Summary of Significant Accounting Policies (Tables)
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12 Months Ended |
Sep. 30, 2016 |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] |
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| Deferred Profit |
The components of deferred profit are as follows:
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September 30, |
|
2016 |
|
2015 |
|
2014 |
|
(dollars in thousands) |
Deferred revenue |
$ |
7,029 |
|
|
$ |
7,280 |
|
|
$ |
8,118 |
|
Deferred costs |
2,320 |
|
|
2,407 |
|
|
1,210 |
|
Deferred profit |
$ |
4,709 |
|
|
$ |
4,873 |
|
|
$ |
6,908 |
|
|
| Allowance For Doubtful Accounts |
The following is a summary of the activity in the Company’s allowance for doubtful accounts:
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Years Ended September 30, |
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2016 |
|
2015 |
|
2014 |
|
(dollars in thousands) |
Balance at beginning of year |
$ |
5,009 |
|
|
$ |
2,846 |
|
|
$ |
638 |
|
Provision / (Reversal) |
1,698 |
|
|
(194 |
) |
|
1,304 |
|
Write offs |
(1,942 |
) |
|
(130 |
) |
|
(13 |
) |
Acquired through business acquisitions |
— |
|
|
1,397 |
|
|
— |
|
Adjustment (1) (2) (3)
|
(1,035 |
) |
|
1,090 |
|
|
917 |
|
Balance at end of year |
$ |
3,730 |
|
|
$ |
5,009 |
|
|
$ |
2,846 |
|
(1) 2014 relates to an unbilled accounts receivable that was legally owed to the Company but was deemed uncollectible when the customer entered into bankruptcy proceedings. To allow for submission of billings to the courts, amounts were invoiced and fully reserved.
(2) 2015 amount primarily relates to cancellation fees that were legally owed to the Company but for which collectability was not assured. A portion of these fees were collected in 2016, and the remainder were written off.
(3) Includes foreign currency translation adjustments.
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| Schedule of Inventory, Current |
The components of inventories are as follows:
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September 30, 2016 |
|
September 30, 2015 |
|
(dollars in thousands) |
Purchased parts and raw materials |
$ |
12,435 |
|
|
$ |
11,587 |
|
Work-in-process |
7,044 |
|
|
5,089 |
|
Finished goods |
3,744 |
|
|
6,653 |
|
|
$ |
23,223 |
|
|
$ |
23,329 |
|
|
| Property, Plant and Equipment |
The following is a summary of property, plant and equipment:
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|
|
|
|
September 30, 2016 |
|
September 30, 2015 |
|
(dollars in thousands) |
Land, building and leasehold improvements |
$ |
18,255 |
|
|
$ |
18,095 |
|
Equipment and machinery |
9,056 |
|
|
9,709 |
|
Furniture and fixtures |
5,426 |
|
|
5,465 |
|
|
32,737 |
|
|
33,269 |
|
Accumulated depreciation and amortization |
(16,777 |
) |
|
(15,508 |
) |
|
$ |
15,960 |
|
|
$ |
17,761 |
|
|
| Schedule of Goodwill |
The changes in the carrying amount of goodwill for the year ended September 30, 2016 are as follows.
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Solar |
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Semiconductor |
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Polishing |
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Total |
|
(dollars in thousands) |
Goodwill |
$ |
6,617 |
|
|
$ |
4,463 |
|
|
$ |
728 |
|
|
$ |
11,808 |
|
Accumulated impairment losses |
(1,273 |
) |
|
— |
|
|
— |
|
|
(1,273 |
) |
Carrying value at September 30, 2015 |
5,344 |
|
|
4,463 |
|
|
728 |
|
|
10,535 |
|
Reallocation of goodwill |
— |
|
|
600 |
|
|
— |
|
|
600 |
|
Net exchange differences |
(16 |
) |
|
— |
|
|
— |
|
|
(16 |
) |
Carrying value at September 30, 2016 |
$ |
5,328 |
|
|
$ |
5,063 |
|
|
$ |
728 |
|
|
$ |
11,119 |
|
|
|
|
|
|
|
|
|
Goodwill |
$ |
6,597 |
|
|
$ |
5,063 |
|
|
$ |
728 |
|
|
$ |
12,388 |
|
Accumulated impairment losses |
(1,269 |
) |
|
— |
|
|
— |
|
|
(1,269 |
) |
Carrying value at September 30, 2016 |
$ |
5,328 |
|
|
$ |
5,063 |
|
|
$ |
728 |
|
|
$ |
11,119 |
|
|
| Schedule of Finite-Lived Intangible Assets |
The following is a summary of intangibles:
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Useful Life |
|
Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Amount |
|
Gross Carrying Amount |
Accumulated Amortization |
Net Carrying Amount |
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|
Years Ended September 30, |
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|
2016 |
|
2015 |
|
|
|
(dollars in thousands) |
Customer lists |
6-10 years |
|
$ |
2,432 |
|
$ |
(1,164 |
) |
$ |
1,268 |
|
|
$ |
2,434 |
|
$ |
(808 |
) |
$ |
1,626 |
|
Technology |
5-10 years |
|
3,214 |
|
(1,678 |
) |
1,536 |
|
|
3,223 |
|
(1,368 |
) |
1,855 |
|
Trade names |
10-15 Years |
|
1,455 |
|
(219 |
) |
1,236 |
|
|
1,456 |
|
(72 |
) |
1,384 |
|
Other |
2-10 years |
|
277 |
|
(217 |
) |
60 |
|
|
278 |
|
(204 |
) |
74 |
|
|
|
|
$ |
7,378 |
|
$ |
(3,278 |
) |
$ |
4,100 |
|
|
$ |
7,391 |
|
$ |
(2,452 |
) |
$ |
4,939 |
|
|
| Schedule of Product Warranty Liability |
The following is a summary of activity in accrued warranty expense:
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Years Ended September 30, |
|
2016 |
|
2015 |
|
2014 |
|
(dollars in thousands) |
Beginning balance |
$ |
793 |
|
|
$ |
628 |
|
|
$ |
1,454 |
|
Warranty – BTU merger |
— |
|
|
806 |
|
|
— |
|
Additions for warranties issued during the period |
1,074 |
|
|
677 |
|
|
479 |
|
Reductions in the liability for payments made under the warranty |
(832 |
) |
|
(1,007 |
) |
|
(390 |
) |
Changes related to pre-existing warranties |
(250 |
) |
|
(215 |
) |
|
(750 |
) |
Currency translation adjustment |
10 |
|
|
(96 |
) |
|
(165 |
) |
Ending balance |
$ |
795 |
|
|
$ |
793 |
|
|
$ |
628 |
|
|
| Research and Development Expense |
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Years Ended September 30, |
|
2016 |
|
2015 |
|
2014 |
|
(dollars in thousands) |
Research, development and engineering |
$ |
9,535 |
|
|
$ |
13,214 |
|
|
$ |
10,863 |
|
Grants earned |
(1,531 |
) |
|
(6,296 |
) |
|
(4,572 |
) |
Net research, development and engineering |
$ |
8,004 |
|
|
$ |
6,918 |
|
|
$ |
6,291 |
|
|
| Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan |
Stock-based compensation expense for the fiscal years ended September 30, 2016, 2015 and 2014 reduced the Company’s results of operations as follows:
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Years Ended September 30, |
|
2016 |
|
2015 |
|
2014 |
|
(dollars in thousands) |
Effect on income before income taxes (1) |
$ |
(1,390 |
) |
|
$ |
(1,162 |
) |
|
$ |
(795 |
) |
Effect on income taxes |
$ |
186 |
|
|
$ |
221 |
|
|
$ |
326 |
|
Effect on net income |
$ |
(1,204 |
) |
|
$ |
(941 |
) |
|
$ |
(469 |
) |
(1) Stock-based compensation expense is included in selling, general and administrative expense
Stock-based compensation plans are summarized in the table below:
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Name of Plan |
|
Shares Authorized |
|
Shares Available |
|
Options Outstanding |
|
Plan Expiration |
2007 Employee Stock Incentive Plan |
|
3,000,000 |
|
|
722,102 |
|
|
1,603,887 |
|
|
Mar. 2020 |
1998 Employee Stock Option Plan |
|
500,000 |
|
|
— |
|
|
23,210 |
|
|
Jan. 2008 |
Non-Employee Directors Stock Option Plan |
|
500,000 |
|
|
131,600 |
|
|
214,470 |
|
|
Mar. 2020 |
|
|
|
|
|
853,702 |
|
|
1,841,567 |
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| Schedule of the fair value of stock option awards |
The Company estimates the fair value of stock option awards on the date of grant using the Black-Scholes option pricing model using the following assumptions:
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Years Ended September 30, |
|
2016 |
|
2015 |
|
2014 |
Risk free interest rate |
2% |
|
2% |
|
2% |
Expected life |
6 years |
|
6 years |
|
6 years |
Dividend rate |
0% |
|
0% |
|
0% |
Volatility |
63% |
|
67% |
|
69% |
|
| Schedule of Multiemployer Plans |
Below is a table of contributions made by the Company to multiemployer pension plans:
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Contributions |
|
Years Ended September 30, |
|
2016 |
|
2015 |
|
2014 |
|
(dollars in thousands) |
Pensioenfonds Metaal en Techniek (PMT) |
$ |
796 |
|
|
$ |
805 |
|
|
$ |
929 |
|
Other plans |
187 |
|
|
158 |
|
|
158 |
|
Total |
$ |
983 |
|
|
$ |
963 |
|
|
$ |
1,087 |
|
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