $ | 2,240 | 2 | % | |||||||
Services | 5,706 | 28 | % | 4,254 | 23 | % | 1,452 | 5 | % | ||||||||||
Total | $ | 14,930 | 17 | % | $ | 11,238 | 15 | % | $ | 3,692 | 2 | % |
(Dollar amounts in thousands) | ||||||||||||||||||||
For the Year ended September 30, | ||||||||||||||||||||
2016 | % of Total | 2015 | % of Total | $ Increase (Decrease) | % Increase | |||||||||||||||
By Operating Segment: | ||||||||||||||||||||
HPP | $ | 2,984 | 100 | % | $ | 2,772 | 98 | % | $ | 212 | 8 | % | ||||||||
TS | — | — | % | 54 | 2 | % | (54 | ) | — | % | ||||||||||
Total | $ | 2,984 | 100 | % | $ | 2,826 | 100 | % | $ | 158 | 6 | % |
(Dollar amounts in thousands) | ||||||||||||||||||||
For the Year ended September 30, | ||||||||||||||||||||
2016 | % of Total | 2015 | % of Total | $ Increase | % Increase | |||||||||||||||
By Operating Segment: | ||||||||||||||||||||
HPP | $ | 5,663 | 31 | % | $ | 4,692 | 29 | % | $ | 971 | 21 | % | ||||||||
TS | 12,593 | 69 | % | 11,443 | 71 | % | 1,150 | 10 | % | |||||||||||
Total | $ | 18,256 | 100 | % | $ | 16,135 | 100 | % | $ | 2,121 | 13 | % |
(Dollar amounts in thousands) | |||||||||||
For the Year ended September 30, | |||||||||||
2016 | 2015 | Increase (Decrease) | |||||||||
Interest expense | $ | (87 | ) | $ | (84 | ) | $ | (3 | ) | ||
Interest income | 7 | 9 | (2 | ) | |||||||
Foreign exchange loss | (134 | ) | (172 | ) | 38 | ||||||
Other income, net | 13 | 37 | (24 | ) | |||||||
Total other expense, net | $ | (201 | ) | $ | (210 | ) | $ | 9 |
Item 8. | Financial Statements and Supplementary Data |
Page | |
Item 9A. | Controls and Procedures |
• | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of a company; |
• | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of a company are being made only in accordance with authorizations of management and the board of directors of a company; and |
• | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of a company's assets that could have a material effect on its financial statements. |
Item 10. | Directors, Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
(a) (1)(2) | (b) | (c) | ||||||||
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding stock options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column) (a))(3) | |||||||
Equity compensation plans approved by security holders | 189,334 | $ | 5.76 | 441,547 |
(1) | Includes 165,708 non-vested shares issued. |
(2) | Does not include purchase rights under the ESPP, as the purchase price and number of shares to be purchased under the ESPP are not determined until the end of the relevant purchase period. |
(3) | Includes 269,465 shares available for future issuance under the stock incentive and stock option plans and 172,082 under the ESPP. |
Item 13. | Certain Relationships and Related Transactions and Director Independence |
Item 14. | Principal Accountant Fees and Services |
Item 15. | Exhibits and Financial Statement Schedules |
Exhibit No. | Description | Filed with this Form 10-K | Incorporated by Reference | ||||||||
Form | Filing Date | Exhibit No. | |||||||||
3.1 | Articles of Organization and amendments thereto | 10-K | December 26, 2007 | 3.1 | |||||||
3.2 | By-laws, as amended December 13, 2012 | 10-K | December 20, 2012 | 3.1 | |||||||
10.1 | Form of Employee Invention and Non-Disclosure Agreement | 10-K | November 22, 1996 | 10.3 | |||||||
10.2 | CSPI Supplemental Retirement Income Plan | 10-K | December 29, 2008 | 10.2 | |||||||
10.9* | 2007 Stock Incentive Plan | DEF 14A | March 30, 2007 | B | |||||||
10.10* | 2014 Variable Compensation (Executive Bonus) and Base Programs dated November 12, 2013 | 10.1 | |||||||||
10.11* | Death Benefit and Retirement Benefit Agreement between the Company and Victor Dellovo dated September 13, 2013 | 10-K | December 24, 2013 | 10.11 | |||||||
10.12* | Form of Change of Control Agreement with Gary W. Levine and William E. Bent Jr. each dated January 11, 2008 | 10-K | December 22, 2009 | 10.11 | |||||||
10.15* | 2014 Employee Stock Purchase Plan | DEF 14A | January 6, 2014 | A | |||||||
10.16* | 2015 Stock Incentive Plan | DEF 14A | January 5, 2015 | A | |||||||
10.20 | 2015 Lowell, MA Lease | X | |||||||||
10.21 | 2015 Deerfield Beach, FL Lease | X | |||||||||
21.1 | Subsidiaries | X | |||||||||
23.1 | Consent of RSM LLP, Independent Registered Public Accounting Firm | X | |||||||||
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | |||||||||
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | |||||||||
32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | |||||||||
101.INS | XBRL Instance | ||||||||||
101.SCH | XBRL Taxonomy Schema | ||||||||||
101.CAL | XBRL Taxonomy Extension Calculation | ||||||||||
101.DEF | XBRL Taxonomy Extension Definition | ||||||||||
101.LAB | XBRL Taxonomy Extension Labels | ||||||||||
101.PRE | XBRL Taxonomy Extension Presentation |
* | Management contract or compensatory plan. |
CSP INC. | |||
By: | /s/ Victor Dellovo | ||
Victor Dellovo Chief Executive Officer and President |
Name | Title | Date | ||
/s/ Victor Dellovo | Chief Executive Officer, President and Director | January 13, 2017 | ||
Victor Dellovo | ||||
/s/ Gary W. Levine | Chief Financial Officer (Principal Financial Officer) | January 13, 2017 | ||
Gary W. Levine | ||||
/s/ John M. Leydon | Vice President of Finance (Chief Accounting Officer) | January 13, 2017 | ||
John M. Leydon | ||||
/s/ C. Shelton James | Director | January 13, 2017 | ||
C. Shelton James | ||||
/s/ Raymond Charles Blackmon | Director | January 13, 2017 | ||
Raymond Charles Blackmon | ||||
/s/ Myrilyn T. Smith | Director | January 13, 2017 | ||
Marilyn T. Smith | ||||
/s/ Izzy Azeri | Director | January 13, 2017 | ||
Izzy Azeri |
September 30, 2016 | September 30, 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 13,103 | $ | 11,181 | |||
Accounts receivable, net of allowances of $240 and $331 | 18,997 | 18,468 | |||||
Unbilled accounts receivable | 567 | 1,420 | |||||
Inventories | 6,148 | 5,749 | |||||
Refundable income taxes | — | 43 | |||||
Deferred income taxes | 1,331 | 1,337 | |||||
Other current assets | 1,671 | 1,884 | |||||
Total current assets | 41,817 | 40,082 | |||||
Property, equipment and improvements, net | 1,680 | 1,564 | |||||
Other assets: | |||||||
Intangibles, net | 287 | 416 | |||||
Deferred income taxes | 1,723 | 1,687 | |||||
Cash surrender value of life insurance | 3,015 | 3,064 | |||||
Other assets | 185 | 183 | |||||
Total other assets | 5,210 | 5,350 | |||||
Total assets | $ | 48,707 | $ | 46,996 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 11,932 | $ | 13,776 | |||
Deferred revenue | 4,704 | 2,931 | |||||
Pension and retirement plans | 581 | 675 | |||||
Income taxes payable | 166 | — | |||||
Total current liabilities | 17,383 | 17,382 | |||||
Pension and retirement plans | 13,441 | 10,009 | |||||
Other long term liabilities | 228 | 15 | |||||
Total liabilities | 31,052 | 27,406 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity: | |||||||
Common stock, $.01 par value per share; authorized, 7,500 shares; issued and outstanding 3,821 and 3,688 shares, respectively | 39 | 37 | |||||
Additional paid-in capital | 12,924 | 12,249 | |||||
Retained earnings | 16,623 | 15,689 | |||||
Accumulated other comprehensive loss | (11,931 | ) | (8,385 | ) | |||
Total shareholders’ equity | 17,655 | 19,590 | |||||
Total liabilities and shareholders’ equity | $ | 48,707 | $ | 46,996 |
For the year ended | |||||||
September 30, 2016 | September 30, 2015 | ||||||
Sales: | |||||||
Product | $ | 77,835 | $ | 66,447 | |||
Services | 25,532 | 22,859 | |||||
Total sales | 103,367 | 89,306 | |||||
Cost of sales: | |||||||
Product | 63,539 | 55,478 | |||||
Services | 14,787 | 14,641 | |||||
Total cost of sales | 78,326 | 70,119 | |||||
Gross profit | 25,041 | 19,187 | |||||
Operating expenses: | |||||||
Engineering and development | 2,984 | 2,826 | |||||
Selling, general and administrative | 18,256 | 16,135 | |||||
Total operating expenses | 21,240 | 18,961 | |||||
Operating income | 3,801 | 226 | |||||
Other expense: | |||||||
Foreign exchange loss | (134 | ) | (172 | ) | |||
Other expense, net | (67 | ) | (38 | ) | |||
Total other expense, net | (201 | ) | (210 | ) | |||
Income before income taxes | 3,600 | 16 | |||||
Income tax expense | 996 | 226 | |||||
Net income (loss) | $ | 2,604 | $ | (210 | ) | ||
Net income (loss) attributable to common stockholders | $ | 2,495 | $ | (210 | ) | ||
Net income (loss) per share – basic | $ | 0.69 | $ | (0.06 | ) | ||
Weighted average shares outstanding – basic | 3,609 | 3,548 | |||||
Net income (loss) per share – diluted | $ | 0.67 | $ | (0.06 | ) | ||
Weighted average shares outstanding – diluted | 3,734 | 3,548 |
For the year ended | ||||||||
September 30, 2016 | September 30, 2015 | |||||||
Net income (loss) | $ | 2,604 | $ | (210 | ) | |||
Other comprehensive income (loss): | ||||||||
Unrealized actuarial loss on minimum pension liability | (3,564 | ) | (131 | ) | ||||
Foreign currency translation gain (loss) | 18 | (330 | ) | |||||
Other comprehensive loss | (3,546 | ) | (461 | ) | ||||
Total comprehensive loss | $ | (942 | ) | $ | (671 | ) |
Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive loss | Total Shareholders’ Equity | |||||||||||||||||
Balance as of September 30, 2014 | 3,619 | $ | 36 | $ | 11,658 | $ | 17,517 | $ | (7,924 | ) | $ | 21,287 | ||||||||||
Comprehensive loss: | ||||||||||||||||||||||
Net loss | — | — | — | (210 | ) | — | (210 | ) | ||||||||||||||
Other comprehensive loss | — | — | — | — | (461 | ) | (461 | ) | ||||||||||||||
Stock-based compensation | — | — | 375 | — | — | 375 | ||||||||||||||||
Tax benefit from exercise of stock options | — | — | — | — | — | — | ||||||||||||||||
Restricted stock issuance | 36 | 1 | — | — | — | 1 | ||||||||||||||||
Issuance of shares under employee stock purchase plan | 31 | 206 | — | — | 206 | |||||||||||||||||
Exercise of stock options | 2 | 10 | — | — | 10 | |||||||||||||||||
Cash dividends on common stock ($0.44 per share) | — | — | — | (1,618 | ) | — | (1,618 | ) | ||||||||||||||
Balance as of September 30, 2015 | 3,688 | 37 | 12,249 | 15,689 | (8,385 | ) | 19,590 | |||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||
Net income | — | — | — | 2,604 | — | 2,604 | ||||||||||||||||
Other comprehensive loss | — | — | — | — | (3,546 | ) | (3,546 | ) | ||||||||||||||
Stock-based compensation | — | — | 414 | — | — | 414 | ||||||||||||||||
Restricted stock issuance | 86 | 1 | — | — | — | 1 | ||||||||||||||||
Issuance of shares under employee stock purchase plan | 33 | 1 | 175 | — | — | 176 | ||||||||||||||||
Exercise of stock options | 14 | — | 86 | — | — | 86 | ||||||||||||||||
Cash dividends on common stock ($0.44 per share) | — | — | — | (1,670 | ) | — | (1,670 | ) | ||||||||||||||
Balance as of September 30, 2016 | 3,821 | $ | 39 | $ | 12,924 | $ | 16,623 | $ | (11,931 | ) | $ | 17,655 |
For the year ended | |||||||
September 30, 2016 | September 30, 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 2,604 | $ | (210 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation | 570 | 516 | |||||
Amortization of intangibles | 129 | 130 | |||||
Loss on disposal of property, equipment and improvements, net | 51 | 54 | |||||
Foreign exchange loss | 134 | 172 | |||||
Non-cash changes in accounts receivable | 27 | 96 | |||||
Stock-based compensation expense on stock options and restricted stock awards | 414 | 375 | |||||
Deferred income taxes | (18 | ) | 2 | ||||
(Increase) decrease in cash surrender value of life insurance | 210 | (86 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Increase in accounts receivable | (8 | ) | (8,226 | ) | |||
Increase in officer life insurance settlement receivable | (413 | ) | — | ||||
(Increase) decrease in inventories | (471 | ) | 638 | ||||
Decrease in refundable income taxes | 44 | 356 | |||||
Decrease in other assets | 604 | 328 | |||||
Increase (decrease) in accounts payable and accrued expenses | (1,648 | ) | 4,461 | ||||
Increase (decrease) in deferred revenue | 1,769 | (812 | ) | ||||
Increase (decrease) in pension and retirement plans liability | 606 | (83 | ) | ||||
Increase in income taxes payable | 167 | 4 | |||||
Increase (decrease) in other long term liabilities | 233 | (55 | ) | ||||
Net cash provided by (used in) operating activities | 5,004 | (2,340 | ) | ||||
Cash flows from investing activities: | |||||||
Life insurance premiums paid | (161 | ) | (193 | ) | |||
Purchases of property, equipment and improvements | (735 | ) | (724 | ) | |||
Net cash used in investing activities | (896 | ) | (917 | ) | |||
Cash flows from financing activities: | |||||||
Dividends paid | (1,670 | ) | (1,618 | ) | |||
Proceeds from issuance of shares under equity compensation plans | 263 | 216 | |||||
Net cash used in financing activities | (1,407 | ) | (1,402 | ) | |||
Effects of exchange rate on cash | (779 | ) | (608 | ) | |||
Net increase (decrease) in cash and cash equivalents | 1,922 | (5,267 | ) | ||||
Cash and cash equivalents, beginning of period | 11,181 | 16,448 | |||||
Cash and cash equivalents, end of period | $ | 13,103 | $ | 11,181 | |||
Supplementary cash flow information: | |||||||
Cash paid for income taxes | $ | 334 | $ | 15 | |||
Cash paid for interest | $ | 86 | $ | 85 |
For the year ended | |||||||
September 30, 2016 | September 30, 2015 | ||||||
(Amounts in thousands except per share data) | |||||||
Net income (loss) | $ | 2,604 | $ | (210 | ) | ||
Less: Net income attributable to nonvested common stock | 109 | — | |||||
Net income (loss) attributable to common stockholders | $ | 2,495 | $ | (210 | ) | ||
Weighted average total shares outstanding - basic | 3,766 | 3,548 | |||||
Less: weighted average non-vested shares outstanding | 157 | — | |||||
Weighted average number of common shares outstanding - basic | 3,609 | 3,548 | |||||
Potential common shares from non-vested stock awards and the assumed exercise of stock options | 125 | — | |||||
Weighted average common shares outstanding - diluted | 3,734 | 3,548 | |||||
Net income (loss) per share - basic | $ | 0.69 | $ | (0.06 | ) | ||
Net income (loss) per share - diluted | $ | 0.67 | $ | (0.06 | ) |
September 30, 2016 | September 30, 2015 | ||||||
(Amounts in thousands) | |||||||
Raw materials | $ | 1,658 | $ | 1,788 | |||
Work-in-process | 1,209 | 387 | |||||
Finished goods | 3,281 | 3,574 | |||||
Total | $ | 6,148 | $ | 5,749 |
Effect of Foreign Currency Translation | Minimum Pension Liability | Accumulated Other Comprehensive Loss | ||||||||||
(Amounts in thousands) | ||||||||||||
Balance as of September 30, 2014 | $ | (2,495 | ) | $ | (5,429 | ) | $ | (7,924 | ) | |||
Change in period | (330 | ) | (68 | ) | (398 | ) | ||||||
Tax effect of change in period | — | (63 | ) | (63 | ) | |||||||
Balance as of September 30, 2015 | $ | (2,825 | ) | $ | (5,560 | ) | $ | (8,385 | ) | |||
Change in period | 18 | (3,413 | ) | (3,395 | ) | |||||||
Tax effect of change in period | — | (151 | ) | (151 | ) | |||||||
Balance as of September 30, 2016 | $ | (2,807 | ) | $ | (9,124 | ) | $ | (11,931 | ) |
4. | Income Taxes |
For the Years Ended September 30, | |||||||
2016 | 2015 | ||||||
(Amounts in thousands) | |||||||
Income (loss) before income tax: | |||||||
U.S. | $ | 3,418 | $ | 576 | |||
Foreign | 182 | (560 | ) | ||||
$ | 3,600 | $ | 16 | ||||
Income tax expense (benefit): | |||||||
Current: | |||||||
Federal | $ | 303 | $ | (4 | ) | ||
State | 118 | 24 | |||||
Foreign | 159 | 152 | |||||
580 | 172 | ||||||
Deferred: | |||||||
Federal | 400 | (36 | ) | ||||
State | 46 | 67 | |||||
Foreign | (30 | ) | 23 | ||||
416 | 54 | ||||||
$ | 996 | $ | 226 |
For the Years Ended September 30, | |||||||||||||
2016 | 2015 | ||||||||||||
(Dollar amounts in thousands) | |||||||||||||
Computed “expected” tax expense | $ | 1,224 | 34.0 | % | $ | 5 | 34.0 | % | |||||
Increases (reductions) in taxes resulting from: | |||||||||||||
State income taxes, net of federal tax benefit | 124 | 3.5 | % | 79 | 492.8 | % | |||||||
Foreign operations | 67 | 1.9 | % | 359 | 2,243.8 | % | |||||||
Permanent differences | (20 | ) | (0.6 | )% | 14 | 89.3 | % | ||||||
Stock based compensation | — | — | % | 1 | 4.3 | % | |||||||
Uncertain tax liability adjustment | 8 | 0.2 | % | (54 | ) | (337.5 | )% | ||||||
Research & development credit | (344 | ) | (9.6 | )% | (91 | ) | (568.8 | )% | |||||
Other items | (63 | ) | (1.7 | )% | (87 | ) | (543.8 | )% | |||||
Income tax expense | $ | 996 | 27.7 | % | $ | 226 | 1,414.1 | % |
September 30, 2016 | September 30, 2015 | ||||||
(Amounts in thousands) | |||||||
Deferred tax assets: | |||||||
Pension | $ | 2,896 | $ | 2,023 | |||
Intangibles | 315 | 409 | |||||
Other reserves and accruals | 671 | 618 | |||||
Inventory reserves and other | 470 | 724 | |||||
State credits, net of federal benefit | 313 | 253 | |||||
Federal and state net operating loss carryforwards | 61 | 71 | |||||
Foreign net operating loss carryforwards | 1,704 | 2,093 | |||||
Foreign tax credits | 7 | 7 | |||||
Depreciation and amortization | (203 | ) | (126 | ) | |||
Gross deferred tax assets | 6,234 | 6,072 | |||||
Less: valuation allowance | (3,180 | ) | (3,048 | ) | |||
Realizable deferred tax asset | 3,054 | 3,024 | |||||
Gross deferred tax liabilities | — | — | |||||
Net deferred tax assets | $ | 3,054 | $ | 3,024 | |||
For the Year Ended September 30, 2016 | For the Year Ended September 30, 2015 | ||||||
(Amounts in thousands) | |||||||
Balance, beginning of year | $ | 195 | $ | 249 | |||
Increases in tax positions in the current year | — | — | |||||
Settlements | — | (72 | ) | ||||
Lapse in statute of limitations | — | — | |||||
Accrued penalties and interest | 7 | 18 | |||||
Balance, end of period | $ | 202 | $ | 195 | |||
September 30, 2016 | September 30, 2015 | ||||||
(Amounts in thousands) | |||||||
Leasehold improvements | $ | 263 | $ | 440 | |||
Equipment | 8,629 | 8,170 | |||||
Automobiles | 74 | 74 | |||||
8,966 | 8,684 | ||||||
Less accumulated depreciation and amortization | (7,286 | ) | (7,120 | ) | |||
Property, equipment and improvements, net | $ | 1,680 | $ | 1,564 |
September 30, 2016 | September 30, 2015 | ||||||||||||||||||||||||||
Weighted Average Remaining Amortization Period | Gross | Accumulated Amortization | Net | Weighted Average Remaining Amortization Period | Gross | Accumulated Amortization | Net | ||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||
Customer list | 3 years | $ | 910 | $ | 682 | $ | 228 | 4 years | $ | 910 | $ | 591 | $ | 319 | |||||||||||||
Non-compete agreements | 0 years | 93 | 93 | — | 0 years | 93 | 93 | — | |||||||||||||||||||
Developed technology | 0 years | 30 | $ | 29 | $ | 1 | 1 year | 30 | 19 | 11 | |||||||||||||||||
Trade name | 2 years | 140 | $ | 82 | $ | 58 | 3 years | 140 | 54 | 86 | |||||||||||||||||
Total | $ | 1,173 | $ | 886 | $ | 287 | $ | 1,173 | $ | 757 | $ | 416 |
Fiscal year ending September 30: | (Amounts in thousands) | ||
2017 | 120 | ||
2018 | 119 | ||
2019 | 11 | ||
2020 | 9 | ||
2021 | 9 | ||
Thereafter | 19 | ||
Total | $ | 287 | |
September 30, | |||||||
2016 | 2015 | ||||||
(Amounts in thousands) | |||||||
Accounts payable | $ | 7,511 | $ | 10,559 | |||
Commissions | 269 | 248 | |||||
Compensation and fringe benefits | 2,139 | 1,426 | |||||
Professional fees and shareholders' reporting costs | 594 | 499 | |||||
Taxes, other than income | 353 | 25 | |||||
Warranty | 131 | 125 | |||||
Other | 935 | 894 | |||||
$ | 11,932 | $ | 13,776 | ||||
2016 | 2015 | ||||||
Balance at the beginning of the period | $ | 125,423 | $ | 183,555 | |||
Accruals for warranties for products sold in the period | 52,066 | 1,497 | |||||
Fulfillment of warranty obligations | (46,648 | ) | (59,629 | ) | |||
Balance at the end of the period | $ | 130,841 | $ | 125,423 |
Year ended | |||||||
September 30, 2016 | September 30, 2015 | ||||||
(Amounts in thousands) | |||||||
Cost of sales | $ | 2 | $ | 2 | |||
Engineering and development | 6 | 22 | |||||
Selling, general and administrative | 406 | 351 | |||||
Total | $ | 414 | $ | 375 | |||
Number of Shares | Weighted average exercise price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value (in thousands) | ||||||||||
Outstanding at September 30, 2014 | 92,126 | $ | 7.66 | — | — | ||||||||
Granted | — | — | — | — | |||||||||
Expired | (35,125 | ) | $ | 9.72 | — | — | |||||||
Forfeited | — | — | — | — | |||||||||
Exercised | (1,875 | ) | 5.26 | — | — | ||||||||
Outstanding at September 30, 2015 | 55,126 | $ | 6.43 | — | — | ||||||||
Granted | — | — | — | — | |||||||||
Expired | (17,500 | ) | $ | 6.61 | — | — | |||||||
Forfeited | — | — | — | — | |||||||||
Exercised | (14,000 | ) | 6.20 | — | — | ||||||||
Outstanding at September 30, 2016 | 23,626 | $ | 5.76 | 1.53 Years | $ | 106 | |||||||
Exercisable at September 30, 2016 | 23,626 | $ | 5.76 | 1.53 Years | $ | 106 | |||||||
Vested and expected to vest at September 30, 2016 | 23,626 | $ | 5.76 | 1.53 Years | $ | 106 |
Number of nonvested shares | Weighted Average grant date Fair Value | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value (in thousands) | ||||||||||
Nonvested shares outstanding at September 30, 2014 | 149,375 | $ | 6.92 | 2.45 years | $ | 1,191 | |||||||
Activity in 2015: | |||||||||||||
Granted | 57,500 | $ | 5.05 | — | — | ||||||||
Vested | (58,296 | ) | $ | 6.82 | — | — | |||||||
Forfeited | (18,122 | ) | 7.38 | — | — | ||||||||
Nonvested shares outstanding at September 30, 2015 | 130,457 | $ | 6.08 | 2.12 Years | $ | 714 | |||||||
Activity in 2016: | |||||||||||||
Granted | 105,395 | $ | 6.47 | — | — | ||||||||
Vested | (48,444 | ) | $ | 6.33 | — | — | |||||||
Forfeited | (21,700 | ) | 7.38 | — | — | ||||||||
Nonvested shares outstanding at September 30, 2016 | 165,708 | $ | 6.38 | 2.20 Years | $ | 1,695 | |||||||
Vested at September 30, 2016 | 179,277 | $ | 5.57 | 0.36 Years | $ | 1,834 | |||||||
Vested and expected to vest at September 30, 2016 | 344,985 | $ | 5.96 | 1.24 Years | $ | 3,529 |
Domestic | International | ||||||||||
September 30, | September 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Discount rate: | 3.50 | % | 4.25 | % | 1.77 | % | 3.10 | % | |||
Expected return on plan assets: | 3.60 | % | 4.20 | % | |||||||
Rate of compensation increase: | 1.00 | % | 1.00 | % |
Domestic | International | ||||||||||
September 30, | September 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Discount rate: | 4.25 | % | 4.25 | % | 3.10 | % | 3.25 | % | |||
Expected return on plan assets: | 4.20 | % | 4.40 | % | |||||||
Rate of compensation increase: | 1.00 | % | 1.00 | % |
Years Ended September 30 | |||||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||||
Foreign | U.S. | Total | Foreign | U.S. | Total | ||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Pension: | |||||||||||||||||||||||
Service cost | $ | 35 | $ | — | $ | 35 | $ | 56 | $ | — | $ | 56 | |||||||||||
Interest cost | 571 | 43 | 614 | 634 | 52 | 686 | |||||||||||||||||
Expected return on plan assets | (357 | ) | — | (357 | ) | (423 | ) | — | (423 | ) | |||||||||||||
Amortization of: | |||||||||||||||||||||||
Prior service gains | — | — | — | — | — | — | |||||||||||||||||
Amortization of net (gain)/loss | 174 | (5 | ) | 169 | 193 | (3 | ) | 190 | |||||||||||||||
Net periodic benefit cost | $ | 423 | $ | 38 | $ | 461 | $ | 460 | $ | 49 | $ | 509 | |||||||||||
Post Retirement: | |||||||||||||||||||||||
Service cost | $ | — | $ | 27 | $ | 27 | $ | — | $ | 34 | $ | 34 | |||||||||||
Interest cost | — | 42 | 42 | — | 44 | 44 | |||||||||||||||||
Expected return on plan assets | — | — | — | — | — | — | |||||||||||||||||
Amortization of: | |||||||||||||||||||||||
Prior service costs/(gains) | — | — | — | — | — | — | |||||||||||||||||
Amortization of net (gain)/loss | — | (79 | ) | (79 | ) | — | (50 | ) | (50 | ) | |||||||||||||
Net periodic benefit cost | $ | — | $ | (10 | ) | $ | (10 | ) | $ | — | $ | 28 | $ | 28 | |||||||||
Pension: | |||||||||||||||||||||||
Increase (decrease) in minimum liability included in other comprehensive income (loss) | $ | 3,105 | $ | 25 | $ | 3,130 | $ | 163 | $ | (6 | ) | $ | 157 | ||||||||||
Post Retirement: | |||||||||||||||||||||||
Increase (decrease) in minimum liability included in other comprehensive income (loss) | — | 283 | 283 | — | (89 | ) | (89 | ) | |||||||||||||||
Total: | |||||||||||||||||||||||
Increase (decrease) in minimum liability included in comprehensive income (loss) | $ | 3,105 | $ | 308 | $ | 3,413 | $ | 163 | $ | (95 | ) | $ | 68 |
Years Ended September 30 | |||||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||||
Foreign | U.S. | Total | Foreign | U.S. | Total | ||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||
Pension: | |||||||||||||||||||||||
Change in projected benefit obligation (“PBO”) | |||||||||||||||||||||||
Balance beginning of year | $ | 17,979 | $ | 1,022 | $ | 19,001 | $ | 18,919 | $ | 1,228 | $ | 20,147 | |||||||||||
Service cost | 35 | — | 35 | 56 | — | 56 | |||||||||||||||||
Interest cost | 571 | 43 | 614 | 635 | 52 | 687 | |||||||||||||||||
Changes in actuarial assumptions | 3,948 | 20 | 3,968 | 304 | (8 | ) | 296 | ||||||||||||||||
Foreign exchange impact | (2,069 | ) | — | (2,069 | ) | (1,534 | ) | — | (1,534 | ) | |||||||||||||
Benefits paid | (900 | ) | (256 | ) | (1,156 | ) | (401 | ) | (250 | ) | (651 | ) | |||||||||||
Projected benefit obligation at end of year | $ | 19,564 | $ | 829 | $ | 20,393 | $ | 17,979 | $ | 1,022 | $ | 19,001 | |||||||||||
Changes in fair value of plan assets: | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 9,301 | $ | — | $ | 9,301 | $ | 10,094 | $ | — | $ | 10,094 | |||||||||||
Actual gain (loss) on plan assets | 111 | — | 111 | (117 | ) | — | (117 | ) | |||||||||||||||
Company contributions | 406 | 256 | 662 | 398 | 251 | 649 | |||||||||||||||||
Foreign exchange impact | (1,289 | ) | — | (1,289 | ) | (673 | ) | — | (673 | ) | |||||||||||||
Benefits paid | (900 | ) | (256 | ) | (1,156 | ) | (401 | ) | (251 | ) | (652 | ) | |||||||||||
Fair value of plan assets at end of year | $ | 7,629 | $ | — | $ | 7,629 | $ | 9,301 | — | $ | 9,301 | ||||||||||||
Funded status | $ | (11,935 | ) | $ | (829 | ) | $ | (12,764 | ) | $ | (8,678 | ) | $ | (1,022 | ) | $ | (9,700 | ) | |||||
Unamortized net loss | — | — | — | — | — | — | |||||||||||||||||
Net amount recognized | $ | (11,935 | ) | $ | (829 | ) | $ | (12,764 | ) | $ | (8,678 | ) | $ | (1,022 | ) | $ | (9,700 | ) | |||||
Post Retirement: | |||||||||||||||||||||||
Change in projected benefit obligation (“PBO”): | |||||||||||||||||||||||
Balance beginning of year | $ | — | $ | 985 | $ | 985 | $ | — | $ | 1,045 | $ | 1,045 | |||||||||||
Service cost | — | 27 | 27 | — | 34 | 34 | |||||||||||||||||
Interest cost | — | 42 | 42 | — | 44 | 44 | |||||||||||||||||
Changes in actuarial assumptions | — | 203 | 203 | — | (138 | ) | (138 | ) | |||||||||||||||
Foreign exchange impact | — | — | — | — | — | — | |||||||||||||||||
Benefits paid | — | — | — | — | — | — | |||||||||||||||||
Projected benefit obligation at end of year | $ | — | $ | 1,257 | $ | 1,257 | $ | — | $ | 985 | $ | 985 | |||||||||||
Changes in fair value of plan assets: | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | — | — | — | — | — | — | |||||||||||||||||
Actual gain/(loss) on plan assets | — | — | — | — | — | — | |||||||||||||||||
Company contributions | — | — | — | — | — | — | |||||||||||||||||
Foreign exchange impact | — | — | — | — | — | — | |||||||||||||||||
Benefits paid from plan assets | — | — | — | — | — | — | |||||||||||||||||
Fair value of plan assets at end of year | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Funded status | $ | — | $ | (1,257 | ) | $ | (1,257 | ) | $ | — | $ | (985 | ) | $ | (985 | ) | |||||||
Unamortized net loss | — | — | — | — | — | — | |||||||||||||||||
Net amount recognized | $ | — | $ | (1,257 | ) | $ | (1,257 | ) | $ | — | $ | (985 | ) | $ | (985 | ) |
Years Ended September 30 | |||||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||||
Foreign | U.S. | Total | Foreign | U.S. | Total | ||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||
Pension: | |||||||||||||||||||||||
Accrued benefit liability | $ | (11,936 | ) | $ | (829 | ) | $ | (12,765 | ) | $ | (8,678 | ) | $ | (1,022 | ) | $ | (9,700 | ) | |||||
Deferred tax | (216 | ) | 14 | (202 | ) | (490 | ) | 24 | (466 | ) | |||||||||||||
Accumulated other comprehensive income | 9,001 | 26 | 9,027 | 5,623 | 11 | 5,634 | |||||||||||||||||
Net amount recognized | $ | (3,151 | ) | $ | (789 | ) | $ | (3,940 | ) | $ | (3,545 | ) | $ | (987 | ) | $ | (4,532 | ) | |||||
Post Retirement: | |||||||||||||||||||||||
Accrued benefit liability | $ | — | $ | (1,257 | ) | $ | (1,257 | ) | $ | — | $ | (985 | ) | $ | (985 | ) | |||||||
Deferred tax | — | 52 | 52 | — | 165 | 165 | |||||||||||||||||
Accumulated other comprehensive income (loss) | — | 97 | 97 | — | (73 | ) | (73 | ) | |||||||||||||||
Net amount recognized | $ | — | $ | (1,108 | ) | $ | (1,108 | ) | $ | — | $ | (893 | ) | $ | (893 | ) | |||||||
Total pension and post retirement: | |||||||||||||||||||||||
Accrued benefit liability | $ | (11,936 | ) | $ | (2,086 | ) | $ | (14,022 | ) | $ | (8,678 | ) | $ | (2,007 | ) | $ | (10,685 | ) | |||||
Deferred tax | (216 | ) | 66 | (150 | ) | (490 | ) | 189 | (301 | ) | |||||||||||||
Accumulated other comprehensive income | 9,001 | 123 | 9,124 | 5,623 | (62 | ) | 5,561 | ||||||||||||||||
Net amount recognized | $ | (3,151 | ) | $ | (1,897 | ) | $ | (5,048 | ) | $ | (3,545 | ) | $ | (1,880 | ) | $ | (5,425 | ) | |||||
Accumulated Benefit Obligation: | |||||||||||||||||||||||
Pension | $ | (19,396 | ) | $ | (829 | ) | $ | (20,225 | ) | $ | (17,866 | ) | $ | (1,022 | ) | $ | (18,888 | ) | |||||
Post Retirement | — | (1,257 | ) | (1,257 | ) | — | (985 | ) | (985 | ) | |||||||||||||
Total accumulated benefit obligation | $ | (19,396 | ) | $ | (2,086 | ) | $ | (21,482 | ) | $ | (17,866 | ) | $ | (2,007 | ) | $ | (19,873 | ) |
September 30, | |||||||
2016 | 2015 | ||||||
(Amounts in thousands) | |||||||
Current accrued benefit liability | $ | 581 | $ | 675 | |||
Non-current accrued benefit liability | 13,441 | 10,009 | |||||
Total accrued benefit liability | $ | 14,022 | $ | 10,684 |
Fiscal year ending September 30: | (Amounts in thousands) | |||
2016 | $ | 622 | ||
2017 | 588 | |||
2018 | 628 | |||
2019 | 643 | |||
2020 | 671 | |||
Thereafter | 3,932 |
Fair Values as of | |||||||||||||||||||||||||||||||
September 30, 2016 | September 30, 2015 | ||||||||||||||||||||||||||||||
Fair Value Measurements Using Inputs Considered as | Fair Value Measurements Using Inputs Considered as | ||||||||||||||||||||||||||||||
Asset Category | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
(Thousands) | |||||||||||||||||||||||||||||||
Cash on deposit | $ | 86 | $ | 86 | $ | — | $ | — | $ | 324 | $ | 324 | $ | — | $ | — | |||||||||||||||
Pooled funds | 7,543 | — | 7,543 | — | 8,977 | — | 8,977 | — | |||||||||||||||||||||||
Total plan assets | $ | 7,629 | $ | 86 | $ | 7,543 | $ | — | $ | 9,301 | $ | 324 | $ | 8,977 | $ | — | |||||||||||||||
Fiscal year ending September 30: | (Amounts in thousands) | |||
2017 | $ | 596 | ||
2018 | 604 | |||
2019 | 618 | |||
2020 | 586 | |||
2021 | 280 | |||
Thereafter | 920 | |||
$ | 3,604 |
TS Segment | ||||||||||||||||||||||||
For the Years Ended September 30, | HPP Segment | Germany | United Kingdom | U.S. | Total | Consolidated Total | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||
Sales: | ||||||||||||||||||||||||
Product | $ | 11,190 | $ | 4,863 | $ | 7,066 | $ | 54,716 | $ | 66,645 | $ | 77,835 | ||||||||||||
Service | 5,152 | 15,130 | 925 | 4,325 | 20,380 | 25,532 | ||||||||||||||||||
Total sales | 16,342 | 19,993 | 7,991 | 59,041 | 87,025 | 103,367 | ||||||||||||||||||
Profit (loss) from operations | 1,464 | 676 | (363 | ) | 2,024 | 2,337 | 3,801 | |||||||||||||||||
Assets | 17,717 | 13,751 | 3,748 | 13,491 | 30,990 | 48,707 | ||||||||||||||||||
Capital expenditures | 227 | 322 | 97 | 89 | 508 | 735 | ||||||||||||||||||
Depreciation and amortization | 232 | 158 | 79 | 230 | 467 | 699 | ||||||||||||||||||
2015 | ||||||||||||||||||||||||
Sales: | ||||||||||||||||||||||||
Product | $ | 9,894 | $ | 7,808 | $ | 4,025 | $ | 44,720 | $ | 56,553 | $ | 66,447 | ||||||||||||
Service | 4,054 | 15,043 | 1,114 | 2,648 | 18,805 | 22,859 | ||||||||||||||||||
Total sales | 13,948 | 22,851 | 5,139 | 47,368 | 75,358 | 89,306 | ||||||||||||||||||
Profit (loss) from operations | 485 | 549 | (817 | ) | 9 | (259 | ) | 226 | ||||||||||||||||
Assets | 16,668 | 14,557 | 2,720 | 13,051 | 30,328 | 46,996 | ||||||||||||||||||
Capital expenditures | 156 | 216 | 3 | 349 | 568 | 724 | ||||||||||||||||||
Depreciation and amortization | 247 | 172 | 34 | 193 | 399 | 646 |
2016 | Americas | Europe | Asia | Total | % of Total | |||||||||||||
(Amounts in thousands) | ||||||||||||||||||
HPP | $ | 11,417 | $ | 1,584 | $ | 3,341 | $ | 16,342 | 16 | % | ||||||||
TS | 59,698 | 26,376 | 951 | 87,025 | 84 | % | ||||||||||||
Total | $ | 71,115 | $ | 27,960 | $ | 4,292 | $ | 103,367 | 100 | % | ||||||||
% of Total | 69 | % | 27 | % | 4 | % | 100 | % | ||||||||||
2015 | ||||||||||||||||||
HPP | $ | 10,774 | $ | 1,135 | $ | 2,039 | $ | 13,948 | 16 | % | ||||||||
TS | 47,659 | 26,713 | 986 | 75,358 | 84 | % | ||||||||||||
Total | $ | 58,433 | $ | 27,848 | $ | 3,025 | $ | 89,306 | 100 | % | ||||||||
% of Total | 66 | % | 31 | % | 3 | % | 100 | % |
September 30, 2016 | September 30, 2015 | ||||||
(Amounts in thousands) | |||||||
North America | $ | 1,348 | $ | 1,494 | |||
Europe | 619 | 486 | |||||
Totals | $ | 1,967 | $ | 1,980 |
September 30, 2016 | September 30, 2015 | ||||||
(Amounts in thousands) | |||||||
North America | $ | 1,990 | $ | 2,254 | |||
Europe | 1,064 | 770 | |||||
Totals | $ | 3,054 | $ | 3,024 |
For the year ended | |||||||||||||
September 30, 2016 | September 30, 2015 | ||||||||||||
Amount | % of Revenues | Amount | % of Revenues | ||||||||||
(Amounts in millions) | |||||||||||||
Customer A | $ | 19.6 | 19 | % | $ | 17.1 | 19 | % | |||||
Customer B | $ | 13.2 | 13 | % | $ | 14.3 | 16 | % |
NAME OF SUBSIDIARY | STATE OR OTHER JURISDICTION OF INCORPORATION/ ORGANIZATION |
CSP Inc. Securities Corp. 175 Cabot Street, Suite 210 Lowell, MA 01854 | Massachusetts |
CSP Inc. Foreign Sales Corp., Ltd. 175 Cabot Street, Suite 210 Lowell, MA 01854 | U.S. Virgin Islands |
Modcomp, Inc (1). 1182 East Newport Center Drive Deerfield Beach, FL 33442 | Florida |
(1) | Modcomp has two subsidiaries operating in Europe |
January 13, 2017 |
/s/ Victor Dellovo |
Victor Dellovo |
Chief Executive Officer and |
President |
January 13, 2017 |
/s/Gary W. Levine |
Gary W. Levine |
Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) 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. |
January 13, 2017 | By: | /s/ Victor Dellovo | |
Victor Dellovo | |||
Chief Executive Officer, President and Director | |||
January 13, 2017 | By: | /s/ Gary W. Levine | |
Gary W. Levine | |||
Chief Financial Officer |
Document And Entity Information - USD ($) |
12 Months Ended | ||
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Sep. 30, 2016 |
Dec. 26, 2016 |
Mar. 31, 2016 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CSP INC /MA/ | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Common Stock, Shares Outstanding | 3,820,737 | ||
Entity Public Float | $ 28,944,452 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000356037 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 240 | $ 331 |
Common stock par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 7,500 | 7,500 |
Common stock, shares issued | 3,821 | 3,688 |
Common stock, shares outstanding | 3,821 | 3,688 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Components of Accumulated Other Comprehensive Loss [Abstract] | ||
Net income | $ 2,604 | $ (210) |
Other comprehensive income (loss): | ||
Unrealized actuarial loss on minimum pension liability | (3,564) | (131) |
Foreign currency translation gain (loss) | 18 | (330) |
Other comprehensive loss | (3,546) | (461) |
Total comprehensive loss | $ (942) | $ (671) |
Consolidated Statement of Shareholders' Equity (Parentheticals) - $ / shares |
12 Months Ended | |||||||||
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Aug. 12, 2015 |
May 13, 2015 |
Feb. 11, 2015 |
Dec. 16, 2014 |
Aug. 06, 2014 |
May 14, 2014 |
Feb. 11, 2014 |
Dec. 17, 2013 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Stockholders' Equity [Abstract] | ||||||||||
Dividends per share | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.44 | $ 0.44 |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. Foreign Currency Translation The U.S. Dollar is the reporting currency for all periods presented. The financial information for entities outside the United States is measured using the local currency as the functional currency. Assets and liabilities of the Company's foreign operations are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue and expenses are translated at average rates in effect during the period. The resulting translation adjustment is reflected as accumulated other comprehensive income (loss), a separate component of shareholders' equity on the consolidated balance sheets. The translation adjustment for intercompany foreign currency loans that are of a long-term-investment nature is also reflected as accumulated other comprehensive income (loss). Currency transaction gains and losses are recorded as other income (expense) in the statements of operations. Cash Equivalents For purposes of the consolidated statements of cash flows, highly liquid investments with original maturities of three months or less at the time of acquisition are considered cash equivalents. Research and Development Expense For the years ended September 30, 2016 and 2015, our expenses for research and development were approximately $3.0 million and $2.8 million, respectively. Expenditures for research and development are expensed as they are incurred. Impairment of Long-Lived Assets The Company reviews its long-lived assets, including intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Management assesses the recoverability of the long-lived assets (other than goodwill) by comparing the estimated undiscounted cash flows associated with the related asset or group of assets against their respective carrying amounts. The amount of impairment, if any, is calculated based on the excess of the carrying amount over the fair value of those assets. Intangible assets that are not subject to amortization are also required to be tested annually, or more frequently if events or circumstances indicate that the asset may be impaired. We did not have intangible assets with indefinite lives at any time during the two years ended September 30, 2016. Intangible assets subject to amortization are amortized on a straight-line basis over their estimated useful lives, generally three to ten years, and are carried at net book value. The remaining useful lives of intangible assets are evaluated on an annual basis. Intangible assets subject to amortization are also tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. If the fair value of an intangible asset subject to amortization is determined to be less than its carrying value, then an impairment charge is recorded to write down that asset to its fair value. Inventories Inventories are stated at the lower of cost or market, with cost determined using the first-in, first-out method. The recoverability of inventories is based upon the types and levels of inventories held, forecasted demand, pricing, competition and changes in technology. We write down our inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. For the year ended September 30, 2016, the Company wrote down approximately $602 thousand of inventory. Property, Equipment and Improvements The components of property, equipment and improvements are stated at cost. The Company provides for depreciation by use of the straight-line method over the estimated useful lives of the related assets (three to seven years). Leasehold improvements are amortized by use of the straight-line method over the lesser of the estimated useful life of the asset or the lease term. Repairs and maintenance costs are expensed as incurred. Property, equipment and improvements are tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. If the fair value of property, equipment and improvements is determined to be less than their carrying value, then an impairment charge is recorded to write down that asset to its fair value. Trade Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are stated at amounts that have been billed to customers less an allowance for doubtful accounts. Allowances for doubtful accounts are recorded for the estimated losses resulting from the inability of our customers to make required payments. The estimates for the allowance for doubtful accounts are based on the length of time the receivables are past due, current business environment and our historical experience. If the financial condition of our customers were to deteriorate, resulting in impairment of their ability to make payments, additional allowances may be required. Accounts receivable are charged off against the reserve when management has determined they are uncollectible. Pension and Retirement Plans The funded status of pension and other postretirement benefit plans is recognized on the consolidated balance sheet. Gains and losses, prior service costs and credits and any remaining transition amounts that have not yet been recognized through pension expense will be recognized in accumulated other comprehensive income, net of tax, until they are amortized as a component of net periodic pension/postretirement benefits expense. Additionally, plan assets and obligations are measured as of our fiscal year-end balance sheet date (September 30). We have defined benefit and defined contribution plans in the United Kingdom (the “U.K.”), Germany and in the U.S. In the U.K. and Germany, the Company provides defined benefit pension plans for certain employees and former employees and defined contribution plans for the majority of the employees. The defined benefit plans in both the U.K. and Germany are closed to newly hired employees and have been for the two years ended September 30, 2016. In the U.S., the Company also provides defined contribution plans that cover most employees and supplementary retirement plans to certain employees and former employees who are now retired. These supplementary retirement plans are also closed to newly hired employees and have been for the two years ended September 30, 2016. These supplementary plans are funded through whole life insurance policies. The Company expects to recover all insurance premiums paid under these policies in the future, through the cash surrender value of the policies and any death benefits or portions thereof to be paid upon the death of the participant. These whole life insurance policies are carried on the balance sheet at their cash surrender values as they are owned by the Company and not assets of the defined benefit plans. In the U.S., the Company also provides for officer death benefits and post-retirement health insurance benefits through supplemental post-retirement plans to certain officers. The Company also funds these supplemental plans' obligations through whole life insurance policies on the officers. Pension expense is based on an actuarial computation of current future benefits using estimates for expected return on assets, expected compensation increases and applicable discount rates. Management has reviewed the discount rates and rates of return with our consulting actuaries and investment advisor and concluded they were reasonable. A decrease in the expected return on pension assets would increase pension expense. Expected compensation increases are estimated based on historical and expected increases in the future. Increases in estimated compensation increases would result in higher pension expense while decreases would lower pension expense. Discount rates are selected based upon rates of return on high quality fixed income investments currently available and expected to be available during the period to maturity of the pension benefit. A decrease in the discount rate would result in greater pension expense while an increase in the discount rate would decrease pension expense. The Company funds its pension plans in amounts sufficient to meet the requirements set forth in applicable employee benefits laws and local tax laws. Liabilities for amounts in excess of these funding levels are accrued and reported in the consolidated balance sheets. Revenue Recognition We derive revenue from the sale of integrated hardware and software, professional services, maintenance contracts, other services, and third party service contracts. Professional services generally include implementation, installation, and training services. Other services generally include revenue generated through our royalty and extended warranty contracts. We recognize revenue when persuasive evidence of an arrangement exists, delivery of the product or service has occurred, the fee is fixed or determinable and collectability is reasonably assured. We enter into multiple element arrangements as well as standalone sales of product, professional services, and other services. We recognize revenue from standalone product sales upon transfer of title, which is typically upon shipment, provided all other revenue recognition criteria have been met. Revenue generated from standalone professional services and extended warranty contracts is recognized as services are completed, provided all other revenue recognition criteria have been met. In some instances professional service contracts include a customer acceptance provision, in which case revenue is deferred until we have evidence of customer acceptance. We recognize revenue from usage based royalty contracts upon confirmation from the customer of shipment of the system produced pursuant to the royalty agreement. We recognize revenue from multiple element arrangements in accordance with ASC 605-25, Multiple Element Arrangements. We evaluate multiple element arrangements to determine if separate units of accounting exist, and if so, we allocate revenue to each element based upon the relative selling price of each element. ASC 605-25 establishes a hierarchy for determining the amount to allocate to each separate deliverable in an arrangement. We determine selling price using vendor specific objective evidence (“VSOE”), if it exists; or, if VSOE does not exist, third party evidence (“TPE”) of fair value if applicable; otherwise, we use the best estimate of selling price (“BESP”). The objective of BESP is to determine the price at which the Company would transact if the element was sold on a standalone basis. Management’s determination of BESP involves several factors including budgeted profit margins, and cost to complete services. We recognize revenue from third party service contracts as either gross sales or net sales in accordance ASC 605-45, Principal Agent Considerations, which requires us to determine if the Company is acting as a principal party to the transaction or simply acting as an agent or broker. Under ASC 605-45, the assumption of the risks and rewards under the arrangement are considered indicators of principal parties to the arrangement. We record revenue as gross when it is a principal party to the arrangement and net of cost when we are acting as a broker or agent. Under gross sales recognition, the entire selling price is recorded in revenue and our cost to the third-party service provider or vendor is recorded in cost of goods sold. Under net sales recognition, the cost to the third-party service provider or vendor is recorded as a reduction to revenue resulting in net sales equal to the gross profit on the transaction. The following policies are applicable to our major categories of segment revenue transactions: HPP Segment Revenue HPP segment revenue is derived from the sale of integrated hardware and software, maintenance, and other services through the Multicomputer and Myricom product lines. Multicomputer product revenue is generally recognized when product is shipped, provided that all revenue recognition criteria are met. Service revenue consists principally of other services which comprise of warranty and royalty revenue. Revenue generated from extended warranty contracts is recognized as services are completed, provided all other revenue recognition criteria have been met We recognize revenue from usage based royalty contracts upon confirmation from the customer of shipment of the system produced pursuant to the royalty agreement. Myricom revenue is derived from the sale of products, which are comprised of both hardware and embedded software which is essential to the products functionality, and post contract maintenance and support. Revenue on multiple element arrangements is recognized in accordance with ASC 605-25. We evaluate multiple element arrangements to determine if separate units of accounting exist, and if so, we allocate revenue to each element based upon the relative selling price of each element. We determine selling price using BESP. Management’s determination of BESP is based on several factors, including, but not limited to, internal costs and gross margin objectives. Accordingly revenue for post contract maintenance and support is recognized over the implied maintenance period of three years, and revenue for product sales is recognized upon delivery assuming all other revenue recognition criteria have been met. TS Segment Revenue TS Segment revenue is derived from the sale of hardware, software, professional services, and third party service contracts. TS product revenue is generally recognized when product is shipped, provided that all revenue recognition criteria are met. Service revenue consists of professional services which generally include implementation, installation, and training services. Revenue generated from standalone professional services is recognized as services are completed, provided all other revenue recognition criteria has been met. Our standard sales agreements generally do not include customer acceptance provisions. However, in certain instances when arrangements include a customer acceptance provision or there is uncertainty about customer acceptance, revenue is deferred until we have evidence of customer acceptance. Revenue derived from the sale of products, which are comprised of both hardware and software, and professional services is recognized in accordance with ASC 605-25. We evaluate multiple element arrangements to determine if separate units of accounting exist, and if so, we allocate revenue to each element based upon the relative selling price of each element. We determine selling price using BESP. Management’s determination of BESP is based on several factors, including, but not limited to, internal costs and gross margin objectives. Accordingly revenue for professional services is recognized as services are completed, and revenue for product sales is recognized upon delivery assuming all other revenue recognition criteria have been met. We recognize revenue from certain third party service contracts, which are evaluated to determine whether such service revenue should be recorded as gross sales or net sales in accordance ASC 605-45. We evaluate all third party service contracts to determine whether we act as a principal in the transaction and assume the risks and rewards of ownership or if we are simply acting as an agent or broker. Under gross sales recognition, the entire selling price is recorded in sales and our cost to the third-party service provider or vendor is recorded in cost of goods sold. Under net sales recognition, the cost to the third-party service provider or vendor is recorded as a reduction to sales resulting in net sales equal to the gross profit on the transaction and there are no costs of goods sold. We use the net sales recognition method for the third party service contracts that we sell when we are not the primary obligor on the contract. We use the gross sales recognition for the third party service contracts that we sell when we act as principal and are the primary obligor. Product Warranty Accrual Our product sales generally include a hardware warranty which ranges from 90-day to three-years. At time of product shipment, we accrue for the estimated cost to repair or replace potentially defective products. Estimated warranty costs are based upon prior actual warranty costs for substantially similar products. Engineering and Development Expenses Engineering and development expenses include payroll, employee benefits, stock-based compensation and other headcount-related expenses associated with product development. Engineering and development expenses also include third-party development and programming costs. We consider technological feasibility for our software products to be reached upon the release of the software, accordingly, no internal software development costs have been capitalized. Income Taxes We use the asset and liability method of accounting for income taxes whereby deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We also reduce deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. This methodology requires estimates and judgments in the determination of the recoverability of deferred tax assets and in the calculation of certain tax liabilities. Valuation allowances are recorded against the gross deferred tax assets that management believes, after considering all available positive and negative objective evidence, historical and prospective, with greater weight given to historical evidence, that it is more likely than not that these assets will not be realized. In addition, we are required to recognize in the consolidated financial statements, those tax positions determined to be more-likely-than-not of being sustained upon examination, based on the technical merits of the positions as of the reporting date. If a tax position is not considered more-likely-than-not to be sustained based solely on its technical merits, no benefits of the position are recognized. In addition, the calculation of the Company's tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions. The Company records liabilities for estimated tax obligations in the U.S. and other tax jurisdictions. These estimated tax liabilities include the provision for taxes that may become payable in the future. Earnings per Share of Common Stock Basic net income per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share reflects the maximum dilution that would have resulted from the assumed exercise and share repurchase related to dilutive stock options and is computed by dividing net income by the assumed weighted average number of common shares outstanding. We are required to present earnings per share, or EPS, utilizing the two class method because we had outstanding, non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, which are considered participating securities. Basic and diluted earnings per share computations for the Company's reported net income attributable to common stockholders are as follows:
All anti-dilutive securities, including stock options, are excluded from the diluted income per share computation. For the year ended September 30, 2016, 25 thousand stock options were excluded from the diluted income per share calculation because their inclusion would have been anti-dilutive. For the fiscal year ended September 30, 2015, approximately 26 thousand stock options were excluded from the diluted income per share calculation because their inclusion would have been anti-dilutive. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates under different assumptions or conditions. Stock-Based Compensation We measure and recognize compensation expense for all stock-based payment awards made to employees and directors including stock options and nonvested shares of restricted common stock based on estimated fair values of stock-based payment awards on the date of grant. The Company uses the Black-Scholes option-pricing model to calculate the fair value of stock option grants. The fair value of nonvested restricted share awards is equal to the quoted market price of our common stock as quoted on the Nasdaq Global Market on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company's consolidated statements of operations. Because stock-based compensation expense recognized in the consolidated statements of o perations for the fiscal years ended September 30, 2016 and 2015 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures and will be revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation expense recognized for the fiscal years ended September 30, 2016 and 2015 consisted of stock-based compensation expense related to options and nonvested restricted stock granted pursuant to the Company's stock incentive and employee stock purchase plans of approximately $0.4 million and $0.4 million, respectively. Concentrations of Credit Risk Cash and cash equivalents are maintained with several financial institutions in the U.S., Germany and in the U.K. Deposits held with banks may exceed the amount of insurance on such deposits. Generally, these deposits may be redeemed upon demand. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. Subsequent Events The Company recognizes in the consolidated financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the statement of financial position, including the estimates inherent in the process of preparing financial statements. The Company has evaluated subsequent events through the date of this filing. New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update, or ASU, No. 2014 ‑09, Revenue from Contracts with Customers, which outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This ASU clarifies the principles for recognizing revenue by, among other things, removing inconsistencies in revenue requirements, improving comparability of revenue recognition practices across entities and industries and providing improved disclosure requirements. In August 2015, the FASB approved a one year deferral of the effective date for this ASU to interim and annual reporting periods beginning after December 15, 2017; however, early adoption at the original effective date is still permitted. The Company has not yet selected a transition method and is currently evaluating the impact that the adoption of this ASU will have on our consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), which excludes investments measured at net asset value, as a practical expedient for fair value, from the fair value hierarchy. This ASU is effective for interim and annual reporting periods beginning after December 15, 2015, and requires retrospective application, with early adoption permitted. The implementation of this ASU is not expected to have a material impact to the disclosures in our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-12, Plan Accounting: Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefits Plans (Topic 965), which requires fully benefit-responsive investment contracts to be measured at contract value. Those Topics also require an adjustment to reconcile contract value to fair value, when these measures differ, on the face of the plan financial statements. Fair value is measured using the requirements in Topic 820, Fair Value Measurement. This ASU is effective for fiscal years beginning after December 15, 2015, and requires retrospective application, with early adoption permitted. The implementation of this ASU is not expected to have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) Simplifying the Measurement of Inventory, which requires entities to measure inventory at the lower of cost and net realizable value, except for inventory measured using last-in, first-out (LIFO) or the retail inventory method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017 and requires prospective application, with early adoption permitted as of the beginning of an interim or annual reporting period. The Company has not yet assessed the potential impact of implementing this ASU on our financial statements. In November 2015, the FASB issued ASU No, 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes, which require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this Topic apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Topic. The amendments in this Topic are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The implementation of this guidance is not expected to have a material impact to the disclosures in our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This updated Topic 842 affects any entity that enters into a lease (as that term is defined in this Update), with some specified scope exemptions. The guidance in this Update supersedes Topic 840, Leases. The amendments in this Topic are effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Company has not yet assessed the potential impact of implementing this ASU on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08 (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) to clarify the implementation guidance on principal versus agent considerations. The amendments in this update provides additional guidance on indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customer and does not change the core principle of previously issued guidance. The amendments in this Topic are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Company does not expect the implementation of this ASU to have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 (Topic 718), Compensation - Stock Compensation, Improvements to Employee Share-Based Payment Accounting to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Additionally, the amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. This should not result in a change in practice because the guidance that is being superseded was never effective. The amendments in this Topic are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company does not expect the implementation of this ASU to have a material impact on our consolidated financial statements. |
Inventories |
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Inventories | Inventories Inventories consist of the following:
Finished goods includes inventory that has been shipped, but for which all revenue recognition criteria has not been met, of approximately $0.1 million and $0.1 million as of September 30, 2016 and September 30, 2015, respectively. |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows:
The changes in the minimum pension liability are net of amortization of net gain of $90 thousand in 2016 and net gain of $140 thousand in 2015 included in net periodic pension cost. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The components of income (loss) before income tax and income tax expense (benefit) are comprised of the following:
As of September 30, 2016, management assessed the positive and negative evidence in the U.S operations, and estimated we will have sufficient future taxable income to utilize the existing deferred tax assets. Significant objective positive evidence included the cumulative profits that we realized over the most recent years. This evidence enhances our ability to consider other subjective evidence such as our projections for future growth. Other factors we considered are the likelihood for continued royalty income in future years, and our expectation that the TS segment will continue to be profitable in future years. On the basis of this evaluation, as of September 30, 2016, we have concluded that our U.S. deferred tax asset is more likely than not to be realized. It should be noted however, that the amount of the deferred tax asset realized could be adjusted in future years, if estimates of taxable income during the carryforward periods are reduced, or if objective negative evidence in the form of cumulative losses is present. The recording and ultimate reversal of valuation allowances for our deferred tax asset requires significant judgment associated with past and projected performance. In assessing the realizability of deferred tax assets, we consider our taxable future earnings and the expected timing of the reversal of temporary differences. We recorded a valuation allowance which reduced the gross deferred tax asset to an amount that we believed was more likely than not to be realized because of the cumulative losses incurred in the U.K. in recent years represented sufficient negative evidence to record a valuation allowance against certain deferred tax assets. We continue to maintain a full valuation allowance against our U.K. deferred tax assets as we have experienced cumulative losses and do not have any indication that the operation will be profitable in the future to an extent that will allow us to utilize much of our net operating loss carryforwards. To the extent that actual experience deviates from our assumptions, our projections would be affected and hence our assessment of realizability of our deferred tax assets may change. Reconciliation of federal statutory rate and income tax expense (benefit) to the Company's effective tax rate and actual income tax expense (benefit) is as follows:
For the years ended September 30, 2016 and 2015, temporary differences, which give rise to deferred tax assets (liabilities), are as follows:
The deferred tax valuation allowance increased by approximately $132 thousand, as shown above. In assessing the realizability of deferred tax assets, the Company considers its taxable future earnings and the expected timing of the reversal of temporary differences. Accordingly, the Company has recorded a valuation allowance which reduces the gross deferred tax asset to an amount which management believes will more likely than not be realized. The valuation allowance was determined by assessing both positive and negative evidence whether it is more likely than not that deferred tax assets are realizable. Such assessment is done on a jurisdiction-by-jurisdiction basis. The Company's inability to project future profitability beyond fiscal year 2016 and the cumulative losses incurred in recent years in the U.K. represent sufficient negative evidence to record a valuation allowance against certain deferred tax assets. As of September 30, 2016 and 2015, the Company had U.S. net operating loss carryforwards for state tax purposes of approximately $0.4 million and $0.4 million, respectively, which are available to offset future taxable income through 2032. As of September 30, 2016, the Company had state research and development tax credit carry-forwards in the amount of $417 thousand that expire in years 2024 through 2029. The Company also had other state tax credit carry-forwards of $58 thousand available to reduce future state tax expense which has unlimited carryover status. As of September 30, 2016 the Company concluded that a net increase of $59 thousand of the valuation allowance was appropriate. As part of the Company’s analysis, the Company evaluated, among other factors, its recent history of generating taxable income in state jurisdictions and its near-term forecasts of future taxable income. The net increase in the Company’s valuation allowance of $59 thousand is to reserve for state tax credit carry-forwards that the Company believes will expire unused. As of September 30, 2016, the Company had U.K. net operating loss carryforwards of approximately $8.5 million that have an indefinite life with no expiration. Undistributed earnings of the Company's foreign subsidiaries amounted to approximately $1.1 million and $2.5 million at September 30, 2016 and 2015, respectively. The Company's policy is that its undistributed foreign earnings are indefinitely reinvested and, accordingly, no U.S. federal and state deferred tax liabilities have been recorded. In addition, the calculation of the Company's tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions. The Company records liabilities for estimated tax obligations in the U.S. and other tax jurisdictions. These estimated tax liabilities include the provision for taxes that may become payable in the future. As of September 30, 2016, the total amount of uncertain tax liabilities was $202 thousand. We recognized $7 thousand of interest and potential penalties accrued related to unrecognized tax benefits in our provision for income taxes. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
We file income tax returns in the U.S. federal jurisdictions and various state and foreign jurisdictions. The Company has reviewed the tax positions taken on returns filed domestically and in its foreign jurisdictions for all open years, generally fiscal 2013 through 2016, and believes that tax adjustments in any audited year will not be material, except for the uncertain tax position described above. |
Property, Equipment and Improvements, Net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Equipment and Improvements, Net | Property, Equipment and Improvements, Net Property, equipment and improvements, net consist of the following:
The Company uses the straight-line method over the estimated useful lives of the assets to record depreciation expense. Depreciation expense was $570 thousand and $516 thousand for the years ended September 30, 2016 and 2015, respectively. |
Acquired Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired Intangible Assets | Acquired Intangible Assets As of September 30, 2016 and 2015, intangible assets are as follows:
Amortization expense on these intangible assets was $129 thousand and $130 thousand for fiscal 2016 and 2015, respectively. Annual amortization expense related to intangible assets for each of the following successive fiscal years is as follows:
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Accounts Payable and Accrued Expenses |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following:
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Product Warranties (Notes) |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranty Disclosure [Text Block] | Product Warranties Product warranty activity for the years ended September 30 was as follows:
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Stock Options and Awards |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Options and Awards | Stock Based Incentive Compensation In 1997, the Company adopted the 1997 Stock Option Plan (the “1997 Plan”), and authorized 199,650 shares of common stock to be reserved for issuance pursuant to the 1997 Plan. The 1997 plan expired in 2007. Because the 1997 Plan has expired, no further awards will be issued under this plan. In 2003, the Company adopted the 2003 Stock Incentive Plan (the “2003 Plan”) and authorized 200,000 shares of common stock to be reserved for issuance pursuant to the 2003 Plan. The 2003 plan expired in 2013. Because the 2003 Plan has expired, no further awards will be issued under this plan. In 2007, the Company adopted the 2007 Stock Incentive Plan (the “2007 Plan”) and authorized 250,000 shares of common stock to be reserved for issuance pursuant to the 2007 Plan. As of September 30, 2016, there were 36,217 shares available to be granted under the 2007 Plan. In 2015, the Company adopted the 2015 Stock Incentive Plan (the “2015 Plan”) and authorized 300,000 shares of common stock to be reserved for issuance pursuant to the 2015 Plan. As of September 30, 2016, there were 233,248 shares available to be granted under the 2015 Plan. Under all of the stock incentive plans, both incentive stock options and non-qualified stock options may be granted to officers, key employees and other persons providing services to the Company. The 2003 Plan and 2007 Plan also provide for awards of nonvested shares of common stock. All of the Company's stock incentive plans have a ten year life. The total number of available shares under all plans for future awards was 269,465 as of September 30, 2016. Awards issued under any of the stock option plans are not affected by termination of the plan. The Company issues stock options at their fair market value on the date of grant. Vesting of stock options granted pursuant to the Company's stock incentive plans is determined by the Company's compensation committee. Generally, options granted to employees vest over four years and expire ten years from the date of grant. Options granted to non-employee directors have historically included cliff vesting after six months from the date of grant and expire three years from the date of grant. In fiscal years 2014 through 2016, the Company granted certain officers including its Chief Executive Officer and non-employee directors, and key employees shares of nonvested common stock instead of stock options. The vesting periods for the officers', the Chief Executive Officer's and the directors' nonvested stock awards are four years, three years and one year, respectively. The vesting period for the key employees' awards is four years. We measure and recognize compensation expense for all stock-based payment awards made to employees and directors including employee stock options and awards of nonvested stock based on estimated fair values, as described in Note 1. Stock-based compensation expense incurred and recognized for the years ended September 30, 2016 and 2015 related to stock options and nonvested stock granted to employees and non-employee directors under the Company's stock incentive and employee stock purchase plans totaled approximately $414 thousand and $375 thousand, respectively. The classification of the cost of share-based compensation, in the statements of operations, is consistent with the nature of the services being rendered in exchange for the share based payment. The following table summarizes stock-based compensation expense in the Company's consolidated statements of operations:
For the year ended September 30, 2016, the Company granted 28,000 nonvested shares to certain key employees, 57,000 nonvested shares to certain officers including 40,000 shares granted to the Chief Executive Officer, and 20,395 nonvested shares to its non-employee directors. For the year ended September 30, 2015, the Company granted 11,000 nonvested shares to certain key employees, 30,500 nonvested shares to certain officers including 12,000 to its Chief Executive Officer and 16,000 nonvested shares to its non-employee directors. The Company measures the fair value of nonvested stock awards based upon the market price of its common stock as of the date of grant. The Company used the Black-Scholes option-pricing model to value stock options. The Black-Scholes model requires the use of a number of assumptions including volatility of the Company's stock price, the weighted average risk-free interest rate and the weighted average expected life of the options, at the time of grant. The expected dividend yield is equal to the divided per share declared, divided by the closing share price on the date the options were granted. All equity compensation awards granted for the years ended September 30, 2016 and September 30, 2015 were nonvested stock awards. As stock-based compensation expense recognized in the consolidated statements of operations is based on awards ultimately expected to vest, expense for grants beginning upon adoption on October 1, 2005 has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The forfeiture rates for the years ended September 30, 2016 and 2015 were based on actual forfeitures. No cash was used to settle equity instruments granted under share-base payment arrangements in any of the years in the two-year period ended September 30, 2016. The following tables provide summary data of stock option award activity:
There were no stock options granted in the years ended September 30, 2016 and 2015. The aggregate intrinsic value of stock options exercised during the years ended September 30, 2016 and 2015 was $51 thousand and $3 thousand, respectively. The following table provides summary data of nonvested stock award activity:
As of September 30, 2016 there was $718 thousand of total unrecognized compensation cost related to nonvested share-based compensation arrangements (including stock option and nonvested stock awards) granted under the company's stock incentive plans. This cost is expected to be expensed over a weighted average period of approximately 2.51 years. The total fair value of shares vested during the years ended September 30, 2016 and 2015 was $307 thousand and $399 thousand, respectively. |
Employee Stock Purchase Plan |
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Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Stock Purchase Plans | Employee Stock Purchase Plan In December 2013, the Board of Directors of the Company adopted the 2014 Employee Stock Purchase Plan covering up to 250,000 shares of Common Stock (the "ESPP”), which was ratified by a vote of the Company's shareholders in February 2014. Under the ESPP, the Company’s employees may purchase shares of common stock at a price per share that is currently 95% of the lesser of the fair market value as of the beginning or end of semi-annual option periods. Pursuant to the ESPP the company issued 33,248 and 31,163 shares for the two years ended September 30, 2016 and September 30, 2015, respectively. Since inception of the plan, there are 172,082 shares available for future issuance under the ESPP as of September 30, 2016. |
Pension and Retirement Plans |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Retirement Plans | Pension and Retirement Plans We have defined benefit and defined contribution plans in the U.K., Germany and in the U.S. In the U.K. and Germany, the Company provides defined benefit pension plans for certain employees and former employees and defined contribution plans for the majority of the employees. The defined benefit plans in both the U.K. and Germany are closed to newly hired employees and have been for the two years ended September 30, 2016. In the U.S., the Company also provides defined contribution plans that cover most employees and supplementary retirement plans to certain employees and former employees who are now retired. These supplementary retirement plans are also closed to newly hired employees and have been for the two years ended September 30, 2016. These supplementary plans are funded through whole life insurance policies. The Company expects to recover all insurance premiums paid under these policies in the future, through the cash surrender value of the policies and any death benefits or portions thereof to be paid upon the death of the participant. These whole life insurance policies are carried on the balance sheet at their cash surrender values as they are owned by the Company and not assets of the defined benefit plans. In the U.S., the Company also provides for officer death benefits and post-retirement health insurance benefits through supplemental post-retirement plans to certain officers. The Company also funds these supplemental plans' obligations through whole life insurance policies on the officers. Defined Benefit Plans The Company funds its pension plans in amounts sufficient to meet the requirements set forth in applicable employee benefits laws and local tax laws. Liabilities for amounts in excess of these funding levels are accrued and reported in the consolidated balance sheet. The German Plan does not have any assets and therefore all costs and benefits of the plan are funded annually with cash flow from operations. The domestic supplemental retirement plans have life insurance policies which are not considered plan assets but were purchased by the Company as a vehicle to fund the costs of the plan. These insurance policies are included in the balance sheet at their cash surrender value, net of policy loans, aggregating $1.9 million and $2.0 million as of September 30, 2016 and 2015, respectively. The loans against the policies have been taken out by the Company to pay the premiums. The costs and benefit payments for these plans are paid through operating cash flows of the Company to the extent that they can not be funded through the use of the cash values in the insurance policies. The Company expects that the recorded value of the insurance policies will be sufficient to fund all of the Company's obligations under these plans. Assumptions: The following table provides the weighted average actuarial assumptions used to determine the actuarial present value of projected benefit obligations at:
The following table provides the weighted average actuarial assumptions used to determine net periodic benefit cost for years ended:
For domestic plans, the discount rate was determined by comparison against the Citigroup Pension Discount Curve and Liability Index for AA rated corporate instruments. The Company monitors other indices to assure that the pension obligations are fairly reported on a consistent basis. The international discount rates were determined by comparison against country specific AA corporate indices, adjusted for duration of the obligation. The periodic benefit cost and the actuarial present value of projected benefit obligations are based on actuarial assumptions that are reviewed on an annual basis. The Company revises these assumptions based on an annual evaluation of long-term trends, as well as market conditions that may have an impact on the cost of providing retirement benefits. The components of net periodic benefit costs related to the U.S. and international plans are as follows:
The following table presents an analysis of the changes in 2016 and 2015 of the benefit obligation, the plan assets and the funded status of the plans:
The amounts recognized in the consolidated balance sheet consist of:
Plans with projected benefit obligations in excess of plan assets are attributable to unfunded domestic supplemental retirement plans, our German plans which are legally not required to be funded and our U.K. retirement plan. Accrued benefit liability reported as:
As of September 30, 2016 and 2015 the amounts included in accumulated other comprehensive income, consisted of deferred net losses totaling approximately $9.1 million and $5.6 million, respectively. The amount of net deferred gain expected to be recognized as a component of net periodic benefit cost for the year ending September 30, 2016, is approximately $318 thousand. Contributions The Company expects to contribute $0.6 million to its pension plans for fiscal 2016. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (amounts in thousands):
Plan Assets At September 30, 2016, our pension plan in the U.K. was the only plan with assets, holding investments of approximately $7.6 million. Pension plan assets are managed by a fiduciary committee. The Company's investment strategy for pension plan assets is to maximize the long-term rate of return on plan assets within an acceptable level of risk while maintaining adequate funding levels. Local regulations, local funding rules, and local financial and tax considerations are part of the funding and investment process. In deciding on the investments to be held, the trustees take into account the risk of possible fluctuations in income from, and market values of, the assets as well as the risk of departing from an asset profile which broadly matches the liability profile. The committee has invested the plan assets in a single pooled fund with an authorized investment company (the “Fund”). The Fund selected by the trustees is consistent with the plan's overall investment principles and strategy described herein. There are no specific targets as to asset allocation other than those contained within the Fund that is managed by the authorized investment company. The fair value of the assets held by the U.K. pension plan by asset category are as follows:
The expected long-term rates of return on plan assets are equal to the yields to maturity of appropriate indices for government and corporate bonds and by adding a premium to the government bond return for equities. The expected rate of return on cash is the Bank of England base rate in force at the effective date. The Company uses the Net Asset Value ("NAV") to determine the fair value of the underlying investments which (a) do not have readily determinable fair value; and (b) prepare their financial statements consistent with the measurement principles of an investment company. The Fund is not exchange traded. The Fund is not subject to any redemption notice periods or restrictions and can be redeemed on a daily basis. No gates or holdbacks or dealing suspensions are being applied to the Fund. The Fund is of perpetual duration. Defined Contribution Plans The Company has defined contribution plans in domestic and international locations under which the Company matches a portion of the employee's contributions and may make discretionary contributions to the plans. The Company's contributions were $129 thousand and $174 thousand for the years ended September 30, 2016 and 2015, respectively. |
Lines of Credit |
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Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Lines of Credit | Lines of Credit As of September 30, 2016 and September 30, 2015, the Company maintained a line of credit note that allows for borrowings of up to $1.0 million. Availability under this facility is reduced by outstanding borrowings thereunder. The interest rates on outstanding borrowings is the London Inter-Bank Offer Rate (“LIBOR”) plus 2.5%, with a floor of 4%. Borrowings under the credit agreement are required to be repaid on demand by the lender in some cases, upon termination of the agreements or may be prepaid by the Company without penalty. The credit agreements is not subject to financial covenants and the Company did not borrow under the line of credit during the fiscal years ending September 30, 2016 and 2015. As of September 30, 2016 and September 30, 2015, the Company maintained an inventory line of credit that may be used by the TS division in the U.S. to purchase inventory from approved vendors with payment terms which exceed those offered by the vendors. No interest accrues under the inventory line of credit when advances are paid within terms, late payments are subject to an interest charge of Prime plus 5%. The credit agreements contain financial covenants which require the Company to maintain the following division specific financial ratios: (1) a minimum current ratio of 1.2, (2) tangible net worth of $2.5 million and (3) a maximum ratio of total liabilities to total net worth of less than 5.0:1. As of September 30, 2016 and September 30, 2015, Company borrowings under the inventory line of credit were $3.2 million and $2.9 million, respectively, which is included as a component of accounts payable and accrued expenses on the accompanying consolidated balance sheets. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Leases The Company occupies office space under lease agreements expiring at various dates during the next ten years. The leases are classified as operating leases and provide for the payment of real estate taxes, insurance, utilities and maintenance. The Company was obligated under non-cancelable operating leases as follows:
Occupancy expenses under the operating leases approximated $1.2 million in 2016 and $1.3 million in 2015. Common Stock Repurchase From time to time the Company's Board of Directors passes resolutions to authorize the Company to purchase shares of its outstanding common stock. The Company did not repurchase any shares during the years ended September 30, 2016 and 2015. As of September 30, 2016 the Company is authorized to repurchase an additional 201 thousand shares pursuant to such resolutions. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | Segment Information The following table presents certain operating segment information.
Profit (loss) from operations is sales less cost of sales, engineering and development, selling, general and administrative expenses but is not affected by either non-operating charges/income or by income taxes. Non-operating charges/income consists principally of investment income and interest expense. All intercompany transactions have been eliminated. The following table details the Company's sales by operating segment for fiscal years September 30, 2016 and 2015. The Company's sales by geographic area based on the location of where the products were shipped or services rendered are as follows:
Substantially all Americas amounts are United States. Long-lived assets by geographic location at September 30, 2016 and 2015 were as follows:
Deferred tax assets by geographic location at September 30, 2016 and 2015 were as follows:
The following table lists customers from which the Company derived revenues in excess of 10% of total revenues for the years ended September 30, 2016 and 2015.
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Fair Value Measures (Notes) |
12 Months Ended |
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Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measures The Company had no assets or liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2016 or September 30, 2015, except for pension plan assets values, which are discussed in Note 11. |
Dividend |
12 Months Ended |
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Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Dividend | Dividend On December 16, 2014, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on January 8, 2015 to stockholders of record as of December 28, 2014, the record date. On February 11, 2015, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on March 12, 2015 to stockholders of record as of February 26, 2015, the record date. On May 13, 2015, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on June 10, 2015 to stockholders of record as of May 29, 2015, the record date. On August 12, 2015, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on September 11, 2015 to stockholders of record as of August 26, 2015, the record date. On December 23, 2015, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on January 11, 2016 to shareholders of record as of December 31, 2015, the record date. On February 16, 2016, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on March 11, 2016 to shareholders of record as of February 26, 2016, the record date. On May 11, 2016, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on June 10, 2016 to shareholders of record as of May 27, 2016, the record date. On August 18, 2016, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on September 9, 2016 to shareholders of record as of August 31, 2016, the record date. On December 15, 2016, the Company's board of directors declared a cash dividend of $0.11 per share which will be paid on February 8, 2017 to shareholders of record as of January 27, 2017, the record date. |
Related Party Transactions |
12 Months Ended |
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Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During the normal course of business, the Company sold products to a company whose Board of Directors includes two members of CSP Inc.'s Board of Directors. The total sales were $283 thousand and $314 thousand, for the fiscal years ended 2016 and 2015, respectively. The trade receivables were $64 thousand and $13 thousand as of September 30, 2016 and 2015, respectively. |
Accounting Policies, by Policy (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. |
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Foreign Currency Translation | Foreign Currency Translation The U.S. Dollar is the reporting currency for all periods presented. The financial information for entities outside the United States is measured using the local currency as the functional currency. Assets and liabilities of the Company's foreign operations are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue and expenses are translated at average rates in effect during the period. The resulting translation adjustment is reflected as accumulated other comprehensive income (loss), a separate component of shareholders' equity on the consolidated balance sheets. The translation adjustment for intercompany foreign currency loans that are of a long-term-investment nature is also reflected as accumulated other comprehensive income (loss). Currency transaction gains and losses are recorded as other income (expense) in the statements of operations. |
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Cash Equivalents | Cash Equivalents For purposes of the consolidated statements of cash flows, highly liquid investments with original maturities of three months or less at the time of acquisition are considered cash equivalents. |
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Impairment Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets, including intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Management assesses the recoverability of the long-lived assets (other than goodwill) by comparing the estimated undiscounted cash flows associated with the related asset or group of assets against their respective carrying amounts. The amount of impairment, if any, is calculated based on the excess of the carrying amount over the fair value of those assets. |
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Intangible Assets | Intangible assets that are not subject to amortization are also required to be tested annually, or more frequently if events or circumstances indicate that the asset may be impaired. We did not have intangible assets with indefinite lives at any time during the two years ended September 30, 2016. Intangible assets subject to amortization are amortized on a straight-line basis over their estimated useful lives, generally three to ten years, and are carried at net book value. The remaining useful lives of intangible assets are evaluated on an annual basis. Intangible assets subject to amortization are also tested for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. If the fair value of an intangible asset subject to amortization is determined to be less than its carrying value, then an impairment charge is recorded to write down that asset to its fair value. |
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Inventories | Inventories Inventories are stated at the lower of cost or market, with cost determined using the first-in, first-out method. The recoverability of inventories is based upon the types and levels of inventories held, forecasted demand, pricing, competition and changes in technology. We write down our inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. |
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Property, Equipment and Improvements | Property, Equipment and Improvements The components of property, equipment and improvements are stated at cost. The Company provides for depreciation by use of the straight-line method over the estimated useful lives of the related assets (three to seven years). Leasehold improvements are amortized by use of the straight-line method over the lesser of the estimated useful life of the asset or the lease term. Repairs and maintenance costs are expensed as incurred. Property, equipment and improvements are tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. If the fair value of property, equipment and improvements is determined to be less than their carrying value, then an impairment charge is recorded to write down that asset to its fair value. |
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Trade Accounts Receivable and Allowance for Doubtful Accounts | Trade Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are stated at amounts that have been billed to customers less an allowance for doubtful accounts. Allowances for doubtful accounts are recorded for the estimated losses resulting from the inability of our customers to make required payments. The estimates for the allowance for doubtful accounts are based on the length of time the receivables are past due, current business environment and our historical experience. If the financial condition of our customers were to deteriorate, resulting in impairment of their ability to make payments, additional allowances may be required. Accounts receivable are charged off against the reserve when management has determined they are uncollectible. |
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Pension and Retirement Plans | Pension and Retirement Plans The funded status of pension and other postretirement benefit plans is recognized on the consolidated balance sheet. Gains and losses, prior service costs and credits and any remaining transition amounts that have not yet been recognized through pension expense will be recognized in accumulated other comprehensive income, net of tax, until they are amortized as a component of net periodic pension/postretirement benefits expense. Additionally, plan assets and obligations are measured as of our fiscal year-end balance sheet date (September 30). We have defined benefit and defined contribution plans in the United Kingdom (the “U.K.”), Germany and in the U.S. In the U.K. and Germany, the Company provides defined benefit pension plans for certain employees and former employees and defined contribution plans for the majority of the employees. The defined benefit plans in both the U.K. and Germany are closed to newly hired employees and have been for the two years ended September 30, 2016. In the U.S., the Company also provides defined contribution plans that cover most employees and supplementary retirement plans to certain employees and former employees who are now retired. These supplementary retirement plans are also closed to newly hired employees and have been for the two years ended September 30, 2016. These supplementary plans are funded through whole life insurance policies. The Company expects to recover all insurance premiums paid under these policies in the future, through the cash surrender value of the policies and any death benefits or portions thereof to be paid upon the death of the participant. These whole life insurance policies are carried on the balance sheet at their cash surrender values as they are owned by the Company and not assets of the defined benefit plans. In the U.S., the Company also provides for officer death benefits and post-retirement health insurance benefits through supplemental post-retirement plans to certain officers. The Company also funds these supplemental plans' obligations through whole life insurance policies on the officers. Pension expense is based on an actuarial computation of current future benefits using estimates for expected return on assets, expected compensation increases and applicable discount rates. Management has reviewed the discount rates and rates of return with our consulting actuaries and investment advisor and concluded they were reasonable. A decrease in the expected return on pension assets would increase pension expense. Expected compensation increases are estimated based on historical and expected increases in the future. Increases in estimated compensation increases would result in higher pension expense while decreases would lower pension expense. Discount rates are selected based upon rates of return on high quality fixed income investments currently available and expected to be available during the period to maturity of the pension benefit. A decrease in the discount rate would result in greater pension expense while an increase in the discount rate would decrease pension expense. The Company funds its pension plans in amounts sufficient to meet the requirements set forth in applicable employee benefits laws and local tax laws. Liabilities for amounts in excess of these funding levels are accrued and reported in the consolidated balance sheets. |
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Revenue Recognition | Revenue Recognition We derive revenue from the sale of integrated hardware and software, professional services, maintenance contracts, other services, and third party service contracts. Professional services generally include implementation, installation, and training services. Other services generally include revenue generated through our royalty and extended warranty contracts. We recognize revenue when persuasive evidence of an arrangement exists, delivery of the product or service has occurred, the fee is fixed or determinable and collectability is reasonably assured. We enter into multiple element arrangements as well as standalone sales of product, professional services, and other services. We recognize revenue from standalone product sales upon transfer of title, which is typically upon shipment, provided all other revenue recognition criteria have been met. Revenue generated from standalone professional services and extended warranty contracts is recognized as services are completed, provided all other revenue recognition criteria have been met. In some instances professional service contracts include a customer acceptance provision, in which case revenue is deferred until we have evidence of customer acceptance. We recognize revenue from usage based royalty contracts upon confirmation from the customer of shipment of the system produced pursuant to the royalty agreement. We recognize revenue from multiple element arrangements in accordance with ASC 605-25, Multiple Element Arrangements. We evaluate multiple element arrangements to determine if separate units of accounting exist, and if so, we allocate revenue to each element based upon the relative selling price of each element. ASC 605-25 establishes a hierarchy for determining the amount to allocate to each separate deliverable in an arrangement. We determine selling price using vendor specific objective evidence (“VSOE”), if it exists; or, if VSOE does not exist, third party evidence (“TPE”) of fair value if applicable; otherwise, we use the best estimate of selling price (“BESP”). The objective of BESP is to determine the price at which the Company would transact if the element was sold on a standalone basis. Management’s determination of BESP involves several factors including budgeted profit margins, and cost to complete services. We recognize revenue from third party service contracts as either gross sales or net sales in accordance ASC 605-45, Principal Agent Considerations, which requires us to determine if the Company is acting as a principal party to the transaction or simply acting as an agent or broker. Under ASC 605-45, the assumption of the risks and rewards under the arrangement are considered indicators of principal parties to the arrangement. We record revenue as gross when it is a principal party to the arrangement and net of cost when we are acting as a broker or agent. Under gross sales recognition, the entire selling price is recorded in revenue and our cost to the third-party service provider or vendor is recorded in cost of goods sold. Under net sales recognition, the cost to the third-party service provider or vendor is recorded as a reduction to revenue resulting in net sales equal to the gross profit on the transaction. The following policies are applicable to our major categories of segment revenue transactions: HPP Segment Revenue HPP segment revenue is derived from the sale of integrated hardware and software, maintenance, and other services through the Multicomputer and Myricom product lines. Multicomputer product revenue is generally recognized when product is shipped, provided that all revenue recognition criteria are met. Service revenue consists principally of other services which comprise of warranty and royalty revenue. Revenue generated from extended warranty contracts is recognized as services are completed, provided all other revenue recognition criteria have been met We recognize revenue from usage based royalty contracts upon confirmation from the customer of shipment of the system produced pursuant to the royalty agreement. Myricom revenue is derived from the sale of products, which are comprised of both hardware and embedded software which is essential to the products functionality, and post contract maintenance and support. Revenue on multiple element arrangements is recognized in accordance with ASC 605-25. We evaluate multiple element arrangements to determine if separate units of accounting exist, and if so, we allocate revenue to each element based upon the relative selling price of each element. We determine selling price using BESP. Management’s determination of BESP is based on several factors, including, but not limited to, internal costs and gross margin objectives. Accordingly revenue for post contract maintenance and support is recognized over the implied maintenance period of three years, and revenue for product sales is recognized upon delivery assuming all other revenue recognition criteria have been met. TS Segment Revenue TS Segment revenue is derived from the sale of hardware, software, professional services, and third party service contracts. TS product revenue is generally recognized when product is shipped, provided that all revenue recognition criteria are met. Service revenue consists of professional services which generally include implementation, installation, and training services. Revenue generated from standalone professional services is recognized as services are completed, provided all other revenue recognition criteria has been met. Our standard sales agreements generally do not include customer acceptance provisions. However, in certain instances when arrangements include a customer acceptance provision or there is uncertainty about customer acceptance, revenue is deferred until we have evidence of customer acceptance. Revenue derived from the sale of products, which are comprised of both hardware and software, and professional services is recognized in accordance with ASC 605-25. We evaluate multiple element arrangements to determine if separate units of accounting exist, and if so, we allocate revenue to each element based upon the relative selling price of each element. We determine selling price using BESP. Management’s determination of BESP is based on several factors, including, but not limited to, internal costs and gross margin objectives. Accordingly revenue for professional services is recognized as services are completed, and revenue for product sales is recognized upon delivery assuming all other revenue recognition criteria have been met. We recognize revenue from certain third party service contracts, which are evaluated to determine whether such service revenue should be recorded as gross sales or net sales in accordance ASC 605-45. We evaluate all third party service contracts to determine whether we act as a principal in the transaction and assume the risks and rewards of ownership or if we are simply acting as an agent or broker. Under gross sales recognition, the entire selling price is recorded in sales and our cost to the third-party service provider or vendor is recorded in cost of goods sold. Under net sales recognition, the cost to the third-party service provider or vendor is recorded as a reduction to sales resulting in net sales equal to the gross profit on the transaction and there are no costs of goods sold. We use the net sales recognition method for the third party service contracts that we sell when we are not the primary obligor on the contract. We use the gross sales recognition for the third party service contracts that we sell when we act as principal and are the primary obligor |
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Product Warranty Accrual | Product Warranty Accrual Our product sales generally include a hardware warranty which ranges from 90-day to three-years. At time of product shipment, we accrue for the estimated cost to repair or replace potentially defective products. Estimated warranty costs are based upon prior actual warranty costs for substantially similar products. |
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Research, Engineering and Development Expenses | Research and Development Expense For the years ended September 30, 2016 and 2015, our expenses for research and development were approximately $3.0 million and $2.8 million, respectively. Expenditures for research and development are expensed as they are incurred. Engineering and Development Expenses Engineering and development expenses include payroll, employee benefits, stock-based compensation and other headcount-related expenses associated with product development. Engineering and development expenses also include third-party development and programming costs. We consider technological feasibility for our software products to be reached upon the release of the software, accordingly, no internal software development costs have been capitalized. |
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Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes whereby deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We also reduce deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. This methodology requires estimates and judgments in the determination of the recoverability of deferred tax assets and in the calculation of certain tax liabilities. Valuation allowances are recorded against the gross deferred tax assets that management believes, after considering all available positive and negative objective evidence, historical and prospective, with greater weight given to historical evidence, that it is more likely than not that these assets will not be realized. In addition, we are required to recognize in the consolidated financial statements, those tax positions determined to be more-likely-than-not of being sustained upon examination, based on the technical merits of the positions as of the reporting date. If a tax position is not considered more-likely-than-not to be sustained based solely on its technical merits, no benefits of the position are recognized. In addition, the calculation of the Company's tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions. The Company records liabilities for estimated tax obligations in the U.S. and other tax jurisdictions. These estimated tax liabilities include the provision for taxes that may become payable in the future. |
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Earnings per Share of Common Stock | Earnings per Share of Common Stock Basic net income per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share reflects the maximum dilution that would have resulted from the assumed exercise and share repurchase related to dilutive stock options and is computed by dividing net income by the assumed weighted average number of common shares outstanding. We are required to present earnings per share, or EPS, utilizing the two class method because we had outstanding, non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, which are considered participating securities. Basic and diluted earnings per share computations for the Company's reported net income attributable to common stockholders are as follows:
All anti-dilutive securities, including stock options, are excluded from the diluted income per share computation. For the year ended September 30, 2016, 25 thousand stock options were excluded from the diluted income per share calculation because their inclusion would have been anti-dilutive. For the fiscal year ended September 30, 2015, approximately 26 thousand stock options were excluded from the diluted income per share calculation because their inclusion would have been anti-dilutive. |
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Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates under different assumptions or conditions. |
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Stock-based Compensation | Stock-Based Compensation We measure and recognize compensation expense for all stock-based payment awards made to employees and directors including stock options and nonvested shares of restricted common stock based on estimated fair values of stock-based payment awards on the date of grant. The Company uses the Black-Scholes option-pricing model to calculate the fair value of stock option grants. The fair value of nonvested restricted share awards is equal to the quoted market price of our common stock as quoted on the Nasdaq Global Market on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company's consolidated statements of operations. Because stock-based compensation expense recognized in the consolidated statements of o perations for the fiscal years ended September 30, 2016 and 2015 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures and will be revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation expense recognized for the fiscal years ended September 30, 2016 and 2015 consisted of stock-based compensation expense related to options and nonvested restricted stock granted pursuant to the Company's stock incentive and employee stock purchase plans of approximately $0.4 million and $0.4 million, respectively. |
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Concentrations of Credit Risk | Concentrations of Credit Risk Cash and cash equivalents are maintained with several financial institutions in the U.S., Germany and in the U.K. Deposits held with banks may exceed the amount of insurance on such deposits. Generally, these deposits may be redeemed upon demand. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. |
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Subsequent Events | The Company recognizes in the consolidated financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the statement of financial position, including the estimates inherent in the process of preparing financial statements. The Company has evaluated subsequent events through the date of this filing. |
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New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update, or ASU, No. 2014 ‑09, Revenue from Contracts with Customers, which outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This ASU clarifies the principles for recognizing revenue by, among other things, removing inconsistencies in revenue requirements, improving comparability of revenue recognition practices across entities and industries and providing improved disclosure requirements. In August 2015, the FASB approved a one year deferral of the effective date for this ASU to interim and annual reporting periods beginning after December 15, 2017; however, early adoption at the original effective date is still permitted. The Company has not yet selected a transition method and is currently evaluating the impact that the adoption of this ASU will have on our consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), which excludes investments measured at net asset value, as a practical expedient for fair value, from the fair value hierarchy. This ASU is effective for interim and annual reporting periods beginning after December 15, 2015, and requires retrospective application, with early adoption permitted. The implementation of this ASU is not expected to have a material impact to the disclosures in our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-12, Plan Accounting: Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefits Plans (Topic 965), which requires fully benefit-responsive investment contracts to be measured at contract value. Those Topics also require an adjustment to reconcile contract value to fair value, when these measures differ, on the face of the plan financial statements. Fair value is measured using the requirements in Topic 820, Fair Value Measurement. This ASU is effective for fiscal years beginning after December 15, 2015, and requires retrospective application, with early adoption permitted. The implementation of this ASU is not expected to have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) Simplifying the Measurement of Inventory, which requires entities to measure inventory at the lower of cost and net realizable value, except for inventory measured using last-in, first-out (LIFO) or the retail inventory method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017 and requires prospective application, with early adoption permitted as of the beginning of an interim or annual reporting period. The Company has not yet assessed the potential impact of implementing this ASU on our financial statements. In November 2015, the FASB issued ASU No, 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes, which require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this Topic apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Topic. The amendments in this Topic are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The implementation of this guidance is not expected to have a material impact to the disclosures in our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This updated Topic 842 affects any entity that enters into a lease (as that term is defined in this Update), with some specified scope exemptions. The guidance in this Update supersedes Topic 840, Leases. The amendments in this Topic are effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Company has not yet assessed the potential impact of implementing this ASU on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08 (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) to clarify the implementation guidance on principal versus agent considerations. The amendments in this update provides additional guidance on indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customer and does not change the core principle of previously issued guidance. The amendments in this Topic are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Company does not expect the implementation of this ASU to have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 (Topic 718), Compensation - Stock Compensation, Improvements to Employee Share-Based Payment Accounting to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Additionally, the amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. This should not result in a change in practice because the guidance that is being superseded was never effective. The amendments in this Topic are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company does not expect the implementation of this ASU to have a material impact on our consolidated financial statements. |
Summary of Significant Accounting Policies (Tables) |
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Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic and diluted earnings per share computations for the Company's reported net income attributable to common stockholders are as follows:
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Inventories (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following:
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Accumulated Other Comprehensive Loss (Tables) |
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive loss are as follows:
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Income Taxes (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of income (loss) before income tax and income tax expense (benefit) are comprised of the following:
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Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation of federal statutory rate and income tax expense (benefit) to the Company's effective tax rate and actual income tax expense (benefit) is as follows:
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Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | For the years ended September 30, 2016 and 2015, temporary differences, which give rise to deferred tax assets (liabilities), are as follows:
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Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:
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Property, Equipment and Improvements, Net (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Equipment and Improvements [Table Text Block] | Property, equipment and improvements, net consist of the following:
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Acquired Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | As of September 30, 2016 and 2015, intangible assets are as follows:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Annual amortization expense related to intangible assets for each of the following successive fiscal years is as follows:
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Accounts Payable and Accrued Expenses (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accounts payable and accrued expenses consist of the following:
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Product Warranties (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Liability [Table Text Block] | Product warranty activity for the years ended September 30 was as follows:
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Stock Options and Awards (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The following table summarizes stock-based compensation expense in the Company's consolidated statements of operations:
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Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following tables provide summary data of stock option award activity:
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Schedule of Nonvested Share Activity [Table Text Block] | The following table provides summary data of nonvested stock award activity:
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Pension and Retirement Plans (Tables) |
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Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | The components of net periodic benefit costs related to the U.S. and international plans are as follows:
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Schedule of Changes in Projected Benefit Obligations [Table Text Block] | The following table presents an analysis of the changes in 2016 and 2015 of the benefit obligation, the plan assets and the funded status of the plans:
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Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | The amounts recognized in the consolidated balance sheet consist of:
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Schedule of Accrued Liabilities [Table Text Block] | Accrued benefit liability reported as:
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Schedule of Expected Benefit Payments [Table Text Block] | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (amounts in thousands):
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Schedule of Allocation of Plan Assets [Table Text Block] | The fair value of the assets held by the U.K. pension plan by asset category are as follows:
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Projected Benefit Obligations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used [Table Text Block] | The following table provides the weighted average actuarial assumptions used to determine the actuarial present value of projected benefit obligations at:
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Net Periodic Benefit Cost | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used [Table Text Block] | The following table provides the weighted average actuarial assumptions used to determine net periodic benefit cost for years ended:
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The Company was obligated under non-cancelable operating leases as follows:
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Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | The following table details the Company's sales by operating segment for fiscal years September 30, 2016 and 2015. The Company's sales by geographic area based on the location of where the products were shipped or services rendered are as follows:
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Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | Long-lived assets by geographic location at September 30, 2016 and 2015 were as follows:
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ScheduleOfDeferredTaxAssetsByGeographicLocationTableTextBlock | Deferred tax assets by geographic location at September 30, 2016 and 2015 were as follows:
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Operating Segments [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | The following table presents certain operating segment information.
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Revenues In Excess Of 10 Percent Of Total Revenues [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | The following table lists customers from which the Company derived revenues in excess of 10% of total revenues for the years ended September 30, 2016 and 2015.
|
Summary of Significant Accounting Policies (Detail) - USD ($) shares in Thousands, $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Inventory Write-down | $ 602 | |
Research and Development Expense (in Dollars) | $ 2,984 | $ 2,826 |
Number of Years Defined Benefit Plans are Closed to Newly Hired Employees | 2 years | |
Number of Years Supplementary Retirement Plans are Closed to Newly Hired Employees | 2 years | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 25 | 26 |
Stock-based compensation expense on stock options and restricted stock awards | $ 414 | $ 375 |
Minimum | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Property, Plant and Equipment, Useful Life | 3 years | |
Hardware Warranty Included in Product Sales | 90 days | |
Maximum | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Property, Plant and Equipment, Useful Life | 7 years | |
Hardware Warranty Included in Product Sales | 3 years |
Summary of Significant Accounting Policies (Detail) - Basic and diluted earnings per share computations for the Companys reported net income attributable to common stockholders - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Accounting Policies [Abstract] | ||
Net income | $ 2,604 | $ (210) |
Less: Net income attributable to nonvested common stock (in Dollars) | 109 | 0 |
Net income attributable to common stockholders | $ 2,495 | $ (210) |
Weighted average total shares outstanding - basic | 3,766 | 3,548 |
Less: weighted average non-vested shares outstanding | 157 | 0 |
Weighted average number of common shares outstanding - basic | 3,609 | 3,548 |
Potential common shares from non-vested stock awards and the assumed exercise of stock options | 125 | 0 |
Weighted average common shares outstanding - diluted | 3,734 | 3,548 |
Net income per share - basic (in Dollars per share) | $ 0.69 | $ (0.06) |
Net income per share - diluted (in Dollars per share) | $ 0.67 | $ (0.06) |
Inventories (Detail) - USD ($) $ in Millions |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Other Inventory, Capitalized Costs, Gross | $ 0.1 | $ 0.1 |
Inventories (Detail) - Inventories - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,658 | $ 1,788 |
Work-in-process | 1,209 | 387 |
Finished goods | 3,281 | 3,574 |
Total | $ 6,148 | $ 5,749 |
Accumulated Other Comprehensive Loss - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Other Income and Expenses [Abstract] | ||
Amortization of net (gain) loss included in net periodic pension cost | $ 90 | $ 140 |
Income Taxes (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Valuation Allowance, Deferred Tax Asset, Change in Amount | $ (132) | |
Income tax expense | $ 996 | $ 226 |
Effective Income Tax Rate, Continuing Operations | 27.70% | 1414.10% |
Deferred Tax Assets, Valuation Allowance | $ 3,180 | $ 3,048 |
Tax Credit Carryforward, Amount | 417 | |
Deferred Tax Assets, Other Tax Carryforwards | 58 | |
Undistributed Earnings of Foreign Subsidiaries | 1,100 | 2,500 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 202 | |
Accrued penalties and interest | 7 | 18 |
State | ||
Valuation Allowance, Deferred Tax Asset, Change in Amount | 59 | |
Operating Loss Carryforwards | 400 | $ 400 |
U.K. | ||
Operating Loss Carryforwards | $ 8,500 |
Income Taxes (Detail) - Components of income before income tax and income tax expense (benefit) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income (loss) before income tax: | ||
U.S. | $ 3,418 | $ 576 |
Foreign | 182 | (560) |
Income before income taxes | 3,600 | 16 |
Current: | ||
Federal | 303 | (4) |
State | 118 | 24 |
Foreign | 159 | 152 |
Current Income Tax Expense (Benefit) | 580 | 172 |
Deferred: | ||
Federal | 400 | (36) |
State | 46 | 67 |
Foreign | (30) | 23 |
Deferred Income Tax Expense (Benefit) | 416 | 54 |
Income tax expense (benefit) | $ 996 | $ 226 |
Income Taxes (Detail) - Deferred tax assets (liabilities) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Deferred tax assets: | ||
Pension | $ 2,896 | $ 2,023 |
Intangibles | 315 | 409 |
Other reserves and accruals | 671 | 618 |
Inventory reserves and other | 470 | 724 |
State credits, net of federal benefit | 313 | 253 |
Federal and state net operating loss carryforwards | 61 | 71 |
Foreign net operating loss carryforwards | 1,704 | 2,093 |
Foreign tax credits | 7 | 7 |
Depreciation and amortization | (203) | (126) |
Gross deferred tax assets | 6,234 | 6,072 |
Less: valuation allowance | (3,180) | (3,048) |
Realizable deferred tax asset | 3,054 | 3,024 |
Gross deferred tax liabilities | 0 | 0 |
Net deferred tax assets | $ 3,054 | $ 3,024 |
Income Taxes (Detail) - A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2014 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Balance, beginning of year | $ 195 | $ 249 | |
Increases in tax positions in the current year | 0 | 0 | |
Settlements | 0 | (72) | |
Lapse in statute of limitations | $ 0 | 0 | |
Accrued penalties and interest | 7 | 18 | |
Balance, end of period | $ 202 | $ 195 |
Property, Equipment and Improvements, Net (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation, Depletion and Amortization | $ 570 | $ 516 |
Property, Equipment and Improvements, Net (Detail) - Property, equipment and improvements, net - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 8,966 | $ 8,684 |
Less accumulated depreciation and amortization | (7,286) | (7,120) |
Property, equipment and improvements, net | 1,680 | 1,564 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 263 | 440 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 8,629 | 8,170 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 74 | $ 74 |
Acquired Intangible Assets (Detail) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2014 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 129 | $ 129 | $ 130 |
Acquired Intangible Assets (Detail) - Intangible assets - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Impaired Intangible Assets [Abstract] | ||
Gross | $ 1,173 | $ 1,173 |
Accumulated Amortization | 886 | 757 |
Net | $ 287 | $ 416 |
Customer list | ||
Impaired Intangible Assets [Abstract] | ||
Weighted Average Remaining Amortization Period | 3 years | 4 years |
Gross | $ 910 | $ 910 |
Accumulated Amortization | 682 | 591 |
Net | $ 228 | $ 319 |
Non-compete agreements | ||
Impaired Intangible Assets [Abstract] | ||
Weighted Average Remaining Amortization Period | 0 years | 0 years |
Gross | $ 93 | $ 93 |
Accumulated Amortization | 93 | 93 |
Net | $ 0 | $ 0 |
Developed technology | ||
Impaired Intangible Assets [Abstract] | ||
Weighted Average Remaining Amortization Period | 0 years | 1 year |
Gross | $ 30 | $ 30 |
Accumulated Amortization | 29 | 19 |
Net | $ 1 | $ 11 |
Trade name | ||
Impaired Intangible Assets [Abstract] | ||
Weighted Average Remaining Amortization Period | 2 years | 3 years |
Gross | $ 140 | $ 140 |
Accumulated Amortization | 82 | 54 |
Net | $ 58 | $ 86 |
Acquired Intangible Assets (Detail) - Annual amortization expense related to intangible assets - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2017 | $ 120 | |
2018 | 119 | |
2019 | 11 | |
2020 | 9 | |
2021 | 9 | |
Thereafter | 19 | |
Total | $ 287 | $ 416 |
Accounts Payable and Accrued Expenses (Detail) - Accounts payable and accrued expenses consist of the following - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accounts payable | $ 7,511 | $ 10,559 |
Commissions | 269 | 248 |
Compensation and fringe benefits | 2,139 | 1,426 |
Professional fees and shareholders' reporting costs | 594 | 499 |
Taxes, other than income | 353 | 25 |
Warranty | 131 | 125 |
Other | 935 | 894 |
Accounts payable and accrued expenses | $ 11,932 | $ 13,776 |
Product Warranties (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Payables and Accruals [Abstract] | ||
Product Warranty Beg Balance | $ 125,423 | $ 183,555 |
Accrual for Warranties | 52,066 | 1,497 |
Fulfillment of Warranty Obligations | (46,648) | (59,629) |
Product Warranty End Balance | $ 130,841 | $ 125,423 |
Stock Options and Awards (Detail) - Stock-based compensation expense - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 414 | $ 375 |
Cost of sales | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 2 | 2 |
Engineering and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 6 | 22 |
Selling, general and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 406 | $ 351 |
Employee Stock Purchase Plan (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2013 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of shares covered under the Employee Stock Purchase Plan (ESPP) | 250,000 | ||
Purchase price per share as percentage of fair market value | 95.00% | ||
Issuance of shares under employee stock purchase plan (in shares) | 33,248 | 31,163 | |
Shares available for future issuance under the ESPP | 172,082 |
Pension and Retirement Plans (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Number of Years Defined Benefit Plans are Closed to Newly Hired Employees | 2 years | |
Number of Years Supplementary Retirement Plans are Closed to Newly Hired Employees | 2 years | |
Accumulated other comprehensive income | $ 9,124 | $ 5,561 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | (318) | |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 600 | |
Defined Benefit Plan, Fair Value of Plan Assets | 7,629 | 9,301 |
Contributions in Defined Contribution Plans | 129 | 174 |
Domestic | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Loans, Gross, Insurance Policy | 1,900 | 2,000 |
Accumulated other comprehensive income | $ 123 | $ (62) |
Pension and Retirement Plans (Detail) - Weighted average actuarial assumptions used to determine projected benefit obligation |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Domestic | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate: | 3.50% | 4.25% |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate: | 1.77% | 3.10% |
Expected return on plan assets: | 3.60% | 4.20% |
Rate of compensation increase: | 1.00% | 1.00% |
Pension and Retirement Plans (Detail) - Weighted average actuarial assumptions used to determine net periodic benefit cost |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Domestic | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate: | 4.25% | 4.25% |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate: | 3.10% | 3.25% |
Expected return on plan assets: | 4.20% | 4.40% |
Rate of compensation increase: | 1.00% | 1.00% |
Pension and Retirement Plans (Detail) - Accrued benefit liability - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Pension and Other Postretirement Defined Benefit Plans, Liabilities [Abstract] | ||
Current accrued benefit liability | $ 581 | $ 675 |
Non-current accrued benefit liability | 13,441 | 10,009 |
Total accrued benefit liability | $ 14,022 | $ 10,684 |
Pension and Retirement Plans (Detail) - Future benefit payments $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2015 | $ 622 |
2016 | 588 |
2017 | 628 |
2018 | 643 |
2019 | 671 |
Thereafter | $ 3,932 |
Lines of Credit (Detail) |
12 Months Ended | |
---|---|---|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
|
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 1,000,000 | $ 1,000,000 |
Interest rate terms | London Inter-Bank Offer Rate (“LIBOR”) plus 2.5%, with a floor of 4% | London Inter-Bank Offer Rate (“LIBOR”) plus 2.5%, with a floor of 4% |
Debt Instrument, Description of Variable Rate Basis | Prime plus 5% | |
liquidity ratio | 1.2 | |
Minimum Net Worth Required for Compliance | $ 2.5 | |
Ratio of Indebtedness to Net Capital | 5.0 | |
Short-term Debt | $ 3,200,000 | $ 2,900,000 |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Stated interest rate, percentage, minimum | 4.00% | 4.00% |
Line of Credit | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 5.00% | 5.00% |
Commitments and Contingencies (Detail) - USD ($) shares in Thousands, $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Commitments and Contingencies Disclosure [Abstract] | ||
Operating Leases, Rent Expense (in Dollars) | $ 1.2 | $ 1.3 |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 201 |
Commitments and Contingencies (Detail) - Future minimum rental payments on non-cancelable operating leases $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2016 | $ 596 |
2017 | 604 |
2018 | 618 |
2019 | 586 |
2020 | 280 |
Operating Leases, Future Minimum Payments, Due Thereafter | 920 |
Operating Leases, Future Minimum Payments Due | $ 3,604 |
Segment Information (Detail) - Long-lived assets by geographic location - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 1,967 | $ 1,980 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 1,348 | 1,494 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 619 | $ 486 |
Segment Information (Detail) - Deferred tax assets by geographic location - USD ($) $ in Thousands |
Sep. 30, 2016 |
Sep. 30, 2015 |
---|---|---|
Deferred tax assets | $ 3,054 | $ 3,024 |
North America [Member] | ||
Deferred tax assets | 1,990 | 2,254 |
Europe [Member] | ||
Deferred tax assets | $ 1,064 | $ 770 |
Segment Information (Detail) - Major customers - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Customer A [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 19.00% | 19.00% |
Revenues | $ 19.6 | $ 17.1 |
Customer B [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 13.00% | 16.00% |
Revenues | $ 13.2 | $ 14.3 |
Dividend (Detail) - $ / shares |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 23, 2015 |
Aug. 12, 2015 |
May 13, 2015 |
Feb. 11, 2015 |
Dec. 16, 2014 |
Aug. 06, 2014 |
May 14, 2014 |
Feb. 11, 2014 |
Dec. 17, 2013 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Subsequent Event [Line Items] | |||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.44 | $ 0.44 | |
Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.11 |
Related Party Transactions (Details) |
12 Months Ended | |
---|---|---|
Sep. 30, 2016
USD ($)
member
|
Sep. 30, 2015
USD ($)
|
|
Related Party Transactions [Abstract] | ||
Members of CSP Inc.'s Board of Directors serving on related party company's board | member | 2 | |
Revenue from Related Parties | $ 283 | $ 314 |
Accounts Receivable, Related Parties | $ 64 | $ 13 |
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