CSP (CSPI) 10-Q 14 Feb 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2017	Feb. 13, 2018
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		3,983,084
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, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 18,190	$ 13,885
Accounts receivable, net of allowances of $240 and $261	19,935	27,630
Insurance Settlements Receivable, Current	1,169	772
Inventories	7,158	5,971
Deferred Costs, Current	2,156	929
Other current assets	3,105	1,139
Total current assets	51,713	50,326
Property, equipment and improvements, net	1,482	1,508
Other assets:
Intangibles, net	137	167
Deferred Costs, Noncurrent	647	609
Deferred income taxes	2,350	2,827
Cash surrender value of life insurance	3,395	3,300
Other assets	193	191
Total other assets	6,722	7,094
Total assets	59,917	58,928
Current liabilities:
Accounts payable and accrued expenses	21,313	18,845
Deferred revenue	5,624	6,202
Pension and retirement plans	539	534
Income taxes payable	316	442
Total current liabilities	27,792	26,023
Pension and retirement plans	11,914	11,818
Accrued Income Taxes, Noncurrent	561	0
Other long term liabilities	160	86
Total liabilities	40,427	37,927
Commitments and contingencies
Shareholders’ equity:
Common stock, $.01 par value per share; authorized, 7,500 shares; issued and outstanding 3,974 and 3,935 shares, respectively	40	40
Additional paid-in capital	13,847	13,717
Retained earnings	15,770	17,407
Accumulated other comprehensive loss	(10,167)	(10,163)
Total shareholders’ equity	19,490	21,001
Total liabilities and shareholders’ equity	$ 59,917	$ 58,928

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Statement of Financial Position [Abstract]
Allowances (in Dollars)	$ 240	$ 261
Common stock par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	7,500	7,500
Common stock, shares issued	3,974	3,935
Common stock, shares outstanding	3,974	3,935

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Sales:
Product	$ 15,643	$ 14,638
Services	6,356	5,278
Total sales	21,999	19,916
Cost of sales:
Product	13,030	12,225
Services	3,836	3,239
Total cost of sales	16,866	15,464
Gross profit	5,133	4,452
Operating expenses:
Engineering and development	698	596
Selling, general and administrative	4,428	3,958
Total operating expenses	5,126	4,554
Operating income (loss)	7	(102)
Other income (expense):
Foreign exchange gain (loss)	(93)	54
Other expense, net	(12)	(10)
Total other income (expense)	(105)	44
Loss before income taxes	(98)	(58)
Income tax expense (benefit)	1,102	(15)
Net loss	(1,200)	(43)
Net loss attributable to common stockholders	$ (1,200)	$ (43)
Net income (loss) per share – basic (in Dollars per share)	$ (0.32)	$ (0.01)
Weighted average shares outstanding – basic (in Shares)	3,768	3,671
Net income (loss) per share – diluted (in Dollars per share)	$ (0.32)	$ (0.01)
Weighted average shares outstanding – diluted (in Shares)	3,768	3,671

Unaudited Consolidated Stateme5

Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,200)	$ (43)
Other comprehensive income (loss):
Foreign currency translation gain (loss) adjustments	(4)	138
Other comprehensive income (loss)	(4)	138
Total comprehensive income (loss)	$ (1,204)	$ 95

Unaudited Consolidated Stateme6

Unaudited Consolidated Statement of Shareholders' Equity - 3 months ended Dec. 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, 2017	$ 21,001	$ 40	$ 13,717	$ 17,407	$ (10,163)
Balance (in Shares) at Sep. 30, 2017	3,935	3,935
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (1,200)			(1,200)
Other comprehensive loss	(4)
Exercise of Stock Options	9		9
Exercise of Stock Options (in shares)		1
Stock-based compensation	121		121
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures		(13)
Restricted stock issuance	0	$ 0
Restricted stock issuance (in Shares)		51
Dividends, Cash	437			437
Balance at Dec. 31, 2017	$ 19,490	$ 40	$ 13,847	$ 15,770	$ (10,167)
Balance (in Shares) at Dec. 31, 2017	3,974	3,974

Unaudited Consolidated Stateme7

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

Unaudited Consolidated Stateme8

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows provided by operating activities:
Net loss	$ (1,200)	$ (43)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	141	126
Amortization of intangibles	30	31
Loss on sale of fixed assets, net	(5)	0
Foreign exchange gain (loss)	93	(54)
Non-cash changes in accounts receivable	(8)	41
Non-cash changes in inventories	127	62
Stock-based compensation expense on stock options and restricted stock awards	121	108
Deferred income taxes	490	(4)
Increase in cash surrender value of life insurance	(29)	(46)
Changes in operating assets and liabilities:
Decrease in accounts receivable	7,423	2,039
Payments for (Proceeds from) Life Insurance Policies	0	413
Increase in inventories	(1,299)	(1,079)
Increase (Decrease) in Deferred Charges	(1,219)	(1,938)
(Increase) decrease in refundable income taxes	1	(148)
Increase in other current assets	(1,939)	(190)
Increase in accounts payable and accrued expenses	1,990	3,244
Decrease in deferred revenue	(652)	(86)
Decrease in pension and retirement plans liabilities	(27)	(27)
Increase (decrease) in income taxes payable	435	(159)
Increase in other long term liabilities	71	2
Net cash provided by operating activities	4,554	2,292
Cash flows used in investing activities:
Life insurance premiums paid	(66)	0
Purchases of property, equipment and improvements	(109)	(72)
Net cash used in investing activities	(175)	(72)
Cash flows provided by financing activities:
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options	9	0
Net cash provided by financing activities	9	0
Effects of exchange rate on cash	(83)	(284)
Net increase in cash and cash equivalents	4,305	1,936
Cash and cash equivalents, beginning of period	13,885	13,103
Cash and cash equivalents, end of period	18,190	15,039
Supplementary cash flow information:
Cash paid for income taxes	95	165
Cash paid for interest	72	75
Dividends Accrued	$ 437	$ 0

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 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, 2017 .

Use of Estimates

Use of Estimates	3 Months Ended
	Dec. 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	3 Months Ended
	Dec. 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 December 31, 2017 December 31, 2016 (Amounts in thousands except per share data) Net loss $ (1,200 ) $ (43 ) Less: net income attributable to nonvested common stock — — Net loss attributable to common stockholders $ (1,200 ) $ (43 ) Weighted average total shares outstanding – basic 3,768 3,671 Less: weighted average non-vested shares outstanding — — Weighted average number of common shares outstanding – basic 3,768 3,671 Potential common shares from non-vested stock awards and the assumed exercise of stock options — — Weighted average common shares outstanding – diluted 3,768 3,671 Net loss per share – basic $ (0.32 ) $ (0.01 ) Net loss per share – diluted $ (0.32 ) $ (0.01 ) Non-vested restricted stock awards of 170,000 and 149,000 shares were excluded from the diluted income per share calculation for the three months ended December 31, 2017 and December 31, 2016, respectively, as there was a net loss and their inclusion would have been anti-dilutive.

Inventories

Inventories	3 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following: December 31, 2017 September 30, 2017 (Amounts in thousands) Raw materials $ 1,395 $ 1,334 Work-in-process 206 260 Finished goods 5,557 4,377 Total $ 7,158 $ 5,971 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 $0.4 million as of December 31, 2017 and September 30, 2017 , respectively. Total inventory balances in the table above are shown net of reserves for obsolescence of approximately $3.2 million and $3.1 million as of December 31, 2017 and September 30, 2017 , respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: December 31, 2017 September 30, 2017 (Amounts in thousands) Cumulative effect of foreign currency translation $ (3,218 ) $ (3,214 ) Cumulative unrealized loss on pension liability (6,949 ) (6,949 ) Accumulated other comprehensive loss $ (10,167 ) $ (10,163 )

Pension and Retirement Plans

Pension and Retirement Plans	3 Months Ended
	Dec. 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 December 31, 2017 2016 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 10 $ — $ 10 $ 10 $ — $ 10 Interest cost 116 7 123 93 11 104 Expected return on plan assets (75 ) — (75 ) (65 ) — (65 ) Amortization of: Amortization of net gain (loss) 60 (1 ) 59 91 (1 ) 90 Net periodic benefit cost $ 111 $ 6 $ 117 $ 129 $ 10 $ 139 Post Retirement: Service cost $ — $ 10 $ 10 $ — $ 10 $ 10 Interest cost — 12 12 — 10 10 Amortization of net gain (loss) — (4 ) (4 ) — 4 4 Net periodic cost (benefit) $ — $ 18 $ 18 $ — $ 24 $ 24 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, 2017 September 30, 2017 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 $ 51 $ 51 $ — $ — $ 62 $ 62 $ — $ — Pooled funds 8,428 8,428 — — 8,177 8,177 — — Total plan assets $ 8,479 $ 8,479 $ — $ — $ 8,239 $ 8,239 $ — $ —

Segment Information

Segment Information	3 Months Ended
	Dec. 31, 2017
Segment Reporting [Abstract]
Segment Information	Segment Information The following tables presents certain operating segment information for the three months ended December 31, 2017 and December 31, 2016 . 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) 2017 Sales: Product $ 1,607 $ 1,974 $ 2,542 $ 9,520 $ 14,036 $ 15,643 Service 863 3,395 165 1,933 5,493 6,356 Total sales 2,470 5,369 2,707 11,453 19,529 21,999 Income (loss) from operations (382 ) (158 ) 142 405 389 7 Assets 16,664 20,949 2,520 19,784 43,253 59,917 Capital expenditures 10 65 — 34 99 109 Depreciation and amortization 56 47 1 67 115 171 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 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, 2017 , and 2016 . For the three months ended December 31, 2017 2016 Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues Customer A $ 1.2 6 % $ 2.9 14 % Customer B $ 2.5 11 % $ 2.1 11 % In addition, accounts receivable from Customer A totaled approximately $1.0 million , or 5% , and approximately $2.4 million , or 9% , of total consolidated accounts receivable as of December 31, 2017 and September 30, 2017, respectively. Accounts receivable from Customer B totaled approximately $3.3 million , or 16% , and approximately $3.9 million , or 14% , of total consolidated accounts receivable as of December 31, 2017 and September 30, 2017, respectively. Two additional customers, C and D, each accounted for account receivable of 10% or more, but did not account for revenue of 10% or more. Accounts receivable from customer C totaled approximately $2.8 million , or 13% , of consolidated accounts receivable as of December 31, 2017. Accounts receivable from customer D totaled approximately $2.3 million , or 11% , of consolidated accounts receivable as of December 31, 2017. 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, 2017 . No other customers accounted for 10% or more of total consolidated accounts receivable as of December 31, 2017 .

Dividend

Dividend	3 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Dividend	Dividends On December 19, 2017, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on January 16, 2018 to shareholders of record as of December 29, 2017, the record date.

Recent Accounting Pronouncement

Recent Accounting Pronouncements (Notes)	3 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Recent Accounting Pronouncements Accounting standards recently adopted Effective September 30, 2017, the Company adopted FASB ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, an amendment of the FASB Accounting Standards Codification. The ASU has added additional disclosure requirements to the codification. It requires management to assess, at each interim and annual reporting period, whether substantial doubt exists about an entity’s ability to continue as a going concern. Substantial doubt exists if it is probable (the “probable” threshold under GAAP has generally been interpreted to be between 75 and 80 percent) that the entity will be unable to meet its obligations as they become due within one year after the date the financial statements are issued or available to be issued (assessment date). This guidance did not have an impact to the Company's 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. Beginning October 1, 2017, the Company adopted the ASU and it hasn’t had a material impact on our consolidated financial statements. As a result of the adoption of this ASU, the Company reclassified the current deferred tax asset previously reported on the September 30, 2017 balance sheet to the noncurrent deferred tax asset. 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 Company has adopted this ASU effective October 1, 2017 and it hasn’t had a material impact on our consolidated financial statements. New accounting standards not adopted as of December 31, 2017 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard is effective for the Company on October 1, 2018, and it does not plan to early adopt this ASU. The standard outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied. The standard also requires new, expanded disclosures regarding revenue recognition. We are utilizing a bottom-up approach to analyze the standard's impact on our contract portfolio, comparing our historical accounting policies and practices, and identifying potential differences from applying the requirements of the new standard to our contracts. While this assessment continues, we have not yet completed our determination of the impacts of the standard or the effect of these impacts on our consolidated financial statements. The Company has selected the modified retrospective approach as its transition method. Because the new standard will impact our business processes, systems and controls, we are developing a comprehensive change management project plan to guide the implementation. 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 February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , an amendment of the FASB Accounting Standards Codification. This ASU requires lessees to recognize a right-of-use asset and lease liability for most lease arrangements. The new standard is effective for the Company on October 1, 2019. The standard mandates a modified retrospective transition method for all entities and early adoption is permitted. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures. 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 August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments , an amendment of the FASB Accounting Standards Codification. This ASU will reduce diversity in practice for classifying cash payments and receipts in the statement of cash flows for a number of common transactions. It will also clarify when identifiable cash flows should be separated versus classified based on their predominant source or use. This ASU is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company is evaluating the effect that ASU 2016-15 will have on its consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, an amendment of the FASB Accounting Standards Codification. This ASU requires the seller and buyer to recognize at the transaction date the current and deferred income tax consequences of intercompany asset transfers (except transfers of inventory). Under current GAAP, the seller and buyer defer the consolidated tax consequences of an intercompany asset transfer from the period of the transfer to a future period when the asset is transferred out of the consolidated group, or otherwise affects consolidated earnings. This standard will cause volatility in companies’ effective tax rates, particularly for those that transfer intangible assets to foreign subsidiaries. For public entities, the new standard is effective for annual and interim periods in fiscal years beginning after December 15, 2017. An entity may early adopt the standard but only at the beginning of an annual period for which it has not issued or made available for issuance financial statements (interim or annual). The Company is evaluating the effect that ASU 2016-16 will have on its consolidated financial statements and related disclosures. In January 2017, FASB issued ASU No. 2017-01, “ Business Combinations Clarifying the Definition of a Business" (Topic 805) (“ASU No. 2017-01”). ASU 2017-01 provides a framework to use in determining when a set of assets and activities is a business. ASU 2017-01 provides more consistency in applying the business combination guidance, reduces the costs of application, and makes the definition of a business more operable. ASU 2017-01 is effective for interim and annual periods within those annual periods beginning after December 15, 2017. The Company is currently evaluating the impact ASU 2017-01 will have on the Company’s results of operations, financial position and disclosures. In March 2017, the FASB issued ASU No. 2017-07, Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , an amendment of the FASB Accounting Standards Codification. This ASU requires employers that sponsor defined benefit pension and/or other post-retirement benefit plans to report the service cost component of net benefit cost in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Employers are required to present the other components of net benefit costs in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, only the service cost component of net periodic pension cost will be eligible for asset capitalization. For public entities, the new standard is effective for annual periods beginning after December 15, 2017, including interim periods within that annual period. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. This ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The Company is evaluating the effect that ASU 2017-07 will have on its consolidated financial statements and related disclosures.

Deferred Costs (Notes)

Deferred Costs (Notes)	3 Months Ended
	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]	Deferred Costs Deferred costs represent costs of labor, third party maintenance and support contracts, and outside consultants related to transactions where the revenue recognition criteria has not been met.

Earnings Per Share of Common 19

Earnings Per Share of Common Stock (Tables)	3 Months Ended
	Dec. 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 December 31, 2017 December 31, 2016 (Amounts in thousands except per share data) Net loss $ (1,200 ) $ (43 ) Less: net income attributable to nonvested common stock — — Net loss attributable to common stockholders $ (1,200 ) $ (43 ) Weighted average total shares outstanding – basic 3,768 3,671 Less: weighted average non-vested shares outstanding — — Weighted average number of common shares outstanding – basic 3,768 3,671 Potential common shares from non-vested stock awards and the assumed exercise of stock options — — Weighted average common shares outstanding – diluted 3,768 3,671 Net loss per share – basic $ (0.32 ) $ (0.01 ) Net loss per share – diluted $ (0.32 ) $ (0.01 )

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories consist of the following: December 31, 2017 September 30, 2017 (Amounts in thousands) Raw materials $ 1,395 $ 1,334 Work-in-process 206 260 Finished goods 5,557 4,377 Total $ 7,158 $ 5,971

Accumulated Other Comprehensi21

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The components of accumulated other comprehensive loss are as follows: December 31, 2017 September 30, 2017 (Amounts in thousands) Cumulative effect of foreign currency translation $ (3,218 ) $ (3,214 ) Cumulative unrealized loss on pension liability (6,949 ) (6,949 ) Accumulated other comprehensive loss $ (10,167 ) $ (10,163 )

Pension and Retirement Plans (T

Pension and Retirement Plans (Tables)	3 Months Ended
	Dec. 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 December 31, 2017 September 30, 2017 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 $ 51 $ 51 $ — $ — $ 62 $ 62 $ — $ — Pooled funds 8,428 8,428 — — 8,177 8,177 — — Total plan assets $ 8,479 $ 8,479 $ — $ — $ 8,239 $ 8,239 $ — $ —
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, 2017 2016 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 10 $ — $ 10 $ 10 $ — $ 10 Interest cost 116 7 123 93 11 104 Expected return on plan assets (75 ) — (75 ) (65 ) — (65 ) Amortization of: Amortization of net gain (loss) 60 (1 ) 59 91 (1 ) 90 Net periodic benefit cost $ 111 $ 6 $ 117 $ 129 $ 10 $ 139 Post Retirement: Service cost $ — $ 10 $ 10 $ — $ 10 $ 10 Interest cost — 12 12 — 10 10 Amortization of net gain (loss) — (4 ) (4 ) — 4 4 Net periodic cost (benefit) $ — $ 18 $ 18 $ — $ 24 $ 24

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Dec. 31, 2017
Operating Segment Information
Segment Reporting Information [Line Items]
Schedule of Revenue by Major Customers by Reporting Segments	The following tables presents certain operating segment information for the three months ended December 31, 2017 and December 31, 2016 . 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) 2017 Sales: Product $ 1,607 $ 1,974 $ 2,542 $ 9,520 $ 14,036 $ 15,643 Service 863 3,395 165 1,933 5,493 6,356 Total sales 2,470 5,369 2,707 11,453 19,529 21,999 Income (loss) from operations (382 ) (158 ) 142 405 389 7 Assets 16,664 20,949 2,520 19,784 43,253 59,917 Capital expenditures 10 65 — 34 99 109 Depreciation and amortization 56 47 1 67 115 171 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
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, 2017 , and 2016 . For the three months ended December 31, 2017 2016 Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues Customer A $ 1.2 6 % $ 2.9 14 % Customer B $ 2.5 11 % $ 2.1 11 %

Earnings Per Share of Common 24

Earnings Per Share of Common Stock (Detail) - shares	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share [Abstract]
Weighted Average Number Diluted Shares Outstanding Adjustment	170,000	149,000

Earnings Per Share of Common 25

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, 2017	Dec. 31, 2016
Earnings Per Share [Abstract]
Net loss	$ (1,200)	$ (43)
Less: Net income attributable to nonvested common stock (in Dollars)	0	0
Net income attributable to common stockholders (in Dollars)	$ (1,200)	$ (43)
Weighted average total shares outstanding – basic	3,768	3,671
Less: weighted average non-vested shares outstanding	0	0
Weighted average number of common shares outstanding – basic	3,768	3,671
Potential common shares from non-vested stock awards and the assumed exercise of stock options	0	0
Weighted average common shares outstanding – diluted	3,768	3,671
Net income (loss) per share – basic (in Dollars per share)	$ (0.32)	$ (0.01)
Net income (loss) per share – diluted (in Dollars per share)	$ (0.32)	$ (0.01)

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Sep. 30, 2017
Inventory Disclosure [Abstract]
Finished goods inventory that has been shipped, but for which all revenue recognition criteria has not been met	$ 0.1	$ 0.4
Reservce for obsolescence	$ 3.2	$ 3.1

Inventories (Detail) - Inventor

Inventories (Detail) - Inventories - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 1,395	$ 1,334
Work-in-process	206	260
Finished goods	5,557	4,377
Total	$ 7,158	$ 5,971

Accumulated Other Comprehensi28

Accumulated Other Comprehensive Loss (Detail) - Components of Accumulated Other Comprehensive Loss - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Equity [Abstract]
Cumulative effect of foreign currency translation	$ (3,218)	$ (3,214)
Cumulative unrealized loss on pension liability	(6,949)	(6,949)
Accumulated other comprehensive loss	$ (10,167)	$ (10,163)

Pension and Retirement Plans (D

Pension and Retirement Plans (Detail) - Components of net periodic benefit costs - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Pension:
Pension:
Service cost	$ 10	$ 10
Interest cost	123	104
Expected return on plan assets	(75)	(65)
Amortization of:
Amortization of net gain (loss)	59	90
Net periodic benefit cost	117	139
Post Retirement:
Pension:
Service cost	10	10
Interest cost	12	10
Amortization of:
Amortization of net gain (loss)	(4)	4
Net periodic benefit cost	18	24
Foreign | Pension:
Pension:
Service cost	10	10
Interest cost	116	93
Expected return on plan assets	(75)	(65)
Amortization of:
Amortization of net gain (loss)	60	91
Net periodic benefit cost	111	129
Foreign | Post Retirement:
Pension:
Service cost	0	0
Interest cost	0	0
Amortization of:
Amortization of net gain (loss)	0	0
Net periodic benefit cost	0	0
U.S. | Pension:
Pension:
Service cost	0	0
Interest cost	7	11
Expected return on plan assets	0	0
Amortization of:
Amortization of net gain (loss)	(1)	(1)
Net periodic benefit cost	6	10
U.S. | Post Retirement:
Pension:
Service cost	10	10
Interest cost	12	10
Amortization of:
Amortization of net gain (loss)	(4)	4
Net periodic benefit cost	$ 18	$ 24

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, 2017	Sep. 30, 2017
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 8,479	$ 8,239
Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	51	62
Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	8,428	8,177
Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	8,479	8,239
Level 1 | Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	51	62
Level 1 | Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	8,428	8,177
Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	0	0
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	0	0
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, 2017	Dec. 31, 2016	Sep. 30, 2017
Sales:
Product	$ 15,643	$ 14,638
Service	6,356	5,278
Total sales	21,999	19,916
Income (loss) from operations	7	(102)
Assets	59,917	50,702	$ 58,928
Capital expenditures	109	72
Depreciation and amortization	171	157
High Performance Products Segment
Sales:
Product	1,607	1,527
Service	863	1,224
Total sales	2,470	2,751
Income (loss) from operations	(382)	46
Assets	16,664	17,766
Capital expenditures	10	17
Depreciation and amortization	56	55
Germany
Sales:
Product	1,974	2,080
Service	3,395	3,059
Total sales	5,369	5,139
Income (loss) from operations	(158)	(102)
Assets	20,949	15,532
Capital expenditures	65	44
Depreciation and amortization	47	38
United Kingdom
Sales:
Product	2,542	701
Service	165	104
Total sales	2,707	805
Income (loss) from operations	142	(206)
Assets	2,520	2,873
Capital expenditures	0	0
Depreciation and amortization	1	3
U.S.
Sales:
Product	9,520	10,330
Service	1,933	891
Total sales	11,453	11,221
Income (loss) from operations	405	160
Assets	19,784	14,531
Capital expenditures	34	11
Depreciation and amortization	67	61
Total
Sales:
Product	14,036	13,111
Service	5,493	4,054
Total sales	19,529	17,165
Income (loss) from operations	389	(148)
Assets	43,253	32,936
Capital expenditures	99	55
Depreciation and amortization	$ 115	$ 102

Segment Information (Detail) 32

Segment Information (Detail) - Major customers - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017
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)	$ 1.2	$ 2.9
% of Total Revenues	6.00%	14.00%
Accounts Receivable, Gross	$ 1		$ 2.4
concentration risk, percentage, accounts receivable	5.00%		9.00%
Customer B
Segment Reporting Information [Line Items]
Amount (in Dollars)	$ 2.5	$ 2.1
% of Total Revenues	11.00%	11.00%
Accounts Receivable, Gross	$ 3.3		$ 3.9
concentration risk, percentage, accounts receivable	16.00%		14.00%
Customer C [Member]
Segment Reporting Information [Line Items]
Accounts Receivable, Gross	$ 2.8
concentration risk, percentage, accounts receivable	13.00%
Customer D [Member]
Segment Reporting Information [Line Items]
Accounts Receivable, Gross	$ 2.3
concentration risk, percentage, accounts receivable	11.00%

Dividend (Detail)

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