Vicon Industries (VCON) 10-Q 13 Feb 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information Document	3 Months Ended
	Dec. 31, 2013	Feb. 10, 2014
Entity Information [Line Items]	'	'
Entity Registrant Name	'VICON INDUSTRIES INC /NY/	'
Entity Central Index Key	'0000310056	'
Current Fiscal Year End Date	'--09-30	'
Entity Filer Category	'Smaller Reporting Company	'
Document Type	'10-Q	'
Document Period End Date	31-Dec-13	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	4,503,885

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Dec. 31, 2013	Sep. 30, 2013
CURRENT ASSETS	'	'
Cash and cash equivalents	$8,159,015	$8,281,714
Marketable securities	114,771	115,433
Accounts receivable, net	4,978,770	7,024,023
Inventories:	'	'
Parts, components, and materials	2,433,278	2,761,353
Work-in-process	1,213,848	1,102,007
Finished products	4,057,870	4,370,261
Inventory net	7,704,996	8,233,621
Prepaid expenses and other current assets	748,205	687,881
TOTAL CURRENT ASSETS	21,705,757	24,342,672
Property, plant and equipment	10,899,134	10,829,042
Less accumulated depreciation and amortization	-5,977,039	-5,839,369
Property, Plant and Equipment Net	4,922,095	4,989,673
Other assets	969,361	973,410
TOTAL ASSETS	27,597,213	30,305,755
CURRENT LIABILITIES	'	'
Accounts payable	2,162,143	2,732,228
Accrued compensation and employee benefits	1,871,032	2,563,932
Accrued expenses	1,112,852	1,194,105
Unearned revenue	410,214	408,391
TOTAL CURRENT LIABILITIES	5,556,241	6,898,656
Unearned revenue	149,615	138,027
Other long-term liabilities	1,773,590	1,744,416
TOTAL LIABILITIES	7,479,446	8,781,099
SHAREHOLDERS’ EQUITY	'	'
Common stock, par value $.01	53,601	53,601
Capital in excess of par value	25,588,435	25,552,138
Retained earnings	-1,247,504	280,023
Less treasury stock, at cost	-4,226,852	-4,226,852
Accumulated other comprehensive loss	-49,913	-134,254
TOTAL SHAREHOLDERS’ EQUITY	20,117,767	21,524,656
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$27,597,213	$30,305,755

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Net sales	$8,109,194	$11,099,106
Cost of sales	5,100,057	7,023,974
Gross profit	3,009,137	4,075,132
Operating expenses:	'	'
Selling, general and administrative expense	3,267,296	3,613,453
Engineering & development expense	1,105,599	967,263
Other Cost and Expense, Operating	159,898	0
Operating Expenses	4,532,793	4,580,716
Operating loss	-1,523,656	-505,584
Interest income	4,129	31,036
Other expense (income)	0	5,691
Loss before income taxes	-1,519,527	-468,857
Income tax expense	8,000	8,000
Net loss	($1,527,527)	($476,857)
Loss per share:	'	'
Earnings Per Share, Basic	($0.34)	($0.11)
Earnings Per Share, Diluted	($0.34)	($0.11)
Weighted average shares outstanding:	'	'
Basic	4,503,885	4,484,300
Diluted	4,503,885	4,484,300

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Net loss	($1,527,527)	($476,857)
Unrealized loss on securities, net of tax	-1,429	-22,595
Unrealized gain (loss) on derivatives, net of tax	'	145,535
Foreign currency translation adjustment	85,770	-17,060
Other comprehensive loss	84,341	140,000
Comprehensive loss	($1,443,186)	($336,857)

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Net loss	($1,527,527)	($476,857)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:	'	'
Depreciation and amortization	101,130	136,203
Amortization of deferred compensation	1,202	1,202
Stock compensation expense	35,095	57,882
Deferred Income Tax Expense (Benefit)	0	0
Change in assets and liabilities:	'	'
Accounts receivable, net	2,091,236	2,637,296
Inventories	559,183	440,485
Recoverable income taxes	0	0
Prepaid expenses and other current assets	-55,714	-82,833
Other assets	4,049	39,671
Accounts payable	-603,203	98,261
Accrued compensation and employee benefits	-696,266	-577,206
Accrued expenses	-84,031	-164,943
Unearned revenue	13,412	-28,331
Other liabilities	24,288	-29,503
Net cash provided by (used in)	-137,146	2,051,327
Cash flows from investing activities:	'	'
Increase (Decrease) in Trading Securities	-767	-2,033,198
Payments to Acquire Property, Plant, and Equipment	-13,910	-75,094
Net Cash Provided by (Used in) Investing Activities	-14,677	-2,108,292
Net Cash Provided by (Used in) Financing Activities [Abstract]	'	'
Payments for Repurchase of Common Stock	0	0
Net Cash Provided by (Used in) Financing Activities	0	0
Effect of Exchange Rate on Cash and Cash Equivalents	29,124	16,861
Cash and Cash Equivalents, Period Increase (Decrease)	-122,699	-40,104
Cash at beginning of year	8,281,714	6,234,268
Cash at end of period	$8,159,015	$6,194,164

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2013
Basis of Presentation [Abstract]	'
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	'
	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X.  Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the three months ended December 31, 2013 are not necessarily indicative of the results that may be expected for the fiscal year ended September 30, 2014.  For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2013.  Certain prior year amounts have been reclassified to conform to the current period presentation.

Marketable_Securities

Marketable Securities	3 Months Ended
	Dec. 31, 2013
Marketable Securitie [Abstract]	'
Cash, Cash Equivalents, and Marketable Securities [Text Block]	'
	Marketable Securities
	Marketable securities consist of mutual fund investments principally in federal, state and local government debt securities of $114,771 as of December 31, 2013.  Such mutual fund investments are stated at market value based on quoted market prices (Level 1 inputs) and are classified as available-for-sale under the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320, with unrealized gains and losses reported in accumulated other comprehensive income (loss) as a component of shareholders’ equity. The cost of such securities at December 31, 2013 was $121,070, with $6,299 of cumulative unrealized losses reported at December 31, 2013.

Accounts_Receivable

Accounts Receivable	3 Months Ended
	Dec. 31, 2013
Accounts Receivable [Abstract]	'
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]	'
	Accounts Receivable
	Accounts receivable is stated net of an allowance for uncollectible accounts of $985,000 and $977,000 as of December 31, 2013 and September 30, 2013, respectively.

Loss_per_Share

Loss per Share	3 Months Ended
	Dec. 31, 2013
Loss per Share [Abstract]	'
Earnings Per Share [Text Block]	'
	Loss per Share
	Basic loss per share (EPS) is computed based on the weighted average number of common shares outstanding for the period.  Diluted EPS reflects the maximum dilution that would have resulted from incremental common shares issuable upon the exercise of stock options and under deferred compensation agreements.
	The following tables provide the components of the basic and diluted EPS computations for the three month periods ended December 31, 2013 and 2012:
		Three Months Ended
		December 31,
		2013			2012
	Basic EPS Computation
	Net loss	$	(1,527,527	)	$	(476,857	)
	Weighted average shares outstanding	4,503,885			4,484,300
	Basic loss per share	$	(.34	)	$	(.11	)
		Three Months Ended
		December 31,
		2013			2012
	Diluted EPS Computation
	Net loss	$	(1,527,527	)	$	(476,857	)
	Weighted average shares outstanding	4,503,885			4,484,300
	Stock options	—			—
	Stock compensation arrangements	—			—
	Diluted shares outstanding	4,503,885			4,484,300
	Diluted loss per share	$	(.34	)	$	(.11	)
	For the three months ended December 31, 2013 and 2012, 12,068 and 10,034 shares, respectively, have been omitted from the calculation of diluted EPS as their effect would have been antidilutive.

Accumulated_Other_Comprehensiv

Accumulated Other Comprehensive Loss	3 Months Ended
	Dec. 31, 2013
Comprehensive Loss [Abstract]	'
Comprehensive Income (Loss) Note [Text Block]	'
	Accumulated Other Comprehensive Loss
	The Company's accumulated other comprehensive loss balances at December 31, 2013 and September 30, 2013 consisted of the following:
		December 31, 2013			September 30, 2013
	Foreign currency translation adjustment	$	(43,614	)	$	(129,384	)
	Unrealized loss on marketable securities	(6,299		)	(4,870		)
	Accumulated other comprehensive loss	$	(49,913	)	$	(134,254	)

Derivative_Instruments

Derivative Instruments	3 Months Ended
	Dec. 31, 2013
Derivative Instruments [Abstract]	'
Derivative Instruments and Hedging Activities Disclosure [Text Block]	'
	Derivative Instruments
	The Company enters into forward exchange contracts to hedge certain foreign currency exposures and minimize the effect of such fluctuations on reported earnings and cash flow.  The Company’s ongoing foreign currency exchange risks include intercompany sales of product and services between subsidiary companies operating in differing functional currencies. At December 31, 2013 and September 30, 2013, the Company had no forward exchange contracts outstanding.

Stock_Based_Compensation

Stock Based Compensation	3 Months Ended
	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	'
	Stock-Based Compensation
	The Company maintains stock option plans that include both incentive and non-qualified options reserved for issuance to key employees, including officers and directors.  All options are issued at fair market value at the grant date and are exercisable in varying installments according to the plans.  The plans allow for the payment of option exercises through the surrender of previously owned mature shares based on the fair market value of such shares at the date of surrender.
	The Company follows ASC 718 (SFAS No. 123(R), “Share-Based Payment”), which requires that all share based payments to employees, including stock options, be recognized as compensation expense in the consolidated financial statements based on their grant date fair values and over the requisite service period.  For the three month periods ended December 31, 2013 and 2012, the Company recorded non-cash compensation expense of $35,095 and $57,882, respectively, ($.01 and $.01 per basic and diluted share, respectively) relating to stock compensation.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	3 Months Ended
	Dec. 31, 2013
Recent Accounting Pronouncements [Abstract]	'
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	'
	Recent Accounting Pronouncements
	The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its consolidated financial statements.

Income_Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2013
Income Tax [Abstract]	'
Income Tax Disclosure [Text Block]	'
	Income Taxes
	Deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets represent items to be used as a tax deduction or credit in future tax returns for which a tax benefit has been recorded in the income statement. The Company has a valuation allowance against its deferred tax assets due to the uncertainty of future realization. The full valuation allowance is determined to be appropriate due to the Company's operating losses since fiscal year 2010 and the inherent uncertainties of predicting future operating results in periods over which such net tax differences become deductible. At September 30, 2013, the Company had $5.9 million of unrecognized net deferred tax assets available, which includes approximately $3.1 million of tax effected U.S. and foreign net operating loss carryforwards.
	The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits in income tax expense.  The Company files U.S. Federal and State income tax returns and foreign tax returns in the United Kingdom, Germany and Israel.  The Company is generally no longer subject to tax examinations in such jurisdictions for fiscal years prior to 2010 in the U.S. and 2008 in the U.K., Germany and Israel.

Fair_Value

Fair Value	3 Months Ended
	Dec. 31, 2013
Fair Value [Abstract]	'
Fair Value Disclosures [Text Block]	'
	Fair Value
	The majority of the Company’s non-financial assets and liabilities are not required to be carried at fair value on a recurring basis, but the Company is required on a non-recurring basis to use fair value measurements when analyzing asset impairment as it relates to long-lived assets.  The carrying amounts for trade accounts and other receivables and accounts payable approximate fair value due to the short-term maturity of these instruments.  The fair value of the Company’s foreign currency forward exchange contracts is estimated by obtaining quoted market exchange rates for similar contracts (Level 2 inputs).  At December 31, 2013 and September 30, 2013, the Company had no forward exchange contracts outstanding.
	Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument.  These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision.  Changes in assumptions could significantly affect the estimates.

Loss_per_Share_Tables

Loss per Share (Tables)	3 Months Ended
	Dec. 31, 2013
Loss per Share [Abstract]	'
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	'
	The following tables provide the components of the basic and diluted EPS computations for the three month periods ended December 31, 2013 and 2012:
		Three Months Ended
		December 31,
		2013			2012
	Basic EPS Computation
	Net loss	$	(1,527,527	)	$	(476,857	)
	Weighted average shares outstanding	4,503,885			4,484,300
	Basic loss per share	$	(.34	)	$	(.11	)
		Three Months Ended
		December 31,
		2013			2012
	Diluted EPS Computation
	Net loss	$	(1,527,527	)	$	(476,857	)
	Weighted average shares outstanding	4,503,885			4,484,300
	Stock options	—			—
	Stock compensation arrangements	—			—
	Diluted shares outstanding	4,503,885			4,484,300
	Diluted loss per share	$	(.34	)	$	(.11	)

Accumulated_Other_Comprehensiv1

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Dec. 31, 2013
Comprehensive Loss [Abstract]	'
Schedule of Comprehensive Income (Loss) [Table Text Block]	'
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	'
	The Company's accumulated other comprehensive loss balances at December 31, 2013 and September 30, 2013 consisted of the following:
		December 31, 2013			September 30, 2013
	Foreign currency translation adjustment	$	(43,614	)	$	(129,384	)
	Unrealized loss on marketable securities	(6,299		)	(4,870		)
	Accumulated other comprehensive loss	$	(49,913	)	$	(134,254	)

Marketable_Securities_Details

Marketable Securities (Details) (USD $)	Dec. 31, 2013
Marketable Securities [Abstract]	'
Available-for-sale Securities, Amortized Cost Basis	$121,070
Available-for-sale Securities, Gross Unrealized Gains	-6,299
Available-for-sale Securities, Debt Securities	$114,771

Accounts_Receivable_Details

Accounts Receivable (Details) (USD $)	Dec. 31, 2013	Sep. 30, 2013
Accounts Receivable [Abstract]	'	'
Allowance for Doubtful Accounts Receivable, Current	$985,000	$977,000

Loss_per_Share_Details

Loss per Share (Details) (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]	'	'
Net Income (Loss) Attributable to Parent	($1,527,527)	($476,857)
Weighted Average Number of Shares Outstanding, Basic	4,503,885	4,484,300
Earnings Per Share, Basic	($0.34)	($0.11)

Loss_per_Share_schedule_of_ear

Loss per Share schedule of earnings per share diluted (Details) (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	12,068	10,034
Net Income (Loss) Attributable to Parent	($1,527,527)	($476,857)
Weighted Average Number of Shares Outstanding, Basic	4,503,885	4,484,300
Incremental Common Shares Attributable to Call Options and Warrants	0	0
Incremental Common Shares Attributable to Share-based Payment Arrangements	0	0
Weighted Average Number of Shares Outstanding, Diluted	4,503,885	4,484,300
Earnings Per Share, Diluted	($0.34)	($0.11)

Accumulated_Other_Comprehensiv2

Accumulated Other Comprehensive Loss (Details) (USD $)	Dec. 31, 2013	Sep. 30, 2013
Comprehensive Loss [Abstract]	'	'
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	($43,614)	($129,384)
Available-for-sale Securities, Gross Unrealized Gains	-6,299	-4,870
Accumulated Other Comprehensive Income (Loss), Net of Tax	($49,913)	($134,254)

Stock_Based_Compensation_Detai

Stock Based Compensation (Details) (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Share-based Compensation	$35,095	$57,882
Share Based Compensation per share	$0.01	$0.01

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Sep. 30, 2013
Valuation Allowance [Line Items]	'	'	'
Deferred tax assets net of liabilities before valuation allowance	'	'	$5,900,000
Deferred Tax Assets, Operating Loss Carryforwards	'	'	3,100,000
Deferred Income Tax Expense (Benefit)	$0	$0	'