Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Sep. 30, 2014 | Nov. 04, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2015 | ' |
Entity Registrant Name | 'PERCEPTRON INC/MI | ' |
Entity Central Index Key | '0000887226 | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 9,212,481 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $24,884 | $23,070 |
Short-term investments | 9,508 | 10,822 |
Receivables: | ' | ' |
Billed receivables, net of allowance for doubtful accounts of $137 and $146, respectively | 11,198 | 19,185 |
Other receivables | 357 | 276 |
Inventories, net of reserves of $1,068 and $1,185, respectively | 8,279 | 7,049 |
Deferred taxes | 1,687 | 1,687 |
Other current assets | 1,680 | 1,651 |
Total current assets | 57,593 | 63,740 |
Property and Equipment | ' | ' |
Building and land | 6,417 | 6,438 |
Machinery and equipment | 13,885 | 13,916 |
Furniture and fixtures | 1,135 | 1,156 |
Property, Plant and Equipment, Total | 21,437 | 21,510 |
Less - Accumulated depreciation and amortization | -15,866 | -15,970 |
Net property and equipment | 5,571 | 5,540 |
Long-term Investments | 777 | 725 |
Other Long-Term Assets | 510 | ' |
Deferred Tax Asset | 10,796 | 10,061 |
Total Assets | 75,247 | 80,066 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ' | ' |
Accounts payable | 2,539 | 2,081 |
Accrued liabilities and expenses | 3,314 | 4,287 |
Accrued compensation | 1,513 | 1,630 |
Income taxes payable | 1,087 | 1,717 |
Deferred revenue | 6,763 | 7,571 |
Total current liabilities | 15,216 | 17,286 |
Shareholders' Equity | ' | ' |
Preferred stock - no par value, authorized 1,000 shares, issued none | ' | ' |
Common stock, $0.01 par value, authorized 19,000 shares, issued and outstanding 9,152 and 9,149, respectively | 92 | 91 |
Accumulated other comprehensive income (loss) | -318 | 573 |
Additional paid-in capital | 43,781 | 43,600 |
Retained earnings | 16,476 | 18,516 |
Total shareholders’ equity | 60,031 | 62,780 |
Total Liabilities and Shareholders’ Equity | $75,247 | $80,066 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ' | ' |
Billed receivables, allowance for doubtful accounts | $137 | $146 |
Inventory, reserves | $1,068 | $1,185 |
Preferred stock, par value | ' | ' |
Preferred stock, authorized | 1,000,000 | 1,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized | 19,000,000 | 19,000,000 |
Common stock, issued | 9,152,000 | 9,149,000 |
Common stock, outstanding | 9,152,000 | 9,149,000 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Consolidated Statements Of Income [Abstract] | ' | ' |
Net Sales | $11,217 | $12,372 |
Cost of Sales | 8,110 | 8,085 |
Gross Profit | 3,107 | 4,287 |
Operating Expenses | ' | ' |
Selling, general and administrative | 4,114 | 3,476 |
Engineering, research and development | 1,701 | 1,654 |
Total operating expenses | 5,815 | 5,130 |
Operating Income (Loss) | -2,708 | -843 |
Other Income and (Expenses) | ' | ' |
Interest income, net | 78 | 12 |
Foreign currency gain (loss) | -554 | -3 |
Other income (expense) | 65 | -1 |
Total other income (expense) | -411 | 8 |
Income (Loss) from Continuing Operations Before Income Taxes | -3,119 | -835 |
Income Tax Benefit (Expense) | 1,079 | 247 |
Net Income (Loss) | ($2,040) | ($588) |
Earnings (Loss) Per Common Share | ' | ' |
Basic | ($0.22) | ($0.07) |
Diluted | ($0.22) | ($0.07) |
Weighted Average Common Shares Outstanding | ' | ' |
Basic | 9,152 | 8,682 |
Diluted | 9,152 | 8,682 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Comprehensive Income Statement [Abstract] | ' | ' |
Net Income (Loss) | ($2,040) | ($588) |
Other Comprehensive Income (Loss): | ' | ' |
Foreign currency translation adjustments | -891 | 568 |
Comprehensive Income (Loss) | ($2,931) | ($20) |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flow (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flows from Operating Activities | ' | ' |
Net income (loss) | ($2,040) | ($588) |
Adjustments to reconcile net income (loss) to net cash provided from (used for) operating activities: | ' | ' |
Depreciation and amortization | 193 | 172 |
Stock compensation expense | 150 | 132 |
Deferred income taxes | -840 | -192 |
Disposal of assets and other | 487 | -123 |
Allowance for doubtful accounts | -8 | -59 |
Changes in assets and liabilities | ' | ' |
Receivables, net | 6,081 | 8,978 |
Inventories | -1,429 | -522 |
Accounts payable | 2,212 | -1,166 |
Other current assets and liabilities | -2,076 | -2,385 |
Net cash provided from operating activities | 2,730 | 4,247 |
Cash Flows from Financing Activities | ' | ' |
Proceeds from stock plans | 32 | 1,547 |
Net cash provided from (used for) financing activities | 32 | 1,547 |
Cash Flows from Investing Activities | ' | ' |
Purchases of short-term investments | -2,614 | -4,642 |
Sales of short-term investments | 3,520 | 7,080 |
Capital expenditures | -255 | -246 |
Other long-term assets | -510 | ' |
Net cash provided from investing activities | 141 | 2,192 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | -1,089 | 298 |
Net Increase in Cash and Cash Equivalents | 1,814 | 8,284 |
Cash and Cash Equivalents, July 1 | 23,070 | 13,364 |
Cash and Cash Equivalents, September 30 | $24,884 | $21,648 |
Basis_Of_Presentation
Basis Of Presentation | 3 Months Ended |
Sep. 30, 2014 | |
Basis Of Presentation [Abstract] | ' |
Basis Of Presentation | ' |
1.Basis of Presentation | |
The accompanying Consolidated Financial Statements should be read in conjunction with the Company’s 2014 Annual Report on Form 10-K. In the opinion of management, the unaudited information furnished herein reflects all adjustments necessary for a fair presentation of the financial statements for the periods presented. The results of operations for any interim period are not necessarily indicative of the results of operations for a full year. | |
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements [Abstract] | ' |
New Accounting Pronouncements | ' |
2.New Accounting Pronouncements | |
In March 2013, the Financial Accounting Standards Board, (“FASB”), issued Accounting Standards Update No. 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets with a Foreign Entity or an Investment in a Foreign Entity (ASU 2013-05). This new guidance requires that the parent release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. ASU 2013-05 was effective for the Company beginning July 1, 2014 and did not have a material impact on the Company’s financial statements. | |
In April 2014, the FASB issued Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08), which provides guidance regarding the definition of a discontinued operation and the required disclosures. The new guidance defines a discontinued operation as a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. A strategic shift could include a disposal of (1) a major geographical area of operations, (2) a major line of business, (3) a major equity method investment, or (4) other major parts of an entity. In addition, having significant continuing involvement with a component after a disposal or failing to eliminate the operations or cash flows of a disposed component from an entity’s ongoing operations will no longer preclude presentation as a discontinued operation. There will be new disclosures required related to discontinued operations and to disposals of individually significant components that do not qualify as discontinued operations. ASU 2014-08 is effective for the Company beginning July 1, 2015 and applies prospectively to new disposals of components and new classifications as held for sale and is not expected to have a significant impact on the presentation of the Company’s financial statements or disclosures. | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard will be effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the applications of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in fiscal year 2018. | |
In August 2014, the FASB issued Accounting Standards Update No. 2015-15, Presentation of Financial Statements – Going Concern, (ASU 2014-15), requiring management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements. The entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The disclosure requires identifying the principal conditions and events contributing to the “doubt” to continue as a going concern, as well as management’s evaluations and plans to try to alleviate these uncertainties. ASU 2014-15 is effective for the Company beginning July 1, 2015 and is not expected to have a significant impact on the Company’s disclosures. | |
Revenue_Recognition
Revenue Recognition | 3 Months Ended |
Sep. 30, 2014 | |
Revenue Recognition [Abstract] | ' |
Revenue Recognition | ' |
3.Revenue Recognition | |
Revenue related to products and services is recognized upon shipment when title and risk of loss has passed to the customer or upon completion of the service, there is persuasive evidence of an arrangement, the sales price is fixed or determinable, collection of the related receivable is reasonably assured and customer acceptance criteria, if any, have been successfully demonstrated. | |
The Company also has multiple element arrangements in its Measurement Solutions product line that may include elements such as, equipment, installation, labor support and/or training. Each element has value on a stand-alone basis and the delivered elements do not include general rights of return. Accordingly, each element is considered a separate unit of accounting. When available, the Company allocates arrangement consideration to each element in a multiple element arrangement based upon vendor specific objective evidence (“VSOE”) of fair value of the respective elements. When VSOE cannot be established, the Company attempts to establish the selling price of each element based on relevant third-party evidence. Because the Company’s products contain a significant level of proprietary technology, customization or differentiation such that comparable pricing of products with similar functionality cannot be obtained, the Company uses, in these cases, its best estimate of selling price (“BESP”). The Company determines the BESP for a product or service by considering multiple factors including, but not limited to, pricing practices, internal costs, geographies and gross margin. | |
For multiple element arrangements, the Company defers from revenue recognition the greater of the relative fair value of any undelivered elements of the contract or the portion of the sales price of the contract that is not payable until the undelivered elements are completed. As part of this evaluation, the Company limits the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery of products or services, including a consideration of payment terms that delay payment until those future deliveries are completed. | |
Some multiple element arrangements contain installment payment terms with a final payment (“final buy-off”) due upon the Company’s completion of all elements in the arrangement or when the customer’s final acceptance is received. The Company recognizes revenue for each completed element of a contract when it is both earned and realizable. A provision for final customer acceptance generally does not preclude revenue recognition for the delivered equipment element because the Company rigorously tests equipment prior to shipment to ensure it will function in the customer’s environment. The final acceptance amount is assigned to specific element(s) identified in the contract, or if not specified in the contract, to the last element or elements to be delivered that represent an amount at least equal to the final payment amount. | |
The Company’s Measurement Solutions products are designed and configured to meet each customer’s specific requirements. Timing for the delivery of each element in the arrangement is primarily determined by the customer’s requirements and the number of elements ordered. Delivery of all of the multiple elements in an order will typically occur over a three to 15 month period after the order is received. The Company does not have price protection agreements or requirements to buy back inventory. The Company’s history demonstrates that sales returns have been insignificant. | |
Financial_Instruments
Financial Instruments | 3 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Financial Instruments [Abstract] | ' | |||||||||||
Financial Instruments | ' | |||||||||||
4.Financial Instruments | ||||||||||||
For a discussion on the Company’s fair value measurement policies for Financial Instruments, refer to Note 1 to the Consolidated Financial Statements, “Summary of Significant Accounting Policies – Financial Instruments”, of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014. | ||||||||||||
The Company has not changed its valuation techniques in measuring the fair value of any financial assets and liabilities during the period. | ||||||||||||
The following table presents the Company’s investments at September 30, 2014 and June 30, 2014 that are measured and recorded at fair value on a recurring basis consistent with the fair value hierarchy provisions of ASC 820, “Fair Value Measurements and Disclosures” (in thousands). The fair value of the Company’s investments approximates their cost basis. | ||||||||||||
Description | 30-Sep-14 | Level 1 | Level 2 | Level 3 | ||||||||
Mutual funds | $ | 167 | $ | 167 | $ | - | $ | - | ||||
Fixed deposits and certificates of deposit | 8,516 | - | 8,516 | - | ||||||||
Variable rate demand notes | 825 | - | 825 | - | ||||||||
Repurchase agreements | - | - | - | - | ||||||||
Total | $ | 9,508 | $ | 167 | $ | 9,341 | $ | - | ||||
Description | 30-Jun-14 | Level 1 | Level 2 | Level 3 | ||||||||
Mutual funds | $ | 96 | $ | 96 | $ | - | $ | - | ||||
Fixed deposits and certificates of deposit | 9,165 | - | 9,165 | - | ||||||||
Variable rate demand notes | 1,325 | - | 1,325 | - | ||||||||
Repurchase agreements | 236 | - | 236 | - | ||||||||
Total | $ | 10,822 | $ | 96 | $ | 10,726 | $ | - | ||||
Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. | ||||||||||||
Inventory
Inventory | 3 Months Ended | |||||
Sep. 30, 2014 | ||||||
Inventory [Abstract] | ' | |||||
Inventory | ' | |||||
5.Inventory | ||||||
Inventory is stated at the lower of cost or market. The cost of inventory is determined by the first-in, first-out (“FIFO”) method. The Company provides a reserve for obsolescence to recognize inventory impairment for the effects of engineering change orders, age and use of inventory that affect the value of the inventory. The reserve for obsolescence creates a new cost basis for the impaired inventory. When inventory that has previously been impaired is sold or disposed of, the related obsolescence reserve is reduced resulting in the reduced cost basis being reflected in cost of goods sold. A detailed review of the inventory is performed annually with quarterly updates for known changes that have occurred since the annual review. Inventory, net of reserves of $1,068,000 and $1,185,000 at September 30, 2014 and June 30, 2014, respectively, is comprised of the following (in thousands): | ||||||
September 30, | June 30, | |||||
Inventory | 2014 | 2014 | ||||
Component parts | $ | 3,112 | $ | 2,813 | ||
Work in process | 720 | 562 | ||||
Finished goods | 4,447 | 3,674 | ||||
Total | $ | 8,279 | $ | 7,049 | ||
ShortTerm_And_LongTerm_Investm
Short-Term And Long-Term Investments | 3 Months Ended |
Sep. 30, 2014 | |
Short-Term And Long-Term Investments [Abstract] | ' |
Short-Term And Long-Term Investments | ' |
6.Short-Term and Long-Term Investments | |
The Company accounts for its investments in accordance with ASC 320, “Investments – Debt and Equity Securities.” Investments with a maturity of greater than three months to one year are classified as short-term investments. Investments with maturities beyond one year may be classified as short-term if the Company reasonably expects the investment to be realized in cash or sold or consumed during the normal operating cycle of the business. Investments available for sale are recorded at market value using the specific identification method. Investments expected to be held to maturity or until market conditions improve are measured at amortized cost in the statement of financial position if it is the Company’s intent and ability to hold those securities long-term. Each balance sheet date, the Company evaluates its investments for possible other-than-temporary impairment which involves significant judgment. In making this judgment, management reviews factors such as the length of time and extent to which fair value has been below the cost basis, the anticipated recovery period, the financial condition of the issuer, the credit rating of the instrument and the Company’s ability and intent to hold the investment for a period of time which may be sufficient for recovery of the cost basis. Any unrealized gains and losses on securities are reported as other comprehensive income as a separate component of shareholders’ equity until realized or until a decline in fair value is determined to be other than temporary. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded in the income statement. If market, industry, and/or investee conditions deteriorate, future impairments may be incurred. | |
At September 30, 2014, the Company had $9.5 million of short-term investments that primarily represented $8.5 million in time deposits or certificates of deposit and $825,000 in variable rate demand notes. Included in short-term investments is restricted cash that serves as collateral for bank guarantees that provide financial assurance that the Company will fulfill certain customer obligations in China. The cash is restricted as to withdrawal or use while the related bank guarantees are outstanding. Interest is earned on the restricted cash and recorded as interest income. At September 30, 2014 and June 30, 2014, restricted cash in short-term investments was $426,000 and $520,000, respectively. | |
At September 30, 2014, the Company held a long-term investment in preferred stock that is not registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The preferred stock investment is currently recorded at $725,000 after consideration of impairment charges recorded in fiscal years 2008 and 2009. The Company estimated that the fair market value of this investment at September 30, 2014 exceeded $725,000 based on observable market activity and an internal valuation model which included the use of a discounted cash flow model. The fair market analysis considered the following key inputs, (i) the underlying structure of the security; (ii) the present value of the future principal, discounted at rates considered to reflect current market conditions; and (iii) the time horizon that the market value of the security could return to its cost and be sold. Under ASC 820, “Fair Value Measurements”, such valuation assumptions are defined as Level 3 inputs. The Company also held a long-term time deposit for $52,000. This time deposit serves as collateral for a bank guarantee that provides financial assurance that the Company will fulfill certain customer obligations in China. The cash is restricted as to withdrawal or use while the related bank guarantee is outstanding. Interest is earned on the restricted cash and recorded as interest income. | |
Credit_Facilities
Credit Facilities | 3 Months Ended |
Sep. 30, 2014 | |
Credit Facilities [Abstract] | ' |
Credit Facilities | ' |
7.Credit Facilities | |
The Company had no debt outstanding at September 30, 2014 and June 30, 2014. | |
The Company has a $6.0 million secured credit agreement with Comerica Bank (“Credit Agreement”) which expires on November 2, 2015. Proceeds under the Credit Agreement may be used for working capital and capital expenditures. Security for the Credit Agreement is substantially all non-real estate assets of the Company held in the United States. Borrowings are designated as a Libor-based Advance or as a Prime-based Advance if the Libor-based Advance is not available. Interest on Libor-based Advances is calculated at 2.35% above the Libor Rate offered at the time for the period chosen, and is payable on the last day of the applicable period. Quarterly, the Company pays a commitment fee of 0.15% per annum on the average daily unused portion of the revolving credit commitment. The Credit Agreement requires the Company to maintain a minimum Tangible Net Worth of not less than $33.2 million. The Company was in compliance with this financial covenant at September 30, 2014. The Company is permitted to declare dividends of up to $2.5 million in any fiscal year provided the Company maintains the required minimum Tangible Net Worth. The Company is also required to have no advances outstanding under the Credit Agreement for 30 days (which need not be consecutive) during each calendar year. | |
At September 30, 2014, the Company's German subsidiary (“GmbH”) had an unsecured credit facility totaling 350,000 Euros (equivalent to approximately $444,000). The facility allows 100,000 Euros to be used to finance working capital needs and equipment purchases or capital leases. The facility allows up to 250,000 Euros to be used for providing bank guarantees. Any borrowings for working capital needs will bear interest at 7.15%. Any outstanding bank guarantees will bear interest at 2.0%. The GmbH credit facility is cancelable at any time by either GmbH or the bank and any amounts then outstanding would become immediately due and payable. At September 30, and June 30, 2014, GmbH had no borrowings or bank guarantees outstanding. | |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | |||||
Sep. 30, 2014 | ||||||
Stock-Based Compensation [Abstract] | ' | |||||
Stock-Based Compensation | ' | |||||
8.Stock-Based Compensation | ||||||
The Company maintains a 2004 Stock Incentive Plan (“2004 Plan”) covering substantially all company employees, non-employee directors and certain other key persons. Options previously granted under a 1998 Global Team Member Stock Option Plan (“1998 Plan”) and a Directors Stock Option Plan (“Directors Plan”) will continue to be maintained until all options are exercised, cancelled or expire. No further grants are permitted to be made under the terms of the 1998 and Directors Plans. The 2004 and Directors Plans are administered by a committee of the Board of Directors, the Management Development, Compensation and Stock Option Committee. The 1998 Plan is administered by the President of the Company. | ||||||
Awards under the 2004 Plan may be in the form of stock options, stock appreciation rights, restricted stock or restricted stock units, performance share awards, director stock purchase rights and deferred stock units; or any combination thereof. The terms of the awards will be determined by the Management Development, Compensation and Stock Option Committee, except as otherwise specified in the 2004 Plan. | ||||||
Stock Options | ||||||
Options outstanding under the 2004 Plan generally become exercisable at 25% per year beginning one year after the date of grant and expire ten years after the date of grant. All options outstanding under the 1998 and Directors Plans are vested and expire ten years from the date of grant. Option prices from options granted under these plans must not be less than fair market value of the Company’s stock on the date of grant. The Company uses the Black-Scholes model for determining stock option valuations. The Black-Scholes model requires subjective assumptions, including future stock price volatility and expected time to exercise, which affect the calculated values. The expected term of option exercises is derived from historical data regarding employee exercises and post-vesting employment termination behavior. The risk-free rate of return is based on published U.S. Treasury rates in effect for the corresponding expected term. The expected volatility is based on historical volatility of the Company’s stock price. These factors could change in the future, which would affect the stock-based compensation expense in future periods. | ||||||
The Company recognized operating expense for non-cash stock-based compensation costs related to stock options in the amount of $85,000 and $84,000 in the three months ended September 30, 2014 and 2013, respectively. As of September 30, 2014, the total remaining unrecognized compensation cost related to non-vested stock options amounted to $630,000. The Company expects to recognize this cost over a weighted average vesting period of 2.77 years. | ||||||
The estimated fair value as of the date options were granted during the periods presented, using the Black-Scholes option-pricing model, is shown in the table below. | ||||||
Three Months Ended | Three Months Ended | |||||
9/30/14 | 9/30/13 | |||||
Weighted average estimated fair value per | ||||||
share of options granted during the period | $ | 4.52 | $ | 3.11 | ||
Assumptions: | ||||||
Dividend yield | $ | 1.20 | $ | 2.10 | ||
Common stock price volatility | 46.85% | 38.88% | ||||
Risk free rate of return | 1.84% | 1.67% | ||||
Expected option term (in years) | 6 | 5 | ||||
The Company received approximately $2,000 and $1,469,000 in cash from option exercises under all share-based payment arrangements for the three months ended September 30, 2014 and 2013, respectively. | ||||||
Restricted Shares | ||||||
Restricted stock awards under the 2004 Plan are earned based on an individual’s achievement of performance goals during the initial fiscal year with a subsequent one year service vesting period. The grant date fair value associated with the restricted stock is calculated in accordance with ASC 718 “Compensation – Stock Compensation”. Compensation expense related to restricted stock awards is based on the closing price of the Company’s Common Stock on the grant date authorized by the Company’s Board of Directors, multiplied by the number of restricted stock awards expected to be issued and vested and is amortized over the combined performance and service periods. The non-cash stock based compensation expense recorded for restricted stock awards for the three months ended September 30, 2014 and 2013 was $65,000 and $13,500, respectively. As of September 30, 2014, the total remaining unrecognized compensation cost related to restricted stock awards amounted to $198,000. | ||||||
A summary of the status of restricted shares issued at September 30, 2014 is presented in the table below. | ||||||
Weighted Average | ||||||
Nonvested | Grant Date | |||||
Shares | Fair Value | |||||
Nonvested at June 30, 2014 | 17,950 | $ | 5.39 | |||
Granted | - | - | ||||
Vested | -17,950 | 5.39 | ||||
Forfeited or expired | - | - | ||||
Nonvested at September 30, 2014 | - | $ | - | |||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended |
Sep. 30, 2014 | |
Earnings (Loss) Per Common Share | ' |
Earnings Per Share | ' |
9.Earnings Per Share | |
Basic earnings per share (“EPS”) is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Other obligations, such as stock options, are considered to be potentially dilutive common shares. Diluted EPS assumes the issuance of potential dilutive common shares outstanding during the period and adjusts for any changes in income and the repurchase of common shares that would have occurred from the assumed issuance, unless such effect is anti-dilutive. The calculation of diluted shares also takes into effect the average unrecognized non-cash stock-based compensation expense and additional adjustments for tax benefits related to non-cash stock-based compensation expense. | |
Options to purchase 269,783 and 163,359 shares of common stock outstanding in the three months ended September 30, 2014 and 2013, respectively, were not included in the computation of diluted EPS because the effect would have been anti-dilutive. | |
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended |
Sep. 30, 2014 | |
Commitments And Contingencies [Abstract] | ' |
Commitments And Contingencies | ' |
10.Commitments and Contingencies | |
The Company may, from time to time, be subject to litigation and other claims in the ordinary course of its business. The Company accrues for estimated losses arising from such litigation or claims if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. To estimate whether a loss contingency should be accrued by a charge to income, the Company evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of the loss. Since the outcome of litigation and claims is subject to significant uncertainty, changes in the factors used in the Company’s evaluation could materially impact the Company’s financial position or results of operations. | |
Management is currently unaware of any significant pending litigation affecting the Company. | |
As previously reported in the Company’s Annual Report on Form 10-K for fiscal year 2014, on July 19, 2013, a civil suit was filed against the Company by 3CEMS, a Cayman Islands and People’s Republic of China corporation, with the U.S. District Court for the Eastern District of Michigan (the “3CEMS Matter”). The suit alleged that the Company breached its contractual obligations by failing to pay for component parts to be used to manufacture optical video scopes for the Company’s discontinued Commercial Products Business Unit. 3CEMS alleged that it purchased the component parts in advance of the receipt of orders from the Company based upon instructions they claimed to have received from the Company. The suit alleged damages of not less than $4.5 million. Effective December 6, 2013, a Tolling Agreement (the “Tolling Agreement”) was entered into between the Company and 3CEMS. The Tolling Agreement provided that 3CEMS would dismiss the suit against the Company without prejudice, permitting the parties to continue to discuss the dispute outside of litigation. On January 13, 2014, based upon 3CEMS’ voluntary dismissal, the Court entered an order of dismissal of the suit against the Company without prejudice. The Company has agreed that should 3CEMS subsequently seek to assert claims against the Company related to such suit the Company will not oppose the claims based on the statute of limitations or any other time-based defense, based upon the passage of time from July 19, 2013 to the date the Tolling Agreement is terminated. The Tolling Agreement terminates on December 31, 2014 or, if earlier upon 20 days’ notice by either party. | |
Because of the inherent uncertainty of litigation and claims such as the 3CEMS Matter, the Company is unable to reasonably estimate a possible loss or range of loss relating to the 3CEMS Matter. | |
As part of routine evaluation procedures, the Company identified a potential concern regarding the employment status and withholding for several individuals in one of the Company’s foreign jurisdictions. The Company has begun a review of the matter, and expects resolution in the next few months. At this time, because the Company has not completed its evaluation, the Company is not able to determine an amount or range of its financial liability relating to this matter. The Company does not expect that the resolution of this matter will have a detrimental effect on the conduct of the Company’s business in this foreign jurisdiction. | |
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Financial Instruments [Abstract] | ' | |||||||||||
Fair Value, Assets Measured On A Recurring Basis | ' | |||||||||||
Description | 30-Sep-14 | Level 1 | Level 2 | Level 3 | ||||||||
Mutual funds | $ | 167 | $ | 167 | $ | - | $ | - | ||||
Fixed deposits and certificates of deposit | 8,516 | - | 8,516 | - | ||||||||
Variable rate demand notes | 825 | - | 825 | - | ||||||||
Repurchase agreements | - | - | - | - | ||||||||
Total | $ | 9,508 | $ | 167 | $ | 9,341 | $ | - | ||||
Description | 30-Jun-14 | Level 1 | Level 2 | Level 3 | ||||||||
Mutual funds | $ | 96 | $ | 96 | $ | - | $ | - | ||||
Fixed deposits and certificates of deposit | 9,165 | - | 9,165 | - | ||||||||
Variable rate demand notes | 1,325 | - | 1,325 | - | ||||||||
Repurchase agreements | 236 | - | 236 | - | ||||||||
Total | $ | 10,822 | $ | 96 | $ | 10,726 | $ | - | ||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | |||||
Sep. 30, 2014 | ||||||
Inventory [Abstract] | ' | |||||
Schedule of Components of Inventory | ' | |||||
September 30, | June 30, | |||||
Inventory | 2014 | 2014 | ||||
Component parts | $ | 3,112 | $ | 2,813 | ||
Work in process | 720 | 562 | ||||
Finished goods | 4,447 | 3,674 | ||||
Total | $ | 8,279 | $ | 7,049 | ||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | |||||
Sep. 30, 2014 | ||||||
Stock-Based Compensation [Abstract] | ' | |||||
Schedule Of Stock Option Valuation Assumptions | ' | |||||
Three Months Ended | Three Months Ended | |||||
9/30/14 | 9/30/13 | |||||
Weighted average estimated fair value per | ||||||
share of options granted during the period | $ | 4.52 | $ | 3.11 | ||
Assumptions: | ||||||
Dividend yield | $ | 1.20 | $ | 2.10 | ||
Common stock price volatility | 46.85% | 38.88% | ||||
Risk free rate of return | 1.84% | 1.67% | ||||
Expected option term (in years) | 6 | 5 | ||||
Summary of Restricted Shares Issued | ' | |||||
Weighted Average | ||||||
Nonvested | Grant Date | |||||
Shares | Fair Value | |||||
Nonvested at June 30, 2014 | 17,950 | $ | 5.39 | |||
Granted | - | - | ||||
Vested | -17,950 | 5.39 | ||||
Forfeited or expired | - | - | ||||
Nonvested at September 30, 2014 | - | $ | - | |||
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | $9,508 | $10,822 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | 167 | 96 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | 9,341 | 10,726 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | ' | ' |
Mutual Funds [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | 167 | 96 |
Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | 167 | 96 |
Mutual Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | ' | ' |
Fixed Deposits And Certificates Of Deposit [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | 8,516 | 9,165 |
Fixed Deposits And Certificates Of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | 8,516 | 9,165 |
Fixed Deposits And Certificates Of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | ' | ' |
Variable Rate Demand Obligation [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | 825 | 1,325 |
Variable Rate Demand Obligation [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | 825 | 1,325 |
Variable Rate Demand Obligation [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | ' | ' |
Repurchase Agreements [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | ' | 236 |
Repurchase Agreements [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | ' | 236 |
Repurchase Agreements [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-term Investments | ' | ' |
Inventory_Details
Inventory (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Inventory [Abstract] | ' | ' |
Inventory, Component parts, net | $3,112 | $2,813 |
Inventory, Work in Process, net | 720 | 562 |
Inventory, Finished Goods, net | 4,447 | 3,674 |
Inventory, Net, Total | 8,279 | 7,049 |
Inventory, reserves | $1,068 | $1,185 |
ShortTerm_And_LongTerm_Investm1
Short-Term And Long-Term Investments (Narrative) (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Short-term Investments | $9,508 | $10,822 |
Restricted Cash and Cash Equivalents | 426 | 520 |
Long-term Investments | 777 | 725 |
Interest-bearing Deposits in Banks and Other Financial Institutions | 8,500 | ' |
Other Long-term Investments | 52 | ' |
Fixed Deposits And Certificates Of Deposit [Member] | ' | ' |
Short-term Investments | 8,516 | 9,165 |
Variable Rate Demand Obligation [Member] | ' | ' |
Short-term Investments | 825 | 1,325 |
Repurchase Agreements [Member] | ' | ' |
Short-term Investments | ' | $236 |
Credit_Facilities_Details
Credit Facilities (Details) | 3 Months Ended | 3 Months Ended | ||||
Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
USD ($) | USD ($) | Domestic Line of Credit [Member] | Foreign Line of Credit [Member] | Foreign Line of Credit [Member] | Letter of Credit [Member] | |
USD ($) | USD ($) | EUR (€) | ||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Credit facility, amount outstanding | $0 | $0 | ' | ' | ' | ' |
Amount available under credit facility | ' | ' | 6,000,000 | 444,000 | 350,000 | ' |
Interest on LIBOR-based advances, basis spread | ' | ' | 2.35% | ' | ' | ' |
Commitment percentage fee | ' | ' | 0.15% | ' | ' | ' |
Required period having no outstanding advances | ' | ' | '30 days | ' | ' | ' |
Minimum net worth required for compliance | ' | ' | 33,200,000 | ' | ' | ' |
Line of Credit Facility, Dividend Restrictions Current Fiscal Year | 2,500,000 | ' | ' | ' | ' | ' |
Interest rate on borrowings | ' | ' | ' | 7.15% | 7.15% | 2.00% |
Line of Credit Facility, Capacity Available for Trade Purchases | ' | ' | ' | ' | 100,000 | ' |
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | ' | ' | ' | ' | € 250,000 | ' |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock based compensation expense | $85,000 | $84,000 |
Incremental percentage of options that become exercisable annually | 25.00% | ' |
Cash received from exercise of stock options | 2,000 | 1,469,000 |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Vesting period | '1 year | ' |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Vesting period | '10 years | ' |
Restricted Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock based compensation expense | 65,000 | 13,500 |
Unrecognized compensation cost | 198,000 | ' |
Employee Stock Option [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Unrecognized compensation cost | $630,000 | ' |
Expected weighted average vesting period to recognize compensation | '2 years 9 months 7 days | ' |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule Of Stock Option Valuation Assumptions) (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Stock-Based Compensation [Abstract] | ' | ' |
Weighted Average Estimated Fair Value Per Share of Options Granted During the Period | $4.52 | $3.11 |
Dividend yield | 1.20% | 2.10% |
Common Stock Price Volatility | 46.85% | 38.88% |
Risk Free Rate of Return | 1.84% | 1.67% |
Expected Option Term (in years) | '6 years | '5 years |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary of Restricted Shares Issued) (Details) (Restricted Stock [Member], USD $) | 3 Months Ended |
Sep. 30, 2014 | |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares Nonvested, Beginning Balance | 17,950 |
Shares Granted | ' |
Shares Vested | -17,950 |
Shares Forfeited or expired | ' |
Shares Nonvested, Ending Balance | ' |
Weighted Average Grant Date Fair Value, Nonvested, Beginning Balance | $5.39 |
Weighted Average Grant Date Fair Value, Granted | ' |
Weighted Average Grant Date Fair Value, Vested | $5.39 |
Weighted Average Grant Date Fair Value, Forfeited or expired | ' |
Weighted Average Grant Date Fair Value, Nonvested, Ending Balance | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings (Loss) Per Common Share | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount | 269,783 | 163,359 |
Contingencies_and_Contingencie
Contingencies and Contingencies (Details) (3CEMS [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
3CEMS [Member] | ' |
Loss Contingencies [Line Items] | ' |
Compensatory damages sought from the Company | $4.50 |