Summary of Significant Accounting Policies (Tables)

6 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Components of Deferred Profit

The components of deferred profit are as follows:

	March 31, 2016		September 30, 2015
	(dollars in thousands)
Deferred revenues	$	5,746	$	7,280
Deferred costs	2,315		2,407
Deferred profit	$	3,431	$	4,873

Schedule of Inventory, Current

The components of inventories are as follows:

	March 31, 2016		September 30, 2015
	(dollars in thousands)
Purchased parts and raw materials	$	10,707	$	11,587
Work-in-process	6,797		5,089
Finished goods	6,550		6,653
	$	24,054	$	23,329

Property, Plant and Equipment

The following is a summary of property, plant and equipment:

	March 31, 2016			September 30, 2015
	(dollars in thousands)
Land, building and leasehold improvements	$	18,266		$	18,095
Equipment and machinery	9,831			9,709
Furniture and fixtures	5,482			5,465
	33,579			33,269
Accumulated depreciation and amortization	(16,683		)	(15,508		)
	$	16,896		$	17,761

Schedule of Goodwill

	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
Goodwill recognized due to acquisitions	—			600		—		600
Net foreign exchange differences	53			—		—		53
Carrying value at March 31, 2016	$	5,397		$	5,063	$	728	$	11,188
Goodwill	$	6,685		$	5,063	$	728	$	12,476
Accumulated impairment losses	(1,288		)	—		—		(1,288		)
Carrying value at March 31, 2016	$	5,397		$	5,063	$	728	$	11,188

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
		March 31, 2016							September 30, 2015
		(dollars in thousands)
Customer lists	10 years	$	2,441	$	(884	)	$	1,557	$	2,434	$	(808	)	$	1,626
Technology	5-10 years	3,255		(1,649		)	1,606		3,223		(1,368		)	1,855
Trade names	10-15 years	1,458		(125		)	1,333		1,456		(72		)	1,384
Other	2-10 years	301		(229		)	72		278		(204		)	74
		$	7,455	$	(2,887	)	$	4,568	$	7,391	$	(2,452	)	$	4,939

Schedule of Product Warranty Liability

	Six Months Ended March 31,
	2016			2015
	(dollars in thousands)
Beginning balance	$	793		$	628
Warranty - merger	—			806
Additions for warranties issued during the period	430			211
Reductions in the liability for payments made under the warranty	(382		)	$	(673	)
Changes related to pre-existing warranties	3			180
Currency translation adjustment	15			$	(102	)
Ending balance	$	859		$	1,050

Effects of share-based compensation expense

Stock-based compensation expense reduced the Company’s results of operations by the following amounts:

	Three Months Ended March 31,						Six Months Ended March 31,
	2016			2015			2016			2015
	(dollars in thousands)
Effect on income before income taxes (1)	$	(366	)	$	(336	)	$	(708	)	$	(568	)
Effect on income taxes	51			58			98			95
Effect on net income	$	(315	)	$	(278	)	$	(610	)	$	(473	)

(1) Stock-based compensation expense is included in selling, general and administrative expenses.

Schedule of Share-based Compensation, Stock Options, Activity

Stock option transactions and the options outstanding are summarized as follows:

	Six Months Ended March 31,
	2016					2015
	Options			Weighted Average Exercise Price		Options			Weighted Average Exercise Price
Outstanding at beginning of period	1,627,477			$	9.11	1,063,324			$	7.37
Granted	350,075			5.25		327,500			9.74
Assumed - merger	—			—		367,229			14.19
Exercised	(9,188		)	3.27		(11,289		)	4.91
Forfeited	(62,116		)	13.87		(641		)	9.08
Outstanding at end of period	1,906,248			$	8.29	1,746,123			$	9.26
Exercisable at end of period	1,170,018			$	9.16	1,102,682			$	9.90
Weighted average fair value of options granted during the period	$	3.04				$	5.91

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of options was estimated at the applicable grant date using the Black-Scholes option pricing model with the following assumptions:

	Six Months Ended March 31,
	2016	2015
Risk free interest rate	2%	2%
Expected life	6 years	6 years
Dividend rate	0%	0%
Volatility	63%	67%

Schedule of Share-based Compensation, Restricted Stock Activity

Restricted stock transactions and awards outstanding are summarized as follows:

	Six Months Ended March 31,
	2016				2015
	Awards		Weighted Average Grant Date Fair Value		Awards		Weighted Average Grant Date Fair Value
Beginning Outstanding	13,540		$	7.98	35,203		$	10.13
Released	(13,540	)	7.98		(21,663	)	11.47
Ending Outstanding	—		$	—	13,540		$	7.98

Research and Development Expense

The table below shows gross research and development expenses and grants earned:

	Three Months Ended						Six Months Ended
	March 31, 2016			March 31, 2015			March 31, 2016			March 31, 2015
	(dollars in thousands)						(dollars in thousands)
Research, development and engineering	$	2,525		$	3,540		$	5,139		$	6,113
Grants earned	(365		)	(2,790		)	(692		)	(3,527		)
Net research, development and engineering	$	2,160		$	750		$	4,447		$	2,586