Document And Entity Information
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Document And Entity Information
 9 Months Ended
Sep. 30, 2012
Nov. 01, 2012
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2012  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2012  
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   8,474,896

Condensed Consolidated Balance Sheets
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Condensed Consolidated Balance Sheets (USD $)
Sep. 30, 2012
Dec. 31, 2011
CURRENT ASSETS:    
Cash and cash equivalents $ 14,764,399 $ 22,515,710
Investments 14,539,329 18,635,601
Trade accounts receivable, less allowance for doubtful accounts of $127,000 and $175,000, respectively 16,595,830 14,461,168
Inventories 28,545,543 25,986,003
Prepaid income taxes 3,002,741 3,893,003
Other current assets 1,031,610 999,863
Deferred income taxes 3,408,446 3,455,047
TOTAL CURRENT ASSETS 81,887,898 89,946,395
PROPERTY, PLANT AND EQUIPMENT, net 14,447,206 14,019,019
OTHER ASSETS:    
Investments 7,063,147 4,883,510
Goodwill 5,958,768 5,990,571
Prepaid pensions 1,084,631 905,552
Other assets 841,978 913,869
TOTAL OTHER ASSETS 14,948,524 12,693,502
TOTAL ASSETS 111,283,628 116,658,916
CURRENT LIABILITIES:    
Current portion of long-term debt 449,741 427,345
Accounts payable 3,621,047 4,398,848
Accrued compensation and benefits 2,657,401 5,870,000
Accrued consideration 535,378 1,002,623
Other accrued liabilities 2,244,214 2,388,867
Dividends payable 1,448,145 1,299,963
TOTAL CURRENT LIABILITIES 10,955,926 15,387,646
LONG TERM LIABILITIES:    
Long-term compensation plans 434,304 283,075
Income taxes payable 314,266 405,673
Deferred income taxes 1,560,286 1,476,969
Long term debt - mortgage payable 1,234,832 1,574,993
TOTAL LONG-TERM LIABILITIES 3,543,688 3,740,710
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; 8,517,212 and 8,466,774 shares issued and outstanding, respectively 425,861 423,339
Additional paid-in capital 36,621,705 35,533,273
Retained earnings 59,308,260 61,466,342
Accumulated other comprehensive income, net of tax 428,188 107,606
TOTAL STOCKHOLDERS' EQUITY 96,784,014 97,530,560
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 111,283,628 $ 116,658,916

Condensed Consolidated Balance Sheets (Parenthetical)
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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Condensed Consolidated Balance Sheets [Abstract]    
Trade accounts receivable, allowance for doubtful accounts $ 127,000 $ 175,000
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 8,517,212 8,466,774
Common stock, shares outstanding 8,517,212 8,466,774

Condensed Consolidated Statements Of Income And Comprehensive Income
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Condensed Consolidated Statements Of Income And Comprehensive Income (USD $)
 3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Condensed Consolidated Statements Of Income And Comprehensive Income [Abstract]        
Sales from operations $ 28,687,687 $ 41,984,570 $ 78,492,866 $ 118,437,057
Costs and expenses:        
Cost of sales 17,927,814 25,429,300 47,128,483 70,097,713
Selling, general and administrative expenses 9,053,164 10,071,408 28,169,627 29,189,378
Goodwill impairment 0 0 0 1,271,986
Total costs and expenses 26,980,978 35,500,708 75,298,110 100,559,077
Operating income 1,706,709 6,483,862 3,194,756 17,877,980
Other income (expense):        
Investment and other income (8,342) 138,990 24,830 275,852
Gain (loss) on sale of assets (1,740) 5,310 87,801 (4,674)
Interest and other expense (33,187) (53,256) (104,918) (149,107)
Other income (expense), net (43,269) 91,044 7,713 122,071
Income before income taxes 1,663,440 6,574,906 3,202,469 18,000,051
Income tax expense 544,098 2,845,269 1,056,316 7,627,910
Net income 1,119,342 3,729,637 2,146,153 10,372,141
Other comprehensive income, net of tax:        
Additional minimum pension liability adjustments 4,671 (8,534) 137,397 (26,952)
Unrealized gains (losses) on available-for-sale securities 33,855 (5,094) 39,488 (30,510)
Foreign currency translation adjustment 103,814 (112,581) 143,697 (44,480)
Total other comprehensive income (loss), net of tax 142,340 (126,209) 320,582 (101,942)
Comprehensive net income $ 1,261,682 $ 3,603,428 $ 2,466,735 $ 10,270,199
Basic net income per share: $ 0.13 $ 0.44 $ 0.25 $ 1.23
Diluted net income per share: $ 0.13 $ 0.44 $ 0.25 $ 1.22
Average Basic Shares Outstanding 8,520,469 8,460,625 8,505,571 8,442,812
Average Dilutive Shares Outstanding 8,532,534 8,530,187 8,528,523 8,500,022
Dividends per share $ 0.16 $ 0.15 $ 0.48 $ 0.45

Condensed Consolidated Statement Of Changes In Stockholders' Equity
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Condensed Consolidated Statement Of Changes In Stockholders' Equity (USD $)
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income [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     2,146,153   2,146,153
Issuance of common stock under Employee Stock Purchase Plan 481 123,472     123,953
Issuance of common stock under Employee Stock Purchase Plan, Shares 9,610        
Issuance of common stock to Employee Stock Ownership Plan 36,145 506,391     508,198
Issuance of common stock to Employee Stock Ownership Plan, Shares 1,807        
Issuance of common stock under Non-Employee Stock Option Plan 600 84,983     85,583
Issuance of common stock under Non-Employee Stock Option Plan, Shares 12,000        
Issuance of common stock under Executive Stock Plan 808 39,503     40,311
Issuance of common stock under Executive Stock Plan, Shares 16,156        
Tax benefit from non-qualified stock options and restricted stock   67,932     67,932
Share-based compensation   366,574     366,574
Purchase of common stock (1,174) (100,423) (151,050)   (252,647)
Purchase of common stock, Shares (23,473)        
Shareholder dividends     (4,153,185)   (4,153,185)
Other comprehensive income       320,582 320,582
BALANCE at Sep. 30, 2012 $ 425,861 $ 36,621,705 $ 59,308,260 $ 428,188 $ 96,784,014
BALANCE, Shares at Sep. 30, 2012 8,517,212        

Condensed Consolidated Statements Of Cash Flows
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Condensed Consolidated Statements Of Cash Flows (USD $)
 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 2,146,153 $ 10,372,141
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation and amortization 1,636,887 1,571,423
Share-based compensation 366,574 413,332
Deferred income taxes 129,918 973,817
Goodwill impairment 0 1,271,986
Change in fair value of acquisition-related contingent consideration (161,644)  
(Gain) loss on sale of assets (87,801) 4,674
Excess tax benefit from stock based payments (67,932) (23,227)
Changes in assets and liabilities:    
Trade receivables (2,101,517) (3,664,939)
Inventories (2,493,891) (609,224)
Prepaid income taxes 890,067 (273,981)
Other assets (2,815) 21,595
Accounts payable (797,081) (1,357,506)
Accrued compensation and benefits (2,554,475) (99,861)
Other accrued expenses (109,789) (288,821)
Income taxes payable (23,475) (59,368)
Net cash (used in) provided by operating activities (3,230,821) 8,252,041
CASH FLOWS FROM INVESTING ACTIVITIES:    
Capital expenditures (2,047,771) (1,635,893)
Purchases of investments (13,599,917) (16,156,015)
Acquisition of business, net of cash acquired   (2,408,910)
Proceeds from the sale of fixed assets 161,663 8,055
Proceeds from the sale of investments 15,556,039 19,174,385
Net cash provided by (used in) investing activities 70,014 (1,018,378)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Cash dividends paid (4,005,003) (3,795,989)
Mortgage principal payments (317,765) (296,844)
Proceeds from issuance of common stock 249,847 177,609
Excess tax benefit from stock based payments 67,932 23,227
Payment of contingent consideration related to acquisition (357,879)   
Purchase of common stock (252,647)   
Net cash used in financing activities (4,615,515) (3,891,997)
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH 25,011 (44,619)
NET DECREASE IN CASH AND CASH EQUIVALENTS (7,751,311) 3,297,047
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 22,515,710 16,787,558
CASH AND CASH EQUIVALENTS AT END OF PERIOD 14,764,399 20,084,605
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:    
Income taxes paid 74,508 6,996,908
Interest paid 103,945 121,615
Dividends declared not paid 1,363,430 1,269,155
Acquisition costs in accrued expenses   $ 1,681,367

Summary Of Significant Accounting Policies
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Summary Of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2012
Summary Of Significant Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business

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

Financial Statement Presentation

The condensed consolidated balance sheets and condensed consolidated statement of changes in stockholders' equity as of September 30, 2012 and the related condensed consolidated statements of income and comprehensive income, and the condensed consolidated statements of cash flows for the periods ended September 30, 2012 and 2011 have been prepared by Company management. In the opinion of management, all adjustments (which include only normal recurring adjustments except where noted) necessary to present fairly the financial position, results of operations, and cash flows at September 30, 2012 and 2011 and for the periods then ended have been made.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted. We recommend these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2011 Annual Report to Shareholders on Form 10-K. The results of operations for the periods ended September 30, 2012 are not necessarily indicative of operating results for the entire year.

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

Except to the extent updated or described below, the significant accounting policies set forth in Note 1 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2011, appropriately represent, in all material respects, the current status of accounting policies, and are incorporated herein by reference.

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 this 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.

Accumulated Other Comprehensive Income

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

 

 

 

 

 

 

 

 

 

 

September 30
2012

 

December 31
2011

 

Foreign currency translation

 

$

(193,900

)

$

(337,597

)

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

 

 

36,855

 

 

(2,633

)

Minimum pension liability

 

 

585,233

 

 

447,836

 

 

 

$

428,188

 

$

107,606

 

Summary Of Significant Accounting Policies (Policy)
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Summary Of Significant Accounting Policies (Policy)
 9 Months Ended
Sep. 30, 2012
Summary Of Significant Accounting Policies [Abstract]  
Financial Statement Presentation

Financial Statement Presentation

The condensed consolidated balance sheets and condensed consolidated statement of changes in stockholders' equity as of September 30, 2012 and the related condensed consolidated statements of income and comprehensive income, and the condensed consolidated statements of cash flows for the periods ended September 30, 2012 and 2011 have been prepared by Company management. In the opinion of management, all adjustments (which include only normal recurring adjustments except where noted) necessary to present fairly the financial position, results of operations, and cash flows at September 30, 2012 and 2011 and for the periods then ended have been made.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been condensed or omitted. We recommend these condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2011 Annual Report to Shareholders on Form 10-K. The results of operations for the periods ended September 30, 2012 are not necessarily indicative of operating results for the entire year.

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

Except to the extent updated or described below, the significant accounting policies set forth in Note 1 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2011, appropriately represent, in all material respects, the current status of accounting policies, and are incorporated herein by reference.
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 this 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.

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

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

 

 

 

 

 

 

 

 

 

 

September 30
2012

 

December 31
2011

 

Foreign currency translation

 

$

(193,900

)

$

(337,597

)

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

 

 

36,855

 

 

(2,633

)

Minimum pension liability

 

 

585,233

 

 

447,836

 

 

 

$

428,188

 

$

107,606

Summary Of Significant Accounting Policies (Tables)
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Summary Of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2012
Summary Of Significant Accounting Policies [Abstract]  
Components Of Accumulated Other Comprehensive Income, Net Of Tax

 

 

 

 

 

 

 

 

 

 

September 30
2012

 

December 31
2011

 

Foreign currency translation

 

$

(193,900

)

$

(337,597

)

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

 

 

36,855

 

 

(2,633

)

Minimum pension liability

 

 

585,233

 

 

447,836

 

 

 

$

428,188

 

$

107,606

Summary Of Significant Accounting Policies (Components Of Accumulated Other Comprehensive Income, Net Of Tax) (Details)
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Summary Of Significant Accounting Policies (Components Of Accumulated Other Comprehensive Income, Net Of Tax) (Details) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Summary Of Significant Accounting Policies [Abstract]    
Foreign currency translation $ (193,900) $ (337,597)
Unrealized gain (loss) on available-for-sale investments 36,855 (2,633)
Minimum pension liability 585,233 447,836
Accumulated other comprehensive income, net of tax $ 428,188 $ 107,606

Cash, Cash Equivalents And Investments
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Cash, Cash Equivalents And Investments
 9 Months Ended
Sep. 30, 2012
Cash, Cash Equivalents And Investments [Abstract]  
Cash, Cash Equivalents And Investments

NOTE 2 – CASH, CASH EQUIVALENTS AND INVESTMENTS

The following tables show the Company's cash, cash equivalents and available-for-sale securities' adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short and long term investments as of September 30, 2012 and December 31, 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2012

 

 

 

 

 

 

 

Amortized Cost

 

Gross
Unrealized
Gains

 

Gross
Unrealized
Losses

 

Fair Value

 

Cash & Cash
Equivalents

 

Short-Term
Investments

 

Long-Term
Investments

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

12,832,100

 

$

—

 

$

—

 

$

12,832,100

 

$

12,832,100

 

$

—

 

$

—

 

Money Market funds

 

 

1,932,299

 

 

 

 

 

 

 

 

1,932,299

 

 

1,932,299

 

 

 

 

 

 

 

Subtotal

 

 

14,764,399

 

 

—

 

 

—

 

 

14,764,399

 

 

14,764,399

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

12,064,679

 

 

4,720

 

 

(3,573

)

 

12,065,826

 

 

 

 

 

11,166,760

 

 

899,066

 

Corporate Notes/Bonds

 

 

6,868,754

 

 

27,956

 

 

(703

)

 

6,896,007

 

 

 

 

 

731,926

 

 

6,164,081

 

Municipal Notes/Bonds

 

 

1,002,769

 

 

 

 

 

(2,339

)

 

1,000,430

 

 

 

 

 

1,000,430

 

 

 

 

Commercial Paper

 

 

1,635,183

 

 

5,030

 

 

—

 

 

1,640,213

 

 

 

 

 

1,640,213

 

 

 

 

Subtotal

 

 

21,571,385

 

 

37,706

 

 

(6,615

)

 

21,602,476

 

 

—

 

 

14,539,329

 

 

7,063,147

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

36,335,784

 

$

37,706

 

$

(6,615

)

$

36,366,875

 

$

14,764,399

 

$

14,539,329

 

$

7,063,147

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

Gross
Unrealized
Gains

 

Gross
Unrealized
Losses

 

Fair Value

 

Cash & Cash
Equivalents

 

Short-Term
Investments

 

Long-Term
Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

21,685,829

 

$

—

 

$

—

 

$

21,685,829

 

$

21,685,829

 

$

—

 

$

—

 

Money Market funds

 

 

829,881

 

 

 

 

 

 

 

 

829,881

 

 

829,881

 

 

 

 

 

 

 

Subtotal

 

 

22,515,710

 

 

—

 

 

—

 

 

22,515,710

 

 

22,515,710

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

23,527,506

 

 

8,213

 

 

(16,608

)

 

23,519,111

 

 

 

 

 

18,635,601

 

 

4,883,510

 

Subtotal

 

 

23,527,506

 

 

8,213

 

 

(16,608

)

 

23,519,111

 

 

—

 

 

18,635,601

 

 

4,883,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

46,043,216

 

$

8,213

 

$

(16,608

)

$

46,034,821

 

$

22,515,710

 

$

18,635,601

 

$

4,883,510

 

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 September 30, 2012 were in a continuous unrealized loss position for less than twelve months and are not deemed to be other than temporarily impaired as of September 30, 2012.

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 September 30, 2012:

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

Estimated Market Value

 

 

Due within one year

 

$

14,533,198

 

$

14,539,329

 

Due after one year through five years

 

 

7,038,187

 

 

7,063,147

 

 

 

$

21,571,385

 

$

21,602,476

 

The Company did not recognize any gross realized gains and gross realized losses were immaterial during the nine-month periods ending September 30, 2012 and 2011, respectively. If the Company had realized gains or losses, they would be included within investment and other income in the accompanying consolidated results of operations.



Cash, Cash Equivalents And Investments (Tables)
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Cash, Cash Equivalents And Investments (Tables)
 9 Months Ended
Sep. 30, 2012
Cash, Cash Equivalents And Investments [Abstract]  
Schedule Of Cash And Available-For-Sale Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2012

 

 

 

 

 

 

 

Amortized Cost

 

Gross
Unrealized
Gains

 

Gross
Unrealized
Losses

 

Fair Value

 

Cash & Cash
Equivalents

 

Short-Term
Investments

 

Long-Term
Investments

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

12,832,100

 

$

—

 

$

—

 

$

12,832,100

 

$

12,832,100

 

$

—

 

$

—

 

Money Market funds

 

 

1,932,299

 

 

 

 

 

 

 

 

1,932,299

 

 

1,932,299

 

 

 

 

 

 

 

Subtotal

 

 

14,764,399

 

 

—

 

 

—

 

 

14,764,399

 

 

14,764,399

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

12,064,679

 

 

4,720

 

 

(3,573

)

 

12,065,826

 

 

 

 

 

11,166,760

 

 

899,066

 

Corporate Notes/Bonds

 

 

6,868,754

 

 

27,956

 

 

(703

)

 

6,896,007

 

 

 

 

 

731,926

 

 

6,164,081

 

Municipal Notes/Bonds

 

 

1,002,769

 

 

 

 

 

(2,339

)

 

1,000,430

 

 

 

 

 

1,000,430

 

 

 

 

Commercial Paper

 

 

1,635,183

 

 

5,030

 

 

—

 

 

1,640,213

 

 

 

 

 

1,640,213

 

 

 

 

Subtotal

 

 

21,571,385

 

 

37,706

 

 

(6,615

)

 

21,602,476

 

 

—

 

 

14,539,329

 

 

7,063,147

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

36,335,784

 

$

37,706

 

$

(6,615

)

$

36,366,875

 

$

14,764,399

 

$

14,539,329

 

$

7,063,147

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

Gross
Unrealized
Gains

 

Gross
Unrealized
Losses

 

Fair Value

 

Cash & Cash
Equivalents

 

Short-Term
Investments

 

Long-Term
Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

21,685,829

 

$

—

 

$

—

 

$

21,685,829

 

$

21,685,829

 

$

—

 

$

—

 

Money Market funds

 

 

829,881

 

 

 

 

 

 

 

 

829,881

 

 

829,881

 

 

 

 

 

 

 

Subtotal

 

 

22,515,710

 

 

—

 

 

—

 

 

22,515,710

 

 

22,515,710

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

23,527,506

 

 

8,213

 

 

(16,608

)

 

23,519,111

 

 

 

 

 

18,635,601

 

 

4,883,510

 

Subtotal

 

 

23,527,506

 

 

8,213

 

 

(16,608

)

 

23,519,111

 

 

—

 

 

18,635,601

 

 

4,883,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

46,043,216

 

$

8,213

 

$

(16,608

)

$

46,034,821

 

$

22,515,710

 

$

18,635,601

 

$

4,883,510

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

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

Estimated Market Value

 

 

Due within one year

 

$

14,533,198

 

$

14,539,329

 

Due after one year through five years

 

 

7,038,187

 

 

7,063,147

 

 

 

$

21,571,385

 

$

21,602,476

 

Cash, Cash Equivalents And Investments (Details) (Schedule Of Available-For-Sale Securities)
v0.0.0.0
Cash, Cash Equivalents And Investments (Details) (Schedule Of Available-For-Sale Securities) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Sep. 30, 2011
Dec. 31, 2010
Schedule of Available-for-sale Securities [Line Items]        
Amortized Cost $ 36,335,784 $ 46,043,216    
Gross Unrealized Gains 37,706 8,213    
Gross Unrealized Losses (6,615) (16,608)    
Fair Value 36,366,875 46,034,821    
Cash & Cash Equivalents 14,764,399 22,515,710 20,084,605 16,787,558
Short-Term Investments 14,539,329 18,635,601    
Long-Term Investments 7,063,147 4,883,510    
Cash And Cash Equivalents [Member]
        
Schedule of Available-for-sale Securities [Line Items]        
Amortized Cost 14,764,399 22,515,710    
Fair Value 14,764,399 22,515,710    
Cash & Cash Equivalents 14,764,399 22,515,710    
Cash And Cash Equivalents [Member] | Cash [Member]
        
Schedule of Available-for-sale Securities [Line Items]        
Amortized Cost 12,832,100 21,685,829    
Fair Value 12,832,100 21,685,829    
Cash & Cash Equivalents 12,832,100 21,685,829    
Cash And Cash Equivalents [Member] | Money Market Funds [Member]
        
Schedule of Available-for-sale Securities [Line Items]        
Amortized Cost 1,932,299 829,881    
Fair Value 1,932,299 829,881    
Cash & Cash Equivalents 1,932,299 829,881    
Investments [Member]
        
Schedule of Available-for-sale Securities [Line Items]        
Amortized Cost 21,571,385 23,527,506    
Gross Unrealized Gains 37,706 8,213    
Gross Unrealized Losses (6,615) (16,608)    
Fair Value 21,602,476 23,519,111    
Short-Term Investments 14,539,329 18,635,601    
Long-Term Investments 7,063,147 4,883,510    
Investments [Member] | Certificates Of Deposit [Member]
        
Schedule of Available-for-sale Securities [Line Items]        
Amortized Cost 12,064,679 23,527,506    
Gross Unrealized Gains 4,720 8,213    
Gross Unrealized Losses (3,573) (16,608)    
Fair Value 12,065,826 23,519,111    
Short-Term Investments 11,166,760 18,635,601    
Long-Term Investments 899,066 4,883,510    
Investments [Member] | Corporate Notes/Bonds [Member]
        
Schedule of Available-for-sale Securities [Line Items]        
Amortized Cost 6,868,754      
Gross Unrealized Gains 27,956      
Gross Unrealized Losses (703)      
Fair Value 6,896,007      
Short-Term Investments 731,926      
Long-Term Investments 6,164,081      
Investments [Member] | Municipal Notes/Bonds [Member]
        
Schedule of Available-for-sale Securities [Line Items]        
Amortized Cost 1,002,769      
Gross Unrealized Losses (2,339)      
Fair Value 1,000,430      
Short-Term Investments 1,000,430      
Investments [Member] | Commercial Paper [Member]
        
Schedule of Available-for-sale Securities [Line Items]        
Amortized Cost 1,635,183      
Gross Unrealized Gains 5,030      
Fair Value 1,640,213      
Short-Term Investments $ 1,640,213      

Cash, Cash Equivalents And Investments (Details) (Schedule Of Estimated Fair Value Of Available-For-Sale Securities)
v0.0.0.0
Cash, Cash Equivalents And Investments (Details) (Schedule Of Estimated Fair Value Of Available-For-Sale Securities) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]    
Fair Value $ 36,366,875 $ 46,034,821
Investments [Member]
    
Schedule of Available-for-sale Securities [Line Items]    
Due within on year, Amortized Cost 14,533,198  
Due after one year through five years, Amortized Cost 7,038,187  
Amortized Cost 21,571,385  
Due within one year, Estimated Market Value 14,539,329  
Due after one year through five years, Estimated Market Value 7,063,147  
Fair Value $ 21,602,476 $ 23,519,111

Stock-Based Compensation
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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2012
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

NOTE 3 - STOCK-BASED COMPENSATION

Employee Stock Purchase Plan

Under the Company's Employee Stock Purchase Plan ("ESPP"), employees are able to acquire shares of common stock at 90% of the price at the end of each current quarterly plan term. The most recent term ended September 30, 2012. The ESPP is considered compensatory under current rules. At September 30, 2012, after giving effect to the shares issued as of that date, 56,803 shares remain available for purchase under the ESPP.

2011 Executive Incentive Compensation Plan

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

During the first quarter of 2012, stock options covering 92,223 shares were awarded to key executive employees, which options expire seven years from the date of award and vest 25% each year beginning one year after the date of award. The Company also granted deferred stock awards of 94,242 shares to key employees during the first quarter under the Company's long-term incentive plan for performance over the 2012 to 2014 period. The actual number of shares of deferred stock, if any, that are earned by the respective employees will be determined based on achievement against cumulative performance goals for the three years ending December 31, 2014 and the shares earned will be issued in the first quarter of 2015 to those key employees still with the Company at that time. The Company also granted deferred stock awards of up to 9,456 shares to executive employees that could be earned under the Company's short-term incentive plan if actual revenue equaled or exceeded 150% of 2012 quarterly or annual revenue targets. The shares earned by the respective executive employees will be issued no later than the first quarter of 2013.

During the second quarter of 2012, the Company granted restricted stock units totaling 25,879 units to the Company's seven non-employee directors with the restricted stock units issued to each director having a value of $40,000 based on the closing price of the Company's stock on May 22, 2012. These restricted stock units vest after one year and are issued as stock after another year.

At September 30, 2012, 764,721 shares remained available for future issuance under the 2011 Incentive Plan.

Stock Option Plan for Directors

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

No options were granted under the Director Plan in 2011 or 2012. The Director Plan was amended as of May 19, 2011 to prohibit option grants in 2011 and future years to fulfill a commitment made by the Company in connection with seeking shareholder approval of the 2011 Incentive Plan at the 2011 Annual Meeting of Shareholders that, if shareholder approval was received, it would amend the Director Plan to prohibit any future option awards under that plan.

1992 Stock Plan

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

During 2011, prior to amending the Stock Plan to prohibit future awards, stock options were awarded covering 96,250 shares to key executive employees, which options expire seven years from the date of award and vest 25% each year beginning one year after the date of award.

In addition, during 2011, prior to amending the Stock Plan to prohibit future awards, key employees were granted deferred stock awards covering 16,092 shares tied to achievement against performance goals in 2010 under the Company's long term incentive plan. To the extent earned, the deferred stock will be issued in the first quarter of 2014 to key employees still employed by the Company at that time. The Company also granted deferred stock awards covering 77,588 shares to key employees under the Company's long term incentive plan tied to achievement against performance over the 2011 to 2013 period. The actual number of shares of deferred stock earned by the respective employees, if any, will be determined based on achievement against cumulative performance goals for the three years ending December 31, 2013 and the shares earned will be issued in the first quarter of 2014 to those key employees still employed by the Company at that time. During 2011, the Company also granted deferred stock awards of up to 12,156 shares to executive employees that could be earned under the Company's short-term incentive plan if actual revenue equaled or exceeded 150% of 2011 quarterly or annual revenue targets. The shares earned by the respective executive employees were issued in the first quarter of 2012.

At September 30, 2012, 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 155,948 shares reserved for issuance under the Stock Plan. The Company has not awarded stock options or deferred stock under this plan in 2012.

Changes in Stock Options Outstanding

The following table summarizes changes in the number of outstanding stock options under the 2011 Incentive Plan, the Director Plan and Stock Plan over the period December 31, 2011 to September 30, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

Options

 

Weighted average
exercise price
per share

 

Weighted average
remaining
contractual term

 

Outstanding – December 31, 2011

 

 

236,820

 

$

11.35

 

 

5.18 years

 

Awarded

 

 

92,223

 

 

13.10

 

 

 

 

Exercised

 

 

(12,000

)

 

7.13

 

 

 

 

Canceled

 

 

(5,890

)

 

10.58

 

 

 

 

Outstanding – September 30, 2012

 

 

311,153

 

 

12.05

 

 

5.24 years

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at September 30, 2012

 

 

162,550

 

$

10.71

 

 

4.49 years

 

Expected to vest at September 30, 2012

 

 

308,405

 

 

12.04

 

 

5.24 years

 

The aggregate intrinsic value of all options (the amount by which the market price of the stock on the last day of the period exceeded the market price of the stock on the date of grant) outstanding at September 30, 2012 was $192,000. The intrinsic value of all options exercised during the nine months ended September 30, 2012 was $59,000. Net cash proceeds from the exercise of all stock options were $86,000 and $73,000 for the nine months ended September 30, 2012 and 2011, respectively.

Changes in Deferred Stock Outstanding

The following table summarizes the changes in the number of deferred stock shares under the Stock Plan and 2011 Incentive Plan over the period December 31, 2011 to September 30, 2012:

 

 

 

 

 

 

 

 

 

 

Shares

 

Weighted Average
Grant Date
Fair Value

 

Outstanding – December 31, 2011

 

 

71,849

 

$

15.14

 

Granted

 

 

105,698

 

 

13.49

 

Vested

 

 

—

 

 

—

 

Canceled

 

 

(6,934

)

 

14.19

 

Outstanding – September 30, 2012

 

 

170,613

 

 

14.14

 

Compensation Expense

Share-based compensation expense recognized for the nine-month period ended September 30, 2012 was $367,000 before income taxes and $238,000 after income taxes. Share-based compensation expense recognized for the nine-month period ended September 30, 2011 was $413,000 before income taxes and $269,000 after income taxes. Unrecognized compensation expense for the Company's plans was $891,000 at September 30, 2012. Excess tax benefits from the exercise of stock options and issuance of restricted stock included in financing cash flows for the nine month periods ended September 30, 2012 and 2011 were $68,000 and $23,000, respectively. Share-based compensation expense is recorded as a part of selling, general and administrative expenses.


Stock-Based Compensation (Tables)
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Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2012
Stock-Based Compensation [Abstract]  
Schedule Of Changes In Number Of Outstanding Stock Options Under Director Plan And Stock Plan

 

 

 

 

 

 

 

 

 

 

 

 

 

Options

 

Weighted average
exercise price
per share

 

Weighted average
remaining
contractual term

 

Outstanding – December 31, 2011

 

 

236,820

 

$

11.35

 

 

5.18 years

 

Awarded

 

 

92,223

 

 

13.10

 

 

 

 

Exercised

 

 

(12,000

)

 

7.13

 

 

 

 

Canceled

 

 

(5,890

)

 

10.58

 

 

 

 

Outstanding – September 30, 2012

 

 

311,153

 

 

12.05

 

 

5.24 years

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at September 30, 2012

 

 

162,550

 

$

10.71

 

 

4.49 years

 

Expected to vest at September 30, 2012

 

 

308,405

 

 

12.04

 

 

5.24 years

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

 

 

 

 

 

 

 

 

 

 

Shares

 

Weighted Average
Grant Date
Fair Value

 

Outstanding – December 31, 2011

 

 

71,849

 

$

15.14

 

Granted

 

 

105,698

 

 

13.49

 

Vested

 

 

—

 

 

—

 

Canceled

 

 

(6,934

)

 

14.19

 

Outstanding – September 30, 2012

 

 

170,613

 

 

14.14

 

Stock-Based Compensation (Narrative) (Details)
v0.0.0.0
Stock-Based Compensation (Narrative) (Details) (USD $)
 9 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended 9 Months Ended 9 Months Ended 3 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Dec. 31, 2011
Mar. 31, 2012
Executive Incentive Compensation Plan [Member]
Sep. 30, 2012
Executive Incentive Compensation Plan [Member]
Mar. 28, 2011
Executive Incentive Compensation Plan [Member]
Mar. 31, 2012
1992 Stock Plan [Member]
Dec. 31, 2011
1992 Stock Plan [Member]
Sep. 30, 2012
1992 Stock Plan [Member]
Sep. 30, 2012
Stock Option Plan For Directors [Member]
Mar. 31, 2012
Key Executive Employees [Member]
Executive Incentive Compensation Plan [Member]
Mar. 31, 2012
Key Employees [Member]
Executive Incentive Compensation Plan [Member]
Dec. 31, 2011
Tied To Achievement Of 2010 Performance Goals [Member]
1992 Stock Plan [Member]
Dec. 31, 2011
Tied To Achievement Of 2011 To 2013 Performance Goals [Member]
1992 Stock Plan [Member]
Sep. 30, 2012
Employee Stock Purchase Plan [Member]
Jun. 30, 2012
Restricted Stock [Member]
Executive Incentive Compensation Plan [Member]
Jun. 30, 2012
Restricted Stock [Member]
Non-Employee Directors [Member]
Executive Incentive Compensation Plan [Member]
employee
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%    
Awards avaliable for grant         764,721       155,948           56,803    
Awards granted                               25,879  
Value of awards granted                               $ 40,000  
Share-based compensation arrangement by share-based payment, vesting period       1 year                          
Number of awards authorized           1,000,000                      
Number of employees receiving awards                                 7
Number of options granted       92,223       96,250                  
Options expiration period, years 5 years 2 months 27 days   5 years 2 months 5 days 7 years     7 years     10 years              
Percentage of options vest each year       25.00%       25.00%                  
Granted deferred stock awards to employees               12,156     9,456 94,242 16,092 77,588      
Minimum percentage of revenue growth required to earn deferred stock       150.00%       150.00%                  
Aggregate intrinsic value of options outstanding 192,000                                
Intrinsic value of all options exercised 59,000                                
Net cash proceeds from exercise of stock options 86,000 73,000                              
Share based compensation expense before income taxes 367,000 413,000                              
Share based compensation expense after income taxes 238,000 269,000                              
Unrecognized compensation expense 891,000                                
Excess tax benefits from exercise of stock options $ 68,000 $ 23,000                              

Stock-Based Compensation (Schedule Of Changes In Number Of Outstanding Stock Options Under Director Plan And Stock Plan) (Details)
v0.0.0.0
Stock-Based Compensation (Schedule Of Changes In Number Of Outstanding Stock Options Under Director Plan And Stock Plan) (Details) (USD $)
 9 Months Ended 12 Months Ended
Sep. 30, 2012
Dec. 31, 2011
Stock-Based Compensation [Abstract]    
Options, Outstanding - December 31, 2011 236,820  
Options, Awarded 92,223  
Options, Exercised (12,000)  
Options, Canceled (5,890)  
Options, Outstanding - September 30, 2012 311,153 236,820
Options, Exercisable at September 30, 2012 162,550  
Options, Expected to vest at September 30, 2012 308,405  
Weighted average exercise price per share, Outstanding - December 31, 2011 $ 11.35  
Weighted average exercise price per share, Awarded $ 13.10  
Weighted average exercise price per share, Exercised $ 7.13  
Weighted average exercise price per share, Canceled $ 10.58  
Weighted average exercise price per share, Outstanding - September 30, 2012 $ 12.05 $ 11.35
Weighted average exercise price per share, Exercisable at September 30, 2012 $ 10.71  
Weighted average exercise price per share, Expected to vest at September 30, 2012 $ 12.04  
Options, Outstanding - Weighted average remaining contractual term 5 years 2 months 27 days 5 years 2 months 5 days
Options, Exercisable at September 30, 2012 - Weighted average remaining contractual term 4 years 5 months 27 days  
Options, Expected to vest at September 30, 2012 - Weighted average remaining contractual term 5 years 2 months 27 days  

Stock-Based Compensation (Schedule Of Changes In The Number Of Deferred Stock Shares Under The Stock Plan And Incentive Plan) (Details)
v0.0.0.0
Stock-Based Compensation (Schedule Of Changes In The Number Of Deferred Stock Shares Under The Stock Plan And Incentive Plan) (Details) (Deferred Stock [Member], USD $)
 9 Months Ended
Sep. 30, 2012
Deferred Stock [Member]
  
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]  
Shares, Outstanding - December 31, 2011 71,849
Shares, Granted 105,698
Shares, Vested   
Shares, Canceled (6,934)
Shares, Outstanding - September 30, 2012 170,613
Weighted Average Grant Date Fair Value, Outstanding - December 31, 2011 $ 15.14
Weighted Average Grant Date Fair Value, Granted $ 13.49
Weighted Average Grant Date Fair Value, Vested   
Weighted Average Grant Date Fair Value, Canceled $ 14.19
Weighted Average Grant Date Fair Value, Outstanding - September 30, 2012 $ 14.14

Inventories
v0.0.0.0
Inventories
 9 Months Ended
Sep. 30, 2012
Inventories [Abstract]  
Inventories

NOTE 4 - INVENTORIES

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

 

 

 

 

 

 

 

 

 

 

September 30
2012

 

December 31
2011

 

Finished goods

 

$

15,487,629

 

$

14,010,071

 

Raw and processed materials

 

 

13,057,914

 

 

11,975,932

 

Total

 

$

28,545,543

 

$

25,986,003

 

Inventories (Tables)
v0.0.0.0
Inventories (Tables)
 9 Months Ended
Sep. 30, 2012
Inventories [Abstract]  
Schedule Of Inventories Priced At Lower Of First- In, First- Out Cost Or Market

 

 

 

 

 

 

 

 

 

 

September 30
2012

 

December 31
2011

 

Finished goods

 

$

15,487,629

 

$

14,010,071

 

Raw and processed materials

 

 

13,057,914

 

 

11,975,932

 

Total

 

$

28,545,543

 

$

25,986,003

 

Inventories (Schedule Of Inventories Priced At Lower Of First- In, First- Out Cost Or Market) (Details)
v0.0.0.0
Inventories (Schedule Of Inventories Priced At Lower Of First- In, First- Out Cost Or Market) (Details) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Inventories [Abstract]    
Finished goods $ 15,487,629 $ 14,010,071
Raw and processed materials 13,057,914 11,975,932
Total $ 28,545,543 $ 25,986,003

Goodwill And Other Intangible Assets
v0.0.0.0
Goodwill And Other Intangible Assets
 9 Months Ended
Sep. 30, 2012
Goodwill And Other Intangible Assets [Abstract]  
Goodwill And Other Intangible Assets

NOTE 5 – GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill is required to be evaluated for impairment on an annual basis and between annual tests upon the occurrence of certain events or circumstances. A two-step process is performed to analyze whether or not goodwill has been impaired. Step one is to test for potential impairment, and requires that the fair value of the reporting unit be compared to its book value including goodwill. If the fair value is higher than the book value, no impairment is recognized. If the fair value is lower than the book value, a second step must be performed. The second step is to measure the amount of impairment loss, if any, and requires that a hypothetical purchase price allocation be done to determine the implied fair value of goodwill. This fair value is then compared to the carrying value of goodwill. If the implied fair value is lower than the carrying value, an impairment adjustment must be recorded.

During our fiscal quarter ended June 30, 2011, based on greater than expected decline in actual and forecasted profitability of legacy products in our Suttle business unit, as well as, significant project delays that occurred related to Suttle's new technologies, we concluded that that these events and circumstances were indicators to require us to perform an interim goodwill impairment analysis of our Suttle business unit. This analysis included the determination of the reporting unit's fair value primarily using discounted cash flows modeling. Based on the step one and step two analysis, considering Suttle's reduced earnings and cash flow forecasts, the Company determined that Suttle's goodwill was fully impaired and recorded a goodwill impairment for the Suttle segment of $1,272,000.

The changes in the carrying amount of goodwill for the nine months ended September 30, 2012 and 2011 by segment is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2011

 

$

1,271,986

 

$

3,288,231

 

$

4,560,217

 

 

 

 

 

 

 

 

 

 

 

 

Impairment loss

 

 

(1,271,986

)

 

 

 

 

(1,271,986

)

Acquisition

 

 

 

 

 

2,702,340

 

 

2,702,340

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2011

 

$

—

 

$

5,990,571

 

$

5,990,571

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2012

 

$

—

 

$

5,990,571

 

$

5,990,571

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

 

 

$

(31,803

)

$

(31,803

)

 

 

 

 

 

 

 

 

 

 

 

September 30, 2012

 

$

—

 

$

5,958,768

 

$

5,958,768

 

 

 

 

 

 

 

 

 

 

 

 

Gross goodwill

 

$

1,271,986

 

$

5,958,768

 

$

7,230,754

 

Accumulated impairment loss

 

$

(1,271,986

)

 

 

 

 

(1,271,986

)

Balance at September 30, 2012

 

$

—

 

$

5,958,768

 

$

5,958,768

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2012

 

 

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Foreign Currency
Translation

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trademarks

 

 

81,785

 

 

(13,470

)

 

(963

)

 

67,352

 

Customer relationships

 

 

490,707

 

 

(56,575

)

 

(5,775

)

 

428,357

 

Technology

 

 

228,996

 

 

(52,804

)

 

(2,694

)

 

173,498

 

 

 

 

801,488

 

 

(122,849

)

 

(9,432

)

 

669,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Foreign Currency
Translation

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trademarks

 

 

81,785

 

 

(4,599

)

 

(4,520

)

 

72,666

 

Customer relationships

 

 

490,707

 

 

(19,316

)

 

(27,114

)

 

444,277

 

Technology

 

 

228,996

 

 

(18,029

)

 

(12,652

)

 

198,315

 

 

 

 

801,488

 

 

(41,944

)

 

(44,286

)

 

715,258

 

Amortization expense on these identifiable intangible assets was $77,000 in 2012. The amortization expense is included in selling, general and administrative expenses.


Goodwill And Other Intangible Assets (Tables)
v0.0.0.0
Goodwill And Other Intangible Assets (Tables)
 9 Months Ended
Sep. 30, 2012
Goodwill And Other Intangible Assets [Abstract]  
Schedule Of Changes In Carrying Value Of Goodwill

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2011

 

$

1,271,986

 

$

3,288,231

 

$

4,560,217

 

 

 

 

 

 

 

 

 

 

 

 

Impairment loss

 

 

(1,271,986

)

 

 

 

 

(1,271,986

)

Acquisition

 

 

 

 

 

2,702,340

 

 

2,702,340

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2011

 

$

—

 

$

5,990,571

 

$

5,990,571

 

 

 

 

 

 

 

 

 

 

 

 

January 1, 2012

 

$

—

 

$

5,990,571

 

$

5,990,571

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

 

 

$

(31,803

)

$

(31,803

)

 

 

 

 

 

 

 

 

 

 

 

September 30, 2012

 

$

—

 

$

5,958,768

 

$

5,958,768

 

 

 

 

 

 

 

 

 

 

 

 

Gross goodwill

 

$

1,271,986

 

$

5,958,768

 

$

7,230,754

 

Accumulated impairment loss

 

$

(1,271,986

)

 

 

 

 

(1,271,986

)

Balance at September 30, 2012

 

$

—

 

$

5,958,768

 

$

5,958,768

 
Schedule Of Finite-Lived Intangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2012

 

 

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Foreign Currency
Translation

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trademarks

 

 

81,785

 

 

(13,470

)

 

(963

)

 

67,352

 

Customer relationships

 

 

490,707

 

 

(56,575

)

 

(5,775

)

 

428,357

 

Technology

 

 

228,996

 

 

(52,804

)

 

(2,694

)

 

173,498

 

 

 

 

801,488

 

 

(122,849

)

 

(9,432

)

 

669,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Foreign Currency
Translation

 

Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trademarks

 

 

81,785

 

 

(4,599

)

 

(4,520

)

 

72,666

 

Customer relationships

 

 

490,707

 

 

(19,316

)

 

(27,114

)

 

444,277

 

Technology

 

 

228,996

 

 

(18,029

)

 

(12,652

)

 

198,315

 

 

 

 

801,488

 

 

(41,944

)

 

(44,286

)

 

715,258

 

Goodwill And Other Intangible Assets (Narrative) (Details)
v0.0.0.0
Goodwill And Other Intangible Assets (Narrative) (Details) (USD $)
 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Jun. 30, 2011
Suttle [Member]
Sep. 30, 2011
Suttle [Member]
Goodwill And Intangible Assets [Line Items]            
Goodwill impairment $ 0 $ 0 $ 0 $ 1,271,986 $ 1,272,000 $ 1,271,986
Amortization expense     $ 77,000      

Goodwill And Other Intangible Assets (Schedule Of Changes In Carrying Value Of Goodwill) (Details)
v0.0.0.0
Goodwill And Other Intangible Assets (Schedule Of Changes In Carrying Value Of Goodwill) (Details) (USD $)
 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Jun. 30, 2011
Suttle [Member]
Sep. 30, 2011
Suttle [Member]
Sep. 30, 2012
Suttle [Member]
Sep. 30, 2012
Transition Networks [Member]
Sep. 30, 2011
Transition Networks [Member]
Goodwill [Line Items]                  
Goodwill, beginning balance     $ 5,990,571 $ 4,560,217   $ 1,271,986   $ 5,990,571 $ 3,288,231
Impairment loss 0 0 0 (1,271,986) (1,272,000) (1,271,986)      
Acquisition       2,702,340         2,702,340
Foreign currency translation     (31,803)         (31,803)  
Goodwill, ending balance 5,958,768 5,990,571 5,958,768 5,990,571       5,958,768 5,990,571
Gross goodwill 7,230,754   7,230,754       1,271,986 5,958,768  
Accumulated impairment loss (1,271,986)   (1,271,986)       (1,271,986)    
Balance at September 30, 2012 $ 5,958,768 $ 5,990,571 $ 5,958,768 $ 5,990,571       $ 5,958,768 $ 5,990,571

Goodwill And Other Intangible Assets (Schedule Of Finite-Lived Intangible Assets) (Details)
v0.0.0.0
Goodwill And Other Intangible Assets (Schedule Of Finite-Lived Intangible Assets) (Details) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 801,488 $ 801,488
Accumulated Amortization (122,849) (41,944)
Foreign Currency Translation (9,432) (44,286)
Net 669,207 715,258
Trademarks [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 81,785 81,785
Accumulated Amortization (13,470) (4,599)
Foreign Currency Translation (963) (4,520)
Net 67,352 72,666
Customer Relationships [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 490,707 490,707
Accumulated Amortization (56,575) (19,316)
Foreign Currency Translation (5,775) (27,114)
Net 428,357 444,277
Technology [Member]
    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 228,996 228,996
Accumulated Amortization (52,804) (18,029)
Foreign Currency Translation (2,694) (12,652)
Net $ 173,498 $ 198,315

Warranty
v0.0.0.0
Warranty
 9 Months Ended
Sep. 30, 2012
Warranty [Abstract]  
Warranty

NOTE 6 – WARRANTY

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

The following table presents the changes in the Company's warranty liability for the nine-month periods ended September 30, 2012 and 2011, respectively, the majority of which relates to a five-year obligation to provide for potential future liabilities for network equipment sales.

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

Beginning Balance

 

$

634,000

 

$

616,000

 

Actual warranty costs paid

 

 

(202,000

)

 

(180,000

)

Amounts charged to expense

 

 

183,000

 

 

197,000

 

Ending balance

 

$

615,000

 

$

633,000

 

Warranty (Tables)
v0.0.0.0
Warranty (Tables)
 9 Months Ended
Sep. 30, 2012
Warranty [Abstract]  
Schedule Of Warranty

 

 

 

 

 

 

 

 

 

 

2012

 

2011

 

Beginning Balance

 

$

634,000

 

$

616,000

 

Actual warranty costs paid

 

 

(202,000

)

 

(180,000

)

Amounts charged to expense

 

 

183,000

 

 

197,000

 

Ending balance

 

$

615,000

 

$

633,000

 

Warranty (Schedule Of Warranty) (Details)
v0.0.0.0
Warranty (Schedule Of Warranty) (Details) (USD $)
 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Warranty [Abstract]    
Beginning Balance $ 634,000 $ 616,000
Actual warranty costs paid (202,000) (180,000)
Amounts charged to expense 183,000 197,000
Ending balance $ 615,000 $ 633,000
Warranty liability period 5 years  

Contingencies
v0.0.0.0
Contingencies
 9 Months Ended
Sep. 30, 2012
Contingencies [Abstract]  
Contingencies

NOTE 7 – CONTINGENCIES

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


Income Taxes
v0.0.0.0
Income Taxes
 9 Months Ended
Sep. 30, 2012
Income Taxes [Abstract]  
Income Taxes

NOTE 8 – INCOME TAXES

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

At September 30, 2012 there was $246,000 of net uncertain tax benefit positions that would reduce the effective income tax rate if recognized. The Company records interest and penalties related to income taxes as income tax expense in the Condensed Consolidated Statements of Income.

The Company is subject to U.S. federal income tax as well as income tax of multiple state and foreign jurisdictions. The tax years 2009-2011 remain open to examination by the Internal Revenue Service and the years 2008-2011 remain open to examination by various state tax departments. The tax years from 2009-2011 remain open in Costa Rica.

The Company's effective income tax rate was 33% for the first nine months of 2012. The effective tax rate differs from the federal tax rate of 35% due to state income taxes, return to provision adjustments, foreign losses not deductible for U.S. income tax purposes, provisions for interest charges, settlement of uncertain income tax positions, the release of valuation allowance placed on foreign net operating losses, the effect of operations conducted in lower foreign tax rate jurisdictions and the release of contingent consideration from the Company's 2011 acquisition. The effect of the foreign operations is an overall rate increase of approximately 0.3% for the nine months ended September 30, 2012. There were no additional uncertain tax positions identified in the third quarter of 2012. The Company's effective income tax rate for the nine months ended September 30, 2011 was 42%, and differed from the federal tax rate due to state income taxes, foreign losses not deductible for U.S. income tax purposes, provisions for interest charges, settlement of uncertain tax positions and goodwill impairment not deductible for U.S. income tax purposes.


Income Taxes (Details)
v0.0.0.0
Income Taxes (Details) (USD $)
 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Income Taxes [Abstract]    
Uncertain tax benefit positions that would reduce the effective income tax rate if recognized $ 246,000  
Effective income tax rate 33.00% 42.00%
Federal tax rate 35.00%  
Increase in income tax rate due to the effect of foreign operations 0.30%  

Segment Information
v0.0.0.0
Segment Information
 9 Months Ended
Sep. 30, 2012
Segment Information [Abstract]  
Segment Information

NOTE 9 – SEGMENT INFORMATION

Effective January 1, 2012, the Company realigned its business operations. As a result of the realignment, the Company consolidated the Austin Taylor operations within its Suttle business unit. Following this realignment, the Company classifies its businesses into three segments as follows:

 

 

 

 

•

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

 

•

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

 

•

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

Our non-allocated corporate general and administrative expenses are categorized as "Other" in the Company's segment reporting. Management has chosen to organize the enterprise and disclose reportable segments based on our products and services. There are no material inter-segment revenues. To conform to the 2012 presentation, the Company has reclassified 2011 segment information to present the Austin Taylor operations within Suttle's business unit.

Information concerning the Company's continuing operations in the various segments for the three and nine month periods ended September 30, 2012 and 2011 is as follows:

SEGMENT INFORMATION - THREE MONTHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Three months ended September 30, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

12,242,334

 

$

13,647,047

 

$

2,798,306

 

$

—

 

$

28,687,687

 

Cost of sales

 

 

8,915,366

 

 

6,983,935

 

 

2,028,513

 

 

—

 

$

17,927,814

 

Gross profit

 

 

3,326,968

 

 

6,663,112

 

 

769,793

 

 

—

 

 

10,759,873

 

Selling, general and
administrative expenses

 

 

2,318,165

 

$

5,365,325

 

 

564,401

 

 

805,273

 

$

9,053,164

 

Operating income (loss)

 

$

1,008,803

 

$

1,297,787

 

$

205,392

 

$

(805,273

)

$

1,706,709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

216,232

 

$

198,411

 

$

25,798

 

$

72,192

 

$

512,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

292,674

 

$

117,695

 

$

9,545

 

$

414,399

 

$

834,313

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets at September 30, 2012

 

$

28,126,173

 

$

36,413,632

 

$

2,562,750

 

$

44,181,073

 

$

111,283,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Three months ended September 30, 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

10,538,277

 

$

27,573,925

 

$

3,872,368

 

$

—

 

$

41,984,570

 

Cost of sales

 

 

8,179,936

 

 

14,845,981

 

 

2,403,383

 

 

—

 

 

25,429,300

 

Gross profit

 

 

2,358,341

 

 

12,727,944

 

 

1,468,985

 

 

—

 

 

16,555,270

 

Selling, general and
administrative expenses

 

 

2,127,711

 

 

6,017,085

 

 

522,104

 

 

1,404,508

 

 

10,071,408

 

Goodwill impairment

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Operating income (loss)

 

$

230,630

 

$

6,710,859

 

$

946,881

 

$

(1,404,508

)

$

6,483,862

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

257,965

 

$

184,712

 

$

23,621

 

$

70,984

 

$

537,282

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

284,337

 

$

348,129

 

$

4,572

 

$

29,942

 

$

666,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets at September 30, 2011

 

$

24,838,494

 

$

38,084,903

 

$

2,616,360

 

$

51,173,848

 

$

116,713,605

 

 

SEGMENT INFORMATION - NINE MONTHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Nine months ended September 30, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

33,167,194

 

$

40,614,746

 

$

4,710,926

 

$

—

 

$

78,492,866

 

Cost of sales

 

 

24,441,885

 

 

19,340,790

 

 

3,345,808

 

 

—

 

$

47,128,483

 

Gross profit

 

 

8,725,309

 

 

21,273,956

 

 

1,365,118

 

 

—

 

 

31,364,383

 

Selling, general and
administrative expenses

 

 

6,891,833

 

 

16,557,399

 

 

1,678,516

 

 

3,041,879

 

$

28,169,627

 

Operating income (loss)

 

$

1,833,476

 

$

4,716,557

 

$

(313,398

)

$

(3,041,879

)

$

3,194,756

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

699,893

 

$

638,907

 

$

80,725

 

$

217,362

 

$

1,636,887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

958,262

 

$

277,340

 

$

24,236

 

$

787,933

 

$

2,047,771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Nine months ended September 30, 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

30,275,173

 

$

76,507,810

 

$

11,654,074

 

$

—

 

$

118,437,057

 

Cost of sales

 

 

23,152,198

 

 

40,265,114

 

 

6,680,401

 

 

—

 

$

70,097,713

 

Gross profit

 

 

7,122,975

 

 

36,242,696

 

 

4,973,673

 

 

—

 

 

48,339,344

 

Selling, general and
administrative expenses

 

 

6,170,610

 

 

17,246,437

 

 

1,523,049

 

 

4,249,282

 

$

29,189,378

 

Goodwill impairment

 

 

1,271,986

 

 

 

 

 

—

 

 

 

 

 

1,271,986

 

Operating income (loss)

 

$

(319,621

)

$

18,996,259

 

$

3,450,624

 

$

(4,249,282

)

$

17,877,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

743,759

 

$

526,474

 

$

80,927

 

$

220,263

 

$

1,571,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

881,726

 

$

699,235

 

$

15,947

 

$

38,985

 

$

1,635,893

 

Segment Information (Tables)
v0.0.0.0
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2012
Segment Information [Abstract]  
Schedule Of Segment Information

SEGMENT INFORMATION - THREE MONTHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Three months ended September 30, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

12,242,334

 

$

13,647,047

 

$

2,798,306

 

$

—

 

$

28,687,687

 

Cost of sales

 

 

8,915,366

 

 

6,983,935

 

 

2,028,513

 

 

—

 

$

17,927,814

 

Gross profit

 

 

3,326,968

 

 

6,663,112

 

 

769,793

 

 

—

 

 

10,759,873

 

Selling, general and
administrative expenses

 

 

2,318,165

 

$

5,365,325

 

 

564,401

 

 

805,273

 

$

9,053,164

 

Operating income (loss)

 

$

1,008,803

 

$

1,297,787

 

$

205,392

 

$

(805,273

)

$

1,706,709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

216,232

 

$

198,411

 

$

25,798

 

$

72,192

 

$

512,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

292,674

 

$

117,695

 

$

9,545

 

$

414,399

 

$

834,313

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets at September 30, 2012

 

$

28,126,173

 

$

36,413,632

 

$

2,562,750

 

$

44,181,073

 

$

111,283,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Three months ended September 30, 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

10,538,277

 

$

27,573,925

 

$

3,872,368

 

$

—

 

$

41,984,570

 

Cost of sales

 

 

8,179,936

 

 

14,845,981

 

 

2,403,383

 

 

—

 

 

25,429,300

 

Gross profit

 

 

2,358,341

 

 

12,727,944

 

 

1,468,985

 

 

—

 

 

16,555,270

 

Selling, general and
administrative expenses

 

 

2,127,711

 

 

6,017,085

 

 

522,104

 

 

1,404,508

 

 

10,071,408

 

Goodwill impairment

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Operating income (loss)

 

$

230,630

 

$

6,710,859

 

$

946,881

 

$

(1,404,508

)

$

6,483,862

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

257,965

 

$

184,712

 

$

23,621

 

$

70,984

 

$

537,282

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

284,337

 

$

348,129

 

$

4,572

 

$

29,942

 

$

666,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets at September 30, 2011

 

$

24,838,494

 

$

38,084,903

 

$

2,616,360

 

$

51,173,848

 

$

116,713,605

 

 

SEGMENT INFORMATION - NINE MONTHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Nine months ended September 30, 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

33,167,194

 

$

40,614,746

 

$

4,710,926

 

$

—

 

$

78,492,866

 

Cost of sales

 

 

24,441,885

 

 

19,340,790

 

 

3,345,808

 

 

—

 

$

47,128,483

 

Gross profit

 

 

8,725,309

 

 

21,273,956

 

 

1,365,118

 

 

—

 

 

31,364,383

 

Selling, general and
administrative expenses

 

 

6,891,833

 

 

16,557,399

 

 

1,678,516

 

 

3,041,879

 

$

28,169,627

 

Operating income (loss)

 

$

1,833,476

 

$

4,716,557

 

$

(313,398

)

$

(3,041,879

)

$

3,194,756

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

699,893

 

$

638,907

 

$

80,725

 

$

217,362

 

$

1,636,887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

958,262

 

$

277,340

 

$

24,236

 

$

787,933

 

$

2,047,771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suttle

 

Transition
Networks

 

JDL
Technologies

 

Other

 

Total

 

Nine months ended September 30, 2011:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

30,275,173

 

$

76,507,810

 

$

11,654,074

 

$

—

 

$

118,437,057

 

Cost of sales

 

 

23,152,198

 

 

40,265,114

 

 

6,680,401

 

 

—

 

$

70,097,713

 

Gross profit

 

 

7,122,975

 

 

36,242,696

 

 

4,973,673

 

 

—

 

 

48,339,344

 

Selling, general and
administrative expenses

 

 

6,170,610

 

 

17,246,437

 

 

1,523,049

 

 

4,249,282

 

$

29,189,378

 

Goodwill impairment

 

 

1,271,986

 

 

 

 

 

—

 

 

 

 

 

1,271,986

 

Operating income (loss)

 

$

(319,621

)

$

18,996,259

 

$

3,450,624

 

$

(4,249,282

)

$

17,877,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

743,759

 

$

526,474

 

$

80,927

 

$

220,263

 

$

1,571,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

881,726

 

$

699,235

 

$

15,947

 

$

38,985

 

$

1,635,893

 

Segment Information (Schedule Of Segment Information) (Details)
v0.0.0.0
Segment Information (Schedule Of Segment Information) (Details) (USD $)
 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
segment
Sep. 30, 2011
Dec. 31, 2011
Sep. 30, 2012
Suttle [Member]
Sep. 30, 2011
Suttle [Member]
Jun. 30, 2011
Suttle [Member]
Sep. 30, 2012
Suttle [Member]
Sep. 30, 2011
Suttle [Member]
Sep. 30, 2012
Transition Networks [Member]
Sep. 30, 2011
Transition Networks [Member]
Sep. 30, 2012
Transition Networks [Member]
Sep. 30, 2011
Transition Networks [Member]
Sep. 30, 2012
JDL Technologies [Member]
Sep. 30, 2011
JDL Technologies [Member]
Sep. 30, 2012
JDL Technologies [Member]
Sep. 30, 2011
JDL Technologies [Member]
Sep. 30, 2012
Other [Member]
Sep. 30, 2011
Other [Member]
Sep. 30, 2012
Other [Member]
Sep. 30, 2011
Other [Member]
Segment Reporting Information [Line Items]                                            
Number of segments     3                                      
Sales $ 28,687,687 $ 41,984,570 $ 78,492,866 $ 118,437,057   $ 12,242,334 $ 10,538,277   $ 33,167,194 $ 30,275,173 $ 13,647,047 $ 27,573,925 $ 40,614,746 $ 76,507,810 $ 2,798,306 $ 3,872,368 $ 4,710,926 $ 11,654,074        
Cost of sales 17,927,814 25,429,300 47,128,483 70,097,713   8,915,366 8,179,936   24,441,885 23,152,198 6,983,935 14,845,981 19,340,790 40,265,114 2,028,513 2,403,383 3,345,808 6,680,401        
Gross profit 10,759,873 16,555,270 31,364,383 48,339,344   3,326,968 2,358,341   8,725,309 7,122,975 6,663,112 12,727,944 21,273,956 36,242,696 769,793 1,468,985 1,365,118 4,973,673        
Selling, general and administrative expenses 9,053,164 10,071,408 28,169,627 29,189,378   2,318,165 2,127,711   6,891,833 6,170,610 5,365,325 6,017,085 16,557,399 17,246,437 564,401 522,104 1,678,516 1,523,049 805,273 1,404,508 3,041,879 4,249,282
Goodwill impairment 0 0 0 1,271,986       1,272,000   1,271,986                        
Operating income 1,706,709 6,483,862 3,194,756 17,877,980   1,008,803 230,630   1,833,476 (319,621) 1,297,787 6,710,859 4,716,557 18,996,259 205,392 946,881 (313,398) 3,450,624 (805,273) (1,404,508) (3,041,879) (4,249,282)
Depreciation and amortization 512,633 537,282 1,636,887 1,571,423   216,232 257,965   699,893 743,759 198,411 184,712 638,907 526,474 25,798 23,621 80,725 80,927 72,192 70,984 217,362 220,263
Capital expenditures 834,313 666,980 2,047,771 1,635,893   292,674 284,337   958,262 881,726 117,695 348,129 277,340 699,235 9,545 4,572 24,236 15,947 414,399 29,942 787,933 38,985
Assets $ 111,283,628 $ 116,713,605 $ 111,283,628 $ 116,713,605 $ 116,658,916 $ 28,126,173 $ 24,838,494   $ 28,126,173 $ 24,838,494 $ 36,413,632 $ 38,084,903 $ 36,413,632 $ 38,084,903 $ 2,562,750 $ 2,616,360 $ 2,562,750 $ 2,616,360 $ 44,181,073 $ 51,173,848 $ 44,181,073 $ 51,173,848

Pensions
v0.0.0.0
Pensions
 9 Months Ended
Sep. 30, 2012
Pensions [Abstract]  
Pensions

NOTE 10 – PENSIONS

The Company's U.K. based subsidiary Austin Taylor maintains defined benefit pension plans that cover seven active employees. The Company does not provide any other post-retirement benefits to its employees. Components of net periodic benefit cost of the pension plans for the three and nine-months ended September 30, 2012 and 2011 were:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months

 

Nine months

 

 

 

2012

 

2011

 

2012

 

2011

 

Service Cost

 

$

10,000

 

$

11,000

 

$

28,000

 

$

35,000

 

Interest Cost

 

 

67,000

 

 

62,000

 

 

188,000

 

 

196,000

 

Expected return on plan assets

 

 

(75,000

)

 

(58,000

)

 

(210,000

)

 

(185,000

)

Amortization of prior service cost

 

 

13,000

 

 

—

 

 

36,000

 

 

—

 

 

 

$

15,000

 

$

15,000

 

$

42,000

 

$

46,000

 

Pensions (Tables)
v0.0.0.0
Pensions (Tables)
 9 Months Ended
Sep. 30, 2012
Pensions [Abstract]  
Schedule Of Components Of Net Periodic Benefit Cost Of Pension Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months

 

Nine months

 

 

 

2012

 

2011

 

2012

 

2011

 

Service Cost

 

$

10,000

 

$

11,000

 

$

28,000

 

$

35,000

 

Interest Cost

 

 

67,000

 

 

62,000

 

 

188,000

 

 

196,000

 

Expected return on plan assets

 

 

(75,000

)

 

(58,000

)

 

(210,000

)

 

(185,000

)

Amortization of prior service cost

 

 

13,000

 

 

—

 

 

36,000

 

 

—

 

 

 

$

15,000

 

$

15,000

 

$

42,000

 

$

46,000

 

Pensions (Schedule Of Components Of Net Periodic Benefit Cost Of Pension Plans) (Details)
v0.0.0.0
Pensions (Schedule Of Components Of Net Periodic Benefit Cost Of Pension Plans) (Details) (USD $)
 3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Pensions [Abstract]        
Service cost $ 10,000 $ 11,000 $ 28,000 $ 35,000
Interest cost 67,000 62,000 188,000 196,000
Expected return on plan assets (75,000) (58,000) (210,000) (185,000)
Amortization of prior service cost 13,000   36,000  
Total net periodic benefit cost $ 15,000 $ 15,000 $ 42,000 $ 46,000

Net Income Per Share
v0.0.0.0
Net Income Per Share
 9 Months Ended
Sep. 30, 2012
Net Income Per Share [Abstract]  
Net Income Per Share

NOTE 11 – NET INCOME PER SHARE

Basic net income per common share is based on the weighted average number of common shares outstanding during each year. Diluted net income per common share takes into effect the dilutive effect of potential common shares outstanding. The Company's only potential common shares outstanding are stock options and shares associated with the long-term incentive compensation plans, which resulted in a dilutive effect of 12,065 and 22,952 shares for the three and nine month periods ended September 30, 2012. The dilutive effect of stock options for the three and nine month periods ended September 30, 2011 was 69,562 shares and 57,210 shares, respectively. The Company calculates the dilutive effect of outstanding options using the treasury stock method. Options totaling 80,290 were excluded from the calculation of diluted earnings per share for the three and nine-months ended September 30, 2012 because the exercise price was greater than the average market price of common stock during the period and deferred stock awards totaling 150,748 shares were not included for the three and nine-months ended September 30, 2012 because of unmet performance conditions. All options were included for the three and nine-month periods ended September 30, 2011 because the exercise price was greater than the average market price of common stock during the period and deferred stock awards totaling 78,943 shares were not included for the three and nine-month periods ended September 30, 2011 because of unmet performance conditions.

Net Income Per Share (Details)
v0.0.0.0
Net Income Per Share (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Net Income Per Share [Line Items]        
Dilutive effect of outstanding stock options and shares associated with long-term incentive compensation plans 12,065 69,562 22,952 57,210
Employee Stock Option [Member]
        
Net Income Per Share [Line Items]        
Deferred stock awards excluded from calculation of earnings per share 80,290 0 80,290 0
Deferred Stock [Member]
        
Net Income Per Share [Line Items]        
Deferred stock awards excluded from calculation of earnings per share 150,748 78,943 150,748 78,943

Fair Value Measurements
v0.0.0.0
Fair Value Measurements
 9 Months Ended
Sep. 30, 2012
Fair Value Measurements [Abstract]  
Fair Value Measurements

NOTE 12 – FAIR VALUE MEASUREMENTS

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

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

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

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

Financial assets and liabilities measured at fair value as of September 30, 2012 and December 31, 2011, are summarized below:

 

September 30, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

 

$

1,932,299

 

$

—

 

$

—

 

$

1,932,299

 

Subtotal

 

 

1,932,299

 

 

—

 

 

—

 

 

1,932,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

—

 

 

11,166,760

 

 

—

 

 

11,166,760

 

Corporate Notes/Bonds

 

 

 

 

 

731,926

 

 

 

 

 

731,926

 

Municipal Notes/Bonds

 

 

—

 

 

1,000,430

 

 

—

 

 

1,000,430

 

Commercial Paper

 

 

—

 

 

1,640,213

 

 

—

 

 

1,640,213

 

Subtotal

 

 

—

 

 

14,539,329

 

 

—

 

 

14,539,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

—

 

 

899,066

 

 

—

 

 

899,066

 

Corporate Notes/Bonds

 

 

—

 

 

6,164,081

 

 

—

 

 

6,164,081

 

Subtotal

 

 

—

 

 

7,063,147

 

 

—

 

 

7,063,147

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued Consideration

 

 

 

 

 

 

 

 

(535,378

)

 

(535,378

)

Subtotal

 

 

—

 

 

—

 

 

(535,378

)

 

(535,378

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,932,299

 

$

21,602,476

 

$

(535,378

)

$

22,999,397

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

 

$

829,881

 

$

—

 

$

—

 

$

829,881

 

Subtotal

 

 

829,881

 

 

—

 

 

—

 

 

829,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

—

 

 

18,635,601

 

 

—

 

 

18,635,601

 

Subtotal

 

 

—

 

 

18,635,601

 

 

—

 

 

18,635,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

—

 

 

4,883,510

 

 

—

 

 

4,883,510

 

Subtotal

 

 

—

 

 

4,883,510

 

 

—

 

 

4,883,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued Consideration

 

 

 

 

 

 

 

 

(1,002,623

)

 

(1,002,623

)

Subtotal

 

 

—

 

 

—

 

 

(1,002,623

)

 

(1,002,623

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

829,881

 

$

23,519,111

 

$

(1,002,623

)

$

23,346,369

 

The estimated fair value of remaining contingent consideration as of September 30, 2012 was $535,378, 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 the nine months was due to $357,879 in payments, $52,278 in foreign currency losses, and $161,644 in gains included in operating income. The gains were the result of a change in future assumptions related to the contingent consideration.

There were no transfers between levels during the nine months ended September 30, 2012.


Fair Value Measurements (Tables)
v0.0.0.0
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2012
Fair Value Measurements [Abstract]  
Schedule Of Financial Assets And Liabilities Measured At Fair Value

 

September 30, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

 

$

1,932,299

 

$

—

 

$

—

 

$

1,932,299

 

Subtotal

 

 

1,932,299

 

 

—

 

 

—

 

 

1,932,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

—

 

 

11,166,760

 

 

—

 

 

11,166,760

 

Corporate Notes/Bonds

 

 

 

 

 

731,926

 

 

 

 

 

731,926

 

Municipal Notes/Bonds

 

 

—

 

 

1,000,430

 

 

—

 

 

1,000,430

 

Commercial Paper

 

 

—

 

 

1,640,213

 

 

—

 

 

1,640,213

 

Subtotal

 

 

—

 

 

14,539,329

 

 

—

 

 

14,539,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

—

 

 

899,066

 

 

—

 

 

899,066

 

Corporate Notes/Bonds

 

 

—

 

 

6,164,081

 

 

—

 

 

6,164,081

 

Subtotal

 

 

—

 

 

7,063,147

 

 

—

 

 

7,063,147

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued Consideration

 

 

 

 

 

 

 

 

(535,378

)

 

(535,378

)

Subtotal

 

 

—

 

 

—

 

 

(535,378

)

 

(535,378

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,932,299

 

$

21,602,476

 

$

(535,378

)

$

22,999,397

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market funds

 

$

829,881

 

$

—

 

$

—

 

$

829,881

 

Subtotal

 

 

829,881

 

 

—

 

 

—

 

 

829,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

—

 

 

18,635,601

 

 

—

 

 

18,635,601

 

Subtotal

 

 

—

 

 

18,635,601

 

 

—

 

 

18,635,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Certificates of deposit

 

 

—

 

 

4,883,510

 

 

—

 

 

4,883,510

 

Subtotal

 

 

—

 

 

4,883,510

 

 

—

 

 

4,883,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued Consideration

 

 

 

 

 

 

 

 

(1,002,623

)

 

(1,002,623

)

Subtotal

 

 

—

 

 

—

 

 

(1,002,623

)

 

(1,002,623

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

829,881

 

$

23,519,111

 

$

(1,002,623

)

$

23,346,369

 

Fair Value Measurements (Narrative) (Details)
v0.0.0.0
Fair Value Measurements (Narrative) (Details) (USD $)
 9 Months Ended
Sep. 30, 2012
Dec. 31, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair value of accrued consideration $ 535,378 $ 1,002,623
Reduction to contingent consideration due to payments 357,879  
Increase to contingent consideration due to foreign currency losses 52,278  
Reduction to contingent consideration due to gains recorded in operating income 161,644  
Accrued Consideration [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair value of accrued consideration $ 535,378 $ 1,002,623

Fair Value Measurements (Schedule Of Financial Assets And Liabilities Measured At Fair Value) (Details)
v0.0.0.0
Fair Value Measurements (Schedule Of Financial Assets And Liabilities Measured At Fair Value) (Details) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents, fair value $ 1,932,299 $ 829,881
Current Liabilities, fair value (535,378) (1,002,623)
Assets (Liabilities) Net, fair value 22,999,397 23,346,369
Level 1 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents, fair value 1,932,299 829,881
Assets (Liabilities) Net, fair value 1,932,299 829,881
Level 2 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets (Liabilities) Net, fair value 21,602,476 23,519,111
Level 3 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Current Liabilities, fair value (535,378) (1,002,623)
Assets (Liabilities) Net, fair value (535,378) (1,002,623)
Money Market Funds [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents, fair value 1,932,299 829,881
Money Market Funds [Member] | Level 1 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents, fair value 1,932,299 829,881
Accrued Consideration [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Current Liabilities, fair value (535,378) (1,002,623)
Accrued Consideration [Member] | Level 3 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Current Liabilities, fair value (535,378) (1,002,623)
Short-Term Investments [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 14,539,329 18,635,601
Short-Term Investments [Member] | Level 2 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 14,539,329 18,635,601
Short-Term Investments [Member] | Certificates Of Deposit [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 11,166,760 18,635,601
Short-Term Investments [Member] | Certificates Of Deposit [Member] | Level 2 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 11,166,760 18,635,601
Short-Term Investments [Member] | Corporate Notes/Bonds [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 731,926  
Short-Term Investments [Member] | Corporate Notes/Bonds [Member] | Level 2 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 731,926  
Short-Term Investments [Member] | Municipal Notes/Bonds [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 1,000,430  
Short-Term Investments [Member] | Municipal Notes/Bonds [Member] | Level 2 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 1,000,430  
Short-Term Investments [Member] | Commercial Paper [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 1,640,213  
Short-Term Investments [Member] | Commercial Paper [Member] | Level 2 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 1,640,213  
Long-Term Investments [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 7,063,147 4,883,510
Long-Term Investments [Member] | Level 2 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 7,063,147 4,883,510
Long-Term Investments [Member] | Certificates Of Deposit [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 899,066 4,883,510
Long-Term Investments [Member] | Certificates Of Deposit [Member] | Level 2 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 899,066 4,883,510
Long-Term Investments [Member] | Corporate Notes/Bonds [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value 6,164,081  
Long-Term Investments [Member] | Corporate Notes/Bonds [Member] | Level 2 [Member]
    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investments, fair value $ 6,164,081  

Subsequent Events
v0.0.0.0
Subsequent Events
 9 Months Ended
Sep. 30, 2012
Subsequent Events [Abstract]  
Subsequent Events

NOTE 13 – 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.