CSP (CSPI) 10-Q 24 May 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2017	May 05, 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		3,921,083
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	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 11,038	$ 13,103
Accounts receivable, net of allowances of $270 and $240	23,364	18,997
Insurance Settlements Receivable, Current	954	567
Inventories, net	6,489	5,580
Deferred Costs, Current	1,718	635
Deferred income taxes	1,331	1,331
Other current assets	1,435	1,586
Total current assets	46,329	41,799
Property, equipment and improvements, net	1,553	1,680
Other assets:
Intangibles, net	227	287
Deferred Costs, Noncurrent	26	18
Deferred income taxes	1,668	1,723
Cash surrender value of life insurance	3,216	3,015
Other assets	178	185
Total other assets	5,315	5,228
Total assets	53,197	48,707
Current liabilities:
Accounts payable and accrued expenses	14,548	11,932
Deferred revenue	7,277	4,704
Pension and retirement plans	518	581
Income taxes payable	53	166
Total current liabilities	22,396	17,383
Pension and retirement plans	12,977	13,441
Other long term liabilities	225	228
Total liabilities	35,598	31,052
Commitments and contingencies
Shareholders’ equity:
Common stock, $.01 par value per share; authorized, 7,500 shares; issued and outstanding 3,918 and 3,821 shares, respectively	40	39
Additional paid-in capital	13,278	12,924
Retained earnings	16,150	16,623
Accumulated other comprehensive loss	(11,869)	(11,931)
Total shareholders’ equity	17,599	17,655
Total liabilities and shareholders’ equity	$ 53,197	$ 48,707

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
Statement of Financial Position [Abstract]
Allowances (in Dollars)	$ 270	$ 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	3,918	3,821
Common stock, shares outstanding	3,918	3,821

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Sales:
Product	$ 18,684	$ 20,972	$ 33,322	$ 37,975
Services	6,632	6,167	11,910	12,840
Total sales	25,316	27,139	45,232	50,815
Cost of sales:
Product	15,878	17,054	28,103	31,290
Services	3,743	3,752	6,982	8,002
Total cost of sales	19,621	20,806	35,085	39,292
Gross profit	5,695	6,333	10,147	11,523
Operating expenses:
Engineering and development	573	790	1,169	1,589
Selling, general and administrative	4,500	4,665	8,458	8,713
Total operating expenses	5,073	5,455	9,627	10,302
Operating income	622	878	520	1,221
Other income (expense):
Foreign exchange gain (loss)	28	(103)	82	(63)
Other expense, net	(11)	(14)	(21)	(26)
Total other income (expense)	17	(117)	61	(89)
Income before income taxes	639	761	581	1,132
Income tax expense	211	258	196	346
Net income	428	503	385	786
Net income attributable to common stockholders	$ 410	$ 480	$ 357	$ 756
Net income (loss) per share – basic (in Dollars per share)	$ 0.11	$ 0.13	$ 0.10	$ 0.21
Weighted average shares outstanding – basic (in Shares)	3,724	3,609	3,697	3,589
Net income (loss) per share – diluted (in Dollars per share)	$ 0.11	$ 0.13	$ 0.09	$ 0.20
Weighted average shares outstanding – diluted (in Shares)	3,847	3,730	3,807	3,728

Unaudited Consolidated Stateme5

Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 428	$ 503	$ 385	$ 786
Other comprehensive income:
Foreign currency translation gain adjustments	(76)	125	62	123
Other comprehensive income (loss)	(76)	125	62	123
Total comprehensive income	$ 352	$ 628	$ 447	$ 909

Unaudited Consolidated Stateme6

Unaudited Consolidated Statement of Shareholders' Equity - 6 months ended Mar. 31, 2017 - 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	$ 385			385
Other comprehensive income	62				62
Exercise of Stock Options	15		15
Exercise of Stock Options (in shares)		5
Stock-based compensation	249		249
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures		(8)
Restricted stock issuance	1	$ 1
Restricted stock issuance (in Shares)		89
Stock Issued During Period, Value, Employee Stock Purchase Plan	90		90
Stock Issued During Period, Shares, Employee Stock Purchase Plans		11
Dividends, Cash	858			858
Balance at Mar. 31, 2017	$ 17,599	$ 40	$ 13,278	$ 16,150	$ (11,869)
Balance (in Shares) at Mar. 31, 2017	3,918	3,918

Unaudited Consolidated Stateme7

Unaudited Consolidated Statement of Shareholders' Equity (Parentheticals) - $ / shares	3 Months Ended	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2017
Statement of Stockholders' Equity [Abstract]
Dividends per share	$ 0.11	$ 0.22

Unaudited Consolidated Stateme8

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows (used in) provided by operating activities:
Net income	$ 385	$ 786
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	268	286
Amortization of intangibles	61	65
Loss on sale of fixed assets, net	(5)	0
Foreign exchange gain (loss)	(82)	63
Non-cash changes in accounts receivable	69	136
Non-cash changes in inventory	81	226
Stock-based compensation expense on stock options and restricted stock awards	249	181
Deferred income taxes	(4)	23
Increase in cash surrender value of life insurance	(50)	(50)
Changes in operating assets and liabilities:
Increase in accounts receivable	(5,207)	(3,008)
Payments for (Proceeds from) Life Insurance Policies	413	0
(Increase) decrease in inventories	(1,028)	444
Increase (Decrease) in Deferred Charges	(1,131)	493
(Increase) decrease in refundable income taxes	(3)	44
Increase in other current assets	(278)	(548)
Decrease in other assets	0	25
Increase in accounts payable and accrued expenses	2,821	1,530
Increase (decrease) in deferred revenue	2,786	(715)
Decrease in pension and retirement plans liability	(23)	(164)
Increase (decrease) in income taxes payable	(104)	268
Increase in other long term liabilities	4	4
Net cash (used in) provided by operating activities	(768)	89
Cash flows used in investing activities:
Life insurance premiums paid	(150)	(161)
Purchases of property, equipment and improvements	(178)	(345)
Net cash used in investing activities	(328)	(506)
Cash flows used in financing activities:
Dividends paid	(858)	(833)
Proceeds from issuance of shares under equity compensation plans	106	73
Net cash used in financing activities	(752)	(760)
Effects of exchange rate on cash	(217)	16
Net decrease in cash and cash equivalents	(2,065)	(1,161)
Cash and cash equivalents, beginning of period	13,103	11,181
Cash and cash equivalents, end of period	11,038	10,020
Supplementary cash flow information:
Cash paid for income taxes	272	28
Cash paid for interest	$ 75	$ 85

Basis of Presentation

Basis of Presentation	6 Months Ended
	Mar. 31, 2017
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	6 Months Ended
	Mar. 31, 2017
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, the calculation of liabilities related to deferred compensation and retirement plans 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	6 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Earnings Per Share of Common Stock	Earnings Per Share of Common Stock Basic net income per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income 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 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 attributable to common stockholders are as follows: For the three months ended For the six months ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 (Amounts in thousands except per share data) Net income $ 428 $ 503 $ 385 $ 786 Less: net income attributable to nonvested common stock 18 23 28 30 Net income attributable to common stockholders $ 410 $ 480 $ 357 $ 756 Weighted average total shares outstanding – basic 3,888 3,782 3,986 3,732 Less: weighted average non-vested shares outstanding 164 173 289 143 Weighted average number of common shares outstanding – basic 3,724 3,609 3,697 3,589 Potential common shares from non-vested stock awards and the assumed exercise of stock options 123 121 110 139 Weighted average common shares outstanding – diluted 3,847 3,730 3,807 3,728 Net income per share – basic $ 0.11 $ 0.13 $ 0.10 $ 0.21 Net income per share – diluted $ 0.11 $ 0.13 $ 0.09 $ 0.20 All anti-dilutive securities, including certain stock options, are excluded from the diluted income per share computation. For the three and six months ended March 31, 2017, there were no shares subject to stock options excluded from the diluted income per share calculation because their inclusion would have been anti-dilutive as their exercise price exceeded fair value. For the three and six months ended March 31, 2016, 30,000 and 33,000 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	6 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following: March 31, 2017 September 30, 2016 (Amounts in thousands) Raw materials $ 1,552 $ 1,658 Work-in-process 819 814 Finished goods 4,118 3,108 Total $ 6,489 $ 5,580 Finished goods includes inventory that has been shipped, but for which all revenue recognition criteria has not been met, of approximately $0.1 million and $0.1 million as of March 31, 2017 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 March 31, 2017 and September 30, 2016 , respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: March 31, 2017 September 30, 2016 (Amounts in thousands) Cumulative effect of foreign currency translation $ (2,745 ) $ (2,807 ) Cumulative unrealized loss on pension liability (9,124 ) (9,124 ) Accumulated other comprehensive loss $ (11,869 ) $ (11,931 )

Pension and Retirement Plans

Pension and Retirement Plans	6 Months Ended
	Mar. 31, 2017
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 some of its employees. In the U.S., the Company provides benefits through supplemental retirement plans to certain 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 since September 2009. 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 March 31, 2017 2016 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 10 $ — $ 10 $ 9 $ — $ 9 Interest cost 93 11 104 146 11 157 Expected return on plan assets (65 ) — (65 ) (92 ) — (92 ) Amortization of: Prior service gain — — — — — — Amortization of net gain (loss) 91 (1 ) 90 44 (1 ) 43 Net periodic benefit cost $ 129 $ 10 $ 139 $ 107 $ 10 $ 117 Post Retirement: Service cost $ — $ 10 $ 10 $ — $ 7 $ 7 Interest cost — 10 10 — 11 11 Amortization of net gain (loss) — 4 4 — (20 ) (20 ) Net periodic cost (benefit) $ — $ 24 $ 24 $ — $ (2 ) $ (2 ) For the Six Months Ended March 31, 2017 2016 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 19 $ — $ 19 $ 18 $ — $ 18 Interest cost 188 22 210 297 22 319 Expected return on plan assets (131 ) — (131 ) (190 ) — (190 ) Amortization of: Prior service gain — — — — — — Amortization of net gain (loss) 182 (2 ) 180 89 (2 ) 87 Net periodic benefit cost $ 258 $ 20 $ 278 $ 214 $ 20 $ 234 Post Retirement: Service cost $ — $ 19 $ 19 $ — $ 14 $ 14 Interest cost — 22 22 — 21 21 Amortization of net gain (loss) — 8 8 — (40 ) (40 ) Net periodic cost (benefit) $ — $ 49 $ 49 $ — $ (5 ) $ (5 ) The fair value of the assets held by the U.K. pension plan by asset category are as follows: Fair Values as of March 31, 2017 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 $ 73 $ 73 $ — $ — $ 86 $ 86 $ — $ — Pooled funds 7,445 — 7,445 — 7,543 — 7,543 — Total plan assets $ 7,518 $ 73 $ 7,445 $ — $ 7,629 $ 86 $ 7,543 $ —

Segment Information

Segment Information	6 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Information	Segment Information The following table presents certain operating segment information. Technology Solutions Segment For the three months ended March 31, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 2017 Sales: Product $ 1,993 $ 2,319 $ 2,162 $ 12,210 $ 16,691 $ 18,684 Service 1,427 4,069 209 927 5,205 6,632 Total sales 3,420 6,388 2,371 13,137 21,896 25,316 Income (loss) from operations 368 261 (35 ) 28 254 622 Assets 16,667 17,513 2,864 16,153 36,530 53,197 Capital expenditures 41 43 — 22 65 106 Depreciation and amortization 55 53 2 62 117 172 2016 Sales: Product $ 2,861 $ 1,389 $ 1,352 $ 15,370 $ 18,111 $ 20,972 Service 597 4,027 262 1,281 5,570 6,167 Total sales 3,458 5,416 1,614 16,651 23,681 27,139 Income (loss) from operations (501 ) 718 (1 ) 662 1,379 878 Assets 15,353 12,311 2,791 17,793 32,895 48,248 Capital expenditures 17 52 31 55 138 155 Depreciation and amortization 60 42 33 56 131 191 Technology Solutions Segment For the six months ended March 31, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 2017 Sales: Product $ 3,520 $ 4,399 $ 2,863 $ 22,540 $ 29,802 $ 33,322 Service 2,651 7,128 313 1,818 9,259 11,910 Total sales 6,171 11,527 3,176 24,358 39,061 45,232 Income (loss) from operations 414 158 (241 ) 189 106 520 Assets 16,667 17,513 2,864 16,153 36,530 53,197 Capital expenditures 58 87 — 33 120 178 Depreciation and amortization 110 91 5 123 219 329 2016 Sales: Product $ 4,811 $ 3,291 $ 3,345 $ 26,528 $ 33,164 $ 37,975 Service 1,464 8,799 452 2,125 11,376 12,840 Total sales 6,275 12,090 3,797 28,653 44,540 50,815 Income (loss) from operations (924 ) 1,181 (48 ) 1,012 2,145 1,221 Assets 15,353 12,311 2,791 17,793 32,895 48,248 Capital expenditures 165 119 33 28 180 345 Depreciation and amortization 117 82 38 114 234 351 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 six months ended March 31, 2017 , and 2016 . For the three months ended March 31, For the six months ended March 31, 2017 2016 2017 2016 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 $ 3.7 15 % $ 5.6 20 % $ 6.6 14 % $ 8.4 17 % Customer B $ 3.8 15 % $ 3.8 14 % $ 6.0 13 % $ 7.6 15 % In addition, accounts receivable from Customer A totaled approximately $1.7 million , or 7% , and approximately $3.0 million , or 15% , of total consolidated accounts receivable as of March 31, 2017 and September 30, 2016, respectively. Accounts receivable from Customer B totaled approximately $8.7 million , or 36% , and approximately $2.5 million , or 13% , of total consolidated accounts receivable as of March 31, 2017 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 March 31, 2017 . No other customers accounted for 10% or more of total consolidated accounts receivable as of March 31, 2017 or September 30, 2016.

Dividend

Dividend	6 Months Ended
	Mar. 31, 2017
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. On February 23, 2017, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on March 17, 2017 to shareholders of record as of March 3, 2017, the record date.

Recent Accounting Pronouncement

Recent Accounting Pronouncements (Notes)	6 Months Ended
	Mar. 31, 2017
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)	6 Months Ended
	Mar. 31, 2017
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 attributable to common stockholders are as follows: For the three months ended For the six months ended March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 (Amounts in thousands except per share data) Net income $ 428 $ 503 $ 385 $ 786 Less: net income attributable to nonvested common stock 18 23 28 30 Net income attributable to common stockholders $ 410 $ 480 $ 357 $ 756 Weighted average total shares outstanding – basic 3,888 3,782 3,986 3,732 Less: weighted average non-vested shares outstanding 164 173 289 143 Weighted average number of common shares outstanding – basic 3,724 3,609 3,697 3,589 Potential common shares from non-vested stock awards and the assumed exercise of stock options 123 121 110 139 Weighted average common shares outstanding – diluted 3,847 3,730 3,807 3,728 Net income per share – basic $ 0.11 $ 0.13 $ 0.10 $ 0.21 Net income per share – diluted $ 0.11 $ 0.13 $ 0.09 $ 0.20

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories consist of the following: March 31, 2017 September 30, 2016 (Amounts in thousands) Raw materials $ 1,552 $ 1,658 Work-in-process 819 814 Finished goods 4,118 3,108 Total $ 6,489 $ 5,580

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The components of accumulated other comprehensive loss are as follows: March 31, 2017 September 30, 2016 (Amounts in thousands) Cumulative effect of foreign currency translation $ (2,745 ) $ (2,807 ) Cumulative unrealized loss on pension liability (9,124 ) (9,124 ) Accumulated other comprehensive loss $ (11,869 ) $ (11,931 )

Pension and Retirement Plans (T

Pension and Retirement Plans (Tables)	6 Months Ended
	Mar. 31, 2017
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 March 31, 2017 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 $ 73 $ 73 $ — $ — $ 86 $ 86 $ — $ — Pooled funds 7,445 — 7,445 — 7,543 — 7,543 — Total plan assets $ 7,518 $ 73 $ 7,445 $ — $ 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 March 31, 2017 2016 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 10 $ — $ 10 $ 9 $ — $ 9 Interest cost 93 11 104 146 11 157 Expected return on plan assets (65 ) — (65 ) (92 ) — (92 ) Amortization of: Prior service gain — — — — — — Amortization of net gain (loss) 91 (1 ) 90 44 (1 ) 43 Net periodic benefit cost $ 129 $ 10 $ 139 $ 107 $ 10 $ 117 Post Retirement: Service cost $ — $ 10 $ 10 $ — $ 7 $ 7 Interest cost — 10 10 — 11 11 Amortization of net gain (loss) — 4 4 — (20 ) (20 ) Net periodic cost (benefit) $ — $ 24 $ 24 $ — $ (2 ) $ (2 ) For the Six Months Ended March 31, 2017 2016 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 19 $ — $ 19 $ 18 $ — $ 18 Interest cost 188 22 210 297 22 319 Expected return on plan assets (131 ) — (131 ) (190 ) — (190 ) Amortization of: Prior service gain — — — — — — Amortization of net gain (loss) 182 (2 ) 180 89 (2 ) 87 Net periodic benefit cost $ 258 $ 20 $ 278 $ 214 $ 20 $ 234 Post Retirement: Service cost $ — $ 19 $ 19 $ — $ 14 $ 14 Interest cost — 22 22 — 21 21 Amortization of net gain (loss) — 8 8 — (40 ) (40 ) Net periodic cost (benefit) $ — $ 49 $ 49 $ — $ (5 ) $ (5 )

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Mar. 31, 2017
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 March 31, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 2017 Sales: Product $ 1,993 $ 2,319 $ 2,162 $ 12,210 $ 16,691 $ 18,684 Service 1,427 4,069 209 927 5,205 6,632 Total sales 3,420 6,388 2,371 13,137 21,896 25,316 Income (loss) from operations 368 261 (35 ) 28 254 622 Assets 16,667 17,513 2,864 16,153 36,530 53,197 Capital expenditures 41 43 — 22 65 106 Depreciation and amortization 55 53 2 62 117 172 2016 Sales: Product $ 2,861 $ 1,389 $ 1,352 $ 15,370 $ 18,111 $ 20,972 Service 597 4,027 262 1,281 5,570 6,167 Total sales 3,458 5,416 1,614 16,651 23,681 27,139 Income (loss) from operations (501 ) 718 (1 ) 662 1,379 878 Assets 15,353 12,311 2,791 17,793 32,895 48,248 Capital expenditures 17 52 31 55 138 155 Depreciation and amortization 60 42 33 56 131 191 Technology Solutions Segment For the six months ended March 31, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 2017 Sales: Product $ 3,520 $ 4,399 $ 2,863 $ 22,540 $ 29,802 $ 33,322 Service 2,651 7,128 313 1,818 9,259 11,910 Total sales 6,171 11,527 3,176 24,358 39,061 45,232 Income (loss) from operations 414 158 (241 ) 189 106 520 Assets 16,667 17,513 2,864 16,153 36,530 53,197 Capital expenditures 58 87 — 33 120 178 Depreciation and amortization 110 91 5 123 219 329 2016 Sales: Product $ 4,811 $ 3,291 $ 3,345 $ 26,528 $ 33,164 $ 37,975 Service 1,464 8,799 452 2,125 11,376 12,840 Total sales 6,275 12,090 3,797 28,653 44,540 50,815 Income (loss) from operations (924 ) 1,181 (48 ) 1,012 2,145 1,221 Assets 15,353 12,311 2,791 17,793 32,895 48,248 Capital expenditures 165 119 33 28 180 345 Depreciation and amortization 117 82 38 114 234 351
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 six months ended March 31, 2017 , and 2016 . For the three months ended March 31, For the six months ended March 31, 2017 2016 2017 2016 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 $ 3.7 15 % $ 5.6 20 % $ 6.6 14 % $ 8.4 17 % Customer B $ 3.8 15 % $ 3.8 14 % $ 6.0 13 % $ 7.6 15 %

Earnings Per Share of Common 23

Earnings Per Share of Common Stock (Detail) - shares	3 Months Ended	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2016
Earnings Per Share [Abstract]
Weighted Average Number Diluted Shares Outstanding Adjustment	30,000	33,000

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		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net income	$ 428	$ 503	$ 385	$ 786
Less: Net income attributable to nonvested common stock (in Dollars)	18	23	28	30
Net income attributable to common stockholders (in Dollars)	$ 410	$ 480	$ 357	$ 756
Weighted average total shares outstanding – basic	3,888	3,782	3,986	3,732
Less: weighted average non-vested shares outstanding	164	173	289	143
Weighted average number of common shares outstanding – basic	3,724	3,609	3,697	3,589
Potential common shares from non-vested stock awards and the assumed exercise of stock options	123	121	110	139
Weighted average common shares outstanding – diluted	3,847	3,730	3,807	3,728
Net income (loss) per share – basic (in Dollars per share)	$ 0.11	$ 0.13	$ 0.10	$ 0.21
Net income (loss) per share – diluted (in Dollars per share)	$ 0.11	$ 0.13	$ 0.09	$ 0.20

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Sep. 30, 2016
Inventory Disclosure [Abstract]
Finished goods inventory that has been shipped, but for which all revenue recognition criteria has not been met	$ 0.1	$ 0.1
Reservce for obsolescence	$ 3.1	$ 3

Inventories (Detail) - Inventor

Inventories (Detail) - Inventories - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 1,552	$ 1,658
Work-in-process	819	814
Finished goods	4,118	3,108
Total	$ 6,489	$ 5,580

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Loss (Detail) - Components of Accumulated Other Comprehensive Loss - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
Equity [Abstract]
Cumulative effect of foreign currency translation	$ (2,745)	$ (2,807)
Cumulative unrealized loss on pension liability	(9,124)	(9,124)
Accumulated other comprehensive loss	$ (11,869)	$ (11,931)

Pension and Retirement Plans (D

Pension and Retirement Plans (Detail)	6 Months Ended	12 Months Ended
	Mar. 31, 2017	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		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Pension:
Pension:
Service cost	$ 10	$ 9	$ 19	$ 18
Interest cost	104	157	210	319
Expected return on plan assets	(65)	(92)	(131)	(190)
Amortization of:
Prior service gain	0	0	0	0
Amortization of net gain (loss)	90	43	180	87
Net periodic benefit cost	139	117	278	234
Post Retirement:
Pension:
Service cost	10	7	19	14
Interest cost	10	11	22	21
Amortization of:
Amortization of net gain (loss)	4	(20)	8	(40)
Net periodic benefit cost	24	(2)	49	(5)
Foreign | Pension:
Pension:
Service cost	10	9	19	18
Interest cost	93	146	188	297
Expected return on plan assets	(65)	(92)	(131)	(190)
Amortization of:
Prior service gain	0	0	0	0
Amortization of net gain (loss)	91	44	182	89
Net periodic benefit cost	129	107	258	214
Foreign | Post Retirement:
Pension:
Service cost	0	0	0	0
Interest cost	0	0	0	0
Amortization of:
Amortization of net gain (loss)	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	11	22	22
Expected return on plan assets	0	0	0	0
Amortization of:
Prior service gain	0	0	0	0
Amortization of net gain (loss)	(1)	(1)	(2)	(2)
Net periodic benefit cost	10	10	20	20
U.S. | Post Retirement:
Pension:
Service cost	10	7	19	14
Interest cost	10	11	22	21
Amortization of:
Amortization of net gain (loss)	4	(20)	8	(40)
Net periodic benefit cost	$ 24	$ (2)	$ 49	$ (5)

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	Mar. 31, 2017	Sep. 30, 2016
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 7,518	$ 7,629
Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	73	86
Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	7,445	7,543
Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	73	86
Level 1 | Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	73	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	7,445	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	7,445	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		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2016
Sales:
Product	$ 18,684	$ 20,972	$ 33,322	$ 37,975
Service	6,632	6,167	11,910	12,840
Total sales	25,316	27,139	45,232	50,815
Income (loss) from operations	622	878	520	1,221
Assets	53,197	48,248	53,197	48,248	$ 48,707
Capital expenditures	106	155	178	345
Depreciation and amortization	172	191	329	351
High Performance Products Segment
Sales:
Product	1,993	2,861	3,520	4,811
Service	1,427	597	2,651	1,464
Total sales	3,420	3,458	6,171	6,275
Income (loss) from operations	368	(501)	414	(924)
Assets	16,667	15,353	16,667	15,353
Capital expenditures	41	17	58	165
Depreciation and amortization	55	60	110	117
Germany
Sales:
Product	2,319	1,389	4,399	3,291
Service	4,069	4,027	7,128	8,799
Total sales	6,388	5,416	11,527	12,090
Income (loss) from operations	261	718	158	1,181
Assets	17,513	12,311	17,513	12,311
Capital expenditures	43	52	87	119
Depreciation and amortization	53	42	91	82
United Kingdom
Sales:
Product	2,162	1,352	2,863	3,345
Service	209	262	313	452
Total sales	2,371	1,614	3,176	3,797
Income (loss) from operations	(35)	(1)	(241)	(48)
Assets	2,864	2,791	2,864	2,791
Capital expenditures	0	31	0	33
Depreciation and amortization	2	33	5	38
U.S.
Sales:
Product	12,210	15,370	22,540	26,528
Service	927	1,281	1,818	2,125
Total sales	13,137	16,651	24,358	28,653
Income (loss) from operations	28	662	189	1,012
Assets	16,153	17,793	16,153	17,793
Capital expenditures	22	55	33	28
Depreciation and amortization	62	56	123	114
Total
Sales:
Product	16,691	18,111	29,802	33,164
Service	5,205	5,570	9,259	11,376
Total sales	21,896	23,681	39,061	44,540
Income (loss) from operations	254	1,379	106	2,145
Assets	36,530	32,895	36,530	32,895
Capital expenditures	65	138	120	180
Depreciation and amortization	$ 117	$ 131	$ 219	$ 234

Segment Information (Detail) 32

Segment Information (Detail) - Major customers - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	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)	$ 3.7	$ 5.6	$ 6.6	$ 8.4
% of Total Revenues	15.00%	20.00%	14.00%	17.00%
Accounts Receivable, Gross	$ 1.7		$ 1.7		$ 3
concentration risk, percentage, accounts receivable	7.00%		7.00%		15.00%
Customer B
Segment Reporting Information [Line Items]
Amount (in Dollars)	$ 3.8	$ 3.8	$ 6	$ 7.6
% of Total Revenues	15.00%	14.00%	13.00%	15.00%
Accounts Receivable, Gross	$ 8.7		$ 8.7		$ 2.5
concentration risk, percentage, accounts receivable	36.00%		36.00%		13.00%

Dividend (Detail)

Dividend (Detail) - $ / shares	3 Months Ended	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2017
Equity [Abstract]
Dividends per share	$ 0.11	$ 0.22