Mocon (MOCO) 10-Q 6 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 02, 2016
Entity Registrant Name	MOCON INC
Entity Central Index Key	67,279
Trading Symbol	moco
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		5,794,000
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 5,962	$ 6,344
Trade accounts receivable, less allowance for doubtful accounts of $167 in 2016 and $141 in 2015	10,228	8,786
Other receivables	161	326
Inventories	7,726	7,790
Prepaid income taxes	479	559
Prepaid expenses, other	1,194	897
Total current assets	25,750	24,702
Property, plant and equipment, net of accumulated depreciation of $8,630 in 2016 and $8,154 in 2015	5,841	5,995
Goodwill	7,697	7,437
Intangible assets, net	8,999	8,986
Other assets	91	88
Deferred income taxes	216	211
TOTAL ASSETS	48,594	47,419
Current liabilities:
Current maturities of notes payable	63	65
Accounts payable	3,411	3,033
Accrued compensation and related expenses	3,092	3,969
Other accrued expenses	1,068	811
Accrued product warranties	242	223
Dividends payable	637	637
Deferred revenue	1,383	862
Total current liabilities	9,896	9,600
Revolving lines of credit	2,850	2,793
Notes payable	79	93
Obligations to former employees	36	34
Deferred income taxes	1,199	1,227
Accrued income taxes	201	201
Total noncurrent liabilities	4,365	4,348
Total liabilities	$ 14,261	$ 13,948
Shareholders' equity:
Capital stock – undesignated. Authorized 3,000,000 shares; none issued and outstanding in 2016 and 2015
Common stock – $0.10 par value. Authorized 22,000,000 shares; issued and outstanding 5,794,000 shares in 2016 and 5,792,126 shares in 2015	$ 579	$ 579
Additional paid-in capital	7,616	7,412
Retained earnings	30,461	30,700
Accumulated other comprehensive loss	(4,323)	(5,220)
Total shareholders' equity	34,333	33,471
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 48,594	$ 47,419

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Trade accounts receivable, allowance for doubtful accounts	$ 167	$ 141
Property, plant and equipment, accumulated depreciation	$ 8,630	$ 8,154
Capital stock, authorized shares (in shares)	3,000,000	3,000,000
Capital stock, shares issued (in shares)	0	0
Capital stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, authorized (in shares)	22,000,000	22,000,000
Common stock, shares issued (in shares)	5,794,000	5,792,126
Common stock, shares outstanding (in shares)	5,794,000	5,792,126

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Products	$ 11,384	$ 12,169
Services	2,812	2,504
Consulting	534	687
Total revenue	14,730	15,360
Cost of revenue:
Products	4,970	5,281
Services	1,174	1,053
Consulting	482	547
Total cost of revenue	6,626	6,881
Gross profit	8,104	8,479
Selling, general and administrative expenses	6,138	6,271
Research and development expenses	1,203	1,069
Operating income	763	1,139
Other income (expense), net	(35)	251
Income before income taxes	728	1,390
Income tax expense	240	482
Net income	$ 488	$ 908
Net income per common share:
Basic (in dollars per share)	$ 0.08	$ 0.16
Diluted (in dollars per share)	$ 0.08	$ 0.16
Basic (in shares)	5,797	5,742
Diluted (in shares)	5,816	5,837
Cash dividends declared per common share (in dollars per share)	$ 0.11	$ 0.11

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net income	$ 488	$ 908
Other comprehensive income (loss):
Cumulative translation adjustment	897	(2,713)
Comprehensive income (loss)	$ 1,385	$ (1,805)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 488	$ 908
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense	$ 186	161
Change in fair value of derivative instrument		11
Loss on disposition of long-term assets	$ 18	6
Depreciation and amortization	689	605
Deferred income taxes	$ (171)	(59)
Excess tax benefit from employee stock plans		(1)
Changes in operating assets and liabilities:
Trade accounts receivable, net	$ (1,233)	(209)
Other receivables	174	(66)
Inventories	165	(441)
Prepaid income taxes	(345)	237
Prepaid expenses, other	(222)	(122)
Accounts payable	399	(1,312)
Accrued compensation and related expenses	(966)	(464)
Other accrued expenses	121	312
Accrued product warranties	16	83
Accrued income taxes	276	255
Deferred revenue	498	890
Net cash provided by operating activities	93	794
Cash flows from investing activities:
Purchases of property, plant and equipment	(137)	(458)
Proceeds from sale of property and equipment	43	9
Cash paid for patents and other intangible assets	$ (8)	(51)
Other		(1)
Net cash used in investing activities	$ (102)	(501)
Cash flows from financing activities:
Proceeds from the revolving lines of credit	850	5,843
Payments on the revolving lines of credit	(793)	(5,858)
Payments on notes payable and seller financed note payable	(17)	(232)
Proceeds from the exercise of stock options	$ 19	106
Excess tax benefit from employee stock plans		1
Dividends paid	$ (637)	(632)
Net cash used in financing activities	(578)	(772)
Effect of exchange rate changes on cash and cash equivalents	(205)	553
Net decrease in cash and cash equivalents	(382)	(1,032)
Beginning of period	6,344	6,332
End of period	5,962	5,300
Supplemental disclosures of cash flow information:
Cash paid during the period for income taxes	205	114
Cash paid during the period for interest	26	9
Supplemental schedule of noncash investing and financing activities:
Dividends accrued	637	632
Purchases of prepaid expenses, fixed assets and intangibles in accounts payable	(142)	(470)
Transfers of inventory to fixed assets	$ 32	$ 10

Note 1 - Condensed Consolidated

Note 1 - Condensed Consolidated Financial Statements	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	Note 1 – Condensed Consolidated Financial Statements The condensed consolidated balance sheet as of March 31, 2016, the condensed consolidated statements of income and comprehensive income (loss), for the three-months ended March 31, 2016 and 2015 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 March 31, 2016, 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-month period ended March 31, 2016 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, 2015, 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 Package Testing Products and Services (“Package Testing”), Permeation Products and Services (“Permeation”), 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	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note 2 – Inventories Inventories consist of the following (expressed in thousands): March 31, December 31, 2016 2015 Finished products $ 1,555 $ 1,366 Work-in-process 2,280 2,375 Raw materials 3,891 4,049 Total Inventory $ 7,726 $ 7,790

Note 3 - Net Income Per Common

Note 3 - Net Income Per Common Share	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
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-months ended March 31, 2016 and 2015 (expressed in thousands): Three Months Ended March 31, 2016 2015 Weighted shares of common stock outstanding - basic 5,797 5,742 Dilutive impact of share-based awards 19 95 Weighted shares of common stock outstanding - diluted 5,816 5,837 Outstanding stock options totaling 666,235 and 145,200 for the three-months ended March 31, 2016 and March 31, 2015, respectively, were excluded from the net income per common share calculation because the shares would be anti-dilutive.

Note 4 - Goodwill and Other Int

Note 4 - Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	Note 4 – Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the three-month period ended March 31, 2016 were as follows (expressed in thousands): Package Industrial Testing Permeation Analyzers & Other Total Balance as of December 31, 2015 $ 4,967 $ 1,860 $ 610 $ 7,437 Foreign currency translation 198 62 - 260 Balance as of March 31, 2016 $ 5,165 $ 1,922 $ 610 $ 7,697 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 or earlier if impairment indicators are identified. Other intangible assets (all of which are being amortized except projects in process) are as follows (expressed in thousands): As of March 31, 2016 Accumulated Cost Amortization Net Patents $ 1,874 $ (456 ) $ 1,418 Trademarks and trade names 3,455 (819 ) 2,636 Developed technology 6,386 (2,838 ) 3,548 Customer relationships 747 (332 ) 415 Internally developed software 1,085 (181 ) 904 Other intangibles 214 (136 ) 78 $ 13,761 $ (4,762 ) $ 8,999 As of December 31, 2015 Accumulated Cost Amortization Net Patents $ 1,844 $ (439 ) $ 1,405 Trademarks and trade names 3,321 (751 ) 2,570 Developed technology 6,121 (2,551 ) 3,570 Customer relationships 716 (298 ) 418 Internally developed software 1,085 (154 ) 931 Other intangibles 214 (122 ) 92 $ 13,301 $ (4,315 ) $ 8,986 Total amortization expense for the three-months ended March 31, 2016 and March 31, 2015 was $299,000 and $289,000, respectively. 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 2016 and each of the four succeeding fiscal years and thereafter based on the intangible assets as of March 31, 2016 is as follows (expressed in thousands): 2016 $ 892 2017 1,161 2018 1,129 2019 1,125 2020 1,123 2021 & Thereafter 2,891 $ 8,321

Note 5 - Accumulated Other Comp

Note 5 - Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
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 March 31, 2016 2015 Beginning balance $ (5,220 ) $ (2,792 ) Foreign currency translation adjustments 897 (2,713 ) Accumulated other comprehensive (loss) $ (4,323 ) $ (5,505 )

Note 6 - Warranty

Note 6 - Warranty	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
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-months ended March 31, 2016 and March 31, 2015 were as follows (expressed in thousands): Three Months Ended March 31, 2016 2015 Beginning balance $ 223 $ 285 Warranty provisions 144 200 Warranty claims (125 ) (131 ) Ending Balance $ 242 $ 354

Note 7 - Debt

Note 7 - Debt	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Debt Disclosure [Text Block]	Note 7 – Debt Notes payable consists of the following (expressed in thousands): March 31, 2016 December 31, 2015 Capital Leases $ 142 $ 158 Less current portion of long-term notes payable 63 65 Total long-term notes payable $ 79 $ 93 In the U.S., we have a $10.0 million secured revolving line of credit with a maturity date of August 26, 2018. Interest is charged monthly at one-month LIBOR (0.44 percent) plus 1.50 basis points which totaled 1.94 percent at March 31, 2016 and 1.74 percent at December 31, 2015. The line of credit is secured by our assets with the exception of the number of shares of outstanding stock of Dansensor that exceeds 65 percent of the shares outstanding. We had $2.9 million and $2.8 million outstanding on the line of credit at March 31, 2016 and December 31, 2015. Additionally, Dansensor has a DKK 10 million (approximately $1.5 million) available line of credit of which no amounts were outstanding as of March 31, 2016 and December 31, 2015 . 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, acquisitions, making capital and lease expenditures and making share repurchases. We are in compliance with our debt covenants at March 31, 2016 and expect to remain in compliance through the next twelve months . As of March 31, 2016, the future minimum principal payments of the notes payable for the remainder of 2016 and each of the three succeeding fiscal years to the maturity of the note are as follows (expressed in thousands): 2016 $ 49 2017 56 2018 37 Total $ 142

Note 8 - Realignment Expenses

Note 8 - Realignment Expenses	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Restructuring and Related Activities Disclosure [Text Block]	Note 8 – Realignment Expenses During 2015, we implemented a Realignment Plan in order to simplify our business structure by reducing the number of legal entities and by combining the sales and marketing teams of our Package Testing and Permeation segments under common leadership. As of December 31, 2015 approximately $483,000 was included in Accrued Compensation and related expenses and approximately $137,000 was included in Accounts payable on the consolidated balance sheet. During the three-months ended March 31, 2016 no additional amounts were expensed and cash payments were approximately $508,000 related to the Realignment Plan. As of March 31, 2016 approximately $112,000 is included in Accrued compensation and related expenses on the consolidated balance sheet and is expected to be paid by December 31, 2016.

Note 9 - Income Taxes

Note 9 - Income Taxes	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 9 – Income Taxes Our provision for income tax expense was 33 percent and 35 percent of income before income taxes for the three-months ended March 31, 2016 and March 31, 2015, respectively. The rate in the three-months ended of March 31, 2016 and March 31, 2015 were lower than the statutory rate due primarily to the effect of foreign operations where tax rates tend to be lower, the domestic manufacturing deduction and the research credit. The decrease in the effective tax rate for 2016 as compared to 2015 is primarily due to permanent enactment of the research and development credit whereby previously the related tax credit was not in the effective tax rate until enacted later in the year. As of March 31, 2016 and December 31, 2015, the liability for gross unrecognized tax benefits was $187,000. With the exception of lapsing statutes of limitation 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 10 - Share-based Compensat

Note 10 - Share-based Compensation	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 10 – Share-Based Compensation Stock Option Plans As of March 31, 2016, we have reserved 374,957 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 782,160 shares for options that have been granted under either the 2006 or 2015 stock incentive plan. 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 March 31, 2016 2015 Total cost of share-based compensation $ 186 $ 161 Amount of income tax benefit recognized in earnings - (21 ) Amount charged against net income $ 186 $ 140 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 or ten year as applicable 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 three months of 2016 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, 2015 797,378 $ 14.91 4.7 $ 453 Granted - - - - Exercised (2,600 ) 11.09 - - Cancelled or expired (12,618 ) 15.58 - - Options outstanding, March 31, 2016 782,160 $ 14.92 4.5 $ 261 Options exercisable, March 31, 2016 497,485 $ 14.91 3.3 $ 252 The total intrinsic value of options exercised was $7,000 and $142,000 during the three-months ended March 31, 2016 and March 31, 2015, respectively. As of March 31, 2016, there was $769,000 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 0.9 years. The total fair value of option shares vested during the three-months ended March 31, 2016 and March 31, 2015 was zero and $88,000, 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 began on 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 11 - Business Segments

Note 11 - Business Segments	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note 11 – 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 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 Permeation segment includes instruments and services that measure the rate at which various gases and vapors permeate through a variety of materials. 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, 2015. Intersegment revenue for the three months ended March 31, 2016 and March 31, 2015 were insignificant. Financial information by reportable segment for the three-months ended March 31, 2016 and March 31, 2015 is as follows (expressed in thousands): Three Months Ended March 31, 2016 Revenue Operating Income (loss) Package Testing $ 7,002 $ 847 Permeation 5,283 306 Industrial Analyzers and Other 2,445 (390 ) Total $ 14,730 $ 763 Three Months Ended March 31, 2015 Revenue Operating Income (loss) Package Testing $ 6,756 $ 887 Permeation 6,102 678 Industrial Analyzers and Other 2,502 (426 ) Total $ 15,360 $ 1,139

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
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)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	March 31, December 31, 2016 2015 Finished products $ 1,555 $ 1,366 Work-in-process 2,280 2,375 Raw materials 3,891 4,049 Total Inventory $ 7,726 $ 7,790

Note 3 - Net Income Per Commo20

Note 3 - Net Income Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Weighted Average Number of Shares [Table Text Block]	Three Months Ended March 31, 2016 2015 Weighted shares of common stock outstanding - basic 5,797 5,742 Dilutive impact of share-based awards 19 95 Weighted shares of common stock outstanding - diluted 5,816 5,837

Note 4 - Goodwill and Other I21

Note 4 - Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Goodwill [Table Text Block]	Package Industrial Testing Permeation Analyzers & Other Total Balance as of December 31, 2015 $ 4,967 $ 1,860 $ 610 $ 7,437 Foreign currency translation 198 62 - 260 Balance as of March 31, 2016 $ 5,165 $ 1,922 $ 610 $ 7,697
Schedule of Finite-Lived Intangible Assets [Table Text Block]	As of March 31, 2016 Accumulated Cost Amortization Net Patents $ 1,874 $ (456 ) $ 1,418 Trademarks and trade names 3,455 (819 ) 2,636 Developed technology 6,386 (2,838 ) 3,548 Customer relationships 747 (332 ) 415 Internally developed software 1,085 (181 ) 904 Other intangibles 214 (136 ) 78 $ 13,761 $ (4,762 ) $ 8,999 As of December 31, 2015 Accumulated Cost Amortization Net Patents $ 1,844 $ (439 ) $ 1,405 Trademarks and trade names 3,321 (751 ) 2,570 Developed technology 6,121 (2,551 ) 3,570 Customer relationships 716 (298 ) 418 Internally developed software 1,085 (154 ) 931 Other intangibles 214 (122 ) 92 $ 13,301 $ (4,315 ) $ 8,986
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	2016 $ 892 2017 1,161 2018 1,129 2019 1,125 2020 1,123 2021 & Thereafter 2,891 $ 8,321

Note 5 - Accumulated Other Co22

Note 5 - Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Three Months Ended March 31, 2016 2015 Beginning balance $ (5,220 ) $ (2,792 ) Foreign currency translation adjustments 897 (2,713 ) Accumulated other comprehensive (loss) $ (4,323 ) $ (5,505 )

Note 6 - Warranty (Tables)

Note 6 - Warranty (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	Three Months Ended March 31, 2016 2015 Beginning balance $ 223 $ 285 Warranty provisions 144 200 Warranty claims (125 ) (131 ) Ending Balance $ 242 $ 354

Note 7 - Debt (Tables)

Note 7 - Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Long-term Debt Instruments [Table Text Block]	March 31, 2016 December 31, 2015 Capital Leases $ 142 $ 158 Less current portion of long-term notes payable 63 65 Total long-term notes payable $ 79 $ 93
Schedule of Maturities of Long-term Debt and Future Minimum Payments Under Capital Leases [Table Text Block]	2016 $ 49 2017 56 2018 37 Total $ 142

Note 10 - Share-based Compens25

Note 10 - Share-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]	Three Months Ended March 31, 2016 2015 Total cost of share-based compensation $ 186 $ 161 Amount of income tax benefit recognized in earnings - (21 ) Amount charged against net income $ 186 $ 140
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, 2015 797,378 $ 14.91 4.7 $ 453 Granted - - - - Exercised (2,600 ) 11.09 - - Cancelled or expired (12,618 ) 15.58 - - Options outstanding, March 31, 2016 782,160 $ 14.92 4.5 $ 261 Options exercisable, March 31, 2016 497,485 $ 14.91 3.3 $ 252

Note 11 - Business Segments (Ta

Note 11 - Business Segments (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended March 31, 2016 Revenue Operating Income (loss) Package Testing $ 7,002 $ 847 Permeation 5,283 306 Industrial Analyzers and Other 2,445 (390 ) Total $ 14,730 $ 763 Three Months Ended March 31, 2015 Revenue Operating Income (loss) Package Testing $ 6,756 $ 887 Permeation 6,102 678 Industrial Analyzers and Other 2,502 (426 ) Total $ 15,360 $ 1,139

Note 2 - Major Components of In

Note 2 - Major Components of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Finished products	$ 1,555	$ 1,366
Work-in-process	2,280	2,375
Raw materials	3,891	4,049
Total Inventory	$ 7,726	$ 7,790

Note 3 - Net Income Per Commo28

Note 3 - Net Income Per Common Share (Details Textual) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	666,235	145,200

Note 3 - Reconciliation of the

Note 3 - Reconciliation of the Denominators Used in the Computation of Net Income per Common Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Basic (in shares)	5,797	5,742
Dilutive impact of share-based awards (in shares)	19	95
Weighted shares of common stock outstanding - diluted (in shares)	5,816	5,837

Note 4 - Goodwill and Other I30

Note 4 - Goodwill and Other Intangible Assets (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Amortization of Intangible Assets	$ 299,000	$ 289,000

Note 4 - Changes in the Carryin

Note 4 - Changes in the Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Package Testing Segment [Member]
Balance	$ 4,967
Foreign currency translation	198
Balance	5,165
Permeation Segment [Member]
Balance	1,860
Foreign currency translation	62
Balance	1,922
Industrial Analyzers and Other Segment [Member]
Balance	$ 610
Foreign currency translation
Balance	$ 610
Balance	7,437
Foreign currency translation	260
Balance	$ 7,697

Note 4 - Other Intangible Asset

Note 4 - Other Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Patents [Member]
Cost	$ 1,874	$ 1,844
Accumulated amortization	(456)	(439)
Net	1,418	1,405
Trademarks and Trade Names [Member]
Cost	3,455	3,321
Accumulated amortization	(819)	(751)
Net	2,636	2,570
Developed Technology Rights [Member]
Cost	6,386	6,121
Accumulated amortization	(2,838)	(2,551)
Net	3,548	3,570
Customer Relationships [Member]
Cost	747	716
Accumulated amortization	(332)	(298)
Net	415	418
Internally Developed Software [Member]
Cost	1,085	1,085
Accumulated amortization	(181)	(154)
Net	904	931
Other Intangible Assets [Member]
Cost	214	214
Accumulated amortization	(136)	(122)
Net	78	92
Cost	13,761	13,301
Accumulated amortization	(4,762)	(4,315)
Net	$ 8,999	$ 8,986

Note 4 - Estimated Amortization

Note 4 - Estimated Amortization Expense (Details) $ in Thousands	Mar. 31, 2016USD ($)
2,016	$ 892
2,017	1,161
2,018	1,129
2,019	1,125
2,020	1,123
2021 & Thereafter	2,891
	$ 8,321

Note 5 - Adjustments to Accumul

Note 5 - Adjustments to Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Beginning balance	$ (5,220)	$ (2,792)
Foreign currency translation adjustments	897	(2,713)
Accumulated other comprehensive (loss)	$ (4,323)	$ (5,505)

Note 6 - Warranty (Details Text

Note 6 - Warranty (Details Textual)	3 Months Ended
	Mar. 31, 2016
Product Warranty Period Low End of Range	90 days
Product Warranty Period High End of Range	1 year

Note 6 - Warranty Provisions an

Note 6 - Warranty Provisions and Claims (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Beginning balance	$ 223	$ 285
Warranty provisions	144	200
Warranty claims	(125)	(131)
Ending Balance	$ 242	$ 354

Note 7 - Debt (Details Textual)

Note 7 - Debt (Details Textual) DKK in Millions	3 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2016DKK	Dec. 31, 2015USD ($)
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	0.015%
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 10,000,000
London Interbank Offered Rate LIBOR	0.44%
Line of Credit Facility, Interest Rate at Period End	1.94%	1.94%	1.74%
Debt Instrument Percentage of Common Stock Secured	65.00%
Long-term Line of Credit	$ 2,900,000		$ 2,800,000
Dansensor [Member]
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 - Long-term Notes Payabl

Note 7 - Long-term Notes Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Capital Leases	$ 142	$ 158
Less current portion of long-term notes payable	63	65
Total long-term notes payable	$ 79	$ 93

Note 7 - Future Minimum Princip

Note 7 - Future Minimum Principal Payments of the Long-term Notes Payable (Details) - Notes Payable [Member] $ in Thousands	Mar. 31, 2016USD ($)
2,016	$ 49
2,017	56
2,018	37
Total	$ 142

Note 8 - Realignment Expenses (

Note 8 - Realignment Expenses (Details Textual) - Realignment Plan [Member] - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Accrued Compensation [Member]
Restructuring Charges		$ 483,000
Accounts Payable and Related Expenses [Member]
Restructuring Charges		$ 137,000
Accrued Compensation and Related Expenses [Member]
Restructuring Reserve, Current	$ 112,000
Restructuring Charges	0
Payments for Restructuring	$ 508,000

Note 9 - Income Taxes (Details

Note 9 - Income Taxes (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Effective Income Tax Rate Reconciliation, Percent	33.00%	35.00%
Unrecognized Tax Benefits	$ 187,000		$ 187,000

Note 10 - Share-based Compens42

Note 10 - Share-based Compensation (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock Incentive Plan 2006 and 2015 [Member]
Common Stock, Capital Shares Reserved for Future Issuance	374,957
Stock Incentive Plan 2006 or Stock Incentive Plan 2015 [Member]
Common Stock, Capital Shares Reserved for Future Issuance	782,160
Two Thousand Fifteen Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	50,000
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	85.00%
Employee Stock Option [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award Fair Value Assumptions Contractual Term	7 years
Employee Stock Option [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award Fair Value Assumptions Contractual Term	10 years
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 7,000	$ 142,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 769,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	328 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value	$ 0	$ 88,000

Note 10 - Stock-based Compensat

Note 10 - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Total cost of share-based compensation	$ 186	$ 161
Amount of income tax benefit recognized in earnings		(21)
Amount charged against net income	$ 186	$ 140

Note 10 - Information Regarding

Note 10 - Information Regarding Company's Stock Option Plans (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Options outstanding (in shares)	797,378
Options outstanding, Weighted Average Exercise Price (in dollars per share)	$ 14.91
Options outstanding, Weighted Average Remaining Contractual Term	4 years 182 days	4 years 255 days
Options outstanding, Aggregate Intrinsic Value	$ 261	$ 453
Granted, Weighted Average Exercise Price (in dollars per share)
Options exercised (in shares)	(2,600)
Exercised, Weighted Average Exercise Price (in dollars per share)	$ 11.09
Options cancelled or expired (in shares)	(12,618)
Cancelled or expired, Weighted Average Exercise Price (in dollars per share)	$ 15.58
Options outstanding (in shares)	782,160	797,378
Options outstanding, Weighted Average Exercise Price (in dollars per share)	$ 14.92	$ 14.91
Options exercisable (in shares)	497,485
Options exercisable, Weighted Average Exercise Price (in dollars per share)	$ 14.91
Options exercisable, Weighted Average Remaining Contractual Term	3 years 109 days
Options exercisable, Aggregate Intrinsic Value	$ 252

Note 11 - Business Segments (De

Note 11 - Business Segments (Details Textual)	3 Months Ended
	Mar. 31, 2016
Number of Operating Segments	4
Number of Reportable Segments	3

Note 11 - Segment Information (

Note 11 - Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Package Testing Segment [Member]
Revenue	$ 7,002	$ 6,756
Operating income (loss)	847	887
Permeation Segment [Member]
Revenue	5,283	6,102
Operating income (loss)	306	678
Industrial Analyzers and Other Segment [Member]
Revenue	2,445	2,502
Operating income (loss)	(390)	(426)
Revenue	14,730	15,360
Operating income (loss)	$ 763	$ 1,139