Key Technology (KTEC) 10-Q 6 Feb 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Dec. 31, 2014	Jan. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	KEY TECHNOLOGY INC
Entity Central Index Key	906193
Current Fiscal Year End Date	-21
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	31-Dec-14
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE
Entity Common Stock, Shares Outstanding		6,238,730

UNAUDITED_CONDENSED_CONSOLIDAT

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2014	Sep. 30, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$4,778	$9,741
Trade accounts receivable, net of allowance for doubtful accounts of $378 and $415, respectively	11,490	12,557
Inventories:
Raw materials	12,285	10,321
Work-in-process and sub-assemblies	9,096	9,505
Finished goods	6,793	6,847
Total inventories	28,174	26,673
Deferred income taxes	3,717	3,809
Prepaid expenses and other assets	6,097	7,213
Total current assets	54,256	59,993
Property, plant and equipment, net	16,308	16,652
Deferred income taxes	2,000	615
Goodwill	10,871	11,222
Investment in Proditec	1,127	1,127
Intangibles and other assets, net	7,996	8,736
Total	92,558	98,345
Current liabilities:
Accounts payable	6,046	6,073
Accrued payroll liabilities and commissions	4,935	5,893
Customers' deposits	2,721	3,702
Accrued customer support and warranty costs	2,079	2,607
Customer purchase plans	1,506	1,523
Income taxes payable	1	2
Current portion of long-term debt	809	804
Other accrued liabilities	944	1,186
Total current liabilities	19,041	21,790
Long-term debt	4,505	4,733
Deferred income taxes	2,757	3,281
Other long-term liabilities	406	373
Shareholders' equity:
Common stock	31,539	31,414
Warrants	665	665
Retained earnings and other shareholders' equity	33,645	36,089
Total shareholders' equity	65,849	68,168
Total	$92,558	$98,345

UNAUDITED_CONDENSED_CONSOLIDAT1

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2014	Sep. 30, 2014
In Thousands, unless otherwise specified
Current assets
Trade accounts receivable, allowance for doubtful accounts	$378	$415

UNAUDITED_CONDENSED_CONSOLIDAT2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Net sales	$20,091	$22,725
Cost of sales	14,615	16,555
Gross profit	5,476	6,170
Operating expenses:
Sales and marketing	4,073	4,773
Research and development	2,125	2,430
General and administrative	2,102	2,416
Amortization of intangibles	402	437
Total operating expenses	8,702	10,056
Gain on disposition of assets	4	6
Loss from operations	-3,222	-3,880
Other income (expense)	-10	-65
Loss before income taxes	-3,232	-3,945
Income tax benefit	-1,404	-1,339
Net loss	($1,828)	($2,606)
Net loss per share
- basic (in dollars per share)	($0.29)	($0.42)
- diluted (in dollars per share)	($0.29)	($0.42)
Shares used in per share calculations - basic (in shares)	6,285	6,276
Shares used in per share calculations - diluted (in shares)	6,285	6,276

UNAUDITED_CONSOLIDATED_STATEME

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net earnings (loss)	($1,828)	($2,606)
Other comprehensive income (loss):
Foreign currency translation adjustment	-900	373
Unrealized changes in fair value of derivatives	-34	61
Income tax (expense) benefit related to items of comprehensive income (loss)	319	-148
Total comprehensive loss	($2,443)	($2,320)

UNAUDITED_CONDENSED_CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss)	($1,828)	($2,606)
Adjustments to reconcile net loss to net cash used in operating activities:
Gain on disposition of assets	-4	-6
Foreign currency exchange (gain) loss	-18	11
Depreciation and amortization	1,315	1,370
Share based payments	356	388
Excess tax benefits from share based payments	-4	-10
Deferred income taxes	-1,405	628
Deferred rent	4	3
Bad debt expense	-22	48
Changes in assets and liabilities:
Trade accounts receivable	957	5,557
Inventories	-1,853	-3,653
Prepaid expenses and other current assets	1,140	199
Income taxes receivable	-10	-1,988
Accounts payable	20	-799
Accrued payroll liabilities and commissions	-865	-3,944
Customersb deposits	-902	871
Accrued customer support and warranty costs	-490	-631
Income taxes payable	0	-433
Other accrued liabilities	-242	-517
Other	-5	-1
Cash used in operating activities	-3,856	-5,513
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of property	3	7
Purchases of property, plant and equipment	-624	-352
Cash used in investing activities	-621	-345
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on long-term debt	-181	-221
Excess tax benefits from share based payments	4	10
Proceeds from issuance of common stock	15	17
Exchange of shares for statutory withholding	-245	-185
Cash used in financing activities	-407	-379
EFFECT OF EXCHANGE RATE CHANGES ON CASH	-79	10
NET DECREASE IN CASH AND CASH EQUIVALENTS	-4,963	-6,227
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD	9,741	17,601
CASH AND CASH EQUIVALENTS, END OF THE PERIOD	4,778	11,374
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
Cash paid during the period for interest	62	69
Cash paid during the period for income taxes	$5	$451

Recovered_Sheet1

Unaudited condensed consolidated financial statements	3 Months Ended
	Dec. 31, 2014
Unaudited Condensed consolidated financial statements [Abstract]
Unaudited condensed consolidated financial statements	Unaudited condensed consolidated financial statements
	Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted from these unaudited condensed consolidated financial statements.  These unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2014.  The results of operations for the three month period ended December 31, 2014 are not necessarily indicative of the operating results for the full year.
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions.
	In the opinion of management, all adjustments, consisting only of normal recurring accruals, have been made to present fairly the Company's financial position at December 31, 2014 and the results of its operations and its cash flows for the three month periods ended December 31, 2014 and 2013.
	Recent Accounting Pronouncements Not Yet Adopted
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 supersedes nearly all existing revenue recognition guidance under US GAAP. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. We are evaluating our existing revenue recognition policies to determine whether any contracts in the scope of the guidance will be affected by the new requirements. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods therein.

Sharebased_compensation

Share-based compensation	3 Months Ended
	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based compensation	Share-based compensation
	Share-based compensation expense included in the Company's results was as follows (in thousands):
		Three Months Ended
		December 31,
		2014		2013
	Cost of goods sold	$	50	$	44
	Operating expenses	306		344
	Total share-based compensation expense	$	356	$	388
	Share-based compensation expense remaining capitalized in inventory at December 31, 2014 and 2013 was $25,000 and $1,000, respectively.

Earnings_loss_per_share

Earnings (loss) per share	3 Months Ended
	Dec. 31, 2014
Earnings Per Share [Abstract]
Earnings (loss) per share	Earnings (loss) per share
	The calculation of the basic and diluted earnings (loss) per share (“EPS”) is as follows (in thousands, except per-share data):
		Three Months Ended								Three Months Ended
		December 31, 2014								December 31, 2013
		Loss				Shares	Per-Share			Loss			Shares	Per-Share
							Amount							Amount
	Basic EPS:
	Net loss	$	(1,828	)		6,285	$	(0.29	)	$	(2,606	)	6,276	$	(0.42	)
	Effect of dilutive securities:
	Common stock options	—				—				—			—
	Warrants	—				—				—			—
	Diluted EPS:
	Net loss plus assumed conversions	$	(1,828	)		6,285	$	(0.29	)	$	(2,606	)	6,276	$	(0.42	)
	The weighted-average number of diluted shares does not include the potential issuance of common shares which are anti-dilutive.  Common stock equivalent shares for the assumed exercise of warrants are calculated using the treasury stock method. The following potentially issuable common shares at December 31, 2014 and 2013 were not included in the calculation of diluted EPS as they were anti-dilutive:
		Three Months Ended
		December 31,
		2014			2013
	Common shares from:
	Assumed exercise of stock options	10,000			25,000
	Warrants	250,000			250,000
	The options expire in February 2015.  The warrants expire in March 2016.

Income_taxes

Income taxes	3 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income taxes	Income taxes
	The provision (benefit) for income taxes is based on the estimated effective income tax rate for the year.  Changes in the estimated effective income tax rate are accounted for in the period the change in estimate occurs.  During the first quarter of fiscal 2015, the research and development tax credit was renewed for a one-year period retroactive to January 1, 2014. In the first quarter of fiscal 2015, income tax expense was reduced by approximately $305,000 for additional research and development tax credits related to expenditures incurred during fiscal 2014 due to the changes in tax law that were enacted during the quarter to retroactively renew these tax credits. The research and development tax credit expired December 31, 2014.

Derivative_instruments

Derivative instruments	3 Months Ended
	Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative instruments	Derivative instruments
	The Company uses derivative instruments as risk management tools but does not use derivative instruments for trading or speculative purposes.  Derivatives used for interest rate swap hedging purposes are designated and effective as a cash flow hedge of the identified risk exposure related to the Company's variable rate mortgage at the inception of the contract.  A hedge is deemed effective if changes in the fair value of the derivative contract are highly correlated with changes in the underlying hedged item at inception of the hedge and over the life of the hedge contract.  To the extent the interest rate swap is effective, changes in fair value will be recognized in Other Comprehensive Income over the term of the derivative contract.  To the extent the interest rate swap is not effective, changes in fair value will be recognized in earnings.
	At December 31, 2014, the Company had an interest rate swap with a notional amount of $4.4 million that effectively fixes the interest rate on its LIBOR-based variable rate mortgage at 4.27%.  At December 31, 2014, the fair value of the swap agreement recorded as a liability in Other long-term liabilities on the Unaudited Condensed Consolidated Balance Sheet was $237,000.  There were no gains or losses recognized as part of net earnings in the Unaudited Condensed Consolidated Statements of Operations related to the swap agreement during the three months ended December 31, 2014, as the interest rate swap was highly effective as a cash flow hedge.  Consequently, changes in the fair value of the interest rate swap of $(34,000) during the three month period ended December 31, 2014 was recorded as part of Other Comprehensive Income in the Company's Unaudited Condensed Consolidated Statements of Comprehensive Income.  During the three month period ended December 31, 2014, the Company recorded $31,000 as interest expense related to the interest rate swap reflecting actual interest payments and settlements on the interest rate swap.  The interest rate swap matures in January 2024.
	At December 31, 2014, the Company had a one-month undesignated forward exchange contract for €2.8 million ($3.4 million).  Forward exchange contracts are used to manage the Company's foreign currency exchange risk related to its ongoing operations.  Net foreign currency gains of $18,000 were recorded for forward exchange contracts in the three month period ended December 31, 2014 as a component of foreign currency gains or losses in Other income (expense) on the Company's Unaudited Condensed Consolidated Statements of Operations.  The gains or losses on the Company's foreign exchange contracts are generally offset by gains or losses recorded on the underlying assets or liabilities held in foreign currencies.  At December 31, 2014, the Company had assets of $102,000 for settlements under these forward contracts in Other Current Assets on the Company's Unaudited Condensed Consolidated Balance Sheet.  At September 30, 2014, the Company had assets of $278,000 for forward contracts in Other Current Assets on the Company's Consolidated Balance Sheet.

Fair_value_measurements

Fair value measurements	3 Months Ended
	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Fair value measurements	Fair value measurements
	Fair value measurements are classified under the following hierarchy:
	•	Level 1 – Quoted prices for identical instruments in active markets.
	•	Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets.
	•	Level 3 – Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable.
	When available, the Company uses quoted market prices to determine fair value and classify such measurements within Level 1.  In some cases where market prices are not available, the Company makes use of observable market-based inputs to calculate fair value, in which case the measurements are classified within Level 2.  If quoted or observable market processes are not available, fair value is based upon internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates.  These measurements are classified within Level 3.
	Derivative financial instruments
	Interest rate swap agreements are measured on a recurring basis based on quoted prices for similar financial instruments and other observable inputs which approximate fair value.  The fair value of foreign currency forward contracts is based on the differential between contract price and the market-based forward rate.
	The following table presents the Company's assets and liabilities that are measured and recorded at fair value on a recurring basis consistent with the fair value hierarchy provisions:
			Fair Value Measurements at December 31, 2014
			(in thousands)
	Description		Level 1	Level 2			Level 3	Total Assets/
								Liabilities at
								Fair Value
	Derivatives:
	Interest rate swap		—	$	(237	)	—	$	(237	)
	Forward exchange contracts		—	—			—	—
	At December 31, 2014, the Company also had long-term debt of approximately $5.3 million.  The Company's long-term debt is recorded at historical cost and the Company has not elected to value such financial instruments at fair value.  The fair value of the debt approximated its carrying value based on the borrowing rates currently available to the Company for loans with similar terms and maturities.
	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.  Forward exchange contracts had a fair value of zero at the reporting date, as these contracts were entered into as of that date.  Changes in assumptions could significantly affect these estimates.
	At December 31, 2014, the Company's non-controlling interest in Proditec SAS had a carrying value of approximately $1.1 million. This investment is being accounted for under the cost method.  The fair value of the Company's investment in Proditec was not estimated as there were no events or changes in circumstances that may have had a significant adverse effect on the fair value of the investment, and our management determined that it was not practicable to estimate the fair value of the investment.  Further, there are not quoted market prices for the Company's investment, and sufficient information is not readily available for the Company to utilize a valuation model to determine its fair value without incurring excessive costs relative to the materiality of the investment.  The Company's cost method investment is evaluated for potential other-than-temporary impairment on at least a quarterly basis or when an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of the investment.

Financing_arrangements

Financing arrangements	3 Months Ended
	Dec. 31, 2014
Debt Disclosure [Abstract]
Financing arrangements	Financing arrangements
	The Company's domestic credit facility provides a revolving line of credit to the Company in the maximum principal amount of $15,000,000 and a credit sub-facility of up to $6,000,000 for standby letters of credit, of which, up to €3.0 million ($3.6 million) is available to our Netherlands subsidiary.  The revolving line of credit matures on March 31, 2016.  The credit facility bears interest, at the Company's option, at either the bank’s prime rate or the London Interbank Offered Rate ("LIBOR") using a tiered structure depending upon the Company's achievement of a specified financial ratio. The Company's prime rate option will be either the bank's prime rate plus 0.75%, 1.00% or 1.25% per annum. The Company's LIBOR option will be either LIBOR plus 2.25%, 2.50% or 2.75% per annum.  At December 31, 2014, the interest rate would have been 2.92% based on the lowest of the available alternative rates.  The revolving line of credit is secured by all U.S. accounts receivable, inventory, equipment, and fixtures.  At December 31, 2014, the Company had no borrowings outstanding under the revolving line of credit and $954,000 in outstanding standby letters of credit.
	The loan agreement also provides for a 15-year term loan in the amount of $6.4 million of which $4.4 million was outstanding as of December 31, 2014.  The term loan provides for a mortgage on the Company's Avery Street headquarters’ land and building located in Walla Walla, Washington.  The term loan bears interest at the LIBOR rate plus 1.40% and matures on January 2, 2024.  The Company also simultaneously entered into an interest rate swap agreement with the lender to fix the interest rate at 4.27%.
	The credit facility contains covenants which require operating within a funded debt to EBITDA ratio, a fixed charge coverage ratio and minimum working capital levels.  The loan agreement permits capital expenditures up to a certain level, and contains customary default and acceleration provisions.  The credit facility also restricts acquisitions, incurrence of additional indebtedness and lease expenditures above certain levels without the prior consent of the lender.  At December 31, 2014, the Company was in compliance with its loan covenants.
	The Company's Belgian subsidiary has a credit accommodation with a commercial bank in Belgium. This credit accommodation totals €2.7 million ($3.3 million) and includes an operating line of €800,000 ($1.0 million), a bank guarantee facility of €500,000 ($607,000), and loan agreement provisions of €1.4 million ($1.7 million). The operating line and bank guarantee facility are secured by all of the subsidiary's current assets.The Belgian operating line bears interest at the bank's prime rate, plus 1.25%. At December 31, 2014, the interest rate was 8.50%. At December 31, 2014, the subsidiary had no borrowings under the operating line. At December 31, 2014, the subsidiary had various loans outstanding under the loan agreement provision totaling €0.7 million ($0.9 million). The fixed interest rates on these loans ranged from 2.91% to 3.98%. The loans mature between November 2016 and November 2017. The credit accommodation contains a covenant which requires the maintenance of a minimum tangible net worth and debt to EBITDA ratio levels at the subsidiary measured at the end of its statutory fiscal year. At December 31, 2014, the subsidiary was not in compliance with the bank covenants. The Company does not expect such non-compliance to have any material effect on its operations. At December 31, 2014, the subsidiary had no bank guarantees outstanding under the bank guarantee facility. Additionally, the subsidiary had a subordinated loan with another European lender of €78,000 ($94,000). The loan has a fixed interest rate of 4.99% and matures in March 2016.

Contractual_guarantees_and_ind

Contractual guarantees and indemnities	3 Months Ended
	Dec. 31, 2014
Guarantees [Abstract]
Contractual guarantees and indemnities	Contractual guarantees and indemnities
	Product warranties
	The Company provides a warranty on its products ranging from ninety days to five years following the date of shipment, the majority of which are for periods of one year or less.  Management establishes allowances for warranty costs based upon the types of products shipped and product warranty experience.  The provision for warranty costs is charged to cost of sales at the time of sale, and it is periodically assessed for adequacy based on changes in these factors.
	A reconciliation of the changes in the Company’s allowances for warranties for the three months ended December 31, 2014 and 2013 is as follows (in thousands):
		Three Months Ended December 31,
		2014			2013
	Beginning balance	$	2,151		$	2,736
	Warranty costs incurred	(595		)	(867		)
	Warranty expense accrued	217			382
	Translation adjustments	(29		)	13
	Ending balance	$	1,744		$	2,264
	Intellectual property and general contractual indemnities
	The Company, in the normal course of business, provides specific, limited indemnification to its customers for liability and damages related to intellectual property rights.  In addition, the Company may enter into contracts with customers where it agrees to indemnify the customer for personal injury or property damage caused by the Company's products and services. Indemnification is typically limited to replacement of the items or the actual price of the products and services.  The Company maintains product liability insurance as well as errors and omissions insurance, which may provide a source of recovery in the event of an indemnification claim, but does not maintain insurance coverage for claims related to intellectual property rights.
	Historically, any amounts payable under these indemnifications have not had a material effect on the Company's business, financial condition, results of operations, or cash flows. The Company has not recorded any provision for future obligations under these indemnifications.  If the Company determines it is probable that a loss has occurred under these indemnifications, then any such reasonably estimable loss would be recognized.
	Director and officer indemnities
	The Company has entered into indemnification agreements with its directors and certain executive officers which require the Company to indemnify such individuals against certain expenses, judgments and fines in third-party and derivative proceedings.  The Company may recover, under certain circumstances, some of the expenses and liabilities that arise in connection with such indemnifications under the terms of its directors’ and officers’ insurance policies.  The Company has not recorded any provision for future obligations under these indemnification agreements.
	Bank guarantees and letters of credit
	At December 31, 2014, the Company had standby letters of credit totaling $954,000, which includes secured bank guarantees under the Company's domestic and European credit facilities. If the Company fails to meet its contractual obligations, these bank guarantees and letters of credit may become liabilities of the Company.  This amount consists of approximately $954,000 of outstanding performance guarantees secured by bank guarantees under the Company's domestic credit facility and no outstanding performance guarantees secured by bank guarantees under the Company's Belgian subsidiary's credit facility.  Bank guarantees arise when the Company collects customer deposits prior to order fulfillment.  The customer deposits received are recorded as current liabilities on the Company's balance sheet.  The bank guarantees repayment of the customer deposit in the event an order is not completed.  The bank guarantee is canceled upon shipment and transfer of title.  These bank guarantees arise in the normal course of the Company's business and are not deemed to expose the Company to any significant risks since they are satisfied as part of the design and manufacturing process.

Sharebased_compensation_Tables

Share-based compensation (Tables)	3 Months Ended
	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based compensation expense included in the Company's results	Share-based compensation expense included in the Company's results was as follows (in thousands):
		Three Months Ended
		December 31,
		2014		2013
	Cost of goods sold	$	50	$	44
	Operating expenses	306		344
	Total share-based compensation expense	$	356	$	388

Earnings_loss_per_share_Tables

Earnings (loss) per share (Tables)	3 Months Ended
	Dec. 31, 2014
Earnings Per Share [Abstract]
Schedule of earnings per share, basic and diluted	The calculation of the basic and diluted earnings (loss) per share (“EPS”) is as follows (in thousands, except per-share data):
		Three Months Ended								Three Months Ended
		December 31, 2014								December 31, 2013
		Loss				Shares	Per-Share			Loss			Shares	Per-Share
							Amount							Amount
	Basic EPS:
	Net loss	$	(1,828	)		6,285	$	(0.29	)	$	(2,606	)	6,276	$	(0.42	)
	Effect of dilutive securities:
	Common stock options	—				—				—			—
	Warrants	—				—				—			—
	Diluted EPS:
	Net loss plus assumed conversions	$	(1,828	)		6,285	$	(0.29	)	$	(2,606	)	6,276	$	(0.42	)
Antidilutive securities excluded from computation of earnings per share	The following potentially issuable common shares at December 31, 2014 and 2013 were not included in the calculation of diluted EPS as they were anti-dilutive:
		Three Months Ended
		December 31,
		2014			2013
	Common shares from:
	Assumed exercise of stock options	10,000			25,000
	Warrants	250,000			250,000

Fair_value_measurements_Tables

Fair value measurements (Tables)	3 Months Ended
	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Company's assets and liabilities measured and recorded at fair value on a recurring basis	The following table presents the Company's assets and liabilities that are measured and recorded at fair value on a recurring basis consistent with the fair value hierarchy provisions:
		Fair Value Measurements at December 31, 2014
		(in thousands)
	Description	Level 1	Level 2			Level 3	Total Assets/
							Liabilities at
							Fair Value
	Derivatives:
	Interest rate swap	—	$	(237	)	—	$	(237	)
	Forward exchange contracts	—	—			—	—

Contractual_guarantees_and_ind1

Contractual guarantees and indemnities (Tables)	3 Months Ended
	Dec. 31, 2014
Guarantees [Abstract]
Reconciliation of changes in Company's allowances for warranties	A reconciliation of the changes in the Company’s allowances for warranties for the three months ended December 31, 2014 and 2013 is as follows (in thousands):
		Three Months Ended December 31,
		2014			2013
	Beginning balance	$	2,151		$	2,736
	Warranty costs incurred	(595		)	(867		)
	Warranty expense accrued	217			382
	Translation adjustments	(29		)	13
	Ending balance	$	1,744		$	2,264

Sharebased_compensation_Detail

Share-based compensation (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$356	$388
Share-based compensation expense remaining capitalized in inventory	25	1
Cost of goods sold
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	50	44
Operating expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$306	$344

Earnings_loss_per_share_Detail

Earnings (loss) per share (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Basic EPS:
Net earnings (loss)	($1,828)	($2,606)
Shares used in per share calculations - basic (in shares)	6,285,000	6,276,000
- basic (in dollars per share)	($0.29)	($0.42)
Effect of dilutive securities:
Loss	0	0
Common stock options (in shares)	0	0
Warrants and Rights Outstanding	0	0
Warrants and Rights Outstanding (in shares)	0	0
Diluted EPS:
Net earnings (loss)	($1,828)	($2,606)
Shares used in per share calculations - diluted (in shares)	6,285,000	6,276,000
- diluted (in dollars per share)	($0.29)	($0.42)
Assumed exercise of stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	10,000	25,000
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	250,000	250,000

Income_taxes_Details

Income taxes (Details) (Research Tax Credit Carryforward [Member], USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014
Research Tax Credit Carryforward [Member]
Tax Credit Carryforward [Line Items]
Income tax expense reduction next quarter	$305

Derivative_instruments_Details

Derivative instruments (Details)	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2014
	USD ($)	Interest rate swap	Forward exchange contracts	Forward exchange contracts	Forward exchange contracts	Other long-term liabilities
		USD ($)	USD ($)	EUR (€)	USD ($)	Interest rate swap
						USD ($)
Derivative [Line Items]
Long-term debt	$5,300,000	$4,400,000
Variable interest rate on the derivative (in hundredths)		4.27%
Fair value of the net derivative liability						237,000
Gain (Loss) on net derivative		-34,000	18,000
Interest expense		31,000
Derivative amount			3,400,000	2,800,000
Fair value of the derivative asset, net			$102,000		$278,000

Fair_value_measurements_Detail

Fair value measurements (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	$5,300,000
Carrying value of minority interest in Proditec SAS	1,127,000	1,127,000
Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	-237,000
Forward exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0
Level 1 | Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0
Level 1 | Forward exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0
Level 2 | Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	-237,000
Level 2 | Forward exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0
Level 3 | Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0
Level 3 | Forward exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivatives	0
Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	4,400,000
Proditec SAS [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of minority interest in Proditec SAS	$1,100

Financing_arrangements_Details

Financing arrangements (Details)

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Sep. 30, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Dec. 31, 2014

Interest rate swap

Revolving Credit Facility

Loans Payable [Member]

Notes Payable, Other Payables [Member]

Notes Payable, Other Payables [Member]

Domestic Credit Facility

Domestic Credit Facility

Revolving Credit Facility

Commercial bank in the Netherlands

Commercial bank in the Netherlands

Commercial bank in Belgium

Commercial bank in Belgium

Commercial bank in Belgium

Commercial bank in Belgium

Commercial bank in Belgium

Commercial bank in Belgium

Commercial bank in Belgium

Commercial bank in Belgium

Prime Rate

Prime Rate

LIBOR

LIBOR

Tier One

Tier One

Tier Two

Tier Two

Tier Three

Tier Three

USD ($)

USD ($)

EUR (€)

Revolving Credit Facility

Credit sub-facility standby letters of credit

Credit sub-facility standby letters of credit

Credit sub-facility standby letters of credit

Credit sub-facility standby letters of credit

USD ($)

EUR (€)

Line of Credit

Line of Credit

Outstanding performance guarantees

Outstanding performance guarantees

Commercial Loan

Commercial Loan

Minimum [Member]

Maximum [Member]

Revolving credit facility term loan

Domestic Credit Facility

Prime Rate

LIBOR

Prime Rate

LIBOR

Prime Rate

LIBOR

USD ($)

USD ($)

USD ($)

USD ($)

EUR (€)

USD ($)

EUR (€)

USD ($)

EUR (€)

USD ($)

EUR (€)

Commercial bank in Belgium

Commercial bank in Belgium

Revolving Credit Facility

Domestic Credit Facility

Domestic Credit Facility

Domestic Credit Facility

Domestic Credit Facility

Domestic Credit Facility

Domestic Credit Facility

Line of Credit

Line of Credit

Revolving Credit Facility

Revolving Credit Facility

Revolving Credit Facility

Revolving Credit Facility

Revolving Credit Facility

Revolving Credit Facility

Line of Credit Facility [Line Items]

Maximum borrowing capacity

$15,000,000

$6,000,000

$3,643,500

€ 3,000,000

$3,300,000

€ 2,700,000

$972,000

€ 800,000

$607,000

€ 500,000

$1,700,000

€ 1,400,000

Line of Credit Facility, Interest Rate During Period

2.91%

3.98%

Maturity date

31-Mar-16

2-Jan-24

Description of variable rate basis

LIBOR

Basis spread on variable rate

1.25%

1.40%

0.75%

2.25%

1.00%

2.50%

1.25%

2.75%

Interest rate (in hundredths)

2.92%

8.50%

8.50%

Outstanding at the end of the period

954,000

0

900,000

700,000

0

Term on debt

15 years

Loan amount

6,400,000

Long-term Debt, Gross

$4,400,000

$94,000

€ 78,000

Fixed interest rate (in hundredths)

4.27%

Interest rate

4.99%

Financing_arrangements_Notes_p

Financing arrangements Notes payable (Details)	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2014	Dec. 31, 2014
		Loans Payable [Member]	Notes Payable, Other Payables [Member]	Notes Payable, Other Payables [Member]	Interest rate swap
		USD ($)	USD ($)	EUR (€)
Debt Instrument [Line Items]
Term on debt		15 years
Maturity date		2-Jan-24
Loan amount		$6,400,000
Long-term Debt, Gross		$4,400,000	$94,000	€ 78,000
Interest rate	4.99%
Fixed interest rate (in hundredths)					4.27%

Contractual_guarantees_and_ind2

Contractual guarantees and indemnities (Details) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Guarantor Obligations [Line Items]
Product warranty period, minimum	90 days
Product warranty period, maximum	5 years
Reconciliation of changes in Company's allowances for warranties [Roll Forward]
Beginning balance	$2,151,000	$2,736,000
Warranty costs incurred	-595,000	-867,000
Warranty expense accrued	217,000	382,000
Translation adjustments	-29,000	13,000
Ending balance	1,744,000	2,264,000
Financial Standby Letter of Credit
Guarantor Obligations [Line Items]
Guarantor obligations, maximum exposure, undiscounted	954,000
Outstanding performance guarantees | Subsidiaries-Belgium
Guarantor Obligations [Line Items]
Guarantor obligations, maximum exposure, undiscounted	$0