CSP (CSPI) 10-Q 14 Aug 15 2015 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Aug. 12, 2015
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		3,673,589
Amendment Flag	false
Entity Central Index Key	356,037
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Current assets:
Cash and cash equivalents	$ 10,446	$ 16,448
Accounts receivable, net of allowances of $234 and $241	17,367	12,532
Inventories, net	6,646	6,446
Refundable income taxes	658	418
Deferred income taxes	1,178	1,230
Other current assets	2,741	2,372
Total current assets	39,036	39,446
Property, equipment and improvements, net	1,367	1,472
Other assets:
Intangibles, net	448	545
Deferred income taxes	1,819	1,892
Cash surrender value of life insurance	3,037	2,785
Other assets	275	167
Total other assets	5,579	5,389
Total assets	45,982	46,307
Current liabilities:
Accounts payable and accrued expenses	13,042	9,751
Deferred revenue	3,128	4,101
Pension and retirement plans	663	658
Income taxes payable	0	1
Total current liabilities	16,833	14,511
Pension and retirement plans	9,635	10,440
Other long term liabilities	0	69
Total liabilities	$ 26,468	$ 25,020
Commitments and contingencies
Shareholders’ equity:
Common stock, $.01 par value per share; authorized, 7,500 shares; issued and outstanding 3,674 and 3,619 shares, respectively	$ 37	$ 36
Additional paid-in capital	12,047	11,658
Retained earnings	15,442	17,517
Accumulated other comprehensive loss	(8,012)	(7,924)
Total shareholders’ equity	19,514	21,287
Total liabilities and shareholders’ equity	$ 45,982	$ 46,307

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Allowances (in Dollars)	$ 234	$ 241
Common stock par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	7,500	7,500
Common stock, shares issued	3,674	3,619
Common stock, shares outstanding	3,674	3,619

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Sales:
Product	$ 15,696	$ 15,677	$ 45,544	$ 44,745
Services	6,591	6,959	16,050	20,126
Total sales	22,287	22,636	61,594	64,871
Cost of sales:
Product	13,461	13,058	37,974	37,447
Services	3,560	3,474	10,356	11,705
Total cost of sales	17,021	16,532	48,330	49,152
Gross profit	5,266	6,104	13,264	15,719
Operating expenses:
Engineering and development	626	945	2,305	2,372
Selling, general and administrative	3,945	4,192	11,824	12,169
Total operating expenses	4,571	5,137	14,129	14,541
Business Combination, Bargain Purchase, Gain Recognized, Amount	0	0	0	462
Operating income (loss)	695	967	(865)	1,640
Other expense:
Foreign exchange loss	(87)	(67)	(216)	(120)
Other expense, net	(26)	(37)	(59)	(58)
Total other expense	(113)	(104)	(275)	(178)
Income (loss) before income taxes	582	863	(1,140)	1,462
Income tax expense (benefit)	333	(36)	(277)	50
Net income (loss)	249	899	(863)	1,412
Net income (loss) attributable to common stockholders	$ 240	$ 863	$ (863)	$ 1,361
Net income (loss) per share – basic (in Dollars per share)	$ 0.07	$ 0.25	$ (0.25)	$ 0.40
Weighted average shares outstanding – basic (in Shares)	3,540	3,451	3,522	3,442
Net income (loss) per share – diluted (in Dollars per share)	$ 0.07	$ 0.25	$ (0.25)	$ 0.39
Weighted average shares outstanding – diluted (in Shares)	3,633	3,499	3,522	3,488

Unaudited Consolidated Stateme5

Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net income (loss)	$ 249	$ 899	$ (863)	$ 1,412
Other comprehensive income (loss):
Foreign currency translation gain (loss) adjustments	29	(92)	(88)	62
Other comprehensive income (loss)	29	(92)	(88)	62
Total comprehensive income (loss)	$ 278	$ 807	$ (951)	$ 1,474

Unaudited Consolidated Stateme6

Unaudited Consolidated Statement of Shareholders' Equity - 9 months ended Jun. 30, 2015 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Sep. 30, 2014	$ 21,287	$ 36	$ 11,658	$ 17,517	$ (7,924)
Balance (in Shares) at Sep. 30, 2014	3,619	3,619
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ (863)			(863)
Other comprehensive loss	(88)				(88)
Stock-based compensation	285		285
Restricted stock issuance	1	$ 1
Stock Issued During Period, Shares, Employee Stock Purchase Plans		15
Stock Issued During Period, Value, Employee Stock Purchase Plan	104		104
Restricted stock issuance (in Shares)		40
Cash dividends on common stock ($0.33 per share)	(1,212)			(1,212)
Balance at Jun. 30, 2015	$ 19,514	$ 37	$ 12,047	$ 15,442	$ (8,012)
Balance (in Shares) at Jun. 30, 2015	3,674	3,674

Unaudited Consolidated Stateme7

Unaudited Consolidated Statement of Shareholders' Equity (Parentheticals) - $ / shares	1 Months Ended	9 Months Ended
	Dec. 17, 2013	Jun. 30, 2015
Statement of Stockholders' Equity [Abstract]
Dividends per share	$ 0.11	$ 0.33

Unaudited Consolidated Stateme8

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ (863)	$ 1,412
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Bargain purchase gain	0	(462)
Depreciation and amortization	385	364
Amortization of intangibles	97	92
Loss on sale of fixed assets, net	(54)	(2)
Foreign exchange loss	216	120
Non-cash changes in accounts receivable	(4)	(17)
Non-cash changes in inventory	240	146
Stock-based compensation expense on stock options and restricted stock awards	285	260
Deferred income taxes	27	273
Increase in cash surrender value of life insurance	(59)	(114)
Changes in operating assets and liabilities:
Increase in accounts receivable	(5,439)	(2,110)
Increase in inventories	(497)	(1,160)
(Increase) decrease in refundable income taxes	(187)	373
Increase in other current assets	(506)	(485)
Increase in other assets	(119)	0
Increase in accounts payable and accrued expenses	3,691	425
Increase (decrease) in deferred revenue	(619)	1,662
Decrease in pension and retirement plans liability	(58)	(168)
Decrease in income taxes payable	(72)	(311)
Increase in other long term liabilities	(69)	(338)
Net cash used in operating activities	(3,497)	(36)
Cash flows from investing activities:
Life insurance premiums paid	(193)	(167)
Proceeds from the sale of fixed assets	0	6
Cash paid to acquire business	0	(500)
Purchases of property, equipment and improvements	(398)	(370)
Net cash used in investing activities	(591)	(1,031)
Cash flows from financing activities:
Dividends paid	(1,212)	(1,148)
Proceeds from issuance of shares under equity compensation plans	105	6
Net cash used in financing activities	(1,107)	(1,142)
Effects of exchange rate on cash	(807)	40
Net decrease in cash and cash equivalents	(6,002)	(2,169)
Cash and cash equivalents, beginning of period	16,448	18,619
Cash and cash equivalents, end of period	10,446	16,450
Supplementary cash flow information:
Cash paid for income taxes	72	96
Cash paid for interest	$ 85	$ 85

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in the annual consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States, have been omitted. Accordingly, the Company believes that although the disclosures are adequate to make the information presented not misleading, the unaudited consolidated financial statements should be read in conjunction with the footnotes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014 .

Use of Estimates

Use of Estimates	9 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, including estimates and assumptions related to reserves for bad debt, reserves for inventory obsolescence, the impairment assessment of intangible assets, the calculation of estimated selling price and post-delivery support obligations used for revenue recognition and the calculation of income tax liabilities. Actual results may differ from those estimates under different assumptions or conditions.

Earnings Per Share of Common St

Earnings Per Share of Common Stock	9 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Earnings Per Share of Common Stock	Earnings Per Share of Common Stock Basic net income (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per common share reflects the maximum dilution that would have resulted from the assumed exercise and share repurchase related to dilutive stock options and is computed by dividing net income (loss) by the assumed weighted average number of common shares outstanding. We are required to present earnings per share, or EPS, utilizing the two class method because we had outstanding, non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, which are considered participating securities. Basic and diluted earnings per share computations for the Company’s reported net income (loss) attributable to common stockholders are as follows: For the three months ended For the nine months ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (Amounts in thousands except per share data) Net income (loss) $ 249 $ 899 $ (863 ) $ 1,412 Less: net income attributable to nonvested common stock 9 36 — 51 Net income (loss) attributable to common stockholders $ 240 $ 863 $ (863 ) $ 1,361 Weighted average total shares outstanding – basic 3,674 3,593 3,522 3,572 Less: weighted average non-vested shares outstanding 134 142 — 130 Weighted average number of common shares outstanding – basic 3,540 3,451 3,522 3,442 Potential common shares from non-vested stock awards and the assumed exercise of stock options 93 48 — 46 Weighted average common shares outstanding – diluted 3,633 3,499 3,522 3,488 Net income (loss) per share – basic $ 0.07 $ 0.25 $ (0.25 ) $ 0.40 Net income (loss) per share – diluted $ 0.07 $ 0.25 $ (0.25 ) $ 0.39 All anti-dilutive securities, including certain stock options, are excluded from the diluted income (loss) per share computation. For the three months ended June, 2015 and 2014, 12,000 and 58,000 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. For the nine months ended June, 2015 and 2014, 28,000 and 52,000 options, respectively, were excluded from the diluted income per share calculation because their inclusion would have been anti-dilutive as their exercise price exceeded fair value. Additionally, 130,000 non-vested restricted stock awards were excluded from the diluted income per share calculation as there was a net loss for the nine months ended June 30, 2015 and their inclusion would have been anti-dilutive.

Inventories

Inventories	9 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following: June 30, 2015 September 30, 2014 (Amounts in thousands) Raw materials $ 2,079 $ 2,377 Work-in-process 812 229 Finished goods 3,755 3,840 Total $ 6,646 $ 6,446 Finished goods includes inventory of approximately $0.1 million and $0.4 million as of June 30, 2015 and September 30, 2014 , respectively, that has been shipped, but for which all revenue recognition criteria have not been met Total inventory balances in the table above are shown net of reserves for obsolescence of approximately $3.9 million and $4.7 million as of June 30, 2015 and September 30, 2014 .

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: June 30, 2015 September 30, 2014 (Amounts in thousands) Cumulative effect of foreign currency translation $ (2,583 ) $ (2,495 ) Cumulative unrealized loss on pension liability (5,429 ) (5,429 ) Accumulated other comprehensive loss $ (8,012 ) $ (7,924 )

Pension and Retirement Plans

Pension and Retirement Plans	9 Months Ended
	Jun. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Pension and Retirement Plans	Pension and Retirement Plans The Company has defined benefit and defined contribution plans in the United Kingdom, Germany and the U.S. In the United Kingdom and Germany, the Company provides defined benefit pension plans and defined contribution plans for the majority of its employees. In the U.S., the Company provides benefits through supplemental retirement plans to certain current and former employees. The domestic supplemental retirement plans have life insurance policies which are not plan assets but were purchased by the Company as a vehicle to fund the costs of the plan. Domestically, the Company also provides for officer death benefits through post-retirement plans to certain officers. All of the Company’s defined benefit plans are closed to newly hired employees and have been for the two years ended September 30, 2014 and 2013 and for the nine months ended June 30, 2015 . The Company funds its pension plans in amounts sufficient to meet the requirements set forth in applicable employee benefits laws and local tax laws. Liabilities for amounts in excess of these funding levels are accrued and reported in the consolidated balance sheets. The Company's pension plan in the United Kingdom is the only plan with plan assets. The plan assets consist of an investment in a commingled fund which in turn comprises a diversified mix of assets including corporate equity securities, government securities and corporate debt securities. The components of net periodic benefit costs related to the U.S. and international plans are as follows: For the Three Months Ended June 30, 2015 2014 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 13 $ — $ 13 $ 10 $ — $ 10 Interest cost 157 13 170 196 17 213 Expected return on plan assets (105 ) — (105 ) (120 ) — (120 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 49 (1 ) 48 24 (3 ) 21 Net periodic benefit cost $ 114 $ 12 $ 126 $ 110 $ 14 $ 124 Post Retirement: Service cost $ — $ 9 $ 9 $ — $ 3 $ 3 Interest cost — 11 11 — 10 10 Amortization of net gain — (13 ) (13 ) — (35 ) (35 ) Net periodic cost (benefit) $ — $ 7 $ 7 $ — $ (22 ) $ (22 ) For the Nine Months Ended June 30, 2015 2014 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 42 $ — $ 42 $ 34 $ — $ 34 Interest cost 476 39 515 579 51 630 Expected return on plan assets (317 ) — (317 ) (352 ) — (352 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 151 (2 ) 149 70 (7 ) 63 Net periodic benefit cost $ 352 $ 37 $ 389 $ 331 $ 44 $ 375 Post Retirement: Service cost $ — $ 26 $ 26 $ — $ 8 $ 8 Interest cost — 33 33 — 32 32 Amortization of net gain — (38 ) (38 ) — (107 ) (107 ) Net periodic cost (benefit) $ — $ 21 $ 21 $ — $ (67 ) $ (67 ) The fair value of the assets held by the UK pension plan by asset category are as follows: Fair Values as of June 30, 2015 September 30, 2014 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 (Thousands) Cash on deposit $ 332 $ 332 $ — $ — $ 352 $ 352 $ — $ — Pooled Funds 9,528 — 9,528 — 9,742 — 9,742 — Total Plan Assets $ 9,860 $ 332 $ 9,528 $ — $ 10,094 $ 352 $ 9,742 $ —

Segment Information

Segment Information	9 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Segment Information	Segment Information The following table presents certain operating segment information. Technology Solutions Segment For the three Months Ended June 30, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 2015 Sales: Product $ 1,844 $ 1,289 $ 601 $ 11,962 $ 13,852 $ 15,696 Service 2,085 3,535 377 594 4,506 6,591 Total sales 3,929 4,824 978 12,556 18,358 22,287 Income (loss) from operations 871 196 (558 ) 186 (176 ) 695 Assets 16,034 12,854 2,955 14,139 29,948 45,982 Capital expenditures 4 30 — 142 172 176 Depreciation and amortization 56 39 10 46 95 151 2014 Sales: Product $ 2,697 $ 3,323 $ 368 $ 9,289 $ 12,980 $ 15,677 Service 2,137 3,546 402 874 4,822 6,959 Total sales 4,834 6,869 770 10,163 17,802 22,636 Income (loss) from operations 998 44 (20 ) (55 ) (31 ) 967 Assets 15,932 15,271 3,595 14,941 33,807 49,739 Capital expenditures 57 17 — 1 18 75 Depreciation and amortization 53 46 4 48 98 151 Technology Solutions Segment For the nine Months Ended June 30, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 2015 Sales: Product $ 6,823 $ 5,229 $ 3,062 $ 30,430 $ 38,721 $ 45,544 Service 2,445 10,753 873 1,979 13,605 16,050 Total sales 9,268 15,982 3,935 32,409 52,326 61,594 Income (loss) from operations (633 ) 445 (583 ) (94 ) (232 ) (865 ) Assets 16,034 12,854 2,955 14,139 29,948 45,982 Capital expenditures 50 205 1 142 348 398 Depreciation and amortization 187 130 27 138 295 482 2014 Sales: Product $ 5,873 $ 8,176 $ 1,351 $ 29,345 $ 38,872 $ 44,745 Service 4,485 12,220 1,034 2,387 15,641 20,126 Total sales 10,358 20,396 2,385 31,732 54,513 64,871 Income (loss) from operations 1,253 257 (19 ) 149 387 1,640 Assets 15,932 15,271 3,595 14,941 33,807 49,739 Capital expenditures 159 118 45 48 211 370 Depreciation and amortization 159 141 12 144 297 456 Income (loss) from operations consists of sales less cost of sales, engineering and development, selling, general and administrative expenses but is not affected by either other income/expense or by income taxes expense/benefit. Non-operating charges/income consists principally of investment income and interest expense. All intercompany transactions have been eliminated. The following table lists customers from which the Company derived revenues in excess of 10% of total revenues for the three and nine months ended June 30, 2015 , and 2014 . For the three Months Ended June 30, For the nine Months Ended June 30, 2015 2014 2015 2014 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 $ 4.4 20 % $ 3.7 17 % $ 9.1 15 % $ 11.8 18 % Customer B $ 2.9 13 % $ 3.6 16 % $ 9.5 15 % $ 12.5 19 % In addition, accounts receivable from Customer A totaled approximately $3.6 million or 21% and Customer B and $4.1 million or 24% of total consolidated accounts receivable as of June 30, 2015 . Accounts receivable from Customer B totaled approximately $3.0 million or 20% of total consolidated accounts receivable as of September 30, 2014. We believe that the Company is not exposed to any significant credit risk with respect to the accounts receivable with these customers as of June 30, 2015 . No other customer accounted for 10% or more of total consolidated accounts receivable as of June 30, 2015 or September 30, 2014.

Fair Value Measures

Fair Value Measures	9 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measures	Fair Value Measures Assets measured at fair value on a recurring basis are as follows: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Balance As of June 30, 2015 (Amounts in thousands) Assets: Money Market funds $ 507 $ — $ — $ 507 Total assets measured at fair value $ 507 $ — $ — $ 507 As of September 30, 2014 (Amounts in thousands) Assets: Money Market funds $ 1,006 $ — $ — $ 1,006 Total assets measured at fair value $ 1,006 $ — $ — $ 1,006 These assets are included in cash and cash equivalents in the accompanying consolidated balance sheets. All other monetary assets and liabilities are short-term in nature and approximate their fair value. The Company did not have any transfers between Level 1, Level 2 or Level 3 measurements. The Company had no liabilities measured at fair value as of June 30, 2015 or September 30, 2014 . The Company had no assets or liabilities measured at fair value on a non recurring basis as of June 30, 2015 or September 30, 2014 .

Dividend

Dividend	9 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Dividend	Dividends On December 16, 2014, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on January 8, 2015 to shareholders of record as of December 28, 2014, the record date. On February 11, 2015, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on March 12, 2015 to shareholders of record as of February 26, 2015, the record date. On May 13, 2015, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on June 10, 2015 to shareholders of record as of May 29, 2015, the record date. On August 12, 2015, the Company's board of directors declared a cash dividend of $0.11 per share which will be paid on September 11, 2015 to shareholders of record as of August 26, 2015, the record date.

Acquisition (Notes)

Acquisition (Notes)	9 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Acquisitions	Acquired Business On November 4, 2013 the Company acquired substantially all of the assets of Myricom, Inc. Myricom has been integrated into the High Performance Products segment. Although Myricom was an established business prior to the acquisition, it had previously sold off a significant portion of its business and was faced with the likelihood of having to shut down operations if it could not find a buyer to purchase its remaining assets because the revenue that Myricom was able to generate from these remaining assets was not sufficient to operate the business profitably. As a result, the Company recognized a bargain purchase gain. The Company paid total cash consideration of approximately $0.5 million to acquire substantially all of the assets of Myricom and incurred approximately $0.1 million for the assumption of certain other liabilities. The purchase of Myricom resulted in the recognition of a net after tax bargain purchase gain of approximately $0.5 million as shown below. The purchase price was allocated as follows: (Amounts in Thousands) Inventory $ 1,030 Property & equipment 17 Intangibles 260 Gross assets acquired 1,307 Product warranty liability assumed (93 ) Net assets acquired 1,214 Less: asset purchase price 500 Bargain purchase gain before tax 714 Deferred tax on bargain purchase gain (252 ) Bargain purchase gain, net of tax effect $ 462 The results of operations of Myricom for the for the nine months ended June 30, 2015 and the eight month period beginning on November 4, 2013 and ending on June 30, 2014 are included in the Company’s consolidated statements of operations for the three and nine months ended June 30, 2015 and 2014 , respectively.

Recent Accounting Pronouncement

Recent Accounting Pronouncements (Notes)	9 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update, or ASU, No. 2014 ‑09, Revenue from Contracts with Customers, which outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This ASU clarifies the principles for recognizing revenue by, among other things, removing inconsistencies in revenue requirements, improving comparability of revenue recognition practices across entities and industries and providing improved disclosure requirements. In July 2015, the FASB approved a one year deferral of the effective date for this ASU to interim and annual reporting periods beginning after December 15, 2017; however, early adoption at the original effective date is still permitted. We are currently evaluating the impact that the adoption of this ASU will have on our consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), which excludes investments measured at net asset value, as a practical expedient for fair value, from the fair value hierarchy. This ASU is effective for interim and annual reporting periods beginning after December 15, 2015, and requires retrospective application, with early adoption permitted. The implementation of this ASU is not expected to have a material impact to the disclosures in our consolidated financial statements.

Earnings Per Share of Common 20

Earnings Per Share of Common Stock (Tables)	9 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Basic and diluted earnings per share computations for the Company’s reported net income (loss) attributable to common stockholders are as follows: For the three months ended For the nine months ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 (Amounts in thousands except per share data) Net income (loss) $ 249 $ 899 $ (863 ) $ 1,412 Less: net income attributable to nonvested common stock 9 36 — 51 Net income (loss) attributable to common stockholders $ 240 $ 863 $ (863 ) $ 1,361 Weighted average total shares outstanding – basic 3,674 3,593 3,522 3,572 Less: weighted average non-vested shares outstanding 134 142 — 130 Weighted average number of common shares outstanding – basic 3,540 3,451 3,522 3,442 Potential common shares from non-vested stock awards and the assumed exercise of stock options 93 48 — 46 Weighted average common shares outstanding – diluted 3,633 3,499 3,522 3,488 Net income (loss) per share – basic $ 0.07 $ 0.25 $ (0.25 ) $ 0.40 Net income (loss) per share – diluted $ 0.07 $ 0.25 $ (0.25 ) $ 0.39

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories consist of the following: June 30, 2015 September 30, 2014 (Amounts in thousands) Raw materials $ 2,079 $ 2,377 Work-in-process 812 229 Finished goods 3,755 3,840 Total $ 6,646 $ 6,446

Accumulated Other Comprehensi22

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The components of accumulated other comprehensive loss are as follows: June 30, 2015 September 30, 2014 (Amounts in thousands) Cumulative effect of foreign currency translation $ (2,583 ) $ (2,495 ) Cumulative unrealized loss on pension liability (5,429 ) (5,429 ) Accumulated other comprehensive loss $ (8,012 ) $ (7,924 )

Pension and Retirement Plans (T

Pension and Retirement Plans (Tables)	9 Months Ended
	Jun. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Schedule of Net Benefit Costs	The components of net periodic benefit costs related to the U.S. and international plans are as follows: For the Three Months Ended June 30, 2015 2014 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 13 $ — $ 13 $ 10 $ — $ 10 Interest cost 157 13 170 196 17 213 Expected return on plan assets (105 ) — (105 ) (120 ) — (120 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 49 (1 ) 48 24 (3 ) 21 Net periodic benefit cost $ 114 $ 12 $ 126 $ 110 $ 14 $ 124 Post Retirement: Service cost $ — $ 9 $ 9 $ — $ 3 $ 3 Interest cost — 11 11 — 10 10 Amortization of net gain — (13 ) (13 ) — (35 ) (35 ) Net periodic cost (benefit) $ — $ 7 $ 7 $ — $ (22 ) $ (22 ) For the Nine Months Ended June 30, 2015 2014 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 42 $ — $ 42 $ 34 $ — $ 34 Interest cost 476 39 515 579 51 630 Expected return on plan assets (317 ) — (317 ) (352 ) — (352 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 151 (2 ) 149 70 (7 ) 63 Net periodic benefit cost $ 352 $ 37 $ 389 $ 331 $ 44 $ 375 Post Retirement: Service cost $ — $ 26 $ 26 $ — $ 8 $ 8 Interest cost — 33 33 — 32 32 Amortization of net gain — (38 ) (38 ) — (107 ) (107 ) Net periodic cost (benefit) $ — $ 21 $ 21 $ — $ (67 ) $ (67 )

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Jun. 30, 2015
Operating Segment Information
Segment Reporting Information [Line Items]
Schedule of Revenue by Major Customers by Reporting Segments	The following table presents certain operating segment information. Technology Solutions Segment For the three Months Ended June 30, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 2015 Sales: Product $ 1,844 $ 1,289 $ 601 $ 11,962 $ 13,852 $ 15,696 Service 2,085 3,535 377 594 4,506 6,591 Total sales 3,929 4,824 978 12,556 18,358 22,287 Income (loss) from operations 871 196 (558 ) 186 (176 ) 695 Assets 16,034 12,854 2,955 14,139 29,948 45,982 Capital expenditures 4 30 — 142 172 176 Depreciation and amortization 56 39 10 46 95 151 2014 Sales: Product $ 2,697 $ 3,323 $ 368 $ 9,289 $ 12,980 $ 15,677 Service 2,137 3,546 402 874 4,822 6,959 Total sales 4,834 6,869 770 10,163 17,802 22,636 Income (loss) from operations 998 44 (20 ) (55 ) (31 ) 967 Assets 15,932 15,271 3,595 14,941 33,807 49,739 Capital expenditures 57 17 — 1 18 75 Depreciation and amortization 53 46 4 48 98 151
Revenues in Excess of 10 Percent of Total Revenues
Segment Reporting Information [Line Items]
Schedule of Revenue by Major Customers by Reporting Segments	The following table lists customers from which the Company derived revenues in excess of 10% of total revenues for the three and nine months ended June 30, 2015 , and 2014 . For the three Months Ended June 30, For the nine Months Ended June 30, 2015 2014 2015 2014 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 $ 4.4 20 % $ 3.7 17 % $ 9.1 15 % $ 11.8 18 % Customer B $ 2.9 13 % $ 3.6 16 % $ 9.5 15 % $ 12.5 19 %

Fair Value Measures (Tables)

Fair Value Measures (Tables)	9 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	Assets measured at fair value on a recurring basis are as follows: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Balance As of June 30, 2015 (Amounts in thousands) Assets: Money Market funds $ 507 $ — $ — $ 507 Total assets measured at fair value $ 507 $ — $ — $ 507 As of September 30, 2014 (Amounts in thousands) Assets: Money Market funds $ 1,006 $ — $ — $ 1,006 Total assets measured at fair value $ 1,006 $ — $ — $ 1,006

Acquisition (Tables)

Acquisition (Tables)	9 Months Ended
	Jun. 30, 2015
Business Combinations [Abstract]
Schedule of Purchase Price Allocation	The purchase price was allocated as follows: (Amounts in Thousands) Inventory $ 1,030 Property & equipment 17 Intangibles 260 Gross assets acquired 1,307 Product warranty liability assumed (93 ) Net assets acquired 1,214 Less: asset purchase price 500 Bargain purchase gain before tax 714 Deferred tax on bargain purchase gain (252 ) Bargain purchase gain, net of tax effect $ 462

Earnings Per Share of Common 27

Earnings Per Share of Common Stock (Detail) - shares	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from diluted income per share calculation	12,000	58,000	28,000	52,000
Due to Loss [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from diluted income per share calculation			130,000

Earnings Per Share of Common 28

Earnings Per Share of Common Stock (Detail) - Basic and diluted earnings per share computations - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Net income (loss)	$ 249	$ 899	$ (863)	$ 1,412
Less: Net income attributable to nonvested common stock (in Dollars)	9	36	0	51
Net income attributable to common stockholders (in Dollars)	$ 240	$ 863	$ (863)	$ 1,361
Weighted average total shares outstanding – basic	3,674	3,593	3,522	3,572
Less: weighted average non-vested shares outstanding	134	142	0	130
Weighted average number of common shares outstanding – basic	3,540	3,451	3,522	3,442
Potential common shares from non-vested stock awards and the assumed exercise of stock options	93	48	0	46
Weighted average common shares outstanding – diluted	3,633	3,499	3,522	3,488
Net income (loss) per share – basic (in Dollars per share)	$ 0.07	$ 0.25	$ (0.25)	$ 0.40
Net income (loss) per share – diluted (in Dollars per share)	$ 0.07	$ 0.25	$ (0.25)	$ 0.39

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Millions	Jun. 30, 2015	Sep. 30, 2014
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	$ 4	$ 5

Inventories (Detail) - Inventor

Inventories (Detail) - Inventories - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 2,079	$ 2,377
Work-in-process	812	229
Finished goods	3,755	3,840
Total	$ 6,646	$ 6,446

Accumulated Other Comprehensi31

Accumulated Other Comprehensive Loss (Detail) - Components of Accumulated Other Comprehensive Loss - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Equity [Abstract]
Cumulative effect of foreign currency translation	$ (2,583)	$ (2,495)
Cumulative unrealized loss on pension liability	(5,429)	(5,429)
Accumulated other comprehensive loss	$ (8,012)	$ (7,924)

Pension and Retirement Plans (D

Pension and Retirement Plans (Detail)	9 Months Ended	12 Months Ended
	Jun. 30, 2015	Sep. 30, 2014	Sep. 30, 2013
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 33

Pension and Retirement Plans (Detail) - Components of net periodic benefit costs - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Pension:
Pension:
Service cost	$ 13	$ 10	$ 42	$ 34
Interest cost	170	213	515	630
Expected return on plan assets	(105)	(120)	(317)	(352)
Amortization of:
Prior service gain	0	0	0	0
Amortization of net gain	48	21	149	63
Net periodic benefit cost	126	124	389	375
Post Retirement:
Pension:
Service cost	9	3	26	8
Interest cost	11	10	33	32
Amortization of:
Amortization of net gain	(13)	(35)	(38)	(107)
Net periodic benefit cost	7	(22)	21	(67)
Foreign | Pension:
Pension:
Service cost	13	10	42	34
Interest cost	157	196	476	579
Expected return on plan assets	(105)	(120)	(317)	(352)
Amortization of:
Prior service gain	0	0	0	0
Amortization of net gain	49	24	151	70
Net periodic benefit cost	114	110	352	331
Foreign | Post Retirement:
Pension:
Service cost	0	0	0	0
Interest cost	0	0	0	0
Amortization of:
Amortization of net gain	0	0	0	0
Net periodic benefit cost	0	0	0	0
U.S. | Pension:
Pension:
Service cost	0	0	0	0
Interest cost	13	17	39	51
Expected return on plan assets	0	0	0	0
Amortization of:
Prior service gain	0	0	0	0
Amortization of net gain	(1)	(3)	(2)	(7)
Net periodic benefit cost	12	14	37	44
U.S. | Post Retirement:
Pension:
Service cost	9	3	26	8
Interest cost	11	10	33	32
Amortization of:
Amortization of net gain	(13)	(35)	(38)	(107)
Net periodic benefit cost	$ 7	$ (22)	$ 21	$ (67)

Pension and Retirement Plans Fa

Pension and Retirement Plans Fair value of the assets held by the UK pension plan by asset catagory (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 9,860	$ 10,094
Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	332	352
Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	9,528	9,742
Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	332	352
Level 1 | Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	332	352
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	9,528	9,742
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	9,528	9,742
Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	0	0
Fair Value, Inputs, Level 3 [Member] | Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	0	0
Fair Value, Inputs, Level 3 [Member] | Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 0	$ 0

Segment Information (Detail) -

Segment Information (Detail) - The following table presents certain operating segment information - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2014
Sales:
Product	$ 15,696	$ 15,677	$ 45,544	$ 44,745
Service	6,591	6,959	16,050	20,126
Total sales	22,287	22,636	61,594	64,871
Income (loss) from operations	695	967	(865)	1,640
Assets	45,982	49,739	45,982	49,739	$ 46,307
Capital expenditures	176	75	398	370
Depreciation and amortization	151	151	482	456
High Performance Products Segment
Sales:
Product	1,844	2,697	6,823	5,873
Service	2,085	2,137	2,445	4,485
Total sales	3,929	4,834	9,268	10,358
Income (loss) from operations	871	998	(633)	1,253
Assets	16,034	15,932	16,034	15,932
Capital expenditures	4	57	50	159
Depreciation and amortization	56	53	187	159
Germany
Sales:
Product	1,289	3,323	5,229	8,176
Service	3,535	3,546	10,753	12,220
Total sales	4,824	6,869	15,982	20,396
Income (loss) from operations	196	44	445	257
Assets	12,854	15,271	12,854	15,271
Capital expenditures	30	17	205	118
Depreciation and amortization	39	46	130	141
United Kingdom
Sales:
Product	601	368	3,062	1,351
Service	377	402	873	1,034
Total sales	978	770	3,935	2,385
Income (loss) from operations	(558)	(20)	(583)	(19)
Assets	2,955	3,595	2,955	3,595
Capital expenditures	0	0	1	45
Depreciation and amortization	10	4	27	12
U.S.
Sales:
Product	11,962	9,289	30,430	29,345
Service	594	874	1,979	2,387
Total sales	12,556	10,163	32,409	31,732
Income (loss) from operations	186	(55)	(94)	149
Assets	14,139	14,941	14,139	14,941
Capital expenditures	142	1	142	48
Depreciation and amortization	46	48	138	144
Total
Sales:
Product	13,852	12,980	38,721	38,872
Service	4,506	4,822	13,605	15,641
Total sales	18,358	17,802	52,326	54,513
Income (loss) from operations	(176)	(31)	(232)	387
Assets	29,948	33,807	29,948	33,807
Capital expenditures	172	18	348	211
Depreciation and amortization	$ 95	$ 98	$ 295	$ 297

Segment Information (Detail) 36

Segment Information (Detail) - Major customers - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2014
Segment Reporting Information [Line Items]
Segment Reporting, Disclosure of Major Customers			0.1		.1
Customer A
Segment Reporting Information [Line Items]
Accounts Receivable, Gross	$ 4		$ 4
Amount (in Dollars)	$ 4.4	$ 3.7	$ 9.1	$ 11.8
% of Total Revenues	20.00%	17.00%	15.00%	18.00%
concentration risk, percentage, accounts receivable	21.00%		21.00%
Customer B
Segment Reporting Information [Line Items]
Accounts Receivable, Gross	$ 4		$ 4		$ 3
Amount (in Dollars)	$ 2.9	$ 3.6	$ 9.5	$ 12.5
% of Total Revenues	13.00%	16.00%	15.00%	19.00%
concentration risk, percentage, accounts receivable	24.00%		24.00%		20.00%

Fair Value Measures (Detail) -

Fair Value Measures (Detail) - Assets and Liabilities measured at fair value on a recurring basis - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Assets:
Money Market funds	$ 507	$ 1,006
Total assets measured at fair value	507	1,006
Level 1
Assets:
Money Market funds	507	1,006
Total assets measured at fair value	$ 507	$ 1,006

Dividend (Detail)

Dividend (Detail) - $ / shares	1 Months Ended	9 Months Ended
	Dec. 17, 2013	Jun. 30, 2015
Equity [Abstract]
Dividends per share	$ 0.11	$ 0.33

Acquisition Acquisition (Detail

Acquisition Acquisition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Nov. 04, 2013
Business Combinations [Abstract]
Payments to Acquire Businesses, Net of Cash Acquired			$ 0	$ 500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities					$ (93)
Business Combination, Bargain Purchase, Gain Recognized, Amount	$ 0	$ 0	$ 0	$ 462

Acquisition Purchase Price Allo

Acquisition Purchase Price Allocation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Nov. 04, 2013
Business Combinations [Abstract]
Business Acquisition, Purchase Price Allocation, Current Assets, Inventory					$ 1,030
Business Acquisition, Purchase Price Allocation, Property, Plant and Equipment					17
Business Acquisition, Purchase Price Allocation, Intangible Assets Other than Goodwill					260
Business Acquisition, Purchase Price Allocation, Assets Acquired					1,307
Business Acquisition, Purchase Price Allocation, Liabilities Assumed					(93)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net					$ 1,214
Payments to Acquire Businesses, Net of Cash Acquired			$ 0	$ 500
Bargain purchase gain before tax				714
Deferred tax on bargain purchase gain				(252)
Business Combination, Bargain Purchase, Gain Recognized, Amount	$ 0	$ 0	$ 0	$ 462