Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'MFLX | ' |
Entity Registrant Name | 'MULTI FINELINE ELECTRONIX INC | ' |
Entity Central Index Key | '0000830916 | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 24,167,749 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $117,440 | $105,150 |
Accounts receivable, net of allowances of $1,576 and $4,281 at June 30, 2014 and September 30, 2013, respectively | 94,446 | 132,247 |
Inventories | 43,430 | 86,853 |
Deferred taxes | 1,563 | 5,909 |
Income tax receivable | 5,477 | 2,535 |
Assets held for sale | 7,360 | ' |
Other current assets | 6,149 | 8,821 |
Total current assets | 275,865 | 341,515 |
Property, plant and equipment, net | 183,717 | 244,056 |
Land use rights | 6,579 | 7,703 |
Deferred taxes | 7,900 | 11,685 |
Other assets | 5,627 | 5,255 |
Total assets | 479,688 | 610,214 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts payable | 99,609 | 166,474 |
Accrued liabilities | 29,236 | 31,459 |
Line of credit | 20,000 | ' |
Income taxes payable | 720 | 1,027 |
Total current liabilities | 149,565 | 198,960 |
Other long-term liabilities | 25,165 | 19,063 |
Total liabilities | 174,730 | 218,023 |
Commitments and contingencies (Note 2) | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock, $0.0001 par value, 5,000,000 and 5,000,000 shares authorized at June 30, 2014 and September 30, 2013, respectively; 0 and 0 shares issued and outstanding at June 30, 2014 and September 30, 2013, respectively | ' | ' |
Common stock, $0.0001 par value; 100,000,000 and 100,000,000 shares authorized at June 30, 2014 and September 30, 2013, respectively; 24,167,077 and 24,082,802 shares issued and outstanding at June 30, 2014 and September 30, 2013, respectively | 2 | 2 |
Additional paid in capital | 94,226 | 90,857 |
Retained earnings | 162,201 | 252,656 |
Accumulated other comprehensive income | 48,529 | 48,676 |
Total stockholders' equity | 304,958 | 392,191 |
Total liabilities and stockholders' equity | $479,688 | $610,214 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowances | $1,576 | $4,281 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 24,167,077 | 24,082,802 |
Common stock, shares outstanding | 24,167,077 | 24,082,802 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net sales | $130,804 | $136,066 | $460,269 | $599,390 |
Cost of sales | 138,023 | 140,312 | 477,964 | 594,466 |
Gross (loss) profit | -7,219 | -4,246 | -17,695 | 4,924 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 1,720 | 1,997 | 4,671 | 5,812 |
Sales and marketing | 4,547 | 5,676 | 14,808 | 16,925 |
General and administrative | 4,163 | 2,647 | 11,140 | 12,614 |
Stock-based compensation resulting from change in control | ' | 9,582 | ' | 9,582 |
Impairment and restructuring | 8,361 | 7,537 | 33,159 | 7,537 |
Total operating expenses | 18,791 | 27,439 | 63,778 | 52,470 |
Operating loss | -26,010 | -31,685 | -81,473 | -47,546 |
Other income and expense | ' | ' | ' | ' |
Interest income | 170 | 248 | 625 | 404 |
Interest expense | -19 | -112 | -358 | -361 |
Other income (expense), net | 711 | 73 | 1,123 | 228 |
Loss before income taxes | -25,148 | -31,476 | -80,083 | -47,275 |
(Provision for) benefit from income taxes | -3,612 | -53 | -10,372 | 215 |
Net loss | -28,760 | -31,529 | -90,455 | -47,060 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustment | -2,330 | 3,597 | -147 | 6,472 |
Total comprehensive net loss | ($31,090) | ($27,932) | ($90,602) | ($40,588) |
Net loss per share: | ' | ' | ' | ' |
Basic | ($1.19) | ($1.32) | ($3.75) | ($1.97) |
Diluted | ($1.19) | ($1.32) | ($3.75) | ($1.97) |
Shares used in computing net loss per share: | ' | ' | ' | ' |
Basic | 24,144,874 | 23,948,428 | 24,106,495 | 23,847,413 |
Diluted | 24,144,874 | 23,948,428 | 24,106,495 | 23,847,413 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net loss | ($90,455) | ($47,060) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | 39,264 | 44,027 |
Deferred taxes | 8,130 | -2,908 |
Stock-based compensation expense | 2,547 | 13,009 |
Income tax benefit related to stock option exercises | -57 | -29 |
Asset impairments | 18,439 | 7,537 |
Gain on disposal of property, plant and equipment | -1,566 | -1,661 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 37,824 | 71,005 |
Inventories | 43,270 | 55,045 |
Other current assets | 2,693 | 5,133 |
Other assets | -369 | -34 |
Accounts payable | -61,984 | -62,797 |
Accrued liabilities | -2,387 | -10,918 |
Income taxes | -3,209 | -1,931 |
Other liabilities | 6,287 | 1,020 |
Net cash (used in) provided by operating activities | -1,573 | 69,438 |
Cash flows from investing activities | ' | ' |
Purchases of property and equipment | -14,000 | -35,945 |
Proceeds from sale of equipment and assets held for sale | 3,368 | 2,360 |
Change in restricted cash | -520 | ' |
Government grants received | 4,151 | ' |
Net cash used in investing activities | -7,001 | -33,585 |
Cash flows from financing activities | ' | ' |
Income tax benefit related to stock option exercises | 57 | 29 |
Tax withholdings for net share settlement of equity awards | -40 | -2,762 |
Proceeds from exercise of stock options | 813 | 608 |
Borrowings from lines of credit | 20,000 | ' |
Repurchase of common stock | ' | -1,617 |
Net cash provided by (used in) financing activities | 20,830 | -3,742 |
Effect of exchange rate changes on cash | 34 | -338 |
Net increase in cash | 12,290 | 31,773 |
Cash and cash equivalents at beginning of period | 105,150 | 82,322 |
Cash and cash equivalents at end of period | 117,440 | 114,095 |
Non-cash investing activities | ' | ' |
Purchases of property and equipment | $4,525 | $3,892 |
Description_of_Business
Description of Business | 9 Months Ended |
Jun. 30, 2014 | |
Description of Business | ' |
1. Description of Business | |
Multi-Fineline Electronix, Inc. (“MFLEX” or the “Company”) was incorporated in 1984 in the State of California and reincorporated in the State of Delaware in June 2004. The Company is primarily engaged in the engineering, design and manufacture of flexible printed circuit boards along with related component assemblies. | |
United Engineers Limited (“UEL”) and its wholly owned subsidiary, UE Centennial Venture Pte. Ltd (“UECV”, and together with UEL, “UE”), through its affiliates and subsidiaries, beneficially owned approximately 61% and 62% of the Company’s outstanding common stock as of June 30, 2014 and September 30, 2013, respectively. This beneficial ownership of the Company’s common stock by UE provides these entities with control over the outcome of stockholder votes at the Company, except with respect to certain related-party transactions with UE or its subsidiaries, including WBL Corporation Limited (“WBL”), which require a separate vote of the non-UE stockholders. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Basis of Presentation | ' | |||||||||||||||
2. Basis of Presentation | ||||||||||||||||
Principles of Consolidation | ||||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has two wholly owned subsidiaries located in China: MFLEX Suzhou Co., Ltd., (“MFC”) and MFLEX Chengdu Co., Ltd. (“MFLEX Chengdu”); one located in the Cayman Islands: M-Flex Cayman Islands, Inc. (“MFCI”); one located in Singapore: Multi-Fineline Electronix Singapore Pte. Ltd. (“MFLEX Singapore”); one located in Malaysia: Multi-Fineline Electronix Malaysia Sdn. Bhd. (“MFM”); one located in Cambridge, England: MFLEX UK Limited (“MFE”); one located in Korea: MFLEX Korea, Ltd. (“MKR”); and one located in the Netherlands: MFLEX B.V. (“MNE”). In 2010, the Company merged its subsidiary, Multi-Fineline Electronix (Suzhou) Co., Ltd (“MFC1”) into MFC; however, the Company is still in the process of deregistering MFC1. All significant intercompany transactions and balances have been eliminated in consolidation. | ||||||||||||||||
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s 2013 Annual Report on Form 10-K. The financial information presented in the accompanying statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the periods indicated. All such adjustments are of a normal recurring nature. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Operating results for the three and nine months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2014. Unless otherwise indicated, the financial information in these notes is presented in thousands (except per share amounts). | ||||||||||||||||
Recently Issued Accounting Pronouncements Not Yet Adopted | ||||||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires a reporting entity to 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. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. This standard will be effective for the Company beginning January 1, 2017. The Company is currently evaluating the impact of its pending adoption of this guidance on its financial position, results of operations and cash flows. | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximated fair value due to their short maturities. For recognition purposes, on a recurring basis, the Company’s assets and liabilities related to money market funds and derivative financial instruments are measured at fair value at the end of each reporting period. The fair value of the Company’s money market funds were measured using Level 1 fair value inputs and the fair value of the Company’s derivative assets and liabilities were measured using Level 2 fair value inputs, which consisted of observable market-based inputs of foreign currency spot and forward rates quoted by major financial institutions. | ||||||||||||||||
The Company’s assets and liabilities measured at fair value on a recurring basis subject to the disclosure requirements as defined under the FASB authoritative accounting guidance were as follows: | ||||||||||||||||
Fair Value Measurements of Assets and Liabilities | ||||||||||||||||
on a Recurring Basis as of | ||||||||||||||||
30-Jun-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds (cash and cash equivalents) | $ | 17,173 | $ | - | $ | - | ||||||||||
Forward contracts (accrued liabilities) | - | 61 | - | |||||||||||||
$ | 17,173 | $ | 61 | $ | - | |||||||||||
Fair Value Measurements of Assets and Liabilities | ||||||||||||||||
on a Recurring Basis as of | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds (cash and cash equivalents) | $ | 14,141 | $ | - | $ | - | ||||||||||
Forward contracts (other current assets) | - | 179 | - | |||||||||||||
Forward contracts (accrued liabilities) | - | (34 | ) | - | ||||||||||||
$ | 14,141 | $ | 145 | $ | - | |||||||||||
As of June 30, 2014, assets held for sale were measured at fair value on a non-recurring basis. Based on the relevant FASB guidance, the carrying value of assets held for sale was written down to $7,360 after recording an impairment charge of $6,890 during the three months ended June 30, 2014 (refer to Note 8). The fair value of the assets was determined using Level 3 unobservable inputs not corroborated by market data, consisting of third-party offers for assets held for sale. Below is a summary of the Company’s assets measured at fair value on a non-recurring basis as of June 30, 2014: | ||||||||||||||||
Fair Value Measurements of Assets | ||||||||||||||||
on a Non-Recurring Basis as of | ||||||||||||||||
30-Jun-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Building and equipment (assets held for sale) | $ | — | $ | — | $ | 7,360 | ||||||||||
$ | — | $ | — | $ | 7,360 | |||||||||||
No assets or liabilities were measured at fair value on a non-recurring basis as of September 30, 2013. | ||||||||||||||||
Inventories | ||||||||||||||||
Inventories, net of applicable write-downs, were composed of the following: | ||||||||||||||||
June 30, | September 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Raw materials and supplies | $ | 13,109 | $ | 27,080 | ||||||||||||
Work-in-progress | 14,275 | 20,965 | ||||||||||||||
Finished goods | 16,046 | 38,808 | ||||||||||||||
$ | 43,430 | $ | 86,853 | |||||||||||||
Restricted Cash | ||||||||||||||||
As of June 30, 2014, the Company held $520 of cash restricted due to customs deposit requirements, which was segregated from cash and cash equivalents and included within other current assets. The restriction is expected to cease within twelve months. | ||||||||||||||||
Property, Plant and Equipment | ||||||||||||||||
Property, plant and equipment, net, were composed of the following: | ||||||||||||||||
June 30, | September 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Building | $ | 52,592 | $ | 68,679 | ||||||||||||
Machinery and equipment | 338,535 | 406,010 | ||||||||||||||
Computers and capitalized software | 13,119 | 13,014 | ||||||||||||||
Leasehold improvements | 10,611 | 14,145 | ||||||||||||||
Construction-in-progress | 4,953 | 5,307 | ||||||||||||||
$ | 419,810 | $ | 507,155 | |||||||||||||
Accumulated depreciation and amortization | (236,093 | ) | (263,099 | ) | ||||||||||||
$ | 183,717 | $ | 244,056 | |||||||||||||
Accrued Liabilities | ||||||||||||||||
Accrued liabilities were composed of the following: | ||||||||||||||||
June 30, | September 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Wages and compensation | $ | 10,017 | $ | 16,822 | ||||||||||||
Restructuring expenses¹ | 5,408 | - | ||||||||||||||
Other accrued expenses | 13,811 | 14,637 | ||||||||||||||
$ | 29,236 | $ | 31,459 | |||||||||||||
1 | Refer to Note 8 for further information on the Company’s impairment and restructuring activities during the three and nine months ended June 30, 2014. | |||||||||||||||
Product Warranty Accrual | ||||||||||||||||
Changes in the product warranty accrual for the three months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||
Balance at | Warranty | Provision for | Balance at | |||||||||||||
April 1 | Expenditures | Estimated | 30-Jun | |||||||||||||
Warranty Cost | ||||||||||||||||
Fiscal 2014 | $ | 1,814 | $ | (1,860 | ) | $ | 902 | $ | 856 | |||||||
Fiscal 2013 | $ | 223 | $ | (1,426 | ) | $ | 1,959 | $ | 756 | |||||||
Changes in the product warranty accrual for the nine months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||
Balance at | Warranty | Provision for | Balance at | |||||||||||||
October 1 | Expenditures | Estimated | 30-Jun | |||||||||||||
Warranty Cost | ||||||||||||||||
Fiscal 2014 | $ | 1,076 | $ | (4,106 | ) | $ | 3,886 | $ | 856 | |||||||
Fiscal 2013 | $ | 346 | $ | (2,252 | ) | $ | 2,662 | $ | 756 | |||||||
Net Income Per Share—Basic and Diluted | ||||||||||||||||
The following table presents a reconciliation of basic and diluted shares for the three and nine months ended June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic weighted-average number of common shares outstanding | 24,144,874 | 23,948,428 | 24,106,495 | 23,847,413 | ||||||||||||
Dilutive effect of potential common shares | - | - | - | - | ||||||||||||
Diluted weighted-average number of common and potential | 24,144,874 | 23,948,428 | 24,106,495 | 23,847,413 | ||||||||||||
common shares outstanding | ||||||||||||||||
Potential common shares excluded from the per share | 931,932 | 938,850 | 881,392 | 982,851 | ||||||||||||
computations as the effect of their inclusion would not | ||||||||||||||||
be dilutive | ||||||||||||||||
Commitments and Contingencies | ||||||||||||||||
Litigation | ||||||||||||||||
The Company is involved in litigation from time to time in the ordinary course of business. Management does not believe the outcome of any currently pending matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. | ||||||||||||||||
Other Commitments | ||||||||||||||||
The Company has outstanding purchase and other commitments, which exclude amounts already recorded on the Condensed Consolidated Balance Sheets. The outstanding purchase commitments to acquire capital assets and other materials and services totaled $10,588 and $6,454 as of June 30, 2014 and September 30, 2013, respectively. | ||||||||||||||||
Pursuant to the laws applicable to the People’s Republic of China’s Foreign Investment Enterprises, the Company’s two wholly owned subsidiaries in China, MFC and MFLEX Chengdu, are restricted from paying cash dividends on 10% of after-tax statutory profit, subject to certain cumulative limits. These restrictions as of June 30, 2014 and September 30, 2013 were $19,823 and $19,838, respectively. | ||||||||||||||||
Significant Concentrations | ||||||||||||||||
The Company’s net sales into its largest industry sectors, as a percentage of total net sales, are presented below: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Smartphones | 65 | % | 78 | % | 71 | % | 69 | % | ||||||||
Tablets | 17 | % | 13 | % | 15 | % | 23 | % | ||||||||
Consumer electronics | 6 | % | 8 | % | 7 | % | 7 | % | ||||||||
Lines_of_Credit
Lines of Credit | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Lines of Credit | ' | |||||||||||||||
3. Lines of Credit | ||||||||||||||||
During July 2013, MFC entered into a Line of General Credit Agreement (the “MFC Credit Line”) with Agricultural Bank of China, Suzhou Wuzhong Sub-branch (“ABC”), providing for a line of credit to MFC in an amount of 200,000 Chinese Renminbi (“RMB”) ($32,506 at June 30, 2014). The MFC Credit Line became effective on July 31, 2013 and will mature on July 30, 2016. At June 30, 2014, the Company had $20,000 outstanding under the MFC Credit Line at an interest rate of 3.1% and with a maturity date in August 2014. | ||||||||||||||||
During May 2013, MFC entered into a Line of Credit Agreement (the “CCB Credit Line”) with China Construction Bank, Suzhou Industry Park Sub-Branch (“CCB”), which provides for a borrowing facility for 300,000 RMB ($48,758 at June 30, 2014). The CCB Credit Line will mature on May 5, 2016. | ||||||||||||||||
During March 2013, MFLEX Chengdu entered into a Line of Credit Agreement (the “MCH Credit Line”) with Bank of China Co., Ltd. Chengdu Development West Zone Sub-Branch (“BC”), providing for a line of credit to MFLEX Chengdu in an amount of $11,000. The MCH Credit Line matured on February 5, 2014. | ||||||||||||||||
During January 2012, MFLEX Singapore entered into a Facility Agreement (the “Facility Agreement”) with JPMorgan Chase Bank, N.A., Singapore Branch (“JPM”), as mandated lead arranger, the financial institutions from time to time party thereto, as lenders, and JPMorgan Chase Bank, N.A. acting through its Hong Kong Branch, as facility agent and as security agent. The Facility Agreement provided for a three-year, revolving credit facility, under which MFLEX Singapore may obtain loans and other financial accommodations in an aggregate principal amount of up to $50,000. As of December 31, 2013, the Company was not in compliance with one of the financial covenants under the Facility Agreement with JPM due to its trailing twelve-month net losses. No amounts were outstanding under the Facility Agreement with JPM as of December 31, 2013. Effective February 5, 2014, the Company terminated the Facility Agreement. | ||||||||||||||||
A summary of the lines of credit is as follows: | ||||||||||||||||
Amounts Available at | Amounts Outstanding at | |||||||||||||||
June 30, | September 30, | June 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Line of credit (ABC) | $ | 12,506 | $ | 32,531 | $ | 20,000 | $ | - | ||||||||
Line of credit (CCB) | 48,758 | 48,796 | - | - | ||||||||||||
Line of credit (BC) | - | 11,000 | - | - | ||||||||||||
Line of credit (JPM) | - | 50,000 | - | - | ||||||||||||
$ | 61,264 | $ | 142,327 | $ | 20,000 | $ | - | |||||||||
On August 6, 2014, the Company, as guarantor, and MFLEX Singapore, as borrower, entered into a Loan and Security Agreement with certain financial institutions, as lenders, and Bank of America, N.A., as agent, providing for a senior revolving credit facility in an amount up to $30,000. Refer to Note 9 for details. | ||||||||||||||||
As of June 30, 2014, the Company was in compliance with all applicable financial covenants. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Information | ' | |||||||||||||||
4. Segment Information | ||||||||||||||||
Based on the evaluation of the Company’s internal financial information, management believes that the Company operates in one reportable segment. The Company is primarily engaged in the engineering, design and manufacture of flexible circuit boards along with related component assemblies. For the periods presented, the Company operated in four geographical areas: United States, China, Singapore and Other (which includes Malaysia, Korea and the United Kingdom). Net sales are presented based on the country in which the sales originate, which is where the legal entity is domiciled. The financial results of the Company’s geographic segments are presented on a basis consistent with the condensed consolidated financial statements. Segment net sales and assets amounts include intra-company product sales transactions and subsidiary investment amounts, respectively, which are offset in the eliminations line. | ||||||||||||||||
Financial information by geographic segment is as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales | ||||||||||||||||
United States | $ | 4,578 | $ | 2,861 | $ | 13,207 | $ | 8,716 | ||||||||
China | 123,560 | 152,653 | 461,576 | 593,813 | ||||||||||||
Singapore | 107,797 | 128,972 | 396,061 | 583,659 | ||||||||||||
Other | 13,105 | 1,121 | 18,058 | 1,585 | ||||||||||||
Eliminations | (118,236 | ) | (149,541 | ) | (428,633 | ) | (588,383 | ) | ||||||||
Total | $ | 130,804 | $ | 136,066 | $ | 460,269 | $ | 599,390 | ||||||||
Operating (loss) income | ||||||||||||||||
United States | $ | (2,229 | ) | $ | (6,002 | ) | $ | (5,952 | ) | $ | (10,196 | ) | ||||
China | (3,213 | ) | (8,953 | ) | (11,774 | ) | (10,951 | ) | ||||||||
Singapore | (19,921 | ) | (11,757 | ) | (62,533 | ) | (23,218 | ) | ||||||||
Other | (149 | ) | (4,996 | ) | (1,804 | ) | (6,530 | ) | ||||||||
Eliminations | (498 | ) | 23 | 590 | 3,349 | |||||||||||
Total | $ | (26,010 | ) | $ | (31,685 | ) | $ | (81,473 | ) | $ | (47,546 | ) | ||||
Depreciation and amortization | ||||||||||||||||
United States | $ | 315 | $ | 544 | $ | 989 | $ | 1,841 | ||||||||
China | 12,348 | 28,265 | 38,066 | 41,967 | ||||||||||||
Singapore | 27 | 35 | 93 | 94 | ||||||||||||
Other | 66 | 40 | 116 | 125 | ||||||||||||
Total | $ | 12,756 | $ | 28,884 | $ | 39,264 | $ | 44,027 | ||||||||
June 30, | September 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Total assets | ||||||||||||||||
United States | $ | 141,457 | $ | 136,299 | ||||||||||||
China | 322,796 | 403,824 | ||||||||||||||
Singapore | 242,154 | 295,714 | ||||||||||||||
Other | 5,908 | 2,022 | ||||||||||||||
Eliminations | (232,627 | ) | (227,645 | ) | ||||||||||||
Total | $ | 479,688 | $ | 610,214 | ||||||||||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
5. Stock-Based Compensation | |||||||||||||||||
2014 | Equity Incentive Plan | ||||||||||||||||
At the Company’s annual meeting of stockholders on March 5, 2014, the stockholders approved the Company’s 2014 Equity Incentive Plan (the “2014 Plan”). Upon stockholder approval of the 2014 Plan, the Company’s 2004 Stock Incentive Plan, as amended and restated to date (the “2004 Plan”) was terminated. Under the 2014 Plan, the Company is authorized to issue up to 1,639,279 shares, increased by not more than 2,062,007 shares comprised of the aggregate number of shares of stock that remain available for the future grant of awards under the 2004 Plan immediately prior to its termination and the number of shares subject to any option or other award outstanding under the 2004 Plan that expires or is forfeited for any reason after March 5, 2014. | |||||||||||||||||
Stock Options | |||||||||||||||||
Stock option activity for the nine months ended June 30, 2014 under the Company’s 2004 Plan is summarized as follows: | |||||||||||||||||
Number of | Weighted- | Aggregate | Weighted- | ||||||||||||||
Shares | Average | Intrinsic | Average | ||||||||||||||
Exercise | Value | Remaining | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life | |||||||||||||||||
Stock options outstanding at September 30, 2013 | 164,652 | $ | 10.98 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (81,882 | ) | 10 | ||||||||||||||
Forfeited | — | — | |||||||||||||||
Expired | (67,770 | ) | 10 | ||||||||||||||
Stock options outstanding and exercisable at June 30, 2014 | 15,000 | $ | 20.81 | $ | — | 0.7 | |||||||||||
Stock options vested and expected to vest at June 30, 2014 | 15,000 | $ | 20.81 | $ | — | 0.7 | |||||||||||
The aggregate intrinsic value of stock options exercised was $147 and $177 during the three and nine months ended June 30, 2014, respectively, and was $6 and $278 during the three and nine months ended June 30, 2013, respectively. Unearned compensation for stock options was zero as of June 30, 2014. | |||||||||||||||||
Service and Performance-Based Restricted Stock Units | |||||||||||||||||
During the three and nine months ended June 30, 2014 and 2013, the Company granted service-based restricted stock units (“RSUs”) under the 2004 Plan and 2014 Plan to certain employees (including executive officers) and directors at no cost to such individual. Each RSU represents one hypothetical share of the Company’s common stock, without voting or dividend rights. The RSUs granted to employees generally vest over a period of three years with one-third vesting on each of the anniversary dates of the grant date. Total compensation cost related to RSUs is determined based on the fair value of the Company’s common stock on the date of grant and is amortized into expense over the vesting period using the straight-line method. | |||||||||||||||||
The Company also grants performance-based RSUs to certain employees (including executive officers) from time to time. For such performance-based RSUs, the Company records stock-based compensation expense based on the grant-date fair value and the probability that the performance metrics will be achieved. Management generally considers the probability that the performance metrics will be achieved to be a 70% chance or greater (“Probability Threshold”). At the end of each reporting period, the Company evaluates the awards to determine if the related performance metrics meet the Probability Threshold. If the Company determines that the vesting of any of the outstanding performance-based RSUs does not meet the Probability Threshold, the stock-based compensation expense related to those performance-based RSUs is reversed in the period in which this determination is made. However, if at a future date conditions have changed and the Probability Threshold is deemed to be met, the previously reversed stock-based compensation expense, as well as all subsequent projected stock-based compensation expense through the date of evaluation, is recognized in the period in which this new determination is made. | |||||||||||||||||
On November 11, 2013, the Company granted 183,292 performance-based RSUs (the “November 2013 Awards”). On December 19, 2013, the Company granted 78,553 performance-based RSUs (the “December 2013 Awards”). Both the November 2013 Awards and the December 2013 Awards vest upon the achievement of defined performance and market objectives pertaining to such grants, with vesting estimated to occur between September 30, 2016 and November 30, 2016. | |||||||||||||||||
Approximately two-fifths of the November 2013 Awards and the December 2013 Awards contained performance conditions whereby the Company recorded stock-based compensation cost based on the grant-date fair value and the probability that the performance metrics will be achieved. At the end of each reporting period, the Company evaluates the probability that the performance-based RSUs will vest. As of June 30, 2014, the Company considers the vesting of the November 2013 Awards and the December 2013 Awards to be probable. | |||||||||||||||||
Approximately three-fifths of the November 2013 Awards and the December 2013 Awards contained both market and performance conditions, whereby the market condition was measured by determining the Company’s total shareholder return (“TSR”) for the three-year period beginning November 30, 2013 through November 30, 2016 versus the TSR of the Nasdaq Total Return Index for the same period, using the three-month average daily closing price of each on November 30, 2013 as compared to November 30, 2016. An award with a market condition is accounted for and measured differently from an award that has only a performance or service condition. The effect of a market condition is reflected in the award’s fair value on the grant date (e.g., a discount may be taken when estimating the fair value of such grant to reflect the market condition). The fair value may be lower than the fair value of an identical award that has only a service or performance condition because those awards will not include a discount on the fair value. All compensation costs for an award that has a market condition will be recognized if the requisite service period is fulfilled, even if the market condition is never satisfied. | |||||||||||||||||
The grant date fair values of the portion of the November 2013 Awards and the December 2013 Awards containing both market and performance conditions were calculated utilizing the following assumptions: | |||||||||||||||||
November 2013 | Nasdaq Total Return | December 2013 | Nasdaq Total Return | ||||||||||||||
Awards | Index Benchmark | Awards | Index Benchmark | ||||||||||||||
Inputs | Inputs | ||||||||||||||||
Expected stock return/ discount rate1 | 0.65 | % | 0.65 | % | 0.7 | % | 0.7 | % | |||||||||
Dividend yield | — | — | — | — | |||||||||||||
Volatility2 | 40 | % | 20 | % | 40 | % | 20 | % | |||||||||
Grant date | 11/30/13 | 11/30/13 | 12/19/13 | 12/19/13 | |||||||||||||
Three-month average | $ | 14.6 | $ | 4,194.45 | $ | 14.6 | $ | 4,194.45 | |||||||||
share price3 | |||||||||||||||||
Expected vesting period | 3.1 | N/A | 3 | N/A | |||||||||||||
(in years) | |||||||||||||||||
Correlation | 0.48 | 0.48 | 0.48 | 0.48 | |||||||||||||
Fair value per share | $ | 8.28 | N/A | $ | 6.7 | N/A | |||||||||||
1 | The expected stock return/discount rate was based on the yield to maturity of short-term government bonds over the expected term as of the grant date. | ||||||||||||||||
2 | Volatilities were calculated as of fiscal year end dates for the Company. | ||||||||||||||||
3 | The three-month daily average share price was based on the average of the three-month daily closing price for the Company’s common stock and the Nasdaq Total Return Index as of November 30, 2013. | ||||||||||||||||
RSU activity for the nine months ended June 30, 2014 under the 2004 Plan and 2014 Plan is summarized as follows: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Shares | -Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested shares outstanding at September 30, 2013 | 336,374 | $ | 17.55 | ||||||||||||||
Granted | 586,133 | 11.44 | |||||||||||||||
Vested | (2,445 | ) | 13.88 | ||||||||||||||
Canceled | (69,975 | ) | 14.71 | ||||||||||||||
Non-vested shares outstanding at June 30, 2014 | 850,087 | $ | 13.58 | ||||||||||||||
RSU details for the three and nine months ended June 30, 2014 and 2013 are summarized as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service-based RSUs granted | 1,800 | 126,450 | 324,288 | 332,261 | |||||||||||||
Performance-based RSUs granted | - | 24,525 | 261,845 | 96,556 | |||||||||||||
Compensation cost recognized | $ | 972 | $ | 8,656 | $ | 2,547 | $ | 10,642 | |||||||||
Weighted-average grant-date fair value of non-vested RSUs granted | $ | 11.98 | $ | 15.03 | $ | 11.44 | $ | 17.07 | |||||||||
Weighted-average grant-date fair value of RSUs vested | $ | 14.64 | $ | 19.36 | $ | 13.88 | $ | 20.42 | |||||||||
Aggregate intrinsic value of RSUs vested | $ | 8 | $ | 5,583 | $ | 33 | $ | 8,094 | |||||||||
Unearned compensation as of June 30, 2014 was $6,300 related to non-vested RSUs, which will be recognized into expense over the weighted-average remaining contractual life of the non-vested RSUs of 1.5 years. | |||||||||||||||||
Stock-based Compensation Expense Summary | |||||||||||||||||
The following table shows a summary of the stock-based compensation expense by expense type included in the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended June 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of sales | $ | 71 | $ | 78 | $ | 188 | $ | 344 | |||||||||
Research and development | 89 | 103 | 270 | 409 | |||||||||||||
Sales and marketing | 108 | 130 | 360 | 522 | |||||||||||||
General and administrative | 704 | 568 | 1,729 | 2,152 | |||||||||||||
Stock-based compensation resulting from change in control | - | 9,582 | - | 9,582 | |||||||||||||
Total compensation cost | $ | 972 | $ | 10,461 | $ | 2,547 | $ | 13,009 | |||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2014 | |
Income Taxes | ' |
6. Income Taxes | |
As of June 30, 2014, the Company’s liability for income taxes associated with uncertain tax positions increased to $18,250 from $15,425 as of September 30, 2013. The liabilities that would favorably affect the Company’s effective tax rate were $13,054 and $10,517, at June 30, 2014 and September 30, 2013, respectively. As of June 30, 2014, the Company received new information not previously available associated with uncertain tax positions related to prior year intercompany transactions. After evaluation of such information, the Company changed its judgment on these uncertain tax positions and recorded additional liability in the amount of $2,515 as of June 30, 2014. The Company anticipates that there will be other changes to the unrecognized tax benefit associated with uncertain tax positions due to the expiration of statutes of limitation, payment of tax on amended returns, audit settlements and other changes in reserves. However, due to the uncertainty regarding the timing of these events, other than the statute of limitation expiration, a current estimate of the range of changes that may occur within the next 12 months cannot be made. | |
For the three months ended March 31, 2014, the Company incurred significant losses in one of its entities. In addition, the changes in the Company’s forecasted results indicated a three-year cumulative loss by the fourth quarter of fiscal 2014 for another entity. Evidence such as cumulative losses in recent years represents sufficient negative evidence to require a valuation allowance. As a result, during the three months ended March 31, 2014, the Company recorded a charge of $5,001 to reflect a valuation allowance against the deferred tax assets previously recorded related to these two entities. The Company intends to maintain a valuation allowance on its deferred tax assets until sufficient positive evidence exists to support a reversal. Based on an evaluation of the positive and negative evidence, the Company concluded that no valuation allowances were required for its other entities as of June 30, 2014. | |
The Company currently enjoys certain tax incentives for certain of its Asian operations. Certain Asian operations are subject to taxes at a rate lower than the statutory rates and for the three and nine months ended June 30, 2014, the Company realized tax savings for these operations. However, these tax holidays and tax incentives may be challenged, modified or even eliminated by taxing authorities or changes in law. The tax incentives for the Company’s operations in Singapore expired on June 30, 2013. | |
The Internal Revenue Service (“IRS”) is currently examining the Company’s income tax returns for fiscal years 2007 through 2010. On August 1, 2012, the Company received a Revenue Agent Report (the “Original Report”) from the IRS relating to its examination of the Company’s income tax returns for fiscal years 2007 and 2008. On February 6, 2013, the IRS withdrew the Original Report and issued a revised Revenue Agent Report (the “Revised Report”). In the Revised Report, the IRS reduced its proposed adjustments. The remaining proposed adjustments would result in $32,363 of additional taxable income for those two years. Management believes there are numerous errors in the Revised Report, does not agree with the proposed adjustments and has contested the proposed adjustments with the IRS Appeals Office. After reviewing the Revised Report, management continues to believe that an adequate provision has been made for all of the Company’s uncertain tax positions. | |
The Chinese tax authority is currently auditing the income tax returns of MFC and MFC1 for tax years 2005 through 2011. During fiscal year 2013, the Chinese tax authority raised questions related to transfer pricing on tangible goods sold by the Company to related parties. The questions primarily related to the transfer pricing methodology and the selection of comparable companies. Discussions with the Chinese tax authority surrounding this issue are ongoing. In the event that the audit results in proposed assessment by the Chinese tax authority, the Company may be required to remit the assessment regardless of whether the Company contests the proposed adjustments. Management believes that an adequate provision has been made related to this audit. | |
The outcome of these tax audits cannot be predicted with certainty. If any issues raised in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, then the Company could be required to adjust its provision for income tax in the period such resolution occurs. Any significant adjustments from the tax authorities could have a material adverse effect on the Company’s results of operations, cash flows and financial position if not resolved favorably. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
7. Derivative Financial Instruments | |||||||||||||
Foreign Currency Forward Contracts | |||||||||||||
The Company transacts business in various foreign countries and is therefore exposed to gains and losses resulting from fluctuations in foreign currency exchange rates relating to purchases, obligations, and monetary assets and liabilities that are denominated in currencies other than the Company’s reporting currency. The Company has established foreign currency risk management programs to attempt to protect against short-term volatility in the value of non-U.S. dollar denominated monetary assets and liabilities, and of future cash flows caused by changes in foreign currency exchange rates. As a result, from time to time, the Company enters into foreign currency forward contracts to hedge its aforementioned currency exposures. | |||||||||||||
The Company accounts for all of its derivative instruments in accordance with the relevant FASB authoritative accounting guidance for derivatives and hedges. The guidance requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets. | |||||||||||||
As of June 30, 2014, the aggregate notional amount of the Company’s outstanding foreign currency forward contracts is summarized below: | |||||||||||||
Currency | Buy/ | Foreign | Notional | ||||||||||
Sell | Currency | Contract | |||||||||||
Amount | Value in | ||||||||||||
USD | |||||||||||||
Foreign currency non-hedge derivatives: | |||||||||||||
RMB | Buy | ¥ | 61,227 | $ | 10,000 | ||||||||
The changes in fair value of the Company’s derivative instruments are recognized into earnings during the period of change as other income (expense), net in the Condensed Consolidated Statements of Comprehensive Income. The Company recognized net gains of $201 and $71 during the three and nine months ended June 30, 2014 and $530 and $480 during the three and nine months ended June 30, 2013, respectively, related to derivative financial instruments. |
Impairment_and_Restructuring
Impairment and Restructuring | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Impairment and Restructuring | ' | |||||||||||||||
8. Impairment and Restructuring | ||||||||||||||||
During the three months ended March 31, 2014, following a full review of its manufacturing footprint and in an effort to realign its manufacturing capacity and costs with expected net sales, the Company initiated its plan to consolidate its production facilities to reduce the total manufacturing floor space by approximately one-third (the “Restructuring”). As part of the Restructuring, MFLEX Chengdu, along with two satellite manufacturing facilities in Suzhou, China, will be consolidated into the Company’s two main manufacturing plants under MFC in Suzhou. In addition, as part of the Restructuring, the Company expects to close MFE located in Cambridge, United Kingdom and realign headcount at its other locations. | ||||||||||||||||
The Company’s manufacturing facility in Chengdu, China ceased operations and met the criteria to be classified as assets held for sale per the relevant authoritative FASB guidance as of March 31, 2014. In addition, machinery and equipment at the Chengdu location and certain machinery and equipment and other fixed assets located at facilities in Suzhou, China ceased use and met the held for sale criteria as of March 31, 2014. | ||||||||||||||||
During the three months ended June 30, 2014, certain machinery and equipment and other property, plant and equipment located at facilities in Suzhou, China ceased use and met the held for sale criteria as of June 30, 2014. Certain assets that the Company plans to dispose of as part of the Restructuring at the Company’s satellite facilities in Suzhou and the United Kingdom continue to meet the held for use criteria as of June 30, 2014. | ||||||||||||||||
As a result of the Restructuring, the Company recorded the following impairment and restructuring charges for the three and nine months ended June 30, 2014: | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended June 30, 2014 | Ended June 30, 2014 | |||||||||||||||
Asset impairments | $ | 6,890 | $ | 18,439 | ||||||||||||
One-time termination benefits | 972 | 9,636 | ||||||||||||||
Other costs | 499 | 5,084 | ||||||||||||||
Impairment and restructuring | $ | 8,361 | $ | 33,159 | ||||||||||||
As the Company continues to execute the Restructuring, the Company may incur additional long-lived asset impairments and restructuring charges required for assets that will meet the held for sale criteria in future periods, one-time termination benefits for additional potential terminated employees and other charges, in the fourth quarter of fiscal 2014. Total charges in connection with the Restructuring are expected to be at the low end of the range of $40,000 to $60,000 previously disclosed. | ||||||||||||||||
Long-Lived Asset Impairment | ||||||||||||||||
Based on the Company’s Restructuring plan, the Company determined that a triggering event to test its long-lived assets for recoverability existed during the second and third quarters of fiscal 2014. The Company’s long-lived assets consisted primarily of property, plant and equipment and other assets. | ||||||||||||||||
Assets Held For Use | ||||||||||||||||
For assets classified as held for use, consisting of all property and equipment not held for sale, the Company compared its calculation of the undiscounted cash flows to the carrying value of the assets and concluded that no instances of impairment were identified as of June 30, 2014. As the Company continues to execute the Restructuring, it will monitor its forecasted undiscounted cash flows in order to test held for use assets. | ||||||||||||||||
Assets Held For Sale | ||||||||||||||||
For assets classified as held for sale, consisting of the Company’s manufacturing facility in Chengdu and other property, plant and equipment in Chengdu and Suzhou, China, the Company compared the estimated fair value less costs to sell to the carrying value of the assets. If the estimated fair value less costs to sell exceeded the carrying amount, no impairment expense was recorded. However, if the estimated fair value less costs to sell was less than the carrying amount, an impairment expense of the difference was recorded. As a result, the Company concluded that certain assets held for sale were impaired, and pre-tax impairment charges of $6,890 were recorded during the three months ended June 30, 2014 (of which $719 was related to buildings and leasehold improvements, $6,100 was related to machinery and equipment and $71 was related to other property, plant and equipment). | ||||||||||||||||
During the nine months ended June 30, 2014, pre-tax impairment charges for assets held for sale of $18,439 were recorded (of which $9,860 was related to land use rights, building and leasehold improvements, $8,416 was related to machinery and equipment and $163 was related to other property, plant and equipment). | ||||||||||||||||
Other Restructuring-related Costs | ||||||||||||||||
A pre-tax restructuring charge of $1,471 was recorded during the three months ended June 30, 2014, which included $972 of one-time termination benefits, $(400) of contract termination cost adjustment and $899 of other costs. | ||||||||||||||||
A pre-tax restructuring charge of $14,720 was recorded during the nine months ended June 30, 2014, which included $9,636 of one-time termination benefits, $803 of contract termination costs and $4,281 of other costs (of which $198 was non-cash). | ||||||||||||||||
The following table reflects the movement activity of the restructuring reserve for the nine months ended June 30, 2014: | ||||||||||||||||
One-Time Termination Benefits | Contract Termination Costs | Other Costs | Total Accrued Restructuring | |||||||||||||
Accrued at September 30, 2013 | $ | — | $ | — | $ | — | $ | — | ||||||||
Restructuring additions | 9,636 | 803 | 4,083 | 14,522 | ||||||||||||
Adjustment/foreign exchange effect | 92 | — | — | 92 | ||||||||||||
Amount paid | -8,370 | -797 | -39 | -9,206 | ||||||||||||
Accrued at June 30, 2014 | $ | 1,358 | $ | 6 | $ | 4,044 | $ | 5,408 | ||||||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2014 | |
Subsequent Events | ' |
9. Subsequent Events | |
On August 6, 2014, the Company, as guarantor, and MFLEX Singapore, as borrower, entered into a Loan and Security Agreement with certain financial institutions, as lenders, and Bank of America, N.A., as agent, providing for a senior revolving credit facility in an amount up to $30,000. The credit facility has a three-year term, and availability under the credit facility is calculated based on a formula which takes into account multiple factors, including the accounts receivable of borrower, the geographic location of borrower’s customer, and whether the customer’s receivable is insured by a third party. Amounts outstanding will bear interest at either: (1) a rate equal to LIBOR or SIBOR, plus an applicable margin, which ranges from 125 to 275 basis points, or (2) a defined base rate plus an applicable margin ranging from 75 to 275 basis points. In either case, the applicable margin is based on the fixed charge coverage ratio of the Company and its subsidiaries, measured on a consolidated basis. | |
On August 4, 2014, the Board of Directors of the Company approved to change the Company’s fiscal year end from September 30 to December 31. The Company intends to file an Annual Report on Form 10-K for the period ending September 30, 2014 and a transitional report on Form 10-K for the three-month period ending December 31, 2014. | |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Principles of Consolidation | ' | |||||||||||||||
Principles of Consolidation | ||||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company has two wholly owned subsidiaries located in China: MFLEX Suzhou Co., Ltd., (“MFC”) and MFLEX Chengdu Co., Ltd. (“MFLEX Chengdu”); one located in the Cayman Islands: M-Flex Cayman Islands, Inc. (“MFCI”); one located in Singapore: Multi-Fineline Electronix Singapore Pte. Ltd. (“MFLEX Singapore”); one located in Malaysia: Multi-Fineline Electronix Malaysia Sdn. Bhd. (“MFM”); one located in Cambridge, England: MFLEX UK Limited (“MFE”); one located in Korea: MFLEX Korea, Ltd. (“MKR”); and one located in the Netherlands: MFLEX B.V. (“MNE”). In 2010, the Company merged its subsidiary, Multi-Fineline Electronix (Suzhou) Co., Ltd (“MFC1”) into MFC; however, the Company is still in the process of deregistering MFC1. All significant intercompany transactions and balances have been eliminated in consolidation. | ||||||||||||||||
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s 2013 Annual Report on Form 10-K. The financial information presented in the accompanying statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the periods indicated. All such adjustments are of a normal recurring nature. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. Operating results for the three and nine months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2014. Unless otherwise indicated, the financial information in these notes is presented in thousands (except per share amounts). | ||||||||||||||||
Recently Issued Accounting Pronouncements Not Yet Adopted | ' | |||||||||||||||
Recently Issued Accounting Pronouncements Not Yet Adopted | ||||||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which requires a reporting entity to 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. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. This standard will be effective for the Company beginning January 1, 2017. The Company is currently evaluating the impact of its pending adoption of this guidance on its financial position, results of operations and cash flows. | ||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximated fair value due to their short maturities. For recognition purposes, on a recurring basis, the Company’s assets and liabilities related to money market funds and derivative financial instruments are measured at fair value at the end of each reporting period. The fair value of the Company’s money market funds were measured using Level 1 fair value inputs and the fair value of the Company’s derivative assets and liabilities were measured using Level 2 fair value inputs, which consisted of observable market-based inputs of foreign currency spot and forward rates quoted by major financial institutions. | ||||||||||||||||
The Company’s assets and liabilities measured at fair value on a recurring basis subject to the disclosure requirements as defined under the FASB authoritative accounting guidance were as follows: | ||||||||||||||||
Fair Value Measurements of Assets and Liabilities | ||||||||||||||||
on a Recurring Basis as of | ||||||||||||||||
30-Jun-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds (cash and cash equivalents) | $ | 17,173 | $ | - | $ | - | ||||||||||
Forward contracts (accrued liabilities) | - | 61 | - | |||||||||||||
$ | 17,173 | $ | 61 | $ | - | |||||||||||
Fair Value Measurements of Assets and Liabilities | ||||||||||||||||
on a Recurring Basis as of | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds (cash and cash equivalents) | $ | 14,141 | $ | - | $ | - | ||||||||||
Forward contracts (other current assets) | - | 179 | - | |||||||||||||
Forward contracts (accrued liabilities) | - | (34 | ) | - | ||||||||||||
$ | 14,141 | $ | 145 | $ | - | |||||||||||
As of June 30, 2014, assets held for sale were measured at fair value on a non-recurring basis. Based on the relevant FASB guidance, the carrying value of assets held for sale was written down to $7,360 after recording an impairment charge of $6,890 during the three months ended June 30, 2014 (refer to Note 8). The fair value of the assets was determined using Level 3 unobservable inputs not corroborated by market data, consisting of third-party offers for assets held for sale. Below is a summary of the Company’s assets measured at fair value on a non-recurring basis as of June 30, 2014: | ||||||||||||||||
Fair Value Measurements of Assets | ||||||||||||||||
on a Non-Recurring Basis as of | ||||||||||||||||
30-Jun-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Building and equipment (assets held for sale) | $ | — | $ | — | $ | 7,360 | ||||||||||
$ | — | $ | — | $ | 7,360 | |||||||||||
No assets or liabilities were measured at fair value on a non-recurring basis as of September 30, 2013. | ||||||||||||||||
Inventories | ' | |||||||||||||||
Inventories | ||||||||||||||||
Inventories, net of applicable write-downs, were composed of the following: | ||||||||||||||||
June 30, | September 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Raw materials and supplies | $ | 13,109 | $ | 27,080 | ||||||||||||
Work-in-progress | 14,275 | 20,965 | ||||||||||||||
Finished goods | 16,046 | 38,808 | ||||||||||||||
$ | 43,430 | $ | 86,853 | |||||||||||||
Restricted Cash | ' | |||||||||||||||
Restricted Cash | ||||||||||||||||
As of June 30, 2014, the Company held $520 of cash restricted due to customs deposit requirements, which was segregated from cash and cash equivalents and included within other current assets. The restriction is expected to cease within twelve months. | ||||||||||||||||
Property, Plant and Equipment | ' | |||||||||||||||
Property, Plant and Equipment | ||||||||||||||||
Property, plant and equipment, net, were composed of the following: | ||||||||||||||||
June 30, | September 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Building | $ | 52,592 | $ | 68,679 | ||||||||||||
Machinery and equipment | 338,535 | 406,010 | ||||||||||||||
Computers and capitalized software | 13,119 | 13,014 | ||||||||||||||
Leasehold improvements | 10,611 | 14,145 | ||||||||||||||
Construction-in-progress | 4,953 | 5,307 | ||||||||||||||
$ | 419,810 | $ | 507,155 | |||||||||||||
Accumulated depreciation and amortization | (236,093 | ) | (263,099 | ) | ||||||||||||
$ | 183,717 | $ | 244,056 | |||||||||||||
Accrued Liabilities | ' | |||||||||||||||
Accrued Liabilities | ||||||||||||||||
Accrued liabilities were composed of the following: | ||||||||||||||||
June 30, | September 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Wages and compensation | $ | 10,017 | $ | 16,822 | ||||||||||||
Restructuring expenses¹ | 5,408 | - | ||||||||||||||
Other accrued expenses | 13,811 | 14,637 | ||||||||||||||
$ | 29,236 | $ | 31,459 | |||||||||||||
1 | Refer to Note 8 for further information on the Company’s impairment and restructuring activities during the three and nine months ended June 30, 2014. | |||||||||||||||
Product Warranty Accrual | ' | |||||||||||||||
Product Warranty Accrual | ||||||||||||||||
Changes in the product warranty accrual for the three months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||
Balance at | Warranty | Provision for | Balance at | |||||||||||||
April 1 | Expenditures | Estimated | 30-Jun | |||||||||||||
Warranty Cost | ||||||||||||||||
Fiscal 2014 | $ | 1,814 | $ | (1,860 | ) | $ | 902 | $ | 856 | |||||||
Fiscal 2013 | $ | 223 | $ | (1,426 | ) | $ | 1,959 | $ | 756 | |||||||
Changes in the product warranty accrual for the nine months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||
Balance at | Warranty | Provision for | Balance at | |||||||||||||
October 1 | Expenditures | Estimated | 30-Jun | |||||||||||||
Warranty Cost | ||||||||||||||||
Fiscal 2014 | $ | 1,076 | $ | (4,106 | ) | $ | 3,886 | $ | 856 | |||||||
Fiscal 2013 | $ | 346 | $ | (2,252 | ) | $ | 2,662 | $ | 756 | |||||||
Net Income Per Share-Basic and Diluted | ' | |||||||||||||||
Net Income Per Share—Basic and Diluted | ||||||||||||||||
The following table presents a reconciliation of basic and diluted shares for the three and nine months ended June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic weighted-average number of common shares outstanding | 24,144,874 | 23,948,428 | 24,106,495 | 23,847,413 | ||||||||||||
Dilutive effect of potential common shares | - | - | - | - | ||||||||||||
Diluted weighted-average number of common and potential | 24,144,874 | 23,948,428 | 24,106,495 | 23,847,413 | ||||||||||||
common shares outstanding | ||||||||||||||||
Potential common shares excluded from the per share | 931,932 | 938,850 | 881,392 | 982,851 | ||||||||||||
computations as the effect of their inclusion would not | ||||||||||||||||
be dilutive | ||||||||||||||||
Commitments and Contingencies | ' | |||||||||||||||
Commitments and Contingencies | ||||||||||||||||
Litigation | ||||||||||||||||
The Company is involved in litigation from time to time in the ordinary course of business. Management does not believe the outcome of any currently pending matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. | ||||||||||||||||
Other Commitments | ||||||||||||||||
The Company has outstanding purchase and other commitments, which exclude amounts already recorded on the Condensed Consolidated Balance Sheets. The outstanding purchase commitments to acquire capital assets and other materials and services totaled $10,588 and $6,454 as of June 30, 2014 and September 30, 2013, respectively. | ||||||||||||||||
Pursuant to the laws applicable to the People’s Republic of China’s Foreign Investment Enterprises, the Company’s two wholly owned subsidiaries in China, MFC and MFLEX Chengdu, are restricted from paying cash dividends on 10% of after-tax statutory profit, subject to certain cumulative limits. These restrictions as of June 30, 2014 and September 30, 2013 were $19,823 and $19,838, respectively. | ||||||||||||||||
Significant Concentrations | ' | |||||||||||||||
Significant Concentrations | ||||||||||||||||
The Company’s net sales into its largest industry sectors, as a percentage of total net sales, are presented below: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Smartphones | 65 | % | 78 | % | 71 | % | 69 | % | ||||||||
Tablets | 17 | % | 13 | % | 15 | % | 23 | % | ||||||||
Consumer electronics | 6 | % | 8 | % | 7 | % | 7 | % | ||||||||
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||
The Company’s assets and liabilities measured at fair value on a recurring basis subject to the disclosure requirements as defined under the FASB authoritative accounting guidance were as follows: | ||||||||||||||||
Fair Value Measurements of Assets and Liabilities | ||||||||||||||||
on a Recurring Basis as of | ||||||||||||||||
30-Jun-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds (cash and cash equivalents) | $ | 17,173 | $ | - | $ | - | ||||||||||
Forward contracts (accrued liabilities) | - | 61 | - | |||||||||||||
$ | 17,173 | $ | 61 | $ | - | |||||||||||
Fair Value Measurements of Assets and Liabilities | ||||||||||||||||
on a Recurring Basis as of | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Money market funds (cash and cash equivalents) | $ | 14,141 | $ | - | $ | - | ||||||||||
Forward contracts (other current assets) | - | 179 | - | |||||||||||||
Forward contracts (accrued liabilities) | - | (34 | ) | - | ||||||||||||
$ | 14,141 | $ | 145 | $ | - | |||||||||||
Schedule of Assets Held For Sale Measured at Fair Value on Nonrecurring Basis | ' | |||||||||||||||
Below is a summary of the Company’s assets measured at fair value on a non-recurring basis as of June 30, 2014: | ||||||||||||||||
Fair Value Measurements of Assets | ||||||||||||||||
on a Non-Recurring Basis as of | ||||||||||||||||
30-Jun-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Building and equipment (assets held for sale) | $ | — | $ | — | $ | 7,360 | ||||||||||
$ | — | $ | — | $ | 7,360 | |||||||||||
Components of Inventories, Net of Applicable Write-Downs | ' | |||||||||||||||
Inventories, net of applicable write-downs, were composed of the following: | ||||||||||||||||
June 30, | September 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Raw materials and supplies | $ | 13,109 | $ | 27,080 | ||||||||||||
Work-in-progress | 14,275 | 20,965 | ||||||||||||||
Finished goods | 16,046 | 38,808 | ||||||||||||||
$ | 43,430 | $ | 86,853 | |||||||||||||
Components of Property, Plant and Equipment | ' | |||||||||||||||
Property, plant and equipment, net, were composed of the following: | ||||||||||||||||
June 30, | September 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Building | $ | 52,592 | $ | 68,679 | ||||||||||||
Machinery and equipment | 338,535 | 406,010 | ||||||||||||||
Computers and capitalized software | 13,119 | 13,014 | ||||||||||||||
Leasehold improvements | 10,611 | 14,145 | ||||||||||||||
Construction-in-progress | 4,953 | 5,307 | ||||||||||||||
$ | 419,810 | $ | 507,155 | |||||||||||||
Accumulated depreciation and amortization | (236,093 | ) | (263,099 | ) | ||||||||||||
$ | 183,717 | $ | 244,056 | |||||||||||||
Schedule of Accrued Liabilities | ' | |||||||||||||||
Accrued liabilities were composed of the following: | ||||||||||||||||
June 30, | September 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Wages and compensation | $ | 10,017 | $ | 16,822 | ||||||||||||
Restructuring expenses¹ | 5,408 | - | ||||||||||||||
Other accrued expenses | 13,811 | 14,637 | ||||||||||||||
$ | 29,236 | $ | 31,459 | |||||||||||||
1 | Refer to Note 8 for further information on the Company’s impairment and restructuring activities during the three and nine months ended June 30, 2014. | |||||||||||||||
Changes in the Product Warranty Accrual | ' | |||||||||||||||
Changes in the product warranty accrual for the three months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||
Balance at | Warranty | Provision for | Balance at | |||||||||||||
April 1 | Expenditures | Estimated | 30-Jun | |||||||||||||
Warranty Cost | ||||||||||||||||
Fiscal 2014 | $ | 1,814 | $ | (1,860 | ) | $ | 902 | $ | 856 | |||||||
Fiscal 2013 | $ | 223 | $ | (1,426 | ) | $ | 1,959 | $ | 756 | |||||||
Changes in the product warranty accrual for the nine months ended June 30, 2014 and 2013 were as follows: | ||||||||||||||||
Balance at | Warranty | Provision for | Balance at | |||||||||||||
October 1 | Expenditures | Estimated | 30-Jun | |||||||||||||
Warranty Cost | ||||||||||||||||
Fiscal 2014 | $ | 1,076 | $ | (4,106 | ) | $ | 3,886 | $ | 856 | |||||||
Fiscal 2013 | $ | 346 | $ | (2,252 | ) | $ | 2,662 | $ | 756 | |||||||
Reconciliation of Basic and Diluted Shares | ' | |||||||||||||||
The following table presents a reconciliation of basic and diluted shares for the three and nine months ended June 30, 2014 and 2013: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Basic weighted-average number of common shares outstanding | 24,144,874 | 23,948,428 | 24,106,495 | 23,847,413 | ||||||||||||
Dilutive effect of potential common shares | - | - | - | - | ||||||||||||
Diluted weighted-average number of common and potential | 24,144,874 | 23,948,428 | 24,106,495 | 23,847,413 | ||||||||||||
common shares outstanding | ||||||||||||||||
Potential common shares excluded from the per share | 931,932 | 938,850 | 881,392 | 982,851 | ||||||||||||
computations as the effect of their inclusion would not | ||||||||||||||||
be dilutive | ||||||||||||||||
Company's Sales into its Largest Industry Sectors | ' | |||||||||||||||
The Company’s net sales into its largest industry sectors, as a percentage of total net sales, are presented below: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Smartphones | 65 | % | 78 | % | 71 | % | 69 | % | ||||||||
Tablets | 17 | % | 13 | % | 15 | % | 23 | % | ||||||||
Consumer electronics | 6 | % | 8 | % | 7 | % | 7 | % | ||||||||
Lines_of_Credit_Tables
Lines of Credit (Tables) | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Summary of the Lines of Credit | ' | |||||||||||||||
A summary of the lines of credit is as follows: | ||||||||||||||||
Amounts Available at | Amounts Outstanding at | |||||||||||||||
June 30, | September 30, | June 30, | September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Line of credit (ABC) | $ | 12,506 | $ | 32,531 | $ | 20,000 | $ | - | ||||||||
Line of credit (CCB) | 48,758 | 48,796 | - | - | ||||||||||||
Line of credit (BC) | - | 11,000 | - | - | ||||||||||||
Line of credit (JPM) | - | 50,000 | - | - | ||||||||||||
$ | 61,264 | $ | 142,327 | $ | 20,000 | $ | - | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Financial Information by Geographic Segment | ' | |||||||||||||||
Financial information by geographic segment is as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales | ||||||||||||||||
United States | $ | 4,578 | $ | 2,861 | $ | 13,207 | $ | 8,716 | ||||||||
China | 123,560 | 152,653 | 461,576 | 593,813 | ||||||||||||
Singapore | 107,797 | 128,972 | 396,061 | 583,659 | ||||||||||||
Other | 13,105 | 1,121 | 18,058 | 1,585 | ||||||||||||
Eliminations | (118,236 | ) | (149,541 | ) | (428,633 | ) | (588,383 | ) | ||||||||
Total | $ | 130,804 | $ | 136,066 | $ | 460,269 | $ | 599,390 | ||||||||
Operating (loss) income | ||||||||||||||||
United States | $ | (2,229 | ) | $ | (6,002 | ) | $ | (5,952 | ) | $ | (10,196 | ) | ||||
China | (3,213 | ) | (8,953 | ) | (11,774 | ) | (10,951 | ) | ||||||||
Singapore | (19,921 | ) | (11,757 | ) | (62,533 | ) | (23,218 | ) | ||||||||
Other | (149 | ) | (4,996 | ) | (1,804 | ) | (6,530 | ) | ||||||||
Eliminations | (498 | ) | 23 | 590 | 3,349 | |||||||||||
Total | $ | (26,010 | ) | $ | (31,685 | ) | $ | (81,473 | ) | $ | (47,546 | ) | ||||
Depreciation and amortization | ||||||||||||||||
United States | $ | 315 | $ | 544 | $ | 989 | $ | 1,841 | ||||||||
China | 12,348 | 28,265 | 38,066 | 41,967 | ||||||||||||
Singapore | 27 | 35 | 93 | 94 | ||||||||||||
Other | 66 | 40 | 116 | 125 | ||||||||||||
Total | $ | 12,756 | $ | 28,884 | $ | 39,264 | $ | 44,027 | ||||||||
June 30, | September 30, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Total assets | ||||||||||||||||
United States | $ | 141,457 | $ | 136,299 | ||||||||||||
China | 322,796 | 403,824 | ||||||||||||||
Singapore | 242,154 | 295,714 | ||||||||||||||
Other | 5,908 | 2,022 | ||||||||||||||
Eliminations | (232,627 | ) | (227,645 | ) | ||||||||||||
Total | $ | 479,688 | $ | 610,214 | ||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||
Stock option activity for the nine months ended June 30, 2014 under the Company’s 2004 Plan is summarized as follows: | |||||||||||||||||
Number of | Weighted- | Aggregate | Weighted- | ||||||||||||||
Shares | Average | Intrinsic | Average | ||||||||||||||
Exercise | Value | Remaining | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life | |||||||||||||||||
Stock options outstanding at September 30, 2013 | 164,652 | $ | 10.98 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (81,882 | ) | 10 | ||||||||||||||
Forfeited | — | — | |||||||||||||||
Expired | (67,770 | ) | 10 | ||||||||||||||
Stock options outstanding and exercisable at June 30, 2014 | 15,000 | $ | 20.81 | $ | — | 0.7 | |||||||||||
Stock options vested and expected to vest at June 30, 2014 | 15,000 | $ | 20.81 | $ | — | 0.7 | |||||||||||
Grant Date Fair Values of Awards | ' | ||||||||||||||||
The grant date fair values of the portion of the November 2013 Awards and the December 2013 Awards containing both market and performance conditions were calculated utilizing the following assumptions: | |||||||||||||||||
November 2013 | Nasdaq Total Return | December 2013 | Nasdaq Total Return | ||||||||||||||
Awards | Index Benchmark | Awards | Index Benchmark | ||||||||||||||
Inputs | Inputs | ||||||||||||||||
Expected stock return/ discount rate1 | 0.65 | % | 0.65 | % | 0.7 | % | 0.7 | % | |||||||||
Dividend yield | — | — | — | — | |||||||||||||
Volatility2 | 40 | % | 20 | % | 40 | % | 20 | % | |||||||||
Grant date | 11/30/13 | 11/30/13 | 12/19/13 | 12/19/13 | |||||||||||||
Three-month average | $ | 14.6 | $ | 4,194.45 | $ | 14.6 | $ | 4,194.45 | |||||||||
share price3 | |||||||||||||||||
Expected vesting period | 3.1 | N/A | 3 | N/A | |||||||||||||
(in years) | |||||||||||||||||
Correlation | 0.48 | 0.48 | 0.48 | 0.48 | |||||||||||||
Fair value per share | $ | 8.28 | N/A | $ | 6.7 | N/A | |||||||||||
1 | The expected stock return/discount rate was based on the yield to maturity of short-term government bonds over the expected term as of the grant date. | ||||||||||||||||
2 | Volatilities were calculated as of fiscal year end dates for the Company. | ||||||||||||||||
3 | The three-month daily average share price was based on the average of the three-month daily closing price for the Company’s common stock and the Nasdaq Total Return Index as of November 30, 2013. | ||||||||||||||||
Restricted Stock Units Activity | ' | ||||||||||||||||
RSU activity for the nine months ended June 30, 2014 under the 2004 Plan and 2014 Plan is summarized as follows: | |||||||||||||||||
Number of | Weighted | ||||||||||||||||
Shares | -Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested shares outstanding at September 30, 2013 | 336,374 | $ | 17.55 | ||||||||||||||
Granted | 586,133 | 11.44 | |||||||||||||||
Vested | (2,445 | ) | 13.88 | ||||||||||||||
Canceled | (69,975 | ) | 14.71 | ||||||||||||||
Non-vested shares outstanding at June 30, 2014 | 850,087 | $ | 13.58 | ||||||||||||||
Restricted Stock Units Details | ' | ||||||||||||||||
RSU details for the three and nine months ended June 30, 2014 and 2013 are summarized as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service-based RSUs granted | 1,800 | 126,450 | 324,288 | 332,261 | |||||||||||||
Performance-based RSUs granted | - | 24,525 | 261,845 | 96,556 | |||||||||||||
Compensation cost recognized | $ | 972 | $ | 8,656 | $ | 2,547 | $ | 10,642 | |||||||||
Weighted-average grant-date fair value of non-vested RSUs granted | $ | 11.98 | $ | 15.03 | $ | 11.44 | $ | 17.07 | |||||||||
Weighted-average grant-date fair value of RSUs vested | $ | 14.64 | $ | 19.36 | $ | 13.88 | $ | 20.42 | |||||||||
Aggregate intrinsic value of RSUs vested | $ | 8 | $ | 5,583 | $ | 33 | $ | 8,094 | |||||||||
Summary of Compensation Expense | ' | ||||||||||||||||
The following table shows a summary of the stock-based compensation expense by expense type included in the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended June 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of sales | $ | 71 | $ | 78 | $ | 188 | $ | 344 | |||||||||
Research and development | 89 | 103 | 270 | 409 | |||||||||||||
Sales and marketing | 108 | 130 | 360 | 522 | |||||||||||||
General and administrative | 704 | 568 | 1,729 | 2,152 | |||||||||||||
Stock-based compensation resulting from change in control | - | 9,582 | - | 9,582 | |||||||||||||
Total compensation cost | $ | 972 | $ | 10,461 | $ | 2,547 | $ | 13,009 | |||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
The Aggregate Notional Amount of Outstanding Foreign Currency Forward Contracts | ' | ||||||||||||
As of June 30, 2014, the aggregate notional amount of the Company’s outstanding foreign currency forward contracts is summarized below: | |||||||||||||
Currency | Buy/ | Foreign | Notional | ||||||||||
Sell | Currency | Contract | |||||||||||
Amount | Value in | ||||||||||||
USD | |||||||||||||
Foreign currency non-hedge derivatives: | |||||||||||||
RMB | Buy | ¥ | 61,227 | $ | 10,000 | ||||||||
Impairment_and_Restructuring_T
Impairment and Restructuring (Tables) | 9 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Schedule of Impairment and Restructuring Charges | ' | |||||||||||||||
As a result of the Restructuring, the Company recorded the following impairment and restructuring charges for the three and nine months ended June 30, 2014: | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
Ended June 30, 2014 | Ended June 30, 2014 | |||||||||||||||
Asset impairments | $ | 6,890 | $ | 18,439 | ||||||||||||
One-time termination benefits | 972 | 9,636 | ||||||||||||||
Other costs | 499 | 5,084 | ||||||||||||||
Impairment and restructuring | $ | 8,361 | $ | 33,159 | ||||||||||||
Activity of Restructuring Reserve | ' | |||||||||||||||
The following table reflects the movement activity of the restructuring reserve for the nine months ended June 30, 2014: | ||||||||||||||||
One-Time Termination Benefits | Contract Termination Costs | Other Costs | Total Accrued Restructuring | |||||||||||||
Accrued at September 30, 2013 | $ | — | $ | — | $ | — | $ | — | ||||||||
Restructuring additions | 9,636 | 803 | 4,083 | 14,522 | ||||||||||||
Adjustment/foreign exchange effect | 92 | — | — | 92 | ||||||||||||
Amount paid | -8,370 | -797 | -39 | -9,206 | ||||||||||||
Accrued at June 30, 2014 | $ | 1,358 | $ | 6 | $ | 4,044 | $ | 5,408 | ||||||||
Description_of_Business_Additi
Description of Business - Additional Information (Detail) | Jun. 30, 2014 | Sep. 30, 2013 |
Basis Of Presentation [Abstract] | ' | ' |
Percentage of shares owned by affiliates and subsidiaries of WBL Corporation Limited | 61.00% | 62.00% |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Carrying value of assets held for sale | $7,360,000 | $7,360,000 | ' | ' |
Asset impairments | 6,890,000 | 18,439,000 | 7,537,000 | ' |
Assets measured at fair value on a non-recurring basis | ' | ' | ' | 0 |
Liabilities measured at fair value on a non-recurring basis | ' | ' | ' | 0 |
Cash restricted due to customs deposit | 520,000 | 520,000 | ' | ' |
Expected restriction cash, cease | ' | '12 months | ' | ' |
Outstanding purchase and other commitments | 10,588,000 | 10,588,000 | ' | 6,454,000 |
Restrictions on net income | $19,823,000 | $19,823,000 | ' | $19,838,000 |
Percentage of restricted after-tax profits from paying cash dividends | 10.00% | ' | ' | ' |
China | ' | ' | ' | ' |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Number of wholly owned subsidiaries | 2 | 2 | ' | ' |
Cayman | ' | ' | ' | ' |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Number of wholly owned subsidiaries | 1 | 1 | ' | ' |
Singapore | ' | ' | ' | ' |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Number of wholly owned subsidiaries | 1 | 1 | ' | ' |
Malaysia | ' | ' | ' | ' |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Number of wholly owned subsidiaries | 1 | 1 | ' | ' |
England | ' | ' | ' | ' |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Number of wholly owned subsidiaries | 1 | 1 | ' | ' |
Korea | ' | ' | ' | ' |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Number of wholly owned subsidiaries | 1 | 1 | ' | ' |
Netherlands | ' | ' | ' | ' |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Number of wholly owned subsidiaries | 1 | 1 | ' | ' |
Basis_of_Presentation_Schedule
Basis of Presentation - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
LevelB 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fair value net assets liabilities, Total | $17,173 | $14,141 |
LevelB 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fair value net assets liabilities, Total | 61 | 145 |
LevelB 2 | Forward contracts | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Forward contracts (accrued liabilities) | 61 | 34 |
Forward contracts (other current assets) | ' | 179 |
Money market funds | LevelB 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Money market funds (cash and cash equivalents) | $17,173 | $14,141 |
Basis_of_Presentation_Schedule1
Basis of Presentation - Schedule of Assets Held For Sale Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | ||
LevelB 1 | LevelB 1 | LevelB 2 | LevelB 2 | LevelB 3 | LevelB 3 | ||
Assets Held for Sale | Assets Held for Sale | Assets Held for Sale | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Building and equipment | $0 | ' | ' | ' | ' | $7,360,000 | $7,360,000 |
Basis_of_Presentation_Componen
Basis of Presentation - Components of Inventories, Net of Applicable Write-Downs (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Raw materials and supplies | $13,109 | $27,080 |
Work-in-progress | 14,275 | 20,965 |
Finished goods | 16,046 | 38,808 |
Inventories, net | $43,430 | $86,853 |
Basis_of_Presentation_Componen1
Basis of Presentation - Components of Property, Plant and Equipment (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $419,810 | $507,155 |
Accumulated depreciation and amortization | -236,093 | -263,099 |
Property, plant and equipment, net | 183,717 | 244,056 |
Building | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 52,592 | 68,679 |
Machinery and equipment | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 338,535 | 406,010 |
Computers and capitalized software | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 13,119 | 13,014 |
Leasehold improvements | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 10,611 | 14,145 |
Construction-in-progress | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $4,953 | $5,307 |
Basis_of_Presentation_Schedule2
Basis of Presentation - Schedule of Accrued Liabilities (Detail) (USD $) | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' |
Wages and compensation | $10,017 | $16,822 |
Restructuring expensesB9 | 5,408 | ' |
Other accrued expenses | 13,811 | 14,637 |
Accrued liabilities, current | $29,236 | $31,459 |
Basis_of_Presentation_Changes_
Basis of Presentation - Changes in the Product Warranty Accrual (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Guarantee Obligations [Line Items] | ' | ' | ' | ' |
Beginning Balance | $1,814 | $223 | $1,076 | $346 |
Warranty Expenditures | -1,860 | -1,426 | -4,106 | -2,252 |
Provision for Estimated Warranty Cost | 902 | 1,959 | 3,886 | 2,662 |
Ending Balance | $856 | $756 | $856 | $756 |
Basis_of_Presentation_Reconcil
Basis of Presentation - Reconciliation of Basic and Diluted Shares (Detail) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Weighted Average Number Of Shares Outstanding Diluted Disclosure Items [Abstract] | ' | ' | ' | ' |
Basic | 24,144,874 | 23,948,428 | 24,106,495 | 23,847,413 |
Dilutive effect of potential common shares | ' | ' | ' | ' |
Diluted weighted-average number of common and potential common shares outstanding | 24,144,874 | 23,948,428 | 24,106,495 | 23,847,413 |
Potential common shares excluded from the per share computations as the effect of their inclusion would not be dilutive | 931,932 | 938,850 | 881,392 | 982,851 |
Basis_of_Presentation_Companys
Basis of Presentation - Company's Sales into its Largest Industry Sectors (Detail) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Smartphones | ' | ' | ' | ' |
Sales Concentration [Line Items] | ' | ' | ' | ' |
Percentage of net sales to largest industry sectors | 65.00% | 78.00% | 71.00% | 69.00% |
Tablets | ' | ' | ' | ' |
Sales Concentration [Line Items] | ' | ' | ' | ' |
Percentage of net sales to largest industry sectors | 17.00% | 13.00% | 15.00% | 23.00% |
Consumer electronics | ' | ' | ' | ' |
Sales Concentration [Line Items] | ' | ' | ' | ' |
Percentage of net sales to largest industry sectors | 6.00% | 8.00% | 7.00% | 7.00% |
Lines_of_Credit_Additional_Inf
Lines of Credit - Additional Information (Detail) | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | 31-May-13 | Mar. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jan. 31, 2012 | Aug. 06, 2014 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Agricultural Bank of China | Agricultural Bank of China | Agricultural Bank of China | China Construction Bank | China Construction Bank | China Construction Bank | Bank of China | Bank of China | Bank of China | Bank of China | J P Morgan Chase Bank | J P Morgan Chase Bank | J P Morgan Chase Bank | J P Morgan Chase Bank | J P Morgan Chase Bank | Bank of America, N.A |
USD ($) | USD ($) | CNY | USD ($) | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Subsequent Event | |||||
USD ($) | ||||||||||||||||||
Line Of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity under Line of Credit Agreement | ' | ' | $32,506 | ' | 200,000 | $48,758 | ' | 300,000 | ' | ' | $11,000 | ' | ' | ' | ' | ' | $50,000 | $30,000 |
Line of credit, maturity date | ' | ' | 30-Jul-16 | ' | ' | 5-May-16 | ' | ' | 5-Feb-14 | ' | ' | ' | 5-Feb-14 | ' | ' | ' | ' | ' |
Line of credit, amount outstanding | $20,000 | ' | $20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' |
Line of credit, interest rate | ' | ' | 3.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lines_of_Credit_Summary_of_the
Lines of Credit - Summary of the Lines of Credit (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Line Of Credit Facility [Line Items] | ' | ' | ' |
Line of credit, Amount Available | $61,264 | ' | $142,327 |
Line of credit, amount outstanding | 20,000 | ' | ' |
Agricultural Bank of China | ' | ' | ' |
Line Of Credit Facility [Line Items] | ' | ' | ' |
Line of credit, Amount Available | 12,506 | ' | 32,531 |
Line of credit, amount outstanding | 20,000 | ' | ' |
China Construction Bank | ' | ' | ' |
Line Of Credit Facility [Line Items] | ' | ' | ' |
Line of credit, Amount Available | 48,758 | ' | 48,796 |
Line of credit, amount outstanding | ' | ' | ' |
Bank of China | ' | ' | ' |
Line Of Credit Facility [Line Items] | ' | ' | ' |
Line of credit, Amount Available | ' | ' | 11,000 |
Line of credit, amount outstanding | ' | ' | ' |
J P Morgan Chase Bank | ' | ' | ' |
Line Of Credit Facility [Line Items] | ' | ' | ' |
Line of credit, Amount Available | ' | ' | 50,000 |
Line of credit, amount outstanding | ' | $0 | ' |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 9 Months Ended |
Jun. 30, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of reportable segment | 1 |
Number of geographical segment | 4 |
Segment_Information_Financial_
Segment Information - Financial Information by Geographic Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales | $130,804 | $136,066 | $460,269 | $599,390 | ' |
Operating (loss) income | -26,010 | -31,685 | -81,473 | -47,546 | ' |
Depreciation and amortization | 12,756 | 28,884 | 39,264 | 44,027 | ' |
Total assets | 479,688 | ' | 479,688 | ' | 610,214 |
United States | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales | 4,578 | 2,861 | 13,207 | 8,716 | ' |
Operating (loss) income | -2,229 | -6,002 | -5,952 | -10,196 | ' |
Depreciation and amortization | 315 | 544 | 989 | 1,841 | ' |
Total assets | 141,457 | ' | 141,457 | ' | 136,299 |
China | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales | 123,560 | 152,653 | 461,576 | 593,813 | ' |
Operating (loss) income | -3,213 | -8,953 | -11,774 | -10,951 | ' |
Depreciation and amortization | 12,348 | 28,265 | 38,066 | 41,967 | ' |
Total assets | 322,796 | ' | 322,796 | ' | 403,824 |
Singapore | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales | 107,797 | 128,972 | 396,061 | 583,659 | ' |
Operating (loss) income | -19,921 | -11,757 | -62,533 | -23,218 | ' |
Depreciation and amortization | 27 | 35 | 93 | 94 | ' |
Total assets | 242,154 | ' | 242,154 | ' | 295,714 |
Other | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales | 13,105 | 1,121 | 18,058 | 1,585 | ' |
Operating (loss) income | -149 | -4,996 | -1,804 | -6,530 | ' |
Depreciation and amortization | 66 | 40 | 116 | 125 | ' |
Total assets | 5,908 | ' | 5,908 | ' | 2,022 |
Eliminations | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net sales | -118,236 | -149,541 | -428,633 | -588,383 | ' |
Operating (loss) income | -498 | 23 | 590 | 3,349 | ' |
Total assets | ($232,627) | ' | ($232,627) | ' | ($227,645) |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Nov. 11, 2013 | Dec. 19, 2013 | |
Restricted Stock Unit Service-Based | Restricted Stock Unit Service-Based | Restricted Stock Unit Service-Based | Restricted Stock Unit Service-Based | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock Unit Performance-Based | 2014 Equity Incentive Plan | November 2013 Awards | December 2013 Awards | ||||||
Restricted Stock Unit Performance-Based | Restricted Stock Unit Performance-Based | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,639,279 | ' | ' |
Shares available for future grant of awards | ' | ' | ' | ' | 2,062,007 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of stock options exercised | $147,000 | $6,000 | $177,000 | $278,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unearned compensation for stock options | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of hypothetical shares | ' | ' | ' | ' | ' | 1 | 1 | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | '3 years | '3 years | ' | ' | ' | ' |
RSUs Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-third | 'one-third | 'one-third | 'one-third | ' | ' | ' | ' |
Probability threshold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% | ' | ' | ' |
Performance-based restricted stock units granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 183,292 | 78,553 |
Unearned compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,300,000 | ' | $6,300,000 | ' | ' | ' | ' | ' |
Weighted-average remaining contractual life of non-vested RSUs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 6 months | ' | ' | ' | ' | ' |
StockBased_Compensation_Stock_
Stock-Based Compensation - Stock Option Activity (Detail) (Stock Options, USD $) | 9 Months Ended |
Jun. 30, 2014 | |
Stock Options | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Number of Shares, Options outstanding, Beginning Balance | 164,652 |
Number of Shares, Granted | ' |
Number of Shares, Exercised | -81,882 |
Number of Shares, Forfeited | ' |
Number of Shares, Expired | -67,770 |
Number of Shares, Options outstanding and exercisable, Ending Balance | 15,000 |
Number of Shares, Vested and expected to vest, Ending Balance | 15,000 |
Weighted-Average Exercise Price, Options outstanding, Beginning Balance | $10.98 |
Weighted-Average Exercise Price, Granted | ' |
Weighted-Average Exercise Price, Exercised | $10 |
Weighted-Average Exercise Price, Forfeited | ' |
Weighted-Average Exercise Price, Expired | $10 |
Weighted-Average Exercise Price, Options outstanding and exercisable, Ending Balance | $20.81 |
Weighted-Average Exercise Price, Vested and expected to vest, Ending Balance | $20.81 |
Weighted-Average Remaining Contractual Life, Options outstanding and exercisable, Ending Balance | '8 months 12 days |
Weighted-Average Remaining Contractual Life, Vested and expected to vest, Ending Balance | '8 months 12 days |
StockBased_Compensation_Grant_
Stock-Based Compensation - Grant Date Fair Values of Awards (Detail) (USD $) | 9 Months Ended |
Jun. 30, 2014 | |
November 2013 Awards | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Expected stock return/ discount rate | 0.65% |
Dividend yield | ' |
Volatility | 40.00% |
Grant date | 30-Nov-13 |
Three-month average share price | $14.60 |
Expected vesting period (in years) | '3 years 1 month 6 days |
Correlation | 0.48 |
Fair value per share | $8.28 |
December 2013 Awards | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Expected stock return/ discount rate | 0.70% |
Dividend yield | ' |
Volatility | 40.00% |
Grant date | 19-Dec-13 |
Three-month average share price | $14.60 |
Expected vesting period (in years) | '3 years |
Correlation | 0.48 |
Fair value per share | $6.70 |
Nasdaq Total Return Index Benchmark Inputs | November 2013 Awards | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Expected stock return/ discount rate | 0.65% |
Dividend yield | ' |
Volatility | 20.00% |
Grant date | 30-Nov-13 |
Three-month average share price | $4,194.45 |
Correlation | 0.48 |
Nasdaq Total Return Index Benchmark Inputs | December 2013 Awards | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Expected stock return/ discount rate | 0.70% |
Dividend yield | ' |
Volatility | 20.00% |
Grant date | 19-Dec-13 |
Three-month average share price | $4,194.45 |
Correlation | 0.48 |
StockBased_Compensation_Restri
Stock-Based Compensation - Restricted Stock Units Activity (Detail) (Restricted Stock, USD $) | 9 Months Ended |
Jun. 30, 2014 | |
Restricted Stock | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Number of Shares, Non-vested shares outstanding, Beginning Balance | 336,374 |
Number of Shares, Granted | 586,133 |
Number of Shares, Vested | -2,445 |
Number of Shares, Canceled | -69,975 |
Number of Shares, Non-vested shares outstanding, Ending Balance | 850,087 |
Weighted-Average Grant-Date Fair Value of non-vested shares outstanding, Beginning Balance | $17.55 |
Weighted-Average grant-date fair value of non-vested RSUs, Granted | $11.44 |
Weighted-Average Grant-Date Fair Value, Vested | $13.88 |
Weighted-Average Grant-Date Fair Value, Canceled | $14.71 |
Weighted-Average Grant-Date Fair Value of non-vested shares outstanding, Ending Balance | $13.58 |
StockBased_Compensation_Restri1
Stock-Based Compensation - Restricted Stock Units Details (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Service-based RSUs | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Number of Shares, Granted | 1,800 | 126,450 | 324,288 | 332,261 |
Performance-based RSUs | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Number of Shares, Granted | ' | 24,525 | 261,845 | 96,556 |
Restricted Stock Units RSU | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Compensation cost recognized | 972 | 8,656 | 2,547 | 10,642 |
Weighted-average grant-date fair value of non-vested RSUs granted | 11.98 | 15.03 | 11.44 | 17.07 |
Weighted-average grant-date fair value of RSUs vested | 14.64 | 19.36 | 13.88 | 20.42 |
Aggregate intrinsic value of RSUs vested | 8 | 5,583 | 33 | 8,094 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Compensation Expense (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total compensation cost | $972 | $10,461 | $2,547 | $13,009 |
Cost of sales | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total compensation cost | 71 | 78 | 188 | 344 |
Research and development | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total compensation cost | 89 | 103 | 270 | 409 |
Sales and marketing | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total compensation cost | 108 | 130 | 360 | 522 |
General and administrative | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total compensation cost | 704 | 568 | 1,729 | 2,152 |
Stock-based compensation resulting from change in control | ' | ' | ' | ' |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total compensation cost | ' | $9,582 | ' | $9,582 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2014 | Sep. 30, 2013 |
Income Taxes Disclosure [Line Items] | ' | ' | ' |
Liability for income taxes associated with uncertain tax positions, Gross | ' | $18,250 | $15,425 |
Liability for income taxes associated with uncertain tax positions, Net | ' | 13,054 | 10,517 |
Income tax after evaluation, additional liability | ' | 2,515 | ' |
Valuation allowance | 5,001 | ' | ' |
Additional taxable income | ' | $32,363 | ' |
Income tax examination number of years under examination | ' | '2 years | ' |
Minimum | ' | ' | ' |
Income Taxes Disclosure [Line Items] | ' | ' | ' |
Income tax, year under examination | ' | '2007 | ' |
Maximum | ' | ' | ' |
Income Taxes Disclosure [Line Items] | ' | ' | ' |
Income tax, year under examination | ' | '2010 | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - The Aggregate Notional Amount of Outstanding Foreign Currency Forward Contracts (Detail) | Jun. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | Foreign Currency Amount | Notional Contract Value in USD |
CNY | USD ($) | |
Foreign currency non-hedge derivatives: | ' | ' |
RMB Buy | 61,227 | $10,000 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Additional Information (Detail) (Notional Contract Value in USD, Foreign Currency Amount, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Notional Contract Value in USD | Foreign Currency Amount | ' | ' | ' | ' |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' |
Net losses due to changes in fair value of derivative financial instruments | $201 | $530 | $71 | $480 |
Impairment_and_Restructuring_S
Impairment and Restructuring - Summary of Impairment and Restructuring Charges (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring Cost And Reserve [Line Items] | ' | ' | ' | ' |
Asset impairments | $6,890 | ' | $18,439 | $7,537 |
One-time termination benefits | 972 | ' | 9,636 | ' |
Other costs | 499 | ' | 5,084 | ' |
Impairment and restructuring | $8,361 | $7,537 | $33,159 | $7,537 |
Impairment_and_Restructuring_A
Impairment and Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring Cost And Reserve [Line Items] | ' | ' | ' |
Impairment charges of asset | $6,890 | $18,439 | $7,537 |
Pre-tax restructuring charges | 1,471 | 14,720 | ' |
One-time termination benefits | 972 | 9,636 | ' |
Other restructuring costs | 899 | 4,281 | ' |
Other restructuring costs non-cash | ' | 198 | ' |
Contract termination cost | -400 | 803 | ' |
Land use rights and buildings | ' | ' | ' |
Restructuring Cost And Reserve [Line Items] | ' | ' | ' |
Impairment charges of asset | 719 | 9,860 | ' |
Machinery and equipment | ' | ' | ' |
Restructuring Cost And Reserve [Line Items] | ' | ' | ' |
Impairment charges of asset | 6,100 | 8,416 | ' |
Other property, plant and equipment | ' | ' | ' |
Restructuring Cost And Reserve [Line Items] | ' | ' | ' |
Impairment charges of asset | 71 | 163 | ' |
Minimum | ' | ' | ' |
Restructuring Cost And Reserve [Line Items] | ' | ' | ' |
Expected restructuring charges | 40,000 | ' | ' |
Maximum | ' | ' | ' |
Restructuring Cost And Reserve [Line Items] | ' | ' | ' |
Expected restructuring charges | $60,000 | ' | ' |
Impairment_and_Restructuring_A1
Impairment and Restructuring - Activity of Restructuring Reserve (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Restructuring Cost And Reserve [Line Items] | ' |
Accrued at September 30, 2013 | ' |
Restructuring additions | 14,522 |
Adjustment/foreign exchange effect | 92 |
Amount paid | -9,206 |
Accrued at June 30, 2014 | 5,408 |
One-Time Termination Benefits | ' |
Restructuring Cost And Reserve [Line Items] | ' |
Accrued at September 30, 2013 | ' |
Restructuring additions | 9,636 |
Adjustment/foreign exchange effect | 92 |
Amount paid | -8,370 |
Accrued at June 30, 2014 | 1,358 |
Contract Termination | ' |
Restructuring Cost And Reserve [Line Items] | ' |
Accrued at September 30, 2013 | ' |
Restructuring additions | 803 |
Amount paid | -797 |
Accrued at June 30, 2014 | 6 |
Other Restructuring | ' |
Restructuring Cost And Reserve [Line Items] | ' |
Accrued at September 30, 2013 | ' |
Restructuring additions | 4,083 |
Amount paid | -39 |
Accrued at June 30, 2014 | $4,044 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Aug. 06, 2014 |
Line Of Credit Facility [Line Items] | ' |
Credit facility period | '3 years |
Minimum | Base Rate | ' |
Line Of Credit Facility [Line Items] | ' |
Basis points | 75.00% |
Minimum | LIBOR | ' |
Line Of Credit Facility [Line Items] | ' |
Basis points | 125.00% |
Maximum | Base Rate | ' |
Line Of Credit Facility [Line Items] | ' |
Basis points | 275.00% |
Maximum | LIBOR | ' |
Line Of Credit Facility [Line Items] | ' |
Basis points | 275.00% |
Bank of America, N.A | ' |
Line Of Credit Facility [Line Items] | ' |
Borrowing capacity under Line of Credit Agreement | 30,000 |