Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 5-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'BALLANTYNE STRONG, INC. | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 14,139,462 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000946454 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $25,491 | $28,791 |
Accounts receivable (net of allowance for doubtful accounts of $759 and $703, respectively) | 16,511 | 20,047 |
Inventories: | ' | ' |
Finished goods, net | 10,597 | 10,949 |
Work in process | 359 | 345 |
Raw materials and components, net | 4,304 | 3,891 |
Total inventories, net | 15,260 | 15,185 |
Recoverable income taxes | 3,445 | 2,207 |
Other current assets | 5,500 | 5,873 |
Total current assets | 66,207 | 72,103 |
Property, plant and equipment (net of accumulated depreciation of $5,007 and $4,781, respectively) | 14,202 | 14,721 |
Note receivable | 2,611 | 2,497 |
Intangible assets, net | 939 | 895 |
Goodwill | 1,080 | 1,123 |
Other assets | 3,672 | 4,105 |
Total assets | 88,711 | 95,444 |
Current liabilities: | ' | ' |
Accounts payable | 9,483 | 12,844 |
Accrued expenses | 4,962 | 6,236 |
Customer deposits/deferred revenue | 3,621 | 3,474 |
Income tax payable | 496 | 888 |
Total current liabilities | 18,562 | 23,442 |
Deferred revenue | 2,643 | 3,008 |
Deferred income taxes | 755 | 790 |
Other accrued expenses, net of current portion | 1,781 | 1,748 |
Total liabilities | 23,741 | 28,988 |
Stockholders’ equity: | ' | ' |
Common stock, par value $.01 per share; Authorized 25,000 shares; issued 16,869 shares at March 31, 2014 and December 31, 2013, respectively; 14,138 shares outstanding at March 31, 2014 and December 31, 2013, respectively | 167 | 167 |
Additional paid-in capital | 38,332 | 38,231 |
Accumulated other comprehensive income: | ' | ' |
Foreign currency translation | -1,989 | -959 |
Postretirement benefit obligations | 190 | 190 |
Retained earnings | 46,509 | 47,066 |
83,209 | 84,695 | |
Less 2,731 of common shares in treasury, at cost at March 31, 2014 and December 31, 2013 | -18,239 | -18,239 |
Total stockholders’ equity | 64,970 | 66,456 |
Total liabilities and stockholders’ equity | $88,711 | $95,444 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts (in Dollars) (in Dollars) | $759 | $703 |
Property, plant and equipment net of accumulated depreciation. (in Dollars) | $5,007 | $4,781 |
Preferred stock par value (in Dollars per share) (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) (in Dollars per share) | $0.01 | $0.01 |
Common stock, authorized shares | 25,000 | 25,000 |
Common stock, issued shares | 16,869 | 16,869 |
Common stock, outstanding shares | 14,138 | 14,138 |
Common shares in treasury, shares | 2,731 | 2,731 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Current Period Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net product sales | $14,834 | $25,196 |
Net service revenues | 7,187 | 2,425 |
Total net revenues | 22,021 | 27,621 |
Cost of products sold | 12,450 | 21,593 |
Cost of services | 5,355 | 2,114 |
Total cost of revenues | 17,805 | 23,707 |
Gross profit | 4,216 | 3,914 |
Selling and administrative expenses: | ' | ' |
Selling | 1,546 | 866 |
Administrative | 3,893 | 2,501 |
Total selling and administrative expenses | 5,439 | 3,367 |
Gain (loss) on sale or disposal of assets | 7 | 2 |
Income (loss) from operations | -1,216 | 549 |
Equity in income (loss) of joint venture | 95 | -106 |
Other income (expense): | ' | ' |
Interest income | 177 | 22 |
Interest expense | -9 | -7 |
Other income (expense), net | 209 | 248 |
Total other income (expense) | 377 | 263 |
Earnings (loss) before income taxes | -744 | 706 |
Income tax benefit (expense) | 150 | -141 |
Net earnings (loss) | ($594) | $565 |
Basic earnings (loss) per share (in Dollars per share) | ($0.04) | $0.04 |
Diluted earnings (loss) per share (in Dollars per share) | ($0.04) | $0.04 |
Weighted average shares outstanding: | ' | ' |
Basic (in Shares) | 14,026 | 13,979 |
Diluted (in Shares) | 14,026 | 14,023 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net earnings (loss) | ($594) | $565 |
Currency translation adjustment | ' | ' |
Unrealized net change arising during period | -1,030 | -401 |
Other comprehensive loss | -1,030 | -401 |
Comprehensive income (loss) | ($1,624) | $164 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net earnings (loss) | ($594) | $565 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' |
Provision for doubtful accounts | 69 | 30 |
Provision for obsolete inventory | -8 | 24 |
Provision for warranty | -134 | 106 |
Depreciation and amortization | 434 | 338 |
Equity in (income) loss of joint venture | -95 | 106 |
Loss on forward contracts | 348 | ' |
(Gain) loss on disposal or transfer of assets | -7 | 2 |
Deferred income taxes | 519 | -10 |
Share-based compensation expense | 101 | 95 |
Changes in operating assets and liabilities, net of effect of acquisitions: | ' | ' |
Accounts, unbilled and notes receivable | 3,709 | 6,010 |
Inventories | -179 | -2,773 |
Other current assets | -200 | 821 |
Accounts payable | -3,314 | -1,810 |
Accrued expenses | -1,343 | -315 |
Customer deposits/deferred revenue | -208 | -859 |
Current income taxes | -1,599 | -444 |
Other assets | -56 | 43 |
Net cash (used in) provided by operating activities | -2,557 | 1,929 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -258 | -73 |
Proceeds from sales of assets | 56 | 2 |
Net cash used in investing activities | -202 | -71 |
Cash flows from financing activities: | ' | ' |
Proceeds from employee stock purchase plan | ' | 4 |
Net cash provided by financing activities | ' | 4 |
Effect of exchange rate changes on cash and cash equivalents | -541 | -167 |
Net increase (decrease) in cash and cash equivalents | -3,300 | 1,695 |
Cash and cash equivalents at beginning of year | 28,791 | 40,168 |
Cash and cash equivalents at end of year | $25,491 | $41,863 |
Note_1_Nature_of_Operations
Note 1 - Nature of Operations | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Text Block [Abstract] | ' |
Nature of Operations [Text Block] | ' |
1. Nature of Operations | |
Ballantyne Strong, Inc. (“Ballantyne” or the “Company”), a Delaware corporation, and its wholly owned subsidiaries Strong Westrex, Inc., Strong Technical Services, Inc., Strong/MDI Screen Systems, Inc., Peintures Elite, Inc. (“Peintures”), Strong Westrex (Beijing) Trading Inc., Convergent Corporation and Convergent Media Systems Corporation (“CMS”) designs, integrates, and installs technology solutions for a broad range of applications; develops and delivers out-of-home messaging, advertising and communications; manufactures projection screens and lighting products; and provides managed services including monitoring of networked equipment to our customers. As of January 1, 2014 the legal entity Peintures Elite, Inc. was dissolved and consolidated into Strong/MDI Screen Systems, Inc. | |
The Company’s products are distributed to the retail, financial, government and cinema markets throughout the world. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Basis of Presentation and Significant Accounting Policies [Text Block] | ' | ||||||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||||||
Basis of Presentation and Principles of Consolidation | |||||||||||||||||
The condensed consolidated financial statements include the accounts of the Company and all majority owned and controlled domestic and foreign subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||
The condensed consolidated financial statements included in this report are presented in accordance with the requirements of Form 10-Q and consequently do not include all of the disclosures normally required by accounting principles generally accepted in the United States of America for annual reporting purposes or those made in the Company’s Annual Report on Form 10-K. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year-ended December 31, 2013. | |||||||||||||||||
The condensed consolidated balance sheet as of December 31, 2013 was derived from the Company’s audited consolidated balance sheet as of that date. All other condensed consolidated financial statements contained herein are unaudited and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary to present a fair statement of the financial position and the results of operations and cash flows for the respective interim periods. The results for interim periods are not necessarily indicative of trends or results expected for a full year. | |||||||||||||||||
Acquisitions | |||||||||||||||||
On September 13, 2013, the Company acquired Peintures Elite, Inc., a manufacturer of paint and lacquer products and the primary provider of paint used in the Company’s screen manufacturing. On October 1, 2013, the Company acquired CMS to provide digital technologies for out-of-home messaging, advertising and communication (the DOOH market) and Enterprise Video Solutions (“EVS”), which provides enterprises with the infrastructure necessary for communications, collaboration, training and education of employees. | |||||||||||||||||
The condensed consolidated financial statements as of December 31, 2013, March 31, 2014, and for the three-month period ended March 31, 2014, include amounts acquired from, as well as the results of operations of Peintures and CMS. Peintures is included in the systems integration segment and CMS is included in the managed services segment. | |||||||||||||||||
Reclassifications | |||||||||||||||||
Certain prior year amounts presented in the condensed consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation. These reclassifications did not impact the Company’s net income (loss) for 2014 or 2013. | |||||||||||||||||
Use of Management Estimates | |||||||||||||||||
The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and changes in facts and circumstances may alter such estimates and affect results of operations and financial position in future periods. | |||||||||||||||||
Fair Value of Financial and Derivative Instruments | |||||||||||||||||
The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: | |||||||||||||||||
● | Level 1 - inputs to the valuation techniques are quoted prices in active markets for identical assets or liabilities | ||||||||||||||||
● | Level 2 - inputs to the valuation techniques are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly | ||||||||||||||||
● | Level 3 - inputs to the valuation techniques are unobservable for the assets or liabilities | ||||||||||||||||
The following tables present the Company’s financial assets and liabilities measured at fair value based upon the level within the fair value hierarchy in which the fair value measurements fall. | |||||||||||||||||
Fair values measured on a recurring basis at March 31, 2014: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 25,491 | $ | — | $ | — | $ | 25,491 | |||||||||
Note receivable | $ | — | $ | — | $ | 2,611 | $ | 2,611 | |||||||||
Foreign exchange forward contract asset | $ | — | $ | 11,961 | $ | — | $ | 11,961 | |||||||||
Foreign exchange forward contract liability | $ | — | $ | (12,000 | ) | $ | — | $ | (12,000 | ) | |||||||
Fair values measured on a recurring basis at December 31, 2013: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 28,791 | $ | — | $ | — | $ | 28,791 | |||||||||
Note receivable | $ | — | $ | — | $ | 2,497 | $ | 2,497 | |||||||||
Foreign exchange forward contract asset | $ | — | $ | 10,934 | $ | — | $ | 10,934 | |||||||||
Foreign exchange forward contract liability | $ | — | $ | (11,000 | ) | $ | — | $ | (11,000 | ) | |||||||
The note receivable accrue interest at a rate of 15% per annum which is paid in accordance with an agreed-upon cash flow schedule. | |||||||||||||||||
Quantitative information about the Company’s level 3 fair value measurements at March 31, 2014 is set forth below: | |||||||||||||||||
$ in thousands | Fair Value at | Valuation Technique | Unobservable input | Range | |||||||||||||
3/31/14 | |||||||||||||||||
Note receivable | $ | 2,611 | Discounted cash flow | Probability of default | 0 | % | |||||||||||
Prepayment rates | 0 | % | |||||||||||||||
Loss severity | 0 | % | |||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Company’s notes receivable are prepayment rates, probability of default and loss severity in the event of default. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and directionally opposite change in the assumption used for prepayment rates. | |||||||||||||||||
The following table reconciles the beginning and ending balance of the Company’s Note Receivable fair value: | |||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
$ in thousands | |||||||||||||||||
Note receivable balance, beginning of period | $ | 2,497 | $ | 2,232 | |||||||||||||
Interest income accrued | 114 | — | |||||||||||||||
Note receivable balance, end of period | $ | 2,611 | $ | 2,232 | |||||||||||||
The carrying values of all other financial assets and liabilities including accounts receivable, accounts payable and accrued expenses reported in the consolidated balance sheets equal or approximate their fair values due to the short-term nature of these instruments. All non-financial assets that are not recognized or disclosed at fair value in the financial statements on a recurring basis, which includes non-financial long-lived assets, are measured at fair value in certain circumstances (for example, when there is evidence of impairment). During the quarter ended March 31, 2014 we did not have any significant non-recurring measurements of non-financial assets or liabilities. | |||||||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||||||
There are no recently issued accounting pronouncements which the Company believes will materially impact its consolidated financial statements. |
Note_3_Earnings_Loss_Per_Commo
Note 3 - Earnings (Loss) Per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
3. Earnings (Loss) Per Common Share | |||||||||
Basic earnings (loss) per share have been computed on the basis of the weighted average number of shares of common stock outstanding. Diluted earnings (loss) per share has been computed on the basis of the weighted average number of shares of common stock outstanding after giving effect to potential common shares from dilutive stock options and certain non-vested shares of restricted stock. The following table provides the reconciliation between basic and diluted earnings (loss) per share: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands, except per share data) | |||||||||
Basic earnings (loss) per share: | |||||||||
Earnings (loss) applicable to common stock | $ | (594 | ) | $ | 565 | ||||
Basic weighted average common shares outstanding | 14,026 | 13,979 | |||||||
Basic earnings (loss) per share | $ | (0.04 | ) | $ | 0.04 | ||||
Diluted earnings (loss) per share: | |||||||||
Earnings (loss) applicable to common stock | $ | (594 | ) | $ | 565 | ||||
Basic weighted average common shares outstanding | 14,026 | 13,979 | |||||||
Dilutive effect of stock options and restricted stock awards | — | 44 | |||||||
Dilutive weighted average common shares outstanding | 14,026 | 14,023 | |||||||
Diluted earnings (loss) per share | $ | (0.04 | ) | $ | 0.04 | ||||
For the three months ended March 31, 2014 and 2013 options to purchase 50,000 and 191,200 shares of common stock, respectively were outstanding but were not included in the computation of diluted earnings per share as the option’s exercise price was greater than the average market price of the common shares for the respective periods. An additional 48,486 options were excluded from the three month period ended March 31, 2014 as their inclusion would be anti-dilutive, thereby decreasing the net loss per share. |
Note_4_Warranty_Reserves
Note 4 - Warranty Reserves | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Product Warranties Disclosures [Abstract] | ' | ||||||||
Product Warranty Disclosure [Text Block] | ' | ||||||||
4. Warranty Reserves | |||||||||
Historically, the Company has generally granted a warranty to its customers for a one-year period following the sale of manufactured film projection equipment and on selected repaired equipment for a one-year period. In most instances, the digital products are covered by the manufacturing firm’s OEM warranty; however, there are certain customers where the Company may grant warranties in excess of the manufacturer’s warranty for digital products. The Company accrues for these costs at the time of sale or repair. The following table summarizes warranty activity for the three months ended March 31, 2014 and 2013: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Warranty accrual at beginning of period | $ | 662 | $ | 770 | |||||
Charged to expense | 36 | 56 | |||||||
Amounts written off, net of recoveries | (149 | ) | (68 | ) | |||||
Foreign currency adjustment | (5 | ) | 2 | ||||||
Warranty accrual at end of period | $ | 544 | $ | 760 | |||||
Note_5_Digital_Link_II_Joint_V
Note 5 - Digital Link II Joint Venture | 3 Months Ended |
Mar. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | ' |
5. Digital Link II Joint Venture | |
On March 6, 2007, the Company entered into an agreement with RealD to form an operating entity Digital Link II, LLC (the “LLC”). Under the agreement, the LLC was formed with the Company and RealD as the only two members with membership interests of 44.4% and 55.6%, respectively. The LLC was formed for purposes of commercializing certain 3D technology and to fund the deployment of digital projector systems and servers to exhibitors. | |
The Company accounts for its investment by the equity method. Under this method, the Company recorded its proportionate share of LLC net income or loss based on the LLC’s financial statements as of March 31, 2014 and March 23, 2013, respectively. The LLC uses four 13-week periods for a total of 52 weeks to align its fiscal year-end with that of its majority interest holder, RealD. The Company’s portion of income (loss) of the LLC was approximately $0.1 million for the quarter ended March 31, 2014 and $(0.1) million for the quarter ended March 31, 2013. | |
In the past, the Company sold digital theatre projection equipment, in the normal course of business, to the LLC. The LLC in turn provides and sells the digital projection equipment to third party customers under system use agreements or through sales agreements. Revenue recognized by the Company on the sale transaction to the LLC is limited by its 44.4% ownership in the joint venture which will be recognized upon sale of the equipment to the third parties. There were no sales to the LLC during the quarters ended March 31, 2014 and 2013. The total receivable balance due from the LLC was insignificant at March 31, 2014 and December 31, 2013. | |
The Company received no distributions from the LLC in the first quarter of 2013 or 2014. |
Note_6_Goodwill
Note 6 - Goodwill | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Goodwill Disclosure [Text Block] | ' | ||||
6. Goodwill | |||||
The following represents a summary of changes in the Company’s carrying amount of goodwill for the quarter ended March 31, 2014 (in thousands): | |||||
Balance as of December 31, 2013 | $ | 1,123 | |||
Foreign currency translation | (43 | ) | |||
Balance as of March 31, 2014 | $ | 1,080 | |||
Note_7_Restructuring_Activitie
Note 7 - Restructuring Activities | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Restructuring and Related Activities [Abstract] | ' | ||||
Restructuring and Related Activities Disclosure [Text Block] | ' | ||||
7. Restructuring Activities | |||||
In connection with the integration of the 2013 CMS acquisition, as well as the Company’s ongoing plans to improve efficiency and effectiveness of its operations, the Company initiated plans in the fourth quarter of 2013 to reduce headcount and move the Company’s warehouse from Omaha, Nebraska to Georgia. The Company recorded $1.4 million in severance costs it expects to incur in relation to the integration. Additionally, $0.06 million in costs were recorded for site closure of the Omaha warehouse. The restructuring initiative is expected to be completed by the first quarter of 2015. | |||||
The following table reconciles the beginning and ending restructuring balance for the quarter ended March 31, 2014, which are included in accrued expenses: | |||||
(in thousands) | |||||
Accrued liability at beginning of period | $ | 896 | |||
Severance paid | (148 | ) | |||
Site closure costs paid | (58 | ) | |||
Accrued liability at end of period | $ | 690 | |||
Note_8_Debt
Note 8 - Debt | 3 Months Ended |
Mar. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
8. Debt | |
The Company is a party to a $20 million Revolving Credit Agreement and Note (collectively, the “Credit Agreement”) with Wells Fargo Bank, N.A. (“Wells Fargo”). The Company may request an increase in the Credit Agreement of up to an additional $5 million; however, any advances on the additional $5 million are subject to approval of Wells Fargo. The borrowings from the Credit Agreement are to be used for working capital purposes and for other general corporate purposes. The Company’s accounts receivable, general intangibles and inventory secure the Credit Agreement. | |
The Revolving Credit Agreement contains certain covenants, including those relating to our financial condition. The primary financial condition covenants pertain to maintaining a ratio of total liabilities to tangible net worth of less than 2 to 1 and net income before taxes of $1 on a rolling 4-quarter basis, as defined in the Revolving Credit Agreement. Other covenants pertain to items such as certain limits on incurring additional debt or lease obligations, certain limits on issuing guarantees and certain limits on loans, advances and investments with third parties. Upon the occurrence of any event of default specified in the Revolving Credit Agreement, including a change in control of the Company (as defined in the Credit Agreement), all amounts due there under may be declared to be immediately due and payable. At March 31, 2014, the Company did not meet the requirement for net income before taxes on a rolling 4-quarter basis to equal or exceed $1. The Company obtained a waiver from Wells Fargo of the March 31, 2014 covenant violation. The agreement expires June 30, 2014. | |
Since inception of the agreement, no amounts have been borrowed on the Revolving Credit Agreement. At March 31, 2014, the Company had availability of $20 million. |
Note_9_Income_Taxes
Note 9 - Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
9. Income Taxes | |
The effective tax rate (calculated as a ratio of income tax expense to pretax earnings, inclusive of equity method investment losses) was approximately 20.2% and 20.0% for the quarters ended March 31, 2014 and 2013, respectively. The effective tax rate differs from the statutory rates primarily as a result of differing foreign and U.S. tax rates applied to respective pre-tax earnings by tax jurisdiction. The Company’s estimated annual effective rate for the first quarter of 2014 was consistent to the first quarter of 2013 due to a similar breakout of earnings by taxing jurisdiction. | |
The Company’s uncertain tax positions are related to tax years that remain subject to examination by the relevant taxable authorities. The Company has examinations not yet initiated for Federal purposes for fiscal years 2005 through 2010 and 2012. The company is currently undergoing an examination for 2011. In most cases, the Company has examinations open for state or local jurisdictions based on the particular jurisdiction’s statute of limitations. The Company does not currently have any state or local examinations in process. As of March 31, 2014, total unrecognized tax benefits amounted to approximately $0.1 million. |
Note_10_Stock_Based_Compensati
Note 10 - Stock Based Compensation | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||||||||||||
10. Stock Compensation | |||||||||||||||||||||||||||
The Company recognizes compensation expense for all share-based payment awards made to employees and directors based on their estimated fair values. Share-based compensation expense included in selling and administrative expenses approximated $0.1 million for the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||
Long-Term Incentive Plan | |||||||||||||||||||||||||||
The Company’s 2010 Long-Term Incentive Plan (“2010 Plan”) provides the Compensation Committee of the Board of Directors with the discretion to grant stock options, stock appreciation rights, restricted shares, restricted units, performance shares, or performance units. Vesting terms vary with each grant and may be subject to vesting upon a “change in control” of the Company. The total number of shares reserved for issuance under the 2010 Plan was 600,000 shares. | |||||||||||||||||||||||||||
Options | |||||||||||||||||||||||||||
The following table summarizes the Company’s activities with respect to its stock options for the three months ended March 31, 2014 as follows: | |||||||||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||||||||||||
Exercise Price | Remaining | Value | |||||||||||||||||||||||||
Per Share | Contractual | (in thousands) | |||||||||||||||||||||||||
Term | |||||||||||||||||||||||||||
Outstanding at December 31, 2013 | 213,700 | $ | 5.42 | 7.84 | $ | 26 | |||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||
Exercised | — | — | |||||||||||||||||||||||||
Forfeited | — | — | |||||||||||||||||||||||||
Outstanding at March 31, 2014 | 213,700 | $ | 5.42 | 7.59 | $ | 27 | |||||||||||||||||||||
Exercisable at March 31, 2014 | 129,200 | $ | 6.02 | 7.35 | $ | 10 | |||||||||||||||||||||
The aggregate intrinsic value in the table above represents the total that would have been received by the option holders if all in-the-money options had been exercised on March 31, 2014. | |||||||||||||||||||||||||||
As of March 31, 2014, the total unrecognized compensation cost related to stock option awards was approximately $0.2 million which is expected to be recognized over a weighted average period of 1.8 years. | |||||||||||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at March 31, 2014: | |||||||||||||||||||||||||||
Options Outstanding at | Options Exercisable at | ||||||||||||||||||||||||||
31-Mar-14 | 31-Mar-14 | ||||||||||||||||||||||||||
Range of option exercise price | Number of | Weighted | Weighted | Number of | Weighted | Weighted | |||||||||||||||||||||
options | average | average | options | average | average | ||||||||||||||||||||||
remaining | exercise price | remaining | exercise price | ||||||||||||||||||||||||
contractual | per option | contractual | per option | ||||||||||||||||||||||||
life | life | ||||||||||||||||||||||||||
$3.55 | to | 8.32 | 213,700 | 7.59 | $ | 5.42 | 129,200 | 7.35 | $ | 6.02 | |||||||||||||||||
Restricted Stock Plans | |||||||||||||||||||||||||||
The Company’s 2005 Restricted Stock Plan (the “2005 Plan”) provides for the grant of restricted stock awards. A total of 250,000 shares were reserved for issuance under the 2005 Plan, which expired September 1, 2013. These shares are subject to such restrictions on transferability and other restrictions, if any, as the Compensation Committee may impose. No shares were issued under this plan during the three months ended March 31, 2013. | |||||||||||||||||||||||||||
In connection with the restricted stock granted to certain employees and non-employee directors, the Company accrues compensation expense based on the estimated number of shares expected to be issued utilizing the most current information available to the Company at the date of the financial statements. The Company estimates the fair value of restricted stock awards based upon the market price of the underlying common stock on the date of grant. | |||||||||||||||||||||||||||
As of March 31, 2014, the total unrecognized compensation cost related to non-vested restricted stock awards was approximately $0.3 million which is expected to be recognized over a weighted average period of 1.8 years. | |||||||||||||||||||||||||||
The following table summarizes restricted stock activity for the three months ended March 31, 2014: | |||||||||||||||||||||||||||
Number of Restricted | Weighted Average Grant | ||||||||||||||||||||||||||
Stock Shares | Price Fair Value | ||||||||||||||||||||||||||
Non-vested at December 31, 2013 | 129,500 | $ | 4.42 | ||||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||
Shares vested | (30,667 | ) | 4.28 | ||||||||||||||||||||||||
Shares forfeited | — | — | |||||||||||||||||||||||||
Non-vested at March 31, 2014 | 98,833 | $ | 4.46 | ||||||||||||||||||||||||
Note_11_Foreign_Exchange_Contr
Note 11 - Foreign Exchange Contracts | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Foreign Currency [Abstract] | ' | ||||||||||
Foreign Currency Disclosure [Text Block] | ' | ||||||||||
11. Foreign Exchange Contracts | |||||||||||
The Company’s primary exposure to foreign currency fluctuations pertains to its subsidiaries in Canada and China. In certain instances the Company may enter into foreign exchange forward contracts to manage a portion of this risk. The Company has not designated its foreign exchange forward contracts as hedges. | |||||||||||
The following table presents the gross fair value of derivative instruments, all of which are not designated as hedging instruments: | |||||||||||
Asset Derivatives | |||||||||||
(in thousands) | Classification | March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||||
Foreign exchange forward contracts | Other current assets | $ | 11,961 | $ | 10,934 | ||||||
Liability Derivatives | |||||||||||
(in thousands) | Classification | March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||||
Foreign exchange forward contracts | Other current liabilities | $ | 12,000 | $ | 11,000 | ||||||
The above fair values results in an insignificant net liability at March 31, 2014 and December 31, 2013. All cash flows related to our foreign currency exchange contracts are classified as operating cash flows. We recognized in other income, the following realized and unrealized losses from foreign currency forward exchange contracts: | |||||||||||
Three Months Ended March 31, | |||||||||||
(in thousands) | Classification | 2014 | 2013 | ||||||||
Foreign exchange forward contracts | Other Income (Loss) | $ | (348 | ) | $ | — | |||||
Note_12_Contingencies_and_Conc
Note 12 - Contingencies and Concentrations | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||
12. Commitments, Contingencies and Concentrations | |||||||||||||||||||||||||||||
Concentrations | |||||||||||||||||||||||||||||
The Company’s top ten customers accounted for approximately 45.0% of total consolidated net revenues for the three months ended March 31, 2014. Trade accounts receivable from these customers represented approximately 37.8% of net consolidated receivables at March 31, 2014. While the Company believes its relationships with such customers are stable, most arrangements are made by purchase order and are terminable at will by either party. A significant decrease or interruption in business from the Company’s significant customers could have a material adverse effect on the Company’s business, financial condition and results of operations. The Company could also be adversely affected by such factors as changes in foreign currency rates and weak economic and political conditions in each of the countries in which the Company sells its products. | |||||||||||||||||||||||||||||
Financial instruments that potentially expose the Company to a concentration of credit risk principally consist of accounts receivable. The Company sells product to a large number of customers in many different geographic regions. To minimize credit concentration risk, the Company performs ongoing credit evaluations of its customers’ financial condition. | |||||||||||||||||||||||||||||
Leases | |||||||||||||||||||||||||||||
The Company and its subsidiaries lease plant and office facilities, furniture, autos and equipment under operating leases expiring through 2023. These leases generally contain renewal options and the Company expects to renew or replace certain of these leases in the ordinary course of business. | |||||||||||||||||||||||||||||
The Company’s future minimum lease payments for operating leases are as follows: | |||||||||||||||||||||||||||||
Payments due by period ($ in thousands) | |||||||||||||||||||||||||||||
Total | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||||||
Remainder | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Operating leases | $ | 4,097 | $ | 692 | $ | 568 | $ | 452 | $ | 402 | $ | 370 | $ | 1,613 | |||||||||||||||
Note_13_Business_Segment_Infor
Note 13 - Business Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||
13. Business Segment Information | |||||||||
During the fourth quarter of 2013, the Company revised its operating segments, which are organized based on the business leadership views operating the business after the integration of the acquired entities. All prior year segment data has been restated to conform to the new segments. As of March 31, 2014, the Company’s operations were conducted principally through two business segments: Systems Integration and Managed Services. Systems Integration operations include the sale of digital projection equipment, screens, sound systems in addition to the design, assembly and sale of followspots and other lighting products. Managed Services operations include the delivery of end to end digital signage solutions, video communication solutions, content creation and management and service of digital signage and digital cinema equipment. The Company allocates resources to business segments and evaluates the performance of these segments based upon reported segment operating profit. The Company records intercompany sales at cost and has eliminated all significant intercompany sales in consolidation. | |||||||||
Summary by Business Segments | |||||||||
Three Months Ended March 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Net revenue | |||||||||
Systems Integration | $ | 14,020 | $ | 25,497 | |||||
Managed Services | 8,398 | 2,486 | |||||||
Total segment net revenue | 22,418 | 27,983 | |||||||
Eliminations | 397 | 362 | |||||||
Total net revenue | 22,021 | 27,621 | |||||||
Operating income (loss) | |||||||||
Systems Integration | 830 | 2,124 | |||||||
Managed Services | 473 | 24 | |||||||
Total segment operating income | 1,303 | 2,148 | |||||||
Unallocated general and administrative expenses | (2,526 | ) | (1,601 | ) | |||||
Interest, net | 168 | 15 | |||||||
Gain on sale of assets | 7 | 2 | |||||||
Equity in income (loss) of joint venture | 95 | (106 | ) | ||||||
Other expense, net | 209 | 248 | |||||||
Income (loss) before income taxes | $ | (744 | ) | $ | 706 | ||||
(In thousands) | 31-Mar-14 | 31-Dec-13 | |||||||
Identifiable assets | |||||||||
Systems Integration | $ | 62,863 | $ | 67,839 | |||||
Managed Services | 25,848 | 27,605 | |||||||
Total | $ | 88,711 | $ | 95,444 | |||||
Summary by Geographical Area | |||||||||
Three Months Ended March 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Net revenue | |||||||||
United States | $ | 15,168 | $ | 17,575 | |||||
China | 3,327 | 3,182 | |||||||
Latin America | 1,551 | 5,967 | |||||||
Canada | 1,457 | 505 | |||||||
Mexico | 312 | 118 | |||||||
Europe | 180 | 73 | |||||||
Asia (excluding China) | 25 | 163 | |||||||
Other | 1 | 38 | |||||||
Total | $ | 22,021 | $ | 27,621 | |||||
(In thousands) | 31-Mar-14 | 31-Dec-13 | |||||||
Identifiable assets | |||||||||
United States | $ | 49,899 | $ | 51,882 | |||||
Canada | 26,043 | 28,463 | |||||||
China | 8,269 | 5,526 | |||||||
Asia (excluding China) | 4,500 | 9,573 | |||||||
Total | $ | 88,711 | $ | 95,444 | |||||
Net revenues by business segment are to unaffiliated customers. Identifiable assets by geographical area are based on location of facilities. Net sales by geographical area are based on destination of sales. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of Presentation and Principles of Consolidation [Policy Text Block] | ' | ||||||||||||||||
Basis of Presentation and Principles of Consolidation | |||||||||||||||||
The condensed consolidated financial statements include the accounts of the Company and all majority owned and controlled domestic and foreign subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||
The condensed consolidated financial statements included in this report are presented in accordance with the requirements of Form 10-Q and consequently do not include all of the disclosures normally required by accounting principles generally accepted in the United States of America for annual reporting purposes or those made in the Company’s Annual Report on Form 10-K. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year-ended December 31, 2013. | |||||||||||||||||
The condensed consolidated balance sheet as of December 31, 2013 was derived from the Company’s audited consolidated balance sheet as of that date. All other condensed consolidated financial statements contained herein are unaudited and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary to present a fair statement of the financial position and the results of operations and cash flows for the respective interim periods. The results for interim periods are not necessarily indicative of trends or results expected for a full year. | |||||||||||||||||
Business Combinations Policy [Policy Text Block] | ' | ||||||||||||||||
Acquisitions | |||||||||||||||||
On September 13, 2013, the Company acquired Peintures Elite, Inc., a manufacturer of paint and lacquer products and the primary provider of paint used in the Company’s screen manufacturing. On October 1, 2013, the Company acquired CMS to provide digital technologies for out-of-home messaging, advertising and communication (the DOOH market) and Enterprise Video Solutions (“EVS”), which provides enterprises with the infrastructure necessary for communications, collaboration, training and education of employees. | |||||||||||||||||
The condensed consolidated financial statements as of December 31, 2013, March 31, 2014, and for the three-month period ended March 31, 2014, include amounts acquired from, as well as the results of operations of Peintures and CMS. Peintures is included in the systems integration segment and CMS is included in the managed services segment. | |||||||||||||||||
Reclassification, Policy [Policy Text Block] | ' | ||||||||||||||||
Reclassifications | |||||||||||||||||
Certain prior year amounts presented in the condensed consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation. These reclassifications did not impact the Company’s net income (loss) for 2014 or 2013. | |||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||||||||
Use of Management Estimates | |||||||||||||||||
The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and changes in facts and circumstances may alter such estimates and affect results of operations and financial position in future periods. | |||||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||||||||||||||||
Fair Value of Financial and Derivative Instruments | |||||||||||||||||
The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: | |||||||||||||||||
● | Level 1 - inputs to the valuation techniques are quoted prices in active markets for identical assets or liabilities | ||||||||||||||||
● | Level 2 - inputs to the valuation techniques are other than quoted prices but are observable for the assets or liabilities, either directly or indirectly | ||||||||||||||||
● | Level 3 - inputs to the valuation techniques are unobservable for the assets or liabilities | ||||||||||||||||
The following tables present the Company’s financial assets and liabilities measured at fair value based upon the level within the fair value hierarchy in which the fair value measurements fall. | |||||||||||||||||
Fair values measured on a recurring basis at March 31, 2014: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 25,491 | $ | — | $ | — | $ | 25,491 | |||||||||
Note receivable | $ | — | $ | — | $ | 2,611 | $ | 2,611 | |||||||||
Foreign exchange forward contract asset | $ | — | $ | 11,961 | $ | — | $ | 11,961 | |||||||||
Foreign exchange forward contract liability | $ | — | $ | (12,000 | ) | $ | — | $ | (12,000 | ) | |||||||
Fair values measured on a recurring basis at December 31, 2013: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 28,791 | $ | — | $ | — | $ | 28,791 | |||||||||
Note receivable | $ | — | $ | — | $ | 2,497 | $ | 2,497 | |||||||||
Foreign exchange forward contract asset | $ | — | $ | 10,934 | $ | — | $ | 10,934 | |||||||||
Foreign exchange forward contract liability | $ | — | $ | (11,000 | ) | $ | — | $ | (11,000 | ) | |||||||
The note receivable accrue interest at a rate of 15% per annum which is paid in accordance with an agreed-upon cash flow schedule. | |||||||||||||||||
Quantitative information about the Company’s level 3 fair value measurements at March 31, 2014 is set forth below: | |||||||||||||||||
$ in thousands | Fair Value at | Valuation Technique | Unobservable input | Range | |||||||||||||
3/31/14 | |||||||||||||||||
Note receivable | $ | 2,611 | Discounted cash flow | Probability of default | 0 | % | |||||||||||
Prepayment rates | 0 | % | |||||||||||||||
Loss severity | 0 | % | |||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Company’s notes receivable are prepayment rates, probability of default and loss severity in the event of default. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and directionally opposite change in the assumption used for prepayment rates. | |||||||||||||||||
The following table reconciles the beginning and ending balance of the Company’s Note Receivable fair value: | |||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
$ in thousands | |||||||||||||||||
Note receivable balance, beginning of period | $ | 2,497 | $ | 2,232 | |||||||||||||
Interest income accrued | 114 | — | |||||||||||||||
Note receivable balance, end of period | $ | 2,611 | $ | 2,232 | |||||||||||||
The carrying values of all other financial assets and liabilities including accounts receivable, accounts payable and accrued expenses reported in the consolidated balance sheets equal or approximate their fair values due to the short-term nature of these instruments. All non-financial assets that are not recognized or disclosed at fair value in the financial statements on a recurring basis, which includes non-financial long-lived assets, are measured at fair value in certain circumstances (for example, when there is evidence of impairment). During the quarter ended March 31, 2014 we did not have any significant non-recurring measurements of non-financial assets or liabilities. | |||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||||||
There are no recently issued accounting pronouncements which the Company believes will materially impact its consolidated financial statements. |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 25,491 | $ | — | $ | — | $ | 25,491 | |||||||||
Note receivable | $ | — | $ | — | $ | 2,611 | $ | 2,611 | |||||||||
Foreign exchange forward contract asset | $ | — | $ | 11,961 | $ | — | $ | 11,961 | |||||||||
Foreign exchange forward contract liability | $ | — | $ | (12,000 | ) | $ | — | $ | (12,000 | ) | |||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(in thousands) | |||||||||||||||||
Cash and cash equivalents | $ | 28,791 | $ | — | $ | — | $ | 28,791 | |||||||||
Note receivable | $ | — | $ | — | $ | 2,497 | $ | 2,497 | |||||||||
Foreign exchange forward contract asset | $ | — | $ | 10,934 | $ | — | $ | 10,934 | |||||||||
Foreign exchange forward contract liability | $ | — | $ | (11,000 | ) | $ | — | $ | (11,000 | ) | |||||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | ' | ||||||||||||||||
$ in thousands | Fair Value at | Valuation Technique | Unobservable input | Range | |||||||||||||
3/31/14 | |||||||||||||||||
Note receivable | $ | 2,611 | Discounted cash flow | Probability of default | 0 | % | |||||||||||
Prepayment rates | 0 | % | |||||||||||||||
Loss severity | 0 | % | |||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||||||||||||||
Three months ended | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
$ in thousands | |||||||||||||||||
Note receivable balance, beginning of period | $ | 2,497 | $ | 2,232 | |||||||||||||
Interest income accrued | 114 | — | |||||||||||||||
Note receivable balance, end of period | $ | 2,611 | $ | 2,232 |
Note_3_Earnings_Loss_Per_Commo1
Note 3 - Earnings (Loss) Per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands, except per share data) | |||||||||
Basic earnings (loss) per share: | |||||||||
Earnings (loss) applicable to common stock | $ | (594 | ) | $ | 565 | ||||
Basic weighted average common shares outstanding | 14,026 | 13,979 | |||||||
Basic earnings (loss) per share | $ | (0.04 | ) | $ | 0.04 | ||||
Diluted earnings (loss) per share: | |||||||||
Earnings (loss) applicable to common stock | $ | (594 | ) | $ | 565 | ||||
Basic weighted average common shares outstanding | 14,026 | 13,979 | |||||||
Dilutive effect of stock options and restricted stock awards | — | 44 | |||||||
Dilutive weighted average common shares outstanding | 14,026 | 14,023 | |||||||
Diluted earnings (loss) per share | $ | (0.04 | ) | $ | 0.04 |
Note_4_Warranty_Reserves_Table
Note 4 - Warranty Reserves (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Product Warranties Disclosures [Abstract] | ' | ||||||||
Schedule of Product Warranty Liability [Table Text Block] | ' | ||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Warranty accrual at beginning of period | $ | 662 | $ | 770 | |||||
Charged to expense | 36 | 56 | |||||||
Amounts written off, net of recoveries | (149 | ) | (68 | ) | |||||
Foreign currency adjustment | (5 | ) | 2 | ||||||
Warranty accrual at end of period | $ | 544 | $ | 760 |
Note_6_Goodwill_Tables
Note 6 - Goodwill (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Schedule of Goodwill [Table Text Block] | ' | ||||
Balance as of December 31, 2013 | $ | 1,123 | |||
Foreign currency translation | (43 | ) | |||
Balance as of March 31, 2014 | $ | 1,080 |
Note_7_Restructuring_Activitie1
Note 7 - Restructuring Activities (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Restructuring and Related Activities [Abstract] | ' | ||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | ||||
(in thousands) | |||||
Accrued liability at beginning of period | $ | 896 | |||
Severance paid | (148 | ) | |||
Site closure costs paid | (58 | ) | |||
Accrued liability at end of period | $ | 690 |
Note_10_Stock_Based_Compensati1
Note 10 - Stock Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||||||||||||
Exercise Price | Remaining | Value | |||||||||||||||||||||||||
Per Share | Contractual | (in thousands) | |||||||||||||||||||||||||
Term | |||||||||||||||||||||||||||
Outstanding at December 31, 2013 | 213,700 | $ | 5.42 | 7.84 | $ | 26 | |||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||
Exercised | — | — | |||||||||||||||||||||||||
Forfeited | — | — | |||||||||||||||||||||||||
Outstanding at March 31, 2014 | 213,700 | $ | 5.42 | 7.59 | $ | 27 | |||||||||||||||||||||
Exercisable at March 31, 2014 | 129,200 | $ | 6.02 | 7.35 | $ | 10 | |||||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||||||||||||||||||||||
Options Outstanding at | Options Exercisable at | ||||||||||||||||||||||||||
31-Mar-14 | 31-Mar-14 | ||||||||||||||||||||||||||
Range of option exercise price | Number of | Weighted | Weighted | Number of | Weighted | Weighted | |||||||||||||||||||||
options | average | average | options | average | average | ||||||||||||||||||||||
remaining | exercise price | remaining | exercise price | ||||||||||||||||||||||||
contractual | per option | contractual | per option | ||||||||||||||||||||||||
life | life | ||||||||||||||||||||||||||
$3.55 | to | 8.32 | 213,700 | 7.59 | $ | 5.42 | 129,200 | 7.35 | $ | 6.02 | |||||||||||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | ' | ||||||||||||||||||||||||||
Number of Restricted | Weighted Average Grant | ||||||||||||||||||||||||||
Stock Shares | Price Fair Value | ||||||||||||||||||||||||||
Non-vested at December 31, 2013 | 129,500 | $ | 4.42 | ||||||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||||||
Shares vested | (30,667 | ) | 4.28 | ||||||||||||||||||||||||
Shares forfeited | — | — | |||||||||||||||||||||||||
Non-vested at March 31, 2014 | 98,833 | $ | 4.46 |
Note_11_Foreign_Exchange_Contr1
Note 11 - Foreign Exchange Contracts (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Foreign Currency [Abstract] | ' | ||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | ||||||||||
Asset Derivatives | |||||||||||
(in thousands) | Classification | March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||||
Foreign exchange forward contracts | Other current assets | $ | 11,961 | $ | 10,934 | ||||||
Liability Derivatives | |||||||||||
(in thousands) | Classification | March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||||
Foreign exchange forward contracts | Other current liabilities | $ | 12,000 | $ | 11,000 | ||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | ' | ||||||||||
Three Months Ended March 31, | |||||||||||
(in thousands) | Classification | 2014 | 2013 | ||||||||
Foreign exchange forward contracts | Other Income (Loss) | $ | (348 | ) | $ | — |
Note_12_Contingencies_and_Conc1
Note 12 - Contingencies and Concentrations (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||||||||||||||||||||||||||
Payments due by period ($ in thousands) | |||||||||||||||||||||||||||||
Total | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||||||
Remainder | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Operating leases | $ | 4,097 | $ | 692 | $ | 568 | $ | 452 | $ | 402 | $ | 370 | $ | 1,613 |
Note_13_Business_Segment_Infor1
Note 13 - Business Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Note 13 - Business Segment Information (Tables) [Line Items] | ' | ||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||
Three Months Ended March 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Net revenue | |||||||||
Systems Integration | $ | 14,020 | $ | 25,497 | |||||
Managed Services | 8,398 | 2,486 | |||||||
Total segment net revenue | 22,418 | 27,983 | |||||||
Eliminations | 397 | 362 | |||||||
Total net revenue | 22,021 | 27,621 | |||||||
Operating income (loss) | |||||||||
Systems Integration | 830 | 2,124 | |||||||
Managed Services | 473 | 24 | |||||||
Total segment operating income | 1,303 | 2,148 | |||||||
Unallocated general and administrative expenses | (2,526 | ) | (1,601 | ) | |||||
Interest, net | 168 | 15 | |||||||
Gain on sale of assets | 7 | 2 | |||||||
Equity in income (loss) of joint venture | 95 | (106 | ) | ||||||
Other expense, net | 209 | 248 | |||||||
Income (loss) before income taxes | $ | (744 | ) | $ | 706 | ||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | ||||||||
Three Months Ended March 31, | |||||||||
(In thousands) | 2014 | 2013 | |||||||
Net revenue | |||||||||
United States | $ | 15,168 | $ | 17,575 | |||||
China | 3,327 | 3,182 | |||||||
Latin America | 1,551 | 5,967 | |||||||
Canada | 1,457 | 505 | |||||||
Mexico | 312 | 118 | |||||||
Europe | 180 | 73 | |||||||
Asia (excluding China) | 25 | 163 | |||||||
Other | 1 | 38 | |||||||
Total | $ | 22,021 | $ | 27,621 | |||||
Schedule of Assets by Geographical Areas | ' | ||||||||
(In thousands) | 31-Mar-14 | 31-Dec-13 | |||||||
Identifiable assets | |||||||||
United States | $ | 49,899 | $ | 51,882 | |||||
Canada | 26,043 | 28,463 | |||||||
China | 8,269 | 5,526 | |||||||
Asia (excluding China) | 4,500 | 9,573 | |||||||
Total | $ | 88,711 | $ | 95,444 | |||||
Assets [Member] | ' | ||||||||
Note 13 - Business Segment Information (Tables) [Line Items] | ' | ||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||
(In thousands) | 31-Mar-14 | 31-Dec-13 | |||||||
Identifiable assets | |||||||||
Systems Integration | $ | 62,863 | $ | 67,839 | |||||
Managed Services | 25,848 | 27,605 | |||||||
Total | $ | 88,711 | $ | 95,444 |
Note_2_Summary_of_Significant_2
Note 2 - Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Text Block [Abstract] | ' |
Time Sharing Transactions, Weighted Average of Stated Interest Rates for Notes Receivable | 15.00% |
Note_2_Summary_of_Significant_3
Note 2 - Summary of Significant Accounting Policies (Details) - Fair Value Measured Financial Assets and Liabilities (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 2 - Summary of Significant Accounting Policies (Details) - Fair Value Measured Financial Assets and Liabilities [Line Items] | ' | ' |
Cash and cash equivalents | $25,491 | $28,791 |
Notes Receivable | 2,611 | 2,497 |
Foreign exchange forward contract asset | 11,961 | 10,934 |
Foreign exchange forward contract liability | -12,000 | -11,000 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Note 2 - Summary of Significant Accounting Policies (Details) - Fair Value Measured Financial Assets and Liabilities [Line Items] | ' | ' |
Cash and cash equivalents | 25,491 | 28,791 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Note 2 - Summary of Significant Accounting Policies (Details) - Fair Value Measured Financial Assets and Liabilities [Line Items] | ' | ' |
Foreign exchange forward contract asset | 11,961 | 10,934 |
Foreign exchange forward contract liability | -12,000 | -11,000 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Note 2 - Summary of Significant Accounting Policies (Details) - Fair Value Measured Financial Assets and Liabilities [Line Items] | ' | ' |
Notes Receivable | $2,611 | $2,497 |
Note_2_Summary_of_Significant_4
Note 2 - Summary of Significant Accounting Policies (Details) - Quantitative Information About Company's Level 3 Fair Value Measurements (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Quantitative Information About Company's Level 3 Fair Value Measurements [Abstract] | ' | ' |
Note receivable (in Dollars) | $2,611 | $2,497 |
Note receivable | 0.00% | ' |
0.00% | ' | |
0.00% | ' |
Note_2_Summary_of_Significant_5
Note 2 - Summary of Significant Accounting Policies (Details) - Notes Receivable Reconciliation (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 |
Notes Receivable Reconciliation [Abstract] | ' | ' | ' |
Note receivable balance, beginning of period | $2,497 | $2,232 | $2,232 |
Note receivable balance, end of period | 2,611 | 2,232 | 2,232 |
Interest income accrued | $114 | ' | ' |
Note_3_Earnings_Loss_Per_Commo2
Note 3 - Earnings (Loss) Per Common Share (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Note 3 - Earnings (Loss) Per Common Share (Details) [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 50,000 | 191,200 |
Stock Option1 [Member] | ' | ' |
Note 3 - Earnings (Loss) Per Common Share (Details) [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 48,486 | ' |
Note_3_Earnings_Loss_Per_Commo3
Note 3 - Earnings (Loss) Per Common Share (Details) - Reconciliation Between Basic and Diluted Earnings Per Share (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Reconciliation Between Basic and Diluted Earnings Per Share [Abstract] | ' | ' |
Earnings (loss) applicable to common stock (in Dollars) | ($594) | $565 |
Basic weighted average common shares outstanding | 14,026 | 13,979 |
Dilutive effect of stock options and restricted stock awards | ' | 44 |
Dilutive weighted average common shares outstanding | 14,026 | 14,023 |
Diluted earnings (loss) per share (in Dollars per share) | ($0.04) | $0.04 |
Basic earnings (loss) per share (in Dollars per share) | ($0.04) | $0.04 |
Note_4_Warranty_Reserves_Detai
Note 4 - Warranty Reserves (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Product Warranties Disclosures [Abstract] | ' |
Product Warranty Period for Sold Equipment | '1 year |
Note_4_Warranty_Reserves_Detai1
Note 4 - Warranty Reserves (Details) - Warranty Reserves (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Warranty Reserves [Abstract] | ' | ' |
Warranty accrual at beginning of period | $662 | $770 |
Charged to expense | 36 | 56 |
Amounts written off, net of recoveries | -149 | -68 |
Foreign currency adjustment | -5 | 2 |
Warranty accrual at end of period | $544 | $760 |
Note_5_Digital_Link_II_Joint_V1
Note 5 - Digital Link II Joint Venture (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 06, 2007 | |
Note 5 - Digital Link II Joint Venture (Details) [Line Items] | ' | ' | ' |
Number of Members of Joint Venture | ' | ' | 2 |
Equity Method Investment, Ownership Percentage | ' | ' | 44.40% |
Joint Venture Ownership Percentage by Partner in Venture | ' | ' | 55.60% |
Number of Tranche in Period | 4 | ' | ' |
Number of Weeks in Each Tranche of Period | '91 days | ' | ' |
Length of Fiscal Year | '364 days | ' | ' |
Income (Loss) from Equity Method Investments | $95,000 | ($106,000) | ' |
Joint Venture II [Member] | ' | ' | ' |
Note 5 - Digital Link II Joint Venture (Details) [Line Items] | ' | ' | ' |
Income (Loss) from Equity Method Investments | 100,000 | -100,000 | ' |
Sales to Equity Method Investee | $0 | $0 | ' |
Note_6_Goodwill_Details_Carryi
Note 6 - Goodwill (Details) - Carrying Amount of Goodwill (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Carrying Amount of Goodwill [Abstract] | ' |
Balance | $1,123 |
Foreign currency translation | -43 |
Balance | $1,080 |
Note_7_Restructuring_Activitie2
Note 7 - Restructuring Activities (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Expected to Incur in Relation to Integration [Member] | Convergent 2013 Related Severance [Member] | ' |
Note 7 - Restructuring Activities (Details) [Line Items] | ' |
Severance Costs | $1.40 |
Closure of Omaha Warehouse [Member] | ' |
Note 7 - Restructuring Activities (Details) [Line Items] | ' |
Other Restructuring Costs | $0.06 |
Note_7_Restructuring_Activitie3
Note 7 - Restructuring Activities (Details) - Restructuring Activities (Convergent 2013 Related Severance [Member], USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 30, 2014 | Mar. 30, 2014 | Mar. 30, 2014 | Dec. 31, 2013 |
Employee Severance [Member] | Facility Closing [Member] | |||
Note 7 - Restructuring Activities (Details) - Restructuring Activities [Line Items] | ' | ' | ' | ' |
Accrued liability at beginning of period | ' | ' | $690 | $896 |
Restructing accrued expenses | -148 | -58 | ' | ' |
Accrued liability at end of period | ' | ' | $690 | $896 |
Note_8_Debt_Details
Note 8 - Debt (Details) (USD $) | Mar. 31, 2014 |
Note 8 - Debt (Details) [Line Items] | ' |
Line of Credit Facility, Additional Borrowing Capacity | $5,000,000 |
Revolving Credit Facility [Member] | ' |
Note 8 - Debt (Details) [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 20,000,000 |
Line of Credit Facility, Remaining Borrowing Capacity | 20,000,000 |
Minimum [Member] | ' |
Note 8 - Debt (Details) [Line Items] | ' |
Line of Credit Facility, Restriction, Income Before Taxes | $1 |
Note_9_Income_Taxes_Details
Note 9 - Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Effective Income Tax Rate Reconciliation, Percent | 20.20% | 20.00% |
Unrecognized Tax Benefits (in Dollars) | $0.10 | ' |
Note_10_Stock_Based_Compensati2
Note 10 - Stock Based Compensation (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Note 10 - Stock Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation | $101,000 | $95,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 200,000 | ' |
Employee Stock Option [Member] | ' | ' |
Note 10 - Stock Based Compensation (Details) [Line Items] | ' | ' |
Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition | '1 year 292 days | ' |
Restricted Stock [Member] | Restricted Stock Plan 2005 [Member] | ' | ' |
Note 10 - Stock Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 250,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in Shares) | ' | 0 |
Restricted Stock [Member] | ' | ' |
Note 10 - Stock Based Compensation (Details) [Line Items] | ' | ' |
Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition | '1 year 292 days | ' |
Share Based Compensation Nonvested Awards Total Cost Not Yet Recognized Share Based Awards Other Than Options | 300,000 | ' |
Selling, General and Administrative Expenses [Member] | ' | ' |
Note 10 - Stock Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation | $100,000 | $100,000 |
2010 Plan [Member] | ' | ' |
Note 10 - Stock Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 600,000 | ' |
Note_10_Stock_Based_Compensati3
Note 10 - Stock Based Compensation (Details) - Stock Options Activities (USD $) | 0 Months Ended | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2014 |
Stock Options Activities [Abstract] | ' | ' |
Outstanding Number of Options | 213,700 | 213,700 |
Outstanding Weighted Average Exercise Price Per Share | $5.42 | $5.42 |
Outstanding Weighted Average Remaining Contractual Term | '7 years 306 days | '7 years 215 days |
Outstanding Aggregate Intrinsic Value | $26 | $27 |
Exercisable at March 31, 2014 | ' | 129,200 |
Exercisable at March 31, 2014 | ' | $6.02 |
Exercisable at March 31, 2014 | ' | '7 years 127 days |
Exercisable at March 31, 2014 | ' | $10 |
Note_10_Stock_Based_Compensati4
Note 10 - Stock Based Compensation (Details) - Information About Stock Options Outstanding and Exercisable (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Information About Stock Options Outstanding and Exercisable [Abstract] | ' |
$3.55 | |
$8.32 | |
(in Shares) | 213,700 |
'7 years 215 days | |
$5.42 | |
(in Shares) | 129,200 |
'7 years 127 days | |
$6.02 |
Note_10_Stock_Based_Compensati5
Note 10 - Stock Based Compensation (Details) - Restricted Stock Activity (Restricted Stock [Member], USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Restricted Stock [Member] | ' |
Note 10 - Stock Based Compensation (Details) - Restricted Stock Activity [Line Items] | ' |
Number of Restricted Stock Shares | 129,500 |
Weighted Average Grant Price Fair Value | $4.42 |
Shares vested | -30,667 |
Shares vested | $4.28 |
Number of Restricted Stock Shares | 98,833 |
Weighted Average Grant Price Fair Value | $4.46 |
Note_11_Foreign_Exchange_Contr2
Note 11 - Foreign Exchange Contracts (Details) - Gross Fair Value of Derivative Instruments Not Designated As Hedging (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign exchange forward contracts | $11,961 | $10,934 |
Other Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign exchange forward contracts | $12,000 | $11,000 |
Note_11_Foreign_Exchange_Contr3
Note 11 - Foreign Exchange Contracts (Details) - Realized and Unrealized Gains From Foreign Currency Forward Exchange Contracts (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Realized and Unrealized Gains From Foreign Currency Forward Exchange Contracts [Abstract] | ' |
Foreign exchange forward contracts | 'Other Income (Loss) |
Foreign exchange forward contracts | ($348) |
Note_12_Contingencies_and_Conc2
Note 12 - Contingencies and Concentrations (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Note 12 - Contingencies and Concentrations (Details) [Line Items] | ' |
Concentration Risk, Number of Customers | 10 |
Top Ten Customers [Member] | Net Revenue [Member] | ' |
Note 12 - Contingencies and Concentrations (Details) [Line Items] | ' |
Concentration Risk, Percentage | 45.00% |
Top Ten Customers [Member] | Accounts Receivable [Member] | ' |
Note 12 - Contingencies and Concentrations (Details) [Line Items] | ' |
Concentration Risk, Percentage | 37.80% |
Note_12_Contingencies_and_Conc3
Note 12 - Contingencies and Concentrations (Details) - Operating Leases Future Minimium Lease Payments (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases Future Minimium Lease Payments [Abstract] | ' |
Operating leases | $4,097 |
Operating leases | 692 |
Operating leases | 568 |
Operating leases | 452 |
Operating leases | 402 |
Operating leases | 370 |
Operating leases | $1,613 |
Note_13_Business_Segment_Infor2
Note 13 - Business Segment Information (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Segment Reporting [Abstract] | ' |
Number of Operating Segments | 2 |
Note_13_Business_Segment_Infor3
Note 13 - Business Segment Information (Details) - Summary of Business Segments (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net revenue | ' | ' |
Net Revenue | $22,021 | $27,621 |
Operating income (loss) | ' | ' |
Operating Income | -1,216 | 549 |
Unallocated general and administrative expenses | -3,893 | -2,501 |
Interest, net | 168 | 15 |
Gain on sale of assets | 7 | 2 |
Equity in income (loss) of joint venture | 95 | -106 |
Other expense, net | 209 | 248 |
Income (loss) before income taxes | -744 | 706 |
Systems Integration [Member] | ' | ' |
Net revenue | ' | ' |
Net Revenue | 14,020 | 25,497 |
Operating income (loss) | ' | ' |
Operating Income | 830 | 2,124 |
Managed Services [Member] | ' | ' |
Net revenue | ' | ' |
Net Revenue | 8,398 | 2,486 |
Operating income (loss) | ' | ' |
Operating Income | 473 | 24 |
Segment Net Revenue [Member] | ' | ' |
Net revenue | ' | ' |
Net Revenue | 22,418 | 27,983 |
Consolidation, Eliminations [Member] | ' | ' |
Net revenue | ' | ' |
Net Revenue | 397 | 362 |
Total Segment Operating Income [Member] | ' | ' |
Operating income (loss) | ' | ' |
Operating Income | 1,303 | 2,148 |
Segment Reconciling Items [Member] | ' | ' |
Operating income (loss) | ' | ' |
Unallocated general and administrative expenses | ($2,526) | ($1,601) |
Note_13_Business_Segment_Infor4
Note 13 - Business Segment Information (Details) - Summary of Identifiable Assets By Business Segment (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Identifiable assets | $88,711 | $95,444 |
Systems Integration [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Identifiable assets | 62,863 | 67,839 |
Managed Services [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Identifiable assets | $25,848 | $27,605 |
Note_13_Business_Segment_Infor5
Note 13 - Business Segment Information (Details) - Summary of Net Revenue by Geographical Area (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net revenue | ' | ' |
Net Revenue | $22,021 | $27,621 |
UNITED STATES | ' | ' |
Net revenue | ' | ' |
Net Revenue | 15,168 | 17,575 |
CHINA | ' | ' |
Net revenue | ' | ' |
Net Revenue | 3,327 | 3,182 |
Latin America [Member] | ' | ' |
Net revenue | ' | ' |
Net Revenue | 1,551 | 5,967 |
CANADA | ' | ' |
Net revenue | ' | ' |
Net Revenue | 1,457 | 505 |
MEXICO | ' | ' |
Net revenue | ' | ' |
Net Revenue | 312 | 118 |
Europe [Member] | ' | ' |
Net revenue | ' | ' |
Net Revenue | 180 | 73 |
Asia Excluding China [Member] | ' | ' |
Net revenue | ' | ' |
Net Revenue | 25 | 163 |
Other Countries [Member] | ' | ' |
Net revenue | ' | ' |
Net Revenue | $1 | $38 |
Note_13_Business_Segment_Infor6
Note 13 - Business Segment Information (Details) - Summary of Identifiable Assets By Geographical Area (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Identifiable assets | ' | ' |
Identifiable Assets | $88,711 | $95,444 |
UNITED STATES | ' | ' |
Identifiable assets | ' | ' |
Identifiable Assets | 49,899 | 51,882 |
CANADA | ' | ' |
Identifiable assets | ' | ' |
Identifiable Assets | 26,043 | 28,463 |
CHINA | ' | ' |
Identifiable assets | ' | ' |
Identifiable Assets | 8,269 | 5,526 |
Asia Excluding China [Member] | ' | ' |
Identifiable assets | ' | ' |
Identifiable Assets | $4,500 | $9,573 |