Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Mar. 31, 2015 | Apr. 27, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | LSI Industries Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -24 | |
Entity Common Stock, Shares Outstanding | 24,238,684 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 763532 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | ||||
Net sales | $68,603,000 | [1] | $68,996,000 | [1] | $231,784,000 | [1] | $225,605,000 | [1] |
Cost of products and services sold | 52,298,000 | 55,281,000 | 176,316,000 | 176,011,000 | ||||
Gross profit | 16,305,000 | 13,715,000 | 55,468,000 | 49,594,000 | ||||
Loss on sale of subsidiary (see Note 13) | 565,000 | |||||||
Selling and administrative expenses | 15,723,000 | 14,661,000 | 49,906,000 | 46,190,000 | ||||
Operating income (loss) | 582,000 | -946,000 | 5,340,000 | 3,404,000 | ||||
Interest (income) | -8,000 | -2,000 | -17,000 | -16,000 | ||||
Interest expense | 11,000 | 19,000 | 34,000 | 57,000 | ||||
Income (loss) before income taxes | 579,000 | -963,000 | 5,323,000 | 3,363,000 | ||||
Income tax expense | 186,000 | 46,000 | 1,815,000 | 1,637,000 | ||||
Net income (loss) | 393,000 | -1,009,000 | 3,508,000 | 1,726,000 | ||||
Earnings (loss) per common share (see Note 4) | ||||||||
Basic (in Dollars per share) | $0.02 | ($0.04) | $0.14 | $0.07 | ||||
Diluted (in Dollars per share) | $0.02 | ($0.04) | $0.14 | $0.07 | ||||
Weighted average common shares outstanding | ||||||||
Basic (in Shares) | 24,528 | 24,401 | 24,470 | 24,376 | ||||
Diluted (in Shares) | 24,643 | [2] | 24,401 | [2] | 24,550 | [2] | 24,545 | [2] |
Building [Member] | ||||||||
Gain on sale of building | ($343,000) | |||||||
[1] | Net sales are attributed to geographic areas based upon the location of the operation making the sale. | |||||||
[2] | Options to purchase 1,729,273 common shares and 1,235,650 common shares at March 31, 2015 and 2014, respectively, and options to purchase 2,272,823 common shares and 1,687,650 common shares at March 31, 2015 and 2014, respectively, were not included in the computation of the three month and nine month periods for diluted earnings per share, respectively, because the exercise price was greater than the average fair market value of the common shares. |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $27,966 | $9,013 |
Accounts receivable, less allowance for doubtful accounts of $438 and $294, respectively | 35,403 | 42,753 |
Inventories | 42,583 | 45,408 |
Refundable income taxes | 29 | 1,973 |
Asset held for sale | 611 | |
Other current assets | 6,282 | 6,319 |
Total current assets | 112,263 | 106,077 |
Property, Plant and Equipment, at cost | ||
Land | 6,952 | 6,918 |
Buildings | 37,613 | 37,027 |
Machinery and equipment | 76,300 | 75,533 |
Construction in progress | 611 | 221 |
121,476 | 119,699 | |
Less accumulated depreciation | -78,091 | -75,417 |
Net property, plant and equipment | 43,385 | 44,282 |
Goodwill | 10,508 | 10,508 |
Other Intangible Assets, net | 6,219 | 7,227 |
Other Long-Term Assets, net | 1,823 | 1,794 |
Total assets | 174,198 | 169,888 |
Current Liabilities | ||
Accounts payable | 11,900 | 13,658 |
Accrued expenses | 19,270 | 15,631 |
Total current liabilities | 31,170 | 29,289 |
Other Long-Term Liabilities | 1,592 | 2,187 |
Commitments and Contingencies (Note 12) | ||
Shareholders’ Equity | ||
Preferred shares, without par value; Authorized 1,000,000 shares, none issued | 0 | 0 |
Common shares, without par value; Authorized 40,000,000 shares; Outstanding 24,232,699 and 24,122,284 shares, respectively | 105,752 | 104,064 |
Retained earnings | 35,684 | 34,348 |
Total shareholders’ equity | 141,436 | 138,412 |
Total liabilities & shareholders’ equity | $174,198 | $169,888 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts (in Dollars) | $438 | $294 |
Preferred shares, par value (in Dollars per share) | $0 | $0 |
Preferred shares, Authorized shares | 1,000,000 | 1,000,000 |
Preferred shares, issued | 0 | 0 |
Common shares, par value (in Dollars per share) | $0 | $0 |
Common shares, Authorized shares | 40,000,000 | 40,000,000 |
Common shares, Outstanding | 24,232,699 | 24,122,284 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash Flows from Operating Activities | ||
Net income | $3,508,000 | $1,726,000 |
Non-cash items included in net income | ||
Depreciation and amortization | 4,728,000 | 4,583,000 |
Deferred income taxes | -584,000 | 284,000 |
Deferred compensation plan | 62,000 | 57,000 |
Stock option expense | 1,153,000 | 896,000 |
Issuance of common shares as compensation | 144,000 | 144,000 |
(Gain) on disposition of fixed assets | -2,000 | -18,000 |
Loss on sale of subsidiary | 565,000 | |
Allowance for doubtful accounts | 268,000 | 88,000 |
Inventory obsolescence reserve | 1,093,000 | 973,000 |
Changes in certain assets and liabilities: | ||
Accounts receivable | 6,579,000 | 8,442,000 |
Inventories | 901,000 | -5,459,000 |
Refundable income taxes | 1,885,000 | 365,000 |
Accounts payable | -1,884,000 | -534,000 |
Accrued expenses and other | 4,340,000 | -1,782,000 |
Customer prepayments | -625,000 | 1,064,000 |
Net cash flows provided by operating activities | 21,788,000 | 10,829,000 |
Cash Flows from Investing Activities | ||
Purchases of property, plant and equipment | -3,439,000 | -4,528,000 |
Proceeds from sale of subsidiary, net of cash sold | 1,494,000 | |
Proceeds from sale of fixed assets | 953,000 | 250,000 |
Net cash flows (used in) investing activities | -992,000 | -4,278,000 |
Cash Flows from Financing Activities | ||
Cash dividends paid | -2,172,000 | -4,333,000 |
Proceeds and tax benefits from exercises of stock options | 401,000 | 351,000 |
Purchase of treasury shares | -165,000 | -166,000 |
Issuance of treasury shares | 93,000 | 64,000 |
Net cash flows (used in) financing activities | -1,843,000 | -4,084,000 |
Increase in cash and cash equivalents | 18,953,000 | 2,467,000 |
Cash and cash equivalents at beginning of period | 9,013,000 | 7,949,000 |
Cash and cash equivalents at end of period | 27,966,000 | 10,416,000 |
Building [Member] | ||
Non-cash items included in net income | ||
(Gain) on disposition of building | ($343,000) |
Note_1_Interim_Condensed_Conso
Note 1 - Interim Condensed Consolidated Financial Statements | 9 Months Ended |
Mar. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Condensed Financial Statements [Text Block] | NOTE 1 - INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
The interim condensed consolidated financial statements are unaudited and are prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information, and rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the interim financial statements include all normal adjustments and disclosures necessary to present fairly the Company’s financial position as of March 31, 2015, the results of its operations for the three and nine month periods ended March 31, 2015 and 2014, and its cash flows for the nine month periods ended March 31, 2015 and 2014. These statements should be read in conjunction with the financial statements and footnotes included in the fiscal 2014 Annual Report on Form 10-K. Financial information as of June 30, 2014 has been derived from the Company’s audited consolidated financial statements. |
Note_2_Summary_of_Significant_
Note 2- Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Significant Accounting Policies [Text Block] | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Consolidation: | |||||||||||||
The condensed consolidated financial statements include the accounts of LSI Industries Inc. (an Ohio corporation) and its subsidiaries (collectively, the “Company”), all of which are wholly owned. All intercompany transactions and balances have been eliminated in consolidation. | |||||||||||||
Revenue Recognition: | |||||||||||||
Revenue is recognized when title to goods and risk of loss have passed to the customer, there is persuasive evidence of a purchase arrangement, delivery has occurred or services have been rendered, and collectability is reasonably assured. Revenue from product sales is typically recognized at time of shipment. In certain arrangements with customers, as is the case with the sale of some of our solid-state LED (light emitting diode) video screens, revenue is recognized upon customer acceptance of the video screen at the job site. Sales are recorded net of estimated returns, rebates and discounts. Amounts received from customers prior to the recognition of revenue are accounted for as customer pre-payments and are included in accrued expenses. | |||||||||||||
The Company has five sources of revenue: revenue from product sales; revenue from installation of products; service revenue generated from providing integrated design, project and construction management, site engineering and site permitting; revenue from the management of media content and digital hardware related to active digital signage; and revenue from shipping and handling. | |||||||||||||
Product revenue is recognized on product-only orders upon passing of title and risk of loss, generally at time of shipment. However, product revenue related to orders where the customer requires the Company to install the product is recognized when the product is installed. The Company provides product warranties and certain post-shipment service, support and maintenance of certain solid state LED video screens and billboards. | |||||||||||||
Installation revenue is recognized when the products have been fully installed. The Company is not always responsible for installation of products it sells and has no post-installation responsibilities, other than normal warranties. | |||||||||||||
Service revenue from integrated design, project and construction management, and site permitting is recognized when all products at each customer site have been installed. | |||||||||||||
Revenue from the management of media content and digital hardware related to active digital signage is recognized evenly over the service period with the customer. Media content service periods with most customers range from 1 month to 1 year. | |||||||||||||
Shipping and handling revenue coincides with the recognition of revenue from sale of the product. | |||||||||||||
The Company evaluates the appropriateness of revenue recognition in accordance with Accounting Standards Codification (“ASC”) Subtopic 605-25, “Revenue Recognition: Multiple–Element Arrangements.” In situations where the Company is responsible for re-imaging programs with multiple sites, each site is viewed as a separate unit of accounting and has stand-alone value to the customer. Revenue is recognized upon the Company’s complete performance at the location, which may include a site survey, graphics products, lighting products, and installation of products. The selling price assigned to each site is based upon an agreed upon price between the Company and its customer and reflects the estimated selling price for that site relative to the selling price for sites with similar image requirements. | |||||||||||||
The Company also evaluates the appropriateness of revenue recognition in accordance with ASC Subtopic 985-605, “Software: Revenue Recognition.” Our solid-state LED video screens, billboards and active digital signage contain software elements which the Company has determined are incidental and excluded from the scope of ASC Subtopic 985-605. | |||||||||||||
Credit and Collections: | |||||||||||||
The Company maintains allowances for doubtful accounts receivable for probable estimated losses resulting from either customer disputes or the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in their inability to make the required payments, the Company may be required to record additional allowances or charges against income. The Company determines its allowance for doubtful accounts by first considering all known collectability problems of customers’ accounts, and then applying certain percentages against the various aging categories based on the due date of the remaining receivables. The resulting allowance for doubtful accounts receivable is an estimate based upon the Company’s knowledge of its business and customer base, and historical trends. The Company also establishes allowances, at the time revenue is recognized, for returns, discounts, pricing and other possible customer deductions. These allowances are based upon historical trends. | |||||||||||||
The following table presents the Company’s net accounts receivable at the dates indicated. | |||||||||||||
(In thousands) | March 31, | June 30, | |||||||||||
2015 | 2014 | ||||||||||||
Accounts receivable | $ | 35,841 | $ | 43,047 | |||||||||
less Allowance for doubtful accounts | (438 | ) | (294 | ) | |||||||||
Accounts receivable, net | $ | 35,403 | $ | 42,753 | |||||||||
Cash and Cash Equivalents: | |||||||||||||
The cash balance includes cash and cash equivalents which have original maturities of less than three months. The Company maintains balances at financial institutions in the United States. The FDIC limit for insurance coverage on non-interest bearing accounts is $250,000. As of March 31, 2015 and June 30, 2014, the Company had bank balances of $29,925,000 and $12,367,000, respectively, without insurance coverage. Of these amounts, $741,000 was held in foreign bank accounts as of June 30, 2014. As a result of the sale of LSI Saco Technologies Inc., there are no longer cash accounts in foreign banks as of March 31, 2015 (See Note 13). | |||||||||||||
Inventories: | |||||||||||||
Inventories are stated at the lower of cost or market. Cost of inventories includes the cost of purchased raw materials and components, direct labor, as well as manufacturing overhead which is generally applied to inventory based on direct labor and material content. Cost is determined on the first-in, first-out basis. | |||||||||||||
Property, Plant and Equipment and Related Depreciation: | |||||||||||||
Property, plant and equipment are stated at cost. Major additions and betterments are capitalized while maintenance and repairs are expensed. For financial reporting purposes, depreciation is computed on the straight-line method over the estimated useful lives of the assets as follows: | |||||||||||||
Buildings | 28 - 40 years | ||||||||||||
Machinery and equipment | 3 - 10 years | ||||||||||||
Computer software | 3 - 8 years | ||||||||||||
Costs related to the purchase, internal development, and implementation of the Company’s fully integrated enterprise resource planning/business operating software system are either capitalized or expensed in accordance with ASC Subtopic 350-40, “Intangibles – Goodwill and Other: Internal-Use Software.” Leasehold improvements are amortized over the shorter of fifteen years or the remaining term of the lease. | |||||||||||||
The Company recorded $1,465,000 and $1,409,000 of depreciation expense in the third quarter of fiscal 2015 and 2014, respectively, and $4,328,000 and $3,972,000 of depreciation expense in the first nine months of fiscal 2015 and 2014, respectively. | |||||||||||||
Intangible Assets: | |||||||||||||
Intangible assets consisting of customer relationships, trade names and trademarks, patents, technology and software, and non-compete agreements are recorded on the Company's balance sheet. The definite-lived intangible assets are being amortized to expense over periods ranging between five and twenty years. The Company evaluates definite-lived intangible assets for permanent impairment when triggering events are identified. Neither indefinite-lived intangible assets nor the excess of cost over fair value of assets acquired ("goodwill") are amortized, however they are subject to review for impairment. See additional information about goodwill and intangibles in Note 7. | |||||||||||||
Fair Value: | |||||||||||||
The Company has financial instruments consisting primarily of cash and cash equivalents, revolving lines of credit, and on occasion, long-term debt. The fair value of these financial instruments approximates carrying value because of their short-term maturity and/or variable, market-driven interest rates. The Company has no financial instruments with off-balance sheet risk. | |||||||||||||
Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in goodwill and other intangible asset impairment analyses, in the purchase price of acquired companies (if any), and in the valuation of the contingent earn-out. The fair value measurement of these nonfinancial assets and nonfinancial liabilities is based on significant inputs not observable in the market and thus represent Level 3 measurements as defined in ASC 820, “Fair Value Measurement.” | |||||||||||||
Product Warranties: | |||||||||||||
The Company offers a limited warranty that its products are free from defects in workmanship and materials. The specific terms and conditions vary somewhat by product line, but generally cover defective products returned within one to five years, with some exceptions where the terms extend to 10 years, from the date of shipment. The Company records warranty liabilities to cover the estimated future costs for repair or replacement of defective returned products as well as products that need to be repaired or replaced in the field after installation. The Company calculates its liability for warranty claims by applying estimates to cover unknown claims, as well as estimating the total amount to be incurred for known warranty issues. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. | |||||||||||||
Changes in the Company’s warranty liabilities, which are included in accrued expenses in the accompanying consolidated balance sheets, during the periods indicated below were as follows: | |||||||||||||
Nine | Nine | Fiscal | |||||||||||
Months Ended | Months Ended | Year Ended | |||||||||||
(In thousands) | March 31, | March 31, | June 30, | ||||||||||
2015 | 2014 | 2014 | |||||||||||
Balance at beginning of the period | $ | 2,662 | $ | 1,424 | $ | 1,424 | |||||||
Additions charged to expense | 2,588 | 2,395 | 3,816 | ||||||||||
Deductions for repairs and replacements | (1,799 | ) | (1,871 | ) | (2,578 | ) | |||||||
Sale of subsidiary | (3 | ) | -- | -- | |||||||||
Balance at end of the period | $ | 3,448 | $ | 1,948 | $ | 2,662 | |||||||
Research and Development Costs: | |||||||||||||
Research and development expenses are costs directly attributable to new product development, including the development of new technology for both existing and new products, and consist of salaries, payroll taxes, employee benefits, materials, supplies, depreciation and other administrative costs. The Company follows the requirements of ASC Subtopic 985-20, “Software: Costs of Software to be Sold, Leased, or Marketed,” and expenses as research and development all costs associated with development of software used in solid-state LED products. All costs are expensed as incurred and are included in selling and administrative expenses. Research and development costs related to both product and software development totaled $1,096,000 and $1,973,000 for the three months ended March 31, 2015 and 2014, respectively, and $4,397,000 and $6,054,000 for the nine months ended March 31, 2015 and 2014, respectively. | |||||||||||||
Earnings Per Common Share: | |||||||||||||
The computation of basic earnings per common share is based on the weighted average common shares outstanding for the period net of treasury shares held in the Company’s non-qualified deferred compensation plan. The computation of diluted earnings per share is based on the weighted average of common shares outstanding for the period and includes common share equivalents. Common share equivalents include the dilutive effect of stock options, contingently issuable shares and common shares to be issued under a deferred compensation plan, all of which totaled 440,000 shares and 306,000 shares for the three months ended March 31, 2015 and 2014, respectively, and 401,000 shares and 472,000 shares for the nine months ended March 31, 2015 and 2014, respectively. See further discussion of earnings per share in Note 4. | |||||||||||||
New Accounting Pronouncements: | |||||||||||||
In July 2013, the Financial Accounting Standards Board issued ASU 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 amended guidance is intended to eliminate the diversity that is in practice with regard to the financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amended guidance is effective for fiscal years and interim periods within those years, beginning after December 15, 2013, or the Company’s fiscal year 2015, with early adoption permissible. The adoption of this guidance did not have a material impact on the financial statements. | |||||||||||||
In September 2013, the Internal Revenue Service issued Treasury Decision 9636, which enacted final tax regulations regarding the capitalization and expensing of amounts paid to acquire, produce, or improve tangible property. The regulations also include guidance regarding the retirement of depreciable property. The regulations are required to be effective in taxable years beginning on or after January 1, 2014, or the Company’s fiscal year 2015. The Company has reviewed the impact of the final regulations and the anticipated impact to the financial statements is not material. | |||||||||||||
In June 2014, the Financial Accounting Standards Board issued ASU 2014-09, “Revenue from Contracts with Customers.” This amended guidance supersedes and replaces all existing U.S. GAAP revenue recognition guidance. The guidance established a new revenue recognition model, changes the basis for deciding when revenue is recognized over a point in time, provides new and more detailed guidance on specific revenue topics, and expands and improves disclosures about revenue. The amended guidance is effective for fiscal years and interim periods within those years, beginning after December 15, 2016, or the Company’s fiscal year 2018. The Company has not yet determined the impact the amended guidance will have on its financial statements. | |||||||||||||
Comprehensive Income: | |||||||||||||
The Company does not have any comprehensive income items other than net income (loss). The functional currency of the Company’s former Canadian operation was the U.S. dollar. | |||||||||||||
Subsequent Events: | |||||||||||||
The Company has evaluated subsequent events for potential recognition and disclosure through the date the condensed consolidated financial statements were filed. No items were identified during this evaluation that required adjustment to or disclosure in the accompanying financial statements. | |||||||||||||
Use of Estimates: | |||||||||||||
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Note_3_Segment_Reporting_Infor
Note 3- Segment Reporting Information | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Reporting Disclosure [Text Block] | NOTE 3 - SEGMENT REPORTING INFORMATION | ||||||||||||||||
ASC Topic 280, “Segment Reporting,” establishes standards for reporting information regarding operating segments in annual financial statements and requires selected information of those segments to be presented in financial statements. Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision maker (the Company’s Chief Executive Officer or “CODM”) in making decisions on how to allocate resources and assess performance. With a new Chief Executive Officer and a new view on how the Company will be managed, the Company has realigned its operating segments to be in alignment with the financial information now received by the CODM. The Company’s three operating segments are Lighting, Graphics, and Technology, each of which has a president who is responsible for that business and reports to the CODM. An All Other Category as well as Corporate and Eliminations will also be reported in the segment information. As a result of the realignment of the Company’s operating segments in the third quarter of fiscal 2015, all prior period segment information has been revised so as to be comparable with the new segment reporting structure. | |||||||||||||||||
The changes made and realignment of the Company’s operating segments involved the following: | |||||||||||||||||
1) | The segment formerly known as the Electronic Components Segment was renamed as the Technology Segment. | ||||||||||||||||
2) | The LED Video Screen product line was moved out of the Lighting Segment and into the Technology Segment. | ||||||||||||||||
3) | The Company’s installation management business (LSI Adapt) and the menu board business (LSI Images) were moved out of the All Other Category and into the Graphics Segment. | ||||||||||||||||
The Lighting Segment includes outdoor, indoor, and landscape lighting utilizing both traditional and LED light sources, that have been fabricated and assembled for the commercial, industrial and multi-site retail lighting markets, the Company’s primary niche markets (petroleum / convenience store market, automotive dealership market, and quick service restaurant market). | |||||||||||||||||
The Graphics Segment designs, manufactures and installs exterior and interior visual image elements related to traditional graphics, active digital signage along with the management of media content related to digital signage, and menu board systems that are either digital or traditional by design. These products are used in visual image programs in several markets, including the petroleum / convenience store market, multi-site retail operations, banking, and restaurants. The Graphics Segment implements, installs and provides program management services related to products sold by the Graphics Segment and by the Lighting Segment. | |||||||||||||||||
The Technology Segment designs and manufactures electronic circuit boards, assemblies and sub-assemblies, various control system products used in other applications (including the control of solid-state LED lighting and metal halide lighting), and solid state LED video screens, scoreboards and advertising ribbon boards. This operating segment sells its products directly to customers (primarily in the transportation, original equipment manufacturers and medical markets) and also has significant inter-segment sales to the Lighting Segment. | |||||||||||||||||
The All Other Category includes only the Company’s former subsidiary that designed and produced high-performance light engines, large format video screens using solid-state LED technology, and certain specialty LED lighting. This subsidiary was sold on September 30, 2014 (See Note 13). | |||||||||||||||||
The Company’s corporate administration activities are reported in a line item titled Corporate and Eliminations. This primarily includes intercompany profit in inventory eliminations, expense related to certain corporate officers and support staff, the Company’s internal audit staff, expense related to the Company’s Board of Directors, stock option expense for options granted to corporate administration employees, certain consulting expenses, investor relations activities, and a portion of the Company’s legal, auditing and professional fee expenses. Corporate identifiable assets primarily consist of cash, invested cash (if any), refundable income taxes, and deferred income tax assets. | |||||||||||||||||
There was no concentration of consolidated net sales in the three or nine months ended March 31, 2015 or 2014. There was no concentration of accounts receivable at March 31, 2015 or June 30, 2014. | |||||||||||||||||
Summarized financial information for the Company’s operating segments is provided for the indicated periods and as of March 31, 2015 and June 30, 2014: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(In thousands) | 31-Mar | 31-Mar | |||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net Sales: | |||||||||||||||||
Lighting Segment | $ | 48,865 | $ | 52,553 | $ | 164,382 | $ | 167,595 | |||||||||
Graphics Segment | 13,363 | 10,638 | 49,656 | 40,367 | |||||||||||||
Technology Segment | 6,375 | 5,520 | 17,705 | 16,482 | |||||||||||||
All Other Category | -- | 285 | 41 | 1,161 | |||||||||||||
$ | 68,603 | $ | 68,996 | $ | 231,784 | $ | 225,605 | ||||||||||
Operating Income (Loss): | |||||||||||||||||
Lighting Segment | $ | 2,913 | $ | 2,219 | $ | 11,230 | $ | 8,680 | |||||||||
Graphics Segment | (320 | ) | (1,577 | ) | 798 | (1,150 | ) | ||||||||||
Technology Segment | 855 | 108 | 1,986 | 1,628 | |||||||||||||
All Other Category | -- | (231 | ) | (183 | ) | (642 | ) | ||||||||||
Corporate and Eliminations | (2,866 | ) | (1,465 | ) | (8,491 | ) | (5,112 | ) | |||||||||
$ | 582 | $ | (946 | ) | $ | 5,340 | $ | 3,404 | |||||||||
Capital Expenditures: | |||||||||||||||||
Lighting Segment | $ | 319 | $ | 1,605 | $ | 1,529 | $ | 2,792 | |||||||||
Graphics Segment | 29 | 127 | 935 | 361 | |||||||||||||
Technology Segment | 97 | 72 | 448 | 555 | |||||||||||||
All Other Category | -- | -- | 4 | 39 | |||||||||||||
Corporate and Eliminations | 437 | 3 | 523 | 781 | |||||||||||||
$ | 882 | $ | 1,807 | $ | 3,439 | $ | 4,528 | ||||||||||
Depreciation and Amortization: | |||||||||||||||||
Lighting Segment | $ | 778 | $ | 688 | $ | 2,229 | $ | 2,062 | |||||||||
Graphics Segment | 262 | 246 | 768 | 704 | |||||||||||||
Technology Segment | 281 | 395 | 944 | 1,163 | |||||||||||||
All Other Category | -- | 42 | 31 | 119 | |||||||||||||
Corporate and Eliminations | 269 | 243 | 756 | 535 | |||||||||||||
$ | 1,590 | $ | 1,614 | $ | 4,728 | $ | 4,583 | ||||||||||
March 31, | June 30, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Identifiable Assets: | |||||||||||||||||
Lighting Segment | $ | 84,367 | $ | 93,847 | |||||||||||||
Graphics Segment | 26,384 | 24,425 | |||||||||||||||
Technology Segment | 31,081 | 33,440 | |||||||||||||||
All Other Category | -- | 2,860 | |||||||||||||||
Corporate and Eliminations | 32,366 | 15,316 | |||||||||||||||
$ | 174,198 | $ | 169,888 | ||||||||||||||
The segment net sales reported above represent sales to external customers. Segment operating income, which is used in management’s evaluation of segment performance, represents net sales less all operating expenses including impairment of goodwill, but excluding interest expense and interest income. Identifiable assets are those assets used by each segment in its operations. Corporate identifiable assets primarily consist of cash, invested cash (if any), refundable income taxes, and deferred income tax assets. | |||||||||||||||||
The Company records a 10% mark-up on intersegment revenues. Any intersegment profit in inventory is eliminated in consolidation. Intersegment revenues were eliminated in consolidation as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
31-Mar | 31-Mar | ||||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Lighting Segment inter-segment net sales | $ | 533 | $ | 486 | $ | 2,030 | $ | 2,379 | |||||||||
Graphics Segment inter-segment net sales | $ | 132 | $ | 482 | $ | 388 | $ | 921 | |||||||||
Technology Segment inter-segment net sales | $ | 6,788 | $ | 8,116 | $ | 21,735 | $ | 26,070 | |||||||||
All Other Category inter-segment net sales | $ | -- | $ | 795 | $ | 308 | $ | 1,781 | |||||||||
The Company considers its geographic areas to be: 1) the United States, and 2) Canada. The Company’s operations are in the United States, with one operation previously in Canada. As a result of the sale of a subsidiary on September 30, 2014, the Company no longer has a presence in Canada (See Note 13). The geographic distribution of the Company’s net sales and long-lived assets are as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
(In thousands) | 31-Mar | 31-Mar | |||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net Sales (a): | |||||||||||||||||
United States | $ | 68,603 | $ | 68,711 | $ | 231,743 | $ | 224,444 | |||||||||
Canada | -- | 285 | 41 | 1,161 | |||||||||||||
$ | 68,603 | $ | 68,996 | $ | 231,784 | $ | 225,605 | ||||||||||
March 31, | June 30, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Long-lived Assets (b): | |||||||||||||||||
United States | $ | 45,208 | $ | 45,886 | |||||||||||||
Canada | -- | 190 | |||||||||||||||
$ | 45,208 | $ | 46,076 | ||||||||||||||
a. | Net sales are attributed to geographic areas based upon the location of the operation making the sale. | ||||||||||||||||
b. | Long-lived assets include property, plant and equipment, and other long-term assets. Goodwill and intangible assets are not included in long-lived assets. | ||||||||||||||||
Note_4_Earnings_Per_Common_Sha
Note 4 - Earnings Per Common Share | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Earnings Per Share [Text Block] | NOTE 4 - EARNINGS PER COMMON SHARE | ||||||||||||||||
The following table presents the amounts used to compute basic and diluted earnings per common share, as well as the effect of dilutive potential common shares on weighted average shares outstanding (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
31-Mar | 31-Mar | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
BASIC EARNINGS (LOSS) PER SHARE | |||||||||||||||||
Net income (loss) | $ | 393 | $ | (1,009 | ) | $ | 3,508 | $ | 1,726 | ||||||||
Weighted average shares outstanding during the period, net of treasury shares (a) | 24,203 | 24,095 | 24,149 | 24,073 | |||||||||||||
Weighted average shares outstanding in the Deferred Compensation Plan during the period | 325 | 306 | 321 | 303 | |||||||||||||
Weighted average shares outstanding | 24,528 | 24,401 | 24,470 | 24,376 | |||||||||||||
Basic earnings (loss) per share | $ | 0.02 | $ | (0.04 | ) | $ | 0.14 | $ | 0.07 | ||||||||
DILUTED EARNINGS (LOSS) PER SHARE | |||||||||||||||||
Net income (loss) | $ | 393 | $ | (1,009 | ) | $ | 3,508 | $ | 1,726 | ||||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 24,528 | 24,401 | 24,470 | 24,376 | |||||||||||||
Effect of dilutive securities (b): | |||||||||||||||||
Impact of common shares to be issued under stock option plans, and contingently issuable shares, if any | 115 | -- | 80 | 169 | |||||||||||||
Weighted average shares outstanding (c) | 24,643 | 24,401 | 24,550 | 24,545 | |||||||||||||
Diluted earnings (loss) per share | $ | 0.02 | $ | (0.04 | ) | $ | 0.14 | $ | 0.07 | ||||||||
(a) | Includes shares accounted for like treasury stock in accordance with Accounting Standards Codification Topic 710, Compensation - General. | ||||||||||||||||
(b) | Calculated using the “Treasury Stock” method as if dilutive securities were exercised and the funds were used to purchase common shares at the average market price during the period. | ||||||||||||||||
(c) | Options to purchase 1,729,273 common shares and 1,235,650 common shares at March 31, 2015 and 2014, respectively, and options to purchase 2,272,823 common shares and 1,687,650 common shares at March 31, 2015 and 2014, respectively, were not included in the computation of the three month and nine month periods for diluted earnings per share, respectively, because the exercise price was greater than the average fair market value of the common shares. | ||||||||||||||||
Note_5_Inventories
Note 5 - Inventories | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventory Disclosure [Text Block] | NOTE 5 - INVENTORIES | ||||||||
The following information is provided as of the dates indicated: | |||||||||
March 31, | June 30, | ||||||||
(In thousands) | 2015 | 2014 | |||||||
Inventories: | |||||||||
Raw materials | $ | 27,832 | $ | 30,278 | |||||
Work-in-process | 4,913 | 5,393 | |||||||
Finished goods | 9,838 | 9,737 | |||||||
Total Inventories | $ | 42,583 | $ | 45,408 | |||||
Note_6_Accrued_Expenses
Note 6 - Accrued Expenses | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | NOTE 6 - ACCRUED EXPENSES | ||||||||
The following information is provided as of the dates indicated: | |||||||||
March 31, | June 30, | ||||||||
(In thousands) | 2015 | 2014 | |||||||
Accrued Expenses: | |||||||||
Compensation and benefits | $ | 10,728 | $ | 7,134 | |||||
Customer prepayments | 848 | 1,473 | |||||||
Accrued sales commissions | 1,424 | 1,814 | |||||||
Accrued warranty | 3,448 | 2,662 | |||||||
Other accrued expenses | 2,822 | 2,548 | |||||||
Total Accrued Expenses | $ | 19,270 | $ | 15,631 | |||||
Note_7_Goodwill_and_Other_Inta
Note 7 - Goodwill and Other Intangible Assets | 9 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 7 - GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||
Carrying values of goodwill and other intangible assets with indefinite lives are reviewed at least annually for possible impairment in accordance with ASC Topic 350, “Intangibles – Goodwill and Other.” The Company may first assess qualitative factors in order to determine if goodwill and indefinite-lived intangible assets are impaired. If through the qualitative assessment it is determined that it is more likely than not that goodwill and indefinite-lived assets are not impaired, no further testing is required. If it is determined more likely than not that goodwill and indefinite-lived assets are impaired, or if the Company elects not to first assess qualitative factors, the Company’s impairment testing continues with the estimation of the fair value of goodwill and indefinite-lived intangible assets using a combination of a market approach and an income (discounted cash flow) approach, at the reporting unit level, that requires significant management judgment with respect to revenue and expense growth rates, changes in working capital and the selection and use of an appropriate discount rate. The estimates of fair value of reporting units are based on the best information available as of the date of the assessment. The use of different assumptions would increase or decrease estimated discounted future operating cash flows and could increase or decrease an impairment charge. Company management uses its judgment in assessing whether assets may have become impaired between annual impairment tests. Indicators such as adverse business conditions, economic factors and technological change or competitive activities may signal that an asset has become impaired. | |||||||||||||||||||||
As part of the realignment of the Company’s operating segments, the reporting units defined in the annual goodwill impairment testing were reassessed and it was determined that the Company has three reporting units that contain goodwill. The Company relies upon a number of factors, judgments and estimates when conducting its impairment testing. These include operating results, forecasts, anticipated future cash flows and marketplace data, to name a few. There are inherent uncertainties related to these factors and judgments in applying them to the analysis of goodwill impairment. | |||||||||||||||||||||
As of March 1, 2015, the Company performed its annual goodwill impairment test on the three reporting units that contain goodwill. The preliminary goodwill impairment test in the Lighting Segment passed with a business enterprise value that was $36.2 million or 45% above the carrying value of this reporting unit. The preliminary goodwill impairment test of the one reporting unit with goodwill in the Graphics Segment passed with an estimated business enterprise value that was $4.0 million or 344% above the carrying value of the reporting unit. The preliminary goodwill impairment test of the reporting unit in the Technology Segment that contains goodwill passed with an estimated business enterprise value that was $14.9 million or 58% above the carrying value of this reporting unit. The impairment test is expected to be completed in the fourth quarter of fiscal 2015. It is anticipated that the results of the test will not change when the test is complete. | |||||||||||||||||||||
The following table presents information about the Company's goodwill on the dates or for the periods indicated: | |||||||||||||||||||||
Goodwill | |||||||||||||||||||||
(In thousands) | Lighting | Graphics | Technology | All Other | |||||||||||||||||
Segment | Segment | Segment | Category | Total | |||||||||||||||||
Balance as of June 30, 2014 | |||||||||||||||||||||
Goodwill | $ | 34,913 | $ | 28,690 | $ | 11,621 | $ | 3,119 | $ | 78,343 | |||||||||||
Accumulated impairment losses | (34,778 | ) | (27,525 | ) | (2,413 | ) | (3,119 | ) | (67,835 | ) | |||||||||||
Goodwill, net as of June 30, 2014 | 135 | 1,165 | 9,208 | -- | 10,508 | ||||||||||||||||
Sale of LSI Saco | |||||||||||||||||||||
Goodwill | -- | -- | -- | (3,119 | ) | (3,119 | ) | ||||||||||||||
Accumulated impairment losses | -- | -- | -- | 3,119 | 3,119 | ||||||||||||||||
-- | -- | -- | -- | -- | |||||||||||||||||
Balance as of March 31, 2015 | |||||||||||||||||||||
Goodwill | 34,913 | 28,690 | 11,621 | -- | 75,224 | ||||||||||||||||
Accumulated impairment losses | (34,778 | ) | (27,525 | ) | (2,413 | ) | -- | (64,716 | ) | ||||||||||||
Goodwill, net as of December 31, 2014 | $ | 135 | $ | 1,165 | $ | 9,208 | $ | -- | $ | 10,508 | |||||||||||
The Company performed its annual review of indefinite-lived intangible assets as of March 1, 2015 and determined there was no impairment. The preliminary indefinite-lived intangible impairment test passed with a fair market value that was $6.6 million or 192% above its carrying value. The impairment test is expected to be completed in the fourth quarter of fiscal 2015. It is anticipated that the results of the test will not change when the test is complete. | |||||||||||||||||||||
In the first quarter of fiscal 2015, the Company sold LSI Saco Technologies Inc. A customer relationship intangible asset with a gross carrying amount of $1,036,000 and accumulated amortization of $428,000 was sold as a result of the sale of LSI Saco Technologies (See Note 13). | |||||||||||||||||||||
The gross carrying amount and accumulated amortization by major other intangible asset class is as follows: | |||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Other Intangible Assets | Gross | ||||||||||||||||||||
(In thousands) | Carrying | Accumulated | Net | ||||||||||||||||||
Amount | Amortization | Amount | |||||||||||||||||||
Amortized Intangible Assets | |||||||||||||||||||||
Customer relationships | $ | 9,316 | $ | 7,216 | $ | 2,100 | |||||||||||||||
Patents | 338 | 111 | 227 | ||||||||||||||||||
LED technology firmware, software | 11,228 | 10,891 | 337 | ||||||||||||||||||
Trade name | 460 | 460 | -- | ||||||||||||||||||
Non-compete agreements | 710 | 577 | 133 | ||||||||||||||||||
Total Amortized Intangible Assets | 22,052 | 19,255 | 2,797 | ||||||||||||||||||
Indefinite-lived Intangible Assets | |||||||||||||||||||||
Trademarks and trade names | 3,422 | -- | 3,422 | ||||||||||||||||||
Total Indefinite-lived Intangible Assets | 3,422 | -- | 3,422 | ||||||||||||||||||
Total Other Intangible Assets | $ | 25,474 | $ | 19,255 | $ | 6,219 | |||||||||||||||
30-Jun-14 | |||||||||||||||||||||
Gross | |||||||||||||||||||||
Carrying | Accumulated | Net | |||||||||||||||||||
(In thousands) | Amount | Amortization | Amount | ||||||||||||||||||
Amortized Intangible Assets | |||||||||||||||||||||
Customer relationships | $ | 10,352 | $ | 7,412 | $ | 2,940 | |||||||||||||||
Patents | 338 | 84 | 254 | ||||||||||||||||||
LED technology firmware, software | 11,228 | 10,832 | 396 | ||||||||||||||||||
Trade name | 460 | 454 | 6 | ||||||||||||||||||
Non-compete agreements | 710 | 501 | 209 | ||||||||||||||||||
Total Amortized Intangible Assets | 23,088 | 19,283 | 3,805 | ||||||||||||||||||
Indefinite-lived Intangible Assets | |||||||||||||||||||||
Trademarks and trade names | 3,422 | -- | 3,422 | ||||||||||||||||||
Total Indefinite-lived Intangible Assets | 3,422 | -- | 3,422 | ||||||||||||||||||
Total Other Intangible Assets | $ | 26,510 | $ | 19,283 | $ | 7,227 | |||||||||||||||
(In thousands) | Amortization Expense of | ||||||||||||||||||||
Other Intangible Assets | |||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | ||||||||||||||||||||
Three Months Ended | $ | 125 | $ | 205 | |||||||||||||||||
Nine Months Ended | $ | 400 | $ | 611 | |||||||||||||||||
The Company expects to record annual amortization expense as follows: | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
2015 | $ | 525 | |||||||||||||||||||
2016 | $ | 505 | |||||||||||||||||||
2017 | $ | 409 | |||||||||||||||||||
2018 | $ | 400 | |||||||||||||||||||
2019 | $ | 400 | |||||||||||||||||||
After 2019 | $ | 958 | |||||||||||||||||||
Note_8_Revolving_Line_of_Credi
Note 8 - Revolving Line of Credit | 9 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 8 - REVOLVING LINE OF CREDIT |
In March 2015, the Company renewed its $30 million unsecured revolving credit line. The line of credit expires in the third quarter of fiscal 2018. Interest on the revolving line of credit is charged based upon an increment over the LIBOR rate as periodically determined, or at the bank’s base lending rate, at the Company’s option. The increment over the LIBOR borrowing rate, as periodically determined, fluctuates between 150 and 190 basis points depending upon the ratio of indebtedness to earnings before interest, taxes, depreciation and amortization (“EBITDA”), as defined in the credit facility. The fee on the unused balance of the $30 million committed line of credit is 12.5 basis points. Under the terms of this credit facility, the Company has agreed to a negative pledge of assets and is required to comply with financial covenants that limit the amount of debt obligations, require a minimum amount of tangible net worth, and limit the ratio of indebtedness to EBITDA. There are no borrowings against the line of credit as of March 31, 2015. | |
The Company is in compliance with all of its loan covenants as of March 31, 2015. |
Note_9_Cash_Dividends
Note 9 - Cash Dividends | 9 Months Ended |
Mar. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 9 - CASH DIVIDENDS |
The Company paid cash dividends of $2,172,000 and $4,333,000 in the nine months ended March 31, 2015 and 2014, respectively. In April 2015, the Board of Directors declared a regular quarterly cash dividend of $0.03 per share payable May 12, 2015 to shareholders of record May 5, 2015. The new indicated annual cash dividend rate is $0.12 per share. |
Note_10_Equity_Compensation
Note 10 - Equity Compensation | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 10 - EQUITY COMPENSATION | ||||||||||||||||
Stock Options | |||||||||||||||||
The Company has an equity compensation plan that was approved by shareholders in November 2012 and that covers all of its full-time employees, outside directors and certain advisors. This 2012 Stock Incentive Plan replaces all previous equity compensation plans. The options granted or stock awards made pursuant to this plan are granted at fair market value at the date of grant or award. Options granted to non-employee directors become exercisable 25% each ninety days (cumulative) from the date of grant and options granted to employees generally become exercisable 25% per year (cumulative) beginning one year after the date of grant. The maximum contractual term of the Company’s stock options is ten years. If a stock option holder’s employment with the Company terminates by reason of death, disability or retirement, as defined in the Plan, the Plan generally provides for acceleration of vesting. The number of shares reserved for issuance is 1,311,983 shares, all of which were available for future grant or award as of March 31, 2015. This plan allows for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, restricted and unrestricted stock awards, performance stock awards, and other stock awards. As of March 31, 2015, a total of 2,727,387 options for common shares were outstanding from this plan as well as one previous stock option plan (which has also been approved by shareholders), and of these, a total of 1,650,439 options for common shares were vested and exercisable. As of March 31, 2015, the approximate unvested stock option expense that will be recorded as expense in future periods is $1,467,217. The weighted average time over which this expense will be recorded is approximately 38 months. | |||||||||||||||||
The fair value of each option on the date of grant was estimated using the Black-Scholes option pricing model. The below listed weighted average assumptions were used for grants in the periods indicated. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
31-Mar | 31-Mar | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Dividend yield | 0.83 | % | 2.84 | % | 1.11 | % | 3.32 | % | |||||||||
Expected volatility | 53 | % | 60 | % | 56 | % | 53 | % | |||||||||
Risk-free interest rate | 1.57 | % | 1.71 | % | 1.63 | % | 1.66 | % | |||||||||
Expected life | 6.0 yrs. | 5.5 yrs. | 6.0 yrs. | 5.5 yrs. | |||||||||||||
At March 31, 2015, the 713,323 options granted during the first nine months of fiscal 2015 to employees had exercise prices ranging from $5.96 to $7.88 per share, fair values ranging from of $2.19 to $3.49 per share, and remaining contractual lives of between nine years six months and nine years eleven months. | |||||||||||||||||
At March 31, 2014, the 436,000 options granted during the first nine months of fiscal 2014 to employees had exercise prices ranging from $7.20 to $8.44 per share, fair values ranging from $2.64 to $3.64 per share, and remaining contractual lives of between nine years five months and nine years nine months. | |||||||||||||||||
The Company calculates stock option expense using the Black-Scholes model. Stock option expense is recorded on a straight line basis, or sooner if the grantee is retirement eligible as defined in the 2012 Stock Incentive Plan, with an estimated 3.3% forfeiture rate effective January 1, 2015. Previous estimated forfeiture rates were 2.1% effective October 1, 2014, 2.0% effective April 1, 2014, 2.1% effective January 1, 2014, 2.2% effective July 1, 2013, and 2.3% effective January 1, 2013. The expected volatility of the Company’s stock was calculated based upon the historic monthly fluctuation in stock price for a period approximating the expected life of option grants. The risk-free interest rate is the rate of a five year Treasury security at constant, fixed maturity on the approximate date of the stock option grant. The expected life of outstanding options is determined to be less than the contractual term for a period equal to the aggregate group of option holders’ estimated weighted average time within which options will be exercised. It is the Company’s policy that when stock options are exercised, new common shares shall be issued. The Company recorded $271,669 and $116,686 of expense related to stock options in the three months ended March 31, 2015 and 2014, respectively, and $1,153,494 and $895,980 of expense related to stock options in the nine months ended March 31, 2015 and 2014, respectively. As of March 31, 2015, the Company had 2,701,380 stock options that were vested and that were expected to vest, with a weighted average exercise price of $8.86 per share, an aggregate intrinsic value of $2,484,958 and weighted average remaining contractual terms of 6.3 years. | |||||||||||||||||
Information related to all stock options for the nine months ended March 31, 2015 and 2014 is shown in the following table: | |||||||||||||||||
Nine Months Ended March 31, 2015 | |||||||||||||||||
Weighted | Weighted | Aggregate | |||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | ||||||||||||||||
Contractual Term | |||||||||||||||||
Shares | Price | (in years) | Value | ||||||||||||||
Outstanding at 6/30/14 | 2,677,464 | $ | 9.57 | 5.4 | $ | 1,674,010 | |||||||||||
Granted | 713,323 | $ | 6.76 | ||||||||||||||
Forfeitures | (559,525 | ) | $ | 10.23 | |||||||||||||
Exercised | (103,875 | ) | $ | 6.01 | |||||||||||||
Outstanding at 3/31/15 | 2,727,387 | $ | 8.84 | 6.3 | $ | 2,519,836 | |||||||||||
Exercisable at 3/31/15 | 1,650,439 | $ | 10.15 | 4.5 | $ | 1,099,822 | |||||||||||
Nine Months Ended March 31, 2014 | |||||||||||||||||
Weighted | Weighted | Aggregate | |||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | ||||||||||||||||
Contractual Term | |||||||||||||||||
Shares | Price | (in years) | Value | ||||||||||||||
Outstanding at 6/30/13 | 2,341,150 | $ | 9.95 | 5.6 | $ | 1,544,896 | |||||||||||
Granted | 436,000 | $ | 7.24 | ||||||||||||||
Forfeitures | (25,550 | ) | $ | 10.71 | |||||||||||||
Exercised | (52,611 | ) | $ | 6.27 | |||||||||||||
Outstanding at 3/31/14 | 2,698,989 | $ | 9.58 | 5.6 | $ | 1,934,534 | |||||||||||
Exercisable at 3/31/14 | 1,893,351 | $ | 10.75 | 4.3 | $ | 840,740 | |||||||||||
The following table presents information related to unvested stock options: | |||||||||||||||||
Weighted-Average | |||||||||||||||||
Grant Date | |||||||||||||||||
Shares | Fair Value | ||||||||||||||||
Non-vested at June 30, 2014 | 803,138 | $ | 2.39 | ||||||||||||||
Granted | 713,323 | $ | 3.26 | ||||||||||||||
Vested | (339,763 | ) | $ | 2.29 | |||||||||||||
Forfeited | (99,750 | ) | $ | 2.62 | |||||||||||||
Non-vested at March 31, 2015 | 1,076,948 | $ | 2.98 | ||||||||||||||
The weighted average grant date fair value of options granted during the nine months ended March 31, 2015 and March 31, 2014 were $3.26 and $2.67, respectively. The aggregate intrinsic value of options exercised during the nine months ended March 31, 2015 and 2014 were $126,203 and $127,104, respectively. The aggregate grant date fair value of options that vested during the nine months ended March 31, 2015 and 2014 was $777,436 and $775,937, respectively. The Company received $624,248 and $329,777 of cash from employees who exercised options in the nine month periods ended March 31, 2015 and 2014, respectively. In the first nine months of fiscal 2015 the Company recorded $44,071 as a reduction of federal income taxes payable, $223,003 as a decrease in common stock, $18,473 as a reduction of income tax expense, and $248,601 as a reduction of the deferred tax asset related to the exercises of stock options in which the employees sold the common shares prior to the passage of twelve months from the date of exercise. In the first nine months of fiscal 2014 the Company recorded $43,283 as a reduction of federal income taxes payable, $21,195 as an increase in common stock, $23,621 as a reduction of income tax expense, and $8,045 as a reduction of the deferred tax asset related to the exercises of stock options in which the employees sold the common shares prior to the passage of twelve months from the date of exercise. | |||||||||||||||||
Stock Compensation Awards | |||||||||||||||||
The Company awarded a total of 21,050 and 17,205 common shares in the nine months ended March 31, 2015 and 2014, respectively, as stock compensation awards. These common shares were valued at their approximate $144,000 and $144,000 fair market values based on their stock price at dates of issuance multiplied by the number of common shares awarded, respectively, pursuant to the compensation programs for non-employee directors who receive a portion of their compensation as an award of Company stock and for employees who received a nominal recognition award in the form of company stock. Stock compensation awards are made in the form of newly issued common shares of the Company. | |||||||||||||||||
Deferred Compensation Plan | |||||||||||||||||
The Company has a non-qualified deferred compensation plan providing for both Company contributions and participant deferrals of compensation. This plan is fully funded in a Rabbi Trust. All plan investments are in common shares of the Company. As of March 31, 2015 there were 30 participants, all with fully vested account balances. A total of 321,838 common shares with a cost of $2,986,498, and 307,328 common shares with a cost of $2,914,700 were held in the plan as of March 31, 2015 and June 30, 2014, respectively, and, accordingly, have been recorded as treasury shares. The change in the number of shares held by this plan is the net result of share purchases and sales on the open stock market for compensation deferred into the plan and for distributions to terminated employees. The Company does not issue new common shares for purposes of the non-qualified deferred compensation plan. The Company accounts for assets held in the non-qualified deferred compensation plan in accordance with Accounting Standards Codification Topic 710, Compensation — General. The Company used approximately $165,100 and $165,500 to purchase 23,519 and 22,011 common shares of the Company in the open stock market during the nine months ended March 31, 2015 and 2014, respectively, for either employee salary deferrals or Company contributions into the non-qualified deferred compensation plan. For fiscal year 2015, the Company estimates the Rabbi Trust for the Nonqualified Deferred Compensation Plan will make net repurchases in the range of 26,000 to 28,000 common shares of the Company. The Company does not currently repurchase its own common shares for any other purpose. |
Note_11_Supplemental_Cash_Flow
Note 11 - Supplemental Cash Flow Information | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 11 - SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
(In thousands) | Nine Months Ended | ||||||||
31-Mar | |||||||||
2015 | 2014 | ||||||||
Cash payments: | |||||||||
Interest | $ | 37 | $ | 57 | |||||
Income taxes | $ | 811 | $ | 1,136 | |||||
Issuance of common shares as compensation | $ | 144 | $ | 144 | |||||
Note_12_Commitments_and_Contin
Note 12 - Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 12 - COMMITMENTS AND CONTINGENCIES |
As part of the acquisition of Virticus Corporation on March 19, 2012, a contingent Earn-Out liability of $877,000 was recorded based on the fair value of estimated Earn-Out payments. This discounted liability is to be paid over a five year period, contingent upon reaching certain sales in each year over the five year period (fiscal year 2013 through fiscal year 2017). In fiscal 2013, as a result of modified sales forecasts for LSI Controls (fka, LSI Virticus), the fair value of the Earn-Out liability was adjusted to zero. The $877,000 reversal of the Earn-Out liability was recorded in selling and administrative expenses in Corporate and Eliminations. As of March 31, 2015, the maximum potential undiscounted liability related to the Earn-Out is $3 million. This would be based upon the achievement of a defined level of sales of lighting control systems in fiscal years 2015 through 2017. The likelihood of this occurring is not considered probable. | |
The Company is party to various negotiations, customer bankruptcies, and legal proceedings arising in the normal course of business. The Company provides reserves for these matters when a loss is probable and reasonably estimable. The Company does not disclose a range of potential loss because the likelihood of such a loss is remote. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, results of operations, cash flows or liquidity. | |
The Company may occasionally issue a standby letter of credit in favor of third parties. As of March 31, 2015, there were no standby letter of credit agreements. |
Note_13_Sale_of_Subsidiary
Note 13 - Sale of Subsidiary | 9 Months Ended |
Mar. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 13 – SALE OF SUBSIDIARY |
On September 30, 2014, the Company sold the stock of its wholly owned subsidiary LSI Saco Technologies Inc., located in Montreal, Canada, for $1.9 million cash. The sale resulted in a pre-tax loss of $565,000. As a result of the sale, the Company terminated the $5 million unsecured revolving line of credit for this Canadian operation. LSI Saco reported $41,000 of net customer sales and a $(183,000) operating loss in the first quarter of fiscal 2015 prior to the sale. LSI Saco was reported in the All Other Category. The sale of LSI Saco was not considered the sale of a discontinued operation because the Company migrated most of its manufacturing, research and development, and selling activities from LSI Saco to the Company’s Cincinnati, Ohio location. |
Note_14_Severance_Costs
Note 14 - Severance Costs | 9 Months Ended | ||||
Mar. 31, 2015 | |||||
Disclosure Text Block Supplement [Abstract] | |||||
Compensation and Employee Benefit Plans [Text Block] | NOTE 14 – SEVERANCE COSTS | ||||
Pursuant to a management succession agreement entered into in fiscal 2004 as subsequently amended, the Company’s former Chief Executive Officer, Robert J. Ready, relinquished this title and related management responsibilities when the Company hired and appointed a new Chief Executive Officer in October 2014. Mr. Ready remained on the Company’s Board of Directors until his death in March 2015, but was no longer Chairman of the Board following the November 2014 Annual Meeting of Shareholders. The management succession agreement provided for 18 months of compensation to be paid to Mr. Ready, which resulted in a severance charge in the second quarter of fiscal 2015 of $800,000. Severance payments totaling $224,000 were made in the second and third quarters of fiscal 2015. The remaining $576,000 severance liability was recognized as income when Mr. Ready died in March 2015. Pursuant to the management succession agreement a $1 million self-insured death benefit was accrued in the third quarter of fiscal 2015 for a payment that is expected to be made in the fourth quarter of fiscal 2015 to Mr. Ready’s beneficiary. | |||||
In January 2015, the Company initiated a reduction in force and recorded severance charges of $340,000 and facility exit charges of $21,200 in the third quarter of fiscal 2015. This reduction in force and employee retirements that occurred early in the third quarter of fiscal 2015 represented approximately 8.3% of the Company’s total salaried workforce and approximately $3.7 million of annual total compensation and benefit reductions. | |||||
The fiscal 2015 activity in the Company’s Accrued Severance Liability is as follows for the nine months ended March 31, 2015: | |||||
(In thousands) | |||||
Balance at June 30, 2014 | $ | -- | |||
Accrual of expense | 1,297 | ||||
Payments | (530 | ) | |||
Adjustments | (635 | ) | |||
Balance at March 31, 2015 | $ | 132 | |||
Note_15_Income_Taxes
Note 15 - Income Taxes | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income Tax Disclosure [Text Block] | NOTE 15 – INCOME TAXES | ||||||||||||||||
The Company's effective income tax rate is based on expected income, statutory rates and tax planning opportunities available in the various jurisdictions in which it operates. For interim financial reporting, the Company estimates the annual income tax rate based on projected taxable income for the full year and records a quarterly income tax provision or benefit in accordance with the anticipated annual rate. The Company refines the estimates of the year's taxable income as new information becomes available, including actual year-to-date financial results. This continual estimation process often results in a change to the expected effective income tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected income tax rate. Significant judgment is required in determining the effective tax rate and in evaluating tax positions. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
31-Mar | 31-Mar | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Reconciliation to effective tax rate: | |||||||||||||||||
Provision for income taxes at the anticipated annual tax rate | 45 | % | 23.1 | % | 41.4 | % | 42.2 | % | |||||||||
Impact of foreign operations | -- | 1.8 | (0.2 | ) | (1.8 | ) | |||||||||||
Enactment of tax law changes | -- | -- | (2.6 | ) | -- | ||||||||||||
Valuation allowances | -- | (37.6 | ) | -- | 14.3 | ||||||||||||
Uncertain tax positions | (0.9 | ) | 6.2 | (1.2 | ) | (5.5 | ) | ||||||||||
Other | (12.0 | ) | 1.7 | (3.3 | ) | (0.5 | ) | ||||||||||
Effective tax rate | 32.1 | % | (4.8 | )% | 34.1 | % | 48.7 | % | |||||||||
For the three month period ended March 31, 2015, a reconciling item to the effective tax rate described as “Other” directly relates to a tax benefit that was realized upon filing the fiscal year 2014 Federal income tax return. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Consolidation, Policy [Policy Text Block] | Consolidation: | ||||||||||||
The condensed consolidated financial statements include the accounts of LSI Industries Inc. (an Ohio corporation) and its subsidiaries (collectively, the “Company”), all of which are wholly owned. All intercompany transactions and balances have been eliminated in consolidation. | |||||||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition: | ||||||||||||
Revenue is recognized when title to goods and risk of loss have passed to the customer, there is persuasive evidence of a purchase arrangement, delivery has occurred or services have been rendered, and collectability is reasonably assured. Revenue from product sales is typically recognized at time of shipment. In certain arrangements with customers, as is the case with the sale of some of our solid-state LED (light emitting diode) video screens, revenue is recognized upon customer acceptance of the video screen at the job site. Sales are recorded net of estimated returns, rebates and discounts. Amounts received from customers prior to the recognition of revenue are accounted for as customer pre-payments and are included in accrued expenses. | |||||||||||||
The Company has five sources of revenue: revenue from product sales; revenue from installation of products; service revenue generated from providing integrated design, project and construction management, site engineering and site permitting; revenue from the management of media content and digital hardware related to active digital signage; and revenue from shipping and handling. | |||||||||||||
Product revenue is recognized on product-only orders upon passing of title and risk of loss, generally at time of shipment. However, product revenue related to orders where the customer requires the Company to install the product is recognized when the product is installed. The Company provides product warranties and certain post-shipment service, support and maintenance of certain solid state LED video screens and billboards. | |||||||||||||
Installation revenue is recognized when the products have been fully installed. The Company is not always responsible for installation of products it sells and has no post-installation responsibilities, other than normal warranties. | |||||||||||||
Service revenue from integrated design, project and construction management, and site permitting is recognized when all products at each customer site have been installed. | |||||||||||||
Revenue from the management of media content and digital hardware related to active digital signage is recognized evenly over the service period with the customer. Media content service periods with most customers range from 1 month to 1 year. | |||||||||||||
Shipping and handling revenue coincides with the recognition of revenue from sale of the product. | |||||||||||||
The Company evaluates the appropriateness of revenue recognition in accordance with Accounting Standards Codification (“ASC”) Subtopic 605-25, “Revenue Recognition: Multiple–Element Arrangements.” In situations where the Company is responsible for re-imaging programs with multiple sites, each site is viewed as a separate unit of accounting and has stand-alone value to the customer. Revenue is recognized upon the Company’s complete performance at the location, which may include a site survey, graphics products, lighting products, and installation of products. The selling price assigned to each site is based upon an agreed upon price between the Company and its customer and reflects the estimated selling price for that site relative to the selling price for sites with similar image requirements. | |||||||||||||
The Company also evaluates the appropriateness of revenue recognition in accordance with ASC Subtopic 985-605, “Software: Revenue Recognition.” Our solid-state LED video screens, billboards and active digital signage contain software elements which the Company has determined are incidental and excluded from the scope of ASC Subtopic 985-605. | |||||||||||||
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Credit and Collections: | ||||||||||||
The Company maintains allowances for doubtful accounts receivable for probable estimated losses resulting from either customer disputes or the inability of its customers to make required payments. If the financial condition of the Company’s customers were to deteriorate, resulting in their inability to make the required payments, the Company may be required to record additional allowances or charges against income. The Company determines its allowance for doubtful accounts by first considering all known collectability problems of customers’ accounts, and then applying certain percentages against the various aging categories based on the due date of the remaining receivables. The resulting allowance for doubtful accounts receivable is an estimate based upon the Company’s knowledge of its business and customer base, and historical trends. The Company also establishes allowances, at the time revenue is recognized, for returns, discounts, pricing and other possible customer deductions. These allowances are based upon historical trends. | |||||||||||||
The following table presents the Company’s net accounts receivable at the dates indicated. | |||||||||||||
(In thousands) | March 31, | June 30, | |||||||||||
2015 | 2014 | ||||||||||||
Accounts receivable | $ | 35,841 | $ | 43,047 | |||||||||
less Allowance for doubtful accounts | (438 | ) | (294 | ) | |||||||||
Accounts receivable, net | $ | 35,403 | $ | 42,753 | |||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents: | ||||||||||||
The cash balance includes cash and cash equivalents which have original maturities of less than three months. The Company maintains balances at financial institutions in the United States. The FDIC limit for insurance coverage on non-interest bearing accounts is $250,000. As of March 31, 2015 and June 30, 2014, the Company had bank balances of $29,925,000 and $12,367,000, respectively, without insurance coverage. Of these amounts, $741,000 was held in foreign bank accounts as of June 30, 2014. As a result of the sale of LSI Saco Technologies Inc., there are no longer cash accounts in foreign banks as of March 31, 2015 (See Note 13). | |||||||||||||
Inventory, Policy [Policy Text Block] | Inventories: | ||||||||||||
Inventories are stated at the lower of cost or market. Cost of inventories includes the cost of purchased raw materials and components, direct labor, as well as manufacturing overhead which is generally applied to inventory based on direct labor and material content. Cost is determined on the first-in, first-out basis. | |||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment and Related Depreciation: | ||||||||||||
Property, plant and equipment are stated at cost. Major additions and betterments are capitalized while maintenance and repairs are expensed. For financial reporting purposes, depreciation is computed on the straight-line method over the estimated useful lives of the assets as follows: | |||||||||||||
Buildings | 28 - 40 years | ||||||||||||
Machinery and equipment | 3 - 10 years | ||||||||||||
Computer software | 3 - 8 years | ||||||||||||
Costs related to the purchase, internal development, and implementation of the Company’s fully integrated enterprise resource planning/business operating software system are either capitalized or expensed in accordance with ASC Subtopic 350-40, “Intangibles – Goodwill and Other: Internal-Use Software.” Leasehold improvements are amortized over the shorter of fifteen years or the remaining term of the lease. | |||||||||||||
The Company recorded $1,465,000 and $1,409,000 of depreciation expense in the third quarter of fiscal 2015 and 2014, respectively, and $4,328,000 and $3,972,000 of depreciation expense in the first nine months of fiscal 2015 and 2014, respectively | |||||||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets: | ||||||||||||
Intangible assets consisting of customer relationships, trade names and trademarks, patents, technology and software, and non-compete agreements are recorded on the Company's balance sheet. The definite-lived intangible assets are being amortized to expense over periods ranging between five and twenty years. The Company evaluates definite-lived intangible assets for permanent impairment when triggering events are identified. Neither indefinite-lived intangible assets nor the excess of cost over fair value of assets acquired ("goodwill") are amortized, however they are subject to review for impairment. See additional information about goodwill and intangibles in Note 7. | |||||||||||||
Fair Value Measurement, Policy [Policy Text Block] | Fair Value: | ||||||||||||
The Company has financial instruments consisting primarily of cash and cash equivalents, revolving lines of credit, and on occasion, long-term debt. The fair value of these financial instruments approximates carrying value because of their short-term maturity and/or variable, market-driven interest rates. The Company has no financial instruments with off-balance sheet risk. | |||||||||||||
Fair value measurements of nonfinancial assets and nonfinancial liabilities are primarily used in goodwill and other intangible asset impairment analyses, in the purchase price of acquired companies (if any), and in the valuation of the contingent earn-out. The fair value measurement of these nonfinancial assets and nonfinancial liabilities is based on significant inputs not observable in the market and thus represent Level 3 measurements as defined in ASC 820, “Fair Value Measurement.” | |||||||||||||
Standard Product Warranty, Policy [Policy Text Block] | Product Warranties: | ||||||||||||
The Company offers a limited warranty that its products are free from defects in workmanship and materials. The specific terms and conditions vary somewhat by product line, but generally cover defective products returned within one to five years, with some exceptions where the terms extend to 10 years, from the date of shipment. The Company records warranty liabilities to cover the estimated future costs for repair or replacement of defective returned products as well as products that need to be repaired or replaced in the field after installation. The Company calculates its liability for warranty claims by applying estimates to cover unknown claims, as well as estimating the total amount to be incurred for known warranty issues. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. | |||||||||||||
Changes in the Company’s warranty liabilities, which are included in accrued expenses in the accompanying consolidated balance sheets, during the periods indicated below were as follows: | |||||||||||||
Nine | Nine | Fiscal | |||||||||||
Months Ended | Months Ended | Year Ended | |||||||||||
(In thousands) | March 31, | March 31, | June 30, | ||||||||||
2015 | 2014 | 2014 | |||||||||||
Balance at beginning of the period | $ | 2,662 | $ | 1,424 | $ | 1,424 | |||||||
Additions charged to expense | 2,588 | 2,395 | 3,816 | ||||||||||
Deductions for repairs and replacements | (1,799 | ) | (1,871 | ) | (2,578 | ) | |||||||
Sale of subsidiary | (3 | ) | -- | -- | |||||||||
Balance at end of the period | $ | 3,448 | $ | 1,948 | $ | 2,662 | |||||||
Research, Development, and Computer Software, Policy [Policy Text Block] | Research and Development Costs: | ||||||||||||
Research and development expenses are costs directly attributable to new product development, including the development of new technology for both existing and new products, and consist of salaries, payroll taxes, employee benefits, materials, supplies, depreciation and other administrative costs. The Company follows the requirements of ASC Subtopic 985-20, “Software: Costs of Software to be Sold, Leased, or Marketed,” and expenses as research and development all costs associated with development of software used in solid-state LED products. All costs are expensed as incurred and are included in selling and administrative expenses. Research and development costs related to both product and software development totaled $1,096,000 and $1,973,000 for the three months ended March 31, 2015 and 2014, respectively, and $4,397,000 and $6,054,000 for the nine months ended March 31, 2015 and 2014, respectively. | |||||||||||||
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Common Share: | ||||||||||||
The computation of basic earnings per common share is based on the weighted average common shares outstanding for the period net of treasury shares held in the Company’s non-qualified deferred compensation plan. The computation of diluted earnings per share is based on the weighted average of common shares outstanding for the period and includes common share equivalents. Common share equivalents include the dilutive effect of stock options, contingently issuable shares and common shares to be issued under a deferred compensation plan, all of which totaled 440,000 shares and 306,000 shares for the three months ended March 31, 2015 and 2014, respectively, and 401,000 shares and 472,000 shares for the nine months ended March 31, 2015 and 2014, respectively. See further discussion of earnings per share in Note 4. | |||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements: | ||||||||||||
In July 2013, the Financial Accounting Standards Board issued ASU 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 amended guidance is intended to eliminate the diversity that is in practice with regard to the financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amended guidance is effective for fiscal years and interim periods within those years, beginning after December 15, 2013, or the Company’s fiscal year 2015, with early adoption permissible. The adoption of this guidance did not have a material impact on the financial statements. | |||||||||||||
In September 2013, the Internal Revenue Service issued Treasury Decision 9636, which enacted final tax regulations regarding the capitalization and expensing of amounts paid to acquire, produce, or improve tangible property. The regulations also include guidance regarding the retirement of depreciable property. The regulations are required to be effective in taxable years beginning on or after January 1, 2014, or the Company’s fiscal year 2015. The Company has reviewed the impact of the final regulations and the anticipated impact to the financial statements is not material. | |||||||||||||
In June 2014, the Financial Accounting Standards Board issued ASU 2014-09, “Revenue from Contracts with Customers.” This amended guidance supersedes and replaces all existing U.S. GAAP revenue recognition guidance. The guidance established a new revenue recognition model, changes the basis for deciding when revenue is recognized over a point in time, provides new and more detailed guidance on specific revenue topics, and expands and improves disclosures about revenue. The amended guidance is effective for fiscal years and interim periods within those years, beginning after December 15, 2016, or the Company’s fiscal year 2018. The Company has not yet determined the impact the amended guidance will have on its financial statements. | |||||||||||||
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income: | ||||||||||||
The Company does not have any comprehensive income items other than net income (loss). The functional currency of the Company’s former Canadian operation was the U.S. dollar. | |||||||||||||
Subsequent Events, Policy [Policy Text Block] | Subsequent Events: | ||||||||||||
The Company has evaluated subsequent events for potential recognition and disclosure through the date the condensed consolidated financial statements were filed. No items were identified during this evaluation that required adjustment to or disclosure in the accompanying financial statements. | |||||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates: | ||||||||||||
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Note_2_Summary_of_Significant_1
Note 2- Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (In thousands) | March 31, | June 30, | ||||||||||
2015 | 2014 | ||||||||||||
Accounts receivable | $ | 35,841 | $ | 43,047 | |||||||||
less Allowance for doubtful accounts | (438 | ) | (294 | ) | |||||||||
Accounts receivable, net | $ | 35,403 | $ | 42,753 | |||||||||
Property, Plant and Equipment [Table Text Block] | Buildings | 28 - 40 years | |||||||||||
Machinery and equipment | 3 - 10 years | ||||||||||||
Computer software | 3 - 8 years | ||||||||||||
Schedule of Product Warranty Liability [Table Text Block] | Nine | Nine | Fiscal | ||||||||||
Months Ended | Months Ended | Year Ended | |||||||||||
(In thousands) | March 31, | March 31, | June 30, | ||||||||||
2015 | 2014 | 2014 | |||||||||||
Balance at beginning of the period | $ | 2,662 | $ | 1,424 | $ | 1,424 | |||||||
Additions charged to expense | 2,588 | 2,395 | 3,816 | ||||||||||
Deductions for repairs and replacements | (1,799 | ) | (1,871 | ) | (2,578 | ) | |||||||
Sale of subsidiary | (3 | ) | -- | -- | |||||||||
Balance at end of the period | $ | 3,448 | $ | 1,948 | $ | 2,662 |
Note_3_Segment_Reporting_Infor1
Note 3- Segment Reporting Information (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended | Nine Months Ended | |||||||||||||||
(In thousands) | 31-Mar | 31-Mar | |||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net Sales: | |||||||||||||||||
Lighting Segment | $ | 48,865 | $ | 52,553 | $ | 164,382 | $ | 167,595 | |||||||||
Graphics Segment | 13,363 | 10,638 | 49,656 | 40,367 | |||||||||||||
Technology Segment | 6,375 | 5,520 | 17,705 | 16,482 | |||||||||||||
All Other Category | -- | 285 | 41 | 1,161 | |||||||||||||
$ | 68,603 | $ | 68,996 | $ | 231,784 | $ | 225,605 | ||||||||||
Operating Income (Loss): | |||||||||||||||||
Lighting Segment | $ | 2,913 | $ | 2,219 | $ | 11,230 | $ | 8,680 | |||||||||
Graphics Segment | (320 | ) | (1,577 | ) | 798 | (1,150 | ) | ||||||||||
Technology Segment | 855 | 108 | 1,986 | 1,628 | |||||||||||||
All Other Category | -- | (231 | ) | (183 | ) | (642 | ) | ||||||||||
Corporate and Eliminations | (2,866 | ) | (1,465 | ) | (8,491 | ) | (5,112 | ) | |||||||||
$ | 582 | $ | (946 | ) | $ | 5,340 | $ | 3,404 | |||||||||
Capital Expenditures: | |||||||||||||||||
Lighting Segment | $ | 319 | $ | 1,605 | $ | 1,529 | $ | 2,792 | |||||||||
Graphics Segment | 29 | 127 | 935 | 361 | |||||||||||||
Technology Segment | 97 | 72 | 448 | 555 | |||||||||||||
All Other Category | -- | -- | 4 | 39 | |||||||||||||
Corporate and Eliminations | 437 | 3 | 523 | 781 | |||||||||||||
$ | 882 | $ | 1,807 | $ | 3,439 | $ | 4,528 | ||||||||||
Depreciation and Amortization: | |||||||||||||||||
Lighting Segment | $ | 778 | $ | 688 | $ | 2,229 | $ | 2,062 | |||||||||
Graphics Segment | 262 | 246 | 768 | 704 | |||||||||||||
Technology Segment | 281 | 395 | 944 | 1,163 | |||||||||||||
All Other Category | -- | 42 | 31 | 119 | |||||||||||||
Corporate and Eliminations | 269 | 243 | 756 | 535 | |||||||||||||
$ | 1,590 | $ | 1,614 | $ | 4,728 | $ | 4,583 | ||||||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | March 31, | June 30, | |||||||||||||||
2015 | 2014 | ||||||||||||||||
Identifiable Assets: | |||||||||||||||||
Lighting Segment | $ | 84,367 | $ | 93,847 | |||||||||||||
Graphics Segment | 26,384 | 24,425 | |||||||||||||||
Technology Segment | 31,081 | 33,440 | |||||||||||||||
All Other Category | -- | 2,860 | |||||||||||||||
Corporate and Eliminations | 32,366 | 15,316 | |||||||||||||||
$ | 174,198 | $ | 169,888 | ||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended | Nine Months Ended | |||||||||||||||
31-Mar | 31-Mar | ||||||||||||||||
(In thousands) | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Lighting Segment inter-segment net sales | $ | 533 | $ | 486 | $ | 2,030 | $ | 2,379 | |||||||||
Graphics Segment inter-segment net sales | $ | 132 | $ | 482 | $ | 388 | $ | 921 | |||||||||
Technology Segment inter-segment net sales | $ | 6,788 | $ | 8,116 | $ | 21,735 | $ | 26,070 | |||||||||
All Other Category inter-segment net sales | $ | -- | $ | 795 | $ | 308 | $ | 1,781 | |||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended | Nine Months Ended | |||||||||||||||
(In thousands) | 31-Mar | 31-Mar | |||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Net Sales (a): | |||||||||||||||||
United States | $ | 68,603 | $ | 68,711 | $ | 231,743 | $ | 224,444 | |||||||||
Canada | -- | 285 | 41 | 1,161 | |||||||||||||
$ | 68,603 | $ | 68,996 | $ | 231,784 | $ | 225,605 | ||||||||||
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | March 31, | June 30, | |||||||||||||||
2015 | 2014 | ||||||||||||||||
Long-lived Assets (b): | |||||||||||||||||
United States | $ | 45,208 | $ | 45,886 | |||||||||||||
Canada | -- | 190 | |||||||||||||||
$ | 45,208 | $ | 46,076 |
Note_4_Earnings_Per_Common_Sha1
Note 4 - Earnings Per Common Share (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended | Nine Months Ended | |||||||||||||||
31-Mar | 31-Mar | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
BASIC EARNINGS (LOSS) PER SHARE | |||||||||||||||||
Net income (loss) | $ | 393 | $ | (1,009 | ) | $ | 3,508 | $ | 1,726 | ||||||||
Weighted average shares outstanding during the period, net of treasury shares (a) | 24,203 | 24,095 | 24,149 | 24,073 | |||||||||||||
Weighted average shares outstanding in the Deferred Compensation Plan during the period | 325 | 306 | 321 | 303 | |||||||||||||
Weighted average shares outstanding | 24,528 | 24,401 | 24,470 | 24,376 | |||||||||||||
Basic earnings (loss) per share | $ | 0.02 | $ | (0.04 | ) | $ | 0.14 | $ | 0.07 | ||||||||
DILUTED EARNINGS (LOSS) PER SHARE | |||||||||||||||||
Net income (loss) | $ | 393 | $ | (1,009 | ) | $ | 3,508 | $ | 1,726 | ||||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 24,528 | 24,401 | 24,470 | 24,376 | |||||||||||||
Effect of dilutive securities (b): | |||||||||||||||||
Impact of common shares to be issued under stock option plans, and contingently issuable shares, if any | 115 | -- | 80 | 169 | |||||||||||||
Weighted average shares outstanding (c) | 24,643 | 24,401 | 24,550 | 24,545 | |||||||||||||
Diluted earnings (loss) per share | $ | 0.02 | $ | (0.04 | ) | $ | 0.14 | $ | 0.07 |
Note_5_Inventories_Tables
Note 5 - Inventories (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory, Current [Table Text Block] | March 31, | June 30, | |||||||
(In thousands) | 2015 | 2014 | |||||||
Inventories: | |||||||||
Raw materials | $ | 27,832 | $ | 30,278 | |||||
Work-in-process | 4,913 | 5,393 | |||||||
Finished goods | 9,838 | 9,737 | |||||||
Total Inventories | $ | 42,583 | $ | 45,408 |
Note_6_Accrued_Expenses_Tables
Note 6 - Accrued Expenses (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | March 31, | June 30, | |||||||
(In thousands) | 2015 | 2014 | |||||||
Accrued Expenses: | |||||||||
Compensation and benefits | $ | 10,728 | $ | 7,134 | |||||
Customer prepayments | 848 | 1,473 | |||||||
Accrued sales commissions | 1,424 | 1,814 | |||||||
Accrued warranty | 3,448 | 2,662 | |||||||
Other accrued expenses | 2,822 | 2,548 | |||||||
Total Accrued Expenses | $ | 19,270 | $ | 15,631 |
Note_7_Goodwill_and_Other_Inta1
Note 7 - Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | Goodwill | ||||||||||||||||||||
(In thousands) | Lighting | Graphics | Technology | All Other | |||||||||||||||||
Segment | Segment | Segment | Category | Total | |||||||||||||||||
Balance as of June 30, 2014 | |||||||||||||||||||||
Goodwill | $ | 34,913 | $ | 28,690 | $ | 11,621 | $ | 3,119 | $ | 78,343 | |||||||||||
Accumulated impairment losses | (34,778 | ) | (27,525 | ) | (2,413 | ) | (3,119 | ) | (67,835 | ) | |||||||||||
Goodwill, net as of June 30, 2014 | 135 | 1,165 | 9,208 | -- | 10,508 | ||||||||||||||||
Sale of LSI Saco | |||||||||||||||||||||
Goodwill | -- | -- | -- | (3,119 | ) | (3,119 | ) | ||||||||||||||
Accumulated impairment losses | -- | -- | -- | 3,119 | 3,119 | ||||||||||||||||
-- | -- | -- | -- | -- | |||||||||||||||||
Balance as of March 31, 2015 | |||||||||||||||||||||
Goodwill | 34,913 | 28,690 | 11,621 | -- | 75,224 | ||||||||||||||||
Accumulated impairment losses | (34,778 | ) | (27,525 | ) | (2,413 | ) | -- | (64,716 | ) | ||||||||||||
Goodwill, net as of December 31, 2014 | $ | 135 | $ | 1,165 | $ | 9,208 | $ | -- | $ | 10,508 | |||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | 31-Mar-15 | ||||||||||||||||||||
Other Intangible Assets | Gross | ||||||||||||||||||||
(In thousands) | Carrying | Accumulated | Net | ||||||||||||||||||
Amount | Amortization | Amount | |||||||||||||||||||
Amortized Intangible Assets | |||||||||||||||||||||
Customer relationships | $ | 9,316 | $ | 7,216 | $ | 2,100 | |||||||||||||||
Patents | 338 | 111 | 227 | ||||||||||||||||||
LED technology firmware, software | 11,228 | 10,891 | 337 | ||||||||||||||||||
Trade name | 460 | 460 | -- | ||||||||||||||||||
Non-compete agreements | 710 | 577 | 133 | ||||||||||||||||||
Total Amortized Intangible Assets | 22,052 | 19,255 | 2,797 | ||||||||||||||||||
Indefinite-lived Intangible Assets | |||||||||||||||||||||
Trademarks and trade names | 3,422 | -- | 3,422 | ||||||||||||||||||
Total Indefinite-lived Intangible Assets | 3,422 | -- | 3,422 | ||||||||||||||||||
Total Other Intangible Assets | $ | 25,474 | $ | 19,255 | $ | 6,219 | |||||||||||||||
30-Jun-14 | |||||||||||||||||||||
Gross | |||||||||||||||||||||
Carrying | Accumulated | Net | |||||||||||||||||||
(In thousands) | Amount | Amortization | Amount | ||||||||||||||||||
Amortized Intangible Assets | |||||||||||||||||||||
Customer relationships | $ | 10,352 | $ | 7,412 | $ | 2,940 | |||||||||||||||
Patents | 338 | 84 | 254 | ||||||||||||||||||
LED technology firmware, software | 11,228 | 10,832 | 396 | ||||||||||||||||||
Trade name | 460 | 454 | 6 | ||||||||||||||||||
Non-compete agreements | 710 | 501 | 209 | ||||||||||||||||||
Total Amortized Intangible Assets | 23,088 | 19,283 | 3,805 | ||||||||||||||||||
Indefinite-lived Intangible Assets | |||||||||||||||||||||
Trademarks and trade names | 3,422 | -- | 3,422 | ||||||||||||||||||
Total Indefinite-lived Intangible Assets | 3,422 | -- | 3,422 | ||||||||||||||||||
Total Other Intangible Assets | $ | 26,510 | $ | 19,283 | $ | 7,227 | |||||||||||||||
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | (In thousands) | Amortization Expense of | |||||||||||||||||||
Other Intangible Assets | |||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | ||||||||||||||||||||
Three Months Ended | $ | 125 | $ | 205 | |||||||||||||||||
Nine Months Ended | $ | 400 | $ | 611 | |||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (In thousands) | ||||||||||||||||||||
2015 | $ | 525 | |||||||||||||||||||
2016 | $ | 505 | |||||||||||||||||||
2017 | $ | 409 | |||||||||||||||||||
2018 | $ | 400 | |||||||||||||||||||
2019 | $ | 400 | |||||||||||||||||||
After 2019 | $ | 958 |
Note_10_Equity_Compensation_Ta
Note 10 - Equity Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended | Nine Months Ended | |||||||||||||||
31-Mar | 31-Mar | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Dividend yield | 0.83 | % | 2.84 | % | 1.11 | % | 3.32 | % | |||||||||
Expected volatility | 53 | % | 60 | % | 56 | % | 53 | % | |||||||||
Risk-free interest rate | 1.57 | % | 1.71 | % | 1.63 | % | 1.66 | % | |||||||||
Expected life | 6.0 yrs. | 5.5 yrs. | 6.0 yrs. | 5.5 yrs. | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Nine Months Ended March 31, 2015 | ||||||||||||||||
Weighted | Weighted | Aggregate | |||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | ||||||||||||||||
Contractual Term | |||||||||||||||||
Shares | Price | (in years) | Value | ||||||||||||||
Outstanding at 6/30/14 | 2,677,464 | $ | 9.57 | 5.4 | $ | 1,674,010 | |||||||||||
Granted | 713,323 | $ | 6.76 | ||||||||||||||
Forfeitures | (559,525 | ) | $ | 10.23 | |||||||||||||
Exercised | (103,875 | ) | $ | 6.01 | |||||||||||||
Outstanding at 3/31/15 | 2,727,387 | $ | 8.84 | 6.3 | $ | 2,519,836 | |||||||||||
Exercisable at 3/31/15 | 1,650,439 | $ | 10.15 | 4.5 | $ | 1,099,822 | |||||||||||
Nine Months Ended March 31, 2014 | |||||||||||||||||
Weighted | Weighted | Aggregate | |||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | ||||||||||||||||
Contractual Term | |||||||||||||||||
Shares | Price | (in years) | Value | ||||||||||||||
Outstanding at 6/30/13 | 2,341,150 | $ | 9.95 | 5.6 | $ | 1,544,896 | |||||||||||
Granted | 436,000 | $ | 7.24 | ||||||||||||||
Forfeitures | (25,550 | ) | $ | 10.71 | |||||||||||||
Exercised | (52,611 | ) | $ | 6.27 | |||||||||||||
Outstanding at 3/31/14 | 2,698,989 | $ | 9.58 | 5.6 | $ | 1,934,534 | |||||||||||
Exercisable at 3/31/14 | 1,893,351 | $ | 10.75 | 4.3 | $ | 840,740 | |||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | Weighted-Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Shares | Fair Value | ||||||||||||||||
Non-vested at June 30, 2014 | 803,138 | $ | 2.39 | ||||||||||||||
Granted | 713,323 | $ | 3.26 | ||||||||||||||
Vested | (339,763 | ) | $ | 2.29 | |||||||||||||
Forfeited | (99,750 | ) | $ | 2.62 | |||||||||||||
Non-vested at March 31, 2015 | 1,076,948 | $ | 2.98 |
Note_11_Supplemental_Cash_Flow1
Note 11 - Supplemental Cash Flow Information (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | (In thousands) | Nine Months Ended | |||||||
31-Mar | |||||||||
2015 | 2014 | ||||||||
Cash payments: | |||||||||
Interest | $ | 37 | $ | 57 | |||||
Income taxes | $ | 811 | $ | 1,136 | |||||
Issuance of common shares as compensation | $ | 144 | $ | 144 |
Note_14_Severance_Costs_Tables
Note 14 - Severance Costs (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Note 14 - Severance Costs (Tables) [Line Items] | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | March 31, | June 30, | |||||||
(In thousands) | 2015 | 2014 | |||||||
Accrued Expenses: | |||||||||
Compensation and benefits | $ | 10,728 | $ | 7,134 | |||||
Customer prepayments | 848 | 1,473 | |||||||
Accrued sales commissions | 1,424 | 1,814 | |||||||
Accrued warranty | 3,448 | 2,662 | |||||||
Other accrued expenses | 2,822 | 2,548 | |||||||
Total Accrued Expenses | $ | 19,270 | $ | 15,631 | |||||
Employee Severance [Member] | |||||||||
Note 14 - Severance Costs (Tables) [Line Items] | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | (In thousands) | ||||||||
Balance at June 30, 2014 | $ | -- | |||||||
Accrual of expense | 1,297 | ||||||||
Payments | (530 | ) | |||||||
Adjustments | (635 | ) | |||||||
Balance at March 31, 2015 | $ | 132 |
Note_15_Income_Taxes_Tables
Note 15 - Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Three Months Ended | Nine Months Ended | |||||||||||||||
31-Mar | 31-Mar | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Reconciliation to effective tax rate: | |||||||||||||||||
Provision for income taxes at the anticipated annual tax rate | 45 | % | 23.1 | % | 41.4 | % | 42.2 | % | |||||||||
Impact of foreign operations | -- | 1.8 | (0.2 | ) | (1.8 | ) | |||||||||||
Enactment of tax law changes | -- | -- | (2.6 | ) | -- | ||||||||||||
Valuation allowances | -- | (37.6 | ) | -- | 14.3 | ||||||||||||
Uncertain tax positions | (0.9 | ) | 6.2 | (1.2 | ) | (5.5 | ) | ||||||||||
Other | (12.0 | ) | 1.7 | (3.3 | ) | (0.5 | ) | ||||||||||
Effective tax rate | 32.1 | % | (4.8 | )% | 34.1 | % | 48.7 | % |
Note_2_Summary_of_Significant_2
Note 2- Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | |
Note 2- Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Cash, FDIC Insured Amount | $250,000 | $250,000 | |||
Cash, Uninsured Amount | 29,925,000 | 29,925,000 | 12,367,000 | ||
Depreciation | 1,465,000 | 1,409,000 | 4,328,000 | 3,972,000 | |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Asset | 0 | 0 | |||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Liability | 0 | 0 | |||
Research and Development Expense | 1,096,000 | 1,973,000 | 4,397,000 | 6,054,000 | |
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares (in Shares) | 440,000 | 306,000 | 401,000 | 472,000 | |
Product Warranty Exceptions [Member] | Maximum [Member] | |||||
Note 2- Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Standard Warranty Term | 10 years | ||||
Leasehold Improvements [Member] | Maximum [Member] | |||||
Note 2- Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 15 years | ||||
Maximum [Member] | |||||
Note 2- Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||||
Standard Warranty Term | 5 years | ||||
Minimum [Member] | |||||
Note 2- Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||
Standard Warranty Term | 1 year | ||||
Foreign Bank Accounts [Member] | |||||
Note 2- Summary of Significant Accounting Policies (Details) [Line Items] | |||||
Cash, Uninsured Amount | $0 | $0 | $741,000 |
Note_2_Summary_of_Significant_3
Note 2- Summary of Significant Accounting Policies (Details) - Net Accounts Receivable (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Net Accounts Receivable [Abstract] | ||
Accounts receivable | $35,841 | $43,047 |
less Allowance for doubtful accounts | -438 | -294 |
Accounts receivable, net | $35,403 | $42,753 |
Note_2_Summary_of_Significant_4
Note 2- Summary of Significant Accounting Policies (Details) - Estimated Useful Lives of Long-lived Assets | 9 Months Ended |
Mar. 31, 2015 | |
Building [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment - estimated useful lives | 28 |
Building [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment - estimated useful lives | 40 |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment - estimated useful lives | 3 |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment - estimated useful lives | 10 |
Software and Software Development Costs [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment - estimated useful lives | 3 |
Software and Software Development Costs [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment - estimated useful lives | 8 |
Note_2_Summary_of_Significant_5
Note 2- Summary of Significant Accounting Policies (Details) - Warranty Liabilities (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 |
Warranty Liabilities [Abstract] | |||
Balance at beginning of the period | $2,662 | $1,424 | $1,424 |
Additions charged to expense | 2,588 | 2,395 | 3,816 |
Deductions for repairs and replacements | -1,799 | -1,871 | -2,578 |
Sale of subsidiary | -3 | ||
Balance at end of the period | $3,448 | $1,948 | $2,662 |
Note_3_Segment_Reporting_Infor2
Note 3- Segment Reporting Information (Details) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | |
Note 3- Segment Reporting Information (Details) [Line Items] | ||||||
Number of Operating Segments | 3 | |||||
Intersegment Revenue, Mark-up, Percentange | 10.00% | |||||
CANADA | ||||||
Note 3- Segment Reporting Information (Details) [Line Items] | ||||||
Number of Operating Segments | 1 | |||||
Sales Revenue, Net [Member] | ||||||
Note 3- Segment Reporting Information (Details) [Line Items] | ||||||
Concentration Risk, Percentage | 0.00% | 0.00% | 0.00% | 0.00% | ||
Accounts Receivable [Member] | ||||||
Note 3- Segment Reporting Information (Details) [Line Items] | ||||||
Concentration Risk, Percentage | 0.00% | 0.00% |
Note_3_Segment_Reporting_Infor3
Note 3- Segment Reporting Information (Details) - Summarized Financial Information by Reportable Business Segments (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |||||
Segment Reporting Information [Line Items] | ||||||||
Net Sales | $68,603,000 | [1] | $68,996,000 | [1] | $231,784,000 | [1] | $225,605,000 | [1] |
Operating Income (Loss) | 582,000 | -946,000 | 5,340,000 | 3,404,000 | ||||
Capital Expenditures | 882,000 | 1,807,000 | 3,439,000 | 4,528,000 | ||||
Depreciation and Amortization | 1,590,000 | 1,614,000 | 4,728,000 | 4,583,000 | ||||
Lighting Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Sales | 48,865,000 | 52,553,000 | 164,382,000 | 167,595,000 | ||||
Operating Income (Loss) | 2,913,000 | 2,219,000 | 11,230,000 | 8,680,000 | ||||
Capital Expenditures | 319,000 | 1,605,000 | 1,529,000 | 2,792,000 | ||||
Depreciation and Amortization | 778,000 | 688,000 | 2,229,000 | 2,062,000 | ||||
Graphics Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Sales | 13,363,000 | 10,638,000 | 49,656,000 | 40,367,000 | ||||
Operating Income (Loss) | -320,000 | -1,577,000 | 798,000 | -1,150,000 | ||||
Capital Expenditures | 29,000 | 127,000 | 935,000 | 361,000 | ||||
Depreciation and Amortization | 262,000 | 246,000 | 768,000 | 704,000 | ||||
Technology Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Sales | 6,375,000 | 5,520,000 | 17,705,000 | 16,482,000 | ||||
Operating Income (Loss) | 855,000 | 108,000 | 1,986,000 | 1,628,000 | ||||
Capital Expenditures | 97,000 | 72,000 | 448,000 | 555,000 | ||||
Depreciation and Amortization | 281,000 | 395,000 | 944,000 | 1,163,000 | ||||
All Other Category [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net Sales | 285,000 | 41,000 | 1,161,000 | |||||
Operating Income (Loss) | -231,000 | -183,000 | -642,000 | |||||
Capital Expenditures | 4,000 | 39,000 | ||||||
Depreciation and Amortization | 42,000 | 31,000 | 119,000 | |||||
Corporate and Eliminations [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating Income (Loss) | -2,866,000 | -1,465,000 | -8,491,000 | -5,112,000 | ||||
Capital Expenditures | 437,000 | 3,000 | 523,000 | 781,000 | ||||
Depreciation and Amortization | $269,000 | $243,000 | $756,000 | $535,000 | ||||
[1] | Net sales are attributed to geographic areas based upon the location of the operation making the sale. |
Note_3_Segment_Reporting_Infor4
Note 3- Segment Reporting Information (Details) - Identifiable Assets by Segment (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Identifiable Assets: | ||
Identifiable Assets | $174,198 | $169,888 |
Lighting Segment [Member] | ||
Identifiable Assets: | ||
Identifiable Assets | 84,367 | 93,847 |
Graphics Segment [Member] | ||
Identifiable Assets: | ||
Identifiable Assets | 26,384 | 24,425 |
Technology Segment [Member] | ||
Identifiable Assets: | ||
Identifiable Assets | 31,081 | 33,440 |
All Other Category [Member] | ||
Identifiable Assets: | ||
Identifiable Assets | 2,860 | |
Corporate and Eliminations [Member] | ||
Identifiable Assets: | ||
Identifiable Assets | $32,366 | $15,316 |
Note_3_Segment_Reporting_Infor5
Note 3- Segment Reporting Information (Details) - Inter-segment Revenues (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||
Inter-segment net sales | $68,603,000 | [1] | $68,996,000 | [1] | $231,784,000 | [1] | $225,605,000 | [1] |
Intersegment Eliminations [Member] | Lighting Segment [Member] | ||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||
Inter-segment net sales | 533,000 | 486,000 | 2,030,000 | 2,379,000 | ||||
Intersegment Eliminations [Member] | Graphics Segment [Member] | ||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||
Inter-segment net sales | 132,000 | 482,000 | 388,000 | 921,000 | ||||
Intersegment Eliminations [Member] | Technology Segment [Member] | ||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||
Inter-segment net sales | 6,788,000 | 8,116,000 | 21,735,000 | 26,070,000 | ||||
Intersegment Eliminations [Member] | All Other Category [Member] | ||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||
Inter-segment net sales | 795,000 | 308,000 | 1,781,000 | |||||
Lighting Segment [Member] | ||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||
Inter-segment net sales | 48,865,000 | 52,553,000 | 164,382,000 | 167,595,000 | ||||
Graphics Segment [Member] | ||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||
Inter-segment net sales | 13,363,000 | 10,638,000 | 49,656,000 | 40,367,000 | ||||
Technology Segment [Member] | ||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||
Inter-segment net sales | 6,375,000 | 5,520,000 | 17,705,000 | 16,482,000 | ||||
All Other Category [Member] | ||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||
Inter-segment net sales | $285,000 | $41,000 | $1,161,000 | |||||
[1] | Net sales are attributed to geographic areas based upon the location of the operation making the sale. |
Note_3_Segment_Reporting_Infor6
Note 3- Segment Reporting Information (Details) - Revenue by Geographic Region (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |||||
Net Sales (a): | ||||||||
Net Sales | $68,603,000 | [1] | $68,996,000 | [1] | $231,784,000 | [1] | $225,605,000 | [1] |
UNITED STATES | ||||||||
Net Sales (a): | ||||||||
Net Sales | 68,603,000 | [1] | 68,711,000 | [1] | 231,743,000 | [1] | 224,444,000 | [1] |
CANADA | ||||||||
Net Sales (a): | ||||||||
Net Sales | [1] | $285,000 | [1] | $41,000 | [1] | $1,161,000 | [1] | |
[1] | Net sales are attributed to geographic areas based upon the location of the operation making the sale. |
Note_3_Segment_Reporting_Infor7
Note 3- Segment Reporting Information (Details) - Long-lived Assets by Geographical Region (USD $) | Mar. 31, 2015 | Jun. 30, 2014 | ||
In Thousands, unless otherwise specified | ||||
Long-lived Assets (b): | ||||
Assets by Geographic Region | $45,208 | [1] | $46,076 | [1] |
UNITED STATES | ||||
Long-lived Assets (b): | ||||
Assets by Geographic Region | 45,208 | [1] | 45,886 | [1] |
CANADA | ||||
Long-lived Assets (b): | ||||
Assets by Geographic Region | [1] | $190 | [1] | |
[1] | Long-lived assets include property, plant and equipment, and other long-term assets. Goodwill and intangible assets are not included in long-lived assets. |
Note_4_Earnings_Per_Common_Sha2
Note 4 - Earnings Per Common Share (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,729,273 | 1,235,650 | 2,272,823 | 1,687,650 |
Note_4_Earnings_Per_Common_Sha3
Note 4 - Earnings Per Common Share (Details) - Basic and Diluted Earnings Per Share (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | ||||
BASIC EARNINGS (LOSS) PER SHARE | ||||||||
Net income (in Dollars) | $393 | ($1,009) | $3,508 | $1,726 | ||||
Weighted average shares outstanding | ||||||||
Impact of common shares to be issued under stock option plans, and contingently issuable shares, if any | 115 | [1] | [1] | 80 | [1] | 169 | [1] | |
Weighted average shares outstanding (c) | 24,643 | [2] | 24,401 | [2] | 24,550 | [2] | 24,545 | [2] |
Diluted earnings (loss) per share (in Dollars per share) | $0.02 | ($0.04) | $0.14 | $0.07 | ||||
Weighted average shares outstanding - basic | 24,528 | 24,401 | 24,470 | 24,376 | ||||
Basic earnings (loss) per share (in Dollars per share) | $0.02 | ($0.04) | $0.14 | $0.07 | ||||
Weighted average shares outstanding in the Deferred Compensation Plan during the period | 325 | 306 | 321 | 303 | ||||
Net of Treasury Shares [Member] | ||||||||
Weighted average shares outstanding | ||||||||
Weighted average shares outstanding - basic | 24,203 | [3] | 24,095 | [3] | 24,149 | [3] | 24,073 | [3] |
[1] | Calculated using the "Treasury Stock" method as if dilutive securities were exercised and the funds were used to purchase common shares at the average market price during the period. | |||||||
[2] | Options to purchase 1,729,273 common shares and 1,235,650 common shares at March 31, 2015 and 2014, respectively, and options to purchase 2,272,823 common shares and 1,687,650 common shares at March 31, 2015 and 2014, respectively, were not included in the computation of the three month and nine month periods for diluted earnings per share, respectively, because the exercise price was greater than the average fair market value of the common shares. | |||||||
[3] | Includes shares accounted for like treasury stock in accordance with Accounting Standards Codification Topic 710, Compensation - General. |
Note_5_Inventories_Details_Inv
Note 5 - Inventories (Details) - Inventory (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Inventories: | ||
Raw materials | $27,832 | $30,278 |
Work-in-process | 4,913 | 5,393 |
Finished goods | 9,838 | 9,737 |
Total Inventories | $42,583 | $45,408 |
Note_6_Accrued_Expenses_Detail
Note 6 - Accrued Expenses (Details) - Accrued Expenses (USD $) | Mar. 31, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||||
Accrued Expenses [Abstract] | ||||
Compensation and benefits | $10,728 | $7,134 | ||
Customer prepayments | 848 | 1,473 | ||
Accrued sales commissions | 1,424 | 1,814 | ||
Accrued warranty | 3,448 | 2,662 | 1,948 | 1,424 |
Other accrued expenses | 2,822 | 2,548 | ||
Total Accrued Expenses | $19,270 | $15,631 |
Note_7_Goodwill_and_Other_Inta2
Note 7 - Goodwill and Other Intangible Assets (Details) (USD $) | 8 Months Ended | |||
Mar. 02, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Note 7 - Goodwill and Other Intangible Assets (Details) [Line Items] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $0 | |||
Indefinite-lived Intangible Assets Impairment Testing Value above Carrying Value | 6,600,000 | |||
Indefinite-lived Intangible Assets Impairment Testing Percent Value above Carrying Value | 192.00% | |||
Finite-Lived Intangible Assets, Gross | 22,052,000 | 23,088,000 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 19,255,000 | 19,283,000 | ||
Lighting Segment [Member] | ||||
Note 7 - Goodwill and Other Intangible Assets (Details) [Line Items] | ||||
Goodwill Impairment Testing, Value Above Carrying Value | 36,200,000 | |||
Goodwill Impairment Testing, Percent Value Above Carrying Value | 45.00% | |||
Graphics Segment [Member] | ||||
Note 7 - Goodwill and Other Intangible Assets (Details) [Line Items] | ||||
Goodwill Impairment Testing, Value Above Carrying Value | 4,000,000 | |||
Goodwill Impairment Testing, Percent Value Above Carrying Value | 344.00% | |||
Technology Segment [Member] | ||||
Note 7 - Goodwill and Other Intangible Assets (Details) [Line Items] | ||||
Goodwill Impairment Testing, Value Above Carrying Value | 14,900,000 | |||
Goodwill Impairment Testing, Percent Value Above Carrying Value | 58.00% | |||
LSI Saco [Member] | Customer Relationships [Member] | ||||
Note 7 - Goodwill and Other Intangible Assets (Details) [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 1,036,000 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 428,000 | |||
Customer Relationships [Member] | ||||
Note 7 - Goodwill and Other Intangible Assets (Details) [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 9,316,000 | 10,352,000 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $7,216,000 | $7,412,000 |
Note_7_Goodwill_and_Other_Inta3
Note 7 - Goodwill and Other Intangible Assets (Details) - Goodwill (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Jun. 30, 2014 |
Goodwill [Line Items] | ||
Goodwill | $75,224 | $78,343 |
Accumulated impairment Losses | -64,716 | -67,835 |
Net Goodwill | 10,508 | 10,508 |
Lighting Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 34,913 | 34,913 |
Accumulated impairment Losses | -34,778 | -34,778 |
Net Goodwill | 135 | 135 |
Graphics Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 28,690 | 28,690 |
Accumulated impairment Losses | -27,525 | -27,525 |
Net Goodwill | 1,165 | 1,165 |
Technology Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 11,621 | 11,621 |
Accumulated impairment Losses | -2,413 | -2,413 |
Net Goodwill | 9,208 | 9,208 |
All Other Category [Member] | LSI Saco [Member] | ||
Goodwill [Line Items] | ||
Goodwill | -3,119 | |
Accumulated impairment losses | 3,119 | |
All Other Category [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 3,119 | |
Accumulated impairment Losses | -3,119 | |
LSI Saco [Member] | ||
Goodwill [Line Items] | ||
Goodwill | -3,119 | |
Accumulated impairment losses | $3,119 |
Note_7_Goodwill_and_Other_Inta4
Note 7 - Goodwill and Other Intangible Assets (Details) - Other Intangible Assets (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
Amortized Intangible Assets | ||
Amortized Intangible Assets, Gross | $22,052,000 | $23,088,000 |
Amortized Intangible Assets, Accumulated Amortization | 19,255,000 | 19,283,000 |
Amortized Intangible Assets, Net | 2,797,000 | 3,805,000 |
Indefinite-lived Intangible Assets | ||
Indefinite-lived Intangible Assets, Gross | 3,422,000 | 3,422,000 |
Indefinite-lived Intangible Assets, Net | 3,422,000 | 3,422,000 |
Intangible Assets, Gross | 25,474,000 | 26,510,000 |
Intangible Assets, Accumulated Amortization | 19,255,000 | 19,283,000 |
Intangible Assets, Net | 6,219,000 | 7,227,000 |
Trademarks and Trade Names [Member] | ||
Indefinite-lived Intangible Assets | ||
Indefinite-lived Intangible Assets, Gross | 3,422,000 | 3,422,000 |
Indefinite-lived Intangible Assets, Net | 3,422,000 | 3,422,000 |
Customer Relationships [Member] | ||
Amortized Intangible Assets | ||
Amortized Intangible Assets, Gross | 9,316,000 | 10,352,000 |
Amortized Intangible Assets, Accumulated Amortization | 7,216,000 | 7,412,000 |
Amortized Intangible Assets, Net | 2,100,000 | 2,940,000 |
Indefinite-lived Intangible Assets | ||
Intangible Assets, Accumulated Amortization | 7,216,000 | 7,412,000 |
Patents [Member] | ||
Amortized Intangible Assets | ||
Amortized Intangible Assets, Gross | 338,000 | 338,000 |
Amortized Intangible Assets, Accumulated Amortization | 111,000 | 84,000 |
Amortized Intangible Assets, Net | 227,000 | 254,000 |
Indefinite-lived Intangible Assets | ||
Intangible Assets, Accumulated Amortization | 111,000 | 84,000 |
Technology-Based Intangible Assets [Member] | ||
Amortized Intangible Assets | ||
Amortized Intangible Assets, Gross | 11,228,000 | 11,228,000 |
Amortized Intangible Assets, Accumulated Amortization | 10,891,000 | 10,832,000 |
Amortized Intangible Assets, Net | 337,000 | 396,000 |
Indefinite-lived Intangible Assets | ||
Intangible Assets, Accumulated Amortization | 10,891,000 | 10,832,000 |
Trade Names [Member] | ||
Amortized Intangible Assets | ||
Amortized Intangible Assets, Gross | 460,000 | 460,000 |
Amortized Intangible Assets, Accumulated Amortization | 460,000 | 454,000 |
Amortized Intangible Assets, Net | 6,000 | |
Indefinite-lived Intangible Assets | ||
Intangible Assets, Accumulated Amortization | 460,000 | 454,000 |
Noncompete Agreements [Member] | ||
Amortized Intangible Assets | ||
Amortized Intangible Assets, Gross | 710,000 | 710,000 |
Amortized Intangible Assets, Accumulated Amortization | 577,000 | 501,000 |
Amortized Intangible Assets, Net | 133,000 | 209,000 |
Indefinite-lived Intangible Assets | ||
Intangible Assets, Accumulated Amortization | $577,000 | $501,000 |
Note_7_Goodwill_and_Other_Inta5
Note 7 - Goodwill and Other Intangible Assets (Details) - Amortization Expense of Other Intangible Assets (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Three Months Ended [Member] | ||
Note 7 - Goodwill and Other Intangible Assets (Details) - Amortization Expense of Other Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $125 | $205 |
Nine Months Ended [Member] | ||
Note 7 - Goodwill and Other Intangible Assets (Details) - Amortization Expense of Other Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $400 | $611 |
Note_7_Goodwill_and_Other_Inta6
Note 7 - Goodwill and Other Intangible Assets (Details) - Future Amortization Expense (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Future Amortization Expense [Abstract] | |
2015 | $525 |
2016 | 505 |
2017 | 409 |
2018 | 400 |
2019 | 400 |
After 2019 | $958 |
Note_8_Revolving_Line_of_Credi1
Note 8 - Revolving Line of Credit (Details) (USD $) | 1 Months Ended |
Mar. 31, 2015 | |
UNITED STATES | |
Note 8 - Revolving Line of Credit (Details) [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | $30,000,000 |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.13% |
Long-term Line of Credit (in Dollars) | $0 |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Note 8 - Revolving Line of Credit (Details) [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Note 8 - Revolving Line of Credit (Details) [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.90% |
Note_9_Cash_Dividends_Details
Note 9 - Cash Dividends (Details) (USD $) | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Apr. 30, 2015 | |
Note 9 - Cash Dividends (Details) [Line Items] | |||
Payments of Ordinary Dividends, Common Stock | $2,172,000 | $4,333,000 | |
Subsequent Event [Member] | |||
Note 9 - Cash Dividends (Details) [Line Items] | |||
Quarterly Indicated Per Share Dividend Rate | $0.03 | ||
Annual Indicated Per Share Dividend Rate | $0.12 |
Note_10_Equity_Compensation_De
Note 10 - Equity Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
Note 10 - Equity Compensation (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 109 days | 5 years 219 days | 5 years 146 days | 5 years 219 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 1,311,983 | 1,311,983 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares) | 2,727,387 | 2,677,464 | 2,698,989 | 2,727,387 | 2,698,989 | 2,677,464 | 2,341,150 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in Shares) | 1,650,439 | 1,893,351 | 1,650,439 | 1,893,351 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $1,467,217 | $1,467,217 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 38 months | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 713,323 | 436,000 | ||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $6.76 | $7.24 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $3.26 | $2.67 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 6 months | 4 years 109 days | ||||||||
Share-based Compensation, Valuation Assumptions, Expected Forfeiture Rate | 3.30% | 2.10% | 2.00% | 2.10% | 2.20% | 2.30% | ||||
Stock or Unit Option Plan Expense | 1,153,000 | 896,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number (in Shares) | 2,701,380 | 2,701,380 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price (in Dollars per share) | $8.86 | $8.86 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 2,484,958 | 2,484,958 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 6 years 109 days | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 126,203 | 127,104 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Aggregate Grant Date Fair Value | 777,436 | 775,937 | ||||||||
Proceeds from Stock Options Exercised | 401,000 | 351,000 | ||||||||
Increase (Decrease) in Income Taxes Payable | -44,071 | -43,283 | ||||||||
Increase (Decrease) In Common Stock Related To Stock Option Exercises | -223,003 | 21,195 | ||||||||
Reduction of Income Tax Expense Related to the Exercises of Stock Options | 18,473 | 23,621 | ||||||||
Reduction Of Deferred Tax Asset Related To Stock Option Exercises | 248,601 | 8,045 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in Shares) | 21,050 | 17,205 | ||||||||
Stock Issued During Period, Value, Share-based Compensation, Gross | 144,000 | 144,000 | ||||||||
Treasury Stock, Shares (in Shares) | 321,838 | 307,328 | 321,838 | 307,328 | ||||||
Treasury Stock, Value | 2,986,498 | 2,914,700 | 2,986,498 | 2,914,700 | ||||||
Excluding Tax Effect of Disqualified Dispositions [Member] | ||||||||||
Note 10 - Equity Compensation (Details) [Line Items] | ||||||||||
Proceeds from Stock Options Exercised | 624,248 | 329,777 | ||||||||
Employee Stock Option [Member] | ||||||||||
Note 10 - Equity Compensation (Details) [Line Items] | ||||||||||
Stock or Unit Option Plan Expense | 271,669 | 116,686 | 1,153,494 | 895,980 | ||||||
Maximum [Member] | ||||||||||
Note 10 - Equity Compensation (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 10 years | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $7.88 | $8.44 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $3.49 | $3.64 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 9 years 11 months | 9 years 9 months | ||||||||
Treasury Stock Acquired, Repurchase Authorization | 28,000 | |||||||||
Minimum [Member] | ||||||||||
Note 10 - Equity Compensation (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | $5.96 | $7.20 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $2.19 | $2.64 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 9 years 6 months | 9 years 5 months | ||||||||
Treasury Stock Acquired, Repurchase Authorization | 26,000 | |||||||||
Employee Salary Deferrals or Company Contributions [Member] | ||||||||||
Note 10 - Equity Compensation (Details) [Line Items] | ||||||||||
Treasury Stock, Value, Acquired, Cost Method | $165,100 | $165,500 | ||||||||
Treasury Stock, Shares, Acquired (in Shares) | 23,519 | 22,011 | ||||||||
Non-Employee Directors [Member] | Each Ninety Days [Member] | ||||||||||
Note 10 - Equity Compensation (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||
Employees [Member] | Annually [Member] | ||||||||||
Note 10 - Equity Compensation (Details) [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% |
Note_10_Equity_Compensation_De1
Note 10 - Equity Compensation (Details) - Weighted Average Assumptions Used to Develop the Fair Value of Stock Options | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Weighted Average Assumptions Used to Develop the Fair Value of Stock Options [Abstract] | ||||
Dividend yield | 0.83% | 2.84% | 1.11% | 3.32% |
Expected volatility | 53.00% | 60.00% | 56.00% | 53.00% |
Risk-free interest rate | 1.57% | 1.71% | 1.63% | 1.66% |
Expected life | 6 years | 5 years 6 months | 6 years | 5 years 6 months |
Note_10_Equity_Compensation_De2
Note 10 - Equity Compensation (Details) - Stock Options (USD $) | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
Stock Options [Abstract] | ||||
Outstanding - Shares | 2,727,387 | 2,698,989 | 2,677,464 | 2,341,150 |
Outstanding - Weighted Average Exercise Price | $8.84 | $9.58 | $9.57 | $9.95 |
Outstanding - Weighted Average Remaining Contractual Term | 6 years 109 days | 5 years 219 days | 5 years 146 days | 5 years 219 days |
Outstanding - Aggregate Intrinsic Value | $2,519,836 | $1,934,534 | $1,674,010 | $1,544,896 |
Exercisable - Shares | 1,650,439 | 1,893,351 | ||
Exercisable - Weighted Average Exercise Price | $10.15 | $10.75 | ||
Exercisable - Weighted Average Remaining Contractual Term | 4 years 6 months | 4 years 109 days | ||
Exercisable - Aggregate Instrinsic Value | $1,099,822 | $840,740 | ||
Granted - Shares | 713,323 | 436,000 | ||
Granted - Weighted Average Exercise Price | $6.76 | $7.24 | ||
Forfeitures - Shares | -559,525 | -25,550 | ||
Forfeitures - Weighted Average Exercise Price | $10.23 | $10.71 | ||
Exercised - Shares | -103,875 | -52,611 | ||
Exercised - Weighted Average Exercise Price | $6.01 | $6.27 |
Note_10_Equity_Compensation_De3
Note 10 - Equity Compensation (Details) - Summary of Unvested Stock Options (USD $) | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Summary of Unvested Stock Options [Abstract] | ||
Non-vested at June 30, 2014 | 803,138 | |
Non-vested at June 30, 2014 | $2.39 | |
Granted | 713,323 | 436,000 |
Granted | $3.26 | $2.67 |
Vested | -339,763 | |
Vested | $2.29 | |
Forfeited | -99,750 | |
Forfeited | $2.62 | |
Non-vested at March 31, 2015 | 1,076,948 | |
Non-vested at March 31, 2015 | $2.98 |
Note_11_Supplemental_Cash_Flow2
Note 11 - Supplemental Cash Flow Information (Details) - Supplemental Cash Flow Information (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash payments: | ||
Interest | $37 | $57 |
Income taxes | 811 | 1,136 |
Issuance of common shares as compensation | $144 | $144 |
Note_12_Commitments_and_Contin1
Note 12 - Commitments and Contingencies (Details) (USD $) | 1 Months Ended | ||
Mar. 19, 2012 | Mar. 31, 2015 | Jun. 30, 2013 | |
LSI Virticus [Member] | |||
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||
Business Combination, Contingent Consideration, Liability | $877,000 | $0 | |
Liability Payment Period | 5 years | ||
Loss Contingency, Range of Possible Loss, Maximum | 3,000,000 | ||
Standby Letters of Credit [Member] | |||
Note 12 - Commitments and Contingencies (Details) [Line Items] | |||
Letters of Credit Outstanding, Amount | $0 |
Note_13_Sale_of_Subsidiary_Det
Note 13 - Sale of Subsidiary (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |||||
Note 13 - Sale of Subsidiary (Details) [Line Items] | ||||||||||
Gain (Loss) on Disposition of Business | ($565,000) | |||||||||
Revenue, Net | 68,603,000 | [1] | 68,996,000 | [1] | 231,784,000 | [1] | 225,605,000 | [1] | ||
Operating Income (Loss) | 582,000 | -946,000 | 5,340,000 | 3,404,000 | ||||||
LSI Saco Technologies Inc [Member] | ||||||||||
Note 13 - Sale of Subsidiary (Details) [Line Items] | ||||||||||
Sale of Stock, Consideration Received on Transaction | 1,900,000 | |||||||||
Gain (Loss) on Disposition of Business | -565,000 | |||||||||
Line of Credit, Terminated | 5,000,000 | 5,000,000 | ||||||||
Revenue, Net | 41,000 | |||||||||
Operating Income (Loss) | ($183,000) | |||||||||
[1] | Net sales are attributed to geographic areas based upon the location of the operation making the sale. |
Note_14_Severance_Costs_Detail
Note 14 - Severance Costs (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | |
Note 14 - Severance Costs (Details) [Line Items] | ||||
Severance Costs | $340,000 | |||
Percent of Reduction of Workforce | 8.30% | 8.30% | 8.30% | |
Employee Related, Reduction In Annual Compensation And Benefits | 3,700,000 | |||
Reclassification from Liability [Member] | Chief Executive Officer [Member] | ||||
Note 14 - Severance Costs (Details) [Line Items] | ||||
Other Noncash Income | 576,000 | |||
Chief Executive Officer [Member] | ||||
Note 14 - Severance Costs (Details) [Line Items] | ||||
Severance Costs | 800,000 | |||
Payments for Postemployment Benefits | 224,000 | |||
Increase (Decrease) in Self Insurance Reserve | 1,000,000 | |||
Facility Closing [Member] | ||||
Note 14 - Severance Costs (Details) [Line Items] | ||||
Business Exit Costs | $21,200 |
Note_14_Severance_Costs_Detail1
Note 14 - Severance Costs (Details) - Accrued Severance Liability Activity (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Accrued Severance Liability Activity [Abstract] | |
Balance at June 30, 2014 | |
Accrual of expense | 1,297 |
Payments | -530 |
Adjustments | -635 |
Balance at March 31, 2015 | $132 |
Note_15_Income_Taxes_Details_S
Note 15 - Income Taxes (Details) - Summary of Effective Income Tax Rate Reconciliation | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Reconciliation to effective tax rate: | ||||
Provision for income taxes at the anticipated annual tax rate | 45.00% | 23.10% | 41.40% | 42.20% |
Impact of foreign operations | 1.80% | -0.20% | -1.80% | |
Enactment of tax law changes | -2.60% | |||
Valuation allowances | -37.60% | 14.30% | ||
Uncertain tax positions | -0.90% | 6.20% | -1.20% | -5.50% |
Other | -12.00% | 1.70% | -3.30% | -0.50% |
Effective tax rate | 32.10% | -4.80% | 34.10% | 48.70% |