TransAct Technologies (TACT) 10-Q 10 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	3 Months Ended
	Mar. 31, 2018	Feb. 28, 2018	Jun. 30, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	TRANSACT TECHNOLOGIES INC
Entity Central Index Key	1,017,303
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 0
Entity Common Stock, Shares Outstanding		0
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 4,669	$ 5,507
Accounts receivable, net	8,659	10,948
Inventories	8,881	8,875
Prepaid income taxes	356	514
Other current assets	565	517
Total current assets	23,130	26,361
Fixed assets, net of accumulated depreciation of $18,991 and $18,336, respectively	2,361	2,169
Goodwill	2,621	2,621
Deferred tax assets	2,295	2,308
Intangible assets, net of accumulated amortization of $3,024, and $2,779, respectively	436	458
Other assets	32	33
Total noncurrent assets	7,745	7,589
Total assets	30,875	33,950
Current liabilities:
Accounts payable	3,181	3,841
Accrued liabilities	2,329	3,339
Deferred revenue	313	169
Total current liabilities	5,823	7,349
Deferred revenue, net of current portion	68	69
Deferred rent, net of current portion	272	271
Other liabilities	245	247
Total noncurrent liabilities	585	587
Total liabilities	6,408	7,936
Shareholders' equity:
Common stock, $0.01 par value, 20,000,000 shares authorized; 11,185,331 and 11,170,881 shares issued, respectively; 7,383,364 and 7,782,292 shares outstanding, respectively	114	114
Additional paid-in capital	31,362	31,353
Retained earnings	24,763	24,756
Treasury stock, 3,851,967 and 3,388,589 shares, at cost	(100)	(99)
Treasury stock, at cost, 3,801,967 and 3,388,589 shares, respectively	(31,672)	(30,110)
Total shareholders' equity	24,467	26,014
Total liabilities and shareholders' equity	$ 30,875	$ 33,950

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets:
Fixed assets, accumulated depreciation	$ 19,934	$ 19,752
Intangible assets, accumulated amortization	$ 3,391	$ 3,359
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	11,412,095	11,366,526
Common stock, shares outstanding (in shares)	7,400,883	7,478,094
Treasury stock (in shares)	4,011,212	3,888,432

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Net sales	$ 12,243	$ 13,997
Cost of sales	6,381	7,904
Gross profit	5,862	6,093
Operating expenses:
Engineering, design and product development	1,221	993
Selling and marketing	1,573	1,672
General and administrative	2,212	2,012
Operating expenses	5,006	4,677
Operating income	856	1,416
Interest and other income (expense):
Interest, net	(8)	(8)
Other, net	10	(6)
Interest and other income (expense)	2	(14)
Income before income taxes	858	1,402
Income tax provision	178	459
Net income	$ 680	$ 943
Net income per common share:
Basic (in dollars per share)	$ 0.09	$ 0.13
Diluted (in dollars per share)	$ 0.09	$ 0.13
Shares used in per-share calculation:
Basic (in shares)	7,533	7,396
Diluted (in shares)	7,901	7,445
Dividends declared and paid per common share (in dollars per share)	$ 0.09	$ 0.08

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract]
Net income	$ 680	$ 943
Foreign currency translation adjustment, net of tax	(1)	2
Comprehensive income	$ 679	$ 945

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 680	$ 943
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense	161	146
Depreciation and amortization	221	313
Deferred income tax provision	12	21
Foreign currency transaction (gains) losses	(9)	8
Changes in operating assets and liabilities:
Accounts receivable	2,297	1,282
Inventories	(2)	(254)
Prepaid income taxes	161	0
Other current and long term assets	(46)	(169)
Accounts payable	(740)	(1,324)
Accrued liabilities and other liabilities	(872)	(195)
Net cash provided by operating activities	1,863	771
Cash flows from investing activities:
Capital expenditures	(298)	(234)
Payments to Acquire Software	(10)	0
Net cash used in investing activities	(308)	(234)
Cash flows from financing activities:
Payment of dividends on common stock	(673)	(587)
Purchases of common stock for treasury	(1,562)	0
Proceeds from stock option exercises	94	0
Incremental tax benefits on stock options exercised	(246)	(18)
Net cash used in financing activities	(2,387)	(605)
Effect of exchange rate changes on cash and cash equivalents	(6)	(6)
Decrease in cash and cash equivalents	(838)	(74)
Cash and cash equivalents, beginning of period	5,507	2,503
Cash and cash equivalents, end of period	4,669	2,429
Supplemental schedule of non-cash investing activities:
Capital expenditures funded by accounts payable	$ 122	$ 98

Basis of presentation

Basis of presentation	3 Months Ended
	Mar. 31, 2018
Basis of presentation [Abstract]
Basis of presentation	1. Basis of presentation The accompanying unaudited financial statements of TransAct Technologies Incorporated (the "Company") have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP to be included in full year financial statements. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the periods presented have been included and are of a normal recurring nature. The December 31, 2017 Condensed Consolidated Balance Sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2017 included in our Annual Report on Form 10-K. The financial position and results of operations of our U.K. subsidiary are measured using local currency as the functional currency. Assets and liabilities of such subsidiary have been translated at the end of period exchange rates, and related revenues and expenses have been translated at the weighted average exchange rates with the resulting translation gain or loss recorded in "Accumulated other comprehensive loss, net of tax", in the Condensed Consolidated Balance Sheets. Transaction gains and losses are included in "Interest and other income (expense)" in the Condensed Consolidated Statements of Income. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2018
Inventories [Abstract]
Inventories	2. Inventories, net The components of inventories, net are: March 31, 2018 December 31, 2017 (In thousands) Raw materials and purchased component parts $ 6,658 $ 6,322 Work-in-process 113 - Finished goods 2,110 2,553 $ 8,881 $ 8,875

Accrued product warranty liabil

Accrued product warranty liability	3 Months Ended
	Mar. 31, 2018
Accrued product warranty liability [Abstract]
Accrued product warranty liability	3. Accrued product warranty liability 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 during the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 2017 (In thousands) Balance, beginning of period $ 267 $ 267 Warranties issued 80 55 Warranty settlements (69 ) (65 ) Balance, end of period $ 278 $ 257 As of March 31, 2018, $196 thousand of the accrued product warranty liability is classified as current in "Accrued liabilities" in the Condensed Consolidated Balance Sheets and the remaining $82 thousand is classified as non-current in "Other liabilities".

Earnings per share

Earnings per share	3 Months Ended
	Mar. 31, 2018
Earnings per share [Abstract]
Earnings per share	4. Earnings per share The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding: Three Months Ended March 31, 2018 2017 (In thousands, except per share data) Net income $ 680 $ 943 Shares: Basic: Weighted average common shares outstanding 7,533 7,396 Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method 368 49 Diluted: Weighted average common and common equivalent shares outstanding 7,901 7,445 Net income per common share: Basic $ 0.09 $ 0.13 Diluted $ 0.09 $ 0.13 The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options and restricted stock units, when the average market price of the common stock is lower than the exercise price of the related stock award during the period. These outstanding stock awards are not included in the computation of diluted earnings per share because the effect would be anti-dilutive. For the three months ended March 31, 2018 and 2017, there were 147 thousand and 846 thousand, respectively, of potentially dilutive shares consisting of stock awards that were excluded from the calculation of earnings per diluted share.

Shareholders' equity

Shareholders' equity	3 Months Ended
	Mar. 31, 2018
Shareholders' equity [Abstract]
Shareholders' equity	5. Shareholders' equity Changes in shareholders' equity for the three months ended March 31, 2018 were as follows (in thousands): Balance at December 31, 2017 $ 26,014 Net income 680 Share-based compensation expense 161 Issuance of shares from exercise of stock options 94 Foreign currency translation adjustment (1 ) Relinquishment of stock awards upon exercise and fully vested deferred stock units (246 ) Dividends declared and paid on common stock (673 ) Purchase of common stock for treasury (1,562 ) Balance at March 31, 2018 $ 24,467 For the three months ended March 31, 2018, our Board of Directors declared a quarterly cash dividend of $0.09 per share, totaling $673 thousand, which was paid on March 15, 2018 to common shareholders of record at the close of business on February 20, 2018. For the three months ended March 31, 2017, dividends declared and paid totaled $587 thousand, or $0.08 per share.

Income taxes

Income taxes	3 Months Ended
	Mar. 31, 2018
Income taxes [Abstract]
Income taxes	6. Income taxes We recorded an income tax provision for the first quarter of 2018 of $178 thousand at an effective tax rate of 20.7%, compared to an income tax provision during the first quarter of 2017 of $459 thousand at an effective tax rate of 32.7%. The effective tax rate in the first quarter of 2018 was lower than the first quarter 2017 effective tax rate due to the passage of the Tax Cuts and Jobs Act (the "Tax Reform Act") enacted on December 22, 2017. The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a one-time repatriation tax on undistributed foreign earnings. The Tax Reform Act reduced the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate effective January 1, 2018 and, as a result, reduced our statutory U.S. corporate income tax rate from 34% to 21%. On December 22, 2017, the Securities and Exchange Commission ("SEC") staff issued Staff Accounting Bulletin No. 118 ("SAB 118") to address the application of U.S. GAAP in situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. SAB 118 provides a measurement period, not to exceed one year from the enactment of the Tax Reform Act. In accordance with SAB 118, the Company has recognized provisional tax impacts related to the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements for the year ended December 31, 2017, and no changes were made to these provisional amounts during the quarter ended March 31, 2018. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions, additional regulatory guidance from Treasury, the Internal Revenue Service and State Governments, and actions the Company may take as a result of the Tax Reform Act, but the enactment of this legislation did not result in a material adjustment for the quarter ended March 31, 2018. While the Tax Reform Act provides for a territorial tax system, beginning in 2018, it includes two new U.S. tax base erosion provisions, the global intangible low-taxed income ("GILTI") provisions and the base-erosion and anti-abuse tax ("BEAT") provisions. The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary's tangible assets. The BEAT provisions in the Tax Reform Act eliminate the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular tax. The Company has not recorded any impacts of GILTI or BEAT in its consolidated financial statements for the quarter ended March 31, 2018. We are subject to U.S. federal income tax, as well as income tax in certain state and foreign jurisdictions. We have substantially concluded all U.S. federal income tax, state and local, and foreign tax regulatory examination matters through 2013. However, our federal tax returns for the years 2014 through 2016 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 Condensed Consolidated Financial Statements. As of March 31, 2018, we had $104 thousand of total gross unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods. We expect $28 thousand of the $104 thousand of unrecognized tax benefits will reverse in 2018 upon the expiration of the statute of limitations. We recognize interest and penalties related to uncertain tax positions in the income tax provision reported as "Deferred tax assets" in the Condensed Consolidated Balance Sheet. As of March 31, 2018, we have $20 thousand of accrued interest and penalties related to uncertain tax positions. The Company maintains a valuation allowance against certain deferred tax assets where realization is not certain.

Accounting pronouncements

Accounting pronouncements	3 Months Ended
	Mar. 31, 2018
Accounting pronouncements [Abstract]
Accounting pronouncements	7. Accounting pronouncements The following accounting pronouncements will be adopted in future reporting periods: In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842 Leases The following accounting pronouncements were adopted during 2018: 1) Revenue recognition: ASU No. 2014-09," Revenue from Contracts with Customers" and its related amendments (collectively, ASC 606) are effective for reporting periods beginning after December 15, 2017, and interim periods therein. We adopted ASC 606 effective January 1, 2018 and elected the modified retrospective approach. The results for periods before 2018 were not adjusted for the new standard and any cumulative effective of the change in accounting was recognized through retained earnings at the date of adoption. Periods prior to January 1, 2018 The Company's revenue recognition method prior to the adoption of ASC 606 can be found under Note 2. Summary of significant accounting policies within the "Notes to Consolidated Financial Statements" in the Annual Report on Form 10-K for the fiscal year ended December 31, 2017. Periods commencing January 1, 2018 In accordance with ASC 606, a performance obligation is a promise in a contract with a customer to transfer a distinct good or service to the customer. Some of our contracts with customers contain a single performance obligation, while other contracts contain multiple performance obligations (most commonly when contracts include product and extended warranties). A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. When there are multiple performance obligations within a contract, we allocate the transaction price to each performance obligation based on its standalone selling price. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. To the extent the transaction price includes variable consideration, such as price protection, reserves for returns and other allowances, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the "expected value" method or the "most likely amount" method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company's judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. For a majority of our revenue, which consists of printers, terminals, consumables, and replacement parts, the Company recognizes revenue as of a point of time. The transaction price is recognized upon shipment of the order when control of the goods is transferred to the customer and at the time the performance obligation is fulfilled. We also sell 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. EPICENTRAL TM Performance obligations are satisfied over-time if the customer receives the benefits as we perform work, if the customer controls the asset as it is being produced, or if the product being produced for the customer has no alternative use and we have a contractual right to payment. For our separately priced extended warranty and maintenance agreements (including free one-year maintenance received by the customers upon completion of EPICENTRAL™ installation) revenue is recognized over-time as the customer receives the benefit. The transaction price from the maintenance services is recognized ratably over-time, using output methods, as control of the services is transferred to the customer. For extended warranties, the transaction price is recognized ratably over the warranty period, using output methods, as control of the services is transferred to the customer. In the cases where there is more than one performance obligation in a customer arrangement, the Company typically uses the "standalone selling price" method to determine the transaction price to allocate to each performance obligation. The Company sells the performance obligations separately and has established standalone selling prices for its products and services. In the case of an overall price discount, the discount is applied to each performance obligation proportionately based on standalone selling price. To determine the standalone selling price for initial EPICENTRAL™ installations, the Company uses the adjusted market assessment approach. Disaggregation of revenue The following table disaggregates our revenue by market-type, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Sales and usage-based taxes are excluded from revenues. Three Months Ended March 31, 2018 United States International Total (In thousands) Restaurant solutions $ 973 $ 72 $ 1,045 POS automation and banking 1,670 46 1,716 Casino and gaming 4,190 1,750 5,940 Lottery 635 - 635 Printrex 263 12 275 TransAct Services Group 2,448 184 2,632 Total net sales $ 10,179 $ 2,064 $ 12,243 Changes in accounting policies and financial statement impact of adopting ASC 606 Except for the changes below, we have consistently applied the accounting policies to all periods presented in the consolidated financial statements. As noted above, we adopted ASC 606 using the modified retrospective approach which allows the Company to record any changes using the cumulative effect. The adoption of the ASC 606 did not require the Company to record an adjustment to retained earnings at January 1, 2018 and did not have an impact on the first quarter consolidated income statement, basic or diluted earnings per share, consolidated statement of cash flows or consolidated balance sheet at March 31, 2018. Costs to Obtain a Contract – Contract balances Our contract liabilities consist of customer pre-payments and deferred revenue. Customer prepayments are reported as "Accrued Liabilities" in current liabilities in the Condensed Consolidated Balance Sheets and represent customer payments made in advance of performance obligations in instances where credit has not been extended and is recognized as revenue when the performance obligation is complete. Deferred revenue is reported separately in current liabilities and non-current liabilities and consists of our extended warranty contracts, EPICENTRAL™ maintenance contracts and testing service contracts, and is recognized as revenue as (or when) we perform under the contract. We do not have any contract asset balances as of March 31, 2018 or December 31, 2017. In the first quarter of 2018, we recognized revenue of $103 thousand related to our contract liabilities at January 1, 2018. Total contract liabilities consist of the following: March 31, 2018 January 1, 2018 (In thousands) Customer pre-payments $ 358 $ 79 Deferred revenue, current 313 169 Deferred revenue, non-current 68 69 Total contract liabilities $ 739 $ 317 Remaining performance obligations Remaining performance obligations represents the transaction price of firm orders for which a good or service has not been delivered to our customer. As of March 31, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $8.4 million. The Company expects to recognize revenue on $6.3 million of our remaining performance obligations within the next twelve months, with the balance of these remaining performance obligations recognized within the next 24 months. 2) Stock compensation: In May 2017, the FASB issued ASU No. 2017-09, "Compensation-Stock Compensation: Scope of modification accounting". ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU No. 2017-09 is effective for fiscal years beginning after December 15, 2017. The amendments are applied prospectively to an award modified on or after the adoption date. We adopted this guidance in the first quarter of 2018 and the adoption has not resulted in a change to our financial statements.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2018
Inventories [Abstract]
Components of inventory	The components of inventories, net are: March 31, 2018 December 31, 2017 (In thousands) Raw materials and purchased component parts $ 6,658 $ 6,322 Work-in-process 113 - Finished goods 2,110 2,553 $ 8,881 $ 8,875

Accrued product warranty liab15

Accrued product warranty liability (Tables)	3 Months Ended
	Mar. 31, 2018
Accrued product warranty liability [Abstract]
Product warranty liability	The following table summarizes the activity recorded in the accrued product warranty liability during the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 2017 (In thousands) Balance, beginning of period $ 267 $ 267 Warranties issued 80 55 Warranty settlements (69 ) (65 ) Balance, end of period $ 278 $ 257

Earnings per share (Tables)

Earnings per share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings per share [Abstract]
Earnings per share	The following table sets forth the reconciliation of basic weighted average shares outstanding and diluted weighted average shares outstanding: Three Months Ended March 31, 2018 2017 (In thousands, except per share data) Net income $ 680 $ 943 Shares: Basic: Weighted average common shares outstanding 7,533 7,396 Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method 368 49 Diluted: Weighted average common and common equivalent shares outstanding 7,901 7,445 Net income per common share: Basic $ 0.09 $ 0.13 Diluted $ 0.09 $ 0.13

Shareholders' equity (Tables)

Shareholders' equity (Tables)	3 Months Ended
	Mar. 31, 2018
Shareholders' equity [Abstract]
Changes in shareholders' equity	Changes in shareholders' equity for the three months ended March 31, 2018 were as follows (in thousands): Balance at December 31, 2017 $ 26,014 Net income 680 Share-based compensation expense 161 Issuance of shares from exercise of stock options 94 Foreign currency translation adjustment (1 ) Relinquishment of stock awards upon exercise and fully vested deferred stock units (246 ) Dividends declared and paid on common stock (673 ) Purchase of common stock for treasury (1,562 ) Balance at March 31, 2018 $ 24,467

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Inventories [Abstract]
Raw materials and purchased component parts	$ 6,658	$ 6,322
Work-in-process	113	0
Finished goods	2,110	2,553
Inventories	$ 8,881	$ 8,875

Accrued product warranty liab19

Accrued product warranty liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accrued product warranty liability [Roll Forward]
Balance, beginning of period	$ 267	$ 267
Warranties issued	80	55
Warranty settlements	(69)	(65)
Balance, end of period	278	$ 257
Accrued product warranty liability, current	196
Accrued product warranty liability, long-term	$ 82
Maximum [Member]
Warranty [Abstract]
Product warranty period	36 months

Earnings per share (Details)

Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings per share [Abstract]
Net income	$ 680	$ 943
Shares [Abstract]
Basic: Weighted average common shares outstanding (in shares)	7,533	7,396
Add: Dilutive effect of outstanding options as determined by the treasury stock method (in shares)	368	49
Diluted: Weighted average common and common equivalent shares outstanding (in shares)	7,901	7,445
Net income per common share [Abstract]
Basic (in dollars per share)	$ 0.09	$ 0.13
Diluted (in dollars per share)	$ 0.09	$ 0.13
Stock Awards [Member]
Earnings per share [Abstract]
Anti-dilutive securities excluded from computation of earnings per dilutive share (in shares)	147	846

Shareholders' equity (Details)

Shareholders' equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 26,014
Net income	680	$ 943
Share-based compensation expense	161
Issuance of deferred stock units, net of relinquishments	(246)
Issuance of shares from exercise of stock options, net of tax benefit	94
Foreign currency translation adjustment	(1)	$ 2
Dividends declared and paid on common stock	(673)
Purchase of common stock for treasury	(1,562)
Balance at December 31, 2017	$ 24,467
Dividends [Abstract]
Dividends declared and paid per common share (in dollars per share)	$ 0.09	$ 0.08
Payment of dividend on common stock	$ 673	$ 587

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2016
Income taxes [Abstract]
Income tax provision	$ 178	$ 459	$ 459
Effective tax rate	20.70%	32.70%	32.70%
Total gross unrecognized tax benefits that would impact the effective rate	$ 104
Previously unrecognized tax benefit recognized	28
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 20