Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 01, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 | ||
Entity Registrant Name | COMMUNICATIONS SYSTEMS INC | ||
Entity Central Index Key | 22,701 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 30,627,000 | ||
Entity Common Stock, Shares Outstanding | 8,982,169 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 12,453,663 | $ 10,443,274 |
Investments | 5,540,744 | 5,805,276 |
Trade accounts receivable, less allowance for doubtful accounts of $106,000 and $77,000, respectively | 12,183,217 | 14,552,191 |
Inventories | 13,984,428 | 22,204,902 |
Prepaid income taxes | 493,834 | 1,400,118 |
Other current assets | 810,532 | 967,332 |
TOTAL CURRENT ASSETS | 45,466,418 | 55,373,093 |
PROPERTY, PLANT AND EQUIPMENT, net | 12,624,730 | 15,719,403 |
OTHER ASSETS: | ||
Goodwill | 1,462,503 | |
Deferred income taxes | 38,136 | |
Other assets | 16,977 | 622,017 |
TOTAL OTHER ASSETS | 55,113 | 2,084,520 |
TOTAL ASSETS | 58,146,261 | 73,177,016 |
CURRENT LIABILITIES: | ||
Accounts payable | 4,554,683 | 6,953,710 |
Accrued compensation and benefits | 2,422,083 | 2,149,973 |
Other accrued liabilities | 1,586,473 | 1,851,938 |
Dividends payable | 397,151 | 412,542 |
TOTAL CURRENT LIABILITIES | 8,960,390 | 11,368,163 |
LONG TERM LIABILITIES: | ||
Long-term compensation plans | 11,079 | 16,299 |
Uncertain tax positions | 4,065 | 106,864 |
Deferred income taxes | 52,998 | |
TOTAL LONG-TERM LIABILITIES | 15,144 | 176,161 |
COMMITMENTS AND CONTINGENCIES (Footnote 7) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $1.00 per share; 3,000,000 shares authorized; none issued | ||
Common stock, par value $.05 per share; 30,000,000 share authorized; 8,973,708 and 8,877,379 shares issued and outstanding, respectively | 448,685 | 443,869 |
Additional paid-in capital | 42,006,750 | 41,279,281 |
Retained earnings | 7,328,671 | 20,596,203 |
Accumulated other comprehensive loss | (613,379) | (686,661) |
TOTAL STOCKHOLDERS' EQUITY | 49,170,727 | 61,632,692 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 58,146,261 | $ 73,177,016 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheets [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 106,000 | $ 77,000 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.05 | $ 0.05 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 8,973,708 | 8,877,379 |
Common stock, shares outstanding | 8,973,708 | 8,877,379 |
Consolidated Statements Of Loss
Consolidated Statements Of Loss And Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements Of Loss And Comprehensive Loss [Abstract] | ||
Sales | $ 82,322,618 | $ 99,352,934 |
Cost of sales | 61,486,379 | 72,771,393 |
Gross profit | 20,836,239 | 26,581,541 |
Operating expenses: | ||
Selling, general and administrative expenses | 28,699,138 | 35,185,924 |
Additional minimum pension liability adjustments | (4,147,836) | |
Impairment loss | 1,617,389 | |
Restructuring expense | 2,284,541 | |
Total operating expenses | 32,601,068 | 31,038,088 |
Operating loss | (11,764,829) | (4,456,547) |
Other (expenses) income: | ||
Investment and other income | 52,992 | 208,564 |
Gain (Loss) on sale of assets | (76,870) | 749,509 |
Interest and other expense | (71,428) | (119,627) |
Foreign currency translation loss | (4,238,497) | |
Other (expense) income, net | (95,306) | (3,400,051) |
Loss from operations before income taxes | (11,860,135) | (7,856,598) |
Income tax (benefit) expense | (34,503) | 256,950 |
Net loss | (11,825,632) | (8,113,548) |
Other comprehensive income (loss), net of tax: | ||
Additional minimum pension liability adjustments | (4,147,836) | |
Unrealized (losses)/gains on available-for-sale securities | (4,566) | 29,736 |
Foreign currency translation adjustment | 77,848 | 4,097,821 |
Total other comprehensive income (loss) | 73,282 | (20,279) |
Comprehensive loss | $ (11,752,350) | $ (8,133,827) |
Basic net loss per share: | $ (1.32) | $ (0.92) |
Diluted net loss per share: | $ (1.32) | $ (0.92) |
Weighted Average Basic Shares Outstanding | 8,942,523 | 8,831,782 |
Weighted Average Dilutive Shares Outstanding | 8,942,523 | 8,831,782 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
BALANCE at Dec. 31, 2015 | $ 437,727 | $ 40,129,285 | $ 32,284,061 | $ (666,382) | $ 72,184,691 |
BALANCE, Shares at Dec. 31, 2015 | 8,754,550 | ||||
Net loss | (8,113,548) | (8,113,548) | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 1,219 | 156,153 | 157,372 | ||
Issuance of common stock under Employee Stock Purchase Plan, Shares | 24,375 | ||||
Issuance of common stock to Employee Stock Ownership Plan | $ 3,014 | 465,346 | 468,360 | ||
Issuance of common stock to Employee Stock Ownership Plan, Shares | 60,278 | ||||
Issuance of common stock under Executive Stock Plan | $ 2,106 | 0 | 2,106 | ||
Issuance of common stock under Executive Stock Plan, Shares | 42,118 | ||||
Tax benefit from non-qualified stock options | (85,102) | (85,102) | |||
Share based compensation | 631,875 | 631,875 | |||
Other share retirements | $ (197) | (18,276) | (8,258) | (26,731) | |
Other share retirements, Shares | (3,942) | ||||
Shareholder dividends | (3,566,052) | (3,566,052) | |||
Other comprehensive income (loss) | (20,279) | (20,279) | |||
BALANCE at Dec. 31, 2016 | $ 443,869 | 41,279,281 | 20,596,203 | (686,661) | 61,632,692 |
BALANCE, Shares at Dec. 31, 2016 | 8,877,379 | ||||
Net loss | (11,825,632) | (11,825,632) | |||
Issuance of common stock under Employee Stock Purchase Plan | $ 1,183 | 103,100 | 104,283 | ||
Issuance of common stock under Employee Stock Purchase Plan, Shares | 23,660 | ||||
Issuance of common stock to Employee Stock Ownership Plan | $ 2,362 | 216,396 | 218,758 | ||
Issuance of common stock to Employee Stock Ownership Plan, Shares | 47,248 | ||||
Issuance of common stock under Executive Stock Plan | $ 1,374 | 0 | 1,374 | ||
Issuance of common stock under Executive Stock Plan, Shares | 27,471 | ||||
Share based compensation | 417,489 | 417,489 | |||
Other share retirements | $ (103) | (9,516) | 1,007 | (8,612) | |
Other share retirements, Shares | (2,050) | ||||
Shareholder dividends | (1,442,907) | (1,442,907) | |||
Other comprehensive income (loss) | 73,282 | 73,282 | |||
BALANCE at Dec. 31, 2017 | $ 448,685 | $ 42,006,750 | $ 7,328,671 | $ (613,379) | $ 49,170,727 |
BALANCE, Shares at Dec. 31, 2017 | 8,973,708 |
Consolidated Statements Of Cha6
Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Retained Earnings [Member] | ||
Shareholder dividends per share | $ 0.16 | $ 0.40 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (11,825,632) | $ (8,113,548) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 3,186,458 | 3,683,009 |
Share based compensation | 417,489 | 631,875 |
Deferred taxes | (91,134) | (8,456) |
Impairment loss | 1,617,389 | |
Change in fair value of acquisition-related contingent consideration | (142,234) | |
Loss/(gain) on sale of assets | 582,317 | (749,509) |
Changes in assets and liabilities: | ||
Trade accounts receivables | 2,393,310 | 3,249,449 |
Inventories | 8,268,676 | 2,682,835 |
Prepaid income taxes | 908,513 | 1,567,676 |
Other assets | 595,869 | 126,031 |
Accounts payable | (2,499,232) | (1,178,120) |
Accrued compensation and benefits | 482,324 | (406,608) |
Other accrued liabilities | (283,628) | (107,726) |
Income taxes payable | (102,799) | (80,871) |
Other | 61,558 | |
Net cash provided by operating activities | 3,649,920 | 1,215,361 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (773,367) | (2,286,027) |
Purchases of investments | (6,043,715) | |
Proceeds from the sale of fixed assets | 219,888 | 974,860 |
Proceeds from the sale of investments | 6,303,681 | 5,746,633 |
Net cash (used in) provided by investing activities | (293,513) | 4,435,466 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowing against line of credit | 4,894,046 | |
Payments against line of credit | (4,894,046) | |
Cash dividends paid | (1,458,298) | (4,628,402) |
Mortgage principal payments | (103,603) | |
Proceeds from issuance of common stock, net of shares withheld | 97,045 | 132,747 |
Payment of contingent consideration related to acquisition | (300,000) | |
Net cash used in financing activities | (1,361,253) | (4,899,258) |
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH | 15,235 | (121,032) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,010,389 | 630,537 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 10,443,274 | 9,812,737 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 12,453,663 | 10,443,274 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Income taxes refunded | (693,113) | (1,232,979) |
Interest paid | 38,851 | 43,630 |
Dividends declared not paid | 397,151 | 412,542 |
Capital expenditures in accounts payable | $ 90,623 | $ 6,621 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of business: Communications Systems, Inc. (herein collectively called “CSI,” “our” or the “Company”) is a Minnesota corporation organized in 1969 that operates directly and through its subsidiaries located in the United States and the United Kingdom. CSI is principally engaged through its Suttle business unit in the manufacture and sale of connectivity infrastructure products for broadband and voice communications and through its Transition Networks business unit in the manufacture and sale of core media conversion products, Ethernet switches, and other connectivity and data transmission products . Through its JDL Technologies business unit the Company provides technology solutions including virtualization, managed services, wired and wireless network design and implementation , HIPAA-compliant IT services, and converged infrastructure configuration and deployment . Through its Net2Edge business unit, the Company enables telecommunications carriers to connect legacy networks to high-speed networks and services. The Company classifies its businesses into four segments that correspond to these four business units . Non-allocated general and administrative expenses are separately accounted for as “Other” in the Company’s segment reporting. Intersegment revenues are eliminated upon consolidation. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and accounts have been eliminated. Use of estimates: The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company uses estimates based on the best information available in recording transactions and balances resulting from operations . Actual results could differ from those estimates. The Company’s estimates consist principally of reserves for doubtful accounts, sales returns, warranty costs, asset impairment evaluations, accruals for compensation plans, self-insured medical and dental accruals, lower of cost or market inventory adjustments, provisions for income taxes and deferred taxes and depreciable lives of fixed assets. Cash equivalents: For purposes of the consolidated statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. As of December 31, 2017 , the Company had $ 12,454,000 in cash and cash equivalents. Of this amount, $ 6,193,000 was invested in short-term money market funds that are not considered to be bank deposits and are not insured or guaranteed by the federal deposit insurance company (FDIC) or other government agency. These money market funds seek to preserve the value of the investment at $ 1.00 per share; however, it is possible to lose money investing in these funds. The remainder is operating cash and certificates of deposit which are fully insured through the FDIC. Investments: Investments consist of certificates of deposit , corporate notes and bonds , and commercial paper that are traded on the open market and are classified as available-for-sale at December 31, 2017 . Available-for-sale investments are reported at fair value with unrealized gains and losses excluded from operations and reported as a separate component of stockholders’ equity, net of tax (see Accumulated other comprehensive loss below). Inventories: Inventories are stated at the lower of cost or net realizable value . Cost is determined by the first-in, first-out method. Provision to reduce inventories to the lower of cost or net realizable value is made based on a review of excess and obsolete inventories, estimates of future sales, examination of historical consumption rates and the related value of component parts. Property, plant and equipment: Property, plant and equipment are recorded at cost. Depreciation is computed using the straight-line method. Depreciation included in cost of sales and selling, general and administrative expenses for continuing operations was $ 3,156,000 and $ 3,609,000 for 2017 and 2016 , respectively. Maintenance and repairs are charged to operations and additions or improvements are capitalized. Items of property sold, retired or otherwise disposed of are removed from the asset and accumulated depreciation accounts and any gains or losses on disposal are reflected in operations. Intangible Assets: Intangible assets with indefinite useful lives are not amortized, but are tested at least annually for impairment. Recoverability of long-lived assets: The Company reviews its long-lived assets periodically when impairment indicators exist as required under generally accepted accounting principles. Potential impairment is determined by comparing the carrying value of the assets with expected net cash flows expected to be provided by operating activities of the business or related products . If the sum of the expected future net cash flows is less than the carrying value, an impairment loss would be measured by comparing the amount by which the carrying value exceeds the fair value of the asset. Warranty: The Company reserves for the estimated cost of product warranties at the time revenue is recognized . We estimate the costs of our warranty obligations based on our warranty policy or applicable contractual warranty, historical experience of known product failure rates, and use of materials and service delivery costs incurred in correcting product failures. Management reviews the estimated warranty liability on a quarterly basis to determine its adequacy. The following table presents the changes in the Company’s warranty liability for the years ended December 31, 2017 and 2016 , which relate to normal product warranties and a five -year obligation to provide for potential future liabilities for certain network equipment sales: Year Ended December 31 2017 2016 Beginning balance $ 600,000 $ 554,000 Amounts charged to expense 93,000 147,000 Actual warranty costs paid (90,000) (101,000) Ending balance $ 603,000 $ 600,000 Accumulated other comprehensive loss: The components of accumulated other comprehensive loss are as follows: Foreign Currency Translation Unrealized (loss)/gain on securities Accumulated Other Comprehensive Loss December 31, 2016 $ (704,000) $ 17,000 $ (687,000) Net current period change 79,000 (5,000) 74,000 December 31, 2017 $ (625,000) $ 12,000 $ (613,000) The Company recognized $4,238,000 in foreign currency translation losses within the income statement during the first quarter of 2016 due to the substantial liquidation of our Austin Taylor subsidiary in the U.K. Refer to Note 7 for further information regarding the pension liability adjustment recognized in income in the first quarter of 2016. The functional currency of Austin Taylor and Net2Edge is the British pound. Assets and liabilities denominated in this foreign currency were translated into U.S. dollars at year-end exchange rates. Revenue and expense transactions were translated using average exchange rates. Suttle Costa Rica use d the U.S. dollar as their functional currency. Revenue recognition : The Company’s manufacturing operations (Suttle, Transition Networks and Net2Edge) recognize revenue when the earnings process is complete, evidenced by persuasive evidence of an agreement, delivery has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured . Revenue is recognized for domestic and international sales at the shipping point or delivery to customers, based on the related shipping terms. Risk of loss transfers at the point of shipment or delivery to customers, and the Company has no further obligation after such time. Sales are made directly to customers and through distributors. Payment terms for distributors are consistent with the terms of the Company’s direct customers. The Company records a provision for sales returns, sales incentives and warranty costs at the time of the sale based on historical experience and current trends. JDL generally records revenue on hardware, software and related equipment sales and installation contracts when the revenue recognition criteria are met and products are installed and accepted by the customer . JDL records revenue on service contracts on a straight-line basis over the contract period, unless evidence suggests the revenue is earned in a different pattern. Each contract is individually reviewed to determine when the earnings process is complete. Research and development: Research and development costs consist of outside testing services, equipment and supplies associated with enhancing existing products and developing new products . Research and development costs are expensed when incurred and totaled $ 3,639,000 in 2017 and $ 5,366,000 in 2016 . Net income per share: Basic net income per common share is based on the weighted average number of common shares outstanding during each year. Diluted net income per common share adjusts for the dilutive effect of potential common shares outstanding. The Company’s only potential common shares outstanding are stock options and shares associated with the long-term incentive compensation plans, which resulted in no dilutive effect for 2017 and 2016 . The Company calculates the dilutive effect of outstanding options and unvested shares using the treasury stock method. Due to the net loss in 2017 and 2016 , there was no dilutive impact from outstanding stock options or unvested shares. Options totaling 1,144,159 would have been excluded from the calculation of diluted earnings per share for year ended December 31, 2017 , because the exercise price was greater than the average market price of common stock during the year and deferred stock awards totaling 181,224 shares would not have been included because of unmet performance conditions. Options totaling 902,930 would have been excluded from the calculation of diluted earnings per share for year ended December 31, 2016 , because the exercise price was greater than the average market price of common stock during the year and deferred stock awards totaling 133,982 shares would not have been included because of unmet performance conditions. Share based compensation: The Company accounts for share based compensation awards on a fair value basis. The estimated grant date fair value of each stock-based award is recognized in income over the requisite service period (generally the vesting period). The estimated fair value of each option is calculated using the Black-Scholes option-pricing model. Accounting standards issued: In May 2014, the Financial Accounting Standards Board (FASB) issued a new accounting standard update on revenue recognition from contracts with customers. The new guidance will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. Under the new guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for th e se goods or services. Due to the FASB’s July 2015 deferral of the standard’s required implementation date, the guidance is effective for interim and annual reporting periods beginning after December 15, 2017. The Company will adopt the accounting standard using the modified retrospective transition approach. The modified retrospective transition approach will recognize any changes from the beginning of the year of initial application (2018) through retained earnings with no restatement of comparative periods. The Company established an implementation team and engaged a third-party consultant to assist with our assessment of the impact of the new revenue guidance on our operations, consolidated financial statements and related disclosures and our implementation of the new standard. The Company completed an implementation plan that included (i) analyzing the new standard’s impact on the Company's contract portfolio; (ii) surveying the Company's businesses and various revenue streams; (iii) completing contract reviews; (iv) comparing its historical accounting policies and practices to the requirements of the new guidance; (v) identifying potential differences from applying the requirements of the new guidance to its contracts; and (vi) updating its accounting policy. The Company has completed the process of evaluating controls and new disclosure requirements and identifying and implementing appropriate changes to its business processes and systems to support recognition and disclosure under the new guidance. Based on the Company’s analysis of open contracts as of the adoption date, there are no material impacts on the timing or amount of revenue recognized for product sales, which are primarily included within the Company’s Suttle and Transition Networks business units, because these contracts include only point-in-time performance obligations which are fully satisfied within the same reporting period, consistent with current revenue recognition. To the extent that future contracts include multiple performance obligations that are not fully satisfied and one or more were not priced at its standalone selling price (“SSP”), the Company will be required to perform an allocation of the transaction price which may result in a difference in the amount of revenue recognized in any period. There will also be no material change in the timing and amount of revenue recognized for service-related performance obligations that are satisfied over time within the Company’s JDL Technologies business unit. The Company also determined that the nature of its promise to its customers in certain contracts within its JDL Technologies business unit is to arrange for a third party to provide underlying goods or services (i.e., the Company is the agent in the transaction). Revenue allocated to these performance obligations will be recognized on a net basis, however, no such contracts were open as of the adoption date. The Company adopted various practical expedients and policy elections related to the accounting for significant finance components, sales taxes, shipping and handling, costs to obtain a contract and immaterial promised goods or services, which will mitigate certain impacts of adopting this new standard. The new standard requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts, specifically related to disaggregated revenue, contract balances and performance obligations. Additionally, as part of the Company’s implementation of the new standard , the Company implemented new internal controls to address risks associated with applying the five-step model, specifically related to judgments made in connection to performance obligations, estimated standalone selling prices and estimating variable consideration. The Company has also established monitoring controls to identify new sales arrangements and changes in its business environment that could potentially impact its current accounting assessment. In February 2016, the FASB issued new accounting requirements regarding accounting for leases, which requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within that reporting period, and early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. In August 2016, the FASB issued new accounting guidance regarding the classification of cash receipts and payments in the Statement of Cash Flows . This guidance is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the Consolidated Statement of Cash Flows by providing guidance on eight specific cash flow issues . The new standard is effective retrospectively on January 1, 2018, with early adoption permitted. Accounting standards adopted: In July 2015, the FASB issued an accounting standard on inventory, which simplifies the subsequent measurement of inventory by requiring entities to measure inventory at the lower of cost or net realizable value, except for inventory measured using the last-in, first-out (LIFO) or the retail inventory methods. This standard requires entities to compare the cost of inventory to one measure – net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The standard is effective for the annual period beginning after December 15, 2016 and interim periods within those annual periods, with early adoption permitted, and is to be applied prospectively. The Company adopted this standard in the first quarter of 2017 with no material impact on its consolidated financial statements. In November 2015, the FASB issued an accounting standard on deferred taxes, which removes the requirement to present deferred tax assets and liabilities as current and noncurrent on the balance sheet based on the classification of the related asset or liability, and instead requires classification of all deferred tax assets and liabilities as noncurrent. This guidance will be effective for interim and annual reporting periods beginning after December 15, 2016, and early adoption is permitted. The Company adopted this guidance in the first quarter of 2017 and other than the prescribed classification of all deferred tax assets and liabilities as noncurrent, there was no material impact on its consolidated financial statements. In March 2016, the FASB issued a new accounting standard that changed certain aspects of accounting for share-based payments to employees, including the accounting for income taxes, forfeitures and statutory withholding requirements, as well as classification in the statement of cash flows. The new standard is effective for annual and interim periods beginning after December 15, 2016. The Company adopted this standard during the first quarter of 2017 with no material impact on our financial condition or results of operations. In January 2017, the FASB issued new accounting guidance regarding the simplification of the test for goodwill impairment. The new standard eliminates the quantitative goodwill impairment analysis requirement to determine the fair value of individual assets and liabilities of a reporting unit to determine the amount of any goodwill impairment and instead permits an entity to recognize goodwill impairment loss as the excess of a reporting unit’s carrying value over the estimated fair value of the reporting unit, to the extent this amount does not exceed the carrying amount of goodwill. The new guidance continues to allow an entity to perform a qualitative assessment over goodwill impairment indicators in lieu of a quantitative assessment in certain situations. The standard will be effective for annual and interim periods beginning January 1, 2020, with early adoption permitted. The Company adopted this standard during 2017. As noted below in Note 5, the Company analyzed the reporting unit that had the goodwill and also analyzed the Company as a whole, including the Company’s four separate reporting units. Based on this analysis, the Company determined that the book value exceeded the overall fair value of the reporting units and the Company’s overall market value. As a result, the Company recorded a goodwill impairment charge totaling $1,463,000 during the second quarter of 2017. |
Cash Equivalents And Investment
Cash Equivalents And Investments | 12 Months Ended |
Dec. 31, 2017 | |
Cash Equivalents And Investments [Abstract] | |
Cash Equivalents And Investments | NOTE 2 –CASH EQUIVALENTS AND INVESTMENTS The following tables show the Company’s cash equivalents and available-for-sale securities’ amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash equivalents or short and long term investments as of December 31, 2017 and December 31, 2016 : December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds $ 6,193,000 $ - $ - $ 6,193,000 $ 6,193,000 $ - $ - Subtotal 6,193,000 - - 6,193,000 6,193,000 - - Investments: Commercial Paper 997,000 - - 997,000 - 997,000 - Corporate Notes/Bonds 4,545,000 - (1,000) 4,544,000 - 4,544,000 - Subtotal 5,542,000 - (1,000) 5,541,000 - 5,541,000 - Total $ 11,735,000 $ - $ (1,000) $ 11,734,000 $ 6,193,000 $ 5,541,000 $ - December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds $ 3,851,000 $ - $ - $ 3,851,000 $ 3,851,000 $ - $ - Subtotal 3,851,000 - - 3,851,000 3,851,000 - - Investments: Certificates of deposit 4,291,000 4,000 (1,000) 4,294,000 - 4,294,000 - Corporate Notes/Bonds 1,511,000 - - 1,511,000 - 1,511,000 - Subtotal 5,802,000 4,000 (1,000) 5,805,000 - 5,805,000 - Total $ 9,653,000 $ 4,000 $ (1,000) $ 9,656,000 $ 3,851,000 $ 5,805,000 $ - The Company tests for other than temporary losses on a quarterly basis and has considered the unrealized losses indicated above to be temporary in nature. The Company intends to hold the investments until it can recover the full principal amount and has the ability to do so based on other sources of liquidity. The Company expects such recoveries to occur prior to the contractual maturities . All unrealized losses as of December 31, 2017 were in a continuous unrealized loss position for less than twelve months and are not deemed to be other than temporarily impaired as of December 31, 2017 . The following table summarizes the estimated fair value of our investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of December 31, 2017 : Amortized Cost Estimated Market Value Due within one year $ 5,542,000 $ 5,541,000 Due after one year through five years 0 0 $ 5,542,000 $ 5,541,000 The Company did not recognize any gross realized gains or gross realized losses during the years ending December 31, 2017 and 2016 , respectively. If the Company had realized gains or losses, they would be included within investment and other income in the accompanying consolidated statements of loss . |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Inventories | NOTE 3 - INVENTORIES Inventories consist of: December 31 2017 2016 Finished goods $ 8,056,000 $ 12,083,000 Raw and processed materials 5,928,000 10,122,000 $ 13,984,000 $ 22,205,000 |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment | NOTE 4 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment and the estimated useful lives are as follows: Estimated December 31 useful life 2017 2016 Land $ 2,951,000 $ 2,951,000 Buildings and improvements 3 -40 years 8,867,000 9,112,000 Machinery and equipment 3 -15 years 26,597,000 31,394,000 Furniture and fixtures 3 -10 years 4,174,000 4,811,000 Construction in progress 396,000 259,000 42,985,000 48,527,000 Less accumulated depreciation (30,360,000) (32,807,000) $ 12,625,000 $ 15,720,000 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets [Abstract] | |
Goodwill And Intangible Assets | NOTE 5 – GOODWILL AND INTANGIBLE ASSETS Goodwill is required to be evaluated for impairment on an annual basis and between annual tests upon the occurrence of certain events or circumstances. In January 2017, the FASB issued new accounting guidance simplifying the goodwill impairment test. The new standard eliminates the quantitative goodwill impairment analysis requirement to determine the fair value of individual assets and liabilities of a reporting unit to determine the amount of any goodwill impairment and instead permits an entity to recognize goodwill impairment loss as the excess of a reporting unit’s carrying value over the estimated fair value of the reporting unit, to the extent this amount does not exceed the carrying amount of goodwill. The Company chose to adopt this standard early for the annual impairment analysis in 2017. The Company performed the first step of the previous two-step process, which requires that the fair value of the reporting unit be compared to its book value including goodwill. If the fair value is higher than the book value, no impairment is recognized. If the fair value is lower than the book value, an impairment adjustment must be recorded. The Company performs its annual impairment analysis as of April 1 each year. The Company analyzed the reporting unit that had the goodwill and also analyzed the Company as a whole, including the Company’s four separate reporting units. Although JDL Technologies had been profitable for the prior eight quarters, the cyclical and unpredictable nature of revenues from its education sector raised issues in forecasting cash flows in future quarters used to estimate the reporting unit’s fair value. Based on this analysis of comparing the fair value of each reporting unit to the book value, and comparing the Company’s overall book value with its market capitalization, the Company determined that the book value exceeded the overall fair value of the reporting units as well as the Company’s overall market value. As a result, the Company recorded a goodwill impairment charge totaling $1,463,000 during the second quarter of 2017. The changes in the carrying amount of goodwill for the year ended December 31, 2017 by segment are as follows: JDL Technologies January 1, 2017 $ 1,463,000 Impairment loss (1,463,000) December 31, 2017 $ - Gross goodwill 1,463,000 Accumulated impairment loss (1,463,000) Balance at December 31, 2017 $ - As part of the overall annual impairment analysis noted above, the Company also reviewed other intangible assets for potential impairment. Based on this analysis, the Company deemed the intangible assets at Net2Edge related to customer relationships to be impaired and recorded a $154,000 impairment loss during the second quarter of 2017. The Company’s identifiable intangible assets with finite lives are being amortized over their estimated useful lives and are included within other assets in the consolidated balance sheets and were as follows: December 31, 2017 Gross Carrying Amount Accumulated Amortization Impairment Loss Foreign Currency Translation Net Trademarks $ 98,000 $ (66,000) $ - $ (15,000) $ 17,000 Customer relationships 491,000 (230,000) (154,000) (107,000) - Technology 229,000 (189,000) - (40,000) - $ 818,000 $ (485,000) $ (154,000) $ (162,000) $ 17,000 December 31, 2016 Gross Carrying Amount Accumulated Amortization Impairment Loss Foreign Currency Translation Net Trademarks $ 91,000 $ (50,000) $ - $ (20,000) $ 21,000 Customer relationships 491,000 (200,000) - (122,000) 169,000 Technology 229,000 (172,000) - (57,000) - $ 811,000 $ (422,000) $ - $ (199,000) $ 190,000 Amortization expense on these identifiable intangible assets was $ 30,000 and $ 74,000 in 2017 and 2016, respectively. The amortization expense is included in selling, general and administrative expenses. The estimated future amortization expense for identifiable intangible assets during the next five fiscal years is as follows: Year Ending December 31: 2018 $ 7,000 2019 2,000 2020 2,000 2021 2,000 2022 2,000 |
Employee Retirement Benefits
Employee Retirement Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Employee Retirement Benefits [Abstract] | |
Employee Retirement Benefits | NOTE 6 - EMPLOYEE RETIREMENT BENEFITS The Company has an Employee Savings Plan (401(k)) and matches a percentage of employee contributions up to six percent of compensation . Contributions to the plan in 2017 and 2016 were $ 450,000 and $ 554,000 , respectively. The Company’s U.K. - based subsidiary Austin Taylor maintain ed a defined benefit pension plan for its employees through March 31, 2016. The Company does not provide any other post-retirement benefits to its employees . Components of the Company’s net periodic pension (benefit) cost are: 2016 Service cost $ - Interest cost 26,000 Expected return on assets (24,000) Plan settlement costs (43,000) Amortization of prior service cost - Net periodic pension (benefit) cost $ (41,000) The Company settled all its obligations under the Austin Taylor pension plan in the first quarter of 2016. The Company had contributed $650,000 toward the settlement of the pension into annuities in 2015, which resulted in the recognition of $1,222,000 of pension settlement costs in the income statement in the fourth quarter of 2015 . The Company contributed an additional $68,000 toward the settlement in the first quarter of 2016, which resulted in a benefit of $43,000 recorded within operating expenses . As a result of the final settlement of all of its pension obligations, in the first quarter of 2016, the Company recorded $4,148,000 in pension liability adjustment gains previously recorded in accumulated other comprehensive income within operating expenses in the consolidated statement of income. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | NOTE 7 – COMMITMENTS AND CONTINGENCIES Operating leases: The Company leases land, buildings and equipment under operating leases with original terms from 1 to 5 years . Total rent expense was $ 474,000 and $ 620,000 in 2017 and 2016, respectively . At December 31, 2017 , the Company was obligated under non - cancelable operating leases to make minimum annual future lease payments as follows: Year Ending December 31: 2018 $ 210,000 2019 112,000 2020 91,000 2021 91,000 2022 91,000 Thereafter 402,000 $ 997,000 Long-term debt: The mortgage on the Company’s headquarters building was payable in monthly installments and carrie d an interest rate of 6.83 % . The mortgage mature d on March 1, 2016 and the Company made payments totaling $104,000 in the first quarter of 2016 to fully settle the liability . The mortgage was secured by the building. Line of credit: The Company has a $ 15,000,000 credit facility from Wells Fargo Bank . The Company had no outstanding borrowings against the credit facility at December 31, 2017 and 2016 . Due to the revolving nature of loans under our credit facility, additional borrowings and periodic repayments and re-borrowings may be made until the maturity date. The total amount available for borrowings under this credit facility at December 31, 2017 was $ 10,080,000 , based on the borrowing base calculation. Interest on borrowings on the credit facility is at LIBOR plus 2.0 % ( 3.6% at December 31, 2017 ). The credit agreement expires August 12, 2021 and is secured by assets of the Company. The credit agreement contains financial covenants including a minimum liquidity balance of $10,000,000 . Liquidity is defined as the sum of unrestricted cash, marketable securities and the availability on the line of credit. As of December 31, 2017 , the Company had no other material commitments (either cancelable or non-cancelable) for capital expenditures or other purchase commitments related to ongoing operations. Long-term compensation plans: The Company has a long term incentive plan that provides long-term competitive compensation to enable the Company to attract and retain qualified executive talent and to reward employees for achieving goals and improving company performance. The plan provides grants of “performance units” made at the beginning of performance periods and paid at the end of the period if performance goals are met. Awards were previously made every other year and are paid following the end of the cycle with annual vesting . Payment in the case of retirement, disability or death will be on a pro rata basis . The Company recognized (income)/ expense of $(5,000) and $ 16,000 in 2017 and 2016 , respectively . Accrual balances for long-term compensation plans at December 31, 2017 and 2016 were $ 11,000 and $ 16,000 , respectively. There were no award payouts in 2017 and 2016 . Awards for 2015 to 2017 cycles will be paid out 100% in stock . Awards under the 2016 to 2018 and 2017 to 2019 plans will be paid out 50% in cash and 50% in stock. The stock portion of these awards are treated as equity plans and included within the Stock Compensation footnote within the Deferred Stock Outstanding section below. Other contingencies: In the ordinary course of business, the Company is exposed to legal actions and claims and incurs costs to defend against these actions and claims . Company management is not aware of any outstanding or pending legal actions or claims that would materially affect the Company’s financial position, results of operations, or cash flows. |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Stock Compensation [Abstract] | |
Stock Compensation | NOTE 8 – STOCK COMPENSATION 2011 Executive Incentive Compensation Plan On March 28, 2011 the Board adopted and on May 19, 2011 the Company’s shareholders approved the Company’s 2011 Executive Incentive Compensation Plan (“2011 Incentive Plan”). The 2011 Incentive Plan authorizes incentive awards to officers, key employees and non-employee directors in the form of options (incentive and non-qualified), stock appreciation rights, restricted stock, restricted stock units, performance stock units (“deferred stock”), performance cash units, and other awards in stock, cash, or a combination of stock and cash. The 2011 Incentive Plan, as amended, allows the issuance of up to 2,000,000 shares of common stock. During 2017 , stock options covering 288,186 shares were awarded to key executive employees and non-employee directors, which options expire seven years from the date of award and generally vest 25 % each year beginning one year after the date of award . The Company also granted deferred stock awards of 90,789 shares to key employees during 2017 under the Company’s long-term incentive plan for the 201 7 to 201 9 period. The actual number of shares of deferred stock, if any, that are ultimately earned by the respective employees will be determined based on achievement against performance goals for each of the three years ending December 31, 201 9 and the shares earned will be issued in the first quarter of 20 20 to those key employees still with the Company at that time. At December 31, 2017 , 165,054 shares have been issued under the 2011 Incentive Plan, 1,315,294 shares are subject to currently outstanding options, deferred stock awards, and unvested restricted stock units, and 519,652 shares remained available for future issuance under the 2011 Incentive Plan. Stock Option Plan for Directors Shares of common stock are reserved for issuance to non-employee directors under options granted by the Company prior to 2011 under its Stock Option Plan for Non-Employee Directors (the “Director Plan”) . Under the Director Plan nonqualified stock options to acquire 3,000 shares of common stock were automatically granted to each non-employee director concurrent with annual meetings of shareholders in 2010 and earlier years and vested immediately. T he exercise price of options granted was the fair market value of the common stock on the date of the respective shareholder meetings . Options granted under the Director Plan expire 10 years from date of grant. No options have been granted under the Director Plan since 2011 when the Company amended the Director Plan to prohibit future option grants. As of December 31, 2017 , there were 51,000 shares subject to outstanding options under the Director Plan. 1992 Stock Plan Under the Company’s 1992 Stock Plan (“the Stock Plan”), shares of common stock may be issued pursuant to stock options, restricted stock or deferred stock grants to officers and key employees. Exercise prices of stock options under the Stock Plan cannot be less than fair market value of the stock on the date of grant. Rules and conditions governing awards of stock options, restricted stock and deferred stock are determined by the Compensation Committee of the Board of Directors, subject to certain limitations in the Stock Plan. The Company amended the Stock Plan in 2011 to prohibit future equity awards. At December 31, 2017, after reserving for stock options and deferred stock awards described in the two preceding paragraphs and adjusting for forfeitures and issuances during the year, there were 10,230 shares reserved for issuance under the Stock Plan. The Company has not awarded stock options or deferred stock under the Stock Plan since 2011. Stock Options Outstanding The following table summarizes changes in the number of outstanding stock options under the Director Plan , Stock Plan and the 2011 Incentive Plan during the two years ended December 31, 2017 . Weighted average Weighted average exercise price remaining Options per share contractual term Outstanding – December 31, 2015 721,924 $ 11.70 4.89 years Awarded 325,968 6.66 Exercised - - Forfeited (124,962) 10.39 Outstanding – December 31, 2016 922,930 $ 10.10 4.9 years Awarded 288,186 4.35 Exercised - - Forfeited (38,457) 11.61 Outstanding – December 31, 2017 1,172,659 8.63 4.55 years Exercisable at December 31, 2017 674,186 $ 10.46 3.74 years Expected to vest December 31, 2017 1,172,659 8.63 4.55 years The fair value of awards issued under the Company’s stock option plan is estimated at grant date using the Black-Scholes option-pricing model . The following table displays the assumptions used in the model. Year Ended December 31 2017 2016 Expected volatility 30.4% 29.5% Risk free interest rate 2.0% 1.5% Expected holding period 6 years 6 years Dividend yield 3.7% 9.1% Total unrecognized compensation expense was $ 190,000 as of December 31, 2017 , which is expected to be recognized over the next 2.3 years . The aggregate intrinsic value of all outstanding options, exercisable options, and options expected to vest ( the amount by which the market price of the stock on the last day of the period exceeded the market price of the stock on the date of grant) was $ 0 based on the Company’s stock price at December 31, 2017 . The intrinsic value of options exercised during the year was $ 0 in 2017 and 2016 . Net cash proceeds from the exercise of all stock options were $ 0 for 2017 and 2016 . There were no stock options exercised in 2017. The following table summarizes the status of stock options outstanding at December 31, 2017 : Weighted Average Weighted Remaining Average Range of Exercise Prices Shares Option Life Exercise Price $3.72 to $5.24 288,186 6.3 years $ 4.35 $5.25 to $7.49 289,200 5.3 years 6.61 $7.50 to $9.74 18,000 1.4 years 9.73 $9.75 to $11.99 439,833 3.6 years 11.34 $12.00 to $14.15 137,440 2.7 years 13.08 The Company receives an income tax benefit related to the gains received by officers and key employees who make disqualifying dispositions of stock received on exercise of qualified incentive stock options and on non-qualified options . The amount of tax benefit received by the Company was $ 0 and $ 0 in 2017 and 2016, respectively . The tax benefit amounts have been credited to additional paid-in capital. Deferred Stock Outstanding The following table summarizes the changes in the number of deferred stock shares under the Stock Plan and 2011 Incentive Plan over the period from December 31, 2015 to December 31, 2017 : Weighted Average Grant Date Shares Fair Value Outstanding – December 31, 2015 126,427 $ 11.73 Granted 102,161 7.28 Vested (23,095) 11.36 Forfeited (56,233) 9.60 Outstanding – December 31, 2016 149,260 9.55 Granted 100,239 4.42 Vested (14,130) 10.61 Forfeited (44,845) 10.28 Outstanding – December 31, 2017 190,524 6.60 The grant date fair value is calculated based on the Company’s closing stock price as of the grant date. As of December 31, 2017 , the total unrecognized compensation expense related to the deferred stock shares was $ 22,000 and is expected to be recognized over a weighted-average period of 1.1 years. Restricted Stock Units Outstanding The following table summarizes the changes in the number of restricted stock units under the 2011 Incentive Plan over the period December 31, 2015 to December 31, 2017 : Weighted Average Grant Date Shares Fair Value Outstanding – December 31, 2015 32,816 $ 11.41 Granted 13,793 6.33 Vested (19,023) 10.90 Forfeited (452) 11.05 Outstanding – December 31, 2016 27,134 8.65 Vested (13,341) 11.05 Outstanding – December 31, 2017 13,793 6.33 The grant date fair value is calculated based on the Company’s closing stock price as of the grant date. As of December 31, 2017 , the total unrecognized compensation expense related to the restricted stock units was $ 0 . Compensation Expense Share-based compensation expense is recognized based on the fair value of awards granted over the vesting period of the award . Share-based compensation expense recognized for 2017 and 2016 was $ 417,000 and $ 632,000 before income taxes and $ 271,000 and $ 411,000 after income taxes, respectively. Share-based compensation expense is recorded as a part of selling, general and administrative expenses. Employee Stock Purchase Plan Under the Company’s Employee Stock Purchase Plan (“ESPP”) , employees are able to acquire shares of common stock at 85 % of the price at the end of each current quarterly plan term . The most recent term ended December 31, 2017 . The ESPP is considered compensatory under current rules . At December 31, 2017 , after giving effect to the shares issued as of that date, 53,205 shares remain available for purchase under the ESPP. Employee Stock Ownership Plan (ESOP) All eligible employees of the Company participate in the ESOP after completing one year of service . Contributions are allocated to each participant based on compensation and vest 20 % after two years of service and incrementally thereafter, with full vesting after six years. At December 31, 2017 , the ESOP held 696,688 shares of the Company’s common stock, all of which have been allocated to the accounts of eligible employees. Contributions to the plan are determined by the Board of Directors and can be made in cash or shares of the Company’s stock. The 2017 ESOP contribution was $ 425,890 for which the Company issue d 119,632 shares in March 201 8. The 2016 ESOP contribution was $ 218,758 for which the Company issued 47,248 shares in 2017 . |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2017 | |
Common Stock [Abstract] | |
Common Stock | NOTE 9 – COMMON STOCK PURCHASES OF COMMUNICATIONS SYSTEMS, INC. COMMON STOCK In October 2008, t he Company’s Board of Directors authorized the repurchase of shares of the Company’s stock pursuant to Exchange Act Rule 10b-18 on the open market, in block trades or in private transactions . At December 31, 2017 , 411,910 additional shares could be repurchased under outstanding Board authorizations. SHAREHOLDER RIGHTS PLAN On December 23, 2009 the Board of Directors adopted a shareholders’ rights plan under which the Board declared a distribution of one right per share of common stock . Each right entitles the holder to purchase 1/100 th of a share of a new series of Junior Participating Preferred Stock of the Company at an initial exercise price of $ 41 . The rights expire on December 23, 2019. The rights will become exercisable only following the acquisition by a person or group, without the prior consent of the Board, of 16.5 % or more of the Company’s voting stock, or following the announcement of a tender offer or exchange offer to acquire an interest of 1 6.5 % or more . If the rights become exercisable, each rightholder will be entitled to purchase, at the exercise price, common stock with a market value equal to twice the exercise price . Should the Company be acquired, each right would entitle the holder to purchase, at the exercise price, common stock of the acquiring company with a market value equal to twice the exercise price . Any rights owned by the acquiring person or group would become void. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 10 - INCOME TAXES Income tax (benefit) expense from continuing operations consists of the following: Year Ended December 31 2017 2016 Current year income taxes: Federal $ (36,000) $ 27,000 State 56,000 (20,000) Foreign 36,000 258,000 56,000 265,000 Deferred income taxes (benefit): Federal $ (86,000) $ 48,000 State (5,000) 5,000 Foreign - (61,000) (91,000) (8,000) $ (35,000) $ 257,000 Austin Taylor Communications, Ltd. operates in the United Kingdom (U.K.) and is subject to U.K. rather than U.S. income taxes . Austin Taylor had no activity in 2017 and pretax income of $ 615,000 in 2016 . At the end of 2017 , Austin Taylor’s net operating loss carry-forward was $ 7,462,000 . T he Company remains uncertain whether it will be able to generate the future income needed to realize the tax benefit of the carry-forward . Accordingly, the Company has continued to maintain its deferred tax valuation allowance against any potential carry-forward benefit from Austin Taylor . Net2Edge, Ltd., formally known as Transition Networks EMEA, Ltd., operates in the U.K. and is subject to U.K. rather than U.S. income taxes. Net2Edge, Ltd. had pretax losses of $ 2,616,000 and $ 2,114,000 in 2017 and 2016, respectively. At the end of 2017 , Net2Edge, Ltd.’s net operating loss carry-forward was $ 4,471,000 . In 2007, Transition Networks China began operations in China and is subject to Chinese taxes rather than U.S. income taxes. Transition Networks China had no activity in 2017 and 2016. At the end of 2017 , Transition Networks China's net operating loss carry-forward was $ 374,000 . Due to the history of losses in China, the Company remains uncertain whether it will be able to generate the future income needed to realize the tax benefit of the carry-forward. Accordingly, the Company has continued to maintain its deferred tax valuation reserve against any potential carry-forward benefit. Transition Networks China ceased operations in 2014 and incurred minor non-operating expenditures in 2015 to close the operations. As of 2016, Transition Networks China no longer has any operational activity. Suttle Costa Rica operate d in Costa Rica and was subject to Costa Rica income taxes. In 2005, the Board of Directors of Suttle Costa Rica declared a dividend in the amount of $ 3,500,000 payable to the Company. The dividend and related “dividend reinvestment plan” qualify under I nternal R evenue C ode Sec. 965 , which allows the Company to receive an 85% dividend - received deduction if the amount of the dividend is reinvested in the United States pursuant to a domestic reinvestment plan . The Company made the required qualified capital expenditures in 2006 . No deferred taxes have been provided for the undistributed earnings. As of December 31, 2017, the amount of unremitted earnings outside of the United States was not significant to the Company’s liquidity and was available to fund investments abroad. The Company closed its Costa Rica facility in 2017 and no longer has any operational activity. Suttle Costa Rica had a pretax loss of $ 1,582,000 in 2017 and pretax income of $ 463,000 in 2016 . At the end of 2017 , Suttle Costa Rica’s net operating loss carry-forward was $ 1,582,000 . In April 2016, we received notification from the Internal Revenue Service that they would be performing an examination of our 2012 and 2013 federal consolidated income tax returns. As of December 31, 2017, the examination was complete. The settlement and payment that resulted from the examination did not have a material effect on our results of operations. The provision for income taxes for continuing operations varied from the federal statutory tax rate as follows: Year Ended December 31 2017 2016 Tax at U.S. statutory rate 35.0% 35.0% Surtax exemption (0.2) (0.6) State income taxes, net of federal benefit 0.5 0.2 Foreign income taxes, net of foreign tax credits (12.8) (7.2) Other nondeductible items (1.0) (0.9) Effect of increase in uncertain tax positions 1.5 0.0 Change in valuation allowance 3.1 (30.1) Change in federal deferred tax rate (25.7) - Other (0.1) 0.3 Effective tax rate 0.3% -3.3% Deferred tax assets and liabilities as of December 31 related to the following: 2017 2016 Deferred tax assets: Allowance for doubtful accounts $ 22,000 $ 26,000 Inventory 1,836,000 2,381,000 Accrued and prepaid expenses 245,000 449,000 Domestic net operating loss carry-forward 2,240,000 2,784,000 Long-term compensation plans 238,000 344,000 Nonemployee director stock compensation 454,000 663,000 Other stock compensation 106,000 210,000 Intangible assets 292,000 - Foreign net operating loss carry-forwards and credits 3,063,000 2,129,000 Federal and state credits 857,000 926,000 Other 16,000 38,000 Gross deferred tax assets 9,369,000 9,950,000 Valuation allowance (8,713,000) (8,117,000) Net deferred tax assets 656,000 1,833,000 Deferred tax liabilities Depreciation (618,000) (1,817,000) Intangible assets - (69,000) Net deferred tax liability (618,000) (1,886,000) Total net deferred tax asset (liability) $ 38,000 $ (53,000) On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act tax reform legislation. This legislation makes significant change in U.S. tax law including a reduction in the corporate tax rates, changes to net operating loss carryforwards and carrybacks, and a repeal of the corporate alternative minimum tax. The legislation reduced the U.S. corporate tax rate from the current rate of 35% to 21% . As a result of the enacted law, the Company was required to revalue deferred tax assets and liabilities at the enacted rate. This revaluation resulted in a decrease of the deferred tax asset of $ 3,047,000 and a corresponding reduction of the valuation allowance . The Company assesses available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three -year period ending December 31, 2017 . Such objective evidence limits the ability to consider other subjective evidence such as the projections for future growth. On the basis of this evaluation, as of December 31, 2017, a valuation allowance of $ 8,713,000 has been recorded to reflect the portion of the deferred tax asset that is more likely to not be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as the Company’s projections for growth. At December 31, 2017 , the Company has a federal net operating loss carryforward from 2015 through 2017 activity of approximately $ 10,663,000 that is available to offset future taxable income and begins to expire in 2035 . During 2015, the Company engaged in a research and development tax credit study for the tax years 2011 to 2014. As a result of this study, the Company claimed $ 1,554,000 of federal and $ 1,024,000 of state research and development credits. The Company amended prior year tax returns to claim these credits and offset prior year taxes paid. Credits not utilized to reduce taxes are available to be carried forward. At December 31, 2017 , the Company has an estimated federal research and development credit carryforward of approximately $ 467,000 and a state research and development credit carryforward of approximately $ 594,000 . The Company assesses uncertain tax positions in accordance with ASC 740. Under this method, the Company must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from these uncertain tax positions are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company’s practice is to recognize interest and penalties related to income tax matters in income tax expense. Changes in the Company’ s uncertain tax positions are summarized as follows: 2017 2016 Uncertain tax positions – January 1 $ 207,000 $ 217,000 Settlements (101,000) 0 Expiration of statute of limitations (65,000) (10,000) Uncertain tax positions – December 31, 2017 $ 41,000 $ 207,000 Included in the balance of uncertain tax positions at December 31, 2017 are $ 44,000 of tax benefits that if recognized would affect the tax rate. The Company’s unrecognized tax benefits will be reduced by $ 13,000 in the next twelve months due to statute of limitations expirations. There are no other expected significant changes in the Company’s uncertain tax positions in the next twelve months. The Company’s income tax liability accounts included accruals for interest and penalties of $ 4,000 at December 31, 2017 . The Company’s 2017 income tax expense decreased by $ 2,000 due to net decreases for accrued interest and penalties. The Company’s federal and state tax returns and tax returns it has filed in Costa Rica and the United Kingdom are open for review going back to the 20 14 tax year. |
Information Concerning Industry
Information Concerning Industry Segments And Major Customers | 12 Months Ended |
Dec. 31, 2017 | |
Information Concerning Industry Segments And Major Customers [Abstract] | |
Information Concerning Industry Segments And Major Customers | NOTE 11 - INFORMATION CONCERNING INDUSTRY SEGMENTS AND MAJOR CUSTOMERS The Company classifies its businesses into four segments as follows: · Suttle manufactures and markets connectivity infrastructure products for broadband and voice communications; · Transition Networks manufactures media converters, NIDs, NICs , Ethernet switches and other connectivity products that offer the ability to affordably integrate the benefits of fiber optics into any data network; · JDL Technologies provides technology solutions that address prevalent IT challenges, including virtualization and cloud solutions , managed services, wired and wireless network design and implementation, and converged infrastructure configuration and deployment ; and · Net2Edge develops, manufactures and sells products that enable telecommunications carriers to connect legacy networks to high-speed services. Management has chosen to organize the enterprise and disclose reportable segments based on products and services. Intersegment revenues are eliminated upon consolidation . Suttle products are sold principally to U.S. customers . Suttle operates manufacturing facilities in the U.S. Net long-lived assets held in foreign countries were approximately $ 93,000 and $ 2,914,000 at December 31, 2017 and 2016 , respectively. Transition Networks manufactures its products in the United States and makes sales in both the U.S. and international markets . JDL Technologies operates in the U.S. and makes sales in the U.S . Net2Edge operates in the U.K. and primarily makes sales in the international markets. Consolidated sales to U.S. customers were approximately 83% and 85% of sales from continuing operations in 2017 and 2016, respectively . In 2017 , sales to one of Suttle’s customers accounted for 10.3% of consolidated sales. In 2016, sales to one of Suttle’s customers accounted for 12.0% of consolidated sales and one of JDL’s customers accounted for 11.3% of consolidated sales. At December 31, 2017, Suttle had one customer that made up 21% of consolidated accounts receivables and Transition Networks had two customers that made up 17% and 15% of consolidated accounts receivable. At December 31, 2016, Suttle had one customer that made up 25% of consolidated accounts receivables and Transition Networks had one customer that made up 17% of consolidated accounts receivable. Information concerning the Company’s operations in the various segments for the twelve-month periods ended December 31, 2017 and 2016 is as follows: Transition JDL Intersegment Suttle Networks Technologies Net2Edge Other Eliminations Total 2017 Sales $ 32,384,000 $ 38,541,000 $ 11,210,000 $ 1,079,000 $ - $ (891,000) $ 82,323,000 Cost of sales 30,964,000 21,779,000 8,437,000 398,000 - (91,000) 61,487,000 Gross profit 1,420,000 16,762,000 2,773,000 681,000 - (800,000) 20,836,000 Selling, general and administrative expenses 8,900,000 15,371,000 2,101,000 3,127,000 - (800,000) 28,699,000 Impairment loss - - 1,463,000 154,000 1,617,000 Restructuring expense 2,285,000 - - - - - 2,285,000 Operating (loss) income $ (9,765,000) $ 1,391,000 $ (791,000) $ (2,600,000) $ - $ - $ (11,765,000) Depreciation and amortization $ 2,155,000 $ 705,000 $ 269,000 $ 57,000 $ - $ - $ 3,186,000 Capital expenditures $ 397,000 $ 232,000 $ 8,000 $ 69,000 $ 67,000 $ - $ 773,000 Assets $ 18,359,000 $ 12,543,000 $ 1,073,000 $ 1,229,000 $ 24,969,000 $ (27,000) $ 58,146,000 Transition JDL Intersegment Suttle Networks Technologies Net2Edge Other Eliminations Total 2016 Sales $ 42,076,000 $ 41,093,000 $ 15,464,000 $ 1,873,000 $ - $ (1,153,000) $ 99,353,000 Cost of sales 38,193,000 23,607,000 10,245,000 904,000 - (177,000) 72,772,000 Gross profit 3,883,000 17,486,000 5,219,000 969,000 - (976,000) 26,581,000 Selling, general and administrative expenses 12,525,000 17,180,000 3,296,000 3,141,000 - (956,000) 35,186,000 Pension liability adjustments - - - - (4,148,000) - (4,148,000) Operating income (loss) $ (8,642,000) $ 306,000 $ 1,923,000 $ (2,172,000) $ 4,148,000 $ (20,000) $ (4,457,000) Depreciation and amortization $ 2,461,000 $ 852,000 $ 267,000 $ 103,000 $ - $ - $ 3,683,000 Capital expenditures $ 1,625,000 $ 188,000 $ 232,000 $ 18,000 $ 244,000 $ (20,000) $ 2,287,000 Assets $ 33,555,000 $ 17,518,000 $ 4,767,000 $ 1,464,000 $ 15,900,000 $ (27,000) $ 73,177,000 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | NOTE 1 2 – FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 2 – Observable inputs such as quoted prices for similar instruments and quoted prices in markets that are not active, and inputs that are directly observable or can be corroborated by observable market data. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities. Level 3 – Significant inputs to pricing that have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as the complex and subjective models and forecasts used to determine the fair value of financial instruments. As discussed in Note 5, we tested our goodwill for impairment as of April 1, 2017. As part of this impairment testing, the Company determined the fair value of the net assets of the JDL Technologies reporting unit, based primarily on discounted cash flows and forecasted future operating results, which represent Level 3 inputs. As a result of our analysis, the Company recorded a non-cash impairment charge of $1,463,000 to fully impair goodwill. A reconciliation of the beginning and ending balances of goodwill are included in Note 5. Financial assets and liabilities measured at fair value on a recurring basis as of December 31 , 2017 and December 31, 2016 , are summarized below: December 31, 2017 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market funds $ 6,193,000 $ - $ - $ 6,193,000 Subtotal 6,193,000 - - 6,193,000 Short-term investments: Commercial Paper - 997,000 - 997,000 Corporate Notes/Bonds - 4,544,000 - 4,544,000 Subtotal - 5,541,000 - 5,541,000 Total $ 6,193,000 $ 5,541,000 $ - $ 11,734,000 December 31, 2016 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market funds $ 3,851,000 $ - $ - $ 3,851,000 Subtotal 3,851,000 - - 3,851,000 Short-term investments: Certificates of deposit - 4,294,000 - 4,294,000 Corporate Notes/Bonds - 1,511,000 - 1,511,000 Subtotal - 5,805,000 - 5,805,000 Total $ 3,851,000 $ 5,805,000 $ - $ 9,656,000 We record transfers between levels of the fair value hierarchy, if necessary, at the end of the reporting period. There were no transfers between levels during 2017 and 2016 . |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | NOTE 1 3 – RESTRUCTURING CHARGES During the year ended December 31, 2017 , the Company recorded $ 2,285,000 in restructuring expense . This consisted of severance and related benefits costs due to the restructuring within the Suttle business segment, including costs related to the closure of the Costa Rica facility. We transferred substantially all of the production from Costa Rica to Minnesota by the end of the second quarter of 2017 and completed the closure in the third quarter of 2017. In the third quarter of 2017, we identified $ 505,000 of equipment, net of accumulated depreciation, that we determined we would no longer use as a result of consolidating our operations in the Minnesota location. We were not able to make this determination until we observed and assessed the condition of the equipment once it arrived in Minnesota. The loss on the disposal of this equipment is included in restructuring expense on the consolidated statement of loss and comprehensive loss. The Company paid $ 1,780,000 in restructuring charges during 2017 and had $0 in restructuring accruals recorded at December 31, 2017 . We do not expect any material restructuring costs in 2018. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 1 4 – SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date of this filing. We do not believe there are any material subsequent events which would require further disclosure. |
Quarterly Operating Results
Quarterly Operating Results | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Operating Results [Abstract] | |
Quarterly Operating Results | Quarterly Operating Results (in thousands except per share amounts) Unaudited Quarter Ended March 31 June 30 Sep 30 Dec 31 2017 Sales $ 20,800 $ 22,068 $ 20,412 $ 19,043 Operating loss (1,460) (4,067) (4,654) (1,584) Net loss (1,516) (4,091) (4,522) (1,697) Basic net loss per share $ (0.17) $ (0.46) $ (0.50) $ (0.19) Diluted net loss per share $ (0.17) $ (0.46) $ (0.50) $ (0.19) 2016 Sales $ 24,666 $ 26,311 $ 25,617 $ 22,759 Operating income (loss) 1 1,280 (2,671) (1,175) (1,891) Net loss (2,467) (2,544) (1,264) (1,839) Basic net (loss) income per share $ (0.28) $ (0.29) $ (0.14) $ (0.21) Diluted net (loss) income per share $ (0.28) $ (0.29) $ (0.14) $ (0.21) 1 As part of the settlement of our pension plan, the Company recorded $4.1 million in pension liability gains previously recorded in accumulated other comprehensive income within operating expenses during 2016. Additionally, in 2016 the Company recognized $4.2 million in foreign currency translation losses within Other (Expense) Income due to the substantial liquidation of our Austin Taylor subsidiary in the U.K. |
Summary Of Significant Accoun23
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Description Of Business | Description of business: Communications Systems, Inc. (herein collectively called “CSI,” “our” or the “Company”) is a Minnesota corporation organized in 1969 that operates directly and through its subsidiaries located in the United States and the United Kingdom. CSI is principally engaged through its Suttle business unit in the manufacture and sale of connectivity infrastructure products for broadband and voice communications and through its Transition Networks business unit in the manufacture and sale of core media conversion products, Ethernet switches, and other connectivity and data transmission products . Through its JDL Technologies business unit the Company provides technology solutions including virtualization, managed services, wired and wireless network design and implementation , HIPAA-compliant IT services, and converged infrastructure configuration and deployment . Through its Net2Edge business unit, the Company enables telecommunications carriers to connect legacy networks to high-speed networks and services. The Company classifies its businesses into four segments that correspond to these four business units . Non-allocated general and administrative expenses are separately accounted for as “Other” in the Company’s segment reporting. Intersegment revenues are eliminated upon consolidation. |
Principles Of Consolidation | Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and accounts have been eliminated. |
Use Of Estimates | Use of estimates: The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company uses estimates based on the best information available in recording transactions and balances resulting from operations . Actual results could differ from those estimates. The Company’s estimates consist principally of reserves for doubtful accounts, sales returns, warranty costs, asset impairment evaluations, accruals for compensation plans, self-insured medical and dental accruals, lower of cost or market inventory adjustments, provisions for income taxes and deferred taxes and depreciable lives of fixed assets. |
Cash Equivalents | Cash equivalents: For purposes of the consolidated statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. As of December 31, 2017 , the Company had $ 12,454,000 in cash and cash equivalents. Of this amount, $ 6,193,000 was invested in short-term money market funds that are not considered to be bank deposits and are not insured or guaranteed by the federal deposit insurance company (FDIC) or other government agency. These money market funds seek to preserve the value of the investment at $ 1.00 per share; however, it is possible to lose money investing in these funds. The remainder is operating cash and certificates of deposit which are fully insured through the FDIC. |
Investments | Investments: Investments consist of certificates of deposit , corporate notes and bonds , and commercial paper that are traded on the open market and are classified as available-for-sale at December 31, 2017 . Available-for-sale investments are reported at fair value with unrealized gains and losses excluded from operations and reported as a separate component of stockholders’ equity, net of tax (see Accumulated other comprehensive loss below). |
Inventories | Inventories: Inventories are stated at the lower of cost or net realizable value . Cost is determined by the first-in, first-out method. Provision to reduce inventories to the lower of cost or net realizable value is made based on a review of excess and obsolete inventories, estimates of future sales, examination of historical consumption rates and the related value of component parts. |
Property, Plant And Equipment | Property, plant and equipment: Property, plant and equipment are recorded at cost. Depreciation is computed using the straight-line method. Depreciation included in cost of sales and selling, general and administrative expenses for continuing operations was $ 3,156,000 and $ 3,609,000 for 2017 and 2016 , respectively. Maintenance and repairs are charged to operations and additions or improvements are capitalized. Items of property sold, retired or otherwise disposed of are removed from the asset and accumulated depreciation accounts and any gains or losses on disposal are reflected in operations. |
Intangible Assets | Intangible Assets: Intangible assets with indefinite useful lives are not amortized, but are tested at least annually for impairment. |
Recoverability Of Long-Lived Assets | Recoverability of long-lived assets: The Company reviews its long-lived assets periodically when impairment indicators exist as required under generally accepted accounting principles. Potential impairment is determined by comparing the carrying value of the assets with expected net cash flows expected to be provided by operating activities of the business or related products . If the sum of the expected future net cash flows is less than the carrying value, an impairment loss would be measured by comparing the amount by which the carrying value exceeds the fair value of the asset. |
Warranty | Warranty: The Company reserves for the estimated cost of product warranties at the time revenue is recognized . We estimate the costs of our warranty obligations based on our warranty policy or applicable contractual warranty, historical experience of known product failure rates, and use of materials and service delivery costs incurred in correcting product failures. Management reviews the estimated warranty liability on a quarterly basis to determine its adequacy. The following table presents the changes in the Company’s warranty liability for the years ended December 31, 2017 and 2016 , which relate to normal product warranties and a five -year obligation to provide for potential future liabilities for certain network equipment sales: Year Ended December 31 2017 2016 Beginning balance $ 600,000 $ 554,000 Amounts charged to expense 93,000 147,000 Actual warranty costs paid (90,000) (101,000) Ending balance $ 603,000 $ 600,000 |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss: The components of accumulated other comprehensive loss are as follows: Foreign Currency Translation Unrealized (loss)/gain on securities Accumulated Other Comprehensive Loss December 31, 2016 $ (704,000) $ 17,000 $ (687,000) Net current period change 79,000 (5,000) 74,000 December 31, 2017 $ (625,000) $ 12,000 $ (613,000) The Company recognized $4,238,000 in foreign currency translation losses within the income statement during the first quarter of 2016 due to the substantial liquidation of our Austin Taylor subsidiary in the U.K. Refer to Note 7 for further information regarding the pension liability adjustment recognized in income in the first quarter of 2016. The functional currency of Austin Taylor and Net2Edge is the British pound. Assets and liabilities denominated in this foreign currency were translated into U.S. dollars at year-end exchange rates. Revenue and expense transactions were translated using average exchange rates. Suttle Costa Rica use d the U.S. dollar as their functional currency. |
Revenue Recognition | Revenue recognition : The Company’s manufacturing operations (Suttle, Transition Networks and Net2Edge) recognize revenue when the earnings process is complete, evidenced by persuasive evidence of an agreement, delivery has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured . Revenue is recognized for domestic and international sales at the shipping point or delivery to customers, based on the related shipping terms. Risk of loss transfers at the point of shipment or delivery to customers, and the Company has no further obligation after such time. Sales are made directly to customers and through distributors. Payment terms for distributors are consistent with the terms of the Company’s direct customers. The Company records a provision for sales returns, sales incentives and warranty costs at the time of the sale based on historical experience and current trends. JDL generally records revenue on hardware, software and related equipment sales and installation contracts when the revenue recognition criteria are met and products are installed and accepted by the customer . JDL records revenue on service contracts on a straight-line basis over the contract period, unless evidence suggests the revenue is earned in a different pattern. Each contract is individually reviewed to determine when the earnings process is complete. |
Research And Development | Research and development: Research and development costs consist of outside testing services, equipment and supplies associated with enhancing existing products and developing new products . Research and development costs are expensed when incurred and totaled $ 3,639,000 in 2017 and $ 5,366,000 in 2016 . |
Net Income Per Share | Net income per share: Basic net income per common share is based on the weighted average number of common shares outstanding during each year. Diluted net income per common share adjusts for the dilutive effect of potential common shares outstanding. The Company’s only potential common shares outstanding are stock options and shares associated with the long-term incentive compensation plans, which resulted in no dilutive effect for 2017 and 2016 . The Company calculates the dilutive effect of outstanding options and unvested shares using the treasury stock method. Due to the net loss in 2017 and 2016 , there was no dilutive impact from outstanding stock options or unvested shares. Options totaling 1,144,159 would have been excluded from the calculation of diluted earnings per share for year ended December 31, 2017 , because the exercise price was greater than the average market price of common stock during the year and deferred stock awards totaling 181,224 shares would not have been included because of unmet performance conditions. Options totaling 902,930 would have been excluded from the calculation of diluted earnings per share for year ended December 31, 2016 , because the exercise price was greater than the average market price of common stock during the year and deferred stock awards totaling 133,982 shares would not have been included because of unmet performance conditions. |
Share Based Compensation | Share based compensation: The Company accounts for share based compensation awards on a fair value basis. The estimated grant date fair value of each stock-based award is recognized in income over the requisite service period (generally the vesting period). The estimated fair value of each option is calculated using the Black-Scholes option-pricing model. |
Accounting Standards Issued | Accounting standards issued: In May 2014, the Financial Accounting Standards Board (FASB) issued a new accounting standard update on revenue recognition from contracts with customers. The new guidance will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. Under the new guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for th e se goods or services. Due to the FASB’s July 2015 deferral of the standard’s required implementation date, the guidance is effective for interim and annual reporting periods beginning after December 15, 2017. The Company will adopt the accounting standard using the modified retrospective transition approach. The modified retrospective transition approach will recognize any changes from the beginning of the year of initial application (2018) through retained earnings with no restatement of comparative periods. The Company established an implementation team and engaged a third-party consultant to assist with our assessment of the impact of the new revenue guidance on our operations, consolidated financial statements and related disclosures and our implementation of the new standard. The Company completed an implementation plan that included (i) analyzing the new standard’s impact on the Company's contract portfolio; (ii) surveying the Company's businesses and various revenue streams; (iii) completing contract reviews; (iv) comparing its historical accounting policies and practices to the requirements of the new guidance; (v) identifying potential differences from applying the requirements of the new guidance to its contracts; and (vi) updating its accounting policy. The Company has completed the process of evaluating controls and new disclosure requirements and identifying and implementing appropriate changes to its business processes and systems to support recognition and disclosure under the new guidance. Based on the Company’s analysis of open contracts as of the adoption date, there are no material impacts on the timing or amount of revenue recognized for product sales, which are primarily included within the Company’s Suttle and Transition Networks business units, because these contracts include only point-in-time performance obligations which are fully satisfied within the same reporting period, consistent with current revenue recognition. To the extent that future contracts include multiple performance obligations that are not fully satisfied and one or more were not priced at its standalone selling price (“SSP”), the Company will be required to perform an allocation of the transaction price which may result in a difference in the amount of revenue recognized in any period. There will also be no material change in the timing and amount of revenue recognized for service-related performance obligations that are satisfied over time within the Company’s JDL Technologies business unit. The Company also determined that the nature of its promise to its customers in certain contracts within its JDL Technologies business unit is to arrange for a third party to provide underlying goods or services (i.e., the Company is the agent in the transaction). Revenue allocated to these performance obligations will be recognized on a net basis, however, no such contracts were open as of the adoption date. The Company adopted various practical expedients and policy elections related to the accounting for significant finance components, sales taxes, shipping and handling, costs to obtain a contract and immaterial promised goods or services, which will mitigate certain impacts of adopting this new standard. The new standard requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts, specifically related to disaggregated revenue, contract balances and performance obligations. Additionally, as part of the Company’s implementation of the new standard , the Company implemented new internal controls to address risks associated with applying the five-step model, specifically related to judgments made in connection to performance obligations, estimated standalone selling prices and estimating variable consideration. The Company has also established monitoring controls to identify new sales arrangements and changes in its business environment that could potentially impact its current accounting assessment. In February 2016, the FASB issued new accounting requirements regarding accounting for leases, which requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within that reporting period, and early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. In August 2016, the FASB issued new accounting guidance regarding the classification of cash receipts and payments in the Statement of Cash Flows . This guidance is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the Consolidated Statement of Cash Flows by providing guidance on eight specific cash flow issues . The new standard is effective retrospectively on January 1, 2018, with early adoption permitted. |
Accounting Standards Adopted | Accounting standards adopted: In July 2015, the FASB issued an accounting standard on inventory, which simplifies the subsequent measurement of inventory by requiring entities to measure inventory at the lower of cost or net realizable value, except for inventory measured using the last-in, first-out (LIFO) or the retail inventory methods. This standard requires entities to compare the cost of inventory to one measure – net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The standard is effective for the annual period beginning after December 15, 2016 and interim periods within those annual periods, with early adoption permitted, and is to be applied prospectively. The Company adopted this standard in the first quarter of 2017 with no material impact on its consolidated financial statements. In November 2015, the FASB issued an accounting standard on deferred taxes, which removes the requirement to present deferred tax assets and liabilities as current and noncurrent on the balance sheet based on the classification of the related asset or liability, and instead requires classification of all deferred tax assets and liabilities as noncurrent. This guidance will be effective for interim and annual reporting periods beginning after December 15, 2016, and early adoption is permitted. The Company adopted this guidance in the first quarter of 2017 and other than the prescribed classification of all deferred tax assets and liabilities as noncurrent, there was no material impact on its consolidated financial statements. In March 2016, the FASB issued a new accounting standard that changed certain aspects of accounting for share-based payments to employees, including the accounting for income taxes, forfeitures and statutory withholding requirements, as well as classification in the statement of cash flows. The new standard is effective for annual and interim periods beginning after December 15, 2016. The Company adopted this standard during the first quarter of 2017 with no material impact on our financial condition or results of operations. In January 2017, the FASB issued new accounting guidance regarding the simplification of the test for goodwill impairment. The new standard eliminates the quantitative goodwill impairment analysis requirement to determine the fair value of individual assets and liabilities of a reporting unit to determine the amount of any goodwill impairment and instead permits an entity to recognize goodwill impairment loss as the excess of a reporting unit’s carrying value over the estimated fair value of the reporting unit, to the extent this amount does not exceed the carrying amount of goodwill. The new guidance continues to allow an entity to perform a qualitative assessment over goodwill impairment indicators in lieu of a quantitative assessment in certain situations. The standard will be effective for annual and interim periods beginning January 1, 2020, with early adoption permitted. The Company adopted this standard during 2017. As noted below in Note 5, the Company analyzed the reporting unit that had the goodwill and also analyzed the Company as a whole, including the Company’s four separate reporting units. Based on this analysis, the Company determined that the book value exceeded the overall fair value of the reporting units and the Company’s overall market value. As a result, the Company recorded a goodwill impairment charge totaling $1,463,000 during the second quarter of 2017. |
Summary Of Significant Accoun24
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Schedule Of Warranty | Year Ended December 31 2017 2016 Beginning balance $ 600,000 $ 554,000 Amounts charged to expense 93,000 147,000 Actual warranty costs paid (90,000) (101,000) Ending balance $ 603,000 $ 600,000 |
Components Of Accumulated Other Comprehensive Loss | Foreign Currency Translation Unrealized (loss)/gain on securities Accumulated Other Comprehensive Loss December 31, 2016 $ (704,000) $ 17,000 $ (687,000) Net current period change 79,000 (5,000) 74,000 December 31, 2017 $ (625,000) $ 12,000 $ (613,000) |
Cash Equivalents And Investme25
Cash Equivalents And Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash Equivalents And Investments [Abstract] | |
Schedule Of Cash Equivalents And Available-For-Sale Securities | December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds $ 6,193,000 $ - $ - $ 6,193,000 $ 6,193,000 $ - $ - Subtotal 6,193,000 - - 6,193,000 6,193,000 - - Investments: Commercial Paper 997,000 - - 997,000 - 997,000 - Corporate Notes/Bonds 4,545,000 - (1,000) 4,544,000 - 4,544,000 - Subtotal 5,542,000 - (1,000) 5,541,000 - 5,541,000 - Total $ 11,735,000 $ - $ (1,000) $ 11,734,000 $ 6,193,000 $ 5,541,000 $ - December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Short-Term Investments Long-Term Investments Cash equivalents: Money Market funds $ 3,851,000 $ - $ - $ 3,851,000 $ 3,851,000 $ - $ - Subtotal 3,851,000 - - 3,851,000 3,851,000 - - Investments: Certificates of deposit 4,291,000 4,000 (1,000) 4,294,000 - 4,294,000 - Corporate Notes/Bonds 1,511,000 - - 1,511,000 - 1,511,000 - Subtotal 5,802,000 4,000 (1,000) 5,805,000 - 5,805,000 - Total $ 9,653,000 $ 4,000 $ (1,000) $ 9,656,000 $ 3,851,000 $ 5,805,000 $ - |
Schedule Of Estimated Fair Value Of Available-For-Sale Securities | Amortized Cost Estimated Market Value Due within one year $ 5,542,000 $ 5,541,000 Due after one year through five years 0 0 $ 5,542,000 $ 5,541,000 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Schedule Of Inventories | December 31 2017 2016 Finished goods $ 8,056,000 $ 12,083,000 Raw and processed materials 5,928,000 10,122,000 $ 13,984,000 $ 22,205,000 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant And Equipment [Abstract] | |
Schedule Of Property, Plant And Equipment | Estimated December 31 useful life 2017 2016 Land $ 2,951,000 $ 2,951,000 Buildings and improvements 3 -40 years 8,867,000 9,112,000 Machinery and equipment 3 -15 years 26,597,000 31,394,000 Furniture and fixtures 3 -10 years 4,174,000 4,811,000 Construction in progress 396,000 259,000 42,985,000 48,527,000 Less accumulated depreciation (30,360,000) (32,807,000) $ 12,625,000 $ 15,720,000 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets [Abstract] | |
Schedule Of Changes In Carrying Amount Of Goodwill | JDL Technologies January 1, 2017 $ 1,463,000 Impairment loss (1,463,000) December 31, 2017 $ - Gross goodwill 1,463,000 Accumulated impairment loss (1,463,000) Balance at December 31, 2017 $ - |
Schedule Of Finite-Lived Intangible Assets | December 31, 2017 Gross Carrying Amount Accumulated Amortization Impairment Loss Foreign Currency Translation Net Trademarks $ 98,000 $ (66,000) $ - $ (15,000) $ 17,000 Customer relationships 491,000 (230,000) (154,000) (107,000) - Technology 229,000 (189,000) - (40,000) - $ 818,000 $ (485,000) $ (154,000) $ (162,000) $ 17,000 December 31, 2016 Gross Carrying Amount Accumulated Amortization Impairment Loss Foreign Currency Translation Net Trademarks $ 91,000 $ (50,000) $ - $ (20,000) $ 21,000 Customer relationships 491,000 (200,000) - (122,000) 169,000 Technology 229,000 (172,000) - (57,000) - $ 811,000 $ (422,000) $ - $ (199,000) $ 190,000 |
Schedule Of Estimated Future Amortization Expense | Year Ending December 31: 2018 $ 7,000 2019 2,000 2020 2,000 2021 2,000 2022 2,000 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Employee Retirement Benefits [Abstract] | |
Summary Of Components Of Net Periodic (Benefit) Cost | 2016 Service cost $ - Interest cost 26,000 Expected return on assets (24,000) Plan settlement costs (43,000) Amortization of prior service cost - Net periodic pension (benefit) cost $ (41,000) |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Minimum Future Lease Payments | Year Ending December 31: 2018 $ 210,000 2019 112,000 2020 91,000 2021 91,000 2022 91,000 Thereafter 402,000 $ 997,000 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock Compensation [Abstract] | |
Schedule Of Changes In Number Of Outstanding Stock Options Under Director Plan, Stock Plan And 2011 Incentive Plan | Weighted average Weighted average exercise price remaining Options per share contractual term Outstanding – December 31, 2015 721,924 $ 11.70 4.89 years Awarded 325,968 6.66 Exercised - - Forfeited (124,962) 10.39 Outstanding – December 31, 2016 922,930 $ 10.10 4.9 years Awarded 288,186 4.35 Exercised - - Forfeited (38,457) 11.61 Outstanding – December 31, 2017 1,172,659 8.63 4.55 years Exercisable at December 31, 2017 674,186 $ 10.46 3.74 years Expected to vest December 31, 2017 1,172,659 8.63 4.55 years |
Valuation Assumptions Of Stock Option Plan | Year Ended December 31 2017 2016 Expected volatility 30.4% 29.5% Risk free interest rate 2.0% 1.5% Expected holding period 6 years 6 years Dividend yield 3.7% 9.1% |
Summary Of The Status Of Stock Options Outstanding | Weighted Average Weighted Remaining Average Range of Exercise Prices Shares Option Life Exercise Price $3.72 to $5.24 288,186 6.3 years $ 4.35 $5.25 to $7.49 289,200 5.3 years 6.61 $7.50 to $9.74 18,000 1.4 years 9.73 $9.75 to $11.99 439,833 3.6 years 11.34 $12.00 to $14.15 137,440 2.7 years 13.08 |
Schedule Of Changes In The Number Of Deferred Stock Shares Under The Stock Plan And Incentive Plan | Weighted Average Grant Date Shares Fair Value Outstanding – December 31, 2015 126,427 $ 11.73 Granted 102,161 7.28 Vested (23,095) 11.36 Forfeited (56,233) 9.60 Outstanding – December 31, 2016 149,260 9.55 Granted 100,239 4.42 Vested (14,130) 10.61 Forfeited (44,845) 10.28 Outstanding – December 31, 2017 190,524 6.60 |
Schedule Of Changes In Restricted Stock Units Outstanding | Weighted Average Grant Date Shares Fair Value Outstanding – December 31, 2015 32,816 $ 11.41 Granted 13,793 6.33 Vested (19,023) 10.90 Forfeited (452) 11.05 Outstanding – December 31, 2016 27,134 8.65 Vested (13,341) 11.05 Outstanding – December 31, 2017 13,793 6.33 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Tax (Benefit) Expense By Jurisdiction | Year Ended December 31 2017 2016 Current year income taxes: Federal $ (36,000) $ 27,000 State 56,000 (20,000) Foreign 36,000 258,000 56,000 265,000 Deferred income taxes (benefit): Federal $ (86,000) $ 48,000 State (5,000) 5,000 Foreign - (61,000) (91,000) (8,000) $ (35,000) $ 257,000 |
Reconciliation Of Effective Tax Rate, By Percentage | Year Ended December 31 2017 2016 Tax at U.S. statutory rate 35.0% 35.0% Surtax exemption (0.2) (0.6) State income taxes, net of federal benefit 0.5 0.2 Foreign income taxes, net of foreign tax credits (12.8) (7.2) Other nondeductible items (1.0) (0.9) Effect of increase in uncertain tax positions 1.5 0.0 Change in valuation allowance 3.1 (30.1) Change in federal deferred tax rate (25.7) - Other (0.1) 0.3 Effective tax rate 0.3% -3.3% |
Schedule Of Deferred Tax Assets And Liabilities | 2017 2016 Deferred tax assets: Allowance for doubtful accounts $ 22,000 $ 26,000 Inventory 1,836,000 2,381,000 Accrued and prepaid expenses 245,000 449,000 Domestic net operating loss carry-forward 2,240,000 2,784,000 Long-term compensation plans 238,000 344,000 Nonemployee director stock compensation 454,000 663,000 Other stock compensation 106,000 210,000 Intangible assets 292,000 - Foreign net operating loss carry-forwards and credits 3,063,000 2,129,000 Federal and state credits 857,000 926,000 Other 16,000 38,000 Gross deferred tax assets 9,369,000 9,950,000 Valuation allowance (8,713,000) (8,117,000) Net deferred tax assets 656,000 1,833,000 Deferred tax liabilities Depreciation (618,000) (1,817,000) Intangible assets - (69,000) Net deferred tax liability (618,000) (1,886,000) Total net deferred tax asset (liability) $ 38,000 $ (53,000) |
Schedule Of Unrecognized Tax Benefits | 2017 2016 Uncertain tax positions – January 1 $ 207,000 $ 217,000 Settlements (101,000) 0 Expiration of statute of limitations (65,000) (10,000) Uncertain tax positions – December 31, 2017 $ 41,000 $ 207,000 |
Information Concerning Indust33
Information Concerning Industry Segments And Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Information Concerning Industry Segments And Major Customers [Abstract] | |
Schedule Of Segment Information | Transition JDL Intersegment Suttle Networks Technologies Net2Edge Other Eliminations Total 2017 Sales $ 32,384,000 $ 38,541,000 $ 11,210,000 $ 1,079,000 $ - $ (891,000) $ 82,323,000 Cost of sales 30,964,000 21,779,000 8,437,000 398,000 - (91,000) 61,487,000 Gross profit 1,420,000 16,762,000 2,773,000 681,000 - (800,000) 20,836,000 Selling, general and administrative expenses 8,900,000 15,371,000 2,101,000 3,127,000 - (800,000) 28,699,000 Impairment loss - - 1,463,000 154,000 1,617,000 Restructuring expense 2,285,000 - - - - - 2,285,000 Operating (loss) income $ (9,765,000) $ 1,391,000 $ (791,000) $ (2,600,000) $ - $ - $ (11,765,000) Depreciation and amortization $ 2,155,000 $ 705,000 $ 269,000 $ 57,000 $ - $ - $ 3,186,000 Capital expenditures $ 397,000 $ 232,000 $ 8,000 $ 69,000 $ 67,000 $ - $ 773,000 Assets $ 18,359,000 $ 12,543,000 $ 1,073,000 $ 1,229,000 $ 24,969,000 $ (27,000) $ 58,146,000 Transition JDL Intersegment Suttle Networks Technologies Net2Edge Other Eliminations Total 2016 Sales $ 42,076,000 $ 41,093,000 $ 15,464,000 $ 1,873,000 $ - $ (1,153,000) $ 99,353,000 Cost of sales 38,193,000 23,607,000 10,245,000 904,000 - (177,000) 72,772,000 Gross profit 3,883,000 17,486,000 5,219,000 969,000 - (976,000) 26,581,000 Selling, general and administrative expenses 12,525,000 17,180,000 3,296,000 3,141,000 - (956,000) 35,186,000 Pension liability adjustments - - - - (4,148,000) - (4,148,000) Operating income (loss) $ (8,642,000) $ 306,000 $ 1,923,000 $ (2,172,000) $ 4,148,000 $ (20,000) $ (4,457,000) Depreciation and amortization $ 2,461,000 $ 852,000 $ 267,000 $ 103,000 $ - $ - $ 3,683,000 Capital expenditures $ 1,625,000 $ 188,000 $ 232,000 $ 18,000 $ 244,000 $ (20,000) $ 2,287,000 Assets $ 33,555,000 $ 17,518,000 $ 4,767,000 $ 1,464,000 $ 15,900,000 $ (27,000) $ 73,177,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Schedule Of Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis | December 31, 2017 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market funds $ 6,193,000 $ - $ - $ 6,193,000 Subtotal 6,193,000 - - 6,193,000 Short-term investments: Commercial Paper - 997,000 - 997,000 Corporate Notes/Bonds - 4,544,000 - 4,544,000 Subtotal - 5,541,000 - 5,541,000 Total $ 6,193,000 $ 5,541,000 $ - $ 11,734,000 December 31, 2016 Level 1 Level 2 Level 3 Total Fair Value Cash equivalents: Money Market funds $ 3,851,000 $ - $ - $ 3,851,000 Subtotal 3,851,000 - - 3,851,000 Short-term investments: Certificates of deposit - 4,294,000 - 4,294,000 Corporate Notes/Bonds - 1,511,000 - 1,511,000 Subtotal - 5,805,000 - 5,805,000 Total $ 3,851,000 $ 5,805,000 $ - $ 9,656,000 |
Quarterly Operating Results (Ta
Quarterly Operating Results (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Operating Results [Abstract] | |
Schedule Of Quarterly Operating Results | Quarter Ended March 31 June 30 Sep 30 Dec 31 2017 Sales $ 20,800 $ 22,068 $ 20,412 $ 19,043 Operating loss (1,460) (4,067) (4,654) (1,584) Net loss (1,516) (4,091) (4,522) (1,697) Basic net loss per share $ (0.17) $ (0.46) $ (0.50) $ (0.19) Diluted net loss per share $ (0.17) $ (0.46) $ (0.50) $ (0.19) 2016 Sales $ 24,666 $ 26,311 $ 25,617 $ 22,759 Operating income (loss) 1 1,280 (2,671) (1,175) (1,891) Net loss (2,467) (2,544) (1,264) (1,839) Basic net (loss) income per share $ (0.28) $ (0.29) $ (0.14) $ (0.21) Diluted net (loss) income per share $ (0.28) $ (0.29) $ (0.14) $ (0.21) 1 As part of the settlement of our pension plan, the Company recorded $4.1 million in pension liability gains previously recorded in accumulated other comprehensive income within operating expenses during 2016. Additionally, in 2016 the Company recognized $4.2 million in foreign currency translation losses within Other (Expense) Income due to the substantial liquidation of our Austin Taylor subsidiary in the U.K. |
Summary Of Significant Accoun36
Summary Of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($)segment$ / sharesshares | Dec. 31, 2016USD ($)shares | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of segments | segment | 4 | ||
Money market funds | $ 6,193,000 | ||
Value of the investment in short-term money market funds sought to be preserved (in dollars per share) | $ / shares | $ 1 | ||
Depreciation | $ 3,156,000 | $ 3,609,000 | |
Product warranty period | 5 years | ||
Foreign currency translation loss | 4,238,497 | ||
Research and development costs | $ 3,639,000 | 5,366,000 | |
Dilutive effect | 0 | $ 0 | |
Impairment charge | $ 1,463,000 | $ 1,617,389 | |
Employee Stock Option [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Shares not included in the computation of diluted earnings per share | shares | 1,144,159 | 902,930 | |
Deferred Stock Awards [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Shares not included in the computation of diluted earnings per share | shares | 181,224 | 133,982 |
Summary Of Significant Accoun37
Summary Of Significant Accounting Policies (Schedule Of Warranty) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | ||
Beginning balance | $ 600 | $ 554 |
Amounts charged to expense | 93 | 147 |
Actual warranty costs paid | (90) | (101) |
Ending balance | $ 603 | $ 600 |
Summary Of Significant Accoun38
Summary Of Significant Accounting Policies (Components Of Accumulated Other Comprehensive Loss) (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
BALANCE | $ 61,632,692 |
BALANCE | 49,170,727 |
Foreign Currency Translation [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
BALANCE | (704,000) |
Net current period change | 79,000 |
BALANCE | (625,000) |
Unrealized (Loss)/Gain On Securities [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
BALANCE | 17,000 |
Net current period change | (5,000) |
BALANCE | 12,000 |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
BALANCE | (686,661) |
Net current period change | 74,000 |
BALANCE | $ (613,379) |
Cash Equivalents And Investme39
Cash Equivalents And Investments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Equivalents And Investments [Abstract] | ||
Gross realized gains (losses) | $ 0 | $ 0 |
Cash Equivalents And Investme40
Cash Equivalents And Investments (Schedule Of Cash Equivalents And Available-For-Sale Securities) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 11,735,000 | $ 9,653,000 |
Gross Unrealized Gains | 4,000 | |
Gross Unrealized Losses | (1,000) | (1,000) |
Fair Value | 11,734,000 | 9,656,000 |
Cash Equivalents | 6,193,000 | 3,851,000 |
Short-Term Investments | 5,540,744 | 5,805,276 |
Long-Term Investments | ||
Cash Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,193,000 | 3,851,000 |
Fair Value | 6,193,000 | 3,851,000 |
Cash Equivalents | 6,193,000 | 3,851,000 |
Cash Equivalents [Member] | Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,193,000 | 3,851,000 |
Fair Value | 6,193,000 | 3,851,000 |
Cash Equivalents | 6,193,000 | 3,851,000 |
Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,542,000 | 5,802,000 |
Gross Unrealized Gains | 4,000 | |
Gross Unrealized Losses | (1,000) | (1,000) |
Fair Value | 5,541,000 | 5,805,000 |
Short-Term Investments | 5,541,000 | 5,805,000 |
Investments [Member] | Certificates Of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,291,000 | |
Gross Unrealized Gains | 4,000 | |
Gross Unrealized Losses | (1,000) | |
Fair Value | 4,294,000 | |
Short-Term Investments | 4,294,000 | |
Investments [Member] | Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 997,000 | |
Fair Value | 997,000 | |
Short-Term Investments | 997,000 | |
Investments [Member] | Corporate Notes/Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,545,000 | 1,511,000 |
Gross Unrealized Losses | (1,000) | |
Fair Value | 4,544,000 | 1,511,000 |
Short-Term Investments | $ 4,544,000 | $ 1,511,000 |
Cash Equivalents And Investme41
Cash Equivalents And Investments (Schedule Of Estimated Fair Value Of Available-For-Sale Securities) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated Market Value | $ 11,734,000 | $ 9,656,000 |
Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Due within one year | 5,542,000 | |
Amortized Cost, Due after one year through five years | 0 | |
Amortized Cost | 5,542,000 | |
Estimated Market Value, Due within one year | 5,541,000 | |
Estimated Market Value, Due after one year through five years | 0 | |
Estimated Market Value | $ 5,541,000 | $ 5,805,000 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventories) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Inventories [Abstract] | ||
Finished goods | $ 8,056,000 | $ 12,083,000 |
Raw and processed materials | 5,928,000 | 10,122,000 |
Inventories | $ 13,984,428 | $ 22,204,902 |
Property, Plant And Equipment43
Property, Plant And Equipment (Schedule Of Property, Plant And Equipment) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 42,985,000 | $ 48,527,000 |
Less accumulated depreciation | (30,360,000) | (32,807,000) |
Property, plant and equipment, net | 12,624,730 | 15,719,403 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 2,951,000 | 2,951,000 |
Buildings And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 8,867,000 | 9,112,000 |
Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 26,597,000 | 31,394,000 |
Furniture And Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 4,174,000 | 4,811,000 |
Construction In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 396,000 | $ 259,000 |
Minimum [Member] | Buildings And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Minimum [Member] | Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Minimum [Member] | Furniture And Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Maximum [Member] | Buildings And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years | |
Maximum [Member] | Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 15 years | |
Maximum [Member] | Furniture And Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years |
Goodwill And Intangible Asset44
Goodwill And Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets [Abstract] | |||
Impairment charge | $ 1,463,000 | $ 1,617,389 | |
Impairment of intangible assets | $ 154,000 | ||
Amortization expense | $ 30,000 | $ 74,000 |
Goodwill And Intangible Asset45
Goodwill And Intangible Assets (Schedule Of Changes In Carrying Amount Of Goodwill - Roll Forward) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||
January 1, 2017 | $ 1,462,503 | |
Impairment loss | $ (1,463,000) | (1,617,389) |
JDL Technologies [Member] | ||
Goodwill [Line Items] | ||
January 1, 2017 | 1,463,000 | |
Impairment loss | (1,463,000) | |
December 31, 2017 |
Goodwill And Intangible Asset46
Goodwill And Intangible Assets (Schedule Of Changes In Carrying Amount Of Goodwill - Impaired, Accumulated Impairment Loss) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | ||
Balance at December 31, 2017 | $ 1,462,503 | |
JDL Technologies [Member] | ||
Goodwill [Line Items] | ||
Gross goodwill | $ 1,463,000 | |
Accumulated impairment loss | (1,463,000) | |
Balance at December 31, 2017 | $ 1,463,000 |
Goodwill And Intangible Asset47
Goodwill And Intangible Assets (Schedule Of Finite-Lived Intangible Assets) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 818,000 | $ 811,000 |
Accumulated Amortization | (485,000) | (422,000) |
Impairment loss | (154,000) | |
Foreign Currency | (162,000) | (199,000) |
Net | 17,000 | 190,000 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 98,000 | 91,000 |
Accumulated Amortization | (66,000) | (50,000) |
Impairment loss | ||
Foreign Currency | (15,000) | (20,000) |
Net | 17,000 | 21,000 |
Customer [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 491,000 | 491,000 |
Accumulated Amortization | (230,000) | (200,000) |
Impairment loss | (154,000) | |
Foreign Currency | (107,000) | (122,000) |
Net | 169,000 | |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 229,000 | 229,000 |
Accumulated Amortization | (189,000) | (172,000) |
Impairment loss | ||
Foreign Currency | (40,000) | (57,000) |
Net |
Goodwill And Intangible Asset48
Goodwill And Intangible Assets (Schedule Of Estimated Future Amortization Expense) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Goodwill And Intangible Assets [Abstract] | |
2,018 | $ 7 |
2,019 | 2 |
2,020 | 2 |
2,021 | 2 |
2,022 | $ 2 |
Employee Retirement Benefits (N
Employee Retirement Benefits (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Contributions to the plan | $ 450,000 | $ 554,000 | |||
Pension liability adjustment gains | $ 4,148,000 | (4,147,836) | |||
Maximum matching percentage by employer | 6.00% | ||||
Austin Taylor Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Contributions to the plan | 68,000 | $ 650,000 | |||
Pension settlement costs | $ 43,000 | $ 1,222,000 | $ 43,000 |
Employee Retirement Benefits (S
Employee Retirement Benefits (Summary Of Components Of Net Periodic (Benefit) Cost) (Details) - Austin Taylor Pension Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | |||
Interest cost | 26 | ||
Expected return on assets | (24) | ||
Plan settement costs | $ (43) | $ (1,222) | (43) |
Amortization of prior service cost | |||
Net periodic pension (benefit) cost | $ (41) |
Commitments And Contingencies51
Commitments And Contingencies (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies [Line Items] | |||
Rent expense | $ 474,000 | $ 620,000 | |
(Income) expense for long-term compensation plan | (5,000) | 16,000 | |
Accrual for long-term compensation plans | 11,000 | 16,000 | |
Performance Units [Member] | |||
Commitments and Contingencies [Line Items] | |||
Award payouts, cash | $ 0 | 0 | |
Mortgage [Member] | |||
Commitments and Contingencies [Line Items] | |||
Interest rate | 6.83% | ||
Payment to settle mortgage | $ 104,000 | ||
Line of Credit [Member] | |||
Commitments and Contingencies [Line Items] | |||
Line of credit, amount outstanding | $ 0 | $ 0 | |
Line of credit, maximum borrowing capacity | 15,000,000 | ||
Line of credit, remaining borrowing capacity | $ 10,080,000 | ||
Line of credit, basis spread on variable rate | 2.00% | ||
Line of credit facility, interest rate at period end | 3.60% | ||
Line of credit, expiration date | Aug. 12, 2021 | ||
Long-Term Compensation Plan [Member] | |||
Commitments and Contingencies [Line Items] | |||
Award payouts, stock | 0 | 0 | |
Long-Term Compensation Plan [Member] | 2015 to 2017 [Member] | Performance Units [Member] | |||
Commitments and Contingencies [Line Items] | |||
Percentage paid out in stock | 100.00% | ||
Long-Term Compensation Plan [Member] | 2016 to 2018 and 2017 to 2019 [Member] | Performance Units [Member] | |||
Commitments and Contingencies [Line Items] | |||
Percentage paid out in stock | 50.00% | ||
Percentage paid out in cash | 50.00% | ||
Maximum [Member] | |||
Commitments and Contingencies [Line Items] | |||
Operating lease terms | 5 years | ||
Minimum [Member] | |||
Commitments and Contingencies [Line Items] | |||
Operating lease terms | 1 year | ||
Minimum [Member] | Line of Credit [Member] | |||
Commitments and Contingencies [Line Items] | |||
Line of credit, covenant, liquidity requirement | $ 10,000,000 |
Commitments And Contingencies52
Commitments And Contingencies (Minimum Future Lease Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies [Abstract] | |
2,018 | $ 210 |
2,019 | 112 |
2,020 | 91 |
2,021 | 91 |
2,022 | 91 |
Thereafter | 402 |
Total minimum future lease payments | $ 997 |
Stock Compensation (Narrative)
Stock Compensation (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | 84 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | May 19, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options outstanding | 1,172,659 | 922,930 | 1,172,659 | 721,924 | ||
Unrecognized compensation expense related to stock options | $ 190,000 | $ 190,000 | ||||
Aggregate intrinsic value of options outstanding | 0 | $ 0 | ||||
Intrinsic value of all options exercised | 0 | $ 0 | ||||
Net cash proceeds from exercise of stock options | 0 | 0 | ||||
Share based compensation expense before income taxes | 417,000 | 632,000 | ||||
Share based compensation expense after income taxes | 271,000 | 411,000 | ||||
Excess tax benefits from exercise of stock options | $ 0 | $ 0 | ||||
Shares of ESOP allocated to accounts of eligible employees | 696,688 | 696,688 | ||||
2011 Executive Incentive Compensation Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of awards authorized | 2,000,000 | |||||
Number of options granted | 288,186 | |||||
Award expiration period | 7 years | |||||
Shares issued under Plan | 165,054 | 165,054 | ||||
Number of options outstanding | 1,315,294 | 1,315,294 | ||||
Awards eligible for grant | 519,652 | 519,652 | ||||
2011 Executive Incentive Compensation Plan [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage | 25.00% | |||||
1992 Stock Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 0 | |||||
Awards eligible for grant | 10,230 | 10,230 | ||||
ESOP [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 6 years | |||||
Initial award vesting period | 2 years | |||||
Requisite service period | 1 year | |||||
ESOP [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage | 20.00% | |||||
2017 ESOP [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
ESOP contributions | $ 425,890 | |||||
Issuance of common stock to Employee Stock Ownership Plan, Shares | 119,632 | |||||
2016 ESOP [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
ESOP contributions | $ 218,758 | |||||
Issuance of common stock to Employee Stock Ownership Plan, Shares | 47,248 | |||||
Non-Employee Directors [Member] | Stock Option Plan For Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 0 | |||||
Award expiration period | 10 years | |||||
Number of options outstanding | 51,000 | 51,000 | ||||
Number of shares automatically granted to each non-employee director | 3,000 | |||||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Recognition period for unrecognized compensation expense | 2 years 3 months 18 days | |||||
Performance Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense for awards | $ 22,000 | $ 22,000 | ||||
Recognition period for unrecognized compensation expense | 1 year 1 month 6 days | |||||
Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of price of common stock at which employees are able to acquire | 85.00% | |||||
Awards eligible for grant | 53,205 | 53,205 | ||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation expense for awards | $ 0 | $ 0 | ||||
2017 to 2019 [Member] | Performance Units [Member] | Key Employees [Member] | 2011 Executive Incentive Compensation Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Deferred stock awards granted | 90,789 |
Stock Compensation (Schedule Of
Stock Compensation (Schedule Of Changes In Number Of Outstanding Stock Options Under Director Plan, Stock Plan And 2011 Incentive Plan) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Compensation [Abstract] | |||
Options, Outstanding | 922,930 | 721,924 | |
Options, Awarded | 288,186 | 325,968 | |
Options, Forfeited | (38,457) | (124,962) | |
Options, Outstanding | 1,172,659 | 922,930 | 721,924 |
Options, Exercisable | 674,186 | ||
Options, Expected to vest | 1,172,659 | ||
Weighted average exercise price per share, Outstanding | $ 10.10 | $ 11.70 | |
Weighted average exercise price per share, Awarded | 4.35 | 6.66 | |
Weighted average exercise price per share, Forfeited | 11.61 | 10.39 | |
Weighted average exercise price per share, Outstanding | 8.63 | $ 10.10 | $ 11.70 |
Weighted average exercise price per share, Exercisable | 10.46 | ||
Weighted average exercise price per share, Expected to vest | $ 8.63 | ||
Options, Outstanding - Weighted average remaining contractual term (in years) | 4 years 6 months 18 days | 4 years 10 months 24 days | 4 years 10 months 21 days |
Options, Exercisable - Weighted average remaining contractual term (in years) | 3 years 8 months 27 days | ||
Options, Expected to vest - Weighted average remaining contractual term (in years) | 4 years 6 months 18 days |
Stock Compensation (Valuation A
Stock Compensation (Valuation Assumptions Of Stock Option Plan) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Compensation [Abstract] | ||
Expected volatility | 30.40% | 29.50% |
Risk free interest rate | 2.00% | 1.50% |
Expected holding period | 6 years | 6 years |
Dividend yield | 3.70% | 9.10% |
Stock Compensation (Summary Of
Stock Compensation (Summary Of The Status Of Stock Options Outstanding) (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
$3.72 to $5.24 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | $ 3.72 |
Range of Exercise Prices, upper limit | $ 5.24 |
Shares | shares | 288,186 |
Weighted Average Remaining Option Life | 6 years 3 months 18 days |
Weighted Average Exercise Price | $ 4.35 |
$5.25 to $7.49 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 5.25 |
Range of Exercise Prices, upper limit | $ 7.49 |
Shares | shares | 289,200 |
Weighted Average Remaining Option Life | 5 years 3 months 18 days |
Weighted Average Exercise Price | $ 6.61 |
$7.50 to $9.74 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 7.50 |
Range of Exercise Prices, upper limit | $ 9.74 |
Shares | shares | 18,000 |
Weighted Average Remaining Option Life | 1 year 4 months 24 days |
Weighted Average Exercise Price | $ 9.73 |
$9.75 to $11.99 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 9.75 |
Range of Exercise Prices, upper limit | $ 11.99 |
Shares | shares | 439,833 |
Weighted Average Remaining Option Life | 3 years 7 months 6 days |
Weighted Average Exercise Price | $ 11.34 |
$12.00 to $14.15 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 12 |
Range of Exercise Prices, upper limit | $ 14.15 |
Shares | shares | 137,440 |
Weighted Average Remaining Option Life | 2 years 8 months 12 days |
Weighted Average Exercise Price | $ 13.08 |
Stock Compensation (Schedule 57
Stock Compensation (Schedule Of Changes In The Number Of Deferred Stock Shares Under The Stock Plan And Incentive Plan) (Details) - Performance Units [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Outstanding | 149,260 | 126,427 |
Shares, Granted | 100,239 | 102,161 |
Shares, Vested | (14,130) | (23,095) |
Shares, Forfeited | (44,845) | (56,233) |
Shares, Outstanding | 190,524 | 149,260 |
Weighted Average Grant Date Fair Value, Outstanding | $ 9.55 | $ 11.73 |
Weighted Average Grant Date Fair Value, Granted | 4.42 | 7.28 |
Weighted Average Grant Date Fair Value, Vested | 10.61 | 11.36 |
Weighted Average Grant Date Fair Value, Forfeited | 10.28 | 9.60 |
Weighted Average Grant Date Fair Value, Outstanding | $ 6.60 | $ 9.55 |
Stock Compensation (Schedule 58
Stock Compensation (Schedule Of Changes In Restricted Stock Units Outstanding) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Outstanding | 27,134 | 32,816 |
Shares, Granted | 13,793 | |
Shares, Vested | (13,341) | (19,023) |
Shares, Forfeited | (452) | |
Shares, Outstanding | 13,793 | 27,134 |
Weighted Average Grant Date Fair Value, Outstanding | $ 8.65 | $ 11.41 |
Weighted Average Grant Date Fair Value, Granted | 6.33 | |
Weighted Average Grant Date Fair Value, Vested | 11.05 | 10.90 |
Weighted Average Grant Date Fair Value, Forfeited | 11.05 | |
Weighted Average Grant Date Fair Value, Outstanding | $ 6.33 | $ 8.65 |
Common Stock (Narrative) (Detai
Common Stock (Narrative) (Details) - $ / shares | Dec. 31, 2017 | Dec. 23, 2009 |
Common Stock [Abstract] | ||
Remaining number of shares authorized to be repurchased | 411,910 | |
Number of rights distributed for each share of common stock | 1 | |
Number of securities into which each right may be converted | 0.01 | |
Exercise price of right | $ 41 | |
Percentage of common stock required to be purchased for rights to become exercisable | 16.50% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2005 | |
Income Taxes [Line Items] | |||||
Dividends declared not paid | $ 397,151 | $ 412,542 | |||
Uncertain tax benefit positions that would reduce the effective income tax rate if recognized | $ 44,000 | ||||
Effective tax rate | 0.30% | (3.30%) | |||
Federal tax rate | 35.00% | 35.00% | |||
Increase (decrease) in deferred tax assets | $ (3,047,000) | ||||
Increase (decrease) in the valuation allowance for deferred tax assets | $ (3,047,000) | ||||
Foreign income taxes, net of foreign tax credits | (12.80%) | (7.20%) | |||
Uncertain tax positions | $ 41,000 | $ 207,000 | $ 217,000 | ||
Dividend-received deduction | 85.00% | ||||
Cumulative loss, period used to evaluate negative objective evidence | 3 years | ||||
Valuation allowance | $ 8,713,000 | ||||
Expiration of statute of limitations | 65,000 | 10,000 | |||
Accrual for interest and penalties | 4,000 | ||||
Net increase (decrease) in accrued interest and penalties | (2,000) | ||||
Scenario, Forecast [Member] | |||||
Income Taxes [Line Items] | |||||
Expiration of statute of limitations | $ 13,000 | ||||
Scenario, Plan [Member] | |||||
Income Taxes [Line Items] | |||||
Federal tax rate | 21.00% | ||||
Domestic Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 10,663,000 | ||||
Income tax benefit related to research and development credits | 1,554,000 | ||||
Tax credit carryforward related to research and development | $ 467,000 | ||||
Operating loss carryforward expiration date | Dec. 31, 2035 | ||||
State and Local Jurisdiction [Member] | |||||
Income Taxes [Line Items] | |||||
Income tax benefit related to research and development credits | $ 1,024,000 | ||||
Tax credit carryforward related to research and development | 594,000 | ||||
Austin Taylor Communications, Ltd. [Member] | |||||
Income Taxes [Line Items] | |||||
Pretax income (losses) | 0 | 615,000 | |||
Net operating loss carryforwards | 7,462,000 | ||||
Net2Edge [Member] | |||||
Income Taxes [Line Items] | |||||
Pretax income (losses) | (2,616,000) | (2,114,000) | |||
Net operating loss carryforwards | 4,471,000 | ||||
Transition Networks China [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 374,000 | ||||
Suttle Costa Rica, S.A. [Member] | |||||
Income Taxes [Line Items] | |||||
Dividends declared not paid | $ 3,500,000 | ||||
Pretax income (losses) | (1,582,000) | $ 463,000 | |||
Net operating loss carryforwards | 1,582,000 | ||||
Deferred tax, undistributed earnings | $ 0 |
Income Taxes (Income Tax (Benef
Income Taxes (Income Tax (Benefit) Expense By Jurisdiction) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | ||
Current year income taxes: Federal | $ (36,000) | $ 27,000 |
Current year income taxes: State | 56,000 | (20,000) |
Current year income taxes: Foreign | 36,000 | 258,000 |
Current year income taxes | 56,000 | 265,000 |
Deferred income taxes (benefit): Federal | (86,000) | 48,000 |
Deferred income taxes (benefit): State | (5,000) | 5,000 |
Deferred income taxes (benefit): Foreign | (61,000) | |
Deferred income taxes (benefit) | (91,134) | (8,456) |
Income tax (benefit) expense | $ (34,503) | $ 256,950 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Effective Tax Rate, By Percentage) (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | ||
Tax at U.S. statutory rate | 35.00% | 35.00% |
Surtax exemption | (0.20%) | (0.60%) |
State income taxes, net of federal benefit | 0.50% | 0.20% |
Foreign income taxes, net of foreign tax credits | (12.80%) | (7.20%) |
Other nondeductible items | (1.00%) | (0.90%) |
Effect of increase in uncertain tax positions | 1.50% | 0.00% |
Change in valuation allowance | 3.10% | (30.10%) |
Change in federal deferred tax rate | (25.70%) | |
Other | (0.10%) | 0.30% |
Effective tax rate | 0.30% | (3.30%) |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Taxes [Abstract] | ||
Allowance for doubtful accounts | $ 22 | $ 26 |
Inventory | 1,836 | 2,381 |
Accrued and prepaid expenses | 245 | 449 |
Domestic net operating loss carry-forward | 2,240 | 2,784 |
Long-term compensation plans | 238 | 344 |
Nonemployee director stock compensation | 454 | 663 |
Other stock compensation | 106 | 210 |
Intangible assets | 292 | |
Foreign net operating loss carry-forwards and credits | 3,063 | 2,129 |
Federal and state credits | 857 | 926 |
Other | 16 | 38 |
Gross deferred tax assets | 9,369 | 9,950 |
Valuation allowance | (8,713) | (8,117) |
Net deferred tax assets | 656 | 1,833 |
Depreciation | (618) | (1,817) |
Intangible assets | (69) | |
Net deferred tax liability | (618) | (1,886) |
Total net deferred tax (liability) | $ (53) | |
Total net deferred tax asset | $ 38 |
Income Taxes (Schedule Of Unrec
Income Taxes (Schedule Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | ||
Unrecognized tax benefits - January 1 | $ 207 | $ 217 |
Settlements | (101) | 0 |
Expiration of statute of limitations | (65) | (10) |
Uncertain tax positions - December 31, 2016 | $ 41 | $ 207 |
Information Concerning Indust65
Information Concerning Industry Segments And Major Customers (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)segmentcustomer | Dec. 31, 2016USD ($)customer | |
Segment Reporting Information [Line Items] | ||
Number of segments | segment | 4 | |
Sales [Member] | JDL Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of customers | 1 | |
Sales [Member] | Suttle [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of customers | 1 | 1 |
Accounts Receivable [Member] | Suttle [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of customers | 1 | 1 |
Accounts Receivable [Member] | Transition Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of customers | 2 | 1 |
Foreign Countries [Member] | Suttle [Member] | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ | $ 93 | $ 2,914 |
United States [Member] | Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 83.00% | 85.00% |
One Customer [Member] | Sales [Member] | JDL Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 11.30% | |
One Customer [Member] | Sales [Member] | Suttle [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 10.30% | 12.00% |
One Customer [Member] | Accounts Receivable [Member] | Suttle [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 21.00% | 25.00% |
One Customer [Member] | Accounts Receivable [Member] | Transition Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 17.00% | |
Customer 1 [Member] | Accounts Receivable [Member] | Transition Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 17.00% | |
Customer 2 [Member] | Accounts Receivable [Member] | Transition Networks [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 15.00% |
Information Concerning Indust66
Information Concerning Industry Segments And Major Customers (Schedule Of Segment Information) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||||||||
Sales | $ 19,043,000 | $ 20,412,000 | $ 22,068,000 | $ 20,800,000 | $ 22,759,000 | $ 25,617,000 | $ 26,311,000 | $ 24,666,000 | $ 82,322,618 | $ 99,352,934 |
Cost of sales | 61,486,379 | 72,771,393 | ||||||||
Gross profit | 20,836,239 | 26,581,541 | ||||||||
Selling, general and administrative expenses | 28,699,138 | 35,185,924 | ||||||||
Impairment loss | 1,463,000 | 1,617,389 | ||||||||
Pension liability adjustment gains | 4,148,000 | (4,147,836) | ||||||||
Restructuring expense | 2,284,541 | |||||||||
Operating loss | (1,584,000) | $ (4,654,000) | $ (4,067,000) | $ (1,460,000) | (1,891,000) | $ (1,175,000) | $ (2,671,000) | $ 1,280,000 | (11,764,829) | (4,456,547) |
Depreciation and amortization | 3,186,458 | 3,683,009 | ||||||||
Capital expenditures | 773,000 | 2,287,000 | ||||||||
Assets | 58,146,261 | 73,177,016 | 58,146,261 | 73,177,016 | ||||||
Intersegment Eliminations [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | (891,000) | (1,153,000) | ||||||||
Cost of sales | (91,000) | (177,000) | ||||||||
Gross profit | (800,000) | (976,000) | ||||||||
Selling, general and administrative expenses | (800,000) | (956,000) | ||||||||
Operating loss | (20,000) | |||||||||
Capital expenditures | (20,000) | |||||||||
Assets | (27,000) | (27,000) | (27,000) | (27,000) | ||||||
Suttle [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 32,384,000 | 42,076,000 | ||||||||
Cost of sales | 30,964,000 | 38,193,000 | ||||||||
Gross profit | 1,420,000 | 3,883,000 | ||||||||
Selling, general and administrative expenses | 8,900,000 | 12,525,000 | ||||||||
Pension liability adjustment gains | 2,285,000 | |||||||||
Operating loss | (9,765,000) | (8,642,000) | ||||||||
Depreciation and amortization | 2,155,000 | 2,461,000 | ||||||||
Capital expenditures | 397,000 | 1,625,000 | ||||||||
Assets | 18,359,000 | 33,555,000 | 18,359,000 | 33,555,000 | ||||||
Transition Networks [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 38,541,000 | 41,093,000 | ||||||||
Cost of sales | 21,779,000 | 23,607,000 | ||||||||
Gross profit | 16,762,000 | 17,486,000 | ||||||||
Selling, general and administrative expenses | 15,371,000 | 17,180,000 | ||||||||
Operating loss | 1,391,000 | 306,000 | ||||||||
Depreciation and amortization | 705,000 | 852,000 | ||||||||
Capital expenditures | 232,000 | 188,000 | ||||||||
Assets | 12,543,000 | 17,518,000 | 12,543,000 | 17,518,000 | ||||||
JDL Technologies [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 11,210,000 | 15,464,000 | ||||||||
Cost of sales | 8,437,000 | 10,245,000 | ||||||||
Gross profit | 2,773,000 | 5,219,000 | ||||||||
Selling, general and administrative expenses | 2,101,000 | 3,296,000 | ||||||||
Impairment loss | 1,463,000 | |||||||||
Operating loss | (791,000) | 1,923,000 | ||||||||
Depreciation and amortization | 269,000 | 267,000 | ||||||||
Capital expenditures | 8,000 | 232,000 | ||||||||
Assets | 1,073,000 | 4,767,000 | 1,073,000 | 4,767,000 | ||||||
Net2Edge [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Sales | 1,079,000 | 1,873,000 | ||||||||
Cost of sales | 398,000 | 904,000 | ||||||||
Gross profit | 681,000 | 969,000 | ||||||||
Selling, general and administrative expenses | 3,127,000 | 3,141,000 | ||||||||
Impairment loss | 154,000 | |||||||||
Operating loss | (2,600,000) | (2,172,000) | ||||||||
Depreciation and amortization | 57,000 | 103,000 | ||||||||
Capital expenditures | 69,000 | 18,000 | ||||||||
Assets | 1,229,000 | 1,464,000 | 1,229,000 | 1,464,000 | ||||||
Other [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Pension liability adjustment gains | (4,148,000) | |||||||||
Operating loss | 4,148,000 | |||||||||
Capital expenditures | 67,000 | 244,000 | ||||||||
Assets | $ 24,969,000 | $ 15,900,000 | $ 24,969,000 | $ 15,900,000 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |||
Impairment loss | $ 1,463,000 | $ 1,617,389 | |
Transfers between levels | $ 0 | $ 0 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 6,193 | $ 3,851 |
Assets (Liabilities) Net, fair value | 11,734 | 9,656 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 6,193 | 3,851 |
Assets (Liabilities) Net, fair value | 6,193 | 3,851 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets (Liabilities) Net, fair value | 5,541 | 5,805 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 6,193 | 3,851 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 6,193 | 3,851 |
Short-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 5,541 | 5,805 |
Short-Term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 5,541 | 5,805 |
Short-Term Investments [Member] | Certificates Of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 997 | 4,294 |
Short-Term Investments [Member] | Certificates Of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 997 | 4,294 |
Short-Term Investments [Member] | Corporate Notes/Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 4,544 | 1,511 |
Short-Term Investments [Member] | Corporate Notes/Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 4,544 | $ 1,511 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2017 | |
Restructuring Charges [Abstract] | ||
Restructuring expense | $ 2,284,541 | |
Loss on equipment disposal | $ 505,000 | |
Restructuring payments | 1,780,000 | |
Restructuring accruals | $ 0 |
Quarterly Operating Results (Sc
Quarterly Operating Results (Schedule Of Quarterly Operating Results) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Operating Results [Abstract] | ||||||||||
Sales | $ 19,043,000 | $ 20,412,000 | $ 22,068,000 | $ 20,800,000 | $ 22,759,000 | $ 25,617,000 | $ 26,311,000 | $ 24,666,000 | $ 82,322,618 | $ 99,352,934 |
Operating income (loss) | (1,584,000) | (4,654,000) | (4,067,000) | (1,460,000) | (1,891,000) | (1,175,000) | (2,671,000) | 1,280,000 | (11,764,829) | (4,456,547) |
Net loss | $ (1,697,000) | $ (4,522,000) | $ (4,091,000) | $ (1,516,000) | $ (1,839,000) | $ (1,264,000) | $ (2,544,000) | $ (2,467,000) | $ (11,825,632) | $ (8,113,548) |
Basic net (loss) income per share | $ (0.19) | $ (0.50) | $ (0.46) | $ (0.17) | $ (0.21) | $ (0.14) | $ (0.29) | $ (0.28) | $ (1.32) | $ (0.92) |
Diluted net (loss) income per share | $ (0.19) | $ (0.50) | $ (0.46) | $ (0.17) | $ (0.21) | $ (0.14) | $ (0.29) | $ (0.28) | $ (1.32) | $ (0.92) |
Additional minimum pension liability adjustments | $ (4,147,836) | |||||||||
Foreign currency translation loss | $ (4,238,497) |