Mocon (MOCO) 10-Q 7 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 04, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	MOCON INC
Trading Symbol	moco
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		5,752,574
Amendment Flag	false
Entity Central Index Key	67,279
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 6,019	$ 6,332
Trade accounts receivable, less allowance for doubtful accounts of $155 in 2015 and $181 in 2014	8,801	9,877
Other receivables	132	148
Inventories	9,205	8,705
Prepaid income taxes	335	771
Prepaid expenses, other	756	902
Deferred income taxes	715	766
Other current assets	316
Total current assets	26,279	27,501
Property, plant and equipment, net of accumulated depreciation of $8,135 in 2015 and $7,874 in 2014	5,742	5,562
Goodwill	7,543	8,147
Intangible assets, net	9,635	10,831
Other assets	187	194
Deferred income taxes	287	274
TOTAL ASSETS	49,673	52,509
Current liabilities:
Current maturities of notes payable	736	983
Revolving lines of credit	3,905	3,300
Accounts payable	3,562	4,402
Accrued compensation and related expenses	2,973	4,120
Other accrued expenses	1,272	731
Accrued product warranties	293	285
Dividends payable	633	631
Deferred revenue	1,255	997
Total current liabilities	14,629	15,449
Notes payable	14	307
Obligations to former employees	61	67
Deferred income taxes	1,569	1,856
Accrued income taxes	363	357
Total noncurrent liabilities	2,007	2,587
Total liabilities	$ 16,636	$ 18,036
Shareholders' equity:
Capital stock – undesignated. Authorized 3,000,000 shares; none issued and outstanding in 2015 and 2014
Common stock – $0.10 par value. Authorized 22,000,000 shares; issued and outstanding 5,752,574 shares in 2015 and 5,732,505 shares in 2014	$ 575	$ 573
Additional paid-in capital	6,894	6,427
Retained earnings	30,553	30,265
Accumulated other comprehensive loss	(4,985)	(2,792)
Total shareholders' equity	33,037	34,473
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 49,673	$ 52,509

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Trade accounts receivable, allowance for doubtful accounts (in Dollars)	$ 155	$ 181
Property, plant and equipment, accumulated depreciation (in Dollars)	$ 8,135	$ 7,874
Capital stock, authorized shares	3,000,000	3,000,000
Capital stock, shares issued	0	0
Capital stock, shares outstanding	0	0
Common stock, par value (in Dollars per share)	$ 0.10	$ 0.10
Common stock, authorized	22,000,000	22,000,000
Common stock, shares issued	5,752,574	5,732,505
Common stock, shares outstanding	5,752,574	5,732,505

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue:
Products	$ 12,032	$ 12,432	$ 24,201	$ 24,273
Services	2,338	2,437	4,842	5,238
Consulting	679	705	1,366	1,376
Total revenue	15,049	15,574	30,409	30,887
Cost of revenue:
Products	5,497	5,228	10,783	10,670
Services	1,016	1,116	2,064	2,141
Consulting	511	508	1,058	965
Total cost of revenue	7,024	6,852	13,905	13,776
Gross profit	8,025	8,722	16,504	17,111
Selling, general and administrative expenses	5,835	5,947	12,106	12,090
Research and development expenses	1,126	989	2,195	2,114
Operating income	1,064	1,786	2,203	2,907
Other income (expense), net	(113)	(93)	138	(150)
Income before income taxes	951	1,693	2,341	2,757
Income tax expense	305	527	787	861
Net income	$ 646	$ 1,166	$ 1,554	$ 1,896
Net income per common share:
Basic (in Dollars per share)	$ 0.11	$ 0.21	$ 0.27	$ 0.34
Diluted (in Dollars per share)	$ 0.11	$ 0.20	$ 0.27	$ 0.33
Weighted average common shares outstanding:
Basic (in Shares)	5,750	5,655	5,746	5,648
Diluted (in Shares)	5,846	5,775	5,840	5,770
Cash dividends declared per common share (in Dollars per share)	$ 0.11	$ 0.11	$ 0.22	$ 0.22

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net income	$ 646	$ 1,166	$ 1,554	$ 1,896
Other comprehensive income (loss):
Cumulative translation adjustment	520	(206)	(2,193)	(254)
Comprehensive income (loss)	$ 1,166	$ 960	$ (639)	$ 1,642

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 1,554	$ 1,896
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense	322	284
Change in fair value of derivative instrument	(3)	93
Gain on disposition of long-term assets	(16)	(17)
Depreciation and amortization	1,220	1,268
Deferred income taxes	(106)	(143)
Excess tax benefit from employee stock plans	(2)	(5)
Changes in operating assets and liabilities:
Trade accounts receivable, net	511	1,792
Other receivables	7	(200)
Inventories	(650)	(1,084)
Prepaid income taxes	432	(27)
Prepaid expenses, other	(180)	62
Accounts payable	(888)	(686)
Accrued compensation and related expenses	(962)	(226)
Other accrued expenses	293	(4)
Accrued product warranties	20	(104)
Accrued income taxes	294	171
Deferred revenue	281	822
Net cash provided by operating activities	2,127	3,892
Cash flows from investing activities:
Proceeds from maturities of marketable securities		205
Purchases of property, plant and equipment	(861)	(832)
Proceeds from sale of property and equipment	54	56
Cash paid for patents and other intangible assets	(124)	(144)
Other	(2)	(1)
Net cash used in investing activities	(933)	(716)
Cash flows from financing activities:
Proceeds from the revolving lines of credit	11,730	12,886
Payments on the revolving lines of credit	(11,125)	(12,299)
Payments on notes payable and seller financed note payable	(538)	(1,349)
Proceeds from the exercise of stock options	149	179
Excess tax benefit from employee stock plans	2	5
Dividends paid	(1,264)	(1,242)
Net cash used in financing activities	(1,046)	(1,820)
Effect of exchange rate changes on cash and cash equivalents	(461)	(35)
Net (decrease) increase in cash and cash equivalents	(313)	1,321
Cash and cash equivalents:
Beginning of period	6,332	4,133
End of period	6,019	5,454
Supplemental disclosures of cash flow information:
Cash paid during the period for income taxes	229	800
Cash paid during the period for interest	67	113
Supplemental schedule of noncash investing and financing activities:
Dividends accrued	633	623
Purchases of prepaid expenses, fixed assets and intangibles in accounts payable	123	$ 239
Transfers of inventory to fixed assets	$ 28

Note 1 - Condensed Consolidated

Note 1 - Condensed Consolidated Financial Statements	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	Note 1 – Condensed Consolidated Financial Statements The condensed consolidated balance sheet as of June 30, 2015, the condensed consolidated statements of income and comprehensive income (loss), for the three and six-months ended June 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America. These interim unaudited condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to fairly present the financial position, results of operations and cash flows at June 30, and for all periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The results of operations for the three and six-month periods ended June 30, are not necessarily indicative of operating results for the full year. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, previously filed with the Securities and Exchange Commission. MOCON Inc. and its subsidiaries, develops, manufacturers and markets measurement, analytical, monitoring and consulting services for customers in the barrier packaging, food, pharmaceutical, consumer products, industrial hygiene, environmental, air quality monitoring, oil and gas exploration and other industries throughout the world. We report our operating segments as Permeation Products and Services (“Permeation”), Package Testing Products and Services (“Package Testing”), and Industrial Analyzers Products and Services and Other (“Industrial Analyzers and Other”) for financial reporting purposes. Principles of Consolidation The consolidated financial statements include our accounts and our wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.

Note 2 - Inventories

Note 2 - Inventories	6 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	Note 2 – Inventories Inventories consist of the following (expressed in thousands): June 30, December 31, 2015 2014 Finished products $ 1,368 $ 1,628 Work-in-process 3,260 2,574 Raw materials 4,577 4,503 $ 9,205 $ 8,705

Note 3 - Net Income Per Common

Note 3 - Net Income Per Common Share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	Note 3 – Net Income Per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share is computed using the treasury stock method to compute the weighted average common stock outstanding assuming the conversion of potential dilutive common shares. The following table presents a reconciliation of the denominators used in the computation of net income per common share – basic, and net income per common share – diluted, for the three and six-months ended June 30, 2015 and 2014. (expressed in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Weighted shares of common stock outstanding - basic 5,750 5,655 5,746 5,648 Dilutive impact of share-based awards 96 120 94 122 Weighted shares of common stock outstanding - diluted 5,846 5,775 5,840 5,770 Outstanding stock options totaling 201,950 for the three-months ended June 30, and 246,250 for the six-months ended June 30, were excluded from the net income per common share calculation because the shares would be anti-dilutive. Outstanding stock options totaling 116,550 for the three-month period ended June 30, 2014 and none for the six-months ended June 30, 2014 were excluded from the net income per common share calculation because the shares would be anti-dilutive.

Note 4 - Goodwill and Intangibl

Note 4 - Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets Disclosure [Text Block]	Note 4 – Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the six-month period ended June 30, 2015 were as follows (expressed in thousands): Industrial Package Testing Permeation Analyzers & Other Total Balance as of December 31, 2014 $ 5,508 $ 2,029 $ 610 $ 8,147 Foreign currency translation (459 ) (145 ) - (604 ) Balance as of June 30, 2015 $ 5,049 $ 1,884 $ 610 $ 7,543 We test goodwill for impairment annually at the reporting unit level using a fair value approach. We will perform our annual impairment test for goodwill in the fourth quarter. Other intangible assets (all of which are being amortized except projects in process) are as follows (expressed in thousands): As of June 30, 2015 Accumulated Cost Amortization Net Patents $ 1,829 $ (436 ) $ 1,393 Trademarks and trade names 3,376 (682 ) 2,694 Developed technology 6,230 (2,250 ) 3,980 Customer relationships 729 (263 ) 466 Internally developed software 1,085 (100 ) 985 Other intangibles 255 (138 ) 117 $ 13,504 $ (3,869 ) $ 9,635 As of December 31, 2014 Accumulated Cost Amortization Net Patents $ 1,719 $ (416 ) $ 1,303 Trademarks and trade names 3,676 (644 ) 3,032 Developed technology 6,843 (2,091 ) 4,752 Customer relationships 800 (245 ) 555 Internally developed software 1,085 (46 ) 1,039 Other intangibles 255 (105 ) 150 $ 14,378 $ (3,547 ) $ 10,831 Total amortization expense for the three-months ended June 30, and 2014 was $295,000 and $320,000, respectively, and $590,000 and $639,000, respectively, for the six-months ended June 30, 2015 and 2014 . Projects in process are not amortized until the patent or trademark is granted by the regulatory agency or the asset is ready for use. Estimated amortization expense for the remainder of 2015 and each of the four succeeding fiscal years and thereafter based on the intangible assets as of June 30, 2015 is as follows (expressed in thousands): 2015 $ 591 2016 1,164 2017 1,130 2018 1,099 2019 1,098 2020 & Thereafter 3,890 $ 8,972

Note 5 - Accumulated Other Comp

Note 5 - Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block [Abstract]
Comprehensive Income (Loss) Note [Text Block]	Note 5 – Accumulated Other Comprehensive Income (Loss) Adjustments to accumulated other comprehensive income (loss) consist of the following (expressed in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Beginning balance $ (5,505 ) $ 565 $ (2,792 ) $ 613 Foreign currency translation adjustments 520 (206 ) (2,193 ) (254 ) Amounts reclassified to earnings - - - - Accumulated other comprehensive income (loss) $ (4,985 ) $ 359 $ (4,985 ) $ 359

Note 6 - Warranty

Note 6 - Warranty	6 Months Ended
	Jun. 30, 2015
Product Warranties Disclosures [Abstract]
Product Warranty Disclosure [Text Block]	Note 6 – Warranty We provide a warranty for most of our products. Warranties are for periods ranging from ninety days to one year, and cover parts and labor for non-maintenance repairs. Operator abuse, improper use, alteration, damage resulting from accident, or failure to follow manufacturer’s directions are excluded from warranty coverage. Warranty expense is accrued at the time of sale based on historical claims experience. Generally, warranty reserves are also accrued for special rework campaigns for known major product modifications. We also offer extended warranty service contracts for select products when the factory warranty period expires. Warranty provisions and claims for the three and six-months ended June 30, and 2014 were as follows (expressed in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Beginning balance $ 354 $ 322 $ 285 $ 336 Warranty provisions 16 (19 ) 217 51 Warranty claims (77 ) (72 ) (209 ) (156 ) Ending Balance $ 293 $ 231 $ 293 $ 231

Note 7 - Debt

Note 7 - Debt	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	Note 7 – Debt Notes payable consists of the following (expressed in thousands): June 30, 2015 December 31, 2014 Note payable to bank, with interest at 3.46%, payable in monthly principal installments of $73 plus interest through March 28, 2016, collateralized by our assets with the exception of the Dansensor A/S (a wholly owned subsidiary) stock. $ 729 $ 1,166 Seller financed note payable (Seller Note), which was paid off on April 2, 2015 - 95 Capital leases 21 29 Total long-term notes payable 750 1,290 Less current portion of long-term notes payable 736 983 Total long-term notes payable $ 14 $ 307 In the U.S., we have a $6.0 million secured revolving line of credit with a maturity date of March 28, 2016 . Interest is charged monthly at one-month LIBOR (0.18 percent) plus 1.75 basis points which totaled 1.93 percent at June 30, 2015 and December 31, 2014 . The line of credit is secured by our assets with the exception of the outstanding stock of Dansensor. We had $3.9 million and $3.3 million outstanding on the line of credit at June 30, 2015 and December 31, 2014 . Additionally, Dansensor has a DKK 10 million (approximately $1.5 million) available line of credit of which no amounts were outstanding as of June 30, 2015 and December 31, 2014 . Outstanding borrowings on the Denmark line of credit are charged interest at 4.35 percent per year. We are subject to various financial and restrictive covenants in the bank Credit Agreement, including maintaining certain financial ratios and limits on incurring additional indebtedness, making capital and lease expenditures and making share repurchases. We are in compliance with our debt covenants at June 30, 2015 and expect to remain in compliance through the next twelve months . As of June 30, 2015 , the future minimum principal payments of the notes payable for the remainder of 2015 and each of the three succeeding fiscal years are as follows (expressed in thousands): 2015 $ 517 2016 231 2017 2 $ 750

Note 8 - Income Taxes

Note 8 - Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	Note 8 – Income Taxes Our provision for income tax expense was 32.1 percent and 31.2 percent of income before income taxes for the second quarters ended June 30, 2015 and 2014 , respectively. Our provision for income tax expense was 33.6 percent and 31.2 percent of income before income taxes for the first half ended June 30, 2015 and 2014 , respectively. The rate in the second quarters and first halves of 2015 and 2014 was lower than the statutory rate due primarily to the effect of foreign operations where tax rates tend to be lower as well as the domestic manufacturing deduction. The increase in the effective tax rate for 2015 as compared to 2014 is due to the higher proportion of projected taxable income from domestic operations in 2015. As of June 30, 2015 and December 31, 2014 , the liability for gross unrecognized tax benefits was $363,000 and $357,000, respectively. Changes in gross unrecognized tax benefits during the six-months ended June 30, 2015 were for interest accrued during the first quarter. It is expected that the amount of unrecognized tax benefits for positions which we have identified will not materially change in the next twelve months.

Note 9 - Share-based Compensati

Note 9 - Share-based Compensation	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 9 – Share-Based Compensation Stock Option Plans As of June 30, 2015 , we have reserved 559,914 shares of common stock for options and other share-based incentive awards that are still available for grant under our 2006 and 2015 stock incentive plans, and 674,260 shares for options that have been granted under either the 2006 stock incentive plan or the 1998 stock option plan but have not yet been exercised. We issue new shares of common stock upon exercise of stock options. Amounts recognized in the condensed consolidated financial statements related to share-based compensation are as follows (expressed in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Total cost of share-based compensation $ 161 $ 142 $ 322 $ 284 Amount of income tax benefit recognized in earnings (21 ) (22 ) (42 ) (43 ) Amount charged against net income $ 140 $ 120 $ 280 $ 241 The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model (Black-Scholes). We use historical data to estimate the expected price volatility, expected option life and expected forfeiture rate. Our estimates are based on expected volatility for awards granted on daily historical trading data of our common stock for a period equivalent to the expected term of the award. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. We estimate the expected term consistent with historical exercise and cancellation activity of its previous share-based grants with a seven year contractual term. Forfeitures are based on historical experience. The dividend yield is calculated based upon the dividend payments made during the prior four quarters as a percent of the average stock price for that period. A summary of the option activity for the first six months of 2015 is as follows (expressed in thousands, except share and per share amounts) : Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price Term (in thousands) Options outstanding, December 31, 2014 722,675 $ 14.35 4.58 $ 2,555 Granted - - - - Exercised (42,815 ) 12.69 - - Cancelled or expired (5,600 ) 16.15 - - Options outstanding, June 30, 2015 674,260 $ 14.44 4.14 $ 1,230 Options exercisable, June 30, 2015 483,985 $ 13.60 3.47 $ 1,189 The total intrinsic value of options exercised was $42,000 and $108,000 during the three-months ended June 30, 2015 and 2014 , respectively, and $183,000 and $336,000 during the six-months ended June 30, 2015 and 2014 , respectively. A summary of the status of our unvested option shares as of June 30, 2015 is as follows: Weighted Average Grant Date Shares Fair Value Unvested at December 31, 2014 227,400 $ 4.35 Options granted - - Options cancelled (4,625 ) $ 4.14 Options vested (32,506 ) $ 5.41 Unvested at June 30, 2015 190,269 $ 4.13 As of June 30, 2015 , there was $640,000 of total unrecognized compensation cost related to unvested share-based compensation granted under our plans. That cost is expected to be recognized over a weighted-average period of 1.1 years. The total fair value of option shares vested during the three-months ended June 30, 2015 and 2014 was $88,000 and $77,000, respectively, and $176,000 and $154,000 during the six-months ended June 30, 2015 and 2014 , respectively. Employee Stock Purchase Plan On May 27, 2015, our shareholders approved the 2015 Employee Stock Purchase Plan (“Purchase Plan”) whereby 50,000 shares of common stock will be available for future sale. The first offering period will begin January 1, 2016 and provides participants an option to purchase shares of our common stock at a price per share equal to 85 percent of the value of the share of common stock at the beginning or end of the offering period (whichever is less).

Note 10 - Business Segments

Note 10 - Business Segments	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	Note 10 – Business Segments We have four operating segments, structured by differences in products and services, that are regularly reviewed by our chief operating decision maker to make decisions about allocating resources and assessing segment performance. The segment performance is evaluated at segment operating income which is defined as gross profit less selling, general and administrative expenses and research and development expenses. General corporate expenses, including costs associated with various support functions such as human resources, information technology, finance and accounting, and general and administrative costs, are allocated to the reportable segments primarily on the basis of segment gross margin. Our four operating segments have been aggregated into three reportable segments. We aggregated our Other Products and Services operating segment into the Industrial Analyzers Products and Services segment based on minimal business activity and materiality. The Permeation segment includes instruments and services that measure the rate at which various gases and vapors permeate through a variety of materials. The Package Testing segment provides customers with the ability to assess package performance, shelf-life, package improvement, cost reduction, sustainability and product safety using Modified Atmosphere Packaging and other technologies. The Industrial Analyzers and Other segment includes advanced gas analysis and monitoring instrumentation used in applications such as oil and gas exploration, beverage and specialty gas analysis, industrial hygiene and safety, food safety, environmental air monitoring and homeland security. The accounting policies of the reportable segments are the same as those described in Note 1 to the Consolidated Financial Statements found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 . Intersegment revenue for the three and six months ended June 30, 2015 and 2014 were insignificant. Financial information by reportable segment for the three and six-months ended June 30, 2015 and 2014 is as follows (expressed in thousands): Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Revenue Operating Income (loss) Revenue Operating Income (loss) Package Testing $ 6,473 $ 531 $ 13,229 $ 1,419 Permeation 5,966 1,071 12,068 1,749 Industrial Analyzers and Other 2,610 (538 ) 5,112 (965 ) Total $ 15,049 $ 1,064 $ 30,409 $ 2,203 Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Revenue Operating Income Revenue Operating Income Package Testing $ 7,354 $ 679 $ 13,979 $ 729 Permeation 5,044 661 10,892 1,675 Industrial Analyzers and Other 3,176 446 6,016 503 Total $ 15,574 $ 1,786 $ 30,887 $ 2,907

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The consolidated financial statements include our accounts and our wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.

Note 2 - Inventories (Tables)

Note 2 - Inventories (Tables)	6 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	June 30, December 31, 2015 2014 Finished products $ 1,368 $ 1,628 Work-in-process 3,260 2,574 Raw materials 4,577 4,503 $ 9,205 $ 8,705

Note 3 - Net Income Per Commo19

Note 3 - Net Income Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Schedule of Weighted Average Number of Shares [Table Text Block]	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Weighted shares of common stock outstanding - basic 5,750 5,655 5,746 5,648 Dilutive impact of share-based awards 96 120 94 122 Weighted shares of common stock outstanding - diluted 5,846 5,775 5,840 5,770

Note 4 - Goodwill and Intangi20

Note 4 - Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill [Table Text Block]	Industrial Package Testing Permeation Analyzers & Other Total Balance as of December 31, 2014 $ 5,508 $ 2,029 $ 610 $ 8,147 Foreign currency translation (459 ) (145 ) - (604 ) Balance as of June 30, 2015 $ 5,049 $ 1,884 $ 610 $ 7,543
Schedule of Finite-Lived Intangible Assets [Table Text Block]	As of June 30, 2015 Accumulated Cost Amortization Net Patents $ 1,829 $ (436 ) $ 1,393 Trademarks and trade names 3,376 (682 ) 2,694 Developed technology 6,230 (2,250 ) 3,980 Customer relationships 729 (263 ) 466 Internally developed software 1,085 (100 ) 985 Other intangibles 255 (138 ) 117 $ 13,504 $ (3,869 ) $ 9,635 As of December 31, 2014 Accumulated Cost Amortization Net Patents $ 1,719 $ (416 ) $ 1,303 Trademarks and trade names 3,676 (644 ) 3,032 Developed technology 6,843 (2,091 ) 4,752 Customer relationships 800 (245 ) 555 Internally developed software 1,085 (46 ) 1,039 Other intangibles 255 (105 ) 150 $ 14,378 $ (3,547 ) $ 10,831
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	2015 $ 591 2016 1,164 2017 1,130 2018 1,099 2019 1,098 2020 & Thereafter 3,890 $ 8,972

Note 5 - Accumulated Other Co21

Note 5 - Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2015
Disclosure Text Block [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Beginning balance $ (5,505 ) $ 565 $ (2,792 ) $ 613 Foreign currency translation adjustments 520 (206 ) (2,193 ) (254 ) Amounts reclassified to earnings - - - - Accumulated other comprehensive income (loss) $ (4,985 ) $ 359 $ (4,985 ) $ 359

Note 6 - Warranty (Tables)

Note 6 - Warranty (Tables)	6 Months Ended
	Jun. 30, 2015
Product Warranties Disclosures [Abstract]
Schedule of Product Warranty Liability [Table Text Block]	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Beginning balance $ 354 $ 322 $ 285 $ 336 Warranty provisions 16 (19 ) 217 51 Warranty claims (77 ) (72 ) (209 ) (156 ) Ending Balance $ 293 $ 231 $ 293 $ 231

Note 7 - Debt (Tables)

Note 7 - Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments [Table Text Block]	June 30, 2015 December 31, 2014 Note payable to bank, with interest at 3.46%, payable in monthly principal installments of $73 plus interest through March 28, 2016, collateralized by our assets with the exception of the Dansensor A/S (a wholly owned subsidiary) stock. $ 729 $ 1,166 Seller financed note payable (Seller Note), which was paid off on April 2, 2015 - 95 Capital leases 21 29 Total long-term notes payable 750 1,290 Less current portion of long-term notes payable 736 983 Total long-term notes payable $ 14 $ 307
Schedule of Maturities of Long Term Debt and Future Minimum Payments Under Capital Leases [Table Text Block]	2015 $ 517 2016 231 2017 2 $ 750

Note 9 - Share-based Compensa24

Note 9 - Share-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Total cost of share-based compensation $ 161 $ 142 $ 322 $ 284 Amount of income tax benefit recognized in earnings (21 ) (22 ) (42 ) (43 ) Amount charged against net income $ 140 $ 120 $ 280 $ 241
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Weighted Weighted Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Shares Price Term (in thousands) Options outstanding, December 31, 2014 722,675 $ 14.35 4.58 $ 2,555 Granted - - - - Exercised (42,815 ) 12.69 - - Cancelled or expired (5,600 ) 16.15 - - Options outstanding, June 30, 2015 674,260 $ 14.44 4.14 $ 1,230 Options exercisable, June 30, 2015 483,985 $ 13.60 3.47 $ 1,189
Schedule of Share-based Compensation Stock Options Unvested Activity [Table Text Block]	Weighted Average Grant Date Shares Fair Value Unvested at December 31, 2014 227,400 $ 4.35 Options granted - - Options cancelled (4,625 ) $ 4.14 Options vested (32,506 ) $ 5.41 Unvested at June 30, 2015 190,269 $ 4.13

Note 10 - Business Segments (Ta

Note 10 - Business Segments (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Revenue Operating Income (loss) Revenue Operating Income (loss) Package Testing $ 6,473 $ 531 $ 13,229 $ 1,419 Permeation 5,966 1,071 12,068 1,749 Industrial Analyzers and Other 2,610 (538 ) 5,112 (965 ) Total $ 15,049 $ 1,064 $ 30,409 $ 2,203 Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Revenue Operating Income Revenue Operating Income Package Testing $ 7,354 $ 679 $ 13,979 $ 729 Permeation 5,044 661 10,892 1,675 Industrial Analyzers and Other 3,176 446 6,016 503 Total $ 15,574 $ 1,786 $ 30,887 $ 2,907

Note 2 - Inventories (Details)

Note 2 - Inventories (Details) - Major Components of Inventories - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Major Components of Inventories [Abstract]
Finished products	$ 1,368	$ 1,628
Work-in-process	3,260	2,574
Raw materials	4,577	4,503
	$ 9,205	$ 8,705

Note 3 - Net Income Per Commo27

Note 3 - Net Income Per Common Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Stock Option [Member]
Note 3 - Net Income Per Common Share (Details) [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	201,950	116,550	246,250	0

Note 3 - Net Income Per Commo28

Note 3 - Net Income Per Common Share (Details) - Reconciliation of Denominators Used in Computation of Net Income per Common Share - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reconciliation of Denominators Used in Computation of Net Income per Common Share [Abstract]
Weighted shares of common stock outstanding - basic	5,750	5,655	5,746	5,648
Dilutive impact of share-based awards	96	120	94	122
Weighted shares of common stock outstanding - diluted	5,846	5,775	5,840	5,770

Note 4 - Goodwill and Intangi29

Note 4 - Goodwill and Intangible Assets (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets	$ 295,000	$ 320,000	$ 590,000	$ 639,000

Note 4 - Goodwill and Intangi30

Note 4 - Goodwill and Intangible Assets (Details) - Changes in Carrying Amount of Goodwill $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)
Goodwill [Line Items]
Balance	$ 8,147
Foreign currency translation	(604)
Balance	7,543
Package Testing Segment [Member]
Goodwill [Line Items]
Balance	5,508
Foreign currency translation	(459)
Balance	5,049
Permeation Segment [Member]
Goodwill [Line Items]
Balance	2,029
Foreign currency translation	(145)
Balance	1,884
Industrial Analyzers and Other Segment [Member]
Goodwill [Line Items]
Balance	610
Balance	$ 610

Note 4 - Goodwill and Intangi31

Note 4 - Goodwill and Intangible Assets (Details) - Other Intangible Assets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Cost	$ 13,504	$ 14,378
Accumulated Amortization	(3,869)	(3,547)
Net	9,635	10,831
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	1,829	1,719
Accumulated Amortization	(436)	(416)
Net	1,393	1,303
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	3,376	3,676
Accumulated Amortization	(682)	(644)
Net	2,694	3,032
Developed Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	6,230	6,843
Accumulated Amortization	(2,250)	(2,091)
Net	3,980	4,752
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	729	800
Accumulated Amortization	(263)	(245)
Net	466	555
Internally Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	1,085	1,085
Accumulated Amortization	(100)	(46)
Net	985	1,039
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	255	255
Accumulated Amortization	(138)	(105)
Net	$ 117	$ 150

Note 4 - Goodwill and Intangi32

Note 4 - Goodwill and Intangible Assets (Details) - Estimated Amortization Expense $ in Thousands	Jun. 30, 2015USD ($)
Estimated Amortization Expense [Abstract]
2,015	$ 591
2,016	1,164
2,017	1,130
2,018	1,099
2,019	1,098
2020 & Thereafter	3,890
	$ 8,972

Note 5 - Accumulated Other Co33

Note 5 - Accumulated Other Comprehensive Income (Loss) (Details) - Adjustments to Accumulated Other Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Adjustments to Accumulated Other Comprehensive Income (Loss) [Abstract]
Beginning balance	$ (5,505)	$ 565	$ (2,792)	$ 613
Foreign currency translation adjustments	520	(206)	(2,193)	(254)
Accumulated other comprehensive income (loss)	$ (4,985)	$ 359	$ (4,985)	$ 359

Note 6 - Warranty (Details)

Note 6 - Warranty (Details)	6 Months Ended
	Jun. 30, 2015
Product Warranties Disclosures [Abstract]
Product Warranty Period Low End of Range	90 days
Product Warranty Period High End of Range	1 year

Note 6 - Warranty (Details) - W

Note 6 - Warranty (Details) - Warranty Provisions and Claims - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Warranty Provisions and Claims [Abstract]
Beginning balance	$ 354	$ 322	$ 285	$ 336
Warranty provisions	16	(19)	217	51
Warranty claims	(77)	(72)	(209)	(156)
Ending Balance	$ 293	$ 231	$ 293	$ 231

Note 7 - Debt (Details)

Note 7 - Debt (Details) DKK in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Jun. 30, 2015DKK
Revolving Credit Facility [Member]
Note 7 - Debt (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 6,000,000
Debt Instrument, Maturity Date	Mar. 28, 2016
London Interbank Offered Rate (LIBOR)	0.18%	0.18%
Line of Credit Facility, Interest Rate at Period End	1.93%	1.93%	1.93%
Long-term Line of Credit	$ 3,900,000	$ 3,300,000
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Note 7 - Debt (Details) [Line Items]
Debt Instrument, Description of Variable Rate Basis	1.75	1.75
Dansensor [Member]
Note 7 - Debt (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,500,000		DKK 10
Long-term Line of Credit	$ 0	$ 0
Debt Instrument, Interest Rate, Stated Percentage	4.35%		4.35%

Note 7 - Debt (Details) - Long-

Note 7 - Debt (Details) - Long-term Notes Payable - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Capital leases	$ 21	$ 29
Total long-term notes payable	750	1,290
Less current portion of long-term notes payable	736	983
Total long-term notes payable	14	307
Notes Payable to Banks [Member]
Debt Instrument [Line Items]
Note payable to bank, with interest at 3.46%, payable in monthly principal installments of $73 plus interest through March 28, 2016, collateralized by our assets with the exception of the Dansensor A/S (a wholly owned subsidiary) stock.	$ 729	1,166
Seller Financed Secured Note Payable [Member]
Debt Instrument [Line Items]
Seller financed note payable (Seller Note), which was paid off on April 2, 2015		$ 95

Note 7 - Debt (Details) - Lon38

Note 7 - Debt (Details) - Long-term Notes Payable (Parentheticals) - Notes Payable to Banks [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Interest	3.46%	3.46%
Monthly principal installments	$ 73	$ 73

Note 7 - Debt (Details) - Futur

Note 7 - Debt (Details) - Future Minimum Principal Payments of the Long-term Notes Payable - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Note 7 - Debt (Details) - Future Minimum Principal Payments of the Long-term Notes Payable [Line Items]
	$ 750	$ 1,290
Notes Payable [Member]
Note 7 - Debt (Details) - Future Minimum Principal Payments of the Long-term Notes Payable [Line Items]
2,015	517
2,016	231
2,017	2
	$ 750

Note 8 - Income Taxes (Details)

Note 8 - Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent	32.10%	31.20%	33.60%	31.20%
Unrecognized Tax Benefits (in Dollars)	$ 363,000		$ 363,000		$ 357,000

Note 9 - Share-based Compensa41

Note 9 - Share-based Compensation (Details) - USD ($)	May. 27, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Stock Incentive Plan 2006 and 2015 [Member]
Note 9 - Share-based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)		559,914		559,914
2015 Employee Stock Purchase Plan [Member]
Note 9 - Share-based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)	50,000
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	85.00%
Employee Stock Option [Member]
Note 9 - Share-based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares)		674,260		674,260		722,675
Share-based Compensation Arrangement by Share-based Payment Award Fair Value Assumptions Contractual Term				7 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value		$ 42,000	$ 108,000	$ 183,000	$ 336,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		640,000		$ 640,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				1 year 36 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value		$ 88,000	$ 77,000	$ 176,000	$ 154,000
Employee Stock Option [Member] | Stock Incentive Plan 2006 and Stock Option Plan 1998 [Member]
Note 9 - Share-based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares)		674,260		674,260

Note 9 - Share-based Compensa42

Note 9 - Share-based Compensation (Details) - Stock-based Compensation Expense - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock-based Compensation Expense [Abstract]
Total cost of share-based compensation	$ 161	$ 142	$ 322	$ 284
Amount of income tax benefit recognized in earnings	(21)	(22)	(42)	(43)
Amount charged against net income	$ 140	$ 120	$ 280	$ 241

Note 9 - Share-based Compensa43

Note 9 - Share-based Compensation (Details) - Information Regarding Company's Stock Option Plans - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Note 9 - Share-based Compensation (Details) - Information Regarding Company's Stock Option Plans [Line Items]
Shares	674,260	722,675
Weighted Average Exercise Price per Share	$ 14.44	$ 14.35
Weighted Average Remaining Contractual Term	4 years 51 days	4 years 211 days
Aggregate Intrinsic Value	$ 1,230	$ 2,555
Exercised	(42,815)
Exercised	$ 12.69
Cancelled or expired	(5,600)
Cancelled or expired	$ 16.15
Options exercisable, June 30, 2015	483,985
Options exercisable, June 30, 2015	$ 13.60
Options exercisable, June 30, 2015	3 years 171 days
Options exercisable, June 30, 2015	$ 1,189

Note 9 - Share-based Compensa44

Note 9 - Share-based Compensation (Details) - Summary of Status of Company's Unvested Option Shares - 6 months ended Jun. 30, 2015 - Employee Stock Option [Member] - $ / shares	Total
Note 9 - Share-based Compensation (Details) - Summary of Status of Company's Unvested Option Shares [Line Items]
Number of Shares	227,400
Weighted Average Grant Date Fair Value	$ 4.35
Options cancelled	(4,625)
Options cancelled	$ 4.14
Options vested	(32,506)
Options vested	$ 5.41
Number of Shares	190,269
Weighted Average Grant Date Fair Value	$ 4.13

Note 10 - Business Segments (De

Note 10 - Business Segments (Details)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Number of Operating Segments	4
Number of Reportable Segments	3

Note 10 - Business Segments (46

Note 10 - Business Segments (Details) - Segment Information - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Revenue	$ 15,049	$ 15,574	$ 30,409	$ 30,887
Operating income (loss)	1,064	1,786	2,203	2,907
Package Testing Segment [Member]
Segment Reporting Information [Line Items]
Revenue	6,473	7,354	13,229	13,979
Operating income (loss)	531	679	1,419	729
Permeation Segment [Member]
Segment Reporting Information [Line Items]
Revenue	5,966	5,044	12,068	10,892
Operating income (loss)	1,071	661	1,749	1,675
Industrial Analyzers and Other Segment [Member]
Segment Reporting Information [Line Items]
Revenue	2,610	3,176	5,112	6,016
Operating income (loss)	$ (538)	$ 446	$ (965)	$ 503

Uncategorized Items - moco-2015

Label	Element	Value
Net income	us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic	$ 1,166
Net income	us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic	$ 646