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Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Components of Deferred Profit
The components of deferred profit are as follows:
 
 
March 31,
2017
 
September 30,
2016
 
(dollars in thousands)
Deferred revenues
$
9,462

 
$
7,029

Deferred costs
4,453

 
2,320

Deferred profit
$
5,009

 
$
4,709
Schedule of Inventory
The components of inventories are as follows:
 
 
March 31,
2017
 
September 30,
2016
 
(dollars in thousands)
Purchased parts and raw materials
$
12,407

 
$
12,435

Work-in-process
5,751

 
7,044

Finished goods
2,620

 
3,744

 
$
20,778

 
$
23,223
Property, Plant and Equipment
The following is a summary of property, plant and equipment:
 
 
March 31,
2017
 
September 30,
2016
 
(dollars in thousands)
Land, building and leasehold improvements
$
17,970

 
$
18,255

Equipment and machinery
8,795

 
9,056

Furniture and fixtures
5,213

 
5,426

 
31,978

 
32,737

Accumulated depreciation and amortization
(16,964
)
 
(16,777
)
 
$
15,014

 
$
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
(252
)
 
—

 
—

 
(252
)
Carrying value at March 31, 2017
$
5,076

 
$
5,063

 
$
728

 
$
10,867

 
 
 
 
 
 
 
 
   Goodwill
$
6,277

 
$
5,063

 
$
728

 
$
12,068

   Accumulated impairment losses
(1,201
)
 
—

 
—

 
(1,201
)
Carrying value at March 31, 2017
$
5,076

 
$
5,063

 
$
728

 
$
10,867
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
 
 
 
March 31, 2017
 
September 30, 2016
 
 
 
(dollars in thousands)
Customer lists
6-10 years
 
$
2,398

$
(1,271
)
$
1,127

 
$
2,432

$
(1,164
)
$
1,268

Technology
5-10 years
 
3,062

(1,678
)
1,384

 
3,214

(1,678
)
1,536

Trade names
10-15 years
 
1,444

(226
)
1,218

 
1,455

(219
)
1,236

Other
2-10 years
 
264

(253
)
11

 
277

(217
)
60

 
 
 
$
7,168

$
(3,428
)
$
3,740

 
$
7,378

$
(3,278
)
$
4,100
Summary of Activity in Accrued Warranty Expense
The following is a summary of activity in accrued warranty expense:
 
 
Six Months Ended March 31,
 
2017
 
2016
 
(dollars in thousands)
Beginning balance
$
795

 
$
793

Additions for warranties issued during the period
683

 
430

Reductions in the liability for payments made under the warranty
(160
)
 
(382
)
Changes related to pre-existing warranties
(414
)
 
3

Currency translation adjustment
(19
)
 
15

Ending balance
$
885

 
$
859
Effects of Share-based Compensation Expense
Stock-based compensation expense reduced our results of operations by the following amounts:
 
 
Three Months Ended March 31,
 
Six Months Ended March 31,
 
2017
 
2016
 
2017
 
2016
 
(dollars in thousands)
 
(dollars in thousands)
Effect on income before income taxes (1)
$
(305
)
 
$
(366
)
 
$
(624
)
 
$
(708
)
Effect on income taxes
35

 
51

 
70

 
98

Effect on net income
$
(270
)
 
$
(315
)
 
$
(554
)
 
$
(610
)
 
(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:
 
 
Six Months Ended March 31,
 
2017
 
2016
 
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
145,000

 
5.23

 
350,075

 
5.25

Exercised
(21,155
)
 
4.46

 
(9,188
)
 
3.27

Forfeited
(67,453
)
 
12.27

 
(62,116
)
 
13.87

Outstanding at end of period
1,897,959

 
$
7.83

 
1,906,248

 
$
8.29

 
 
 
 
 
 
 
 
Exercisable at end of period
1,357,459

 
$
8.32

 
1,170,018

 
$
9.16

Weighted average fair value of options
granted during the period
$
3.04

 
 
 
$
3.04

 
 
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:
 
 
Six Months Ended March 31,
 
2017
 
2016
Risk free interest rate
2%
 
2%
Expected life
6 years
 
6 years
Dividend rate
0%
 
0%
Volatility
63%
 
63%
Restricted Stock Transactions and Awards Outstanding
Restricted stock transactions and awards outstanding are summarized as follows:
 
 
Six Months Ended March 31,
 
2017
 
2016
 
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
 
Six Months Ended
 
March 31,
2017
 
March 31,
2016
 
March 31,
2017
 
March 31,
2016
 
(dollars in thousands)
 
(dollars in thousands)
Research, development and engineering
$
1,943

 
$
2,525

 
$
3,773

 
$
5,139

Grants earned
(408
)
 
(365
)
 
(610
)
 
(692
)
    Net research, development and engineering
$
1,535

 
$
2,160

 
$
3,163

 
$
4,447