Basis of Presentation (Tables)

6 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Deferred Revenue, by Arrangement, Disclosure

The components of deferred profit are as follows:

	March 31, 2013		September 30, 2012
	(dollars in thousands)
Deferred revenues	$	5,635	$	11,200
Deferred costs	581		964
Deferred profit	$	5,054	$	10,236

Schedule of Inventory, Current

The components of inventories are as follows:

	March 31, 2013		September 30, 2012
	(dollars in thousands)
Purchased parts and raw materials	$	16,747	$	19,644
Work-in-process	4,528		2,328
Finished goods	3,654		3,698
	$	24,929	$	25,670

Property, Plant and Equipment

The following is a summary of property, plant and equipment:

	March 31, 2013			September 30, 2012
	(dollars in thousands)
Land, building and leasehold improvements	$	10,465		$	10,476
Equipment and machinery	7,383			7,272
Furniture and fixtures	5,455			5,458
	23,303			23,206
Accumulated depreciation and amortization	(11,786		)	(10,819		)
	$	11,517		$	12,387

Schedule of Goodwill

The following is a summary of activity in goodwill:

	Six Months Ended March 31,
	2013			2012
	(dollars in thousands)
Beginning balance	$	8,355		$	13,313
Change in foreign exchange rates	(7		)	(77		)
Ending balance	$	8,348		$	13,236

Schedule of Finite-Lived Intangible Assets

The following is a summary of intangibles:

	Useful Life	March 31, 2013			September 30, 2012
		(dollars in thousands)
Non-compete agreements	4-8 years	$	1,056		$	1,057
Customer lists	10 years	825			828
Technology	5-10 years	2,336			2,341
In-process research and development	(1)	1,600			1,600
Other	2-10 years	324			325
		6,141			6,151
Accumulated amortization		(2,394		)	(2,055		)
		$	3,747		$	4,096

(1) The in-process research and development will be amortized over its useful life when it has reached technological feasibility.

Schedule of Product Warranty Liability

The following is a summary of activity in accrued warranty expense:

	Six Months Ended March 31,
	2013			2012
	(dollars in thousands)
Beginning balance	$	2,687		$	2,265
Warranty expenditures	(791		)	(658		)
Warranty expense	169			1,079
Ending balance	$	2,065		$	2,686

Effects of share-based compensation expense

Share-based compensation expense reduced the Company’s results of operations by the following amounts:

	Three Months Ended March 31,						Six Months Ended March 31,
	2013			2012			2013			2012
	(dollars in thousands)						(dollars in thousands)
Effect on income before income taxes (1)	$	(327	)	$	(437	)	$	(758	)	$	(903	)
Effect on income taxes	41			63			100			138
Effect on net income	$	(286	)	$	(374	)	$	(658	)	$	(765	)

(1) Stock-based compensation expense is included in selling, general and administrative expenses.

Schedule of Share-based Compensation, Stock Options, Activity

Stock option transactions and the options outstanding are summarized as follows:

	Six Months Ended March 31,
	2013					2012
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding at beginning of period	891,293			$	9.37	611,384			$	10.02
Granted	312,850			2.95		285,400			7.98
Exercised	—			—		(600		)	5.33
Forfeited	(2,255		)	7.77		—			—
Outstanding at end of period	1,201,888			$	7.71	896,184			$	9.38
Exercisable at end of period	597,245			$	9.19	370,664			$	9.10
Weighted average fair value of options granted during the period	$	1.82				$	4.95

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of options was estimated at the grant date using the Black-Scholes option pricing model with the following assumptions:

	Six Months Ended March 31,
	2013	2012
Risk free interest rate	1%	1%
Expected life	6 years	6 years
Dividend rate	0%	0%
Volatility	70%	70%

Schedule of Share-based Compensation, Restricted Stock Activity

Restricted stock transactions and awards outstanding are summarized as follows:

	Six Months Ended March 31,
	2013				2012
	Awards		Weighted Average Grant Date Fair Value		Awards		Weighted Average Grant Date Fair Value
Beginning Outstanding	127,975		$	9.06	120,970		$	9.42
Awarded	—		—		60,600		7.98
Released	(55,646	)	7.65		(47,014	)	8.53
Forfeited	(50	)	7.98		—		—
Ending Outstanding	72,279		$	10.15	134,556		$	9.09

Research and Development Expense

The table below shows gross research and development expenses and grants earned:

	Three Months Ended						Six Months Ended
	March 31, 2013			March 31, 2012			March 31, 2013			March 31, 2012
	(dollars in thousands)						(dollars in thousands)
Research and development	$	2,184		$	3,408		$	4,643		$	6,246
Grants earned	(238		)	(109		)	(1,535		)	(194		)
Net research and development	$	1,946		$	3,299		$	3,108		$	6,052