Clearfield (CLFD) 10-Q 1 Aug 19 2019 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2019	Jul. 19, 2019
Document Information [Line Items]
Entity Registrant Name	Clearfield, Inc.
Entity Central Index Key	0000796505
Trading Symbol	clfd
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		13,651,869
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Balance Sheets (Curre

Condensed Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Current Assets
Cash and cash equivalents	$ 6,030,842	$ 8,547,777
Short-term investments	14,638,219	8,930,225
Accounts receivables, net	9,302,944	12,821,258
Inventories, net	9,424,262	10,050,135
Other current assets	883,613	742,136
Total current assets	40,279,880	41,091,531
Property, plant and equipment, net	4,470,145	4,744,584
Other Assets
Long-term investments	22,519,000	17,974,000
Goodwill	4,708,511	4,708,511
Intangible assets, net	5,242,689	5,482,555
Other	202,856	227,461
Total other assets	32,673,056	28,392,527
Total Assets	77,423,081	74,228,642
Current Liabilities
Accounts payable	1,566,900	2,363,380
Accrued compensation	2,247,934	2,048,904
Accrued expenses	280,484	568,507
Total current liabilities	4,095,318	4,980,791
Other Liabilities
Deferred taxes	104,935	104,935
Deferred rent	251,759	268,040
Total other liabilities	356,694	372,975
Total Liabilities	4,452,012	5,353,766
Shareholders’ Equity
Preferred stock, $.01 par value; 500,000 shares; no shares issued or outstanding
Common stock, authorized 50,000,000, $.01 par value; 13,651,869 and 13,646,553, shares issued and outstanding at June 30, 2019 and September 30, 2018	136,519	136,466
Additional paid-in capital	56,901,470	55,483,759
Retained earnings	15,933,080	13,254,651
Total Shareholders’ Equity	72,971,069	68,874,876
Total Liabilities and Shareholders’ Equity	$ 77,423,081	$ 74,228,642

Condensed Balance Sheets (Cur_2

Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2019	Sep. 30, 2018
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, authorized (in shares)	50,000,000	50,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	13,651,869	13,646,553
Common stock, shares outstanding (in shares)	13,651,869	13,646,553

Condensed Statements of Earning

Condensed Statements of Earnings (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net sales	$ 21,892,242	$ 21,480,590	$ 61,065,759	$ 55,178,369
Cost of sales	13,479,617	12,988,545	37,681,191	32,798,083
Gross profit	8,412,627	8,492,045	23,384,568	22,380,286
Operating expenses
Selling, general and administrative	6,870,994	6,087,362	20,374,613	19,856,922
Income from operations	1,541,633	2,404,683	3,009,955	2,523,364
Interest income	212,894	116,549	517,474	331,650
Income before income taxes	1,754,527	2,521,232	3,527,429	2,855,014
Income tax expense	454,000	766,000	849,000	462,000
Net income	$ 1,300,527	$ 1,755,232	$ 2,678,429	$ 2,393,014
Net income per share Basic (in dollars per share)	$ 0.10	$ 0.13	$ 0.20	$ 0.18
Net income per share Diluted (in dollars per share)	$ 0.10	$ 0.13	$ 0.20	$ 0.18
Weighted average shares outstanding:
Basic (in shares)	13,446,289	13,430,503	13,422,885	13,441,619
Diluted (in shares)	13,451,671	13,430,503	13,434,009	13,473,123

Condensed Statements of Shareho

Condensed Statements of Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Sep. 30, 2017	13,812,821
Balance at Sep. 30, 2017	$ 138,128	$ 55,406,888	$ 8,980,104	$ 64,525,120
Stock-based compensation expense		1,488,304		1,488,304
Restricted stock issuance, net (in shares)	(5,049)
Restricted stock issuance, net	$ (50)	50
Issuance of common stock under employee stock purchase plan (in shares)	30,174
Issuance of common stock under employee stock purchase plan	$ 301	297,559		297,860
Exercise of stock options, net of shares exchanged for payment (in shares)	6,925
Exercise of stock options, net of shares exchanged for payment	$ 69	21,105		21,174
Tax withholding related to vesting of restricted stock grants (in shares)	(31,213)
Tax withholding related to vesting of restricted stock grants	$ (312)	(348,215)		(348,527)
Net income			2,393,014	2,393,014
Repurchase of common stock (in shares)	(119,715)
Repurchase of common stock	$ (1,197)	(1,370,217)		(1,371,414)
Balance (in shares) at Jun. 30, 2018	13,693,943
Balance at Jun. 30, 2018	$ 136,939	55,495,474	11,373,118	67,005,531
Balance (in shares) at Mar. 31, 2018	13,811,076
Balance at Mar. 31, 2018	$ 138,111	56,296,908	9,617,886	66,052,905
Stock-based compensation expense		519,223		519,223
Restricted stock issuance, net (in shares)	(3,640)
Restricted stock issuance, net	$ (36)	36
Issuance of common stock under employee stock purchase plan (in shares)	15,932
Issuance of common stock under employee stock purchase plan	$ 158	149,442		149,600
Exercise of stock options, net of shares exchanged for payment (in shares)	1,250
Exercise of stock options, net of shares exchanged for payment	$ 12	3,214		3,226
Tax withholding related to vesting of restricted stock grants (in shares)	(30,542)
Tax withholding related to vesting of restricted stock grants	$ (305)	(338,960)		(339,265)
Net income			1,755,232	1,755,232
Repurchase of common stock (in shares)	(100,133)
Repurchase of common stock	$ (1,001)	(1,134,389)		(1,135,390)
Balance (in shares) at Jun. 30, 2018	13,693,943
Balance at Jun. 30, 2018	$ 136,939	55,495,474	11,373,118	67,005,531
Balance (in shares) at Sep. 30, 2018	13,646,553
Balance at Sep. 30, 2018	$ 136,466	55,483,759	13,254,651	68,874,876
Stock-based compensation expense		1,535,628		1,535,628
Restricted stock issuance, net (in shares)	(6,890)
Restricted stock issuance, net	$ (69)	69
Issuance of common stock under employee stock purchase plan (in shares)	37,235
Issuance of common stock under employee stock purchase plan	$ 372	313,519		313,891
Exercise of stock options, net of shares exchanged for payment (in shares)	5,440
Exercise of stock options, net of shares exchanged for payment	$ 54	(30)		24
Tax withholding related to vesting of restricted stock grants (in shares)	(30,469)
Tax withholding related to vesting of restricted stock grants	$ (304)	(431,475)		(431,779)
Net income			2,678,429	2,678,429
Balance (in shares) at Jun. 30, 2019	13,651,869
Balance at Jun. 30, 2019	$ 136,519	56,901,470	15,933,080	72,971,069
Balance (in shares) at Mar. 31, 2019	13,668,408
Balance at Mar. 31, 2019	$ 136,684	56,725,019	14,632,553	71,494,256
Stock-based compensation expense		433,438		433,438
Restricted stock issuance, net (in shares)	(6,538)
Restricted stock issuance, net	$ (65)	65
Issuance of common stock under employee stock purchase plan (in shares)	19,923
Issuance of common stock under employee stock purchase plan	$ 199	167,752		167,951
Exercise of stock options, net of shares exchanged for payment (in shares)
Exercise of stock options, net of shares exchanged for payment
Tax withholding related to vesting of restricted stock grants (in shares)	(29,924)
Tax withholding related to vesting of restricted stock grants	$ (299)	(424,804)		(425,103)
Net income			1,300,527	1,300,527
Balance (in shares) at Jun. 30, 2019	13,651,869
Balance at Jun. 30, 2019	$ 136,519	$ 56,901,470	$ 15,933,080	$ 72,971,069

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net income	$ 2,678,429	$ 2,393,014
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,613,394	1,546,661
Change in allowance for doubtful accounts	210,000
Amortization of discount on investments	(43,601)
Deferred taxes		(384,000)
Loss on disposal of assets		(20,358)
Stock based compensation	1,535,628	1,488,304
Changes in operating assets and liabilities:
Accounts receivable	3,308,314	(2,413,875)
Inventories, net	625,873	1,546,081
Other assets	(116,872)	289,305
Accounts payable, accrued expenses and deferred rent	(901,754)	(146,317)
Net cash provided by operating activities	8,909,411	4,298,815
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets	(1,099,089)	(920,356)
Purchases of investments	(17,444,393)	(5,403,075)
Proceeds from sale of property, plant, and equipment		83,052
Proceeds from maturities of investments	7,235,000	4,444,000
Business acquisition		(10,350,000)
Net cash used in investing activities	(11,308,482)	(12,146,379)
Cash flows from financing activities
Repurchases of common stock		(1,371,414)
Proceeds from issuance of common stock under employee stock purchase plan	313,891	297,860
Proceeds from issuance of common stock upon exercise of stock options	24	21,174
Tax withholding related to vesting of restricted stock grants	(431,779)	(348,527)
Net cash used in financing activities	(117,864)	(1,400,907)
Decrease in cash and cash equivalents	(2,516,935)	(9,248,471)
Cash and cash equivalents, beginning of period	8,547,777	18,536,111
Cash and cash equivalents, end of period	6,030,842	9,287,640
Supplemental disclosures for cash flow information
Cash paid during the year for income taxes	1,081,068	48,987
Non-cash financing activities
Cashless exercise of stock options	$ 17,390	$ 5,782

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Basis of Accounting [Text Block]	Note 1. The accompanying (a) condensed balance sheet as of September 30, 2018, three nine June 30, 2019 not 10 September 30, 2018. 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 Recently Adopted Accounting Pronouncements Effective October 1, 2018, 2014 09, Revenue from Contracts with Customers (Topic 606 2015 14, Revenue from Contracts with Customers (Topic 606 2014 09 one 2014 09 605, Revenue Recognition, 2014 09, no 5,

Note 2 - Net Income Per Share

Note 2 - Net Income Per Share	9 Months Ended
	Jun. 30, 2019
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, 2019 2018: Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 Net income $ 1,300,527 $ 1,755,232 $ 2,678,429 $ 2,393,014 Weighted average common shares 13,446,289 13,430,503 13,422,885 13,441,619 Dilutive potential common shares 5,382 - 11,124 31,504 Weighted average dilutive common shares outstanding 13,451,671 13,430,503 13,434,009 13,473,123 Net income per common share: Basic $ 0.10 $ 0.13 $ 0.20 $ 0.18 Diluted $ 0.10 $ 0.13 $ 0.20 $ 0.18

Note 3 - Cash, Cash Equivalents

Note 3 - Cash, Cash Equivalents and Investments	9 Months Ended
	Jun. 30, 2019
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 investments as of June 30, 2019 September 30, 2018 June 30, 2019 September 30, 2018 Less than one year $ 14,638,219 $ 8,930,225 1-5 years 22,519,000 17,974,000 Total $ 37,157,219 $ 26,904,225

Note 4 - Stock-based Compensati

Note 4 - Stock-based Compensation	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Share-based Payment Arrangement [Text Block]	Note 4. The Company recorded $433,438 $1,535,628 three nine June 30, 2019, three June 30, 2019, $410,784 $22,654 nine June 30, 2019, $1,450,493 $85,139 $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 June 30, 2019, $2,553,214 5.2 Stock Options The Company uses the Black-Scholes option pricing model to determine the fair value of stock options granted. During the nine June 30, 2019, 172,000 four three $12.17. nine June 30, 2018, 72,000 five three $13.35. nine June 30, 2019 $3.53. This fair value was estimated at the grant date using the assumptions listed below: Nine months ended June 30, 2019 Dividend yield 0 % Average expected volatility 37.77 % Average risk-free interest rate 2.92 % Expected life (years) 3 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 Options are granted at fair market values determined on the date of grant and vesting normally occurs over a three five one six six The following is a summary of stock option activity during the nine June 30, 2019: Number of options Weighted average exercise price Outstanding at September 30, 2018 138,500 $ 10.99 Granted 172,000 12.17 Exercised (6,750 ) 2.58 Cancelled or Forfeited (12,000 ) 12.17 Outstanding at June 30, 2019 291,750 $ 11.83 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, 2019, 1.14 $253,413. nine June 30, 2019, $24 nine June 30, 2018, $21,174 Restricted Stock The Company’s 2007 one ten During the nine June 30, 2019, 4,340 one $14.40 During the nine June 30, 2018, 3,795 one $16.45 3,000 one $13.35 Restricted stock transactions during the nine June 30, 2019 Number of shares Weighted average grant date fair value Unvested shares at September 30, 2018 248,613 $ 14.65 Granted 4,340 14.40 Vested (84,237 ) 17.16 Forfeited (11,230 ) 14.44 Unvested at June 30, 2019 157,486 $ 13.31 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, 2019 December 31, 2018, 19,923 17,312 $8.43 June 30, 2019, 49,846

Note 5 - Revenue

Note 5 - Revenue	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	Note 5. Revenue Recognition Net sales include products and shipping and handling charges. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. We recognize revenue by transferring the promised products to the customer, with substantially all revenue recognized at the point in time the customer obtains control of the products. Revenue which has been recognized but not Disaggregation of Revenue The Company allocates sales from external customers to geographic areas based on the location to which the product is transported. Sales outside the United States are principally to countries in the Caribbean, Canada, Central and South America. Our revenues related to the following geographic areas were as follows for the three nine Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 United States $ 20,243,752 $ 19,669,143 $ 55,861,025 $ 51,232,706 All other countries 1,648,490 1,811,447 5,204,734 3,945,663 Total Net Sales $ 21,892,242 $ 21,480,590 $ 61,065,759 $ 55,178,369 In addition to a proprietary product line designed for the broadband service provider marketplace, Clearfield provides build-to-print services for original equipment manufacturers requiring copper and fiber cable assemblies built to their specification. The percentages of our sales by markets were as follows for the three nine Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 Broadband service providers 97 % 96 % 95 % 95 % Build-to-print customers 3 % 4 % 5 % 5 % Total Net Sales 100 % 100 % 100 % 100 % Accounts Receivable Credit is extended based on the evaluation of a customer’s financial condition and collateral is generally not June 30, 2019 September 30, 2018, $289,085 $79,085, See Note 7,

Note 6 - Inventories

Note 6 - Inventories	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note 6. Inventories consist of the following as of: June 30, 2019 September 30, 2018 Raw materials $ 6,601,647 $ 6,013,166 Work-in-progress 773,652 560,988 Finished goods 2,048,963 3,475,981 Inventories, net $ 9,424,262 $ 10,050,135

Note 7 - Major Customer Concent

Note 7 - Major Customer Concentration	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	Note 7. For the three June 30, 2019, 19% 12%, nine June 30, 2019, 18% 10%, 11% three June 30, 2018, 20% 13%, nine June 30, 2018, 22% 14%, As of June 30, 2019, 17% 15%, September 30, 2018, 35% 10%,

Note 8 - Goodwill and Patents

Note 8 - Goodwill and Patents	9 Months Ended
	Jun. 30, 2019
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, 2018 not nine June 30, 2019, 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, 2019, 17

Note 9 - Income Taxes

Note 9 - Income Taxes	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 9. For the three nine June 30, 2019, $454,000 $849,000, 25.9% 24.1%, 2017 December 22, 2017. January 1, 2018 three nine June 30, 2019, As of both June 30, 2019 September 30, 2018, $105,000 not $32,000 nine June 30, 2018. no three nine June 30, 2019. For the three nine June 30, 2018, $766,000 $462,000, 30.4% 16.2%, nine June 30, 2018 three 2018. nine one $384,000 nine June 30, 2018 nine June 30, 2018. discrete items for the three nine 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, 2019, not not 12

Note 10 - Accounting Pronouncem

Note 10 - Accounting Pronouncements	9 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Note 10. In February 2016, 2016 02, Leases 12 December 15, 2018, The Company has begun evaluating the new lease standard, including the review and implementation of the necessary changes to our existing processes and systems that will be required to implement this new standard effective with the Company’s fiscal year beginning October 1, 2019. 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, 2019
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 Net income $ 1,300,527 $ 1,755,232 $ 2,678,429 $ 2,393,014 Weighted average common shares 13,446,289 13,430,503 13,422,885 13,441,619 Dilutive potential common shares 5,382 - 11,124 31,504 Weighted average dilutive common shares outstanding 13,451,671 13,430,503 13,434,009 13,473,123 Net income per common share: Basic $ 0.10 $ 0.13 $ 0.20 $ 0.18 Diluted $ 0.10 $ 0.13 $ 0.20 $ 0.18

Note 3 - Cash, Cash Equivalen_2

Note 3 - Cash, Cash Equivalents and Investments (Tables)	9 Months Ended
	Jun. 30, 2019
Notes Tables
Investments Classified by Contractual Maturity Date [Table Text Block]	June 30, 2019 September 30, 2018 Less than one year $ 14,638,219 $ 8,930,225 1-5 years 22,519,000 17,974,000 Total $ 37,157,219 $ 26,904,225

Note 4 - Stock-based Compensa_2

Note 4 - Stock-based Compensation (Tables)	9 Months Ended
	Jun. 30, 2019
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Nine months ended June 30, 2019 Dividend yield 0 % Average expected volatility 37.77 % Average risk-free interest rate 2.92 % Expected life (years) 3 Vesting period (years) 3
Share-based Payment Arrangement, Option, Activity [Table Text Block]	Number of options Weighted average exercise price Outstanding at September 30, 2018 138,500 $ 10.99 Granted 172,000 12.17 Exercised (6,750 ) 2.58 Cancelled or Forfeited (12,000 ) 12.17 Outstanding at June 30, 2019 291,750 $ 11.83
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]	Number of shares Weighted average grant date fair value Unvested shares at September 30, 2018 248,613 $ 14.65 Granted 4,340 14.40 Vested (84,237 ) 17.16 Forfeited (11,230 ) 14.44 Unvested at June 30, 2019 157,486 $ 13.31

Note 5 - Revenue (Tables)

Note 5 - Revenue (Tables)	9 Months Ended
	Jun. 30, 2019
Notes Tables
Disaggregation of Revenue [Table Text Block]	Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 United States $ 20,243,752 $ 19,669,143 $ 55,861,025 $ 51,232,706 All other countries 1,648,490 1,811,447 5,204,734 3,945,663 Total Net Sales $ 21,892,242 $ 21,480,590 $ 61,065,759 $ 55,178,369 Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 Broadband service providers 97 % 96 % 95 % 95 % Build-to-print customers 3 % 4 % 5 % 5 % Total Net Sales 100 % 100 % 100 % 100 %

Note 6 - Inventories (Tables)

Note 6 - Inventories (Tables)	9 Months Ended
	Jun. 30, 2019
Notes Tables
Schedule of Inventory, Current [Table Text Block]	June 30, 2019 September 30, 2018 Raw materials $ 6,601,647 $ 6,013,166 Work-in-progress 773,652 560,988 Finished goods 2,048,963 3,475,981 Inventories, net $ 9,424,262 $ 10,050,135

Note 2 - Net Income Per Share -

Note 2 - Net Income Per Share - Weighted Average Common Shares Outstanding (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net income	$ 1,300,527	$ 1,755,232	$ 2,678,429	$ 2,393,014
Weighted average common shares (in shares)	13,446,289	13,430,503	13,422,885	13,441,619
Dilutive potential common shares (in shares)	5,382		11,124	31,504
Weighted average dilutive common shares outstanding (in shares)	13,451,671	13,430,503	13,434,009	13,473,123
Net income per common share:
Basic (in dollars per share)	$ 0.10	$ 0.13	$ 0.20	$ 0.18
Diluted (in dollars per share)	$ 0.10	$ 0.13	$ 0.20	$ 0.18

Note 3 - Cash, Cash Equivalen_3

Note 3 - Cash, Cash Equivalents and Investments (Details Textual)	9 Months Ended
	Jun. 30, 2019
Maximum [Member]
Held-to-maturity Securities, Investment Term	5 years

Note 3 - Cash, Cash Equivalen_4

Note 3 - Cash, Cash Equivalents and Investments - Maturity Date of CDs (Details) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Less than one year	$ 14,638,219	$ 8,930,225
1-5 years	22,519,000	17,974,000
Total	$ 37,157,219	$ 26,904,225

Note 4 - Stock-based Compensa_3

Note 4 - Stock-based Compensation (Details Textual) - USD ($)	3 Months Ended		6 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Payment Arrangement, Expense	$ 433,438	$ 519,223			$ 1,535,628	$ 1,488,304
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	2,553,214		$ 2,553,214		$ 2,553,214
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition					5 years 73 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross					172,000	72,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period					4 years	5 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years	3 years
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price					$ 12.17	$ 13.35
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value					$ 3.53
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term					1 year 51 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 253,413		$ 253,413		$ 253,413
Proceeds from Stock Options Exercised					$ 24	$ 21,174
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			19,923	17,312
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price			$ 8.43	$ 8.43
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	49,846		49,846		49,846
Share-based Payment Arrangement, Option [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period					6 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					1 year
Share-based Payment Arrangement, Option [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					3 years
Share-based Payment Arrangement, Option [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					5 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period					4,340
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value					$ 14.40
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
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					4,340	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					$ 14.40	$ 16.45
Restricted Stock [Member] | Minimum [Member] | Employees [Member] | Stock Compensation Plan 2007 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period					1 year
Restricted Stock [Member] | Maximum [Member] | Employees [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]
Share-based Payment Arrangement, Expense	$ 410,784	477,193			$ 1,450,493	$ 1,362,213
Cost of Sales [Member]
Share-based Payment Arrangement, Expense	$ 22,654	$ 42,030			$ 85,139	$ 126,091

Note 4 - Stock-based Compensa_4

Note 4 - Stock-based Compensation - Valuation Assumptions (Details)	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Dividend yield	0.00%
Average expected volatility	37.77%
Average risk-free interest rate	2.92%
Expected life (years) (Year)	3 years
Vesting period (years) (Year)	3 years	3 years

Note 4 - Stock-based Compensa_5

Note 4 - Stock-based Compensation - Option Transaction Summary (Details) - $ / shares	9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Options, outstanding (in shares)	138,500
Weighted-average exercise price, outstanding (in dollars per share)	$ 10.99
Granted (in shares)	172,000	72,000
Weighted-average exercise price, Granted (in dollars per share)	$ 12.17	$ 13.35
Exercised (in shares)	(6,750)
Weighted-average exercise price, Exercised (in dollars per share)	$ 2.58
Cancelled or Forfeited (in shares)	(12,000)
Weighted-average exercise price, Cancelled or Forfeited (in dollars per share)	$ 12.17
Options, outstanding (in shares)	291,750
Weighted-average exercise price, outstanding (in dollars per share)	$ 11.83

Note 4 - Stock-based Compensa_6

Note 4 - Stock-based Compensation - Restricted Stock Transactions (Details) - Restricted Stock [Member]	9 Months Ended
	Jun. 30, 2019$ / sharesshares
Balance, unvested shares (in shares) | shares	248,613
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 14.65
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares	4,340
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 14.40
Vested (in shares) | shares	(84,237)
Vested (in dollars per share) | $ / shares	$ 17.16
Forfeited (in shares) | shares	(11,230)
Forfeited (in dollars per share) | $ / shares	$ 14.44
Balance, unvested shares (in shares) | shares	157,486
Balance, weighted-average grant date fair value (in dollars per share) | $ / shares	$ 13.31

Note 5 - Revenue (Details Textu

Note 5 - Revenue (Details Textual) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Accounts Receivable, Allowance for Credit Loss, Current	$ 289,085	$ 79,085

Note 5 - Revenue - Disaggregati

Note 5 - Revenue - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Total Net Sales	$ 21,892,242	$ 21,480,590	$ 61,065,759	$ 55,178,369
Percent of net sales	100.00%	100.00%	100.00%	100.00%
Broadband Service Providers [Member]
Percent of net sales	97.00%	96.00%	95.00%	95.00%
Build-to-print Customers [Member]
Percent of net sales	3.00%	4.00%	5.00%	5.00%
UNITED STATES
Total Net Sales	$ 20,243,752	$ 19,669,143	$ 55,861,025	$ 51,232,706
Non-US [Member]
Total Net Sales	$ 1,648,490	$ 1,811,447	$ 5,204,734	$ 3,945,663

Note 6 - Inventories - Componen

Note 6 - Inventories - Components of Inventory (Details) - USD ($)	Jun. 30, 2019	Sep. 30, 2018
Raw materials	$ 6,601,647	$ 6,013,166
Work-in-progress	773,652	560,988
Finished goods	2,048,963	3,475,981
Inventories, net	$ 9,424,262	$ 10,050,135

Note 7 - Major Customer Conce_2

Note 7 - Major Customer Concentration (Details Textual) - Customer Concentration Risk [Member]	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2018
Revenue Benchmark [Member] | Customer A [Member]
Concentration Risk, Percentage	19.00%	20.00%	18.00%	22.00%
Revenue Benchmark [Member] | Customer B [Member]
Concentration Risk, Percentage	12.00%	13.00%	10.00%	14.00%
Revenue Benchmark [Member] | Customer C [Member]
Concentration Risk, Percentage			11.00%
Accounts Receivable [Member] | Customer A [Member]
Concentration Risk, Percentage			17.00%		10.00%
Accounts Receivable [Member] | Customer B [Member]
Concentration Risk, Percentage			15.00%
Accounts Receivable [Member] | Customer C [Member]
Concentration Risk, Percentage					35.00%

Note 8 - Goodwill and Patents (

Note 8 - Goodwill and Patents (Details Textual) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018USD ($)	Jun. 30, 2019USD ($)
Goodwill, Impairment Loss	$ 0	$ 0
Number of Patents Granted		17
Patents [Member]
Finite-Lived Intangible Asset, Useful Life		20 years

Note 9 - Income Taxes (Details

Note 9 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Sep. 30, 2018
Income Tax Expense (Benefit), Total	$ 454,000	$ 766,000	$ 849,000	$ 462,000
Effective Income Tax Rate Reconciliation, Percent, Total	25.90%	30.40%	24.10%	16.20%
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	$ 105,000		$ 105,000		$ 105,000
State and Local Jurisdiction [Member] | Deferred Tax Assets Related to Operating Loss Carryforwards [Member]
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount				$ 32,000