Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Mar. 31, 2014 | Apr. 24, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'CONCURRENT COMPUTER CORP/DE | ' |
Entity Central Index Key | '0000749038 | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 9,262,238 |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $22,452 | $27,927 |
Accounts receivable, less allowance for doubtful accounts of $78 at March 31, 2014 and $70 at June 30, 2013 | 18,165 | 10,701 |
Inventories | 3,609 | 2,844 |
Prepaid expenses and other current assets | 1,426 | 2,324 |
Total current assets | 45,652 | 43,796 |
Property, plant and equipment, net | 2,992 | 3,102 |
Intangible assets, net | 512 | 834 |
Other long-term assets, net | 921 | 737 |
Total assets | 50,077 | 48,469 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 9,274 | 7,671 |
Deferred revenue | 8,590 | 8,383 |
Total current liabilities | 17,864 | 16,054 |
Non-current liabilities: | ' | ' |
Deferred revenue | 1,160 | 1,924 |
Pension liability | 3,115 | 2,901 |
Other | 1,872 | 1,805 |
Total liabilities | 24,011 | 22,684 |
Commitments and contingencies (Note 12) | ' | ' |
Stockholders' equity: | ' | ' |
Shares of common stock, par value $.01; 14,000,000 authorized; 8,981,655 and 8,807,766 issued and outstanding at March 31, 2014 and June 30, 2013, respectively | 90 | 88 |
Capital in excess of par value | 209,464 | 208,677 |
Accumulated deficit | -183,494 | -183,085 |
Treasury stock, at cost; 37,788 at March 31, 2014 and June 30, 2013 | -255 | -255 |
Accumulated other comprehensive income | 261 | 360 |
Total stockholders' equity | 26,066 | 25,785 |
Total liabilities and stockholders' equity | $50,077 | $48,469 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Accounts receivable, allowance for doubtful accounts | $78 | $70 |
Stockholders' equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 14,000,000 | 14,000,000 |
Common stock, issued (in shares) | 8,981,655 | 8,807,766 |
Common stock, outstanding (in shares) | 8,981,655 | 8,807,766 |
Treasury stock, at cost (in shares) | 37,788 | 37,788 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' | ' | ' |
Product | $12,197 | $10,714 | $34,651 | $29,777 |
Service | 6,081 | 6,213 | 18,662 | 18,743 |
Total revenues | 18,278 | 16,927 | 53,313 | 48,520 |
Cost of sales: | ' | ' | ' | ' |
Product | 5,495 | 4,591 | 15,701 | 12,439 |
Service | 2,535 | 2,336 | 7,906 | 7,726 |
Total cost of sales | 8,030 | 6,927 | 23,607 | 20,165 |
Gross margin | 10,248 | 10,000 | 29,706 | 28,355 |
Operating expenses: | ' | ' | ' | ' |
Sales and marketing | 3,595 | 3,527 | 10,590 | 10,808 |
Research and development | 3,409 | 2,878 | 9,998 | 8,673 |
General and administrative | 1,984 | 2,362 | 5,925 | 6,352 |
Total operating expenses | 8,988 | 8,767 | 26,513 | 25,833 |
Operating income | 1,260 | 1,233 | 3,193 | 2,522 |
Interest income | 2 | 8 | 18 | 34 |
Interest expense | -9 | -15 | -41 | -50 |
Other expense, net | -31 | -222 | -105 | -391 |
Income before income taxes | 1,222 | 1,004 | 3,065 | 2,115 |
Provision for income taxes | 140 | 67 | 160 | 180 |
Net income | $1,082 | $937 | $2,905 | $1,935 |
Net income per share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.12 | $0.11 | $0.33 | $0.22 |
Diluted (in dollars per share) | $0.12 | $0.11 | $0.32 | $0.22 |
Weighted average shares outstanding - basic (in shares) | 8,944 | 8,754 | 8,897 | 8,726 |
Weighted average shares outstanding - diluted (in shares) | 9,090 | 8,894 | 9,074 | 8,873 |
Cash dividends declared per common share (in dollars per share) | $0.12 | $0.06 | $0.36 | $0.74 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract] | ' | ' | ' | ' |
Net income | $1,082 | $937 | $2,905 | $1,935 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | 31 | -24 | -114 | -242 |
Pension and post-retirement benefits, net of tax | 5 | 2 | 15 | 6 |
Other comprehensive loss | 36 | -22 | -99 | -236 |
Total Comprehensive income | $1,118 | $915 | $2,806 | $1,699 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Stockholders' Equity and Comprehensive Income (Loss) (USD $) | Common Stock [Member] | Capital In Excess Of Par Value [Member] | Accumulated Deficit [Member] | Accumulated Other Comp. Income [Member] | Treasury Stock [Member] | Total |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Jun. 30, 2013 | $88 | $208,677 | ($183,085) | $360 | ($255) | $25,785 |
Treasury Stock (in shares) at Jun. 30, 2013 | ' | ' | ' | ' | -37,788 | -37,788 |
Balance (in shares) at Jun. 30, 2013 | 8,807,766 | ' | ' | ' | ' | 8,807,766 |
Comprehensive Income : | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | 2,905 | ' | ' | 2,905 |
Foreign currency translation adj | ' | ' | ' | -114 | ' | -114 |
Pensions plan | ' | ' | ' | 15 | ' | 15 |
Total Comprehensive income | ' | ' | ' | ' | ' | 2,806 |
Dividends declared | ' | ' | -3,330 | ' | ' | -3,330 |
Dividends forfeited with restricted stock forfeitures | ' | ' | 59 | ' | ' | 59 |
Restricted stock compensation expensed | ' | 883 | ' | ' | ' | 883 |
Lapse of restriction on restricted stock | 2 | -2 | ' | ' | ' | 0 |
Lapse of restriction on restricted stock (in shares) | 191,121 | ' | ' | ' | ' | ' |
Repurchase of shares to satisfy minimum tax withholdings on restricted stock releases | 0 | -94 | -43 | ' | ' | -137 |
Repurchase of shares to satisfy minimum tax withholdings on restricted stock releases (in shares) | -17,232 | ' | ' | ' | ' | ' |
Balance at Mar. 31, 2014 | $90 | $209,464 | ($183,494) | $261 | ($255) | $26,066 |
Treasury Stock (in shares) at Mar. 31, 2014 | ' | ' | ' | ' | -37,788 | -37,788 |
Balance (in shares) at Mar. 31, 2014 | 8,981,655 | ' | ' | ' | ' | 8,981,655 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
OPERATING ACTIVITIES | ' | ' |
Net income | $2,905 | $1,935 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | 1,795 | 2,426 |
Share-based compensation | 883 | 593 |
Other non-cash expenses | 1 | 670 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable | -7,484 | -8,137 |
Inventories | -798 | 434 |
Prepaid expenses and other current assets | 879 | 450 |
Accounts payable and accrued expenses | 1,545 | 1,287 |
Other long-term assets | -32 | 199 |
Deferred revenue | -557 | 544 |
Other long-term liabilities | 225 | 5 |
Total adjustments to net income | -3,543 | -1,529 |
Net cash provided by operating activities | -638 | 406 |
INVESTING ACTIVITIES | ' | ' |
Additions to property and equipment | -1,291 | -801 |
Net cash used in investing activities | -1,291 | -801 |
FINANCING ACTIVITIES | ' | ' |
Dividends paid | -3,378 | -6,478 |
Repurchase of shares to satisfy employee tax withholdings | -137 | 0 |
Net cash used in financing activities | -3,515 | -6,478 |
Effect of exchange rates on cash and cash equivalents | -31 | -370 |
Change in cash and cash equivalents | -5,475 | -7,243 |
Cash and cash equivalents - beginning of year | 27,927 | 29,613 |
Cash and cash equivalents - end of year | 22,452 | 22,370 |
Cash paid during the period for: | ' | ' |
Interest | 22 | 20 |
Income taxes (net of refunds) | ($136) | $856 |
Overview_of_Business_and_Basis
Overview of Business and Basis of Presentation | 9 Months Ended |
Mar. 31, 2014 | |
Overview of Business and Basis of Presentation [Abstract] | ' |
Overview of Business and Basis of Presentation | ' |
1. Overview of Business and Basis of Presentation | |
We provide software, hardware and professional services for the video market and the high-performance, real-time market. Our business is comprised of two segments for financial reporting purposes, products and services, which we provide for each of these markets. | |
Our video solutions consist of software, hardware, and services for intelligently streaming video and collecting and analyzing media data. Our video solutions and services are deployed by video service providers for distribution of video to consumers and collection of media data intelligence to manage their video business and operations. | |
Our real-time products consist of real-time Linux operating systems, development tools and other system software combined, in most cases, with computer platforms and services. These products are sold to a wide variety of companies seeking high-performance, real-time computer solutions in the military, aerospace, financial and automotive markets around the world. | |
Our condensed consolidated interim financial statements are unaudited and reflect all adjustments (consisting of only normal recurring adjustments) necessary for a fair statement of our financial position, results of operations and cash flows at the dates and for the periods indicated. These financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended June 30, 2013. | |
There have been no changes to our Significant Accounting Policies as disclosed in Note 2 of the consolidated financial statements included in our Annual Report on Form 10-K for the year ended June 30, 2013. The results reported in these condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Income Taxes | |
As of June 30, 2013, we had U.S. federal net operating loss carryforwards of approximately $97,200,000 for income tax purposes which will expire at various dates through 2032. We completed an evaluation of the potential effect of Section 382 of the Internal Revenue Code of 1986 (the "Code") on our ability to utilize these net operating losses. The study concluded that we have not had an ownership change for the period from July 22, 1993 to June 30, 2013. | |
Realization of our deferred tax assets is dependent primarily on the generation of future taxable income. In considering the need for a valuation allowance we consider our historical, as well as, future projected operations along with other positive and negative evidence in assessing if sufficient future taxable income will be generated to use the existing deferred tax assets. The following summarizes our conclusions on the need for a valuation allowance in each jurisdiction as of March 31, 2014: | |
U.S.: As of March 31, 2014, we have realized a three-year cumulative accounting profit in the U.S. While the negative evidence of cumulative losses in recent years is not present at March 31, 2014, we believe that significant uncertainty continues to exist in our domestic operations as our recent improved financial performance in the U.S. has been for a limited time period. We also considered the fact that the three-year cumulative accounting profit included sales to a long time customer that we recently lost and a non-recurring gain from the sale of certain patents. We believe that our history of expired net operating losses, our inability to carryback any net operating losses or credits, a history of inconsistent earnings, and the absence of currently available tax strategies do not provide support for our ability to realize our deferred tax assets at the present time. We believe that it is more likely than not that the benefit from our domestic deferred tax assets will not be realized. In recognition of this risk, we have provided a full valuation allowance on the deferred tax assets relating to our domestic operations as of March 31, 2014. | |
The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income are increased or if a more sustained profitability is achieved and additional weight may be given to subjective evidence such as our projections for growth. If the positive and negative evidence being evaluated changes and we determine we will be able to realize these deferred tax assets, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets will be recognized as a tax benefit, in the period of such reversal. | |
United Kingdom ("U.K."): During the first half of our fiscal year 2014, a change in U.K. tax law relative to treatment of research and development expenses allowed us to release $173,000 of valuation allowances against deferred tax assets that we believe are now realizable as a result of the current period tax law change. We believe that in light of this law change, we will now generate sufficient taxable income to fully utilize our net deferred tax assets in the U.K. | |
Japan: Our subsidiary in Japan has a long history of profitable operations, and we continue to project profitability in Japan for the foreseeable future. Therefore, we continue to believe that we will fully realize the net deferred tax assets in Japan, and no valuation allowance is needed. | |
Other Foreign Jurisdictions: We also evaluated the need for a continued full valuation allowance against our foreign deferred tax assets in other jurisdictions. We concluded that a full valuation allowance against our deferred tax assets for other foreign jurisdictions was warranted due to, among other reasons, (i) the realized cumulative accounting losses, (ii) our long history of taxable losses, and (iii) our uncertainty with respect to generating future taxable income in the near term given our recently completed projections and other inherent uncertainties in our business. | |
Each quarter, we assess the total weight of positive and negative evidence and evaluate whether release of all or any portion of the valuation allowance is appropriate. Should we come to the conclusion that a release of our valuation allowances is required, there would be a significant increase in net income and earnings per share due to the impact on the tax rate. | |
We recorded $140,000 and $160,000 of income tax provision during the three and nine months ended March 31, 2014, respectively. Our taxable income is primarily due to taxable income earned by our Japan subsidiary and an expected alternative minimum tax liability in the U.S., both of which were partially offset by the aforementioned release of valuation allowances against deferred tax assets in the U.K. We recorded $67,000 and $180,000 of income tax provision during the three and nine months ended March 31, 2013, respectively, primarily due to alternative minimum tax in the United States and taxable income earned by our Japan subsidiary. | |
Recently Issued Accounting Pronouncements | |
Adopted | |
In February 2013, the FASB issued ASU No. 2013-2, Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, providing on disclosure requirements for items reclassified out of accumulated other comprehensive income ("AOCI"). This new guidance requires entities to present (either on the face of the income statement or in the notes) the effects on the line items of the income statement for amounts reclassified out of AOCI. The new guidance was effective for us beginning July 1, 2013 and did not have a material impact on our financial statements. | |
To Be Adopted | |
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830) which provides guidance on a parent company's accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The new guidance will be effective for us beginning July 1, 2014. We do not anticipate any material impact on our financial statements upon adoption. | |
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This amendment requires entities to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward or a similar tax loss or a tax credit carryforward, unless certain conditions exist. This guidance is effective prospectively for annual reporting periods (and the interim periods within) beginning after December 15, 2013. Early adoption and retrospective application are permitted. We will adopt this guidance effective July 1, 2014. We expect adoption will not have a material impact on our financial condition, results of operations, or cash flows. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||||||
Revenue Recognition Policy | |||||||||||||||||
We generate revenue from the sale of products and services. We commence revenue recognition when all of the following conditions are met: | |||||||||||||||||
| persuasive evidence of an arrangement exists, | ||||||||||||||||
| the system has been delivered or the services have been performed, | ||||||||||||||||
| the fee is fixed or determinable, and | ||||||||||||||||
| collectability of the fee is probable. | ||||||||||||||||
Our standard multiple-element contractual arrangements with our customers generally include the delivery of systems with multiple components of hardware and software, certain professional services that typically involve installation and consulting, and ongoing software and hardware maintenance. Product revenue is generally recognized when the product is delivered. Professional services that are of a consultative nature may take place before, or after, delivery of the system, and installation services typically occur within 90 days after delivery of the system. Professional services revenue is typically recognized as the services are performed. Initial maintenance begins after delivery of the system and typically is provided for one to three years after delivery. Maintenance revenue is recognized ratably over the maintenance period. Our product sales are predominantly system sales whereby software and hardware function together to deliver the essential functionality of the combined product. Upon our adoption of ASU 2009-14 on July 1, 2010, sales of these systems were determined to typically be outside of the scope of the software revenue guidance in Topic 985 (previously included in SOP 97-2) and are accounted for under ASU 2009-13. | |||||||||||||||||
Our sales model for media data intelligence ("MDI") products includes the option for customers to purchase: (1) a perpetual license with maintenance; (2) a term license with maintenance and managed services; (3) software as a service; or (4) perpetual license with maintenance and managed services. Revenue from these sales generally is recognized over the term of the various customer arrangements. Professional services attributable to implementation of our MDI products or managed services are essential to the customers' use of these products and services. We defer commencement of revenue recognition for the entire arrangement until we have delivered the essential professional services or have made a determination that the remaining professional services are no longer essential to the customer. We recognize revenue for managed services and software-as-a-service arrangements once we commence providing the managed or software services and recognize the service revenue ratably over the term of the various customer contracts. In circumstances whereby we sell a term or perpetual license and managed services, we commence revenue recognition after both the software and service are made available to the customer and recognize the revenue from the entire arrangement ratably over the longer of the term license or managed service period, because we believe the managed services to be essential to the functionality of the term or perpetual license. | |||||||||||||||||
We evaluate each element in a multiple-element arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within our control. Our various systems have standalone value because we have either routinely sold them on a standalone basis or we believe that our customers could resell the delivered system on a standalone basis. Professional services have standalone value because we have routinely sold them on a standalone basis, there are similar third party vendors that routinely provide similar professional services, and certain customers perform the installation themselves. Our maintenance has standalone value because we have routinely sold maintenance separately. | |||||||||||||||||
As a result of the adoption of ASU 2009-13, we allocate revenue to each element in an arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence ("VSOE"), if available, third party evidence ("TPE"), if VSOE is not available, or estimated selling price ("ESP"), if neither VSOE nor TPE is available. We have typically been able to establish VSOE of fair value for our maintenance and services. We determine VSOE of fair value for professional services and maintenance by examining the population of selling prices for the same or similar services when sold separately, and determining that the pricing population for each VSOE classification is within a very narrow range of the median selling price. For each element, we evaluate at least annually whether or not we have maintained VSOE of fair value based on our review of the actual selling price of each element over the previous 12 month period. | |||||||||||||||||
Our product deliverables are typically complete systems comprised of numerous hardware and software components that operate together to provide essential functionality, and we are typically unable to establish VSOE or TPE of fair value for our products. Due to the custom nature of our products, we must determine ESP at the individual component level whereby our ESP for the total system is determined based on the sum of the individual components. ESP for components of our real-time products is typically based upon list price, which is representative of our actual selling price. ESP for components of our video products is based upon our most frequent selling price ("mode") of standalone and bundled sales, based upon a 12 month historical analysis. If a mode selling price is not available, then ESP will be the median selling price of all such component sales based upon a 12 month historical analysis, unless facts and circumstances indicate that another selling price, other than the mode or median selling price, is more representative of our ESP. Our methodology for determining ESP requires judgment, and any changes to pricing practices, the costs incurred to integrate products, the nature of our relationships with our customers, and market trends could cause variability in our ESP or cause us to re-evaluate our methodology for determining ESP. We will update our analysis of mode and median selling price at least annually, unless facts and circumstances indicate that more frequent analysis is required. | |||||||||||||||||
Occasionally, we sell software under multiple element arrangements that do not include hardware. Under these software arrangements, we allocate revenue to the various elements based on VSOE of fair value. Our VSOE of fair value is determined based on the price charged when the same element is sold separately. If VSOE of fair value does not exist for all elements in a multiple element arrangement, but does exist for undelivered elements, we recognize revenue using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement is recognized as revenue. Where fair value of undelivered elements has not been established, the total arrangement is recognized over the period during which the services are performed. | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The FASB Accounting Standards Codification ("ASC") requires certain disclosures around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: | |||||||||||||||||
● | Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities; | |||||||||||||||
● | Level 2 | Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and | |||||||||||||||
● | Level 3 | Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which result in the use of management estimates. | |||||||||||||||
We have money market funds that are highly liquid and have a maturity of three months or less, and as such are considered cash equivalents. | |||||||||||||||||
Our financial assets that are measured at fair value on a recurring basis as of March 31, 2014 are as follows (in thousands): | |||||||||||||||||
As of | Quoted Prices in | Observable | Unobservable | ||||||||||||||
31-Mar-14 | Active Markets | Inputs | Inputs | ||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Cash | $ | 12,416 | $ | 12,416 | $ | - | $ | - | |||||||||
Money market funds | 10,036 | 10,036 | - | - | |||||||||||||
Cash and cash equivalents | $ | 22,452 | $ | 22,452 | $ | - | $ | - | |||||||||
Our financial assets that are measured at fair value on a recurring basis as of June 30, 2013 are as follows (in thousands): | |||||||||||||||||
As of | Quoted Prices in | Observable | Unobservable | ||||||||||||||
30-Jun-13 | Active Markets | Inputs | Inputs | ||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Cash | $ | 17,895 | $ | 17,895 | $ | - | $ | - | |||||||||
Money market funds | 10,032 | 10,032 | - | - | |||||||||||||
Cash and cash equivalents | $ | 27,927 | $ | 27,927 | $ | - | $ | - |
Basic_and_Diluted_Net_Income_p
Basic and Diluted Net Income per Share | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Basic and Diluted Net Income per Share [Abstract] | ' | ||||||||||||||||
Basic and Diluted Net Income per Share | ' | ||||||||||||||||
3. Basic and Diluted Net Income per Share | |||||||||||||||||
Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of shares including dilutive common share equivalents. Under the treasury stock method, incremental shares representing the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued are included in the computation. Diluted earnings per common share assumes exercise of outstanding stock options and vesting of restricted stock when the effects of such assumptions are dilutive. Common share equivalents of 106,000 and 182,000 for the three months ended March 31, 2014 and 2013, respectively, were excluded from the calculation as their effect was antidilutive. Common share equivalents of 112,000 and 251,000 for the nine months ended March 31, 2014 and 2013, respectively, were excluded from the calculation as their effect was antidilutive. | |||||||||||||||||
The following table presents a reconciliation of the numerators and denominators of basic and diluted net income per share for the periods indicated (dollars and share data in thousands, except per-share amounts): | |||||||||||||||||
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic and diluted earnings per share (EPS) calculation: | |||||||||||||||||
Net income | $ | 1,082 | $ | 937 | $ | 2,905 | $ | 1,935 | |||||||||
Basic weighted average number of shares outstanding | 8,944 | 8,754 | 8,897 | 8,726 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Restricted stock | 129 | 133 | 164 | 147 | |||||||||||||
Stock options | 17 | 7 | 13 | - | |||||||||||||
Diluted weighted average number of shares outstanding | 9,090 | 8,894 | 9,074 | 8,873 | |||||||||||||
Basic EPS | $ | 0.12 | $ | 0.11 | $ | 0.33 | $ | 0.22 | |||||||||
Diluted EPS | $ | 0.12 | $ | 0.11 | $ | 0.32 | $ | 0.22 |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Share-Based Compensation [Abstract] | ' | ||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
4. Share-Based Compensation | |||||||||||||||||
As of March 31, 2014, we had share-based compensation plans which are described in Note 11 of the consolidated financial statements included in our Annual Report on Form 10-K for the year ended June 30, 2013. We recognize stock compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. As of March 31, 2014, we had 184,517 stock options outstanding and 318,371 restricted shares outstanding. No restricted shares vested, or were granted or cancelled during the three months ended March 31, 2014, and no stock options were granted or exercised during the three and nine months ended March 31, 2014. | |||||||||||||||||
We recorded share-based compensation related to the issuance of stock options and restricted stock to employees and board members as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Share-based compensation expense | |||||||||||||||||
included in the Statements of Operations: | |||||||||||||||||
Cost of sales | $ | 15 | $ | 14 | $ | 43 | $ | 41 | |||||||||
Sales and marketing | 43 | 48 | 133 | 116 | |||||||||||||
Research and development | 42 | 37 | 118 | 90 | |||||||||||||
General and administrative | 154 | 125 | 589 | 346 | |||||||||||||
Total | 254 | 224 | 883 | 593 | |||||||||||||
Tax benefit | - | - | - | - | |||||||||||||
Share-based compensation expense, net of taxes | $ | 254 | $ | 224 | $ | 883 | $ | 593 |
Inventories
Inventories | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
5. Inventories | |||||||||
Inventories are stated at the lower of cost or market, with cost being determined by using the first-in, first-out method. We reduce our excess and obsolete inventory to market value, if below cost, based upon historical and anticipated usage. The components of inventories are as follows (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,256 | $ | 1,091 | |||||
Work-in-process | 328 | 298 | |||||||
Finished goods | 2,025 | 1,455 | |||||||
Total inventory | $ | 3,609 | $ | 2,844 |
Other_Intangible_Assets
Other Intangible Assets | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Intangible Assets [Abstract] | ' | ||||||||
Other Intangible Assets | ' | ||||||||
6. Other Intangible Assets | |||||||||
Intangible assets consist of the following (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Cost of amortizable intangibles: | |||||||||
Purchased technology | $ | 7,700 | $ | 7,700 | |||||
Customer relationships | 1,900 | 1,900 | |||||||
Patents | 93 | 78 | |||||||
Total cost of intangibles | 9,693 | 9,678 | |||||||
Less accumulated amortization: | |||||||||
Purchased technology | (7,700 | ) | (7,497 | ) | |||||
Customer relationships | (1,463 | ) | (1,334 | ) | |||||
Patents | (18 | ) | (13 | ) | |||||
Total accumulated amortization | (9,181 | ) | (8,844 | ) | |||||
Total intangible assets, net | $ | 512 | $ | 834 | |||||
Amortization expense was $337,000 and $678,000 for the nine months ended March 31, 2014 and March 31, 2013, respectively. |
Accounts_Payable_and_Accrued_E
Accounts Payable and Accrued Expenses | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounts Payable and Accrued Expenses [Abstract] | ' | ||||||||
Accounts Payable and Accrued Expenses | ' | ||||||||
7. Accounts Payable and Accrued Expenses | |||||||||
The components of accounts payable and accrued expenses are as follows (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Accounts payable, trade | $ | 4,400 | $ | 2,075 | |||||
Accrued payroll, vacation, severance | |||||||||
and other employee expenses | 3,431 | 4,298 | |||||||
Accrued income taxes | 99 | 130 | |||||||
Dividend payable | 85 | 94 | |||||||
Other accrued expenses | 1,259 | 1,074 | |||||||
Total accounts payable and accrued expenses | $ | 9,274 | $ | 7,671 |
Concentration_of_Credit_Risk_S
Concentration of Credit Risk, Segment, and Geographic Information | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Concentration of Credit Risk, Segment, and Geographic Information [Abstract] | ' | ||||||||||||||||
Concentration of Credit Risk, Segment, and Geographic Information | ' | ||||||||||||||||
8. Concentration of Credit Risk, Segment, and Geographic Information | |||||||||||||||||
We operate in two segments, products and services, as disclosed within our condensed consolidated Statements of Operations. We evaluate segment results using revenues and gross margin as the performance measures. Such information is shown on the face of the accompanying Statements of Operations. We do not identify assets on a segment basis. We attribute revenues to individual countries and geographic areas based upon location of our customers. A summary of our revenues by geographic area is as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
United States | $ | 11,647 | $ | 9,239 | $ | 33,392 | $ | 29,431 | |||||||||
Canada | 457 | 3,018 | 2,715 | 5,062 | |||||||||||||
Total North America | 12,104 | 12,257 | 36,107 | 34,493 | |||||||||||||
Japan | 2,517 | 2,266 | 7,970 | 8,899 | |||||||||||||
Other Asia Pacific countries | 365 | 996 | 2,557 | 1,663 | |||||||||||||
Total Asia Pacific | 2,882 | 3,262 | 10,527 | 10,562 | |||||||||||||
Europe | 3,183 | 1,408 | 6,570 | 3,461 | |||||||||||||
Other | 109 | - | 109 | 4 | |||||||||||||
Total revenue | $ | 18,278 | $ | 16,927 | $ | 53,313 | $ | 48,520 | |||||||||
In addition, the following summarizes revenues by significant customer where such revenue accounted for 10% or more of total revenues for any one of the indicated periods: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Customer A | 25% | <10% | 14% | 12% | |||||||||||||
Customer B | <10% | 13% | 15% | 13% | |||||||||||||
Customer C | <10% | 11% | <10% | <10% | |||||||||||||
We assess credit risk through ongoing credit evaluations of customers' financial condition, and collateral is generally not required. The following summarizes accounts receivable by significant customers for whom accounts receivable were 10% or more of total accounts receivables for any one of the indicated periods: | |||||||||||||||||
March 31, | June 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Customer A | 23% | <10% | |||||||||||||||
Customer D | 11% | <10% | |||||||||||||||
Customer B | <10% | 19% | |||||||||||||||
There were no other customers representing 10% or more of our trade receivables at March 31, 2014 and June 30, 2013. | |||||||||||||||||
The following summarizes purchases from significant vendors where such purchases accounted for 10% or more of total purchases for any one of the indicated periods: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Vendor A | 37% | 37% | 25% | 26% | |||||||||||||
Vendor B | 15% | 16% | 19% | 14% | |||||||||||||
Vendor C | 11% | <10% | 14% | <10% |
Revolving_Credit_Facility
Revolving Credit Facility | 9 Months Ended |
Mar. 31, 2014 | |
Revolving Credit Facility [Abstract] | ' |
Revolving Credit Facility | ' |
9. Revolving Credit Facility | |
We had not drawn against our credit line (the "Revolver") with Silicon Valley Bank in the past three years and allowed it to expire on December 31, 2013. We are currently evaluating whether or not to enter into a new credit arrangement, but based upon our existing cash balances, historical cash usage, and anticipated operating cash flow in the near term, we believe that existing cash balances will be sufficient to meet our anticipated working capital, capital expenditure requirements and any dividend payments for at least the next twelve months. We are no longer subject to any covenants as of December 31, 2013. |
Retirement_Plans
Retirement Plans | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Retirement Plans [Abstract] | ' | ||||||||||||||||
Retirement Plans | ' | ||||||||||||||||
10. Retirement Plans | |||||||||||||||||
The following table provides detail of the components of net periodic benefit cost of our German subsidiary's defined benefit pension plan for the three and nine months ended March 31, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | - | $ | 1 | $ | - | $ | 2 | |||||||||
Interest cost | 44 | 48 | 130 | 142 | |||||||||||||
Expected return on plan assets | (16 | ) | (19 | ) | (46 | ) | (55 | ) | |||||||||
Amortization of net loss | 4 | 2 | 14 | 6 | |||||||||||||
Net periodic benefit cost | $ | 32 | $ | 32 | $ | 98 | $ | 95 | |||||||||
We contributed $5,000 and $18,000 to our German subsidiary's defined benefit pension plan during the three and nine months ended March 31, 2014, respectively, and expect to make additional, similar, quarterly contributions during the remaining quarter of our fiscal year 2014. We contributed $9,000 and $26,000 to our German subsidiary's defined benefit plan during the three and nine months ended March 31, 2013, respectively. | |||||||||||||||||
We maintain a U.S. employee retirement savings plan that qualifies as a defined contribution plan under Section 401(k) of the Code. We matched 25% of the first 5% of the employee's annual salary invested by the employee in the 401(k) plan during fiscal year 2013. In August 2013, we increased our match to 50% of the first 5% of the employee's annual salary invested by the employee in the 401(k) plan. We contributed $104,000 and $284,000 in matching funds to the 401(k) plan during the three and nine months ended March 31, 2014, respectively. We contributed $54,000 and $136,000 in matching funds to the 401(k) plan during the three and nine months ended March 31, 2013, respectively. | |||||||||||||||||
We also maintain a defined contribution plan (the "Stakeholder Plan") for our U.K. based employees. For our U.K. based employees who contribute 4% or more of their salary to the Stakeholder Plan, we match 100% of employee contributions, up to 7% of their salary. We contributed $18,000 and $52,000 to the Stakeholder Plan during the three and nine months ended March 31, 2014, respectively. We contributed $15,000 and $44,000 to the Stakeholder Plan during the three and nine months ended March 31, 2013, respectively. |
Dividends
Dividends | 9 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Dividends [Abstract] | ' | ||||||||||
Dividends | ' | ||||||||||
11. Dividends | |||||||||||
During the nine months ended March 31, 2014, our Board of Directors approved three quarterly cash dividends. The following summarizes our dividend activity during the nine months ended March 31, 2014: | |||||||||||
Dividend | |||||||||||
Record Date | Payment Date | Type | Per Share | Total | |||||||
16-Sep-13 | 30-Sep-13 | Quarterly | $ | 0.12 | $ | 1,108,000 | |||||
13-Dec-13 | 27-Dec-13 | Quarterly | $ | 0.12 | $ | 1,111,000 | |||||
14-Mar-14 | 28-Mar-14 | Quarterly | $ | 0.12 | $ | 1,111,000 | |||||
As of March 31, 2014, we have $270,000 of dividends payable to holders of restricted common stock who held restricted shares at the time of dividend record dates and still hold those restricted shares as of March 31, 2014. Such dividends will be paid when the restrictions on a holder's restricted common shares lapse. This dividend payable is divided between current payable and non-current payable in the amounts of $85,000 and $185,000, respectively, based upon the expected vesting date of the underlying shares. These holders of restricted common stock will receive the dividend payments as long as they remain eligible at the vesting date of the shares. During the nine months ended March 31, 2014, $59,000 of dividends payable were returned to capital for restricted shares that were forfeited prior to meeting vesting requirements. Because the participants are not entitled to these dividends unless they complete the requisite performance criteria and service period for the shares to vest, they are not participating dividends as defined under ASC 260-10. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
12. Commitments and Contingencies | |||||
From time to time, we are involved in litigation incidental to the conduct of our business. We believe that such pending litigation will not have a material adverse effect on our results of operations or financial condition. | |||||
We enter into agreements in the ordinary course of business with customers that often require us to defend and/or indemnify the customer against intellectual property infringement claims brought by a third party with respect to our products. For example, we were notified that certain of our customers have settled with or been sued by the following companies, in the noted jurisdictions, regarding the listed patents: | |||||
Asserting Party | Jurisdiction | Patents at Issue | |||
Trans Video Electronics Ltd. | U.S. District Court of Delaware | U.S. Patents Nos. 5,594,936 and 5,991,801 | |||
LVL Patent Group | U.S. District Court of Delaware | U.S Patent No. 6,044,382 | |||
U.S. District Court Eastern District of Pennsylvania | U.S. Patent Nos. 6,754,907 and | ||||
Sprint Communications Company, L.P. | 6,757,907 | ||||
U.S. District Court Eastern District of Texas | U.S. Patent No. 5,877,755 | ||||
FutureVision.com LLC | |||||
We continue to review our potential obligations under our indemnification agreements with these customers. From time to time, we also indemnify customers and business partners for damages, losses and liabilities they may suffer or incur relating to personal injury, personal property damage, product liability, and environmental claims relating to the use of our products and services or resulting from our acts or omissions, our employees, authorized agents or subcontractors. We have not accrued any material liabilities related to such indemnifications in our financial statements and do not expect any other material costs as a result of such obligations. The maximum potential amount of future payments that we could be required to make is unlimited, and we are unable to estimate any possible loss or range of possible loss. | |||||
Pursuant to the terms of the employment agreements with our executive officers and certain other employees, employment may be terminated by either the respective executive officer or us at any time. In the event the employee voluntarily resigns (except as described below) or is terminated for cause, compensation under the employment agreement will end. In the event an agreement is terminated by us without cause or in certain circumstances constructively by us, the terminated employee will receive severance compensation for a period from 6 to 12 months, depending on the officer, in an annualized amount equal to the respective employee's base salary then in effect. In the event our CEO resigns within three months of a change in control or the CEO's agreement is terminated by us within one year of a change of control other than for due cause, disability or non-renewal by our CEO, our CEO will be entitled to severance compensation multiplied by two. Additionally, if terminated, our CEO and CFO may be entitled to bonuses during the severance period. At March 31, 2014, the maximum contingent liability under these and other executives' agreements is $3,010,000. Our employment agreements with certain of our employees contain certain offset provisions, as defined in their respective agreements. |
Overview_of_Business_and_Basis1
Overview of Business and Basis of Presentation (Policies) | 9 Months Ended |
Mar. 31, 2014 | |
Overview of Business and Basis of Presentation [Abstract] | ' |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Income Taxes | ' |
Income Taxes | |
As of June 30, 2013, we had U.S. federal net operating loss carryforwards of approximately $97,200,000 for income tax purposes which will expire at various dates through 2032. We completed an evaluation of the potential effect of Section 382 of the Internal Revenue Code of 1986 (the "Code") on our ability to utilize these net operating losses. The study concluded that we have not had an ownership change for the period from July 22, 1993 to June 30, 2013. | |
Realization of our deferred tax assets is dependent primarily on the generation of future taxable income. In considering the need for a valuation allowance we consider our historical, as well as, future projected operations along with other positive and negative evidence in assessing if sufficient future taxable income will be generated to use the existing deferred tax assets. The following summarizes our conclusions on the need for a valuation allowance in each jurisdiction as of March 31, 2014: | |
U.S.: As of March 31, 2014, we have realized a three-year cumulative accounting profit in the U.S. While the negative evidence of cumulative losses in recent years is not present at March 31, 2014, we believe that significant uncertainty continues to exist in our domestic operations as our recent improved financial performance in the U.S. has been for a limited time period. We also considered the fact that the three-year cumulative accounting profit included sales to a long time customer that we recently lost and a non-recurring gain from the sale of certain patents. We believe that our history of expired net operating losses, our inability to carryback any net operating losses or credits, a history of inconsistent earnings, and the absence of currently available tax strategies do not provide support for our ability to realize our deferred tax assets at the present time. We believe that it is more likely than not that the benefit from our domestic deferred tax assets will not be realized. In recognition of this risk, we have provided a full valuation allowance on the deferred tax assets relating to our domestic operations as of March 31, 2014. | |
The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income are increased or if a more sustained profitability is achieved and additional weight may be given to subjective evidence such as our projections for growth. If the positive and negative evidence being evaluated changes and we determine we will be able to realize these deferred tax assets, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets as of March 31, 2014 will be recognized as a reduction in income tax expense in the period of such reversal. | |
United Kingdom ("U.K."): During the first half of our fiscal year 2014, a change in U.K. tax law relative to treatment of research and development expenses allowed us to release $173,000 of valuation allowances against deferred tax assets that we believe are now realizable as a result of the current period tax law change. We believe that in light of this law change, we will now generate sufficient taxable income to fully utilize our net deferred tax assets in the U.K. | |
Japan: Our subsidiary in Japan has a long history of profitable operations, and we continue to project profitability in Japan for the foreseeable future. Therefore, we continue to believe that we will fully realize the net deferred tax assets in Japan, and no valuation allowance is needed. | |
Other Foreign Jurisdictions: We also evaluated the need for a continued full valuation allowance against our foreign deferred tax assets in other jurisdictions. We concluded that a full valuation allowance against our deferred tax assets for other foreign jurisdictions was warranted due to, among other reasons, (i) the realized cumulative accounting losses, (ii) our long history of taxable losses, and (iii) our uncertainty with respect to generating future taxable income in the near term given our recently completed projections and other inherent uncertainties in our business. | |
Each quarter, we assess the total weight of positive and negative evidence and evaluate whether release of all or any portion of the valuation allowance is appropriate. Should we come to the conclusion that a release of our valuation allowances is required, there would be a significant increase in net income and earnings per share due to the impact on the tax rate. | |
We recorded $140,000 and $160,000 of income tax provision during the three and nine months ended March 31, 2014, respectively. Our taxable income is primarily due to taxable income earned by our Japan subsidiary and an expected alternative minimum tax liability in the U.S., both of which were partially offset by the aforementioned release of valuation allowances against deferred tax assets in the U.K. We recorded $67,000 and $180,000 of income tax provision during the three and nine months ended March 31, 2013, respectively, primarily due to alternative minimum tax in the United States and taxable income earned by our Japan subsidiary. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
Adopted | |
In February 2013, the FASB issued ASU No. 2013-2, Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, providing on disclosure requirements for items reclassified out of accumulated other comprehensive income ("AOCI"). This new guidance requires entities to present (either on the face of the income statement or in the notes) the effects on the line items of the income statement for amounts reclassified out of AOCI. The new guidance was effective for us beginning July 1, 2013 and did not have a material impact on our financial statements. | |
To Be Adopted | |
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830) which provides guidance on a parent company's accounting for the cumulative translation adjustment upon derecognition of a subsidiary or group of assets within a foreign entity. This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The new guidance will be effective for us beginning July 1, 2014. We do not anticipate any material impact on our financial statements upon adoption. | |
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This amendment requires entities to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward or a similar tax loss or a tax credit carryforward, unless certain conditions exist. This guidance is effective prospectively for annual reporting periods (and the interim periods within) beginning after December 15, 2013. Early adoption and retrospective application are permitted. We will adopt this guidance effective July 1, 2014. We expect adoption will not have a material impact on our financial condition, results of operations, or cash flows. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Revenue Recognition Policy | ' | ||||||||||||||||
Revenue Recognition Policy | |||||||||||||||||
We generate revenue from the sale of products and services. We commence revenue recognition when all of the following conditions are met: | |||||||||||||||||
| persuasive evidence of an arrangement exists, | ||||||||||||||||
| the system has been delivered or the services have been performed, | ||||||||||||||||
| the fee is fixed or determinable, and | ||||||||||||||||
| collectability of the fee is probable. | ||||||||||||||||
Our standard multiple-element contractual arrangements with our customers generally include the delivery of systems with multiple components of hardware and software, certain professional services that typically involve installation and consulting, and ongoing software and hardware maintenance. Product revenue is generally recognized when the product is delivered. Professional services that are of a consultative nature may take place before, or after, delivery of the system, and installation services typically occur within 90 days after delivery of the system. Professional services revenue is typically recognized as the services are performed. Initial maintenance begins after delivery of the system and typically is provided for one to three years after delivery. Maintenance revenue is recognized ratably over the maintenance period. Our product sales are predominantly system sales whereby software and hardware function together to deliver the essential functionality of the combined product. Upon our adoption of ASU 2009-14 on July 1, 2010, sales of these systems were determined to typically be outside of the scope of the software revenue guidance in Topic 985 (previously included in SOP 97-2) and are accounted for under ASU 2009-13. | |||||||||||||||||
Our sales model for media data intelligence ("MDI") products includes the option for customers to purchase: (1) a perpetual license with maintenance; (2) a term license with maintenance and managed services; (3) software as a service; or (4) perpetual license with maintenance and managed services. Revenue from these sales generally is recognized over the term of the various customer arrangements. Professional services attributable to implementation of our MDI products or managed services are essential to the customers' use of these products and services. We defer commencement of revenue recognition for the entire arrangement until we have delivered the essential professional services or have made a determination that the remaining professional services are no longer essential to the customer. We recognize revenue for managed services and software-as-a-service arrangements once we commence providing the managed or software services and recognize the service revenue ratably over the term of the various customer contracts. In circumstances whereby we sell a term or perpetual license and managed services, we commence revenue recognition after both the software and service are made available to the customer and recognize the revenue from the entire arrangement ratably over the longer of the term license or managed service period, because we believe the managed services to be essential to the functionality of the term or perpetual license. | |||||||||||||||||
We evaluate each element in a multiple-element arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within our control. Our various systems have standalone value because we have either routinely sold them on a standalone basis or we believe that our customers could resell the delivered system on a standalone basis. Professional services have standalone value because we have routinely sold them on a standalone basis, there are similar third party vendors that routinely provide similar professional services, and certain customers perform the installation themselves. Our maintenance has standalone value because we have routinely sold maintenance separately. | |||||||||||||||||
As a result of the adoption of ASU 2009-13, we allocate revenue to each element in an arrangement based on a selling price hierarchy. The selling price for a deliverable is based on its vendor specific objective evidence ("VSOE"), if available, third party evidence ("TPE"), if VSOE is not available, or estimated selling price ("ESP"), if neither VSOE nor TPE is available. We have typically been able to establish VSOE of fair value for our maintenance and services. We determine VSOE of fair value for professional services and maintenance by examining the population of selling prices for the same or similar services when sold separately, and determining that the pricing population for each VSOE classification is within a very narrow range of the median selling price. For each element, we evaluate at least annually whether or not we have maintained VSOE of fair value based on our review of the actual selling price of each element over the previous 12 month period. | |||||||||||||||||
Our product deliverables are typically complete systems comprised of numerous hardware and software components that operate together to provide essential functionality, and we are typically unable to establish VSOE or TPE of fair value for our products. Due to the custom nature of our products, we must determine ESP at the individual component level whereby our ESP for the total system is determined based on the sum of the individual components. ESP for components of our real-time products is typically based upon list price, which is representative of our actual selling price. ESP for components of our video products is based upon our most frequent selling price ("mode") of standalone and bundled sales, based upon a 12 month historical analysis. If a mode selling price is not available, then ESP will be the median selling price of all such component sales based upon a 12 month historical analysis, unless facts and circumstances indicate that another selling price, other than the mode or median selling price, is more representative of our ESP. Our methodology for determining ESP requires judgment, and any changes to pricing practices, the costs incurred to integrate products, the nature of our relationships with our customers, and market trends could cause variability in our ESP or cause us to re-evaluate our methodology for determining ESP. We will update our analysis of mode and median selling price at least annually, unless facts and circumstances indicate that more frequent analysis is required. | |||||||||||||||||
Occasionally, we sell software under multiple element arrangements that do not include hardware. Under these software arrangements, we allocate revenue to the various elements based on VSOE of fair value. Our VSOE of fair value is determined based on the price charged when the same element is sold separately. If VSOE of fair value does not exist for all elements in a multiple element arrangement, but does exist for undelivered elements, we recognize revenue using the residual method. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement is recognized as revenue. Where fair value of undelivered elements has not been established, the total arrangement is recognized over the period during which the services are performed. | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The FASB Accounting Standards Codification ("ASC") requires certain disclosures around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which are determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are: | |||||||||||||||||
● | Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities; | |||||||||||||||
● | Level 2 | Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and | |||||||||||||||
● | Level 3 | Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which result in the use of management estimates. | |||||||||||||||
We have money market funds that are highly liquid and have a maturity of three months or less, and as such are considered cash equivalents. | |||||||||||||||||
Our financial assets that are measured at fair value on a recurring basis as of March 31, 2014 are as follows (in thousands): | |||||||||||||||||
As of | Quoted Prices in | Observable | Unobservable | ||||||||||||||
31-Mar-14 | Active Markets | Inputs | Inputs | ||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Cash | $ | 12,416 | $ | 12,416 | $ | - | $ | - | |||||||||
Money market funds | 10,036 | 10,036 | - | - | |||||||||||||
Cash and cash equivalents | $ | 22,452 | $ | 22,452 | $ | - | $ | - | |||||||||
Our financial assets that are measured at fair value on a recurring basis as of June 30, 2013 are as follows (in thousands): | |||||||||||||||||
As of | Quoted Prices in | Observable | Unobservable | ||||||||||||||
30-Jun-13 | Active Markets | Inputs | Inputs | ||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Cash | $ | 17,895 | $ | 17,895 | $ | - | $ | - | |||||||||
Money market funds | 10,032 | 10,032 | - | - | |||||||||||||
Cash and cash equivalents | $ | 27,927 | $ | 27,927 | $ | - | $ | - | |||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Financial assets measured on recurring basis | ' | ||||||||||||||||
Our financial assets that are measured at fair value on a recurring basis as of March 31, 2014 are as follows (in thousands): | |||||||||||||||||
As of | Quoted Prices in | Observable | Unobservable | ||||||||||||||
31-Mar-14 | Active Markets | Inputs | Inputs | ||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Cash | $ | 12,416 | $ | 12,416 | $ | - | $ | - | |||||||||
Money market funds | 10,036 | 10,036 | - | - | |||||||||||||
Cash and cash equivalents | $ | 22,452 | $ | 22,452 | $ | - | $ | - | |||||||||
Our financial assets that are measured at fair value on a recurring basis as of June 30, 2013 are as follows (in thousands): | |||||||||||||||||
As of | Quoted Prices in | Observable | Unobservable | ||||||||||||||
30-Jun-13 | Active Markets | Inputs | Inputs | ||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Cash | $ | 17,895 | $ | 17,895 | $ | - | $ | - | |||||||||
Money market funds | 10,032 | 10,032 | - | - | |||||||||||||
Cash and cash equivalents | $ | 27,927 | $ | 27,927 | $ | - | $ | - |
Basic_and_Diluted_Net_Income_p1
Basic and Diluted Net Income per Share (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Basic and Diluted Net Income per Share [Abstract] | ' | ||||||||||||||||
Reconciliation of numerators and denominators of basic and diluted net loss per share | ' | ||||||||||||||||
The following table presents a reconciliation of the numerators and denominators of basic and diluted net income per share for the periods indicated (dollars and share data in thousands, except per-share amounts): | |||||||||||||||||
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Basic and diluted earnings per share (EPS) calculation: | |||||||||||||||||
Net income | $ | 1,082 | $ | 937 | $ | 2,905 | $ | 1,935 | |||||||||
Basic weighted average number of shares outstanding | 8,944 | 8,754 | 8,897 | 8,726 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Restricted stock | 129 | 133 | 164 | 147 | |||||||||||||
Stock options | 17 | 7 | 13 | - | |||||||||||||
Diluted weighted average number of shares outstanding | 9,090 | 8,894 | 9,074 | 8,873 | |||||||||||||
Basic EPS | $ | 0.12 | $ | 0.11 | $ | 0.33 | $ | 0.22 | |||||||||
Diluted EPS | $ | 0.12 | $ | 0.11 | $ | 0.32 | $ | 0.22 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Share-Based Compensation [Abstract] | ' | ||||||||||||||||
Summary of share based compensation expense allocation | ' | ||||||||||||||||
We recorded share-based compensation related to the issuance of stock options and restricted stock to employees and board members as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Share-based compensation expense | |||||||||||||||||
included in the Statements of Operations: | |||||||||||||||||
Cost of sales | $ | 15 | $ | 14 | $ | 43 | $ | 41 | |||||||||
Sales and marketing | 43 | 48 | 133 | 116 | |||||||||||||
Research and development | 42 | 37 | 118 | 90 | |||||||||||||
General and administrative | 154 | 125 | 589 | 346 | |||||||||||||
Total | 254 | 224 | 883 | 593 | |||||||||||||
Tax benefit | - | - | - | - | |||||||||||||
Share-based compensation expense, net of taxes | $ | 254 | $ | 224 | $ | 883 | $ | 593 |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Components of inventories | ' | ||||||||
The components of inventories are as follows (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 1,256 | $ | 1,091 | |||||
Work-in-process | 328 | 298 | |||||||
Finished goods | 2,025 | 1,455 | |||||||
Total inventory | $ | 3,609 | $ | 2,844 |
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Other Intangible Assets [Abstract] | ' | ||||||||
Schedule of intangible assets | ' | ||||||||
Intangible assets consist of the following (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Cost of amortizable intangibles: | |||||||||
Purchased technology | $ | 7,700 | $ | 7,700 | |||||
Customer relationships | 1,900 | 1,900 | |||||||
Patents | 93 | 78 | |||||||
Total cost of intangibles | 9,693 | 9,678 | |||||||
Less accumulated amortization: | |||||||||
Purchased technology | (7,700 | ) | (7,497 | ) | |||||
Customer relationships | (1,463 | ) | (1,334 | ) | |||||
Patents | (18 | ) | (13 | ) | |||||
Total accumulated amortization | (9,181 | ) | (8,844 | ) | |||||
Total intangible assets, net | $ | 512 | $ | 834 |
Accounts_Payable_and_Accrued_E1
Accounts Payable and Accrued Expenses (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounts Payable and Accrued Expenses [Abstract] | ' | ||||||||
Components of accounts payable and accrued expenses | ' | ||||||||
The components of accounts payable and accrued expenses are as follows (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
Accounts payable, trade | $ | 4,400 | $ | 2,075 | |||||
Accrued payroll, vacation, severance | |||||||||
and other employee expenses | 3,431 | 4,298 | |||||||
Accrued income taxes | 99 | 130 | |||||||
Dividend payable | 85 | 94 | |||||||
Other accrued expenses | 1,259 | 1,074 | |||||||
Total accounts payable and accrued expenses | $ | 9,274 | $ | 7,671 |
Concentration_of_Credit_Risk_S1
Concentration of Credit Risk, Segment, and Geographic Information (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Concentration of Credit Risk, Segment, and Geographic Information [Abstract] | ' | ||||||||||||||||
Summary of revenues by geographic area | ' | ||||||||||||||||
A summary of our revenues by geographic area is as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
United States | $ | 11,647 | $ | 9,239 | $ | 33,392 | $ | 29,431 | |||||||||
Canada | 457 | 3,018 | 2,715 | 5,062 | |||||||||||||
Total North America | 12,104 | 12,257 | 36,107 | 34,493 | |||||||||||||
Japan | 2,517 | 2,266 | 7,970 | 8,899 | |||||||||||||
Other Asia Pacific countries | 365 | 996 | 2,557 | 1,663 | |||||||||||||
Total Asia Pacific | 2,882 | 3,262 | 10,527 | 10,562 | |||||||||||||
Europe | 3,183 | 1,408 | 6,570 | 3,461 | |||||||||||||
Other | 109 | - | 109 | 4 | |||||||||||||
Total revenue | $ | 18,278 | $ | 16,927 | $ | 53,313 | $ | 48,520 | |||||||||
Summary of revenues by significant customers | ' | ||||||||||||||||
In addition, the following summarizes revenues by significant customer where such revenue accounted for 10% or more of total revenues for any one of the indicated periods: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Customer A | 25% | <10% | 14% | 12% | |||||||||||||
Customer B | <10% | 13% | 15% | 13% | |||||||||||||
Customer C | <10% | 11% | <10% | <10% | |||||||||||||
Summary of significant accounts receivable | ' | ||||||||||||||||
The following summarizes accounts receivable by significant customers for whom accounts receivable were 10% or more of total accounts receivables for any one of the indicated periods: | |||||||||||||||||
March 31, | June 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Customer A | 23% | <10% | |||||||||||||||
Customer D | 11% | <10% | |||||||||||||||
Customer B | <10% | 19% | |||||||||||||||
Summary of purchases by significant vendor | ' | ||||||||||||||||
The following summarizes purchases from significant vendors where such purchases accounted for 10% or more of total purchases for any one of the indicated periods: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Vendor A | 37% | 37% | 25% | 26% | |||||||||||||
Vendor B | 15% | 16% | 19% | 14% | |||||||||||||
Vendor C | 11% | <10% | 14% | <10% |
Retirement_Plans_Tables
Retirement Plans (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Retirement Plans [Abstract] | ' | ||||||||||||||||
Components of net periodic benefit cost | ' | ||||||||||||||||
The following table provides detail of the components of net periodic benefit cost of our German subsidiary's defined benefit pension plan for the three and nine months ended March 31, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | - | $ | 1 | $ | - | $ | 2 | |||||||||
Interest cost | 44 | 48 | 130 | 142 | |||||||||||||
Expected return on plan assets | (16 | ) | (19 | ) | (46 | ) | (55 | ) | |||||||||
Amortization of net loss | 4 | 2 | 14 | 6 | |||||||||||||
Net periodic benefit cost | $ | 32 | $ | 32 | $ | 98 | $ | 95 |
Dividends_Tables
Dividends (Tables) | 9 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Dividends [Abstract] | ' | ||||||||||
Summary of dividend activity | ' | ||||||||||
The following summarizes our dividend activity during the nine months ended March 31, 2014: | |||||||||||
Dividend | |||||||||||
Record Date | Payment Date | Type | Per Share | Total | |||||||
16-Sep-13 | 30-Sep-13 | Quarterly | $ | 0.12 | $ | 1,108,000 | |||||
13-Dec-13 | 27-Dec-13 | Quarterly | $ | 0.12 | $ | 1,111,000 | |||||
14-Mar-14 | 28-Mar-14 | Quarterly | $ | 0.12 | $ | 1,111,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Patent Infringement Claims | ' | ||||
For example, we were notified that certain of our customers have settled with or been sued by the following companies, in the noted jurisdictions, regarding the listed patents: | |||||
Asserting Party | Jurisdiction | Patents at Issue | |||
Trans Video Electronics Ltd. | U.S. District Court of Delaware | U.S. Patents Nos. 5,594,936 and 5,991,801 | |||
LVL Patent Group | U.S. District Court of Delaware | U.S Patent No. 6,044,382 | |||
U.S. District Court Eastern District of Pennsylvania | U.S. Patent Nos. 6,754,907 and | ||||
Sprint Communications Company, L.P. | 6,757,907 | ||||
U.S. District Court Eastern District of Texas | U.S. Patent No. 5,877,755 | ||||
FutureVision.com LLC |
Overview_of_Business_and_Basis2
Overview of Business and Basis of Presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | |
Segment | |||||
Overview of Business and Basis of Presentation [Abstract] | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 2 | ' | ' |
Operating loss carryforwards | ' | ' | ' | ' | $97,200,000 |
Net operating loss carryforwards expiration year | ' | ' | 31-Dec-32 | ' | ' |
Valuation allowances against deferred tax assets | 173,000 | ' | 173,000 | ' | ' |
Income tax provision | $140,000 | $67,000 | $160,000 | $180,000 | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2012 |
Summary of Significant Accounting Policies [Abstract] | ' | ' | ' | ' |
Number of days in delivery period following sale of system | '90 days | ' | ' | ' |
Fair Value By Asset Class [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $22,452 | $27,927 | $22,370 | $29,613 |
Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' |
Fair Value By Asset Class [Line Items] | ' | ' | ' | ' |
Cash | 12,416 | 17,895 | ' | ' |
Money market funds | 10,036 | 10,032 | ' | ' |
Cash and cash equivalents | 22,452 | 27,927 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ' | ' | ' | ' |
Fair Value By Asset Class [Line Items] | ' | ' | ' | ' |
Cash | 12,416 | 17,895 | ' | ' |
Money market funds | 10,036 | 10,032 | ' | ' |
Cash and cash equivalents | 22,452 | 27,927 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Observable (Level 2) [Member] | ' | ' | ' | ' |
Fair Value By Asset Class [Line Items] | ' | ' | ' | ' |
Cash | 0 | 0 | ' | ' |
Money market funds | 0 | 0 | ' | ' |
Cash and cash equivalents | 0 | 0 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Unobservable Inputs (Level 3) [Member] | ' | ' | ' | ' |
Fair Value By Asset Class [Line Items] | ' | ' | ' | ' |
Cash | 0 | 0 | ' | ' |
Money market funds | 0 | 0 | ' | ' |
Cash and cash equivalents | $0 | $0 | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Maintenance Period | '1 year | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Maintenance Period | '3 years | ' | ' | ' |
Basic_and_Diluted_Net_Income_p2
Basic and Diluted Net Income per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Basic and Diluted Net Income per Share [Abstract] | ' | ' | ' | ' |
Antidilutive securities excluded from earnings per share (in shares) | 106 | 182 | 112 | 251 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Net income | $1,082 | $937 | $2,905 | $1,935 |
Basic weighted average number of shares outstanding (in shares) | 8,944 | 8,754 | 8,897 | 8,726 |
Diluted weighted average number of shares outstanding (in shares) | 9,090 | 8,894 | 9,074 | 8,873 |
Basic EPS (in dollars per share) | $0.12 | $0.11 | $0.33 | $0.22 |
Diluted EPS (in dollars per share) | $0.12 | $0.11 | $0.32 | $0.22 |
Restricted Stock [Member] | ' | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Effect of dilutive securities (in shares) | 129 | 133 | 164 | 147 |
Stock Options [Member] | ' | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Effect of dilutive securities (in shares) | 17 | 7 | 13 | 0 |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2014 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Options outstanding (in shares) | 184,517 | 184,517 |
Options Granted, Shares (in shares) | 0 | 0 |
Exercised Shares (in shares) | 0 | 0 |
Restricted Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Restricted shares outstanding (in shares) | 318,371 | 318,371 |
Vested, Shares (in shares) | 0 | ' |
Granted, Shares (in shares) | 0 | ' |
Cancelled, Shares (in shares) | 0 | ' |
ShareBased_Compensation_Summar
Share-Based Compensation Summary Of Share Based Compensation Expense Allocation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $254 | $224 | $883 | $593 |
Tax benefit | 0 | 0 | 0 | 0 |
Share-based compensation expense, net of taxes | 254 | 224 | 883 | 593 |
Cost of Sales [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 15 | 14 | 43 | 41 |
Sales and Marketing [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 43 | 48 | 133 | 116 |
Research and Development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 42 | 37 | 118 | 90 |
General and Administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $154 | $125 | $589 | $346 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials | $1,256 | $1,091 |
Work-in-process | 328 | 298 |
Finished goods | 2,025 | 1,455 |
Total inventory | $3,609 | $2,844 |
Other_Intangible_Assets_Detail
Other Intangible Assets (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Total cost of intangibles | $9,693 | ' | $9,678 |
Total accumulated amortization | -9,181 | ' | -8,844 |
Total intangible assets, net | 512 | ' | 834 |
Amortization expense | 337 | 678 | ' |
Purchased Technology [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Total cost of intangibles | 7,700 | ' | 7,700 |
Total accumulated amortization | -7,700 | ' | -7,497 |
Customer Relationships [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Total cost of intangibles | 1,900 | ' | 1,900 |
Total accumulated amortization | -1,463 | ' | -1,334 |
Patents [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Total cost of intangibles | 93 | ' | 78 |
Total accumulated amortization | ($18) | ' | ($13) |
Accounts_Payable_and_Accrued_E2
Accounts Payable and Accrued Expenses (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Accounts Payable and Accrued Expenses [Abstract] | ' | ' |
Accounts payable, trade | $4,400,000 | $2,075,000 |
Accrued payroll, vacation, severance and other employee expenses | 3,431,000 | 4,298,000 |
Accrued income taxes | 99,000 | 130,000 |
Dividends payable | 85,000 | 94,000 |
Other accrued expenses | 1,259,000 | 1,074,000 |
Total accounts payable and accrued expenses | $9,274,000 | $7,671,000 |
Concentration_of_Credit_Risk_S2
Concentration of Credit Risk, Segment, and Geographic Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Segment | Customer A [Member] | Customer A [Member] | Customer A [Member] | Customer A [Member] | Customer B [Member] | Customer B [Member] | Customer B [Member] | Customer B [Member] | Customer C [Member] | Customer C [Member] | Customer C [Member] | Customer C [Member] | United States [Member] | United States [Member] | United States [Member] | United States [Member] | Canada [Member] | Canada [Member] | Canada [Member] | Canada [Member] | Total North America [Member] | Total North America [Member] | Total North America [Member] | Total North America [Member] | Japan [Member] | Japan [Member] | Japan [Member] | Japan [Member] | Other Asia Pacific Countries [Member] | Other Asia Pacific Countries [Member] | Other Asia Pacific Countries [Member] | Other Asia Pacific Countries [Member] | Total Asia Pacific [Member] | Total Asia Pacific [Member] | Total Asia Pacific [Member] | Total Asia Pacific [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Europe [Member] | Other [Member] | Other [Member] | Other [Member] | Other [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Cost of Goods, Total [Member] | Cost of Goods, Total [Member] | Cost of Goods, Total [Member] | Cost of Goods, Total [Member] | Cost of Goods, Total [Member] | Cost of Goods, Total [Member] | Cost of Goods, Total [Member] | Cost of Goods, Total [Member] | Cost of Goods, Total [Member] | Cost of Goods, Total [Member] | Cost of Goods, Total [Member] | Cost of Goods, Total [Member] | ||||
Customer A [Member] | Customer A [Member] | Customer B [Member] | Customer B [Member] | Customer D [Member] | Customer D [Member] | Vendor A [Member] | Vendor A [Member] | Vendor A [Member] | Vendor A [Member] | Vendor B [Member] | Vendor B [Member] | Vendor B [Member] | Vendor B [Member] | Vendor C [Member] | Vendor C [Member] | Vendor C [Member] | Vendor C [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
Concentration of Credit Risk, Segment, and Geographic Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $18,278 | $16,927 | $53,313 | $48,520 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11,647 | $9,239 | $33,392 | $29,431 | $457 | $3,018 | $2,715 | $5,062 | $12,104 | $12,257 | $36,107 | $34,493 | $2,517 | $2,266 | $7,970 | $8,899 | $365 | $996 | $2,557 | $1,663 | $2,882 | $3,262 | $10,527 | $10,562 | $3,183 | $1,408 | $6,570 | $3,461 | $109 | $0 | $109 | $4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk (in hundredths) | ' | ' | ' | ' | 25.00% | 10.00% | 14.00% | 12.00% | 10.00% | 13.00% | 15.00% | 13.00% | 10.00% | 11.00% | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23.00% | 10.00% | 10.00% | 19.00% | 11.00% | 10.00% | 37.00% | 37.00% | 25.00% | 26.00% | 15.00% | 16.00% | 19.00% | 14.00% | 11.00% | 10.00% | 14.00% | 10.00% |
Revolving_Credit_Facility_Deta
Revolving Credit Facility (Details) | 9 Months Ended |
Mar. 31, 2014 | |
Revolving Credit Facility [Abstract] | ' |
Period within which no amount drawn against credit line | '3 years |
Line of credit facility, expiration date | 31-Dec-13 |
Retirement_Plans_Details
Retirement Plans (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Aug. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | |
Retirement Plans [Abstract] | ' | ' | ' | ' | ' | ' |
Service cost | ' | $0 | $1,000 | $0 | $2,000 | ' |
Interest cost | ' | 44,000 | 48,000 | 130,000 | 142,000 | ' |
Expected return on plan assets | ' | -16,000 | -19,000 | -46,000 | -55,000 | ' |
Amortization of net loss | ' | 4,000 | 2,000 | 14,000 | 6,000 | ' |
Net periodic benefit cost | ' | 32,000 | 32,000 | 98,000 | 95,000 | ' |
German Subsidiary Defined Benefit Plan [Member] | ' | ' | ' | ' | ' | ' |
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | ' | ' | ' | ' | ' | ' |
Employer contributions | ' | 5,000 | 9,000 | 18,000 | 26,000 | ' |
United States Defined Contribution Plan [Member] | ' | ' | ' | ' | ' | ' |
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | ' | ' | ' | ' | ' | ' |
Employer contributions | ' | 104,000 | 54,000 | 284,000 | 136,000 | ' |
Employer matching contribution (in hundredths) | 50.00% | ' | ' | ' | ' | 25.00% |
Employee contribution subject to employer match (in hundredths) | 5.00% | ' | ' | ' | ' | 5.00% |
United Kingdom Defined Contribution Plan [Member] | ' | ' | ' | ' | ' | ' |
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | ' | ' | ' | ' | ' | ' |
Employer contributions | ' | $18,000 | $15,000 | $52,000 | $44,000 | ' |
Employee contribution subject to employer match (in hundredths) | ' | ' | ' | 100.00% | ' | ' |
Minimum [Member] | United Kingdom Defined Contribution Plan [Member] | ' | ' | ' | ' | ' | ' |
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | ' | ' | ' | ' | ' | ' |
Employer matching contribution (in hundredths) | ' | ' | ' | 4.00% | ' | ' |
Maximum [Member] | United Kingdom Defined Contribution Plan [Member] | ' | ' | ' | ' | ' | ' |
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | ' | ' | ' | ' | ' | ' |
Employer matching contribution (in hundredths) | ' | ' | ' | 7.00% | ' | ' |
Dividends_Details
Dividends (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | |
Dividend | |||||
Dividends Payable [Line Items] | ' | ' | ' | ' | ' |
Number of dividends approved | ' | ' | 3 | ' | ' |
Dividends Payable | $270,000 | ' | $270,000 | ' | ' |
Current dividends payable | 85,000 | ' | 85,000 | ' | 94,000 |
Noncurrent dividends payable | 185,000 | ' | 185,000 | ' | ' |
Dividends forfeited with restricted stock forfeitures | ' | ' | 59,000 | ' | ' |
Dividend Per Share (in dollars per share) | $0.12 | $0.06 | $0.36 | $0.74 | ' |
September 16, 2013 [Member] | ' | ' | ' | ' | ' |
Dividends Payable [Line Items] | ' | ' | ' | ' | ' |
Record Date | ' | ' | 16-Sep-13 | ' | ' |
Payment Date | ' | ' | 30-Sep-13 | ' | ' |
Type | ' | ' | 'Quarterly | ' | ' |
Dividend Per Share (in dollars per share) | ' | ' | $0.12 | ' | ' |
Dividends | ' | ' | 1,108,000 | ' | ' |
December 13, 2013 [Member] | ' | ' | ' | ' | ' |
Dividends Payable [Line Items] | ' | ' | ' | ' | ' |
Record Date | ' | ' | 13-Dec-13 | ' | ' |
Payment Date | ' | ' | 27-Dec-13 | ' | ' |
Type | ' | ' | 'Quarterly | ' | ' |
Dividend Per Share (in dollars per share) | ' | ' | $0.12 | ' | ' |
Dividends | ' | ' | 1,111,000 | ' | ' |
March 14, 2014 [Member] | ' | ' | ' | ' | ' |
Dividends Payable [Line Items] | ' | ' | ' | ' | ' |
Record Date | ' | ' | 14-Mar-14 | ' | ' |
Payment Date | ' | ' | 28-Mar-14 | ' | ' |
Type | ' | ' | 'Quarterly | ' | ' |
Dividend Per Share (in dollars per share) | ' | ' | $0.12 | ' | ' |
Dividends | ' | ' | $1,111,000 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 9 Months Ended |
Mar. 31, 2014 | |
Loss Contingencies [Line Items] | ' |
Contingent liability under employment contract agreements | 3,010,000 |
Minimum [Member] | ' |
Loss Contingencies [Line Items] | ' |
Terminated employees severance compensation payment period | '6 months |
Maximum [Member] | ' |
Loss Contingencies [Line Items] | ' |
Terminated employees severance compensation payment period | '12 months |
Term of termination CEO resigns within period of a change of control | '3 months |
Term of termination, CEO is terminated by company within period of a change of control | '1 year |
Commitments_and_Contingencies_2
Commitments and Contingencies, Litigation (Details) | 9 Months Ended |
Mar. 31, 2014 | |
Trans Video Electronics Ltd. [Member] | ' |
Loss Contingencies [Line Items] | ' |
Asserting Party | 'Trans Video Electronics Ltd. |
Jurisdiction | 'U.S. District Court of Delaware |
Patents at Issue | 'U.S. Patents Nos. 5,594,936 and 5,991,801 |
LVL Patent Group [Member] | ' |
Loss Contingencies [Line Items] | ' |
Asserting Party | 'LVL Patent Group |
Jurisdiction | 'U.S. District Court of Delaware |
Patents at Issue | 'U.S Patent No. 6,044,382 |
Sprint Communications Company, L.P. [Member] | ' |
Loss Contingencies [Line Items] | ' |
Asserting Party | 'Sprint Communications Company, L.P. |
Jurisdiction | 'U.S. District Court Eastern District of Pennsylvania |
Patents at Issue | 'U.S. Patent Nos. 6,754,907 and 6757907 |
FutureVision.com LLC [Member] | ' |
Loss Contingencies [Line Items] | ' |
Asserting Party | 'FutureVision.com LLC |
Jurisdiction | 'U.S. District Court Eastern District of Texas |
Patents at Issue | 'U.S. Patent No. 5,877,755 |