Allient (ALNT) 10-Q 4 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 04, 2016
Document and Entity Information
Entity Registrant Name	ALLIED MOTION TECHNOLOGIES INC
Entity Central Index Key	46,129
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		9,402,363
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 6,316	$ 21,278
Trade receivables, net of allowance for doubtful accounts of $772 and $611 at March 31, 2016 and December 31, 2015, respectively	29,729	22,710
Inventories, net	31,279	26,175
Prepaid expenses and other assets	4,980	3,749
Total Current Assets	72,304	73,912
Property, plant and equipment, net	37,603	35,315
Deferred income taxes	5,160	5,099
Intangible assets, net	36,407	29,984
Goodwill	31,293	17,757
Other long term assets	3,651	2,631
Total Assets	186,418	164,698
Current Liabilities:
Debt obligations	21,947	9,860
Accounts payable	14,201	13,000
Accrued liabilities	13,013	11,121
Total Current Liabilities	49,161	33,981
Long-term debt	55,037	57,518
Deferred income taxes	5,141	3,181
Deferred compensation arrangements	3,151	2,636
Pension and post-retirement obligations	4,192	2,785
Total Liabilities	$ 116,682	$ 100,101
Commitments and Contingencies
Stockholders' Equity:
Common stock, no par value, authorized 50,000 shares; 9,402 and 9,276 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	$ 29,151	$ 27,824
Preferred stock, par value $1.00 per share, authorized 5,000 shares; no shares issued or outstanding
Retained earnings	$ 48,537	$ 46,650
Accumulated other comprehensive loss	(7,952)	(9,877)
Total Stockholders' Equity	69,736	64,597
Total Liabilities and Stockholders' Equity	$ 186,418	$ 164,698

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
CONDENSED CONSOLIDATED BALANCE SHEETS
Trade receivables, allowance for doubtful accounts (in dollars)	$ 772	$ 611
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, authorized shares	50,000	50,000
Common stock, shares issued	9,402	9,276
Common stock, shares outstanding	9,402	9,276
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, authorized shares	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Revenues	$ 63,675	$ 59,580
Cost of goods sold	45,398	42,080
Gross margin	18,277	17,500
Operating costs and expenses:
Selling	2,424	2,208
General and administrative	6,409	5,553
Engineering and development	4,050	3,446
Business development	83
Amortization of intangible assets	779	662
Total operating costs and expenses	13,745	11,869
Operating income	4,532	5,631
Other expense (income):
Interest expense	1,532	1,515
Other expense, net	15	(266)
Total other expense, net	1,547	1,249
Income before income taxes	2,985	4,382
Provision for income taxes	(858)	(1,406)
Net income	$ 2,127	$ 2,976
Basic earnings per share:
Earnings per share (in dollars per share)	$ 0.23	$ 0.32
Basic weighted average common shares (in shares)	9,273	9,208
Diluted earnings per share:
Earnings per share (in dollars per share)	$ 0.23	$ 0.32
Diluted weighted average common shares (in shares)	9,273	9,208
Net income	$ 2,127	$ 2,976
Foreign currency translation adjustment	2,029	(4,479)
Change in accumulated (loss) income on derivatives	(104)	(100)
Comprehensive income (loss)	$ 4,052	$ (1,603)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flows From Operating Activities:
Net income	$ 2,127	$ 2,976
Adjustments to reconcile net income to net cash (used in) provided by operating activities (net of working capital acquired):
Depreciation and amortization	2,270	1,807
Deferred income taxes	96	50
Stock compensation expense	513	433
Other	(217)	(198)
Changes in operating assets and liabilities:
Trade receivables	(6,423)	(3,395)
Inventories, net	(16)	(728)
Prepaid expenses and other assets	(484)	(50)
Accounts payable	(520)	1,891
Accrued liabilities	(4,261)	(2,117)
Net cash (used in) provided by operating activities	(6,915)	669
Cash Flows From Investing Activities:
Consideration paid for acquisition, net of cash acquired ($2,329)	(17,000)
Purchase of property and equipment	(984)	(1,436)
Net cash used in investing activities	(17,984)	(1,436)
Cash Flows From Financing Activities:
Borrowings on lines-of-credit, net	10,859	315
Principal payments of long-term debt	(1,875)	(1,500)
Dividends paid to stockholders	(224)	(225)
Stock transactions under employee benefit stock plans	811	1,171
Net cash provided by (used in) by financing activities	9,571	(239)
Effect of foreign exchange rate changes on cash	366	(1,064)
Net decrease in cash and cash equivalents	(14,962)	(2,070)
Cash and cash equivalents at beginning of period	21,278	13,113
Cash and cash equivalents at end of period	$ 6,316	$ 11,043

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash acquired from acquisition	$ 2,329

BASIS OF PREPARATION AND PRESEN

BASIS OF PREPARATION AND PRESENTATION	3 Months Ended
	Mar. 31, 2016
BASIS OF PREPARATION AND PRESENTATION
BASIS OF PREPARATION AND PRESENTATION	1. BASIS OF PREPARATION AND PRESENTATION Allied Motion Technologies Inc. (Allied Motion or the Company) is engaged in the business of designing, manufacturing and selling motion control solutions, which include integrated system solutions as well as individual motion control products, to a broad spectrum of customers throughout the world primarily for the commercial motor, industrial motion, automotive control, medical, and aerospace and defense markets. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars using end of period exchange rates. Changes in reported amounts of assets and liabilities of foreign subsidiaries that occur as a result of changes in exchange rates between foreign subsidiaries’ functional currencies and the U.S. dollar are included in foreign currency translation adjustment. Foreign currency translation adjustment is included in accumulated other comprehensive income, a component of stockholders’ equity in the accompanying condensed consolidated balance sheets. Revenue and expense transactions use an average rate prevailing during the month of the related transaction. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency of each Technology Unit (“TU”) are included in the results of operations as incurred. The condensed consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission and include all adjustments which are, in the opinion of management, necessary for a fair presentation. Certain information and footnote disclosures normally included in financial statements which are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. The Company believes that the disclosures herein are adequate to make the information presented not misleading. The financial data for the interim periods may not necessarily be indicative of results to be expected for the year. The preparation of financial statements in accordance with U.S. GAAP requires management to make certain estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities as well as disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. It is suggested that the accompanying condensed consolidated financial statements be read in conjunction with the Consolidated Financial Statements and related Notes to such statements included in the Annual Report on Form 10-K for the year ended December 31, 2015 that was previously filed by the Company. Reclassifications Certain items in the prior year’s consolidated financial statements and notes to consolidated financial statements have been reclassified to conform to the 2016 presentation.

ACQUISITION

ACQUISITION	3 Months Ended
	Mar. 31, 2016
ACQUISITION
ACQUISITION	2. ACQUISITION Acquisition of Heidrive In December 2015, the Company, through its wholly-owned subsidiary, Allied Motion Technologies B.V., entered into a Share Purchase Agreement (the “Purchase Agreement”) to purchase all of the outstanding equity interests of Heidrive GmbH, a German limited liability company (“Heidrive”) from palero fünf S.à r.l for $22,000 (approximately €20,000), which includes certain management performance bonuses to be paid after closing. On January 12, 2016, the Company completed the acquisition for an adjusted purchase price of $19,329 (€17,800). The purchase price was funded with cash of $8,470 (€7,800) plus $10,859 (€10,000) of borrowings under the Company’s foreign revolving credit facility (Note 9). Heidrive is headquartered in Kelheim, Germany, and has manufacturing facilities located in the Germany and the Czech Republic. The purchase price was allocated to the underlying net assets based on fair value as of the acquisition date, as follows (in thousands): January 12, 2016 Current assets $ Property, plant and equipment Amortizable intangible assets Goodwill Current liabilities ) Long-term liabilities ) Net purchase price $ The purchase price will be subject to further adjustment to reflect, among other things, any adjustments in accordance with the Purchase Agreement, finalization of the opening balance sheet, including adjustments for final valuations of assets and liabilities including intangible assets. The intangible assets acquired consist of customer lists, tradename, and technology (the useful lives of which have not been finalized). Goodwill generated in the acquisition is related to the assembled workforce, synergies between Allied Motion’s other Technology Units (“TUs”) that will occur as a result of the combined engineering knowledge, the ability of each of the TU’s to integrate each other’s products into more fully integrated system solutions and Allied Motion’s ability to utilize Heidrive’s management knowledge in providing complementary product offerings to the Company’s customers.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2016
INVENTORIES
INVENTORIES	3. INVENTORIES Inventories include costs of materials, direct labor and manufacturing overhead, and are stated at the lower of cost (first-in, first-out basis) or market, as follows (in thousands): March 31, 2016 December 31, 2015 Parts and raw materials $ $ Work-in-process Finished goods Less reserves ) ) Inventories, net $ $

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	3 Months Ended
	Mar. 31, 2016
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT	4. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is classified as follows (in thousands): March 31, 2016 December 31, 2015 Land $ $ Building and improvements Machinery, equipment, tools and dies Furniture, fixtures and other Less accumulated depreciation ) ) Property, plant and equipment, net $ $ Depreciation expense was approximately $1,491 and $1,145 for the quarters ended March 31, 2016 and 2015, respectively.

GOODWILL

GOODWILL	3 Months Ended
	Mar. 31, 2016
GOODWILL
GOODWILL	5. GOODWILL The change in the carrying amount of goodwill for the quarter ended March 31, 2016 and year ended December 31, 2015 is as follows (in thousands): March 31, December 31, 2016 2015 Beginning balance $ $ Goodwill acquired (Note 2) — Effect of foreign currency translation ) Ending balance $ $

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2016
INTANGIBLE ASSETS
INTANGIBLE ASSETS	6. INTANGIBLE ASSETS Intangible assets on the Company’s condensed consolidated balance sheets consist of the following (in thousands): March 31, 2016 December 31, 2015 Life Gross Amount Accumulated amortization Net Book Value Gross Amount Accumulated amortization Net Book Value Customer lists 8 - 15 years $ $ ) $ $ $ ) $ Trade name 10 - 15 years ) ) Design and technologies 8 - 15 years ) ) Patents ) ) Total $ $ ) $ $ $ ) $ Intangible assets acquired from the Heidrive acquisition were approximately $6,841 (Note 2). Amortization expense for intangible assets was $779 and $662 for the quarters ending March 31, 2016 and 2015, respectively. Estimated future intangible asset amortization expense as of March 31, 2016 is as follows (in thousands): Estimated Amortization Expense Remainder of 2016 $ 2017 2018 2019 2020 Thereafter Total estimated amortization expense $

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2016
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	7. STOCK-BASED COMPENSATION Stock Incentive Plans The Company’s Stock Incentive Plans provide for the granting of stock awards, including restricted stock, stock options and stock appreciation rights, to employees and non-employees, including directors of the Company. Restricted Stock For the quarter ended March 31, 2016, 86,841 shares of unvested restricted stock were awarded at a weighted average market value of $19.79. Of the restricted shares granted, 58,813 shares have performance based vesting conditions. The value of the shares is amortized to compensation expense over the related service period, which is normally three years, or over the estimated performance period. Shares of unvested restricted stock are forfeited if a recipient leaves the Company before the vesting date. Shares that are forfeited become available for future awards. The following is a summary of restricted stock activity for the quarter ended March 31, 2016: Number of shares Outstanding at beginning of period Awarded Vested ) Forfeited ) Outstanding at end of period Stock based compensation expense, net of forfeitures of $513 and $433 was recorded for the quarter ended March 31, 2016 and 2015, respectively.

ACCRUED LIABILITIES

ACCRUED LIABILITIES	3 Months Ended
	Mar. 31, 2016
ACCRUED LIABILITIES
ACCRUED LIABILITIES	8. ACCRUED LIABILITIES Accrued liabilities consist of the following (in thousands): March 31, 2016 December 31, 2015 Compensation and fringe benefits $ $ Warranty reserve Other accrued expenses $ $

DEBT OBLIGATIONS

DEBT OBLIGATIONS	3 Months Ended
	Mar. 31, 2016
DEBT OBLIGATIONS
DEBT OBLIGATIONS	9. DEBT OBLIGATIONS Debt obligations consisted of the following (in thousands): March 31, 2016 December 31, 2015 Current Borrowings Revolving Credit Facility $ $ — China Credit Facility (6.4% at March 31, 2016) Term Loan, current portion, (2.4% at March 31, 2016) ) Current borrowings $ $ Long-term Debt Term Loan, noncurrent (2.4% at March 31, 2016) ) $ $ Subordinated Notes (14.5%, 13% Cash, 1.5% PIK) Unamortized debt issuance costs ) ) Long-term debt $ $ (1) The effective rate of the Term Loan including the impact of the related hedges is 2.67%. Credit Agreement On January 8, 2016, the Company entered into a First Amendment and Consent (the “Amendment”) to the Credit Agreement with Bank of America, N.A., as administrative agent, and the lenders party thereto (as amended, the “Credit Agreement”). Pursuant to the Amendment, the administrative agent and lenders consented to the Company’s acquisition of Heidrive GmbH, and that such acquisition would not reduce the acquisition basket under the Credit Agreement. The Amendment also amends the Credit Agreement to increase the revolving credit facility from $15,000 to $30,000 and the foreign revolving sublimit from $10,000 to $25,000. The Credit Agreement provides for the $30,000 Revolving Credit Facility and a $50,000 Term Loan (collectively the “Senior Credit Facilities”) each with a five year term that matures in 2018. Borrowings under the Senior Credit Facilities are subject to terms defined in the Credit Agreement. Borrowings bear interest at either the Base Rate plus a margin of 0.25% to 2.00% (currently 1.50%) or the Eurocurrency Rate plus a margin of 1.25% to 3.00% (currently 2.00%), in each case depending on the Company’s ratio of total funded indebtedness to Consolidated EBITDA (the “Total Leverage Ratio”). Principal installments are payable on the Term Loan in varying percentages quarterly through September 30, 2018 with a balloon payment at maturity. The Senior Credit Facilities are secured by substantially all of the Company’s assets. The average outstanding borrowings for 2016 for the Senior Credit Facilities were $47,500. At March 31, 2016, there was approximately $18,600 available under the Senior Credit Facilities. The Credit Agreement contains certain financial covenants related to maximum leverage and minimum fixed charge coverage. The Credit Agreement also includes other covenants and restrictions, including limits on the amount of certain types of capital expenditures. The Company was in compliance with all covenants at March 31, 2016. Senior Subordinated Notes Under the Company’s Note Agreement, the Company sold $30,000 of 14.50% Senior Subordinated Notes due October 18, 2019 (the “Notes”) to Prudential Capital Partners IV, L.P. and its affiliates in a private placement. The interest rate on the Notes is 14.50% with 13.00% payable in cash and 1.50% payable in-kind, quarterly in arrears and the outstanding principal amount of the Notes, together with any accrued and unpaid interest is due on October 18, 2019. The Company may prepay the Notes at any time after October 18, 2016, in whole or in part, at 100% of the principal amount. The Notes are unsecured obligations of the Company and are fully and unconditionally guaranteed by certain of the Company’s subsidiaries. On January 8, 2016, the Company entered into a Consent and Amendment No. 3 to the Note Agreement with Prudential Capital Partners IV, L.P. and its affiliates. Pursuant to the Note Amendment, the note holders consented to the Company’s acquisition of Heidrive GmbH and that such acquisition would not reduce the acquisition basket under the Note Agreement. Other The China Facility provides credit of approximately $1,860 (Chinese Renminbi (“RMB”) 12,000). The China Facility is used for working capital and capital equipment needs at the Company’s China operations, and will mature in November, 2017. The average balance for 2016 was $1,630 (RMB 10,650). At March 31, 2016, there was approximately $210 (RMB 1,350) available under the facility. Maturities of long-term debt are as follows: Total Remainder of 2016 $ 2017 2018 2019 Total $

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2016
DERIVATIVE FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	10. DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk primarily by managing the amount, sources and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During October 2013, the Company entered into two Interest Rate Swaps with a combined notional of $25,000 (representing 50% of the Term Loan balance at that time) that amortize quarterly to a notional of $6,673 at maturity. The notional amount changes over time as loan payments are made. As of March 31, 2016 the amount hedged was $17,625. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2016 and 2015, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. There was no hedge ineffectiveness recorded in the Company’s earnings during the quarters ended March 31, 2016 and 2015. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The Company estimates that an additional $90 will be reclassified as an increase to interest expense over the next year. Additionally, the Company does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as hedges. The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 (in thousands): Fair Value Derivative Instrument Balance Sheet Classification March 31, 2016 December 31, 2015 Interest Rate Swaps Other Liabilities $ $ The effect of the Company’s derivative financial instruments on the condensed consolidated statement of income and comprehensive income is as follows (in thousands): Net deferral in OCI of derivatives (effective portion) Net reclassification from AOCI into income (effective portion) For the quarter ended March 31, Statement of earnings For the quarter ended March 31, Derivative Instruments 2016 2015 classification 2016 2015 Interest Rate Swaps $ ) $ ) Interest expense $ ) $ )

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2016
FAIR VALUE
FAIR VALUE	11. FAIR VALUE Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a framework for measuring fair value which utilizes observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. Preference is given to observable inputs. These two types of inputs create the following three-level fair value hierarchy: Level 1: Quoted prices for identical assets or liabilities in active markets. Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs or significant value drivers are observable. Level 3: Significant inputs to the valuation model that are unobservable. The Company’s financial assets and liabilities include cash and cash equivalents, accounts receivable, debt obligations, accounts payable, and accrued liabilities. The carrying amounts reported in the condensed consolidated balance sheets for these assets approximate fair value because of the immediate or short-term maturities of these financial instruments. The following table presents the Company’s financial assets that are accounted for at fair value on a recurring basis as of March 31, 2016 and December 31, 2015, respectively, by level within the fair value hierarchy (in thousands): March 31, 2016 Level 1 Level 2 Level 3 Assets Pension Plan Assets $ $ — $ — Other long term assets — — Interest rate swaps — ) — December 31, 2015 Level 1 Level 2 Level 3 Assets Pension Plan Assets $ $ — $ — Other long term assets — — Interest rate swaps — ) —

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2016
INCOME TAXES
INCOME TAXES	12. INCOME TAXES The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, settlements with taxing authorities and foreign currency fluctuations. The Company has net operating loss and tax credit carryforwards in certain foreign jurisdictions expiring through 2017. The Company evaluates the future realizability of the tax loss and credit carryforwards considering the anticipated future earnings and tax planning strategies in the foreign jurisdictions. The effective income tax rate as a percentage of income before income taxes was 28.7% and 32.1% in the first quarter 2016 and 2015, respectively. The effective tax rate for the first quarter of 2016 is net of a discrete tax benefit of 5.4% ($160) related to the adoption of ASU 2016-09. The effective rate before discreet item for 2016 and 2015 varies from the statutory rate due to permanent differences in state taxes and the difference in US and foreign tax rates and the mix of foreign and domestic income. The Company adopted ASU No. 2015-17 and ASU No. 2016-09 as of January 1, 2016. These pronouncements impact the accounting and disclosure for income taxes (refer to Note 18).

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2016
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	13 . COMMITMENTS AND CONTINGENCIES Warranty The Company offers warranty coverage for its products. The length of the warranty period for its products varies significantly based on the product being sold. The Company estimates the costs of repairing products under warranty based on the historical average cost of the repairs. The assumptions used to estimate warranty accruals are reevaluated periodically in light of actual experience and, when appropriate, the accruals are adjusted. Estimated warranty costs are recorded at the time of sale of the related product, and are considered a cost of sale. Changes in the Company’s reserve for product warranty claims for the quarter ended March 31, 2016 and the year ended December 31, 2015 were as follows (in thousands): March 31, 2016 December 31, 2015 Warranty reserve at beginning of the year $ $ Warranty reserves acquired — Provision Warranty expenditures ) ) Effect of foreign currency translation ) ) Warranty reserve at end of the period $ $ Litigation The Company is involved in certain actions that have arisen out of the ordinary course of business. Management believes that resolution of the actions will not have a significant adverse effect on the Company’s consolidated financial position or results of operations.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	3 Months Ended
	Mar. 31, 2016
ACCUMULATED OTHER COMPREHENSIVE INCOME
ACCUMULATED OTHER COMPREHENSIVE INCOME	14. ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated Other Comprehensive Income for the quarters ended March 31, 2016 and 2015 is comprised of the following (in thousands): Defined Benefit Plan Liability Cash Flow Hedges Foreign Currency Translation Adjustment Total At December 31, 2015 $ ) $ ) $ ) $ ) Unrealized loss on cash flow hedges — ) — ) Amounts reclassified from AOCI — — Foreign currency translation gain — — At March 31, 2016 $ ) $ ) $ ) $ ) Defined Benefit Plan Liability Cash Flow Hedges Foreign Currency Translation Adjustment Total At December 31, 2014 $ ) $ ) $ ) $ ) Unrealized loss on cash flow hedges — ) — ) Amounts reclassified from AOCI — — Foreign currency translation loss — — ) ) At March 31, 2015 $ ) $ ) $ ) $ ) The realized (gain) loss relating to the Company’s interest rate swap hedges were reclassified from Accumulated Other Comprehensive Income and included in Interest Expense in the Condensed Consolidated Statements of Operations and Comprehensive Income.

DIVIDENDS PER SHARE

DIVIDENDS PER SHARE	3 Months Ended
	Mar. 31, 2016
DIVIDENDS PER SHARE
DIVIDENDS PER SHARE	15. DIVIDENDS PER SHARE The Company declared a quarterly dividend of $0.025 per share in the first quarter of 2016 and 2015. Total dividends declared in the first three months of 2016 and 2015 were $235 and $233, respectively.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2016
SEGMENT INFORMATION
SEGMENT INFORMATION	16 . SEGMENT INFORMATION ASC Topic “Segment Reporting” requires disclosure of operating segments, which as defined, are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company operates in one segment for the manufacture and marketing of motion control products for original equipment manufacturers and end user applications. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in: economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes. Since the Company operates in one segment, all financial information required by “Segment Reporting” can be found in the accompanying condensed consolidated financial statements and within this note. The Company’s wholly owned foreign subsidiaries, located in The Netherlands, Sweden, Germany, Portugal, China and Mexico are included in the accompanying condensed consolidated financial statements. Financial information related to the foreign subsidiaries is summarized below (in thousands): For the three months ended March 31, 2016 2015 Revenues derived from foreign subsidiaries $ $ Identifiable foreign assets were $81,408 and $56,444 as of March 31, 2016 and December 31, 2015, respectively. Revenues derived from foreign subsidiaries and identifiable assets outside of the United States are primarily attributable to Europe. Sales to customers outside of the United States by all subsidiaries were $28,575 and $19,814 during the quarters ended March 31, 2016 and 2015, respectively. For first quarter 2016 and 2015, one customer accounted for 18% and 23% of revenues, respectively and as of March 31, 2016 and December 31, 2015, for 16% and 12% of trade receivables, respectively. As of March 31, 2016 and December 31 2015, another customer accounted for 15% of trade receivables.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2016
RECENT ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS	17 . RECENT ACCOUNTING PRONOUNCEMENTS Recently adopted accounting pronouncements Effective January 1, 2016, the Company adopted ASU 2016-09, “Compensation — Stock Compensation (Topic 718).” The FASB issued ASU 2016-09 in March 2016 as part of its simplification initiative and affects all entities that issue share-based payment awards to their employees. The amendments in this update cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. The amendments are effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2016 using either prospective, retrospective or modified retrospective transition method, depending on the area covered in this update. As permitted within the amendment, the Company elected to early adopt and prospectively apply the provisions of this amendment as of January 1, 2016. As a result of the adoption, a tax benefit of $160 was recorded in the current quarter. Effective January 1, 2016, the Company adopted ASU 2015-03, “ Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ” on a retrospective basis. The updated accounting guidance requires debt issuance costs to be presented as a deduction from the corresponding debt liability instead of the historical presentation as an unamortized debt issuance asset. The impacts of adopting the new standard as of December 31, 2015, were a decrease in other assets and a decrease in long term debt of $1,388. Recently issued accounting pronouncements In February 2016, the FASB issued ASU 2016-02, which amends the FASB Accounting Standards Codification and creates Topic 842, “ Leases .” The new topic supersedes Topic 840, “ Leases ,” and increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosures of key information about leasing arrangements. The guidance is effective for reporting periods beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, “ Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments .” This standard requires that an entity recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The update requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This standard is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. ASU 2015-16 is not expected to have a material impact on the Company’s condensed consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes.” Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. The Update requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for our financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Earlier application is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, “ Simplifying the Measurement of Inventory .” The standard applies to inventory that is measured using first-in, first-out (FIFO) or average cost. An entity should measure inventory within the scope of the standard at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendments in ASU 2015-11 more closely align the measurement of inventory in U.S. GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). The standard is effective for fiscal years beginning after December 15, 2016. ASU 2015-11 is not expected to have a material impact on the Company’s condensed consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance will be effective for the Company beginning in the first quarter of fiscal year 2018 using one of two prescribed retrospective methods. Early adoption is not permitted. The Company has not yet selected a transition method, or determined the effect of the standard on its ongoing financial reporting.

BASIS OF PREPARATION AND PRES24

BASIS OF PREPARATION AND PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2016
BASIS OF PREPARATION AND PRESENTATION
Reclassifications	Reclassifications Certain items in the prior year’s consolidated financial statements and notes to consolidated financial statements have been reclassified to conform to the 2016 presentation.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	3 Months Ended
	Mar. 31, 2016
ACQUISITION
Schedule of purchase price allocation	The purchase price was allocated to the underlying net assets based on fair value as of the acquisition date, as follows (in thousands): January 12, 2016 Current assets $ Property, plant and equipment Amortizable intangible assets Goodwill Current liabilities ) Long-term liabilities ) Net purchase price $

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2016
INVENTORIES
Schedule of inventories including costs of materials, direct labor and manufacturing overhead, and stated at the lower of cost (first-in, first-out basis) or market	Inventories include costs of materials, direct labor and manufacturing overhead, and are stated at the lower of cost (first-in, first-out basis) or market, as follows (in thousands): March 31, 2016 December 31, 2015 Parts and raw materials $ $ Work-in-process Finished goods Less reserves ) ) Inventories, net $ $

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2016
PROPERTY, PLANT AND EQUIPMENT
Schedule of classification of property, plant and equipment	Property, plant and equipment is classified as follows (in thousands): March 31, 2016 December 31, 2015 Land $ $ Building and improvements Machinery, equipment, tools and dies Furniture, fixtures and other Less accumulated depreciation ) ) Property, plant and equipment, net $ $

GOODWILL (Tables)

GOODWILL (Tables)	3 Months Ended
	Mar. 31, 2016
GOODWILL
Schedule of change in the carrying amount of goodwill	The change in the carrying amount of goodwill for the quarter ended March 31, 2016 and year ended December 31, 2015 is as follows (in thousands): March 31, December 31, 2016 2015 Beginning balance $ $ Goodwill acquired (Note 2) — Effect of foreign currency translation ) Ending balance $ $

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2016
INTANGIBLE ASSETS
Schedule of intangible assets	Intangible assets on the Company’s condensed consolidated balance sheets consist of the following (in thousands): March 31, 2016 December 31, 2015 Life Gross Amount Accumulated amortization Net Book Value Gross Amount Accumulated amortization Net Book Value Customer lists 8 - 15 years $ $ ) $ $ $ ) $ Trade name 10 - 15 years ) ) Design and technologies 8 - 15 years ) ) Patents ) ) Total $ $ ) $ $ $ ) $
Schedule of estimated amortization expense for intangible assets	Estimated future intangible asset amortization expense as of March 31, 2016 is as follows (in thousands): Estimated Amortization Expense Remainder of 2016 $ 2017 2018 2019 2020 Thereafter Total estimated amortization expense $

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2016
STOCK-BASED COMPENSATION
Summary of restricted stock activity	Number of shares Outstanding at beginning of period Awarded Vested ) Forfeited ) Outstanding at end of period

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2016
ACCRUED LIABILITIES
Schedule of accrued liabilities	Accrued liabilities consist of the following (in thousands): March 31, 2016 December 31, 2015 Compensation and fringe benefits $ $ Warranty reserve Other accrued expenses $ $

DEBT OBLIGATIONS (Tables)

DEBT OBLIGATIONS (Tables)	3 Months Ended
	Mar. 31, 2016
DEBT OBLIGATIONS
Schedule of debt obligations	March 31, 2016 December 31, 2015 Current Borrowings Revolving Credit Facility $ $ — China Credit Facility (6.4% at March 31, 2016) Term Loan, current portion, (2.4% at March 31, 2016) ) Current borrowings $ $ Long-term Debt Term Loan, noncurrent (2.4% at March 31, 2016) ) $ $ Subordinated Notes (14.5%, 13% Cash, 1.5% PIK) Unamortized debt issuance costs ) ) Long-term debt $ $ (1) The effective rate of the Term Loan including the impact of the related hedges is 2.67%.
Schedule of maturities of long-term debt	Total Remainder of 2016 $ 2017 2018 2019 Total $

DERIVATIVE FINANCIAL INSTRUME33

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2016
DERIVATIVE FINANCIAL INSTRUMENTS
Schedule of fair value of the Company's derivative financial instruments as well as their classification on the condensed consolidated balance sheets	The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 (in thousands): Fair Value Derivative Instrument Balance Sheet Classification March 31, 2016 December 31, 2015 Interest Rate Swaps Other Liabilities $ $
Schedule of effect of the Company's derivative financial instruments on the condensed consolidated statement of income and comprehensive income	The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 (in thousands): Fair Value Derivative Instrument Balance Sheet Classification March 31, 2016 December 31, 2015 Interest Rate Swaps Other Liabilities $ $ The effect of the Company’s derivative financial instruments on the condensed consolidated statement of income and comprehensive income is as follows (in thousands): Net deferral in OCI of derivatives (effective portion) Net reclassification from AOCI into income (effective portion) For the quarter ended March 31, Statement of earnings For the quarter ended March 31, Derivative Instruments 2016 2015 classification 2016 2015 Interest Rate Swaps $ ) $ ) Interest expense $ ) $ )

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2016
FAIR VALUE
Schedule of financial assets accounted for at fair value on a recurring basis	The following table presents the Company’s financial assets that are accounted for at fair value on a recurring basis as of March 31, 2016 and December 31, 2015, respectively, by level within the fair value hierarchy (in thousands): March 31, 2016 Level 1 Level 2 Level 3 Assets Pension Plan Assets $ $ — $ — Other long term assets — — Interest rate swaps — ) — December 31, 2015 Level 1 Level 2 Level 3 Assets Pension Plan Assets $ $ — $ — Other long term assets — — Interest rate swaps — ) —

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2016
COMMITMENTS AND CONTINGENCIES
Schedule of changes in the reserve for product warranty claims	Changes in the Company’s reserve for product warranty claims for the quarter ended March 31, 2016 and the year ended December 31, 2015 were as follows (in thousands): March 31, 2016 December 31, 2015 Warranty reserve at beginning of the year $ $ Warranty reserves acquired — Provision Warranty expenditures ) ) Effect of foreign currency translation ) ) Warranty reserve at end of the period $ $

ACCUMULATED OTHER COMPREHENSI36

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	3 Months Ended
	Mar. 31, 2016
ACCUMULATED OTHER COMPREHENSIVE INCOME
Schedule of accumulated other comprehensive income	Accumulated Other Comprehensive Income for the quarters ended March 31, 2016 and 2015 is comprised of the following (in thousands): Defined Benefit Plan Liability Cash Flow Hedges Foreign Currency Translation Adjustment Total At December 31, 2015 $ ) $ ) $ ) $ ) Unrealized loss on cash flow hedges — ) — ) Amounts reclassified from AOCI — — Foreign currency translation gain — — At March 31, 2016 $ ) $ ) $ ) $ ) Defined Benefit Plan Liability Cash Flow Hedges Foreign Currency Translation Adjustment Total At December 31, 2014 $ ) $ ) $ ) $ ) Unrealized loss on cash flow hedges — ) — ) Amounts reclassified from AOCI — — Foreign currency translation loss — — ) ) At March 31, 2015 $ ) $ ) $ ) $ )

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2016
SEGMENT INFORMATION
Schedule of financial information related to the foreign subsidiaries	Financial information related to the foreign subsidiaries is summarized below (in thousands): For the three months ended March 31, 2016 2015 Revenues derived from foreign subsidiaries $ $

ACQUISITION (Details)

ACQUISITION (Details) € in Thousands, $ in Thousands	Jan. 12, 2016USD ($)	Jan. 12, 2016EUR (€)	Mar. 31, 2016USD ($)	Jan. 12, 2016EUR (€)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
ACQUISITIONS
Goodwill			$ 31,293		$ 17,757	$ 18,303
Heidrive
ACQUISITIONS
Acquisition cost	$ 22,000	€ 20,000
Cash paid for acquisition	8,470	€ 7,800
Borrowings used to fund acquisition	10,859			€ 10,000
Current assets	7,981
Property, plant and equipment	2,459
Amortizable intangible assets	6,841
Goodwill	12,755
Current liabilities	(7,695)
Long-term liabilities	(3,012)
Net purchase price	$ 19,329			€ 17,800

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
INVENTORIES
Parts and raw materials	$ 27,117	$ 23,710
Work-in-process	4,699	2,404
Finished goods	4,744	3,730
Inventory, gross	36,560	29,844
Less reserves	(5,281)	(3,669)
Inventories, net	$ 31,279	$ 26,175

PROPERTY, PLANT AND EQUIPMENT40

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Property, plant and equipment
Property, plant and equipment, gross	$ 61,115		$ 57,180
Less accumulated depreciation	(23,512)		(21,865)
Property, plant and equipment, net	37,603		35,315
Depreciation expense	1,491	$ 1,145
Land
Property, plant and equipment
Property, plant and equipment, gross	979		970
Building and improvements
Property, plant and equipment
Property, plant and equipment, gross	9,866		9,771
Machinery, equipment, tools and dies
Property, plant and equipment
Property, plant and equipment, gross	40,923		37,782
Furniture, fixtures and other
Property, plant and equipment
Property, plant and equipment, gross	$ 9,347		$ 8,657

GOODWILL (Details)

GOODWILL (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Change in goodwill
Beginning balance	$ 17,757	$ 18,303
Goodwill acquired (Note 2)	12,755
Effect of foreign currency translation	781	(546)
Ending balance	$ 31,293	$ 17,757

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Jan. 12, 2016	Dec. 31, 2015
Intangible assets subject to amortization
Gross Amount	$ 48,460			$ 41,137
Accumulated amortization	(12,053)			(11,153)
Total estimated amortization expense	36,407			29,984
Amortization expense for intangible assets	779	$ 662
Estimated amortization expense
Remainder of 2016	2,346
2,017	3,128
2,018	3,128
2,019	3,128
2,020	3,128
Thereafter	21,549
Total estimated amortization expense	36,407			29,984
Heidrive
Intangible assets subject to amortization
Intangible assets acquired from the acquisition			$ 6,841
Customer lists
Intangible assets subject to amortization
Gross Amount	37,639			34,149
Accumulated amortization	(8,435)			(7,785)
Total estimated amortization expense	29,204			26,364
Estimated amortization expense
Total estimated amortization expense	$ 29,204			26,364
Customer lists | Minimum
Intangible assets subject to amortization
Estimated Life	8 years
Customer lists | Maximum
Intangible assets subject to amortization
Estimated Life	15 years
Trade name
Intangible assets subject to amortization
Gross Amount	$ 6,025			4,775
Accumulated amortization	(1,909)			(1,793)
Total estimated amortization expense	4,116			2,982
Estimated amortization expense
Total estimated amortization expense	$ 4,116			2,982
Trade name | Minimum
Intangible assets subject to amortization
Estimated Life	10 years
Trade name | Maximum
Intangible assets subject to amortization
Estimated Life	15 years
Design and technologies
Intangible assets subject to amortization
Gross Amount	$ 4,772			2,189
Accumulated amortization	(1,703)			(1,570)
Total estimated amortization expense	3,069			619
Estimated amortization expense
Total estimated amortization expense	$ 3,069			619
Design and technologies | Minimum
Intangible assets subject to amortization
Estimated Life	8 years
Design and technologies | Maximum
Intangible assets subject to amortization
Estimated Life	15 years
Patents
Intangible assets subject to amortization
Gross Amount	$ 24			24
Accumulated amortization	(6)			(5)
Total estimated amortization expense	18			19
Estimated amortization expense
Total estimated amortization expense	$ 18			$ 19

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Additional disclosures
Compensation expense, net of forfeitures	$ 513	$ 433
Restricted Stock
Stock-Based Compensation
Weighted average value (in dollars per share)	$ 19.79
Service period over which value of the shares is amortized to compensation expense	3 years
Number of Nonvested Restricted Shares
Outstanding at beginning of period (in shares)	367,199
Awarded (in shares)	86,841
Vested (in shares)	(105,950)
Forfeited (in shares)	(4,317)
Outstanding at end of period (in shares)	343,773
Additional disclosures
Compensation expense, net of forfeitures	$ 513	$ 433
Restricted Stock | Performance based vesting
Number of Nonvested Restricted Shares
Awarded (in shares)	58,813

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
ACCRUED LIABILITIES
Compensation and fringe benefits	$ 6,178	$ 7,791
Warranty reserve	1,073	780	$ 786
Other accrued expenses	5,762	2,550
Accrued liabilities	$ 13,013	$ 11,121

DEBT OBLIGATIONS (Details)

DEBT OBLIGATIONS (Details) ¥ in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016CNY (¥)	Mar. 31, 2016USD ($)	Mar. 31, 2016USD ($)	Jan. 08, 2016USD ($)	Dec. 31, 2015USD ($)
Debt Obligations
Current borrowings			$ 21,947		$ 9,860
Unamortized debt issuance costs			(1,276)		(1,388)
Long-term debt			55,037		57,518
Maturities of long-term debt
Remainder of 2016			21,947
2,017			10,374
2,018			15,939
2,019			30,000
Total			78,260
Senior Credit Facilities
Debt Obligations
Average outstanding borrowings		$ 47,500
Available borrowing capacity			18,600
Senior Credit Facilities | Base Rate
Debt Obligations
Applicable margin (as a percent)	1.50%	1.50%
Senior Credit Facilities | Base Rate | Minimum
Debt Obligations
Applicable margin (as a percent)	0.25%	0.25%
Senior Credit Facilities | Base Rate | Maximum
Debt Obligations
Applicable margin (as a percent)	2.00%	2.00%
Senior Credit Facilities | Eurocurrency Rate
Debt Obligations
Applicable margin (as a percent)	2.00%	2.00%
Senior Credit Facilities | Eurocurrency Rate | Minimum
Debt Obligations
Applicable margin (as a percent)	1.25%	1.25%
Senior Credit Facilities | Eurocurrency Rate | Maximum
Debt Obligations
Applicable margin (as a percent)	3.00%	3.00%
Revolving Credit Facility
Debt Obligations
Current borrowings			11,357
Maximum borrowing capacity			30,000	$ 30,000
Debt instrument term	5 years	5 years
Revolving Credit Facility | Foreign
Debt Obligations
Maximum borrowing capacity sublimit				25,000
Revolving Credit Facility | Amount before increase
Debt Obligations
Maximum borrowing capacity				15,000
Revolving Credit Facility | Amount before increase | Foreign
Debt Obligations
Maximum borrowing capacity sublimit				$ 10,000
Term Loan
Debt Obligations
Current borrowings			$ 8,938		8,219
Interest rate at period end (as a percent)	2.40%		2.40%
Long-term debt			$ 26,313		28,906
Effective rate (as a percent)	2.67%		2.67%
Maximum borrowing capacity			$ 50,000
Debt instrument term	5 years	5 years
China Credit Facility
Debt Obligations
Current borrowings			$ 1,652		1,641
Interest rate at period end (as a percent)	6.40%		6.40%
Maximum borrowing capacity	¥ 12,000		$ 1,860
Average outstanding borrowings	10,650	$ 1,630
Available borrowing capacity	¥ 1,350		210
Subordinated Notes
Debt Obligations
Long-term debt			$ 30,000		$ 30,000
Interest rate (as a percent)	14.50%		14.50%		14.50%
Interest rate payable in cash (as a percent)	13.00%		13.00%		13.00%
Interest rate payable in-kind (as a percent)	1.50%		1.50%		1.50%
Principal amount of debt borrowed			$ 30,000
Percentage of principal amount of notes that may prepay	100.00%	100.00%

DERIVATIVE FINANCIAL INSTRUME46

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Interest Rate Swaps $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)	Oct. 31, 2013USD ($)derivative
Derivative financial instruments
Number of derivative instruments | derivative				2
Notional amount of interest rate swap derivatives				$ 25,000
Ratio of notional amount to term loan (as a percent)				50.00%
Notional amount of interest rate swap derivatives at maturity				$ 6,673
Amount hedged	$ 17,625
Hedge ineffectiveness recorded in earnings	0	$ 0
Estimated amount to be reclassified as an increase to interest expense	90
Effect of derivative financial instruments on the consolidated statement of income and comprehensive income
Net deferral in OCI of derivatives (effective portion)	(136)	(151)
Interest expense
Effect of derivative financial instruments on the consolidated statement of income and comprehensive income
Net reclassification from AOCI into income (effective portion)	(32)	$ (51)
Other Liabilities
Derivative financial instruments
Interest rate swaps	$ 131		$ 27

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets
Other long term assets	$ 3,651	$ 2,631
Recurring basis | Level 1
Assets
Pension Plan Assets	4,910	4,986
Other long term assets	3,146	2,631
Recurring basis | Level 2
Assets
Interest rate swaps	$ (131)	$ (27)

INCOME TAXES (Details)

INCOME TAXES (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2015
Effective income tax rate
Discrete tax benefit (as a percent)	5.4
Discrete tax benefit	$ 160
Effective income tax rate (as a percent)	28.70%	32.10%

COMMITMENTS AND CONTINGENCIES49

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Changes in the reserve for product warranty claims
Warranty reserve at beginning of the year	$ 780	$ 786
Warranty reserves acquired	297
Provision	49	142
Warranty expenditures	(43)	(123)
Effect of foreign currency translation	(10)	(25)
Warranty reserve at end of year	$ 1,073	$ 780

ACCUMULATED OTHER COMPREHENSI50

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accumulated Other Comprehensive Income.
Balances	$ 64,597
Balances	69,736
Total
Accumulated Other Comprehensive Income.
Balances	(9,877)	$ (5,683)
Unrealized loss on cash flow hedges	(136)	(151)
Amounts reclassified from AOCI	32	51
Foreign currency translation gain (loss)	2,029	(4,479)
Balances	(7,952)	(10,262)
Defined Benefit Plan Liability
Accumulated Other Comprehensive Income.
Balances	(688)	(853)
Balances	(688)	(853)
Cash Flow Hedges
Accumulated Other Comprehensive Income.
Balances	(27)	(2)
Unrealized loss on cash flow hedges	(136)	(151)
Amounts reclassified from AOCI	32	51
Balances	(131)	(102)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income.
Balances	(9,162)	(4,828)
Foreign currency translation gain (loss)	2,029	(4,479)
Balances	$ (7,133)	$ (9,307)

DIVIDENDS PER SHARE (Details)

DIVIDENDS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
DIVIDENDS PER SHARE
Dividends declared (in dollars per share)	$ 0.025	$ 0.025
Total dividends declared	$ 235	$ 233

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016USD ($)segmentcustomer	Mar. 31, 2015USD ($)customer	Dec. 31, 2015USD ($)customer
Segment information
Number of operating segments | segment	1
Revenues	$ 63,675	$ 59,580
Identifiable assets	$ 186,418		$ 164,698
Sales
Segment information
Number of customers | customer	1	1
Sales | Customer A
Segment information
Percentage of concentration risk	18.00%	23.00%
Trade receivables.
Segment information
Number of customers | customer	2		2
Trade receivables. | Customer A
Segment information
Percentage of concentration risk	16.00%		12.00%
Trade receivables. | Customer B
Segment information
Percentage of concentration risk	15.00%		15.00%
Outside the United States
Segment information
Revenues	$ 28,575	$ 19,814
Wholly owned foreign subsidiaries
Segment information
Revenues	25,607	$ 17,427
Identifiable assets	$ 81,408		$ 56,444

RECENT ACCOUNTING PRONOUNCEME53

RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Effect of early adoption of recently issued accounting pronouncements
Tax benefit	$ 160
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect
Effect of early adoption of recently issued accounting pronouncements
Tax benefit	$ 160
Accounting Standard Update 2015 03 | Retrospective Adjustment | Other Assets
Effect of early adoption of recently issued accounting pronouncements
Debt issuance costs		$ (1,388)
Accounting Standard Update 2015 03 | Retrospective Adjustment | Long-term Debt
Effect of early adoption of recently issued accounting pronouncements
Debt issuance costs		$ (1,388)