XML 30 R19.htm IDEA: XBRL DOCUMENT v3.6.0.2
Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Components of Deferred Profit
The components of deferred profit are as follows:
 
 
December 31,
2016
 
September 30,
2016
 
(dollars in thousands)
Deferred revenues
$
8,164

 
$
7,029

Deferred costs
4,352

 
2,320

Deferred profit
$
3,812

 
$
4,709
Schedule of Inventory
The components of inventories are as follows:
 
 
December 31,
2016
 
September 30,
2016
 
(dollars in thousands)
Purchased parts and raw materials
$
12,148

 
$
12,435

Work-in-process
5,832

 
7,044

Finished goods
2,873

 
3,744

 
$
20,853

 
$
23,223
Property, Plant and Equipment
The following is a summary of property, plant and equipment:
 
 
December 31,
2016
 
September 30,
2016
 
(dollars in thousands)
Land, building and leasehold improvements
$
17,799

 
$
18,255

Equipment and machinery
8,749

 
9,056

Furniture and fixtures
5,199

 
5,426

 
31,747

 
32,737

Accumulated depreciation and amortization
(16,457
)
 
(16,777
)
 
$
15,290

 
$
15,960
Activity in Goodwill
The following is a summary of activity in goodwill:

 
Solar
 
Semiconductor
 
Polishing
 
Total
 
(dollars in thousands)
   Goodwill
$
6,597

 
$
5,063

 
$
728

 
$
12,388

   Accumulated impairment losses
(1,269
)
 
—

 
—

 
(1,269
)
Carrying value at September 30, 2016
5,328

 
5,063

 
728

 
11,119

Net foreign exchange differences
(330
)
 
—

 
—

 
(330
)
Carrying value at December 31, 2016
$
4,998

 
$
5,063

 
$
728

 
$
10,789

 
 
 
 
 
 
 
 
   Goodwill
$
6,177

 
$
5,063

 
$
728

 
$
11,968

   Accumulated impairment losses
(1,179
)
 
—

 
—

 
(1,179
)
Carrying value at December 31, 2016
$
4,998

 
$
5,063

 
$
728

 
$
10,789
Summary of Intangibles
The following is a summary of intangibles:
 
 
Useful Life
 
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
 
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
 
 
 
December 31, 2016
 
September 30, 2016
 
 
 
(dollars in thousands)
Customer lists
6-10 years
 
$
2,387

$
(1,172
)
$
1,215

 
$
2,432

$
(1,164
)
$
1,268

Technology
5-10 years
 
3,014

(1,576
)
1,438

 
3,214

(1,678
)
1,536

Trade names
10-15 years
 
1,441

(200
)
1,241

 
1,455

(219
)
1,236

Other
2-10 years
 
260

(239
)
21

 
277

(217
)
60

 
 
 
$
7,102

$
(3,187
)
$
3,915

 
$
7,378

$
(3,278
)
$
4,100
Summary of Activity in Accrued Warranty Expense
The following is a summary of activity in accrued warranty expense:
 
 
Three Months Ended December 31,
 
2016
 
2015
 
(dollars in thousands)
Beginning balance
$
795

 
$
793

Additions for warranties issued during the period
383

 
146

Reductions in the liability for payments made under the warranty
(27
)
 
(109
)
Changes related to pre-existing warranties
(245
)
 
(54
)
Currency translation adjustment
(27
)
 
(10
)
Ending balance
$
879

 
$
766
Effects of Share-based Compensation Expense
Stock-based compensation expense reduced the Company’s results of operations by the following amounts:
 
 
 
Three Months Ended December 31,
 
 
2016
 
2015
 
 
(dollars in thousands)
Effect on income before income taxes (1)
 
$
(319
)
 
$
(342
)
Effect on income taxes
 
35

 
48

Effect on net income
 
$
(284
)
 
$
(294
)
 
(1)
Stock-based compensation expense is included in selling, general and administrative expenses.
Stock Option Transactions and Options Outstanding
Stock option transactions and the options outstanding are summarized as follows:
 
 
Three Months Ended December 31,
 
2016
 
2015
 
Options
 
Weighted
Average
Exercise
Price
 
Options
 
Weighted
Average
Exercise
Price
Outstanding at beginning of period
1,841,567

 
$
8.15

 
1,627,477

 
$
9.11

Granted
100,000

 
4.99

 
344,075

 
5.25

Exercised
(180
)
 
3.80

 
—

 
—

Forfeited
(55,446
)
 
13.34

 
(33,642
)
 
14.90

Outstanding at end of period
1,885,941

 
$
7.84

 
1,937,910

 
$
8.34

 
 
 
 
 
 
 
 
Exercisable at end of period
1,375,174

 
$
8.26

 
1,189,855

 
$
9.21

Weighted average fair value of options
granted during the period
$
2.88

 
 
 
$
3.03

 
 
Options Fair Value Assumptions
The fair value of options was estimated at the applicable grant date using the Black-Scholes option pricing model with the following assumptions:
 
 
Three Months Ended December 31,
 
2016
 
2015
Risk free interest rate
2%
 
2%
Expected life
6 years
 
6 years
Dividend rate
0%
 
0%
Volatility
62%
 
62%
Restricted Stock Transactions and Awards Outstanding
Restricted stock transactions and awards outstanding are summarized as follows:
 
 
Three Months Ended December 31,
 
2016
 
2015
 
Awards
 
Weighted
Average
Grant Date
Fair Value
 
Awards
 
Weighted
Average
Grant Date
Fair Value
Beginning Outstanding
—

 
$
—

 
13,540

 
$
7.98

Released
—

 
—

 
(13,540
)
 
7.98

Ending Outstanding
—

 
$
—

 
—

 
$
—
Research and Development Expense and Grants Earned
The table below shows gross research and development expenses and grants earned:
 
 
 
Three Months Ended
 
 
December 31,
2016
 
December 31,
2015
 
 
(dollars in thousands)
Research, development and engineering
 
$
1,830

 
$
2,615

Grants earned
 
(203
)
 
(327
)
    Net research, development and engineering
 
$
1,627

 
$
2,288