Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | Clearfield, Inc. | |
Entity Central Index Key | 796,505 | |
Trading Symbol | clfd | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 13,660,147 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Balance Sheets (Curre
Condensed Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 9,287,640 | $ 18,536,111 |
Short-term investments | 8,486,225 | 5,937,150 |
Accounts receivables, net | 9,651,516 | 7,237,641 |
Inventories, net | 9,688,052 | 8,453,567 |
Other current assets | 698,448 | 978,933 |
Total current assets | 37,811,881 | 41,143,402 |
Property, plant and equipment, net | 4,907,410 | 5,434,172 |
Other Assets | ||
Long-term investments | 18,226,000 | 19,816,000 |
Goodwill | 4,708,511 | 2,570,511 |
Intangible assets, net | 5,549,320 | 284,787 |
Other | 241,009 | 245,165 |
Total other assets | 28,724,840 | 22,916,463 |
Total Assets | 71,444,131 | 69,494,037 |
Current Liabilities | ||
Accounts payable | 2,016,413 | 1,739,791 |
Accrued compensation | 1,632,693 | 2,410,026 |
Accrued expenses | 456,999 | 93,304 |
Total current liabilities | 4,106,105 | 4,243,121 |
Other Liabilities | ||
Deferred taxes | 60,076 | 444,076 |
Deferred rent | 272,419 | 281,720 |
Total other liabilities | 332,495 | 725,796 |
Total Liabilities | 4,438,600 | 4,968,917 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Preferred stock, $.01 par value; 500,000 shares; no shares issued or outstanding | ||
Common stock, authorized 50,000,000, $.01 par value; 13,693,943 and 13,812,821, shares issued and outstanding as of June 30, 2018 and September 30, 2017 | 136,939 | 138,128 |
Additional paid-in capital | 55,495,474 | 55,406,888 |
Retained earnings | 11,373,118 | 8,980,104 |
Total Shareholders’ Equity | 67,005,531 | 64,525,120 |
Total Liabilities and Shareholders’ Equity | $ 71,444,131 | $ 69,494,037 |
Condensed Balance Sheets (Curr3
Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2018 | Sep. 30, 2017 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 13,693,943 | 13,812,821 |
Common stock, shares outstanding (in shares) | 13,693,943 | 13,812,821 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net sales | $ 21,480,590 | $ 19,611,297 | $ 55,178,369 | $ 55,529,230 |
Cost of sales | 12,988,545 | 11,674,047 | 32,798,083 | 32,940,446 |
Gross profit | 8,492,045 | 7,937,250 | 22,380,286 | 22,588,784 |
Operating expenses | ||||
Selling, general and administrative | 6,087,362 | 6,614,693 | 19,856,922 | 18,794,395 |
Income from operations | 2,404,683 | 1,322,557 | 2,523,364 | 3,794,389 |
Interest income | 116,549 | 73,759 | 331,650 | 186,378 |
Income before income taxes | 2,521,232 | 1,396,316 | 2,855,014 | 3,980,767 |
Income tax expense | 766,000 | 593,000 | 462,000 | 1,393,000 |
Net income | $ 1,755,232 | $ 803,316 | $ 2,393,014 | $ 2,587,767 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.13 | $ 0.06 | $ 0.18 | $ 0.19 |
Diluted (in dollars per share) | $ 0.13 | $ 0.06 | $ 0.18 | $ 0.19 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 13,430,503 | 13,522,755 | 13,441,619 | 13,559,704 |
Diluted (in shares) | 13,430,503 | 13,598,582 | 13,473,123 | 13,730,945 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||
Net income | $ 2,393,014 | $ 2,587,767 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,546,661 | 1,205,769 |
Impairment of long-lived assets | 0 | 643,604 |
Deferred taxes | (384,000) | |
Gain on disposal of assets | (20,358) | (5,100) |
Stock-based compensation | 1,488,304 | 1,774,330 |
Changes in operating assets and liabilities, net of business acquisition: | ||
Accounts receivable, net | (2,413,875) | (53,619) |
Inventories | 1,546,081 | (965,458) |
Prepaid expenses and other | 289,305 | 324,206 |
Accounts payable and accrued expenses | (146,317) | (2,989,849) |
Net cash provided by operating activities | 4,298,815 | 2,521,650 |
Cash flows from investing activities | ||
Business acquisition | (10,350,000) | |
Purchases of property, plant and equipment and intangible assets | (920,356) | (1,631,127) |
Proceeds from sale of property, plant and equipment | 83,052 | 5,100 |
Purchases of investments | (5,403,075) | (13,279,075) |
Proceeds from maturities of investments | 4,444,000 | 6,619,000 |
Net cash used in investing activities | (12,146,379) | (8,286,102) |
Cash flows from financing activities | ||
Proceeds from issuance of common stock under employee stock purchase plan | 297,860 | 334,692 |
Proceeds from issuance of common stock upon exercise of stock options | 21,174 | 28,718 |
Tax withholding related to exercise of stock options and restricted stock vestings | (348,527) | (462,120) |
Repurchase of common stock | (1,371,414) | (2,403,062) |
Net cash used in financing activities | (1,400,907) | (2,501,772) |
Decrease in cash and cash equivalents | (9,248,471) | (8,266,224) |
Cash and cash equivalents, beginning of period | 18,536,111 | 28,014,321 |
Cash and cash equivalents, end of period | 9,287,640 | 19,748,097 |
Supplemental disclosures for cash flow information | ||
Cash paid during the year for income taxes | 48,987 | 893,483 |
Non-cash financing activities | ||
Cashless exercise of stock options | $ 5,782 | $ 34,268 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | Note 1. The accompanying (a) condensed balance sheet as of September 30, 2017, three nine June 30, 2018 not These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10 September 30, 2017. In preparation of the Company’s financial statements, management is required to make estimates and assumptions that affect reported amounts of assets and liabilities and related revenues and expenses during the reporting periods. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Certain comparative figures have been reclassified to conform to the current period's presentation. These reclassifications did not |
Note 2 - Net Income Per Share
Note 2 - Net Income Per Share | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 2. Basic net income per common share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the reporting period. Diluted EPS equals net income divided by the sum of the weighted average number of shares of common stock outstanding plus all additional common stock equivalents, such as stock options and restricted stock awards, when dilutive. The following is a reconciliation of the numerator and denominator of the net income per common share computations for the three nine June 30, 2018 2017: Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Net income $ 1,755,232 $ 803,316 $ 2,393,014 $ 2,587,767 Weighted average common shares 13,430,503 13,522,755 13,441,619 13,559,704 Dilutive potential common shares - 75,827 31,504 171,241 Weighted average dilutive common shares outstanding 13,430,503 13,598,582 13,473,123 13,730,945 Net income per common share: Basic $ 0.13 $ 0.06 $ 0.18 $ 0.19 Diluted $ 0.13 $ 0.06 $ 0.18 $ 0.19 There were 72,000 three nine June 30, 2018 No three nine June 30, 2017. |
Note 3 - Cash, Cash Equivalents
Note 3 - Cash, Cash Equivalents and Investments | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | Note 3. The Company currently invests its excess cash in money market accounts and bank certificates of deposit (CDs) with a term of not five three one one The maturity dates of the Company’s CDs as of June 30, 2018 September 30, 2017 June 30, 2018 September 30, 2017 Less than one year $ 8,486,225 $ 5,937,150 1-5 years 18,226,000 19,816,000 Total $ 26,712,225 $ 25,753,150 |
Note 4 - Stock-based Compensati
Note 4 - Stock-based Compensation | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 4. The Company recorded $519,223 $1,488,304 three nine June 30, 2018, three June 30, 2018, $477,193 $42,030 nine June 30, 2018, $1,362,213 $126,091 $590,419 $1,774,330 three nine June 30, 2017, three June 30, 2017, $535,719 $54,700 nine June 30, 2017, $1,610,229 $164,101 June 30, 2018, $3,894,131 6.3 We used the Black-Scholes option pricing model to determine the weighted average fair value of options granted during the nine June 30, 2018. nine June 30, 2018, 72,000 five three $13.35. no nine June 30, 2017. nine June 30, 2018 $5.15. Nine months ended June 30, 2018 Dividend yield 0% Average expected volatility 45.63% Average risk-free interest rate 2.61% Expected life (years) 4 Vesting period (years) 3 The expected stock price volatility is based on the historical volatility of the Company’s stock for a period approximating the expected life. The expected life represents the period of time that options are expected to be outstanding after their grant date. The risk-free interest rate reflects the interest rate at grant date on zero The following is a summary of stock option activity during the nine June 30, 2018: Number of options Weighted average exercise price Outstanding at September 30, 2017 38,950 $ 2.79 Granted 72,000 13.35 Exercised (7,350 ) 3.67 Cancelled or Forfeited - - Outstanding at June 30, 2018 103,600 $ 10.06 The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. As of June 30, 2018, 3.99 $102,052. June 30, 2018, 2.14 $267,652. nine June 30, 2018, $21,174 nine June 30, 2017, 15,850 $28,718 Restricted Stock The Company’s 2007 one ten During the nine June 30, 2018, 3,795 one $16.45 3,000 one $13.35 During the nine June 30, 2017, 3,795 one $16.45 Restricted stock transactions during the nine June 30, 2018 Number of shares Weighted average grant date fair value Unvested shares at September 30, 2017 370,530 $ 15.24 Granted 7,235 14.17 Vested (85,933 ) 17.39 Forfeited (12,284 ) 15.54 Unvested at June 30, 2018 279,548 $ 14.54 Employee Stock Purchase Plan Clearfield, Inc.’s ESPP allows participating employees to purchase shares of the Company’s common stock at a discount through payroll deductions. The ESPP is available to all employees subject to certain eligibility requirements. Terms of the ESPP provide that participating employees may may no 85% one six January 1 July 1 June 30, 2018 December 31, 2017, 15,932 14,242 $9.39 $10.41 June 30, 2018, 87,081 |
Note 5 - Accounts Receivable an
Note 5 - Accounts Receivable and Net Sales | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | Note 5. Credit is extended based on the evaluation of a customer’s financial condition and collateral is generally not June 30, 2018 September 30, 2017, $79,085 See Note 7, |
Note 6 - Inventories
Note 6 - Inventories | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 6. Inventories consist of the following as of: June 30, 2018 September 30, 2017 Raw materials $ 5,136,429 $ 5,991,863 Work-in-progress 773,652 724,248 Finished goods 3,777,971 1,737,456 Inventories, net $ 9,688,052 $ 8,453,567 During the nine June 30, 2018, 2015 11, Inventory (Topic 330 first no not |
Note 7 - Major Customer Concent
Note 7 - Major Customer Concentration | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | Note 7. The following table summarizes customers comprising 10% three nine June 30, 2018 2017: Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Customer A 20% 15% 22% 20% Customer B 13% 15% 14% 15% Customer C 10% * * * * Less than 10% As of June 30, 2018, 15%, 14%, 12% September 30, 2017, 19% |
Note 8 - Goodwill and Patents
Note 8 - Goodwill and Patents | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 8. The Company analyzes its goodwill for impairment annually or at an interim period when events occur or changes in circumstances indicate potential impairment. The result of the analysis performed in the fourth September 30, 2017 not nine June 30, 2018, no The Company capitalizes legal costs incurred to obtain patents. Once accepted by either the U.S. Patent Office or the equivalent office of a foreign country, these legal costs are amortized using the straight-line method over the remaining estimated lives, not 20 June 30, 2018, 13 |
Note 9 - Impairment of Long-liv
Note 9 - Impairment of Long-lived Assets | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Impairment of Long-lived Assets [Text Block] | Note 9. The Company assesses potential impairments to its long-lived assets or asset groups when there is evidence that events occur or changes in circumstances indicate that the carrying amount of an asset or asset group may not not not Any required impairment loss is measured as the amount by which the carrying amount of a long-lived asset or asset group exceeds its fair value and is recorded as a reduction in the carrying value of the related asset or asset group and a charge to operating results. During the three nine June 30, 2017, $643,604 No three nine June 30, 2018. |
Note 10 - Income Taxes
Note 10 - Income Taxes | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 10. For the three nine June 30, 2018, $766,000 $462,000, 30.4% 16.2%, 2017 December 22, 2017. January 1, 2018 nine June 30, 2018 three 2018. nine one $384,000 nine June 30, 2018 nine June 30, 2018. may may unfavorable discrete items for the three nine June 30, 2018 For the three nine June 30, 2017, $593,000 $1,393,000, 42.5% 35.0%, three nine June 30, 2017 As of June 30, 2018 September 30, 2017, $191,000 $159,000, not $32,000 nine June 30, 2018. no June 30, 2018. Deferred taxes recognize the impact of temporary differences between the amounts of the assets and liabilities recorded for financial statement purposes and these amounts measured in accordance with tax laws. The Company’s realization of deferred tax temporary differences is contingent upon future taxable earnings. The Company reviewed its deferred tax assets for expected utilization using a “more likely than not” As of June 30, 2018, not not 12 We are currently under examination by the U.S. Internal Revenue Service for fiscal year 2016. not |
Note 11 - Acquisition
Note 11 - Acquisition | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 11. On February 20, 2018, February 20, 2018. The introduction of the Clearfield powered cabinet line provides customers a single point of contact for cabinet solutions—both passive and powered. The acquisition enables Clearfield to expand its Fiber-to-Anywhere expertise to include powered electronic cabinet platforms while leveraging its supply chain. The acquisition also enables Clearfield to capitalize on and expand its reach to a broader customer base, including service providers in the Tier 1 2 Acquisition date fair value of the consideration transferred totaled $10,350,000 $10,350,000 We assumed no $3,500,000 not February 20, 2018 Inventories $ 2,781,000 Property, plant and equipment 58,000 Trademarks 563,000 Customer relationships 3,742,000 Product certification 1,068,000 Goodwill 2,138,000 Total Assets $ 10,350,000 Pending finalization of the fair value of the intangible assets in the fourth 2018, $2,138,000 . Specifically, the goodwill recorded as part of the acquisition of the Calix powered cabinets includes the expected synergies and other benefits that we believe will result from combining the operations of powered cabinet lines with the operations of Clearfield, Inc. The Company incurred approximately $106,000 12.5 As the powered cabinet business was not not The following table below reflects our unaudited pro forma combined results of operations as if the acquisition had taken place as of October 1, 2016 three nine June 30, 2017 June 30, 2018. Pro Forma Pro Forma Pro Forma (unaudited) (unaudited) (unaudited) Net sales $ 23,517,078 $ 68,237,433 $ 58,485,804 Income from operations $ 1,946,661 $ 6,130,794 $ 3,007,279 Net income $ 1,162,370 $ 4,135,565 $ 2,913,224 Net income per share: Basic $ 0.09 $ 0.30 $ 0.22 Diluted $ 0.09 $ 0.30 $ 0.22 The pro forma unaudited results do not may not may may |
Note 12 - Accounting Pronouncem
Note 12 - Accounting Pronouncements | 9 Months Ended |
Jun. 30, 2018 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 12. Recent Accounting Pronouncements In May 2014, 606, Revenue from Contracts with Customers 605, December 15, 2017, December 15, 2016, two In February 2016, 2016 02, Leases 12 December 15, 2018, In January 2017, 2017 04 2 January 1, 2020, January 1, 2017. not |
Note 2 - Net Income Per Share (
Note 2 - Net Income Per Share (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Net income $ 1,755,232 $ 803,316 $ 2,393,014 $ 2,587,767 Weighted average common shares 13,430,503 13,522,755 13,441,619 13,559,704 Dilutive potential common shares - 75,827 31,504 171,241 Weighted average dilutive common shares outstanding 13,430,503 13,598,582 13,473,123 13,730,945 Net income per common share: Basic $ 0.13 $ 0.06 $ 0.18 $ 0.19 Diluted $ 0.13 $ 0.06 $ 0.18 $ 0.19 |
Note 3 - Cash, Cash Equivalen19
Note 3 - Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Investments Classified by Contractual Maturity Date [Table Text Block] | June 30, 2018 September 30, 2017 Less than one year $ 8,486,225 $ 5,937,150 1-5 years 18,226,000 19,816,000 Total $ 26,712,225 $ 25,753,150 |
Note 4 - Stock-based Compensa20
Note 4 - Stock-based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Nine months ended June 30, 2018 Dividend yield 0% Average expected volatility 45.63% Average risk-free interest rate 2.61% Expected life (years) 4 Vesting period (years) 3 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of options Weighted average exercise price Outstanding at September 30, 2017 38,950 $ 2.79 Granted 72,000 13.35 Exercised (7,350 ) 3.67 Cancelled or Forfeited - - Outstanding at June 30, 2018 103,600 $ 10.06 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Number of shares Weighted average grant date fair value Unvested shares at September 30, 2017 370,530 $ 15.24 Granted 7,235 14.17 Vested (85,933 ) 17.39 Forfeited (12,284 ) 15.54 Unvested at June 30, 2018 279,548 $ 14.54 |
Note 6 - Inventories (Tables)
Note 6 - Inventories (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, 2018 September 30, 2017 Raw materials $ 5,136,429 $ 5,991,863 Work-in-progress 773,652 724,248 Finished goods 3,777,971 1,737,456 Inventories, net $ 9,688,052 $ 8,453,567 |
Note 7 - Major Customer Conce22
Note 7 - Major Customer Concentration (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Customer A 20% 15% 22% 20% Customer B 13% 15% 14% 15% Customer C 10% * * * |
Note 11 - Acquisition (Tables)
Note 11 - Acquisition (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | February 20, 2018 Inventories $ 2,781,000 Property, plant and equipment 58,000 Trademarks 563,000 Customer relationships 3,742,000 Product certification 1,068,000 Goodwill 2,138,000 Total Assets $ 10,350,000 |
Business Acquisition, Pro Forma Information [Table Text Block] | Pro Forma Pro Forma Pro Forma (unaudited) (unaudited) (unaudited) Net sales $ 23,517,078 $ 68,237,433 $ 58,485,804 Income from operations $ 1,946,661 $ 6,130,794 $ 3,007,279 Net income $ 1,162,370 $ 4,135,565 $ 2,913,224 Net income per share: Basic $ 0.09 $ 0.30 $ 0.22 Diluted $ 0.09 $ 0.30 $ 0.22 |
Note 2 - Net Income Per Share24
Note 2 - Net Income Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 72,000 | 0 | 72,000 | 0 |
Note 2 - Net Income Per Share -
Note 2 - Net Income Per Share - Net Income Per Common Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income | $ 1,755,232 | $ 803,316 | $ 2,393,014 | $ 2,587,767 |
Weighted average common shares (in shares) | 13,430,503 | 13,522,755 | 13,441,619 | 13,559,704 |
Dilutive potential common shares (in shares) | 75,827 | 31,504 | 171,241 | |
Weighted average dilutive common shares outstanding (in shares) | 13,430,503 | 13,598,582 | 13,473,123 | 13,730,945 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.13 | $ 0.06 | $ 0.18 | $ 0.19 |
Diluted (in dollars per share) | $ 0.13 | $ 0.06 | $ 0.18 | $ 0.19 |
Note 3 - Cash, Cash Equivalen26
Note 3 - Cash, Cash Equivalents and Investments (Details Textual) | 9 Months Ended |
Jun. 30, 2018 | |
Maximum [Member] | |
Held-to-maturity Securities, Investment Term | 5 years |
Note 3 - Cash, Cash Equivalen27
Note 3 - Cash, Cash Equivalents and Investments - CD Maturity Dates (Details) - USD ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Less than one year | $ 8,486,225 | $ 5,937,150 |
1-5 years | 18,226,000 | 19,816,000 |
Total | $ 26,712,225 | $ 25,753,150 |
Note 4 - Stock-based Compensa28
Note 4 - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Allocated Share-based Compensation Expense, Total | $ 519,223 | $ 590,419 | $ 1,488,304 | $ 1,774,330 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | 3,894,131 | $ 3,894,131 | $ 3,894,131 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 6 years 109 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 72,000 | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 13.35 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 5.15 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 years 361 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 102,052 | 102,052 | $ 102,052 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 51 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 267,652 | $ 267,652 | $ 267,652 | |||
Proceeds from Stock Options Exercised | $ 21,174 | $ 28,718 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 7,350 | 15,850 | ||||
Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Market Price Percentage, Offering Date | 85.00% | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 14,242 | 15,932 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price | $ 10.41 | $ 9.39 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 87,081 | 87,081 | 87,081 | |||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 7,235 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 14.17 | |||||
Restricted Stock [Member] | Non Employee Directors [Member] | Stock Compensation Plan 2007 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | 1 year | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 3,795 | 3,795 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 16.45 | $ 16.45 | ||||
Restricted Stock [Member] | Employees [Member] | Stock Compensation Plan 2007 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 3,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 13.35 | |||||
Minimum [Member] | Restricted Stock [Member] | Employee and Non-Employee Directors [Member] | Stock Compensation Plan 2007 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||
Maximum [Member] | Restricted Stock [Member] | Employee and Non-Employee Directors [Member] | Stock Compensation Plan 2007 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | |||||
Selling, General and Administrative Expenses [Member] | ||||||
Allocated Share-based Compensation Expense, Total | $ 477,193 | 535,719 | $ 1,362,213 | $ 1,610,229 | ||
Cost of Sales [Member] | ||||||
Allocated Share-based Compensation Expense, Total | $ 42,030 | $ 54,700 | $ 126,091 | $ 164,101 |
Note 4 - Stock-based Compensa29
Note 4 - Stock-based Compensation - Valuation Assumption (Details) | 9 Months Ended |
Jun. 30, 2018 | |
Dividend yield | 0.00% |
Average expected volatility | 45.63% |
Average risk-free interest rate | 2.61% |
Expected life (Year) | 4 years |
Vesting period (Year) | 3 years |
Note 4 - Stock-based Compensa30
Note 4 - Stock-based Compensation - Stock Option Activity (Details) - $ / shares | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Options, outstanding (in shares) | 38,950 | |
Weighted-average exercise price, outstanding (in dollars per share) | $ 2.79 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 72,000 | 0 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 13.35 | |
Exercised (in shares) | (7,350) | (15,850) |
Exercised (in dollars per share) | $ 3.67 | |
Cancelled or Forfeited (in shares) | ||
Cancelled or Forfeited (in dollars per share) | ||
Options, outstanding (in shares) | 103,600 | |
Weighted-average exercise price, outstanding (in dollars per share) | $ 10.06 |
Note 4 - Stock-based Compensa31
Note 4 - Stock-based Compensation - Restricted Stock Transactions (Details) - Restricted Stock [Member] | 9 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Balance, unvested shares (in shares) | shares | 370,530 |
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 15.24 |
Granted (in shares) | shares | 7,235 |
Granted (in dollars per share) | $ / shares | $ 14.17 |
Vested (in shares) | shares | (85,933) |
Vested (in dollars per share) | $ / shares | $ 17.39 |
Forfeited (in shares) | shares | (12,284) |
Forfeited (in dollars per share) | $ / shares | $ 15.54 |
Balance, unvested shares (in shares) | shares | 279,548 |
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares | $ 14.54 |
Note 5 - Accounts Receivable 32
Note 5 - Accounts Receivable and Net Sales (Details Textual) - USD ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Allowance for Doubtful Accounts Receivable, Current, Ending Balance | $ 79,085 | $ 79,085 |
Note 6 - Inventories - Componen
Note 6 - Inventories - Components of Inventory (Details) - USD ($) | Jun. 30, 2018 | Sep. 30, 2017 |
Raw materials | $ 5,136,429 | $ 5,991,863 |
Work-in-progress | 773,652 | 724,248 |
Finished goods | 3,777,971 | 1,737,456 |
Inventories, net | $ 9,688,052 | $ 8,453,567 |
Note 7 - Major Customer Conce34
Note 7 - Major Customer Concentration (Details Textual) - Accounts Receivable [Member] - Customer Concentration Risk [Member] | 9 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Sep. 30, 2017 | |
Customer C [Member] | ||
Concentration Risk, Percentage | 15.00% | |
Customer B [Member] | ||
Concentration Risk, Percentage | 14.00% | 19.00% |
Customer A [Member] | ||
Concentration Risk, Percentage | 12.00% |
Note 7 - Major Customer Conce35
Note 7 - Major Customer Concentration - Customers Comprising 10% or More of Net Sales (Details) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member] | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Customer A [Member] | |||||||
Customer | 20.00% | 15.00% | 22.00% | 20.00% | |||
Customer B [Member] | |||||||
Customer | 13.00% | 15.00% | 14.00% | 15.00% | |||
Customer C [Member] | |||||||
Customer | 10.00% | [1] | [1] | [1] | |||
[1] | Less than 10% |
Note 8 - Goodwill and Patents (
Note 8 - Goodwill and Patents (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017USD ($) | Jun. 30, 2018USD ($) | |
Goodwill, Impairment Loss | $ 0 | $ 0 |
Number of Patents Granted | 13 | |
Patents [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years |
Note 9 - Impairment of Long-l37
Note 9 - Impairment of Long-lived Assets (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Impairment of Long-Lived Assets Held-for-use | $ 0 | $ 643,604 | $ 0 | $ 643,604 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | |
Income Tax Expense (Benefit), Total | $ 766,000 | $ 593,000 | $ 462,000 | $ 1,393,000 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 30.40% | 42.50% | 16.20% | 35.00% | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ (384,000) | ||||
Unrecognized Tax Benefits, Ending Balance | $ 0 | 0 | |||
State and Local Jurisdiction [Member] | |||||
Operating Loss Carryforwards, Valuation Allowance, Total | $ 191,000 | 191,000 | $ 159,000 | ||
State and Local Jurisdiction [Member] | Deferred Tax Assets Related to Operating Loss Carryforwards [Member] | |||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 32,000 |
Note 11 - Acquisition (Details
Note 11 - Acquisition (Details Textual) - USD ($) | Feb. 20, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Payments to Acquire Businesses, Gross | $ 10,350,000 | ||
Calix, Inc. [Member] | |||
Business Combination, Consideration Transferred, Total | $ 10,350,000 | ||
Payments to Acquire Businesses, Gross | 10,350,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 0 | ||
Purchase Obligation, Total | 3,500,000 | ||
Goodwill, Acquired During Period | 2,138,000 | ||
Business Acquisition, Transaction Costs | $ 106,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years 182 days |
Note 11 - Acquisition - Summary
Note 11 - Acquisition - Summary of Estimated Fair Values of Acquired Assets (Details) - USD ($) | Jun. 30, 2018 | Feb. 20, 2018 | Sep. 30, 2017 |
Goodwill | $ 4,708,511 | $ 2,570,511 | |
Calix, Inc. [Member] | |||
Inventories | $ 2,781,000 | ||
Property, plant and equipment | 58,000 | ||
Goodwill | 2,138,000 | ||
Total Assets | 10,350,000 | ||
Calix, Inc. [Member] | Trademarks [Member] | |||
Finite-lived intangible assets | 563,000 | ||
Calix, Inc. [Member] | Customer Relationships [Member] | |||
Finite-lived intangible assets | 3,742,000 | ||
Calix, Inc. [Member] | Certification Marks [Member] | |||
Finite-lived intangible assets | $ 1,068,000 |
Note 11 - Acquisition - Pro For
Note 11 - Acquisition - Pro Forma Information (Details) - Calix, Inc. [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net sales | $ 23,517,078 | $ 58,485,804 | $ 68,237,433 |
Income from operations | 1,946,661 | 3,007,279 | 6,130,794 |
Net income | $ 1,162,370 | $ 2,913,224 | $ 4,135,565 |
Basic (in dollars per share) | $ 0.09 | $ 0.22 | $ 0.30 |
Diluted (in dollars per share) | $ 0.09 | $ 0.22 | $ 0.30 |