Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 27, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | TRANSACT TECHNOLOGIES INC | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 7,784,804 | ||
Entity Public Float | $82,400,000 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 1017303 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
TRANSACT_TECHNOLOGIES_INCORPOR
TRANSACT TECHNOLOGIES INCORPORATED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||
Cash and cash equivalents | $3,131,000 | $2,936,000 |
Accounts receivable, net | 9,094,000 | 13,234,000 |
Inventories | 11,806,000 | 13,509,000 |
Prepaid income taxes | 409,000 | 390,000 |
Deferred tax assets | 3,068,000 | 1,655,000 |
Other current assets | 489,000 | 497,000 |
Total current assets | 27,997,000 | 32,221,000 |
Fixed assets, net | 2,438,000 | 2,732,000 |
Goodwill | 2,621,000 | 2,621,000 |
Deferred tax assets | 1,068,000 | 920,000 |
Intangible assets, net of accumulated amortization of $2,326 and $1,811, respectively | 1,341,000 | 1,856,000 |
Other assets | 26,000 | 58,000 |
7,494,000 | 8,187,000 | |
Total assets | 35,491,000 | 40,408,000 |
Current liabilities: | ||
Accounts payable | 2,365,000 | 4,749,000 |
Accrued liabilities | 3,320,000 | 2,215,000 |
Income taxes payable | 13,000 | 26,000 |
Accrued contingent consideration (Note 3) | 60,000 | |
Accrued lawsuit settlement expenses (Note 11) | 3,625,000 | |
Deferred revenue | 313,000 | 300,000 |
Total current liabilities | 9,636,000 | 7,350,000 |
Deferred revenue, net of current portion | 64,000 | 103,000 |
Deferred rent, net of current portion | 172,000 | 244,000 |
Other liabilities | 225,000 | 190,000 |
461,000 | 537,000 | |
Total liabilities | 10,097,000 | 7,887,000 |
Shareholders’ equity: | ||
Common stock, $0.01 par value, 20,000,000 authorized at December 31, 2014 and 2013; 11,122,293 and 11,106,354 shares issued; 7,900,257 and 8,319,316 shares outstanding, at December 31, 2014 and 2013, respectively | 111,000 | 111,000 |
Additional paid-in capital | 28,167,000 | 27,674,000 |
Retained earnings | 22,349,000 | 27,326,000 |
Accumulated other comprehensive loss, net of tax | -72,000 | -63,000 |
Treasury stock, 3,222,036 and 2,787,038 shares, at cost | -25,161,000 | -22,527,000 |
Total shareholders’ equity | 25,394,000 | 32,521,000 |
Total liabilities and shareholders’ equity | $35,491,000 | $40,408,000 |
TRANSACT_TECHNOLOGIES_INCORPOR1
TRANSACT TECHNOLOGIES INCORPORATED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accumulated amortization (in Dollars) | $2,326 | $1,811 |
Common stock par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 11,122,293 | 11,106,354 |
Common stock, shares outstanding | 7,900,257 | 8,319,316 |
Treasury shares | 3,222,036 | 2,787,038 |
Series A Preferred Stock [Member] | ||
Preferred stock par value (in Dollars per share) | $0.01 | $0.01 |
TRANSACT_TECHNOLOGIES_INCORPOR2
TRANSACT TECHNOLOGIES INCORPORATED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (USD $) | 12 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales | $53,108,000 | $60,141,000 | $68,386,000 |
Cost of sales | 31,397,000 | 35,049,000 | 42,404,000 |
Gross profit | 21,711,000 | 25,092,000 | 25,982,000 |
Operating expenses: | |||
Engineering, design and product development | 4,302,000 | 4,065,000 | 4,239,000 |
Selling and marketing | 7,920,000 | 7,346,000 | 6,637,000 |
General and administrative | 7,756,000 | 6,588,000 | 7,833,000 |
Legal fees and settlement expenses associated with lawsuit (Note 11) | 5,505,000 | 476,000 | 1,533,000 |
Business consolidation and restructuring (Note 8) | 138,000 | ||
25,483,000 | 18,475,000 | 20,380,000 | |
Operating income (loss) | -3,772,000 | 6,617,000 | 5,602,000 |
Interest and other income (expense): | |||
Interest expense | -61,000 | -64,000 | -61,000 |
Interest income | 12,000 | 41,000 | 67,000 |
Other, net | -33,000 | -63,000 | -23,000 |
-82,000 | -86,000 | -17,000 | |
Income (loss) before income taxes | -3,854,000 | 6,531,000 | 5,585,000 |
Income tax (benefit) provision | -1,433,000 | 1,596,000 | 1,964,000 |
Net (loss) income | ($2,421,000) | $4,935,000 | $3,621,000 |
Net income(loss) per common share: | |||
Basic (in Dollars per share) | ($0.29) | $0.57 | $0.40 |
Diluted (in Dollars per share) | ($0.29) | $0.57 | $0.40 |
Shares used in per-share calculation: | |||
Basic (in Shares) | 8,307 | 8,589 | 9,032 |
Diluted (in Shares) | 8,307 | 8,703 | 9,121 |
Dividends declared and paid per common share: (in Dollars per share) | $0.31 | $0.27 | $0.06 |
TRANSACT_TECHNOLOGIES_INCORPOR3
TRANSACT TECHNOLOGIES INCORPORATED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands, except share data) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net (loss) income | ($2,421) | $4,935 | $3,621 |
Foreign currency translation adjustment, net of tax | -9 | -8 | 16 |
Comprehensive (loss) income | ($2,430) | $4,927 | $3,637 |
TRANSACT_TECHNOLOGIES_INCORPOR4
TRANSACT TECHNOLOGIES INCORPORATED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERSb EQUITY (In thousands, except share data) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Period End Date at Dec. 31, 2011 | $108,000 | $25,058,000 | $21,613,000 | ($11,395,000) | ($71,000) | $35,313,000 |
Period End Date (in Shares) at Dec. 31, 2011 | 9,390,262 | |||||
Issuance of shares from exercise of stock options USD | 1,000 | 171,000 | 172,000 | |||
Issuance of shares from exercise of stock options (in Shares) | 51,122 | |||||
Issuance of deferred stock units | 134,000 | 134,000 | ||||
Tax benefit (charge) related to employee stock sales and vesting of restricted stock | 57,000 | 57,000 | ||||
Purchase of treasury stock | -5,938,000 | -5,938,000 | ||||
Purchase of treasury stock shares (in Shares) | -721,184 | |||||
-526,000 | -526,000 | |||||
Share-based compensation expense | 520,000 | 520,000 | ||||
Foreign currency translation adj., net of tax | 16,000 | 16,000 | ||||
Net income | 3,621,000 | 3,621,000 | ||||
Period End Date at Dec. 31, 2012 | 109,000 | 25,940,000 | 24,708,000 | -17,333,000 | -55,000 | 33,369,000 |
Period End Date (in Shares) at Dec. 31, 2012 | 8,720,200 | |||||
Issuance of shares from exercise of stock options USD | 2,000 | 1,043,000 | 1,045,000 | |||
Issuance of shares from exercise of stock options (in Shares) | 196,358 | |||||
Issuance of deferred stock units | 139,000 | 139,000 | ||||
Reversal of deferred tax asset in connection with stock options forfeited | -28,000 | -28,000 | ||||
Reversal of deferred tax asset in connection with stock options forfeited (in Shares) | 6,919 | |||||
Tax benefit (charge) related to employee stock sales and vesting of restricted stock | 132,000 | 132,000 | ||||
Purchase of treasury stock | -5,194,000 | -5,194,000 | ||||
Purchase of treasury stock shares (in Shares) | -604,161 | |||||
-2,317,000 | -2,317,000 | |||||
Share-based compensation expense | 521,000 | 521,000 | ||||
Reversal of deferred tax asset in connection with stock options forfeited | -73,000 | -73,000 | ||||
Foreign currency translation adj., net of tax | -8,000 | -8,000 | ||||
Net income | 4,935,000 | 4,935,000 | ||||
Period End Date at Dec. 31, 2013 | 111,000 | 27,674,000 | 27,326,000 | -22,527,000 | -63,000 | 32,521,000 |
Period End Date (in Shares) at Dec. 31, 2013 | 8,319,316 | 11,106,354 | ||||
Issuance of shares from exercise of stock options USD | 13,000 | 13,000 | ||||
Issuance of shares from exercise of stock options (in Shares) | 6,000 | |||||
Issuance of deferred stock units | 100,000 | 100,000 | ||||
Reversal of deferred tax asset in connection with stock options forfeited | -44,000 | -44,000 | ||||
Reversal of deferred tax asset in connection with stock options forfeited (in Shares) | 9,939 | |||||
Tax benefit (charge) related to employee stock sales and vesting of restricted stock | 7,000 | 7,000 | ||||
Purchase of treasury stock | -2,634,000 | -2,634,000 | ||||
Purchase of treasury stock shares (in Shares) | -434,998 | |||||
-2,556,000 | -2,556,000 | |||||
Share-based compensation expense | 506,000 | 506,000 | ||||
Reversal of deferred tax asset in connection with stock options forfeited | -89,000 | -89,000 | ||||
Foreign currency translation adj., net of tax | -9,000 | -9,000 | ||||
Net income | -2,421,000 | -2,421,000 | ||||
Period End Date at Dec. 31, 2014 | $111,000 | $28,167,000 | $22,349,000 | ($25,161,000) | ($72,000) | $25,394,000 |
Period End Date (in Shares) at Dec. 31, 2014 | 7,900,257 | 11,122,293 |
TRANSACT_TECHNOLOGIES_INCORPOR5
TRANSACT TECHNOLOGIES INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net (loss) income | ($2,421) | $4,935 | $3,621 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Share-based compensation expense | 506 | 521 | 520 |
Incremental tax benefits from stock options exercised | -7 | -132 | -57 |
Depreciation and amortization | 1,445 | 1,741 | 1,758 |
Deferred income tax (benefit) provision | -1,558 | 46 | -95 |
Loss (gain) on sale of fixed assets | 28 | 60 | -13 |
Foreign currency transaction losses | 7 | 3 | 34 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 4,139 | 2,685 | -6,332 |
Inventories | 1,703 | -3,189 | 3,684 |
Prepaid income taxes | -98 | -367 | 479 |
Other current and long term assets | 46 | 20 | -154 |
Accounts payable | -2,384 | -1,674 | 3,403 |
Accrued lawsuit settlement expenses | 3,625 | ||
Accrued liabilities and other liabilities | 1,022 | -2,156 | 1,182 |
Net cash provided by operating activities | 6,053 | 2,493 | 8,030 |
Cash flows from investing activities: | |||
Capital expenditures | -660 | -709 | -1,082 |
Additions to capitalized software | -42 | -35 | |
Proceeds from sale of fixed assets | 5 | 15 | |
Net cash used in investing activities | -660 | -746 | -1,102 |
Cash flows from financing activities: | |||
Proceeds from stock option exercises | 13 | 1,045 | 172 |
Purchases of common stock for treasury | -2,634 | -5,194 | -5,938 |
Payment of dividends on common stock | -2,556 | -2,317 | -526 |
Incremental tax benefits from stock options exercised | 7 | 132 | 57 |
Payment of deferred financing costs | -8 | -7 | |
Net cash used in financing activities | -5,178 | -6,334 | -6,242 |
Effect of exchange rate changes on cash and cash equivalents | -20 | -14 | -12 |
Increase (decrease) in cash and cash equivalents | 195 | -4,601 | 674 |
Cash and cash equivalents, beginning of period | 2,936 | 7,537 | 6,863 |
Cash and cash equivalents, end of period | 3,131 | 2,936 | 7,537 |
Supplemental cash flow information: | |||
Interest paid | 49 | 51 | 51 |
Income taxes paid | $173 | $2,585 | $912 |
1_Description_of_business
1. Description of business | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 1. Description of business |
TransAct Technologies Incorporated (“TransAct” or the “Company”), which has its headquarters in Hamden, CT and its primary operating facility in Ithaca, NY, operates in one operating segment: market specific solutions, including printers, terminals, software and other products for transaction-based and other industries. These industries include casino, gaming, lottery, banking, point-of-sale, food safety, oil and gas and medical and mobile. Our printers are designed based on market-specific requirements and are sold under the Ithaca®, RESPONDER®, Epic, EPICENTRAL® and Printrex® product brands. We distribute our products through OEMs, value-added resellers, selected distributors, and directly to end-users. Our product distribution spans across the Americas, Europe, the Middle East, Africa, Asia, Australia, the Caribbean Islands and the South Pacific. We also generate revenue from the after-market side of the business, providing printer service, supplies and spare parts in addition to revenue from our software solution, the EPICENTRAL® Print System (“EPICENTRAL®”), that enables casino operators to create promotional coupons and marketing messages and print them in real-time at the slot machine. | |
2_Summary_of_significant_accou
2. Summary of significant accounting policies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Significant Accounting Policies [Text Block] | 2. Summary of significant accounting policies | |||||||||||
Principles of consolidation: The accompanying Consolidated Financial Statements include the accounts of TransAct and its wholly-owned subsidiaries, which require consolidation, after the elimination of intercompany accounts, transactions and unrealized profit. | ||||||||||||
Use of estimates: The accompanying Consolidated Financial Statements were prepared using estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||
Segment reporting: We apply the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 280, “Segment Reporting.” We view our operations and manage our business as one segment: the design, development, assembly and marketing of transaction printers and terminals and providing printer-related software, services, supplies and spare parts. Factors used to identify TransAct’s single operating segment include the organizational structure of the Company and the financial information available for evaluation by the chief operating decision-maker in making decisions about how to allocate resources and assess performance. | ||||||||||||
Cash and cash equivalents: We consider all highly liquid investments with a maturity date of three months or less at date of purchase to be cash equivalents. | ||||||||||||
Allowance for doubtful accounts: We establish an allowance for doubtful accounts to ensure trade receivables are valued appropriately. We maintain an allowance for doubtful accounts based on a variety of factors, including the length of time receivables are past due, significant one-time events and historical experience. We record a specific allowance for individual accounts when we become aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. If circumstances related to customers change, we would further adjust estimates of the recoverability of receivables. Allowances for doubtful accounts on accounts receivable balances were $100,000 as of December 31, 2014 and $63,000 as of December 31, 2013. | ||||||||||||
The following table summarizes the activity recorded in the valuation account for accounts receivable: | ||||||||||||
Year ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Balance, beginning of period | $ | 63 | $ | 66 | $ | 70 | ||||||
Additions charged to costs and expenses | 37 | - | - | |||||||||
Deductions | - | -3 | -4 | |||||||||
Balance, end of period | $ | 100 | $ | 63 | $ | 66 | ||||||
Inventories: Inventories are stated at the lower of cost (principally standard cost, which approximates actual cost on a first-in, first-out basis) or market. We review market value based on historical usage and estimates of future demand. Based on these reviews, inventory write-downs are recorded, as necessary, to reflect estimated obsolescence, excess quantities and market value. | ||||||||||||
Fixed assets: Fixed assets are stated at cost. Depreciation is recorded using the straight-line method over the estimated useful lives. The estimated useful life of tooling is five years; machinery and equipment is ten years; furniture and office equipment is five to ten years; and computer software and equipment is three to seven years. Leasehold improvements are amortized over the shorter of the term of the lease or the useful life of the asset. Costs related to repairs and maintenance are expensed as incurred. The costs of sold or retired assets are removed from the related asset and accumulated depreciation accounts and any gain or loss is recognized. Depreciation expense was $925,000, $1,216,000 and $1,183,000 in 2014, 2013 and 2012, respectively. | ||||||||||||
Leases: Rent expense under non-cancelable operating leases with scheduled rent increases or free rent periods are accounted for on a straight-line basis over the lease term, beginning on the date of control of physical use of the asset or of initial possession. The amount of the excess of straight-line rent expense over scheduled payments is recorded as a deferred liability. Construction allowances and other such lease incentives are recorded as deferred credits, and are amortized on a straight-line basis as a reduction of rent expense beginning in the period they are deemed to be earned, which generally coincides with the occupancy date. | ||||||||||||
2. Summary of significant accounting policies (continued) | ||||||||||||
Goodwill and Intangible assets: We acquire businesses in purchase transactions that result in the recognition of goodwill and intangible assets. The determination of the value of intangible assets requires management to make estimates and assumptions. In accordance with Accounting Standards Codification (“ASC”) 350-20 “Goodwill”, acquired goodwill is not amortized but is subject to impairment testing at least annually and when an event occurs or circumstances change, that indicate it is more likely than not an impairment exists. Factors considered that may trigger an impairment review of either acquired goodwill or intangible assets are: significant underperformance relative to expected historical or projected future operating results; significant changes in the manner of use of acquired assets or the strategy for the overall business; significant negative industry or economic trends; and significant decline in market capitalization relative to net book value. Definite lived intangible assets are amortized and are tested for impairment when appropriate. We have determined that no goodwill impairment has occurred based on our assessment as of December 31, 2014 when the impairment review is performed. | ||||||||||||
Revenue recognition: Our typical contracts include the sale of printers, which are sometimes accompanied by separately-priced extended warranty contracts. We also sell replacement parts, consumables, and other repair services (sometimes pursuant to multi-year product maintenance contracts), which are not included in the original printer sale and are ordered by the customer as needed. We recognize revenue pursuant to the guidance within ASC 605, “Revenue Recognition” (ASC 605). Specifically, revenue is recognized when evidence of an arrangement exists, delivery (based on shipping terms, which are generally FOB shipping point) has occurred, the selling price is fixed and determinable, and collectability is reasonably assured. We recognize revenue from the sale of printers and terminals to our distributors and resellers on a sell-in basis and on substantially the same terms as we recognize revenue from all our other customers. We provide for an estimate of product returns and price protection based on historical experience at the time of revenue recognition. | ||||||||||||
We have developed a software solution, EPICENTRAL™, that enables casino operators to create promotional coupons and marketing messages and to print them in real-time at the slot machine. Revenue arrangements for EPICENTRALTM include multiple deliverables and as a result such arrangements are accounted for in accordance with both ASC 605-25, “Multiple-Element Arrangements” and ASC 985-605, “Software.” EPICENTRALTM is primarily comprised of both a software component, which is licensed to the customer, and a hardware component. EPICENTRAL™ contains both software and hardware that are integrated to deliver the system’s full functionality. These arrangements are accounted for in accordance with ASC 605-25, “Multiple-Element Arrangements”. EPICENTRAL™ can also include an additional software offering, Mobile Host, that allows the customer to access certain applications on mobile devices. Mobile Host is accounted for in accordance with ASC 985-605, “Software” as Mobile Host software does not function together with the hardware device to deliver its essential functionality. | ||||||||||||
Revenue related to extended warranty and product maintenance contracts is recognized pursuant to ASC 605-20-25, “Separately Priced Extended Warranty and Product Maintenance Contracts.” Pursuant to this provision, revenue related to separately priced product maintenance contracts is deferred and recognized over the term of the maintenance period. We record deferred revenue for advance payments received from customers for maintenance contracts. | ||||||||||||
Our customers have the right to return products that do not function properly within a limited time after delivery. We monitor and track product returns and record a provision for the estimated future returns based on historical experience. Returns have historically been within expectations and the provisions established. | ||||||||||||
We offer some of our customers price protection as an incentive to carry inventory of our product. These price protection plans provide that if we lower prices, we will credit them for the price decrease on inventory they hold. Our customers typically carry limited amounts of inventory, and we infrequently lower prices on current products. As a result, the amounts paid under these plans have not been material. | ||||||||||||
We charge our customers for shipping and handling services. The amounts billed to customers are recorded as revenue when the product ships. Any costs incurred related to these services are included in cost of sales. | ||||||||||||
Accounts receivable from customers representing 10% or more of total accounts receivable were as follows: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
GTECH | 15% | 21% | ||||||||||
Eurocoin | 11% | 22% | ||||||||||
Suzo-Happ | 23% | 6% | ||||||||||
CMC Daymark | 11% | 19% | ||||||||||
Sales to customers representing 10% or more of total net sales were as follows: | ||||||||||||
Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
GTECH | 16% | 12% | 18% | |||||||||
Eurocoin | 11% | 12% | 15% | |||||||||
Warranty: We generally warrant our products for up to 36 months and record the estimated cost of such product warranties at the time the sale is recorded. Estimated warranty costs are based upon actual past experience of product repairs and the related estimated cost of labor and material to make the necessary repairs. | ||||||||||||
The following table summarizes the activity recorded in the accrued product warranty liability: | ||||||||||||
Year ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Balance, beginning of period | $ | 366 | $ | 274 | $ | 421 | ||||||
Warranties issued | 183 | 492 | 104 | |||||||||
Warranty settlements | -262 | -400 | -251 | |||||||||
Balance, end of period | $ | 287 | $ | 366 | $ | 274 | ||||||
Engineering, design and product development: Research and development expenses include expenses incurred in connection with specialized engineering and design to introduce new products and to customize existing products, and are expensed as a component of operating expenses as incurred. We recorded approximately $4,302,000, $4,065,000 and $4,239,000 of research and development expenses in 2014, 2013 and 2012, respectively. | ||||||||||||
Costs incurred in researching and developing a computer software product are charged to expense until technological feasibility has been established at which point all material software costs are capitalized within Intangible assets in our Consolidated Balance Sheet until the product is available for general release to customers. While judgment is required in determining when technological feasibility of a product is established, we have determined that it is reached after all high-risk development issues have been documented in a formal detailed plan design. The amortization of these costs will be included in cost of sales over the estimated life of the product. During 2010 we began the development of EPICENTRALTM and unamortized development costs for such software were approximately $169,000 and $370,000 as of December 31, 2014 and 2013, respectively. The total amount charged to cost of sales for capitalized software development costs was approximately $201,000, $199,000 and $189,000 in 2014, 2013 and 2012, respectively. The weighted-average amortization period of unamortized capitalized software developments costs is approximately one year. | ||||||||||||
Advertising: Advertising costs are expensed as incurred. Advertising expenses, which are included in selling and marketing expense on the accompanying Consolidated Statements of Operations, for 2014, 2013 and 2012 totaled $1,191,000, $1,058,000 and $949,000, respectively. These expenses include items such as consulting and professional services, tradeshows, and print advertising. | ||||||||||||
Restructuring: We continually evaluate our cost structure to ensure that it is appropriately positioned to respond to changing market conditions. We record pre-tax restructuring charges in accordance with ASC 420-10-25-4, “Exit or Disposal Cost Obligations.” See Note 8 for further discussion. | ||||||||||||
Income taxes: The income tax amounts reflected in the accompanying Consolidated Financial Statements are accounted for under the liability method in accordance with ASC 740, “Income Taxes.” 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 and operating loss and tax credit carryforwards. 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. We assess the likelihood that net deferred tax assets will be realized from future taxable income, and to the extent that we believe that realization is not likely, we establish a valuation allowance. In accordance with ASC 740, we identified, evaluated and measured the amount of benefits to be recognized for our tax return positions. See Note 13 for information regarding our accounting for income taxes. | ||||||||||||
Foreign currency translation: The financial position and results of operations of our foreign subsidiary in the United Kingdom are measured using local currency as the functional currency. Assets and liabilities of such subsidiary have been translated into U.S. dollars at the year-end exchange rate, related sales and expenses have been translated at the average exchange rate for the year, and shareholders’ equity has been translated at historical exchange rates. The resulting translation gains or losses, net of tax, are recorded in shareholders’ equity as a cumulative translation adjustment, which is a component of | ||||||||||||
accumulated other comprehensive income. Foreign currency transaction gains and losses, including those related to intercompany balances, are recognized in Other, net on the Consolidated Statements of Operations. | ||||||||||||
Share-based payments: At December 31, 2014, we had share-based employee compensation plans, which are described more fully in Note 12 - Stock incentive plans. We account for those plans under the recognition and measurement principles of ASC 718, “Compensation – Stock Compensation.” Share-based compensation expense is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the employee’s requisite service period. We have no awards with market or performance conditions. | ||||||||||||
We use the Black-Scholes option-pricing model to calculate the fair value of share based awards. The key assumptions for this valuation method include the expected term of the option, stock price volatility, risk-free interest rate, dividend yield, market price of our underlying stock and exercise price. Many of these assumptions are judgmental and highly sensitive in the determination of compensation expense. In addition, we estimate forfeitures when recognizing compensation expense, and we adjust our estimate of forfeitures over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures are recognized through a cumulative true-up adjustment in the period of change and also impacts the amount of compensation expense to be recognized in future periods. | ||||||||||||
Net income and loss per share: We report net income or loss per share in accordance with ASC 260, “Earnings per Share (EPS).” Under this guidance, basic EPS, which excludes dilution, is computed by dividing income or loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Diluted EPS includes in-the-money stock options using the treasury stock method. During a loss period, the assumed exercise of in-the-money stock options has an anti-dilutive effect, and therefore, these instruments are excluded from the computation of dilutive EPS. See Note 14 - Earnings per share. | ||||||||||||
3_Contingent_Consideration
3. Contingent Consideration | 12 Months Ended |
Dec. 31, 2014 | |
Business Combination, Contingent Consideration Arrangements [Abstract] | |
Business Combination, Contingent Consideration Arrangements, Description | In connection with a business acquisition on August 19, 2011, whereby we purchased substantially all of the assets of Printrex, Inc (“Printrex”), we entered into a contingent consideration arrangement with Printrex as part of the acquisition for 30% of the gross profit for a three-year period related to new products under development, less certain other adjustments, beginning on the earlier of 1) January 1, 2012 or 2) the date of first commercial introduction of the new products under development. As of December 31, 2014, the undiscounted fair value related to the contingent liability was estimated to be zero and we do not expect to make a contingent consideration payment. The fair value of the contingent consideration arrangement was $0 and $60,000 at December 31, 2014 and 2013, respectively, which were estimated by applying the income approach. That measure is based on significant inputs that are not observable in the market, which fair value measurement guidance refers to as Level 3 inputs. During 2014 and 2013, the fair value of the contingent consideration was decreased by $60,000 and $900,000, respectively, and this credit is included in general and administrative expenses on the Consolidated Statements of Operations. No payments were made under the arrangement during 2014 as the underlying conditions of the contingent consideration arrangement were not satisfied. |
4_Inventories
4. Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory Disclosure [Text Block] | 4. Inventories | |||||||
The components of inventories are: | ||||||||
December 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Raw materials and purchased component parts | $ | 6,183 | $ | 7,263 | ||||
Work-in-process | 4 | 31 | ||||||
Finished goods | 5,619 | 6,215 | ||||||
$ | 11,806 | $ | 13,509 | |||||
5_Fixed_assets
5. Fixed assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | 5. Fixed assets | |||||||
The components of fixed assets, net are: | ||||||||
December 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Tooling, machinery and equipment | $ | 10,620 | $ | 12,066 | ||||
Furniture and office equipment | 1,489 | 1,492 | ||||||
Computer software and equipment | 6,132 | 5,986 | ||||||
Leasehold improvements | 1,952 | 1,926 | ||||||
20,193 | 21,470 | |||||||
Less: Accumulated depreciation and amortization | -17,858 | -18,989 | ||||||
2,335 | 2,481 | |||||||
Construction in-process | 103 | 251 | ||||||
$ | 2,438 | $ | 2,732 | |||||
6_Intangible_assets
6. Intangible assets | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure Text Block [Abstract] | ||||||||||||||||
Intangible Assets Disclosure [Text Block] | 6. Intangible assets | |||||||||||||||
Identifiable intangible assets are recorded in Intangible assets in the accompanying Consolidated Balance Sheets and are comprised of the following: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
(In thousands) | ||||||||||||||||
Purchased technology | $ | 1,604 | $ | -1,172 | $ | 1,604 | $ | -924 | ||||||||
Customer relationships | 1,300 | -729 | 1,300 | -513 | ||||||||||||
Trademark | 480 | -162 | 480 | -113 | ||||||||||||
Covenant not to compete | 146 | -146 | 146 | -146 | ||||||||||||
Patents | 57 | -37 | 57 | -35 | ||||||||||||
Other | 80 | -80 | 80 | -80 | ||||||||||||
Total | $ | 3,667 | $ | -2,326 | $ | 3,667 | $ | -1,811 | ||||||||
Amortization expense was $515,000 in 2014, $513,000 in 2013 and $568,000 in 2012. Amortization expense for each of the next five years ending December 31 is expected to be as follows: $456,000 in 2015; $333,000 in 2016; $244,000 in 2017; $102,000 in 2018; $99,000 in 2019 and $107,000 thereafter. | ||||||||||||||||
7_Accrued_liabilities
7. Accrued liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 7. Accrued liabilities | |||||||
The components of accrued liabilities are: | ||||||||
December 31, | ||||||||
(In thousands) | 2014 | 2013 | ||||||
Salaries and compensation related | $ | 1,852 | $ | 1,447 | ||||
Warranty | 207 | 282 | ||||||
Professional and consulting | 959 | 139 | ||||||
Other | 302 | 347 | ||||||
$ | 3,320 | $ | 2,215 | |||||
8_Restructuring
8. Restructuring | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring and Related Cost [Abstract] | |
Restructuring and Related Cost, Description | In January 2012, we determined that we no longer needed to maintain the existing Printrex manufacturing facility in San Jose, California, along with certain redundant headcount. As a result, we incurred expenses of $138,000 in 2012 for employee termination benefits related to these employee reductions as well as moving costs and the closing of the San Jose manufacturing operations that was completed as of December 31, 2012. This restructuring charge was recorded in accordance with ASC 420-10-25-4 “Exit or Disposal Cost Obligations” and is included within Business consolidation and restructuring expenses in the accompanying Consolidated Statements of Operations. Cash payments made under this restructuring plan were completed by October 2012. |
9_Retirement_savings_plan
9. Retirement savings plan | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block Supplement [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | 9. Retirement savings plan |
We maintain a 401(k) plan under which all full-time employees are eligible to participate at the beginning of each month immediately following their date of hire. We match employees’ contributions at a rate of 50% of employees’ contributions up to the first 6% of the employees’ compensation contributed to the 401(k) plan. Our matching contributions were $282,000, $265,000 and $280,000 in 2014, 2013 and 2012, respectively. | |
10_Borrowings
10. Borrowings | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 10. Borrowings |
We maintain a credit facility (the “TD Bank Credit Facility”) with TD Bank N.A. (“TD Bank) which provides for a $20,000,000 revolving credit line. On November 26, 2014, we signed an amendment to the TD Bank Credit Facility through November 28, 2017. Borrowings under the revolving credit line bear a floating rate of interest at the prime rate minus one percent and are secured by a lien on all of our assets. We also pay a fee of 0.15% on unused borrowings under the revolving credit line. The total deferred financing costs relating to expenses incurred to complete the TD Bank Credit | |
The TD Bank Credit Facility imposes certain quarterly financial covenants on us and restricts, among other things, our ability to incur additional indebtedness and the creation of other liens. We were in compliance with all financial covenants of the TD Bank Credit Facility at December 31, 2014. | |
As of December 31, 2014, undrawn commitments under the TD Bank Credit facility were $20,000,000. | |
11_Commitments_and_contingenci
11. Commitments and contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 11. Commitments and contingencies |
On June 8, 2012, Avery Dennison Corporation (“AD”) filed a civil complaint against the Company and a former employee of the Company and of AD, in the Court of Common Pleas (the “Court”) in Lake County, Ohio. The complaint alleged that this former employee and the Company misappropriated unspecified trade secrets and confidential information from AD related to the design of our food safety terminals. The complaint requested a preliminary and permanent injunction against the Company from manufacturing and selling our Ithaca® 9700 and 9800 food safety terminals. On July 16, 2012, the Company filed its answer, affirmative defenses and counterclaims, seeking all available damages including legal fees. A hearing on the plaintiff's motion for preliminary injunction took place in August 2012, and in November 2012, the Court denied this request. AD filed an appeal of the Court’s ruling to the Eleventh Appellate District, which heard oral arguments on the appeal on July 16, 2013. On July 23, 2013, AD requested that the Eleventh Appellate District enjoin the Company’s further sale and marketing of the food safety terminals, pending the appeals court's decision. On July 29, 2013, the Company opposed this request. On October 15, 2013, the Eleventh District Court of Appeals affirmed the lower court’s decision in the Company’s favor and denied AD’s further request of an injunction pending the Court of Appeal’s decision. On October 24, 2013, AD filed a motion seeking that the Court of Appeals reconsider its decision. On April 16, 2014, the Court of Appeals denied AD’s motion to reconsider its decision. On July 28, 2014, AD filed a motion requesting leave from the Court to file an amended complaint and indicating that it has elected to pursue only its claim for damages, dropping its claim for injunctive relief. On September 4, 2014, the Court granted AD’s motion to file an amended complaint. On September 25, 2014, the Company filed its answer, affirmative defenses and counterclaims with respect to the amended complaint, seeking all available damages including legal fees. On January 30, 2015, the Company filed a motion for summary judgment seeking judgment in favor of the Company on all counts as to the Company. On the same day, AD filed two motions for partial summary judgment. On February 17, 2015, the Company opposed both of AD’s motions, and AD opposed the Company’s motion. On February 23, 2015, the Company filed a reply brief in support of its motion for summary judgment. A trial was scheduled to begin on April 21, 2015, however, on March 25, 2015 the parties executed a confidential settlement agreement and release (the “Settlement Agreement”) in which the parties mutually agreed to resolve the dispute that was the subject of the lawsuit filed by AD against the Company to the parties’ mutual satisfaction. Under the terms of the Settlement Agreement, the Company agreed to pay AD $3,600,000 payable on or before April 8, 2015 and also to qualify certain AD labels for use on the Company’s food safety terminals at an estimated cost of $25,000. The Company recorded the total charge of $3,625,000 in the fourth quarter 201 as an operating expense included in the line item “Legal fees and settlement expenses associated with lawsuit” on the Consolidated Statement of Operations and as a current liability included in the line item “Accrued lawsuit settlement expenses” on the Consolidated Balance Sheet. | |
At December 31, 2014, we were the lessee on operating leases for equipment and real property. Rent expense was approximately $918,000, $918,000 and $1,005,000 in 2014, 2013 and 2012, respectively. Minimum aggregate rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2014 are as follows: $850,000 in 2015; $584,000 in 2016; $86,000 in 2017; $4,000 in 2018 and $1,000 in 2019. |
12_Stock_incentive_plans
12. Stock incentive plans | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 12. Stock incentive plans | ||||||||||||
Stock incentive plans. We currently have two primary stock incentive plans: the 2005 Equity Incentive Plan and 2014 Equity Incentive Plan, which provides for awards to executives, key employees, directors and consultants. We previously maintained two other stock incentive plans, the 1996 Director’s Stock Plan and the 2001 Employee Stock Plan, both of which expired during 2014. The plans generally provide for awards in the form of: (i) incentive stock options, (ii) non-qualified stock options, (iii) restricted stock, (iv) restricted stock units, (v) stock appreciation rights or (vi) limited stock appreciation rights. Options granted under these plans have exercise prices equal to 100% of the fair market value of the common stock at the date of grant. Options granted have a ten-year term and generally vest over a three- to five-year period, unless automatically accelerated for certain defined events. As of May 2014, no new awards will be made under the 2005 Equity Incentive Plan. Under our 2014 Equity Incentive Plan, we may authorize up to 600,000 shares of TransAct common stock. At December 31, 2014, 566,000 shares of common stock remained available for issuance under the 2014 Equity Incentive Plan. | |||||||||||||
Under the assumptions indicated below, the weighted-average fair value of stock option grants for 2014, 2013 and 2012 was $11.11, $7.94 and $6.91, respectively. The table below indicates the key assumptions used in the option valuation calculations for options granted in 2014, 2013 and 2012 and a discussion of our methodology for developing each of the assumptions used in the valuation model: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected option term | 6.6 years | 6.8 years | 6.7 years | ||||||||||
Expected volatility | 53.80% | 56.50% | 57.80% | ||||||||||
Risk-free interest rate | 1.60% | 0.80% | 0.80% | ||||||||||
Dividend yield | 2.60% | 3.10% | -% | ||||||||||
Expected Option Term - This is the weighted average period of time over which the options granted are expected to remain outstanding giving consideration to our historical exercise patterns. Options granted have a maximum term of ten years and an increase in the expected term will increase compensation expense. | |||||||||||||
Expected Volatility – The stock volatility for each grant is measured using the weighted average of historical daily price changes of our common stock over the most recent period approximately equal to the expected option term of the grant. An increase in the expected volatility factor will increase compensation expense. | |||||||||||||
Risk-Free Interest Rate - This is the U.S. Treasury rate in effect at the time of grant having a term approximately equal to the expected term of the option. An increase in the risk-free interest rate will increase compensation expense. | |||||||||||||
Dividend Yield – We began paying a quarterly dividend to common shareholders in December 2012,. The dividend yield is calculated by dividing the annual dividend declared per common share by the weighted average market value of our common stock on the date of grant. An increase in the dividend yield will decrease compensation expense. | |||||||||||||
For 2014, 2013 and 2012, we recorded $506,000, $521,000, and $520,000 of share-based compensation expense, respectively, included primarily in general and administrative expense in our Consolidated Statements of Operations. We also recorded income tax benefits of approximately $377,000, $127,000, and $183,000 in 2014, 2013, and 2012 respectively, related to such share-based compensation. At December 31, 2014, these benefits are recorded as a deferred tax asset in the Consolidated Balance Sheets. | |||||||||||||
Option activity in the 1996 Directors’ Stock Plan, 2001 Employee Stock Plan, 2005 Equity Incentive Plan and 2014 Equity Incentive Plan is summarized below: | |||||||||||||
Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||
Number of Shares | |||||||||||||
Outstanding at December 31, 2013 | 718,475 | $ | 8.49 | ||||||||||
Granted | 169,500 | 11.11 | |||||||||||
Exercised | -6,000 | 2.18 | |||||||||||
Forfeited | -62,500 | 8.51 | |||||||||||
Expired | -23,500 | 31.58 | |||||||||||
Outstanding at December 31, 2014 | 795,975 | $ | 8.41 | 5.7 years | $ | 87,000 | |||||||
Options exercisable at December 31, 2014 | 490,725 | $ | 7.72 | 4.1 years | $ | 87,000 | |||||||
Options vested or expected to vest | 784,108 | $ | 8.39 | 6.0 years | $ | 87,000 | |||||||
Shares that are issued upon exercise of employee stock options are newly issued shares and not issued from treasury stock. As of December 31, 2014, unrecognized compensation cost related to stock options is approximately $955,000, which is expected to be recognized over a weighted average period of 2.5 years. | |||||||||||||
The total intrinsic value of stock options exercised was $20,000, $910,000 and $222,000 and the total fair value of stock options vested was $943,000, $815,000, and $641,000 during 2014, 2013 and 2012, respectively. Cash received from option exercises was $13,000, $1,045,000 and $172,000 for 2014, 2013 and 2012, respectively. We recorded a realized tax benefit in 2014, 2013 and 2012 from equity-based awards of $7,000, $132,000 and $57,000, respectively, related to options exercised which has been included as a component of cash flows from financing activities in the Consolidated Statements of Cash Flows. | |||||||||||||
Restricted stock: We paid a portion of the 2013, 2012 and 2011 incentive bonus for the chief executive officer and chief financial officer in the form of 8,663, 17,613 and 20,055 deferred stock units, respectively, with a corresponding credit recorded to Additional Paid in Capital (net of share relinquishments) in the amounts of $56,000, $111,000 and $134,000 in 2014, 2013 and 2012, respectively. Such deferred stock units were granted in March 2014, 2013 and 2012, respectively, and were fully vested at the time of grant. These units will be converted three years from the grant date to shares of the Company’s common stock on a one-for-one basis. The weighted average exercise price of the deferred stock units was $8.07. | |||||||||||||
13_Income_taxes
13. Income taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Tax Disclosure [Text Block] | 13. Income taxes | |||||||||||
The components of the income tax provision are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 176 | $ | 1,479 | $ | 1,973 | ||||||
State | 15 | 38 | 46 | |||||||||
Foreign | 12 | 33 | 40 | |||||||||
203 | 1,550 | 2,059 | ||||||||||
Deferred: | ||||||||||||
Federal | -1,653 | 80 | -116 | |||||||||
State | 17 | -34 | 21 | |||||||||
Foreign | - | - | - | |||||||||
-1,636 | 46 | -95 | ||||||||||
Income tax (benefit) provision | $ | -1,433 | $ | 1,596 | $ | 1,964 | ||||||
Our effective tax rates were 37.2%, 24.4%, and 35.2% for 2014, 2013 and 2012, respectively. Our effective tax rate for 2013 was unusually low because it included: 1) a $224,000 reduction in tax liabilities for unrecognized tax benefits resulting from the completion of an audit of our 2010 federal income tax return and 2) the benefit from the 2012 federal research and development credit (“R&D credit”) of approximately $220,000 as this credit was not renewed until January 2, 2013 as a component of the American Taxpayer Relief Act of 2012. | ||||||||||||
At December 31, 2014, we have no federal or state net operating loss carryforwards. We have approximately $104,000 in R&D credit carryforwards that expire in 2034 and approximately $3,000 in state tax credit carryforwards that begin to expire in 2019. Foreign (loss) income before taxes was $(56,000), $(29,000), and $92,000 in 2014, 2013, and 2012, respectively. | ||||||||||||
Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the Consolidated Financial Statements. Our deferred tax assets and liabilities were comprised of the following: | ||||||||||||
December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
Deferred tax assets: | ||||||||||||
Foreign net operating losses | $ | 282 | $ | 242 | ||||||||
Capitalized research and development | - | 68 | ||||||||||
Accrued lawsuit settlement expenses | 1,262 | - | ||||||||||
Inventory reserves | 1,063 | 1,050 | ||||||||||
Deferred revenue | 56 | 59 | ||||||||||
Warranty reserve | 100 | 127 | ||||||||||
Stock compensation expense | 1,049 | 956 | ||||||||||
Other accrued compensation | 406 | - | ||||||||||
Foreign tax and other credits | 106 | 45 | ||||||||||
Other liabilities and reserves | 312 | 491 | ||||||||||
Gross deferred tax assets | 4,636 | 3,038 | ||||||||||
Valuation allowance | -282 | -242 | ||||||||||
Net deferred tax assets | 4,354 | 2,796 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation | 142 | 175 | ||||||||||
Other | 76 | 46 | ||||||||||
Net deferred tax liabilities | 218 | 221 | ||||||||||
Total net deferred tax assets | 4,136 | $ | 2,575 | |||||||||
A valuation allowance of $282,000 has been established for foreign net operating loss carryforwards that are not expected to be used. The following table summarizes the activity recorded in the valuation allowance on the deferred tax assets: | ||||||||||||
Year ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Balance, beginning of period | $ | 242 | $ | 216 | $ | 176 | ||||||
Additions charged to income tax provision | 40 | 56 | 40 | |||||||||
Reductions credited to income tax provision | - | -30 | - | |||||||||
Balance, end of period | $ | 282 | $ | 242 | $ | 216 | ||||||
Differences between the U.S. statutory federal income tax rate and our effective income tax rate are analyzed below: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory tax rate | 34.00% | 34.00% | 34.00% | |||||||||
R&D credit | 6 | - | - | |||||||||
State income taxes, net of federal income taxes | -0.5 | 0.1 | 0.8 | |||||||||
Valuation allowance and tax accruals | -1.1 | 0.9 | 0.9 | |||||||||
Uncertain tax positions | -1 | - | - | |||||||||
Miscellaneous permanent items | -0.3 | -8.3 | -0.8 | |||||||||
Other | 0.1 | -2.3 | 0.3 | |||||||||
Effective tax rate | 37.20% | 24.40% | 35.20% | |||||||||
At December 31, 2014 and 2013, we had approximately $124,000 and $106,000 of total gross unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods. We are not aware of any events that could occur within the next twelve months that could cause a significant change in the total amount of unrecognized tax benefits. A tabular reconciliation of the gross amounts of unrecognized tax benefits at the beginning and end of the year is as follows: | ||||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
Unrecognized tax benefits as of January 1 | $ | 106 | $ | 251 | ||||||||
Tax positions taken during the current period | 18 | 79 | ||||||||||
Lapse of statute of limitations | - | -224 | ||||||||||
Unrecognized tax benefits as of December 31 | $ | 124 | $ | 106 | ||||||||
We are subject to U.S. federal income tax as well as income tax of certain state and foreign jurisdictions. We have substantially concluded all U.S. federal income tax, state and local, and foreign tax matters through 2010. During 2013, an examination of our 2010 federal tax return was completed. However, our federal tax returns for the years 2011 through 2013 remain open to examination. Various state and foreign tax jurisdiction tax years remain open to examination as well, though we believe that any additional assessment would be immaterial to the Consolidated Financial Statements. | ||||||||||||
We do not anticipate that the total unrecognized tax benefits of approximately $124,000 will significantly change due to the settlement of audits and the expiration of statute of limitations prior to December 31, 2015. | ||||||||||||
We recognize interest and penalties related to uncertain tax positions in the income tax provision. As of December 31, 2014 and 2013, we have approximately $20,000 and $10,000, respectively, of accrued interest and penalties related to uncertain tax positions. | ||||||||||||
14_Earnings_per_share
14. Earnings per share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share [Text Block] | 14. Earnings per share | |||||||||||
For 2014, 2013 and 2012, earnings per share were computed as follows (in thousands, except per share amounts): | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net (loss) income | $ | -2,421 | $ | 4,935 | $ | 3,621 | ||||||
Shares: | ||||||||||||
Basic: Weighted average common shares outstanding | 8,307 | 8,589 | 9,032 | |||||||||
Add: Dilutive effect of outstanding options as determined by the treasury stock method | - | 114 | 89 | |||||||||
Diluted: Weighted average common and common equivalent shares outstanding | 8,307 | 8,703 | 9,121 | |||||||||
Net (loss) income per common share: | ||||||||||||
Basic | $ | -0.29 | $ | 0.57 | $ | 0.4 | ||||||
Diluted | -0.29 | 0.57 | 0.4 | |||||||||
15_Stock_repurchase_program
15. Stock repurchase program | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block Supplement [Abstract] | |
Treasury Stock [Text Block] | 15. Stock repurchase program |
16_Geographic_area_information
16. Geographic area information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Reporting Disclosure [Text Block] | 16. Geographic area information | |||||||||||
Information regarding our operations by geographic area is contained in the following table. These amounts in the geographic area table are based on the location of the customer and vendor. | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Net sales: | ||||||||||||
United States | $ | 38,567 | $ | 46,377 | $ | 49,932 | ||||||
International | 14,541 | 13,764 | 18,454 | |||||||||
Total | $ | 53,108 | $ | 60,141 | $ | 68,386 | ||||||
Fixed assets, net: | ||||||||||||
United States | $ | 1,490 | $ | 1,583 | $ | 1,941 | ||||||
International | 948 | 1,149 | 1,361 | |||||||||
Total | $ | 2,438 | $ | 2,732 | $ | 3,302 | ||||||
Sales to international customers were approximately 27%, 23%, and 27% in 2014, 2013, and 2012 respectively. Sales to Europe represented 49%, 52%, and 52%, sales to the Pacific Rim (which includes Australia and Asia) represented 33%, 26%, and 18%, and sales to Canada represented 5%, 10%, and 16% of total international sales in 2014, 2013, and 2012 respectively. International long-lived assets consist of net fixed assets located at our foreign subsidiary in the United Kingdom as well as our contract manufacturers in China, Thailand, Malaysia and Mexico. | ||||||||||||
17_Quarterly_results_of_operat
17. Quarterly results of operations (unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Financial Information [Text Block] | 17. Quarterly results of operations (unaudited) | |||||||||||||||
Our quarterly results of operations for 2014 and 2013 are as follows: | ||||||||||||||||
Quarter Ended | ||||||||||||||||
(In thousands, except per share amounts) | 31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||
2014:00:00 | ||||||||||||||||
Net sales | $ | 13,619 | $ | 13,804 | $ | 13,389 | $ | 12,296 | ||||||||
Gross profit | 5,726 | 5,788 | 5,286 | 4,911 | ||||||||||||
Net income (loss) | 394 | 175 | 50 | -3,040 | ||||||||||||
Net income (loss) per share: | ||||||||||||||||
Basic | 0.05 | 0.02 | 0.01 | -0.37 | ||||||||||||
Diluted | 0.05 | 0.02 | 0.01 | -0.37 | ||||||||||||
2013:00:00 | ||||||||||||||||
Net sales | $ | 15,057 | $ | 15,788 | $ | 16,768 | $ | 12,528 | ||||||||
Gross profit | 6,433 | 6,452 | 7,206 | 5,001 | ||||||||||||
Net income | 1,160 | 1,215 | 1,451 | 1,109 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | 0.13 | 0.14 | 0.17 | 0.13 | ||||||||||||
Diluted | 0.13 | 0.14 | 0.17 | 0.13 | ||||||||||||
2_Summary_of_significant_accou1
2. Summary of significant accounting policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Year ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||
Balance, beginning of period | $ | 63 | $ | 66 | $ | 70 | |||||||
Additions charged to costs and expenses | 37 | - | - | ||||||||||
Deductions | - | -3 | -4 | ||||||||||
Balance, end of period | $ | 100 | $ | 63 | $ | 66 | |||||||
Accounts Receivable, Additional Narrative Disclosure | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
GTECH | 15% | 21% | |||||||||||
Eurocoin | 11% | 22% | |||||||||||
Suzo-Happ | 23% | 6% | |||||||||||
CMC Daymark | 11% | 19% | |||||||||||
Concentration Risk, Customer | 15% | 21% | |||||||||||
Schedule of Product Warranty Liability [Table Text Block] | Year ended December 31, | ||||||||||||
(In thousands) | 2014 | 2013 | 2012 | ||||||||||
Balance, beginning of period | $ | 366 | $ | 274 | $ | 421 | |||||||
Warranties issued | 183 | 492 | 104 | ||||||||||
Warranty settlements | -262 | -400 | -251 | ||||||||||
Balance, end of period | $ | 287 | $ | 366 | $ | 274 |
4_Inventories_Tables
4. Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | December 31, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Raw materials and purchased component parts | $ | 6,183 | $ | 7,263 | ||||
Work-in-process | 4 | 31 | ||||||
Finished goods | 5,619 | 6,215 | ||||||
$ | 11,806 | $ | 13,509 |
5_Fixed_assets_Tables
5. Fixed assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | December 31, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Tooling, machinery and equipment | $ | 10,620 | $ | 12,066 | ||||
Furniture and office equipment | 1,489 | 1,492 | ||||||
Computer software and equipment | 6,132 | 5,986 | ||||||
Leasehold improvements | 1,952 | 1,926 | ||||||
20,193 | 21,470 | |||||||
Less: Accumulated depreciation and amortization | -17,858 | -18,989 | ||||||
2,335 | 2,481 | |||||||
Construction in-process | 103 | 251 | ||||||
$ | 2,438 | $ | 2,732 |
6_Intangible_assets_Tables
6. Intangible assets (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure Text Block [Abstract] | ||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
(In thousands) | ||||||||||||||||
Purchased technology | $ | 1,604 | $ | -1,172 | $ | 1,604 | $ | -924 | ||||||||
Customer relationships | 1,300 | -729 | 1,300 | -513 | ||||||||||||
Trademark | 480 | -162 | 480 | -113 | ||||||||||||
Covenant not to compete | 146 | -146 | 146 | -146 | ||||||||||||
Patents | 57 | -37 | 57 | -35 | ||||||||||||
Other | 80 | -80 | 80 | -80 | ||||||||||||
Total | $ | 3,667 | $ | -2,326 | $ | 3,667 | $ | -1,811 |
7_Accrued_liabilities_Tables
7. Accrued liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | December 31, | |||||||
(In thousands) | 2014 | 2013 | ||||||
Salaries and compensation related | $ | 1,852 | $ | 1,447 | ||||
Warranty | 207 | 282 | ||||||
Professional and consulting | 959 | 139 | ||||||
Other | 302 | 347 | ||||||
$ | 3,320 | $ | 2,215 |
12_Stock_incentive_plans_Table
12. Stock incentive plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected option term | 6.6 years | 6.8 years | 6.7 years | ||||||||||
Expected volatility | 53.80% | 56.50% | 57.80% | ||||||||||
Risk-free interest rate | 1.60% | 0.80% | 0.80% | ||||||||||
Dividend yield | 2.60% | 3.10% | -% | ||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
Number of Shares | |||||||||||||
Outstanding at December 31, 2013 | 718,475 | $ | 8.49 | ||||||||||
Granted | 169,500 | 11.11 | |||||||||||
Exercised | -6,000 | 2.18 | |||||||||||
Forfeited | -62,500 | 8.51 | |||||||||||
Expired | -23,500 | 31.58 | |||||||||||
Outstanding at December 31, 2014 | 795,975 | $ | 8.41 | 5.7 years | $ | 87,000 | |||||||
Options exercisable at December 31, 2014 | 490,725 | $ | 7.72 | 4.1 years | $ | 87,000 | |||||||
Options vested or expected to vest | 784,108 | $ | 8.39 | 6.0 years | $ | 87,000 |
13_Income_taxes_Tables
13. Income taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, | |||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 176 | $ | 1,479 | $ | 1,973 | ||||||
State | 15 | 38 | 46 | |||||||||
Foreign | 12 | 33 | 40 | |||||||||
203 | 1,550 | 2,059 | ||||||||||
Deferred: | ||||||||||||
Federal | -1,653 | 80 | -116 | |||||||||
State | 17 | -34 | 21 | |||||||||
Foreign | - | - | - | |||||||||
-1,636 | 46 | -95 | ||||||||||
Income tax (benefit) provision | $ | -1,433 | $ | 1,596 | $ | 1,964 | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, | |||||||||||
(In thousands) | 2014 | 2013 | ||||||||||
Deferred tax assets: | ||||||||||||
Foreign net operating losses | $ | 282 | $ | 242 | ||||||||
Capitalized research and development | - | 68 | ||||||||||
Accrued lawsuit settlement expenses | 1,262 | - | ||||||||||
Inventory reserves | 1,063 | 1,050 | ||||||||||
Deferred revenue | 56 | 59 | ||||||||||
Warranty reserve | 100 | 127 | ||||||||||
Stock compensation expense | 1,049 | 956 | ||||||||||
Other accrued compensation | 406 | - | ||||||||||
Foreign tax and other credits | 106 | 45 | ||||||||||
Other liabilities and reserves | 312 | 491 | ||||||||||
Gross deferred tax assets | 4,636 | 3,038 | ||||||||||
Valuation allowance | -282 | -242 | ||||||||||
Net deferred tax assets | 4,354 | 2,796 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation | 142 | 175 | ||||||||||
Other | 76 | 46 | ||||||||||
Net deferred tax liabilities | 218 | 221 | ||||||||||
Total net deferred tax assets | 4,136 | $ | 2,575 | |||||||||
Summary of Valuation Allowance [Table Text Block] | Year ended December 31, | |||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Balance, beginning of period | $ | 242 | $ | 216 | $ | 176 | ||||||
Additions charged to income tax provision | 40 | 56 | 40 | |||||||||
Reductions credited to income tax provision | - | -30 | - | |||||||||
Balance, end of period | $ | 282 | $ | 242 | $ | 216 | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory tax rate | 34.00% | 34.00% | 34.00% | |||||||||
R&D credit | 6 | - | - | |||||||||
State income taxes, net of federal income taxes | -0.5 | 0.1 | 0.8 | |||||||||
Valuation allowance and tax accruals | -1.1 | 0.9 | 0.9 | |||||||||
Uncertain tax positions | -1 | - | - | |||||||||
Miscellaneous permanent items | -0.3 | -8.3 | -0.8 | |||||||||
Other | 0.1 | -2.3 | 0.3 | |||||||||
Effective tax rate | 37.20% | 24.40% | 35.20% | |||||||||
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | (In thousands) | 2014 | 2013 | |||||||||
Unrecognized tax benefits as of January 1 | $ | 106 | $ | 251 | ||||||||
Tax positions taken during the current period | 18 | 79 | ||||||||||
Lapse of statute of limitations | - | -224 | ||||||||||
Unrecognized tax benefits as of December 31 | $ | 124 | $ | 106 |
14_Earnings_per_share_Tables
14. Earnings per share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Net (loss) income | $ | -2,421 | $ | 4,935 | $ | 3,621 | ||||||
Shares: | ||||||||||||
Basic: Weighted average common shares outstanding | 8,307 | 8,589 | 9,032 | |||||||||
Add: Dilutive effect of outstanding options as determined by the treasury stock method | - | 114 | 89 | |||||||||
Diluted: Weighted average common and common equivalent shares outstanding | 8,307 | 8,703 | 9,121 | |||||||||
Net (loss) income per common share: | ||||||||||||
Basic | $ | -0.29 | $ | 0.57 | $ | 0.4 | ||||||
Diluted | -0.29 | 0.57 | 0.4 |
16_Geographic_area_information1
16. Geographic area information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Year Ended December 31, | |||||||||||
(In thousands) | 2014 | 2013 | 2012 | |||||||||
Net sales: | ||||||||||||
United States | $ | 38,567 | $ | 46,377 | $ | 49,932 | ||||||
International | 14,541 | 13,764 | 18,454 | |||||||||
Total | $ | 53,108 | $ | 60,141 | $ | 68,386 | ||||||
Fixed assets, net: | ||||||||||||
United States | $ | 1,490 | $ | 1,583 | $ | 1,941 | ||||||
International | 948 | 1,149 | 1,361 | |||||||||
Total | $ | 2,438 | $ | 2,732 | $ | 3,302 |
17_Quarterly_results_of_operat1
17. Quarterly results of operations (unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | Quarter Ended | 2013:00:00 | ||||||||||||||||||||||||||||||
(In thousands, except per share amounts) | 31-Mar | 30-Jun | 30-Sep | 31-Dec | Net sales | $ | 15,057 | $ | 15,788 | $ | 16,768 | $ | 12,528 | |||||||||||||||||||
2014:00:00 | Gross profit | 6,433 | 6,452 | 7,206 | 5,001 | |||||||||||||||||||||||||||
Net sales | $ | 13,619 | $ | 13,804 | $ | 13,389 | $ | 12,296 | Net income | 1,160 | 1,215 | 1,451 | 1,109 | |||||||||||||||||||
Gross profit | 5,726 | 5,788 | 5,286 | 4,911 | Net income per share: | |||||||||||||||||||||||||||
Net income (loss) | 394 | 175 | 50 | -3,040 | Basic | 0.13 | 0.14 | 0.17 | 0.13 | |||||||||||||||||||||||
Net income (loss) per share: | Diluted | 0.13 | 0.14 | 0.17 | 0.13 | |||||||||||||||||||||||||||
Basic | 0.05 | 0.02 | 0.01 | -0.37 | ||||||||||||||||||||||||||||
Diluted | 0.05 | 0.02 | 0.01 | -0.37 |
2_Summary_of_significant_accou2
2. Summary of significant accounting policies (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounting Policies [Abstract] | ||||
Allowance for Doubtful Accounts Receivable, Current | $100,000 | $63,000 | ||
Depreciation | 925,000 | 1,216,000 | 1,183,000 | |
Research and Development Expense | 4,302,000 | 4,065,000 | 4,239,000 | |
Capitalized Computer Software, Net | 169,000 | 370,000 | ||
Capitalized Computer Software, Amortization | 201,000 | 199,000 | 189,000 | |
Advertising Expense | $1,058,000 | $949,000 | $2,013 | |
Trade and Loan Receivables, Method of Accounting for Receivables that Can be Contractually Prepaid, Policy [Policy Text Block] | $1,191,000 |
2_Summary_of_significant_accou3
2. Summary of significant accounting policies (Details) - Valuation for Accounts Receivable (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation for Accounts Receivable [Abstract] | |||
Balance, beginning of period | $63 | $66 | $70 |
Additions charged to costs and expenses | 37 | ||
Deductions | -3 | -4 | |
Balance, end of period | $100 | $63 | $66 |
2_Summary_of_significant_accou4
2. Summary of significant accounting policies (Details) - Accounts receivable from customers representing 10% or more of total accounts receivable were as fol | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts receivable from customers representing 10% or more of total accounts receivable were as fol [Abstract] | ||
Customer | 15% | 21% |
2_Summary_of_significant_accou5
2. Summary of significant accounting policies (Details) - Sales to customers representing 10% or more of total net sales were as follows: | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Sales to customers representing 10% or more of total net sales were as follows: [Abstract] | |||
Sales to customers | 16% | 12% | 18% |
2_Summary_of_significant_accou6
2. Summary of significant accounting policies (Details) - Product Warranty Liability (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Product Warranty Liability [Abstract] | |||
Balance, beginning of period | $366 | $274 | $421 |
Warranties issued | 183 | 492 | 104 |
Warranty settlements | -262 | -400 | -251 |
Balance, end of period | $287 | $366 | $274 |
3_Contingent_Consideration_Det
3. Contingent Consideration (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Combination, Contingent Consideration Arrangements [Abstract] | |||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Significant Inputs | 30% | ||
Business Acquisition, Contingent Consideration, at Fair Value | $0 | ||
Business Acquisition, Contingent Consideration, at Fair Value, Noncurrent | 60,000 | ||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $60,000 | $900,000 |
4_Inventories_Details_Inventor
4. Inventories (Details) - Inventory Components (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Components [Abstract] | ||
Raw materials and purchased component parts | $6,183 | $7,263 |
Work-in-process | 4 | 31 |
Finished goods | 5,619 | 6,215 |
$11,806 | $13,509 |
5_Fixed_assets_Details_Fixed_A
5. Fixed assets (Details) - Fixed Asset Components (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fixed Asset Components [Abstract] | ||
Tooling, machinery and equipment | $10,620 | $12,066 |
Furniture and office equipment | 1,489 | 1,492 |
Computer software and equipment | 6,132 | 5,986 |
Leasehold improvements | 1,952 | 1,926 |
20,193 | 21,470 | |
Less: Accumulated depreciation and amortization | -17,858 | -18,989 |
2,335 | 2,481 | |
Construction in-process | 103 | 251 |
$2,438 | $2,732 |
6_Intangible_assets_Details
6. Intangible assets (Details) (USD $) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Text Block [Abstract] | ||||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $99,000 | $513,000 | $568,000 | $515,000 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 456,000 | |||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 333,000 | |||||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Three | 244,000 | |||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 102,000 | |||||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling after Year Five | $107,000 |
6_Intangible_assets_Details_In
6. Intangible assets (Details) - Intangible Asset Components (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Intangible Asset Components [Abstract] | ||
Purchased technology | $1,604 | $1,604 |
Purchased technology | -1,172 | -924 |
Customer relationships | 1,300 | 1,300 |
Customer relationships | -729 | -513 |
Trademark | 480 | 480 |
Trademark | -162 | -113 |
Covenant not to compete | 146 | 146 |
Covenant not to compete | -146 | -146 |
Patents | 57 | 57 |
Patents | -37 | -35 |
Other | 80 | 80 |
Other | -80 | -80 |
Total | 3,667 | 3,667 |
Total | ($2,326) | ($1,811) |
7_Accrued_liabilities_Details_
7. Accrued liabilities (Details) - Accrued Liabilities Components (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities Components [Abstract] | ||
Salaries and compensation related | $1,852 | $1,447 |
Warranty | 207 | 282 |
Professional and consulting | 959 | 139 |
Other | 302 | 347 |
$3,320 | $2,215 |
8_Restructuring_Details
8. Restructuring (Details) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Restructuring and Related Cost [Abstract] | |
Restructuring Charges | $138,000 |
9_Retirement_savings_plan_Deta
9. Retirement savings plan (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure Text Block Supplement [Abstract] | |||
Defined Contribution Plan, Cost Recognized | $282,000 | $265,000 | $280,000 |
10_Borrowings_Details
10. Borrowings (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | $20,000,000 |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% |
Line of Credit Facility, Current Borrowing Capacity | $20,000,000 |
11_Commitments_and_contingenci1
11. Commitments and contingencies (Details) (USD $) | 12 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Litigation Settlement, Amount | $3,600,000 | |||||||
Loss Contingency, Settlement Agreement, Terms | $25,000 | |||||||
Loss Contingency, Loss in Period | 3,625,000 | |||||||
Operating Leases, Rent Expense | 918,000 | 918,000 | 1,005,000 | |||||
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | 850,000 | |||||||
Operating Leases, Future Minimum Payments, Due in Two Years | 584,000 | |||||||
Operating Leases, Future Minimum Payments, Due in Three Years | 86,000 | |||||||
Operating Leases, Future Minimum Payments, Due in Four Years | 4,000 | |||||||
Operating Leases, Future Minimum Payments, Due in Five Years | $1,000 |
12_Stock_incentive_plans_Detai
12. Stock incentive plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 600,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 566,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value (in Dollars per share) | $11.11 | $7.94 | $6.91 |
Employee Benefits and Share-based Compensation | $506,000 | $521,000 | $520,000 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 377,000 | 127,000 | 183,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 955,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 2 years 6 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | 20,000 | 910,000 | 222,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 943,000 | 815,000 | 641,000 |
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | 13,000 | 1,045,000 | 172,000 |
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options | 7,000 | 132,000 | 57,000 |
Deferred Compensation Arrangement with Individual, Common Stock Reserved for Future Issuance (in Shares) | 8,663 | 17,613 | 20,055 |
Adjustments to additional paid in capital, share-based compensation, resticted stock net of relinquisments for tax | 56,000 | 111,000 | |
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition | 100,000 | 139,000 | 134,000 |
Resticted Stock Units, weighted average exercise price | $8.07 |
12_Stock_incentive_plans_Detai1
12. Stock incentive plans (Details) - Stock Option Assumptions | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Option Assumptions [Abstract] | |||
Expected option term | 6 years 219 days | 6 years 292 days | 6 years 255 days |
Expected volatility | 53.80% | 56.50% | 57.80% |
Risk-free interest rate | 1.60% | 0.80% | 0.80% |
Dividend yield | 2.60% | 3.10% |
12_Stock_incentive_plans_Detai2
12. Stock incentive plans (Details) - Stock Option Rollforward (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2012 | |
Stock Option Rollforward [Abstract] | ||
Outstanding at December 31, 2013 (in Shares) | 718,475 | |
Outstanding at December 31, 2013 | $8.49 | |
Outstanding at December 31, 2014 (in Shares) | 795,975 | 718,475 |
Outstanding at December 31, 2014 | $8.41 | $8.49 |
Outstanding at December 31, 2014 | 5 years 255 days | |
Outstanding at December 31, 2014 (in Dollars) | $87,000 | |
Options exercisable at December 31, 2014 (in Shares) | 490,725 | |
Options exercisable at December 31, 2014 | $7.72 | |
Options exercisable at December 31, 2014 | 4 years 36 days | |
Options exercisable at December 31, 2014 (in Dollars) | 87,000,000 | |
Options vested or expected to vest (in Shares) | 784,108 | |
Options vested or expected to vest | $8.39 | |
Options vested or expected to vest | 6 years | |
Options vested or expected to vest (in Dollars) | 87,000,000 | |
Granted (in Shares) | 169,500 | |
Granted | $11.11 | |
Exercised (in Dollars) | ($6,000,000) | |
Exercised | $2.18 | |
Forfeited (in Shares) | -62,500 | |
Forfeited | $8.51 | |
Expired (in Shares) | -23,500 | |
Expired | $31.58 |
13_Income_taxes_Details
13. Income taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, Percent | 37.20% | 24.40% | 35.20% |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $224,000 | ||
Unrecognized Tax Benefits | 124,000 | 106,000 | 220,000 |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 104,000 | 68,000 | |
Deferred Tax Assets, Tax Credit Carryforwards | 3,000 | ||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | -56,000 | -29,000 | 92,000 |
Deferred Tax Assets, Valuation Allowance | 282,000 | 242,000 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 124,000 | ||
Income Tax Examination, Penalties and Interest Accrued | $20,000 | $10,000 |
13_Income_taxes_Details_Income
13. Income taxes (Details) - Income Tax Provision Components (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $176 | $1,479 | $1,973 |
State | 15 | 38 | 46 |
Foreign | 12 | 33 | 40 |
203 | 1,550 | 2,059 | |
Deferred: | |||
Federal | -1,653 | 80 | -116 |
State | 17 | -34 | 21 |
-1,636 | 46 | -95 | |
Income tax (benefit) provision | ($1,433) | $1,596 | $1,964 |
13_Income_taxes_Details_Deferr
13. Income taxes (Details) - Deferred Income Tax Components (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | ||
Foreign net operating losses | $282,000 | $242,000 |
Capitalized research and development | 104,000 | 68,000 |
Accrued lawsuit settlement expenses | 1,262,000 | 127,000 |
Inventory reserves | 1,063,000 | 1,050,000 |
Deferred revenue | 56,000 | 59,000 |
Warranty reserve | 1,262,000 | 127,000 |
Stock compensation expense | 1,049,000 | 956,000 |
Other accrued compensation | 406,000 | |
Foreign tax and other credits | 106,000 | 45,000 |
Other liabilities and reserves | 312,000 | 491,000 |
Gross deferred tax assets | 4,636,000 | 3,038,000 |
Valuation allowance | -282,000 | -242,000 |
Net deferred tax assets | 4,354,000 | 2,796,000 |
Deferred tax liabilities: | ||
Depreciation | 142,000 | 175,000 |
Other | 76,000 | 46,000 |
Net deferred tax liabilities | 218,000 | 221,000 |
Total net deferred tax assets | $4,136,000 | $2,575,000 |
13_Income_taxes_Details_Valuat
13. Income taxes (Details) - Valuation Allowance Rollforward (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation Allowance Rollforward [Abstract] | |||
Balance, beginning of period | $242 | $216 | $176 |
Additions charged to income tax provision | 40 | 56 | 40 |
Reductions credited to income tax provision | -30 | ||
Balance, end of period | $282 | $242 | $216 |
13_Income_taxes_Details_Effect
13. Income taxes (Details) - Effective Tax Rate Reconciliation | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Tax Rate Reconciliation [Abstract] | |||
Federal statutory tax rate | 34.00% | 34.00% | 34.00% |
R&D credit | 6.00% | ||
State income taxes, net of federal income taxes | -0.50% | 0.10% | 0.80% |
Valuation allowance and tax accruals | -1.10% | 0.90% | 0.90% |
Uncertain tax positions | -1.00% | ||
Miscellaneous permanent items | -0.30% | -8.30% | -0.80% |
Other | 0.10% | -2.30% | 0.30% |
Effective tax rate | 37.20% | 24.40% | 35.20% |
13_Income_taxes_Details_Unreco
13. Income taxes (Details) - Unrecognized Tax Benefit Rollforward (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Unrecognized Tax Benefit Rollforward [Abstract] | ||
Unrecognized tax benefits as of January 1 | $106,000 | $220,000 |
Tax positions taken during the current period | 18,000 | 79,000 |
Lapse of statute of limitations | -224,000 | |
Unrecognized tax benefits as of December 31 | $124,000 | $106,000 |
14_Earnings_per_share_Details_
14. Earnings per share (Details) - Earnings Per Share (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net (loss) income (in Dollars) | ($3,040) | $50 | $175 | $394 | $1,109 | $1,451 | $1,215 | $1,160 | ($2,421) | $4,935 | $3,621 |
Basic: Weighted average common shares outstanding | 8,307 | 8,589 | 9,032 | ||||||||
Add: Dilutive effect of outstanding options as determined by the treasury stock method | 114 | 89 | |||||||||
Diluted: Weighted average common and common equivalent shares outstanding | 8,307 | 8,703 | 9,121 | ||||||||
Net (loss) income per common share: | |||||||||||
Basic (in Dollars per share) | ($0.37) | $0.01 | $0.02 | $0.05 | $0.13 | $0.17 | $0.14 | $0.13 | ($0.29) | $0.57 | $0.40 |
Diluted (in Dollars per share) | ($0.37) | $0.01 | $0.02 | $0.05 | $0.13 | $0.17 | $0.14 | $0.13 | ($0.29) | $0.57 | $0.40 |
16_Geographic_area_information2
16. Geographic area information (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
16. Geographic area information (Details) [Line Items] | |||
Concentration Risk, Percentage | 27.00% | 23.00% | 27.00% |
UNITED KINGDOM [MEMBER] | |||
16. Geographic area information (Details) [Line Items] | |||
Concentration Risk, Percentage | 49.00% | 52.00% | 52.00% |
PACIFIC RIM [MEMBER] | |||
16. Geographic area information (Details) [Line Items] | |||
Concentration Risk, Percentage | 33.00% | 26.00% | 18.00% |
CANADA [MEMBER] | |||
16. Geographic area information (Details) [Line Items] | |||
Concentration Risk, Percentage | 5.00% | 10.00% | 16.00% |
16_Geographic_area_information3
16. Geographic area information (Details) - Geographic Information (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales: | |||||||||||
United States | $38,567 | $46,377 | $49,932 | ||||||||
International | 14,541 | 13,764 | 18,454 | ||||||||
Total | 12,296 | 13,389 | 13,804 | 13,619 | 12,528 | 16,768 | 15,788 | 15,057 | 53,108 | 60,141 | 68,386 |
Fixed assets, net: | |||||||||||
United States | 1,490 | 1,583 | 1,490 | 1,583 | 1,941 | ||||||
International | 948 | 1,149 | 948 | 1,149 | 1,361 | ||||||
Total | $2,438 | $2,732 | $2,438 | $2,732 | $3,302 |
17_Quarterly_results_of_operat2
17. Quarterly results of operations (unaudited) (Details) - Quarterly Financial Information (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
2014:00:00 | |||||||||||
Net sales | $12,296 | $13,389 | $13,804 | $13,619 | $12,528 | $16,768 | $15,788 | $15,057 | $53,108 | $60,141 | $68,386 |
Gross profit | 4,911 | 5,286 | 5,788 | 5,726 | 5,001 | 7,206 | 6,452 | 6,433 | 21,711 | 25,092 | 25,982 |
Net income (loss) | ($3,040) | $50 | $175 | $394 | $1,109 | $1,451 | $1,215 | $1,160 | ($2,421) | $4,935 | $3,621 |
Net income (loss) per share: | |||||||||||
Basic (in Dollars per share) | ($0.37) | $0.01 | $0.02 | $0.05 | $0.13 | $0.17 | $0.14 | $0.13 | ($0.29) | $0.57 | $0.40 |
Diluted (in Dollars per share) | ($0.37) | $0.01 | $0.02 | $0.05 | $0.13 | $0.17 | $0.14 | $0.13 | ($0.29) | $0.57 | $0.40 |
17_Quarterly_results_of_operat3
17. Quarterly results of operations (unaudited) (Details) - Quarter Ended (In thousands, except per share amounts) March 31 June 30 September 30 D (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
2013:00:00 | |||||||||||
Net sales | $12,296 | $13,389 | $13,804 | $13,619 | $12,528 | $16,768 | $15,788 | $15,057 | $53,108 | $60,141 | $68,386 |
Gross profit | 4,911 | 5,286 | 5,788 | 5,726 | 5,001 | 7,206 | 6,452 | 6,433 | 21,711 | 25,092 | 25,982 |
Net income | ($3,040) | $50 | $175 | $394 | $1,109 | $1,451 | $1,215 | $1,160 | ($2,421) | $4,935 | $3,621 |
Net income per share: | |||||||||||
Basic (in Dollars per share) | ($0.37) | $0.01 | $0.02 | $0.05 | $0.13 | $0.17 | $0.14 | $0.13 | ($0.29) | $0.57 | $0.40 |
Diluted (in Dollars per share) | ($0.37) | $0.01 | $0.02 | $0.05 | $0.13 | $0.17 | $0.14 | $0.13 | ($0.29) | $0.57 | $0.40 |