CSP (CSPI) 10-Q 13 May 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Mar. 31, 2016	May. 13, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	CSP INC /MA/
Document Type	10-Q
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		3,800,601
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, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 10,020	$ 11,181
Accounts receivable, net of allowances of $307 and $331	21,690	18,468
Insurance Settlements Receivable, Current	1,090	1,420
Inventories, net	4,807	5,749
Refundable income taxes	0	43
Deferred income taxes	1,337	1,337
Other current assets	2,210	1,884
Total current assets	41,154	40,082
Property, equipment and improvements, net	1,631	1,564
Other assets:
Intangibles, net	351	416
Deferred income taxes	1,678	1,687
Cash surrender value of life insurance	3,276	3,064
Other assets	158	183
Total other assets	5,463	5,350
Total assets	48,248	46,996
Current liabilities:
Accounts payable and accrued expenses	15,415	13,776
Deferred revenue	2,192	2,931
Pension and retirement plans	721	675
Income taxes payable	281	0
Total current liabilities	18,609	17,382
Pension and retirement plans	9,700	10,009
Other long term liabilities	18	15
Total liabilities	$ 28,327	$ 27,406
Commitments and contingencies
Shareholders’ equity:
Common stock, $.01 par value per share; authorized, 7,500 shares; issued and outstanding 3,801 and 3,688 shares, respectively	$ 38	$ 37
Additional paid-in capital	12,503	12,249
Retained earnings	15,642	15,689
Accumulated other comprehensive loss	(8,262)	(8,385)
Total shareholders’ equity	19,921	19,590
Total liabilities and shareholders’ equity	$ 48,248	$ 46,996

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Statement of Financial Position [Abstract]
Allowances (in Dollars)	$ 307	$ 331
Common stock par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	7,500	7,500
Common stock, shares issued	3,801	3,688
Common stock, shares outstanding	3,801	3,688

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Sales:
Product	$ 20,972	$ 14,195	$ 37,975	$ 29,848
Services	6,167	4,682	12,840	9,459
Total sales	27,139	18,877	50,815	39,307
Cost of sales:
Product	17,054	11,380	31,290	24,513
Services	3,752	3,454	8,002	6,796
Total cost of sales	20,806	14,834	39,292	31,309
Gross profit	6,333	4,043	11,523	7,998
Operating expenses:
Engineering and development	790	826	1,589	1,679
Selling, general and administrative	4,665	3,856	8,713	7,879
Total operating expenses	5,455	4,682	10,302	9,558
Operating income (loss)	878	(639)	1,221	(1,560)
Other income (expense):
Foreign exchange loss	(103)	(108)	(63)	(129)
Other expense, net	(14)	(21)	(26)	(33)
Total other expense	(117)	(129)	(89)	(162)
Income (loss) before income taxes	761	(768)	1,132	(1,722)
Income tax expense (benefit)	258	(93)	346	(610)
Net income (loss)	503	(675)	786	(1,112)
Net income (loss) attributable to common stockholders	$ 480	$ (649)	$ 756	$ (1,072)
Net income (loss) per share – basic (in Dollars per share)	$ 0.13	$ (0.19)	$ 0.21	$ (0.31)
Weighted average shares outstanding – basic (in Shares)	3,609	3,525	3,589	3,507
Net income (loss) per share – diluted (in Dollars per share)	$ 0.13	$ (0.19)	$ 0.20	$ (0.31)
Weighted average shares outstanding – diluted (in Shares)	3,730	3,525	3,728	3,507

Unaudited Consolidated Stateme5

Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 503	$ (675)	$ 786	$ (1,112)
Other comprehensive income (loss):
Foreign currency translation gain (loss) adjustments	125	(229)	123	(117)
Other comprehensive income	125	(229)	123	(117)
Total comprehensive income (loss)	$ 628	$ (904)	$ 909	$ (1,229)

Unaudited Consolidated Stateme6

Unaudited Consolidated Statement of Shareholders' Equity - 6 months ended Mar. 31, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Sep. 30, 2015	$ 19,590	$ 37	$ 12,249	$ 15,689	$ (8,385)
Balance (in Shares) at Sep. 30, 2015	3,688	3,688
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 786			786
Other comprehensive income	123				123
Stock-based compensation	181		181
Restricted Stock Award, Forfeitures		(6)
Restricted stock issuance	1	$ 1
Restricted stock issuance (in Shares)		105
Cash dividends on common stock ($0.22 per share)	(833)			(833)
Balance at Mar. 31, 2016	$ 19,921	$ 38	12,503	$ 15,642	$ (8,262)
Balance (in Shares) at Mar. 31, 2016	3,801	3,801
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Issued During Period, Shares, Employee Stock Purchase Plans		14
Stock Issued During Period, Value, Employee Stock Purchase Plan	$ 73		$ 73

Unaudited Consolidated Stateme7

Unaudited Consolidated Statement of Shareholders' Equity (Parentheticals) - $ / shares	1 Months Ended	6 Months Ended
	Dec. 17, 2013	Mar. 31, 2016
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, 2016	Mar. 31, 2015
Statement of Cash Flows [Abstract]
Proceeds from Stock Options Exercised	$ 73	$ 105
Cash flows provided by (used in) operating activities:
Net income (loss)	786	(1,112)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	286	266
Amortization of intangibles	65	65
Foreign exchange (gain) loss	63	129
Non-cash changes in accounts receivable	136	37
Non-cash changes in inventory	226	38
Stock-based compensation expense on stock options and restricted stock awards	181	188
Deferred income taxes	23	(21)
Increase in cash surrender value of life insurance	(50)	(23)
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(3,008)	(3,267)
(Increase) decrease in inventories	699	(741)
(Increase) decrease in refundable income taxes	44	(619)
Increase in other current assets	(310)	(296)
(Increase) decrease in other assets	25	(59)
Increase in accounts payable and accrued expenses	1,530	785
Decrease in deferred revenue	(715)	(1,017)
Decrease in pension and retirement plans liability	(164)	(36)
Increase in income taxes payable	268	6
Increase in other long term liabilities	4	3
Net cash provided by (used in) operating activities	89	(5,674)
Cash flows used in investing activities:
Life insurance premiums paid	(161)	(109)
Purchases of property, equipment and improvements	(345)	(223)
Net cash used in investing activities	(506)	(332)
Dividends, Common Stock	(833)	(808)
Cash flows provided by (used in) financing activities:
Net cash used in financing activities	(760)	(703)
Effects of exchange rate on cash	16	(717)
Net decrease in cash and cash equivalents	(1,161)	(7,426)
Cash and cash equivalents, beginning of period	11,181	16,448
Cash and cash equivalents, end of period	10,020	9,022
Supplementary cash flow information:
Cash paid for income taxes	28	52
Cash paid for interest	$ 85	$ 85

Basis of Presentation

Basis of Presentation	6 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results of the interim periods presented. All adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included in the annual consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States, have been omitted. Accordingly, the Company believes that although the disclosures are adequate to make the information presented not misleading, the unaudited consolidated financial statements should be read in conjunction with the footnotes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2015 .

Use of Estimates

Use of Estimates	6 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, including estimates and assumptions related to reserves for bad debt, reserves for inventory obsolescence, the impairment assessment of intangible assets, the calculation of estimated selling price and post-delivery support obligations used for revenue recognition and the calculation of income tax liabilities. Actual results may differ from those estimates under different assumptions or conditions.

Earnings Per Share of Common St

Earnings Per Share of Common Stock	6 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share of Common Stock	Earnings Per Share of Common Stock Basic net income (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per common share reflects the maximum dilution that would have resulted from the assumed exercise and share repurchase related to dilutive stock options and is computed by dividing net income (loss) by the assumed weighted average number of common shares outstanding. We are required to present earnings per share, or EPS, utilizing the two class method because we had outstanding, non-vested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents, which are considered participating securities. Basic and diluted earnings per share computations for the Company’s reported net income (loss) attributable to common stockholders are as follows: For the three months ended For the six months ended March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 (Amounts in thousands except per share data) Net income (loss) $ 503 $ (675 ) $ 786 $ (1,112 ) Less: net income (loss) attributable to nonvested common stock 23 (26 ) 30 (40 ) Net income (loss) attributable to common stockholders $ 480 $ (649 ) $ 756 $ (1,072 ) Weighted average total shares outstanding – basic 3,782 3,662 3,732 3,637 Less: weighted average non-vested shares outstanding 173 137 143 130 Weighted average number of common shares outstanding – basic 3,609 3,525 3,589 3,507 Potential common shares from non-vested stock awards and the assumed exercise of stock options 121 — 139 — Weighted average common shares outstanding – diluted 3,730 3,525 3,728 3,507 Net income (loss) per share – basic $ 0.13 $ (0.19 ) $ 0.21 $ (0.31 ) Net income (loss) per share – diluted $ 0.13 $ (0.19 ) $ 0.20 $ (0.31 ) All anti-dilutive securities, including certain stock options, are excluded from the diluted income (loss) per share computation. For the six months ended March 31, 2016 and 2015, 33,000 and 35,000 shares subject to stock options, respectively, were excluded from the diluted income per share calculation because their inclusion would have been anti-dilutive as their exercise price exceeded fair value. Additionally, 130,000 shares subject to non-vested restricted stock awards were excluded from the diluted income per share calculation as there was a net loss for the six months ended March 31, 2015 and their inclusion would have been anti-dilutive. For the three months ended March 31, 2016 and 2015, 30,000 and 35,000 shares subject to stock options, respectively, were excluded from the diluted income per share calculation because their inclusion would have been anti-dilutive as their exercise price exceeded fair value. Additionally, 137,000 shares subject to non-vested restricted stock awards were excluded from the diluted income per share calculation as there was a net loss for the three months ended March 31, 2015 and their inclusion would have been anti-dilutive.

Inventories

Inventories	6 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following: March 31, 2016 September 30, 2015 (Amounts in thousands) Raw materials $ 1,618 $ 1,788 Work-in-process 530 387 Finished goods 2,659 3,574 Total $ 4,807 $ 5,749 Finished goods includes inventory of approximately $0.3 million and $0.1 million as of March 31, 2016 and September 30, 2015 , respectively, that have 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 $4.3 million and $4.1 million as of March 31, 2016 and September 30, 2015 , respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: March 31, 2016 September 30, 2015 (Amounts in thousands) Cumulative effect of foreign currency translation $ (2,702 ) $ (2,825 ) Cumulative unrealized loss on pension liability (5,560 ) (5,560 ) Accumulated other comprehensive loss $ (8,262 ) $ (8,385 )

Pension and Retirement Plans

Pension and Retirement Plans	6 Months Ended
	Mar. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Pension and Retirement Plans	Pension and Retirement Plans The Company has defined benefit and defined contribution plans in the United Kingdom, Germany and the U.S. In the United Kingdom and Germany, the Company provides defined benefit pension plans and defined contribution plans for the majority of its employees. In the U.S., the Company provides benefits through supplemental retirement plans to certain current and former employees. The domestic supplemental retirement plans have life insurance policies which are not plan assets but were purchased by the Company as a vehicle to fund the costs of the plan. Domestically, the Company also provides for officer death benefits through post-retirement plans to certain officers. All of the Company’s defined benefit plans are closed to newly hired employees and have been for the two years ended September 30, 2015 and 2014 and for the six months ended March 31, 2016 . The Company funds its pension plans in amounts sufficient to meet the requirements set forth in applicable employee benefits laws and local tax laws. Liabilities for amounts in excess of these funding levels are accrued and reported in the consolidated balance sheets. The Company's pension plan in the United Kingdom is the only plan with plan assets. The plan assets consist of an investment in a commingled fund which in turn comprises a diversified mix of assets including corporate equity securities, government securities and corporate debt securities. The components of net periodic benefit costs related to the U.S. and international plans are as follows: For the Three Months Ended March 31, 2016 2015 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 9 $ — $ 9 $ 13 $ — $ 13 Interest cost 146 11 157 155 13 168 Expected return on plan assets (92 ) — (92 ) (104 ) — (104 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 44 (1 ) 43 49 (1 ) 48 Net periodic benefit cost $ 107 $ 10 $ 117 $ 113 $ 12 $ 125 Post Retirement: Service cost $ — $ 7 $ 7 $ — $ 9 $ 9 Interest cost — 11 11 — 11 11 Amortization of net gain — (20 ) (20 ) — (13 ) (13 ) Net periodic cost (benefit) $ — $ (2 ) $ (2 ) $ — $ 7 $ 7 For the Six Months Ended March 31, 2016 2015 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 18 $ — $ 18 $ 28 $ — $ 28 Interest cost 297 22 319 320 26 346 Expected return on plan assets (190 ) — (190 ) (212 ) — (212 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 89 (2 ) 87 102 (2 ) 100 Net periodic benefit cost $ 214 $ 20 $ 234 $ 238 $ 24 $ 262 Post Retirement: Service cost $ — $ 14 $ 14 $ — $ 17 $ 17 Interest cost — 21 21 — 22 22 Amortization of net gain — (40 ) (40 ) — (25 ) (25 ) Net periodic cost (benefit) $ — $ (5 ) $ (5 ) $ — $ 14 $ 14 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, 2016 September 30, 2015 Fair Value Measurements Using Inputs Considered as Fair Value Measurements Using Inputs Considered as Asset Category Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (Amounts in thousands) Cash on deposit $ 227 $ 227 $ — $ — $ 324 $ 324 $ — $ — Pooled Funds 8,547 — 8,547 — 8,977 — 8,977 — Total Plan Assets $ 8,774 $ 227 $ 8,547 $ — $ 9,301 $ 324 $ 8,977 $ —

Segment Information

Segment Information	6 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment Information	Segment Information The following table presents certain operating segment information. Technology Solutions Segment For the three months ended March 31, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 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 2015 Sales: Product $ 2,527 $ 1,796 $ 891 $ 8,981 $ 11,668 $ 14,195 Service 130 3,690 213 649 4,552 4,682 Total sales 2,657 5,486 1,104 9,630 16,220 18,877 Income (loss) from operations (647 ) 170 (93 ) (69 ) 8 (639 ) Assets 15,595 12,555 3,118 10,859 26,532 42,127 Capital expenditures 25 95 — — 95 120 Depreciation and amortization 60 44 10 45 99 159 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) 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 2015 Sales: Product $ 4,979 $ 3,940 $ 2,461 $ 18,468 $ 24,869 $ 29,848 Service 360 7,218 496 1,385 9,099 9,459 Total sales 5,339 11,158 2,957 19,853 33,968 39,307 Income (loss) from operations (1,504 ) 249 (25 ) (280 ) (56 ) (1,560 ) Assets 15,595 12,555 3,118 10,859 26,532 42,127 Capital expenditures 46 176 1 — 177 223 Depreciation and amortization 131 91 17 92 200 331 Income (loss) from operations consists of sales less cost of sales, engineering and development expenses, and selling, general and administrative expenses but is not affected by either other income/expense or by income taxes expense/benefit. Non-operating charges/income consists principally of investment income and interest expense. All intercompany transactions have been eliminated. The following table lists customers from which the Company derived revenues in excess of 10% of total revenues for the three and six months ended March 31, 2016 , and 2015 . For the three months ended March 31, For the six months ended March 31, 2016 2015 2016 2015 Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues (dollars in millions) Customer A $ 5.6 20 % $ 2.4 13 % $ 8.4 17 % $ 4.7 12 % Customer B $ 3.8 14 % $ 3.7 20 % $ 7.6 15 % $ 6.6 17 % In addition, accounts receivable from Customer A totaled approximately $3.9 million, or 17%, and approximately $1.1 million, or 6%, of total consolidated accounts receivable as of March 31, 2016 and September 30, 2015, respectively. Accounts receivable from Customer B totaled approximately $5.1 million or 33% , and approximately $7.9 million , or 39% , of total consolidated accounts receivable as of March 31, 2016 and September 30, 2015, respectively. We believe that the Company is not exposed to any significant credit risk with respect to the accounts receivable with these customers as of March 31, 2016 . No other customers accounted for 10% or more of total consolidated accounts receivable as of March 31, 2016 or September 30, 2015.

Dividend

Dividend	6 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Dividend	Dividends On February 16, 2016, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on March 11, 2016 to shareholders of record as of February 26, 2016, the record date. On December 23, 2015, the Company's board of directors declared a cash dividend of $0.11 per share which was paid on January 11, 2016 to shareholders of record as of December 31, 2015, the record date.

Recent Accounting Pronouncement

Recent Accounting Pronouncements (Notes)	6 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update, or ASU, No. 2014 ‑09 , Revenue from Contracts with Customers , which outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This ASU clarifies the principles for recognizing revenue by, among other things, removing inconsistencies in revenue requirements, improving comparability of revenue recognition practices across entities and industries and providing improved disclosure requirements. In August 2015, the FASB approved a one year deferral of the effective date for this ASU to interim and annual reporting periods beginning after December 15, 2017; however, early adoption at the original effective date is still permitted. We are currently evaluating the impact that the adoption of this ASU will have on our consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) , which excludes investments measured at net asset value, as a practical expedient for fair value, from the fair value hierarchy. This ASU is effective for interim and annual reporting periods beginning after December 15, 2015, and requires retrospective application, with early adoption permitted. The implementation of this ASU is not expected to have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-12, Plan Accounting: Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefits Plans (Topic 965) , which requires fully benefit-responsive investment contracts to be measured at contract value. Those Topics also require an adjustment to reconcile contract value to fair value, when these measures differ, on the face of the plan financial statements. Fair value is measured using the requirements in Topic 820, Fair Value Measurement. This ASU is effective for fiscal years beginning after December 15, 2015, and requires retrospective application, with early adoption permitted. The implementation of this ASU is not expected to have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) Simplifying the Measurement of Inventory , which requires entities to measure inventory at the lower of cost and net realizable value, except for inventory measured using last-in, first-out (LIFO) or the retail inventory method. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for fiscal 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 has not yet assessed the potential impact of implementing this ASU on the disclosures on our consolidated financial statements.

Earnings Per Share of Common 18

Earnings Per Share of Common Stock (Tables)	6 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Basic and diluted earnings per share computations for the Company’s reported net income (loss) attributable to common stockholders are as follows: For the three months ended For the six months ended March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 (Amounts in thousands except per share data) Net income (loss) $ 503 $ (675 ) $ 786 $ (1,112 ) Less: net income (loss) attributable to nonvested common stock 23 (26 ) 30 (40 ) Net income (loss) attributable to common stockholders $ 480 $ (649 ) $ 756 $ (1,072 ) Weighted average total shares outstanding – basic 3,782 3,662 3,732 3,637 Less: weighted average non-vested shares outstanding 173 137 143 130 Weighted average number of common shares outstanding – basic 3,609 3,525 3,589 3,507 Potential common shares from non-vested stock awards and the assumed exercise of stock options 121 — 139 — Weighted average common shares outstanding – diluted 3,730 3,525 3,728 3,507 Net income (loss) per share – basic $ 0.13 $ (0.19 ) $ 0.21 $ (0.31 ) Net income (loss) per share – diluted $ 0.13 $ (0.19 ) $ 0.20 $ (0.31 )

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories consist of the following: March 31, 2016 September 30, 2015 (Amounts in thousands) Raw materials $ 1,618 $ 1,788 Work-in-process 530 387 Finished goods 2,659 3,574 Total $ 4,807 $ 5,749

Accumulated Other Comprehensi20

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The components of accumulated other comprehensive loss are as follows: March 31, 2016 September 30, 2015 (Amounts in thousands) Cumulative effect of foreign currency translation $ (2,702 ) $ (2,825 ) Cumulative unrealized loss on pension liability (5,560 ) (5,560 ) Accumulated other comprehensive loss $ (8,262 ) $ (8,385 )

Pension and Retirement Plans (T

Pension and Retirement Plans (Tables)	6 Months Ended
	Mar. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	The fair value of the assets held by the U.K. pension plan by asset category are as follows: Fair Values as of March 31, 2016 September 30, 2015 Fair Value Measurements Using Inputs Considered as Fair Value Measurements Using Inputs Considered as Asset Category Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (Amounts in thousands) Cash on deposit $ 227 $ 227 $ — $ — $ 324 $ 324 $ — $ — Pooled Funds 8,547 — 8,547 — 8,977 — 8,977 — Total Plan Assets $ 8,774 $ 227 $ 8,547 $ — $ 9,301 $ 324 $ 8,977 $ —
Schedule of Net Benefit Costs	The components of net periodic benefit costs related to the U.S. and international plans are as follows: For the Three Months Ended March 31, 2016 2015 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 9 $ — $ 9 $ 13 $ — $ 13 Interest cost 146 11 157 155 13 168 Expected return on plan assets (92 ) — (92 ) (104 ) — (104 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 44 (1 ) 43 49 (1 ) 48 Net periodic benefit cost $ 107 $ 10 $ 117 $ 113 $ 12 $ 125 Post Retirement: Service cost $ — $ 7 $ 7 $ — $ 9 $ 9 Interest cost — 11 11 — 11 11 Amortization of net gain — (20 ) (20 ) — (13 ) (13 ) Net periodic cost (benefit) $ — $ (2 ) $ (2 ) $ — $ 7 $ 7 For the Six Months Ended March 31, 2016 2015 Foreign U.S. Total Foreign U.S. Total (Amounts in thousands) Pension: Service cost $ 18 $ — $ 18 $ 28 $ — $ 28 Interest cost 297 22 319 320 26 346 Expected return on plan assets (190 ) — (190 ) (212 ) — (212 ) Amortization of: Prior service gain — — — — — — Amortization of net gain 89 (2 ) 87 102 (2 ) 100 Net periodic benefit cost $ 214 $ 20 $ 234 $ 238 $ 24 $ 262 Post Retirement: Service cost $ — $ 14 $ 14 $ — $ 17 $ 17 Interest cost — 21 21 — 22 22 Amortization of net gain — (40 ) (40 ) — (25 ) (25 ) Net periodic cost (benefit) $ — $ (5 ) $ (5 ) $ — $ 14 $ 14

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Mar. 31, 2016
Operating Segment Information
Segment Reporting Information [Line Items]
Schedule of Revenue by Major Customers by Reporting Segments	The following table presents certain operating segment information. Technology Solutions Segment For the three months ended March 31, High Performance Products Segment Germany United Kingdom U.S. Total Consolidated Total (Amounts in thousands) 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 2015 Sales: Product $ 2,527 $ 1,796 $ 891 $ 8,981 $ 11,668 $ 14,195 Service 130 3,690 213 649 4,552 4,682 Total sales 2,657 5,486 1,104 9,630 16,220 18,877 Income (loss) from operations (647 ) 170 (93 ) (69 ) 8 (639 ) Assets 15,595 12,555 3,118 10,859 26,532 42,127 Capital expenditures 25 95 — — 95 120 Depreciation and amortization 60 44 10 45 99 159 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) 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 2015 Sales: Product $ 4,979 $ 3,940 $ 2,461 $ 18,468 $ 24,869 $ 29,848 Service 360 7,218 496 1,385 9,099 9,459 Total sales 5,339 11,158 2,957 19,853 33,968 39,307 Income (loss) from operations (1,504 ) 249 (25 ) (280 ) (56 ) (1,560 ) Assets 15,595 12,555 3,118 10,859 26,532 42,127 Capital expenditures 46 176 1 — 177 223 Depreciation and amortization 131 91 17 92 200 331
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 six months ended March 31, 2016 , and 2015 . For the three months ended March 31, For the six months ended March 31, 2016 2015 2016 2015 Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues Customer Revenues % of Total Revenues (dollars in millions) Customer A $ 5.6 20 % $ 2.4 13 % $ 8.4 17 % $ 4.7 12 % Customer B $ 3.8 14 % $ 3.7 20 % $ 7.6 15 % $ 6.6 17 %

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, 2015	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted Average Number Diluted Shares Outstanding Adjustment	30,000	35,000	33,000	35,000
Anti-dilutive securities excluded from diluted income per share calculation		137,000		130,000

Earnings Per Share of Common 24

Earnings Per Share of Common Stock (Detail) - Basic and diluted earnings per share computations - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income (loss)	$ 503	$ (675)	$ 786	$ (1,112)
Less: Net income attributable to nonvested common stock (in Dollars)	23	(26)	30	(40)
Net income attributable to common stockholders (in Dollars)	$ 480	$ (649)	$ 756	$ (1,072)
Weighted average total shares outstanding – basic	3,782	3,662	3,732	3,637
Less: weighted average non-vested shares outstanding	173	137	143	130
Weighted average number of common shares outstanding – basic	3,609	3,525	3,589	3,507
Potential common shares from non-vested stock awards and the assumed exercise of stock options	121	0	139	0
Weighted average common shares outstanding – diluted	3,730	3,525	3,728	3,507
Net income (loss) per share – basic (in Dollars per share)	$ 0.13	$ (0.19)	$ 0.21	$ (0.31)
Net income (loss) per share – diluted (in Dollars per share)	$ 0.13	$ (0.19)	$ 0.20	$ (0.31)

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Sep. 30, 2015
Inventory Disclosure [Abstract]
Finished goods inventory that has been shipped, but for which all revenue recognition criteria has not been met	$ 0.3	$ 0.1
Reservce for obsolescence	$ 4	$ 4

Inventories (Detail) - Inventor

Inventories (Detail) - Inventories - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 1,618	$ 1,788
Work-in-process	530	387
Finished goods	2,659	3,574
Total	$ 4,807	$ 5,749

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Loss (Detail) - Components of Accumulated Other Comprehensive Loss - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Equity [Abstract]
Cumulative effect of foreign currency translation	$ (2,702)	$ (2,825)
Cumulative unrealized loss on pension liability	(5,560)	(5,560)
Accumulated other comprehensive loss	$ (8,262)	$ (8,385)

Pension and Retirement Plans (D

Pension and Retirement Plans (Detail)	6 Months Ended	12 Months Ended
	Mar. 31, 2016	Sep. 30, 2015	Sep. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Number of years defined benefit plans are closed to newly hired employees	2 years	2 years	2 years

Pension and Retirement Plans 29

Pension and Retirement Plans (Detail) - Components of net periodic benefit costs - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Pension:
Pension:
Service cost	$ 9	$ 13	$ 18	$ 28
Interest cost	157	168	319	346
Expected return on plan assets	(92)	(104)	(190)	(212)
Amortization of:
Prior service gain	0	0	0	0
Amortization of net gain	43	48	87	100
Net periodic benefit cost	117	125	234	262
Post Retirement:
Pension:
Service cost	7	9	14	17
Interest cost	11	11	21	22
Amortization of:
Amortization of net gain	(20)	(13)	(40)	(25)
Net periodic benefit cost	(2)	7	(5)	14
Foreign | Pension:
Pension:
Service cost	9	13	18	28
Interest cost	146	155	297	320
Expected return on plan assets	(92)	(104)	(190)	(212)
Amortization of:
Prior service gain	0	0	0	0
Amortization of net gain	44	49	89	102
Net periodic benefit cost	107	113	214	238
Foreign | Post Retirement:
Pension:
Service cost	0	0	0	0
Interest cost	0	0	0	0
Amortization of:
Amortization of net gain	0	0	0	0
Net periodic benefit cost	0	0	0	0
U.S. | Pension:
Pension:
Service cost	0	0	0	0
Interest cost	11	13	22	26
Expected return on plan assets	0	0	0	0
Amortization of:
Prior service gain	0	0	0	0
Amortization of net gain	(1)	(1)	(2)	(2)
Net periodic benefit cost	10	12	20	24
U.S. | Post Retirement:
Pension:
Service cost	7	9	14	17
Interest cost	11	11	21	22
Amortization of:
Amortization of net gain	(20)	(13)	(40)	(25)
Net periodic benefit cost	$ (2)	$ 7	$ (5)	$ 14

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, 2016	Sep. 30, 2015
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 8,774	$ 9,301
Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	227	324
Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	8,547	8,977
Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	227	324
Level 1 | Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	227	324
Level 1 | Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	0	0
Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	8,547	8,977
Fair Value, Inputs, Level 2 [Member] | Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	0	0
Fair Value, Inputs, Level 2 [Member] | Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	8,547	8,977
Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	0	0
Fair Value, Inputs, Level 3 [Member] | Cash On Deposit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	0	0
Fair Value, Inputs, Level 3 [Member] | Pooled Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Fair Value of Plan Assets	$ 0	$ 0

Segment Information (Detail) -

Segment Information (Detail) - The following table presents certain operating segment information - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Sales:
Product	$ 20,972	$ 14,195	$ 37,975	$ 29,848
Service	6,167	4,682	12,840	9,459
Total sales	27,139	18,877	50,815	39,307
Income (loss) from operations	878	(639)	1,221	(1,560)
Assets	48,248	42,127	48,248	42,127	$ 46,996
Capital expenditures	155	120	345	223
Depreciation and amortization	191	159	351	331
High Performance Products Segment
Sales:
Product	2,861	2,527	4,811	4,979
Service	597	130	1,464	360
Total sales	3,458	2,657	6,275	5,339
Income (loss) from operations	(501)	(647)	(924)	(1,504)
Assets	15,353	15,595	15,353	15,595
Capital expenditures	17	25	165	46
Depreciation and amortization	60	60	117	131
Germany
Sales:
Product	1,389	1,796	3,291	3,940
Service	4,027	3,690	8,799	7,218
Total sales	5,416	5,486	12,090	11,158
Income (loss) from operations	718	170	1,181	249
Assets	12,311	12,555	12,311	12,555
Capital expenditures	52	95	119	176
Depreciation and amortization	42	44	82	91
United Kingdom
Sales:
Product	1,352	891	3,345	2,461
Service	262	213	452	496
Total sales	1,614	1,104	3,797	2,957
Income (loss) from operations	(1)	(93)	(48)	(25)
Assets	2,791	3,118	2,791	3,118
Capital expenditures	31	0	33	1
Depreciation and amortization	33	10	38	17
U.S.
Sales:
Product	15,370	8,981	26,528	18,468
Service	1,281	649	2,125	1,385
Total sales	16,651	9,630	28,653	19,853
Income (loss) from operations	662	(69)	1,012	(280)
Assets	17,793	10,859	17,793	10,859
Capital expenditures	55	0	28	0
Depreciation and amortization	56	45	114	92
Total
Sales:
Product	18,111	11,668	33,164	24,869
Service	5,570	4,552	11,376	9,099
Total sales	23,681	16,220	44,540	33,968
Income (loss) from operations	1,379	8	2,145	(56)
Assets	32,895	26,532	32,895	26,532
Capital expenditures	138	95	180	177
Depreciation and amortization	$ 131	$ 99	$ 234	$ 200

Segment Information (Detail) 32

Segment Information (Detail) - Major customers - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Segment Reporting Information [Line Items]
Segment Reporting, Disclosure of Major Customers			0.1	.1
Customer A
Segment Reporting Information [Line Items]
Amount (in Dollars)	$ 5.6	$ 2.4	$ 8.4	$ 4.7
% of Total Revenues	20.00%	13.00%	17.00%	12.00%
Customer B
Segment Reporting Information [Line Items]
Amount (in Dollars)	$ 3.8	$ 3.7	$ 7.6	$ 6.6
% of Total Revenues	14.00%	20.00%	15.00%	17.00%
Accounts Receivable, Gross	$ 5		$ 5		$ 8
concentration risk, percentage, accounts receivable	33.00%		33.00%		39.00%

Dividend (Detail)

Dividend (Detail) - $ / shares	1 Months Ended	6 Months Ended
	Dec. 17, 2013	Mar. 31, 2016
Equity [Abstract]
Dividends per share	$ 0.11	$ 0.22