CSP (CSPI) 10-Q 16 Feb 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Feb. 16, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	CSP INC /MA/
Document Type	10-Q
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		3,683,794
Amendment Flag	false
Entity Central Index Key	356,037
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 10,531	$ 11,181
Accounts receivable, net of allowances of $299 and $331	17,797	18,468
Insurance Settlements Receivable, Current	426	1,420
Inventories, net	6,182	5,749
Refundable income taxes	0	43
Deferred income taxes	1,337	1,337
Other current assets	1,938	1,884
Total current assets	38,211	40,082
Property, equipment and improvements, net	1,611	1,564
Other assets:
Intangibles, net	384	416
Deferred income taxes	1,643	1,687
Cash surrender value of life insurance	3,089	3,064
Other assets	179	183
Total other assets	5,295	5,350
Total assets	45,117	46,996
Current liabilities:
Accounts payable and accrued expenses	13,350	13,776
Deferred revenue	1,802	2,931
Pension and retirement plans	664	675
Income taxes payable	13	0
Total current liabilities	15,829	17,382
Pension and retirement plans	9,730	10,009
Other long term liabilities	16	15
Total liabilities	$ 25,575	$ 27,406
Commitments and contingencies
Shareholders’ equity:
Common stock, $.01 par value per share; authorized, 7,500 shares; issued and outstanding 3,767 and 3,688 shares, respectively	$ 38	$ 37
Additional paid-in capital	12,329	12,249
Retained earnings	15,558	15,689
Accumulated other comprehensive loss	(8,383)	(8,385)
Total shareholders’ equity	19,542	19,590
Total liabilities and shareholders’ equity	$ 45,117	$ 46,996

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Statement of Financial Position [Abstract]
Allowances (in Dollars)	$ 299	$ 331
Common stock par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	7,500	7,500
Common stock, shares issued	3,767	3,688
Common stock, shares outstanding	3,767	3,688

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Sales:
Product	$ 17,003	$ 15,653
Services	6,673	4,777
Total sales	23,676	20,430
Cost of sales:
Product	14,236	13,133
Services	4,250	3,342
Total cost of sales	18,486	16,475
Gross profit	5,190	3,955
Operating expenses:
Engineering and development	799	853
Selling, general and administrative	4,048	4,023
Total operating expenses	4,847	4,876
Operating income (loss)	343	(921)
Other income (expense):
Foreign exchange gain (loss)	39	(21)
Other expense, net	(11)	(12)
Total other income (expense)	28	(33)
Income (loss) before income taxes	371	(954)
Income tax expense (benefit)	88	(517)
Net income (loss)	283	(437)
Net income (loss) attributable to common stockholders	$ 274	$ (421)
Net income (loss) per share – basic (in Dollars per share)	$ 0.08	$ (0.12)
Weighted average shares outstanding – basic (in Shares)	3,569	3,490
Net income (loss) per share – diluted (in Dollars per share)	$ 0.07	$ (0.12)
Weighted average shares outstanding – diluted (in Shares)	3,726	3,490

Unaudited Consolidated Stateme5

Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 283	$ (437)
Other comprehensive income (loss):
Foreign currency translation gain adjustments	2	112
Other comprehensive income	2	112
Total comprehensive income (loss)	$ 285	$ (325)

Unaudited Consolidated Stateme6

Unaudited Consolidated Statement of Shareholders' Equity - 3 months ended Dec. 31, 2015 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Sep. 30, 2015	$ 19,590	$ 37	$ 12,249	$ 15,689	$ (8,385)
Balance (in Shares) at Sep. 30, 2015	3,688	3,688
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 283			283
Other comprehensive income	2				2
Stock-based compensation	80		80
Restricted stock issuance	1	$ 1
Restricted stock issuance (in Shares)		83
Cash dividends on common stock ($0.11 per share)	(414)			(414)
Balance at Dec. 31, 2015	$ 19,542	$ 38	$ 12,329	$ 15,558	$ (8,383)
Balance (in Shares) at Dec. 31, 2015	3,767	3,767

Unaudited Consolidated Stateme7

Unaudited Consolidated Statement of Shareholders' Equity (Parentheticals) - $ / shares	1 Months Ended	3 Months Ended
	Dec. 17, 2013	Dec. 31, 2015
Statement of Stockholders' Equity [Abstract]
Dividends per share	$ 0.11	$ 0.11

Unaudited Consolidated Stateme8

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows used in operating activities:
Net income (loss)	$ 283	$ (437)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	129	139
Amortization of intangibles	32	33
Foreign exchange (gain) loss	(39)	21
Non-cash changes in accounts receivable	(29)	13
Non-cash changes in inventory	116	55
Stock-based compensation expense on stock options and restricted stock awards	80	102
Deferred income taxes	23	5
(Increase) decrease in cash surrender value of life insurance	(24)	5
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	1,424	(4,182)
Increase in inventories	(583)	(871)
(Increase) decrease in refundable income taxes	41	(524)
Increase in other current assets	(81)	(1,238)
Increase in other assets	0	(78)
Increase (decrease) in accounts payable and accrued expenses	(675)	3,090
Decrease in deferred revenue	(1,078)	(723)
Decrease in pension and retirement plans liability	(53)	(14)
Increase in income taxes payable	19	0
Increase in other long term liabilities	2	2
Net cash used in operating activities	(413)	(4,602)
Cash flows used in investing activities:
Life insurance premiums paid	0	(31)
Purchases of property, equipment and improvements	(189)	(103)
Net cash used in investing activities	(189)	(134)
Cash flows provided by (used in) financing activities:
Net cash provided by (used in) financing activities	0	0
Effects of exchange rate on cash	(48)	(59)
Net decrease in cash and cash equivalents	(650)	(4,795)
Cash and cash equivalents, beginning of period	11,181	16,448
Cash and cash equivalents, end of period	10,531	11,653
Supplementary cash flow information:
Cash paid for income taxes	23	33
Cash paid for interest	0	85
Dividends Accrued	$ 414	$ 402

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in the annual consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States, have been omitted. Accordingly, the Company believes that although the disclosures are adequate to make the information presented not misleading, the unaudited consolidated financial statements should be read in conjunction with the footnotes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2015 .

Use of Estimates

Use of Estimates	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States 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, including estimates and assumptions related to reserves for bad debt, reserves for inventory obsolescence, the impairment assessment of intangible assets, the calculation of estimated selling price and post-delivery support obligations used for revenue recognition and the calculation of income tax liabilities. Actual results may differ from those estimates under different assumptions or conditions.

Earnings Per Share of Common St

Earnings Per Share of Common Stock	3 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share of Common Stock	Earnings Per Share of Common Stock Basic net income (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per common share reflects the maximum dilution that would have resulted from the assumed exercise and share repurchase related to dilutive stock options and is computed by dividing net income (loss) by the assumed weighted average number of common shares outstanding. We are required to present earnings per share, or EPS, utilizing the two class method because we had outstanding, non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, which are considered participating securities. Basic and diluted earnings per share computations for the Company’s reported net income (loss) attributable to common stockholders are as follows: For the three months ended December 31, 2015 December 31, 2014 (Amounts in thousands except per share data) Net income (loss) $ 283 $ (437 ) Less: net income attributable to nonvested common stock 9 (16 ) Net income (loss) attributable to common stockholders $ 274 $ (421 ) Weighted average total shares outstanding – basic 3,684 3,625 Less: weighted average non-vested shares outstanding 115 135 Weighted average number of common shares outstanding – basic 3,569 3,490 Potential common shares from non-vested stock awards and the assumed exercise of stock options 157 — Weighted average common shares outstanding – diluted 3,726 3,490 Net income (loss) per share – basic $ 0.08 $ (0.12 ) Net income (loss) per share – diluted $ 0.07 $ (0.12 ) All anti-dilutive securities, including certain stock options, are excluded from the diluted income (loss) per share computation. For the three months ended December 31, 2015 and 2014, 35,000 and 43,000 shares subject to stock options, respectively, were excluded from the diluted income per share calculation because their inclusion would have been anti-dilutive as their exercise price exceeded fair value. Additionally, 135,000 shares subject to non-vested restricted stock awards were excluded from the diluted income per share calculation as there was a net loss for the three months ended December 31, 2014 and their inclusion would have been anti-dilutive.

Inventories

Inventories	3 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following: December 31, 2015 September 30, 2015 (Amounts in thousands) Raw materials $ 1,956 $ 1,788 Work-in-process 506 387 Finished goods 3,720 3,574 Total $ 6,182 $ 5,749 Finished goods includes inventory of approximately $0.1 million as of December 31, 2015 and September 30, 2015 that has been shipped, but for which all revenue recognition criteria have not been met. Total inventory balances in the table above are shown net of reserves for obsolescence of approximately $4.2 million and $4.1 million as of December 31, 2015 and September 30, 2015 , respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: December 31, 2015 September 30, 2015 (Amounts in thousands) Cumulative effect of foreign currency translation $ (2,823 ) $ (2,825 ) Cumulative unrealized loss on pension liability (5,560 ) (5,560 ) Accumulated other comprehensive loss $ (8,383 ) $ (8,385 )

Pension and Retirement Plans

Pension and Retirement Plans	3 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Pension and Retirement Plans	Pension and Retirement Plans The Company has defined benefit and defined contribution plans in the United Kingdom, Germany and the U.S. In the United Kingdom and Germany, the Company provides defined benefit pension plans and defined contribution plans for the majority of its employees. In the U.S., the Company provides benefits through supplemental retirement plans to certain current and former employees. The domestic supplemental retirement plans have life insurance policies which are not plan assets but were purchased by the Company as a vehicle to fund the costs of the plan. Domestically, the Company also provides for officer death benefits through post-retirement plans to certain officers. All of the Company’s defined benefit plans are closed to newly hired employees and have been for the two years ended September 30, 2015 and 2014 and for the three months ended December 31, 2015 . The Company funds its pension plans in amounts sufficient to meet the requirements set forth in applicable employee benefits laws and local tax laws. Liabilities for amounts in excess of these funding levels are accrued and reported in the consolidated balance sheets. The Company's pension plan in the United Kingdom is the only plan with plan assets. The plan assets consist of an investment in a commingled fund which in turn comprises a diversified mix of assets including corporate equity securities, government securities and corporate debt securities. The components of net periodic benefit costs related to the U.S. and international plans are as follows: For the Three Months Ended December 31, 2015 2014 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 9 $ — $ 9 $ 15 $ — $ 15 Interest cost 151 11 162 164 13 177 Expected return on plan assets (97 ) — (97 ) (108 ) — (108 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 45 (1 ) 44 53 (1 ) 52 Net periodic benefit cost $ 108 $ 10 $ 118 $ 124 $ 12 $ 136 Post Retirement: Service cost $ — $ 7 $ 7 $ — $ 9 $ 9 Interest cost — 11 11 — 11 11 Amortization of net gain — (21 ) (21 ) — (13 ) (13 ) Net periodic cost (benefit) $ — $ (3 ) $ (3 ) $ — $ 7 $ 7 The fair value of the assets held by the U.K. pension plan by asset category are as follows: Fair Values as of December 31, 2015 September 30, 2015 Fair Value Measurements Using Inputs Considered as Fair Value Measurements Using Inputs Considered as Asset Category Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (Amounts in thousands) Cash on deposit $ 263 $ 263 $ — $ — $ 324 $ 324 $ — $ — Pooled Funds 8,890 — 8,890 — 8,977 — 8,977 — Total Plan Assets $ 9,153 $ 263 $ 8,890 $ — $ 9,301 $ 324 $ 8,977 $ —

Segment Information

Segment Information	3 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Segment Information	Segment Information The following table presents certain operating segment information. Technology Solutions Segment For the three months ended December 31, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 2015 Sales: Product $ 1,950 $ 1,902 $ 1,993 $ 11,158 $ 15,053 $ 17,003 Service 867 4,772 190 844 5,806 6,673 Total sales 2,817 6,674 2,183 12,002 20,859 23,676 Income (loss) from operations (423 ) 463 (47 ) 350 766 343 Assets 16,099 12,977 2,810 13,231 29,018 45,117 Capital expenditures 148 67 2 (28 ) 41 189 Depreciation and amortization 57 40 5 59 104 161 2014 Sales: Product $ 2,452 $ 2,144 $ 1,570 $ 9,487 $ 13,201 $ 15,653 Service 230 3,528 283 736 4,547 4,777 Total sales 2,682 5,672 1,853 10,223 17,748 20,430 Income (loss) from operations (857 ) 79 68 (211 ) (64 ) (921 ) Assets 15,850 12,861 3,770 15,308 31,939 47,789 Capital expenditures 21 81 1 — 82 103 Depreciation and amortization 71 47 7 47 101 172 Income (loss) from operations consists of sales less cost of sales, engineering and development, selling, general and administrative expenses but is not affected by either other income/expense or by income taxes expense/benefit. Non-operating charges/income consists principally of investment income and interest expense. All intercompany transactions have been eliminated. The following table lists customers from which the Company derived revenues in excess of 10% of total revenues for the three months ended December 31, 2015 , and 2014 . For the three months ended December 31, 2015 2014 Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues (dollars in millions) Customer A $ 2.9 12 % $ 2.8 13 % Customer B $ 3.8 16 % $ 2.9 14 % In addition, accounts receivable from Customer B totaled approximately $5.1 million or 30% of total consolidated accounts receivable, and approximately $7.9 million or 39% of total consolidated accounts receivable as of December 31, 2015 and September 30, 2015, respectively. We believe that the Company is not exposed to any significant credit risk with respect to the accounts receivable with this customer as of December 31, 2015 . No other customers accounted for 10% or more of total consolidated accounts receivable as of December 31, 2015 or September 30, 2015.

Dividend

Dividend	3 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Dividend	Dividends On December 23, 2015, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on January 11, 2016 to shareholders of record as of December 31, 2015, the record date.

Recent Accounting Pronouncement

Recent Accounting Pronouncements (Notes)	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update, or ASU, No. 2014 ‑09 , Revenue from Contracts with Customers , which outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This ASU clarifies the principles for recognizing revenue by, among other things, removing inconsistencies in revenue requirements, improving comparability of revenue recognition practices across entities and industries and providing improved disclosure requirements. In July 2015, the FASB approved a one year deferral of the effective date for this ASU to interim and annual reporting periods beginning after December 15, 2017; however, early adoption at the original effective date is still permitted. We are currently evaluating the impact that the adoption of this ASU will have on our consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) , which excludes investments measured at net asset value, as a practical expedient for fair value, from the fair value hierarchy. This ASU is effective for interim and annual reporting periods beginning after December 15, 2015, and requires retrospective application, with early adoption permitted. The implementation of this ASU is not expected to have a material impact to the disclosures in our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-12, Plan Accounting: Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefits Plans (Topic 965) , which requires fully benefit-responsive investment contracts to be measured at contract value. Those Topics also require an adjustment to reconcile contract value to fair value, when these measures differ, on the face of the plan financial statements. Fair value is measured using the requirements in Topic 820, Fair Value Measurement. This ASU is effective for fiscal years beginning after December 15, 2015, and requires retrospective application, with early adoption permitted. The implementation of this ASU is not expected to have a material impact to the disclosures in our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) Simplifying the Measurement of Inventory , which requires entities to measure inventory at the lower of cost and net realizable value, except for inventory measured using last-in, first-out (LIFO) or the retail inventory method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017 and requires prospective application, with early adoption permitted as of the beginning of an interim or annual reporting period. The Company has not yet assessed the potential impact of implementing this ASU on the disclosures in our consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes, which require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments in this Topic apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this Topic. The amendments in this Topic are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The implementation of this guidance is not expected to have a material impact to the disclosures in our consolidated financial statements.

Earnings Per Share of Common 18

Earnings Per Share of Common Stock (Tables)	3 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Basic and diluted earnings per share computations for the Company’s reported net income (loss) attributable to common stockholders are as follows: For the three months ended December 31, 2015 December 31, 2014 (Amounts in thousands except per share data) Net income (loss) $ 283 $ (437 ) Less: net income attributable to nonvested common stock 9 (16 ) Net income (loss) attributable to common stockholders $ 274 $ (421 ) Weighted average total shares outstanding – basic 3,684 3,625 Less: weighted average non-vested shares outstanding 115 135 Weighted average number of common shares outstanding – basic 3,569 3,490 Potential common shares from non-vested stock awards and the assumed exercise of stock options 157 — Weighted average common shares outstanding – diluted 3,726 3,490 Net income (loss) per share – basic $ 0.08 $ (0.12 ) Net income (loss) per share – diluted $ 0.07 $ (0.12 )

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories consist of the following: December 31, 2015 September 30, 2015 (Amounts in thousands) Raw materials $ 1,956 $ 1,788 Work-in-process 506 387 Finished goods 3,720 3,574 Total $ 6,182 $ 5,749

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The components of accumulated other comprehensive loss are as follows: December 31, 2015 September 30, 2015 (Amounts in thousands) Cumulative effect of foreign currency translation $ (2,823 ) $ (2,825 ) Cumulative unrealized loss on pension liability (5,560 ) (5,560 ) Accumulated other comprehensive loss $ (8,383 ) $ (8,385 )

Pension and Retirement Plans (T

Pension and Retirement Plans (Tables)	3 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	The fair value of the assets held by the U.K. pension plan by asset category are as follows: Fair Values as of December 31, 2015 September 30, 2015 Fair Value Measurements Using Inputs Considered as Fair Value Measurements Using Inputs Considered as Asset Category Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (Amounts in thousands) Cash on deposit $ 263 $ 263 $ — $ — $ 324 $ 324 $ — $ — Pooled Funds 8,890 — 8,890 — 8,977 — 8,977 — Total Plan Assets $ 9,153 $ 263 $ 8,890 $ — $ 9,301 $ 324 $ 8,977 $ —
Schedule of Net Benefit Costs	The components of net periodic benefit costs related to the U.S. and international plans are as follows: For the Three Months Ended December 31, 2015 2014 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 9 $ — $ 9 $ 15 $ — $ 15 Interest cost 151 11 162 164 13 177 Expected return on plan assets (97 ) — (97 ) (108 ) — (108 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 45 (1 ) 44 53 (1 ) 52 Net periodic benefit cost $ 108 $ 10 $ 118 $ 124 $ 12 $ 136 Post Retirement: Service cost $ — $ 7 $ 7 $ — $ 9 $ 9 Interest cost — 11 11 — 11 11 Amortization of net gain — (21 ) (21 ) — (13 ) (13 ) Net periodic cost (benefit) $ — $ (3 ) $ (3 ) $ — $ 7 $ 7

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Dec. 31, 2015
Operating Segment Information
Segment Reporting Information [Line Items]
Schedule of Revenue by Major Customers by Reporting Segments	The following table presents certain operating segment information. Technology Solutions Segment For the three months ended December 31, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 2015 Sales: Product $ 1,950 $ 1,902 $ 1,993 $ 11,158 $ 15,053 $ 17,003 Service 867 4,772 190 844 5,806 6,673 Total sales 2,817 6,674 2,183 12,002 20,859 23,676 Income (loss) from operations (423 ) 463 (47 ) 350 766 343 Assets 16,099 12,977 2,810 13,231 29,018 45,117 Capital expenditures 148 67 2 (28 ) 41 189 Depreciation and amortization 57 40 5 59 104 161 2014 Sales: Product $ 2,452 $ 2,144 $ 1,570 $ 9,487 $ 13,201 $ 15,653 Service 230 3,528 283 736 4,547 4,777 Total sales 2,682 5,672 1,853 10,223 17,748 20,430 Income (loss) from operations (857 ) 79 68 (211 ) (64 ) (921 ) Assets 15,850 12,861 3,770 15,308 31,939 47,789 Capital expenditures 21 81 1 — 82 103 Depreciation and amortization 71 47 7 47 101 172
Revenues in Excess of 10 Percent of Total Revenues
Segment Reporting Information [Line Items]
Schedule of Revenue by Major Customers by Reporting Segments	The following table lists customers from which the Company derived revenues in excess of 10% of total revenues for the three months ended December 31, 2015 , and 2014 . For the three months ended December 31, 2015 2014 Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues (dollars in millions) Customer A $ 2.9 12 % $ 2.8 13 % Customer B $ 3.8 16 % $ 2.9 14 %

Earnings Per Share of Common 23

Earnings Per Share of Common Stock (Detail) - shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from diluted income per share calculation	35,000	43,000
Due to Loss [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from diluted income per share calculation	135,000

Earnings Per Share of Common 24

Earnings Per Share of Common Stock (Detail) - Basic and diluted earnings per share computations - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Net income (loss)	$ 283	$ (437)
Less: Net income attributable to nonvested common stock (in Dollars)	9	(16)
Net income attributable to common stockholders (in Dollars)	$ 274	$ (421)
Weighted average total shares outstanding – basic	3,684	3,625
Less: weighted average non-vested shares outstanding	115	135
Weighted average number of common shares outstanding – basic	3,569	3,490
Potential common shares from non-vested stock awards and the assumed exercise of stock options	157	0
Weighted average common shares outstanding – diluted	3,726	3,490
Net income (loss) per share – basic (in Dollars per share)	$ 0.08	$ (0.12)
Net income (loss) per share – diluted (in Dollars per share)	$ 0.07	$ (0.12)

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Millions	Dec. 31, 2015	Sep. 30, 2015
Inventory Disclosure [Abstract]
Finished goods inventory that has been shipped, but for which all revenue recognition criteria has not been met	$ 0.1
Reservce for obsolescence	$ 4	$ 4

Inventories (Detail) - Inventor

Inventories (Detail) - Inventories - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 1,956	$ 1,788
Work-in-process	506	387
Finished goods	3,720	3,574
Total	$ 6,182	$ 5,749

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Loss (Detail) - Components of Accumulated Other Comprehensive Loss - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Equity [Abstract]
Cumulative effect of foreign currency translation	$ (2,823)	$ (2,825)
Cumulative unrealized loss on pension liability	(5,560)	(5,560)
Accumulated other comprehensive loss	$ (8,383)	$ (8,385)

Pension and Retirement Plans (D

Pension and Retirement Plans (Detail)	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Sep. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Number of years defined benefit plans are closed to newly hired employees	2 years	2 years	2 years

Pension and Retirement Plans 29

Pension and Retirement Plans (Detail) - Components of net periodic benefit costs - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Pension:
Pension:
Service cost	$ 9	$ 15
Interest cost	162	177
Expected return on plan assets	(97)	(108)
Amortization of:
Prior service gain	0	0
Amortization of net gain	44	52
Net periodic benefit cost	118	136
Post Retirement:
Pension:
Service cost	7	9
Interest cost	11	11
Amortization of:
Amortization of net gain	(21)	(13)
Net periodic benefit cost	(3)	7
Foreign | Pension:
Pension:
Service cost	9	15
Interest cost	151	164
Expected return on plan assets	(97)	(108)
Amortization of:
Prior service gain	0	0
Amortization of net gain	45	53
Net periodic benefit cost	108	124
Foreign | Post Retirement:
Pension:
Service cost	0	0
Interest cost	0	0
Amortization of:
Amortization of net gain	0	0
Net periodic benefit cost	0	0
U.S. | Pension:
Pension:
Service cost	0	0
Interest cost	11	13
Expected return on plan assets	0	0
Amortization of:
Prior service gain	0	0
Amortization of net gain	(1)	(1)
Net periodic benefit cost	10	12
U.S. | Post Retirement:
Pension:
Service cost	7	9
Interest cost	11	11
Amortization of:
Amortization of net gain	(21)	(13)
Net periodic benefit cost	$ (3)	$ 7

Pension and Retirement Plans Fa

Pension and Retirement Plans Fair value of the assets held by the UK pension plan by asset catagory (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 9,153	$ 9,301
Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	263	324
Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	8,890	8,977
Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	263	324
Level 1 | Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	263	324
Level 1 | Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	0	0
Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	8,890	8,977
Fair Value, Inputs, Level 2 [Member] | Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	0	0
Fair Value, Inputs, Level 2 [Member] | Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	8,890	8,977
Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	0	0
Fair Value, Inputs, Level 3 [Member] | Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	0	0
Fair Value, Inputs, Level 3 [Member] | Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 0	$ 0

Segment Information (Detail) -

Segment Information (Detail) - The following table presents certain operating segment information - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Sales:
Product	$ 17,003	$ 15,653
Service	6,673	4,777
Total sales	23,676	20,430
Income (loss) from operations	343	(921)
Assets	45,117	47,789	$ 46,996
Capital expenditures	189	103
Depreciation and amortization	161	172
High Performance Products Segment
Sales:
Product	1,950	2,452
Service	867	230
Total sales	2,817	2,682
Income (loss) from operations	(423)	(857)
Assets	16,099	15,850
Capital expenditures	148	21
Depreciation and amortization	57	71
Germany
Sales:
Product	1,902	2,144
Service	4,772	3,528
Total sales	6,674	5,672
Income (loss) from operations	463	79
Assets	12,977	12,861
Capital expenditures	67	81
Depreciation and amortization	40	47
United Kingdom
Sales:
Product	1,993	1,570
Service	190	283
Total sales	2,183	1,853
Income (loss) from operations	(47)	68
Assets	2,810	3,770
Capital expenditures	2	1
Depreciation and amortization	5	7
U.S.
Sales:
Product	11,158	9,487
Service	844	736
Total sales	12,002	10,223
Income (loss) from operations	350	(211)
Assets	13,231	15,308
Capital expenditures	(28)	0
Depreciation and amortization	59	47
Total
Sales:
Product	15,053	13,201
Service	5,806	4,547
Total sales	20,859	17,748
Income (loss) from operations	766	(64)
Assets	29,018	31,939
Capital expenditures	41	82
Depreciation and amortization	$ 104	$ 101

Segment Information (Detail) 32

Segment Information (Detail) - Major customers - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Segment Reporting Information [Line Items]
Segment Reporting, Disclosure of Major Customers	0.1	.1
Customer A
Segment Reporting Information [Line Items]
Amount (in Dollars)	$ 2.9	$ 2.8
% of Total Revenues	12.00%	13.00%
Customer B
Segment Reporting Information [Line Items]
Amount (in Dollars)	$ 3.8	$ 2.9
% of Total Revenues	16.00%	14.00%
Accounts Receivable, Gross	$ 5		$ 8
concentration risk, percentage, accounts receivable	30.00%		39.00%

Dividend (Detail)

Dividend (Detail) - $ / shares	1 Months Ended	3 Months Ended
	Dec. 17, 2013	Dec. 31, 2015
Equity [Abstract]
Dividends per share	$ 0.11	$ 0.11