Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | May. 09, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | NAPCO SECURITY TECHNOLOGIES, INC | |
Entity Central Index Key | 69,633 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | NSSC | |
Entity Common Stock, Shares Outstanding | 18,786,893 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 3,294 | $ 2,346 |
Accounts receivable, net of reserves and allowances | 16,137 | 17,994 |
Inventories | 20,631 | 22,757 |
Prepaid expenses and other current assets | 1,170 | 1,046 |
Deferred income taxes | 857 | 880 |
Total Current Assets | 42,089 | 45,023 |
Inventories - non-current | 4,811 | 4,113 |
Deferred income taxes | 818 | 634 |
Property, plant and equipment, net | 6,033 | 6,234 |
Intangible assets, net | 8,488 | 8,886 |
Other assets | 160 | 147 |
TOTAL ASSETS | 62,399 | 65,037 |
CURRENT LIABILITIES | ||
Current maturities of long term debt | 925 | 1,600 |
Accounts payable | 3,203 | 3,954 |
Accrued expenses | 1,523 | 1,624 |
Accrued salaries and wages | 2,097 | 2,250 |
Accrued income taxes | 253 | 5 |
Total Current Liabilities | 8,001 | 9,433 |
Long-term debt, net of current maturities | 6,575 | 9,100 |
Total Liabilities | $ 14,576 | $ 18,533 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common Stock, par value $0.01 per share; 40,000,000 shares authorized; 21,116,743 and 21,049,243 shares issued; and 18,786,893 and 18,966,028 shares outstanding, respectively | $ 211 | $ 210 |
Additional paid-in capital | 16,611 | 16,133 |
Retained earnings | 42,734 | 40,399 |
Stockholders' Equity before Treasury Stock, Total | 59,556 | 56,742 |
Less: Treasury Stock, at cost (2,329,850 and 2,083,215 shares, respectively) | (11,733) | (10,238) |
TOTAL STOCKHOLDERS' EQUITY | 47,823 | 46,504 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 62,399 | $ 65,037 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2016 | Jun. 30, 2015 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 40,000,000 | 40,000,000 |
Common Stock, shares issued | 21,116,743 | 21,049,243 |
Common Stock, shares outstanding | 18,786,893 | 18,966,028 |
Treasury Stock, shares | 2,329,850 | 2,083,215 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Net sales | [1] | $ 19,808 | $ 17,894 | $ 58,454 | $ 54,801 |
Cost of sales | 13,700 | 12,548 | 40,508 | 38,097 | |
Gross Profit | 6,108 | 5,346 | 17,946 | 16,704 | |
Selling, general, and administrative expenses | 4,891 | 4,869 | 15,379 | 14,885 | |
Operating Income | 1,217 | 477 | 2,567 | 1,819 | |
Other expense: | |||||
Interest expense, net | 45 | 52 | 139 | 161 | |
Other, net | 3 | 4 | 10 | 2 | |
Income before Income Taxes | 1,169 | 421 | 2,418 | 1,656 | |
Income tax expense | 125 | 26 | 83 | 151 | |
Net Income | $ 1,044 | $ 395 | $ 2,335 | $ 1,505 | |
Net Income per share: | |||||
Basic (in dollars per share) | $ 0.06 | $ 0.02 | $ 0.12 | $ 0.08 | |
Diluted (in dollars per share) | $ 0.06 | $ 0.02 | $ 0.12 | $ 0.08 | |
Weighted average number of shares outstanding: | |||||
Basic (in shares) | 18,811,000 | 19,066,000 | 18,903,000 | 19,225,000 | |
Diluted (in shares) | 18,828,000 | 19,073,000 | 18,923,000 | 19,229,000 | |
[1] | All of the Company's sales originate in the United States and are shipped primarily from the Company's facilities in the United States. There were no sales into any one foreign country in excess of 10% of total Net Sales. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income | $ 2,335 | $ 1,505 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,038 | 1,143 |
Provision for doubtful accounts | (40) | (5) |
Deferred income taxes | (161) | 91 |
Stock based compensation expense | 92 | 101 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,897 | 2,287 |
Inventories | 1,428 | (1,881) |
Prepaid expenses and other current assets | (124) | (295) |
Income tax receivable | 0 | 7 |
Other assets | (22) | (2) |
Accounts payable, accrued expenses and accrued income taxes | (757) | (168) |
Net Cash Provided by Operating Activities | 5,686 | 2,783 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant, and equipment | (430) | (501) |
Net Cash Used in Investing Activities | (430) | (501) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal payments on long-term debt | (3,200) | (1,200) |
Cash paid for purchase of treasury stock | (1,108) | (1,890) |
Net Cash Used in Financing Activities | (4,308) | (3,090) |
Net Increase (Decrease) in Cash and Cash Equivalents | 948 | (808) |
CASH AND CASH EQUIVALENTS - Beginning | 2,346 | 2,483 |
CASH AND CASH EQUIVALENTS - Ending | 3,294 | 1,675 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Interest paid, net | 142 | 162 |
Income taxes paid | 0 | 32 |
NON-CASH FINANCING ACTIVITIES: | ||
Shares surrendered and held in treasury for common stock options exercised | $ 54 | $ 0 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | Napco Security Technologies, Inc. and Subsidiaries (the "Company") is a diversified manufacturer of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products for commercial and residential use. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. The Company's fiscal year begins on July 1 and ends on June 30. Historically, the end users of the Company's products want to install its products prior to the summer; therefore sales of its products historically peak in the period April 1 through June 30, the Company's fiscal fourth quarter, and are reduced in the period July 1 through September 30, the Company's fiscal first quarter. In addition, demand is affected by the housing and construction markets. Significant Accounting Policies The unaudited condensed consolidated financial statements of the Company, including these notes, have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the rules and regulations promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been omitted or condensed. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended June 30, 2015 and the notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on September 10, 2015. Results of consolidated operations for the interim periods are not necessarily indicative of a full year’s operating results. The unaudited condensed consolidated financial statements herein include the accounts of the Company and its wholly owned subsidiaries. All material inter-company accounts and transactions have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical estimates include management's judgments associated with reserves for sales returns and allowances, concentration of credit risk, inventory reserves, intangible assets and income taxes. Actual results could differ from those estimates. The methods and assumptions used to estimate the fair value of the following classes of financial instruments were: Current Assets and Current Liabilities - The carrying amount of cash, certificates of deposits, current receivables and payables and certain other short-term financial instruments approximate their fair value as of March 31, 2016 due to their short-term maturities; Long-Term Debt - The carrying amount of the Company’s long-term debt, including the current portion, at March 31, 2016 in the amount of $ 7,500,000 Cash and cash equivalents include approximately $ 460,000 Accounts receivable is stated net of the reserves for doubtful accounts of $ 135,000 175,000 975,000 1,260,000 Inventories are valued at the lower of cost or fair market value, with cost being determined on the first-in, first-out (FIFO) method. The reported net value of inventory includes finished saleable products, work-in-process and raw materials that will be sold or used in future periods. Inventory costs include raw materials, direct labor and overhead. The Company’s overhead expenses are applied based, in part, upon estimates of the proportion of those expenses that are related to procuring and storing raw materials as compared to the manufacture and assembly of finished products. These proportions, the method of their application, and the resulting overhead included in ending inventory, are based in part on subjective estimates and actual results could differ from those estimates. In addition, the Company records an inventory obsolescence reserve, which represents any excess of the cost of the inventory over its estimated market value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, requirements to support forecasted sales, and the ability to find alternate applications of its raw materials and to convert finished product into alternate versions of the same product to better match customer demand. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. There is inherent professional judgment and subjectivity made by both production and engineering members of management in determining the estimated obsolescence percentage. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current. Property, plant, and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred; costs of major renewals and improvements are capitalized. At the time property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and accumulated depreciation accounts and the profit or loss on such disposition is reflected in income. Depreciation is recorded over the estimated service lives of the related assets using primarily the straight-line method. Amortization of leasehold improvements is calculated by using the straight-line method over the estimated useful life of the asset or lease term, whichever is shorter. Intangible assets determined to have indefinite lives are not amortized but are tested for impairment at least annually. Intangible assets with definite lives are amortized over their useful lives. Intangible assets are reviewed for impairment at least annually at the Company’s fiscal year end of June 30 or more often whenever there is an indication that the carrying amount may not be recovered. The Company’s acquisition of substantially all of the assets and certain liabilities of G. Marks Hardware, Inc. (“Marks”) in August 2008 included intangible assets recorded at fair value on the date of acquisition. The intangible assets are amortized over their estimated useful lives of twenty years (customer relationships) and seven years (non-compete agreement). The Marks trade name was deemed to have an indefinite life. March 31, 2016 June 30, 2015 Cost Accumulated Net book Cost Accumulated Net book Customer relationships $ 9,800 $ (7,212) $ 2,588 $ 9,800 $ (6,820) $ 2,980 Non-compete agreement 340 (340) 340 (334) 6 Trade name 5,900 5,900 5,900 5,900 $ 16,040 $ (7,552) $ 8,488 $ 16,040 $ (7,154) $ 8,886 Amortization expense for intangible assets subject to amortization was approximately $ 131,000 167,000 398,000 500,000 529,000 441,000 371,000 313,000 264,000 12.3 13.3 Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets in question may not be recoverable. Impairment would be recorded in circumstances where undiscounted cash flows expected to be generated by an asset are less than the carrying value of that asset. The Company recognizes revenue when the following criteria are met: (i) persuasive evidence of an agreement exists, (ii) there is a fixed and determinable price for the Company's product or service, (iii) shipment and passage of title occurs or service has been provided, and (iv) collectability is reasonably assured. Revenues from product sales are recorded at the time the product is shipped or delivered to the customer pursuant to the terms of the sale. Revenues for services are recorded at the time the service is provided to the customer pursuant to the terms of sale. The Company reports its sales on a net sales basis, with net sales being computed by deducting from gross sales the amount of reserves established for sales returns and other allowances. The Company analyzes sales returns and is able to make reasonable and reliable estimates of product returns based on the Company’s past history. Estimates for sales returns are based on several factors including actual returns and based on expected return data communicated to it by its customers. Accordingly, the Company believes that its historical returns analysis is an accurate basis for its allowance for sales returns. Actual results could differ from those estimates. As a percentage of gross sales, sales returns, rebates and allowances were 6 8 7 8 Advertising and promotional costs are included in "Selling, General and Administrative" expenses in the consolidated statements of operations and are expensed as incurred. Advertising expense for the three months ended March 31, 2016 and 2015 was $ 259,000 172,000 1,328,000 1,028,000 Research and development costs incurred by the Company are charged to expense as incurred and are included in "Cost of Sales" in the consolidated statements of operations. Company-sponsored research and development expense for the three months ended March 31, 2016 and 2015 was $ 1,513,000 1,350,000 4,521,000 3,995,000 Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company measures and recognizes the tax implications of positions taken or expected to be taken in its tax returns on an ongoing basis. Basic net income per common share (Basic EPS) is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per common share (Diluted EPS) is computed by dividing net income by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. Net Income Weighted Average Shares Net Income per Share 2016 2015 2016 2015 2016 2015 Basic EPS $ 1,044 $ 395 18,811 19,066 $ 0.06 $ 0.02 Effect of Dilutive Securities: Stock Options 17 7 Diluted EPS $ 1,044 $ 395 18,828 19,073 $ 0.06 $ 0.02 Options to purchase 165,615 262,000 Net Income Weighted Average Shares Net Income per Share 2016 2015 2016 2015 2016 2015 Basic EPS $ 2,335 $ 1,505 18,903 19,225 $ 0.12 $ 0.08 Effect of Dilutive Securities: Stock Options 20 4 Diluted EPS $ 2,335 $ 1,505 18,923 19,229 $ 0.12 $ 0.08 Options to purchase 147,038 258,583 The Company has established two share incentive programs as discussed in Note 7. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the vesting period. Determining the fair value of share-based awards at the grant date requires assumptions and judgments about expected volatility and forfeiture rates, among other factors. No stock-based compensation costs were recognized for three months ended March 31, 2016 or 2015. Stock-based compensation costs of $ 92,000 101,000 0.00 All assets and liabilities of foreign subsidiaries are translated into U.S. Dollars at fiscal period-end exchange rates. Income and expense items are translated at average exchange rates prevailing during the fiscal year. The realized and unrealized gains and losses associated with foreign currency translation, as well as related other comprehensive income, were not material for the three and nine months ended March 31, 2016 and 2015. For the three and nine months ended March 31, 2016 and 2015, the Company's operations did not give rise to material items includable in comprehensive income, which were not already included in net income. Accordingly, the Company's comprehensive income approximates its net income for all periods presented. The Company’s reportable operating segments are determined based on the Company's management approach. The management approach is based on the way that the chief operating decision maker organizes the segments within an enterprise for making operating decisions and assessing performance. The Company's results of operations are reviewed by the chief operating decision maker on a consolidated basis and the Company operates in only one segment. The Company has presented required geographical data in Note 11, and no additional segment data has been presented. The Company records the amount billed to customers for shipping and handling in net sales ($ 109,000 117,000 365,000 374,000 232,000 211,000 673,000 692,000 In March 2016, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance that changes the way companies account for certain aspects of share-based payments to employees. The most significant impact relates to the accounting for income tax effects of share-based compensation awards. This new guidance is part of the FASB’s simplification initiative and requires that all excess tax benefits and tax deficiencies be recorded as income tax expense or benefit in the income statement. In addition, companies are required to treat the tax effects of exercised or vested awards as discrete items in the period that they occur. Other updates include changing the threshold on tax withholding requirements. Under this guidance, an employer can withhold up to the maximum statutory withholding rates in a jurisdiction without tainting the award classification. Additionally, this guidance allows companies to elect a forfeiture recognition method whereby they account for forfeitures as they occur (actual) or they estimate the number of awards expected to be forfeited (current GAAP). Lastly, as it relates to public entities, this guidance also provides requirements for the cash flow classification of cash paid by an employer when directly withholding shares for tax-withholding purposes and excess tax benefits. This guidance becomes effective for the Company’s fiscal 2018 first quarter, with early adoption permitted, and the guidance prescribes different transition methods for the various provisions (i.e., retrospective, modified retrospective, or prospective). The Company is currently evaluating the impact of applying this guidance on its consolidated financial statements. In February 2016, the FASB issued authoritative guidance that requires lessees to account for most leases on their balance sheets with the liability being equal to the present value of the lease payments. The right-of-use asset will be based on the lease liability adjusted for certain costs such as direct costs. Lease expense will be recognized similar to current accounting guidance with operating leases resulting in a straight-line expense and financing leases resulting in a front-loaded expense similar to the current accounting for capital leases. This guidance becomes effective for the Company’s fiscal 2020 first quarter, with early adoption permitted. This guidance must be adopted using a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and provides for certain practical expedients. The Company is currently evaluating the timing, impact and method of applying this guidance on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17 “Balance Sheet Classification of Deferred Taxes”. The amendments require deferred tax assets and liabilities, along with related valuation allowances, to be classified as noncurrent on the balance sheet. As a result, each tax jurisdiction will now only have one net noncurrent deferred tax asset or liability. The new guidance does not change the existing requirement that prohibits offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. ASU 2015-17 is effective for the Company’s In July 2015, the FASB issued ASU 2015-11 “Inventory (Topic 330): Simplifying the Measurement of Inventory” (ASU 2015-11). The amendments in ASU 2015-11 simplify the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. ASU 2015-11 is effective for the Company’s quarter ended September 30, 2017. Early application is permitted. We have not early adopted ASU 2015-11. The new guidance must be applied prospectively after the date of adoption. We are in the process of evaluating the adoption of this ASU, and do not expect this to have a material effect on our consolidated results of operations and financial condition. In May 2014, the FASB issued authoritative guidance that defines how companies should report revenues from contracts with customers. The standard requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It provides companies with a single comprehensive five-step principles-based model to use in accounting for revenue and supersedes current revenue recognition requirements, including most industry-specific and transaction-specific revenue guidance. In August 2015, the FASB deferred the effective date of the new revenue standard by one year. As a result, the new standard would not be effective for the Company until fiscal 2019. In addition, the FASB is allowing companies to early adopt this guidance for the Company’s fiscal 2018. The guidance permits an entity to apply the standard retrospectively to all prior periods presented, with certain practical expedients, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company will apply this new guidance when it becomes effective and has not yet selected a transition method. The Company is currently evaluating the impact of adoption on its consolidated financial statements. |
Business and Credit Concentrati
Business and Credit Concentrations | 9 Months Ended |
Mar. 31, 2016 | |
Risks And Uncertainties [Abstract] | |
Business and Credit Concentrations | NOTE 2 - Business and Credit Concentrations An entity is more vulnerable to concentrations of credit risk if it is exposed to risk of loss greater than it would have had if it mitigated its risk through diversification of customers. Such risks of loss manifest themselves differently, depending on the nature of the concentration, and vary in significance. The Company had one customer with an accounts receivable balance that comprised 25 22 13 11 12 |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 3 - Inventories Inventories, net of reserves are valued at lower of cost (first-in, first-out method) or market. The Company regularly reviews parts and finished goods inventories on hand and, when necessary, records a provision for excess or obsolete inventories. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current. March 31, June 30, Component parts $ 14,238 $ 15,037 Work-in-process 3,915 4,136 Finished product 7,289 7,697 $ 25,442 $ 26,870 Classification of inventories, net of reserves: Current $ 20,631 $ 22,757 Non-current 4,811 4,113 $ 25,442 $ 26,870 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Mar. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property, Plant, and Equipment | NOTE 4 Property, Plant and Equipment March 31, June 30, Useful Life in Years Land $ 904 $ 904 Buildings 8,911 8,911 30 to 40 Molds and dies 7,031 7,002 3 to 5 Furniture and fixtures 2,531 2,478 5 to 10 Machinery and equipment 20,777 20,429 7 to 10 Leasehold improvements 294 294 Shorter of the lease term or life of asset 40,448 40,018 Less: accumulated depreciation and amortization 34,415 33,784 $ 6,033 $ 6,234 Depreciation and amortization expense on property, plant, and equipment was $ 217,000 222,000 631,000 634,000 |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 5 - Income Taxes The provision for income taxes represents Federal, foreign, and state and local income taxes. The effective rate differs from statutory rates due to the effect of state and local income taxes, tax rates in foreign jurisdictions, tax benefit of R&D credits and certain nondeductible expenses. Our effective tax rate will change from quarter to quarter based on recurring and non-recurring factors including, but not limited to, the geographical mix of earnings, enacted tax legislation, and state and local income taxes. In addition, changes in judgment from the evaluation of new information resulting in the recognition de-recognition or re-measurement of a tax position taken in a prior annual period is recognized separately in the quarter of the change. The Company does not expect that our unrecognized tax benefits will significantly change within the next twelve months. We file a consolidated U.S. income tax return and tax returns in certain state and local and foreign jurisdictions. As of March 31, 2016 we remain subject to examination in all tax jurisdictions for all relevant jurisdictional statutes for fiscal years 2012 and thereafter. The Company has identified its U.S. Federal income tax return and its State return in New York as its major tax jurisdictions. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long Term Debt | NOTE 6 - Long-Term Debt As of March 31, 2016, long-term debt consisted of a revolving credit facility of $ 11,000,000 6,000,000 28 75,000 3,900,000 6,500,000 20 325,000 March 31, 2016 June 30, 2015 Outstanding Interest Rate Outstanding Interest Rate Revolving line of credit $ 2,000 1.9 % $ 3,000 1.7 % Term loans 5,500 1.9 % 7,700 1.7 % Total debt $ 7,500 1.9 % $ 10,700 1.7 % The Revolving Credit Facility and Term Loans (collectively the “Agreement”) also provides for a LIBOR-based interest rate option of LIBOR plus 1.5 2.75 0.25 65 The Agreement contains various restrictions and covenants including, among others, restrictions on payment of dividends, restrictions on borrowings and compliance with certain financial ratios, as defined in the Agreement. |
Stock Options
Stock Options | 9 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options | NOTE 7 - Stock Options The Company follows ASC 718 (“Share-Based Payment”), which requires that all share based payments to employees, including stock options, be recognized as compensation expense in the consolidated financial statements based on their fair values and over the requisite service period. For the three months ended March 31, 2016 and 2015, the Company recorded no non-cash compensation expense relating to stock-based compensation. For the nine months ended March 31, 2016 and 2015, the Company recorded non-cash compensation expense of $ 92,000 00 101,000 00 2012 Employee Stock Option Plan In December 2012, the stockholders approved the 2012 Employee Stock Option Plan (the 2012 Employee Plan). The 2012 Employee Plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 950,000 110 Under the 2012 Employee Plan, stock options may be granted to valued employees with a term of up to 10 20 97,500 52,700 852,500 2016 2015 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 112,500 $ 5.30 78,500 $ 5.73 Granted 44,000 4.43 Terminated/Lapsed (15,000) 4.29 (10,000) 4.88 Exercised Outstanding, end of period 97,500 $ 5.46 112,500 $ 5.30 Exercisable, end of period 52,700 $ 5.56 27,500 $ 5.26 Weighted average fair value at grant date of options granted n/a $ 2.82 Total intrinsic value of options exercised n/a n/a Total intrinsic value of options outstanding $ 80,000 $ 78,000 Total intrinsic value of options exercisable $ 38,000 $ 19,000 Options outstanding Options exercisable Weighted average Range of Number remaining Weighted average Number Weighted average exercise prices outstanding contractual life exercise price exercisable exercise price $4.29-$6.31 97,500 7.9 $ 5.46 52,700 $ 5.56 97,500 7.9 $ 5.46 52,700 $ 5.56 As of March 31, 2016, there was $ 157,000 109,600 41,000 2012 Non-Employee Stock Option Plan In December 2012, the stockholders approved the 2012 Non-Employee Stock Option Plan (the 2012 Non-Employee Plan). This plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 50,000 Under the 2012 Non-Employee Plan, stock options may be granted with a term of up to 10 20 35,000 19,000 15,000 2016 2015 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 35,000 $ 4.73 25,000 $ 4.88 Granted 10,000 4.37 Terminated/Lapsed Exercised Outstanding, end of period 35,000 $ 4.73 35,000 $ 4.73 Exercisable, end of period 19,000 $ 4.77 12,000 $ 4.80 Weighted average fair value at grant date of options granted n/a $ 2.86 Total intrinsic value of options exercised n/a n/a Total intrinsic value of options outstanding $ 53,000 $ 37,000 Total intrinsic value of options exercisable $ 28,000 $ 12,000 Options outstanding Options exercisable Weighted average Weighted Weighted Range of Number remaining average exercise Number average exercise exercise prices outstanding contractual life price exercisable price $4.37 - $4.88 35,000 7.8 $ 4.73 19,000 $ 4.77 35,000 7.8 $ 4.73 19,000 $ 4.77 As of March 31, 2016, there was $ 50,000 22,000 2002 Employee Stock Option Plan In December 2002, the stockholders approved the 2002 Employee Stock Option Plan (the 2002 Employee Plan). This plan expired in October 2012. This plan authorized the granting of awards, the exercise of which would allow up to an aggregate of 1,836,000 110 Under the 2002 Employee Plan, stock options have been granted to key employees with a term of 10 20 1,471,480 140,000 2016 2015 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 208,500 $ 6.86 265,750 $ 6.51 Granted Terminated/Lapsed (38,500) 11.03 (57,250) 5.24 Exercised (67,500) 5.73 Outstanding, end of period 102,500 $ 6.04 208,500 $ 6.86 Exercisable, end of period 102,500 $ 6.04 208,500 $ 6.86 Weighted average fair value at grant date of options granted n/a n/a Total intrinsic value of options exercised $ 98,000 n/a Total intrinsic value of options outstanding $ 31,000 $ 10,000 Total intrinsic value of options exercisable $ 31,000 $ 10,000 No stock options were exercised during either of the three months ended March 31, 2016 and 2015. 67,500 0 67,500 53,868 0 Options outstanding and exercisable Range of Number Weighted average Weighted average exercise prices outstanding remaining contractual life exercise price $5.35 - $6.62 102,500 0.9 6.04 102,500 0.9 $ 6.04 |
Stockholders' Equity Transactio
Stockholders' Equity Transactions | 9 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders' Equity Transactions | NOTE 8 Stockholders’ Equity Transactions On September 16, 2014 the Company’s board of directors authorized the repurchase of up to 1 19.4 192,767 5.73 |
401(k) Plan
401(k) Plan | 9 Months Ended |
Mar. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
401(k) Plan | NOTE 9 - 401(k) Plan The Company maintains a 401(k) plan (“the Plan”) that covers all U.S. non-union employees with one or more years of service and is qualified under Sections 401(a) and 401(k) of the Internal Revenue Code. Company contributions to this plan are discretionary and totaled $ 26,000 27,000 81,000 93,000 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10 - Commitments and Contingencies Leases The Company is committed under various operating leases, not including the land lease discussed below, which do not extend beyond fiscal 2020 . Rent expense, with the exception of the land lease referred to below, totaled approximately $ 6,000 7,000 20,000 23,000 Land Lease On April 26, 1993, one of the Company's foreign subsidiaries entered into a 99 year lease, expiring in 2092 288,000 Litigation In the normal course of business, the Company is a party to claims and/or litigation. Management believes that the settlement of such claims and/or litigation, considered in the aggregate, will not have a material adverse effect on the Company's financial position and results of operations. Employment Agreements As of March 31, 2016, the Company was obligated under three employment agreements and one severance agreement. The employment agreements are with the Company’s CEO, Senior Vice President of Sales and Marketing (“the SVP of Sales”) and the Senior Vice President of Engineering (“the SVP of Engineering”). The employment agreement with the CEO provides for an annual salary of $ 670,000 299 2018 315,000 2018 285,000 |
Geographical Data
Geographical Data | 9 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Geographical Data | NOTE 11 - Geographical Data The Company is engaged in one major line of business: the development, manufacture, and distribution of access control systems, door security products, intrusion and fire alarm systems and video surveillance products for commercial and residential use. Sales to unaffiliated customers are primarily shipped from the United States. The Company has customers worldwide with major concentrations in North America. Three months ended March 31, Nine months ended March 31, 2016 2015 2016 2015 (in thousands) (in thousands) Sales to external customers(1): Domestic $ 19,229 $ 17,076 $ 56,515 $ 52,523 Foreign 579 818 1,939 2,278 Total Net Sales $ 19,808 $ 17,894 $ 58,454 $ 54,801 March 31, June 30, Identifiable assets: 2016 2015 United States $ 49,249 $ 50,998 Dominican Republic (2) 13,150 14,039 Total Identifiable Assets $ 62,399 $ 65,037 (1) All of the Company's sales originate in the United States and are shipped primarily from the Company's facilities in the United States. There were no sales into any one foreign country in excess of 10% of total Net Sales. (2) Consists primarily of inventories (March 31, 2016 = $ 9,666 10,546 3,244 3,347 |
Nature of Business and Summar17
Nature of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business Napco Security Technologies, Inc. and Subsidiaries (the "Company") is a diversified manufacturer of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products for commercial and residential use. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. The Company's fiscal year begins on July 1 and ends on June 30. Historically, the end users of the Company's products want to install its products prior to the summer; therefore sales of its products historically peak in the period April 1 through June 30, the Company's fiscal fourth quarter, and are reduced in the period July 1 through September 30, the Company's fiscal first quarter. In addition, demand is affected by the housing and construction markets. |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements of the Company, including these notes, have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the rules and regulations promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been omitted or condensed. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended June 30, 2015 and the notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on September 10, 2015. Results of consolidated operations for the interim periods are not necessarily indicative of a full year’s operating results. The unaudited condensed consolidated financial statements herein include the accounts of the Company and its wholly owned subsidiaries. All material inter-company accounts and transactions have been eliminated. |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical estimates include management's judgments associated with reserves for sales returns and allowances, concentration of credit risk, inventory reserves, intangible assets and income taxes. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The methods and assumptions used to estimate the fair value of the following classes of financial instruments were: Current Assets and Current Liabilities - The carrying amount of cash, certificates of deposits, current receivables and payables and certain other short-term financial instruments approximate their fair value as of March 31, 2016 due to their short-term maturities; Long-Term Debt - The carrying amount of the Company’s long-term debt, including the current portion, at March 31, 2016 in the amount of $ 7,500,000 |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include approximately $ 460,000 |
Accounts Receivable | Accounts Receivable Accounts receivable is stated net of the reserves for doubtful accounts of $ 135,000 175,000 975,000 1,260,000 |
Inventories | Inventories Inventories are valued at the lower of cost or fair market value, with cost being determined on the first-in, first-out (FIFO) method. The reported net value of inventory includes finished saleable products, work-in-process and raw materials that will be sold or used in future periods. Inventory costs include raw materials, direct labor and overhead. The Company’s overhead expenses are applied based, in part, upon estimates of the proportion of those expenses that are related to procuring and storing raw materials as compared to the manufacture and assembly of finished products. These proportions, the method of their application, and the resulting overhead included in ending inventory, are based in part on subjective estimates and actual results could differ from those estimates. In addition, the Company records an inventory obsolescence reserve, which represents any excess of the cost of the inventory over its estimated market value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, requirements to support forecasted sales, and the ability to find alternate applications of its raw materials and to convert finished product into alternate versions of the same product to better match customer demand. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. There is inherent professional judgment and subjectivity made by both production and engineering members of management in determining the estimated obsolescence percentage. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred; costs of major renewals and improvements are capitalized. At the time property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and accumulated depreciation accounts and the profit or loss on such disposition is reflected in income. Depreciation is recorded over the estimated service lives of the related assets using primarily the straight-line method. Amortization of leasehold improvements is calculated by using the straight-line method over the estimated useful life of the asset or lease term, whichever is shorter. |
Intangible Assets | Intangible Assets Intangible assets determined to have indefinite lives are not amortized but are tested for impairment at least annually. Intangible assets with definite lives are amortized over their useful lives. Intangible assets are reviewed for impairment at least annually at the Company’s fiscal year end of June 30 or more often whenever there is an indication that the carrying amount may not be recovered. The Company’s acquisition of substantially all of the assets and certain liabilities of G. Marks Hardware, Inc. (“Marks”) in August 2008 included intangible assets recorded at fair value on the date of acquisition. The intangible assets are amortized over their estimated useful lives of twenty years (customer relationships) and seven years (non-compete agreement). The Marks trade name was deemed to have an indefinite life. March 31, 2016 June 30, 2015 Cost Accumulated Net book Cost Accumulated Net book Customer relationships $ 9,800 $ (7,212) $ 2,588 $ 9,800 $ (6,820) $ 2,980 Non-compete agreement 340 (340) 340 (334) 6 Trade name 5,900 5,900 5,900 5,900 $ 16,040 $ (7,552) $ 8,488 $ 16,040 $ (7,154) $ 8,886 Amortization expense for intangible assets subject to amortization was approximately $ 131,000 167,000 398,000 500,000 529,000 441,000 371,000 313,000 264,000 12.3 13.3 |
Long-Lived Assets | Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets in question may not be recoverable. Impairment would be recorded in circumstances where undiscounted cash flows expected to be generated by an asset are less than the carrying value of that asset. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when the following criteria are met: (i) persuasive evidence of an agreement exists, (ii) there is a fixed and determinable price for the Company's product or service, (iii) shipment and passage of title occurs or service has been provided, and (iv) collectability is reasonably assured. Revenues from product sales are recorded at the time the product is shipped or delivered to the customer pursuant to the terms of the sale. Revenues for services are recorded at the time the service is provided to the customer pursuant to the terms of sale. The Company reports its sales on a net sales basis, with net sales being computed by deducting from gross sales the amount of reserves established for sales returns and other allowances. |
Sales Returns and Other Allowances | Sales Returns and Other Allowances The Company analyzes sales returns and is able to make reasonable and reliable estimates of product returns based on the Company’s past history. Estimates for sales returns are based on several factors including actual returns and based on expected return data communicated to it by its customers. Accordingly, the Company believes that its historical returns analysis is an accurate basis for its allowance for sales returns. Actual results could differ from those estimates. As a percentage of gross sales, sales returns, rebates and allowances were 6 8 7 8 |
Advertising and Promotional Costs | Advertising and Promotional Costs Advertising and promotional costs are included in "Selling, General and Administrative" expenses in the consolidated statements of operations and are expensed as incurred. Advertising expense for the three months ended March 31, 2016 and 2015 was $ 259,000 172,000 1,328,000 1,028,000 |
Research and Development Costs | Research and development costs incurred by the Company are charged to expense as incurred and are included in "Cost of Sales" in the consolidated statements of operations. Company-sponsored research and development expense for the three months ended March 31, 2016 and 2015 was $ 1,513,000 1,350,000 4,521,000 3,995,000 |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company measures and recognizes the tax implications of positions taken or expected to be taken in its tax returns on an ongoing basis. |
Net Income Per Share | Net Income Per Share Basic net income per common share (Basic EPS) is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per common share (Diluted EPS) is computed by dividing net income by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. Net Income Weighted Average Shares Net Income per Share 2016 2015 2016 2015 2016 2015 Basic EPS $ 1,044 $ 395 18,811 19,066 $ 0.06 $ 0.02 Effect of Dilutive Securities: Stock Options 17 7 Diluted EPS $ 1,044 $ 395 18,828 19,073 $ 0.06 $ 0.02 Options to purchase 165,615 262,000 Net Income Weighted Average Shares Net Income per Share 2016 2015 2016 2015 2016 2015 Basic EPS $ 2,335 $ 1,505 18,903 19,225 $ 0.12 $ 0.08 Effect of Dilutive Securities: Stock Options 20 4 Diluted EPS $ 2,335 $ 1,505 18,923 19,229 $ 0.12 $ 0.08 Options to purchase 147,038 258,583 |
Stock-Based Compensation | Stock-Based Compensation The Company has established two share incentive programs as discussed in Note 7. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the vesting period. Determining the fair value of share-based awards at the grant date requires assumptions and judgments about expected volatility and forfeiture rates, among other factors. No stock-based compensation costs were recognized for three months ended March 31, 2016 or 2015. Stock-based compensation costs of $ 92,000 101,000 0.00 |
Foreign Currency | Foreign Currency All assets and liabilities of foreign subsidiaries are translated into U.S. Dollars at fiscal period-end exchange rates. Income and expense items are translated at average exchange rates prevailing during the fiscal year. The realized and unrealized gains and losses associated with foreign currency translation, as well as related other comprehensive income, were not material for the three and nine months ended March 31, 2016 and 2015. |
Comprehensive Income | Comprehensive Income For the three and nine months ended March 31, 2016 and 2015, the Company's operations did not give rise to material items includable in comprehensive income, which were not already included in net income. Accordingly, the Company's comprehensive income approximates its net income for all periods presented. |
Segment Reporting | Segment Reporting The Company’s reportable operating segments are determined based on the Company's management approach. The management approach is based on the way that the chief operating decision maker organizes the segments within an enterprise for making operating decisions and assessing performance. The Company's results of operations are reviewed by the chief operating decision maker on a consolidated basis and the Company operates in only one segment. The Company has presented required geographical data in Note 11, and no additional segment data has been presented. |
Shipping and Handling Revenues and Costs | Shipping and Handling Revenues and Costs The Company records the amount billed to customers for shipping and handling in net sales ($ 109,000 117,000 365,000 374,000 232,000 211,000 673,000 692,000 |
Recently Issued Accounting Standards | In March 2016, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance that changes the way companies account for certain aspects of share-based payments to employees. The most significant impact relates to the accounting for income tax effects of share-based compensation awards. This new guidance is part of the FASB’s simplification initiative and requires that all excess tax benefits and tax deficiencies be recorded as income tax expense or benefit in the income statement. In addition, companies are required to treat the tax effects of exercised or vested awards as discrete items in the period that they occur. Other updates include changing the threshold on tax withholding requirements. Under this guidance, an employer can withhold up to the maximum statutory withholding rates in a jurisdiction without tainting the award classification. Additionally, this guidance allows companies to elect a forfeiture recognition method whereby they account for forfeitures as they occur (actual) or they estimate the number of awards expected to be forfeited (current GAAP). Lastly, as it relates to public entities, this guidance also provides requirements for the cash flow classification of cash paid by an employer when directly withholding shares for tax-withholding purposes and excess tax benefits. This guidance becomes effective for the Company’s fiscal 2018 first quarter, with early adoption permitted, and the guidance prescribes different transition methods for the various provisions (i.e., retrospective, modified retrospective, or prospective). The Company is currently evaluating the impact of applying this guidance on its consolidated financial statements. In February 2016, the FASB issued authoritative guidance that requires lessees to account for most leases on their balance sheets with the liability being equal to the present value of the lease payments. The right-of-use asset will be based on the lease liability adjusted for certain costs such as direct costs. Lease expense will be recognized similar to current accounting guidance with operating leases resulting in a straight-line expense and financing leases resulting in a front-loaded expense similar to the current accounting for capital leases. This guidance becomes effective for the Company’s fiscal 2020 first quarter, with early adoption permitted. This guidance must be adopted using a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and provides for certain practical expedients. The Company is currently evaluating the timing, impact and method of applying this guidance on its consolidated financial statements. In November 2015, the FASB issued ASU 2015-17 “Balance Sheet Classification of Deferred Taxes”. The amendments require deferred tax assets and liabilities, along with related valuation allowances, to be classified as noncurrent on the balance sheet. As a result, each tax jurisdiction will now only have one net noncurrent deferred tax asset or liability. The new guidance does not change the existing requirement that prohibits offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. ASU 2015-17 is effective for the Company’s In July 2015, the FASB issued ASU 2015-11 “Inventory (Topic 330): Simplifying the Measurement of Inventory” (ASU 2015-11). The amendments in ASU 2015-11 simplify the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. ASU 2015-11 is effective for the Company’s quarter ended September 30, 2017. Early application is permitted. We have not early adopted ASU 2015-11. The new guidance must be applied prospectively after the date of adoption. We are in the process of evaluating the adoption of this ASU, and do not expect this to have a material effect on our consolidated results of operations and financial condition. In May 2014, the FASB issued authoritative guidance that defines how companies should report revenues from contracts with customers. The standard requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It provides companies with a single comprehensive five-step principles-based model to use in accounting for revenue and supersedes current revenue recognition requirements, including most industry-specific and transaction-specific revenue guidance. In August 2015, the FASB deferred the effective date of the new revenue standard by one year. As a result, the new standard would not be effective for the Company until fiscal 2019. In addition, the FASB is allowing companies to early adopt this guidance for the Company’s fiscal 2018. The guidance permits an entity to apply the standard retrospectively to all prior periods presented, with certain practical expedients, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company will apply this new guidance when it becomes effective and has not yet selected a transition method. The Company is currently evaluating the impact of adoption on its consolidated financial statements. |
Nature of Business and Summar18
Nature of Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of intangible assets | Changes in intangible assets are as follows (in thousands): March 31, 2016 June 30, 2015 Cost Accumulated Net book Cost Accumulated Net book Customer relationships $ 9,800 $ (7,212) $ 2,588 $ 9,800 $ (6,820) $ 2,980 Non-compete agreement 340 (340) 340 (334) 6 Trade name 5,900 5,900 5,900 5,900 $ 16,040 $ (7,552) $ 8,488 $ 16,040 $ (7,154) $ 8,886 |
Schedule of Earnings Per Share Reconciliation | The following provides a reconciliation of information used in calculating the per share amounts for the three months ended March 31 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2016 2015 2016 2015 2016 2015 Basic EPS $ 1,044 $ 395 18,811 19,066 $ 0.06 $ 0.02 Effect of Dilutive Securities: Stock Options 17 7 Diluted EPS $ 1,044 $ 395 18,828 19,073 $ 0.06 $ 0.02 The following provides a reconciliation of information used in calculating the per share amounts for the nine months ended March 31 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2016 2015 2016 2015 2016 2015 Basic EPS $ 2,335 $ 1,505 18,903 19,225 $ 0.12 $ 0.08 Effect of Dilutive Securities: Stock Options 20 4 Diluted EPS $ 2,335 $ 1,505 18,923 19,229 $ 0.12 $ 0.08 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventories, net of reserves consist of the following (in thousands): March 31, June 30, Component parts $ 14,238 $ 15,037 Work-in-process 3,915 4,136 Finished product 7,289 7,697 $ 25,442 $ 26,870 Classification of inventories, net of reserves: Current $ 20,631 $ 22,757 Non-current 4,811 4,113 $ 25,442 $ 26,870 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consist of the following (in thousands): March 31, June 30, Useful Life in Years Land $ 904 $ 904 Buildings 8,911 8,911 30 to 40 Molds and dies 7,031 7,002 3 to 5 Furniture and fixtures 2,531 2,478 5 to 10 Machinery and equipment 20,777 20,429 7 to 10 Leasehold improvements 294 294 Shorter of the lease term or life of asset 40,448 40,018 Less: accumulated depreciation and amortization 34,415 33,784 $ 6,033 $ 6,234 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt Instruments | Outstanding balances and interest rates as of March 31, 2016 and June 30, 2015 are as follows: March 31, 2016 June 30, 2015 Outstanding Interest Rate Outstanding Interest Rate Revolving line of credit $ 2,000 1.9 % $ 3,000 1.7 % Term loans 5,500 1.9 % 7,700 1.7 % Total debt $ 7,500 1.9 % $ 10,700 1.7 % |
Stock Options (Tables)
Stock Options (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table reflects activity under the 2012 Plan for the nine months ended March 31,: 2016 2015 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 112,500 $ 5.30 78,500 $ 5.73 Granted 44,000 4.43 Terminated/Lapsed (15,000) 4.29 (10,000) 4.88 Exercised Outstanding, end of period 97,500 $ 5.46 112,500 $ 5.30 Exercisable, end of period 52,700 $ 5.56 27,500 $ 5.26 Weighted average fair value at grant date of options granted n/a $ 2.82 Total intrinsic value of options exercised n/a n/a Total intrinsic value of options outstanding $ 80,000 $ 78,000 Total intrinsic value of options exercisable $ 38,000 $ 19,000 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding under the 2012 Employee Plan at March 31, 2016: Options outstanding Options exercisable Weighted average Range of Number remaining Weighted average Number Weighted average exercise prices outstanding contractual life exercise price exercisable exercise price $4.29-$6.31 97,500 7.9 $ 5.46 52,700 $ 5.56 97,500 7.9 $ 5.46 52,700 $ 5.56 |
Non Employee 2012 Stock Option Plan [Member] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table reflects activity under the 2012 Non-Employee Plan for the nine months ended March 31,: 2016 2015 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 35,000 $ 4.73 25,000 $ 4.88 Granted 10,000 4.37 Terminated/Lapsed Exercised Outstanding, end of period 35,000 $ 4.73 35,000 $ 4.73 Exercisable, end of period 19,000 $ 4.77 12,000 $ 4.80 Weighted average fair value at grant date of options granted n/a $ 2.86 Total intrinsic value of options exercised n/a n/a Total intrinsic value of options outstanding $ 53,000 $ 37,000 Total intrinsic value of options exercisable $ 28,000 $ 12,000 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding under the 2012 Non-Employee Plan at March 31, 2016: Options outstanding Options exercisable Weighted average Weighted Weighted Range of Number remaining average exercise Number average exercise exercise prices outstanding contractual life price exercisable price $4.37 - $4.88 35,000 7.8 $ 4.73 19,000 $ 4.77 35,000 7.8 $ 4.73 19,000 $ 4.77 |
Employee Stock Option Plan 2002 [Member] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table reflects activity under the 2002 Employee plan for the nine months ended March 31,: 2016 2015 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 208,500 $ 6.86 265,750 $ 6.51 Granted Terminated/Lapsed (38,500) 11.03 (57,250) 5.24 Exercised (67,500) 5.73 Outstanding, end of period 102,500 $ 6.04 208,500 $ 6.86 Exercisable, end of period 102,500 $ 6.04 208,500 $ 6.86 Weighted average fair value at grant date of options granted n/a n/a Total intrinsic value of options exercised $ 98,000 n/a Total intrinsic value of options outstanding $ 31,000 $ 10,000 Total intrinsic value of options exercisable $ 31,000 $ 10,000 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding under the 2002 Employee Plan at March 31, 2016: Options outstanding and exercisable Range of Number Weighted average Weighted average exercise prices outstanding remaining contractual life exercise price $5.35 - $6.62 102,500 0.9 6.04 102,500 0.9 $ 6.04 |
Geographical Data (Tables)
Geographical Data (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule Of Revenue From External Customers And Identifiable Assets By Geographical Areas | Financial Information Relating to Domestic and Foreign Operations Three months ended March 31, Nine months ended March 31, 2016 2015 2016 2015 (in thousands) (in thousands) Sales to external customers(1): Domestic $ 19,229 $ 17,076 $ 56,515 $ 52,523 Foreign 579 818 1,939 2,278 Total Net Sales $ 19,808 $ 17,894 $ 58,454 $ 54,801 March 31, June 30, Identifiable assets: 2016 2015 United States $ 49,249 $ 50,998 Dominican Republic (2) 13,150 14,039 Total Identifiable Assets $ 62,399 $ 65,037 (1) All of the Company's sales originate in the United States and are shipped primarily from the Company's facilities in the United States. There were no sales into any one foreign country in excess of 10% of total Net Sales. (2) Consists primarily of inventories (March 31, 2016 = $ 9,666 10,546 3,244 3,347 |
Nature of Business and Summar24
Nature of Business and Summary of Significant Accounting Policies (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Significant Accounting Policies [Line Items] | |||||
Carrying amount of long-term debt, including current portion | $ 7,500,000 | $ 7,500,000 | |||
Short-term time deposits | 460,000 | 460,000 | |||
Intangible assets amortization expense | 131,000 | $ 167,000 | 398,000 | $ 500,000 | |
Estimated amortization expense-2016 | 529,000 | 529,000 | |||
Estimated amortization expense-2017 | 441,000 | 441,000 | |||
Estimated amortization expense-2018 | 371,000 | 371,000 | |||
Estimated amortization expense-2019 | 313,000 | 313,000 | |||
Estimated amortization expense-2020 | $ 264,000 | $ 264,000 | |||
Weighted average amortization period for acquired intangible assets | 12 years 3 months 18 days | 13 years 3 months 18 days | |||
Antidilutive options outstanding excluded from diluted EPS computations | 165,615 | 262,000 | 147,038 | 258,583 | |
Stock-based compensation costs | $ 0 | $ 0 | $ 92,000 | $ 101,000 | |
Sales Returns And Allowances Percentage | 6.00% | 8.00% | 7.00% | 8.00% | |
Stock-based compensation costs, effect on EPS | $ 0 | $ 0 | $ 0 | $ 0 | |
Selling, General and Administrative Expenses [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Advertising and promotion costs | $ 259,000 | $ 172,000 | $ 1,328,000 | $ 1,028,000 | |
Sales revenue, net [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Shipping and handling revenue | 232,000 | 211,000 | 673,000 | 692,000 | |
Cost of sales [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Research and development costs | 1,513,000 | 1,350,000 | 4,521,000 | 3,995,000 | |
Shipping and handling expense | 109,000 | $ 117,000 | 365,000 | $ 374,000 | |
Allowance for doubtful accounts current [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Valuation allowances and reserves, balance | 135,000 | 135,000 | $ 175,000 | ||
Returns and other allowances [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Valuation allowances and reserves, balance | $ 975,000 | $ 975,000 | $ 1,260,000 |
Nature of Business and Summar25
Nature of Business and Summary of Significant Accounting Policies - Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Intangible Assets by Major Class [Line Items] | ||
Intangible assets, Cost | $ 16,040 | $ 16,040 |
Finite-lived intangible assets, Accumulated amortization | (7,552) | (7,154) |
Finite-lived intangible assets, Net book value | 8,488 | 8,886 |
Customer relationships [Member] | ||
Intangible Assets by Major Class [Line Items] | ||
Intangible assets, Cost | 9,800 | 9,800 |
Finite-lived intangible assets, Accumulated amortization | (7,212) | (6,820) |
Finite-lived intangible assets, Net book value | 2,588 | 2,980 |
Non-compete agreement [Member] | ||
Intangible Assets by Major Class [Line Items] | ||
Intangible assets, Cost | 340 | 340 |
Finite-lived intangible assets, Accumulated amortization | (340) | (334) |
Finite-lived intangible assets, Net book value | 0 | 6 |
Trade Name [Member] | ||
Intangible Assets by Major Class [Line Items] | ||
Intangible assets, Cost | 5,900 | 5,900 |
Finite-lived intangible assets, Accumulated amortization | 0 | 0 |
Finite-lived intangible assets, Net book value | $ 5,900 | $ 5,900 |
Nature of Business and Summar26
Nature of Business and Summary of Significant Accounting Policies - Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Weighted Average Number of Diluted Shares Outstanding [Line Items] | ||||
Net Income Available to Common Stockholders, Basic, Total | $ 1,044 | $ 395 | $ 2,335 | $ 1,505 |
Net Income Available to Common Stockholders, Diluted, Total | $ 1,044 | $ 395 | $ 2,335 | $ 1,505 |
Weighted Average Shares, Basic EPS | 18,811,000 | 19,066,000 | 18,903,000 | 19,225,000 |
Effect of Dilutive Securities Stock Options | 17,000 | 7,000 | 20,000 | 4,000 |
Weighted average shares, Diluted EPS | 18,828,000 | 19,073,000 | 18,923,000 | 19,229,000 |
Net Income Per Share Basic | $ 0.06 | $ 0.02 | $ 0.12 | $ 0.08 |
Net Income Per Share Diluted | $ 0.06 | $ 0.02 | $ 0.12 | $ 0.08 |
Business and Credit Concentra27
Business and Credit Concentrations (Narrative) (Detail) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | |
Concentration Risk [Line Items] | |||||
Percentage that a major customer's balance is to total accounts receivable | 25.00% | 25.00% | 22.00% | ||
Sales Revenue, Net [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 13.00% | 11.00% | 12.00% | 12.00% |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Inventory [Line Items] | ||
Component parts | $ 14,238 | $ 15,037 |
Work-in-process | 3,915 | 4,136 |
Finished product | 7,289 | 7,697 |
Total Inventory | 25,442 | 26,870 |
Current | 20,631 | 22,757 |
Non-current | 4,811 | 4,113 |
Total Inventory | $ 25,442 | $ 26,870 |
Property, Plant and Equipment29
Property, Plant and Equipment (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | $ 217,000 | $ 222,000 | $ 631,000 | $ 634,000 |
Property, Plant and Equipment30
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 40,448 | $ 40,018 |
Less: accumulated depreciation and amortization | 34,415 | 33,784 |
Property, plant and equipment, net | 6,033 | 6,234 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 904 | 904 |
Property, plant and equipment, useful life | 0 years | |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 8,911 | 8,911 |
Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 30 years | |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 40 years | |
Molds and dies [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 7,031 | 7,002 |
Molds and dies [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Molds and dies [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,531 | 2,478 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 10 years | |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 20,777 | 20,429 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 7 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 10 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 294 | $ 294 |
Property, plant and equipment, useful life | Shorter of the lease term or life of asset |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Detail) | 9 Months Ended |
Mar. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |
Initial amount of loan | $ 6,000,000 |
Number of required loan repayments from inception | 28 |
Term loan expiring June 2017 [Member] | |
Debt Instrument [Line Items] | |
Initial amount of loan | $ 6,500,000 |
Number of required loan repayments from inception | 20 |
Quarterly principal repayment amount | $ 325,000 |
Revolving line of credit expiring June 2017 [Member] | |
Debt Instrument [Line Items] | |
Revolving credit loan facility, maximum borrowing capacity | $ 11,000,000 |
Third Amended and Restated Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Percentage of common stock of foreign subsidiaries pledged as collateral | 65.00% |
Third Amended and Restated Credit Agreement [Member] | Variable Interest Rate Option One [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Interest rate over the reference rate | 1.50% |
Third Amended and Restated Credit Agreement [Member] | Variable Interest Rate Option Two [Member] | |
Debt Instrument [Line Items] | |
Interest rate over the reference rate | 0.25% |
Third Amended and Restated Credit Agreement [Member] | Variable Interest Rate Option Two [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Interest rate over the reference rate | 2.75% |
Term Loan Quarterly Payments [Member] | |
Debt Instrument [Line Items] | |
Quarterly principal repayment amount | $ 75,000 |
Payoff amount at maturity | $ 3,900,000 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Debt Instrument [Line Items] | ||
Total debt | $ 7,500,000 | |
Total debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 7,500,000 | $ 10,700,000 |
Interest rate | 1.90% | 1.70% |
Revolving line of credit [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding | $ 2,000,000 | $ 3,000,000 |
Interest rate | 1.90% | 1.70% |
Term loans [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding | $ 5,500,000 | $ 7,700,000 |
Interest rate | 1.90% | 1.70% |
Stock Options (Narrative) (Deta
Stock Options (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share Based Compensation Expense | $ 0 | $ 0 | $ 92,000 | $ 101,000 |
Share based Compensation Cost Effect On Earnings Per Share Basic And Diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Employee 2012 Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance under the plan | 950,000 | 950,000 | ||
Percentage Applied To Market Price To Set Grant Price For Grantee Owning Ten Percent Or More Of Entity Common Stock Outstanding | 110.00% | |||
Term of stock option awards | 10 years | |||
Annual rate at which share-based compensation awards vest | 20.00% | |||
Number of stock options, exercisable | 52,700 | 52,700 | ||
Number of stock options available for grant | 852,500 | 852,500 | ||
Unearned stock-based compensation cost related to non-vested awards | $ 157,000 | $ 157,000 | ||
Fair value of stock options that vested during the period | $ 0 | $ 0 | $ 109,600 | $ 41,000 |
Number of shares outstanding, end of period | 97,500 | 97,500 | ||
NonEmployee 2012 Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance under the plan | 50,000 | 50,000 | ||
Term of stock option awards | 10 years | |||
Annual rate at which share-based compensation awards vest | 20.00% | |||
Number of stock options, exercisable | 19,000 | 19,000 | ||
Number of stock options available for grant | 15,000 | 15,000 | ||
Unearned stock-based compensation cost related to non-vested awards | $ 50,000 | $ 50,000 | ||
Fair value of stock options that vested during the period | $ 0 | 0 | $ 22,000 | 22,000 |
Number of shares outstanding, end of period | 35,000 | 35,000 | ||
2002 Employee Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance under the plan | 1,836,000 | 1,836,000 | ||
Percentage Applied To Market Price To Set Grant Price For Grantee Owning Ten Percent Or More Of Entity Common Stock Outstanding | 110.00% | |||
Term of stock option awards | 10 years | |||
Annual rate at which share-based compensation awards vest | 20.00% | |||
Number of stock options, granted | 1,471,480 | |||
Tax benefit from stock option exercise | $ 0 | $ 0 | $ 0 | $ 0 |
Number of shares outstanding, end of period | 140,000 | 140,000 | ||
Number of stock options, exercised | 0 | 0 | 67,500 | 0 |
Conversion of Stock, Shares Issued | 53,868 |
Stock Options (Detail)
Stock Options (Detail) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee 2012 Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning of year | 112,500 | 78,500 |
Granted | 0 | 44,000 |
Terminated/Lapsed | (15,000) | (10,000) |
Exercised | 0 | 0 |
Outstanding, end of period | 97,500 | 112,500 |
Exercisable, end of period | 52,700 | 27,500 |
Weighted average fair value at grant date of options granted | $ 2.82 | |
Total intrinsic value of options exercised | ||
Total intrinsic value of options outstanding | $ 80,000 | $ 78,000 |
Total intrinsic value of options exercisable | $ 38,000 | $ 19,000 |
Outstanding, beginning of year, weighted average exercise price | $ 5.30 | $ 5.73 |
Granted, weighted average exercise price | 0 | 4.43 |
Terminated/Lapsed, weighted average exercise price | 4.29 | 4.88 |
Exercised, weighted average exercise price | 0 | 0 |
Outstanding, end of period, weighted average exercise price | 5.46 | 5.30 |
Exercisable, end of period, weighted average exercise price | $ 5.56 | $ 5.26 |
NonEmployee 2012 Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning of year | 35,000 | 25,000 |
Granted | 0 | 10,000 |
Terminated/Lapsed | 0 | 0 |
Exercised | 0 | 0 |
Outstanding, end of period | 35,000 | 35,000 |
Exercisable, end of period | 19,000 | 12,000 |
Weighted average fair value at grant date of options granted | $ 2.86 | |
Total intrinsic value of options exercised | ||
Total intrinsic value of options outstanding | $ 53,000 | $ 37,000 |
Total intrinsic value of options exercisable | $ 28,000 | $ 12,000 |
Outstanding, beginning of year, weighted average exercise price | $ 4.73 | $ 4.88 |
Granted, weighted average exercise price | 0 | 4.37 |
Terminated/Lapsed, weighted average exercise price | 0 | 0 |
Exercised, weighted average exercise price | 0 | 0 |
Outstanding, end of period, weighted average exercise price | 4.73 | 4.73 |
Exercisable, end of period, weighted average exercise price | $ 4.77 | $ 4.80 |
Employee Stock Option Plan 2002 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning of year | 208,500 | 265,750 |
Granted | 0 | 0 |
Terminated/Lapsed | (38,500) | (57,250) |
Exercised | (67,500) | 0 |
Outstanding, end of period | 102,500 | 208,500 |
Exercisable, end of period | 102,500 | 208,500 |
Weighted average fair value at grant date of options granted | ||
Total intrinsic value of options exercised | $ 98,000 | |
Total intrinsic value of options outstanding | 31,000 | $ 10,000 |
Total intrinsic value of options exercisable | $ 31,000 | $ 10,000 |
Outstanding, beginning of year, weighted average exercise price | $ 6.86 | $ 6.51 |
Granted, weighted average exercise price | 0 | 0 |
Terminated/Lapsed, weighted average exercise price | 11.03 | 5.24 |
Exercised, weighted average exercise price | 5.73 | 0 |
Outstanding, end of period, weighted average exercise price | 6.04 | 6.86 |
Exercisable, end of period, weighted average exercise price | $ 6.04 | $ 6.86 |
Stock Options by Range of Exerc
Stock Options by Range of Exercise Prices (Detail) | 9 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Employee 2012 Stock Option Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number outstanding | shares | 97,500 |
Options Outstanding, Weighted average remaining contractual life | 7 years 10 months 24 days |
Options Outstanding, weighted average exercise price | $ 5.46 |
Options exercisable, Number exercisable | shares | 52,700 |
Options exercisable, Weighted average exercise price | $ 5.56 |
Employee 2012 Stock Option Plan [Member] | Exercise price range $ 4.29 - $ 6.31 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | 4.29 |
Range of exercise prices, upper limit | $ 6.31 |
Options Outstanding, Number outstanding | shares | 97,500 |
Options Outstanding, Weighted average remaining contractual life | 7 years 10 months 24 days |
Options Outstanding, weighted average exercise price | $ 5.46 |
Options exercisable, Number exercisable | shares | 52,700 |
Options exercisable, Weighted average exercise price | $ 5.56 |
NonEmployee 2012 Stock Option Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number outstanding | shares | 35,000 |
Options Outstanding, Weighted average remaining contractual life | 7 years 9 months 18 days |
Options Outstanding, weighted average exercise price | $ 4.73 |
Options exercisable, Number exercisable | shares | 19,000 |
Options exercisable, Weighted average exercise price | $ 4.77 |
NonEmployee 2012 Stock Option Plan [Member] | Exercise price range $4.37 - $4.88 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | 4.37 |
Range of exercise prices, upper limit | $ 4.88 |
Options Outstanding, Number outstanding | shares | 35,000 |
Options Outstanding, Weighted average remaining contractual life | 7 years 9 months 18 days |
Options Outstanding, weighted average exercise price | $ 4.73 |
Options exercisable, Number exercisable | shares | 19,000 |
Options exercisable, Weighted average exercise price | $ 4.77 |
2002 Employee Stock Option Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number outstanding | shares | 102,500 |
Options Outstanding, Weighted average remaining contractual life | 10 months 24 days |
Options Outstanding, weighted average exercise price | $ 6.04 |
2002 Employee Stock Option Plan [Member] | Exercise price range $ 5.35 - $ 6.62 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices, lower limit | 5.35 |
Range of exercise prices, upper limit | $ 6.62 |
Options Outstanding, Number outstanding | shares | 102,500 |
Options Outstanding, Weighted average remaining contractual life | 10 months 24 days |
Options Outstanding, weighted average exercise price | $ 6.04 |
Stockholders' Equity Transact36
Stockholders' Equity Transactions (Narrative) (Detail) - $ / shares | 9 Months Ended | ||
Mar. 31, 2016 | Jun. 30, 2015 | Sep. 16, 2014 | |
Stockholders Equity Note [Line Items] | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 1,000,000 | ||
Common Stock Shares Outstanding | 18,786,893 | 18,966,028 | 19,400,000 |
Treasury Stock, Shares, Acquired | 192,767 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 5.73 |
401(k) Plan (Narrative) (Detail
401(k) Plan (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Napco Technologies 401 k Plan [Member] | ||||
Schedule of Deferred Compensation Plans [Line Items] | ||||
Deferred compensation plan expense | $ 26,000 | $ 27,000 | $ 81,000 | $ 93,000 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Detail) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016USD ($)a | Mar. 31, 2015USD ($) | Mar. 31, 2016USD ($)a | Mar. 31, 2015USD ($) | |
Property Subject to or Available for Operating Lease [Line Items] | ||||
Acreage | a | 0 | 0 | ||
Employee Severance [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Number Of Agreements | 1 | |||
Employee Severance [Member] | Senior Vice President of Sales and Marketing [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Expiration Year | 2,018 | |||
Annual salary commitment | $ 285,000 | |||
Employment Contracts [Member] | Chief executive officer [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Annual salary commitment | $ 670,000 | |||
Termination pay commitment rate applied to the average of the prior five calendar years compensation | 299.00% | |||
Employment Contracts [Member] | Senior Vice President of Sales and Marketing [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Expiration Year | 2,018 | |||
Annual salary commitment | $ 315,000 | |||
Land lease in Dominican Republic expiring 2092 [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Expiration Year | 2,092 | |||
Annual minimum rent | $ 288,000 | $ 288,000 | ||
Leased property and equipment, excluding foreign land [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Rent expense | $ 6,000 | $ 7,000 | $ 20,000 | $ 23,000 |
Geographical Data (Detail)
Geographical Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2015 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total Net Sales | [1] | $ 19,808 | $ 17,894 | $ 58,454 | $ 54,801 | |
Total Identifiable Assets | 62,399 | 62,399 | $ 65,037 | |||
Domestic [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenues | [1] | 19,229 | 17,076 | 56,515 | 52,523 | |
Foreign [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenues | [1] | 579 | $ 818 | 1,939 | $ 2,278 | |
United States [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total Identifiable Assets | 49,249 | 49,249 | 50,998 | |||
Dominican Republic [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total Identifiable Assets | [2] | $ 13,150 | $ 13,150 | $ 14,039 | ||
[1] | All of the Company's sales originate in the United States and are shipped primarily from the Company's facilities in the United States. There were no sales into any one foreign country in excess of 10% of total Net Sales. | |||||
[2] | Consists primarily of inventories (March 31, 2016 = $9,666, June 30, 2015 = $10,546) and fixed assets (March 31, 2016 = $3,244, June 30, 2015 = $3,347) located at the Company's principal manufacturing facility in the Dominican Republic. |
Geographical Data (Parenthetica
Geographical Data (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Jun. 30, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Inventories | $ 20,631 | $ 22,757 |
Fixed assets | 6,033 | 6,234 |
Dominican Republic [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Inventories | 9,666 | 10,546 |
Fixed assets | $ 3,244 | $ 3,347 |