2018 Q1 Form 10-Q Financial Statement

#000072050018000026 Filed on May 10, 2018

View on sec.gov

Income Statement

Concept 2018 Q1 2017 Q1
Revenue $32.78M $32.94M
YoY Change -0.49% 46.53%
Cost Of Revenue $12.53M $24.55M
YoY Change -48.95% 48.94%
Gross Profit $8.582M $8.395M
YoY Change 2.23% 39.89%
Gross Profit Margin 26.18% 25.48%
Selling, General & Admin $6.319M $8.260M
YoY Change -23.5% 10.9%
% of Gross Profit 73.63% 98.39%
Research & Development $778.0K $1.943M
YoY Change -59.96% -23.05%
% of Gross Profit 9.07% 23.14%
Depreciation & Amortization $450.0K $610.0K
YoY Change -26.23% -18.67%
% of Gross Profit 5.24% 7.27%
Operating Expenses $7.097M $10.20M
YoY Change -30.44% 2.31%
Operating Profit $1.485M -$1.400M
YoY Change -206.07% -61.19%
Interest Expense $0.00 -$150.0K
YoY Change -100.0% -120.83%
% of Operating Profit 0.0%
Other Income/Expense, Net -$32.00K -$197.0K
YoY Change -83.76% -696.97%
Pretax Income $1.481M -$1.545M
YoY Change -195.86% 398.39%
Income Tax $420.0K $194.0K
% Of Pretax Income 28.36%
Net Earnings $2.835M -$1.420M
YoY Change -299.65% -5.27%
Net Earnings / Revenue 8.65% -4.31%
Basic Earnings Per Share $0.19 -$0.11
Diluted Earnings Per Share $0.19 -$0.11
COMMON SHARES
Basic Shares Outstanding 14.89M 13.19M shares
Diluted Shares Outstanding 15.15M 13.19M shares

Balance Sheet

Concept 2018 Q1 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $50.50M $38.90M
YoY Change 29.82% 22.33%
Cash & Equivalents $50.50M $38.86M
Short-Term Investments
Other Short-Term Assets $2.633M $2.138M
YoY Change 23.15% -45.01%
Inventory $29.04M $20.78M
Prepaid Expenses
Receivables $22.72M $19.48M
Other Receivables $0.00 $0.00
Total Short-Term Assets $136.2M $101.2M
YoY Change 34.59% 18.98%
LONG-TERM ASSETS
Property, Plant & Equipment $16.08M $15.01M
YoY Change 7.12% -11.14%
Goodwill $11.65M $10.87M
YoY Change 7.17% -2.87%
Intangibles $3.289M $3.740M
YoY Change -12.06% -18.13%
Long-Term Investments $2.616M $2.942M
YoY Change -11.08% -13.57%
Other Assets $946.0K $1.050M
YoY Change -9.9% -10.03%
Total Long-Term Assets $34.78M $33.81M
YoY Change 2.86% -10.2%
TOTAL ASSETS
Total Short-Term Assets $136.2M $101.2M
Total Long-Term Assets $34.78M $33.81M
Total Assets $171.0M $135.0M
YoY Change 26.64% 10.03%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $19.13M $16.85M
YoY Change 13.53% 12.18%
Accrued Expenses $3.262M $1.815M
YoY Change 79.72% -16.74%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $369.0K $860.0K
YoY Change -57.09% 15.13%
Total Short-Term Liabilities $56.40M $56.62M
YoY Change -0.4% 40.24%
LONG-TERM LIABILITIES
Long-Term Debt $8.217M $9.285M
YoY Change -11.5% -0.71%
Other Long-Term Liabilities $3.500M $5.800M
YoY Change -39.66% -3.33%
Total Long-Term Liabilities $8.217M $9.285M
YoY Change -11.5% -0.71%
TOTAL LIABILITIES
Total Short-Term Liabilities $56.40M $56.62M
Total Long-Term Liabilities $8.217M $9.285M
Total Liabilities $68.11M $71.68M
YoY Change -4.98% 28.72%
SHAREHOLDERS EQUITY
Retained Earnings -$17.41M -$37.31M
YoY Change -53.33% 8.65%
Common Stock $149.0K $132.0K
YoY Change 12.88% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $102.9M $65.75M
YoY Change
Total Liabilities & Shareholders Equity $171.0M $135.0M
YoY Change 26.64% 10.03%

Cashflow Statement

Concept 2018 Q1 2017 Q1
OPERATING ACTIVITIES
Net Income $2.835M -$1.420M
YoY Change -299.65% -5.27%
Depreciation, Depletion And Amortization $450.0K $610.0K
YoY Change -26.23% -18.67%
Cash From Operating Activities -$2.900M $15.13M
YoY Change -119.17% 247.02%
INVESTING ACTIVITIES
Capital Expenditures -$600.0K -$120.0K
YoY Change 400.0% 50.0%
Acquisitions
YoY Change
Other Investing Activities $70.00K $30.00K
YoY Change 133.33% -99.39%
Cash From Investing Activities -$530.0K -$90.00K
YoY Change 488.89% -101.88%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 50.00K 50.00K
YoY Change 0.0% -200.0%
NET CHANGE
Cash From Operating Activities -2.900M 15.13M
Cash From Investing Activities -530.0K -90.00K
Cash From Financing Activities 50.00K 50.00K
Net Change In Cash -3.380M 15.09M
YoY Change -122.4% 65.64%
FREE CASH FLOW
Cash From Operating Activities -$2.900M $15.13M
Capital Expenditures -$600.0K -$120.0K
Free Cash Flow -$2.300M $15.25M
YoY Change -115.08% 243.47%

Facts In Submission

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OtherNonoperatingIncomeExpense
-38000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-86000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
210000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
686000 USD
CY2017Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
100000000 shares
CY2018Q1 us-gaap Other Deferred Credits Current
OtherDeferredCreditsCurrent
5085000 USD
CY2017Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-197000 USD
CY2018Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
100000000 shares
CY2017Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2018Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q3 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2018Q1 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
94000 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
1340000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
137000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
0 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
34000 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
68000 USD
CY2017Q3 us-gaap Product Warranty Accrual Classified Current
ProductWarrantyAccrualClassifiedCurrent
1254000 USD
CY2018Q1 us-gaap Product Warranty Accrual Classified Current
ProductWarrantyAccrualClassifiedCurrent
1495000 USD
CY2017Q1 us-gaap Profit Loss
ProfitLoss
-1739000 USD
us-gaap Profit Loss
ProfitLoss
-2074000 USD
CY2018Q1 us-gaap Profit Loss
ProfitLoss
2835000 USD
us-gaap Profit Loss
ProfitLoss
9287000 USD
CY2017Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
15792000 USD
CY2018Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
16083000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
-1217000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
48000 USD
CY2017Q3 us-gaap Purchase Obligation
PurchaseObligation
34400000 USD
CY2018Q1 us-gaap Purchase Obligation
PurchaseObligation
19300000 USD
CY2017Q3 us-gaap Receivables Long Term Contracts Or Programs
ReceivablesLongTermContractsOrPrograms
14275000 USD
CY2018Q1 us-gaap Receivables Long Term Contracts Or Programs
ReceivablesLongTermContractsOrPrograms
18651000 USD
us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
319000 USD
us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
183000 USD
CY2017Q1 us-gaap Research And Development Arrangement With Federal Government Customer Funding To Offset Costs Incurred
ResearchAndDevelopmentArrangementWithFederalGovernmentCustomerFundingToOffsetCostsIncurred
408000 USD
us-gaap Research And Development Arrangement With Federal Government Customer Funding To Offset Costs Incurred
ResearchAndDevelopmentArrangementWithFederalGovernmentCustomerFundingToOffsetCostsIncurred
610000 USD
CY2018Q1 us-gaap Research And Development Arrangement With Federal Government Customer Funding To Offset Costs Incurred
ResearchAndDevelopmentArrangementWithFederalGovernmentCustomerFundingToOffsetCostsIncurred
346000 USD
us-gaap Research And Development Arrangement With Federal Government Customer Funding To Offset Costs Incurred
ResearchAndDevelopmentArrangementWithFederalGovernmentCustomerFundingToOffsetCostsIncurred
645000 USD
CY2017Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
1943000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
3773000 USD
CY2018Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
2528000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
4818000 USD
CY2017Q3 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
24640000 USD
CY2018Q1 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
9662000 USD
CY2017Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
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CY2018Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
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CY2017Q1 us-gaap Sales Revenue Net
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32944000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
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CY2018Q1 us-gaap Sales Revenue Net
SalesRevenueNet
32783000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
106394000 USD
CY2017Q1 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
8260000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
15258000 USD
CY2018Q1 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
9478000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
20058000 USD
CY2017Q1 us-gaap Share Based Compensation
ShareBasedCompensation
300000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
624000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
600000 USD
CY2018Q1 us-gaap Share Based Compensation
ShareBasedCompensation
200000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
500000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
463000 USD
CY2016Q4 us-gaap Shipping Handling And Transportation Costs
ShippingHandlingAndTransportationCosts
500000 USD
us-gaap Shipping Handling And Transportation Costs
ShippingHandlingAndTransportationCosts
900000 USD
CY2018Q1 us-gaap Shipping Handling And Transportation Costs
ShippingHandlingAndTransportationCosts
700000 USD
us-gaap Shipping Handling And Transportation Costs
ShippingHandlingAndTransportationCosts
1900000 USD
CY2018Q1 us-gaap Stock Repurchase Program Authorized Amount1
StockRepurchaseProgramAuthorizedAmount1
4000000 USD
CY2017Q3 us-gaap Stockholders Equity
StockholdersEquity
90483000 USD
CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
102912000 USD
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
0 shares
CY2017Q3 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
2600000 USD
CY2018Q1 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
600000 USD
CY2017Q3 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
4200000 USD
CY2018Q1 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
0 USD
CY2017Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0 shares
CY2018Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
263000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
388000 shares
CY2017Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
13188000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
13184000 shares
CY2018Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
15154000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
15223000 shares
CY2017Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
13188000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
13184000 shares
CY2018Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
14891000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
14835000 shares
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Concentrations of Credit Risk </font><font style="font-family:inherit;font-size:10pt;">&#8211; Our customers consist of solar cell and semiconductor manufacturers worldwide, as well as the lapping and polishing marketplace. Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and trade accounts receivable. Credit risk is managed by performing ongoing credit evaluations of the customers&#8217; financial condition, by requiring significant deposits where appropriate, and by actively monitoring collections. Letters of credit are required of certain customers depending on the size of the order, type of customer or its creditworthiness, and country of domicile. </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As of </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;">, one customer individually represented </font><font style="font-family:inherit;font-size:10pt;">41%</font><font style="font-family:inherit;font-size:10pt;"> of accounts receivable. As of </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, two customers individually represented </font><font style="font-family:inherit;font-size:10pt;">24%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">11%</font><font style="font-family:inherit;font-size:10pt;"> of accounts receivable.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We maintain our cash, cash equivalents and restricted cash in multiple financial institutions. Balances in the United States, which account for approximately </font><font style="font-family:inherit;font-size:10pt;">64%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">45%</font><font style="font-family:inherit;font-size:10pt;"> of total cash balances as of </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, respectively, are primarily invested in U.S. Treasuries or are in financial institutions insured by the Federal Deposit Insurance Corporation (&#8220;FDIC&#8221;). The remainder of our cash is maintained with financial institutions with reputable credit ratings in The Netherlands, France, China, the United Kingdom, Singapore and Malaysia.</font></div></div>
us-gaap Revenue Recognition Deferred Revenue
RevenueRecognitionDeferredRevenue
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Deferred Profit</font><font style="font-family:inherit;font-size:10pt;"> &#8211; Revenue deferred pursuant to our revenue policy, net of the related deferred costs, if any, is recorded as deferred profit in current liabilities.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates</font><font style="font-family:inherit;font-size:10pt;"> &#8211; The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>

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