Document And Entity Information
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Document And Entity Information (USD $)
 12 Months Ended
Dec. 31, 2014
Mar. 01, 2015
Jun. 30, 2014
Document And Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2014    
Document Fiscal Period Focus FY    
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   8,658,784  
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Well-known Seasoned Issuer No    
Entity Public Float     $ 84,159,000

Consolidated Balance Sheets
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Consolidated Balance Sheets (USD $)
Dec. 31, 2014
Dec. 31, 2013
CURRENT ASSETS:    
Cash and cash equivalents $ 13,736,857 $ 20,059,120
Investments 4,602,717 5,742,314
Trade accounts receivable, less allowance for doubtful accounts of $22,000 and $69,000, respectively 13,839,662 22,902,323
Inventories 31,109,653 29,111,656
Prepaid income taxes 2,317,688 1,381,502
Other current assets 1,050,000 716,784
Deferred income taxes 3,249,164 3,758,750
TOTAL CURRENT ASSETS 69,905,741 83,672,449
PROPERTY, PLANT AND EQUIPMENT, net 18,153,152 14,941,492
OTHER ASSETS:    
Investments 11,540,261 3,920,978
Funded pension assets 172,405 305,028
Other assets 514,676 692,794
TOTAL OTHER ASSETS 12,227,342 4,918,800
TOTAL ASSETS 100,286,235 103,532,741
CURRENT LIABILITIES:    
Current portion of long-term debt 524,220 489,706
Accounts payable 5,180,631 4,894,869
Accrued compensation and benefits 3,696,930 3,927,728
Accrued consideration   558,801
Other accrued liabilities 2,146,582 1,765,428
Dividends payable 1,446,498 1,436,318
TOTAL CURRENT LIABILITIES 12,994,861 13,072,850
LONG TERM LIABILITIES:    
Uncertain tax positions 77,279 400,846
Deferred income taxes 1,089,994 809,179
Long term debt - mortgage payable 103,603 627,823
TOTAL LONG-TERM LIABILITIES 1,270,876 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; 8,654,756 and 8,553,320 shares issued and outstanding, respectively 432,738 427,666
Additional paid-in capital 38,593,230 37,110,671
Retained earnings 47,689,688 51,323,718
Accumulated other comprehensive loss (695,158) (240,012)
TOTAL STOCKHOLDERS' EQUITY 86,020,498 88,622,043
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 100,286,235 $ 103,532,741

Consolidated Balance Sheets (Parenthetical)
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Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2014
Dec. 31, 2013
Consolidated Balance Sheets [Abstract]    
Trade accounts receivable, allowance for doubtful accounts $ 22,000 $ 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 8,654,756 8,553,320
Common stock, shares outstanding 8,654,756 8,553,320

Consolidated Statements Of Income (Loss) And Comprehensive Income (Loss)
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Consolidated Statements Of Income (Loss) And Comprehensive Income (Loss) (USD $)
 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Consolidated Statements Of Income (Loss) And Comprehensive Income (Loss) [Abstract]      
Sales $ 119,071,439 $ 131,319,510 $ 104,249,654
Costs and expenses:      
Cost of sales 76,912,881 86,420,982 62,752,763
Selling, general and administrative expenses 38,627,801 36,742,869 38,100,773
Impairment loss   5,849,853  
Restructuring expense 237,838 1,149,439  
Total costs and expenses 115,778,520 130,163,143 100,853,536
Operating income 3,292,919 1,156,367 3,396,118
Other income and (expenses):      
Investment and other income 80,392 125,985 75,187
(Loss)/gain on sale of assets (112,242) (73,126) 62,630
Interest and other expense (79,841) (106,101) (136,255)
Other (expense) income, net (111,691) (53,242) 1,562
Income from operations before income taxes 3,181,228 1,103,125 3,397,680
Income tax expense 1,219,355 2,061,013 1,159,566
Net income (loss) 1,961,873 (957,888) 2,238,114
Other comprehensive (loss) income, net of tax:      
Additional minimum pension liability adjustments 155,000 37,000 1,311,000
Unrealized (losses)/gains on available-for-sale securities (42,666) (21,964) 26,223
Foreign currency translation adjustment (567,480) 333,000 (2,032,877)
Total other comprehensive (loss) income (455,146) 348,036 (695,654)
Comprehensive income (loss) $ 1,506,727 $ (609,852) $ 1,542,460
Basic net income (loss) per share: $ 0.23 $ (0.11) $ 0.26
Diluted net income (loss) per share: $ 0.23 $ (0.11) $ 0.26
Weighted Average Basic Shares Outstanding 8,622,032 8,531,073 8,508,497
Weighted Average Dilutive Shares Outstanding 8,640,416 8,531,073 8,518,613

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 Income (Loss) [Member]
Total
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       44,598
Issuance of common stock under Employee Stock Option Plan 600 84,983     85,583
Issuance of common stock under 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 employee 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 ($0.64 per share)     (5,496,336)   (5,496,336)
Other comprehensive 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       32,520
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 employee stock options   16,284     16,284
Share-based compensation   (80,886)     (80,886)
Shareholder dividends ($0.64 per share)     (5,473,572)   (5,473,572)
Other comprehensive 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        
Net income (loss)     1,961,873   1,961,873
Issuance of common stock under Employee Stock Purchase Plan 705 166,637     167,342
Issuance of common stock under Employee Stock Purchase Plan, Shares 14,104        
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 Non-Employee Stock Option Plan 600 98,760     99,360
Issuance of common stock under Non-Employee Stock Option Plan, Shares 12,000        
Issuance of common stock under Executive Stock Plan 2,239 0     2,239
Issuance of common stock under Executive Stock Plan, Shares 44,769        
Tax benefit from non-qualified employee stock options   80,402     80,402
Share-based compensation   784,785     784,785
Other share retirements, Shares (1,957)        
Other share retirements (98) (8,672) (14,052)   (22,822)
Shareholder dividends ($0.64 per share)     (5,581,851)   (5,581,851)
Other comprehensive loss       (455,146) (455,146)
BALANCE at Dec. 31, 2014 $ 432,738 $ 38,593,230 $ 47,689,688 $ (695,158) $ 86,020,498
BALANCE, Shares at Dec. 31, 2014 8,654,756        

Consolidated Statements Of Cash Flows
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Consolidated Statements Of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income (loss) $ 1,961,873 $ (957,888) $ 2,238,114
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 2,482,300 2,184,830 2,133,511
Share based compensation 784,785 (80,886) 302,964
Deferred taxes 790,402 (317,727) (631,626)
Impairment loss   5,849,853  
Change in fair value of acquisition-related contingent consideration   (43,898) 85,501
Loss/(gain) on sale of assets 112,242 73,126 (62,630)
Excess tax benefit from share-based payments (80,402) (16,284) (67,835)
Changes in assets and liabilities:      
Trade receivables 9,057,078 (8,207,253) (189,775)
Inventories (2,039,599) 4,647,916 (7,705,772)
Prepaid income taxes (936,186) 732,618 1,776,601
Other assets (282,456) 89,533 252,378
Accounts payable 105,602 (4,342,626) 4,819,481
Accrued compensation and benefits 139,698 994,012 (2,250,647)
Other accrued liabilities 405,424 71,293 (680,171)
Income taxes payable (243,165) 96,704 (15,168)
Other (85,519)   195,244
Net cash provided by operating activities 12,172,077 773,323 200,170
CASH FLOWS FROM INVESTING ACTIVITIES:      
Capital expenditures (5,577,039) (2,699,347) (2,607,958)
Purchases of investments (12,682,351) (4,401,321) (15,010,778)
Proceeds from the sale of fixed assets 51,073 82,078 198,109
Proceeds from the sale of investments 6,160,000 12,794,000 20,456,039
Net cash (used in) provided by investing activities (12,048,317) 5,775,410 3,035,412
CASH FLOWS FROM FINANCING ACTIVITIES:      
Cash dividends paid (5,571,672) (4,099,087) (6,734,466)
Mortgage principal payments (489,706) (457,464) (427,345)
Proceeds from issuance of common stock net of shares withheld 246,119 310,857 297,664
Excess tax benefit from stock-based payments 80,402 16,284 67,835
Payment of contingent consideration related to acquisition (565,647) (161,060) (370,096)
Purchase of common stock     (757,951)
Net cash used in financing activities (6,300,504) (4,390,470) (7,924,359)
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH (145,519) 31,145 42,779
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (6,322,263) 2,189,408 (4,645,998)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 20,059,120 17,869,712 22,515,710
CASH AND CASH EQUIVALENTS AT END OF YEAR 13,736,857 20,059,120 17,869,712
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:      
Income taxes paid 1,591,257 1,556,590 87,343
Interest paid 73,860 106,101 138,477
Dividends declared not paid 1,446,498 1,436,318  
Capital expenditures in accounts payable $ 188,564    

Summary Of Significant Accounting Policies
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Summary Of Significant Accounting Policies
 12 Months Ended
Dec. 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,” “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, and the United Kingdom. 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. 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 three business units as fully allocated costs. 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, 2014, the Company had $13,737,000 in cash and cash equivalents. Of this amount, $1,073,000 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, 2014. 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 other comprehensive loss 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 $2,375,000, $2,030,000 and $2,058,000 for 2014,  2013 and 2012, 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.

 

Intangible Assets: Intangible assets with indefinite useful lives are not amortized, but are tested at least annually for impairment.

 

Recoverability of long-lived assets: The Company reviews its long-lived assets periodically when impairment indicators exist as required under generally accepted accounting principles. Potential impairment is determined 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, 2014 and 2013, 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

 

 

 

2014

 

 

2013

Beginning balance

 

$
564,000 

 

$
590,000 

Amounts charged to expense

 

 
(14,000)

 

 
237,000 

Actual warranty costs paid

 

 
(116,000)

 

 
(263,000)

Ending balance

 

$
434,000 

 

$
564,000 

 

Accumulated other comprehensive loss: The components of accumulated other comprehensive loss are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

 

 

2014

 

 

2013

Minimum pension liability

 

$
1,951,000 

 

$
1,796,000 

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

 

 
(41,000)

 

 
2,000 

Foreign currency translation

 

 
(2,605,000)

 

 
(2,038,000)

 

 

$
(695,000)

 

$
(240,000)

 

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 $7,835,000 in 2014, $2,760,000 in 2013 and $2,304,000 in 2012.  

 

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 18,384 shares, 0 shares and 10,116 shares in 2014,  2013 and 2012, respectively.  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 2014,  2013, and 2012 was 243,427,  0 and 80,290, respectively. Due to the net loss in 2013, there was no dilutive impact from outstanding stock options or unvested shares.

 

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.   

 

Accounting standards issued: 

In May 2014, the Financial Accounting Standards Board (FASB) issued a new accounting standard update on revenue recognition from contracts with customers. The new guidance will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. According to the new guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. This guidance will be effective for the Company beginning January 1, 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. The Company has not yet selected a transition method and is evaluating the impact of adopting this new accounting standard update on the financial statements and related disclosures.

 

In January 2015, the FASB issued guidance that eliminates from GAAP the concept of an extraordinary item. As a result, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; and (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The new guidance will be effective for us in our first quarter of 2016 and early adoption is permitted. We do not expect the adoption of this standard to have a material effect on our reporting and disclosure.

 

Accounting standards adopted:

There have been no new accounting pronouncements or changes in accounting pronouncements adopted during the period that are of significance or potential significance to the Company.


Cash Equivalents And Investments
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Cash Equivalents And Investments
 12 Months Ended
Dec. 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 equivalents or short and long term investments as of December 31, 2014 and December 31, 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 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

$
1,073,000 

 

$

 -

 

$

 -

 

$
1,073,000 

 

$
1,073,000 

 

$

 

 

$

 

Subtotal

 
1,073,000 

 

 

 -

 

 

 -

 

 
1,073,000 

 

 
1,073,000 

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 
7,414,000 

 

 
1,000 

 

 
(32,000)

 

 
7,383,000 

 

 

 -

 

 
1,920,000 

 

 
5,463,000 

Corporate Notes/Bonds

 
8,777,000 

 

 
6,000 

 

 
(23,000)

 

 
8,760,000 

 

 

 -

 

 
2,683,000 

 

 
6,077,000 

Subtotal

 
16,191,000 

 

 
7,000 

 

 
(55,000)

 

 
16,143,000 

 

 

 -

 

 
4,603,000 

 

 
11,540,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
17,264,000 

 

$
7,000 

 

$
(55,000)

 

$
17,216,000 

 

$
1,073,000 

 

$
4,603,000 

 

$
11,540,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$
5,752,000 

 

$

 -

 

$

 -

 

$
5,752,000 

 

$
5,752,000 

 

$

 

 

$

 

Subtotal

 
5,752,000 

 

 

 -

 

 

 -

 

 
5,752,000 

 

 
5,752,000 

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 
4,024,000 

 

 
1,000 

 

 
(5,000)

 

 
4,020,000 

 

 
240,000 

 

 
2,583,000 

 

 
1,197,000 

Corporate Notes/Bonds

 
5,861,000 

 

 
23,000 

 

 
(1,000)

 

 
5,883,000 

 

 

 -

 

 
3,159,000 

 

 
2,724,000 

Subtotal

 
9,885,000 

 

 
24,000 

 

 
(6,000)

 

 
9,903,000 

 

 
240,000 

 

 
5,742,000 

 

 
3,921,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
15,637,000 

 

$
24,000 

 

$
(6,000)

 

$
15,655,000 

 

$
5,992,000 

 

$
5,742,000 

 

$
3,921,000 

 

 

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, 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 December 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 December 31, 2014:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

Estimated Market Value

 

 

 

 

 

Due within one year

 

$  
4,598,000 

 

$
4,603,000 

Due after one year through five years

 

 
11,593,000 

 

 
11,540,000 

 

 

$ 

16,191,000 

 

$
16,143,000 

 

The Company did not recognize any gross realized gains and gross realized losses were immaterial during the years ending December 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 statements of income.


Inventories
v0.0.0.0
Inventories
 12 Months Ended
Dec. 31, 2014
Inventories [Abstract]  
Inventories

NOTE 3 - INVENTORIES

 

Inventories consist of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

 

2014

 

2013

Finished goods

 

$         

19,208,000 

 

$
18,734,000 

Raw and processed materials

 

 
11,902,000 

 

 
10,378,000 

 

 

$
31,110,000 

 

$
29,112,000 

 


Property, Plant And Equipment
v0.0.0.0
Property, Plant And Equipment
 12 Months Ended
Dec. 31, 2014
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

 

2014

 

2013

Land

 

 

 

 

 

$
3,107,000 

 

$
3,116,000 

Buildings and improvements

7-40 years

 

 
8,523,000 

 

 
8,528,000 

Machinery and equipment

3-15 years

 

 
28,728,000 

 

 
25,408,000 

Furniture and fixtures

5-10 years

 

 
3,490,000 

 

 
4,042,000 

Construction in progress

 

 

 

 

 

 
1,925,000 

 

 
617,000 

 

 

 

 

 

 

 
45,773,000 

 

 
41,711,000 

Less accumulated depreciation

 

 

 

 

 

 
(27,620,000)

 

 
(26,770,000)

 

 

 

 

 

 

$
18,153,000 

 

$
14,941,000 

 


Intangible Assets
v0.0.0.0
Intangible Assets
 12 Months Ended
Dec. 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 are included within other assets in the consolidated balance sheets and were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

Gross Carrying Amount

Accumulated Amortization

Foreign Currency Translation

Net

 

 

 

 

 

 

Trademarks

 
91,000 
(38,000)
(4,000)
49,000 

Customer relationships

 
491,000 
(159,000)
(26,000)
306,000 

Technology

 
229,000 
(149,000)
(11,000)
69,000 

 

 
811,000 
(346,000)
(41,000)
424,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

Gross Carrying Amount

Accumulated Amortization

Foreign Currency Translation

Net

 

 

 

 

 

 

Trademarks

 
82,000 
(17,000)
(11,000)
54,000 

Customer relationships

 
491,000 
(73,000)
(43,000)
375,000 

Technology

 
229,000 
(68,000)
(42,000)
119,000 

 

 
802,000 
(158,000)
(96,000)
548,000 

 

 

 

 

 

 

 

Amortization expense on these identifiable intangible assets was $107,000, $102,000, and $103,000 in 2014, 2013 and 2012 respectively. The amortization expense is included in selling, general and administrative expenses. The estimated future amortization expense for identifiable intangible assets during the next five fiscal years is as follows:

 

 

 

 

 

 

 

 

 

 

Year Ending December 31:

 

 

 

2015

 

$  
101,000 

2016

 

 
83,000 

2017

 

 
58,000 

2018

 

 
53,000 

2019

 

 
47,000 

 


Employee Retirement Benefits
v0.0.0.0
Employee Retirement Benefits
 12 Months Ended
Dec. 31, 2014
Employee Retirement Benefits [Abstract]  
Employee Retirement Benefits

NOTE 6 - 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 2014,  2013 and 2012 were $528,000, $457,000, and $471,000, respectively.

 

The Company’s U.K.-based subsidiary Austin Taylor maintains defined benefit pension plans that cover 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, 2014 and 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

2013

Change in benefit obligation:

 

 

 

 

 

 

Benefit obligation at the beginning of the year

 

$         

3,340,000 

 

$
5,675,000 

Service cost

 

 
8,000 

 

 
5,000 

Interest cost

 

 
143,000 

 

 
186,000 

Augmentations

 

 

 -

 

 
211,000 

Actuarial losses/(gains)

 

 
363,000 

 

 
(198,000)

Benefits paid

 

 
(78,000)

 

 
(293,000)

Changes due to plan settlement

 

 

 -

 

 
(2,363,000)

Foreign currency (losses)/gains

 

 
(192,000)

 

 
117,000 

Benefit obligation at the end of the year

 

 
3,584,000 

 

 
3,340,000 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

 
3,645,000 

 

 
5,547,000 

Actual return on plan assets

 

 
340,000 

 

 
343,000 

Employer contributions

 

 
59,000 

 

 
297,000 

Benefits paid

 

 
(78,000)

 

 
(293,000)

Changes due to plan settlement

 

 

 -

 

 
(2,363,000)

Foreign currency (gains)/losses

 

 
(210,000)

 

 
114,000 

Fair value of plan assets at end of year

 

 
3,756,000 

 

 
3,645,000 

 

 

 

 

 

 

 

Funded status at end of year – net asset

 

$
172,000 

 

$
305,000 

 

 

Weighted average assumptions used to determine net periodic pension costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 
3.6% 

 

 
4.6% 

Expected return on assets

 

 
3.6% 

 

 
5.5% 

 

The plans are funded through equities and bonds recorded in the financial statements at fair value. The related amounts for each of these investments were $3,756,000 and $3,645,000 as of December 31, 2014 and 2013 and were determined to be level 2 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.

 

The Company does not expect any plan assets to be returned to the Company during the twelve months subsequent to December 31, 2014.

 

The Company expects to make contributions of $76,000 to the plan in 2015.    

 

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

 

 

 

 

 

 

 

2015

$
268,000 

2016

 
97,000 

2017

 
165,000 

2018

 
148,000 

2019

 
136,000 

2020 thru 2024

 
801,000 

 

Components of the Company’s net periodic pension (benefit) cost are:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

2013

 

 

2012

Service cost

 

$
8,000 

 

$
5,000 

 

$
275,000 

Interest cost

 

 
143,000 

 

 
186,000 

 

 
244,000 

Expected return on assets

 

 
(188,000)

 

 
(229,000)

 

 
(262,000)

Amortization of prior service cost

 

 

 -

 

 
211,000 

 

 

 -

Net periodic pension (benefit) cost

 

$
(37,000)

 

$
173,000 

 

$
257,000 

 


Commitments And Contingencies
v0.0.0.0
Commitments And Contingencies
 12 Months Ended
Dec. 31, 2014
Commitments And Contingencies [Abstract]  
Commitments And Contingencies

NOTE 7 – 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 $546,000, $409,000 and $443,000 in 2014,  2013 and 2012 respectively.   At December 31, 2014, the Company was obligated under noncancelable operating leases to make minimum annual future lease payments as follows:

 

 

 

 

 

 

 

 

 

Year Ending December 31:

 

 

 

2015

 

$  
290,000 

2016

 

 
86,000 

 

 

$ 

376,000 

 

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 $628,000 at December 31, 2014. The mortgage is secured by the building.

 

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

 

 

 

 

 
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, 2014 and 2013 and the entire credit line is available for use.  Interest on borrowings on the credit line is at LIBOR plus 1.1% (1.4% at December 31, 2014). The credit agreement expires October 31, 2016 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, 2014.

As of December 31, 2014, 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 recognized (income)/expense of $0, $ (124,000) and $ (16,000) in 2014,  2013 and 2012, respectively.  Accrual balances for long-term compensation plans at December 31, 2014 and 2013 were $0 and $199,000, respectively. Awards paid were $199,000 in 2014, $27,000 in 2013 and $1,657,000 in 2012.  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.  Starting in 2014, all long term compensation is awarded in stock. The stock portion of these awards are treated as equity plans and included within the Stock Compensation footnote within the Deferred Stock Outstanding section 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, 2014
Stock Compensation [Abstract]  
Stock Compensation

NOTE 8 – 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 2014, stock options covering 317,722 shares were awarded to key executive employees and non-employee directors, 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 43,824 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 December  31,  2014,  321,928 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. No  stock options were granted to non-employee directors in 2014,  2013 and 2012.

 

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,  2014 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 22,008 shares reserved for issuance under the Stock Plan. The Company did not award stock options or deferred stock under this plan in 2014.

 

Stock Options Outstanding

 

The following table summarizes changes in the number of outstanding stock options under the Director Plan and Stock Plan during the three years ended December 31, 2014. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average

 

Weighted average

 

 

 

exercise price

 

remaining

 

Options

 

per share

 

contractual term

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

Awarded
317,722 

 

 

 
12.30 

 

 

Exercised
(12,000)

 

 

 
8.28 

 

 

Forfeited
(74,757)

 

 

 
13.20 

 

 

Outstanding – December 31, 2014
540,404 

 

 

 
11.90 

 

5.13 years

 

 

 

 

 

 

 

 

Excercisable at December 31, 2014
182,638 

 

$

 
11.40 

 

3.17 years

Expected to vest December 31, 2014
540,404 

 

 

 
11.90 

 

5.13 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

 

2014

 

2013

 

2012

Expected volatility
31.4% 

 
31.8% 

 
31.2% 

Risk free interest rate
2.7% 

 
2.1% 

 
2.3% 

Expected holding period

6 years

 

6 years

 

6 years

Dividend yield
5.2% 

 
6.3% 

 
4.6% 

 

Total unrecognized compensation expense was $423,000 as of December 31, 2014, which is expected to be recognized over the next 2.6 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 $56,000 based on the Company’s stock price at December 31, 2014.  The intrinsic value of options exercised during the year was $40,000, $38,000 and $59,000 in 2014,  2013 and 2012, respectively.  Net cash proceeds from the exercise of all stock options were $99,000,  $110,000 and $86,000 for 2014, 2013 and 2012, respectively.  The following table summarizes the status of stock options outstanding at December 31, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

Weighted

 

 

 

 

Remaining

 

Average

Range of Exercise Prices

 

Shares

 

Option Life

 

Exercise Price

$8.65 to $9.99

 
30,000 

 

3.2 years

 

 
9.68 

$10.00 to $12.00

 
294,225 

 

5.3 years

 

 
11.24 

$12.01 to $14.50

 
216,179 

 

5.2 years

 

 
13.11 

 

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, $14,000 and $21,000 in 2014,  2013 and 2012 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, 2011 to December 31,  2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

 

 

 

 

Grant Date

 

 

 

Shares

 

Fair Value

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 

Granted

 

 
48,824 

 

 
12.52 

Vested

 

 
(16,754)

 

 
13.81 

Forfeited

 

 
(70,896)

 

 
13.02 

Outstanding – December 31, 2014

 

 
161,314 

 

 
10.87 

 

The grant date fair value is calculated based on the Company’s closing stock price as of the grant date. As of December 31, 2014, the total unrecognized compensation expense related to the deferred stock shares was $342,000 and is expected to be recognized over a weighted-average period of 2.1 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, 2012 to December 31,  2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

Granted

 

 
13,973 

 

 
11.98 

Vested

 

 
(28,015)

 

 
10.89 

Forfeited

 

 

 -

 

 

 -

Outstanding – December 31, 2014

 

 
39,151 

 

 
10.67 

 

The grant date fair value is calculated based on the Company’s closing stock price as of the grant date. As of December 31, 2014, the total unrecognized compensation expense related to the restricted stock units was $61,000 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 expense/(income) recognized for 2014,  2013 and 2012 was $785,000, $ (81,000) and $303,000 before income taxes and $510,000, $ (53,000) and $197,000 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,  2014.  The ESPP is considered compensatory under current rules.  At December 31,  2014, after giving effect to the shares issued as of that date, 21,483 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, 2014, the ESOP held 557,375 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 2014 ESOP contribution was $385,424 for which the Company will issue 36,707 shares in March 2015.  The 2013 ESOP contribution was $362,273 for which the Company issued 32,520 shares in 2014.  The Company’s 2012 ESOP contribution was $463,819 for which the Company issued 44,598 shares of common stock to the ESOP in 2013. 


Common Stock
v0.0.0.0
Common Stock
 12 Months Ended
Dec. 31, 2014
Common Stock [Abstract]  
Common Stock

NOTE 9 – 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, 2014,  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, 2014
Income Taxes [Abstract]  
Income Taxes

NOTE 10 - INCOME TAXES

 

Income tax expense from continuing operations consists of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

 

2014

 

2013

 

2012

Currently payable income taxes:

 

 

 

 

 

 

 

 

 

Federal

 

$
328,000 

 

$
2,114,000 

 

$
1,669,000 

State

 

 
(12,000)

 

 
297,000 

 

 
141,000 

Foreign

 

 
113,000 

 

 
(32,000)

 

 
(18,000)

 

 

 
429,000 

 

 
2,379,000 

 

$
1,792,000 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

$
761,000 

 

$
(303,000)

 

$
(542,000)

State

 

 
40,000 

 

 
18,000 

 

 
(33,000)

Foreign

 

 
(11,000)

 

 
(33,000)

 

 
(57,000)

 

 

 
790,000 

 

 
(318,000)

 

 
(632,000)

 

 

 

 

 

 

 

 

 

 

 

 

$
1,219,000 

 

$
2,061,000 

 

$
1,160,000 

 

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 $389,000,  $428,000 and $419,000 in 2014,  2013 and 2012 respectively.  At the end of 2014, Austin Taylor’s net operating loss carry-forward was $6,957,000.  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.

 

Transition Networks EMEA, Ltd. operates in the U.K. and is subject to U.K. rather than U.S. income taxes. Transition Networks EMEA, Ltd. had pretax losses of $54,000 and $2,754,000 in 2014 and 2013, respectively and pretax income of $316,000 in 2012.  Austin Taylor's net operating loss provided group relief to Transition Networks EMEA, Ltd. during 2012. At the end of 2014, Transition Networks EMEA, Ltd.’s net operating loss carry-forward was $37,000.

 

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 $345,000, $341,000,  $36,000 in 2014, 2013, and 2012 respectively.  At the end of 2014, Transition Networks China's net operating loss carry-forward was $460,000.  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 $321,000, $152,000 and $168,000 in 2014,  2013 and 2012 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

 

 

2014

 

2013

 

2012

Tax at U.S. statutory rate

 
35.0% 

 
35.0% 

 
35.0% 

Surtax exemption

 
(0.7)

 
(5.4)

 
(1.5)

State income taxes, net of federal benefit

 
1.0 

 
19.1 

 
1.7 

Foreign income taxes, net of

 

 

 

 

 

 

 foreign tax credits

 
7.8 

 
3.3 

 
(0.2)

Impairment of goodwill

 

 -

 
116.2 

 

 -

Other nondeductible items

 
3.1 

 
4.9 

 

 -

Effect of (decrease) increase in uncertain tax positions

 
(10.2)

 
7.3 

 

 -

Other

 
2.3 

 
6.4 

 
(0.9)

Effective tax rate

 
38.3% 

 
186.8% 

 
34.1% 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

2013

Deferred tax assets:

 

 

 

 

 

Allowance for doubtful accounts

$
4,000 

 

$
19,000 

Inventory

 
2,779,000 

 

 
3,295,000 

Accrued and prepaid expenses

 
594,000 

 

 
502,000 

Domestic net operating loss carry-forward

 

 -

 

 
26,000 

Long-term compensation plans

 
380,000 

 

 
373,000 

Nonemployee director stock compensation

 
403,000 

 

 
243,000 

Other stock compensation

 
118,000 

 

 
111,000 

State income taxes

 

 -

 

 
75,000 

Foreign net operating loss carry-forwards and credits

 
1,743,000 

 

 
1,639,000 

 

 

 

 

 

 

 

 

 

 

 

 

Gross deferred tax assets

 
6,021,000 

 

 
6,283,000 

Valuation allowance

 
(1,734,000)

 

 
(1,618,000)

 

 

 

 

 

 

Net deferred tax assets

 
4,287,000 

 

 
4,665,000 

 

 

 

 

 

 

Deferred tax liabilities

 

 

 

 

 

Depreciation

 
(2,110,000)

 

 
(1,668,000)

Intangible assets

 
(18,000)

 

 
(47,000)

 

 

 

 

 

 

Gross deferred tax liability

 
(2,128,000)

 

 
(1,715,000)

 

 

 

 

 

 

Total net deferred tax asset

$
2,159,000 

 

$
2,950,000 

 

 

 

 

 

 

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 uncertain tax positions are summarized as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

2013

 

2012

Unrcertain tax positions – January 1

$
240,000 

$
153,000 

$
234,000 

Gross increases - tax positions in prior period

 
0 

 
0 

 
0 

Gross decreases - tax positions in prior period

 
(73,000)

 
0 

 
0 

Gross increases - current period tax positions

 
0 

 
158,000 

 
0 

Settlements

 
(85,000)

 
(5,000)

 
0 

Expiration of statute of limitations

 
(7,000)

 
(66,000)

 
(81,000)

Uncertain tax positions – December 31, 2014

$
75,000 

$
240,000 

$
153,000 

 

Included in the balance of uncertain tax positions at December 31, 2014 are $76,000 of tax benefits that if recognized would affect the tax rate.  There are no expected significant changes in the Company’s uncertain tax positions in the next twelve months.  The Company’s income tax liability accounts included accruals for interest and penalties of $2,000 at December 31, 2014.  The Company’s 2014 income tax expense decreased by $159,000 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 2011 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, 2014
Information Concerning Industry Segments And Major Customers [Abstract]  
Information Concerning Industry Segments And Major Customers

NOTE 11- INFORMATION CONCERNING INDUSTRY SEGMENTS AND MAJOR CUSTOMERS

 

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 three business units 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 media converters, NIDs, 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 products and services. There are no material intersegment revenues. In order to conform to the 2014 presentation, the Company has reclassified the previously non-allocated corporate expenses within the business segments.

 

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 $2,810,000 and $1,225,000 at December 31, 2014 and 2013, 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 86%,  87% and 83% of sales from continuing operations in 2014,  2013 and 2012 respectively.  In 2014, sales to one of Suttle’s customers accounted for 33.6% of consolidated sales. 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. 

 

Information concerning the Company’s operations in the various segments for the twelve-month periods ended December 31, 2014,  2013 and 2012 is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transition

 

JDL

 

 

 

 

 

 

Suttle

 

Networks

 

Technologies

 

Other

 

Total

2014

 

 

 

 

 

 

 

 

 

 

Sales

$
67,330,307 

$
43,173,864 

$
8,567,268 

$

 -

$
119,071,439 

Cost of sales

 
46,338,627 

 
23,975,363 

 
6,598,891 

 

 -

 
76,912,881 

Gross profit

 
20,991,680 

 
19,198,501 

 
1,968,377 

 

 -

 
42,158,558 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 administrative expenses

 
14,388,765 

 
21,392,643 

 
2,846,393 

 

 -

 
38,627,801 

Restructuring expense

 

 -

 
237,838 

 

 -

 

 -

 
237,838 

Operating income (loss)

$
6,602,915 

$
(2,431,980)

$
(878,016)

$

 -

$
3,292,919 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
1,386,523 

$
944,149 

$
151,628 

$

 -

$
2,482,300 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$
4,470,636 

$
589,362 

$
42,914 

$
474,127 

$
5,577,039 

 

 

 

 

 

 

 

 

 

 

 

Assets

$
38,083,529 

$
26,508,137 

$
3,815,548 

$
31,879,021 

$
100,286,235 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 
11,869,268 

 
21,581,156 

 
3,292,445 

 

 -

 
36,742,869 

Impairment

 

 -

 
5,849,853 

 

 -

 

 -

 
5,849,853 

Restructuring expense

 
225,962 

 
778,760 

 
144,717 

 

 -

 
1,149,439 

Operating income (loss)

$
3,716,375 

$
(5,791,244)

$
3,231,236 

$

 -

$
1,156,367 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
1,044,363 

$
969,482 

$
170,985 

$

 -

$
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

 
10,905,357 

 
24,645,048 

 
2,550,368 

 

 -

 
38,100,773 

Operating income (loss)

$
1,068,248 

$
3,349,585 

$
(1,021,715)

$

 -

$
3,396,118 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
1,025,380 

$
981,080 

$
127,051 

$

 -

$
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 

 


Fair Value Measurements
v0.0.0.0
Fair Value Measurements
 12 Months Ended
Dec. 31, 2014
Fair Value Measurements [Abstract]  
Fair Value Measurements

NOTE 12 – 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,  2014 and December 31, 2013, are summarized below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
1,073,000 

 

$

 -

 

$

 -

 

$
1,073,000 

Subtotal

 
1,073,000 

 

 

 -

 

 

 -

 

 
1,073,000 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
1,920,000 

 

 

 -

 

 
1,920,000 

Corporate Notes/Bonds

 

 -

 

 
2,683,000 

 

 

 -

 

 
2,683,000 

Subtotal

 

 -

 

 
4,603,000 

 

 

 -

 

 
4,603,000 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
5,463,000 

 

 

 -

 

 
5,463,000 

Corporate Notes/Bonds

 

 -

 

 
6,077,000 

 

 

 -

 

 
6,077,000 

Subtotal

 

 -

 

 
11,540,000 

 

 

 -

 

 
11,540,000 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 -

 

 

 

 

 

 

 

 

 

Accrued Consideration

 

 -

 

 

 -

 

 

 -

 

 

 -

Subtotal

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
1,073,000 

 

$
16,143,000 

 

$

 -

 

$
17,216,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
5,752,000 

 

$

 -

 

$

 -

 

$
5,752,000 

Certificates of deposit

 

 

 

 
240,000 

 

 

 

 

 
240,000 

Subtotal

 
5,752,000 

 

 
240,000 

 

 

 -

 

 
5,992,000 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
2,583,000 

 

 

 -

 

 
2,583,000 

Corporate Notes/Bonds

 

 

 

 
3,159,000 

 

 

 

 

 
3,159,000 

Subtotal

 

 -

 

 
5,742,000 

 

 

 -

 

 
5,742,000 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
1,197,000 

 

 

 -

 

 
1,197,000 

Corporate Notes/Bonds

 

 

 

 
2,724,000 

 

 

 

 

 
2,724,000 

Subtotal

 

 -

 

 
3,921,000 

 

 

 -

 

 
3,921,000 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accrued Consideration

 

 -

 

 

 -

 

 
(559,000)

 

 
(559,000)

Subtotal

 

 -

 

 

 -

 

 
(559,000)

 

 
(559,000)

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
5,752,000 

 

$
9,903,000 

 

$
(559,000)

 

$
15,096,000 

 

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 2014 was due to $566,000 in payments and $7,000 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 2014 and 2013.


Restructuring Charges
v0.0.0.0
Restructuring Charges
 12 Months Ended
Dec. 31, 2014
Restructuring Charges [Abstract]  
Restructuring Charges

NOTE 13 – RESTRUCTURING CHARGES

During the year end December 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.  The facility was completely closed in the second quarter of 2014. The Company paid $724,000 in restructuring charges in 2014 related to accruals at the end of 2013 as well as new charges in 2014 and we had no  restructuring accruals recorded at December 31, 2014.


Subsequent Events
v0.0.0.0
Subsequent Events
 12 Months Ended
Dec. 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 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, 2014
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, 2014

$
69,000 

 

$
25,000 

 

$
(72,000)

(A)

$
0 

 

$
22,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 


Summary Of Significant Accounting Policies (Policy)
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Summary Of Significant Accounting Policies (Policy)
 12 Months Ended
Dec. 31, 2014
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, 2014, the Company had $13,737,000 in cash and cash equivalents. Of this amount, $1,073,000 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, 2014. 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 other comprehensive loss 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 $2,375,000, $2,030,000 and $2,058,000 for 2014,  2013 and 2012, 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.

Intangible Assets

Intangible Assets: Intangible assets with indefinite useful lives are not amortized, but are tested at least annually for impairment.

Recoverability Of Long-Lived Assets

Recoverability of long-lived assets: The Company reviews its long-lived assets periodically when impairment indicators exist as required under generally accepted accounting principles. Potential impairment is determined 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, 2014 and 2013, 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

 

 

 

2014

 

 

2013

Beginning balance

 

$
564,000 

 

$
590,000 

Amounts charged to expense

 

 
(14,000)

 

 
237,000 

Actual warranty costs paid

 

 
(116,000)

 

 
(263,000)

Ending balance

 

$
434,000 

 

$
564,000 

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss: The components of accumulated other comprehensive loss are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

 

 

2014

 

 

2013

Minimum pension liability

 

$
1,951,000 

 

$
1,796,000 

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

 

 
(41,000)

 

 
2,000 

Foreign currency translation

 

 
(2,605,000)

 

 
(2,038,000)

 

 

$
(695,000)

 

$
(240,000)

 

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 $7,835,000 in 2014, $2,760,000 in 2013 and $2,304,000 in 2012.  

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 18,384 shares, 0 shares and 10,116 shares in 2014,  2013 and 2012, respectively.  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 2014,  2013, and 2012 was 243,427,  0 and 80,290, respectively. Due to the net loss in 2013, there was no dilutive impact from outstanding stock options or unvested shares.

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.

Accounting Standards Issued

Accounting standards issued: 

In May 2014, the Financial Accounting Standards Board (FASB) issued a new accounting standard update on revenue recognition from contracts with customers. The new guidance will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. According to the new guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. This guidance will be effective for the Company beginning January 1, 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. The Company has not yet selected a transition method and is evaluating the impact of adopting this new accounting standard update on the financial statements and related disclosures.

 

In January 2015, the FASB issued guidance that eliminates from GAAP the concept of an extraordinary item. As a result, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; and (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The new guidance will be effective for us in our first quarter of 2016 and early adoption is permitted. We do not expect the adoption of this standard to have a material effect on our reporting and disclosure.

Accounting Standards Adopted

Accounting standards adopted:

There have been no new accounting pronouncements or changes in accounting pronouncements adopted during the period that are of significance or potential significance to the Company.


Summary Of Significant Accounting Policies (Tables)
v0.0.0.0
Summary Of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2014
Summary Of Significant Accounting Policies [Abstract]  
Schedule Of Warranty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

 

 

2014

 

 

2013

Beginning balance

 

$
564,000 

 

$
590,000 

Amounts charged to expense

 

 
(14,000)

 

 
237,000 

Actual warranty costs paid

 

 
(116,000)

 

 
(263,000)

Ending balance

 

$
434,000 

 

$
564,000 

 

Components Of Accumulated Other Comprehensive Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

 

 

2014

 

 

2013

Minimum pension liability

 

$
1,951,000 

 

$
1,796,000 

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

 

 
(41,000)

 

 
2,000 

Foreign currency translation

 

 
(2,605,000)

 

 
(2,038,000)

 

 

$
(695,000)

 

$
(240,000)

 


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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 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

$
1,073,000 

 

$

 -

 

$

 -

 

$
1,073,000 

 

$
1,073,000 

 

$

 

 

$

 

Subtotal

 
1,073,000 

 

 

 -

 

 

 -

 

 
1,073,000 

 

 
1,073,000 

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 
7,414,000 

 

 
1,000 

 

 
(32,000)

 

 
7,383,000 

 

 

 -

 

 
1,920,000 

 

 
5,463,000 

Corporate Notes/Bonds

 
8,777,000 

 

 
6,000 

 

 
(23,000)

 

 
8,760,000 

 

 

 -

 

 
2,683,000 

 

 
6,077,000 

Subtotal

 
16,191,000 

 

 
7,000 

 

 
(55,000)

 

 
16,143,000 

 

 

 -

 

 
4,603,000 

 

 
11,540,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
17,264,000 

 

$
7,000 

 

$
(55,000)

 

$
17,216,000 

 

$
1,073,000 

 

$
4,603,000 

 

$
11,540,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$
5,752,000 

 

$

 -

 

$

 -

 

$
5,752,000 

 

$
5,752,000 

 

$

 

 

$

 

Subtotal

 
5,752,000 

 

 

 -

 

 

 -

 

 
5,752,000 

 

 
5,752,000 

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 
4,024,000 

 

 
1,000 

 

 
(5,000)

 

 
4,020,000 

 

 
240,000 

 

 
2,583,000 

 

 
1,197,000 

Corporate Notes/Bonds

 
5,861,000 

 

 
23,000 

 

 
(1,000)

 

 
5,883,000 

 

 

 -

 

 
3,159,000 

 

 
2,724,000 

Subtotal

 
9,885,000 

 

 
24,000 

 

 
(6,000)

 

 
9,903,000 

 

 
240,000 

 

 
5,742,000 

 

 
3,921,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
15,637,000 

 

$
24,000 

 

$
(6,000)

 

$
15,655,000 

 

$
5,992,000 

 

$
5,742,000 

 

$
3,921,000 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

Estimated Market Value

 

 

 

 

 

Due within one year

 

$  
4,598,000 

 

$
4,603,000 

Due after one year through five years

 

 
11,593,000 

 

 
11,540,000 

 

 

$ 

16,191,000 

 

$
16,143,000 

 


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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

 

2014

 

2013

Finished goods

 

$         

19,208,000 

 

$
18,734,000 

Raw and processed materials

 

 
11,902,000 

 

 
10,378,000 

 

 

$
31,110,000 

 

$
29,112,000 

 


Property, Plant And Equipment (Tables)
v0.0.0.0
Property, Plant And Equipment (Tables)
 12 Months Ended
Dec. 31, 2014
Property, Plant And Equipment [Abstract]  
Schedule Of Property, Plant And Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated

 

December 31

 

useful life

 

2014

 

2013

Land

 

 

 

 

 

$
3,107,000 

 

$
3,116,000 

Buildings and improvements

7-40 years

 

 
8,523,000 

 

 
8,528,000 

Machinery and equipment

3-15 years

 

 
28,728,000 

 

 
25,408,000 

Furniture and fixtures

5-10 years

 

 
3,490,000 

 

 
4,042,000 

Construction in progress

 

 

 

 

 

 
1,925,000 

 

 
617,000 

 

 

 

 

 

 

 
45,773,000 

 

 
41,711,000 

Less accumulated depreciation

 

 

 

 

 

 
(27,620,000)

 

 
(26,770,000)

 

 

 

 

 

 

$
18,153,000 

 

$
14,941,000 

 


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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

Gross Carrying Amount

Accumulated Amortization

Foreign Currency Translation

Net

 

 

 

 

 

 

Trademarks

 
91,000 
(38,000)
(4,000)
49,000 

Customer relationships

 
491,000 
(159,000)
(26,000)
306,000 

Technology

 
229,000 
(149,000)
(11,000)
69,000 

 

 
811,000 
(346,000)
(41,000)
424,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

Gross Carrying Amount

Accumulated Amortization

Foreign Currency Translation

Net

 

 

 

 

 

 

Trademarks

 
82,000 
(17,000)
(11,000)
54,000 

Customer relationships

 
491,000 
(73,000)
(43,000)
375,000 

Technology

 
229,000 
(68,000)
(42,000)
119,000 

 

 
802,000 
(158,000)
(96,000)
548,000 

 

 

 

 

 

 

 

Schedule Of Estimated Future Amortization Expense

 

 

 

 

 

 

 

 

Year Ending December 31:

 

 

 

2015

 

$  
101,000 

2016

 

 
83,000 

2017

 

 
58,000 

2018

 

 
53,000 

2019

 

 
47,000 

 


Employee Retirement Benefits (Tables)
v0.0.0.0
Employee Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2014
Employee Retirement Benefits [Abstract]  
Summary Of The Balance Sheet Impact, Including Benefit Obligations, Assets And Funded Status Of The Pension Plan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

2013

Change in benefit obligation:

 

 

 

 

 

 

Benefit obligation at the beginning of the year

 

$         

3,340,000 

 

$
5,675,000 

Service cost

 

 
8,000 

 

 
5,000 

Interest cost

 

 
143,000 

 

 
186,000 

Augmentations

 

 

 -

 

 
211,000 

Actuarial losses/(gains)

 

 
363,000 

 

 
(198,000)

Benefits paid

 

 
(78,000)

 

 
(293,000)

Changes due to plan settlement

 

 

 -

 

 
(2,363,000)

Foreign currency (losses)/gains

 

 
(192,000)

 

 
117,000 

Benefit obligation at the end of the year

 

 
3,584,000 

 

 
3,340,000 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

 
3,645,000 

 

 
5,547,000 

Actual return on plan assets

 

 
340,000 

 

 
343,000 

Employer contributions

 

 
59,000 

 

 
297,000 

Benefits paid

 

 
(78,000)

 

 
(293,000)

Changes due to plan settlement

 

 

 -

 

 
(2,363,000)

Foreign currency (gains)/losses

 

 
(210,000)

 

 
114,000 

Fair value of plan assets at end of year

 

 
3,756,000 

 

 
3,645,000 

 

 

 

 

 

 

 

Funded status at end of year – net asset

 

$
172,000 

 

$
305,000 

 

Weighted Average Assumptions Used To Determine Net Periodic Pension Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 
3.6% 

 

 
4.6% 

Expected return on assets

 

 
3.6% 

 

 
5.5% 

 

Summary Of Estimated Future Pension Benefit Payments

 

 

 

 

 

 

2015

$
268,000 

2016

 
97,000 

2017

 
165,000 

2018

 
148,000 

2019

 
136,000 

2020 thru 2024

 
801,000 

 

Summary Of Components Of Net Periodic (Benefit) Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

2013

 

 

2012

Service cost

 

$
8,000 

 

$
5,000 

 

$
275,000 

Interest cost

 

 
143,000 

 

 
186,000 

 

 
244,000 

Expected return on assets

 

 
(188,000)

 

 
(229,000)

 

 
(262,000)

Amortization of prior service cost

 

 

 -

 

 
211,000 

 

 

 -

Net periodic pension (benefit) cost

 

$
(37,000)

 

$
173,000 

 

$
257,000 

 


Commitments And Contingencies (Tables)
v0.0.0.0
Commitments And Contingencies (Tables)
 12 Months Ended
Dec. 31, 2014
Commitments And Contingencies [Abstract]  
Minimum Future Lease Payments

 

 

 

 

 

 

 

 

Year Ending December 31:

 

 

 

2015

 

$  
290,000 

2016

 

 
86,000 

 

 

$ 

376,000 

 

Annual Requirements For Principal Payments On The Mortgage

 

 

 

 
2015 
524,000 
2016 
104,000 

 


Stock Compensation (Tables)
v0.0.0.0
Stock Compensation (Tables)
 12 Months Ended
Dec. 31, 2014
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, 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

Awarded
317,722 

 

 

 
12.30 

 

 

Exercised
(12,000)

 

 

 
8.28 

 

 

Forfeited
(74,757)

 

 

 
13.20 

 

 

Outstanding – December 31, 2014
540,404 

 

 

 
11.90 

 

5.13 years

 

 

 

 

 

 

 

 

Excercisable at December 31, 2014
182,638 

 

$

 
11.40 

 

3.17 years

Expected to vest December 31, 2014
540,404 

 

 

 
11.90 

 

5.13 years

 

Valuation Assumptions Of Stock Option Plan

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

2014

 

2013

 

2012

Expected volatility
31.4% 

 
31.8% 

 
31.2% 

Risk free interest rate
2.7% 

 
2.1% 

 
2.3% 

Expected holding period

6 years

 

6 years

 

6 years

Dividend yield
5.2% 

 
6.3% 

 
4.6% 

 

Summary Of The Status Of Stock Options Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average

 

Weighted

 

 

 

 

Remaining

 

Average

Range of Exercise Prices

 

Shares

 

Option Life

 

Exercise Price

$8.65 to $9.99

 
30,000 

 

3.2 years

 

 
9.68 

$10.00 to $12.00

 
294,225 

 

5.3 years

 

 
11.24 

$12.01 to $14.50

 
216,179 

 

5.2 years

 

 
13.11 

 

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, 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 

Granted

 

 
48,824 

 

 
12.52 

Vested

 

 
(16,754)

 

 
13.81 

Forfeited

 

 
(70,896)

 

 
13.02 

Outstanding – December 31, 2014

 

 
161,314 

 

 
10.87 

 

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 

Granted

 

 
13,973 

 

 
11.98 

Vested

 

 
(28,015)

 

 
10.89 

Forfeited

 

 

 -

 

 

 -

Outstanding – December 31, 2014

 

 
39,151 

 

 
10.67 

 


Income Taxes (Tables)
v0.0.0.0
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2014
Income Taxes [Abstract]  
Income Tax Expense By Jurisdiction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

 

2014

 

2013

 

2012

Currently payable income taxes:

 

 

 

 

 

 

 

 

 

Federal

 

$
328,000 

 

$
2,114,000 

 

$
1,669,000 

State

 

 
(12,000)

 

 
297,000 

 

 
141,000 

Foreign

 

 
113,000 

 

 
(32,000)

 

 
(18,000)

 

 

 
429,000 

 

 
2,379,000 

 

$
1,792,000 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes (benefit):

 

 

 

 

 

 

 

 

 

Federal

 

$
761,000 

 

$
(303,000)

 

$
(542,000)

State

 

 
40,000 

 

 
18,000 

 

 
(33,000)

Foreign

 

 
(11,000)

 

 
(33,000)

 

 
(57,000)

 

 

 
790,000 

 

 
(318,000)

 

 
(632,000)

 

 

 

 

 

 

 

 

 

 

 

 

$
1,219,000 

 

$
2,061,000 

 

$
1,160,000 

 

Reconciliation Of Effective Tax Rate, By Percentage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31

 

 

2014

 

2013

 

2012

Tax at U.S. statutory rate

 
35.0% 

 
35.0% 

 
35.0% 

Surtax exemption

 
(0.7)

 
(5.4)

 
(1.5)

State income taxes, net of federal benefit

 
1.0 

 
19.1 

 
1.7 

Foreign income taxes, net of

 

 

 

 

 

 

 foreign tax credits

 
7.8 

 
3.3 

 
(0.2)

Impairment of goodwill

 

 -

 
116.2 

 

 -

Other nondeductible items

 
3.1 

 
4.9 

 

 -

Effect of (decrease) increase in uncertain tax positions

 
(10.2)

 
7.3 

 

 -

Other

 
2.3 

 
6.4 

 
(0.9)

Effective tax rate

 
38.3% 

 
186.8% 

 
34.1% 

 

Schedule Of Deferred Tax Assets And Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

2013

Deferred tax assets:

 

 

 

 

 

Allowance for doubtful accounts

$
4,000 

 

$
19,000 

Inventory

 
2,779,000 

 

 
3,295,000 

Accrued and prepaid expenses

 
594,000 

 

 
502,000 

Domestic net operating loss carry-forward

 

 -

 

 
26,000 

Long-term compensation plans

 
380,000 

 

 
373,000 

Nonemployee director stock compensation

 
403,000 

 

 
243,000 

Other stock compensation

 
118,000 

 

 
111,000 

State income taxes

 

 -

 

 
75,000 

Foreign net operating loss carry-forwards and credits

 
1,743,000 

 

 
1,639,000 

 

 

 

 

 

 

 

 

 

 

 

 

Gross deferred tax assets

 
6,021,000 

 

 
6,283,000 

Valuation allowance

 
(1,734,000)

 

 
(1,618,000)

 

 

 

 

 

 

Net deferred tax assets

 
4,287,000 

 

 
4,665,000 

 

 

 

 

 

 

Deferred tax liabilities

 

 

 

 

 

Depreciation

 
(2,110,000)

 

 
(1,668,000)

Intangible assets

 
(18,000)

 

 
(47,000)

 

 

 

 

 

 

Gross deferred tax liability

 
(2,128,000)

 

 
(1,715,000)

 

 

 

 

 

 

Total net deferred tax asset

$
2,159,000 

 

$
2,950,000 

 

 

 

 

 

 

 

Schedule Of Unrecognized Tax Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

2013

 

2012

Unrcertain tax positions – January 1

$
240,000 

$
153,000 

$
234,000 

Gross increases - tax positions in prior period

 
0 

 
0 

 
0 

Gross decreases - tax positions in prior period

 
(73,000)

 
0 

 
0 

Gross increases - current period tax positions

 
0 

 
158,000 

 
0 

Settlements

 
(85,000)

 
(5,000)

 
0 

Expiration of statute of limitations

 
(7,000)

 
(66,000)

 
(81,000)

Uncertain tax positions – December 31, 2014

$
75,000 

$
240,000 

$
153,000 

 


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, 2014
Information Concerning Industry Segments And Major Customers [Abstract]  
Schedule Of Segment Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transition

 

JDL

 

 

 

 

 

 

Suttle

 

Networks

 

Technologies

 

Other

 

Total

2014

 

 

 

 

 

 

 

 

 

 

Sales

$
67,330,307 

$
43,173,864 

$
8,567,268 

$

 -

$
119,071,439 

Cost of sales

 
46,338,627 

 
23,975,363 

 
6,598,891 

 

 -

 
76,912,881 

Gross profit

 
20,991,680 

 
19,198,501 

 
1,968,377 

 

 -

 
42,158,558 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 administrative expenses

 
14,388,765 

 
21,392,643 

 
2,846,393 

 

 -

 
38,627,801 

Restructuring expense

 

 -

 
237,838 

 

 -

 

 -

 
237,838 

Operating income (loss)

$
6,602,915 

$
(2,431,980)

$
(878,016)

$

 -

$
3,292,919 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
1,386,523 

$
944,149 

$
151,628 

$

 -

$
2,482,300 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

$
4,470,636 

$
589,362 

$
42,914 

$
474,127 

$
5,577,039 

 

 

 

 

 

 

 

 

 

 

 

Assets

$
38,083,529 

$
26,508,137 

$
3,815,548 

$
31,879,021 

$
100,286,235 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 
11,869,268 

 
21,581,156 

 
3,292,445 

 

 -

 
36,742,869 

Impairment

 

 -

 
5,849,853 

 

 -

 

 -

 
5,849,853 

Restructuring expense

 
225,962 

 
778,760 

 
144,717 

 

 -

 
1,149,439 

Operating income (loss)

$
3,716,375 

$
(5,791,244)

$
3,231,236 

$

 -

$
1,156,367 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
1,044,363 

$
969,482 

$
170,985 

$

 -

$
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

 
10,905,357 

 
24,645,048 

 
2,550,368 

 

 -

 
38,100,773 

Operating income (loss)

$
1,068,248 

$
3,349,585 

$
(1,021,715)

$

 -

$
3,396,118 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$
1,025,380 

$
981,080 

$
127,051 

$

 -

$
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 

 


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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
1,073,000 

 

$

 -

 

$

 -

 

$
1,073,000 

Subtotal

 
1,073,000 

 

 

 -

 

 

 -

 

 
1,073,000 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
1,920,000 

 

 

 -

 

 
1,920,000 

Corporate Notes/Bonds

 

 -

 

 
2,683,000 

 

 

 -

 

 
2,683,000 

Subtotal

 

 -

 

 
4,603,000 

 

 

 -

 

 
4,603,000 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
5,463,000 

 

 

 -

 

 
5,463,000 

Corporate Notes/Bonds

 

 -

 

 
6,077,000 

 

 

 -

 

 
6,077,000 

Subtotal

 

 -

 

 
11,540,000 

 

 

 -

 

 
11,540,000 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 -

 

 

 

 

 

 

 

 

 

Accrued Consideration

 

 -

 

 

 -

 

 

 -

 

 

 -

Subtotal

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
1,073,000 

 

$
16,143,000 

 

$

 -

 

$
17,216,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

$
5,752,000 

 

$

 -

 

$

 -

 

$
5,752,000 

Certificates of deposit

 

 

 

 
240,000 

 

 

 

 

 
240,000 

Subtotal

 
5,752,000 

 

 
240,000 

 

 

 -

 

 
5,992,000 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
2,583,000 

 

 

 -

 

 
2,583,000 

Corporate Notes/Bonds

 

 

 

 
3,159,000 

 

 

 

 

 
3,159,000 

Subtotal

 

 -

 

 
5,742,000 

 

 

 -

 

 
5,742,000 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 -

 

 
1,197,000 

 

 

 -

 

 
1,197,000 

Corporate Notes/Bonds

 

 

 

 
2,724,000 

 

 

 

 

 
2,724,000 

Subtotal

 

 -

 

 
3,921,000 

 

 

 -

 

 
3,921,000 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Accrued Consideration

 

 -

 

 

 -

 

 
(559,000)

 

 
(559,000)

Subtotal

 

 -

 

 

 -

 

 
(559,000)

 

 
(559,000)

 

 

 

 

 

 

 

 

 

 

 

 

Total

$
5,752,000 

 

$
9,903,000 

 

$
(559,000)

 

$
15,096,000 

 


Summary Of Significant Accounting Policies (Narrative) (Details)
v0.0.0.0
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2014
segment
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Summary Of Significant Accounting Policies [Abstract]        
Number of segments 3      
Cash and cash equivalents $ 13,736,857 $ 20,059,120 $ 17,869,712 $ 22,515,710
Money market funds 1,073,000      
Value of the investment in short-term money market funds sought to be preserved (in dollars per share) $ 1.00      
Depreciation 2,375,000 2,030,000 2,058,000  
Product warranty period 5 years      
Research and development costs $ 7,835,000 $ 2,760,000 $ 2,304,000  
Dilutive shares 18,384 0 10,116  
Shares not included in the computation of diluted earnings per share 243,427 0 80,290  

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, 2014
Dec. 31, 2013
Summary Of Significant Accounting Policies [Abstract]    
Beginning Balance $ 564 $ 590
Amounts charged to expense (14) 237
Actual warranty costs paid (116) (263)
Ending balance $ 434 $ 564

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, 2014
Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive (loss) income, net of tax $ (695,158) $ (240,012)
Minimum Pension Liability [Member]
    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive (loss) income, net of tax 1,951,000 1,796,000
Unrealized (Loss)/Gain On Available-For-Sale Investments [Member]
    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive (loss) income, net of tax (41,000) 2,000
Foreign Currency Translation [Member]
    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive (loss) income, net of tax $ (2,605,000) $ (2,038,000)

Cash Equivalents And Investments (Narrative) (Details)
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Cash Equivalents And Investments (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Cash Equivalents And Investments [Abstract]    
Gross realized gains (losses) $ 0 $ 0

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, 2014
Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost $ 17,264,000 $ 15,637,000
Gross Unrealized Gains 7,000 24,000
Gross Unrealized Losses (55,000) (6,000)
Fair Value 17,216,000 15,655,000
Cash Equivalents 1,073,000 5,992,000
Short-Term Investments 4,602,717 5,742,314
Long-Term Investments 11,540,261 3,920,978
Cash And Cash Equivalents [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 1,073,000 5,752,000
Fair Value 1,073,000 5,752,000
Cash Equivalents 1,073,000 5,752,000
Cash And Cash Equivalents [Member] | Money Market Funds [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 1,073,000 5,752,000
Fair Value 1,073,000 5,752,000
Cash Equivalents 1,073,000 5,752,000
Investments [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 16,191,000 9,885,000
Gross Unrealized Gains 7,000 24,000
Gross Unrealized Losses (55,000) (6,000)
Fair Value 16,143,000 9,903,000
Cash Equivalents   240,000
Short-Term Investments 4,603,000 5,742,000
Long-Term Investments 11,540,000 3,921,000
Investments [Member] | Certificates Of Deposit [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 7,414,000 4,024,000
Gross Unrealized Gains 1,000 1,000
Gross Unrealized Losses (32,000) (5,000)
Fair Value 7,383,000 4,020,000
Cash Equivalents   240,000
Short-Term Investments 1,920,000 2,583,000
Long-Term Investments 5,463,000 1,197,000
Investments [Member] | Corporate Notes/Bonds [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 8,777,000 5,861,000
Gross Unrealized Gains 6,000 23,000
Gross Unrealized Losses (23,000) (1,000)
Fair Value 8,760,000 5,883,000
Short-Term Investments 2,683,000 3,159,000
Long-Term Investments $ 6,077,000 $ 2,724,000

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 $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]    
Fair Value $ 17,216 $ 15,655
Investments [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Due within one year, Amortized Cost 4,598  
Due after one year through five years, Amortized Cost 11,593  
Amortized Cost 16,191  
Due within one year, Fair Value 4,603  
Due after one year through five years, Fair Value 11,540  
Fair Value $ 16,143 $ 9,903

Inventories (Schedule Of Inventories) (Details)
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Inventories (Schedule Of Inventories) (Details) (USD $)
Dec. 31, 2014
Dec. 31, 2013
Inventories [Abstract]    
Finished goods $ 19,208,000 $ 18,734,000
Raw and processed materials 11,902,000 10,378,000
Total $ 31,109,653 $ 29,111,656

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, 2014
Dec. 31, 2013
Dec. 31, 2014
Land [Member]
Dec. 31, 2013
Land [Member]
Dec. 31, 2014
Buildings And Improvements [Member]
Dec. 31, 2013
Buildings And Improvements [Member]
Dec. 31, 2014
Machinery And Equipment [Member]
Dec. 31, 2013
Machinery And Equipment [Member]
Dec. 31, 2014
Furniture And Fixtures [Member]
Dec. 31, 2013
Furniture And Fixtures [Member]
Dec. 31, 2014
Construction In Progress [Member]
Dec. 31, 2013
Construction In Progress [Member]
Dec. 31, 2014
Minimum [Member]
Buildings And Improvements [Member]
Dec. 31, 2014
Minimum [Member]
Machinery And Equipment [Member]
Dec. 31, 2014
Minimum [Member]
Furniture And Fixtures [Member]
Dec. 31, 2014
Maximum [Member]
Buildings And Improvements [Member]
Dec. 31, 2014
Maximum [Member]
Machinery And Equipment [Member]
Dec. 31, 2014
Maximum [Member]
Furniture And Fixtures [Member]
Property, Plant and Equipment [Line Items]                                    
Total property, plant and equipment $ 45,773,000 $ 41,711,000 $ 3,107,000 $ 3,116,000 $ 8,523,000 $ 8,528,000 $ 28,728,000 $ 25,408,000 $ 3,490,000 $ 4,042,000 $ 1,925,000 $ 617,000            
Less accumulated depreciation (27,620,000) (26,770,000)                                
Property, plant and equipment, net $ 18,153,152 $ 14,941,492                                
Estimated useful life                         7 years 3 years 5 years 40 years 15 years 10 years

Intangible Assets (Narrative) (Details)
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Intangible Assets (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Intangible Assets [Abstract]      
Amortization expense $ 107 $ 102 $ 103

Intangible Assets (Schedule Of Finite-Lived Intangible Assets) (Details)
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Intangible Assets (Schedule Of Finite-Lived Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 811 $ 802
Accumulated Amortization (346) (158)
Foreign Currency Translation (41) (96)
Net 424 548
Trademarks [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 91 82
Accumulated Amortization (38) (17)
Foreign Currency Translation (4) (11)
Net 49 54
Customer Relationships [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 491 491
Accumulated Amortization (159) (73)
Foreign Currency Translation (26) (43)
Net 306 375
Technology [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 229 229
Accumulated Amortization (149) (68)
Foreign Currency Translation (11) (42)
Net $ 69 $ 119

Intangible Assets (Schedule Of Estimated Future Amortization Expense) (Details)
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Intangible Assets (Schedule Of Estimated Future Amortization Expense) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Intangible Assets [Abstract]  
2015 $ 101
2016 83
2017 58
2018 53
2019 $ 47

Employee Retirement Benefits (Narrative) (Details)
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Employee Retirement Benefits (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]      
Maximum matching percentage by employer 6.00%    
Contributions to the plan $ 528 $ 457 $ 471
Expected contributions in 2015 76    
Level 2 [Member]
      
Defined Benefit Plan Disclosure [Line Items]      
Investments used to fund the plan $ 3,756 $ 3,645  

Employee Retirement Benefits (Summary Of The Balance Sheet Impact, Including Benefit Obligations, Assets And Funded Status Of The Pension Plan) (Details)
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Employee 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, 2014
Dec. 31, 2013
Dec. 31, 2012
Employee Retirement Benefits [Abstract]      
Benefit obligation at the beginning of the year $ 3,340 $ 5,675  
Service cost 8 5 275
Interest cost 143 186 244
Augmentations   211  
Actuarial losses/(gains) 363 (198)  
Benefits paid (78) (293)  
Changes due to plan settlement   (2,363)  
Foreign currency (losses)/gains (192) 117  
Benefit obligation at the end of the year 3,584 3,340 5,675
Fair value of plan assets at beginning of year 3,645 5,547  
Actual return on plan assets 340 343  
Employer contributions 59 297  
Benefits paid (78) (293)  
Changes due to plan settlements   (2,363)  
Foreign currency (gains)/losses (210) 114  
Fair value of plan assets at end of year 3,756 3,645 5,547
Funded status at end of year - net asset $ 172 $ 305  

Employee Retirement Benefits (Weighted Average Assumptions Used To Determine Net Periodic Pension Costs) (Details)
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Employee Retirement Benefits (Weighted Average Assumptions Used To Determine Net Periodic Pension Costs) (Details)
 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Employee Retirement Benefits [Abstract]    
Discount rate 3.60% 4.60%
Expected return on plan assets 3.60% 5.50%

Employee Retirement Benefits (Summary Of Estimated Future Pension Benefit Payments) (Details)
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Employee Retirement Benefits (Summary Of Estimated Future Pension Benefit Payments) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Employee Retirement Benefits [Abstract]  
2015 $ 268
2016 97
2017 165
2018 148
2019 136
2020 thru 2024 $ 801

Employee Retirement Benefits (Summary Of Components Of Net Periodic (Benefit) Cost) (Details)
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Employee Retirement Benefits (Summary Of Components Of Net Periodic (Benefit) Cost) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Employee Retirement Benefits [Abstract]      
Service cost $ 8 $ 5 $ 275
Interest cost 143 186 244
Expected return on plan assets (188) (229) (262)
Amortization of prior service cost   211  
Net periodic pension (benefit) cost $ (37) $ 173 $ 257

Commitments And Contingencies (Narrative) (Details)
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Commitments And Contingencies (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Commitments and Contingencies [Line Items]      
Rent expense $ 546,000 $ 409,000 $ 443,000
Interest rate 6.83%    
Outstanding balance on the mortgage 628,000    
Line of credit, amount outstanding 0 0  
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 1.40%    
Accrued (income)/expense for long-term compensation plans 0 (124,000) (16,000)
Accrual for long-term compensation plans 0 199,000  
Long-term compensation plan, payments for awards 199,000 27,000 1,657,000
Long-term compensation plan, percentage paid out in cash, cycle 1 25.00%    
Long-term compensation plan, percentage paid out in stock, cycle 1 75.00%    
Long-term compensation plan, percentage paid out in stock, cycle 2 100.00%    
Operating Leases, Rent Expense, Net 546,000 409,000 443,000
Long-term Debt 628,000    
Line of Credit Facility, Maximum Borrowing Capacity 10,000,000    
Line of Credit Facility, Interest Rate at Period End 1.40%    
Accrued Employee Benefits $ 0 $ 199,000  
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, 2014
Commitments And Contingencies [Abstract]  
2015 $ 290
2016 86
Total minimum future lease payments $ 376

Commitments And Contingencies (Annual Requirements For Principal Payments On The Mortgage) (Details)
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Commitments And Contingencies (Annual Requirements For Principal Payments On The Mortgage) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Commitments And Contingencies [Abstract]  
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 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Mar. 31, 2015
Subsequent Event [Member]
Dec. 31, 2014
Employee Stock Purchase Plan [Member]
Dec. 31, 2014
2011 Executive Incentive Compensation Plan [Member]
Mar. 28, 2011
2011 Executive Incentive Compensation Plan [Member]
Dec. 31, 2014
1992 Stock Plan [Member]
Dec. 31, 2014
Employee Stock Ownership Plan [Member]
Dec. 31, 2014
Non-Employee Directors [Member]
Stock Option Plan For Directors [Member]
Dec. 31, 2013
Non-Employee Directors [Member]
Stock Option Plan For Directors [Member]
Dec. 31, 2012
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, 2014
Employee Stock Option [Member]
Dec. 31, 2014
Deferred Stock [Member]
Dec. 31, 2013
Deferred Stock [Member]
Dec. 31, 2012
Deferred Stock [Member]
Dec. 31, 2014
Deferred Stock [Member]
Key Employees [Member]
2011 Executive Incentive Compensation Plan [Member]
Dec. 31, 2014
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2013
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2012
Restricted Stock Units (RSUs) [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%                                
Number of awards authorized               1,000,000                            
Number of options granted             317,722       0 0 0                  
Award expiration period             7 years       10 years                      
Award vesting percentage             25.00%     30.00%                        
Awards granted                               48,824 222,654 105,698 43,824 13,973 31,354 25,879
Award vesting period                   7 years           3 years            
Awards eligible for grant           21,483 321,928   22,008                          
Number of options outstanding 540,404 309,439 311,153 236,820                                    
Initial award vesting period                   3 years                        
Number of shares automatically granted to each non-employee director                           3,000                
Unrecognized compensation expense related to stock options $ 423,000                                          
Aggregate intrinsic value of options outstanding 56,000                                          
Intrinsic value of all options exercised 40,000 38,000 59,000                                      
Net cash proceeds from exercise of stock options 99,000 110,000 86,000                                      
Unrecognized compensation expense for awards                               342,000       61,000    
Recognition period for unrecognized compensation expense                             2 years 7 months 6 days 2 years 1 month 6 days       4 months 24 days    
Excess tax benefits from exercise of stock options 14,000 14,000 21,000                                      
Share based compensation expense before income taxes 785,000 (81,000) 303,000                                      
Share based compensation expense after income taxes 510,000 (53,000) 197,000                                      
Requisite service period                   1 year                        
Shares of ESOP allocated to accounts of eligible employees 557,375                                          
Shares issued under ESOP   32,520 44,598   36,707                                  
ESOP contributions $ 385,424 $ 362,273 $ 463,819                                      

Stock Compensation (Schedule Of Changes In Number Of Outstanding Stock Options Under Director Plan And Stock Plan) (Details)
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Stock Compensation (Schedule Of Changes In Number Of Outstanding Stock Options Under Director Plan And Stock Plan) (Details) (USD $)
 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Stock Compensation [Abstract]        
Options, Outstanding 309,439 311,153 236,820  
Options, Awarded 317,722 169,550 92,223  
Options, Exercised (12,000) (15,000) (12,000)  
Options, Forfeited (74,757) (156,264) (5,890)  
Options, Outstanding 540,404 309,439 311,153 236,820
Options, Exercisable 182,638      
Options, Expected to vest 540,404      
Weighted average exercise price per share, Outstanding $ 11.66 $ 12.05 $ 11.35  
Weighted average exercise price per share, Awarded $ 12.30 $ 10.19 $ 13.10  
Weighted average exercise price per share, Exercised $ 8.28 $ 7.35 $ 7.13  
Weighted average exercise price per share, Forfeited $ 13.20 $ 11.25 $ 10.58  
Weighted average exercise price per share, Outstanding $ 11.90 $ 11.66 $ 12.05 $ 11.35
Weighted average exercise price per share, Exercisable $ 11.40      
Weighted average exercise price per share, Expected to vest $ 11.90      
Options, Outstanding - Weighted average remaining contractual term 5 years 1 month 17 days 4 years 1 month 17 days 4 years 11 months 27 days 5 years 2 months 5 days
Options, Exercisable - Weighted average remaining contractual term 3 years 2 months 1 day      
Options, Expected to vest - Weighted average remaining contractual term 5 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, 2014
Dec. 31, 2013
Dec. 31, 2012
Stock Compensation [Abstract]      
Expected volatility rate 31.40% 31.80% 31.20%
Risk free interest rate 2.70% 2.10% 2.30%
Expected holding period 6 years 6 years 6 years
Dividend yield 5.20% 6.30% 4.60%

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, 2014
$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 30,000
Weighted Average Remaining Option Life 3 years 2 months 12 days
Weighted Average Exercise Price $ 9.68
$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 294,225
Weighted Average Remaining Option Life 5 years 3 months 18 days
Weighted Average Exercise Price $ 11.24
$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 216,179
Weighted Average Remaining Option Life 5 years 2 months 12 days
Weighted Average Exercise Price $ 13.11

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, 2014
Dec. 31, 2013
Dec. 31, 2012
Deferred Stock [Member]
      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares, Outstanding 200,140 160,790 71,849
Shares, Granted 48,824 222,654 105,698
Shares, Vested (16,754) (1,849)  
Shares, Forfeited (70,896) (181,455) (16,757)
Shares, Outstanding 161,314 200,140 160,790
Weighted Average Grant Date Fair Value, Outstanding $ 11.47 $ 14.16 $ 15.14
Weighted Average Grant Date Fair Value, Granted $ 12.52 $ 10.08 $ 13.49
Weighted Average Grant Date Fair Value, Vested $ 13.81 $ 14.82  
Weighted Average Grant Date Fair Value, Forfeited $ 13.02 $ 12.11 $ 13.95
Weighted Average Grant Date Fair Value, Outstanding $ 10.87 $ 11.47 $ 14.16

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, 2014
Dec. 31, 2013
Dec. 31, 2012
Restricted Stock Units (RSUs) [Member]
      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares, Outstanding 53,193 25,879  
Shares, Granted 13,973 31,354 25,879
Shares, Vested (28,015)    
Shares, Forfeited   (4,040)  
Shares, Outstanding 39,151 53,193 25,879
Weighted Average Grant Date Fair Value, Outstanding $ 10.44 $ 10.82  
Weighted Average Grant Date Fair Value, Granted $ 11.98 $ 10.05 $ 10.82
Weighted Average Grant Date Fair Value, Vested $ 10.89    
Weighted Average Grant Date Fair Value, Forfeited   $ 9.90  
Weighted Average Grant Date Fair Value, Outstanding $ 10.67 $ 10.44 $ 10.82

Common Stock (Details)
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Common Stock (Details)
Dec. 31, 2014
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, 2014
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2005
Income Taxes [Line Items]        
Dividend payable $ 1,446,498 $ 1,436,318    
Uncertain tax benefit positions that would reduce the effective income tax rate if recognized 76,000      
Expiration of statute of limitations 7,000 66,000 81,000  
Accrual for interest and penalties 2,000      
Net increase (decrease) in accrued interest and penalties (159,000)      
Austin Taylor Communications, Ltd. [Member]
        
Income Taxes [Line Items]        
Pretax income (losses) 389,000 428,000 419,000  
Net operating loss carryforwards 6,957,000      
Transition Networks EMEA, Ltd. [Member]
        
Income Taxes [Line Items]        
Pretax income (losses) (54,000) (2,754,000) 316,000  
Net operating loss carryforwards 37,000      
Transition Networks China [Member]
        
Income Taxes [Line Items]        
Pretax income (losses) 345,000 341,000 36,000  
Net operating loss carryforwards 460,000      
Suttle Costa Rica, S.A. [Member]
        
Income Taxes [Line Items]        
Pretax income (losses) 321,000 152,000 168,000  
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, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Taxes [Abstract]      
Currently payable income taxes: Federal $ 328,000 $ 2,114,000 $ 1,669,000
Currently payable income taxes: State (12,000) 297,000 141,000
Currently payable income taxes: Foreign 113,000 (32,000) (18,000)
Currently payable income taxes 429,000 2,379,000 1,792,000
Deferred income taxes (benefit): Federal 761,000 (303,000) (542,000)
Deferred income taxes (benefit): State 40,000 18,000 (33,000)
Deferred income taxes (benefit): Foreign (11,000) (33,000) (57,000)
Deferred income taxes (benefit) 790,402 (317,727) (631,626)
Income taxes (benefit) $ 1,219,355 $ 2,061,013 $ 1,159,566

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, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Taxes [Abstract]      
Tax at U.S. statutory rate 35.00% 35.00% 35.00%
Surtax exemption (0.70%) (5.40%) (1.50%)
State income taxes, net of federal benefit 1.00% 19.10% 1.70%
Foreign income taxes, net of foreign tax credits 7.80% 3.30% (0.20%)
Impairment of goodwill   116.20%  
Other nondeductible items 3.10% 4.90%  
Effect of (decrease) increase in uncertain tax positions (10.20%) 7.30%  
Other 2.30% 6.40% (0.90%)
Effective tax rate 38.30% 186.80% 34.10%

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 $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Income Taxes [Abstract]    
Allowance for doubtful accounts $ 4 $ 19
Inventory 2,779 3,295
Accrued and prepaid expenses 594 502
Domestic net operating loss carry-forward   26
Long-term compensation plans 380 373
Nonemployee director stock compensation 403 243
Other stock compensation 118 111
State income taxes   75
Foreign net operating loss carry-forwards and credits 1,743 1,639
Gross deferred tax assets 6,021 6,283
Valuation allowance (1,734) (1,618)
Net deferred tax assets 4,287 4,665
Depreciation (2,110) (1,668)
Intangible assets (18) (47)
Gross deferred tax liability (2,128) (1,715)
Total net deferred tax asset $ 2,159 $ 2,950

Income Taxes (Schedule Of Unrecognized Tax Benefits) (Details)
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Income Taxes (Schedule Of Unrecognized Tax Benefits) (Details) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Taxes [Abstract]      
Unrecognized tax benefits - January 1 $ 240 $ 153 $ 234
Gross increases - tax positions in prior period 0 0 0
Gross decreases - tax positions in prior period (73) 0 0
Gross increases - current period tax positions 0 158 0
Settlements (85) (5) 0
Expiration of statute of limitations (7) (66) (81)
Unrecognized tax benefits - December 31 $ 75 $ 240 $ 153

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, 2014
Dec. 31, 2013
Dec. 31, 2012
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 33.60% 18.70% 16.60%
Sales [Member] | Transition Networks [Member]
      
Segment Reporting Information [Line Items]      
Concentration risk percentage     10.60%
Foreign Countries [Member] | Suttle [Member]
      
Segment Reporting Information [Line Items]      
Long-lived assets $ 2,810 $ 1,225  
United States [Member] | Sales [Member]
      
Segment Reporting Information [Line Items]      
Concentration risk percentage 86.00% 87.00% 83.00%

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, 2014
Dec. 31, 2013
Dec. 31, 2012
Segment Reporting Information [Line Items]      
Sales $ 119,071,439 $ 131,319,510 $ 104,249,654
Cost of sales 76,912,881 86,420,982 62,752,763
Gross profit 42,158,558 44,898,528 41,496,891
Selling, general and administrative expenses 38,627,801 36,742,869 38,100,773
Impairment   5,849,853  
Restructuring expense 237,838 1,149,439  
Operating income (loss) 3,292,919 1,156,367 3,396,118
Depreciation and amortization 2,482,300 2,184,830 2,133,511
Capital expenditures 5,577,039 2,699,347 2,607,958
Assets 100,286,235 103,532,741 112,534,645
Suttle [Member]
      
Segment Reporting Information [Line Items]      
Sales 67,330,307 54,346,428 45,030,184
Cost of sales 46,338,627 38,534,823 33,056,579
Gross profit 20,991,680 15,811,605 11,973,605
Selling, general and administrative expenses 14,388,765 11,869,268 10,905,357
Restructuring expense   225,962  
Operating income (loss) 6,602,915 3,716,375 1,068,248
Depreciation and amortization 1,386,523 1,044,363 1,025,380
Capital expenditures 4,470,636 1,215,394 1,167,495
Assets 38,083,529 30,636,805 26,148,148
Transition Networks [Member]
      
Segment Reporting Information [Line Items]      
Sales 43,173,864 43,856,640 53,842,940
Cost of sales 23,975,363 21,438,115 25,848,307
Gross profit 19,198,501 22,418,525 27,994,633
Selling, general and administrative expenses 21,392,643 21,581,156 24,645,048
Impairment   5,849,853  
Restructuring expense 237,838 778,760  
Operating income (loss) (2,431,980) (5,791,244) 3,349,585
Depreciation and amortization 944,149 969,482 981,080
Capital expenditures 589,362 919,376 412,568
Assets 26,508,137 29,440,438 35,851,189
JDL Technologies [Member]
      
Segment Reporting Information [Line Items]      
Sales 8,567,268 33,116,442 5,376,530
Cost of sales 6,598,891 26,448,044 3,847,877
Gross profit 1,968,377 6,668,398 1,528,653
Selling, general and administrative expenses 2,846,393 3,292,445 2,550,368
Restructuring expense   144,717  
Operating income (loss) (878,016) 3,231,236 (1,021,715)
Depreciation and amortization 151,628 170,985 127,051
Capital expenditures 42,914 46,014 36,891
Assets 3,815,548 11,350,381 8,385,337
Other [Member]
      
Segment Reporting Information [Line Items]      
Capital expenditures 474,127 518,563 991,004
Assets $ 31,879,021 $ 32,105,117 $ 42,149,971

Fair Value Measurements (Narrative) (Details)
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Fair Value Measurements (Narrative) (Details) (USD $)
 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
Payments [Member]
Dec. 31, 2014
Foreign Currency Gain (Loss) [Member]
Dec. 31, 2013
Level 3 [Member]
Dec. 31, 2013
Accrued Consideration [Member]
Dec. 31, 2013
Accrued Consideration [Member]
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Fair value of accrued consideration   $ 559,000     $ 559,000 $ 559,000 $ 558,801
Change in fair value of acquisition-related contingent consideration due to payments     (566,000) (7,000)      
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          

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, 2014
Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 1,073,000 $ 5,992,000
Current Liabilities, fair value   (559,000)
Assets (Liabilities) Net, fair value 17,216,000 15,096,000
Level 1 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,073,000 5,752,000
Assets (Liabilities) Net, fair value 1,073,000 5,752,000
Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   240,000
Assets (Liabilities) Net, fair value 16,143,000 9,903,000
Level 3 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current Liabilities, fair value   (559,000)
Assets (Liabilities) Net, fair value   (559,000)
Money Market Funds [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,073,000 5,752,000
Money Market Funds [Member] | Level 1 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,073,000 5,752,000
Certificates Of Deposit [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   240,000
Certificates Of Deposit [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   240,000
Accrued Consideration [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current Liabilities, fair value   (559,000)
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 4,603,000 5,742,000
Short-Term Investments [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 4,603,000 5,742,000
Short-Term Investments [Member] | Certificates Of Deposit [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 1,920,000 2,583,000
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 1,920,000 2,583,000
Short-Term Investments [Member] | Corporate Notes/Bonds [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 2,683,000 3,159,000
Short-Term Investments [Member] | Corporate Notes/Bonds [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 2,683,000 3,159,000
Long Term Investments [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 11,540,000 3,921,000
Long Term Investments [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 11,540,000 3,921,000
Long Term Investments [Member] | Certificates Of Deposit [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 5,463,000 1,197,000
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 5,463,000 1,197,000
Long Term Investments [Member] | Corporate Notes/Bonds [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments 6,077,000 2,724,000
Long Term Investments [Member] | Corporate Notes/Bonds [Member] | Level 2 [Member]
    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments $ 6,077,000 $ 2,724,000

Restructuring Charges (Details)
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Restructuring Charges (Details) (USD $)
 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Restructuring Charges [Abstract]    
Restructuring expense $ 237,838 $ 1,149,439
Restructuring payments 724,000  
Restructuring accrual $ 0  

Valuation And Qualifying Accounts And Reserves (Details)
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Valuation And Qualifying Accounts And Reserves (Details) (Allowance for Doubtful Accounts [Member], USD $)
 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Allowance for Doubtful Accounts [Member]
      
Valuation and Qualifying Accounts Disclosure [Line Items]      
Balance at Beginning of Period $ 69,000 $ 69,000 $ 175,000
Additions Charged to Cost and Expenses 25,000 23,000 30,000
Deductions from Reserves (72,000) [1] (23,000) [1] (136,000) [1]
Other Changes Add (Deduct) 0 0 0
Balance at End of Period $ 22,000 $ 69,000 $ 69,000
[1] Accounts determined to be uncollectible and charged off against reserve.