Sevcon 10-Q 14 Feb 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2016	Feb. 06, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	SEVCON, INC.
Entity Central Index Key	825,411
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,341,993
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2016

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 10,400	$ 14,127
Trade receivables, net of allowances for doubtful accounts of $227 at December 31, 2016 and $243 at September 30, 2016	10,275	11,499
Other receivables	869	694
Inventories	14,884	13,666
Prepaid expenses and other current assets	3,407	3,602
Total current assets	39,835	43,588
Property, plant and equipment, at cost:
Land and improvements	18	18
Buildings and improvements	1,015	1,069
Equipment	11,800	12,166
Property, plant and equipment, at cost	12,833	13,253
Less: accumulated depreciation	(9,159)	(9,410)
Net property, plant and equipment	3,674	3,843
Long-term deferred tax assets	4,674	4,289
Intangible assets, net	8,751	9,185
Goodwill	7,631	7,794
Other long-term assets	278	274
Total assets	64,843	68,973
Current liabilities:
Accounts payable	9,924	10,604
Accrued expenses	5,137	4,931
Accrued income taxes	30	66
Dividends payable	0	216
Due to related parties	282	300
Total current liabilities	15,373	16,117
Long-term bank debt, net	14,584	15,512
Long-term debt to related parties	1,473	1,558
Long-term pension benefit liabilities	10,779	11,511
Long-term deferred tax liabilities	1,448	1,517
Other long-term liabilities	965	987
Total liabilities	44,622	47,202
Commitments and contingencies (Note 16)
Stockholders' equity:
Convertible preferred stock, par value $.10 per share - 1,000,000 shares authorized; 448,545 and 448,705 shares issued and outstanding at December 31, 2016 and September 30, 2016, respectively	45	45
Common stock, par value $.10 per share - 20,000,000 shares authorized; 5,341,993 and 5,341,513 shares issued and outstanding at December 31, 2016 and September 30, 2016, respectively	534	534
Common stock warrants	2,095	2,095
Additional paid in capital, common stock	19,395	19,151
Additional paid in capital, preferred stock	8,986	8,990
Retained earnings	1,917	4,344
Accumulated other comprehensive loss	(12,718)	(13,420)
Total parent stockholders' equity	20,254	21,739
Non-controlling interest	(33)	32
Total stockholders' equity	20,221	21,771
Total liabilities and stockholders' equity	$ 64,843	$ 68,973

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Current assets:
Trade receivables, allowances for doubtful accounts	$ 227	$ 243
Stockholders' equity:
Convertible preferred stock, par value (in dollars per share)	$ 0.10	$ 0.10
Convertible preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Convertible preferred stock, shares issued (in shares)	448,545	448,705
Convertible preferred stock, shares outstanding (in shares)	448,545	448,705
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	5,341,993	5,341,513
Common stock, shares outstanding (in shares)	5,341,993	5,341,513

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) [Abstract]
Net sales	$ 12,543	$ 9,115
Cost of sales	(9,790)	(4,999)
Gross profit	2,753	4,116
Selling, general and administrative expenses	(3,731)	(2,760)
Research and development expenses	(1,441)	(860)
Acquisition costs	0	(316)
Operating (loss) income	(2,419)	180
Interest expense	(138)	(22)
Interest and other income	18	8
Foreign currency loss	(442)	(71)
(Loss) income before income tax	(2,981)	95
Income tax benefit (provision)	489	(11)
Net (loss) income	(2,492)	84
Net loss attributable to non-controlling interests	65	38
Net (loss) income attributable to Sevcon, Inc. and subsidiaries	(2,427)	122
Preference share dividends	(91)	(111)
Net (loss) income attributable to common stockholders	$ (2,518)	$ 11
Net (loss) income per ordinary share - basic (in dollars per share)	$ (0.48)	$ 0
Net (loss) income per ordinary share - diluted (in dollars per share)	$ (0.48)	$ 0
Weighted average shares used in computation of earnings per share:
Basic (in shares)	5,214	3,429
Diluted (in shares)	5,214	3,576

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) [Abstract]
Net (loss) income attributable to Sevcon, Inc. and subsidiaries	$ (2,427)	$ 122
Other comprehensive income (loss):
Foreign currency translation adjustment	635	(78)
Defined benefit pension plans:
Actuarial loss, net of tax benefit of $22 and $18, respectively	67	59
Comprehensive (loss) income	$ (1,725)	$ 103

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Defined benefit pension plans:
Actuarial loss, tax benefit	$ 22	$ 18

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Cash flow from operating activities:
Net (loss) income	$ (2,492)	$ 84
Adjustments to reconcile net (loss) income to net cash used by operating activities:
Depreciation and amortization	448	169
Stock-based compensation	242	152
Pension contributions greater than pension expense	(93)
Pension contributions less than pension expense		8
Deferred tax (benefit) provision	(533)	11
Increase (decrease) in cash resulting from changes in operating assets and liabilities:
Trade receivables	608	890
Other receivables	(87)	(279)
Inventories	(1,851)	(1,539)
Prepaid expenses and other current assets	(137)	370
Accounts payable	(145)	(1,090)
Accrued expenses	484	(166)
Accrued income taxes	22	(31)
Bank overdraft	0	172
Net cash used by operating activities	(3,534)	(1,249)
Cash flow used by investing activities:
Acquisition of property, plant and equipment	(247)	(323)
Net cash used by investing activities	(247)	(323)
Cash flow (used by) generated from financing activities:
Net borrowings (repayment) of debt	(945)	500
Dividends paid	(215)	(217)
Net cash (used by) generated from financing activities	(1,160)	283
Effect of exchange rate changes on cash	1,214	28
Net decrease in cash	(3,727)	(1,261)
Beginning balance - cash and cash equivalents	14,127	8,048
Ending balance - cash and cash equivalents	10,400	6,787
Supplement disclosure of cash flow information:
Cash paid for income taxes, net of refunds	97	31
Cash paid for interest	138	21
Conversion of preferred stock to common stock	$ 3	$ 0

Basis of presentation

Basis of presentation	3 Months Ended
	Dec. 31, 2016
Basis of presentation [Abstract]
Basis of presentation	(1) Basis of presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position of Sevcon, Inc. ( the “Company”) and subsidiaries as of December 31, 2016 and the results of operations and cash flows for the three month period ended December 31, 2016. The accompanying unaudited consolidated financial statements should be read in conjunction with the 2016 annual consolidated financial statements and related notes included in the 2016 Sevcon, Inc. Annual Report filed on Form 10-K (“2016 10-K”). The results of operations for the three month period ended December 31, 2016 are not necessarily indicative of the results to be expected for the full year. Unless otherwise indicated, each reference to a “year” means the Company’s fiscal year, which ends on September 30. Accounting for wholly-owned subsidiaries The accompanying unaudited consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries; Sevcon USA, Inc., Sevcon Ltd, Industrial Capacitors (Wrexham) Ltd., Sevcon Asia Limited, Sevcon Japan KK, Sevcon Security Corp., Sevcon S.r.l. and Bassi S.r.l., in accordance with the provisions required by the Consolidation Topic 810 of the FASB Accounting Standards Codification (“ASC”). All material intercompany transactions have been eliminated. Accounting for joint-venture subsidiary For the Company's less than wholly-owned subsidiary, Sevcon New Energy Technology (Hubei) Company Limited in China, the Company first analyzes whether this joint venture subsidiary is a variable interest entity (a “VIE”) in accordance with ASC 810 and if so, whether the Company is the primary beneficiary requiring consolidation. A VIE is an entity that has (i) insufficient equity to permit it to finance its activities without additional subordinated financial support or (ii) equity holders that lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary, which is the entity that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that potentially could be significant to the entity. Variable interests in a VIE are contractual, ownership, or other financial interests in a VIE that change with changes in the fair value of the VIE’s net assets. The Company continuously re-assesses at each level of the joint venture whether the entity is (i) a VIE, and (ii) if the Company is the primary beneficiary of the VIE. If it is determined that the entity in which the Company holds its interest qualifies as a VIE and the Company is the primary beneficiary, it is consolidated. Based on the Company's analysis of its 50% owned joint venture, the Company has determined that it is a VIE and that the Company is the primary beneficiary. While the Company owns 50% of the equity interest in this subsidiary, the other 50% is owned by a local unrelated third party, and the joint venture agreement with that third party provides the Company with greater voting rights. Accordingly, the Company consolidates its joint venture under the VIE rules and reflects the third party’s 50% interest in the consolidated financial statements as a non-controlling interest. The Company records this non-controlling interest at its initial fair value, adjusting the basis prospectively for their share of the respective consolidated investments’ net income or loss or equity contributions and distributions. This non-controlling interest is not redeemable by the equity holders and is presented as part of permanent equity. Income and losses are allocated to the non-controlling interest holder based on its economic ownership percentage.

Summary of significant accounti

Summary of significant accounting policies	3 Months Ended
	Dec. 31, 2016
Summary of significant accounting policies [Abstract]
Summary of significant accounting policies	(2) Summary of significant accounting policies There have been no changes since the end of 2016 to the significant accounting policies followed by Sevcon, Inc. and subsidiaries.

Acquisitions

Acquisitions	3 Months Ended
	Dec. 31, 2016
Acquisitions [Abstract]
Acquisitions	(3) Acquisition Bassi Unipersonale S.r.l (“Bassi”) On January 26, 2016, the Company acquired Bassi which designs, manufactures and sells battery chargers for electric vehicles, power management and uninterrupted power source systems for industrial, medical and telecom applications, as well as electronic instrumentation for battery laboratories. This acquisition enables the Company to expand its addressable share of the high-growth electrification market and enhance earnings by adding an immediately accretive business. The total consideration for the transaction was approximately $19.1 million which consisted of approximately $10.8 million cash, $4.8 million value of the Company’s common stock and $3.5 million at fair value of assumed dividends payable to Bassi Holding, the former owner of Bassi. The Company acquired approximately $10.2 million of intangible assets, which primarily consisted of customer relationships, $6.4 million of goodwill and $2.5 million of other assets, net of liabilities. The Company is required to distribute approximately $3.5 million of assumed dividends in increments over a three-year period, post-closing. The Company accounted for this acquisition as a business combination using the acquisition method of accounting. During the three month periods ended December 31, 2016 and January 2, 2016 the Company recognized expense for acquisition-related items, of $0 and $316,000, respectively. For more information on this acquisition, refer to Note 2 to the consolidated financial statements included in the Company’s 2016 10-K. Pro Forma Summary The unaudited consolidated pro forma results for the three month periods ended December 31, 2016 and January 2, 2016 are shown below. The pro forma consolidated results combine the results of operations of the Company and Bassi as though Bassi had been acquired on October 1, 2015 and include amortization charges for the acquired intangibles and interest expense related to the Company’s borrowings to finance the acquisition. The unaudited January 2, 2016 pro forma results were adjusted to include $266,000 of intangible assets amortization expense associated with the business combination and $127,000 of interest expense relating to the credit facility entered into to part-fund the Bassi acquisition, and to exclude $316,000 of acquisition-related expense. The unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on October 1, 2015. (in thousands of dollars) Three Months ended December 31, 2016 January 2, 2016 Revenue $ 12,543 $ 12,701 Net (loss) income $ (2,497 ) $ 164

Stock-based compensation plans

Stock-based compensation plans	3 Months Ended
	Dec. 31, 2016
Stock-based compensation plans [Abstract]
Stock-based compensation plans	(4) Stock-based compensation plans Under the Company’s 1996 Equity Incentive Plan (the “Plan”) there were 326,567 shares reserved and available for grant at December 31, 2016. During 2016 an additional 250,000 shares were authorized for issuance under the Plan. There have been no options exercised in 2017. The Plan, which is shareholder-approved, permits the grant of restricted stock, restricted stock units, stock options and stock appreciation rights (“SARs”).SARs may be awarded either separately, or in relation to options granted, and for the grant of bonus shares. Options granted are exercisable at a price not less than fair market value on the date of grant. Stock options The Company estimated the fair values of its stock options using the Black-Scholes-Merton option-pricing model, which was developed for use in estimating the fair values of stock options. Option valuation models, including the Black-Scholes-Merton option-pricing model, require the input of assumptions, including stock price volatility. Changes in the input assumptions can materially affect the fair value estimates and ultimately how much the Company recognizes as stock-based compensation expense. The fair values of the Company’s stock options were estimated at the grant dates. The weighted average input assumptions used and resulting fair values of stock options at December 31, 2016, were as follows: December 31, 2016 Executive and management options: Expected life (in years) 4.0 Risk-free interest rate 1.55 % Volatility 61.43 % Dividend yield 0.00 % Weighted-average fair value per share $ 4.81 Executive chairman options: Expected life (in years) 4.0 Risk-free interest rate 1.01% - 1.93 % Volatility 60.45% - 64.40 % Dividend yield 0.00 % Weighted-average fair value per share $ 3.56 - $3.80 Expected Life The expected term represents the period of time that options are expected to be outstanding. As the Company does not have sufficient historical evidence for determining the expected term of the stock option awards granted, the expected life assumption has been determined using the simplified method, which is an average of the contractual term of the option and its ordinary vesting period. Risk-free Interest Rate The Company bases the risk-free interest rate assumption on zero-coupon U.S. treasury instruments appropriate for the expected term of the stock option grants. Expected Volatility The expected stock price volatility for the Company’s common stock is estimated based on the historic volatility of the Company’s common stock for a period equivalent to the expected term of the stock option grants. Expected Dividend Yield The Company bases the expected dividend yield assumption on the fact that there is no present intention to pay cash dividends. Therefore an expected dividend yield of zero has been used. Performance based awards Stock options: In December 2015, the Compensation Committee awarded performance-based equity compensation to nine executives and managers, including the principal executive officer and principal financial officer, consisting of 38,460 shares in the form of stock options. The performance options have an exercise price of $9.94 per share, representing the average of the highest intraday bid and ask quotes for the Company’s common stock on the date of grant, December 16, 2015, and the preceding four trading days. The performance options will vest subject to the Company meeting an earnings per share target applicable to fiscal year 2018 set by the Compensation Committee so long as the employee is then employed by the Company. The Company estimated the fair values of its stock options using the Black-Scholes-Merton option-pricing model. The estimated fair value of the stock options on the date of the grant was $185,000. The unvested compensation is being expensed over three years. The expense for these employee stock option grants was $14,424 and $2,658 for the three month periods ended December 31, 2016 and January 2, 2016, respectively. A summary of performance based option activity under the share option plan as of December 31, 2016, and changes during the three months then ended is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of September 30, 2016 38,460 $ 9.94 4.21 - Granted – Executives and management - - - - Exercised - - - - Forfeited or Expired - - - - Outstanding at December 31, 2016 38,460 $ 9.94 3.96 $ - Exercisable - - - - Vested and expected to vest 35,451 $ 9.94 3.96 $ - Restricted stock: In December 2015, the Company granted 11,540 shares of restricted stock to four employees which will vest subject to the Company meeting the same earnings per share target applicable to fiscal year 2018 as for the stock options disclosed above, so long as the employee is then employed by the Company. The estimated fair value of the stock on the date of the grant was $116,000 based on the fair market value of stock on the date of issue. The unvested compensation is being expensed over three years. Management has assessed the performance criteria relating to these grants and concluded they are likely to be met. Accordingly the relevant portion of the expense has been recorded through December 31, 2016. The expense for these employee stock option grants was $9,038 and $1,665 for the three month periods ended December 31, 2016 and January 2, 2016, respectively. Time-based awards Stock options: In August 2016, the Board of Directors awarded the Executive Chairman equity compensation consisting of stock options to purchase 56,700 shares. The options were granted in two tranches. The first tranche, consisting of 36,496 options with an exercise price of $10.93 per share, would vest in twelve substantially equal monthly installments beginning September 2016, and the second tranche, consisting of 20,204 options with an exercise price of $12.35 per share, would vest in twelve substantially equal monthly installments beginning September 2017, in each case so long as the director is in the position of Executive Chairman. The Company estimated the fair values of its stock options using the Black-Scholes-Merton option-pricing model. The estimated fair value of the stock options on the date of the grant was $211,000. The Executive Chairman position was terminated on December 6, 2016, as a result of which 12,165 vested options are exercisable for three months, and all unvested options expired. The expense for these restricted stock option grants was $30,584 and $0 for the three months ended December 31, 2016 and January 2, 2016, respectively. A summary of time based option activity under the share option plan as of December 31, 2016, and changes during the three months then ended is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of September 30, 2016 12,165 $ 10.93 4.08 - Granted - - - - Exercised - - - - Forfeited or Expired - - - - Outstanding at December 31, 2016 12,165 $ 10.93 3.67 $ - Exercisable - - - - Vested 12,165 $ 10.93 3.67 $ - Restricted stock: In February 2016, the Company granted 29,700 shares of restricted stock to nine non-employee directors, which will vest on the day before the 2017 annual general meeting providing that the grantee remains a director of the Company, or as otherwise determined by the Compensation Committee. The aggregate fair value of the stock measured on the date of the grant was $292,000 based on the closing sale price of the stock on the date of grant. Subsequent to the February 2016 grant, 3,300 of these granted shares of restricted stock were cancelled and returned to the Plan following the resignation of a director. Compensation expense is being expensed on a straight line basis over the twelve month period during which the forfeiture conditions lapse. The expense for these restricted stock grants was $64,812 and $0 for the three month periods ended December 31, 2016 and January 2, 2016, respectively. For the purposes of calculating average issued shares for basic earnings per share, these shares are only considered to be outstanding when the forfeiture conditions lapse and the shares vest. A summary of restricted stock and stock option activity, including both performance based awards and time-based awards, for the three month period ended December 31, 2016, is as follows: Number of shares of Restricted Stock Weighted Average Grant-Date Fair Value Non-vested balance as of September 30, 2016 138,940 $ 6.50 Vested (60,000 ) $ 6.39 Non-vested balance as of December 31, 2016 78,940 $ 6.58 Number of shares of Stock Options Weighted Average Grant-Date Fair Value Non-vested balance as of September 30, 2016 50,625 $ 4.6 7 Non-vested balance as of December 31, 2016 50,625 $ 4.67 Stock-based compensation expense was $242,000 and $152,000 for the three month periods ended December 31, 2016 and January 2, 2016, respectively. At December 31, 2016, there was $327,348 of unrecognized compensation expense related to restricted stock and stock options granted under the Plan. The Company expects to recognize that cost over a weighted average period of 2 years.

Cash dividends

Cash dividends	3 Months Ended
	Dec. 31, 2016
Cash dividends [Abstract]
Cash dividends	(5) Cash dividends Common stock dividends – Preferred Stock dividends -

Calculation of earnings per sha

Calculation of earnings per share and weighted average shares outstanding	3 Months Ended
	Dec. 31, 2016
Calculation of earnings per share and weighted average shares outstanding [Abstract]
Calculation of earnings per share and weighted average shares outstanding	(6) Calculation of earnings per share and weighted average shares outstanding Basic earnings per share is computed by dividing the net income or loss for the period by the weighted average number of shares of common stock outstanding during the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased for the assumed exercise of dilutive options and other potentially dilutive securities, including convertible preferred stock, using the treasury stock method unless the effect is anti-dilutive. For the December 31, 2016 calculation 1,346,000 shares of common stock issuable on conversion of our Series A Convertible Preferred Stock, 81,000 shares of unvested restricted stock and 50,625 outstanding stock options were not included in the computation of diluted earnings per share because it would have been anti-dilutive for the period presented. Basic and diluted net (loss) income per common share for the three month periods ended December 31, 2016 and January 2, 2016, is calculated as follows: (in thousands of dollars except per share data) Three months ended December 31, 2016 January 2, 2016 Numerator: Net (loss) income attributable to common stockholders for computing net (loss) income per ordinary share – basic $ (2,518 ) $ 11 Denominator: Weighted average shares used in calculating net income (loss) per ordinary share – basic 5,214 3,429 Adjustment for shares issuable upon vesting of restricted stock - 147 Weighted average shares used in calculating net (loss) income per ordinary share – diluted 5,214 3,576 Net (loss) income per ordinary share – basic $ (0.48 ) $ 0.00 Net (loss) income per ordinary share – diluted $ (0.48 ) $ 0.00

Segment information

Segment information	3 Months Ended
	Dec. 31, 2016
Segment information [Abstract]
Segment information	(7) Segment information The Company has three reportable segments: electronic controls, capacitors and battery chargers. The electronic controls segment produces microprocessor based control systems for zero emission and hybrid electric vehicles. The capacitor segment produces special-metalized film capacitors for sale to electronic equipment manufacturers. The battery chargers segment designs and manufactures battery chargers for electric vehicles. Each segment has its own management team and sales force and the capacitor and battery charger segments have their own manufacturing facilities. The significant accounting policies of the segments are the same as those described in Note 1 and in 2016 10-K Note 1. Inter-segment revenues are accounted for at current market prices. The Company evaluates the performance of each segment principally based on operating income. The Company does not allocate corporate expense, acquisition costs, income taxes, interest income and expense or foreign currency translation gains and losses to segments. Information concerning operations of these businesses is as follows: (in thousands of dollars) Three months ended December 31, 2016 Controls Capacitors Chargers Corporate Total Sales to external customers 7,135 247 5,161 - 12,543 Operating loss (2,050 ) (61 ) (15 ) (293 ) (2,419 ) Identifiable assets, excluding goodwill 27,361 796 20,399 8,656 57,212 Goodwill 1,435 - 6,196 - 7,631 Three months ended January 2, 2016 Controls Capacitors Chargers Corporate Total Sales to external customers 8,707 408 - - 9,115 Operating income (loss) 484 (43 ) - (261 ) 180 Identifiable assets, excluding goodwill 32,099 889 - 154 33,142 Goodwill 1,435 - - - 1,435 The analysis of revenues shown below is by the location of the business selling the products rather than by destination of the products. (in thousands of dollars) Three Months ended December 31, 2016 January 2, 2016 Sales:- U.S. sales $ 3,944 $ 4,104 Foreign sales: United Kingdom 1,364 3,454 Italy 5,161 - France 1,533 1,284 China 541 273 Total foreign sales 8,599 5,011 Total Sales $ 12,543 $ 9,115 In the electronic controls segment, revenues are derived from the following products and services: (in thousands of dollars) Three Months ended December 31, 2016 January 2, 2016 Electronic controls for zero emission and hybrid electric vehicles $ 4,478 $ 6,450 Accessory and aftermarket products and services 2,657 2,257 Total controls segment revenues $ 7,135 8,707 The Company has businesses located in the United States, United Kingdom, Italy, France, Korea, Japan and China. (in thousands of dollars) Three Months ended December 31, 2016 September 30, 2016 Long-term assets: U.S.A. $ 2,275 $ 2,224 Foreign: United Kingdom 6,086 5,891 Italy 15,943 16,580 France 333 302 Korea, Japan and China 371 388 Total Foreign 22,733 23,161 Total Long-Term Assets $ 25,008 $ 25,385

Research and development

Research and development	3 Months Ended
	Dec. 31, 2016
Research and development [Abstract]
Research and development	(8) Research and development The cost of research and development programs is charged against income as incurred and amounted to $1,441,000 and $860,000 for the three month periods December 31, 2016 and January 2, 2016, respectively, net of U.K. government grants received, “above the line” tax credits arising from U.K. government research and development incentives as well as research and development expense associated with engineering services revenue recorded in cost of sales. In 2015 the Company was awarded a grant of approximately $625,000 by the U.K. Regional Growth Fund, a U.K. government body. The grant is to develop an innovative range of low voltage motor controls which are designed to serve the emerging needs for on-road, automotive electrification. The grant includes a commitment to create or safeguard a total of twenty jobs at the Company’s U.K. facility over the period of the project. The Company recorded grant income from this project of $88, 000, which was offset against the Company’s research and development expense on this project of $362,000, for the three months ended December 31, 2016. The Company recorded grant income from this project of $30,000 which was offset against the Company’s research and development expense on this project of $165,000, for the three months ended January 2, 2016. During 2015 through 2017, the Company participated in a U.K. government research and development arrangement which allows U.K. companies to receive an additional available tax credit subject to meeting certain qualifying conditions. The credit is a percentage, which currently ranges from 11% to 14.5% depending on circumstances, of qualifying research and development expenditure in the period. The credit discharges income tax the Company would have to pay or allows companies without an income tax liability to receive a refund payment from the U.K. government. For the three months ended December 31, 2016 the Company recorded $134,000 (three months ended January 2, 2016 - $0) as a reduction in research and development expense in the unaudited consolidated statements of operations and had an income tax receivable balance of $667,000 at December 31, 2016 from this initiative (September 30, 2016 - $985,000), which is included within prepaid expenses and other current assets on the unaudited consolidated balance sheets.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2016
Income Taxes [Abstract]
Income Taxes	(9) Income Taxes The Company’s effective tax rate of 16.4% is significantly lower than the U.S. statutory rate of 34% primarily due to the fact that certain current year operating losses in the U.K. have been foregone in exchange for a cash refund, and in addition the local statutory rate in certain countries in which the Company operates, notably the U.K. (20%) and Italy, (24%) is lower than the U.S. statutory rate.

Employee benefit plans

Employee benefit plans	3 Months Ended
	Dec. 31, 2016
Employee benefit plans [Abstract]
Employee benefit plans	(10) Employee benefit plans Sevcon has defined contribution plans covering the majority of its U.S. and U.K. employees in the controls business. There is also a small defined contribution plan covering senior managers in the capacitor business. The Company has frozen U.K. and U.S. defined benefit plans for which no future benefits are being earned by employees. The Company uses a September 30 measurement date for its defined benefit pension plans. The Company’s French subsidiary, Sevcon S.A.S., has a liability to pay its employees a service and salary based award when they reach retirement age and leave the Company’s employment. This liability, which is unfunded, is recognized in accrued expenses and was $194,000 and $198,000 at December 31, 2016 and September 30, 2016, respectively. The obligation to pay this award is a French legal requirement and is only payable if the employee is employed by the Company when they retire; if they leave the Company prior to that time the award is no longer payable. The Company’s Italian subsidiary, Bassi S.r.l., has a liability to pay its employees a severance indemnity, ‘Trattamento di fine Rapporto’ (“TFR”) when they leave the Company’s employment. TFR, which is mandatory for Italian companies, is deferred compensation and is based on the employees’ years of service and the compensation earned by the employee during the service period. The related liability is recognized in the consolidated balance sheet within “Other long-term liabilities”. This liability, which is unfunded, was $965,000 and $987,000 at December 31, 2016 and September 30, 2016, respectively. The following table sets forth the components of the net pension cost for the three month periods ended December 31, 2016 and January 2, 2016, respectively: (in thousands of dollars) Three Months ended December 31, 2016 January 2, 2016 Interest cost $ 210 $ 296 Expected return on plan assets (249 ) (289 ) Amortization of net loss 89 77 Net periodic benefit cost 50 84 Net cost of defined contribution plans $ 110 $ 155 Net cost of all employee benefit plans $ 160 $ 239 The following table sets forth the movement in the liability for pension benefits, all of which is non-current, in the three month period ended December 31, 2016: (in thousands of dollars) Three Months ended December 31, 2016 Liability for pension benefits at beginning of period $ 11,511 Interest cost 210 Expected return on plan assets (249 ) Plan contributions (143 ) Effect of exchange rate changes (550 ) Liability for pension benefits at end of period 10,779 Sevcon, Inc. contributed $50,000 to its frozen U.S. defined benefit plan in the three months ended December 31, 2016; it presently anticipates contributing a further $150,000 to fund its U.S. plan in the remainder of fiscal 2017. In addition, employer contributions to the frozen U.K. defined benefit plan were $93,000 in the first three months and are estimated to total $648,000 in 2017. The tables below present information about the Company’s pension plan assets measured and recorded at fair value as of December 31, 2016 and September 30, 2016, and indicate the fair value hierarchy of the inputs utilized by the Company to determine the fair values. (in thousands of dollars) December 31, 2016 Level 1* (Quoted prices in active markets) Level 2** (Significant observable inputs) Level 3*** (Unobservable inputs) Adept Strategy 9 Fund (a sub-fund of Adept Investment Management plc) $ - $ 11,878 $ - Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds (funds managed by Schroder Investment Management Limited) - 4,800 - U.S. Mutual Funds and Fixed Income Funds 2,723 - - U.S. Equity Funds 414 - - Other Types of Investments 280 Cash 151 - - Total $ 3,568 $ 16,678 $ - (in thousands of dollars) September 30, 2016 Level 1* (Quoted prices in active markets) Level 2** (Significant observable inputs) Level 3*** (Unobservable inputs) Adept Strategy 9 Fund (a sub-fund of Adept Investment Management plc) $ - $ 13,268 $ - Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds (funds managed by Schroder Investment Management Limited) - 5,335 - U.S. Mutual Funds and Fixed Income Funds 2,837 - - U.S. Equity Funds 400 - - Other Types of Investments Cash 439 - - Total $ 3,676 $ 18,603 $ - * Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments primarily hold stocks or bonds, or a combination of stocks and bonds. ** Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The Company’s pension plan financial assets held in the Adept Strategy 9 Fund and the Schroder investments are Level 2 assets. The Company uses the Net Asset Value to determine the fair value of underlying investments which (a) do not have readily determinable fair value; and (b) prepare their financial statements consistent with the measurement principles of an investment company. The Funds are not exchange traded. The Funds are not subject to any redemption notice periods or restrictions and can be redeemed on a daily basis. No gates or holdbacks or dealing suspensions are being applied to the Funds. The Funds are of perpetual duration. *** The Company currently does not have any Level 3 pension plan financial assets. The estimated benefit payments, which reflect future service, as appropriate, for the years ended September 30 are as follows: (in thousands of dollars) 2017 $ 470 2018 488 2019 494 2020 502 2021 499 2022 – 2026 $ 2,722

Inventories

Inventories	3 Months Ended
	Dec. 31, 2016
Inventories [Abstract]
Inventories	(11) Inventories Inventories, net of reserve, were comprised of: (in thousands of dollars) December 31, 2016 September 30, 2016 Raw materials $ 6,610 $ 6,532 Work-in-process 294 266 Finished goods 7,980 6,868 $ 14,884 $ 13,666

Fair value of financial instrum

Fair value of financial instruments	3 Months Ended
	Dec. 31, 2016
Fair value of financial instruments [Abstract]
Fair value of financial instruments	(12) Fair value of financial instruments The Company's financial instruments consist mainly of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and debt. The carrying amount of these financial instruments, other than the debt, approximates their fair value as of December 31, 2016 due to their short-term nature. The fair value of the Company’s long-term bank debt at December 31, 2016 approximated $14,778,000 (the gross carrying value as of December 31, 2016 before the offset of debt issuance costs) based on recent financial market pricing. The bank debt represents a Level 2 liability in accordance with the fair value hierarchy described in Note 10.

Accrued expenses

Accrued expenses	3 Months Ended
	Dec. 31, 2016
Accrued expenses [Abstract]
Accrued expenses	(13) Accrued expenses The analysis of accrued expenses at December 31, 2016 and September 30, 2016 showing separately any items in excess of 5% of total current liabilities was as follows: (in thousands of dollars) December 31, 2016 September 30, 2016 Accrued compensation and related costs $ 1,809 $ 1,945 Deferred revenue 864 548 Other accrued expenses 2,464 2,438 $ 5,137 $ 4,931

Warranty reserves

Warranty reserves	3 Months Ended
	Dec. 31, 2016
Warranty reserves [Abstract]
Warranty reserves	(14) Warranty reserves The movement in warranty reserves was as follows: (in thousands of dollars) Three Months ended December 31, 2016 January 2, 2016 Warranty reserves at beginning of period $ 332 $ 278 Decrease in beginning balance for warranty obligations settled during the period (45 ) (67 ) Foreign currency translation adjustment (12 ) (3 ) Net increase in warranty reserves for products sold during the period 71 5 Warranty reserves at end of period $ 346 $ 213

Debt

Debt	3 Months Ended
	Dec. 31, 2016
Debt [Abstract]
Debt	(15) Debt The Company’s U.K. controls and capacitor subsidiaries each have multi-currency overdraft facilities which together total $1,100,000 and are secured against real estate owned by those companies. In July 2016, the Company’s U.K. bank renewed these facilities for a twelve month period, although they can be withdrawn on demand by the bank. The facilities were unused at December 31, 2016 and at September 30, 2016. The Company entered into a €14,000,000 ($14,778,000 at December 31, 2016) credit facility with Banca Monte dei Paschi di Siena S.p.A. (“MPS Bank”) on January 27, 2016. The loan and security agreement will expire on January 27, 2021 when all outstanding principal and unpaid interest will be due and payable in full. The facility may be paid before maturity in whole or in part at the option of the Company, on or after the six-month anniversary of the funding date, without penalty or premium. Interest on the loan is payable quarterly at a margin of 3% over EuroLIBOR, with a minimum EuroLIBOR rate of 0.0%. The loan interest rate at December 31, 2016 was 3%. Under the facility, the Company must maintain, on an annual basis, a net debt to EBITDA ratio defined as the ratio of consolidation indebtedness of the Company and its subsidiaries, minus cash and marketable securities, to EBITDA of the Company and its subsidiaries, measured on a fiscal year basis, plus (under a December 2016 amendment) the net cash proceeds received by the Company from the issuance and sale of equity securities during such twelve month period, of no more than 3.5:1 for fiscal years 2016 and 2017 and a net debt to EBITDA ratio of no more than 3.0:1 thereafter. Upon entering into the credit facility, the Company drew down €14,000,000 ($14,778,000), which was the total amount outstanding at December 31, 2016. This amount is shown in the accompanying consolidated balance sheet under long-term debt. The carrying value of the debt approximated to fair value based on current interest rates. Annual principal payments on long term bank debt, net of debt issuance costs, and converted to U.S. dollars at the December 31, 2016 exchange rate of $1.0553 Euros per U.S. dollar, are as follows (in thousands of dollars): 2018 $ 1,108 2019 1,477 2020 1,477 2021 10,716 14,778 Less: debt issuance costs (194 ) Total $ 14,584

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	(16) Commitments and Contingencies Sevcon, Inc. and subsidiaries are involved in various legal proceedings in the ordinary course of business but the Company believes that it is remote that the outcome will be material to operations. The Company maintains a directors' retirement plan which provides for certain retirement benefits to non-employee directors. Effective January 1997 the plan was frozen and no further benefits are being accrued. While the cost of the plan has been fully charged to expense, the plan is not separately funded. The estimated maximum liability which has been recorded based on the cost of buying deferred annuities at December 31, 2016 and September 30, 2016 was $142,000 and $144,000, respectively. Minimum rental commitments under all non-cancelable leases for the years ended September 30 are as follows: 2017 - $524,000; 2018 - $643,000; 2019 - $602,000; 2020 - $503,000; 2021 - $475,000 and $2,101,000 thereafter. The U.K. subsidiaries of the Company have given to RBS NatWest Bank a security interest in certain leasehold and freehold property assets as security for overdraft facilities of $1,100,000 as mentioned in Note 15.

Changes in Other Comprehensive

Changes in Other Comprehensive Loss	3 Months Ended
	Dec. 31, 2016
Changes in Other Comprehensive Loss [Abstract]
Changes in Other Comprehensive Loss	(17) Changes in Other Comprehensive Loss The following table illustrates changes in the balances of each component of accumulated other comprehensive loss in fiscal 2017 and 2016: (in thousands of dollars) Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Balance September 30, 2015 (1,274 ) (9,730 ) (11,004 ) Other comprehensive loss for the period (996 ) (1,420 ) (2,416 ) Balance September 30, 2016 (2,270 ) (11,150 ) (13,420 ) Other comprehensive income for the period 635 67 702 Balance December 31, 2016 (1,635 ) (11,083 ) (12,718 )

Related Parties

Related Parties	3 Months Ended
	Dec. 31, 2016
Related Parties [Abstract]
Related Parties	(18) Related Parties Bassi Holding (see Note 3) is considered a related party as a stockholder of the Company. As at December 31, 2016 there was a net payable balance of $1,755,000 due to Bassi Holding. This debt mainly relates to the dividends payable to Bassi Holding as a result of the acquisition on January 29, 2016 and it excludes rent payable which is shown below. During the three month period ended December 31, 2016 the Company paid rent to Bassi Holding in the amount of $80,000. As of December 31, 2016 the Company owed $78,000 to Bassi Holding for rent. No rent was paid in the three month period ended January 2, 2016. On August 2, 2016, Ryan Morris, a member of the Board, was elected Executive Chairman of the Board. Mr Morris is considered a related party as he is President of Meson Capital Partners LLC, a greater-than 10% stockholder of the Company. The Executive Chairman position was terminated on December 6, 2016.

Subsequent events

Subsequent events	3 Months Ended
	Dec. 31, 2016
Subsequent events [Abstract]
Subsequent events	(19) Subsequent events In preparing these interim consolidated financial statements, the Company has evaluated, for potential recognition or disclosure, events or transactions subsequent to the end of the most recent quarterly period, the issuance date of these financial statements. Sevcon Canada Inc. was incorporated in Ontario, Canada effective January 1, 2017; its principal activities include the development, commercialization and support of controllers to drive electric motors, chargers and comparable electric components used in full electric and hybrid vehicles. Sevcon GmbH was incorporated in southern Germany January 24, 2017; its principal activities include the commercialization and sale of controllers to drive electric motors, chargers and comparable electric components used in full electric and hybrid vehicles. No other material subsequent events were identified that require recognition or disclosure in these financial statements.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Dec. 31, 2016
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	(20) Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09: “Revenue from Contracts with Customers (Topic 606)”, comprehensive new revenue recognition guidance which will supersede almost all existing revenue recognition guidance. It affects any entity that enters into contracts with customers for the transfer of goods or services. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, in August 2015, the FASB issued ASU No. 2015-14: “Revenue from Contracts with Customers (Topic 606)”. This update was issued to defer the effective date of ASU No. 2014-09 by one year. Therefore, the effective date of ASU No. 2014-09 for public business entities is the annual reporting period beginning after December 15, 2017 including interim reporting periods within that reporting period. The Company is evaluating the impact of the adoption of this standard on our consolidated financial statements. This guidance will be effective for the Company in fiscal year 2019. In June 2014, the FASB issued ASU No. 2014-12: “Compensation – Stock Compensation (Topic 718)” which requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The guidance is effective for annual periods beginning after December 15, 2015. The Company has evaluated the impact of the adoption of this standard on our consolidated financial statements and has determined that its provisions are not applicable. In July 2015, the FASB issued ASU No. 2015-11: “Inventory (Topic 330): Simplifying the Measurement of Inventory” which requires inventory within the scope of this standard to be measured at the lower of cost and net realizable value. For public business entities, the guidance is effective for annual periods beginning after December 15, 2016. The Company is evaluating the impact of the adoption of this standard on our consolidated financial statements. This guidance will be effective for the Company in fiscal year 2018. In September 2015, the FASB issued ASU No. 2015-16: “Business Combinations (Topic 805)” which amends existing guidance related to measurement period adjustments associated with a business combination. The new standard requires the Company to recognize measurement period adjustments in the reporting period in which the adjustments are determined. The amendment removes the requirement to adjust prior period financial statements for these measurement period adjustments. The guidance is effective for annual periods beginning after December 15, 2015. The Company adopted the provisions of ASU, 2015-16 in fiscal year 2017, the implementation of which did not have any impact on our consolidated financial statements. In February 2016, the FASB issued FASB ASU No. 2016-02: “Leases (Topic 842)” in which the core principle is that a lessee should recognize the assets and liabilities that arise from leases. For operating leases, a lessee is required to recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the balance sheet. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. The accounting applied by a lessor is largely unchanged from that applied under current GAAP. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that reporting period. The Company is evaluating the impact of the adoption of this standard on our consolidated financial statements. This guidance will be effective for the Company in fiscal year 2020. In March 2016, the FASB issued ASU No. 2016-09: “Compensation - Stock Compensation (Topic 718)” simplifies several aspects of the accounting for employee share-based payment award transactions. The guidance is effective for fiscal years beginning after December 15, 2016 including interim periods within those fiscal years. The Company is evaluating the impact of the adoption of this standard on our consolidated financial statements. This guidance will be effective for the Company in fiscal year 2018. In August 2016, the FASB issued ASU 2016-15: “Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments” which addresses eight specific statement of cash flow issues with the objective of reducing diversity in practice. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company is evaluating the impact of the adoption of this standard on our consolidated financial statements. This guidance will be effective for the Company in fiscal year 2019. In October 2016, the FASB issued ASU 2016-16: “Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory” which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset (excluding inventory) when the transfer occurs instead of when the asset is sold to an outside party. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company is evaluating the impact of the adoption of this standard on our consolidated financial statements. This guidance will be effective for the Company in fiscal year 2019. In January 2017, the FASB issued ASU 2017-04: “Intangibles – Goodwill and Other (Topic 740)” which simplifies the test for goodwill impairment. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that reporting period. The Company is evaluating the impact of the adoption of this standard on our consolidated financial statements. This guidance will be effective for the Company in fiscal year 2021.

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Dec. 31, 2016
Acquisitions [Abstract]
Pro forma financial information	The unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on October 1, 2015. (in thousands of dollars) Three Months ended December 31, 2016 January 2, 2016 Revenue $ 12,543 $ 12,701 Net (loss) income $ (2,497 ) $ 164

Stock-based compensation plans

Stock-based compensation plans (Tables)	3 Months Ended
	Dec. 31, 2016
Stock-based compensation plans [Abstract]
Schedule of weighted average fair value assumptions of stock options	The weighted average input assumptions used and resulting fair values of stock options at December 31, 2016, were as follows: December 31, 2016 Executive and management options: Expected life (in years) 4.0 Risk-free interest rate 1.55 % Volatility 61.43 % Dividend yield 0.00 % Weighted-average fair value per share $ 4.81 Executive chairman options: Expected life (in years) 4.0 Risk-free interest rate 1.01% - 1.93 % Volatility 60.45% - 64.40 % Dividend yield 0.00 % Weighted-average fair value per share $ 3.56 - $3.80
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of restricted stock activity	A summary of restricted stock and stock option activity, including both performance based awards and time-based awards, for the three month period ended December 31, 2016, is as follows: Number of shares of Restricted Stock Weighted Average Grant-Date Fair Value Non-vested balance as of September 30, 2016 138,940 $ 6.50 Vested (60,000 ) $ 6.39 Non-vested balance as of December 31, 2016 78,940 $ 6.58 Number of shares of Stock Options Weighted Average Grant-Date Fair Value Non-vested balance as of September 30, 2016 50,625 $ 4.6 7 Non-vested balance as of December 31, 2016 50,625 $ 4.67
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of option activity under employee share option plan	A summary of performance based option activity under the share option plan as of December 31, 2016, and changes during the three months then ended is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of September 30, 2016 38,460 $ 9.94 4.21 - Granted – Executives and management - - - - Exercised - - - - Forfeited or Expired - - - - Outstanding at December 31, 2016 38,460 $ 9.94 3.96 $ - Exercisable - - - - Vested and expected to vest 35,451 $ 9.94 3.96 $ -
Time Based Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of option activity under employee share option plan	A summary of time based option activity under the share option plan as of December 31, 2016, and changes during the three months then ended is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of September 30, 2016 12,165 $ 10.93 4.08 - Granted - - - - Exercised - - - - Forfeited or Expired - - - - Outstanding at December 31, 2016 12,165 $ 10.93 3.67 $ - Exercisable - - - - Vested 12,165 $ 10.93 3.67 $ -

Calculation of earnings per s30

Calculation of earnings per share and weighted average shares outstanding (Tables)	3 Months Ended
	Dec. 31, 2016
Calculation of earnings per share and weighted average shares outstanding [Abstract]
Basic and fully diluted earnings per share	Basic and diluted net (loss) income per common share for the three month periods ended December 31, 2016 and January 2, 2016, is calculated as follows: (in thousands of dollars except per share data) Three months ended December 31, 2016 January 2, 2016 Numerator: Net (loss) income attributable to common stockholders for computing net (loss) income per ordinary share – basic $ (2,518 ) $ 11 Denominator: Weighted average shares used in calculating net income (loss) per ordinary share – basic 5,214 3,429 Adjustment for shares issuable upon vesting of restricted stock - 147 Weighted average shares used in calculating net (loss) income per ordinary share – diluted 5,214 3,576 Net (loss) income per ordinary share – basic $ (0.48 ) $ 0.00 Net (loss) income per ordinary share – diluted $ (0.48 ) $ 0.00

Segment information (Tables)

Segment information (Tables)	3 Months Ended
	Dec. 31, 2016
Segment information [Abstract]
Information concerning operations of business segments	Information concerning operations of these businesses is as follows: (in thousands of dollars) Three months ended December 31, 2016 Controls Capacitors Chargers Corporate Total Sales to external customers 7,135 247 5,161 - 12,543 Operating loss (2,050 ) (61 ) (15 ) (293 ) (2,419 ) Identifiable assets, excluding goodwill 27,361 796 20,399 8,656 57,212 Goodwill 1,435 - 6,196 - 7,631 Three months ended January 2, 2016 Controls Capacitors Chargers Corporate Total Sales to external customers 8,707 408 - - 9,115 Operating income (loss) 484 (43 ) - (261 ) 180 Identifiable assets, excluding goodwill 32,099 889 - 154 33,142 Goodwill 1,435 - - - 1,435
Analysis of revenues set out by location of business selling products	The analysis of revenues shown below is by the location of the business selling the products rather than by destination of the products. (in thousands of dollars) Three Months ended December 31, 2016 January 2, 2016 Sales:- U.S. sales $ 3,944 $ 4,104 Foreign sales: United Kingdom 1,364 3,454 Italy 5,161 - France 1,533 1,284 China 541 273 Total foreign sales 8,599 5,011 Total Sales $ 12,543 $ 9,115
Revenues of electronic controls segment by products and services	In the electronic controls segment, revenues are derived from the following products and services: (in thousands of dollars) Three Months ended December 31, 2016 January 2, 2016 Electronic controls for zero emission and hybrid electric vehicles $ 4,478 $ 6,450 Accessory and aftermarket products and services 2,657 2,257 Total controls segment revenues $ 7,135 8,707 The Company has businesses located in the United States, United Kingdom, Italy, France, Korea, Japan and China. (in thousands of dollars) Three Months ended December 31, 2016 September 30, 2016 Long-term assets: U.S.A. $ 2,275 $ 2,224 Foreign: United Kingdom 6,086 5,891 Italy 15,943 16,580 France 333 302 Korea, Japan and China 371 388 Total Foreign 22,733 23,161 Total Long-Term Assets $ 25,008 $ 25,385

Employee benefit plans (Tables)

Employee benefit plans (Tables)	3 Months Ended
	Dec. 31, 2016
Employee benefit plans [Abstract]
Components of the net pension cost	The following table sets forth the components of the net pension cost for the three month periods ended December 31, 2016 and January 2, 2016, respectively: (in thousands of dollars) Three Months ended December 31, 2016 January 2, 2016 Interest cost $ 210 $ 296 Expected return on plan assets (249 ) (289 ) Amortization of net loss 89 77 Net periodic benefit cost 50 84 Net cost of defined contribution plans $ 110 $ 155 Net cost of all employee benefit plans $ 160 $ 239
Movement in liability for pension benefits	The following table sets forth the movement in the liability for pension benefits, all of which is non-current, in the three month period ended December 31, 2016: (in thousands of dollars) Three Months ended December 31, 2016 Liability for pension benefits at beginning of period $ 11,511 Interest cost 210 Expected return on plan assets (249 ) Plan contributions (143 ) Effect of exchange rate changes (550 ) Liability for pension benefits at end of period 10,779
Pension plan assets measured and recorded at fair value	The tables below present information about the Company’s pension plan assets measured and recorded at fair value as of December 31, 2016 and September 30, 2016, and indicate the fair value hierarchy of the inputs utilized by the Company to determine the fair values. (in thousands of dollars) December 31, 2016 Level 1* (Quoted prices in active markets) Level 2** (Significant observable inputs) Level 3*** (Unobservable inputs) Adept Strategy 9 Fund (a sub-fund of Adept Investment Management plc) $ - $ 11,878 $ - Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds (funds managed by Schroder Investment Management Limited) - 4,800 - U.S. Mutual Funds and Fixed Income Funds 2,723 - - U.S. Equity Funds 414 - - Other Types of Investments 280 Cash 151 - - Total $ 3,568 $ 16,678 $ - (in thousands of dollars) September 30, 2016 Level 1* (Quoted prices in active markets) Level 2** (Significant observable inputs) Level 3*** (Unobservable inputs) Adept Strategy 9 Fund (a sub-fund of Adept Investment Management plc) $ - $ 13,268 $ - Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds (funds managed by Schroder Investment Management Limited) - 5,335 - U.S. Mutual Funds and Fixed Income Funds 2,837 - - U.S. Equity Funds 400 - - Other Types of Investments Cash 439 - - Total $ 3,676 $ 18,603 $ - * Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments primarily hold stocks or bonds, or a combination of stocks and bonds. ** Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The Company’s pension plan financial assets held in the Adept Strategy 9 Fund and the Schroder investments are Level 2 assets. The Company uses the Net Asset Value to determine the fair value of underlying investments which (a) do not have readily determinable fair value; and (b) prepare their financial statements consistent with the measurement principles of an investment company. The Funds are not exchange traded. The Funds are not subject to any redemption notice periods or restrictions and can be redeemed on a daily basis. No gates or holdbacks or dealing suspensions are being applied to the Funds. The Funds are of perpetual duration. *** The Company currently does not have any Level 3 pension plan financial assets.
Estimated future benefit payments	The estimated benefit payments, which reflect future service, as appropriate, for the years ended September 30 are as follows: (in thousands of dollars) 2017 $ 470 2018 488 2019 494 2020 502 2021 499 2022 – 2026 $ 2,722

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Dec. 31, 2016
Inventories [Abstract]
Inventories	Inventories, net of reserve, were comprised of: (in thousands of dollars) December 31, 2016 September 30, 2016 Raw materials $ 6,610 $ 6,532 Work-in-process 294 266 Finished goods 7,980 6,868 $ 14,884 $ 13,666

Accrued expenses (Tables)

Accrued expenses (Tables)	3 Months Ended
	Dec. 31, 2016
Accrued expenses [Abstract]
Analysis of other accrued expenses	The analysis of accrued expenses at December 31, 2016 and September 30, 2016 showing separately any items in excess of 5% of total current liabilities was as follows: (in thousands of dollars) December 31, 2016 September 30, 2016 Accrued compensation and related costs $ 1,809 $ 1,945 Deferred revenue 864 548 Other accrued expenses 2,464 2,438 $ 5,137 $ 4,931

Warranty reserves (Tables)

Warranty reserves (Tables)	3 Months Ended
	Dec. 31, 2016
Warranty reserves [Abstract]
Movement in warranty reserves	The movement in warranty reserves was as follows: (in thousands of dollars) Three Months ended December 31, 2016 January 2, 2016 Warranty reserves at beginning of period $ 332 $ 278 Decrease in beginning balance for warranty obligations settled during the period (45 ) (67 ) Foreign currency translation adjustment (12 ) (3 ) Net increase in warranty reserves for products sold during the period 71 5 Warranty reserves at end of period $ 346 $ 213

Debt (Tables)

Debt (Tables)	3 Months Ended
	Dec. 31, 2016
Debt [Abstract]
Annual principal payments on long term debt	Annual principal payments on long term bank debt, net of debt issuance costs, and converted to U.S. dollars at the December 31, 2016 exchange rate of $1.0553 Euros per U.S. dollar, are as follows (in thousands of dollars): 2018 $ 1,108 2019 1,477 2020 1,477 2021 10,716 14,778 Less: debt issuance costs (194 ) Total $ 14,584

Changes in Other Comprehensiv37

Changes in Other Comprehensive Loss (Tables)	3 Months Ended
	Dec. 31, 2016
Changes in Other Comprehensive Loss [Abstract]
Component of Accumulated Other Comprehensive Loss	The following table illustrates changes in the balances of each component of accumulated other comprehensive loss in fiscal 2017 and 2016: (in thousands of dollars) Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Balance September 30, 2015 (1,274 ) (9,730 ) (11,004 ) Other comprehensive loss for the period (996 ) (1,420 ) (2,416 ) Balance September 30, 2016 (2,270 ) (11,150 ) (13,420 ) Other comprehensive income for the period 635 67 702 Balance December 31, 2016 (1,635 ) (11,083 ) (12,718 )

Basis of presentation (Details)

Basis of presentation (Details)	3 Months Ended
	Dec. 31, 2016
Basis of presentation [Abstract]
Joint venture ownership	50.00%
Equity interest ownership	50.00%
Third party's equity interest ownership	50.00%

Acquisitions, Purchase Price (D

Acquisitions, Purchase Price (Details) - USD ($) $ in Thousands	Jan. 26, 2016	Dec. 31, 2016	Jan. 02, 2016	Sep. 30, 2016
Business Acquisition [Line Items]
Goodwill		$ 7,631	$ 1,435	$ 7,794
Expenses related to acquisition		0	316
Bassi S.r.l. Unipersonale [Member]
Business Acquisition [Line Items]
Purchase price	$ 19,100
Cash	10,800
Value of stock issued for acquisition	4,800
Payment of assumed liability	3,500
Intangible assets	10,200
Goodwill	6,400
Other assets, net of liabilities	$ 2,500
Term of liability for acquisition	3 years
Expenses related to acquisition		$ 0	$ 316

Acquisitions, Pro Forma Summary

Acquisitions, Pro Forma Summary (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Business Acquisition [Line Items]
Interest expense	$ 138	$ 22
Bassi S.r.l. Unipersonale [Member]
Business Acquisition [Line Items]
Amortization expense related to intangible assets		266
Interest expense		127
Pro forma information [Abstract]
Revenue	12,543	12,701
Net (loss) income	$ (2,497)	$ 164

Stock-based Compensation Plans,

Stock-based Compensation Plans, Equity Incentive Plan (Details)	3 Months Ended
	Dec. 31, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved and available for grant (in shares)	326,567
Number of additional shares authorized for issuance (in shares)	250,000
Options exercised (in shares)	0

Stock-based Compensation Plan42

Stock-based Compensation Plans, Share Options (Details) - Stock Options [Member]	3 Months Ended
	Dec. 31, 2016$ / shares
Executive and Management Options [Member]
Fair Value of Stock Options using Black-Scholes-Merton Option-Pricing Model [Abstract]
Expected life	4 years
Risk-free interest rate	1.55%
Volatility	61.43%
Dividend yield	0.00%
Weighted-average fair value per share (in dollars per share)	$ 4.81
Executive Chairman Options [Member]
Fair Value of Stock Options using Black-Scholes-Merton Option-Pricing Model [Abstract]
Expected life	4 years
Dividend yield	0.00%
Executive Chairman Options [Member] | Minimum [Member]
Fair Value of Stock Options using Black-Scholes-Merton Option-Pricing Model [Abstract]
Risk-free interest rate	1.01%
Volatility	60.45%
Weighted-average fair value per share (in dollars per share)	$ 3.56
Executive Chairman Options [Member] | Maximum [Member]
Fair Value of Stock Options using Black-Scholes-Merton Option-Pricing Model [Abstract]
Risk-free interest rate	1.93%
Volatility	64.40%
Weighted-average fair value per share (in dollars per share)	$ 3.80

Stock-based Compensation Plan43

Stock-based Compensation Plans, Performance Based Awards (Details)	1 Months Ended			3 Months Ended		12 Months Ended
	Aug. 31, 2016USD ($)	Feb. 29, 2016USD ($)shares	Dec. 31, 2015USD ($)Employeeshares	Dec. 31, 2016USD ($)Director$ / sharesshares	Jan. 02, 2016USD ($)	Sep. 30, 2016USD ($)$ / sharesshares
Stock Option Activity [Roll Forward]
Outstanding shares, exercised (in shares) | shares				0
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated fair value of stock at date of grant	$ 211,000
Share based compensation expense				$ 30,584	$ 0
Restricted Stock [Member] | Nine Non-Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of employees directors with restricted stock grant | Director				9
Estimated fair value of stock at date of grant		$ 292,000
Period for recognition of unearned compensation				12 months
Share based compensation expense				$ 64,812	0
Stock Option Activity [Roll Forward]
Outstanding shares, granted (in shares) | shares		29,700
Restricted Stock [Member] | Four Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares			11,540
Number of employees directors with restricted stock grant | Employee			4
Estimated fair value of stock at date of grant			$ 116,000
Period for recognition of unearned compensation			3 years
Share based compensation expense				$ 9,038	1,665
Performance Shares [Member]
Stock Option Activity [Roll Forward]
Outstanding shares, beginning balance (in shares) | shares				38,460
Outstanding shares, exercised (in shares) | shares				0
Outstanding shares, forfeited or expired (in shares) | shares				0
Outstanding shares, ending balance (in shares) | shares				38,460		38,460
Outstanding shares, exercisable (in shares) | shares				0
Outstanding shares, vested and expected to vest (in shares) | shares				35,451
Weighted Average Exercise Price [Abstract]
Weighted average exercise price, beginning balance (in dollars per share) | $ / shares				$ 9.94
Weighted average exercise price, exercised (in dollars per share) | $ / shares				0
Weighted average exercise price, forfeited or expired (in dollars per share) | $ / shares				0
Weighted average exercise price, ending balance (in dollars per share) | $ / shares				9.94		$ 9.94
Weighted average exercise price, exercisable (in dollars per share) | $ / shares				0
Weighted average exercise price, vested and expected to vest (in dollars per share) | $ / shares				$ 9.94
Weighted Average Remaining Contractual Term (Years) [Abstract]
Weighted average remaining contractual term				3 years 11 months 16 days		4 years 2 months 16 days
Weighted average remaining contractual term, exercised				0 years
Weighted average remaining contractual term, forfeited or expired				0 years
Weighted average remaining contractual term, exercisable				0 years
Weighted average remaining contractual term, vested and expected to vest				3 years 11 months 16 days
Aggregate Intrinsic Value [Abstract]
Aggregate intrinsic value, beginning balance				$ 0
Aggregate intrinsic value, exercised				0
Aggregate intrinsic value, forfeited or expired				0
Aggregate intrinsic value, ending balance				0		$ 0
Aggregate intrinsic value, exercisable				0
Aggregate intrinsic value, vested and expected to vest				$ 0
Performance Shares [Member] | Executive and Management [Member]
Stock Option Activity [Roll Forward]
Outstanding shares, granted (in shares) | shares				0
Weighted Average Exercise Price [Abstract]
Weighted average exercise price, granted (in dollars per share) | $ / shares				$ 0
Weighted Average Remaining Contractual Term (Years) [Abstract]
Weighted average remaining contractual term, granted				0 years
Aggregate Intrinsic Value [Abstract]
Aggregate intrinsic value, granted				$ 0
Performance Shares [Member] | Nine Non-Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of employees directors with restricted stock grant | Employee			9
Estimated fair value of stock at date of grant			$ 185,000
Period for recognition of unearned compensation			3 years
Share based compensation expense				$ 14,424	$ 2,658

Stock-based Compensation Plan44

Stock-based Compensation Plans, Time Based Awards (Details)	1 Months Ended		3 Months Ended		12 Months Ended
	Aug. 31, 2016USD ($)$ / sharesshares	Feb. 29, 2016USD ($)shares	Dec. 31, 2016USD ($)DirectorTranche$ / sharesshares	Jan. 02, 2016USD ($)	Sep. 30, 2016USD ($)$ / sharesshares
Stock Option Activity [Roll Forward]
Outstanding shares, exercised (in shares)			0
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches | Tranche			2
Estimated fair value of stock at date of grant | $	$ 211,000
Share based compensation expense | $			$ 30,584	$ 0
Vested options exercisable (in shares)			12,165
Period for vested options exercisable			3 months
Number of Shares of Stock Options [Roll Forward]
Non-vested balance, beginning of period (in shares)			50,625
Non-vested balance, end of period (in shares)			50,625		50,625
Weighted Average Grant-Date Fair Value [Abstract]
Non-vested balance, beginning of period (in dollars per share) | $ / shares			$ 4.67
Non-vested balance, ending of period (in dollars per share) | $ / shares			$ 4.67		$ 4.67
Stock Options [Member] | First Tranche [Member]
Stock Option Activity [Roll Forward]
Outstanding shares, granted (in shares)	36,496
Weighted Average Exercise Price [Abstract]
Weighted average exercise price, exercised (in dollars per share) | $ / shares	$ 10.93
Stock Options [Member] | Second Tranche [Member]
Stock Option Activity [Roll Forward]
Outstanding shares, granted (in shares)	20,204
Weighted Average Exercise Price [Abstract]
Weighted average exercise price, exercised (in dollars per share) | $ / shares	$ 12.35
Stock Options [Member] | Executive Chairman [Member]
Stock Option Activity [Roll Forward]
Outstanding shares, granted (in shares)	56,700
Time Based Awards [Member]
Stock Option Activity [Roll Forward]
Outstanding shares, beginning balance (in shares)			12,165
Outstanding shares, granted (in shares)			0
Outstanding shares, exercised (in shares)			0
Outstanding shares, forfeited or expired (in shares)			0
Outstanding shares, ending balance (in shares)			12,165		12,165
Outstanding shares, exercisable (in shares)			0
Outstanding shares, vested (in shares)			12,165
Weighted Average Exercise Price [Abstract]
Weighted average exercise price, beginning balance (in dollars per share) | $ / shares			$ 10.93
Weighted average exercise price, granted (in dollars per share) | $ / shares			0
Weighted average exercise price, exercised (in dollars per share) | $ / shares			0
Weighted average exercise price, forfeited or expired (in dollars per share) | $ / shares			0
Weighted average exercise price, ending balance (in dollars per share) | $ / shares			10.93		$ 10.93
Weighted average exercise price, exercisable (in dollars per share) | $ / shares			0
Weighted average exercise price, vested (in dollars per share) | $ / shares			$ 10.93
Weighted Average Remaining Contractual Term (Years) [Abstract]
Weighted average remaining contractual term			3 years 8 months 1 day		4 years 29 days
Weighted average remaining contractual term, granted			0 years
Weighted average remaining contractual term, exercised			0 years
Weighted average remaining contractual term, forfeited or expired			0 years
Weighted average remaining contractual term, exercisable			0 years
Weighted average remaining contractual term, vested			3 years 8 months 1 day
Aggregate Intrinsic Value [Abstract]
Aggregate intrinsic value, beginning balance | $			$ 0
Aggregate intrinsic value, granted | $			0
Aggregate intrinsic value, exercised | $			0
Aggregate intrinsic value, forfeited or expired | $			0
Aggregate intrinsic value, ending balance | $			0		$ 0
Aggregate intrinsic value, exercisable | $			0
Aggregate intrinsic value, vested | $			$ 0
Restricted Stock [Member]
Number of shares of Restricted Stock [Roll Forward]
Non-vested balance, beginning of period (in shares)			138,940
Vested (in shares)			(60,000)
Non-vested balance, end of period (in shares)			78,940		138,940
Weighted Average Grant-Date Fair Value [Roll Forward]
Non-vested balance, beginning of period (in dollars per share) | $ / shares			$ 6.50
Vested (in dollars per share) | $ / shares			6.39
Non-vested balance, ending of period (in dollars per share) | $ / shares			$ 6.58		$ 6.50
Restricted Stock [Member] | Nine Non-Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of employees directors with restricted stock grant | Director			9
Estimated fair value of stock at date of grant | $		$ 292,000
Period for recognition of unearned compensation			12 months
Number of shares of cancelled (in shares)		(3,300)
Share based compensation expense | $			$ 64,812	$ 0
Stock Option Activity [Roll Forward]
Outstanding shares, granted (in shares)		29,700

Stock-based Compensation Plan45

Stock-based Compensation Plans, Additional Information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Stock-based compensation plans [Abstract]
Stock based compensation expense	$ 242,000	$ 152,000
Unrecognized compensation expense	$ 327,348
Weighted average period for unrecognized compensation expense to be recognized	2 years

Cash dividends (Details)

Cash dividends (Details) - USD ($)	3 Months Ended
	Dec. 31, 2016	Oct. 14, 2016	Sep. 30, 2016
Preference share dividends [Abstract]
Preferred stock, issued (in shares)	448,545		448,705
Preferred stock, outstanding (in shares)	448,545		448,705
Preferred stock, par value (in dollars per share)	$ 0.10		$ 0.10
Series A Convertible Preferred Stock [Member]
Preference share dividends [Abstract]
Preferred stock, issued (in shares)	448,545
Preferred stock, outstanding (in shares)	448,545
Preferred stock, par value (in dollars per share)	$ 24
Percentage of cumulative annual dividend	4.00%
Semi annual dividend		$ 215,378
Dividend payable	Oct. 14, 2016
Next semi-annual dividend payable	Apr. 14, 2017

Calculation of earnings per s47

Calculation of earnings per share and weighted average shares outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Numerator [Abstract]
Net (loss) income attributable to common stockholders for computing net (loss) income per ordinary share - basic	$ (2,518)	$ 11
Denominator [Abstract]
Weighted average shares used in calculating net income (loss) per ordinary share - basic (in shares)	5,214,000	3,429,000
Adjustment for shares issuable upon vesting of restricted stock (in shares)	0	147,000
Weighted average shares used in calculating net (loss) income per ordinary share - diluted (in shares)	5,214,000	3,576,000
Net (loss) income per ordinary share - basic (in dollars per share)	$ (0.48)	$ 0
Net (loss) income per ordinary share - diluted (in dollars per share)	$ (0.48)	$ 0
Series A Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares excluded from calculation of earnings per share (in shares)	1,346,000
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares excluded from calculation of earnings per share (in shares)	81,000
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive shares excluded from calculation of earnings per share (in shares)	50,625

Segment information (Details)

Segment information (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2016USD ($)Segment	Jan. 02, 2016USD ($)	Sep. 30, 2016USD ($)
Segment information [Abstract]
Number of reportable segments | Segment	3
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	$ 12,543	$ 9,115
Operating income (loss)	(2,419)	180
Identifiable assets, excluding goodwill	57,212	33,142
Goodwill	7,631	1,435	$ 7,794
Reportable Segments [Member] | Controls [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	7,135	8,707
Operating income (loss)	(2,050)	484
Identifiable assets, excluding goodwill	27,361	32,099
Goodwill	1,435	1,435
Reportable Segments [Member] | Capacitors [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	247	408
Operating income (loss)	(61)	(43)
Identifiable assets, excluding goodwill	796	889
Goodwill	0	0
Reportable Segments [Member] | Chargers [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	5,161	0
Operating income (loss)	(15)	0
Identifiable assets, excluding goodwill	20,399	0
Goodwill	6,196	0
Corporate [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	0	0
Operating income (loss)	(293)	(261)
Identifiable assets, excluding goodwill	8,656	154
Goodwill	$ 0	$ 0

Segment information, By Region

Segment information, By Region and Product (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Sep. 30, 2016
Revenue from External Customer [Line Items]
Total controls segment revenues	$ 12,543	$ 9,115
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Sales	12,543	9,115
Total Long-Term Assets	25,008		$ 25,385
Reportable Segments [Member] | Controls [Member]
Revenue from External Customer [Line Items]
Total controls segment revenues	7,135	8,707
Reportable Segments [Member] | Controls [Member] | Electronic Controls for Zero Emission and Hybrid Electric Vehicles [Member]
Revenue from External Customer [Line Items]
Total controls segment revenues	4,478	6,450
Reportable Segments [Member] | Controls [Member] | Accessory and Aftermarket Products [Member]
Revenue from External Customer [Line Items]
Total controls segment revenues	2,657	2,257
Reportable Geographical Components [Member] | U. S. A. [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Sales	3,944	4,104
Total Long-Term Assets	2,275		2,224
Reportable Geographical Components [Member] | Total Foreign [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Sales	8,599	5,011
Total Long-Term Assets	22,733		23,161
Reportable Geographical Components [Member] | United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Sales	1,364	3,454
Total Long-Term Assets	6,086		5,891
Reportable Geographical Components [Member] | Italy
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Sales	5,161	0
Total Long-Term Assets	15,943		16,580
Reportable Geographical Components [Member] | France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Sales	1,533	1,284
Total Long-Term Assets	333		302
Reportable Geographical Components [Member] | China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Sales	541	$ 273
Reportable Geographical Components [Member] | Korea, Japan and China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Long-Term Assets	$ 371		$ 388

Research and development (Detai

Research and development (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2016USD ($)Job	Jan. 02, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)
Research and development [Abstract]
Cost of research and development program	$ 1,441	$ 860
Income statement credit	134	0
Income tax receivable	$ 667			$ 985
Minimum [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Credit percentage	11.00%
Maximum [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Credit percentage	14.50%
U.K. Regional Growth Fund [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Revenue from grants	$ 88	30
Research and development expense	$ 362	$ 165
Total grants awarded			$ 625
Number of jobs created or safeguarded | Job	20

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Dec. 31, 2016
Income Taxes [Abstract]
Effective tax rate	16.40%
U.S. [Member]
Income Tax Authority [Line Items]
Statutory tax rate	34.00%
U.K. [Member]
Income Tax Authority [Line Items]
Statutory tax rate	20.00%
Italy [Member]
Income Tax Authority [Line Items]
Statutory tax rate	24.00%

Employee Benefit Plans, Net Per

Employee Benefit Plans, Net Periodic Benefit Cost, Liability Rollforward, Balance Sheet and Amounts Recognized in Accumulated Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Sep. 30, 2016
Defined Benefit Plan Disclosure [Line Items]
Unfunded liability recognized in accrued expenses	$ 194		$ 198
Components of net pension cost [Abstract]
Interest cost	210	$ 296
Expected return on plan assets	(249)	(289)
Amortization of net loss	89	77
Net periodic benefit cost	50	84
Net cost of defined contribution plans	110	155
Net cost of all employee benefit plans	160	239
Movement in liability for pension benefits [Roll forward]
Liability for pension benefits at beginning of period	11,511
Interest cost	210	296
Expected return on plan assets	(249)	$ (289)
Plan contributions	(143)
Effect of exchange rate changes	(550)
Liability for pension benefits at end of period	10,779
U.S. Defined Benefit Plan [Member]
Estimated future employer contributions [Abstract]
Employer contributions	50
Estimated future employer contributions in current fiscal year	150
U.K. Defined Benefit Plan [Member]
Estimated future employer contributions [Abstract]
Employer contributions	93
Estimated future employer contributions in current fiscal year	648
Bassi S.r.l. Unipersonale [Member]
Defined Benefit Plan Disclosure [Line Items]
Unfunded liability recognized in accrued expenses	$ 965		$ 987

Employee Benefit Plans, Fair Va

Employee Benefit Plans, Fair Value of Pension Plan Assets (Details) - USD ($) $ in Thousands		Dec. 31, 2016	Sep. 30, 2016
Level 1 (Quoted Prices in Active Markets) [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[1]	$ 3,568	$ 3,676
Level 1 (Quoted Prices in Active Markets) [Member] | Adept Strategy 9 Fund [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[1]	0	0
Level 1 (Quoted Prices in Active Markets) [Member] | Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[1]	0	0
Level 1 (Quoted Prices in Active Markets) [Member] | U.S. Mutual Funds and Fixed Income Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[1]	2,723	2,837
Level 1 (Quoted Prices in Active Markets) [Member] | U.S. Equity Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[1]	414	400
Level 1 (Quoted Prices in Active Markets) [Member] | Cash [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[1]	151	439
Level 2 (Significant Observable Inputs) [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[2]	16,678	18,603
Level 2 (Significant Observable Inputs) [Member] | Adept Strategy 9 Fund [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[2]	11,878	13,268
Level 2 (Significant Observable Inputs) [Member] | Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[2]	4,800	5,335
Level 2 (Significant Observable Inputs) [Member] | U.S. Mutual Funds and Fixed Income Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[2]	0	0
Level 2 (Significant Observable Inputs) [Member] | U.S. Equity Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[2]	0	0
Level 2 (Significant Observable Inputs) [Member] | Cash [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[2]	0	0
Level 3 (Unobservable Inputs) [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[3]	0	0
Level 3 (Unobservable Inputs) [Member] | Adept Strategy 9 Fund [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[3]	0	0
Level 3 (Unobservable Inputs) [Member] | Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[3]	0	0
Level 3 (Unobservable Inputs) [Member] | U.S. Mutual Funds and Fixed Income Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[3]	0	0
Level 3 (Unobservable Inputs) [Member] | U.S. Equity Funds [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[3]	0	0
Level 3 (Unobservable Inputs) [Member] | Cash [Member]
Fair Value of Plan Assets [Abstract]
Fair value of plan assets	[3]	$ 0	$ 0
[1]	Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments primarily hold stocks or bonds, or a combination of stocks and bonds.
[2]	Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The Company's pension plan financial assets held in the Adept Strategy 9 Fund and the Schroder investments are Level 2 assets. The Company uses the Net Asset Value to determine the fair value of underlying investments which (a) do not have readily determinable fair value; and (b) prepare their financial statements consistent with the measurement principles of an investment company. The Funds are not exchange traded. The Funds are not subject to any redemption notice periods or restrictions and can be redeemed on a daily basis. No gates or holdbacks or dealing suspensions are being applied to the Funds. The Funds are of perpetual duration.
[3]	The Company currently does not have any Level 3 pension plan financial assets.

Employee Benefit Plans, Estimat

Employee Benefit Plans, Estimated Benefit Payments (Details) $ in Thousands	Dec. 31, 2016USD ($)
Estimated future benefit payments [Abstract]
2,017	$ 470
2,018	488
2,019	494
2,020	502
2,021	499
2022 - 2026	$ 2,722

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Inventories [Abstract]
Raw materials	$ 6,610	$ 6,532
Work-in-process	294	266
Finished goods	7,980	6,868
Inventories	$ 14,884	$ 13,666

Fair value of financial instr56

Fair value of financial instruments (Details) $ in Thousands	Dec. 31, 2016USD ($)
Level 2 (Significant Observable Inputs) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long term debt	$ 14,778

Accrued expenses (Details)

Accrued expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Accrued expenses [Abstract]
Percentage of total current liabilities used to analyze accrued expenses	5.00%	5.00%
Accrued compensation and related costs	$ 1,809	$ 1,945
Deferred revenue	864	548
Other accrued expenses	2,464	2,438
Accrued expenses	$ 5,137	$ 4,931

Warranty reserves (Details)

Warranty reserves (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Movement in warranty reserves [Roll Forward]
Warranty reserves at beginning of period	$ 332	$ 278
Decrease in beginning balance for warranty obligations settled during the period	(45)	(67)
Foreign currency translation adjustment	(12)	(3)
Net increase in warranty reserves for products sold during the period	71	5
Warranty reserves at end of period	$ 346	$ 213

Debt (Details)

Debt (Details) € in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2016EUR (€)	Sep. 30, 2016USD ($)
Annual principal payments on long term debt [Abstract]
Total	$ 14,584		$ 15,512
Banca Monte dei Paschi di Siena S.p.A. ("MPS") [Member] | Secured Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 14,778	€ 14,000
Line of credit facility, expiration date	Jan. 27, 2021
Line of credit facility, interest rate	3.00%	3.00%
Line of credit facility, amount outstanding	$ 14,778	€ 14,000
Euros per dollar exchange rate	1.0553	1.0553
Annual principal payments on long term debt [Abstract]
2,018	$ 1,108
2,019	1,477
2,020	1,477
2,021	10,716
Total	14,778
Less: debt issuance costs	(194)
Total	$ 14,584
Banca Monte dei Paschi di Siena S.p.A. ("MPS") [Member] | Secured Revolving Credit Facility [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Ratio of net debt to EBITDA, Current fiscal year	3.5
Ratio of net debt to EBITDA, year two	3.5
Ratio of net debt to EBITDA, thereafter	3
Banca Monte dei Paschi di Siena S.p.A. ("MPS") [Member] | Secured Revolving Credit Facility [Member] | Controls and Capacitor [Member] | United Kingdom [Member]
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 1,100
Banca Monte dei Paschi di Siena S.p.A. ("MPS") [Member] | Secured Revolving Credit Facility [Member] | EuroLIBOR [Member]
Line of Credit Facility [Line Items]
Margin interest rate	3.00%
Banca Monte dei Paschi di Siena S.p.A. ("MPS") [Member] | Secured Revolving Credit Facility [Member] | EuroLIBOR [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Margin interest rate	0.00%

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Commitments and Contingencies [Abstract]
Maximum recorded liability of deferred annuities	$ 142	$ 144
Minimum rental commitments under non-cancelable leases [Abstract]
2,017	524
2,018	643
2,019	602
2,020	503
2,021	475
Thereafter	2,101
Total overdraft facility	$ 1,100

Changes in Other Comprehensiv61

Changes in Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016
Component of accumulated other comprehensive loss [Roll Forward]
Balance at the beginning of the period	$ 21,739
Other comprehensive income (loss) for the period	702	$ (2,416)
Balance at the end of the period	20,254	21,739
Accumulated Other Comprehensive Loss [Member]
Component of accumulated other comprehensive loss [Roll Forward]
Balance at the beginning of the period	(13,420)	(11,004)
Balance at the end of the period	(12,718)	(13,420)
Foreign Currency Items [Member]
Component of accumulated other comprehensive loss [Roll Forward]
Balance at the beginning of the period	(2,270)	(1,274)
Other comprehensive income (loss) for the period	635	(996)
Balance at the end of the period	(1,635)	(2,270)
Defined Benefit Pension Plans [Member]
Component of accumulated other comprehensive loss [Roll Forward]
Balance at the beginning of the period	(11,150)	(9,730)
Other comprehensive income (loss) for the period	67	(1,420)
Balance at the end of the period	$ (11,083)	$ (11,150)

Related Parties (Details)

Related Parties (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Sep. 30, 2016	Aug. 02, 2016
Related Party Transaction [Line Items]
Long-term debt to related parties	$ 1,473		$ 1,558
Meson Capital Partners LLC [Member] | Minimum [Member]
Related Party Transaction [Line Items]
Stockholder's ownership interest of related parties				10.00%
Bassi Holding [Member]
Related Party Transaction [Line Items]
Long-term debt to related parties	1,755
Related party transaction	80	$ 0
Rent payable to related parties	$ 78