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Document And Entity Information
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Document And Entity Information (USD $)
 12 Months Ended
Dec. 31, 2013
Mar. 01, 2014
Jun. 30, 2013
Document And Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2013    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2013    
Entity Registrant Name COMMUNICATIONS SYSTEMS INC    
Entity Central Index Key 0000022701    
Current Fiscal Year End Date --12-31    
Entity Filer Category Accelerated Filer    
Entity Common Stock, Shares Outstanding   8,556,473  
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Well-known Seasoned Issuer No    
Entity Public Float     $ 74,909,000

Consolidated Balance Sheets
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Consolidated Balance Sheets (USD $)
Dec. 31, 2013
Dec. 31, 2012
CURRENT ASSETS:    
Cash and cash equivalents $ 20,059,120 $ 17,869,712
Investments 5,742,314 12,701,538
Trade accounts receivable, less allowance for doubtful accounts of $69,000 and $69,000, respectively 22,902,323 14,683,227
Inventories 29,111,656 33,752,710
Prepaid income taxes 1,381,502 2,113,926
Other current assets 716,784 783,352
Deferred income taxes 3,758,750 4,013,628
TOTAL CURRENT ASSETS 83,672,449 85,918,093
PROPERTY, PLANT AND EQUIPMENT, net 14,941,492 14,474,913
OTHER ASSETS:    
Investments 3,920,978 5,376,397
Goodwill    5,956,934
Funded pension assets 305,028  
Other assets 692,794 808,308
TOTAL OTHER ASSETS 4,918,800 12,141,639
TOTAL ASSETS 103,532,741 112,534,645
CURRENT LIABILITIES:    
Current portion of long-term debt 489,706 457,464
Accounts payable 4,894,869 9,237,233
Accrued compensation and benefits 3,927,728 3,044,864
Accrued consideration 558,801 770,041
Other accrued liabilities 1,765,428 1,670,009
Dividends payable 1,436,318 61,833
TOTAL CURRENT LIABILITIES 13,072,850 15,241,444
LONG TERM LIABILITIES:    
Long-term compensation plans   350,457
Uncertain tax positions 400,846 320,426
Deferred income taxes 809,179 1,381,785
Pension liabilities   127,611
Long term debt - mortgage payable 627,823 1,117,529
TOTAL LONG-TERM LIABILITIES 1,837,848 3,297,808
COMMITMENTS AND CONTINGENCIES (Footnote 8)      
STOCKHOLDERS' EQUITY    
Preferred stock, par value $1.00 per share; 3,000,000 shares authorized; none issued      
Common stock, par value $.05 per share; 30,000,000 shares authorized; 8,553,320 and 8,474,896 shares issued and outstanding, respectively 427,666 423,745
Additional paid-in capital 37,110,671 36,404,518
Retained earnings 51,323,718 57,755,178
Accumulated other comprehensive loss (240,012) (588,048)
TOTAL STOCKHOLDERS' EQUITY 88,622,043 93,995,393
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 103,532,741 $ 112,534,645

Consolidated Balance Sheets (Parenthetical)
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Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Consolidated Balance Sheets [Abstract]    
Trade accounts receivable, allowance for doubtful accounts $ 69,000 $ 69,000
Preferred stock, par value $ 1.00 $ 1.00
Preferred stock, shares authorized 3,000,000 3,000,000
Preferred stock, shares issued 0 0
Common stock, par value $ 0.05 $ 0.05
Common stock, shares authorized 30,000,000 30,000,000
Common stock, shares issued 8,553,320 8,474,896
Common stock, shares outstanding 8,553,320 8,474,896

Consolidated Statements Of (Loss) Income And Comprehensive (Loss) Income
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Consolidated Statements Of (Loss) Income And Comprehensive (Loss) Income (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Consolidated Statements Of (Loss) Income And Comprehensive (Loss) Income [Abstract]      
Sales $ 131,319,510 $ 104,249,654 $ 143,775,051
Costs and expenses:      
Cost of sales 86,420,982 62,752,763 84,879,924
Selling, general and administrative expenses 36,742,869 38,100,773 40,108,221
Impairment loss 5,849,853   1,271,986
Restructuring expense 1,149,439    
Total costs and expenses 130,163,143 100,853,536 126,260,131
Operating income 1,156,367 3,396,118 17,514,920
Other income and (expenses):      
Investment and other income 125,985 75,187 313,544
(Loss)/gain on sale of assets (73,126) 62,630 (27,081)
Interest and other expense (106,101) (136,255) (181,393)
Other income (loss), net (53,242) 1,562 105,070
Income from operations before income taxes 1,103,125 3,397,680 17,619,990
Income tax expense 2,061,013 1,159,566 7,822,124
Net (loss) income (957,888) 2,238,114 9,797,866
Other comprehensive income (loss), net of tax:      
Additional minimum pension liability adjustments 37,000 1,311,000 (525,000)
Unrealized (losses)/gains on available-for-sale securities (21,964) 26,223 (16,691)
Foreign currency translation adjustment 333,000 (2,032,877) 934,934
Total other comprehensive (loss) income 348,036 (695,654) 393,243
Comprehensive (loss) income $ (609,852) $ 1,542,460 $ 10,191,109
Basic net (loss) income per share: $ (0.11) $ 0.26 $ 1.16
Diluted net (loss) income per share: $ (0.11) $ 0.26 $ 1.15
Weighted Average Basic Shares Outstanding 8,531,073 8,508,497 8,448,612
Weighted Average Dilutive Shares Outstanding 8,531,073 8,518,613 8,495,873

Consolidated Statements Of Changes In Stockholders' Equity
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Consolidated Statements Of Changes In Stockholders' Equity (USD $)
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Loss [Member]
Total
BALANCE at Dec. 31, 2010 $ 421,144 $ 34,491,370 $ 56,769,816 $ (285,637) $ 91,396,693
BALANCE, Shares at Dec. 31, 2010 8,422,890        
Net income (loss)     9,797,866   9,797,866
Issuance of common stock under Employee Stock Purchase Plan 515 151,761     152,276
Issuance of common stock under Employee Stock Purchase Plan, Shares 10,308        
Issuance of common stock to Employee Stock Ownership Plan 1,125 314,902     316,027
Issuance of common stock to Employee Stock Ownership Plan, Shares 22,493        
Issuance of common stock under Employee Stock Option Plan 450 72,450     72,900
Issuance of common stock under Employee Stock Option Plan, Shares 9,000        
Issuance of common stock under Executive Stock Plan 105 31,974     32,079
Issuance of common stock under Executive Stock Plan, Shares 2,083        
Tax benefit from non-qualified stock options   21,920     21,920
Share-based compensation   448,896     448,896
Shareholder dividends     (5,101,340)   (5,101,340)
Other comprehensive income (loss)       393,243 393,243
BALANCE at Dec. 31, 2011 423,339 35,533,273 61,466,342 107,606 97,530,560
BALANCE, Shares at Dec. 31, 2011 8,466,774        
Net income (loss)     2,238,114   2,238,114
Issuance of common stock under Employee Stock Purchase Plan 692 171,078     171,770
Issuance of common stock under Employee Stock Purchase Plan, Shares 13,849        
Issuance of common stock to Employee Stock Ownership Plan 1,807 506,391     508,198
Issuance of common stock to Employee Stock Ownership Plan, Shares 36,145        
Issuance of common stock under Non-Employee Stock Option Plan 600 84,983     85,583
Issuance of common stock under Non-Employee Stock Option Plan, Shares 12,000        
Issuance of common stock under Executive Stock Plan 808 39,503     40,311
Issuance of common stock under Executive Stock Plan, Shares 16,156        
Tax benefit from non-qualified stock options   67,835     67,835
Share-based compensation   302,964     302,964
Purchase of common stock (3,501) (301,509) (452,941)   (757,951)
Purchase of common stock, Shares (70,028)        
Shareholder dividends     (5,496,336)   (5,496,336)
Other comprehensive income (loss)       (695,654) (695,654)
BALANCE at Dec. 31, 2012 423,745 36,404,518 57,755,178 (588,048) 93,995,393
BALANCE, Shares at Dec. 31, 2012 8,474,896        
Net income (loss)     (957,888)   (957,888)
Issuance of common stock under Employee Stock Purchase Plan 849 172,354     173,203
Issuance of common stock under Employee Stock Purchase Plan, Shares 16,977        
Issuance of common stock to Employee Stock Ownership Plan 2,230 461,589     463,819
Issuance of common stock to Employee Stock Ownership Plan, Shares 44,598        
Issuance of common stock under Non-Employee Stock Option Plan 750 109,500     110,250
Issuance of common stock under Non-Employee Stock Option Plan, Shares 15,000        
Issuance of common stock under Executive Stock Plan 92 27,312     27,404
Issuance of common stock under Executive Stock Plan, Shares 1,849        
Tax benefit from non-qualified stock options   16,284     16,284
Share-based compensation   (80,886)     (80,886)
Shareholder dividends     (5,473,572)   (5,473,572)
Other comprehensive income (loss)       348,036 348,036
BALANCE at Dec. 31, 2013 $ 427,666 $ 37,110,671 $ 51,323,718 $ (240,012) $ 88,622,043
BALANCE, Shares at Dec. 31, 2013 8,553,320        

Consolidated Statements Of Cash Flows
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Consolidated Statements Of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net (loss) income $ (957,888) $ 2,238,114 $ 9,797,866
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 2,184,830 2,133,511 2,100,735
Share-based compensation (80,886) 302,964 448,896
Deferred taxes (317,727) (631,626) 1,695,595
Impairment loss 5,849,853   1,271,986
Change in fair value of acquisition-related contingent consideration (43,898) 85,501  
Loss/(gain) on sale of assets 73,126 (62,630) 27,081
Excess tax benefit from share based payments (16,284) (67,835) (21,920)
Changes in assets and liabilities:      
Trade receivables (8,207,253) (189,775) 3,273,730
Inventories 4,647,916 (7,705,772) (602,414)
Prepaid income taxes 732,618 1,776,601 (3,600,652)
Other assets 89,533 252,378 (78,349)
Accounts payable (4,342,626) 4,819,481 (1,025,703)
Accrued compensation and benefits 994,012 (2,250,647) 751,925
Other accrued liabilities 71,293 (680,171) 395,133
Income taxes payable 96,704 (15,168) (335,374)
Other   195,244 (32,022)
Net cash provided by operating activities 773,323 200,170 14,066,513
CASH FLOWS FROM INVESTING ACTIVITIES:      
Capital expenditures (2,699,347) (2,607,958) (2,755,991)
Purchases of investments (4,401,321) (15,010,778) (20,884,014)
Acquisition of business     (3,138,367)
Proceeds from the sale of fixed assets 82,078 198,109 22,555
Proceeds from the sale of investments 12,794,000 20,456,039 23,635,385
Net cash provided by (used in) investing activities 5,775,410 3,035,412 (3,120,432)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Cash dividends paid (4,099,087) (6,734,466) (5,064,811)
Mortgage principal payments (457,464) (427,345) (399,209)
Proceeds from issuance of common stock 310,857 297,664 257,255
Excess tax benefit from stock based payments 16,284 67,835 21,920
Payment of contingent consideration related to acquisition (161,060) (370,096)  
Purchase of common stock   (757,951)  
Net cash used in financing activities (4,390,470) (7,924,359) (5,184,845)
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH 31,145 42,779 (33,084)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,189,408 (4,645,998) 5,728,152
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 17,869,712 22,515,710 16,787,558
CASH AND CASH EQUIVALENTS AT END OF YEAR 20,059,120 17,869,712 22,515,710
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:      
Income taxes paid 1,556,590 87,343 10,037,938
Interest paid 106,101 138,477 165,514
Dividends declared not paid 1,436,318   1,270,016
Acquisition costs in accrued liabilities     $ 1,002,623

Summary Of Significant Accounting Policies
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Summary Of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2013
Summary Of Significant Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Description of business: Communications Systems, Inc. (herein collectively called “CSI,” “our” or the “Company”) is a Minnesota corporation organized in 1969 that operates directly and through its subsidiaries located in the United States, Costa Rica, the United Kingdom and China. CSI is principally engaged through its Suttle business unit in the manufacture and sale of modular connecting and wiring devices for voice and data communications, digital subscriber line filters, and structured wiring systems and through its Transition Networks business unit in the manufacture of media and rate conversion products for telecommunications networks. CSI also provides through its JDL Technologies business unit IT solutions including network design, computer infrastructure installations, IT service management, change management, network security and network operations services.

 

The Company classifies its businesses into three segments: Suttle, which manufactures U.S. standard modular connecting and wiring devices for voice and data communications; Transition Networks, which designs and markets media conversion products, ethernet switches, and other connectivity and data transmission products; and JDL Technologies, (JDL), which provides IT services;  non-allocated general and administrative expenses are separately accounted for as “Other” in the Company’s segment reporting. There are no material intersegment revenues.

 

Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries.  All material intercompany transactions and accounts have been eliminated.

 

Use of estimates: The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company uses estimates based on the best information available in recording transactions and balances resulting from operations.  Actual results could differ from those estimates.  The Company’s estimates consist principally of reserves for doubtful accounts, sales returns, warranty costs, asset impairment evaluations, accruals for compensation plans, self-insured medical and dental accruals, pension liabilities, lower of cost or market inventory adjustments, provisions for income taxes and deferred taxes and depreciable lives of fixed assets.

 

Cash equivalents: For purposes of the consolidated statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. As of December 31, 2013,  the Company had $20,059,000 in cash and cash equivalents. Of this amount, $5,752,000 was invested in short-term money market funds that are not considered to be bank deposits and are not insured or guaranteed by the federal deposit insurance company (FDIC) or other government agency. These money market funds seek to preserve the value of the investment at $1.00 per share; however, it is possible to lose money investing in these funds. The remainder is operating cash and certificates of deposit which are fully insured through the FDIC.

 

Investments:  Investments consist of certificates of deposit, commercial paper, and corporate notes and bonds that are traded on the open market and are classified as available-for-sale at December 31, 2013. Available-for-sale investments are reported at fair value with unrealized gains and losses excluded from operations and reported as a separate component of stockholders’ equity, net of tax  (see Accumulated Comprehensive income below).

 

Inventories: Inventories are stated at the lower of cost or market. Cost is determined by the first-in, first-out method. Provision to reduce inventories to the lower of cost or market is made based on a review of excess and obsolete inventories, estimates of future sales, examination of historical consumption rates and the related value of component parts.

 

Property, plant and equipment: Property, plant and equipment are recorded at cost.  Depreciation is computed using the straight-line method.  Depreciation included in cost of sales and selling, general and administrative expenses for continuing operations was $2,083,000, $2,030,000 and $2,058,000 for 2013,  2012 and 2011, respectively.  Maintenance and repairs are charged to operations and additions or improvements are capitalized.  Items of property sold, retired or otherwise disposed of are removed from the asset and accumulated depreciation accounts and any gains or losses on disposal are reflected in operations.

 

Goodwill and Other Intangible Assets: Goodwill represents the amount by which the purchase prices (including liabilities assumed) of acquired businesses exceed the estimated fair value of the net tangible assets and separately identifiable assets of these businesses. Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested at least annually for impairment. The Company reassesses the value of our reporting units and related goodwill balances at the end of each fiscal year and at other times if events have occurred or circumstances exist that indicate the carrying amount of goodwill may not be recoverable. Based on the step one and step two analysis, considering Transition Networks’ reduced earnings and cash flow forecasts, the Company determined that Transition Networks’ goodwill was fully impaired and recorded a goodwill impairment for this segment of $5,850,000 in the third quarter of 2013.

 

Recoverability of long-lived assets: The Company reviews its long-lived assets periodically to determine potential impairment by comparing the carrying value of the assets with expected net cash flows expected to be provided by operating activities of the business or related products.  If the sum of the expected future net cash flows is less than the carrying value, an impairment loss would be measured by comparing the amount by which the carrying value exceeds the fair value of the asset.

 

Warranty:  The Company reserves for the estimated cost of product warranties at the time revenue is recognized.  We estimate the costs of our warranty obligations based on our warranty policy or applicable contractual warranty, historical experience of known product failure rates, and use of materials and service delivery costs incurred in correcting product failures.  Management reviews the estimated warranty liability on a quarterly basis to determine its adequacy. 

 

The following table presents the changes in the Company’s warranty liability for the years ended December 31, 2013 and 2012, which relate to normal product warranties and a five-year obligation to provide for potential future liabilities for certain network equipment sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

 

 

2013

 

 

2012

Beginning balance

 

$
590,000 

 

$
634,000 

Amounts charged to expense

 

 
237,000 

 

 
217,000 

Actual warranty costs paid

 

 
(263,000)

 

 
(261,000)

Ending balance

 

$
564,000 

 

$
590,000 

 

Accumulated Other Comprehensive income: The components of accumulated other comprehensive income are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

 

 

2013

 

 

2012

Minimum pension liability

 

$
1,796,000 

 

$
1,759,000 

Unrealized gain on available-for-sale investments

 

 
2,000 

 

 
24,000 

Foreign currency translation

 

 
(2,038,000)

 

 
(2,371,000)

 

 

$
(240,000)

 

$
(588,000)

 

The functional currency of Austin Taylor and Patapsco is the British pound.  Assets and liabilities denominated in this foreign currency were translated into U.S. dollars at year-end exchange rates.  Revenue and expense transactions were translated using average exchange rates.  Suttle Costa Rica and Transition China use the U.S. dollar as their functional currency. 

 

Revenue recognition: The Company’s manufacturing operations (Suttle and Transition Networks) recognize revenue when the earnings process is complete, evidenced by persuasive evidence of an agreement, delivery has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured.  Revenue is recognized for domestic and international sales at the shipping point or delivery to customers, based on the related shipping terms. Risk of loss transfers at the point of shipment or delivery to customers, and the Company has no further obligation after such time. Sales are made directly to customers and through distributors. Payment terms for distributors are consistent with the terms of the Company’s direct customers. The Company records a provision for sales returns, sales incentives and warranty costs at the time of the sale based on historical experience and current trends.


JDL generally records revenue on hardware, software and related equipment sales and installation contracts when the revenue recognition criteria are met and products are installed and accepted by the customer.  JDL records revenue on service contracts on a straight-line basis over the contract period, unless evidence suggests the revenue is earned in a different pattern. Each contract is individually reviewed to determine when the earnings process is complete.

 

Research and development: Research and development costs consist of outside testing services, equipment and supplies associated with enhancing existing products and developing new products.  Research and development costs are expensed when incurred and totaled $2,760,000 in 2013, $2,304,000 in 2012 and $2,045,000 in 2011.  

 

Net income per share: Basic net income per common share is based on the weighted average number of common shares outstanding during each year. Diluted net income per common share adjusts for the dilutive effect of potential common shares outstanding.  The Company’s only potential common shares outstanding are stock options and unvested shares, which resulted in a dilutive effect of 10,116 shares and 47,261 shares in 2012 and 2011, respectively.  Due to the net loss in 2013, there was no dilutive impact from stock options or unvested shares.  The Company calculates the dilutive effect of outstanding options and unvested shares using the treasury stock method. The number of shares not included in the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of common stock during the year for 2013,  2012, and 2011 was 0,  80,290 and 0, respectively.

 

Share based compensation: The Company accounts for share based compensation awards on a fair value basis. The estimated grant date fair value of each stock-based award is recognized in income over the requisite service period (generally the vesting period). The estimated fair value of each option is calculated using the Black-Scholes option-pricing model.   


Cash Equivalents And Investments
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Cash Equivalents And Investments
 12 Months Ended
Dec. 31, 2013
Cash Equivalents And Investments [Abstract]  
Cash Equivalents And Investments

NOTE 2 –CASH EQUIVALENTS AND INVESTMENTS

 

The following tables show the Company’s cash equivalents and available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash equivalents or short and long term investments as of December 31, 2013 and December 31, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

Amortized Cost

 

Gross Unrealized Gains

 

Gross Unrealized Losses

 

Fair Value

 

Cash Equivalents

 

Short-Term Investments

 

Long-Term Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
5,751,965 

 

$

 -

 

$

 -

 

$
5,751,965 

 

$
5,751,965 

 

$

 

 

$

 

Subtotal

 
5,751,965 

 

 

 -

 

 

 -

 

 
5,751,965 

 

 
5,751,965 

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 
4,024,031 

 

 
687 

 

 
(4,992)

 

 
4,019,726 

 

 
239,904 

 

 
2,582,502 

 

 
1,197,320 

Corporate Notes/Bonds

 
5,861,162 

 

 
22,830 

 

 
(522)

 

 
5,883,470 

 

 

 -

 

 
3,159,812 

 

 
2,723,658 

Subtotal

 
9,885,193 

 

 
23,517 

 

 
(5,514)

 

 
9,903,196 

 

 
239,904 

 

 
5,742,314 

 

 
3,920,978 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
15,637,158 

 

$
23,517 

 

$
(5,514)

 

$
15,655,161 

 

$
5,991,869 

 

$
5,742,314 

 

$
3,920,978 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

Amortized Cost

 

Gross Unrealized Gains

 

Gross Unrealized Losses

 

Fair Value

 

Cash Equivalents

 

Short-Term Investments

 

Long-Term Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
5,497,788 

 

$

 -

 

$

 -

 

$
5,497,788 

 

$
5,497,788 

 

$

 

 

$

 

Subtotal

 
5,497,788 

 

 

 -

 

 

 -

 

 
5,497,788 

 

 
5,497,788 

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 
8,157,749 

 

 
3,727 

 

 
(1,945)

 

 
8,159,531 

 

 

 -

 

 
7,258,768 

 

 
900,763 

Corporate Notes/Bonds

 
8,241,327 

 

 
35,364 

 

 
(914)

 

 
8,275,777 

 

 

 -

 

 
3,800,143 

 

 
4,475,634 

Commercial Paper

 
1,638,892 

 

 
3,735 

 

 

 -

 

 
1,642,627 

 

 

 -

 

 
1,642,627 

 

 

 -

Subtotal

 
18,037,968 

 

 
42,826 

 

 
(2,859)

 

 
18,077,935 

 

 

 -

 

 
12,701,538 

 

 
5,376,397 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
23,535,756 

 

$
42,826 

 

$
(2,859)

 

$
23,575,723 

 

$
5,497,788 

 

$
12,701,538 

 

$
5,376,397 

 

 

The Company tests for other than temporary losses on a quarterly basis and has considered the unrealized losses indicated above to be temporary in nature. The Company intends to hold the investments until it can recover the full principal amount and has the ability to do so based on other sources of liquidity. The Company expects such recoveries to occur prior to the contractual maturities.  All unrealized losses as of December 31, 2013 were in a continuous unrealized loss position for less than twelve months and are not deemed to be other than temporarily impaired as of December 31, 2013.

The following table summarizes the estimated fair value of our investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of December 31, 2013:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

Estimated Market Value

 

 

 

 

 

Due within one year

 

$  
5,730,052 

 

$
5,982,218 

Due after one year through five years

 

 
3,915,131 

 

 
3,920,978 

 

 

$ 

9,645,183 

 

$
9,903,196 

 

The Company did not recognize any gross realized gains and gross realized losses were immaterial during the years ending December 31, 2013 and 2012, respectively. If the Company had realized gains or losses, they would be included within investment and other income in the accompanying consolidated results of operations.


Inventories
v0.0.0.0
Inventories
 12 Months Ended
Dec. 31, 2013
Inventories [Abstract]  
Inventories

NOTE 3 - INVENTORIES

 

Inventories consist of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

 

2013

 

2012

Finished goods

 

$         

18,733,636 

 

$
21,252,143 

Raw and processed materials

 

 
10,378,020 

 

 
12,500,567 

 

 

$
29,111,656 

 

$
33,752,710 

 


Property, Plant And Equipment
v0.0.0.0
Property, Plant And Equipment
 12 Months Ended
Dec. 31, 2013
Property, Plant And Equipment [Abstract]  
Property, Plant And Equipment

NOTE 4 - PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment and the estimated useful lives are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated

 

December 31

 

useful life

 

2013

 

2012

Land

 

 

 

 

 

$
3,116,177 

 

$
3,135,351 

Buildings and improvements

7-40 years

 

 
8,527,594 

 

 
8,858,976 

Machinery and equipment

3-15 years

 

 
25,408,221 

 

 
23,247,888 

Furniture and fixtures

5-10 years

 

 
4,041,884 

 

 
3,644,306 

Construction in progress

 

 

 

 

 

 
617,708 

 

 
1,546,732 

 

 

 

 

 

 

 
41,711,584 

 

 
40,433,253 

Less accumulated depreciation

 

 

 

 

 

 
(26,770,092)

 

 
(25,958,340)

 

 

 

 

 

 

$
14,941,492 

 

$
14,474,913 

 


Acquisition
v0.0.0.0
Acquisition
 12 Months Ended
Dec. 31, 2013
Acquisition [Abstract]  
Acquisition

NOTE 5 – ACQUISITION

 

On July 27, 2011, the Company acquired Patapsco Designs Limited of the UK (“Patapsco”). The purchase price totals $5,094,000, with cash acquired totaling $862,000.  The purchase price included initial consideration of $3,271,000, deferred consideration of $466,000 to be paid out no later than 18 months from the acquisition date, $656,000 in working capital adjustments, and $701,000 in contingent consideration.  The Company agreed to pay consideration up to $818,000 contingent upon the Patapsco business meeting gross margin and other non-financial targets, with the consideration to be paid out no later than two and a half years from the acquisition date.  Although the maximum contingent consideration was $818,000, the Company had recognized $701,000 as the estimated fair value of the contingent consideration at the date of acquisition.  This contingent consideration was calculated based on the exchange rate at the date of acquisition and actual payments may differ based on fluctuations in the exchange rate between the dollar and the pound. At December 31,  2013, the Company has estimated liabilities of $559,000 related to outstanding consideration payments.


Goodwill And Other Intangible Assets
v0.0.0.0
Goodwill And Other Intangible Assets
 12 Months Ended
Dec. 31, 2013
Goodwill And Other Intangible Assets [Abstract]  
Goodwill And Other Intangible Assets

NOTE 6 – GOODWILL AND OTHER INTANGIBLE ASSETS

The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 by segment are as follows:

 

 

 

 

 

 

 

 

 

 

Suttle

Transition Networks

Total

 

 

 

 

 

 

 

 

January 1, 2012

 

$

 -

$
5,990,571 

$
5,990,571 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

 -

 
(33,637)

 
(33,637)

 

 

 

 

 

 

 

 -

December 31, 2012

 

$

 -

 
5,956,934 

 
5,956,934 

 

 

 

 

 

 

 

 

January 1, 2013

 

$

 -

$
5,956,934 

$
5,956,934 

 

 

 

 

 

 

 

 

Impairment loss

 

 

 -

 
(5,849,853)

 
(5,849,853)

Foreign currency translation

 

 

 -

 
(107,081)

 
(107,081)

 

 

 

 

 

 

 

 

December 31, 2013

 

$

 -

$

 -

$

 -

 

 

 

 

 

 

 

 

Gross goodwill

 

 
1,271,986 

$
5,849,853 

$
7,121,839 

Accumulated impairment loss

 

 
(1,271,986)

 
(5,849,853)

 
(7,121,839)

Balance at December 31, 2013

 

$

 -

$

 -

$

 -

 

During the quarter ended September 30, 2013, due to the loss of key personnel and the continued decline in year-over-year revenues due primarily to continued slowdown in domestic government spending as well as a decline in sales of its legacy products, management concluded that these events and circumstances were indicators to require us to perform an interim goodwill impairment analysis of our Transition Networks reporting unit. This analysis included the determination of the reporting unit’s fair value primarily using discounted cash flows modeling. Based on the step one and step two analysis, considering Transition Networks’ reduced earnings and cash flow forecasts, the Company determined that Transition Networks’ goodwill was fully impaired and recorded a goodwill impairment for this segment of $5,850,000.  This analysis was the result of a level 3 fair value measurement.

 

The Company’s identifiable intangible assets with finite lives are being amortized over their estimated useful lives and are included within other assets in the consolidated balance sheets and were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

Gross Carrying Amount

Accumulated Amortization

Foreign Currency Translation

Net

 

 

 

 

 

 

Trademarks

 
81,785 
(17,262)
(10,545)
53,978 

Customer relationships

 
490,707 
(72,500)
(43,105)
375,102 

Technology

 
228,996 
(67,667)
(42,066)
119,263 

 

 
801,488 
(157,429)
(95,716)
548,343 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

 

Gross Carrying Amount

Accumulated Amortization

Foreign Currency Translation

Net

 

 

 

 

 

 

Trademarks

 
81,785 
(16,346)
(1,018)
64,421 

Customer relationships

 
490,707 
(68,652)
(6,108)
415,947 

Technology

 
228,996 
(64,075)
(2,850)
162,071 

 

 
801,488 
(149,073)
(9,976)
642,439 

 

 

 

 

 

 

 

Amortization expense on these identifiable intangible assets was $102,000 and $103,000 in 2013 and 2012, respectively. The amortization expense is included in selling, general and administrative expenses.


Employment Retirement Benefits
v0.0.0.0
Employment Retirement Benefits
 12 Months Ended
Dec. 31, 2013
Employee Retirement Benefits [Abstract]  
Employee Retirement Benefits

NOTE 7 - EMPLOYEE RETIREMENT BENEFITS

 

The Company has an Employee Savings Plan (401(k)) and matches a percentage of employee contributions up to six percent of compensation.  Contributions to the plan in 2013,  2012 and 2011 were $457,000, $471,000, and $479,000, respectively.

 

The Company’s U.K.-based subsidiary Austin Taylor maintains defined benefit pension plans that cover approximately two active employees.  The Company does not provide any other post-retirement benefits to its employees.  The following table summarizes the balance sheet impact, including benefit obligations, assets and funded status of Austin Taylor’s pension plans at December 31, 2013 and 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

 

2012

Change in benefit obligation:

 

 

 

 

 

 

Benefit obligation at the beginning of the year

 

$         

5,675,000 

 

$
5,150,000 

Service cost

 

 
5,000 

 

 
275,000 

Interest cost

 

 
186,000 

 

 
244,000 

Participant contributions

 

 
0 

 

 
0 

Augmentations

 

 
211,000 

 

 
0 

Actuarial (gains)/losses

 

 
(198,000)

 

 
325,000 

Benefits paid

 

 
(293,000)

 

 
(552,000)

Changes due to plan settlement

 

 
(2,363,000)

 

 
0 

Foreign currency gains

 

 
117,000 

 

 
233,000 

Benefit obligation at the end of the year

 

 
3,340,000 

 

 
5,675,000 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

 
5,547,000 

 

 
6,056,000 

Actual return on plan assets

 

 
343,000 

 

 
(289,000)

Employer contributions

 

 
297,000 

 

 
58,000 

Participant contributions

 

 
0 

 

 
0 

Benefits paid

 

 
(293,000)

 

 
(552,000)

Changes due to plan settlement

 

 
(2,363,000)

 

 
0 

Foreign currency losses

 

 
114,000 

 

 
274,000 

Fair value of plan assets at end of year

 

 
3,645,000 

 

 
5,547,000 

 

 

 

 

 

 

 

Funded status at end of year – net asset /(liability)

 

$
305,000 

 

$
(128,000)

 

 

Weighted average assumptions used to determine net periodic pension costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 
4.6% 

 

 
4.3% 

Expected return on assets

 

 
5.5% 

 

 
5.1% 

 

The plans are funded through UK government gilts and an insurance contract both recorded in the financial statements at fair value. The related amounts for each of these investments were $3,645,000 and $0 as of December 31, 2013 and were determined to be level 2 and level 3 investments, respectively. The related amounts for each of these investments were $3,517,000 and $2,030,000 as of December 31, 2012 and were determined to be level 2 and level 3 investments, respectively. Level 2 investments are valued based on observable inputs such as quoted prices for similar instruments and quoted prices in markets that are not active. Level 3 investments are valued based on significant unobservable inputs.

 

The Company does not expect any plan assets to be returned to the Company during the twelve months subsequent to December 31, 2013.

 

The Company expects to make contributions of $49,000 to the plan in 2014.    

 

The Company estimates its future pension benefit payments will be as follows:

 

 

 

 

 

 

 

2014

$
414,000 

2015

 
148,000 

2016

 
119,000 

2017

 
261,000 

2018

 
236,000 

2019 thru 2023

 
1,411,000 

 

Components of the Company’s net periodic pension costs are:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

 

2012

 

 

2011

Service cost

 

$
5,000 

 

$
275,000 

 

$
36,000 

Interest cost

 

 
186,000 

 

 
244,000 

 

 
240,000 

Expected return on assets

 

 
(229,000)

 

 
(262,000)

 

 
(267,000)

Amortization of prior service cost

 

 
211,000 

 

 

 -

 

 
46,000 

Net periodic pension cost

 

$
173,000 

 

$
257,000 

 

$
55,000 

 


Commitments And Contingencies
v0.0.0.0
Commitments And Contingencies
 12 Months Ended
Dec. 31, 2013
Commitments And Contingencies [Abstract]  
Commitments And Contingencies

NOTE 8 – COMMITMENTS AND CONTINGENCIES

 

Operating leases:  The Company leases land, buildings and equipment under operating leases with original terms from 1 to 5 years.  Total rent expense was $409,000, $443,000 and $421,000 in 2013,  2012 and 2011 respectively.   At December 31, 2013, the Company was obligated under noncancelable operating leases to make minimum annual future lease payments as follows:

 

 

 

 

 

 

 

 

 

Year Ending December 31:

 

 

 

2014

 

$  
287,000 

2015

 

 
224,000 

2016

 

 
82,000 

 

 

$ 

593,000 

 

Long-term debt:  The mortgage on the Company’s headquarters building is payable in monthly installments and carries an interest rate of 6.83%.  The mortgage matures on March 1, 2016.  The outstanding balance on the mortgage was $1,118,000 at December 31, 2013. The mortgage is secured by the building.

 

The annual requirements for principal payments on the mortgage are as follows:

 

 

 

 

 
2014 
490,000 
2015 
524,000 
2016 
104,000 

Line of credit:    The Company has a $10,000,000 line of credit from Wells Fargo Bank.  The Company had no outstanding borrowings against the line of credit at December 31, 2013 and 2012 and the entire credit line is available for use.  Interest on borrowings on the credit line is at LIBOR plus 1.1% (1.3% at December 31, 2013). The credit agreement expires October 31, 2014 and is secured by assets of the Company.  Our credit agreement contains financial covenants including current ratio, net income, and tangible net worth minimums.  The Company was in compliance with all financial covenants as of December 31, 2013.

As of December 31, 2013, the Company had no other material commitments (either cancelable or non-cancelable) for capital expenditures or other purchase commitments related to ongoing operations.

 

Long-term compensation plans:    The Company has a long term incentive plan.  The plan provides long-term competitive compensation to enable the Company to attract and retain qualified executive talent and to reward employees for achieving goals and improving company performance. The plan provides grants of “performance units” made at the beginning of performance periods and paid at the end of the period if performance goals are met. Awards were previously made every other year and are paid following the end of the cycle with annual vesting.  Payment in the case of retirement, disability or death will be on a pro rata basis.  The Company accrued (income)/expense of $ (124,000), $ (16,000) and $286,000 in 2013,  2012 and 2011, respectively.  Accrual balances for long-term compensation plans at December 31, 2013 and 2012  were  $199,000 and $350,000, respectively. Awards paid were $27,000 in 2013, $1,657,000 in 2012 and $0 in 2011.  Awards for the 2010 to 2013 and the 2011 to 2013 cycles will be paid out 50% in cash and 50% in stock, awards for the 2012 to 2014 cycles will be paid out 25% in cash and 75% in stock and awards for the 2013 to 2015 cycles will be paid out 100% in stock.  The stock portion of these awards are treated as equity plans and included within the Stock Compensation footnote below.

 

Other contingencies:  In the ordinary course of business, the Company is exposed to legal actions and claims and incurs costs to defend against such actions and claims.  Company management is not aware of any outstanding or pending legal actions or claims that would materially affect the Company’s financial position, results of operations, or cash flows.


Stock Compensation
v0.0.0.0
Stock Compensation
 12 Months Ended
Dec. 31, 2013
Stock Compensation [Abstract]  
Stock Compensation

NOTE 9 – STOCK COMPENSATION

 

2011 Executive Incentive Compensation Plan

 

On March 28, 2011 the Board adopted and on May 19, 2011 the Company’s shareholders approved the Company’s 2011 Executive Incentive Compensation Plan (“2011 Incentive Plan”).  The 2011 Incentive Plan authorizes incentive awards to officers, key employees and non-employee directors in the form of options (incentive and non-qualified), stock appreciation rights, restricted stock, restricted stock units, performance stock units (“deferred stock”), performance cash units, and other awards in stock, cash, or a combination of stock and cash.  Up to 1,000,000 shares of our Common Stock may be issued pursuant to awards under the 2011 Incentive Plan. 

 

During 2013, stock options covering 169,550 shares were awarded to key executive employees, which options expire seven years from the date of award and vest 25% each year beginning one year after the date of award.  The Company also granted deferred stock awards of 202,078 shares to key employees during 2013 under the Company’s long-term incentive plan for performance over the 2013 to 2015 period.  The actual number of shares of deferred stock, if any, that are earned by the respective employees will be determined based on achievement against cumulative performance goals for the three years ending December 31, 2015 and the shares earned will be issued in the first quarter of 2016 to those key employees still with the Company at that time. The Company also granted deferred stock awards of up to 11,576 shares to executive employees that could be earned under the Company’s short-term incentive plan if actual revenue equaled or exceeded 150% of 2013 quarterly or annual revenue targets.  The shares earned by the respective executive employees will be issued no later than the first quarter of 2014.  

 

During 2013, the Company granted restricted stock units totaling 30,344 units to the Company’s seven non-employee directors with the restricted stock units issued to each director having a value of $40,000 based on the closing price of the Company’s stock on May 21, 2013.  These restricted stock units vest after one year and are issued as stock after another year.

 

At December  31,  2013,  623,250 shares remained available for future issuance under the 2011 Incentive Plan.

 

Stock Option Plan for Directors

 

Shares of common stock are reserved for issuance to non-employee directors under options granted by the Company prior to 2011 under its Stock Option Plan for Non-Employee Directors (the “Director Plan”).  Under the Director Plan nonqualified stock options to acquire 3,000 shares of common stock were automatically granted to each non-employee director concurrent with annual meetings of shareholders in 2010 and earlier years and vested immediately. The exercise price of options granted was the fair market value of the common stock on the date of the respective shareholder meetings.  Options granted under the Director Plan expire 10 years from date of grant.   

 

The Director Plan was suspended as of May 19, 2011 to prohibit automatic option grants in 2011 in connection with seeking and receiving shareholder approval of the 2011 Incentive Plan,  at the 2011 Annual Meeting of Shareholders. As shareholder approval was received, the Board amended the Director Plan to prohibit any future option awards under that plan on August 11, 2011.

 

Stock Plan

 

Under the Company’s 1992 Stock Plan (“the Stock Plan”), shares of common stock may be issued pursuant to stock options, restricted stock or deferred stock grants to officers and key employees. Exercise prices of stock options under the Stock Plan cannot be less than fair market value of the stock on the date of grant. Rules and conditions governing awards of stock options, restricted stock and deferred stock are determined by the Compensation Committee of the Board of Directors, subject to certain limitations in the Stock Plan. When seeking approval of the 2011 Incentive Plan at the 2011 Annual Meeting of Shareholders, the Company committed to amending the Stock Plan to prohibit the issuance of future equity awards if such approval was given. Effective August 11, 2011, the amendment to prohibit future stock options or other equity awards was approved by the Board.

 

At December 31,  2013 after reserving for stock options and deferred stock awards described in the two preceding paragraphs and adjusting for forfeitures and issuances during the year, there were 84,718 shares reserved for issuance under the Stock Plan. The Company did not award stock options or deferred stock under this plan in 2013.

 

Stock Options Outstanding

 

The following table summarizes changes in the number of outstanding stock options under the 2011 Incentive Plan, Director Plan and Stock Plan during the three years ended December 31, 2013. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average

 

Weighted average

 

 

 

exercise price

 

remaining

 

Options

 

per share

 

contractual term

Outstanding – December 31, 2010
162,000 

 

$

 
9.49 

 

5.33 years

Awarded
96,250 

 

 

 
14.16 

 

 

Exercised
(9,000)

 

 

 
8.10 

 

 

Forfeited
(12,430)

 

 

 
11.23 

 

 

Outstanding – December 31, 2011
236,820 

 

$

 
11.35 

 

5.18 years

Awarded
92,223 

 

 

 
13.10 

 

 

Exercised
(12,000)

 

 

 
7.13 

 

 

Forfeited
(5,890)

 

 

 
10.58 

 

 

Outstanding – December 31, 2012
311,153 

 

$

 
12.05 

 

4.99 years

Awarded
169,550 

 

 

 
10.19 

 

 

Exercised
(15,000)

 

 

 
7.35 

 

 

Forfeited
(156,264)

 

 

 
11.25 

 

 

Outstanding – December 31, 2013
309,439 

 

 

 
11.66 

 

4.13 years

 

 

 

 

 

 

 

 

Excercisable at December 31, 2013
231,586 

 

$

 
11.73 

 

3.58 years

Expected to vest December 31, 2013
309,439 

 

 

 
11.66 

 

4.13 years

 

The fair value of awards issued under the Company’s stock option plan is estimated at grant date using the Black-Scholes option-pricing model.  The following table displays the assumptions used in the model.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

2013

 

2012

 

2011

Expected volatility
31.8% 

 
31.2% 

 
27.7% 

Risk free interest rate
2.1% 

 
2.3% 

 
3.4% 

Expected holding period

6 years

 

6 years

 

6 years

Dividend yield
6.3% 

 
4.6% 

 
4.2% 

 

Total unrecognized compensation expense was $67,000, $161,000, and $102,000 for the years ending December 31, 2013,  2012 and 2011, respectively, which is expected to be recognized over the next 2.8 years.  The aggregate intrinsic value of all outstanding options, exercisable options, and options expected to vest (the amount by which the market price of the stock on the last day of the period exceeded the market price of the stock on the date of grant) was $183,000 based on the Company’s stock price at December 31, 2013.  The intrinsic value of options exercised during the year was $38,000, $59,000 and $61,000 in 2013,  2012 and 2011, respectively.  Net cash proceeds from the exercise of all stock options were $110,000,  $86,000 and $73,000 for 2013, 2012 and 2011, respectively.  The following table summarizes the status of stock options outstanding at December 31, 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

Weighted

 

 

 

 

Remaining

 

Average

Range of Exercise Prices

 

Shares

 

Option Life

 

Exercise Price

$7.13 to $8.64

 
15,000 

 

0.3 years

 

$
8.28 

$8.65 to $9.99

 
33,000 

 

4 years

 

 
9.67 

$10.00 to $12.00

 
137,250 

 

4.6 years

 

 
10.64 

$12.01 to $14.50

 
124,189 

 

4.1 years

 

 
13.73 

 

The Company receives an income tax benefit related to the gains received by officers and key employees who make disqualifying dispositions of stock received on exercise of qualified incentive stock options and on non-qualified options.  The amount of tax benefit received by the Company was $14,000, $21,000 and $22,000 in 2013,  2012 and 2011 respectively.  The tax benefit amounts have been credited to additional paid-in capital.

 

Deferred Stock Outstanding

 

The following table summarizes the changes in the number of deferred stock shares under the Stock Plan and 2011 Incentive Plan over the period December 31, 2010 to December 31,  2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

Grant Date

 

 

 

Shares

 

Fair Value

Outstanding – December 31, 2010

 

 

 -

 

$

 -

Granted

 

 
105,836 

 

 
15.15 

Vested

 

 
(2,657)

 

 
15.40 

Forfeited

 

 
(31,330)

 

 
15.27 

Outstanding – December 31, 2011

 

 
71,849 

 

 
15.14 

Granted

 

 
105,698 

 

 
13.49 

Vested

 

 

 -

 

 

 -

Forfeited

 

 
(16,757)

 

 
13.95 

Outstanding – December 31, 2012

 

 
160,790 

 

 
14.16 

Granted

 

 
222,654 

 

 
10.08 

Vested

 

 
(1,849)

 

 
14.82 

Forfeited

 

 
(181,455)

 

 
12.11 

Outstanding – December 31, 2013

 

 
200,140 

 

 
11.47 

 

The grant date fair value is calculated based on the Company’s closing stock price as of the grant date. As of December 31, 2013 and 2012, the total unrecognized compensation expense related to the deferred stock shares was $74,000 and $297,000, respectively and is expected to be recognized over a weighted-average period of 1.7 years.

 

Restricted Stock Units Outstanding

 

The following table summarizes the changes in the number of restricted stock units under the 2011 Incentive Plan over the period December 31, 2011 to December 31,  2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

Grant Date

 

 

 

Shares

 

Fair Value

Outstanding – December 31, 2011

 

 

 -

 

$

 -

Granted

 

 
25,879 

 

 
10.82 

Vested

 

 

 -

 

 

 -

Forfeited

 

 

 -

 

 

 -

Outstanding – December 31, 2012

 

 
25,879 

 

 
10.82 

Granted

 

 
31,354 

 

 
10.05 

Vested

 

 

 -

 

 

 -

Forfeited

 

 
(4,040)

 

 
9.90 

Outstanding – December 31, 2013

 

 
53,193 

 

 
10.44 

 

The grant date fair value is calculated based on the Company’s closing stock price as of the grant date. As of December 31, 2013 and 2012, the total unrecognized compensation expense related to the restricted stock units was $11,000 and $16,000, respectively and is expected to be recognized over a weighted-average period of 0.4 years.

 

Compensation Expense

 

Share-based compensation expense is recognized based on the fair value of awards granted over the vesting period of the award.  Share-based compensation (income)/expense recognized for 2013,  2012 and 2011 was $ (81,000), $303,000 and $449,000 before income taxes and $ (53,000), $197,000 and $292,000 after income taxes, respectively. Share-based compensation expense is recorded as a part of selling, general and administrative expenses.

 

Employee Stock Purchase Plan

 

Under the Company’s Employee Stock Purchase Plan (“ESPP”) employees are able to acquire shares of common stock at 90% of the price at the end of each current quarterly plan term.  The most recent term ended December 31,  2013.  The ESPP is considered compensatory under current rules.  At December 31,  2013, after giving effect to the shares issued as of that date, 35,587 shares remain available for purchase under the ESPP.

 

Employee  Stock  Ownership  Plan (ESOP)

 

All eligible employees of the Company participate in the ESOP after completing one year of service.  Contributions are allocated to each participant based on compensation and vest 30% after three years of service and incrementally thereafter, with full vesting after seven years.  At December 31, 2013, the ESOP held 558,397 shares of the Company’s common stock, all of which have been allocated to the accounts of eligible employees.  Contributions to the plan are determined by the Board of Directors and can be made in cash or shares of the Company’s stock. The 2013 ESOP contribution was $362,273 for which the Company issued 32,520 shares in March 2014.  The 2012 ESOP contribution was $463,819 for which the Company issued 44,598 shares in 2013.  The Company’s 2011 ESOP contribution was $508,198 for which the Company issued 36,145 shares of common stock to the ESOP in 2012. 


Common Stock
v0.0.0.0
Common Stock
 12 Months Ended
Dec. 31, 2013
Common Stock [Abstract]  
Common Stock

NOTE 10 – COMMON STOCK

 

PURCHASES OF COMMUNICATIONS SYSTEMS, INC. COMMON STOCK

 

In October 2008, the Company’s Board of Directors authorized the repurchase of shares of the Company’s stock pursuant to Exchange Act Rule 10b-18 on the open market, in block trades or in private transactions. At December 31, 2013,  411,910 additional shares could be repurchased under outstanding Board authorizations.

 

SHAREHOLDER RIGHTS PLAN

 

On December 23, 2009 the Board of Directors adopted a shareholders’ rights plan.  Under this plan, the Board of Directors declared a distribution of one right per share of common stock.  Each right entitles the holder to purchase 1/100th of a share of a new series of Junior Participating Preferred Stock of the Company at an initial exercise price of $41.  The rights expire on December 23, 2019.  The rights will become exercisable only following the acquisition by a person or group, without the prior consent of the Board of Directors, of 16.5% or more of the Company’s voting stock, or following the announcement of a tender offer or exchange offer to acquire an interest of 16.5% or more.  If the rights become exercisable, each rightholder will be entitled to purchase, at the exercise price, common stock with a market value equal to twice the exercise price.  Should the Company be acquired, each right would entitle the holder to purchase, at the exercise price, common stock of the acquiring company with a market value equal to twice the exercise price.  Any rights owned by the acquiring person or group would become void.


Income Taxes
v0.0.0.0
Income Taxes
 12 Months Ended
Dec. 31, 2013
Income Taxes [Abstract]  
Income Taxes

NOTE 11 - INCOME TAXES

 

Income tax expense from continuing operations consists of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

 

2013

 

2012

 

2011

Currently payable income taxes:

 

 

 

 

 

 

 

 

 

Federal

 

$
2,114,000 

 

$
1,669,000 

 

$
5,609,000 

State

 

 
297,000 

 

 
141,000 

 

 
414,000 

Foreign

 

 
(32,000)

 

 
(18,000)

 

 
103,000 

 

 

 
2,379,000 

 

 
1,792,000 

 

$
6,126,000 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

$
(303,000)

 

$
(542,000)

 

$
1,204,000 

State

 

 
18,000 

 

 
(33,000)

 

 
72,000 

Foreign

 

 
(33,000)

 

 
(57,000)

 

 
420,000 

 

 

 
(318,000)

 

 
(632,000)

 

 
1,696,000 

 

 

 

 

 

 

 

 

 

 

 

 

$
2,061,000 

 

$
1,160,000 

 

$
7,822,000 

 

Austin Taylor Communications, Ltd. operates in the United Kingdom (U.K.) and is subject to U.K. rather than U.S. income taxes.  Austin Taylor had pretax losses of $428,000,  $419,000 and $1,474,000 in 2013,  2012 and 2011 respectively.  At the end of 2013, Austin Taylor’s net operating loss carry-forward was $6,568,000.  The Company remains uncertain that it will be able to generate the future income needed to realize the tax benefit of the carry-forward.  Accordingly, the Company has continued to maintain its deferred tax valuation allowance against the potential carry-forward benefit.

 

Patapsco operates in the United Kingdom (U.K.) and is subject to U.K. rather than U.S. income taxes. Patapsco had pretax losses of $2,754,000 in 2013 respectively and pretax income of $316,000 and $55,000 in 2012 and 2011.  Austin Taylor's net operating loss provided group relief to Patapsco during 2012 and 2011. At the end of 2013, Patapsco net operating loss carry-forward was $90,000.

 

In 2007 Transition Networks China began operations in China and is subject to Chinese taxes rather than U.S. income taxes.  Transition Networks China had pretax income of $341,000, $36,000 and $24,000 in 2013, 2012 and 2011 respectively.  At the end of 2013, Transition Networks China's net operating loss carry-forward was $306,000.  Due to the history of losses in China the Company remains uncertain that it will be able to generate the future income needed to realize the tax benefit of the carry-forward.  Accordingly, the Company has continued to maintain its deferred tax valuation reserve against the potential carry-forward benefit. 

 

Suttle Costa Rica, S.A. operates in Costa Rica and is subject to Costa Rica income taxes. In 2005, the Board of Directors of Suttle Costa Rica S. A. declared a dividend in the amount of $3,500,000 payable to the Company. The dividend and related “dividend reinvestment plan” qualify under Internal Revenue Code Sec. 965, which allows the Company to receive an 85% dividend received deduction if the amount of the dividend is reinvested in the United States pursuant to a domestic reinvestment plan.  The Company made the required qualified capital expenditures in 2006.  It is the Company’s intention to maintain the remaining undistributed earnings in its Costa Rica subsidiary to support continued operations there. No deferred taxes have been provided for the undistributed earnings.    

 

Suttle Costa Rica had pretax income of $152,000, $168,000 and $155,000 in 2013,  2012 and 2011 respectively.  At the end of 2012, Suttle Costa Rica’s net operating loss carry-forward was $0. 

 

The provision for income taxes for continuing operations varied from the federal statutory tax rate as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

 

2013

 

2012

 

2011

Tax at U.S. statutory rate

 
35.0% 

 
35.0% 

 
35.0% 

Surtax exemption

 
(5.4)

 
(1.5)

 
(0.3)

State income taxes, net of federal benefit

 
19.1 

 
1.7 

 
1.9 

Foreign income taxes, net of

 

 

 

 

 

 

 foreign tax credits

 
3.3 

 
(0.2)

 
4.7 

Impairment of goodwill

 
116.2 

 

 -

 
2.5 

Other nondeductible items

 
4.9 

 

 -

 

 -

Effect of increase in uncertain tax positions

 
7.3 

 

 -

 

 -

Other

 
6.4 

 
(0.9)

 
0.6 

Effective tax rate

 
186.8% 

 
34.1% 

 
44.4% 

 

 

Deferred tax assets and liabilities as of December 31 related to the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

 

2012

Deferred tax assets:

 

 

 

 

 

Allowance for doubtful accounts

$
19,000 

 

$
25,000 

Inventory

 
3,295,000 

 

 
3,393,000 

Accrued and prepaid expenses

 
502,000 

 

 
530,000 

Domestic net operating loss carry-forward

 
26,000 

 

 
106,000 

Long-term compensation plans

 
373,000 

 

 
330,000 

Nonemployee director stock compensation

 
243,000 

 

 
200,000 

Other stock compensation

 
111,000 

 

 
176,000 

State income taxes

 
75,000 

 

 
69,000 

Foreign net operating loss carry-forwards and credits

 
1,639,000 

 

 
2,092,000 

 

 

 

 

 

 

 

 

 

 

 

 

Gross deferred tax assets

 
6,283,000 

 

 
6,921,000 

Valuation allowance

 
(1,618,000)

 

 
(2,091,000)

 

 

 

 

 

 

Net deferred tax assets

 
4,665,000 

 

 
4,830,000 

 

 

 

 

 

 

Deferred tax liabilities

 

 

 

 

 

Depreciation

 
(1,668,000)

 

 
(1,439,000)

Intangible assets

 
(47,000)

 

 
(759,000)

 

 

 

 

 

 

Gross deferred tax liability

 
(1,715,000)

 

 
(2,198,000)

 

 

 

 

 

 

Total net deferred tax asset

$
2,950,000 

 

$
2,632,000 

 

 

 

 

 

 

 

As part of previous acquisitions, the Company purchased net operating loss carry-forwards in the amount of $3,790,000.  At December 31, 2013, the Company had  $75,000 remaining net operating loss carry-forwards for income tax purposes which expire in 2014. Utilization of net operating loss carry-forwards is limited to $228,000 per year in future years.

 

The Company assesses uncertain tax positions in accordance with ASC 740. Under this method, the Company must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such uncertain tax positions are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company’s practice is to recognize interest and penalties related to income tax matters in income tax expense.

Changes in the Company’s unrecognized tax benefits are summarized as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

2012

 

2011

Unrecognized tax benefits – January 1

$
153,000 

$
234,000 

$
270,000 

Gross increases - tax positions in prior period

 
0 

 
0 

 
0 

Gross decreases - tax positions in prior period

 
0 

 
0 

 
0 

Gross increases - current period tax positions

 
158,000 

 
0 

 
7,000 

Settlements

 
(5,000)

 
0 

 
0 

Expiration of statute of limitations

 
(66,000)

 
(81,000)

 
(43,000)

Unrecognized tax benefits – December 31, 2013

$
240,000 

$
153,000 

$
234,000 

 

Included in the balance of unrecognized tax benefits at December 31, 2013 are $323,000 of tax benefits that if recognized would affect the tax rate.  The Company’s unrecognized tax benefits could be reduced by $7,000 in the next twelve months due to statute of limitations expirations.  The Company’s income tax liability accounts included accruals for interest and penalties of $161,000 at December 31, 2013.  The Company’s 2013 income tax expense decreased by $7,000 due to net decreases for accrued interest and penalties.

 

The Company’s federal and state tax returns and tax returns it has filed in Costa Rica and the United Kingdom are open for review going back to the 2010 tax year.


Information Concerning Industry Segments And Major Customers
v0.0.0.0
Information Concerning Industry Segments And Major Customers
 12 Months Ended
Dec. 31, 2013
Information Concerning Industry Segments And Major Customers [Abstract]  
Information Concerning Industry Segments And Major Customers

NOTE 12- INFORMATION CONCERNING INDUSTRY SEGMENTS AND MAJOR CUSTOMERS

 

The Company classifies its businesses into three segments as follows:

·

Suttle manufactures and markets copper and fiber connectivity systems, enclosure systems, xDSL filters and splitters, and active technologies for voice, data and video communications;

·

Transition Networks manufactures network interface devices (NIDs), media converters, network interface cards (NICs), Ethernet switches and other connectivity products that offer the ability to affordably integrate the benefits of fiber optics into any data network; and

·

JDL Technologies provides technology solutions including virtualization, managed services, wired and wireless network design and implementation services, and converged infrastructure configuration and deployment.

 

Non-allocated corporate general and administrative expenses are categorized as “Other” in the Company’s segment reporting. Management has chosen to organize the enterprise and disclose reportable segments based on products and services. There are no material intersegment revenues.

 

Suttle products are sold principally to U.S. customers.  Suttle operates manufacturing facilities in the U.S. and Costa Rica.  Net long-lived assets held in foreign countries were approximately $1,225,000 and $1,067,000 at December 31, 2013 and 2012, respectively.    Transition Networks manufactures its products in the United States and makes sales in both the U.S. and international markets.   JDL Technologies operates in the U.S. and makes sales in the U.S.  Consolidated sales to U.S. customers were approximately 87%,  83% and 85% of sales from continuing operations in 2013,  2012 and 2011 respectively.  In 2013, sales to one of JDL Technologies’ customers accounted for 17.5% of consolidated sales and one of Suttle’s customers accounted for 18.7% of consolidated sales. In 2012, sales to one of Transition Networks’ customers accounted for 10.6% of consolidated sales and one of Suttle’s customers accounted for 16.6% of consolidated sales. In 2011,  sales to one of Transition Networks’ customers accounted for 22.8% of consolidated sales.

 

Information concerning the Company’s operations in the various segments for the twelve-month periods ended December 31, 2013,  2012 and 2011 is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transition

 

JDL

 

 

 

 

 

 

Suttle

 

Networks

 

Technologies

 

Other

 

Total

2013

 

 

 

 

 

 

 

 

 

 

Sales

$
54,346,428 

$
43,856,640 

$
33,116,442 

$

 -

$
131,319,510 

Cost of sales

 
38,534,823 

 
21,438,115 

 
26,448,044 

 

 -

 
86,420,982 

Gross profit

 
15,811,605 

 
22,418,525 

 
6,668,398 

 

 -

 
44,898,528 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 administrative expenses

 
10,354,176 

 
19,764,937 

 
2,628,999 

 
3,994,757 

 
36,742,869 

Impairment

 

 

 
5,849,853 

 

 

 

 

 
5,849,853 

Restructuring expense

 

 -

 
514,714 

 

 -

 
634,725 

 
1,149,439 

Operating income (loss)

$
5,457,429 

$
(3,710,979)

$
4,039,399 

$
(4,629,482)

$
1,156,367 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
860,896 

$
755,094 

$
53,484 

$
515,356 

$
2,184,830 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$
1,215,394 

$
919,376 

$
46,014 

$
518,563 

$
2,699,347 

 

 

 

 

 

 

 

 

 

 

 

Assets

$
30,636,805 

$
29,440,438 

$
11,350,381 

$
32,105,117 

$
103,532,741 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transition

 

JDL

 

 

 

 

 

 

Suttle

 

Networks

 

Technologies

 

Other

 

Total

2012

 

 

 

 

 

 

 

 

 

 

Sales

$
45,030,184 

$
53,842,940 

$
5,376,530 

$

 -

$
104,249,654 

Cost of sales

 
33,056,579 

 
25,848,307 

 
3,847,877 

 

 -

 
62,752,763 

Gross profit

 
11,973,605 

 
27,994,633 

 
1,528,653 

 

 -

 
41,496,891 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 administrative expenses

 
9,370,737 

 
22,106,199 

 
2,183,798 

 
4,440,039 

 
38,100,773 

Operating income (loss)

$
2,602,868 

$
5,888,434 

$
(655,145)

$
(4,440,039)

$
3,396,118 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
925,149 

$
815,259 

$
103,109 

$
289,994 

$
2,133,511 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$
1,167,495 

$
412,568 

$
36,891 

$
991,004 

$
2,607,958 

 

 

 

 

 

 

 

 

 

 

 

Assets

$
26,148,148 

$
35,851,189 

$
8,385,337 

$
42,149,971 

$
112,534,645 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transition

 

JDL

 

 

 

 

 

 

Suttle

 

Networks

 

Technologies

 

Other

 

Total

2011

 

 

 

 

 

 

 

 

 

 

Sales

$
39,924,484 

$
91,450,014 

$
12,400,553 

$

 -

$
143,775,051 

Cost of sales

 
30,792,769 

 
46,825,149 

 
7,262,006 

 

 -

 
84,879,924 

Gross profit

 
9,131,715 

 
44,624,865 

 
5,138,547 

 

 -

 
58,895,127 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 administrative expenses

 
8,217,766 

 
23,730,729 

 
1,982,353 

 
6,177,373 

 
40,108,221 

Impairment

 
1,271,986 

 

 

 

 

 

 

 
1,271,986 

Operating income (loss)

$
(358,037)

$
20,894,136 

$
3,156,194 

$
(6,177,373)

$
17,514,920 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
946,256 

$
755,789 

$
106,622 

$
292,068 

$
2,100,735 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$
935,030 

$
1,028,941 

$
51,789 

$
740,231 

$
2,755,991 

 

 

 

 

 

 

 

 

 

 

 

Assets

$
27,914,301 

$
33,589,083 

$
1,844,572 

$
53,310,960 

$
116,658,916 

 


Fair Value Measurements
v0.0.0.0
Fair Value Measurements
 12 Months Ended
Dec. 31, 2013
Fair Value Measurements [Abstract]  
Fair Value Measurements

NOTE 13 – FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: 

Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date.

Level 2 – Observable inputs such as quoted prices for similar instruments and quoted prices in markets that are not active, and inputs that are directly observable or can be corroborated by observable market data. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities.

Level 3 – Significant inputs to pricing that have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as the complex and subjective models and forecasts used to determine the fair value of financial instruments.

Financial assets and liabilities measured at fair value as of December 31,  2013 and December 31, 2012, are summarized below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
5,751,965 

 

$

 -

 

$

 -

 

$
5,751,965 

Certificates of deposit

 

 

 

 
239,904 

 

 

 

 

 
239,904 

Subtotal

 
5,751,965 

 

 
239,904 

 

 

 -

 

 
5,991,869 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
2,582,502 

 

 

 -

 

 
2,582,502 

Corporate Notes/Bonds

 

 -

 

 
3,159,812 

 

 

 -

 

 
3,159,812 

Subtotal

 

 -

 

 
5,742,314 

 

 

 -

 

 
5,742,314 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
1,197,320 

 

 

 -

 

 
1,197,320 

Corporate Notes/Bonds

 

 -

 

 
2,723,658 

 

 

 -

 

 
2,723,658 

Subtotal

 

 -

 

 
3,920,978 

 

 

 -

 

 
3,920,978 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 -

 

 

 

 

 

 

 

 

 

Accrued Consideration

 

 -

 

 

 -

 

 
(558,801)

 

 
(558,801)

Subtotal

 

 -

 

 

 -

 

 
(558,801)

 

 
(558,801)

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
5,751,965 

 

$
9,903,196 

 

$
(558,801)

 

$
15,096,360 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
5,497,788 

 

$

 -

 

$

 -

 

$
5,497,788 

Subtotal

 
5,497,788 

 

 

 -

 

 

 -

 

 
5,497,788 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
7,258,768 

 

 

 -

 

 
7,258,768 

Corporate Notes/Bonds

 

 

 

 
3,800,143 

 

 

 

 

 
3,800,143 

Commercial Paper

 

 

 

 
1,642,627 

 

 

 

 

 
1,642,627 

Subtotal

 

 -

 

 
12,701,538 

 

 

 -

 

 
12,701,538 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
900,763 

 

 

 -

 

 
900,763 

Corporate Notes/Bonds

 

 

 

 
4,475,634 

 

 

 

 

 
4,475,634 

Subtotal

 

 -

 

 
5,376,397 

 

 

 -

 

 
5,376,397 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accrued Consideration

 

 -

 

 

 -

 

 
(770,041)

 

 
(770,041)

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

 -

 

 

 -

 

 
(770,041)

 

 
(770,041)

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
5,497,788 

 

$
18,077,935 

 

$
(770,041)

 

$
22,805,682 

 

The estimated fair value of remaining contingent consideration as of December 31,  2013 was $558,801, as noted above. The estimated fair value is considered a level 3 measurement because the probability weighted discounted cash flow methodology used to estimate fair value includes the use of significant unobservable inputs, primarily the contractual contingent consideration gross margin targets and assumed probabilities. The change in the estimated contingent consideration during 2013 was due to $161,060 in payments, $6,282 in foreign currency gains, and $43,898 in gains included in operating income.  The gains were the result of a change in future assumptions related to the contingent consideration. 

There were no transfers between levels during 2013 and 2012.


Restructuring Charges
v0.0.0.0
Restructuring Charges
 12 Months Ended
Dec. 31, 2013
Restructuring Charges [Abstract]  
Restructuring Charges

NOTE 14 – RESTRUCTURING CHARGES

During the year end December 31, 2013, the Company recorded $1,149,000 in restructuring expense.  This consisted of severance and related benefits costs due to the restructuring within the Transition Networks business segment as well as severance and related benefits costs due to the elimination of certain corporate management positions.  The Company paid $663,000 in restructuring charges during 2013 and had $486,000 in restructuring accruals recorded in accrued compensation and benefits at December 31, 2013 that is expected to be paid during 2014.


Subsequent Events
v0.0.0.0
Subsequent Events
 12 Months Ended
Dec. 31, 2013
Subsequent Events [Abstract]  
Subsequent Events

NOTE 15 – SUBSEQUENT EVENTS

The Company has evaluated subsequent events through the date of this filing. We do not believe there are any material subsequent events which would require further disclosure.


Valuation And Qualifying Accounts And Reserves
v0.0.0.0
Valuation And Qualifying Accounts And Reserves
 12 Months Ended
Dec. 31, 2013
Valuation And Qualifying Accounts And Reserves [Abstract]  
Valuation And Qualifying Accounts And Reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMUNICATIONS SYSTEMS, INC. AND SUBSIDIARIES

Schedule II - Valuation and Qualifying Accounts and Reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at

 

Additions

 

Deductions

 

Other

 

Balance

 

Beginning of

 

Charged to Cost

 

from

 

Changes

 

at End

Description

Period

 

and Expenses

 

Reserves

 

Add (Deduct)

 

of Period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for doubtful accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

$
69,000 

 

$
23,000 

 

$
(23,000)

(A)

$
0 

 

$
69,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

$
175,000 

 

$
30,000 

 

$
(136,000)

(A)

$
0 

 

$
69,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

$
500,000 

 

$
91,000 

 

$
(416,000)

(A)

$
0 

 

$
175,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)  Accounts determined to be uncollectible and charged off against reserve.

 


Summary Of Significant Accounting Policies (Policy)
v0.0.0.0
Summary Of Significant Accounting Policies (Policy)
 12 Months Ended
Dec. 31, 2013
Summary Of Significant Accounting Policies [Abstract]  
Principles Of Consolidation

Principles of consolidation: The consolidated financial statements include the accounts of the Company and its subsidiaries.  All material intercompany transactions and accounts have been eliminated.

Use Of Estimates

Use of estimates: The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company uses estimates based on the best information available in recording transactions and balances resulting from operations.  Actual results could differ from those estimates.  The Company’s estimates consist principally of reserves for doubtful accounts, sales returns, warranty costs, asset impairment evaluations, accruals for compensation plans, self-insured medical and dental accruals, pension liabilities, lower of cost or market inventory adjustments, provisions for income taxes and deferred taxes and depreciable lives of fixed assets.

Cash Equivalents

Cash equivalents: For purposes of the consolidated statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. As of December 31, 2013,  the Company had $20,059,000 in cash and cash equivalents. Of this amount, $5,752,000 was invested in short-term money market funds that are not considered to be bank deposits and are not insured or guaranteed by the federal deposit insurance company (FDIC) or other government agency. These money market funds seek to preserve the value of the investment at $1.00 per share; however, it is possible to lose money investing in these funds. The remainder is operating cash and certificates of deposit which are fully insured through the FDIC.

Investments

Investments:  Investments consist of certificates of deposit, commercial paper, and corporate notes and bonds that are traded on the open market and are classified as available-for-sale at December 31, 2013. Available-for-sale investments are reported at fair value with unrealized gains and losses excluded from operations and reported as a separate component of stockholders’ equity, net of tax  (see Accumulated Comprehensive income below).

Inventories

Inventories: Inventories are stated at the lower of cost or market. Cost is determined by the first-in, first-out method. Provision to reduce inventories to the lower of cost or market is made based on a review of excess and obsolete inventories, estimates of future sales, examination of historical consumption rates and the related value of component parts.

Property, Plant And Equipment

Property, plant and equipment: Property, plant and equipment are recorded at cost.  Depreciation is computed using the straight-line method.  Depreciation included in cost of sales and selling, general and administrative expenses for continuing operations was $2,083,000, $2,030,000 and $2,058,000 for 2013,  2012 and 2011, respectively.  Maintenance and repairs are charged to operations and additions or improvements are capitalized.  Items of property sold, retired or otherwise disposed of are removed from the asset and accumulated depreciation accounts and any gains or losses on disposal are reflected in operations.

Goodwill And Other Intangible Assets

Goodwill and Other Intangible Assets: Goodwill represents the amount by which the purchase prices (including liabilities assumed) of acquired businesses exceed the estimated fair value of the net tangible assets and separately identifiable assets of these businesses. Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested at least annually for impairment. The Company reassesses the value of our reporting units and related goodwill balances at the end of each fiscal year and at other times if events have occurred or circumstances exist that indicate the carrying amount of goodwill may not be recoverable. Based on the step one and step two analysis, considering Transition Networks’ reduced earnings and cash flow forecasts, the Company determined that Transition Networks’ goodwill was fully impaired and recorded a goodwill impairment for this segment of $5,850,000 in the third quarter of 2013.

Recoverability Of Long-Lived Assets

Recoverability of long-lived assets: The Company reviews its long-lived assets periodically to determine potential impairment by comparing the carrying value of the assets with expected net cash flows expected to be provided by operating activities of the business or related products.  If the sum of the expected future net cash flows is less than the carrying value, an impairment loss would be measured by comparing the amount by which the carrying value exceeds the fair value of the asset.

Warranty

Warranty:  The Company reserves for the estimated cost of product warranties at the time revenue is recognized.  We estimate the costs of our warranty obligations based on our warranty policy or applicable contractual warranty, historical experience of known product failure rates, and use of materials and service delivery costs incurred in correcting product failures.  Management reviews the estimated warranty liability on a quarterly basis to determine its adequacy. 

 

The following table presents the changes in the Company’s warranty liability for the years ended December 31, 2013 and 2012, which relate to normal product warranties and a five-year obligation to provide for potential future liabilities for certain network equipment sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

 

 

2013

 

 

2012

Beginning balance

 

$
590,000 

 

$
634,000 

Amounts charged to expense

 

 
237,000 

 

 
217,000 

Actual warranty costs paid

 

 
(263,000)

 

 
(261,000)

Ending balance

 

$
564,000 

 

$
590,000 

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive income: The components of accumulated other comprehensive income are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

 

 

2013

 

 

2012

Minimum pension liability

 

$
1,796,000 

 

$
1,759,000 

Unrealized gain on available-for-sale investments

 

 
2,000 

 

 
24,000 

Foreign currency translation

 

 
(2,038,000)

 

 
(2,371,000)

 

 

$
(240,000)

 

$
(588,000)

 

The functional currency of Austin Taylor and Patapsco is the British pound.  Assets and liabilities denominated in this foreign currency were translated into U.S. dollars at year-end exchange rates.  Revenue and expense transactions were translated using average exchange rates.  Suttle Costa Rica and Transition China use the U.S. dollar as their functional currency. 

Revenue Recognition

Revenue recognition: The Company’s manufacturing operations (Suttle and Transition Networks) recognize revenue when the earnings process is complete, evidenced by persuasive evidence of an agreement, delivery has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured.  Revenue is recognized for domestic and international sales at the shipping point or delivery to customers, based on the related shipping terms. Risk of loss transfers at the point of shipment or delivery to customers, and the Company has no further obligation after such time. Sales are made directly to customers and through distributors. Payment terms for distributors are consistent with the terms of the Company’s direct customers. The Company records a provision for sales returns, sales incentives and warranty costs at the time of the sale based on historical experience and current trends.


JDL generally records revenue on hardware, software and related equipment sales and installation contracts when the revenue recognition criteria are met and products are installed and accepted by the customer.  JDL records revenue on service contracts on a straight-line basis over the contract period, unless evidence suggests the revenue is earned in a different pattern. Each contract is individually reviewed to determine when the earnings process is complete.

Research And Development

Research and development: Research and development costs consist of outside testing services, equipment and supplies associated with enhancing existing products and developing new products.  Research and development costs are expensed when incurred and totaled $2,760,000 in 2013, $2,304,000 in 2012 and $2,045,000 in 2011.  

Net Income Per Share

Net income per share: Basic net income per common share is based on the weighted average number of common shares outstanding during each year. Diluted net income per common share adjusts for the dilutive effect of potential common shares outstanding.  The Company’s only potential common shares outstanding are stock options and unvested shares, which resulted in a dilutive effect of 10,116 shares and 47,261 shares in 2012 and 2011, respectively.  Due to the net loss in 2013, there was no dilutive impact from stock options or unvested shares.  The Company calculates the dilutive effect of outstanding options and unvested shares using the treasury stock method. The number of shares not included in the computation of diluted earnings per share because the options’ exercise price was greater than the average market price of common stock during the year for 2013,  2012, and 2011 was 0,  80,290 and 0, respectively.

Share Based Compensation

Share based compensation: The Company accounts for share based compensation awards on a fair value basis. The estimated grant date fair value of each stock-based award is recognized in income over the requisite service period (generally the vesting period). The estimated fair value of each option is calculated using the Black-Scholes option-pricing model.


Summary Of Significant Accounting Policies (Tables)
v0.0.0.0
Summary Of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2013
Summary Of Significant Accounting Policies [Abstract]  
Schedule Of Warranty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

 

 

2013

 

 

2012

Beginning balance

 

$
590,000 

 

$
634,000 

Amounts charged to expense

 

 
237,000 

 

 
217,000 

Actual warranty costs paid

 

 
(263,000)

 

 
(261,000)

Ending balance

 

$
564,000 

 

$
590,000 

 

Components Of Accumulated Other Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

 

 

2013

 

 

2012

Minimum pension liability

 

$
1,796,000 

 

$
1,759,000 

Unrealized gain on available-for-sale investments

 

 
2,000 

 

 
24,000 

Foreign currency translation

 

 
(2,038,000)

 

 
(2,371,000)

 

 

$
(240,000)

 

$
(588,000)

 


Cash Equivalents And Investments (Tables)
v0.0.0.0
Cash Equivalents And Investments (Tables)
 12 Months Ended
Dec. 31, 2013
Cash Equivalents And Investments [Abstract]  
Schedule Of Cash And Available-For-Sale Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

Amortized Cost

 

Gross Unrealized Gains

 

Gross Unrealized Losses

 

Fair Value

 

Cash Equivalents

 

Short-Term Investments

 

Long-Term Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
5,751,965 

 

$

 -

 

$

 -

 

$
5,751,965 

 

$
5,751,965 

 

$

 

 

$

 

Subtotal

 
5,751,965 

 

 

 -

 

 

 -

 

 
5,751,965 

 

 
5,751,965 

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 
4,024,031 

 

 
687 

 

 
(4,992)

 

 
4,019,726 

 

 
239,904 

 

 
2,582,502 

 

 
1,197,320 

Corporate Notes/Bonds

 
5,861,162 

 

 
22,830 

 

 
(522)

 

 
5,883,470 

 

 

 -

 

 
3,159,812 

 

 
2,723,658 

Subtotal

 
9,885,193 

 

 
23,517 

 

 
(5,514)

 

 
9,903,196 

 

 
239,904 

 

 
5,742,314 

 

 
3,920,978 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
15,637,158 

 

$
23,517 

 

$
(5,514)

 

$
15,655,161 

 

$
5,991,869 

 

$
5,742,314 

 

$
3,920,978 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

Amortized Cost

 

Gross Unrealized Gains

 

Gross Unrealized Losses

 

Fair Value

 

Cash Equivalents

 

Short-Term Investments

 

Long-Term Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
5,497,788 

 

$

 -

 

$

 -

 

$
5,497,788 

 

$
5,497,788 

 

$

 

 

$

 

Subtotal

 
5,497,788 

 

 

 -

 

 

 -

 

 
5,497,788 

 

 
5,497,788 

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 
8,157,749 

 

 
3,727 

 

 
(1,945)

 

 
8,159,531 

 

 

 -

 

 
7,258,768 

 

 
900,763 

Corporate Notes/Bonds

 
8,241,327 

 

 
35,364 

 

 
(914)

 

 
8,275,777 

 

 

 -

 

 
3,800,143 

 

 
4,475,634 

Commercial Paper

 
1,638,892 

 

 
3,735 

 

 

 -

 

 
1,642,627 

 

 

 -

 

 
1,642,627 

 

 

 -

Subtotal

 
18,037,968 

 

 
42,826 

 

 
(2,859)

 

 
18,077,935 

 

 

 -

 

 
12,701,538 

 

 
5,376,397 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
23,535,756 

 

$
42,826 

 

$
(2,859)

 

$
23,575,723 

 

$
5,497,788 

 

$
12,701,538 

 

$
5,376,397 

 

Schedule Of Estimated Fair Value Of Available-For-Sale Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

Estimated Market Value

 

 

 

 

 

Due within one year

 

$  
5,730,052 

 

$
5,982,218 

Due after one year through five years

 

 
3,915,131 

 

 
3,920,978 

 

 

$ 

9,645,183 

 

$
9,903,196 

 


Inventories (Tables)
v0.0.0.0
Inventories (Tables)
 12 Months Ended
Dec. 31, 2013
Inventories [Abstract]  
Schedule Of Inventories

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

 

2013

 

2012

Finished goods

 

$         

18,733,636 

 

$
21,252,143 

Raw and processed materials

 

 
10,378,020 

 

 
12,500,567 

 

 

$
29,111,656 

 

$
33,752,710 

 


Property, Plant And Equipment (Tables)
v0.0.0.0
Property, Plant And Equipment (Tables)
 12 Months Ended
Dec. 31, 2013
Property, Plant And Equipment [Abstract]  
Schedule Of Property, Plant And Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated

 

December 31

 

useful life

 

2013

 

2012

Land

 

 

 

 

 

$
3,116,177 

 

$
3,135,351 

Buildings and improvements

7-40 years

 

 
8,527,594 

 

 
8,858,976 

Machinery and equipment

3-15 years

 

 
25,408,221 

 

 
23,247,888 

Furniture and fixtures

5-10 years

 

 
4,041,884 

 

 
3,644,306 

Construction in progress

 

 

 

 

 

 
617,708 

 

 
1,546,732 

 

 

 

 

 

 

 
41,711,584 

 

 
40,433,253 

Less accumulated depreciation

 

 

 

 

 

 
(26,770,092)

 

 
(25,958,340)

 

 

 

 

 

 

$
14,941,492 

 

$
14,474,913 

 


Goodwill And Other Intangible Assets (Tables)
v0.0.0.0
Goodwill And Other Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2013
Goodwill And Other Intangible Assets [Abstract]  
Schedule Of Changes In Carrying Value Of Goodwill

 

 

 

 

 

 

 

 

 

 

Suttle

Transition Networks

Total

 

 

 

 

 

 

 

 

January 1, 2012

 

$

 -

$
5,990,571 

$
5,990,571 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

 -

 
(33,637)

 
(33,637)

 

 

 

 

 

 

 

 -

December 31, 2012

 

$

 -

 
5,956,934 

 
5,956,934 

 

 

 

 

 

 

 

 

January 1, 2013

 

$

 -

$
5,956,934 

$
5,956,934 

 

 

 

 

 

 

 

 

Impairment loss

 

 

 -

 
(5,849,853)

 
(5,849,853)

Foreign currency translation

 

 

 -

 
(107,081)

 
(107,081)

 

 

 

 

 

 

 

 

December 31, 2013

 

$

 -

$

 -

$

 -

 

 

 

 

 

 

 

 

Gross goodwill

 

 
1,271,986 

$
5,849,853 

$
7,121,839 

Accumulated impairment loss

 

 
(1,271,986)

 
(5,849,853)

 
(7,121,839)

Balance at December 31, 2013

 

$

 -

$

 -

$

 -

 

Schedule Of Finite-Lived Intangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

Gross Carrying Amount

Accumulated Amortization

Foreign Currency Translation

Net

 

 

 

 

 

 

Trademarks

 
81,785 
(17,262)
(10,545)
53,978 

Customer relationships

 
490,707 
(72,500)
(43,105)
375,102 

Technology

 
228,996 
(67,667)
(42,066)
119,263 

 

 
801,488 
(157,429)
(95,716)
548,343 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

 

Gross Carrying Amount

Accumulated Amortization

Foreign Currency Translation

Net

 

 

 

 

 

 

Trademarks

 
81,785 
(16,346)
(1,018)
64,421 

Customer relationships

 
490,707 
(68,652)
(6,108)
415,947 

Technology

 
228,996 
(64,075)
(2,850)
162,071 

 

 
801,488 
(149,073)
(9,976)
642,439 

 

 

 

 

 

 

 

Schedule Of Future Amortization Expense

 

 

 

 

 

 

 

 

Year Ending December 31:

 

 

 

2014

 

$  
104,000 

2015

 

 
104,000 

2016

 

 
86,000 

2017

 

 
59,000 

2018

 

 
55,000 

 


Employment Retirement Benefits (Tables)
v0.0.0.0
Employment Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2013
Employee Retirement Benefits [Abstract]  
Summary Of The Balance Sheet Impact, Including Benefit Obligations, Assets And Funded Status Of The Pension Plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

 

2012

Change in benefit obligation:

 

 

 

 

 

 

Benefit obligation at the beginning of the year

 

$         

5,675,000 

 

$
5,150,000 

Service cost

 

 
5,000 

 

 
275,000 

Interest cost

 

 
186,000 

 

 
244,000 

Participant contributions

 

 
0 

 

 
0 

Augmentations

 

 
211,000 

 

 
0 

Actuarial (gains)/losses

 

 
(198,000)

 

 
325,000 

Benefits paid

 

 
(293,000)

 

 
(552,000)

Changes due to plan settlement

 

 
(2,363,000)

 

 
0 

Foreign currency gains

 

 
117,000 

 

 
233,000 

Benefit obligation at the end of the year

 

 
3,340,000 

 

 
5,675,000 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

 
5,547,000 

 

 
6,056,000 

Actual return on plan assets

 

 
343,000 

 

 
(289,000)

Employer contributions

 

 
297,000 

 

 
58,000 

Participant contributions

 

 
0 

 

 
0 

Benefits paid

 

 
(293,000)

 

 
(552,000)

Changes due to plan settlement

 

 
(2,363,000)

 

 
0 

Foreign currency losses

 

 
114,000 

 

 
274,000 

Fair value of plan assets at end of year

 

 
3,645,000 

 

 
5,547,000 

 

 

 

 

 

 

 

Funded status at end of year – net asset /(liability)

 

$
305,000 

 

$
(128,000)

 

Weighted Average Assumptions Used To Determine Net Periodic Pension Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 
4.6% 

 

 
4.3% 

Expected return on assets

 

 
5.5% 

 

 
5.1% 

 

Summary Of Estimated Future Pension Benefit Payments

 

 

 

 

 

 

2014

$
414,000 

2015

 
148,000 

2016

 
119,000 

2017

 
261,000 

2018

 
236,000 

2019 thru 2023

 
1,411,000 

 

Summary Of Components Of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

 

2012

 

 

2011

Service cost

 

$
5,000 

 

$
275,000 

 

$
36,000 

Interest cost

 

 
186,000 

 

 
244,000 

 

 
240,000 

Expected return on assets

 

 
(229,000)

 

 
(262,000)

 

 
(267,000)

Amortization of prior service cost

 

 
211,000 

 

 

 -

 

 
46,000 

Net periodic pension cost

 

$
173,000 

 

$
257,000 

 

$
55,000 

 


Commitments And Contingencies (Tables)
v0.0.0.0
Commitments And Contingencies (Tables)
 12 Months Ended
Dec. 31, 2013
Commitments And Contingencies [Abstract]  
Minimum Future Lease Payments

 

 

 

 

 

 

 

 

Year Ending December 31:

 

 

 

2014

 

$  
287,000 

2015

 

 
224,000 

2016

 

 
82,000 

 

 

$ 

593,000 

 

Annual Requirements For Principal Payments On The Mortgage

 

 

 

 
2014 
490,000 
2015 
524,000 
2016 
104,000 

 


Stock Compensation (Tables)
v0.0.0.0
Stock Compensation (Tables)
 12 Months Ended
Dec. 31, 2013
Stock Compensation [Abstract]  
Schedule Of Changes In Number Of Outstanding Stock Options Under Director Plan And Stock Plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average

 

Weighted average

 

 

 

exercise price

 

remaining

 

Options

 

per share

 

contractual term

Outstanding – December 31, 2010
162,000 

 

$

 
9.49 

 

5.33 years

Awarded
96,250 

 

 

 
14.16 

 

 

Exercised
(9,000)

 

 

 
8.10 

 

 

Forfeited
(12,430)

 

 

 
11.23 

 

 

Outstanding – December 31, 2011
236,820 

 

$

 
11.35 

 

5.18 years

Awarded
92,223 

 

 

 
13.10 

 

 

Exercised
(12,000)

 

 

 
7.13 

 

 

Forfeited
(5,890)

 

 

 
10.58 

 

 

Outstanding – December 31, 2012
311,153 

 

$

 
12.05 

 

4.99 years

Awarded
169,550 

 

 

 
10.19 

 

 

Exercised
(15,000)

 

 

 
7.35 

 

 

Forfeited
(156,264)

 

 

 
11.25 

 

 

Outstanding – December 31, 2013
309,439 

 

 

 
11.66 

 

4.13 years

 

 

 

 

 

 

 

 

Excercisable at December 31, 2013
231,586 

 

$

 
11.73 

 

3.58 years

Expected to vest December 31, 2013
309,439 

 

 

 
11.66 

 

4.13 years

 

Valuation Assumptions Of Stock Option Plan

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

2013

 

2012

 

2011

Expected volatility
31.8% 

 
31.2% 

 
27.7% 

Risk free interest rate
2.1% 

 
2.3% 

 
3.4% 

Expected holding period

6 years

 

6 years

 

6 years

Dividend yield
6.3% 

 
4.6% 

 
4.2% 

 

Summary Of The Status Of Stock Options Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

Weighted

 

 

 

 

Remaining

 

Average

Range of Exercise Prices

 

Shares

 

Option Life

 

Exercise Price

$7.13 to $8.64

 
15,000 

 

0.3 years

 

$
8.28 

$8.65 to $9.99

 
33,000 

 

4 years

 

 
9.67 

$10.00 to $12.00

 
137,250 

 

4.6 years

 

 
10.64 

$12.01 to $14.50

 
124,189 

 

4.1 years

 

 
13.73 

 

Schedule Of Changes In The Number Of Deferred Stock Shares Under The Stock Plan And Incentive Plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

Grant Date

 

 

 

Shares

 

Fair Value

Outstanding – December 31, 2010

 

 

 -

 

$

 -

Granted

 

 
105,836 

 

 
15.15 

Vested

 

 
(2,657)

 

 
15.40 

Forfeited

 

 
(31,330)

 

 
15.27 

Outstanding – December 31, 2011

 

 
71,849 

 

 
15.14 

Granted

 

 
105,698 

 

 
13.49 

Vested

 

 

 -

 

 

 -

Forfeited

 

 
(16,757)

 

 
13.95 

Outstanding – December 31, 2012

 

 
160,790 

 

 
14.16 

Granted

 

 
222,654 

 

 
10.08 

Vested

 

 
(1,849)

 

 
14.82 

Forfeited

 

 
(181,455)

 

 
12.11 

Outstanding – December 31, 2013

 

 
200,140 

 

 
11.47 

 

Schedule Of Changes In Restricted Stock Units Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

Grant Date

 

 

 

Shares

 

Fair Value

Outstanding – December 31, 2011

 

 

 -

 

$

 -

Granted

 

 
25,879 

 

 
10.82 

Vested

 

 

 -

 

 

 -

Forfeited

 

 

 -

 

 

 -

Outstanding – December 31, 2012

 

 
25,879 

 

 
10.82 

Granted

 

 
31,354 

 

 
10.05 

Vested

 

 

 -

 

 

 -

Forfeited

 

 
(4,040)

 

 
9.90 

Outstanding – December 31, 2013

 

 
53,193 

 

 
10.44 

 


Income Taxes (Tables)
v0.0.0.0
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2013
Income Taxes [Abstract]  
Income Tax Expense By Jurisdiction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

 

2013

 

2012

 

2011

Currently payable income taxes:

 

 

 

 

 

 

 

 

 

Federal

 

$
2,114,000 

 

$
1,669,000 

 

$
5,609,000 

State

 

 
297,000 

 

 
141,000 

 

 
414,000 

Foreign

 

 
(32,000)

 

 
(18,000)

 

 
103,000 

 

 

 
2,379,000 

 

 
1,792,000 

 

$
6,126,000 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

$
(303,000)

 

$
(542,000)

 

$
1,204,000 

State

 

 
18,000 

 

 
(33,000)

 

 
72,000 

Foreign

 

 
(33,000)

 

 
(57,000)

 

 
420,000 

 

 

 
(318,000)

 

 
(632,000)

 

 
1,696,000 

 

 

 

 

 

 

 

 

 

 

 

 

$
2,061,000 

 

$
1,160,000 

 

$
7,822,000 

 

Reconciliation Of Effective Tax Rate, By Percentage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

 

2013

 

2012

 

2011

Tax at U.S. statutory rate

 
35.0% 

 
35.0% 

 
35.0% 

Surtax exemption

 
(5.4)

 
(1.5)

 
(0.3)

State income taxes, net of federal benefit

 
19.1 

 
1.7 

 
1.9 

Foreign income taxes, net of

 

 

 

 

 

 

 foreign tax credits

 
3.3 

 
(0.2)

 
4.7 

Impairment of goodwill

 
116.2 

 

 -

 
2.5 

Other nondeductible items

 
4.9 

 

 -

 

 -

Effect of increase in uncertain tax positions

 
7.3 

 

 -

 

 -

Other

 
6.4 

 
(0.9)

 
0.6 

Effective tax rate

 
186.8% 

 
34.1% 

 
44.4% 

 

Schedule Of Deferred Tax Assets And Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

 

2012

Deferred tax assets:

 

 

 

 

 

Allowance for doubtful accounts

$
19,000 

 

$
25,000 

Inventory

 
3,295,000 

 

 
3,393,000 

Accrued and prepaid expenses

 
502,000 

 

 
530,000 

Domestic net operating loss carry-forward

 
26,000 

 

 
106,000 

Long-term compensation plans

 
373,000 

 

 
330,000 

Nonemployee director stock compensation

 
243,000 

 

 
200,000 

Other stock compensation

 
111,000 

 

 
176,000 

State income taxes

 
75,000 

 

 
69,000 

Foreign net operating loss carry-forwards and credits

 
1,639,000 

 

 
2,092,000 

 

 

 

 

 

 

 

 

 

 

 

 

Gross deferred tax assets

 
6,283,000 

 

 
6,921,000 

Valuation allowance

 
(1,618,000)

 

 
(2,091,000)

 

 

 

 

 

 

Net deferred tax assets

 
4,665,000 

 

 
4,830,000 

 

 

 

 

 

 

Deferred tax liabilities

 

 

 

 

 

Depreciation

 
(1,668,000)

 

 
(1,439,000)

Intangible assets

 
(47,000)

 

 
(759,000)

 

 

 

 

 

 

Gross deferred tax liability

 
(1,715,000)

 

 
(2,198,000)

 

 

 

 

 

 

Total net deferred tax asset

$
2,950,000 

 

$
2,632,000 

 

 

 

 

 

 

 

Schedule Of Unrecognized Tax Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

2012

 

2011

Unrecognized tax benefits – January 1

$
153,000 

$
234,000 

$
270,000 

Gross increases - tax positions in prior period

 
0 

 
0 

 
0 

Gross decreases - tax positions in prior period

 
0 

 
0 

 
0 

Gross increases - current period tax positions

 
158,000 

 
0 

 
7,000 

Settlements

 
(5,000)

 
0 

 
0 

Expiration of statute of limitations

 
(66,000)

 
(81,000)

 
(43,000)

Unrecognized tax benefits – December 31, 2013

$
240,000 

$
153,000 

$
234,000 

 


Information Concerning Industry Segments And Major Customers (Tables)
v0.0.0.0
Information Concerning Industry Segments And Major Customers (Tables)
 12 Months Ended
Dec. 31, 2013
Information Concerning Industry Segments And Major Customers [Abstract]  
Schedule Of Segment Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transition

 

JDL

 

 

 

 

 

 

Suttle

 

Networks

 

Technologies

 

Other

 

Total

2013

 

 

 

 

 

 

 

 

 

 

Sales

$
54,346,428 

$
43,856,640 

$
33,116,442 

$

 -

$
131,319,510 

Cost of sales

 
38,534,823 

 
21,438,115 

 
26,448,044 

 

 -

 
86,420,982 

Gross profit

 
15,811,605 

 
22,418,525 

 
6,668,398 

 

 -

 
44,898,528 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 administrative expenses

 
10,354,176 

 
19,764,937 

 
2,628,999 

 
3,994,757 

 
36,742,869 

Impairment

 

 

 
5,849,853 

 

 

 

 

 
5,849,853 

Restructuring expense

 

 -

 
514,714 

 

 -

 
634,725 

 
1,149,439 

Operating income (loss)

$
5,457,429 

$
(3,710,979)

$
4,039,399 

$
(4,629,482)

$
1,156,367 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
860,896 

$
755,094 

$
53,484 

$
515,356 

$
2,184,830 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$
1,215,394 

$
919,376 

$
46,014 

$
518,563 

$
2,699,347 

 

 

 

 

 

 

 

 

 

 

 

Assets

$
30,636,805 

$
29,440,438 

$
11,350,381 

$
32,105,117 

$
103,532,741 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transition

 

JDL

 

 

 

 

 

 

Suttle

 

Networks

 

Technologies

 

Other

 

Total

2012

 

 

 

 

 

 

 

 

 

 

Sales

$
45,030,184 

$
53,842,940 

$
5,376,530 

$

 -

$
104,249,654 

Cost of sales

 
33,056,579 

 
25,848,307 

 
3,847,877 

 

 -

 
62,752,763 

Gross profit

 
11,973,605 

 
27,994,633 

 
1,528,653 

 

 -

 
41,496,891 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 administrative expenses

 
9,370,737 

 
22,106,199 

 
2,183,798 

 
4,440,039 

 
38,100,773 

Operating income (loss)

$
2,602,868 

$
5,888,434 

$
(655,145)

$
(4,440,039)

$
3,396,118 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
925,149 

$
815,259 

$
103,109 

$
289,994 

$
2,133,511 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$
1,167,495 

$
412,568 

$
36,891 

$
991,004 

$
2,607,958 

 

 

 

 

 

 

 

 

 

 

 

Assets

$
26,148,148 

$
35,851,189 

$
8,385,337 

$
42,149,971 

$
112,534,645 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transition

 

JDL

 

 

 

 

 

 

Suttle

 

Networks

 

Technologies

 

Other

 

Total

2011

 

 

 

 

 

 

 

 

 

 

Sales

$
39,924,484 

$
91,450,014 

$
12,400,553 

$

 -

$
143,775,051 

Cost of sales

 
30,792,769 

 
46,825,149 

 
7,262,006 

 

 -

 
84,879,924 

Gross profit

 
9,131,715 

 
44,624,865 

 
5,138,547 

 

 -

 
58,895,127 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 administrative expenses

 
8,217,766 

 
23,730,729 

 
1,982,353 

 
6,177,373 

 
40,108,221 

Impairment

 
1,271,986 

 

 

 

 

 

 

 
1,271,986 

Operating income (loss)

$
(358,037)

$
20,894,136 

$
3,156,194 

$
(6,177,373)

$
17,514,920 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
946,256 

$
755,789 

$
106,622 

$
292,068 

$
2,100,735 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$
935,030 

$
1,028,941 

$
51,789 

$
740,231 

$
2,755,991 

 

 

 

 

 

 

 

 

 

 

 

Assets

$
27,914,301 

$
33,589,083 

$
1,844,572 

$
53,310,960 

$
116,658,916 

 


Fair Value Measurements (Tables)
v0.0.0.0
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2013
Fair Value Measurements [Abstract]  
Schedule Of Financial Assets And Liabilities Measured At Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
5,751,965 

 

$

 -

 

$

 -

 

$
5,751,965 

Certificates of deposit

 

 

 

 
239,904 

 

 

 

 

 
239,904 

Subtotal

 
5,751,965 

 

 
239,904 

 

 

 -

 

 
5,991,869 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
2,582,502 

 

 

 -

 

 
2,582,502 

Corporate Notes/Bonds

 

 -

 

 
3,159,812 

 

 

 -

 

 
3,159,812 

Subtotal

 

 -

 

 
5,742,314 

 

 

 -

 

 
5,742,314 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
1,197,320 

 

 

 -

 

 
1,197,320 

Corporate Notes/Bonds

 

 -

 

 
2,723,658 

 

 

 -

 

 
2,723,658 

Subtotal

 

 -

 

 
3,920,978 

 

 

 -

 

 
3,920,978 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 -

 

 

 

 

 

 

 

 

 

Accrued Consideration

 

 -

 

 

 -

 

 
(558,801)

 

 
(558,801)

Subtotal

 

 -

 

 

 -

 

 
(558,801)

 

 
(558,801)

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
5,751,965 

 

$
9,903,196 

 

$
(558,801)

 

$
15,096,360 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
5,497,788 

 

$

 -

 

$

 -

 

$
5,497,788 

Subtotal

 
5,497,788 

 

 

 -

 

 

 -

 

 
5,497,788 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
7,258,768 

 

 

 -

 

 
7,258,768 

Corporate Notes/Bonds

 

 

 

 
3,800,143 

 

 

 

 

 
3,800,143 

Commercial Paper

 

 

 

 
1,642,627 

 

 

 

 

 
1,642,627 

Subtotal

 

 -

 

 
12,701,538 

 

 

 -

 

 
12,701,538 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
900,763 

 

 

 -

 

 
900,763 

Corporate Notes/Bonds

 

 

 

 
4,475,634 

 

 

 

 

 
4,475,634 

Subtotal

 

 -

 

 
5,376,397 

 

 

 -

 

 
5,376,397 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accrued Consideration

 

 -

 

 

 -

 

 
(770,041)

 

 
(770,041)

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal

 

 -

 

 

 -

 

 
(770,041)

 

 
(770,041)

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
5,497,788 

 

$
18,077,935 

 

$
(770,041)

 

$
22,805,682 

 


Summary Of Significant Accounting Policies (Narrative) (Details)
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Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2013
segment
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Summary Of Significant Accounting Policies [Abstract]        
Number of segments 3      
Cash and cash equivalents $ 20,059,120 $ 17,869,712 $ 22,515,710 $ 16,787,558
Money market funds 5,752,000      
Value of the investment in short-term money market funds sought to be preserved (in dollars per share) $ 1.00      
Depreciation 2,083,000 2,030,000 2,058,000  
Impairment loss 5,849,853   1,271,986  
Warranty liability period 5 years      
Research and development costs $ 2,760,000 $ 2,304,000 $ 2,045,000  
Dilutive shares 0 10,116 47,261  
Shares not included in the computation of diluted earnings per share 0 80,290 0  

Summary Of Significant Accounting Policies (Schedule Of Warranty) (Details)
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Summary Of Significant Accounting Policies (Schedule Of Warranty) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Summary Of Significant Accounting Policies [Abstract]    
Beginning Balance $ 590 $ 634
Amounts charged to expense 237 217
Actual warranty costs paid (263) (261)
Ending balance $ 564 $ 590

Summary Of Significant Accounting Policies (Components Of Accumulated Other Comprehensive Income) (Details)
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Summary Of Significant Accounting Policies (Components Of Accumulated Other Comprehensive Income) (Details) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive (loss) income, net of tax $ (240,012) $ (588,048)
Minimum Pension Liability [Member]
    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive (loss) income, net of tax 1,796,000 1,759,000
Unrealized Gain On Available-For-Sale Investments [Member]
    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive (loss) income, net of tax 2,000 24,000
Foreign Currency Translation [Member]
    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive (loss) income, net of tax $ (2,038,000) $ (2,371,000)

Cash Equivalents And Investments (Schedule Of Available-For-Sale Securities) (Details)
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Cash Equivalents And Investments (Schedule Of Available-For-Sale Securities) (Details) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost $ 15,637,158 $ 23,535,756
Gross Unrealized Gains 23,517 42,826
Gross Unrealized Losses (5,514) (2,859)
Fair Value 15,655,161 23,575,723
Cash Equivalents 5,991,869 5,497,788
Short-Term Investments 5,742,314 12,701,538
Long-Term Investments 3,920,978 5,376,397
Cash And Cash Equivalents [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 5,751,965 5,497,788
Fair Value 5,751,965 5,497,788
Cash Equivalents 5,751,965 5,497,788
Cash And Cash Equivalents [Member] | Money Market Funds [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 5,751,965 5,497,788
Fair Value 5,751,965 5,497,788
Cash Equivalents 5,751,965 5,497,788
Investments [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 9,885,193 18,037,968
Gross Unrealized Gains 23,517 42,826
Gross Unrealized Losses (5,514) (2,859)
Fair Value 9,903,196 18,077,935
Cash Equivalents 239,904  
Short-Term Investments 5,742,314 12,701,538
Long-Term Investments 3,920,978 5,376,397
Investments [Member] | Certificates Of Deposit [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 4,024,031 8,157,749
Gross Unrealized Gains 687 3,727
Gross Unrealized Losses (4,992) (1,945)
Fair Value 4,019,726 8,159,531
Cash Equivalents 239,904  
Short-Term Investments 2,582,502 7,258,768
Long-Term Investments 1,197,320 900,763
Investments [Member] | Corporate Notes And Bonds [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 5,861,162 8,241,327
Gross Unrealized Gains 22,830 35,364
Gross Unrealized Losses (522) (914)
Fair Value 5,883,470 8,275,777
Short-Term Investments 3,159,812 3,800,143
Long-Term Investments 2,723,658 4,475,634
Investments [Member] | Commercial Paper [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost   1,638,892
Gross Unrealized Gains   3,735
Fair Value   1,642,627
Short-Term Investments   $ 1,642,627

Cash Equivalents And Investments (Schedule Of Estimated Fair Value Of Available-For-Sale Securities) (Details)
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Cash Equivalents And Investments (Schedule Of Estimated Fair Value Of Available-For-Sale Securities) (Details) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]    
Fair Value $ 15,655,161 $ 23,575,723
Investments [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Due within one year, Amortized Cost 5,730,052  
Due after one year through five years, Amortized Cost 3,915,131  
Amortized Cost 9,645,183  
Due within one year, Fair Value 5,982,218  
Due after one year through five years, Fair Value 3,920,978  
Fair Value $ 9,903,196 $ 18,077,935

Inventories (Schedule Of Inventories) (Details)
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Inventories (Schedule Of Inventories) (Details) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Inventories [Abstract]    
Finished goods $ 18,733,636 $ 21,252,143
Raw and processed materials 10,378,020 12,500,567
Total $ 29,111,656 $ 33,752,710

Property, Plant And Equipment (Schedule Of Property, Plant And Equipment) (Details)
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Property, Plant And Equipment (Schedule Of Property, Plant And Equipment) (Details) (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Land [Member]
Dec. 31, 2012
Land [Member]
Dec. 31, 2013
Buildings And Improvements [Member]
Dec. 31, 2012
Buildings And Improvements [Member]
Dec. 31, 2013
Machinery And Equipment [Member]
Dec. 31, 2012
Machinery And Equipment [Member]
Dec. 31, 2013
Furniture And Fixtures [Member]
Dec. 31, 2012
Furniture And Fixtures [Member]
Dec. 31, 2013
Construction In Progress [Member]
Dec. 31, 2012
Construction In Progress [Member]
Dec. 31, 2013
Minimum [Member]
Buildings And Improvements [Member]
Dec. 31, 2013
Minimum [Member]
Machinery And Equipment [Member]
Dec. 31, 2013
Minimum [Member]
Furniture And Fixtures [Member]
Dec. 31, 2013
Maximum [Member]
Buildings And Improvements [Member]
Dec. 31, 2013
Maximum [Member]
Machinery And Equipment [Member]
Dec. 31, 2013
Maximum [Member]
Furniture And Fixtures [Member]
Property, Plant and Equipment [Line Items]                                    
Total property, plant and equipment $ 41,711,584 $ 40,433,253 $ 3,116,177 $ 3,135,351 $ 8,527,594 $ 8,858,976 $ 25,408,221 $ 23,247,888 $ 4,041,884 $ 3,644,306 $ 617,708 $ 1,546,732            
Less accumulated depreciation (26,770,092) (25,958,340)                                
Property, plant and equipment, net $ 14,941,492 $ 14,474,913                                
Estimated useful life                         7 years 3 years 5 years 40 years 15 years 10 years

Acquisition (Narrative) (Details)
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Acquisition (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
 0 Months Ended
Jul. 27, 2011
Dec. 31, 2013
Acquisition [Abstract]    
Total purchase price of acquired entity $ 5,094  
Cash acquired in acquisition 862  
Business acquisition, initial cash consideration paid 3,271  
Business acquisition, deferred consideration 466  
Business acquisition, working capital adjustment 656  
Contingent consideration, maximum amount 818  
Contingent consideration at fair value $ 701 $ 559

Goodwill And Other Intangible Assets (Narrative) (Details)
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Goodwill And Other Intangible Assets (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Goodwill And Other Intangible Assets [Abstract]      
Amortization expense $ 102,000 $ 103,000  
Impairment loss $ 5,849,853   $ 1,271,986

Goodwill And Other Intangible Assets (Schedule Of Changes In Carrying Value Of Goodwill) (Details)
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Goodwill And Other Intangible Assets (Schedule Of Changes In Carrying Value Of Goodwill) (Details) (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Goodwill [Line Items]      
Goodwill, beginning balance $ 5,956,934 $ 5,990,571  
Impairment loss (5,849,853)   (1,271,986)
Foreign currency translation (107,081) (33,637)  
Goodwill, ending balance    5,956,934 5,990,571
Gross goodwill 7,121,839    
Accumulated impairment loss (7,121,839)    
Balance at December 31    5,956,934 5,990,571
Suttle [Member]
      
Goodwill [Line Items]      
Impairment loss     (1,271,986)
Goodwill, ending balance       
Gross goodwill 1,271,986    
Accumulated impairment loss (1,271,986)    
Balance at December 31       
Transition Networks [Member]
      
Goodwill [Line Items]      
Goodwill, beginning balance 5,956,934 5,990,571  
Impairment loss (5,849,853)    
Foreign currency translation (107,081) (33,637)  
Goodwill, ending balance    5,956,934  
Gross goodwill 5,849,853    
Accumulated impairment loss (5,849,853)    
Balance at December 31    $ 5,956,934  

Goodwill And Other Intangible Assets (Schedule Of Finite-Lived Intangible Assets) (Details)
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Goodwill And Other Intangible Assets (Schedule Of Finite-Lived Intangible Assets) (Details) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 801,488 $ 801,488
Accumulated Amortization (157,429) (149,073)
Foreign Currency Translation (95,716) (9,976)
Net 548,343 642,439
Trademarks [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 81,785 81,785
Accumulated Amortization (17,262) (16,346)
Foreign Currency Translation (10,545) (1,018)
Net 53,978 64,421
Customer Relationships [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 490,707 490,707
Accumulated Amortization (72,500) (68,652)
Foreign Currency Translation (43,105) (6,108)
Net 375,102 415,947
Technology [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 228,996 228,996
Accumulated Amortization (67,667) (64,075)
Foreign Currency Translation (42,066) (2,850)
Net $ 119,263 $ 162,071

Goodwill And Other Intangible Assets (Schedule Of Estimated Future Amortization Expense) (Details)
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Goodwill And Other Intangible Assets (Schedule Of Estimated Future Amortization Expense) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Goodwill And Other Intangible Assets [Abstract]  
2014 $ 104
2015 104
2016 86
2017 59
2018 $ 55

Employment Retirement Benefits (Narrative) (Details)
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Employment Retirement Benefits (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]      
Maximum matching percentage by employer 6.00%    
Contributions to the plan $ 457,000 $ 471,000 $ 479,000
Expected contributions in 2014 49,000    
Level 2 [Member]
      
Defined Benefit Plan Disclosure [Line Items]      
Investments used to fund the plan 3,645,000 3,517,000  
Level 3 [Member]
      
Defined Benefit Plan Disclosure [Line Items]      
Investments used to fund the plan $ 0 $ 2,030,000  

Employment Retirement Benefits (Summary Of The Balance Sheet Impact, Including Benefit Obligations, Assets And Funded Status Of The Pension Plan) (Details)
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Employment Retirement Benefits (Summary Of The Balance Sheet Impact, Including Benefit Obligations, Assets And Funded Status Of The Pension Plan) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Employee Retirement Benefits [Abstract]      
Benefit obligation at the beginning of the year $ 5,675 $ 5,150  
Service cost 5 275 36
Interest cost 186 244 240
Participant contributions 0 0  
Augmentations 211 0  
Actuarial (gains)/losses (198) 325  
Benefits paid (293) (552)  
Changes due to plan settlement (2,363) 0  
Foreign currency gains 117 233  
Benefit obligation at the end of the year 3,340 5,675 5,150
Fair value of plan assets at beginning of year 5,547 6,056  
Actual return on plan assets 343 (289)  
Employer contributions 297 58  
Participant contributions 0 0  
Benefits paid (293) (552)  
Changes due to plan settlements (2,363) 0  
Foreign currency losses 114 274  
Fair value of plan assets at end of year 3,645 5,547 6,056
Funded status at end of year - net asset /(liability) $ 305 $ (128)  

Employment Retirement Benefits (Weighted Average Assumptions Used To Determine Net Periodic Pension Costs) (Details)
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Employment Retirement Benefits (Weighted Average Assumptions Used To Determine Net Periodic Pension Costs) (Details)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Employee Retirement Benefits [Abstract]    
Discount rate 4.60% 4.30%
Expected return on plan assets 5.50% 5.10%

Employment Retirement Benefits (Summary Of Estimated Future Pension Benefit Payments) (Details)
v0.0.0.0
Employment Retirement Benefits (Summary Of Estimated Future Pension Benefit Payments) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Employee Retirement Benefits [Abstract]  
2014 $ 414
2015 148
2016 119
2017 261
2018 236
2019 thru 2023 $ 1,411

Employment Retirement Benefits (Summary Of Components Of Net Periodic Benefit Cost) (Details)
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Employment Retirement Benefits (Summary Of Components Of Net Periodic Benefit Cost) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Employee Retirement Benefits [Abstract]      
Service cost $ 5 $ 275 $ 36
Interest cost 186 244 240
Expected return on plan assets (229) (262) (267)
Amortization of prior service cost 211   46
Net periodic pension cost $ 173 $ 257 $ 55

Commitments And Contingencies (Narrative) (Details)
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Commitments And Contingencies (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Commitments and Contingencies [Line Items]      
Rent expense $ 409,000 $ 443,000 $ 421,000
Interest rate 6.83%    
Outstanding balance on the mortgage 1,118,000    
Line of credit 10,000,000    
Line of credit, basis spread on variable rate 1.10%    
Line of credit facility, interest rate at period end 1.30%    
Accrued (income)/expense for long-term compensation plans (124,000) (16,000) 286,000
Accrual for long-term compensation plans 199,000 350,000  
Long-term compensation plan, payments for awards $ 27,000 $ 1,657,000 $ 0
Long-term compensation plan, percentage paid out in cash, cycle 1 50.00%    
Long-term compensation plan, percentage paid out in stock, cycle 1 50.00%    
Long-term compensation plan, percentage paid out in cash, cycle 2 25.00%    
Long-term compensation plan, percentage paid out in stock, cycle 2 75.00%    
Long-term compensation plan, percentage paid out in stock, cycle 3 100.00%    
Maximum [Member]
      
Commitments and Contingencies [Line Items]      
Operating lease terms 5 years    
Minimum [Member]
      
Commitments and Contingencies [Line Items]      
Operating lease terms 1 year    

Commitments And Contingencies (Minimum Future Lease Payments) (Details)
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Commitments And Contingencies (Minimum Future Lease Payments) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Commitments And Contingencies [Abstract]  
2014 $ 287
2015 224
2016 82
Total minimum future lease payments $ 593

Commitments And Contingencies (Annual Requirements For Principal Payments On The Mortgage) (Details)
v0.0.0.0
Commitments And Contingencies (Annual Requirements For Principal Payments On The Mortgage) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Commitments And Contingencies [Abstract]  
2014 $ 490
2015 524
2016 $ 104

Stock Compensation (Narrative) (Details)
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Stock Compensation (Narrative) (Details) (USD $)
 12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Employee Stock Purchase Plan [Member]
Dec. 31, 2013
2011 Executive Incentive Compensation Plan [Member]
Mar. 25, 2011
2011 Executive Incentive Compensation Plan [Member]
Dec. 31, 2013
1992 Stock Plan [Member]
Mar. 31, 2014
Employee Stock Ownership Plan [Member]
Dec. 31, 2013
Employee Stock Ownership Plan [Member]
Dec. 31, 2012
Employee Stock Ownership Plan [Member]
Dec. 31, 2013
Non-Employee Directors [Member]
Stock Option Plan For Directors [Member]
Dec. 31, 2011
Non-Employee Directors [Member]
Stock Option Plan For Directors [Member]
Dec. 31, 2013
Deferred Stock [Member]
Dec. 31, 2012
Deferred Stock [Member]
Dec. 31, 2011
Deferred Stock [Member]
Dec. 31, 2013
Deferred Stock [Member]
Key Employees [Member]
2011 Executive Incentive Compensation Plan [Member]
Dec. 31, 2013
Deferred Stock [Member]
Key Executive Employees [Member]
2011 Executive Incentive Compensation Plan [Member]
Dec. 31, 2013
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2012
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2013
Restricted Stock Units (RSUs) [Member]
Non-Employee Directors [Member]
2011 Executive Incentive Compensation Plan [Member]
item
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                                        
Number of awards authorized           1,000,000                            
Number of options granted         169,550                              
Awards granted                         222,654 105,698 105,836 202,078 11,576 31,354 25,879 30,344
Award expiration period         7 years           10 years                  
Award vesting percentage         25.00%       30.00%                      
Minimum percentage of revenue growth required to earn deferred stock                                 150.00%      
Number of employees receiving awards                                       7
Value of awards granted                                       $ 40,000
Award vesting period                 7 years                     1 year
Initial award vesting period         1 year       3 years                      
Awards avaliable for grant       35,587 623,250   84,718                          
Number of shares automatically granted to each non-employee director                       3,000                
Unrecognized compensation expense related to stock options 67,000 161,000 102,000                                  
Recognition period for unrecognized compensation expense 2 years 9 months 18 days                       1 year 8 months 12 days         4 months 24 days    
Aggregate intrinsic value of options outstanding 183,000                                      
Intrinsic value of all options exercised 38,000 59,000 61,000                                  
Net cash proceeds from exercise of stock options 110,000 86,000 73,000                                  
Unrecognized compensation expense                         74,000 297,000       11,000 16,000  
Excess tax benefits from exercise of stock options 14,000 21,000 22,000                                  
Share based compensation expense before income taxes (81,000) 303,000 449,000                                  
Share based compensation expense after income taxes (53,000) 197,000 292,000                                  
Percentage of price of common stock at which employees are able to acquire       90.00%                                
Requisite service period                 1 year                      
Shares of ESOP allocated to accounts of eligible employees                 558,397                      
ESOP contributions               $ 362,273 $ 463,819 $ 508,198                    
Shares issued under ESOP               32,520 44,598 36,145                    

Stock Compensation (Schedule Of Changes In Number Of Outstanding Stock Options Under Director Plan And Stock Plan) (Details)
v0.0.0.0
Stock Compensation (Schedule Of Changes In Number Of Outstanding Stock Options Under Director Plan And Stock Plan) (Details) (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Stock Compensation [Abstract]        
Options, Outstanding 311,153 236,820 162,000  
Options, Awarded 169,550 92,223 96,250  
Options, Exercised (15,000) (12,000) (9,000)  
Options, Forfeited (156,264) (5,890) (12,430)  
Options, Outstanding 309,439 311,153 236,820 162,000
Options, Exercisable at December 31, 2013 231,586      
Options, Expected to vest December 31, 2013 309,439      
Weighted average exercise price per share, Outstanding $ 12.05 $ 11.35 $ 9.49  
Weighted average exercise price per share, Awarded $ 10.19 $ 13.10 $ 14.16  
Weighted average exercise price per share, Exercised $ 7.35 $ 7.13 $ 8.10  
Weighted average exercise price per share, Forfeited $ 11.25 $ 10.58 $ 11.23  
Weighted average exercise price per share, Outstanding $ 11.66 $ 12.05 $ 11.35 $ 9.49
Weighted average exercise price per share, Exercisable at December 31, 2013 $ 11.73      
Weighted average exercise price per share, Expected to vest December 31, 2013 $ 11.66      
Options, Outstanding - Weighted average remaining contractual term 4 years 1 month 17 days 4 years 11 months 27 days 5 years 2 months 5 days 5 years 3 months 29 days
Options, Exercisable at December 31, 2013 - Weighted average remaining contractual term 3 years 6 months 29 days      
Options, Expected to vest December 31, 2013 - Weighted average remaining contractual term 4 years 1 month 17 days      

Stock Compensation (Valuation Assumptions Of Stock Option Plan) (Details)
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Stock Compensation (Valuation Assumptions Of Stock Option Plan) (Details)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Stock Compensation [Abstract]      
Expected volatility rate 31.80% 31.20% 27.70%
Risk free interest rate 2.10% 2.30% 3.40%
Expected holding period 6 years 6 years 6 years
Dividend yield 6.30% 4.60% 4.20%

Stock Compensation (Summary Of The Status Of Stock Options Outstanding) (Details)
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Stock Compensation (Summary Of The Status Of Stock Options Outstanding) (Details) (USD $)
 12 Months Ended
Dec. 31, 2013
$7.13 to $8.64 [Member]
  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Range of Exercise Prices, lower limit $ 7.13
Range of Exercise Prices, upper limit $ 8.64
Shares 15,000
Weighted Average Remaining Option Life 3 months 18 days
Weighted Average Exercise Price $ 8.28
$8.65 to $9.99 [Member]
  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Range of Exercise Prices, lower limit $ 8.65
Range of Exercise Prices, upper limit $ 9.99
Shares 33,000
Weighted Average Remaining Option Life 4 years
Weighted Average Exercise Price $ 9.67
$10.00 to $12.00 [Member]
  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Range of Exercise Prices, lower limit $ 10.00
Range of Exercise Prices, upper limit $ 12.00
Shares 137,250
Weighted Average Remaining Option Life 4 years 7 months 6 days
Weighted Average Exercise Price $ 10.64
$12.01 to $14.50 [Member]
  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Range of Exercise Prices, lower limit $ 12.01
Range of Exercise Prices, upper limit $ 14.50
Shares 124,189
Weighted Average Remaining Option Life 4 years 1 month 6 days
Weighted Average Exercise Price $ 13.73

Stock Compensation (Schedule Of Changes In The Number Of Deferred Stock Shares Under The Stock Plan And Incentive Plan) (Details)
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Stock Compensation (Schedule Of Changes In The Number Of Deferred Stock Shares Under The Stock Plan And Incentive Plan) (Details) (Deferred Stock [Member], USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Deferred Stock [Member]
      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares, Outstanding 160,790 71,849  
Shares, Granted 222,654 105,698 105,836
Shares, Vested (1,849)   (2,657)
Shares, Forfeited (181,455) (16,757) (31,330)
Shares, Outstanding 200,140 160,790 71,849
Weighted Average Grant Date Fair Value, Outstanding $ 14.16 $ 15.14  
Weighted Average Grant Date Fair Value, Granted $ 10.08 $ 13.49 $ 15.15
Weighted Average Grant Date Fair Value, Vested $ 14.82   $ 15.40
Weighted Average Grant Date Fair Value, Forfeited $ 12.11 $ 13.95 $ 15.27
Weighted Average Grant Date Fair Value, Outstanding $ 11.47 $ 14.16 $ 15.14

Stock Compensation (Schedule Of Changes In Restricted Stock Units Outstanding) (Details)
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Stock Compensation (Schedule Of Changes In Restricted Stock Units Outstanding) (Details) (Restricted Stock Units (RSUs) [Member], USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Restricted Stock Units (RSUs) [Member]
    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares, Outstanding 25,879  
Shares, Granted 31,354 25,879
Shares, Forfeited (4,040)  
Shares, Outstanding 53,193 25,879
Weighted Average Grant Date Fair Value, Outstanding $ 10.82  
Weighted Average Grant Date Fair Value, Granted $ 10.05 $ 10.82
Weighted Average Grant Date Fair Value, Forfeited $ 9.90  
Weighted Average Grant Date Fair Value, Outstanding $ 10.44 $ 10.82

Common Stock (Details)
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Common Stock (Details)
Dec. 31, 2013
Dec. 23, 2009
Common Stock [Abstract]    
Remaining number of shares authorized to be repurchased 411,910  
Number of rights distributed for each share of common stock   1
Number of securities into which each right may be converted   0.01
Exercise price of right   41
Percentage of common stock required to be purchased for rights to become exercisable   16.50%

Income Taxes (Narrative) (Details)
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Income Taxes (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2005
Income Taxes [Line Items]        
Net operating loss carryforwards $ 75,000      
Dividend payable 1,436,318   1,270,016  
Net operating loss carryforwards acquired in acquisition 3,790,000      
Net operating loss carryforwards, limitations on use 228,000      
Uncertain tax benefit positions that would reduce the effective income tax rate if recognized 323,000      
Expiration of statute of limitations 66,000 81,000 43,000  
Accrual for interest and penalties 161,000      
Net increase (decrease) in accrued interest and penalties (7,000)      
Effective income tax rate 186.80% 34.10% 44.40%  
Federal tax rate 35.00% 35.00% 35.00%  
Decrease in income tax rate due to the effect of foreign operations (3.30%) 0.20% (4.70%)  
Scenario, Forecast [Member]
        
Income Taxes [Line Items]        
Expiration of statute of limitations 7,000      
Austin Taylor Communications, Ltd. [Member]
        
Income Taxes [Line Items]        
Pretax income (losses) 428,000 419,000 1,474,000  
Net operating loss carryforwards 6,568,000      
Patapsco [Member] | Foreign Tax Authority [Member]
        
Income Taxes [Line Items]        
Pretax income (losses) (2,754,000) 316,000 55,000  
Net operating loss carryforwards 90,000      
Transition Networks China [Member]
        
Income Taxes [Line Items]        
Pretax income (losses) 341,000 36,000 24,000  
Net operating loss carryforwards 306,000      
Suttle Costa Rica, S.A. [Member]
        
Income Taxes [Line Items]        
Pretax income (losses) 152,000 168,000 155,000  
Net operating loss carryforwards 0      
Dividend payable       $ 3,500,000

Income Taxes (Income Tax Expense By Jurisdiction) (Details)
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Income Taxes (Income Tax Expense By Jurisdiction) (Details) (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income Taxes [Abstract]      
Currently payable income taxes: Federal $ 2,114,000 $ 1,669,000 $ 5,609,000
Currently payable income taxes: State 297,000 141,000 414,000
Currently payable income taxes: Foreign (32,000) (18,000) 103,000
Currently payable income taxes 2,379,000 1,792,000 6,126,000
Deferred income taxes (benefit): Federal (303,000) (542,000) 1,204,000
Deferred income taxes (benefit): State 18,000 (33,000) 72,000
Deferred income taxes (benefit): Foreign (33,000) (57,000) 420,000
Deferred income taxes (benefit) (317,727) (631,626) 1,695,595
Income taxes (benefit) $ 2,061,013 $ 1,159,566 $ 7,822,124

Income Taxes (Reconciliation Of Effective Tax Rate, By Percentage) (Details)
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Income Taxes (Reconciliation Of Effective Tax Rate, By Percentage) (Details)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income Taxes [Abstract]      
Tax at U.S. statutory rate 35.00% 35.00% 35.00%
Surtax exemption (5.40%) (1.50%) (0.30%)
State income taxes, net of federal benefit 19.10% 1.70% 1.90%
Foreign income taxes, net of foreign tax credits 3.30% (0.20%) 4.70%
Impairment of goodwill 116.20%   2.50%
Other nondeductible items 4.90%    
Effect of increase in uncertain tax positions 7.30%    
Other 6.40% (0.90%) 0.60%
Effective tax rate 186.80% 34.10% 44.40%

Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details)
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Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Income Taxes [Abstract]    
Allowance for doubtful accounts $ 19,000 $ 25,000
Inventory 3,295,000 3,393,000
Accrued and prepaid expenses 502,000 530,000
Domestic net operating loss carry-forward 26,000 106,000
Long-term compensation plans 373,000 330,000
Nonemployee director stock compensation 243,000 200,000
Other stock compensation 111,000 176,000
State income taxes 75,000 69,000
Foreign net operating loss carry-forwards and credits 1,639,000 2,092,000
Gross deferred tax assets 6,283,000 6,921,000
Valuation allowance (1,618,000) (2,091,000)
Net deferred tax assets 4,665,000 4,830,000
Depreciation (1,668,000) (1,439,000)
Intangible assets (47,000) (759,000)
Gross deferred tax liability (1,715,000) (2,198,000)
Total net deferred tax asset $ 2,950,000 $ 2,632,000

Income Taxes (Schedule Of Unrecognized Tax Benefits) (Details)
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Income Taxes (Schedule Of Unrecognized Tax Benefits) (Details) (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income Taxes [Abstract]      
Unrecognized tax benefits - January 1 $ 153,000 $ 234,000 $ 270,000
Gross increases - tax positions in prior period 0 0 0
Gross decreases - tax positions in prior period 0 0 0
Gross increases - current period tax positions 158,000 0 7,000
Settlements (5,000) 0 0
Expiration of statute of limitations (66,000) (81,000) (43,000)
Unrecognized tax benefits - December 31, 2013 $ 240,000 $ 153,000 $ 234,000

Information Concerning Industry Segments And Major Customers (Narrative) (Details)
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Information Concerning Industry Segments And Major Customers (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Segment Reporting Information [Line Items]      
Number of segments 3    
Sales [Member] | JDL Technologies [Member]
      
Segment Reporting Information [Line Items]      
Concentration risk percentage 17.50%    
Sales [Member] | Suttle [Member]
      
Segment Reporting Information [Line Items]      
Concentration risk percentage 18.70% 16.60%  
Sales [Member] | Transition Networks [Member]
      
Segment Reporting Information [Line Items]      
Concentration risk percentage   10.60% 22.80%
Foreign Countries [Member] | Suttle [Member]
      
Segment Reporting Information [Line Items]      
Long-lived assets $ 1,225 $ 1,067  
United States [Member] | Sales [Member]
      
Segment Reporting Information [Line Items]      
Concentration risk percentage 87.00% 83.00% 85.00%

Information Concerning Industry Segments And Major Customers (Schedule Of Segment Information) (Details)
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Information Concerning Industry Segments And Major Customers (Schedule Of Segment Information) (Details) (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Segment Reporting Information [Line Items]      
Sales $ 131,319,510 $ 104,249,654 $ 143,775,051
Cost of sales 86,420,982 62,752,763 84,879,924
Gross profit 44,898,528 41,496,891 58,895,127
Selling, general and administrative expenses 36,742,869 38,100,773 40,108,221
Impairment 5,849,853   1,271,986
Restructuring expense 1,149,439    
Operating income (loss) 1,156,367 3,396,118 17,514,920
Depreciation and amortization 2,184,830 2,133,511 2,100,735
Capital expenditures 2,699,347 2,607,958 2,755,991
Assets 103,532,741 112,534,645 116,658,916
Suttle [Member]
      
Segment Reporting Information [Line Items]      
Sales 54,346,428 45,030,184 39,924,484
Cost of sales 38,534,823 33,056,579 30,792,769
Gross profit 15,811,605 11,973,605 9,131,715
Selling, general and administrative expenses 10,354,176 9,370,737 8,217,766
Impairment     1,271,986
Operating income (loss) 5,457,429 2,602,868 (358,037)
Depreciation and amortization 860,896 925,149 946,256
Capital expenditures 1,215,394 1,167,495 935,030
Assets 30,636,805 26,148,148 27,914,301
Transition Networks [Member]
      
Segment Reporting Information [Line Items]      
Sales 43,856,640 53,842,940 91,450,014
Cost of sales 21,438,115 25,848,307 46,825,149
Gross profit 22,418,525 27,994,633 44,624,865
Selling, general and administrative expenses 19,764,937 22,106,199 23,730,729
Impairment 5,849,853    
Restructuring expense 514,714    
Operating income (loss) (3,710,979) 5,888,434 20,894,136
Depreciation and amortization 755,094 815,259 755,789
Capital expenditures 919,376 412,568 1,028,941
Assets 29,440,438 35,851,189 33,589,083
JDL Technologies [Member]
      
Segment Reporting Information [Line Items]      
Sales 33,116,442 5,376,530 12,400,553
Cost of sales 26,448,044 3,847,877 7,262,006
Gross profit 6,668,398 1,528,653 5,138,547
Selling, general and administrative expenses 2,628,999 2,183,798 1,982,353
Operating income (loss) 4,039,399 (655,145) 3,156,194
Depreciation and amortization 53,484 103,109 106,622
Capital expenditures 46,014 36,891 51,789
Assets 11,350,381 8,385,337 1,844,572
Other [Member]
      
Segment Reporting Information [Line Items]      
Selling, general and administrative expenses 3,994,757 4,440,039 6,177,373
Restructuring expense 634,725    
Operating income (loss) (4,629,482) (4,440,039) (6,177,373)
Depreciation and amortization 515,356 289,994 292,068
Capital expenditures 518,563 991,004 740,231
Assets $ 32,105,117 $ 42,149,971 $ 53,310,960

Fair Value Measurements (Narrative) (Details)
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Fair Value Measurements (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair value of accrued consideration $ 558,801 $ 770,041
Change in fair value of acquisition-related contingent consideration 43,898 (85,501)
Fair Value, Assets, Level 1 to Level 2 Transfers, amount 0 0
Fair Value, Assets, Level 2 to Level 1 Transfers, amount 0 0
Fair Value, Liabilities, Level 1 to Level 2 Transfers, amount 0 0
Fair Value, Liabilities, Level 2 to Level 1 Transfers, amount 0 0
Payments [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Change in fair value of acquisition-related contingent consideration 161,060  
Foreign Currency Gain (Loss) [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Change in fair value of acquisition-related contingent consideration 6,282  
Operating Income [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Change in fair value of acquisition-related contingent consideration 43,898  
Level 3 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair value of accrued consideration 558,801 770,041
Accrued Consideration [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair value of accrued consideration 558,801 770,041
Accrued Consideration [Member] | Level 3 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair value of accrued consideration $ 558,801 $ 770,041

Fair Value Measurements (Schedule Of Financial Assets And Liabilities Measured At Fair Value) (Details)
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Fair Value Measurements (Schedule Of Financial Assets And Liabilities Measured At Fair Value) (Details) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 5,991,869 $ 5,497,788
Current Liabilities, fair value (558,801) (770,041)
Assets (Liabilities) Net, fair value 15,096,360 22,805,682
Level 1 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 5,751,965 5,497,788
Assets (Liabilities) Net, fair value 5,751,965 5,497,788
Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 239,904  
Assets (Liabilities) Net, fair value 9,903,196 18,077,935
Level 3 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current Liabilities, fair value (558,801) (770,041)
Assets (Liabilities) Net, fair value (558,801) (770,041)
Money Market Funds [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 5,751,965 5,497,788
Money Market Funds [Member] | Level 1 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 5,751,965 5,497,788
Certificates Of Deposit [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 239,904  
Certificates Of Deposit [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 239,904  
Accrued Consideration [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current Liabilities, fair value (558,801) (770,041)
Accrued Consideration [Member] | Level 3 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current Liabilities, fair value (558,801) (770,041)
Short-Term Investments [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 5,742,314 12,701,538
Short-Term Investments [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 5,742,314 12,701,538
Short-Term Investments [Member] | Certificates Of Deposit [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 2,582,502 7,258,768
Short-Term Investments [Member] | Certificates Of Deposit [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 2,582,502 7,258,768
Short-Term Investments [Member] | Corporate Notes And Bonds [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 3,159,812 3,800,143
Short-Term Investments [Member] | Corporate Notes And Bonds [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 3,159,812 3,800,143
Short-Term Investments [Member] | Commercial Paper [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments   1,642,627
Short-Term Investments [Member] | Commercial Paper [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments   1,642,627
Long Term Investments [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 3,920,978 5,376,397
Long Term Investments [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 3,920,978 5,376,397
Long Term Investments [Member] | Certificates Of Deposit [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 1,197,320 900,763
Long Term Investments [Member] | Certificates Of Deposit [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 1,197,320 900,763
Long Term Investments [Member] | Corporate Notes And Bonds [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 2,723,658 4,475,634
Long Term Investments [Member] | Corporate Notes And Bonds [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments $ 2,723,658 $ 4,475,634

Restructuring Charges (Details)
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Restructuring Charges (Details) (USD $)
 12 Months Ended
Dec. 31, 2013
Restructuring Charges [Abstract]  
Restructuring expense $ 1,149,439
Restructuring charges paid in 2013 663,000
Restructuring accrual recorded in accrued compensation and benefits $ 486,000

Valuation And Qualifying Accounts And Reserves (Details)
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Valuation And Qualifying Accounts And Reserves (Details) (Allowance for Doubtful Accounts [Member], USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Allowance for Doubtful Accounts [Member]
      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Period $ 69 $ 175 $ 500
Additions Charged to Cost and Expenses 23 30 91
Deductions from Reserves (23) [1] (136) [1] (416) [1]
Other Changes Add 0 0 0
Balance at End of Period $ 69 $ 69 $ 175
[1] Accounts determined to be uncollectible and charged off against reserve.