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 |