ÿÿÿÿÔ–¡

Document And Entity Information
v0.0.0.0
Document And Entity Information
 3 Months Ended
Mar. 31, 2014
May 01, 2014
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2014  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2014  
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   8,603,668

Consolidated Balance Sheets
v0.0.0.0
Consolidated Balance Sheets (USD $)
Mar. 31, 2014
Dec. 31, 2013
CURRENT ASSETS:    
Cash and cash equivalents $ 17,887,316 $ 20,059,120
Investments 5,322,407 5,742,314
Trade accounts receivable, less allowance for doubtful accounts of $52,000 and $69,000, respectively 16,219,261 22,902,323
Inventories 29,854,972 29,111,656
Prepaid income taxes 1,607,199 1,381,502
Other current assets 708,943 716,784
Deferred income taxes 3,639,000 3,758,750
TOTAL CURRENT ASSETS 75,239,098 83,672,449
PROPERTY, PLANT AND EQUIPMENT, net 15,471,049 14,941,492
OTHER ASSETS:    
Investments 9,477,784 3,920,978
Funded pension assets 220,438 305,028
Other assets 664,833 692,794
TOTAL OTHER ASSETS 10,363,055 4,918,800
TOTAL ASSETS 101,073,202 103,532,741
CURRENT LIABILITIES:    
Current portion of long-term debt 498,115 489,706
Accounts payable 5,751,527 4,894,869
Accrued compensation and benefits 2,569,710 3,927,728
Accrued consideration   558,801
Other accrued liabilities 1,663,976 1,765,428
Dividends payable 1,454,417 1,436,318
TOTAL CURRENT LIABILITIES 11,937,745 13,072,850
LONG TERM LIABILITIES:    
Uncertain tax positions 406,250 400,846
Deferred income taxes 780,792 809,179
Long term debt - mortgage payable 500,096 627,823
TOTAL LONG-TERM LIABILITIES 1,687,138 1,837,848
COMMITMENTS AND CONTINGENCIES (Footnote 7)      
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; 8,600,247 and 8,553,320 shares issued and outstanding, respectively 430,012 427,666
Additional paid-in capital 37,545,498 37,110,671
Retained earnings 49,796,504 51,323,718
Accumulated other comprehensive loss (323,695) (240,012)
TOTAL STOCKHOLDERS' EQUITY 87,448,319 88,622,043
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 101,073,202 $ 103,532,741

Consolidated Balance Sheets (Parenthetical)
v0.0.0.0
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Consolidated Balance Sheets [Abstract]    
Trade accounts receivable, allowance for doubtful accounts $ 52 $ 69
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 8,600,247 8,553,320
Common stock, shares outstanding 8,600,247 8,553,320

Consolidated Statements Of (Loss) Income And Comprehensive (Loss) Income
v0.0.0.0
Consolidated Statements Of (Loss) Income And Comprehensive (Loss) Income (USD $)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Consolidated Statements Of (Loss) Income And Comprehensive (Loss) Income [Abstract]    
Sales $ 25,198,406 $ 27,452,731
Costs and expenses:    
Cost of sales 16,210,390 17,676,804
Selling, general and administrative expenses 9,002,112 9,405,150
Restructuring expense 237,838  
Total costs and expenses 25,450,340 27,081,954
Operating (loss) income (251,934) 370,777
Other (expenses) and income:    
Investment and other income 5,960 87,291
Gain/(loss) on sale of assets 5,740 (47,262)
Interest and other expense (24,655) (29,386)
Other (expense) income, net (12,955) 10,643
(Loss) income from operations before income taxes (264,889) 381,420
Income tax (benefit) expense (124,306) 139,061
Net (loss) income (140,583) 242,359
Other comprehensive loss, net of tax:    
Additional minimum pension liability adjustments (87,343) (205,815)
Unrealized losses on available-for-sale securities (22,890) (12,078)
Foreign currency translation adjustment 26,550 (343,154)
Total other comprehensive loss (83,683) (561,047)
Comprehensive loss $ (224,266) $ (318,688)
Basic net (loss) income per share: $ (0.02) $ 0.03
Diluted net (loss) income per share: $ (0.02) $ 0.03
Weighted Average Basic Shares Outstanding 8,565,426 8,486,533
Weighted Average Dilutive Shares Outstanding 8,565,426 8,496,318
Dividends declared per share $ 0.16 $ 0.16

Consolidated Statements Of Changes In Stockholders' Equity
v0.0.0.0
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, 2013 $ 427,666 $ 37,110,671 $ 51,323,718 $ (240,012) $ 88,622,043
BALANCE, Shares at Dec. 31, 2013 8,553,320        
Net loss     (140,583)   (140,583)
Issuance of common stock under Employee Stock Purchase Plan 158 34,966     35,124
Issuance of common stock under Employee Stock Purchase Plan, Shares 3,153        
Issuance of common stock to Employee Stock Ownership Plan 1,626 360,647     362,273
Issuance of common stock to Employee Stock Ownership Plan, Shares 32,520        
Issuance of common stock under Executive Stock Plan 562 0     562
Issuance of common stock under Executive Stock Plan, Shares 11,254        
Tax deficit from stock based payments   (9,067)     (9,067)
Share-based compensation   48,281     48,281
Shareholder dividends     (1,386,631)   (1,386,631)
Other comprehensive loss       (83,683) (83,683)
BALANCE at Mar. 31, 2014 $ 430,012 $ 37,545,498 $ 49,796,504 $ (323,695) $ 87,448,319
BALANCE, Shares at Mar. 31, 2014 8,600,247        

Consolidated Statements Of Cash Flows
v0.0.0.0
Consolidated Statements Of Cash Flows (USD $)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net (loss) income $ (140,583) $ 242,359
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Depreciation and amortization 560,622 485,793
Share-based compensation 48,281 177,167
Deferred taxes 91,364 (89,101)
Change in fair value of acquisition-related contingent consideration   27,231
(Gain)/loss on sale of assets (5,740) 47,262
Excess tax deficit from share-based payments 9,067  
Changes in assets and liabilities:    
Trade receivables 6,686,463 (3,707,328)
Inventories (733,914) (3,309,289)
Prepaid income taxes (225,644) 111,201
Other assets 14,645 (137,257)
Accounts payable 617,539 (1,229,882)
Accrued compensation and benefits (996,144) (350,808)
Other accrued liabilities (98,905) 255,243
Income taxes payable (3,663) (5,499)
Net cash provided by (used in) operating activities 5,823,388 (7,482,908)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Capital expenditures (823,633) (479,129)
Purchases of investments (6,539,789) (2,932,571)
Proceeds from the sale of fixed assets 5,740 24,971
Proceeds from the sale of investments 1,380,000 4,115,000
Net cash (used in) provided by investing activities (5,977,682) 728,271
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (1,368,532)  
Mortgage principal payments (119,318) (111,462)
Proceeds from issuance of common stock 35,686 43,940
Excess tax deficit from share-based payments (9,067)  
Payment of contingent consideration related to acquisition (565,647) (161,060)
Net cash used in financing activities (2,026,878) (228,582)
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH 9,368 (61,953)
NET DECREASE IN CASH AND CASH EQUIVALENTS (2,171,804) (7,045,172)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 20,059,120 17,869,712
CASH AND CASH EQUIVALENTS AT END OF PERIOD 17,887,316 10,824,540
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:    
Income taxes paid 14,613 116,297
Interest paid 18,405 26,261
Dividends declared not paid 1,454,417 1,363,795
Capital expenditures in accounts payable $ 237,330  

Summary Of Significant Accounting Policies
v0.0.0.0
Summary Of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2014
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” or the “Company”) is a Minnesota corporation organized in 1969 that operates primarily as a holding company conducting its business through three business units having operations in the United States, Costa Rica, the United Kingdom and China. Through its Suttle business unit, the Company is principally engaged in the manufacture and sale of modular connecting and wiring devices for voice and data communications, digital subscriber line filters, and structured wiring systems. Through its Transition Networks business unit, the Company is engaged in the manufacture of media and rate conversion products for telecommunications networks. Through its JDL Technologies (“JDL”) business unit, the Company also provides IT solutions including network design, computer infrastructure installations, IT service management, change management, network security and network operations services.

 

Financial Statement Presentation

 

The condensed consolidated balance sheets and condensed consolidated statement of changes in stockholders’ equity as of March 31, 2014 and the related condensed consolidated statements of (loss) income and comprehensive (loss) income, and the condensed consolidated statements of cash flows for the periods ended March 31, 2014 and 2013 have been prepared by Company management.  In the opinion of management, all adjustments (which include only normal recurring adjustments, except where noted) necessary to present fairly the financial position, results of operations, and cash flows at March 31, 2014 and 2013 and for the periods then ended have been made.

 

Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted.  We recommend these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2013 Annual Report to Shareholders on Form 10-K.  The results of operations for the periods ended March 31, 2014 are not necessarily indicative of operating results for the entire year.

 

The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period.  The estimates and assumptions used in the accompanying condensed consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the time of the financial statements.  Actual results could differ from those estimates.

 

Except to the extent updated or described below, the significant accounting policies set forth in Note 1 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, appropriately represent, in all material respects, the current status of accounting policies, and are incorporated herein by reference.

 

Accumulated Other Comprehensive Loss

 

The components of accumulated other comprehensive income, net of tax, are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

 

December 31

 

 

 

2014

 

 

2013

Foreign currency translation

 

$
(2,011,000)

 

$
(2,038,000)

Unrealized (loss)/gain on available-for-sale investments

 

 
(21,000)

 

 
2,000 

Pension liability adjustment

 

 
1,708,000 

 

 
1,796,000 

 

 

$
(324,000)

 

$
(240,000)

 


Cash Equivalents And Investments
v0.0.0.0
Cash Equivalents And Investments
 3 Months Ended
Mar. 31, 2014
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’ amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short and long term investments as of March 31, 2014 and December 31, 2013:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2014

 

Amortized Cost

 

Gross Unrealized Gains

 

Gross Unrealized Losses

 

Fair Value

 

Cash Equivalents

 

Short-Term Investments

 

Long-Term Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
6,618,007 

 

$

 -

 

$

 -

 

$
6,618,007 

 

$
6,618,007 

 

$

 

 

$

 

Subtotal

 
6,618,007 

 

 

 -

 

 

 -

 

 
6,618,007 

 

 
6,618,007 

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 
4,564,372 

 

 
1,248 

 

 
(5,960)

 

 
4,559,660 

 

 
240,008 

 

 
1,920,119 

 

 
2,399,533 

Corporate Notes/Bonds

 
10,480,714 

 

 
19,520 

 

 
(19,695)

 

 
10,480,539 

 

 

 -

 

 
3,402,288 

 

 
7,078,251 

Subtotal

 
15,045,086 

 

 
20,768 

 

 
(25,655)

 

 
15,040,199 

 

 
240,008 

 

 
5,322,407 

 

 
9,477,784 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
21,663,093 

 

$
20,768 

 

$
(25,655)

 

$
21,658,206 

 

$
6,858,015 

 

$
5,322,407 

 

$
9,477,784 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

 

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 these recoveries to occur prior to the contractual maturities.  All unrealized losses as of March 31, 2014 were in a continuous unrealized loss position for less than twelve months and are not deemed to be other than temporarily impaired as of March 31, 2014.

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 March 31, 2014:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

Estimated Market Value

 

 

 

 

 

Due within one year

 

$  
5,555,124 

 

$
5,562,415 

Due after one year through five years

 

 
9,489,962 

 

 
9,477,784 

 

 

$ 

15,045,086 

 

$
15,040,199 

 

The Company did not recognize any gross realized gains, and gross realized losses were immaterial, during the three-month periods ending March 31, 2014 and 2013, 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.


Stock-Based Compensation
v0.0.0.0
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2014
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

NOTE 3 - STOCK-BASED COMPENSATION

 

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 March 31, 2014.  The ESPP is considered compensatory under current Internal Revenue Service rules.  At March 31, 2014, after giving effect to the shares issued as of that date, 32,434 shares remain available for purchase under the ESPP.

 

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 2014, stock options covering 134,271 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 43,330 shares to key employees during 2014 under the Company’s long-term incentive plan that vest over three years with the first vesting period at March 28, 2015. 

 

At March 31, 2014,  456,212 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 shares of common stock were automatically granted to each non-employee director concurrent with annual meetings of shareholders in 2010 and earlier years, with the exercise price of options granted being 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.   

 

No options were granted under the Director Plan in 2013 or 2014.  The Director Plan was amended as of May 19, 2011 to prohibit option grants in 2011 and future years.

 

1992 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 March 31, 2014, after reserving for stock options and deferred stock awards granted in prior years and adjusting for forfeitures and issuances during the year, there were 60,598 shares reserved for issuance under the Stock Plan. The Company has not awarded stock options or deferred stock under this plan in 2014.

 

Changes in Stock Options Outstanding

 

The following table summarizes changes in the number of outstanding stock options under the 2011 Incentive Plan, the Director Plan and Stock Plan over the period December 31, 2013 to March 31, 2014:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average

 

Weighted average

 

 

 

exercise price

 

remaining

 

Options

 

per share

 

contractual term

Outstanding – December 31, 2013
309,439 

 

$

 
11.66 

 
4.13 

Awarded
134,271 

 

 

 
12.97 

 

 

Exercised

 -

 

 

 

 -

 

 

Forfeited
(20,293)

 

 

 
13.78 

 

 

Outstanding – March 31, 2014
423,417 

 

 

 
11.97 

 
4.84 

 

 

 

 

 

 

 

 

Excercisable at March 31, 2014
235,135 

 

$

 
11.57 

 
3.45 

Expected to vest March 31, 2014
423,417 

 

 

 
11.97 

 
4.84 

 

The aggregate intrinsic value of all options (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) outstanding at March 31, 2014 was $480,000.  The intrinsic value of all options exercised during the three months ended March 31, 2014 was $0. Net cash proceeds from the exercise of all stock options were $0 and $0 for the three months ended March 31, 2014 and 2013, respectively.

 

Changes in 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, 2013 to March 31, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

Grant Date

 

 

 

Shares

 

Fair Value

Outstanding – December 31, 2013

 

 
200,140 

 

$
11.47 

Granted

 

 
47,330 

 

 
12.53 

Vested

 

 
(11,254)

 

 
15.15 

Forfeited

 

 
(7,136)

 

 
10.99 

Outstanding – March 31, 2014

 

 
229,080 

 

 
11.53 

 

Changes in 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, 2013 to March 31, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

Grant Date

 

 

 

Shares

 

Fair Value

Outstanding – December 31, 2013

 

 
53,193 

 

$
10.44 

Granted

 

 

 -

 

 

 -

Vested

 

 

 -

 

 

 -

Forfeited

 

 

 -

 

 

 -

Outstanding – March 31, 2014

 

 
53,193 

 

 
10.44 

 

Compensation Expense

 

Share-based compensation expense recognized for the three-month period ended March 31, 2014 was $48,000 before income taxes and $31,000 after income taxes. Share-based compensation expense recognized for the three-month period ended March 31,  2013 was $177,000 before income taxes and $115,000 after income taxes.  Unrecognized compensation expense for the Company’s plans was $1,010,000 at March 31, 2014 and is expected to be recognized over a weighted-average period of 3.2 years.  Excess tax benefits from the exercise of stock options and issuance of stock included in financing cash flows for the three month periods ended March 31, 2014 and 2013 were $ (9,000) and $0, respectively. Share-based compensation expense is recorded as a part of selling, general and administrative expenses.


Inventories
v0.0.0.0
Inventories
 3 Months Ended
Mar. 31, 2014
Inventories [Abstract]  
Inventories

NOTE 4 - INVENTORIES

 

Inventories summarized below are priced at the lower of first-in, first-out cost or market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

December 31

 

 

2014

 

2013

Finished goods

 

$         

19,342,657 

 

$
18,733,636 

Raw and processed materials

 

 
10,512,315 

 

 
10,378,020 

 

 

$
29,854,972 

 

$
29,111,656 

 


Intangible Assets
v0.0.0.0
Intangible Assets
 3 Months Ended
Mar. 31, 2014
Intangible Assets [Abstract]  
Intangible Assets

NOTE 5 –INTANGIBLE ASSETS

 

The Company’s identifiable intangible assets with finite lives are being amortized over their estimated useful lives and were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2014

 

 

Gross Carrying Amount

Accumulated Amortization

Foreign Currency Translation

Net

 

 

 

 

 

 

Trademarks

 
81,785 
(31,649)
1,399 
51,535 

Customer relationships

 
490,707 
(132,923)
8,397 
366,181 

Technology

 
228,996 
(124,062)
3,919 
108,853 

 

 
801,488 
(288,634)
13,715 
526,569 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

 

Amortization expense on these identifiable intangible assets was $27,000 and $25,000 in 2014 and 2013, respectively. The amortization expense is included in selling, general and administrative expenses.


Warranty
v0.0.0.0
Warranty
 3 Months Ended
Mar. 31, 2014
Warranty [Abstract]  
Warranty

 

NOTE 6 – WARRANTY

 

We provide 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 actual warranty expense could differ from the estimates made by the Company based on product performance.

 

The following table presents the changes in the Company’s warranty liability for the three-month periods ended March 31, 2014 and 2013, respectively, the majority of which relates to a five-year obligation to provide for potential future liabilities for network equipment sales.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

2013

Beginning balance

 

$
564,000 

 

$
590,000 

Amounts charged to expense

 

 
12,000 

 

 
90,000 

Actual warranty costs paid

 

 
(50,000)

 

 
(123,000)

Ending balance

 

$
526,000 

 

$
557,000 

 


Contingencies
v0.0.0.0
Contingencies
 3 Months Ended
Mar. 31, 2014
Contingencies [Abstract]  
Contingencies

NOTE 7 – CONTINGENCIES

 

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


Income Taxes
v0.0.0.0
Income Taxes
 3 Months Ended
Mar. 31, 2014
Income Taxes [Abstract]  
Income Taxes

NOTE 8 – INCOME TAXES

 

In the preparation of the Company’s consolidated financial statements, management calculates income taxes based upon the estimated effective rate applicable to operating results for the full fiscal year. This includes estimating the current tax liability as well as assessing differences resulting from different treatment of items for tax and book accounting purposes. These differences result in deferred tax assets and liabilities, which are recorded on the balance sheet. These assets and liabilities are analyzed regularly and management assesses the likelihood that deferred tax assets will be recovered from future taxable income.

  

At March 31, 2014 there was $327,000 of net uncertain tax benefit positions that would reduce the effective income tax rate if recognized.  The Company records interest and penalties related to income taxes as income tax expense in the Condensed Consolidated Statements of Income.

 

The Company is subject to U.S. federal income tax as well as income tax of multiple state and foreign jurisdictions. The tax years 2010-2012 remain open to examination by the Internal Revenue Service and the years 2009-2012 remain open to examination by various state tax departments. The tax years from 2010-2012 remain open in Costa Rica.

 

The Company’s effective income tax rate was 46.9% for the first three months of 2014. The effective tax rate differs from the federal tax rate of 35% due to state income taxes, foreign losses not deductible for U.S. income tax purposes, and provisions for interest charges for uncertain income tax positions. The effect of the foreign operations is an overall rate increase of approximately 9.9% for the three months ended March 31, 2014.  There were no additional uncertain tax positions identified in the first three months of 2014.  The Company's effective income tax rate for the three months ended March 31,  2013 was 36.5%, and differed from the federal tax rate due to state income taxes, foreign losses not deductible for U.S. income tax purposes, provisions for interest charges, and the effect of operations conducted in lower foreign tax rate jurisdictions.


Segment Information
v0.0.0.0
Segment Information
 3 Months Ended
Mar. 31, 2014
Segment Information [Abstract]  
Segment Information

NOTE 9 – SEGMENT INFORMATION

 

Effective January 1, 2014, the Company realigned the financial reporting for its business units.  As a result of this realignment, all corporate general and administrative expenses that were previously categorized as “Other” are now included within the business unit level as fully allocated costs. 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.

 

Management has chosen to organize the enterprise and disclose reportable segments based on our products and services. There are no material inter-segment revenues. In order to conform to the 2014 presentation, the Company has reclassified the previously non-allocated Corporate expenses within the business segments.

 

Information concerning the Company’s continuing operations in the various segments for the three-month periods ended March 31, 2014 and 2013 is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transition

 

JDL

 

 

 

 

 

 

Suttle

 

Networks

 

Technologies

 

Other

 

Total

Three Months Ended March 31, 2014

 

 

 

 

 

 

 

 

 

 

Sales

$
12,882,331 

$
9,749,381 

$
2,566,694 

$

 -

$
25,198,406 

Cost of sales

 
9,392,136 

 
5,042,970 

 
1,775,284 

 

 -

 
16,210,390 

Gross profit

 
3,490,195 

 
4,706,411 

 
791,410 

 

 -

 
8,988,016 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 administrative expenses

 
3,137,649 

 
5,179,759 

 
684,704 

 

 -

 
9,002,112 

Restructuring expense

 

 

 
237,838 

 

 -

 

 

 
237,838 

Operating income (loss)

$
352,546 

$
(711,186)

$
106,706 

$

 -

$
(251,934)

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
293,171 

$
230,714 

$
36,737 

$

 -

$
560,622 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$
626,911 

$
107,413 

$
9,756 

$
79,553 

$
823,633 

 

 

 

 

 

 

 

 

 

 

 

Assets

$
32,608,313 

$
27,092,762 

$
6,346,670 

$
35,025,457 

$
101,073,202 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transition

 

JDL

 

 

 

 

 

 

Suttle

 

Networks

 

Technologies

 

Other

 

Total

Three Months Ended March 31, 2013

 

 

 

 

 

 

 

 

 

 

Sales

$
12,412,188 

$
10,813,121 

$
4,227,422 

$

 -

$
27,452,731 

Cost of sales

 
9,096,683 

 
5,092,291 

 
3,487,830 

 

 -

 
17,676,804 

Gross profit

 
3,315,505 

 
5,720,830 

 
739,592 

 

 -

 
9,775,927 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 administrative expenses

 
2,628,244 

 
6,044,659 

 
732,247 

 

 -

 
9,405,150 

Operating income (loss)

$
687,261 

$
(323,829)

$
7,345 

$

 -

$
370,777 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
243,353 

$
210,954 

$
31,486 

$

 -

$
485,793 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$
164,402 

$
131,354 

$
15,361 

$
168,012 

$
479,129 

 

 

 

 

 

 

 

 

 

 

 

Assets

$
26,834,977 

$
31,484,025 

$
14,551,382 

$
38,199,216 

$
111,069,600 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Pensions
v0.0.0.0
Pensions
 3 Months Ended
Mar. 31, 2014
Pensions [Abstract]  
Pensions

NOTE 10 – PENSIONS

 

The Company’s U.K. based subsidiary Austin Taylor maintains defined benefit pension plans.  The Company does not provide any other post-retirement benefits to its employees.  Components of net periodic benefit cost of the pension plans for the three-months ended March 31, 2014 and 2013 were:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31

 

 

 

 

2014

 

 

2013

 

Service cost

 

$
1,000 

 

$
65,000 

 

Interest cost

 

 
39,000 

 

 
57,000 

 

Expected return on assets

 

 
(49,000)

 

 
(62,000)

 

Net periodic pension (benefit) cost

 

$
(9,000)

 

$
60,000 

 

 


Net Income Per Share
v0.0.0.0
Net Income Per Share
 3 Months Ended
Mar. 31, 2014
Net Income Per Share [Abstract]  
Net Income Per Share

NOTE 11 – 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 takes into effect the dilutive effect of potential common shares outstanding.  The Company’s only potential common shares outstanding are stock options and shares associated with the long-term incentive compensation plans, which resulted in a dilutive effect of 0 and 9,785 shares for the three-months ended March 31, 2014 and 2013, respectively. The Company calculates the dilutive effect of outstanding options using the treasury stock method. Due to the net loss in 2014, there was no dilutive impact from stock options or unvested shares.  Options totaling 116,290 were excluded from the calculation of diluted earnings per share for the three-months ended March 31,  2013 because the exercise price was greater than the average market price of common stock during the period and deferred stock awards totaling 323,236 shares were not included for the three-month period ended March 31,  2013 because of unmet performance conditions.


Fair Value Measurements
v0.0.0.0
Fair Value Measurements
 3 Months Ended
Mar. 31, 2014
Fair Value Measurements [Abstract]  
Fair Value Measurements

NOTE 12 – FAIR VALUE MEASUREMENTS

The accounting guidance establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows:

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 March 31, 2014 and December 31, 2013, are summarized below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
6,618,007 

 

$

 -

 

$

 -

 

$
6,618,007 

Certificates of deposit

 

 

 

 
240,008 

 

 

 

 

 
240,008 

Subtotal

 
6,618,007 

 

 
240,008 

 

 

 -

 

 
6,858,015 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
1,920,119 

 

 

 -

 

 
1,920,119 

Corporate Notes/Bonds

 

 -

 

 
3,402,288 

 

 

 -

 

 
3,402,288 

Subtotal

 

 -

 

 
5,322,407 

 

 

 -

 

 
5,322,407 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
2,399,533 

 

 

 -

 

 
2,399,533 

Corporate Notes/Bonds

 

 -

 

 
7,078,251 

 

 

 -

 

 
7,078,251 

Subtotal

 

 -

 

 
9,477,784 

 

 

 -

 

 
9,477,784 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
6,618,007 

 

$
15,040,199 

 

$

 -

 

$
21,658,206 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

 

The change in the estimated contingent consideration during the three months was due to $565,647 in payments and  $6,846 in foreign currency gains. 

 

We record transfers between levels of the fair value hierarchy, if necessary, at the end of the reporting period. There were no transfers between levels during the three months ended March 31, 2014.

 


Restructuring Charges
v0.0.0.0
Restructuring Charges
 3 Months Ended
Mar. 31, 2014
Restructuring Charges [Abstract]  
Restructuring Charges

NOTE 13 – RESTRUCTURING CHARGES

 

During the three-months ended March 31, 2014, the Company recorded $238,000 in restructuring expense. This consisted of severance and related benefits costs due to the restructuring within the Transition Networks business segment, including ongoing costs related to the closure of the China facility.   We expect the facility to be completely closed in the second quarter of 2014. The Company paid $421,000 in restructuring charges during the first quarter of 2014 and had $303,000 in restructuring accruals recorded in accrued compensation and benefits at March 31, 2014 that are expected to be paid during 2014.

Subsequent Events
v0.0.0.0
Subsequent Events
 3 Months Ended
Mar. 31, 2014
Subsequent Events [Abstract]  
Subsequent Events

NOTE 14 – SUBSEQUENT EVENTS

 

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


Summary Of Significant Accounting Policies (Policy)
v0.0.0.0
Summary Of Significant Accounting Policies (Policy)
 3 Months Ended
Mar. 31, 2014
Summary Of Significant Accounting Policies [Abstract]  
Financial Statement Presentation

Financial Statement Presentation

 

The condensed consolidated balance sheets and condensed consolidated statement of changes in stockholders’ equity as of March 31, 2014 and the related condensed consolidated statements of (loss) income and comprehensive (loss) income, and the condensed consolidated statements of cash flows for the periods ended March 31, 2014 and 2013 have been prepared by Company management.  In the opinion of management, all adjustments (which include only normal recurring adjustments, except where noted) necessary to present fairly the financial position, results of operations, and cash flows at March 31, 2014 and 2013 and for the periods then ended have been made.

 

Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted.  We recommend these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2013 Annual Report to Shareholders on Form 10-K.  The results of operations for the periods ended March 31, 2014 are not necessarily indicative of operating results for the entire year.

 

The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosure of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period.  The estimates and assumptions used in the accompanying condensed consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the time of the financial statements.  Actual results could differ from those estimates.

 

Except to the extent updated or described below, the significant accounting policies set forth in Note 1 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, appropriately represent, in all material respects, the current status of accounting policies, and are incorporated herein by reference.


Summary Of Significant Accounting Policies (Tables)
v0.0.0.0
Summary Of Significant Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 2014
Summary Of Significant Accounting Policies [Abstract]  
Components Of Accumulated Other Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

 

December 31

 

 

 

2014

 

 

2013

Foreign currency translation

 

$
(2,011,000)

 

$
(2,038,000)

Unrealized (loss)/gain on available-for-sale investments

 

 
(21,000)

 

 
2,000 

Pension liability adjustment

 

 
1,708,000 

 

 
1,796,000 

 

 

$
(324,000)

 

$
(240,000)

 


Cash Equivalents And Investments (Tables)
v0.0.0.0
Cash Equivalents And Investments (Tables)
 3 Months Ended
Mar. 31, 2014
Cash Equivalents And Investments [Abstract]  
Schedule Of Cash And Available-For-Sale Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2014

 

Amortized Cost

 

Gross Unrealized Gains

 

Gross Unrealized Losses

 

Fair Value

 

Cash Equivalents

 

Short-Term Investments

 

Long-Term Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
6,618,007 

 

$

 -

 

$

 -

 

$
6,618,007 

 

$
6,618,007 

 

$

 

 

$

 

Subtotal

 
6,618,007 

 

 

 -

 

 

 -

 

 
6,618,007 

 

 
6,618,007 

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 
4,564,372 

 

 
1,248 

 

 
(5,960)

 

 
4,559,660 

 

 
240,008 

 

 
1,920,119 

 

 
2,399,533 

Corporate Notes/Bonds

 
10,480,714 

 

 
19,520 

 

 
(19,695)

 

 
10,480,539 

 

 

 -

 

 
3,402,288 

 

 
7,078,251 

Subtotal

 
15,045,086 

 

 
20,768 

 

 
(25,655)

 

 
15,040,199 

 

 
240,008 

 

 
5,322,407 

 

 
9,477,784 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
21,663,093 

 

$
20,768 

 

$
(25,655)

 

$
21,658,206 

 

$
6,858,015 

 

$
5,322,407 

 

$
9,477,784 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

Estimated Market Value

 

 

 

 

 

Due within one year

 

$  
5,555,124 

 

$
5,562,415 

Due after one year through five years

 

 
9,489,962 

 

 
9,477,784 

 

 

$ 

15,045,086 

 

$
15,040,199 

 


Stock-Based Compensation (Tables)
v0.0.0.0
Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2014
Stock-Based 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, 2013
309,439 

 

$

 
11.66 

 
4.13 

Awarded
134,271 

 

 

 
12.97 

 

 

Exercised

 -

 

 

 

 -

 

 

Forfeited
(20,293)

 

 

 
13.78 

 

 

Outstanding – March 31, 2014
423,417 

 

 

 
11.97 

 
4.84 

 

 

 

 

 

 

 

 

Excercisable at March 31, 2014
235,135 

 

$

 
11.57 

 
3.45 

Expected to vest March 31, 2014
423,417 

 

 

 
11.97 

 
4.84 

 

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, 2013

 

 
200,140 

 

$
11.47 

Granted

 

 
47,330 

 

 
12.53 

Vested

 

 
(11,254)

 

 
15.15 

Forfeited

 

 
(7,136)

 

 
10.99 

Outstanding – March 31, 2014

 

 
229,080 

 

 
11.53 

 

Schedule Of Changes In Restricted Stock Units Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

Grant Date

 

 

 

Shares

 

Fair Value

Outstanding – December 31, 2013

 

 
53,193 

 

$
10.44 

Granted

 

 

 -

 

 

 -

Vested

 

 

 -

 

 

 -

Forfeited

 

 

 -

 

 

 -

Outstanding – March 31, 2014

 

 
53,193 

 

 
10.44 

 


Inventories (Tables)
v0.0.0.0
Inventories (Tables)
 3 Months Ended
Mar. 31, 2014
Inventories [Abstract]  
Schedule Of Inventories

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

December 31

 

 

2014

 

2013

Finished goods

 

$         

19,342,657 

 

$
18,733,636 

Raw and processed materials

 

 
10,512,315 

 

 
10,378,020 

 

 

$
29,854,972 

 

$
29,111,656 

 


Intangible Assets (Tables)
v0.0.0.0
Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2014
Intangible Assets [Abstract]  
Schedule Of Finite-Lived Intangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2014

 

 

Gross Carrying Amount

Accumulated Amortization

Foreign Currency Translation

Net

 

 

 

 

 

 

Trademarks

 
81,785 
(31,649)
1,399 
51,535 

Customer relationships

 
490,707 
(132,923)
8,397 
366,181 

Technology

 
228,996 
(124,062)
3,919 
108,853 

 

 
801,488 
(288,634)
13,715 
526,569 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

 


Warranty (Tables)
v0.0.0.0
Warranty (Tables)
 3 Months Ended
Mar. 31, 2014
Warranty [Abstract]  
Schedule Of Warranty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

2013

Beginning balance

 

$
564,000 

 

$
590,000 

Amounts charged to expense

 

 
12,000 

 

 
90,000 

Actual warranty costs paid

 

 
(50,000)

 

 
(123,000)

Ending balance

 

$
526,000 

 

$
557,000 

 


Segment Information (Tables)
v0.0.0.0
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2014
Segment Information [Abstract]  
Schedule Of Segment Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transition

 

JDL

 

 

 

 

 

 

Suttle

 

Networks

 

Technologies

 

Other

 

Total

Three Months Ended March 31, 2014

 

 

 

 

 

 

 

 

 

 

Sales

$
12,882,331 

$
9,749,381 

$
2,566,694 

$

 -

$
25,198,406 

Cost of sales

 
9,392,136 

 
5,042,970 

 
1,775,284 

 

 -

 
16,210,390 

Gross profit

 
3,490,195 

 
4,706,411 

 
791,410 

 

 -

 
8,988,016 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 administrative expenses

 
3,137,649 

 
5,179,759 

 
684,704 

 

 -

 
9,002,112 

Restructuring expense

 

 

 
237,838 

 

 -

 

 

 
237,838 

Operating income (loss)

$
352,546 

$
(711,186)

$
106,706 

$

 -

$
(251,934)

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
293,171 

$
230,714 

$
36,737 

$

 -

$
560,622 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$
626,911 

$
107,413 

$
9,756 

$
79,553 

$
823,633 

 

 

 

 

 

 

 

 

 

 

 

Assets

$
32,608,313 

$
27,092,762 

$
6,346,670 

$
35,025,457 

$
101,073,202 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transition

 

JDL

 

 

 

 

 

 

Suttle

 

Networks

 

Technologies

 

Other

 

Total

Three Months Ended March 31, 2013

 

 

 

 

 

 

 

 

 

 

Sales

$
12,412,188 

$
10,813,121 

$
4,227,422 

$

 -

$
27,452,731 

Cost of sales

 
9,096,683 

 
5,092,291 

 
3,487,830 

 

 -

 
17,676,804 

Gross profit

 
3,315,505 

 
5,720,830 

 
739,592 

 

 -

 
9,775,927 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 administrative expenses

 
2,628,244 

 
6,044,659 

 
732,247 

 

 -

 
9,405,150 

Operating income (loss)

$
687,261 

$
(323,829)

$
7,345 

$

 -

$
370,777 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
243,353 

$
210,954 

$
31,486 

$

 -

$
485,793 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$
164,402 

$
131,354 

$
15,361 

$
168,012 

$
479,129 

 

 

 

 

 

 

 

 

 

 

 

Assets

$
26,834,977 

$
31,484,025 

$
14,551,382 

$
38,199,216 

$
111,069,600 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Pensions (Tables)
v0.0.0.0
Pensions (Tables)
 3 Months Ended
Mar. 31, 2014
Pensions [Abstract]  
Summary Of Components Of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31

 

 

 

 

2014

 

 

2013

 

Service cost

 

$
1,000 

 

$
65,000 

 

Interest cost

 

 
39,000 

 

 
57,000 

 

Expected return on assets

 

 
(49,000)

 

 
(62,000)

 

Net periodic pension (benefit) cost

 

$
(9,000)

 

$
60,000 

 

 


Fair Value Measurements (Tables)
v0.0.0.0
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2014
Fair Value Measurements [Abstract]  
Schedule Of Financial Assets And Liabilities Measured At Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
6,618,007 

 

$

 -

 

$

 -

 

$
6,618,007 

Certificates of deposit

 

 

 

 
240,008 

 

 

 

 

 
240,008 

Subtotal

 
6,618,007 

 

 
240,008 

 

 

 -

 

 
6,858,015 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
1,920,119 

 

 

 -

 

 
1,920,119 

Corporate Notes/Bonds

 

 -

 

 
3,402,288 

 

 

 -

 

 
3,402,288 

Subtotal

 

 -

 

 
5,322,407 

 

 

 -

 

 
5,322,407 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
2,399,533 

 

 

 -

 

 
2,399,533 

Corporate Notes/Bonds

 

 -

 

 
7,078,251 

 

 

 -

 

 
7,078,251 

Subtotal

 

 -

 

 
9,477,784 

 

 

 -

 

 
9,477,784 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
6,618,007 

 

$
15,040,199 

 

$

 -

 

$
21,658,206 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

 


Summary Of Significant Accounting Policies (Components Of Accumulated Other Comprehensive Income) (Details)
v0.0.0.0
Summary Of Significant Accounting Policies (Components Of Accumulated Other Comprehensive Income) (Details) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive (loss) income, net of tax $ (323,695) $ (240,012)
Foreign Currency Translation [Member]
    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive (loss) income, net of tax (2,011,000) (2,038,000)
Unrealized (Loss)/Gain On Available-For-Sale Investments [Member]
    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive (loss) income, net of tax (21,000) 2,000
Pension Liability Adjustment [Member]
    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive (loss) income, net of tax $ (1,708,000) $ (1,796,000)

Cash Equivalents And Investments (Narrative) (Details)
v0.0.0.0
Cash Equivalents And Investments (Narrative) (Details) (USD $)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Cash Equivalents And Investments [Abstract]    
Gross realized gains (losses) $ 0 $ 0

Cash Equivalents And Investments (Schedule Of Available-For-Sale Securities) (Details)
v0.0.0.0
Cash Equivalents And Investments (Schedule Of Available-For-Sale Securities) (Details) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost $ 21,663,093 $ 15,637,158
Gross Unrealized Gains 20,768 23,517
Gross Unrealized Losses (25,655) (5,514)
Fair Value 21,658,206 15,655,161
Cash Equivalents 6,858,015 5,991,869
Short-Term Investments 5,322,407 5,742,314
Long-Term Investments 9,477,784 3,920,978
Cash And Cash Equivalents [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 6,618,007 5,751,965
Fair Value 6,618,007 5,751,965
Cash Equivalents 6,618,007 5,751,965
Cash And Cash Equivalents [Member] | Money Market Funds [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 6,618,007 5,751,965
Fair Value 6,618,007 5,751,965
Cash Equivalents 6,618,007 5,751,965
Investments [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 15,045,086 9,885,193
Gross Unrealized Gains 20,768 23,517
Gross Unrealized Losses (25,655) (5,514)
Fair Value 15,040,199 9,903,196
Cash Equivalents 240,008 239,904
Short-Term Investments 5,322,407 5,742,314
Long-Term Investments 9,477,784 3,920,978
Investments [Member] | Certificates Of Deposit [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 4,564,372 4,024,031
Gross Unrealized Gains 1,248 687
Gross Unrealized Losses (5,960) (4,992)
Fair Value 4,559,660 4,019,726
Cash Equivalents 240,008 239,904
Short-Term Investments 1,920,119 2,582,502
Long-Term Investments 2,399,533 1,197,320
Investments [Member] | Corporate Notes And Bonds [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 10,480,714 5,861,162
Gross Unrealized Gains 19,520 22,830
Gross Unrealized Losses (19,695) (522)
Fair Value 10,480,539 5,883,470
Short-Term Investments 3,402,288 3,159,812
Long-Term Investments $ 7,078,251 $ 2,723,658

Cash Equivalents And Investments (Schedule Of Estimated Fair Value Of Available-For-Sale Securities) (Details)
v0.0.0.0
Cash Equivalents And Investments (Schedule Of Estimated Fair Value Of Available-For-Sale Securities) (Details) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]    
Fair Value $ 21,658,206 $ 15,655,161
Investments [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Due within one year, Amortized Cost 5,555,124  
Due after one year through five years, Amortized Cost 9,489,962  
Amortized Cost 15,045,086  
Due within one year, Fair Value 5,562,415  
Due after one year through five years, Fair Value 9,477,784  
Fair Value $ 15,040,199 $ 9,903,196

Stock-Based Compensation (Narrative) (Details)
v0.0.0.0
Stock-Based Compensation (Narrative) (Details) (USD $)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Aggregate intrinsic value of options outstanding $ 480,000  
Intrinsic value of all options exercised 0  
Net cash proceeds from exercise of stock options 0 0
Unrecognized compensation expense 1,010,000  
Recognition period for unrecognized compensation expense 3 years 2 months 12 days  
Excess tax benefits from exercise of stock options (9,000) 0
Share based compensation expense before income taxes 48,000 177,000
Share based compensation expense after income taxes $ 31,000 $ 115,000
Employee Stock Purchase Plan [Member]
    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Percentage of price of common stock at which employees are able to acquire 90.00%  
Shares available 32,434  
2011 Executive Incentive Compensation Plan [Member]
    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares available 456,212  
Number of awards authorized 1,000,000  
Award vesting percentage 25.00%  
Stock Option Plan For Directors [Member]
    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of options granted 0 0
Award expiration period 10 years  
1992 Stock Plan [Member]
    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares available 60,598  
Number of options granted 0  
Deferred stock awards granted 0  
Key Employees [Member] | 2011 Executive Incentive Compensation Plan [Member]
    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Deferred stock awards granted 43,330  
Key Executive Employees [Member] | 2011 Executive Incentive Compensation Plan [Member]
    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of options granted 134,271  
Award expiration period 7 years  
Deferred Stock [Member]
    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Awards granted 47,330  

Stock-Based Compensation (Schedule Of Changes In Number Of Outstanding Stock Options Under Director Plan And Stock Plan) (Details)
v0.0.0.0
Stock-Based Compensation (Schedule Of Changes In Number Of Outstanding Stock Options Under Director Plan And Stock Plan) (Details) (USD $)
 3 Months Ended 12 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Stock-Based Compensation [Abstract]    
Options, Outstanding 309,439  
Options, Awarded 134,271  
Options, Forfeited (20,293)  
Options, Outstanding 423,417 309,439
Options, Exercisable at March 31, 2014 235,135  
Options, Expected to vest March 31, 2014 423,417  
Weighted average exercise price per share, Outstanding $ 11.66  
Weighted average exercise price per share, Awarded $ 12.97  
Weighted average exercise price per share, Forfeited $ 13.78  
Weighted average exercise price per share, Outstanding $ 11.97 $ 11.66
Weighted average exercise price per share, Exercisable at March 31, 2014 $ 11.57  
Weighted average exercise price per share, Expected to vest March 31, 2014 $ 11.97  
Options, Outstanding - Weighted average remaining contractual term 4 years 10 months 2 days 4 years 1 month 17 days
Options, Exercisable at March 31, 2014 - Weighted average remaining contractual term 3 years 5 months 12 days  
Options, Expected to vest March 31, 2014 - Weighted average remaining contractual term 4 years 10 months 2 days  

Stock-Based Compensation (Schedule Of Changes In The Number Of Deferred Stock Shares Under The Stock Plan And Incentive Plan) (Details)
v0.0.0.0
Stock-Based Compensation (Schedule Of Changes In The Number Of Deferred Stock Shares Under The Stock Plan And Incentive Plan) (Details) (Deferred Stock [Member], USD $)
 3 Months Ended
Mar. 31, 2014
Deferred Stock [Member]
  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares, Outstanding 200,140
Shares, Granted 47,330
Shares, Vested (11,254)
Shares, Forfeited (7,136)
Shares, Outstanding 229,080
Weighted Average Grant Date Fair Value, Outstanding $ 11.47
Weighted Average Grant Date Fair Value, Granted $ 12.53
Weighted Average Grant Date Fair Value, Vested $ 15.15
Weighted Average Grant Date Fair Value, Forfeited $ 10.99
Weighted Average Grant Date Fair Value, Outstanding $ 11.53

Stock-Based Compensation (Schedule Of Changes In Restricted Stock Units Outstanding) (Details)
v0.0.0.0
Stock-Based Compensation (Schedule Of Changes In Restricted Stock Units Outstanding) (Details) (Restricted Stock Units (RSUs) [Member], USD $)
Mar. 31, 2014
Dec. 31, 2013
Restricted Stock Units (RSUs) [Member]
    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares, Outstanding 53,193 53,193
Shares, Outstanding 53,193 53,193
Weighted Average Grant Date Fair Value, Outstanding $ 10.44 $ 10.44
Weighted Average Grant Date Fair Value, Outstanding $ 10.44 $ 10.44

Inventories (Schedule Of Inventories) (Details)
v0.0.0.0
Inventories (Schedule Of Inventories) (Details) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Inventories [Abstract]    
Finished goods $ 19,342,657 $ 18,733,636
Raw and processed materials 10,512,315 10,378,020
Total $ 29,854,972 $ 29,111,656

Intangible Assets (Narrative) (Details)
v0.0.0.0
Intangible Assets (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Intangible Assets [Abstract]    
Amortization expense $ 27 $ 25

Intangible Assets (Schedule Of Finite-Lived Intangible Assets) (Details)
v0.0.0.0
Intangible Assets (Schedule Of Finite-Lived Intangible Assets) (Details) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 801,488 $ 801,488
Accumulated Amortization (288,634) (157,429)
Foreign Currency Translation 13,715 (95,716)
Net 526,569 548,343
Trademarks [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 81,785 81,785
Accumulated Amortization (31,649) (17,262)
Foreign Currency Translation 1,399 (10,545)
Net 51,535 53,978
Customer Relationships [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 490,707 490,707
Accumulated Amortization (132,923) (72,500)
Foreign Currency Translation 8,397 (43,105)
Net 366,181 375,102
Technology [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 228,996 228,996
Accumulated Amortization (124,062) (67,667)
Foreign Currency Translation 3,919 (42,066)
Net $ 108,853 $ 119,263

Warranty (Schedule Of Warranty) (Details)
v0.0.0.0
Warranty (Schedule Of Warranty) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Warranty [Abstract]    
Beginning Balance $ 564 $ 590
Amounts charged to expense 12 90
Actual warranty costs paid (50) (123)
Ending balance $ 526 $ 557
Product warranty period 5 years  

Income Taxes (Narrative) (Details)
v0.0.0.0
Income Taxes (Narrative) (Details) (USD $)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Income Taxes [Abstract]    
Dividend payable $ 1,454,417 $ 1,363,795
Uncertain tax benefit positions that would reduce the effective income tax rate if recognized $ 327,000  
Effective income tax rate 46.90% 36.50%
Federal tax rate 35.00%  
Increase in income tax rate due to the effect of foreign operations 9.90%  

Segment Information (Narrative) (Details)
v0.0.0.0
Segment Information (Narrative) (Details)
 3 Months Ended
Mar. 31, 2014
segment
Segment Information [Abstract]  
Number of segments 3

Segment Information (Schedule Of Segment Information) (Details)
v0.0.0.0
Segment Information (Schedule Of Segment Information) (Details) (USD $)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Dec. 31, 2013
Segment Reporting Information [Line Items]      
Sales $ 25,198,406 $ 27,452,731  
Cost of sales 16,210,390 17,676,804  
Gross profit 8,988,016 9,775,927  
Selling, general and administrative expenses 9,002,112 9,405,150  
Restructuring expense 237,838    
Operating income (loss) (251,934) 370,777  
Depreciation and amortization 560,622 485,793  
Capital expenditures 823,633 479,129  
Assets 101,073,202 111,069,600 103,532,741
Suttle [Member]
      
Segment Reporting Information [Line Items]      
Sales 12,882,331 12,412,188  
Cost of sales 9,392,136 9,096,683  
Gross profit 3,490,195 3,315,505  
Selling, general and administrative expenses 3,137,649 2,628,244  
Operating income (loss) 352,546 687,261  
Depreciation and amortization 293,171 243,353  
Capital expenditures 626,911 164,402  
Assets 32,608,313 26,834,977  
Transition Networks [Member]
      
Segment Reporting Information [Line Items]      
Sales 9,749,381 10,813,121  
Cost of sales 5,042,970 5,092,291  
Gross profit 4,706,411 5,720,830  
Selling, general and administrative expenses 5,179,759 6,044,659  
Restructuring expense 237,838    
Operating income (loss) (711,186) (323,829)  
Depreciation and amortization 230,714 210,954  
Capital expenditures 107,413 131,354  
Assets 27,092,762 31,484,025  
JDL Technologies [Member]
      
Segment Reporting Information [Line Items]      
Sales 2,566,694 4,227,422  
Cost of sales 1,775,284 3,487,830  
Gross profit 791,410 739,592  
Selling, general and administrative expenses 684,704 732,247  
Operating income (loss) 106,706 7,345  
Depreciation and amortization 36,737 31,486  
Capital expenditures 9,756 15,361  
Assets 6,346,670 14,551,382  
Other [Member]
      
Segment Reporting Information [Line Items]      
Capital expenditures 79,553 168,012  
Assets $ 35,025,457 $ 38,199,216  

Pensions (Summary Of Components Of Net Periodic Benefit Cost) (Details)
v0.0.0.0
Pensions (Summary Of Components Of Net Periodic Benefit Cost) (Details) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Pensions [Abstract]    
Service cost $ 1 $ 65
Interest cost 39 57
Expected return on plan assets (49) (62)
Net periodic pension (benefit) cost $ (9) $ 60

Net Income Per Share (Details)
v0.0.0.0
Net Income Per Share (Details)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Dilutive effect of outstanding stock options and shares associated with long-term incentive compensation plans 0 9,785
Options [Member]
    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Shares not included in the computation of diluted earnings per share 0 116,290
Deferred Stock [Member]
    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Shares not included in the computation of diluted earnings per share 0 323,236

Fair Value Measurements (Narrative) (Details)
v0.0.0.0
Fair Value Measurements (Narrative) (Details) (USD $)
 3 Months Ended
Mar. 31, 2013
Mar. 31, 2014
Payments [Member]
Mar. 31, 2014
Foreign Currency Gain (Loss) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Change in fair value of acquisition-related contingent consideration $ (27,231) $ 565,647 $ 6,846

Fair Value Measurements (Schedule Of Financial Assets And Liabilities Measured At Fair Value) (Details)
v0.0.0.0
Fair Value Measurements (Schedule Of Financial Assets And Liabilities Measured At Fair Value) (Details) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 6,858,015 $ 5,991,869
Current Liabilities, fair value   (558,801)
Assets (Liabilities) Net, fair value 21,658,206 15,096,360
Level 1 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 6,618,007 5,751,965
Assets (Liabilities) Net, fair value 6,618,007 5,751,965
Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 240,008 239,904
Assets (Liabilities) Net, fair value 15,040,199 9,903,196
Level 3 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current Liabilities, fair value   (558,801)
Assets (Liabilities) Net, fair value   (558,801)
Money Market Funds [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 6,618,007 5,751,965
Money Market Funds [Member] | Level 1 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 6,618,007 5,751,965
Certificates Of Deposit [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 240,008 239,904
Certificates Of Deposit [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 240,008 239,904
Accrued Consideration [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current Liabilities, fair value   (558,801)
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)
Short-Term Investments [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 5,322,407 5,742,314
Short-Term Investments [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 5,322,407 5,742,314
Short-Term Investments [Member] | Certificates Of Deposit [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 1,920,119 2,582,502
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 1,920,119 2,582,502
Short-Term Investments [Member] | Corporate Notes And Bonds [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 3,402,288 3,159,812
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 3,402,288 3,159,812
Long Term Investments [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 9,477,784 3,920,978
Long Term Investments [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 9,477,784 3,920,978
Long Term Investments [Member] | Certificates Of Deposit [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 2,399,533 1,197,320
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 2,399,533 1,197,320
Long Term Investments [Member] | Corporate Notes And Bonds [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 7,078,251 2,723,658
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 $ 7,078,251 $ 2,723,658

Restructuring Charges (Details)
v0.0.0.0
Restructuring Charges (Details) (USD $)
 3 Months Ended
Mar. 31, 2014
Restructuring Charges [Abstract]  
Restructuring expense $ 237,838
Restructuring payments 421,000
Restructuring accrual recorded in accrued compensation and benefits $ 303,000