Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.5.0.2
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Deferred Profit
The components of deferred profit are as follows:
 
 
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:
 
 
Years Ended September 30,
 
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.
Schedule of Inventory, Current
The components of inventories are as follows:
 
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:
 
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.
 
Solar
 
Semiconductor
 
Polishing
 
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:
 
 
Useful Life
 
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
 
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
 
 
 
Years Ended September 30,
 
 
 
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:
 
 
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
 
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:
 
 
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:
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

 
 
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:
 
 
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:

 
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