New Accounting Pronouncements (Tables)

9 Months Ended

Mar. 31, 2019

ASC 606 [Member]

Summary of Cumulative Effect of Changes to Unaudited Financial Statements

The following table summarizes the cumulative effect of the changes to our unaudited Consolidated Balance Sheet as of July 1, 2018 from the adoption of ASC 606:

							Opening
	At June 30,			ASC 606			Balance at
	2018			Adjustments			July 1, 2018
Assets
Unbilled receivables	$	-		$	1,864		$	1,864
Inventories		13,829			(1,350	)		12,479
Other current assets		1,327			49			1,376
Liabilities and Shareholders' Equity
Deferred revenue		8,691			(1,976	)		6,715
Long-Term Deferred Income Tax Liability		1,717			490			2,207
Retained earnings (deficit)		(510	)		2,049			1,539

The following table summarizes the cumulative effect of the changes to our unaudited Consolidated Balance Sheet as of March 31, 2019 from the adoption of ASC 606 (in thousands, except per share amount):

	As reported						Balances
	March 31,			ASC 606			without adoption
	2019			Adjustments			of ASC 606
	(unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	5,429		$	-		$	5,429
Short-term investments		741			-			741
Receivables:
Billed receivables, net		24,979			-			24,979
Unbilled receivables, net		6,634			(6,634	)		-
Other receivables		424			-			424
Inventories, net		11,905			4,134			16,039
Other current assets		2,280			(251	)		2,029
Total current assets		52,392			(2,751	)		49,641
Property and Equipment, Net		6,529			-			6,529
Goodwill		7,699			-			7,699
Intangible Assets, Net		3,165			-			3,165
Long-Term Investments		725			-			725
Long-Term Deferred Income Tax Asset		658			-			658
Total Assets	$	71,168		$	(2,751	)	$	68,417
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Line of credit and short-term notes payable	$	17		$	-		$	17
Accounts payable		6,642			-			6,642
Accrued liabilities and expenses		4,237			-			4,237
Accrued compensation		1,636			-			1,636
Current portion of taxes payable		369			-			369
Income taxes payable		630						630
Reserves for restructuring and other charges		-			-			-
Deferred revenue		6,155			2,936			9,091
Total current liabilities		19,686			2,936			22,622
Long-Term Taxes Payable		194			-			194
Long-Term Deferred Income Tax Liability		1,748			(1,320	)		428
Other Long-Term Liabilities		573			-			573
Total Liabilities	$	22,201		$	1,616		$	23,817
Shareholders' Equity
Preferred stock		-			-			-
Common stock		96			-			96
Accumulated other comprehensive loss		(2,957	)		119			(2,838	)
Additional paid-in capital		48,915			-			48,915
Retained earnings (deficit)		2,913			(4,486	)		(1,573	)
Total Shareholders' Equity	$	48,967		$	(4,367	)	$	44,600
Total Liabilities and Shareholders' Equity	$	71,168		$	(2,751	)	$	68,417

The following tables summarize the effect of adopting ASC 606 on our unaudited Consolidated Statement of Operations for the three and nine months ended March 31, 2019 (in thousands):

	As reported
	Three Months Ended			ASC 606			Balances without
	March 31, 2019			Adjustments			adoption of ASC 606
Net Sales	$	15,632		$	(3,254	)	$	12,378
Cost of Sales		10,485			(1,463	)		9,022
Gross Profit		5,147			(1,791	)		3,356
Operating Expenses
Selling, general and administrative		4,415			2			4,417
Engineering, research and development		1,812			-			1,812
Severance, impairment and other charges		-			-			-
Total operating expenses		6,227			2			6,229
Operating Loss		(1,080	)		(1,793	)		(2,873	)
Other Income and (Expenses)
Interest expense, net		(16	)		-			(16	)
Foreign currency gain, net		(127	)		-			(127	)
Other income (expenses), net		28			-			28
Total other income and (expenses)		(115	)		-			(115	)
Loss Before Income Taxes		(1,195	)		(1,793	)		(2,988	)
Income Tax Benefit		130			381			511
Net Loss	$	(1,065	)	$	(1,412	)	$	(2,477	)

	As reported
	Nine Months Ended			ASC 606			Balances without
	March 31, 2019			Adjustments			adoption of ASC 606
Net Sales	$	58,627		$	(5,831	)	$	52,796
Cost of Sales		37,338			(2,784	)		34,554
Gross Profit		21,289			(3,047	)		18,242
Operating Expenses
Selling, general and administrative		13,992			202			14,194
Engineering, research and development		6,090			-			6,090
Severance, impairment and other charges		(609	)		-			(609	)
Total operating expenses		19,473			202			19,675
Operating Income (Loss)		1,816			(3,249	)		(1,433	)
Other Income and (Expenses)
Interest expense, net		(72	)		-			(72	)
Foreign currency loss, net		(178	)		-			(178	)
Other income (expenses), net		33			-			33
Total other income and (expenses)		(217	)		-			(217	)
Income (Loss) Before Income Taxes		1,599			(3,249	)		(1,650	)
Income Tax (Expense) Benefit		(225	)		830			605
Net Income (Loss)	$	1,374		$	(2,419	)	$	(1,045	)