TransAct Technologies (TACT) 10-K 18 Mar 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Feb. 28, 2019	Jun. 30, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	TRANSACT TECHNOLOGIES INC
Entity Central Index Key	0001017303
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Public Float			$ 87,900,000
Entity Common Stock, Shares Outstanding		7,450,968
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 4,691	$ 5,507
Accounts receivable, net	8,025	10,948
Inventories, net	12,835	8,875
Prepaid income taxes	809	514
Other current assets	677	517
Total current assets	27,037	26,361
Fixed assets, net of accumulated depreciation of $20,319 and $19,752, respectively	2,272	2,169
Goodwill	2,621	2,621
Deferred tax assets	2,198	2,308
Intangible assets, net of accumulated amortization of $3,454, and $3,359, respectively	797	458
Other assets	31	33
Total noncurrent assets	7,919	7,589
Total assets	34,956	33,950
Current liabilities:
Accounts payable	3,483	3,841
Accrued liabilities	2,765	3,339
Deferred revenue	384	169
Total current liabilities	6,632	7,349
Deferred revenue, net of current portion	265	69
Deferred rent, net of current portion	250	271
Other liabilities	242	247
Total noncurrent liabilities	757	587
Total liabilities	7,389	7,936
Shareholders' equity:
Preferred Stock, Value, Issued	0	0
Common stock, $0.01 par value, 20,000,000 shares authorized; 11,435,870 and 11,366,526 shares issued, respectively; 7,391,028 and 7,478,094 shares outstanding, respectively	115	114
Additional paid-in capital	32,129	31,353
Retained earnings	27,515	24,756
Accumulated other comprehensive loss, net of tax	(82)	(99)
Treasury stock, at cost, 4,044,842 and 3,888,432 shares	(32,110)	(30,110)
Total shareholders' equity	27,567	26,014
Total liabilities and shareholders' equity	34,956	33,950
Series A Preferred Stock [Member]
Shareholders' equity:
Preferred Stock, Value, Issued	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Assets:
Intangible assets, accumulated amortization	$ 3,487	$ 3,359
Shareholders' equity:
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	4,800,000	4,800,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
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)	11,463,141	11,366,526
Common stock, shares outstanding (in shares)	7,418,299	7,478,094
Treasury stock (in shares)	4,044,842	3,888,432
Series A Preferred Stock [Member]
Shareholders' equity:
Preferred stock par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	200,000	200,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) [Abstract]
Net sales	$ 54,587	$ 56,311	$ 57,235
Cost of sales	27,844	29,649	33,436
Gross profit	26,743	26,662	23,799
Operating expenses:
Engineering, design and product development	4,576	4,303	4,425
Selling and marketing	7,203	7,561	6,907
General and administrative	8,205	7,984	7,267
Operating expenses	19,984	19,848	18,599
Operating income (loss)	6,759	6,814	5,200
Interest and other income (expense):
Interest expense	(27)	(33)	(33)
Interest income	0	0	7
Other, net	(266)	(9)	(4)
Interest and other expense	(293)	(42)	(30)
Income (loss) before income taxes	6,466	6,772	5,170
Income tax provision (benefit)	1,040	3,561	1,553
Net income (loss)	$ 5,426	$ 3,211	$ 3,617
Net income (loss) per common share:
Basic (in dollars per share)	$ 0.73	$ 0.43	$ 0.48
Diluted (in dollars per share)	$ 0.70	$ 0.42	$ 0.47
Shares used in per-share calculation:
Basic (in shares)	7,444	7,423	7,610
Diluted (in shares)	7,759	7,592	7,655
Dividends declared and paid per common share (in dollars per share)	$ 0.36	$ 0.35	$ 0.32

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) [Abstract]
Net income (loss)	$ 5,426	$ 3,211	$ 3,617
Foreign currency translation adjustment, net of tax	17	10	(29)
Comprehensive income (loss)	$ 5,443	$ 3,221	$ 3,588

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Beginning balance at Dec. 31, 2015	$ 112	$ 28,921	$ 22,956	$ (26,181)	$ (80)	$ 25,728
Beginning balance (in shares) at Dec. 31, 2015	7,782,292
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares from exercise of stock options	$ 0	23	0	0	0	23
Issuance of shares from exercise of stock options (in shares)	3,750
Issuance of deferred stock units	$ 0	202	0	0	0	202
Issuance of common stock on deferred stock units, net of relinquishments	$ 0	(51)	0	0	0	(51)
Issuance of common stock on deferred stock units, net of relinquishments (in shares)	10,700
Relinquishments of stock options and deferred stock units to pay withholding taxes	$ 0	1	0	0	0	1
Purchase of treasury stock	$ 0	0	0	(3,571)	0	(3,571)
Purchase of treasury stock (in shares)	(463,378)
Dividends declared and paid on common stock	$ 0	0	(2,416)	0	0	(2,416)
Share-based compensation expense	0	611	0	0	0	611
ASU 2016-09 Adjustment	0	(6)	0	0	0	(6)
Foreign currency translation adjustment, net of tax	0	0	0	0	(29)	(29)
Net income (loss)	0	0	3,617	0	0	3,617
Ending balance at Dec. 31, 2016	$ 112	29,701	24,157	(29,752)	(109)	24,109
Ending balance (in shares) at Dec. 31, 2016	7,333,364
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares from exercise of stock options	$ 2	1,041	0	0	0	1,043
Issuance of shares from exercise of stock options (in shares)	166,600
Issuance of deferred stock units	$ 0	0	0	0	0	0
Issuance of common stock on deferred stock units, net of relinquishments	$ 0	0	0	0	0	0
Issuance of common stock on deferred stock units, net of relinquishments (in shares)	8,663
Relinquishments of stock options and deferred stock units to pay withholding taxes	$ 0	(29)	0	0	0	(29)
Purchase of treasury stock	$ 0	0	0	(358)	0	(358)
Purchase of treasury stock (in shares)	(36,465)
Dividends declared and paid on common stock	$ 0	0	(2,581)	0	0	(2,581)
Share-based compensation expense	0	609	0	0	0	609
ASU 2016-09 Adjustment	0	31	(31)	0	0	0
Foreign currency translation adjustment, net of tax	0	0	0	0	10	10
Net income (loss)	0	0	3,211	0	0	3,211
Ending balance at Dec. 31, 2017	$ 114	31,353	24,756	(30,110)	(99)	$ 26,014
Ending balance (in shares) at Dec. 31, 2017	7,478,094					11,366,526
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares from exercise of stock options	$ 1	415	0	0	0	$ 416
Issuance of shares from exercise of stock options (in shares)	58,146
Issuance of deferred stock units	$ 0	0	0	0	0	0
Issuance of common stock on deferred stock units, net of relinquishments	$ 0	0	0	0	0	0
Issuance of common stock on deferred stock units, net of relinquishments (in shares)	23,578
Relinquishments of stock options and deferred stock units to pay withholding taxes	$ 0	(268)	0	0	0	(268)
Purchase of treasury stock	$ 0	0	0	(2,000)	0	(2,000)
Purchase of treasury stock (in shares)	(156,410)
Dividends declared and paid on common stock	$ 0	0	(2,667)	0	0	(2,667)
Share-based compensation expense	0	629	0	0	0	629
Foreign currency translation adjustment, net of tax	0	0	0	0	17	17
Net income (loss)	0	0	5,426	0	0	5,426
Ending balance at Dec. 31, 2018	$ 115	$ 32,129	$ 27,515	$ (32,110)	$ (82)	$ 27,567
Ending balance (in shares) at Dec. 31, 2018	7,418,299					11,463,141

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income (loss)	$ 5,426	$ 3,211	$ 3,617
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Share-based compensation expense	629	609	611
Depreciation and amortization	997	1,081	1,331
Deferred income taxes	(107)	1,117	(295)
Provision for Doubtful Accounts	105	50	0
(Gain) loss on sale of fixed assets	0	0	(5)
Foreign currency transaction losses	199	11	4
Changes in operating assets and liabilities:
Accounts receivable	2,688	(405)	(3,434)
Inventories	(4,049)	834	1,580
Prepaid income taxes	(100)	(518)	(5)
Other current and long term assets	(161)	(137)	53
Accounts payable	(332)	(988)	2,255
Accrued liabilities and other liabilities	(186)	1,053	(1,088)
Net cash provided by operating activities	5,109	5,918	4,624
Cash flows from investing activities:
Capital expenditures	(1,007)	(835)	(608)
Additions to capitalized software	(466)	(150)	0
Proceeds from sale of fixed assets	0	0	8
Net cash used in investing activities	(1,473)	(985)	(600)
Cash flows from financing activities:
Proceeds from stock option exercises	416	1,043	23
Purchases of common stock for treasury	(2,000)	(358)	(3,571)
Payment of dividends on common stock	(2,667)	(2,581)	(2,416)
Payment of deferred financing costs	(265)	(23)	0
Net cash used in financing activities	(4,516)	(1,919)	(5,964)
Effect of exchange rate changes on cash and cash equivalents	64	(10)	(30)
(Decrease) increase in cash and cash equivalents	(816)	3,004	(1,970)
Cash and cash equivalents, beginning of period	5,507	2,503	4,473
Cash and cash equivalents, end of period	4,691	5,507	2,503
Supplemental cash flow information:
Interest paid	25	30	31
Income taxes paid	1,249	2,991	2,065
Capital expenditures included in accounts payable	$ 21	$ 44	$ 113

Description of business

Description of business	12 Months Ended
	Dec. 31, 2018
Description of business [Abstract]
Description of business	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, New York, operates in one operating segment: software-driven technology and printing solutions for high growth markets including restaurant solutions, casino and gaming, lottery, POS automation and banking, and oil and gas markets. Our solutions are designed from the ground up based on market and customer requirements and are sold under the AccuDate™ Ithaca®, Epic, EPICENTRAL TM TM TM

Summary of significant accounti

Summary of significant accounting policies	12 Months Ended
	Dec. 31, 2018
Summary of significant accounting policies [Abstract]
Accounting policies	2. Summary of significant accounting policies Principles of consolidation: Use of estimates : Segment reporting : Cash and cash equivalents : Allowance for doubtful accounts : The following table summarizes the activity recorded in the valuation account for accounts receivable: Year Ended December 31, (In thousands) 2018 2017 2016 Balance, beginning of period $ 100 $ 50 $ 50 Additions charged to costs and expenses 105 50 – Balance, end of period $ 205 $ 100 $ 50 Inventories: Fixed assets: Leases: Goodwill and Intangible assets : Revenue recognition: 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, technical support for our restaurant solution terminals 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. Year Ended December 31, 2018 United States International Total (In thousands) Restaurant solutions $ 4,133 $ 446 $ 4,579 POS Automation and Banking 7,122 151 7,273 Casino and Gaming 17,518 9,075 26,593 Lottery 3,046 47 3,093 Printrex 1,028 269 1,297 TransAct Services Group 10,671 1,081 11,752 Total net sales $ 43,518 $ 11,069 $ 54,587 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 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 consolidated income statement during the year ended December 31, 2018, basic or diluted earnings per share, consolidated statement of cash flows, consolidated statement of shareholder's equity, or consolidated balance sheet, at December 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, technical support for our restaurant solution terminals, EPICENTRAL™ maintenance contracts and testing service contracts, and is recognized as revenue as (or when) we perform under the contract. The increase in current and non-current deferred revenue is due to the sale of extended warranties and technical support for our restaurant solution terminals. We do not have any contract asset balances as of December 31, 2018 or 2017. During the year ended December 31, 2018, we recognized revenue of $1.2 million related to our contract liabilities at January 1, 2018. Total contract liabilities consist of the following: December 31, 2018 January 1, 2018 (In thousands) Customer pre-payments $ 50 $ 79 Deferred revenue, current 384 169 Deferred revenue, non-current 265 69 Total contract liabilities $ 699 $ 317 Remaining performance obligations Remaining performance obligations represent the transaction price of firm orders for which a good or service has not been delivered to our customer. As of December 31, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $5.6 million. The Company expects to recognize revenue on $4.1 million of our remaining performance obligations within the next 12 months, $1.4 million within the next 24 months and the balance of these remaining performance obligations recognized within the next 36 months. Concentration of credit risk: Accounts receivable from customers representing 10% or more of total accounts receivable were as follows: December 31, 2018 2017 International Gaming Technology ("IGT") 21% 48% Suzo-Happ 0% 13% Sales to customers representing 10% or more of total net sales were as follows: Year Ended December 31, 2018 2017 2016 IGT 18% 35% 26% Suzo-Happ 1% 8% 15% Warranty: The following table summarizes the activity recorded in the accrued product warranty liability: Year Ended December 31, (In thousands) 2018 2017 2016 Balance, beginning of period $ 267 $ 267 $ 277 Warranties issued 269 259 254 Warranty settlements (263 ) (259 ) (264 ) Balance, end of period $ 273 $ 267 $ 267 $192 thousand and $186 thousand of the accrued product warranty liability were classified as current in Accrued liabilities at December 31, 2018 and 2017, respectively. The remaining $81 thousand of the accrued product warranty liability as of December 31, 2018 and 2017 is classified as long-term in Other liabilities. Engineering, design and product development: 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 have been included in cost of sales over the estimated life of the product. During 2018, we contracted several third-parties to develop software for our restaurant solutions products. Unamortized development costs for such software were $586 thousand as of December 31, 2018. The total amount charged to cost of sales for capitalized software development costs was $30 thousand, $2 thousand and $29 thousand in 2018, 2017, and 2016, respectively. Advertising: Income taxes: Foreign currency translation: Share-based payments: 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. Beginning in the first quarter of 2017, we recognize forfeitures as they occur. 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. Net income and loss per share:

Inventories, net

Inventories, net	12 Months Ended
	Dec. 31, 2018
Inventories, net [Abstract]
Inventories, net	3. Inventories, net The components of inventories are: December 31, (In thousands) 2018 2017 Raw materials and purchased component parts $ 6,593 $ 6,322 Work-in-process 29 – Finished goods 6,213 2,553 $ 12,835 $ 8,875

Fixed assets

Fixed assets	12 Months Ended
	Dec. 31, 2018
Fixed assets [Abstract]
Fixed assets	4. Fixed assets The components of fixed assets, net are: December 31, (In thousands) 2018 2017 Tooling, machinery and equipment $ 11,177 $ 11,019 Furniture and office equipment 1,690 1,651 Computer software and equipment 6,930 6,503 Leasehold improvements 2,666 2,475 22,463 21,648 Less: Accumulated depreciation and amortization (20,518 ) (19,752 ) 1,945 1,896 Construction in-process 327 273 $ 2,272 $ 2,169

Intangible assets

Intangible assets	12 Months Ended
	Dec. 31, 2018
Intangible assets [Abstract]
Intangible assets	5. Intangible assets Identifiable intangible assets are recorded in Intangible assets in the accompanying Consolidated Balance Sheets and are comprised of the following: December 31, 2018 2017 (In thousands) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Purchased technology $ 2,221 $ (1,558 ) $ 1,754 $ (1,481 ) Customer relationships 1,300 (1,300 ) 1,300 (1,300 ) Trademark 480 (354 ) 480 (306 ) Covenant not to compete 146 (146 ) 146 (146 ) Patents 57 (49 ) 57 (46 ) Other 80 (80 ) 80 (80 ) Total $ 4,284 $ (3,487 ) $ 3,817 $ (3,359 ) Amortization expense was $128 thousand, $237 thousand and $343 thousand in 2018, 2017 and 2016, respectively. Amortization expense for each of the next five years ending December 31 is expected to be as follows: $289 thousand in 2019; $175 thousand in 2020; $124 thousand in 2021; $93 thousand in 2022; $93 thousand in 2023; and $23 thousand thereafter.

Accrued liabilities

Accrued liabilities	12 Months Ended
	Dec. 31, 2018
Accrued liabilities [Abstract]
Accrued liabilities	6. Accrued liabilities The components of accrued liabilities are: December 31, (In thousands) 2018 2017 Salaries and compensation related $ 1,817 $ 2,288 Warranty 192 186 Professional and consulting 231 209 Other 525 656 $ 2,765 $ 3,339

Retirement savings plan

Retirement savings plan	12 Months Ended
	Dec. 31, 2018
Retirement savings plan [Abstract]
Retirement savings plan	7. 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 $237 thousand, $264 thousand and $295 thousand in 2018, 2017, and 2016, respectively.

Borrowings

Borrowings	12 Months Ended
	Dec. 31, 2018
Borrowings [Abstract]
Borrowings	8. Borrowings We maintain a credit facility (the “TD Bank Credit Facility”) with TD Bank N.A. (“TD Bank) which provides for a $20 million revolving credit line. On November 21, 2017, we signed an amendment extending the term to the TD Bank Credit Facility through November 28, 2022. 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 0.125% on unused borrowings under the revolving credit line. The amendment increased the amount of revolving credit loans we may use to fund future cash dividend payments or treasury share buybacks to $12.5 million from $10 million. 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, 2018. As of December 31, 2018, undrawn commitments under the TD Bank Credit facility were $20 million.

Commitments and contingencies

Commitments and contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and contingencies [Abstract]
Commitments and contingencies	9. Commitments and contingencies At December 31, 2018, we were the lessee on operating leases for equipment and real property. Rent expense was $1.1 million, $1.1 million and $1.0 million in 2018, 2017, and 2016, 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, 2018 are as follows: $1.0 million in 2019; $1.0 million in 2020; $0.7 million in 2021; $0.4 million in 2022, $0.3 million in 2023 and $0.9 million thereafter.

Stock incentive plans

Stock incentive plans	12 Months Ended
	Dec. 31, 2018
Stock incentive plans [Abstract]
Stock incentive plans	10. Stock incentive plans Stock incentive plans . Under the assumptions indicated below, the weighted-average per share fair value of stock option grants for 2018, 2017, and 2016 was $4.38, $1.95 and $1.70, respectively. In 2018 and 2017, we also issued restricted share units for certain executives and directors that vest over a specified period of time, and in some instances require achieving certain performance metrics. The weighted-average per share fair value of these restricted share units was $12.91, $7.53 and $7.31 in 2018, 2017 and 2016 respectively. No restricted share units were issued in 2016. The table below indicates the key assumptions used in the option valuation calculations for options granted in 2018, 2017, and 2016 and a discussion of our methodology for developing each of the assumptions used in the valuation model: Year Ended December 31, 2018 2017 2016 Expected option term (in years) 6.8 6.8 6.9 Expected volatility 38.0% 36.2% 38.8% Risk-free interest rate 2.7% 2.1% 1.2% Dividend yield 2.6% 4.3% 4.5% Expected Option Term Expected Volatility Risk-Free Interest Rate Dividend Yield For 2018, 2017, and 2016, we recorded $629 thousand, $609 thousand, and $611 thousand of share-based compensation expense, respectively, included primarily in general and administrative expense in our Consolidated Statements of Income. We also recorded income tax benefits of $138 thousand, $134 thousand, and $184 thousand in 2018, 2017, and 2016 respectively, related to such share-based compensation. At December 31, 2018, these benefits are recorded as a deferred tax asset in the Consolidated Balance Sheets. Equity award activity in the 2005 Equity Incentive Plan and 2014 Equity Incentive Plan is summarized below: Stock Options Restricted Share Units Number of Shares Average Price* Number of Units Average Price** Outstanding at December 31, 2017 919,639 $ $ 8.13 101,275 $ 8.21 Granted 147,300 13.65 37,400 13.69 Exercised (58,146 ) 7.16 (33,935 ) 8.31 Forfeited (2,000 ) 7.63 (6,140 ) 8.64 Expired (2,500 ) 5.24 – – Outstanding at December 31, 2018 1,004,293 $ $ 9.00 98,600 $ 9.82 * weighted average exercise price per share ** weighted-average grant stock price per share The following summarizes information about equity awards outstanding that are vested and expect to vest and equity awards that are exercisable at December 31, 2018: Equity Awards Vested and Expected to Vest Equity Awards That Are Exercisable Awards Average Price* Aggregate Intrinsic Value Remaining Term** Awards Average Price* Aggregate Intrinsic Value Remaining Term** Stock Options 1,004,293 $ 9.00 $ 1,051 6.1 562,252 $ 8.38 $ 656 4.7 Restricted stock units 82,692 – 743 1.9 – – – – * weighted average exercise price per share ** weighted-average contractual remaining term in years Shares that are issued upon exercise of employee stock awards are newly issued shares and not issued from treasury stock. As of December 31, 2018, unrecognized compensation cost related to non-vested equity awards granted under our stock incentive plans is approximately $1.2 million, which is expected to be recognized over a weighted average period of 2.2 years. The total fair value of awards vested during the years ended December 31, 2018, 2017, and 2016 was $1.1 million, $1.1 million, and $1.0 million, respectively. The total intrinsic value (which is the amount by which the stock price exceeded the exercise price on the date of exercise) of stock options exercised during the years ended December 31, 2018, 2017, and 2016 was $280 thousand, $958 thousand and $6 thousand, respectively. Cash received from option exercises was $416 thousand, $1.0 million and $23 thousand for 2018, 2017, and 2016, respectively. We recorded a realized tax benefit in 2018, 2017, and 2016 from equity-based awards of $17 thousand, $150 thousand and $1 thousand, respectively, related to options exercised. Upon adoption of ASU 2016-09 in 2017 tax benefits realized on stock options exercises are included in income tax expense and are no longer included as a component of cash flows. Restricted stock: We paid a portion of the 2015 incentive bonus for the chief executive officer and chief financial officer in the form of 28,231 deferred stock units, respectively, with a corresponding credit recorded to Additional Paid in Capital (net of share relinquishments) in the amount of $151 thousand in 2016. Such deferred stock units were granted in February 2016 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 $7.17. Starting with the 2016 incentive bonus program, all incentive bonus payments are made in cash with no portion of the award paid in deferred stock units.

Income taxes

Income taxes	12 Months Ended
	Dec. 31, 2018
Income taxes [Abstract]
Income taxes	11. Income taxes The components of the income tax provision are as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Current: Federal $ 1,049 $ 2,379 $ 1,776 State 85 114 70 Foreign 13 (49 ) 2 1,147 2,444 1,848 Deferred: Federal (117 ) 1,097 (257 ) State 10 20 (38 ) Foreign – – – (107 ) 1,117 (295 ) Income tax provision $ 1,040 $ 3,561 $ 1,553 On December 22, 2017, the United States enacted significant changes to U.S. tax law following the passage and signing of the Tax Reform Act. 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 permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. Income tax effects resulting from changes in tax laws are accounted for by the Company in accordance with authoritative guidance, which requires that these tax effects be recognized in the period in which the law is enacted. 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 year ended December 31, 2018. As of December 22, 2018 our accounting for the impact of the Tax Reform Act was complete. The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. As a result of the reduction of TransAct's U.S. corporate income tax rate from 34% to 21% under the Tax Reform Act, the Company revalued its ending net deferred tax assets at December 31, 2017 and recognized a provisional $1.3 million charge to income tax expense in the Company's consolidated statement of income for the year ended December 31, 2017. The Tax Reform Act also provided for a one-time deemed mandatory repatriation of post-1986 undistributed foreign subsidiary earnings and profits ("E&P") through the year ended December 31, 2017. The Company had no undistributed foreign E&P subject to the one-time mandatory repatriation and, therefore, did not recognize any income tax expense related to undistributed foreign subsidiary E&P for the year ended December 31, 2017. 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 is not currently subject to these taxes and therefore has not included any tax impacts of GILTI or BEAT in its consolidated financial statements for the year ended December 31, 2018 or 2017. Our effective tax rates were 16.1%, 52.6%, and 30.0% for 2018, 2017, and 2016, respectively. The effective tax rate in 2018 was significantly lower due to the impact of the Tax Reform Act. In addition to the lowering of the corporate from 34% to 21%, the Tax Reform Act also provided the Company with a new deduction, the foreign-derived intangible income deduction. The effective tax rate in 2017 was unusually high due to the initial impact of the Tax Reform Act as we recognized a provisional $1.3 million charge to income tax expense for the year ended December 31, 2017 as a result of revaluing our net deferred tax assets using the new U.S. corporate tax rate of 21%. At December 31, 2018, we have no federal or state net operating loss carryforwards, no R&D credit carryforwards, and no state tax credit carryforwards. Foreign loss before taxes was $286 thousand, $563 thousand, and $235 thousand in 2018, 2017, and 2016, 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) 2018 2017 Deferred tax assets: Foreign net operating losses $ 390 $ 328 Depreciation 71 107 Inventory reserves 879 845 Deferred revenue 16 16 Warranty reserve 60 59 Stock compensation expense 682 694 Other accrued compensation 233 363 Other liabilities and reserves 278 246 Gross deferred tax assets 2,609 2,658 Valuation allowance (390 ) (328 ) Net deferred tax assets 2,219 2,330 Deferred tax liabilities: Other 21 22 Net deferred tax liabilities 21 22 Total net deferred tax assets $ 2,198 $ 2,308 As of December 31, 2018 a valuation allowance of $390 thousand 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) 2018 2017 2016 Balance, beginning of period $ 328 $ 423 $ 340 Additions charged to income tax provision 62 67 83 Reductions credited to income tax provision – (162 ) – Balance, end of period $ 390 $ 328 $ 423 Differences between the U.S. statutory federal income tax rate and our effective income tax rate are analyzed below: Year Ended December 31, 2018 2017 2016 Federal statutory tax rate 21.0% 34.0% 34.0% State income taxes, net of federal income taxes 1.2 1.3 0.4 Valuation allowance and tax accruals 1.0 1.6 1.6 Miscellaneous permanent items 0.7 (0.5) (1.2) U.S. corporate tax rate change 0.0 19.4 0.0 Stock option cancellations 0.0 1.7 0.0 Uncertain tax positions 0.0 (0.1) (0.1) Stock award excess tax benefit (1.5) (1.4) 0.0 Foreign-derived intangible income deduction (1.5) 0.0 0.0 R&D credit (4.9) (3.3) (4.6) Other 0.1 (0.1) (0.1) Effective tax rate 16.1% 52.6% 30.0% At both December 31, 2018 and 2017, 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 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: December 31, (In thousands) 2018 2017 Unrecognized tax benefits as of January 1 $ 104 $ 111 Tax positions taken during the current period 28 24 Lapse of statute of limitations (28 ) (31 ) Unrecognized tax benefits as of December 31 $ 104 $ 104 We expect $25 thousand of the $104 thousand of unrecognized tax benefits will reverse in 2019 upon the expiration of the statute of limitations. We recognize interest and penalties related to uncertain tax positions in the income tax provision. We have accrued interest and penalties related to uncertain tax positions of $17 thousand as of December 31, 2018 and 2017. 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 2014. However, our federal tax returns for the years 2015 through 2017 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.

Earnings per share

Earnings per share	12 Months Ended
	Dec. 31, 2018
Earnings per share [Abstract]
Earnings per share	12. Earnings per share For 2018, 2017, and 2016, earnings per share was computed as follows (in thousands, except per share amounts): Year Ended December 31, 2018 2017 2016 Net income $ 5,426 $ 3,211 $ 3,617 Shares: Basic: Weighted average common shares outstanding 7,444 7,423 7,610 Add: Dilutive effect of outstanding equity awards as determined by the treasury stock method 315 169 45 Diluted: Weighted average common and common equivalent shares outstanding 7,759 7,592 7,655 Net income per common share: Basic $ 0.73 $ 0.43 $ 0.48 Diluted 0.70 0.42 0.47 The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options, restricted stock units and performance stock awards, 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. Anti-dilutive stock awards excluded from the computation of earnings per dilutive share were 149,000, and 341,000, at December 31, 2018 and 2017 respectively.

Stock repurchase program

Stock repurchase program	12 Months Ended
	Dec. 31, 2018
Stock repurchase program [Abstract]
Stock repurchase program	13. Stock repurchase program On March 1, 2018, our Board of Directors approved a new stock repurchase program (the "2018 Stock Repurchase Program"). Under the 2018 Stock Repurchase Program, we are authorized to repurchase up to $5 million of our outstanding shares of common stock from time to time in the open market at prevailing market prices based on market conditions, share price and other factors. The 2018 Stock Repurchase Program expires on December 31, 2019, if we do not discontinue the repurchase program prior to such time. We use the cost method to account for treasury stock purchases, under which the price paid for the stock is charged to the treasury stock account. Repurchases of our common stock are accounted for as of the settlement date. From the start of the 2018 Stock Repurchase Program on March 1, 2018 through December 31, 2018, we repurchased 156,410 shares of our common stock for approximately $2.0 million at an average price per share of $12.79. During 2016 and 2017, under a prior repurchase program that was in place from February 25, 2016 through December 31, 2017, we purchased 499,843 shares of our common stock for $3.9 million at an average price of $7.86 per share. From January 1, 2005 through December 31, 2018, we repurchased a total of 4,044,842 shares of common stock for $32.1 million, at an average price of $7.94 per share.

Geographic area information

Geographic area information	12 Months Ended
	Dec. 31, 2018
Geographic area information [Abstract]
Geographic area information	14. 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 asset. Year Ended December 31, (In thousands) 2018 2017 2016 Net sales: United States $ 43,518 $ 48,720 $ 45,542 International 11,069 7,591 11,693 Total $ 54,587 $ 56,311 $ 57,235 Fixed assets, net: United States $ 1,767 $ 1,548 $ 1,581 International 505 621 660 Total $ 2,272 $ 2,169 $ 2,241 Sales to international customers were 20%, 14%, and 20% of total sales in 2018, 2017, and 2016 respectively. Sales to Europe represented 56%, 44%, and 56%, sales to the Pacific Rim (which includes Australia and Asia) represented 36%, 32%, and 34%, and sales to Canada represented 6%, 18%, and 8% of total international sales in 2018, 2017, and 2016 respectively. International long-lived assets consist of net fixed assets located at our foreign subsidiary in the UK as well as our contract manufacturers in China, Thailand, Malaysia and Mexico.

Quarterly results of operations

Quarterly results of operations (unaudited)	12 Months Ended
	Dec. 31, 2018
Quarterly results of operations (unaudited) [Abstract]
Quarterly results of operations (unaudited)	15. Quarterly results of operations (unaudited) Our quarterly results of operations for 2018 and 2017 are as follows: Quarter Ended (In thousands, except per share amounts) March 31 June 30 September 30 December 31 2018: Net sales $ 12,243 $ 14,751 $ 15,838 $ 11,755 Gross profit 5,862 6,991 8,004 5,886 Net income 680 1,210 2,574 962 Net income per common share: Basic 0.09 0.16 0.35 0.13 Diluted 0.09 0.16 0.33 0.12 2017: Net sales $ 13,997 $ 13,596 $ 15,524 $ 13,194 Gross profit 6,093 6,430 7,519 6,620 Net income (loss) 943 867 1,813 (412 ) Net income (loss) per common share: Basic 0.13 0.12 0.24 (0.06 ) Diluted 0.13 0.12 0.24 (0.06 )

Accounting pronouncements

Accounting pronouncements	12 Months Ended
	Dec. 31, 2018
Accounting pronouncements [Abstract]
Accounting pronouncements	16. Accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842 Leases

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	12 Months Ended
	Dec. 31, 2018
Summary of significant accounting policies [Abstract]
Principles of consolidation	Principles of consolidation:
Use of estimates	Use of estimates :
Segment reporting	Segment reporting :
Cash and cash equivalents	Cash and cash equivalents :
Allowance for doubtful accounts	Allowance for doubtful accounts : The following table summarizes the activity recorded in the valuation account for accounts receivable: Year Ended December 31, (In thousands) 2018 2017 2016 Balance, beginning of period $ 100 $ 50 $ 50 Additions charged to costs and expenses 105 50 – Balance, end of period $ 205 $ 100 $ 50
Inventories	Inventories:
Fixed assets	Fixed assets:
Leases	Leases:
Goodwill and Intangible assets	Goodwill and Intangible assets :
Revenue recognition	Revenue recognition: 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, technical support for our restaurant solution terminals 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. Year Ended December 31, 2018 United States International Total (In thousands) Restaurant solutions $ 4,133 $ 446 $ 4,579 POS Automation and Banking 7,122 151 7,273 Casino and Gaming 17,518 9,075 26,593 Lottery 3,046 47 3,093 Printrex 1,028 269 1,297 TransAct Services Group 10,671 1,081 11,752 Total net sales $ 43,518 $ 11,069 $ 54,587 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 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 consolidated income statement during the year ended December 31, 2018, basic or diluted earnings per share, consolidated statement of cash flows, consolidated statement of shareholder's equity, or consolidated balance sheet, at December 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, technical support for our restaurant solution terminals, EPICENTRAL™ maintenance contracts and testing service contracts, and is recognized as revenue as (or when) we perform under the contract. The increase in current and non-current deferred revenue is due to the sale of extended warranties and technical support for our restaurant solution terminals. We do not have any contract asset balances as of December 31, 2018 or 2017. During the year ended December 31, 2018, we recognized revenue of $1.2 million related to our contract liabilities at January 1, 2018. Total contract liabilities consist of the following: December 31, 2018 January 1, 2018 (In thousands) Customer pre-payments $ 50 $ 79 Deferred revenue, current 384 169 Deferred revenue, non-current 265 69 Total contract liabilities $ 699 $ 317 Remaining performance obligations Remaining performance obligations represent the transaction price of firm orders for which a good or service has not been delivered to our customer. As of December 31, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $5.6 million. The Company expects to recognize revenue on $4.1 million of our remaining performance obligations within the next 12 months, $1.4 million within the next 24 months and the balance of these remaining performance obligations recognized within the next 36 months.
Concentration of credit risk	Concentration of credit risk: Accounts receivable from customers representing 10% or more of total accounts receivable were as follows: December 31, 2018 2017 International Gaming Technology ("IGT") 21% 48% Suzo-Happ 0% 13% Sales to customers representing 10% or more of total net sales were as follows: Year Ended December 31, 2018 2017 2016 IGT 18% 35% 26% Suzo-Happ 1% 8% 15%
Warranty	Warranty: The following table summarizes the activity recorded in the accrued product warranty liability: Year Ended December 31, (In thousands) 2018 2017 2016 Balance, beginning of period $ 267 $ 267 $ 277 Warranties issued 269 259 254 Warranty settlements (263 ) (259 ) (264 ) Balance, end of period $ 273 $ 267 $ 267 $192 thousand and $186 thousand of the accrued product warranty liability were classified as current in Accrued liabilities at December 31, 2018 and 2017, respectively. The remaining $81 thousand of the accrued product warranty liability as of December 31, 2018 and 2017 is classified as long-term in Other liabilities.
Engineering, design and product development	Engineering, design and product development: 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 have been included in cost of sales over the estimated life of the product. During 2018, we contracted several third-parties to develop software for our restaurant solutions products. Unamortized development costs for such software were $586 thousand as of December 31, 2018. The total amount charged to cost of sales for capitalized software development costs was $30 thousand, $2 thousand and $29 thousand in 2018, 2017, and 2016, respectively.
Advertising	Advertising:
Income taxes	Income taxes:
Foreign currency translation	Foreign currency translation:
Share-based payments	Share-based payments: 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. Beginning in the first quarter of 2017, we recognize forfeitures as they occur. 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.
Net income and loss per share	Net income and loss per share:

Summary of significant accoun_3

Summary of significant accounting policies (Tables)	12 Months Ended
	Dec. 31, 2018
Summary of significant accounting policies [Abstract]
Allowance for doubtful accounts	The following table summarizes the activity recorded in the valuation account for accounts receivable: Year Ended December 31, (In thousands) 2018 2017 2016 Balance, beginning of period $ 100 $ 50 $ 50 Additions charged to costs and expenses 105 50 – Balance, end of period $ 205 $ 100 $ 50
Disaggregation of revenue	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. Year Ended December 31, 2018 United States International Total (In thousands) Restaurant solutions $ 4,133 $ 446 $ 4,579 POS Automation and Banking 7,122 151 7,273 Casino and Gaming 17,518 9,075 26,593 Lottery 3,046 47 3,093 Printrex 1,028 269 1,297 TransAct Services Group 10,671 1,081 11,752 Total net sales $ 43,518 $ 11,069 $ 54,587
Contract liabilities	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, technical support for our restaurant solution terminals, EPICENTRAL™ maintenance contracts and testing service contracts, and is recognized as revenue as (or when) we perform under the contract. The increase in current and non-current deferred revenue is due to the sale of extended warranties and technical support for our restaurant solution terminals. We do not have any contract asset balances as of December 31, 2018 or 2017. During the year ended December 31, 2018, we recognized revenue of $1.2 million related to our contract liabilities at January 1, 2018. Total contract liabilities consist of the following: December 31, 2018 January 1, 2018 (In thousands) Customer pre-payments $ 50 $ 79 Deferred revenue, current 384 169 Deferred revenue, non-current 265 69 Total contract liabilities $ 699 $ 317
Concentration of risk	Accounts receivable from customers representing 10% or more of total accounts receivable were as follows: December 31, 2018 2017 International Gaming Technology ("IGT") 21% 48% Suzo-Happ 0% 13% Sales to customers representing 10% or more of total net sales were as follows: Year Ended December 31, 2018 2017 2016 IGT 18% 35% 26% Suzo-Happ 1% 8% 15%
Product warranty liability	The following table summarizes the activity recorded in the accrued product warranty liability: Year Ended December 31, (In thousands) 2018 2017 2016 Balance, beginning of period $ 267 $ 267 $ 277 Warranties issued 269 259 254 Warranty settlements (263 ) (259 ) (264 ) Balance, end of period $ 273 $ 267 $ 267

Inventories, net (Tables)

Inventories, net (Tables)	12 Months Ended
	Dec. 31, 2018
Inventories, net [Abstract]
Inventories, net	The components of inventories are: December 31, (In thousands) 2018 2017 Raw materials and purchased component parts $ 6,593 $ 6,322 Work-in-process 29 – Finished goods 6,213 2,553 $ 12,835 $ 8,875

Fixed assets (Tables)

Fixed assets (Tables)	12 Months Ended
	Dec. 31, 2018
Fixed assets [Abstract]
Fixed assets	The components of fixed assets, net are: December 31, (In thousands) 2018 2017 Tooling, machinery and equipment $ 11,177 $ 11,019 Furniture and office equipment 1,690 1,651 Computer software and equipment 6,930 6,503 Leasehold improvements 2,666 2,475 22,463 21,648 Less: Accumulated depreciation and amortization (20,518 ) (19,752 ) 1,945 1,896 Construction in-process 327 273 $ 2,272 $ 2,169

Intangible assets (Tables)

Intangible assets (Tables)	12 Months Ended
	Dec. 31, 2018
Intangible assets [Abstract]
Identifiable intangible assets	Identifiable intangible assets are recorded in Intangible assets in the accompanying Consolidated Balance Sheets and are comprised of the following: December 31, 2018 2017 (In thousands) Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Purchased technology $ 2,221 $ (1,558 ) $ 1,754 $ (1,481 ) Customer relationships 1,300 (1,300 ) 1,300 (1,300 ) Trademark 480 (354 ) 480 (306 ) Covenant not to compete 146 (146 ) 146 (146 ) Patents 57 (49 ) 57 (46 ) Other 80 (80 ) 80 (80 ) Total $ 4,284 $ (3,487 ) $ 3,817 $ (3,359 )

Accrued liabilities (Tables)

Accrued liabilities (Tables)	12 Months Ended
	Dec. 31, 2018
Accrued liabilities [Abstract]
Accrued liabilities	The components of accrued liabilities are: December 31, (In thousands) 2018 2017 Salaries and compensation related $ 1,817 $ 2,288 Warranty 192 186 Professional and consulting 231 209 Other 525 656 $ 2,765 $ 3,339

Stock incentive plans (Tables)

Stock incentive plans (Tables)	12 Months Ended
	Dec. 31, 2018
Stock incentive plans [Abstract]
Assumptions used in option valuation calculations	The table below indicates the key assumptions used in the option valuation calculations for options granted in 2018, 2017, and 2016 and a discussion of our methodology for developing each of the assumptions used in the valuation model: Year Ended December 31, 2018 2017 2016 Expected option term (in years) 6.8 6.8 6.9 Expected volatility 38.0% 36.2% 38.8% Risk-free interest rate 2.7% 2.1% 1.2% Dividend yield 2.6% 4.3% 4.5%
Stock option activity	Equity award activity in the 2005 Equity Incentive Plan and 2014 Equity Incentive Plan is summarized below: Stock Options Restricted Share Units Number of Shares Average Price* Number of Units Average Price** Outstanding at December 31, 2017 919,639 $ $ 8.13 101,275 $ 8.21 Granted 147,300 13.65 37,400 13.69 Exercised (58,146 ) 7.16 (33,935 ) 8.31 Forfeited (2,000 ) 7.63 (6,140 ) 8.64 Expired (2,500 ) 5.24 – – Outstanding at December 31, 2018 1,004,293 $ $ 9.00 98,600 $ 9.82 * weighted average exercise price per share ** weighted-average grant stock price per share
Equity awards vested and expected to vest	The following summarizes information about equity awards outstanding that are vested and expect to vest and equity awards that are exercisable at December 31, 2018: Equity Awards Vested and Expected to Vest Equity Awards That Are Exercisable Awards Average Price* Aggregate Intrinsic Value Remaining Term** Awards Average Price* Aggregate Intrinsic Value Remaining Term** Stock Options 1,004,293 $ 9.00 $ 1,051 6.1 562,252 $ 8.38 $ 656 4.7 Restricted stock units 82,692 – 743 1.9 – – – – * weighted average exercise price per share ** weighted-average contractual remaining term in years

Income taxes (Tables)

Income taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income taxes [Abstract]
Income tax provision	The components of the income tax provision are as follows: Year Ended December 31, (In thousands) 2018 2017 2016 Current: Federal $ 1,049 $ 2,379 $ 1,776 State 85 114 70 Foreign 13 (49 ) 2 1,147 2,444 1,848 Deferred: Federal (117 ) 1,097 (257 ) State 10 20 (38 ) Foreign – – – (107 ) 1,117 (295 ) Income tax provision $ 1,040 $ 3,561 $ 1,553
Deferred tax assets and liabilities	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) 2018 2017 Deferred tax assets: Foreign net operating losses $ 390 $ 328 Depreciation 71 107 Inventory reserves 879 845 Deferred revenue 16 16 Warranty reserve 60 59 Stock compensation expense 682 694 Other accrued compensation 233 363 Other liabilities and reserves 278 246 Gross deferred tax assets 2,609 2,658 Valuation allowance (390 ) (328 ) Net deferred tax assets 2,219 2,330 Deferred tax liabilities: Other 21 22 Net deferred tax liabilities 21 22 Total net deferred tax assets $ 2,198 $ 2,308
Valuation allowance on deferred tax assets	As of December 31, 2018 a valuation allowance of $390 thousand 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) 2018 2017 2016 Balance, beginning of period $ 328 $ 423 $ 340 Additions charged to income tax provision 62 67 83 Reductions credited to income tax provision – (162 ) – Balance, end of period $ 390 $ 328 $ 423
Statutory to effective tax rate reconciliation	Differences between the U.S. statutory federal income tax rate and our effective income tax rate are analyzed below: Year Ended December 31, 2018 2017 2016 Federal statutory tax rate 21.0% 34.0% 34.0% State income taxes, net of federal income taxes 1.2 1.3 0.4 Valuation allowance and tax accruals 1.0 1.6 1.6 Miscellaneous permanent items 0.7 (0.5) (1.2) U.S. corporate tax rate change 0.0 19.4 0.0 Stock option cancellations 0.0 1.7 0.0 Uncertain tax positions 0.0 (0.1) (0.1) Stock award excess tax benefit (1.5) (1.4) 0.0 Foreign-derived intangible income deduction (1.5) 0.0 0.0 R&D credit (4.9) (3.3) (4.6) Other 0.1 (0.1) (0.1) Effective tax rate 16.1% 52.6% 30.0%
Unrecognized tax benefits	At both December 31, 2018 and 2017, 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 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: December 31, (In thousands) 2018 2017 Unrecognized tax benefits as of January 1 $ 104 $ 111 Tax positions taken during the current period 28 24 Lapse of statute of limitations (28 ) (31 ) Unrecognized tax benefits as of December 31 $ 104 $ 104

Earnings per share (Tables)

Earnings per share (Tables)	12 Months Ended
	Dec. 31, 2018
Earnings per share [Abstract]
Earnings per share	For 2018, 2017, and 2016, earnings per share was computed as follows (in thousands, except per share amounts): Year Ended December 31, 2018 2017 2016 Net income $ 5,426 $ 3,211 $ 3,617 Shares: Basic: Weighted average common shares outstanding 7,444 7,423 7,610 Add: Dilutive effect of outstanding equity awards as determined by the treasury stock method 315 169 45 Diluted: Weighted average common and common equivalent shares outstanding 7,759 7,592 7,655 Net income per common share: Basic $ 0.73 $ 0.43 $ 0.48 Diluted 0.70 0.42 0.47

Geographic area information (Ta

Geographic area information (Tables)	12 Months Ended
	Dec. 31, 2018
Geographic area information [Abstract]
Net sales and fixed assets by geographic area	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 asset. Year Ended December 31, (In thousands) 2018 2017 2016 Net sales: United States $ 43,518 $ 48,720 $ 45,542 International 11,069 7,591 11,693 Total $ 54,587 $ 56,311 $ 57,235 Fixed assets, net: United States $ 1,767 $ 1,548 $ 1,581 International 505 621 660 Total $ 2,272 $ 2,169 $ 2,241

Quarterly results of operatio_2

Quarterly results of operations (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2018
Quarterly results of operations (unaudited) [Abstract]
Quarterly results of operations	Our quarterly results of operations for 2018 and 2017 are as follows: Quarter Ended (In thousands, except per share amounts) March 31 June 30 September 30 December 31 2018: Net sales $ 12,243 $ 14,751 $ 15,838 $ 11,755 Gross profit 5,862 6,991 8,004 5,886 Net income 680 1,210 2,574 962 Net income per common share: Basic 0.09 0.16 0.35 0.13 Diluted 0.09 0.16 0.33 0.12 2017: Net sales $ 13,997 $ 13,596 $ 15,524 $ 13,194 Gross profit 6,093 6,430 7,519 6,620 Net income (loss) 943 867 1,813 (412 ) Net income (loss) per common share: Basic 0.13 0.12 0.24 (0.06 ) Diluted 0.13 0.12 0.24 (0.06 )

Description of business (Detail

Description of business (Details)	12 Months Ended
	Dec. 31, 2018Segment
Description of business [Abstract]
Number of operating segments	1

Summary of significant accoun_4

Summary of significant accounting policies, Segment reporting (Details)	12 Months Ended
	Dec. 31, 2018Segment
Segment reporting [Abstract]
Number of business segments	1

Summary of significant accoun_5

Summary of significant accounting policies, Allowance for doubtful accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Allowance for doubtful accounts [Roll Forward]
Balance, beginning of period	$ 100	$ 50	$ 50
Additions charged to costs and expenses	105	50	0
Balance, end of period	$ 205	$ 100	$ 50

Summary of significant accoun_6

Summary of significant accounting policies, Fixed assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fixed assets [Abstract]
Depreciation expense	$ 870	$ 844	$ 987
Tooling [Member]
Fixed assets [Abstract]
Estimated useful life	5 years
Machinery and Equipment [Member]
Fixed assets [Abstract]
Estimated useful life	10 years
Furniture and Office Equipment [Member] | Minimum [Member]
Fixed assets [Abstract]
Estimated useful life	5 years
Furniture and Office Equipment [Member] | Maximum [Member]
Fixed assets [Abstract]
Estimated useful life	10 years
Computer Software and Equipment [Member] | Minimum [Member]
Fixed assets [Abstract]
Estimated useful life	3 years
Computer Software and Equipment [Member] | Maximum [Member]
Fixed assets [Abstract]
Estimated useful life	7 years

Summary of significant accoun_7

Summary of significant accounting policies, Revenue recognition - Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation of revenue [Abstract]
Net sales	$ 11,755	$ 15,838	$ 14,751	$ 12,243	$ 13,194	$ 15,524	$ 13,596	$ 13,997	$ 54,587	$ 56,311	$ 57,235
United States [Member]
Disaggregation of revenue [Abstract]
Net sales									43,518
International [Member]
Disaggregation of revenue [Abstract]
Net sales									11,069
Restaurant Solutions [Member]
Disaggregation of revenue [Abstract]
Net sales									4,579
Restaurant Solutions [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales									4,133
Restaurant Solutions [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales									446
POS Automation and Banking [Member]
Disaggregation of revenue [Abstract]
Net sales									7,273
POS Automation and Banking [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales									7,122
POS Automation and Banking [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales									151
Casino and Gaming [Member]
Disaggregation of revenue [Abstract]
Net sales									26,593
Casino and Gaming [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales									17,518
Casino and Gaming [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales									9,075
Lottery [Member]
Disaggregation of revenue [Abstract]
Net sales									3,093
Lottery [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales									3,046
Lottery [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales									47
Printrex [Member]
Disaggregation of revenue [Abstract]
Net sales									1,297
Printrex [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales									1,028
Printrex [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales									269
TransAct Services Group [Member]
Disaggregation of revenue [Abstract]
Net sales									11,752
TransAct Services Group [Member] | United States [Member]
Disaggregation of revenue [Abstract]
Net sales									10,671
TransAct Services Group [Member] | International [Member]
Disaggregation of revenue [Abstract]
Net sales									$ 1,081

Summary of significant accoun_8

Summary of significant accounting policies, Revenue recognition - Contract balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Summary of significant accounting policies [Abstract]
Revenue recognized	$ 1,239
Contract liabilities [Abstract]
Customer pre-payments	50	$ 79
Deferred revenue, current	384	169
Deferred revenue, non-current	265	69
Total contract liabilities	$ 699	$ 317

Summary of significant accoun_9

Summary of significant accounting policies, Revenue recognition - Remaining performance obligations (Details) $ in Millions	Dec. 31, 2018USD ($)
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 5.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 4.1
Expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Remaining performance obligations [Abstract]
Remaining performance obligations	$ 1.4
Expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Remaining performance obligations [Abstract]
Remaining performance obligations
Expected timing of satisfaction, period	12 months

Summary of significant accou_10

Summary of significant accounting policies, Concentration of credit risk (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounts Receivable [Member] | Customer Concentration Risk [Member] | IGT [Member]
Concentration of credit risk [Abstract]
Concentration risk percentage	21.00%	48.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Suzo-Happ [Member]
Concentration of credit risk [Abstract]
Concentration risk percentage	0.00%	13.00%
Sales [Member] | IGT [Member]
Concentration of credit risk [Abstract]
Concentration risk percentage	18.00%	35.00%	26.00%
Sales [Member] | Suzo-Happ [Member]
Concentration of credit risk [Abstract]
Concentration risk percentage	1.00%	8.00%	15.00%

Summary of significant accou_11

Summary of significant accounting policies, Warranty (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Warranty [Abstract]
Product warranty period	24 months
Accrued product warranty liability [Roll Forward]
Balance, beginning of period	$ 267	$ 267	$ 277
Warranties issued	269	259	254
Warranty settlements	(263)	(259)	(264)
Balance, end of period	273	267	$ 267
Accrued product warranty liability, current	192	186
Accrued product warranty liability, long-term	$ 81	$ 81

Summary of significant accou_12

Summary of significant accounting policies, Engineering, design and product development (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Engineering, design and product development [Abstract]
Research and development expense	$ 4,576	$ 4,303	$ 4,425
Unamortized development costs of software	586
Amortization of capitalized software development costs	$ 30	$ 2	$ 29

Summary of significant accou_13

Summary of significant accounting policies, Advertising (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Advertising [Abstract]
Advertising expense	$ 1,041	$ 974	$ 703

Inventories, net (Details)

Inventories, net (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Inventories, net [Abstract]
Raw materials and purchased component parts	$ 6,593	$ 6,322
Work-in-process	29	0
Finished goods	6,213	2,553
Inventories, net	$ 12,835	$ 8,875

Fixed assets (Details)

Fixed assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fixed assets [Abstract]
Fixed assets	$ 22,463	$ 21,648
Less: Accumulated depreciation and amortization	(20,518)	(19,752)
Fixed assets, net	2,272	2,169	$ 2,241
Tooling, Machinery and Equipment [Member]
Fixed assets [Abstract]
Fixed assets	11,177	11,019
Furniture and Office Equipment [Member]
Fixed assets [Abstract]
Fixed assets	1,690	1,651
Computer Software and Equipment [Member]
Fixed assets [Abstract]
Fixed assets	6,930	6,503
Leasehold Improvements [Member]
Fixed assets [Abstract]
Fixed assets	2,666	2,475
Fixed Assets, Excluding Construction in-Process [Member]
Fixed assets [Abstract]
Fixed assets, net	1,945	1,896
Construction in-Process [Member]
Fixed assets [Abstract]
Fixed assets	$ 327	$ 273

Intangible assets (Details)

Intangible assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Identifiable intangible assets [Abstract]
Gross amount	$ 4,284	$ 3,817
Accumulated amortization	(3,487)	(3,359)
Amortization expense	128	237	$ 343
Future amortization expense [Abstract]
2019	289
2020	175
2021	124
2022	93
2023	93
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	23
Purchased Technology [Member]
Identifiable intangible assets [Abstract]
Gross amount	2,221	1,754
Accumulated amortization	(1,558)	(1,481)
Customer Relationships [Member]
Identifiable intangible assets [Abstract]
Gross amount	1,300	1,300
Accumulated amortization	(1,300)	(1,300)
Trademarks [Member]
Identifiable intangible assets [Abstract]
Gross amount	480	480
Accumulated amortization	(354)	(306)
Covenant Not to Compete [Member]
Identifiable intangible assets [Abstract]
Gross amount	146	146
Accumulated amortization	(146)	(146)
Patents [Member]
Identifiable intangible assets [Abstract]
Gross amount	57	57
Accumulated amortization	(49)	(46)
Other [Member]
Identifiable intangible assets [Abstract]
Gross amount	80	80
Accumulated amortization	$ (80)	$ (80)

Accrued liabilities (Details)

Accrued liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accrued liabilities [Abstract]
Salaries and compensation related	$ 1,817	$ 2,288
Warranty	192	186
Professional and consulting	231	209
Other	525	656
Accrued liabilities	$ 2,765	$ 3,339

Retirement savings plan (Detail

Retirement savings plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Retirement savings plan [Abstract]
Employer matching contribution percentage	50.00%
Employee's contribution percentage for match	6.00%
Amount of matching contribution	$ 237	$ 264	$ 295

Borrowings (Details)

Borrowings (Details) - TD Bank [Member] - Revolving Credit Facility [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Nov. 22, 2017	Nov. 26, 2014
Credit Facility [Abstract]
Maximum borrowing capacity	$ 20,000
Maturity date	Nov. 28, 2022
Percentage fee on unused borrowings	0.125%
Loans used to fund future cash dividend payments or treasury share buybacks		$ 12,500	$ 10,000
Undrawn commitments	$ 20,000
Prime Rate [Member]
Credit Facility [Abstract]
Basis spread on variable rate	1.00%

Commitments and contingencies (

Commitments and contingencies (Details) - Equipment and Real Property [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Leases [Abstract]
Rent expense under operating leases	$ 1,120	$ 1,142	$ 1,046
Future Minimum Rental payments Under Operating Leases [Abstract]
2019	1,035
2020	1,040
2021	703
2022	433
2023	266
Thereafter	$ 889

Stock incentive plans, Stock in

Stock incentive plans, Stock incentive plans (Details)	12 Months Ended
	Dec. 31, 2018Planshares
Stock incentive plans [Abstract]
Number of primary stock incentive plans | Plan	2
Stock Options [Member]
Stock incentive plans [Abstract]
Exercise prices of options granted equals percentage of fair market value of common stock	100.00%
Term of award	10 years
Stock Options [Member] | Minimum [Member]
Stock incentive plans [Abstract]
Vesting period	2 years
Stock Options [Member] | Maximum [Member]
Stock incentive plans [Abstract]
Vesting period	5 years
2014 Equity Incentive Plan [Member]
Stock incentive plans [Abstract]
Number of shares authorized (in shares)	1,400,000
Number of shares available for grant (in shares)	495,291
2014 Equity Incentive Plan [Member] | Stock Options [Member]
Stock incentive plans [Abstract]
Term of award	10 years

Stock incentive plans, Assumpti

Stock incentive plans, Assumptions used in option valuation calculations (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Stock Options [Member]
Assumptions used in valuation model [Abstract]
Term of award	10 years
2014 Equity Incentive Plan [Member]
Assumptions used in valuation model [Abstract]
Expected option term	6 years 9 months 18 days	6 years 9 months 18 days	6 years 10 months 24 days
Expected volatility	38.00%	36.20%	38.80%
Risk-free interest rate	2.70%	2.10%	1.20%
Dividend yield	2.60%	4.30%	4.50%
2014 Equity Incentive Plan [Member] | Stock Options [Member]
Assumptions used in valuation model [Abstract]
Weighted average fair value of grants (in dollars per share)	$ 4.38	$ 1.95	$ 1.70
Term of award	10 years
2014 Equity Incentive Plan [Member] | Restricted Share Units [Member]
Assumptions used in valuation model [Abstract]
Weighted average fair value of grants (in dollars per share)	$ 12.91	$ 7.53	$ 7.31

Stock incentive plans, Share-ba

Stock incentive plans, Share-based compensation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based compensation [Abstract]
Income tax benefit from share-based compensation expense	$ 138	$ 134	$ 184
General and Administrative Expense [Member]
Share-based compensation [Abstract]
Share-based compensation expense	$ 629	$ 609	$ 611

Stock incentive plans, Stock op

Stock incentive plans, Stock options (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Number of shares [Roll Forward]
Options vested or expected to vest (in shares)	82,692
Weighted average remaining contractual term [Abstract]
Options vested or expected to vest	1 year 10 months 24 days
Aggregate intrinsic value [Abstract]
Unrecognized compensation cost related to stock options	$ 1,206,000
Weighted average period to recognize compensation cost not yet recognized	2 years 2 months 12 days
Intrinsic value of stock options exercised	$ 280,000	$ 958,000	$ 6,000
Fair value of all awards vested	1,136,000	1,104,000	961,000
Cash received from exercise of stock options	416,000	1,043,000	23,000
Excess tax benefit in provision for income taxes	$ 17,000	$ 150,000	$ 1,000
Stock Options [Member]
Number of shares [Roll Forward]
Options vested or expected to vest (in shares)	1,004,293
Options exercisable, end of period (in shares)	562,252
2005 Equity Incentive Plan and 2014 Equity Incentive Plan [Member]
Weighted average exercise price [Abstract]
Options vested or expected to vest (in dollars per share)			$ 0
Aggregate intrinsic value [Abstract]
Options vested or expected to vest	$ 743,000
2005 Equity Incentive Plan and 2014 Equity Incentive Plan [Member] | Stock Options [Member]
Number of shares [Roll Forward]
Outstanding, beginning of period (in shares)	919,639
Granted (in shares)	147,300
Exercised (in shares)	(58,146)
Forfeited (in shares)	(2,000)
Expired (in shares)	(2,500)
Outstanding, end of period (in shares)	1,004,293	919,639
Weighted average exercise price [Abstract]
Outstanding, beginning of period (in dollars per share)	$ 8.13
Granted (in dollars per share)	13.65
Exercised (in dollars per share)	7.16
Forfeited (in dollars per share)	7.63
Expired (in dollars per share)	5.24
Outstanding, end of period (in dollars per share)	9	$ 8.13
Options vested or expected to vest (in dollars per share)			$ 9
Options exercisable, end of period (in dollars per share)	$ 8.38
Weighted average remaining contractual term [Abstract]
Options vested or expected to vest			6 years 1 month 6 days
Options exercisable, end of period			4 years 8 months 12 days
Aggregate intrinsic value [Abstract]
Options vested or expected to vest	$ 1,051,000
Options exercisable, end of period	$ 656,000
2005 Equity Incentive Plan and 2014 Equity Incentive Plan [Member] | Restricted Share Units [Member]
Number of shares [Roll Forward]
Outstanding, beginning of period (in shares)	101,275
Granted (in shares)	37,400
Exercised (in shares)	(33,935)
Forfeited (in shares)	(6,140)
Expired (in shares)	0
Outstanding, end of period (in shares)	98,600	101,275
Weighted average exercise price [Abstract]
Outstanding, beginning of period (in dollars per share)	$ 8.21
Granted (in dollars per share)	13.69
Exercised (in dollars per share)	8.31
Forfeited (in dollars per share)	8.64
Expired (in dollars per share)	0
Outstanding, end of period (in dollars per share)	$ 9.82	$ 8.21

Stock incentive plans, Restrict

Stock incentive plans, Restricted stock (Details) - Restricted Stock [Member] - CEO and CFO [Member] - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 29, 2016	Dec. 31, 2018	Dec. 31, 2016
Restricted stock [Abstract]
Deferred stock units issued for incentive bonus (in shares)	28,231
Deferred compensation expense			$ 151
Term of award		3 years
Weighted average exercise price of deferred stock units (in dollars per share)			$ 7.17

Income taxes, Components of inc

Income taxes, Components of income tax provision (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current [Abstract]
Federal	$ 1,049,000	$ 2,379,000	$ 1,776,000
State	85,000	114,000	70,000
Foreign	13,000	(49,000)	2,000
Income taxes current	1,147,000	2,444,000	1,848,000
Deferred [Abstract]
Federal	(117,000)	1,097,000	(257,000)
State	10,000	20,000	(38,000)
Foreign	0	0	0
Income taxes deferred	(107,000)	1,117,000	(295,000)
Income tax (benefit) provision	$ 1,040,000	$ 3,561,000	$ 1,553,000
Income taxes [Abstract]
U.S. corporate income tax rate	21.00%	34.00%	34.00%
Provisional charge to income tax expense		$ 1,315,000
Undistributed foreign E&P		0
Income tax expense related to undistributed foreign subsidiary E&P		$ 0
Effective tax rate	16.10%	52.60%	30.00%
Income taxes [Abstract]
Foreign loss before taxes	$ 286,000	$ 563,000	$ 235,000
Federal [Member]
Income taxes [Abstract]
Net operating loss carryforward	0
State [Member]
Income taxes [Abstract]
Net operating loss carryforward	0
Tax credit carryforward	0
R&D Credit [Member]
Income taxes [Abstract]
Tax credit carryforward	$ 0
Maximum [Member]
Income taxes [Abstract]
U.S. corporate income tax rate		35.00%

Income taxes, Deferred tax asse

Income taxes, Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets [Abstract]
Foreign net operating losses	$ 390	$ 328
Depreciation	71	107
Inventory reserves	879	845
Deferred revenue	16	16
Warranty reserve	60	59
Stock compensation expense	682	694
Other accrued compensation	233	363
Other liabilities and reserves	278	246
Gross deferred tax assets	2,609	2,658
Valuation allowance	(390)	(328)
Net deferred tax assets	2,219	2,330
Deferred tax liabilities [Abstract]
Other	21	22
Net deferred tax liabilities	21	22
Total net deferred tax assets	$ 2,198	$ 2,308

Income taxes, Valuation allowan

Income taxes, Valuation allowance on deferred tax assets (Details) - Foreign Net Operating Loss Carryforwards [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Valuation allowance [Roll Forward]
Balance, beginning of period	$ 328	$ 423	$ 340
Additions charged to income tax provision	62	67	83
Reductions credited to income tax provision	0	(162)	0
Balance, end of period	$ 390	$ 328	$ 423

Income taxes, Effective tax rat

Income taxes, Effective tax rate reconciliation (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Effective Tax Rate Reconciliation [Abstract]
Federal income tax rate	21.00%	34.00%	34.00%
U.S. corporate tax rate change	0.00%	19.40%	0.00%
Stock option cancellations	0.00%	1.70%	0.00%
Valuation allowance and tax accruals	1.00%	1.60%	1.60%
State income taxes, net of federal income taxes	1.20%	1.30%	0.40%
Uncertain tax positions	(0.00%)	(0.10%)	(0.10%)
Miscellaneous permanent items	0.70%	(0.50%)	(1.20%)
Stock award excess tax benefit	(1.50%)	(1.40%)	0.00%
Foreign-derived intangible income deduction	(1.50%)	(0.00%)	(0.00%)
R&D credit	(4.90%)	(3.30%)	(4.60%)
Other	0.10%	(0.10%)	(0.10%)
Effective tax rate	16.10%	52.60%	30.00%

Income taxes, Unrecognized tax

Income taxes, Unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income taxes [Abstract]
Unrecognized tax benefits that would favorably affect effective income tax rate if recognized	$ 104	$ 104
Unrecognized tax benefits [Roll Forward]
Unrecognized tax benefits, beginning of period	104	111
Tax positions taken during the current period	28	24
Lapse of statute of limitations	(28)	(31)
Unrecognized tax benefits, end of period	104	104
Expected decrease in unrecognized tax benefits in next year	25
Accrued interest and penalties related to uncertain tax positions	$ 17	$ 17

Earnings per share (Details)

Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings per share [Abstract]
Net income (loss)	$ 962	$ 2,574	$ 1,210	$ 680	$ (412)	$ 1,813	$ 867	$ 943	$ 5,426	$ 3,211	$ 3,617
Shares [Abstract]
Basic: Weighted average common shares outstanding (in shares)									7,444	7,423	7,610
Add: Dilutive effect of outstanding options and restricted stock units as determined by the treasury stock method (in shares)									315	169	45
Diluted: Weighted average common and common equivalent shares outstanding (in shares)									7,759	7,592	7,655
Net income (loss) per common share:
Basic (in dollars per share)	$ 0.13	$ 0.35	$ 0.16	$ 0.09	$ (0.06)	$ 0.24	$ 0.12	$ 0.13	$ 0.73	$ 0.43	$ 0.48
Diluted (in dollars per share)	$ 0.12	$ 0.33	$ 0.16	$ 0.09	$ (0.06)	$ 0.24	$ 0.12	$ 0.13	$ 0.70	$ 0.42	$ 0.47
Earnings per share [Abstract]
Anti-dilutive securities excluded from computation of earnings per dilutive share (in shares)									149		341

Stock repurchase program (Detai

Stock repurchase program (Details) - USD ($) $ / shares in Units, $ in Thousands	10 Months Ended	22 Months Ended	168 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Mar. 01, 2018
Stock repurchase program [Abstract]
Authorized value of common stock to be repurchased				$ 5,000
Common stock repurchased (in shares)			4,044,842
Value of common stock repurchased			$ 32,110
Average purchase price of common stock repurchased (in dollars per share)			$ 7.94
2018 New Stock Repurchase Program [Member]
Stock repurchase program [Abstract]
Common stock repurchased (in shares)	156,410
Value of common stock repurchased	$ 2,000
Average purchase price of common stock repurchased (in dollars per share)	$ 12.79
2016 Stock Repurchase Program [Member]
Stock repurchase program [Abstract]
Common stock repurchased (in shares)		499,843
Value of common stock repurchased		$ 3,929
Average purchase price of common stock repurchased (in dollars per share)		$ 7.86

Geographic area information (De

Geographic area information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Geographical area information [Abstract]
Net sales	$ 11,755	$ 15,838	$ 14,751	$ 12,243	$ 13,194	$ 15,524	$ 13,596	$ 13,997	$ 54,587	$ 56,311	$ 57,235
Fixed assets, net	2,272				2,169				2,272	$ 2,169	$ 2,241
United States [Member]
Geographical area information [Abstract]
Net sales									43,518
International [Member]
Geographical area information [Abstract]
Net sales									$ 11,069
Sales [Member] | Geographic Concentration Risk [Member] | International [Member]
Geographical area information [Abstract]
Concentration risk percentage									20.00%	14.00%	20.00%
Sales [Member] | Geographic Concentration Risk [Member] | Europe [Member]
Geographical area information [Abstract]
Concentration risk percentage									56.00%	44.00%	56.00%
Sales [Member] | Geographic Concentration Risk [Member] | Pacific Rim [Member]
Geographical area information [Abstract]
Concentration risk percentage									36.00%	32.00%	34.00%
Sales [Member] | Geographic Concentration Risk [Member] | Canada [Member]
Geographical area information [Abstract]
Concentration risk percentage									6.00%	18.00%	8.00%
Reportable Geographical Components [Member] | United States [Member]
Geographical area information [Abstract]
Net sales									$ 43,518	$ 48,720	$ 45,542
Fixed assets, net	1,767				1,548				1,767	1,548	1,581
Reportable Geographical Components [Member] | International [Member]
Geographical area information [Abstract]
Net sales									11,069	7,591	11,693
Fixed assets, net	$ 505				$ 621				$ 505	$ 621	$ 660

Quarterly results of operatio_3

Quarterly results of operations (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Quarterly results of operations (unaudited) [Abstract]
Net sales	$ 11,755	$ 15,838	$ 14,751	$ 12,243	$ 13,194	$ 15,524	$ 13,596	$ 13,997	$ 54,587	$ 56,311	$ 57,235
Gross profit	5,886	8,004	6,991	5,862	6,620	7,519	6,430	6,093	26,743	26,662	23,799
Net income (loss)	$ 962	$ 2,574	$ 1,210	$ 680	$ (412)	$ 1,813	$ 867	$ 943	$ 5,426	$ 3,211	$ 3,617
Net income (loss) per common share:
Basic (in dollars per share)	$ 0.13	$ 0.35	$ 0.16	$ 0.09	$ (0.06)	$ 0.24	$ 0.12	$ 0.13	$ 0.73	$ 0.43	$ 0.48
Diluted (in dollars per share)	$ 0.12	$ 0.33	$ 0.16	$ 0.09	$ (0.06)	$ 0.24	$ 0.12	$ 0.13	$ 0.70	$ 0.42	$ 0.47

Accounting pronouncements (Deta

Accounting pronouncements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounting Pronouncements [Abstract]
Net cash provided by operating activities	$ 5,109	$ 5,918	$ 4,624
Net cash used in financing activities	$ (4,516)	$ (1,919)	$ (5,964)
Common Stock [Member]
Accounting Pronouncements [Abstract]
Options exercised (in shares)	58,146	166,600	3,750