x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Quarterly Period Ended | December 31, 2018 | |
or | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to . |
Massachusetts | 04-2441294 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
175 Cabot Street - Suite 210, Lowell, MA | 01854 |
(Address of principle executive offices) | (Zip Code) |
(978)-954-5038 | |
(Registrant's telephone number, including area code) |
Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer | x | Smaller reporting company | x |
Emerging growth company | o |
Page | ||
December 31, 2018 | September 30, 2018 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 20,656 | $ | 25,107 | |||
Accounts receivable, net of allowances of $89 and $87 | 17,208 | 11,980 | |||||
Unbilled accounts receivable | — | 1,166 | |||||
Investment in lease, net-current portion | 258 | 246 | |||||
Inventories | 6,790 | 7,558 | |||||
Refundable income taxes | 476 | 480 | |||||
Other current assets | 2,318 | 1,878 | |||||
Total current assets | 47,706 | 48,415 | |||||
Property, equipment and improvements, net | 979 | 847 | |||||
Other assets: | |||||||
Intangibles, net | 43 | 48 | |||||
Investment in lease, net-less current portion | 495 | 564 | |||||
Deferred income taxes | 1,837 | 1,895 | |||||
Cash surrender value of life insurance | 3,469 | 3,441 | |||||
Other assets | 66 | 65 | |||||
Total other assets | 5,910 | 6,013 | |||||
Total assets | $ | 54,595 | $ | 55,275 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 12,844 | $ | 12,524 | |||
Deferred revenue | 738 | 1,197 | |||||
Pension and retirement plans | 336 | 340 | |||||
Total current liabilities | 13,918 | 14,061 | |||||
Pension and retirement plans | 5,999 | 6,168 | |||||
Income taxes payable | 694 | 709 | |||||
Other noncurrent liabilities | 565 | 535 | |||||
Total liabilities | 21,176 | 21,473 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity: | |||||||
Common stock, $.01 par value per share; authorized, 7,500 shares; issued and outstanding 4,018 and 4,017 shares, respectively | 41 | 40 | |||||
Additional paid-in capital | 14,842 | 14,661 | |||||
Retained earnings | 29,531 | 29,926 | |||||
Accumulated other comprehensive loss | (10,995 | ) | (10,825 | ) | |||
Total shareholders’ equity | 33,419 | 33,802 | |||||
Total liabilities and shareholders’ equity | $ | 54,595 | $ | 55,275 |
For the three months ended | |||||||
December 31, 2018 | December 31, 2017 | ||||||
Sales: | |||||||
Product | $ | 15,711 | $ | 13,669 | |||
Services | 3,269 | 2,961 | |||||
Total sales | 18,980 | 16,630 | |||||
Cost of sales: | |||||||
Product | 13,212 | 11,280 | |||||
Services | 1,419 | 987 | |||||
Total cost of sales | 14,631 | 12,267 | |||||
Gross profit | 4,349 | 4,363 | |||||
Operating expenses: | |||||||
Engineering and development | 745 | 698 | |||||
Selling, general and administrative | 3,589 | 3,500 | |||||
Total operating expenses | 4,334 | 4,198 | |||||
Operating income | 15 | 165 | |||||
Other income (expense): | |||||||
Foreign exchange gain (loss) | 7 | (68 | ) | ||||
Other income (expense), net | 30 | 61 | |||||
Total other income (expense) | 37 | (7 | ) | ||||
Income before income taxes | 52 | 158 | |||||
Income tax expense | 2 | 1,153 | |||||
Net income (loss) from continuing operations | 50 | (995 | ) | ||||
Net loss from discontinued operations, net of tax | — | (205 | ) | ||||
Net income (loss) | 50 | (1,200 | ) | ||||
Net income (loss) attributable to common stockholders | $ | 48 | $ | (1,200 | ) | ||
Net income (loss) from continuing operations per share – basic | $ | 0.01 | $ | (0.26 | ) | ||
Net loss from discontinued operations per share – basic | $ | — | $ | (0.06 | ) | ||
Net income (loss) per share - basic | $ | 0.01 | $ | (0.32 | ) | ||
Weighted average shares outstanding – basic | 3,868 | 3,768 | |||||
Net income (loss) from continuing operations per share – diluted | $ | 0.01 | $ | (0.26 | ) | ||
Net loss from discontinued operations per share – diluted | $ | — | $ | (0.06 | ) | ||
Net income (loss) per share - diluted | $ | 0.01 | $ | (0.32 | ) | ||
Weighted average shares outstanding – diluted | 3,966 | 3,768 |
For the three months ended | ||||||||
December 31, 2018 | December 31, 2017 | |||||||
Net income (loss) | $ | 50 | $ | (1,200 | ) | |||
Other comprehensive loss: | ||||||||
Foreign currency translation loss adjustments | (170 | ) | (4 | ) | ||||
Other comprehensive loss | (170 | ) | (4 | ) | ||||
Total comprehensive loss | $ | (120 | ) | $ | (1,204 | ) |
Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive loss | Total Shareholders’ Equity | |||||||||||||||||
Balance as of September 30, 2018 | 4,017 | $ | 40 | $ | 14,661 | $ | 29,926 | $ | (10,825 | ) | $ | 33,802 | ||||||||||
Adoption of ASU 2014-09 (see note 12) | — | — | — | 158 | — | 158 | ||||||||||||||||
Net income | — | — | — | 50 | — | 50 | ||||||||||||||||
Other comprehensive loss | — | — | — | — | (170 | ) | (170 | ) | ||||||||||||||
Exercise of stock options | 1 | 1 | 3 | — | — | 4 | ||||||||||||||||
Stock-based compensation | — | — | 178 | — | — | 178 | ||||||||||||||||
Cash dividends declared on common stock ($0.15 per share) | — | — | — | (603 | ) | — | (603 | ) | ||||||||||||||
Balance as of December 31, 2018 | 4,018 | $ | 41 | $ | 14,842 | $ | 29,531 | $ | (10,995 | ) | $ | 33,419 |
For the three months ended | |||||||
December 31, 2018 | December 31, 2017 | ||||||
Cash flows provided by (used in) operating activities: | |||||||
Net income (loss) | $ | 50 | $ | (1,200 | ) | ||
Loss from discontinued operations, net of income tax benefit | — | (205 | ) | ||||
Net income (loss) from continuing operations | 50 | (995 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 101 | 94 | |||||
Amortization of intangibles | 5 | 30 | |||||
Loss on sale of fixed assets, net | — | 4 | |||||
Foreign exchange (gain) loss | (7 | ) | 68 | ||||
Non-cash changes in accounts receivable | 2 | — | |||||
Non-cash changes in inventories | 125 | 128 | |||||
Stock-based compensation expense on stock options and restricted stock awards | 178 | 121 | |||||
Deferred income taxes | (99 | ) | 490 | ||||
Increase in cash surrender value of life insurance | (28 | ) | (29 | ) | |||
Changes in operating assets and liabilities: | |||||||
(Increase) decrease in accounts receivable | (4,128 | ) | 6,826 | ||||
Decrease in life insurance receivable | 256 | — | |||||
(Increase) decrease in inventories | 629 | (955 | ) | ||||
Increase in deferred costs | — | (6 | ) | ||||
Decrease in refundable income taxes | 109 | 32 | |||||
Increase in other current assets | (703 | ) | (494 | ) | |||
Decrease in investment in lease | 57 | — | |||||
Decrease in accounts payable and accrued expenses | (269 | ) | (2,671 | ) | |||
Increase (decrease) in deferred revenue | (247 | ) | 109 | ||||
Decrease in pension and retirement plans liabilities | (78 | ) | (30 | ) | |||
Increase (decrease) in income taxes payable | (13 | ) | 647 | ||||
Increase in other long term liabilities | 101 | 2 | |||||
Net cash provided by (used in) operating activities of continuing operations | (3,959 | ) | 3,371 | ||||
Net cash provided by operating activities of discontinued operations | — | 1,183 | |||||
Net cash provided by (used in) operating activities | (3,959 | ) | 4,554 | ||||
Cash flows used in investing activities: | |||||||
Life insurance premiums paid | — | (66 | ) | ||||
Purchases of property, equipment and improvements | (233 | ) | (44 | ) | |||
Net cash used in investing activities of continuing operations | (233 | ) | (110 | ) | |||
Net cash used in investing activities of discontinued operations | — | (65 | ) | ||||
Net cash used in investing activities | (233 | ) | (175 | ) | |||
Cash flows provided by (used in) financing activities: | |||||||
Principal payments on capital leases | (70 | ) | — | ||||
Proceeds from issuance of shares under equity compensation plans | 3 | 9 | |||||
Net cash provided by (used in) financing activities | (67 | ) | 9 | ||||
Effects of exchange rate on cash | (192 | ) | (83 | ) | |||
Net increase (decrease) in cash and cash equivalents | (4,451 | ) | 4,305 | ||||
Cash and cash equivalents of continuing operations, beginning of period | 25,107 | 10,421 | |||||
Cash and cash equivalents of discontinued operations, beginning of period | — | 3,464 | |||||
Cash and cash equivalents, beginning of period | 25,107 | 13,885 | |||||
Cash and cash equivalents, end of period | 20,656 | 18,190 | |||||
Less: Cash and cash equivalents of discontinued operations at end of period | — | 4,685 | |||||
Cash and cash equivalents of continuing operations at end of period | $ | 20,656 | $ | 13,505 | |||
Supplementary cash flow information: | |||||||
Cash paid for income taxes | $ | — | $ | 95 | |||
Cash paid for interest | $ | 67 | $ | 72 | |||
Non-cash accrual of dividend payable | $ | 603 | $ | 437 |
Technology Solutions Segment | ||||||||||||||||||||
For the three months ended December 31, | High Performance Products Segment | United Kingdom | U.S. | Total | Consolidated Total | |||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
2018 | ||||||||||||||||||||
Sales: | ||||||||||||||||||||
Product | $ | 1,733 | $ | 1,732 | $ | 12,209 | $ | 13,941 | $ | 15,674 | ||||||||||
Service | 293 | 70 | 2,906 | 2,976 | 3,269 | |||||||||||||||
Finance * | — | — | 37 | 37 | 37 | |||||||||||||||
Total sales | $ | 2,026 | $ | 1,802 | $ | 15,152 | $ | 16,954 | $ | 18,980 |
For the three months ended | |||||||
December 31, 2018 | December 31, 2017 | ||||||
(Amounts in thousands except per share data) | |||||||
Income (loss) from continuing operations | $ | 50 | $ | (995 | ) | ||
Loss from discontinued operations | — | (205 | ) | ||||
Net income (loss) | 50 | (1,200 | ) | ||||
Less: net income attributable to nonvested common stock | 2 | — | |||||
Net income (loss) attributable to common stockholders | $ | 48 | $ | (1,200 | ) | ||
Weighted average total shares outstanding – basic | 4,018 | 3,768 | |||||
Less: weighted average non-vested shares outstanding | 150 | — | |||||
Weighted average number of common shares outstanding – basic | 3,868 | 3,768 | |||||
Potential common shares from non-vested stock awards and the assumed exercise of stock options | 98 | — | |||||
Weighted average common shares outstanding – diluted | 3,966 | 3,768 | |||||
Net income (loss) from continuing operations per share – basic | $ | 0.01 | $ | (0.26 | ) | ||
Net loss from discontinued operations per share – basic | $ | — | $ | (0.06 | ) | ||
Net income (loss) share – basic | $ | 0.01 | $ | (0.32 | ) | ||
Net income (loss) from continuing operations per share – diluted | $ | 0.01 | $ | (0.26 | ) | ||
Net loss from discontinued operations per share – diluted | $ | — | $ | (0.06 | ) | ||
Net income (loss) per share – diluted | $ | 0.01 | $ | (0.32 | ) |
December 31, 2018 | September 30, 2018 | ||||||
(Amounts in thousands) | |||||||
Raw materials | $ | 898 | $ | 1,098 | |||
Work-in-process | 280 | 226 | |||||
Finished goods | 5,612 | 6,234 | |||||
Total | $ | 6,790 | $ | 7,558 |
December 31, 2018 | September 30, 2018 | |||||||
(Amounts in thousands) | ||||||||
Cumulative effect of foreign currency translation | $ | (4,516 | ) | $ | (4,346 | ) | ||
Cumulative unrealized loss on pension liability | (6,479 | ) | (6,479 | ) | ||||
Accumulated other comprehensive loss | $ | (10,995 | ) | $ | (10,825 | ) |
For the Three Months Ended December 31, | |||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||
Foreign | U.S. | Total | Foreign | U.S. | Total | ||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||
Pension: | |||||||||||||||||||||||
Interest cost | $ | 91 | $ | 6 | $ | 97 | $ | 91 | $ | 7 | $ | 98 | |||||||||||
Expected return on plan assets | (77 | ) | — | (77 | ) | (75 | ) | — | (75 | ) | |||||||||||||
Amortization of net gain (loss) | 38 | (1 | ) | 37 | 43 | (1 | ) | 42 | |||||||||||||||
Net periodic benefit cost from continuing operations | 52 | 5 | 57 | 59 | 6 | 65 | |||||||||||||||||
Net periodic benefit cost from discontinued operations | — | — | — | 52 | — | 52 | |||||||||||||||||
Net periodic benefit cost | $ | 52 | $ | 5 | $ | 57 | $ | 111 | $ | 6 | $ | 117 | |||||||||||
Post Retirement: | |||||||||||||||||||||||
Service cost | $ | — | $ | 9 | $ | 9 | $ | — | $ | 10 | $ | 10 | |||||||||||
Interest cost | — | 13 | 13 | — | 12 | 12 | |||||||||||||||||
Amortization of net gain (loss) | — | (5 | ) | (5 | ) | — | (4 | ) | (4 | ) | |||||||||||||
Net periodic cost | $ | — | $ | 17 | $ | 17 | $ | — | $ | 18 | $ | 18 |
Fair Values as of | |||||||||||||||||||||||||||||||
December 31, 2018 | September 30, 2018 | ||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||||||||
Cash on deposit | $ | 32 | $ | 32 | $ | — | $ | — | $ | 36 | $ | 36 | $ | — | $ | — | |||||||||||||||
Pooled funds | 7,744 | 7,744 | — | — | 8,234 | 8,234 | — | — | |||||||||||||||||||||||
Total plan assets | $ | 7,776 | $ | 7,776 | $ | — | $ | — | $ | 8,270 | $ | 8,270 | $ | — | $ | — | |||||||||||||||
Technology Solutions Segment | ||||||||||||||||||||
For the three months ended December 31, | High Performance Products Segment | United Kingdom | U.S. | Total | Consolidated Total | |||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
2018 | ||||||||||||||||||||
Sales: | ||||||||||||||||||||
Product | $ | 1,733 | $ | 1,732 | $ | 12,246 | $ | 13,978 | $ | 15,711 | ||||||||||
Service | 293 | 70 | 2,906 | 2,976 | 3,269 | |||||||||||||||
Total sales | 2,026 | 1,802 | 15,152 | 16,954 | 18,980 | |||||||||||||||
Income (loss) from operations | (827 | ) | 26 | 816 | 842 | 15 | ||||||||||||||
Total assets | 14,059 | 13,110 | 27,426 | 40,536 | 54,595 | |||||||||||||||
Capital expenditures | 203 | — | 30 | 30 | 233 | |||||||||||||||
Depreciation and amortization | 53 | 2 | 51 | 53 | 106 | |||||||||||||||
2017 | ||||||||||||||||||||
Sales: | ||||||||||||||||||||
Product | $ | 1,607 | $ | 2,542 | $ | 9,520 | $ | 12,062 | $ | 13,669 | ||||||||||
Service | 863 | 165 | 1,933 | 2,098 | 2,961 | |||||||||||||||
Total sales | 2,470 | 2,707 | 11,453 | 14,160 | 16,630 | |||||||||||||||
Income (loss) from operations | (382 | ) | 142 | 405 | 547 | 165 | ||||||||||||||
Assets from continuing operations | 16,613 | 2,520 | 19,784 | 22,304 | 38,917 | |||||||||||||||
Assets from discontinued operations | — | — | — | — | 21,000 | |||||||||||||||
Total assets | 16,613 | 2,520 | 19,784 | 22,304 | 59,917 | |||||||||||||||
Capital expenditures | 10 | — | 34 | 34 | 44 | |||||||||||||||
Depreciation and amortization | 56 | 1 | 67 | 68 | 124 |
For the three months ended December 31, | ||||||||||||||
2018 | 2017 | |||||||||||||
Customer Revenues | % of Total Revenues | Customer Revenues | % of Total Revenues | |||||||||||
(Dollar amounts in millions) | ||||||||||||||
Customer A | $ | 0.1 | 1 | % | $ | 2.0 | 12 | % |
Three months ended December 31, 2018 | |||||||||||
(Amounts in thousands, except per share amounts) | |||||||||||
As Reported | Balances without adoption of ASC 606 | Effect of change Higher/(Lower) | |||||||||
Total sales | $ | 18,980 | $ | 18,874 | $ | 106 | |||||
Total cost of sales | 14,631 | 14,500 | 131 | ||||||||
Gross profit | 4,349 | 4,374 | (25 | ) | |||||||
Operating income | 15 | 40 | (25 | ) | |||||||
Income tax expense | 2 | 3 | (1 | ) | |||||||
Net income | 50 | 74 | (24 | ) | |||||||
Net income attributable to common stockholders | $ | 48 | $ | 71 | $ | (23 | ) | ||||
Basic earnings per share | $ | 0.01 | $ | 0.02 | $ | (0.01 | ) | ||||
Diluted earnings per share | $ | 0.01 | $ | 0.02 | $ | (0.01 | ) |
As of December 31, 2018 | |||||||||||
(Amounts in thousands) | |||||||||||
As Reported | Balances without adoption of ASC 606 | Effect of change Higher/(Lower) | |||||||||
Assets: | |||||||||||
Accounts receivable | $ | 17,208 | $ | 17,071 | $ | 137 | |||||
Unbilled accounts receivable | — | 646 | (646 | ) | |||||||
Inventories | 6,790 | 7,108 | (318 | ) | |||||||
Other current assets | 2,318 | 1,657 | 661 | ||||||||
Deferred tax asset | 1,837 | 1,832 | 5 | ||||||||
Liabilities: | |||||||||||
Deferred revenue | $ | 738 | $ | 1,122 | $ | (384 | ) | ||||
Shareholders' Equity: | |||||||||||
Retained Earnings | $ | 29,531 | $ | 29,373 | $ | 158 |
For the three months ended | ||||||||
December 31, 2018 | December 31, 2017 | |||||||
(Amounts in thousands) | ||||||||
Sales | $ | — | $ | 5,369 | ||||
Cost of sales | — | 4,599 | ||||||
Gross profit | — | 770 | ||||||
Selling, general and administrative expenses | — | 928 | ||||||
Operating loss | — | (158 | ) | |||||
Other expenses | — | (98 | ) | |||||
Loss before income taxes | — | (256 | ) | |||||
Income tax benefit | — | (51 | ) | |||||
Loss from discontinued operations, net of tax | $ | — | $ | (205 | ) |
December 31, 2018 | % of sales | December 31, 2017 | % of sales | |||||||||||
(Dollar amounts in thousands) | ||||||||||||||
Sales | $ | 18,980 | 100 | % | $ | 16,630 | 100 | % | ||||||
Costs and expenses: | ||||||||||||||
Cost of sales | 14,631 | 77 | % | 12,267 | 74 | % | ||||||||
Engineering and development | 745 | 4 | % | 698 | 4 | % | ||||||||
Selling, general and administrative | 3,589 | 19 | % | 3,500 | 21 | % | ||||||||
Total costs and expenses | 18,965 | 100 | % | 16,465 | 99 | % | ||||||||
Operating income | 15 | — | % | 165 | 1 | % | ||||||||
Other income (expense) | 37 | — | % | (7 | ) | — | % | |||||||
Income before income taxes | 52 | — | % | 158 | 1 | % | ||||||||
Income tax expense | 2 | — | % | 1,153 | 7 | % | ||||||||
Net income (loss) from continuing operations | 50 | — | % | (995 | ) | (6 | )% | |||||||
Net loss from discontinued operations | — | — | % | (205 | ) | (1 | )% | |||||||
Net Income (loss) | $ | 50 | — | % | $ | (1,200 | ) | (7 | )% |
Increase (Decrease) | |||||||||||||||
2018 | 2017 | $ | % | ||||||||||||
(Dollar amounts in thousands) | |||||||||||||||
Products | $ | 1,733 | $ | 1,607 | $ | 126 | 8 | % | |||||||
Services | 293 | 863 | (570 | ) | (66 | )% | |||||||||
Total | $ | 2,026 | $ | 2,470 | $ | (444 | ) | (18 | )% |
Increase | |||||||||||||||
2018 | 2017 | $ | % | ||||||||||||
(Dollar amounts in thousands) | |||||||||||||||
Products | $ | 13,978 | $ | 12,062 | $ | 1,916 | 16 | % | |||||||
Services | 2,976 | 2,098 | 878 | 42 | % | ||||||||||
Total | $ | 16,954 | $ | 14,160 | $ | 2,794 | 20 | % |
For the three months ended December 31, | Increase (Decrease) | ||||||||||||||||||||
2018 | % | 2017 | % | $ | % | ||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||||||
Americas | $ | 17,406 | 92 | % | $ | 13,233 | 80 | % | $ | 4,173 | 32 | % | |||||||||
Europe | 1,156 | 6 | % | 2,949 | 18 | % | (1,793 | ) | (61 | )% | |||||||||||
Asia | 418 | 2 | % | 448 | 2 | % | (30 | ) | (7 | )% | |||||||||||
Totals | $ | 18,980 | 100 | % | $ | 16,630 | 100 | % | $ | 2,350 | 14 | % |
2018 | 2017 | Increase (Decrease) | |||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||||
GM$ | GM% | GM$ | GM% | GM$ | GM% | ||||||||||||||
HPP | $ | 969 | 48 | % | $ | 1,462 | 59 | % | $ | (493 | ) | (11 | )% | ||||||
TS | 3,380 | 20 | % | 2,901 | 20 | % | 479 | — | % | ||||||||||
Total | $ | 4,349 | 23 | % | $ | 4,363 | 26 | % | $ | (14 | ) | (3 | )% |
2018 | 2017 | Increase (Decrease) | |||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||||
GM$ | GM% | GM$ | GM% | GM$ | GM% | ||||||||||||||
Products | $ | 691 | 40 | % | $ | 616 | 38 | % | $ | 75 | 2 | % | |||||||
Services | 278 | 95 | % | 846 | 98 | % | (568 | ) | (3 | )% | |||||||||
Total | $ | 969 | 48 | % | $ | 1,462 | 59 | % | $ | (493 | ) | (11 | )% |
2018 | 2017 | Increase (Decrease) | |||||||||||||||||
GM$ | GM% | GM$ | GM% | GM$ | GM% | ||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||||
Products | $ | 1,808 | 13 | % | $ | 1,773 | 15 | % | $ | 35 | (2 | )% | |||||||
Services | 1,572 | 53 | % | 1,128 | 54 | % | 444 | (1 | )% | ||||||||||
Total | $ | 3,380 | 20 | % | $ | 2,901 | 20 | % | $ | 479 | — | % |
For the three months ended December 31, | ||||||||||||||||||||
2018 | % of Total | 2017 | % of Total | $ Increase (Decrease) | % Increase (Decrease) | |||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||
By Operating Segment: | ||||||||||||||||||||
HPP segment | $ | 1,051 | 29 | % | $ | 1,146 | 33 | % | $ | (95 | ) | (8 | )% | |||||||
TS segment | 2,538 | 71 | % | 2,354 | 67 | % | 184 | 8 | % | |||||||||||
Total | $ | 3,589 | 100 | % | $ | 3,500 | 100 | % | $ | 89 | 3 | % |
For the three months ended, | |||||||||||
December 31, 2018 | December 31, 2017 | Increase (Decrease) | |||||||||
(Amounts in thousands) | |||||||||||
Interest expense | $ | (27 | ) | $ | (18 | ) | $ | (9 | ) | ||
Interest income | 55 | 4 | 51 | ||||||||
Foreign exchange gain (loss) | 7 | (68 | ) | 75 | |||||||
Other income, net | 2 | 75 | (73 | ) | |||||||
Total other income (expense), net | $ | 37 | $ | (7 | ) | $ | 44 |
For the three months ended | |||||||
December 31, 2018 | December 31, 2017 | ||||||
(Amounts in thousands) | |||||||
Revenues | $ | — | $ | 5,369 | |||
Net loss from discontinued operations, net of tax | $ | — | $ | (205 | ) |
Number | Description | |
31.1* | Rule 13(a)-14(a) / 15d-14(a) Certification of Chief Executive Officer | |
31.2* | Rule 13(a)-14(a) / 15d-14(a) Certification of Chief Financial Officer | |
32.1* | Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer | |
101* | Interactive Data Files regarding (a) our Consolidated Balance Sheets as of December 31, 2018 and September 30, 2018, (b) our Consolidated Statements of Income for the three months ended December 31, 2018 and 2017, (c) our Consolidated Statements of Comprehensive Income for the three months ended December 31, 2018 and 2017, (d) our Consolidated Statement of Shareholders’ Equity for the three months ended December 31, 2018, (e) our Consolidated Statements of Cash Flows for the three months ended December 31, 2018 and 2017 and (f) the Notes to such Consolidated Financial Statements. |
CSP INC. | ||
February 13, 2019 | By: | /s/ Victor Dellovo |
Victor Dellovo | ||
Chief Executive Officer, | ||
President and Director | ||
February 13, 2019 | By: | /s/ Gary W. Levine |
Gary W. Levine | ||
Chief Financial Officer |
Number | Description | |
31.1* | Rule 13(a)-14(a) / 15d-14(a) Certification of Chief Executive Officer | |
31.2* | Rule 13(a)-14(a) / 15d-14(a) Certification of Chief Financial Officer | |
32.1* | Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer | |
101* | Interactive Data Files regarding (a) our Consolidated Balance Sheets as of December 31, 2018 and September 30, 2018, (b) our Consolidated Statements of Income for the three months ended December 31, 2018 and 2017, (c) our Consolidated Statements of Comprehensive Income for the three months ended December 31, 2018 and 2017, (d) our Consolidated Statement of Shareholders’ Equity for the three months ended December 31, 2018 (e) our Consolidated Statements of Cash Flows for the three months ended December 31, 2018 and 2017 and (f) the Notes to such Consolidated Financial Statements. |
February 13, 2019 |
/s/ Victor Dellovo |
Victor Dellovo |
Chief Executive Officer; |
President and Director |
February 13, 2019 |
/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. |
February 13, 2019 | By: | /s/ Victor Dellovo | |
Victor Dellovo | |||
Chief Executive Officer; | |||
President and Director | |||
February 13, 2019 | By: | /s/ Gary W. Levine | |
Gary W. Levine | |||
Chief Financial Officer |
Document And Entity Information - shares |
3 Months Ended | |
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Dec. 31, 2018 |
Feb. 08, 2019 |
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Document and Entity Information [Abstract] | ||
Entity Registrant Name | CSP INC /MA/ | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --09-30 | |
Entity Common Stock, Shares Outstanding | 4,117,831 | |
Amendment Flag | false | |
Entity Central Index Key | 0000356037 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands |
Dec. 31, 2018 |
Sep. 30, 2018 |
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Statement of Financial Position [Abstract] | ||
Allowances (in Dollars) | $ 123 | $ 120 |
Common stock par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 7,500 | 7,500 |
Common stock, shares issued | 4,006 | 3,935 |
Common stock, shares outstanding | 4,006 | 3,935 |
Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
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Dec. 31, 2018 |
Dec. 31, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 50 | $ (1,200) |
Other comprehensive loss: | ||
Foreign currency translation loss adjustments | (170) | (4) |
Other comprehensive loss | (170) | (4) |
Total comprehensive loss | $ (120) | $ (1,204) |
Unaudited Consolidated Statement of Shareholders' Equity - 3 months ended Dec. 31, 2018 - USD ($) shares in Thousands, $ in Thousands |
Total |
Common Stock [Member] |
Capital Units [Member] |
Additional Paid-in Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
---|---|---|---|---|---|---|
Balance at Sep. 30, 2018 | $ 33,802 | $ 40 | $ 14,661 | $ 29,926 | $ (10,825) | |
Balance (in Shares) at Sep. 30, 2018 | 3,935 | 4,017 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ 50 | 50 | ||||
Other comprehensive loss | (170) | |||||
Exercise of Stock Options | 4 | $ 1 | 3 | |||
Exercise of Stock Options (in shares) | 1 | |||||
Stock-based compensation | 178 | 178 | ||||
Dividends, Cash | 603 | 603 | ||||
Balance at Dec. 31, 2018 | $ 33,419 | $ 41 | $ 14,842 | $ 29,531 | $ (10,995) | |
Balance (in Shares) at Dec. 31, 2018 | 4,006 | 4,018 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 158 |
Unaudited Consolidated Statement of Shareholders' Equity (Parentheticals) |
3 Months Ended |
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Dec. 31, 2018
$ / shares
| |
Statement of Stockholders' Equity [Abstract] | |
Dividends per share | $ 0.15 |
Basis of Presentation |
3 Months Ended |
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Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in the annual consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States, have been omitted. Accordingly, the Company believes that although the disclosures are adequate to make the information presented not misleading, the unaudited consolidated financial statements should be read in conjunction with the footnotes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2018. Unless otherwise noted, discussion within these notes to the consolidated financial statements relates to continuing operations. Refer to Note 13 for additional information on discontinued operations. |
Use of Estimates |
3 Months Ended |
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Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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, including estimates and assumptions related to reserves for bad debt, reserves for inventory obsolescence, the impairment assessment of intangible assets, and the calculation of standalone selling price for revenue recognition, the calculation of liabilities related to deferred compensation and retirement plans and the calculation of income tax liabilities. Actual results may differ from those estimates under different assumptions or conditions. |
Revenue |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Effective October 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. See Note 12 for effects of initial adoption. This note reflects the accounting policy change for revenue starting on the date of adoption. We derive revenue from the sale of integrated hardware and software, third-party service contracts, professional services, managed services, financing of hardware and software, and other services. We recognize revenue from hardware upon transfer of control, which is at a point in time typically upon shipment when title transfers. Revenue from software is recognized at a point in time when the license is granted. We recognize revenue from third-party service contracts as either gross sales or net sales depending on whether the Company is acting as a principal party to the transaction or simply acting as an agent or broker based on control and timing. The Company is a principal if it controls the good or service before that good or service is transferred to the customer. We record revenue as gross when the Company 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. Third-party service contracts are sold in different combinations with hardware, software, and services. We have determined the third-party services contracts are a single performance obligation in each sale. When the Company is an agent, revenue is typically recorded at a point in time. When the Company is the principal, revenue is recognized over the contract term. Professional services generally include implementation, installation, and training services. Professional services are considered a series of distinct services that form one performance obligation and revenue is recognized over time as services are performed. Revenue generated from managed services is recognized over the term of the contract. Certain managed services contracts include financing of hardware and software. Revenues from arrangements which include financing are allocated considering relative standalone selling prices of lease and non-lease components within the agreement. The lease components include the hardware and software, which are subject to ASC 840. The non-lease component includes the managed services and is subject to ASC 606. Other services generally include revenue generated through our royalty, extended warranty, multicomputer repair, and maintenance contracts. Royalty revenue is sales-based and recognized on date of subsequent sale of the product, which occurs on date of customer shipment. Revenue from extended warranty contracts is recognized evenly over the period of the warranty. Multicomputer repair services revenue is recognized upon control transfer when the customer takes possession of the computer at time of shipping. Revenue generated from maintenance services is recognized evenly over the term of the contract. Variable consideration is immaterial. Any products sold with right to return exists with the manufacturer. Managed service contracts contain the right to refund if canceled within 30 days of inception. Any products with a standard warranty are treated as a warranty obligation under ASC 460, Guarantees. 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. 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. Post contract maintenance and support is considered immaterial in the context of the contract and therefore is not a separate performance obligation. TS Segment Revenue TS Segment revenue is derived from the sale of hardware, software, professional services, third-party service contracts, maintenance contracts, managed services, and financing of hardware and software. Financing revenue is recognized in accordance with ASC 840, Leases. Financing revenue is recorded in revenue as equipment leasing and is part of the Company's central operations. Third-party service contracts are evaluated to determine whether such service revenue should be recorded as gross sales or net and whether over time or at point in time. See disaggregated revenues below by products/services and geography.
* Finance revenue is related to equipment leasing and is not subject to the guidance on revenue from contracts with customers. Significant Judgments The input method using labor hours expended relative to the total expected hours is used to recognize revenue for professional services. Only the hours that depict the Company’s performance toward satisfying a performance obligation are used for progress. An estimate for professional services is made at the beginning of each contract based on prior experience and monitored throughout the services. This method is most appropriate as it depicts the measure of progress towards satisfaction of the performance obligation. When product and services are sold together, the allocation of the transaction price to each performance obligation is calculated using a budgeted cost-plus margin approach. Due to the complex nature of these contracts, there is significant judgment in allocating the transaction price. These estimates are periodically reviewed by project managers, engineers, and other staff involved to ensure estimates are appropriate. For items sold separately, including hardware, software, professional services, maintenance contracts, other services, and third-party service contracts, there is no allocation performed as there is one performance obligation. Contract Assets and Liabilities When the Company has performed work but does not have an unconditional right to payment, a contract asset is recorded. When the Company has the right to bill a customer, accounts receivable is recorded as an unconditional right exists. Current contract assets were $646 thousand and $1.2 million as of December 31, 2018 and October 1, 2018, respectively. The current portion is recorded in other current assets on the consolidated balance sheets. There were no non-current contract assets as of December 31, 2018 and October 1, 2018. Contract assets that became unconditional during the period ended December 31, 2018 and reclassified as a receivable were $918 thousand. Contract liabilities arise when payment is received before the Company transfers a good or service to the customer. Current contract liabilities were $738 thousand and $1.1 million as of December 31, 2018 and October 1, 2018, respectively. The current portion is recorded in deferred revenue on the consolidated balance sheets. There were no non-current contract liabilities as of December 31, 2018 and October 1, 2018, respectively. Revenue recognized in the first quarter of fiscal 2019 that was included in contract liabilities as of the beginning of the period was $1.6 million. Contract Costs Incremental costs of obtaining a contract involving customer transactions where the revenue and the related transfer of goods and services are less than a one-year period, are expensed as incurred, utilizing the practical expedient in ASC 340-40-25-4. For a period greater than one year, incremental contract costs are capitalized if the Company expects to recover these costs. These costs are only capitalized if the contract is obtained. The costs are amortized over the contract term and expected renewal periods. The period of amortization is generally three to six years. Incremental costs are related to commissions in the TS portion of the business. Current capitalized contract costs are within the account other current assets on the consolidated balance sheets for the periods ended December 31, 2018 and September 30, 2018. The portion of current capitalized costs was $48 thousand and $71 thousand as of December 31, 2018 and October 1, 2018, respectively. There are no non-current capitalized costs on the consolidated balance sheets. The amount of incremental costs amortized for the three months ended December 31, 2018 was $52 thousand, which is recorded in selling, general, and administrative expenses. There was no impairment related to incremental costs capitalized. Costs to fulfill a contract are capitalized when the costs are related to a contract or anticipated contract, generate or enhance resources that will be used in satisfying performance obligations in the future, and costs are recoverable. Costs to fulfill a contract are related to the TS portion of the business and involve activities performed before managed services can be completed. Current capitalized fulfillment costs are within the account other current assets on the consolidated balance sheets. The portion of current capitalized costs was $59 thousand and $56 thousand as of December 31, 2018 and October 1, 2018, respectively. There are no non-current capitalized fulfillment costs on the consolidated balance sheets. The amount of fulfillment costs amortized for the three months ended December 31, 2018 was $3 thousand, which is recorded in cost of sales. There was no impairment related to fulfillment costs capitalized. Other Projects are typically billed upon completion or at certain milestones. Product and services are typically billed when shipped or as services are being performed. Payment terms are typically 30 days to pay in full except in Europe where it could be up to 90 days. Most of the Company’s contracts are less than one year. As a practical expedient, the Company has elected not to adjust the amount of consideration for effects of a significant financing component when it is anticipated the promised good or service will be transferred and the subsequent payment will be one year or less. The Company elected to use the optional exemption to not disclose the aggregate amount of the transaction price allocated to performance obligations that have an original expected duration of one year or less. This is due to a low amount of performance obligations less than one year being unsatisfied at each period end. Most of these contracts are related to product sales. The Company has certain contracts that have an original term of more than one year. The royalty agreement is longer than one year and managed service contracts are longer than one year. For these contracts the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied or partially unsatisfied as of December 31, 2018 is $6.3 million. This revenue is expected to be recognized over 5 years and relates mainly to managed service contracts. |
Earnings Per Share of Common Stock |
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Earnings Per Share of Common Stock | Earnings Per Share of Common Stock Basic net income (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income (loss) 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 (loss) 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 (loss) attributable to common stockholders are as follows:
Non-vested restricted stock awards of 170,000 shares were excluded from the diluted loss per share calculation for the three months ended December 31, 2017, as there was a net loss and their inclusion would have been anti-dilutive. |
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 $1.2 million and $0.7 million as of December 31, 2018 and September 30, 2018, respectively. Total inventory balances in the table above are shown net of reserves for obsolescence of approximately $3.4 million and $3.3 million as of December 31, 2018 and September 30, 2018, respectively. |
Deferred Costs (Notes) |
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Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Deferred Costs Deferred costs are included in other current assets on the consolidated balance sheets and represent costs of labor, third party maintenance and support contracts, and outside consultants related to transactions where the revenue recognition criteria has not been met. |
Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows:
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Income Taxes (Notes) |
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Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense was $2 thousand for the three months ended December 31, 2018 compared to income tax expense of $1.2 million in the same period of 2017 due primarily to the enactment of the Tax Cuts and Jobs Act. The income tax expense for the three months ended December 31, 2018 was due to the tax expense related to FASB Interpretation No. 48 ("FIN 48") Accounting for Uncertainties in Income Taxes. The U.K. did not have any tax expense in the first quarter of fiscal year 2019 due to the utilization of a portion of its net tax operating loss. The provisions above are estimates, and accordingly, changes to these estimates will be recorded in subsequent periods as more information and guidance becomes available. |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Retirement Plans | Pension and Retirement Plans The Company's continuing operations has defined benefit and defined contribution plans in the U.K. and in the U.S. The Company's discontinued operations had a defined benefit and defined contribution plan in Germany, which was assumed by Reply AG in its acquisition of the Company's operations in Germany (see Note 13 below). In the U.K., the Company provides defined benefit pension plans and defined contribution plans for some of its employees. In the U.S., the Company provides benefits through supplemental retirement plans to certain former employees. The U.S. supplemental retirement plans have life insurance policies which are not plan assets but were purchased by the Company as a vehicle to fund the costs of the plan. The Company also provides for officer death benefits through post-retirement plans to certain officers of the Company in the U.S. All of the Company’s defined benefit plans are closed to newly hired employees and have been since September 2009. 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. The Company's pension plan in the U.K. is the only plan with plan assets. The plan assets consist of an investment in a commingled fund which in turn comprises a diversified mix of assets including corporate equity securities, government securities and corporate debt securities. The components of net periodic benefit costs related to the U.S. and international plans are as follows:
The fair value of the assets held by the U.K. pension plan by asset category are as follows:
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Segment Information | Segment Information The following tables present certain operating segment information for the three months ended December 31, 2018 and December 31, 2017.
Income (loss) from operations consists of sales less cost of sales, engineering and development expenses, and selling, general and administrative expenses but is not affected by either other income/expense or by income taxes expense. Non-operating charges/income consists principally of investment income and interest expense. All intercompany transactions have been eliminated. The following table lists customers from which the Company derived revenues in excess of 10% of total revenues from continuing operations for the three months ended December 31, 2018, and 2017.
Accounts receivable from Customer A was less than 10% of total consolidated accounts receivable as of December 31, 2018 and September 30, 2018. One additional customer, Customer B, accounted for accounts receivable of 10% or more as of December 31, 2018, but did not account for revenue of 10% or more for the three months ended December 31, 2018. Accounts receivable from Customer B totaled approximately $2.0 million, or 12%, and approximately $0.2 million, or 2%, of total consolidated accounts receivable as of December 31, 2018 and September 30, 2018, respectively. We believe that the Company is not exposed to any significant credit risk with respect to the accounts receivable with these customers as of December 31, 2018. |
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Equity [Abstract] | |
Dividend | Dividends On December 27, 2018, the Company's board of directors declared a cash dividend of $0.15 per share which was paid on January 22, 2019 to shareholders of record as of January 7, 2019, the record date. |
Recent Accounting Pronouncements |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting standards recently adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied. The standard also requires new, expanded disclosures regarding revenue recognition. The ASU replaces most existing revenue recognition guidance in GAAP. The new standard was adopted by the Company effective October 1, 2018 using the modified retrospective approach only to contracts that were not completed as of adoption date. The Company recognized the cumulative effect of initial application as an adjustment to the opening balance of retained earnings. This resulted in an increase of $158 thousand to retained earnings as of October 1, 2018. This was primarily due to revenue related to customer support in the HPP segment no longer being deferred, which resulted in a decrease of deferred revenue as part of the cumulative effect. Additionally, revenue from software sales is no longer being deferred under ASC 606 as recognition is now when control transfers to the customer. There were no previous period financial statement adjustments. The effects of ASC 606 adoption for the Company for the condensed consolidated statements of operations and balance sheets are as follows:
In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, an amendment of the FASB Accounting Standards Codification. This ASU will reduce diversity in practice for classifying cash payments and receipts in the statement of cash flows for a number of common transactions. It will also clarify when identifiable cash flows should be separated versus classified based on their predominant source or use. This ASU is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Beginning October 1, 2018, the Company adopted the ASU and it did not have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, an amendment of the FASB Accounting Standards Codification. This ASU requires the seller and buyer to recognize at the transaction date the current and deferred income tax consequences of intercompany asset transfers (except transfers of inventory). Under current GAAP, the seller and buyer defer the consolidated tax consequences of an intercompany asset transfer from the period of the transfer to a future period when the asset is transferred out of the consolidated group, or otherwise affects consolidated earnings. This standard will cause volatility in companies’ effective tax rates, particularly for those that transfer intangible assets to foreign subsidiaries. For public entities, the new standard is effective for annual and interim periods in fiscal years beginning after December 15, 2017. Beginning October 1, 2018, the Company adopted the ASU and it did not have a material impact on our consolidated financial statements. In January 2017, FASB issued ASU No. 2017-01, Business Combinations Clarifying the Definition of a Business (Topic 805) (“ASU No. 2017-01”). ASU 2017-01 provides a framework to use in determining when a set of assets and activities is a business. ASU 2017-01 provides more consistency in applying the business combination guidance, reduces the costs of application, and makes the definition of a business more operable. ASU 2017-01 is effective for interim and annual periods within those annual periods beginning after December 15, 2017. Beginning October 1, 2018, the Company adopted the ASU and it did not have a material impact on our consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, an amendment of the FASB Accounting Standards Codification. This ASU requires employers that sponsor defined benefit pension and/or other post-retirement benefit plans to report the service cost component of net benefit cost in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Employers are required to present the other components of net benefit costs in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component of net periodic pension cost will be eligible for asset capitalization. For public entities, the new standard is effective for annual periods beginning after December 15, 2017, including interim periods within that annual period. This ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. Beginning October 1, 2018, the Company adopted the ASU and it did not have a material impact on our consolidated financial statements. New accounting standards not adopted as of December 31, 2018 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), an amendment of the FASB Accounting Standards Codification. This ASU requires lessees to recognize a right-of-use asset and lease liability for most lease arrangements. The new standard is effective for the Company on October 1, 2019. The standard mandates a modified retrospective transition method for all entities and early adoption is permitted. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allow a reclassification from accumulated other comprehensive income (loss) (“AOCI”) to retained earnings for stranded tax effects resulting from the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts at the date of enactment of the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”). The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is evaluating the effect that ASU 2018-02 will have on its consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting, an amendment of the FASB Accounting Standards Codification. Under this ASU companies will no longer be required to value non-employee awards differently from employee awards, but the accounting remains different for attribution and a contractual term election for valuing nonemployee equity share options. Equity-classified awards to nonemployees will now be measured at the grant date using fair value of the equity instruments the company is obligated to issue and recognition is associated with the probable outcome. Awards are subsequently measured using stock compensation guidance unless they are modified after the nonemployee stops providing goods or services. Existing disclosure requirements within the stock compensation guidance also apply to nonemployee awards. For public entities, the new standard is effective for annual periods beginning after December 15, 2018, including interim periods within that fiscal year. The Company is evaluating the effect that ASU 2018-07 will have on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20), Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans, an amendment of the FASB Accounting Standards Codification. Under this ASU existing disclosures not considered cost beneficial are removed, disclosures identified as relevant are added, and there is added clarification regarding specific existing disclosures. For public entities, the new standard is effective for annual periods beginning after December 15, 2020. The Company is evaluating the effect that ASU 2018-14 will have on its consolidated financial statements and related disclosures. |
Discontinued Operations of TS Segment (Notes) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations of TS Segment | Discontinued Operations of TS Segment On July 31, 2018, CSPi LTD, a wholly owned indirect subsidiary of the Company, completed its sale of all of the outstanding stock of Modcomp GmbH, to Reply AG, an affiliate of Reply SpA, a holding company for a worldwide group of companies, pursuant to the terms of a Share Purchase and Assignment Agreement dated June 27, 2018. Modcomp GmbH, dba CSPI GmbH, through itself and its wholly owned subsidiaries, provided managed security services to customers primarily in Germany. Upon the closing of the Share Purchase Agreement, Reply AG paid to CSPI total cash at closing of approximately $14.4 million, which consisted of the original purchase price of $11.7 million plus an adjustment at closing for Net Cash (as defined in the Share Purchase Agreement) of approximately $2.7 million. An additional €400 thousand is included in escrow and will be recorded if and when received by the Company. Accordingly, CSPi determined that the assets and liabilities of this reportable segment met the discontinued operations criteria in U.S. GAAP in the year ended September 30, 2018. The gain recorded due to the sale of all the stock of Modcomp GmbH was approximately $16.8 million. No income taxes were provided as the transaction was a tax-free exchange in the U.K. As such, Modcomp GmbH's results have been recorded as discontinued operations in the accompanying consolidated balance sheets and consolidated statements of operations for all periods presented. Summarized Discontinued Operations Financial Information The following table summarizes the results of discontinued operations for the three months ended December 31, 2018, and December 31, 2017.
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Revenue (Tables) |
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Schedule of Disaggregated Revenue | See disaggregated revenues below by products/services and geography.
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Earnings Per Share of Common Stock (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 (loss) attributable to common stockholders are as follows:
|
Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | Inventories consist of the following:
|
Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive loss are as follows:
|
Pension and Retirement Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [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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Schedule of Net Benefit Costs | The components of net periodic benefit costs related to the U.S. and international plans are as follows:
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Segment Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segment Information | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments | The following tables present certain operating segment information for the three months ended December 31, 2018 and December 31, 2017.
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Revenues in Excess of 10 Percent of Total Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments | The following table lists customers from which the Company derived revenues in excess of 10% of total revenues from continuing operations for the three months ended December 31, 2018, and 2017.
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Recent Accounting Pronouncements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The effects of ASC 606 adoption for the Company for the condensed consolidated statements of operations and balance sheets are as follows:
|
Discontinued Operations of TS Segment (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations | The following table summarizes the results of discontinued operations for the three months ended December 31, 2018, and December 31, 2017.
|
Revenue - Narrative (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
|
Capitalized Contract Cost [Line Items] | ||
Managed service contracts, right to refund, period | 30 days | |
Current contract assets | $ 646,000 | $ 1,200,000 |
Contract assets that become unconditional and reclassified as a receivable | 918,000 | |
Current contract liabilities | 738,000 | 1,100,000 |
Revenue recognized included in contract liabilities | 1,600,000 | |
Incremental costs amortized | 52,000 | |
Current capitalized costs | 48,000 | 71,000 |
Impairment related to incremental costs capitalized | $ 0 | |
Payments terms | 30 days | |
Performance obligations unsatisfied or partially unsatisfied | $ 6,300,000 | |
Revenue expected to be recognized, period | 5 years | |
Europe | ||
Capitalized Contract Cost [Line Items] | ||
Payments terms | 90 days | |
Total | ||
Capitalized Contract Cost [Line Items] | ||
Incremental costs amortized | $ 3,000 | |
Current capitalized costs | 59,000 | $ 56,000 |
Impairment related to incremental costs capitalized | $ 0 |
Earnings Per Share of Common Stock (Detail) |
3 Months Ended |
---|---|
Dec. 31, 2018
shares
| |
Earnings Per Share [Abstract] | |
Weighted Average Number Diluted Shares Outstanding Adjustment | 170,000 |
Inventories (Detail) - USD ($) $ in Millions |
Dec. 31, 2018 |
Sep. 30, 2018 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods inventory that has been shipped, but for which all revenue recognition criteria has not been met | $ 1.2 | $ 0.7 |
Reservce for obsolescence | $ 3.4 | $ 3.3 |
Inventories (Detail) - Inventories - USD ($) $ in Thousands |
Dec. 31, 2018 |
Sep. 30, 2018 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 898 | $ 1,098 |
Work-in-process | 280 | 226 |
Finished goods | 5,612 | 6,234 |
Total | $ 6,790 | $ 7,558 |
Accumulated Other Comprehensive Loss (Detail) - Components of Accumulated Other Comprehensive Loss - USD ($) $ in Thousands |
Dec. 31, 2018 |
Sep. 30, 2018 |
---|---|---|
Equity [Abstract] | ||
Cumulative effect of foreign currency translation | $ (4,516) | $ (4,346) |
Cumulative unrealized loss on pension liability | (6,479) | (6,479) |
Accumulated other comprehensive loss | $ (10,995) | $ (10,825) |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Income Taxes [Abstract] | ||
Income tax expense | $ 2 | $ 1,153 |
Segment Information (Detail) - Major customers - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2018 |
|
Segment Reporting Information [Line Items] | |||
Segment Reporting, Disclosure of Major Customers | 0.1 | .1 | |
percent of accounts receivable | 10.00% | 10.00% | |
Customer A | |||
Segment Reporting Information [Line Items] | |||
Amount (in Dollars) | $ 0.1 | $ 2.0 | |
% of Total Revenues | 1.00% | 12.00% | |
Customer B | |||
Segment Reporting Information [Line Items] | |||
Accounts Receivable, Gross | $ 2.0 | $ 0.2 | |
concentration risk, percentage, accounts receivable | 12.00% | 2.00% |
Dividend (Detail) |
3 Months Ended |
---|---|
Dec. 31, 2018
$ / shares
| |
Equity [Abstract] | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.15 |
Dividends per share | $ 0.15 |
Discontinued Operations of TS Segment (Details) - Modcom GmbH € in Thousands, $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Jul. 31, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Jul. 31, 2018
EUR (€)
|
Jul. 31, 2018
USD ($)
|
|
Disposal Group, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash at closing | $ 14,400 | ||||
Original purchase price | 11,700 | ||||
Adjustment at closing | $ 2,700 | ||||
Amount in escrow | € | € 400 | ||||
Gain recorded due to sale of stock | $ 16,800 | ||||
Discontinued Operations, Held-for-sale | |||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||
Sales | $ 0 | $ 5,369 | |||
Cost of sales | 0 | 4,599 | |||
Gross profit | 0 | 770 | |||
Selling, general and administrative expenses | 0 | 928 | |||
Operating loss | 0 | (158) | |||
Other expenses | 0 | (98) | |||
Loss before income taxes | 0 | (256) | |||
Income tax benefit | 0 | (51) | |||
Loss from discontinued operations, net of tax | $ 0 | $ (205) |
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