Credit Facilities

3 Months Ended

Sep. 30, 2015

Credit Facilities [Abstract]

Credit Facilities

10.Credit Facilities

The Company had no bank debt outstanding at September 30, 2015 and June 30, 2014. 

At September 30, 2015, the Company had a $6.0 million secured credit agreement with Comerica Bank (“Credit Agreement”) which was set to expire on November 2, 2015.  Proceeds under the Credit Agreement may be used for working capital and capital expenditures.  Security for the Credit Agreement is substantially all non-real estate assets of the Company held in the United States.  Borrowings are designated as a Libor-based Advance or as a Prime-based Advance if the Libor-based Advance is not available.  Interest on Libor-based Advances is calculated at 2.35% above the Libor Rate offered at the time for the period chosen, and is payable on the last day of the applicable period.  Through October 30, 2015, quarterly, the Company paid a commitment fee of 0.15% per annum on the average daily unused portion of the revolving credit commitment.  Through October 30, 2015, the Company was required to maintain a minimum Tangible Net Worth of $31.0 million.  The Company was in compliance with the Tangible Net Worth financial covenant at September 30, 2015.  At September 30, 2015, the Credit Agreement limited borrowings to the lesser of $6.0 million or 80% of eligible accounts receivable, which was $2.3 million at September 30, 2015.  The Company is permitted to declare dividends of up to $2.5 million in any fiscal year provided the Company maintains the required minimum Tangible Net Worth.  The Company is also required to have no advances outstanding under the Credit Agreement for 30 days (which need not be consecutive) during each calendar year. On October 30, 2015, the Company entered into an Eighth Amendment to the Credit Agreement, see Note 16 of the Notes to the Consolidated Financial Statements, “Subsequent Events” for a description of the Eighth Amendment.

At September 30, 2015, the Company's German subsidiary (“GmbH”) had an unsecured credit facility totaling 350,000Euros (equivalent to approximately $390,000).  The facility allows 100,000Euros to be used to finance working capital needs and equipment purchases or capital leases.  The facility allows up to 250,000Euros to be used for providing bank guarantees.  Any borrowings for working capital needs will bear interest at 4.25%.  Any outstanding bank guarantees will bear interest at 2.0%.  The GmbH credit facility is cancelable at any time by either GmbH or the bank and any amounts then outstanding would become immediately due and payable.  At September 30, 2015 and June 30, 2014, GmbH had no borrowings or bank guarantees outstanding.