CSP (CSPI) 10-Q 19 Aug 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Aug. 15, 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		3,810,237
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	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 11,590	$ 11,181
Accounts receivable, net of allowances of $289 and $331	19,896	18,468
Insurance Settlements Receivable, Current	657	1,420
Inventories, net	5,615	5,749
Refundable income taxes	0	43
Deferred income taxes	1,383	1,337
Other current assets	2,279	1,884
Total current assets	41,420	40,082
Property, equipment and improvements, net	1,578	1,564
Other assets:
Intangibles, net	319	416
Deferred income taxes	1,660	1,687
Cash surrender value of life insurance	3,303	3,064
Other assets	119	183
Total other assets	5,401	5,350
Total assets	48,399	46,996
Current liabilities:
Accounts payable and accrued expenses	12,954	13,776
Deferred revenue	3,610	2,931
Pension and retirement plans	732	675
Income taxes payable	840	0
Total current liabilities	18,136	17,382
Pension and retirement plans	9,343	10,009
Other long term liabilities	20	15
Total liabilities	27,499	27,406
Commitments and contingencies
Shareholders’ equity:
Common stock, $.01 par value per share; authorized, 7,500 shares; issued and outstanding 3,788 and 3,688 shares, respectively	38	37
Additional paid-in capital	12,621	12,249
Retained earnings	16,482	15,689
Accumulated other comprehensive loss	(8,241)	(8,385)
Total shareholders’ equity	20,900	19,590
Total liabilities and shareholders’ equity	$ 48,399	$ 46,996

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Statement of Financial Position [Abstract]
Allowances (in Dollars)	$ 289	$ 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	3,788	3,688
Common stock, shares outstanding	3,788	3,688

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Sales:
Product	$ 20,345	$ 15,696	$ 58,320	$ 45,544
Services	6,567	6,591	19,407	16,050
Total sales	26,912	22,287	77,727	61,594
Cost of sales:
Product	16,460	13,461	47,750	37,974
Services	3,247	3,560	11,249	10,356
Total cost of sales	19,707	17,021	58,999	48,330
Gross profit	7,205	5,266	18,728	13,264
Operating expenses:
Engineering and development	779	626	2,368	2,305
Selling, general and administrative	4,573	3,945	13,286	11,824
Total operating expenses	5,352	4,571	15,654	14,129
Operating income (loss)	1,853	695	3,074	(865)
Other expense:
Foreign exchange loss	(55)	(87)	(118)	(216)
Other expense, net	(21)	(26)	(47)	(59)
Total other expense	(76)	(113)	(165)	(275)
Income (loss) before income taxes	1,777	582	2,909	(1,140)
Income tax expense (benefit)	520	333	866	(277)
Net income (loss)	1,257	249	2,043	(863)
Net income (loss) attributable to common stockholders	$ 1,198	$ 240	$ 1,959	$ (863)
Net income (loss) per share – basic (in Dollars per share)	$ 0.33	$ 0.07	$ 0.54	$ (0.25)
Weighted average shares outstanding – basic (in Shares)	3,618	3,540	3,599	3,522
Net income (loss) per share – diluted (in Dollars per share)	$ 0.32	$ 0.07	$ 0.52	$ (0.25)
Weighted average shares outstanding – diluted (in Shares)	3,743	3,633	3,733	3,522

Unaudited Consolidated Stateme5

Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 1,257	$ 249	$ 2,043	$ (863)
Other comprehensive income (loss):
Foreign currency translation gain (loss) adjustments	21	29	144	(88)
Other comprehensive income (loss)	21	29	144	(88)
Total comprehensive income (loss)	$ 1,278	$ 278	$ 2,187	$ (951)

Unaudited Consolidated Stateme6

Unaudited Consolidated Statement of Shareholders' Equity - 9 months ended Jun. 30, 2016 - 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)	$ 2,043			2,043
Other comprehensive income	144				144
Stock-based compensation	300		300
Restricted Stock Award, Forfeitures		(19)
Restricted stock issuance	1	$ 1
Restricted stock issuance (in Shares)		105
Stock Issued During Period, Value, Employee Stock Purchase Plan	72		72
Stock Issued During Period, Shares, Employee Stock Purchase Plans		14
Dividends, Cash	1,250			1,250
Balance at Jun. 30, 2016	$ 20,900	$ 38	$ 12,621	$ 16,482	$ (8,241)
Balance (in Shares) at Jun. 30, 2016	3,788	3,788

Unaudited Consolidated Stateme7

Unaudited Consolidated Statement of Shareholders' Equity (Parentheticals) - $ / shares	1 Months Ended	9 Months Ended
	Dec. 17, 2013	Jun. 30, 2016
Statement of Stockholders' Equity [Abstract]
Dividends per share	$ 0.11	$ 0.33

Unaudited Consolidated Stateme8

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows provided by (used in) operating activities:
Net income (loss)	$ 2,043	$ (863)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	445	385
Amortization of intangibles	97	97
Loss on sale of fixed assets, net	(23)	(54)
Foreign exchange loss	118	216
Non-cash changes in accounts receivable	103	(4)
Non-cash changes in inventory	431	240
Stock-based compensation expense on stock options and restricted stock awards	300	285
Deferred income taxes	(22)	27
Increase in cash surrender value of life insurance	(78)	(59)
Changes in operating assets and liabilities:
Increase in accounts receivable	(1,017)	(5,439)
Increase in inventories	(325)	(497)
(Increase) decrease in refundable income taxes	43	(187)
Increase in other current assets	(415)	(506)
(Increase) decrease in other assets	63	(119)
Increase (decrease) in accounts payable and accrued expenses	(708)	3,691
Increase (decrease) in deferred revenue	707	(619)
Decrease in pension and retirement plans liability	(124)	(58)
Increase (decrease) in income taxes payable	840	(72)
Increase (decrease) in other long term liabilities	6	(69)
Net cash provided by (used in) operating activities	2,530	(3,497)
Cash flows used in investing activities:
Life insurance premiums paid	(161)	(193)
Purchases of property, equipment and improvements	(486)	(398)
Net cash used in investing activities	(647)	(591)
Cash flows provided by (used in) financing activities:
Dividends paid	(1,250)	(1,212)
Proceeds from issuance of shares under equity compensation plans	72	105
Net cash used in financing activities	(1,178)	(1,107)
Effects of exchange rate on cash	(296)	(807)
Net increase (decrease) in cash and cash equivalents	409	(6,002)
Cash and cash equivalents, beginning of period	11,181	16,448
Cash and cash equivalents, end of period	11,590	10,446
Supplementary cash flow information:
Cash paid for income taxes	37	72
Cash paid for interest	$ 85	$ 85

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 2016
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	9 Months Ended
	Jun. 30, 2016
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	9 Months Ended
	Jun. 30, 2016
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 For the nine months ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 (Amounts in thousands except per share data) Net income (loss) $ 1,257 $ 249 $ 2,043 $ (863 ) Less: net income (loss) attributable to nonvested common stock 59 9 84 — Net income (loss) attributable to common stockholders $ 1,198 $ 240 $ 1,959 $ (863 ) Weighted average total shares outstanding – basic 3,797 3,674 3,754 3,522 Less: weighted average non-vested shares outstanding 179 134 155 — Weighted average number of common shares outstanding – basic 3,618 3,540 3,599 3,522 Potential common shares from non-vested stock awards and the assumed exercise of stock options 125 93 134 — Weighted average common shares outstanding – diluted 3,743 3,633 3,733 3,522 Net income (loss) per share – basic $ 0.33 $ 0.07 $ 0.54 $ (0.25 ) Net income (loss) per share – diluted $ 0.32 $ 0.07 $ 0.52 $ (0.25 ) All anti-dilutive securities, including certain stock options, are excluded from the diluted income (loss) per share computation. For the nine months ended June 30, 2016 and 2015, 31,000 and 28,000 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, 130,000 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 nine months ended June 30, 2015 and their inclusion would have been anti-dilutive. For the three months ended June 30, 2016 and 2015, 30,000 and 12,000 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.

Inventories

Inventories	9 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following: June 30, 2016 September 30, 2015 (Amounts in thousands) Raw materials $ 1,459 $ 1,788 Work-in-process 528 387 Finished goods 3,628 3,574 Total $ 5,615 $ 5,749 Finished goods includes inventory that has been shipped, but for which all revenue recognition criteria has not been met, of approximately $0.1 million as of June 30, 2016 and September 30, 2015 . Total inventory balances in the table above are shown net of reserves for obsolescence of approximately $4.5 million and $4.1 million as of June 30, 2016 and September 30, 2015 , respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: June 30, 2016 September 30, 2015 (Amounts in thousands) Cumulative effect of foreign currency translation $ (2,681 ) $ (2,825 ) Cumulative unrealized loss on pension liability (5,560 ) (5,560 ) Accumulated other comprehensive loss $ (8,241 ) $ (8,385 )

Pension and Retirement Plans

Pension and Retirement Plans	9 Months Ended
	Jun. 30, 2016
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 nine months ended June 30, 2016 . 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 June 30, 2016 2015 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 9 $ — $ 9 $ 13 $ — $ 13 Interest cost 146 11 157 157 13 170 Expected return on plan assets (92 ) — (92 ) (105 ) — (105 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 44 (1 ) 43 49 (1 ) 48 Net periodic benefit cost $ 107 $ 10 $ 117 $ 114 $ 12 $ 126 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 For the Nine Months Ended June 30, 2016 2015 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 27 $ — $ 27 $ 42 $ — $ 42 Interest cost 442 32 474 476 39 515 Expected return on plan assets (281 ) — (281 ) (317 ) — (317 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 134 (3 ) 131 151 (2 ) 149 Net periodic benefit cost $ 322 $ 29 $ 351 $ 352 $ 37 $ 389 Post Retirement: Service cost $ — $ 20 $ 20 $ — $ 26 $ 26 Interest cost — 32 32 — 33 33 Amortization of net gain — (60 ) (60 ) — (38 ) (38 ) Net periodic cost (benefit) $ — $ (8 ) $ (8 ) $ — $ 21 $ 21 The fair value of the assets held by the U.K. pension plan by asset category are as follows: Fair Values as of June 30, 2016 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 $ 344 $ 344 $ — $ — $ 324 $ 324 $ — $ — Pooled Funds 7,616 — 7,616 — 8,977 — 8,977 — Total Plan Assets $ 7,960 $ 344 $ 7,616 $ — $ 9,301 $ 324 $ 8,977 $ —

Segment Information

Segment Information	9 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segment Information	Segment Information The following table presents certain operating segment information. Technology Solutions Segment For the three months ended June 30, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 2016 Sales: Product $ 3,354 $ 1,074 $ 1,805 $ 14,112 $ 16,991 $ 20,345 Service 2,248 2,892 325 1,102 4,319 6,567 Total sales 5,602 3,966 2,130 15,214 21,310 26,912 Income (loss) from operations 1,585 (139 ) (10 ) 417 268 1,853 Assets 17,486 13,306 2,641 14,966 30,913 48,399 Capital expenditures 28 30 60 23 113 141 Depreciation and amortization 59 36 39 57 132 191 2015 Sales: Product $ 1,844 $ 1,289 $ 601 $ 11,962 $ 13,852 $ 15,696 Service 2,085 3,535 377 594 4,506 6,591 Total sales 3,929 4,824 978 12,556 18,358 22,287 Income (loss) from operations 871 196 (558 ) 186 (176 ) 695 Assets 16,034 12,854 2,955 14,139 29,948 45,982 Capital expenditures 4 30 — 142 172 176 Depreciation and amortization 56 39 10 46 95 151 Technology Solutions Segment For the nine months ended June 30, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 2016 Sales: Product $ 8,165 $ 4,365 $ 5,150 $ 40,640 $ 50,155 $ 58,320 Service 3,712 11,691 777 3,227 15,695 19,407 Total sales 11,877 16,056 5,927 43,867 65,850 77,727 Income (loss) from operations 661 1,042 (58 ) 1,429 2,413 3,074 Assets 17,486 13,306 2,641 14,966 30,913 48,399 Capital expenditures 193 149 93 51 293 486 Depreciation and amortization 176 118 77 171 366 542 2015 Sales: Product $ 6,823 $ 5,229 $ 3,062 $ 30,430 $ 38,721 $ 45,544 Service 2,445 10,753 873 1,979 13,605 16,050 Total sales 9,268 15,982 3,935 32,409 52,326 61,594 Income (loss) from operations (633 ) 445 (583 ) (94 ) (232 ) (865 ) Assets 16,034 12,854 2,955 14,139 29,948 45,982 Capital expenditures 50 205 1 142 348 398 Depreciation and amortization 187 130 27 138 295 482 Income (loss) from operations consists of sales less cost of sales, engineering and development expenses, and 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 and nine months ended June 30, 2016 , and 2015 . For the three months ended June 30, For the nine months ended June 30, 2016 2015 2016 2015 Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues (dollars in millions) Customer A $ 3.6 13 % $ 4.4 20 % $ 12.0 15 % $ 9.1 15 % Customer B $ 3.1 11 % $ 2.9 13 % $ 10.7 14 % $ 9.5 15 % Customer C $ 2.8 10 % $ 1.9 9 % $ 4.5 6 % $ 2.2 4 % In addition, accounts receivable from Customer A totaled approximately $2.9 million , or 14% , and approximately $1.1 million , or 6% , of total consolidated accounts receivable as of June 30, 2016 and September 30, 2015, respectively. Accounts receivable from Customer B totaled approximately $2.8 million , or 14% , and approximately $7.9 million , or 39% , of total consolidated accounts receivable as of June 30, 2016 and September 30, 2015, respectively. Accounts receivable from Customer C totaled approximately $1.0 million , or 5% , and approximately $0.8 million , or 4% , of total consolidated accounts receivable as of June 30, 2016 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 these customers as of June 30, 2016 . No other customers accounted for 10% or more of total consolidated accounts receivable as of June 30, 2016 or September 30, 2015.

Dividend

Dividend	9 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Dividend	Dividends On May 11, 2016, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on June 10, 2016 to shareholders of record as of May 27, 2016, the record date. On February 16, 2016, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on March 11, 2016 to shareholders of record as of February 26, 2016, the record date. 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)	9 Months Ended
	Jun. 30, 2016
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 August 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 on 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 on 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 years 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 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 on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This updated Topic 842 affects any entity that enters into a lease (as that term is defined in this Update), with some specified scope exemptions. The guidance in this Update supersedes Topic 840, Leases. The amendments in this Topic are effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The Company has not yet assessed the potential impact of implementing this ASU on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08 (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) to clarify the implementation guidance on principal versus agent considerations. The amendments in this update provides additional guidance on indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customer and does not change the core principle of previously issued guidance. The amendments in this Topic are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Company does not expect the implementation of this ASU to have a material impact on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 (Topic 718), Compensation - Stock Compensation, Improvements to Employee Share-Based Payment Accounting to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Additionally, the amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. This should not result in a change in practice because the guidance that is being superseded was never effective. 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 Company does not expect the implementation of this ASU to have a material impact on our consolidated financial statements.

Earnings Per Share of Common 18

Earnings Per Share of Common Stock (Tables)	9 Months Ended
	Jun. 30, 2016
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 For the nine months ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 (Amounts in thousands except per share data) Net income (loss) $ 1,257 $ 249 $ 2,043 $ (863 ) Less: net income (loss) attributable to nonvested common stock 59 9 84 — Net income (loss) attributable to common stockholders $ 1,198 $ 240 $ 1,959 $ (863 ) Weighted average total shares outstanding – basic 3,797 3,674 3,754 3,522 Less: weighted average non-vested shares outstanding 179 134 155 — Weighted average number of common shares outstanding – basic 3,618 3,540 3,599 3,522 Potential common shares from non-vested stock awards and the assumed exercise of stock options 125 93 134 — Weighted average common shares outstanding – diluted 3,743 3,633 3,733 3,522 Net income (loss) per share – basic $ 0.33 $ 0.07 $ 0.54 $ (0.25 ) Net income (loss) per share – diluted $ 0.32 $ 0.07 $ 0.52 $ (0.25 )

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories consist of the following: June 30, 2016 September 30, 2015 (Amounts in thousands) Raw materials $ 1,459 $ 1,788 Work-in-process 528 387 Finished goods 3,628 3,574 Total $ 5,615 $ 5,749

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The components of accumulated other comprehensive loss are as follows: June 30, 2016 September 30, 2015 (Amounts in thousands) Cumulative effect of foreign currency translation $ (2,681 ) $ (2,825 ) Cumulative unrealized loss on pension liability (5,560 ) (5,560 ) Accumulated other comprehensive loss $ (8,241 ) $ (8,385 )

Pension and Retirement Plans (T

Pension and Retirement Plans (Tables)	9 Months Ended
	Jun. 30, 2016
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 June 30, 2016 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 $ 344 $ 344 $ — $ — $ 324 $ 324 $ — $ — Pooled Funds 7,616 — 7,616 — 8,977 — 8,977 — Total Plan Assets $ 7,960 $ 344 $ 7,616 $ — $ 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 June 30, 2016 2015 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 9 $ — $ 9 $ 13 $ — $ 13 Interest cost 146 11 157 157 13 170 Expected return on plan assets (92 ) — (92 ) (105 ) — (105 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 44 (1 ) 43 49 (1 ) 48 Net periodic benefit cost $ 107 $ 10 $ 117 $ 114 $ 12 $ 126 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 For the Nine Months Ended June 30, 2016 2015 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 27 $ — $ 27 $ 42 $ — $ 42 Interest cost 442 32 474 476 39 515 Expected return on plan assets (281 ) — (281 ) (317 ) — (317 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 134 (3 ) 131 151 (2 ) 149 Net periodic benefit cost $ 322 $ 29 $ 351 $ 352 $ 37 $ 389 Post Retirement: Service cost $ — $ 20 $ 20 $ — $ 26 $ 26 Interest cost — 32 32 — 33 33 Amortization of net gain — (60 ) (60 ) — (38 ) (38 ) Net periodic cost (benefit) $ — $ (8 ) $ (8 ) $ — $ 21 $ 21

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Jun. 30, 2016
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 June 30, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 2016 Sales: Product $ 3,354 $ 1,074 $ 1,805 $ 14,112 $ 16,991 $ 20,345 Service 2,248 2,892 325 1,102 4,319 6,567 Total sales 5,602 3,966 2,130 15,214 21,310 26,912 Income (loss) from operations 1,585 (139 ) (10 ) 417 268 1,853 Assets 17,486 13,306 2,641 14,966 30,913 48,399 Capital expenditures 28 30 60 23 113 141 Depreciation and amortization 59 36 39 57 132 191 2015 Sales: Product $ 1,844 $ 1,289 $ 601 $ 11,962 $ 13,852 $ 15,696 Service 2,085 3,535 377 594 4,506 6,591 Total sales 3,929 4,824 978 12,556 18,358 22,287 Income (loss) from operations 871 196 (558 ) 186 (176 ) 695 Assets 16,034 12,854 2,955 14,139 29,948 45,982 Capital expenditures 4 30 — 142 172 176 Depreciation and amortization 56 39 10 46 95 151 Technology Solutions Segment For the nine months ended June 30, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 2016 Sales: Product $ 8,165 $ 4,365 $ 5,150 $ 40,640 $ 50,155 $ 58,320 Service 3,712 11,691 777 3,227 15,695 19,407 Total sales 11,877 16,056 5,927 43,867 65,850 77,727 Income (loss) from operations 661 1,042 (58 ) 1,429 2,413 3,074 Assets 17,486 13,306 2,641 14,966 30,913 48,399 Capital expenditures 193 149 93 51 293 486 Depreciation and amortization 176 118 77 171 366 542 2015 Sales: Product $ 6,823 $ 5,229 $ 3,062 $ 30,430 $ 38,721 $ 45,544 Service 2,445 10,753 873 1,979 13,605 16,050 Total sales 9,268 15,982 3,935 32,409 52,326 61,594 Income (loss) from operations (633 ) 445 (583 ) (94 ) (232 ) (865 ) Assets 16,034 12,854 2,955 14,139 29,948 45,982 Capital expenditures 50 205 1 142 348 398 Depreciation and amortization 187 130 27 138 295 482
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 and nine months ended June 30, 2016 , and 2015 . For the three months ended June 30, For the nine months ended June 30, 2016 2015 2016 2015 Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues (dollars in millions) Customer A $ 3.6 13 % $ 4.4 20 % $ 12.0 15 % $ 9.1 15 % Customer B $ 3.1 11 % $ 2.9 13 % $ 10.7 14 % $ 9.5 15 % Customer C $ 2.8 10 % $ 1.9 9 % $ 4.5 6 % $ 2.2 4 %

Earnings Per Share of Common 23

Earnings Per Share of Common Stock (Detail) - shares	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Weighted Average Number Diluted Shares Outstanding Adjustment	30,000	12,000	31,000	28,000
Anti-dilutive securities excluded from diluted income per share calculation				130,000

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		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net income (loss)	$ 1,257	$ 249	$ 2,043	$ (863)
Less: Net income attributable to nonvested common stock (in Dollars)	59	9	84	0
Net income attributable to common stockholders (in Dollars)	$ 1,198	$ 240	$ 1,959	$ (863)
Weighted average total shares outstanding – basic	3,797	3,674	3,754	3,522
Less: weighted average non-vested shares outstanding	179	134	155	0
Weighted average number of common shares outstanding – basic	3,618	3,540	3,599	3,522
Potential common shares from non-vested stock awards and the assumed exercise of stock options	125	93	134	0
Weighted average common shares outstanding – diluted	3,743	3,633	3,733	3,522
Net income (loss) per share – basic (in Dollars per share)	$ 0.33	$ 0.07	$ 0.54	$ (0.25)
Net income (loss) per share – diluted (in Dollars per share)	$ 0.32	$ 0.07	$ 0.52	$ (0.25)

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Millions	Jun. 30, 2016	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	$ 0.1
Reservce for obsolescence	$ 5	$ 4

Inventories (Detail) - Inventor

Inventories (Detail) - Inventories - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 1,459	$ 1,788
Work-in-process	528	387
Finished goods	3,628	3,574
Total	$ 5,615	$ 5,749

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Loss (Detail) - Components of Accumulated Other Comprehensive Loss - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Equity [Abstract]
Cumulative effect of foreign currency translation	$ (2,681)	$ (2,825)
Cumulative unrealized loss on pension liability	(5,560)	(5,560)
Accumulated other comprehensive loss	$ (8,241)	$ (8,385)

Pension and Retirement Plans (D

Pension and Retirement Plans (Detail)	9 Months Ended	12 Months Ended
	Jun. 30, 2016	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		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Pension:
Pension:
Service cost	$ 9	$ 13	$ 27	$ 42
Interest cost	157	170	474	515
Expected return on plan assets	(92)	(105)	(281)	(317)
Amortization of:
Prior service gain	0	0	0	0
Amortization of net gain	43	48	131	149
Net periodic benefit cost	117	126	351	389
Post Retirement:
Pension:
Service cost	7	9	20	26
Interest cost	11	11	32	33
Amortization of:
Amortization of net gain	(21)	(13)	(60)	(38)
Net periodic benefit cost	(3)	7	(8)	21
Foreign | Pension:
Pension:
Service cost	9	13	27	42
Interest cost	146	157	442	476
Expected return on plan assets	(92)	(105)	(281)	(317)
Amortization of:
Prior service gain	0	0	0	0
Amortization of net gain	44	49	134	151
Net periodic benefit cost	107	114	322	352
Foreign | Post Retirement:
Pension:
Service cost	0	0	0	0
Interest cost	0	0	0	0
Amortization of:
Amortization of net gain	0	0	0	0
Net periodic benefit cost	0	0	0	0
U.S. | Pension:
Pension:
Service cost	0	0	0	0
Interest cost	11	13	32	39
Expected return on plan assets	0	0	0	0
Amortization of:
Prior service gain	0	0	0	0
Amortization of net gain	(1)	(1)	(3)	(2)
Net periodic benefit cost	10	12	29	37
U.S. | Post Retirement:
Pension:
Service cost	7	9	20	26
Interest cost	11	11	32	33
Amortization of:
Amortization of net gain	(21)	(13)	(60)	(38)
Net periodic benefit cost	$ (3)	$ 7	$ (8)	$ 21

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	Jun. 30, 2016	Sep. 30, 2015
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 7,960	$ 9,301
Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	344	324
Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	7,616	8,977
Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	344	324
Level 1 | Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	344	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	7,616	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	7,616	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		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Sales:
Product	$ 20,345	$ 15,696	$ 58,320	$ 45,544
Service	6,567	6,591	19,407	16,050
Total sales	26,912	22,287	77,727	61,594
Income (loss) from operations	1,853	695	3,074	(865)
Assets	48,399	45,982	48,399	45,982	$ 46,996
Capital expenditures	141	176	486	398
Depreciation and amortization	191	151	542	482
High Performance Products Segment
Sales:
Product	3,354	1,844	8,165	6,823
Service	2,248	2,085	3,712	2,445
Total sales	5,602	3,929	11,877	9,268
Income (loss) from operations	1,585	871	661	(633)
Assets	17,486	16,034	17,486	16,034
Capital expenditures	28	4	193	50
Depreciation and amortization	59	56	176	187
Germany
Sales:
Product	1,074	1,289	4,365	5,229
Service	2,892	3,535	11,691	10,753
Total sales	3,966	4,824	16,056	15,982
Income (loss) from operations	(139)	196	1,042	445
Assets	13,306	12,854	13,306	12,854
Capital expenditures	30	30	149	205
Depreciation and amortization	36	39	118	130
United Kingdom
Sales:
Product	1,805	601	5,150	3,062
Service	325	377	777	873
Total sales	2,130	978	5,927	3,935
Income (loss) from operations	(10)	(558)	(58)	(583)
Assets	2,641	2,955	2,641	2,955
Capital expenditures	60	0	93	1
Depreciation and amortization	39	10	77	27
U.S.
Sales:
Product	14,112	11,962	40,640	30,430
Service	1,102	594	3,227	1,979
Total sales	15,214	12,556	43,867	32,409
Income (loss) from operations	417	186	1,429	(94)
Assets	14,966	14,139	14,966	14,139
Capital expenditures	23	142	51	142
Depreciation and amortization	57	46	171	138
Total
Sales:
Product	16,991	13,852	50,155	38,721
Service	4,319	4,506	15,695	13,605
Total sales	21,310	18,358	65,850	52,326
Income (loss) from operations	268	(176)	2,413	(232)
Assets	30,913	29,948	30,913	29,948
Capital expenditures	113	172	293	348
Depreciation and amortization	$ 132	$ 95	$ 366	$ 295

Segment Information (Detail) 32

Segment Information (Detail) - Major customers - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Segment Reporting Information [Line Items]
Segment Reporting, Disclosure of Major Customers			0.1	.1
percent of accounts receivable			10.00%		10.00%
Customer A
Segment Reporting Information [Line Items]
Amount (in Dollars)	$ 3.6	$ 4.4	$ 12	$ 9.1
% of Total Revenues	13.00%	20.00%	15.00%	15.00%
Accounts Receivable, Gross	$ 3		$ 3		$ 1
concentration risk, percentage, accounts receivable	14.00%		14.00%		6.00%
Customer B
Segment Reporting Information [Line Items]
Amount (in Dollars)	$ 3.1	$ 2.9	$ 10.7	$ 9.5
% of Total Revenues	11.00%	13.00%	14.00%	15.00%
Accounts Receivable, Gross	$ 3		$ 3		$ 8
concentration risk, percentage, accounts receivable	14.00%		14.00%		39.00%
Customer C
Segment Reporting Information [Line Items]
Amount (in Dollars)	$ 2.8	$ 1.9	$ 4.5	$ 2.2
% of Total Revenues	10.00%	9.00%	6.00%	4.00%
Accounts Receivable, Gross	$ 1		$ 1		$ 1
concentration risk, percentage, accounts receivable	5.00%		5.00%		4.00%

Dividend (Detail)

Dividend (Detail) - $ / shares	1 Months Ended	9 Months Ended
	Dec. 17, 2013	Jun. 30, 2016
Equity [Abstract]
Dividends per share	$ 0.11	$ 0.33