x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
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EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
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EXCHANGE ACT OF 1934
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Massachusetts
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04-2441294
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(State of incorporation)
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(I.R.S. Employer Identification No.)
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Title of Each Class
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Name of Exchange of Which Registered
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Common Stock, par value $0.01 per share
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NASDAQ Global Market
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Large accelerated filer
¨
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Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller Reporting Company
x
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Page
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Note: Items 1B, 6 and 7A are not required for Smaller Reporting Companies and therefore are not furnished.
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Item 1.
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Business
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•
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The Systems segment consists primarily of CSPI's MultiComputer Division (the “MultiComputer Division”) which designs and manufactures commercial high-performance computer signal processing systems for a variety of complex real time applications in defense and commercial markets. In our MultiComputer Division we develop open, standards-based, vendor independent, scalable products, based on an architectural solution that is easily integrated with third-party products and compatible with future product offerings. These products utilize cluster technologies, multi-core processors, and many-core General Purpose Graphics Processing Units ("GPGPUs"). MultiComputer systems consist of “blades” (self-contained, high-density computer boards) and are designed to achieve a high level of computer processing and to operate in environments with size, weight and power ("SWaP") limitations. The blades and other components that make up the system can be housed in commercially available air-cooled chassis or in ruggedized chassis, designed to withstand physically demanding environments. These systems have traditionally been utilized for sonar and radar digital signal processing (“DSP”) and image recognition applications. The MultiComputer Division sells all its products through its own direct sales force in the United States and via distributors and authorized resellers in Europe and the Asia-Pacific region.
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•
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The Service and System Integration Segment consists of the computer maintenance, integration services and third-party computer hardware and software value added reseller (“VAR”) businesses of our Modcomp subsidiary (“Modcomp”). Modcomp is a wholly owned subsidiary of CSPI which operates in the United States, Germany and the United Kingdom (the “U.K.”). Modcomp markets and sells services and third party products through its own direct sales force. Modcomp provides solutions and services for complex IT environments including storage and servers, unified communications solutions, IT security solutions and consulting services. Modcomp also provides managed IT services through its network operations center (“NOC”).
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Segment
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2013
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%
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2012
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%
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||||||
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(Amounts in thousands)
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||||||||||||
Systems
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$
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7,000
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8
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%
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$
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11,141
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13
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%
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Service and System Integration
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80,619
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|
92
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%
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73,666
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|
|
87
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%
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||
Total Sales
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|
$
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87,619
|
|
|
100
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%
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$
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84,807
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|
100
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%
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•
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Maintenance and technical support both for third-party products and proprietary Modcomp legacy PCDA systems -hardware and software, operating system and user support.
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•
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Implementation, integration, migration, configuration and installation services.
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•
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Storage area network (“SAN”) solutions. We help our customers implement SAN solutions using products from Hitachi, EMC, HP, DataDomain and NetApp. SANs have advantages over conventional storage architecture. These advantages include cost savings from better utilization of hardware and lower headcount requirements to run and maintain data storage systems, higher availability and faster data access rates resulting in increased productivity.
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•
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Virtualization - We implement virtualization solutions using products from companies such as VMWare. Virtualization allows one computer to do the job of multiple computers by sharing resources of a single computer across multiple environments. With virtual servers and desktops, users can host multiple operating systems and applications, which can eliminate physical and geographical limitations. Other benefits include energy cost savings, lower capital expenditure requirements, high availability of resources, better desktop management, increased security and improved disaster recovery processes.
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•
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Enterprise security intrusion prevention, network access control and unified threat management. Using third-party products from companies like Checkpoint, Juniper Networks and Cisco Systems, our services are designed to ensure data security and integrity through the establishment of virtual private networks, firewalls and other technologies.
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•
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IT security compliance services. We provide services for IT security compliance with personal privacy laws such as HIPAA and internal control regulations under the Sarbanes-Oxley Act.
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•
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Unified communications, wireless and routing and switching solutions using Cisco Systems' products and services.
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•
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Custom software applications and solutions development and support. We develop custom applications to customer specifications using industry standard platforms such as Microsoft.Net, Sharepoint and OnBase. We are a Microsoft Gold Partner.
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•
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NOC managed IT services that include monitoring, reporting and management of alerts for the resolution and preventive general IT and IT security support tasks.
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Item 1A.
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Risk Factors
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•
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cancel multi-year contracts and related orders if funds for contract performance for any subsequent year become unavailable;
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•
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claim rights in systems and software developed by us;
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•
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suspend or debar us from doing business with the federal government or with a governmental agency;
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•
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impose fines and penalties and subject us to criminal prosecution; and
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•
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control or prohibit the export of our data and technology.
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•
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sales in relatively large dollar amounts to a relatively small number of customers;
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•
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competitive pricing programs and volume discounts;
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•
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loss of customers;
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•
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market acceptance of our products;
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•
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product obsolescence;
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•
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general economic conditions;
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•
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change in the mix of products sold;
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•
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whether or not we are able to secure design wins for significant customer systems;
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•
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timing of significant orders;
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•
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delays in completion of internal product development projects;
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•
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delays in shipping our products;
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•
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delays in acceptance testing by customers;
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•
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production delays due to quality programs with outsourced components;
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•
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shortages of components;
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•
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timing of product line transitions;
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•
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declines of revenues from previous generations of products following announcement of replacement products containing more advance technology; and
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•
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fixed nature of our expenditures on personnel, facilities and marketing programs.
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•
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loss of a major customer;
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•
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loss of a major supplier;
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•
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the addition or departure of key personnel;
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•
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variations in our quarterly operating results;
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•
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announcements by us or our competitors of significant contracts, new products or product enhancements;
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•
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acquisitions, distribution partnerships, joint ventures or capital commitments;
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•
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regulatory changes;
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•
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sales of our common stock or other securities in the future;
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•
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changes in market valuations of technology companies; and
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•
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fluctuations in stock market prices and volumes.
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Item 2.
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Properties
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Location
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Principal Use
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Owned or
Leased
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Approximate
Floor Area
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Systems Segment Properties:
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CSP Inc.
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Corporate Headquarters
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Leased
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11,450 S.F.
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43 Manning Road
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Manufacturing, Sales,
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Billerica, MA
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Marketing and
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Administration
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Service and Systems Integration Segment Properties:
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Modcomp, Inc.
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Division Headquarters
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Leased
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15,482 S.F.
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1500 S. Powerline Road
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Sales, Marketing and
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Deerfield Beach, FL
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Administration
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Modcomp, Inc.
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Sales, Marketing and Service
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Leased
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1,356 S.F.
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9155 South Dadeland Blvd, Suite 1112
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Miami, FL
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Modular Computer Systems GmbH
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Sales, Marketing, Service
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Leased
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12,443 S.F.
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Oskar-Jager-Strasse 50
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and Administration
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D-50825 Koln
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Germany
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Modcomp, Ltd.
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Sales, Marketing and
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Leased
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2,490 S.F.
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12a Oaklands Business Park, Fishponds Road
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Administration
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Wokingham Berkshire
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United Kingdom
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Modcomp AG
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Sales, Marketing and Service
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Leased
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323 S.F.
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Gartenstr. 23-27
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D-61352 Bad Homburg
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Germany
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2013
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2012
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||||||||||||
Fiscal Year:
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High
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Low
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High
|
|
Low
|
||||||||
1st Quarter
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$
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6.65
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$
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4.51
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$
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3.73
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$
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3.15
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2nd Quarter
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6.89
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|
|
5.09
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|
|
4.48
|
|
|
3.04
|
|
||||
3rd Quarter
|
9.43
|
|
|
5.36
|
|
|
4.53
|
|
|
3.82
|
|
||||
4th Quarter
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8.94
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|
|
6.62
|
|
|
4.99
|
|
|
3.84
|
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Item 7.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
Systems - the Systems segment consists of our MultiComputer Division which designs, commercially develops and manufactures signal processing computer platforms that are used primarily in military applications and the process control and data acquisition (“PCDA”) proprietary hardware business of our Modcomp subsidiary.
|
•
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Service and System Integration - the Service and System Integration segment includes the computer systems' maintenance and integration services and third-party computer hardware and software products businesses of our Modcomp subsidiary.
|
•
|
Revenue
increase
d by approximately
$2.8 million
, or
3%
, to
$87.6 million
for the
year
ended
September 30, 2013
versus
$84.8 million
for the
year
ended
September 30, 2012
.
|
•
|
For
year
ended
September 30, 2012
we realized income from proceeds of an officer life insurance settlement of approximately $2.1 million. While no such income was recognized in the ended
September 30, 2013
, we did receive the settlement during the current fiscal year.
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•
|
For the
year
ended
September 30, 2013
, we had an operating
profit
of approximately
$0.7 million
versus an operating
profit
of approximately
$5.0 million
for the
year
ended
September 30, 2012
, for a
decrease
of approximately
$4.3 million
.
|
•
|
For the
year
ended
September 30, 2013
, net
income
was approximately
$0.4 million
versus net
income
of approximately
$6.6 million
for the
year
ended
September 30, 2012
, for an
decrease
of approximately
$6.2 million
.
|
•
|
Net cash provided by operating activities was approximately
$0.2 million
for the year ended
September 30, 2013
compared to net cash provided by operating activities of
$6.3 million
for the year ended
September 30, 2012
.
|
|
|
September 30, 2013
|
|
%
of sales
|
|
September 30, 2012
|
|
%
of sales
|
||||||
|
|
(Dollar amounts in thousands)
|
||||||||||||
Sales
|
|
$
|
87,619
|
|
|
100
|
%
|
|
$
|
84,807
|
|
|
100
|
%
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cost of sales
|
|
69,036
|
|
|
79
|
%
|
|
64,386
|
|
|
76
|
%
|
||
Engineering and development
|
|
1,857
|
|
|
2
|
%
|
|
1,720
|
|
|
2
|
%
|
||
Selling, general and administrative
|
|
16,025
|
|
|
18
|
%
|
|
15,847
|
|
|
19
|
%
|
||
Total costs and expenses
|
|
86,918
|
|
|
99
|
%
|
|
81,953
|
|
|
97
|
%
|
||
Income from proceeds of officer life insurance settlement
|
|
—
|
|
|
—
|
%
|
|
2,115
|
|
|
3
|
%
|
||
Operating income
|
|
701
|
|
|
1
|
%
|
|
4,969
|
|
|
6
|
%
|
||
Other expense
|
|
(12
|
)
|
|
—
|
%
|
|
(100
|
)
|
|
—
|
%
|
||
Income before income taxes
|
|
689
|
|
|
1
|
%
|
|
4,869
|
|
|
6
|
%
|
||
Income tax expense (benefit)
|
|
321
|
|
|
—
|
%
|
|
(1,740
|
)
|
|
(2
|
)%
|
||
Net income
|
|
$
|
368
|
|
|
1
|
%
|
|
$
|
6,609
|
|
|
8
|
%
|
|
|
Systems
|
|
Service and
System
Integration
|
|
Total
|
|
% of
Total
|
|||||||
|
|
(Dollar amounts in thousands)
|
|||||||||||||
For the Year Ended September 30, 2013:
|
|
|
|
|
|
|
|
|
|||||||
Product
|
|
$
|
5,483
|
|
|
$
|
60,361
|
|
|
$
|
65,844
|
|
|
75
|
%
|
Services
|
|
1,517
|
|
|
20,258
|
|
|
21,775
|
|
|
25
|
%
|
|||
Total
|
|
$
|
7,000
|
|
|
$
|
80,619
|
|
|
$
|
87,619
|
|
|
100
|
%
|
% of Total
|
|
8
|
%
|
|
92
|
%
|
|
100
|
%
|
|
|
|
|
|
Systems
|
|
Service and
System
Integration
|
|
Total
|
|
% of
Total
|
|||||||
For the Year Ended September 30, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Product
|
|
$
|
4,214
|
|
|
$
|
55,369
|
|
|
$
|
59,583
|
|
|
70
|
%
|
Services
|
|
6,927
|
|
|
18,297
|
|
|
25,224
|
|
|
30
|
%
|
|||
Total
|
|
$
|
11,141
|
|
|
$
|
73,666
|
|
|
$
|
84,807
|
|
|
100
|
%
|
% of Total
|
|
13
|
%
|
|
87
|
%
|
|
100
|
%
|
|
|
|
|
|
Systems
|
|
Service and
System
Integration
|
|
Total
|
|
%
increase
|
|||||||
Increase (Decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Product
|
|
$
|
1,269
|
|
|
$
|
4,992
|
|
|
$
|
6,261
|
|
|
11
|
%
|
Services
|
|
(5,410
|
)
|
|
1,961
|
|
|
(3,449
|
)
|
|
(14
|
)%
|
|||
Total
|
|
$
|
(4,141
|
)
|
|
$
|
6,953
|
|
|
$
|
2,812
|
|
|
3
|
%
|
% increase
|
|
(37
|
)%
|
|
9
|
%
|
|
3
|
%
|
|
|
|
|
|
For the Year ended,
|
|
|
|
|
|||||||||||||||
|
|
September 30, 2013
|
|
%
|
|
September 30, 2012
|
|
%
|
|
$ Increase
(Decrease)
|
|
% Increase
(Decrease)
|
|||||||||
|
|
(Dollar amounts in thousands)
|
|||||||||||||||||||
Americas
|
|
$
|
59,116
|
|
|
68
|
%
|
|
$
|
47,163
|
|
|
56
|
%
|
|
$
|
11,953
|
|
|
25
|
%
|
Europe
|
|
25,512
|
|
|
29
|
%
|
|
34,053
|
|
|
40
|
%
|
|
(8,541
|
)
|
|
(25
|
)%
|
|||
Asia
|
|
2,991
|
|
|
3
|
%
|
|
3,591
|
|
|
4
|
%
|
|
(600
|
)
|
|
(17
|
)%
|
|||
Totals
|
|
$
|
87,619
|
|
|
100
|
%
|
|
$
|
84,807
|
|
|
100
|
%
|
|
$
|
2,812
|
|
|
3
|
%
|
|
Systems
|
|
Service and
System
Integration
|
|
Total
|
|
% of
Total
|
|||||||
|
(Dollar amounts in thousands)
|
|||||||||||||
For the Year Ended September 30, 2013:
|
|
|
|
|
|
|
|
|||||||
Cost of Sales:
|
|
|
|
|
|
|
|
|||||||
Product
|
$
|
2,439
|
|
|
$
|
51,584
|
|
|
$
|
54,023
|
|
|
78
|
%
|
Services
|
270
|
|
|
14,743
|
|
|
15,013
|
|
|
22
|
%
|
|||
Total
|
$
|
2,709
|
|
|
$
|
66,327
|
|
|
$
|
69,036
|
|
|
100
|
%
|
% of Total
|
4
|
%
|
|
96
|
%
|
|
100
|
%
|
|
|
|
|||
% of Sales
|
39
|
%
|
|
82
|
%
|
|
79
|
%
|
|
|
|
|||
Gross Profit:
|
|
|
|
|
|
|
|
|||||||
Product
|
$
|
3,044
|
|
|
$
|
8,777
|
|
|
$
|
11,821
|
|
|
64
|
%
|
Services
|
1,247
|
|
|
5,515
|
|
|
6,762
|
|
|
36
|
%
|
|||
Total
|
$
|
4,291
|
|
|
$
|
14,292
|
|
|
$
|
18,583
|
|
|
100
|
%
|
% of Total
|
23
|
%
|
|
77
|
%
|
|
100
|
%
|
|
|
|
|||
Gross Margins:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Product
|
56
|
%
|
|
15
|
%
|
|
18
|
%
|
|
|
|
|||
Services
|
82
|
%
|
|
27
|
%
|
|
31
|
%
|
|
|
|
|||
Total
|
61
|
%
|
|
18
|
%
|
|
21
|
%
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||||||
For the Year Ended September 30, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Cost of Sales:
|
|
|
|
|
|
|
|
|||||||
Product
|
$
|
2,508
|
|
|
$
|
47,718
|
|
|
$
|
50,226
|
|
|
78
|
%
|
Services
|
283
|
|
|
13,877
|
|
|
14,160
|
|
|
22
|
%
|
|||
Total
|
$
|
2,791
|
|
|
$
|
61,595
|
|
|
$
|
64,386
|
|
|
100
|
%
|
% of Total
|
4
|
%
|
|
96
|
%
|
|
100
|
%
|
|
|
|
|||
% of Sales
|
25
|
%
|
|
84
|
%
|
|
76
|
%
|
|
|
|
|
Systems
|
|
Service and
System
Integration
|
|
Total
|
|
% of
Total
|
|||||||
Gross Profit:
|
|
|
|
|
|
|
|
|||||||
Product
|
$
|
1,706
|
|
|
$
|
7,651
|
|
|
$
|
9,357
|
|
|
46
|
%
|
Services
|
6,644
|
|
|
4,420
|
|
|
11,064
|
|
|
54
|
%
|
|||
Total
|
$
|
8,350
|
|
|
$
|
12,071
|
|
|
$
|
20,421
|
|
|
100
|
%
|
% of Total
|
41
|
%
|
|
59
|
%
|
|
100
|
%
|
|
|
|
|||
Gross Margins:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Product
|
40
|
%
|
|
14
|
%
|
|
16
|
%
|
|
|
|
|||
Services
|
96
|
%
|
|
24
|
%
|
|
44
|
%
|
|
|
|
|||
Total
|
75
|
%
|
|
16
|
%
|
|
24
|
%
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||||||
Increase (decrease)
|
|
|
|
|
|
|
|
|
|
|
|
|||
Cost of Sales:
|
|
|
|
|
|
|
|
|||||||
Product
|
$
|
(69
|
)
|
|
$
|
3,866
|
|
|
$
|
3,797
|
|
|
8
|
%
|
Services
|
(13
|
)
|
|
866
|
|
|
853
|
|
|
6
|
%
|
|||
Total
|
$
|
(82
|
)
|
|
$
|
4,732
|
|
|
$
|
4,650
|
|
|
7
|
%
|
% Increase (decrease)
|
(3
|
)%
|
|
8
|
%
|
|
7
|
%
|
|
|
|
|||
% of Sales
|
14
|
%
|
|
(2
|
)%
|
|
3
|
%
|
|
|
|
|||
Gross Profit:
|
|
|
|
|
|
|
|
|||||||
Product
|
$
|
1,338
|
|
|
$
|
1,126
|
|
|
$
|
2,464
|
|
|
26
|
%
|
Services
|
(5,397
|
)
|
|
1,095
|
|
|
(4,302
|
)
|
|
(39
|
)%
|
|||
Total
|
$
|
(4,059
|
)
|
|
$
|
2,221
|
|
|
$
|
(1,838
|
)
|
|
(9
|
)%
|
% increase (decrease)
|
(49
|
)%
|
|
18
|
%
|
|
(9
|
)%
|
|
|
|
|||
Change in Gross Margin percentage:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Product
|
16
|
%
|
|
1
|
%
|
|
2
|
%
|
|
|
|
|||
Services
|
(14
|
)%
|
|
3
|
%
|
|
(13
|
)%
|
|
|
|
|||
Total
|
(14
|
)%
|
|
2
|
%
|
|
(3
|
)%
|
|
|
|
|
For the Year ended,
|
|
|
|
|
|||||||||||||||
|
September 30, 2013
|
|
% of
Total
|
|
September 30, 2012
|
|
% of
Total
|
|
$ Decrease
|
|
% Decrease
|
|||||||||
|
(Dollar amounts in thousands)
|
|||||||||||||||||||
By Operating Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Systems
|
$
|
1,857
|
|
|
100
|
%
|
|
$
|
1,720
|
|
|
100
|
%
|
|
$
|
137
|
|
|
8
|
%
|
Service and System Integration
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
$
|
1,857
|
|
|
100
|
%
|
|
$
|
1,720
|
|
|
100
|
%
|
|
$
|
137
|
|
|
8
|
%
|
|
For the Year ended,
|
|
|
|
|
|||||||||||||||
|
September 30, 2013
|
|
% of
Total |
|
September 30, 2012
|
|
% of
Total |
|
$ Increase
|
|
% Increase
|
|||||||||
|
(Dollar amounts in thousands)
|
|||||||||||||||||||
By Operating Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Systems
|
$
|
4,037
|
|
|
25
|
%
|
|
$
|
5,515
|
|
|
35
|
%
|
|
$
|
(1,478
|
)
|
|
(27
|
)%
|
Service and System Integration
|
11,988
|
|
|
75
|
%
|
|
10,332
|
|
|
65
|
%
|
|
1,656
|
|
|
16
|
%
|
|||
Total
|
$
|
16,025
|
|
|
100
|
%
|
|
$
|
15,847
|
|
|
100
|
%
|
|
$
|
178
|
|
|
1
|
%
|
|
For the Year ended,
|
|
|
||||||||
|
September 30, 2013
|
|
September 30, 2012
|
|
Increase (Decrease)
|
||||||
|
(Amounts in thousands)
|
||||||||||
Interest expense
|
$
|
(86
|
)
|
|
$
|
(85
|
)
|
|
$
|
(1
|
)
|
Interest income
|
32
|
|
|
44
|
|
|
(12
|
)
|
|||
Foreign exchange gain (loss)
|
(18
|
)
|
|
(60
|
)
|
|
42
|
|
|||
Other income (expense), net
|
60
|
|
|
1
|
|
|
59
|
|
|||
Total other expense, net
|
$
|
(12
|
)
|
|
$
|
(100
|
)
|
|
$
|
88
|
|
Item 8.
|
Financial Statements and Supplementary Data
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 9A.
|
Controls and Procedures
|
•
|
pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of a company;
|
•
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of a company are being made only in accordance with authorizations of management and the board of directors of a company; and
|
•
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of a company's assets that could have a material effect on its financial statements.
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
(1)
|
Includes 154,717 non-vested shares issued.
|
Item 13.
|
Certain Relationships and Related Transactions and Director Independence
|
Item 14.
|
Principal Accountant Fees and Services
|
Item 15.
|
Exhibits and Financial Statement Schedules
|
Exhibit
No.
|
|
Description
|
|
Filed with
this Form
10-K
|
|
Incorporated by Reference
|
|||||
|
Form
|
|
Filing Date
|
|
Exhibit
No..
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
3.1
|
|
Articles of Organization and amendments thereto
|
|
|
|
10-K
|
|
December 26, 2007
|
|
3.1
|
|
3.2
|
|
By-laws, as amended December 13, 2012
|
|
|
|
10-K
|
|
December 20, 2012
|
|
3.1
|
|
10.1
|
|
Form of Employee Invention and Non-Disclosure Agreement
|
|
|
|
10-K
|
|
November 22, 1996
|
|
10.3
|
|
10.2
|
|
CSPI Supplemental Retirement Income Plan
|
|
|
|
10-K
|
|
December 29, 2008
|
|
10.2
|
|
10.6*
|
|
1997 Incentive Stock Option Plan, as amended
|
|
|
|
DEF 14A
|
|
December 1, 1997
|
|
A
|
|
10.8*
|
|
2003 Stock Incentive Plan
|
|
|
|
DEF 14A
|
|
December 23, 2003
|
|
B
|
|
10.9*
|
|
2007 Stock Incentive Plan
|
|
|
|
DEF 14A
|
|
March 30, 2007
|
|
B
|
|
10.10*
|
|
2013 Variable Compensation (Executive Bonus) and Base Programs dated November 8, 2012
|
|
X
|
|
|
|
|
|
|
|
10.11*
|
|
Death Benefit and Retirement Benefit Agreement between the Company and Victor Dellovo dated September 13, 2013
|
|
X
|
|
|
|
|
|
|
|
10.12*
|
|
Form of Change of Control Agreement with Gary W. Levine, Walter Pastucha and William E. Bent Jr. each dated January 11, 2008
|
|
|
|
10-K
|
|
December 22, 2009
|
|
10.11
|
|
10.13*
|
|
Form of Change of Control Agreement with Robert A. Stellato, Andrew Shieh, Robert Gove, Peter Haebler, Kevin Magee and Stephen Pfeil each dated January 11, 2008
|
|
|
|
10-K
|
|
December 22, 2009
|
|
10.11
|
|
10.14*
|
|
Employment Agreement with Victor Dellovo dated April 11, 2003
|
|
|
|
10-K
|
|
December 22, 2009
|
|
10.11
|
|
21.1
|
|
Subsidiaries
|
|
X
|
|
|
|
|
|
|
|
23.1
|
|
Consent of McGladrey LLP, Independent Registered Public Accounting Firm
|
|
X
|
|
|
|
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
X
|
|
|
|
|
|
|
|
31.2
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
X
|
|
|
|
|
|
|
|
32.1
|
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
X
|
|
|
|
|
|
|
|
101.INS**
|
|
XBRL Instance
|
|
|
|
|
|
|
|
|
|
101.SCH**
|
|
XBRL Taxonomy Schema
|
|
|
|
|
|
|
|
|
|
101.CAL**
|
|
XBRL Taxonomy Extension Calculation
|
|
|
|
|
|
|
|
|
|
101.DEF**
|
|
XBRL Taxonomy Extension Definition
|
|
|
|
|
|
|
|
|
|
101.LAB**
|
|
XBRL Taxonomy Extension Labels
|
|
|
|
|
|
|
|
|
|
101.PRE**
|
|
XBRL Taxonomy Extension Presentation
|
|
|
|
|
|
|
|
|
*
|
Management contract or compensatory plan.
|
**
|
XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 or the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
|
|
|
|
|
CSP INC.
|
|||
By:
|
/s/ Victor Dellovo
|
||
|
Victor Dellovo
Chief Executive Officer and President
|
Name
|
|
Title
|
|
Date
|
/s/ Victor Dellovo
|
|
Chief Executive Officer, President and Director
|
|
December 24, 2013
|
Victor Dellovo
|
|
|
|
|
/s/ Gary W. Levine
|
|
Chief Financial Officer
(Principal Financial Officer)
|
|
December 24, 2013
|
Gary W. Levine
|
|
|
|
|
/s/Robert A. Stellato
|
|
Vice President of Finance
(Chief Accounting Officer)
|
|
December 24, 2013
|
Robert A. Stellato
|
|
|
|
|
/s/ J. David Lyons
|
|
Director
|
|
December 24, 2013
|
J. David Lyons
|
|
|
|
|
/s/ C. Shelton James
|
|
Director
|
|
December 24, 2013
|
C. Shelton James
|
|
|
|
|
/s/ Robert M. Williams
|
|
Director
|
|
December 24, 2013
|
Robert M. Williams
|
|
|
|
|
/s/ Raymond Charles Blackmon
|
|
Director
|
|
December 24, 2013
|
Raymond Charles Blackmon
|
|
|
|
|
/s/ Marilyn T. Smith
|
|
Director
|
|
December 24, 2013
|
Marilyn T. Smith
|
|
|
|
|
/s/ Robert Bunnett
|
|
Director
|
|
December 24, 2013
|
Robert Bunnett
|
|
|
|
|
|
September 30,
2013 |
|
September 30,
2012 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
18,619
|
|
|
$
|
20,493
|
|
Accounts receivable, net of allowances of $242 and $243
|
13,529
|
|
|
12,145
|
|
||
Officer life insurance settlement receivable
|
—
|
|
|
2,172
|
|
||
Inventories
|
4,791
|
|
|
6,276
|
|
||
Refundable income taxes
|
624
|
|
|
121
|
|
||
Deferred income taxes
|
1,313
|
|
|
1,284
|
|
||
Other current assets
|
2,042
|
|
|
2,215
|
|
||
Total current assets
|
40,918
|
|
|
44,706
|
|
||
Property, equipment and improvements, net
|
1,420
|
|
|
991
|
|
||
|
|
|
|
||||
Other assets:
|
|
|
|
|
|
||
Intangibles, net
|
410
|
|
|
492
|
|
||
Deferred income taxes
|
1,771
|
|
|
2,373
|
|
||
Cash surrender value of life insurance
|
2,481
|
|
|
2,181
|
|
||
Other assets
|
225
|
|
|
323
|
|
||
Total other assets
|
4,887
|
|
|
5,369
|
|
||
Total assets
|
$
|
47,225
|
|
|
$
|
51,066
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
10,503
|
|
|
$
|
13,574
|
|
Deferred revenue
|
3,816
|
|
|
3,693
|
|
||
Pension and retirement plans
|
746
|
|
|
717
|
|
||
Income taxes payable
|
60
|
|
|
184
|
|
||
Total current liabilities
|
15,125
|
|
|
18,168
|
|
||
Pension and retirement plans
|
8,660
|
|
|
9,431
|
|
||
Deferred income taxes
|
—
|
|
|
—
|
|
||
Other long term liabilities
|
405
|
|
|
426
|
|
||
Total liabilities
|
24,190
|
|
|
28,025
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
|
|
||
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
||||
Common stock, $.01 par value per share; authorized, 7,500 shares; issued and outstanding 3,496 and 3,399 shares, respectively
|
35
|
|
|
34
|
|
||
Additional paid-in capital
|
11,137
|
|
|
10,875
|
|
||
Retained earnings
|
17,728
|
|
|
18,744
|
|
||
Accumulated other comprehensive loss
|
(5,865
|
)
|
|
(6,612
|
)
|
||
Total shareholders’ equity
|
23,035
|
|
|
23,041
|
|
||
Total liabilities and shareholders’ equity
|
$
|
47,225
|
|
|
$
|
51,066
|
|
|
For the year ended
|
||||||
|
September 30,
2013 |
|
September 30,
2012 |
||||
Sales:
|
|
|
|
||||
Product
|
$
|
65,844
|
|
|
$
|
59,583
|
|
Services
|
21,775
|
|
|
25,224
|
|
||
Total sales
|
87,619
|
|
|
84,807
|
|
||
|
|
|
|
||||
Cost of sales:
|
|
|
|
||||
Product
|
54,023
|
|
|
50,226
|
|
||
Services
|
15,013
|
|
|
14,160
|
|
||
Total cost of sales
|
69,036
|
|
|
64,386
|
|
||
|
|
|
|
||||
Gross profit
|
18,583
|
|
|
20,421
|
|
||
|
|
|
|
||||
Operating expenses:
|
|
|
|
||||
Engineering and development
|
1,857
|
|
|
1,720
|
|
||
Selling, general and administrative
|
16,025
|
|
|
15,847
|
|
||
Total operating expenses
|
17,882
|
|
|
17,567
|
|
||
Income from proceeds of officer life insurance settlement
|
—
|
|
|
2,115
|
|
||
Operating income
|
701
|
|
|
4,969
|
|
||
|
|
|
|
||||
Other (expense):
|
|
|
|
||||
Foreign exchange (loss)
|
(18
|
)
|
|
(59
|
)
|
||
Other (expense), net
|
6
|
|
|
(41
|
)
|
||
Total other (expense), net
|
(12
|
)
|
|
(100
|
)
|
||
Income before income taxes
|
689
|
|
|
4,869
|
|
||
Income tax expense (benefit)
|
321
|
|
|
(1,740
|
)
|
||
Net income
|
$
|
368
|
|
|
$
|
6,609
|
|
Net income attributable to common stockholders
|
$
|
361
|
|
|
$
|
6,496
|
|
Net income per share – basic
|
$
|
0.11
|
|
|
$
|
1.93
|
|
Weighted average shares outstanding – basic
|
3,389
|
|
|
3,362
|
|
||
Net income per share – diluted
|
$
|
0.10
|
|
|
$
|
1.91
|
|
Weighted average shares outstanding – diluted
|
3,441
|
|
|
3,405
|
|
|
|
For the year ended
|
||||||
|
|
September 30,
2013 |
|
September 30,
2012 |
||||
|
|
|
|
|
||||
Net income
|
|
$
|
368
|
|
|
$
|
6,609
|
|
Other comprehensive income (loss):
|
|
|
|
|
||||
Unrealized actuarial gain (loss) on minimum pension liability
|
|
630
|
|
|
(664
|
)
|
||
Foreign currency translation gain (loss)
|
|
117
|
|
|
(45
|
)
|
||
Other comprehensive income (loss)
|
|
747
|
|
|
(709
|
)
|
||
Total comprehensive income
|
|
$
|
1,115
|
|
|
$
|
5,900
|
|
|
Shares
|
|
Amount
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
other
comprehensive
loss
|
|
Total
Shareholders’
Equity
|
|||||||||||
Balance as of September 30, 2011
|
3,417
|
|
|
$
|
34
|
|
|
$
|
10,880
|
|
|
$
|
12,885
|
|
|
$
|
(5,903
|
)
|
|
$
|
17,896
|
|
Comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
6,609
|
|
|
—
|
|
|
6,609
|
|
||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(709
|
)
|
|
(709
|
)
|
|||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|||||
Purchase of common stock
|
(28
|
)
|
|
—
|
|
|
(97
|
)
|
|
|
|
|
|
(97
|
)
|
|||||||
Restricted stock shares issued
|
10
|
|
|
—
|
|
|
75
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|||||
Cash dividends on common stock ($0.22 per share)
|
|
|
|
|
|
|
(750
|
)
|
|
|
|
(750
|
)
|
|||||||||
Balance as of September 30, 2012
|
3,399
|
|
|
34
|
|
|
10,875
|
|
|
18,744
|
|
|
(6,612
|
)
|
|
23,041
|
|
|||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
368
|
|
|
—
|
|
|
368
|
|
|||||
Other comprehensive gain
|
|
|
|
|
|
|
|
|
747
|
|
|
747
|
|
|||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Purchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Restricted stock issuance
|
56
|
|
|
1
|
|
|
144
|
|
|
—
|
|
|
—
|
|
|
145
|
|
|||||
Exercise of stock options
|
41
|
|
|
|
|
114
|
|
|
|
|
|
|
114
|
|
||||||||
Cash dividends on common stock ($0.40 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,384
|
)
|
|
—
|
|
|
(1,384
|
)
|
|||||
Balance as of September 30, 2013
|
3,496
|
|
|
$
|
35
|
|
|
$
|
11,137
|
|
|
$
|
17,728
|
|
|
$
|
(5,865
|
)
|
|
$
|
23,035
|
|
|
For the year ended
|
||||||
|
September 30,
2013 |
|
September 30,
2012 |
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
368
|
|
|
$
|
6,609
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
438
|
|
|
378
|
|
||
Amortization of intangibles
|
82
|
|
|
82
|
|
||
Loss on disposal of fixed assets, net
|
(3
|
)
|
|
—
|
|
||
Foreign exchange loss
|
18
|
|
|
59
|
|
||
Non-cash changes in accounts receivable
|
(2
|
)
|
|
(54
|
)
|
||
Non-cash changes in inventory
|
63
|
|
|
210
|
|
||
Stock-based compensation expense on stock options and restricted stock awards
|
149
|
|
|
92
|
|
||
Deferred income taxes
|
600
|
|
|
(2,855
|
)
|
||
Increase (decrease) in cash surrender value of life insurance
|
(100
|
)
|
|
881
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
(Increase) decrease in accounts receivable
|
(1,135
|
)
|
|
825
|
|
||
(Increase) decrease in officer life insurance settlement receivable
|
2,172
|
|
|
(2,172
|
)
|
||
Decrease in inventories
|
1,436
|
|
|
286
|
|
||
(Increase) decrease in refundable income taxes
|
(496
|
)
|
|
101
|
|
||
(Increase) decrease in other assets
|
347
|
|
|
(652
|
)
|
||
Increase (decrease) in accounts payable and accrued expenses
|
(3,250
|
)
|
|
1,604
|
|
||
Increase (decrease) in deferred revenue
|
(7
|
)
|
|
824
|
|
||
Decrease in pension and retirement plans liability
|
(304
|
)
|
|
(116
|
)
|
||
Increase (decrease) in income taxes payable
|
(127
|
)
|
|
63
|
|
||
Increase (decrease) in other long term liabilities
|
(22
|
)
|
|
141
|
|
||
Net cash provided by operating activities
|
227
|
|
|
6,306
|
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
|
||
Life insurance premiums paid
|
(200
|
)
|
|
(143
|
)
|
||
Proceeds from the sale of fixed assets
|
17
|
|
|
—
|
|
||
Purchases of property, equipment and improvements
|
(858
|
)
|
|
(551
|
)
|
||
Net cash used in investing activities
|
(1,041
|
)
|
|
(694
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
||
Dividends paid
|
(1,384
|
)
|
|
(750
|
)
|
||
Proceeds from issuance of shares under employee stock purchase plan
|
114
|
|
|
—
|
|
||
Purchase of common stock
|
—
|
|
|
(97
|
)
|
||
Net cash used in financing activities
|
(1,270
|
)
|
|
(847
|
)
|
||
Effects of exchange rate on cash
|
210
|
|
|
(146
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
(1,874
|
)
|
|
4,619
|
|
||
Cash and cash equivalents, beginning of period
|
20,493
|
|
|
15,874
|
|
||
Cash and cash equivalents, end of period
|
$
|
18,619
|
|
|
$
|
20,493
|
|
|
|
|
|
||||
Supplementary cash flow information:
|
|
|
|
|
|
||
Cash paid for income taxes
|
$
|
434
|
|
|
$
|
1,056
|
|
Cash paid for interest
|
$
|
85
|
|
|
$
|
85
|
|
|
For the year ended
|
||||||
|
September 30, 2013
|
|
September 30, 2012
|
||||
|
(Amounts in thousands except per share data)
|
||||||
Net income
|
$
|
368
|
|
|
$
|
6,609
|
|
Less: Net income attributable to nonvested common stock
|
7
|
|
|
113
|
|
||
Net income attributable to common stockholders
|
$
|
361
|
|
|
$
|
6,496
|
|
Weighted average total shares outstanding - basic
|
3,458
|
|
|
3,421
|
|
||
Less: weighted average non-vested shares outstanding
|
69
|
|
|
59
|
|
||
Weighted average number of common shares outstanding - basic
|
3,389
|
|
|
3,362
|
|
||
Potential common shares from non-vested stock awards and the assumed exercise of stock options
|
52
|
|
|
43
|
|
||
Weighted average common shares outstanding - diluted
|
3,441
|
|
|
3,405
|
|
||
Net income per share - basic
|
$
|
0.11
|
|
|
$
|
1.93
|
|
Net income per share - diluted
|
$
|
0.10
|
|
|
$
|
1.91
|
|
|
September 30, 2013
|
|
September 30, 2012
|
||||
|
(Amounts in thousands)
|
||||||
Raw materials
|
$
|
1,587
|
|
|
$
|
941
|
|
Work-in-process
|
404
|
|
|
1,407
|
|
||
Finished goods
|
2,800
|
|
|
3,928
|
|
||
Total
|
$
|
4,791
|
|
|
$
|
6,276
|
|
|
|
Effect of Foreign Currency Translation
|
|
Minimum Pension Liability
|
|
Accumulated Other Comprehensive Loss
|
||||||
|
|
(Amounts in thousands)
|
||||||||||
Balance as of September 30, 2011
|
|
$
|
(2,228
|
)
|
|
$
|
(3,675
|
)
|
|
$
|
(5,903
|
)
|
Change in Period
|
|
(45
|
)
|
|
(591
|
)
|
|
(636
|
)
|
|||
Tax effect of change in period
|
|
—
|
|
|
(73
|
)
|
|
(73
|
)
|
|||
Balance as of September 30, 2012
|
|
$
|
(2,273
|
)
|
|
$
|
(4,339
|
)
|
|
$
|
(6,612
|
)
|
Change in Period
|
|
117
|
|
|
667
|
|
|
784
|
|
|||
Tax effect of change in period
|
|
—
|
|
|
(37
|
)
|
|
(37
|
)
|
|||
Balance as of September 30, 2013
|
|
$
|
(2,156
|
)
|
|
$
|
(3,709
|
)
|
|
$
|
(5,865
|
)
|
4.
|
Income Taxes
|
|
For the Years Ended September 30,
|
||||||
|
2013
|
|
2012
|
||||
|
(Amounts in thousands)
|
||||||
Income (loss) before income tax:
|
|
|
|
||||
U.S.
|
$
|
809
|
|
|
$
|
4,382
|
|
Foreign
|
(120
|
)
|
|
487
|
|
||
|
$
|
689
|
|
|
$
|
4,869
|
|
Income tax expense (benefit):
|
|
|
|
|
|
||
Current:
|
|
|
|
|
|
||
Federal
|
$
|
(308
|
)
|
|
$
|
1,088
|
|
State
|
62
|
|
|
58
|
|
||
Foreign
|
(3
|
)
|
|
40
|
|
||
|
(249
|
)
|
|
1,186
|
|
||
Deferred:
|
|
|
|
|
|
||
Federal
|
601
|
|
|
(2,734
|
)
|
||
State
|
(41
|
)
|
|
(274
|
)
|
||
Foreign
|
10
|
|
|
82
|
|
||
|
570
|
|
|
(2,926
|
)
|
||
|
$
|
321
|
|
|
$
|
(1,740
|
)
|
|
For the Years Ended September 30,
|
||||||||||||
|
2013
|
|
2012
|
||||||||||
|
(Dollar amounts in thousands)
|
||||||||||||
Computed “expected” tax expense
|
$
|
234
|
|
|
34.0
|
%
|
|
$
|
1,656
|
|
|
34.0
|
%
|
Increases (reductions) in taxes resulting from:
|
|
|
|
|
|
|
|
||||||
State income taxes, net of federal tax benefit
|
1
|
|
|
0.3
|
%
|
|
(236
|
)
|
|
(4.9
|
)%
|
||
Foreign operations
|
40
|
|
|
5.8
|
%
|
|
(176
|
)
|
|
(3.6
|
)%
|
||
Change in valuation allowance
|
—
|
|
|
—
|
%
|
|
(2,762
|
)
|
|
(56.8
|
)%
|
||
Permanent differences
|
(22
|
)
|
|
(3.2
|
)%
|
|
(388
|
)
|
|
(8.0
|
)%
|
||
Stock-based compensation
|
158
|
|
|
22.9
|
%
|
|
4
|
|
|
0.1
|
%
|
||
Foreign net operating loss
|
(15
|
)
|
|
(2.2
|
)%
|
|
107
|
|
|
2.2
|
%
|
||
Uncertain tax liability adjustment
|
(61
|
)
|
|
(8.9
|
)%
|
|
37
|
|
|
0.8
|
%
|
||
Research & Development Credit
|
(50
|
)
|
|
(7.3
|
)%
|
|
—
|
|
|
—
|
%
|
||
Other items
|
36
|
|
|
5.2
|
%
|
|
18
|
|
|
0.4
|
%
|
||
Income tax expense (benefit)
|
$
|
321
|
|
|
46.6
|
%
|
|
$
|
(1,740
|
)
|
|
(35.8
|
)%
|
|
September 30, 2013
|
|
September 30, 2012
|
||||
|
(Amounts in thousands)
|
||||||
Deferred tax assets:
|
|
|
|
||||
Pension
|
$
|
1,539
|
|
|
$
|
1,911
|
|
Goodwill
|
606
|
|
|
723
|
|
||
Other reserves and accruals
|
498
|
|
|
625
|
|
||
Inventory reserves and other
|
703
|
|
|
713
|
|
||
State credits, net of federal benefit
|
34
|
|
|
79
|
|
||
Federal and state net operating loss carryforwards
|
45
|
|
|
30
|
|
||
Foreign net operating loss carryforwards
|
1,804
|
|
|
1,815
|
|
||
Foreign tax credits
|
7
|
|
|
7
|
|
||
Depreciation and amortization
|
109
|
|
|
61
|
|
||
Gross deferred tax assets
|
5,345
|
|
|
5,964
|
|
||
Less: valuation allowance
|
(2,261
|
)
|
|
(2,307
|
)
|
||
Realizable deferred tax asset
|
3,084
|
|
|
3,657
|
|
||
Gross deferred tax liabilities
|
—
|
|
|
—
|
|
||
Net deferred tax assets
|
$
|
3,084
|
|
|
$
|
3,657
|
|
|
|
|
|
|
For the Year Ended September 30, 2013
|
|
For the Year Ended September 30, 2012
|
||||
|
(Amounts in thousands)
|
||||||
Balance, beginning of year
|
$
|
611
|
|
|
$
|
472
|
|
Increases in tax positions in the current year
|
39
|
|
|
104
|
|
||
Settlements
|
(105
|
)
|
|
—
|
|
||
Lapse in statute of limitations
|
—
|
|
|
(2
|
)
|
||
Accrued penalties and interest
|
44
|
|
|
37
|
|
||
Balance, end of period
|
$
|
589
|
|
|
$
|
611
|
|
|
|
|
|
|
September 30, 2013
|
|
September 30, 2012
|
||||
|
(Amounts in thousands)
|
||||||
Leasehold improvements
|
$
|
370
|
|
|
$
|
370
|
|
Equipment
|
8,009
|
|
|
7,178
|
|
||
Automobiles
|
67
|
|
|
118
|
|
||
|
8,446
|
|
|
7,666
|
|
||
Less accumulated depreciation and amortization
|
(7,026
|
)
|
|
(6,675
|
)
|
||
Property, equipment and improvements, net
|
$
|
1,420
|
|
|
$
|
991
|
|
|
September 30, 2013
|
|
September 30, 2012
|
||||||||||||||||||||||||||
Weighted Average Remaining Amortization Period
|
|
Gross
|
|
Accumulated Amortization
|
|
Net
|
|
Weighted Average Remaining Amortization Period
|
|
Gross
|
|
Accumulated Amortization
|
|
Net
|
|||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||||||||||
Customer list
|
5 years
|
|
|
$
|
820
|
|
|
$
|
410
|
|
|
$
|
410
|
|
|
6 years
|
|
|
$
|
820
|
|
|
$
|
328
|
|
|
$
|
492
|
|
Non-Compete agreements
|
—
|
|
|
93
|
|
|
93
|
|
|
—
|
|
|
—
|
|
|
93
|
|
|
93
|
|
|
—
|
|
||||||
Total
|
5 years
|
|
|
$
|
913
|
|
|
$
|
503
|
|
|
$
|
410
|
|
|
6 years
|
|
|
$
|
913
|
|
|
$
|
421
|
|
|
$
|
492
|
|
Fiscal year ending September 30:
|
(Amounts in thousands)
|
||
2014
|
$
|
82
|
|
2015
|
82
|
|
|
2016
|
82
|
|
|
2017
|
82
|
|
|
2018
|
82
|
|
|
Total
|
$
|
410
|
|
|
|
|
September 30,
|
||||||
|
2013
|
|
2012
|
||||
|
(Amounts in thousands)
|
||||||
Accounts payable
|
$
|
6,940
|
|
|
$
|
9,458
|
|
Commissions
|
209
|
|
|
225
|
|
||
Compensation and fringe benefits
|
2,202
|
|
|
2,593
|
|
||
Professional fees and shareholders' reporting costs
|
450
|
|
|
572
|
|
||
Taxes, other than income
|
316
|
|
|
316
|
|
||
Warranty
|
109
|
|
|
146
|
|
||
Current portion of capital lease
|
—
|
|
|
13
|
|
||
Other
|
277
|
|
|
251
|
|
||
|
$
|
10,503
|
|
|
$
|
13,574
|
|
|
|
|
|
|
Year ended
|
||||||
|
September 30, 2013
|
|
September 30, 2012
|
||||
|
(Amounts in thousands)
|
||||||
Cost of sales
|
$
|
1
|
|
|
$
|
—
|
|
Engineering and development
|
4
|
|
|
5
|
|
||
Selling, general and administrative
|
144
|
|
|
87
|
|
||
Total
|
$
|
149
|
|
|
$
|
92
|
|
|
|
|
|
|
Year ended
|
||
|
September 30, 2013
|
|
September 30, 2012
|
Expected volatility
|
—%
|
|
52%
|
Expected dividend yield
|
—%
|
|
2.92%
|
Risk-free interest rate
|
—%
|
|
1.32%
|
Expected term (in years)
|
0.00
|
|
7.25
|
|
Number
of Shares
|
|
Weighted
average
exercise
price
|
|
Weighted
Average
Remaining
Contractual
Term
|
|
Aggregate
Intrinsic
Value
(in thousands)
|
||||||
|
|
|
|
|
|
|
|
||||||
Outstanding at September 30, 2011
|
245,425
|
|
|
$
|
7.13
|
|
|
—
|
|
|
—
|
|
|
Granted
|
1,750
|
|
|
$
|
3.43
|
|
|
—
|
|
|
—
|
|
|
Expired
|
(750
|
)
|
|
$
|
4.79
|
|
|
—
|
|
|
—
|
|
|
Forfeited
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Exercised
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Outstanding at September 30, 2012
|
246,425
|
|
|
$
|
7.11
|
|
|
—
|
|
|
—
|
|
|
Granted
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Expired
|
(97,500
|
)
|
|
$
|
8.46
|
|
|
—
|
|
|
—
|
|
|
Forfeited
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Exercised
|
(41,249
|
)
|
|
2.77
|
|
|
—
|
|
|
—
|
|
||
Outstanding at September 30, 2013
|
107,676
|
|
|
$
|
7.56
|
|
|
2.89 Years
|
|
|
$
|
88
|
|
Exercisable at September 30, 2013
|
104,925
|
|
|
$
|
7.67
|
|
|
2.77 Years
|
|
|
$
|
78
|
|
Vested and expected to vest at September 30, 2013
|
107,676
|
|
|
$
|
7.56
|
|
|
2.89 Years
|
|
|
$
|
88
|
|
|
Number of
nonvested
shares
|
|
Weighted
Average
grant date
Fair
Value
|
|
Weighted
Average
Remaining
Contractual
Term
|
|
Aggregate
Intrinsic
Value
(in thousands)
|
||||||
|
|
||||||||||||
Nonvested shares outstanding at September 30, 2011
|
55,849
|
|
|
$
|
3.86
|
|
|
—
|
|
|
—
|
|
|
Activity in 2012:
|
|
|
|
|
|
|
|
|
|
|
|
||
Granted
|
38,000
|
|
|
$
|
3.56
|
|
|
—
|
|
|
—
|
|
|
Vested
|
(27,766
|
)
|
|
$
|
3.87
|
|
|
—
|
|
|
—
|
|
|
Forfeited
|
(29,333
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Nonvested shares outstanding at September 30, 2012
|
36,750
|
|
|
$
|
3.68
|
|
|
—
|
|
|
—
|
|
|
Activity in 2013:
|
|
|
|
|
|
|
|
|
|
|
|
||
Granted
|
57,250
|
|
|
$
|
5.80
|
|
|
—
|
|
|
—
|
|
|
Vested
|
(18,000
|
)
|
|
$
|
3.79
|
|
|
—
|
|
|
—
|
|
|
Forfeited
|
(2,500
|
)
|
|
6.63
|
|
|
—
|
|
|
—
|
|
||
Nonvested shares outstanding at September 30, 2013
|
73,500
|
|
|
$
|
5.21
|
|
|
2.18 Years
|
|
|
$
|
520
|
|
Vested at September 30, 2013
|
81,217
|
|
|
$
|
3.67
|
|
|
0.26 Years
|
|
|
$
|
574
|
|
Vested and expected to vest at September 30, 2013
|
154,717
|
|
|
$
|
4.40
|
|
|
1.17 Years
|
|
|
$
|
1,094
|
|
|
Domestic
|
|
International
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||
Discount rate:
|
5.00
|
%
|
|
4.00
|
%
|
|
4.40
|
%
|
|
4.05
|
%
|
Expected return on plan assets:
|
—
|
%
|
|
—
|
%
|
|
4.80
|
%
|
|
4.70
|
%
|
Rate of compensation increase:
|
—
|
%
|
|
—
|
%
|
|
1.00
|
%
|
|
1.00
|
%
|
|
Domestic
|
|
International
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||
Discount rate:
|
4.75
|
%
|
|
5.25
|
%
|
|
4.05
|
%
|
|
5.04
|
%
|
Expected return on plan assets:
|
—
|
%
|
|
—
|
%
|
|
5.40
|
%
|
|
5.40
|
%
|
Rate of compensation increase:
|
—
|
%
|
|
—
|
%
|
|
1.12
|
%
|
|
1.12
|
%
|
|
Years Ended September 30
|
||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||
|
Foreign
|
|
U.S.
|
|
Total
|
|
Foreign
|
|
U.S.
|
|
Total
|
||||||||||||
|
(amounts in thousands)
|
||||||||||||||||||||||
Pension:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
59
|
|
|
$
|
61
|
|
|
$
|
10
|
|
|
$
|
71
|
|
Interest cost
|
683
|
|
|
64
|
|
|
747
|
|
|
708
|
|
|
84
|
|
|
792
|
|
||||||
Expected return on plan assets
|
(410
|
)
|
|
—
|
|
|
(410
|
)
|
|
(462
|
)
|
|
—
|
|
|
(462
|
)
|
||||||
Amortization of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Prior service gains
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of net (gain)/loss
|
141
|
|
|
24
|
|
|
165
|
|
|
82
|
|
|
30
|
|
|
112
|
|
||||||
Net periodic benefit cost
|
$
|
473
|
|
|
$
|
88
|
|
|
$
|
561
|
|
|
$
|
389
|
|
|
$
|
124
|
|
|
$
|
513
|
|
Post Retirement:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
—
|
|
|
35
|
|
|
35
|
|
|
—
|
|
|
71
|
|
|
71
|
|
||||||
Expected return on plan assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Prior service costs/(gains)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of net (gain)/loss
|
—
|
|
|
(183
|
)
|
|
(183
|
)
|
|
—
|
|
|
70
|
|
|
70
|
|
||||||
Net periodic benefit cost
|
$
|
—
|
|
|
$
|
(148
|
)
|
|
$
|
(148
|
)
|
|
$
|
—
|
|
|
$
|
141
|
|
|
$
|
141
|
|
Pension:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Increase (decrease) in minimum liability included in other comprehensive income (loss)
|
$
|
(688
|
)
|
|
$
|
(104
|
)
|
|
$
|
(792
|
)
|
|
$
|
1,367
|
|
|
$
|
(14
|
)
|
|
$
|
1,353
|
|
Post Retirement:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Increase (decrease) in minimum liability included in other comprehensive income (loss)
|
—
|
|
|
127
|
|
|
127
|
|
|
—
|
|
|
(762
|
)
|
|
(762
|
)
|
||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Increase (decrease) in minimum liability included in comprehensive income (loss)
|
$
|
(688
|
)
|
|
$
|
23
|
|
|
$
|
(665
|
)
|
|
$
|
1,367
|
|
|
$
|
(776
|
)
|
|
$
|
591
|
|
|
Years Ended September 30
|
||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||
|
Foreign
|
|
U.S.
|
|
Total
|
|
Foreign
|
|
U.S.
|
|
Total
|
||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||||
Pension:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in projected benefit obligation (“PBO”)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance beginning of year
|
$
|
16,575
|
|
|
$
|
1,605
|
|
|
$
|
18,180
|
|
|
$
|
14,107
|
|
|
$
|
1,759
|
|
|
$
|
15,866
|
|
Service cost
|
59
|
|
|
—
|
|
|
59
|
|
|
61
|
|
|
10
|
|
|
71
|
|
||||||
Interest cost
|
683
|
|
|
64
|
|
|
747
|
|
|
708
|
|
|
84
|
|
|
792
|
|
||||||
Changes in actuarial assumptions
|
(508
|
)
|
|
(76
|
)
|
|
(584
|
)
|
|
1,863
|
|
|
13
|
|
|
1,876
|
|
||||||
Foreign exchange impact
|
235
|
|
|
—
|
|
|
235
|
|
|
271
|
|
|
—
|
|
|
271
|
|
||||||
Benefits paid
|
(393
|
)
|
|
(222
|
)
|
|
(615
|
)
|
|
(435
|
)
|
|
(261
|
)
|
|
(696
|
)
|
||||||
Projected benefit obligation at end of year
|
$
|
16,651
|
|
|
$
|
1,371
|
|
|
$
|
18,022
|
|
|
$
|
16,575
|
|
|
$
|
1,605
|
|
|
$
|
18,180
|
|
Changes in fair value of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Fair value of plan assets at beginning of year
|
$
|
8,914
|
|
|
$
|
—
|
|
|
$
|
8,914
|
|
|
$
|
7,598
|
|
|
$
|
—
|
|
|
$
|
7,598
|
|
Actual gain (loss) on plan assets
|
475
|
|
|
—
|
|
|
475
|
|
|
1,004
|
|
|
—
|
|
|
1,004
|
|
||||||
Company contributions
|
451
|
|
|
222
|
|
|
673
|
|
|
441
|
|
|
261
|
|
|
702
|
|
||||||
Foreign exchange impact
|
26
|
|
|
—
|
|
|
26
|
|
|
306
|
|
|
—
|
|
|
306
|
|
||||||
Benefits paid
|
(393
|
)
|
|
(222
|
)
|
|
(615
|
)
|
|
(435
|
)
|
|
(261
|
)
|
|
(696
|
)
|
||||||
Fair value of plan assets at end of year
|
$
|
9,473
|
|
|
$
|
—
|
|
|
$
|
9,473
|
|
|
$
|
8,914
|
|
|
—
|
|
|
$
|
8,914
|
|
|
Funded status
|
$
|
(7,178
|
)
|
|
$
|
(1,371
|
)
|
|
$
|
(8,549
|
)
|
|
$
|
(7,661
|
)
|
|
$
|
(1,605
|
)
|
|
$
|
(9,266
|
)
|
Unamortized net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net amount recognized
|
$
|
(7,178
|
)
|
|
$
|
(1,371
|
)
|
|
$
|
(8,549
|
)
|
|
$
|
(7,661
|
)
|
|
$
|
(1,605
|
)
|
|
$
|
(9,266
|
)
|
Post Retirement:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Change in projected benefit obligation (“PBO”):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance beginning of year
|
$
|
—
|
|
|
$
|
882
|
|
|
$
|
882
|
|
|
$
|
—
|
|
|
$
|
1,498
|
|
|
$
|
1,498
|
|
Service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Interest cost
|
—
|
|
|
35
|
|
|
35
|
|
|
—
|
|
|
71
|
|
|
71
|
|
||||||
Changes in actuarial assumptions
|
—
|
|
|
(60
|
)
|
|
(60
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Foreign exchange impact
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(687
|
)
|
|
(687
|
)
|
||||||
Benefits paid
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Projected benefit obligation at end of year
|
$
|
—
|
|
|
$
|
857
|
|
|
$
|
857
|
|
|
$
|
—
|
|
|
$
|
882
|
|
|
$
|
882
|
|
Changes in fair value of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fair value of plan assets at beginning of year
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Actual gain/(loss) on plan assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Company contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Foreign exchange impact
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Benefits paid from plan assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Fair value of plan assets at end of year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Funded status
|
$
|
—
|
|
|
$
|
(857
|
)
|
|
$
|
(857
|
)
|
|
$
|
—
|
|
|
$
|
(882
|
)
|
|
$
|
(882
|
)
|
Unamortized net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net amount recognized
|
$
|
—
|
|
|
$
|
(857
|
)
|
|
$
|
(857
|
)
|
|
$
|
—
|
|
|
$
|
(882
|
)
|
|
$
|
(882
|
)
|
|
Years Ended September 30
|
||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||
|
Foreign
|
|
U.S.
|
|
Total
|
|
Foreign
|
|
U.S.
|
|
Total
|
||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||||
Pension:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accrued benefit liability
|
$
|
(7,178
|
)
|
|
$
|
(1,371
|
)
|
|
$
|
(8,549
|
)
|
|
$
|
(7,661
|
)
|
|
$
|
(1,605
|
)
|
|
$
|
(9,266
|
)
|
Deferred tax
|
(188
|
)
|
|
29
|
|
|
(159
|
)
|
|
(233
|
)
|
|
6
|
|
|
(227
|
)
|
||||||
Accumulated other comprehensive income
|
3,895
|
|
|
1
|
|
|
3,896
|
|
|
4,540
|
|
|
82
|
|
|
4,622
|
|
||||||
Net amount recognized
|
$
|
(3,471
|
)
|
|
$
|
(1,341
|
)
|
|
$
|
(4,812
|
)
|
|
$
|
(3,354
|
)
|
|
$
|
(1,517
|
)
|
|
$
|
(4,871
|
)
|
Post Retirement:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accrued benefit liability
|
$
|
—
|
|
|
$
|
(857
|
)
|
|
$
|
(857
|
)
|
|
$
|
—
|
|
|
$
|
(882
|
)
|
|
$
|
(882
|
)
|
Deferred tax
|
—
|
|
|
239
|
|
|
239
|
|
|
—
|
|
|
269
|
|
|
269
|
|
||||||
Accumulated other comprehensive income
|
—
|
|
|
(186
|
)
|
|
(186
|
)
|
|
—
|
|
|
(283
|
)
|
|
(283
|
)
|
||||||
Net amount recognized
|
$
|
—
|
|
|
$
|
(804
|
)
|
|
$
|
(804
|
)
|
|
$
|
—
|
|
|
$
|
(896
|
)
|
|
$
|
(896
|
)
|
Total pension and post retirement:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accrued benefit liability
|
$
|
(7,178
|
)
|
|
$
|
(2,228
|
)
|
|
$
|
(9,406
|
)
|
|
$
|
(7,661
|
)
|
|
$
|
(2,487
|
)
|
|
$
|
(10,148
|
)
|
Deferred tax
|
(188
|
)
|
|
268
|
|
|
80
|
|
|
(233
|
)
|
|
275
|
|
|
42
|
|
||||||
Accumulated other comprehensive income
|
3,895
|
|
|
(185
|
)
|
|
3,710
|
|
|
4,540
|
|
|
(201
|
)
|
|
4,339
|
|
||||||
Net amount recognized
|
$
|
(3,471
|
)
|
|
$
|
(2,145
|
)
|
|
$
|
(5,616
|
)
|
|
$
|
(3,354
|
)
|
|
$
|
(2,413
|
)
|
|
$
|
(5,767
|
)
|
Accumulated Benefit Obligation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pension
|
$
|
(16,541
|
)
|
|
$
|
(1,371
|
)
|
|
$
|
(17,912
|
)
|
|
$
|
(16,469
|
)
|
|
$
|
(1,605
|
)
|
|
$
|
(18,074
|
)
|
Post Retirement
|
—
|
|
|
(857
|
)
|
|
(857
|
)
|
|
—
|
|
|
(882
|
)
|
|
(882
|
)
|
||||||
Total accumulated benefit obligation
|
$
|
(16,541
|
)
|
|
$
|
(2,228
|
)
|
|
$
|
(18,769
|
)
|
|
$
|
(16,469
|
)
|
|
$
|
(2,487
|
)
|
|
$
|
(18,956
|
)
|
|
September 30,
|
||||||
|
2013
|
|
2012
|
||||
|
(Amounts in thousands)
|
||||||
Current accrued benefit liability
|
$
|
746
|
|
|
$
|
717
|
|
Noncurrent accrued benefit liability
|
8,660
|
|
|
9,431
|
|
||
Total accrued benefit liability
|
$
|
9,406
|
|
|
$
|
10,148
|
|
Fiscal year ending September 30:
|
|
(Amounts in thousands)
|
||
2014
|
|
$
|
712
|
|
2015
|
|
761
|
|
|
2016
|
|
792
|
|
|
2017
|
|
786
|
|
|
2018
|
|
763
|
|
|
Thereafter
|
|
4,486
|
|
|
Fair Values as of
|
||||||||||||||||||||||||||||||
|
September 30, 2013
|
|
September 30, 2012
|
||||||||||||||||||||||||||||
|
Fair Value Measurements Using Inputs Considered as
|
|
Fair Value Measurements Using Inputs Considered as
|
||||||||||||||||||||||||||||
Asset Category
|
Total
|
|
Level I
|
|
Level II
|
|
Level III
|
|
Total
|
|
Level I
|
|
Level II
|
|
Level III
|
||||||||||||||||
|
(Thousands)
|
||||||||||||||||||||||||||||||
Cash on deposit
|
$
|
452
|
|
|
452
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
392
|
|
|
$
|
392
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Pooled Funds
|
9,021
|
|
|
—
|
|
|
9,021
|
|
|
—
|
|
|
8,522
|
|
|
—
|
|
|
8,522
|
|
|
—
|
|
||||||||
Total Plan Assets
|
$
|
9,473
|
|
|
$
|
452
|
|
|
$
|
9,021
|
|
|
$
|
—
|
|
|
$
|
8,914
|
|
|
$
|
392
|
|
|
$
|
8,522
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal year ending September 30:
|
|
(Amounts in thousands)
|
||
2014
|
|
$
|
789
|
|
2015
|
|
516
|
|
|
2016
|
|
273
|
|
|
2017
|
|
43
|
|
|
2018
|
|
—
|
|
|
Thereafter
|
|
—
|
|
|
|
|
$
|
1,621
|
|
|
|
|
|
Service and System Integration Segment
|
|
|
||||||||||||||||||
For the Years Ended September 30,
|
|
Systems
Segment
|
|
Germany
|
|
United
Kingdom
|
|
U.S.
|
|
Total
|
|
Consolidated
Total
|
||||||||||||
|
|
(Amounts in thousands)
|
||||||||||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Product
|
|
$
|
5,483
|
|
|
$
|
8,666
|
|
|
$
|
581
|
|
|
$
|
51,114
|
|
|
$
|
60,361
|
|
|
$
|
65,844
|
|
Service
|
|
1,517
|
|
|
14,975
|
|
|
1,409
|
|
|
3,874
|
|
|
20,258
|
|
|
21,775
|
|
||||||
Total sales
|
|
7,000
|
|
|
23,641
|
|
|
1,990
|
|
|
54,988
|
|
|
80,619
|
|
|
87,619
|
|
||||||
Profit from operations
|
|
(1,603
|
)
|
|
154
|
|
|
(141
|
)
|
|
2,291
|
|
|
2,304
|
|
|
701
|
|
||||||
Assets
|
|
15,377
|
|
|
13,094
|
|
|
3,170
|
|
|
15,584
|
|
|
31,848
|
|
|
47,225
|
|
||||||
Capital expenditures
|
|
340
|
|
|
232
|
|
|
8
|
|
|
278
|
|
|
518
|
|
|
858
|
|
||||||
Depreciation and amortization
|
|
155
|
|
|
183
|
|
|
13
|
|
|
169
|
|
|
365
|
|
|
520
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Product
|
|
$
|
4,214
|
|
|
$
|
16,846
|
|
|
$
|
1,484
|
|
|
$
|
37,039
|
|
|
$
|
55,369
|
|
|
$
|
59,583
|
|
Service
|
|
6,927
|
|
|
13,730
|
|
|
1,434
|
|
|
3,133
|
|
|
18,297
|
|
|
25,224
|
|
||||||
Total sales
|
|
11,141
|
|
|
30,576
|
|
|
2,918
|
|
|
40,172
|
|
|
73,666
|
|
|
84,807
|
|
||||||
Profit (loss) from operations
|
|
3,230
|
|
|
598
|
|
|
57
|
|
|
1,084
|
|
|
1,739
|
|
|
4,969
|
|
||||||
Assets
|
|
18,451
|
|
|
14,058
|
|
|
3,504
|
|
|
15,053
|
|
|
32,615
|
|
|
51,066
|
|
||||||
Capital expenditures
|
|
222
|
|
|
197
|
|
|
27
|
|
|
105
|
|
|
329
|
|
|
551
|
|
||||||
Depreciation and amortization
|
|
111
|
|
|
167
|
|
|
26
|
|
|
156
|
|
|
349
|
|
|
460
|
|
2013
|
Americas
|
|
Europe
|
|
Asia
|
|
Total
|
|
% of
Total
|
|||||||||
|
(Amounts in thousands)
|
|||||||||||||||||
Systems
|
$
|
4,031
|
|
|
$
|
12
|
|
|
$
|
2,957
|
|
|
$
|
7,000
|
|
|
8
|
%
|
Service and System Integration
|
55,085
|
|
|
25,500
|
|
|
34
|
|
|
80,619
|
|
|
92
|
%
|
||||
Total
|
$
|
59,116
|
|
|
$
|
25,512
|
|
|
$
|
2,991
|
|
|
$
|
87,619
|
|
|
100
|
%
|
% of Total
|
68
|
%
|
|
29
|
%
|
|
3
|
%
|
|
100
|
%
|
|
|
|
||||
2012
|
|
|
|
|
|
|
|
|
|
|||||||||
Systems
|
$
|
7,584
|
|
|
$
|
—
|
|
|
$
|
3,557
|
|
|
$
|
11,141
|
|
|
13
|
%
|
Service and System Integration
|
39,579
|
|
|
34,053
|
|
|
34
|
|
|
73,666
|
|
|
87
|
%
|
||||
Total
|
$
|
47,163
|
|
|
$
|
34,053
|
|
|
$
|
3,591
|
|
|
$
|
84,807
|
|
|
100
|
%
|
% of Total
|
56
|
%
|
|
40
|
%
|
|
4
|
%
|
|
100
|
%
|
|
|
|
|
September 30, 2013
|
|
September 30, 2012
|
||||
|
(Amounts in thousands)
|
||||||
North America
|
$
|
1,287
|
|
|
$
|
994
|
|
Europe
|
543
|
|
|
489
|
|
||
Totals
|
$
|
1,830
|
|
|
$
|
1,483
|
|
|
September 30, 2013
|
|
September 30, 2012
|
||||
|
(Amounts in thousands)
|
||||||
North America
|
$
|
2,553
|
|
|
$
|
3,106
|
|
Europe
|
531
|
|
|
551
|
|
||
Totals
|
$
|
3,084
|
|
|
$
|
3,657
|
|
|
For the year ended
|
||||||||||||
|
September 30, 2013
|
|
September 30, 2012
|
||||||||||
|
Amount
|
|
% of
Revenues
|
|
Amount
|
|
% of
Revenues
|
||||||
|
(Amounts in millions)
|
||||||||||||
Customer A
|
$
|
15.7
|
|
|
18
|
%
|
|
$
|
12.6
|
|
|
15
|
%
|
Customer B
|
$
|
13.4
|
|
|
15
|
%
|
|
$
|
14.7
|
|
|
17
|
%
|
Customer C
|
$
|
10.5
|
|
|
12
|
%
|
|
$
|
2.6
|
|
|
3
|
%
|
|
Fair Value Measurements Using
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Balance
|
||||||||
|
As of September 30, 2013
|
||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Money Market funds
|
$
|
3,503
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,503
|
|
Total assets measured at fair value
|
$
|
3,503
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,503
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2012
|
||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money Market funds
|
$
|
3,498
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,498
|
|
Total assets measured at fair value
|
$
|
3,498
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,498
|
|
|
|
NAME OF SUBSIDIARY
|
STATE OR OTHER JURISDICTION OF INCORPORATION/
ORGANIZATION
|
|
|
CSP Inc. Securities Corp.
43 Manning Road
Billerica, MA 01821-3901
|
Massachusetts
|
|
|
CSP Inc. Foreign Sales Corp., Ltd.
43 Manning Road
Billerica, MA 01821-3901
|
U.S. Virgin Islands
|
|
|
Modcomp, Inc (1).
1500 South Powerline Road
Deerfield Beach, FL 33442
|
Florida
|
(1)
|
Modcomp has three subsidiaries operating in Europe
|
December 24, 2013
|
|
/s/ Victor Dellovo
|
Victor Dellovo
|
Chief Executive Officer and
|
President
|
December 24, 2013
|
|
/s/Gary W. Levine
|
Gary W. Levine
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
December 24, 2013
|
|
By:
|
/s/ Victor Dellovo
|
|
|
|
Victor Dellovo
|
|
|
|
Chief Executive Officer and President and Director
|
|
|
|
|
|
|
|
|
December 24, 2013
|
|
By:
|
/s/Gary W. Levine
|
|
|
|
Gary W. Levine
|
|
|
|
Chief Financial Officer
|