CSP (CSPI) 10-Q 23 Feb 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2016	Feb. 13, 2017
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		3,906,083
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, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 15,039	$ 13,103
Accounts receivable, net of allowances of $239 and $240	16,309	18,997
Insurance Settlements Receivable, Current	685	567
Inventories, net	6,539	5,580
Deferred Costs, Current	2,107	635
Refundable income taxes	145	0
Deferred income taxes	1,331	1,331
Other current assets	1,347	1,586
Total current assets	43,502	41,799
Property, equipment and improvements, net	1,586	1,680
Other assets:
Intangibles, net	256	287
Deferred Costs, Noncurrent	399	18
Deferred income taxes	1,655	1,723
Cash surrender value of life insurance	3,127	3,015
Other assets	177	185
Total other assets	5,614	5,228
Total assets	50,702	48,707
Current liabilities:
Accounts payable and accrued expenses	14,927	11,932
Deferred revenue	4,374	4,704
Pension and retirement plans	522	581
Income taxes payable	0	166
Total current liabilities	19,823	17,383
Pension and retirement plans	12,802	13,441
Other long term liabilities	219	228
Total liabilities	32,844	31,052
Commitments and contingencies
Shareholders’ equity:
Common stock, $.01 par value per share; authorized, 7,500 shares; issued and outstanding 3,821 and 3,821 shares, respectively	39	39
Additional paid-in capital	13,032	12,924
Retained earnings	16,580	16,623
Accumulated other comprehensive loss	(11,793)	(11,931)
Total shareholders’ equity	17,858	17,655
Total liabilities and shareholders’ equity	$ 50,702	$ 48,707

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Statement of Financial Position [Abstract]
Allowances (in Dollars)	$ 239	$ 240
Common stock par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	7,500	7,500
Common stock, shares issued	3,821	3,821
Common stock, shares outstanding	3,821	3,821

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Sales:
Product	$ 14,638	$ 17,003
Services	5,278	6,673
Total sales	19,916	23,676
Cost of sales:
Product	12,225	14,236
Services	3,239	4,250
Total cost of sales	15,464	18,486
Gross profit	4,452	5,190
Operating expenses:
Engineering and development	596	799
Selling, general and administrative	3,958	4,048
Total operating expenses	4,554	4,847
Operating income (loss)	(102)	343
Other Income:
Foreign exchange gain	54	39
Other expense, net	(10)	(11)
Total other income	44	28
Income (loss) before income taxes	(58)	371
Income tax expense (benefit)	(15)	88
Net income (loss)	(43)	283
Net income (loss) attributable to common stockholders	$ (43)	$ 274
Net income (loss) per share – basic (in Dollars per share)	$ (0.01)	$ 0.08
Weighted average shares outstanding – basic (in Shares)	3,671	3,569
Net income (loss) per share – diluted (in Dollars per share)	$ (0.01)	$ 0.07
Weighted average shares outstanding – diluted (in Shares)	3,671	3,726

Unaudited Consolidated Stateme5

Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (43)	$ 283
Other comprehensive income:
Foreign currency translation gain adjustments	138	2
Other comprehensive income	138	2
Total comprehensive income	$ 95	$ 285

Unaudited Consolidated Stateme6

Unaudited Consolidated Statement of Shareholders' Equity - 3 months ended Dec. 31, 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, 2016	$ 17,655	$ 39	$ 12,924	$ 16,623	$ (11,931)
Balance (in Shares) at Sep. 30, 2016	3,821	3,821
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ (43)			(43)
Other comprehensive income	138				138
Stock-based compensation	108		108
Balance at Dec. 31, 2016	$ 17,858	$ 39	$ 13,032	$ 16,580	$ (11,793)
Balance (in Shares) at Dec. 31, 2016	3,821	3,821

Unaudited Consolidated Stateme7

Unaudited Consolidated Statement of Shareholders' Equity (Parentheticals) - $ / shares	1 Months Ended	3 Months Ended
	Dec. 17, 2013	Dec. 31, 2016
Statement of Stockholders' Equity [Abstract]
Dividends per share	$ 0.11	$ 0

Unaudited Consolidated Stateme8

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows provided by (used in) operating activities:
Net income (loss)	$ (43)	$ 283
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	126	129
Amortization of intangibles	31	32
Foreign exchange loss	(54)	(39)
Non-cash changes in accounts receivable	41	(29)
Non-cash changes in inventory	62	116
Stock-based compensation expense on stock options and restricted stock awards	108	80
Deferred income taxes	(4)	23
Increase in cash surrender value of life insurance	(46)	(24)
Changes in operating assets and liabilities:
Decrease in accounts receivable	2,039	1,424
Payments for (Proceeds from) Life Insurance Policies	413	0
Increase in inventories	(1,079)	(284)
Increase (Decrease) in Deferred Charges	(1,938)	(116)
(Increase) decrease in refundable income taxes	(148)	41
Increase in other current assets	(190)	(264)
Increase (decrease) in accounts payable and accrued expenses	3,244	(675)
Decrease in deferred revenue	(86)	(1,078)
Decrease in pension and retirement plans liability	(27)	(53)
Increase (decrease) in income taxes payable	(159)	19
Increase in other long term liabilities	2	2
Net cash provided by (used in) operating activities	2,292	(413)
Cash flows used in investing activities:
Purchases of property, equipment and improvements	(72)	(189)
Net cash used in investing activities	(72)	(189)
Cash flows provided by (used in) financing activities:
Net cash provided by (used in) financing activities	0	0
Effects of exchange rate on cash	(284)	(48)
Net increase (decrease) in cash and cash equivalents	1,936	(650)
Cash and cash equivalents, beginning of period	13,103	11,181
Cash and cash equivalents, end of period	15,039	10,531
Supplementary cash flow information:
Cash paid for income taxes	165	23
Cash paid for interest	75	0
Dividends Accrued	$ 0	$ 414

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 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, 2016 . Reclassifications Certain reclassifications have been made to prior year financial statements to conform to current period financial statement presentation with no effect on previously reported financial positions, results of operations or cash flows. The reclassification was to break out deferred costs separately from inventory on the balance sheet.

Use of Estimates

Use of Estimates	3 Months Ended
	Dec. 31, 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	3 Months Ended
	Dec. 31, 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 December 31, 2016 December 31, 2015 (Amounts in thousands except per share data) Net income (loss) $ (43 ) $ 283 Less: net income (loss) attributable to nonvested common stock — 9 Net income (loss) attributable to common stockholders $ (43 ) $ 274 Weighted average total shares outstanding – basic 3,671 3,684 Less: weighted average non-vested shares outstanding — 115 Weighted average number of common shares outstanding – basic 3,671 3,569 Potential common shares from non-vested stock awards and the assumed exercise of stock options — 157 Weighted average common shares outstanding – diluted 3,671 3,726 Net income (loss) per share – basic $ (0.01 ) $ 0.08 Net income (loss) per share – diluted $ (0.01 ) $ 0.07 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, 2016 and 2015, 0 and 35,000 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, 149,000 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, 2016 and their inclusion would have been anti-dilutive.

Inventories

Inventories	3 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following: December 31, 2016 September 30, 2016 (Amounts in thousands) Raw materials $ 1,472 $ 1,658 Work-in-process 1,028 814 Finished goods 4,039 3,108 Total $ 6,539 $ 5,580 Finished goods includes inventory that has been shipped, but for which all revenue recognition criteria has not been met, of approximately $0.2 million and $0.1 million as of December 31, 2016 and September 30, 2016 , respectively. Total inventory balances in the table above are shown net of reserves for obsolescence of approximately $3.1 million and $3.0 million as of December 31, 2016 and September 30, 2016 , respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: December 31, 2016 September 30, 2016 (Amounts in thousands) Cumulative effect of foreign currency translation $ (2,669 ) $ (2,807 ) Cumulative unrealized loss on pension liability (9,124 ) (9,124 ) Accumulated other comprehensive loss $ (11,793 ) $ (11,931 )

Pension and Retirement Plans

Pension and Retirement Plans	3 Months Ended
	Dec. 31, 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, 2016 and 2015 and for the three months ended December 31, 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 December 31, 2016 2015 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 10 $ — $ 10 $ 9 $ — $ 9 Interest cost 93 11 104 151 11 162 Expected return on plan assets (65 ) — (65 ) (97 ) — (97 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 91 (1 ) 90 45 (1 ) 44 Net periodic benefit cost $ 129 $ 10 $ 139 $ 108 $ 10 $ 118 Post Retirement: Service cost $ — $ 10 $ 10 $ — $ 7 $ 7 Interest cost — 10 10 — 11 11 Amortization of net gain (loss) — 4 4 — (21 ) (21 ) Net periodic cost (benefit) $ — $ 24 $ 24 $ — $ (3 ) $ (3 ) 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, 2016 September 30, 2016 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 $ 76 $ 76 $ — $ — $ 86 $ 86 $ — $ — Pooled funds 7,087 — 7,087 — 7,543 — 7,543 — Total plan assets $ 7,163 $ 76 $ 7,087 $ — $ 7,629 $ 86 $ 7,543 $ —

Segment Information

Segment Information	3 Months Ended
	Dec. 31, 2016
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) 2016 Sales: Product $ 1,527 $ 2,080 $ 701 $ 10,330 $ 13,111 $ 14,638 Service 1,224 3,059 104 891 4,054 5,278 Total sales 2,751 5,139 805 11,221 17,165 19,916 Income (loss) from operations 46 (102 ) (206 ) 160 (148 ) (102 ) Assets 17,766 15,532 2,873 14,531 32,936 50,702 Capital expenditures 17 44 — 11 55 72 Depreciation and amortization 55 38 3 61 102 157 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 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 months ended December 31, 2016 , and 2015 . For the three months ended December 31, 2016 2015 Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues (dollars in millions) Customer A $ 2.9 14 % $ 2.9 12 % Customer B $ 2.1 11 % $ 3.8 16 % In addition, accounts receivable from Customer A totaled approximately $1.7 million , or 10% , and approximately $3.0 million , or 15% , of total consolidated accounts receivable as of December 31, 2016 and September 30, 2016, respectively. Accounts receivable from Customer B totaled approximately $2.8 million , or 17% , and approximately $2.5 million , or 13% , of total consolidated accounts receivable as of December 31, 2016 and September 30, 2016, 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 December 31, 2016 . No other customers accounted for 10% or more of total consolidated accounts receivable as of December 31, 2016 or September 30, 2016.

Dividend

Dividend	3 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Dividend	Dividends On January 12, 2017, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on February 8, 2017 to shareholders of record as of January 27, 2017, the record date.

Recent Accounting Pronouncement

Recent Accounting Pronouncements (Notes)	3 Months Ended
	Dec. 31, 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. While the Company has begun its assessment of the new standard, it has not yet selected a transition method nor has it determined the effect the standard will have on its ongoing financial reporting. 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 required retrospective application, with early adoption permitted. The implementation of this ASU has not had 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 was effective for fiscal years beginning after December 15, 2015, and required retrospective application, with early adoption permitted. The implementation of this ASU has not had 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 or 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. In January 2017, the FASB issued ASU No. 2017-04 (Topic 350), Intangibles - Goodwill and Other (Simplifying the Test for Goodwill Impairment) to simplify the subsequent measurement of goodwill. The amendments in this update provides for the elimination of Step 2, which requires an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) including those procedures that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. The amendments in this update defines an impairment loss as the excess of the carrying amount of the intangible assets to the fair value of a reporting unit. The amendments in this Topic are effective for financial statements issued for annual periods beginning after December 15, 2019, and early adoption is permitted for interim or annual goodwill impairment tests performed on testing after January 1, 2017. 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)	3 Months Ended
	Dec. 31, 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 December 31, 2016 December 31, 2015 (Amounts in thousands except per share data) Net income (loss) $ (43 ) $ 283 Less: net income (loss) attributable to nonvested common stock — 9 Net income (loss) attributable to common stockholders $ (43 ) $ 274 Weighted average total shares outstanding – basic 3,671 3,684 Less: weighted average non-vested shares outstanding — 115 Weighted average number of common shares outstanding – basic 3,671 3,569 Potential common shares from non-vested stock awards and the assumed exercise of stock options — 157 Weighted average common shares outstanding – diluted 3,671 3,726 Net income (loss) per share – basic $ (0.01 ) $ 0.08 Net income (loss) per share – diluted $ (0.01 ) $ 0.07

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories consist of the following: December 31, 2016 September 30, 2016 (Amounts in thousands) Raw materials $ 1,472 $ 1,658 Work-in-process 1,028 814 Finished goods 4,039 3,108 Total $ 6,539 $ 5,580

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The components of accumulated other comprehensive loss are as follows: December 31, 2016 September 30, 2016 (Amounts in thousands) Cumulative effect of foreign currency translation $ (2,669 ) $ (2,807 ) Cumulative unrealized loss on pension liability (9,124 ) (9,124 ) Accumulated other comprehensive loss $ (11,793 ) $ (11,931 )

Pension and Retirement Plans (T

Pension and Retirement Plans (Tables)	3 Months Ended
	Dec. 31, 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 December 31, 2016 September 30, 2016 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 $ 76 $ 76 $ — $ — $ 86 $ 86 $ — $ — Pooled funds 7,087 — 7,087 — 7,543 — 7,543 — Total plan assets $ 7,163 $ 76 $ 7,087 $ — $ 7,629 $ 86 $ 7,543 $ —
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, 2016 2015 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 10 $ — $ 10 $ 9 $ — $ 9 Interest cost 93 11 104 151 11 162 Expected return on plan assets (65 ) — (65 ) (97 ) — (97 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 91 (1 ) 90 45 (1 ) 44 Net periodic benefit cost $ 129 $ 10 $ 139 $ 108 $ 10 $ 118 Post Retirement: Service cost $ — $ 10 $ 10 $ — $ 7 $ 7 Interest cost — 10 10 — 11 11 Amortization of net gain (loss) — 4 4 — (21 ) (21 ) Net periodic cost (benefit) $ — $ 24 $ 24 $ — $ (3 ) $ (3 )

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Dec. 31, 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 December 31, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 2016 Sales: Product $ 1,527 $ 2,080 $ 701 $ 10,330 $ 13,111 $ 14,638 Service 1,224 3,059 104 891 4,054 5,278 Total sales 2,751 5,139 805 11,221 17,165 19,916 Income (loss) from operations 46 (102 ) (206 ) 160 (148 ) (102 ) Assets 17,766 15,532 2,873 14,531 32,936 50,702 Capital expenditures 17 44 — 11 55 72 Depreciation and amortization 55 38 3 61 102 157 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
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, 2016 , and 2015 . For the three months ended December 31, 2016 2015 Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues (dollars in millions) Customer A $ 2.9 14 % $ 2.9 12 % Customer B $ 2.1 11 % $ 3.8 16 %

Earnings Per Share of Common 23

Earnings Per Share of Common Stock (Detail) - shares	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Weighted Average Number Diluted Shares Outstanding Adjustment	0	35,000
Anti-dilutive securities excluded from diluted income per share calculation		149,000

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, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Net income (loss)	$ (43)	$ 283
Less: Net income attributable to nonvested common stock (in Dollars)	0	9
Net income attributable to common stockholders (in Dollars)	$ (43)	$ 274
Weighted average total shares outstanding – basic	3,671	3,684
Less: weighted average non-vested shares outstanding	0	115
Weighted average number of common shares outstanding – basic	3,671	3,569
Potential common shares from non-vested stock awards and the assumed exercise of stock options	0	157
Weighted average common shares outstanding – diluted	3,671	3,726
Net income (loss) per share – basic (in Dollars per share)	$ (0.01)	$ 0.08
Net income (loss) per share – diluted (in Dollars per share)	$ (0.01)	$ 0.07

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Inventory Disclosure [Abstract]
Finished goods inventory that has been shipped, but for which all revenue recognition criteria has not been met	$ 0.2	$ 0.1
Reservce for obsolescence	$ 3	$ 3

Inventories (Detail) - Inventor

Inventories (Detail) - Inventories - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 1,472	$ 1,658
Work-in-process	1,028	814
Finished goods	4,039	3,108
Total	$ 6,539	$ 5,580

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Loss (Detail) - Components of Accumulated Other Comprehensive Loss - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Equity [Abstract]
Cumulative effect of foreign currency translation	$ (2,669)	$ (2,807)
Cumulative unrealized loss on pension liability	(9,124)	(9,124)
Accumulated other comprehensive loss	$ (11,793)	$ (11,931)

Pension and Retirement Plans (D

Pension and Retirement Plans (Detail)	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
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, 2016	Dec. 31, 2015
Pension:
Pension:
Service cost	$ 10	$ 9
Interest cost	104	162
Expected return on plan assets	(65)	(97)
Amortization of:
Prior service gain	0	0
Amortization of net gain	90	44
Net periodic benefit cost	139	118
Post Retirement:
Pension:
Service cost	10	7
Interest cost	10	11
Amortization of:
Amortization of net gain	4	(21)
Net periodic benefit cost	24	(3)
Foreign | Pension:
Pension:
Service cost	10	9
Interest cost	93	151
Expected return on plan assets	(65)	(97)
Amortization of:
Prior service gain	0	0
Amortization of net gain	91	45
Net periodic benefit cost	129	108
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	11
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	10
U.S. | Post Retirement:
Pension:
Service cost	10	7
Interest cost	10	11
Amortization of:
Amortization of net gain	4	(21)
Net periodic benefit cost	$ 24	$ (3)

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, 2016	Sep. 30, 2016
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 7,163	$ 7,629
Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	76	86
Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	7,087	7,543
Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	76	86
Level 1 | Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	76	86
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	7,087	7,543
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	7,087	7,543
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, 2016	Dec. 31, 2015	Sep. 30, 2016
Sales:
Product	$ 14,638	$ 17,003
Service	5,278	6,673
Total sales	19,916	23,676
Income (loss) from operations	(102)	343
Assets	50,702	45,117	$ 48,707
Capital expenditures	72	189
Depreciation and amortization	157	161
High Performance Products Segment
Sales:
Product	1,527	1,950
Service	1,224	867
Total sales	2,751	2,817
Income (loss) from operations	46	(423)
Assets	17,766	16,099
Capital expenditures	17	148
Depreciation and amortization	55	57
Germany
Sales:
Product	2,080	1,902
Service	3,059	4,772
Total sales	5,139	6,674
Income (loss) from operations	(102)	463
Assets	15,532	12,977
Capital expenditures	44	67
Depreciation and amortization	38	40
United Kingdom
Sales:
Product	701	1,993
Service	104	190
Total sales	805	2,183
Income (loss) from operations	(206)	(47)
Assets	2,873	2,810
Capital expenditures	0	2
Depreciation and amortization	3	5
U.S.
Sales:
Product	10,330	11,158
Service	891	844
Total sales	11,221	12,002
Income (loss) from operations	160	350
Assets	14,531	13,231
Capital expenditures	11	(28)
Depreciation and amortization	61	59
Total
Sales:
Product	13,111	15,053
Service	4,054	5,806
Total sales	17,165	20,859
Income (loss) from operations	(148)	766
Assets	32,936	29,018
Capital expenditures	55	41
Depreciation and amortization	$ 102	$ 104

Segment Information (Detail) 32

Segment Information (Detail) - Major customers - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
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)	$ 2.9	$ 2.9
% of Total Revenues	14.00%	12.00%
Accounts Receivable, Gross	$ 2		$ 3
concentration risk, percentage, accounts receivable	10.00%		15.00%
Customer B
Segment Reporting Information [Line Items]
Amount (in Dollars)	$ 2.1	$ 3.8
% of Total Revenues	11.00%	16.00%
Accounts Receivable, Gross	$ 3		$ 3
concentration risk, percentage, accounts receivable	17.00%		13.00%

Dividend (Detail)

Dividend (Detail) - $ / shares	1 Months Ended	3 Months Ended
	Dec. 17, 2013	Dec. 31, 2016
Equity [Abstract]
Dividends per share	$ 0.11	$ 0