2018 Q2 Form 10-Q Financial Statement

#000072050018000041 Filed on August 09, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2017 Q3 2017 Q2
Revenue $41.20M $54.68M $47.76M
YoY Change -13.74% 28.93% 43.24%
Cost Of Revenue $18.56M -$25.53M $32.26M
YoY Change -42.46% -185.3% 36.05%
Gross Profit $10.18M $19.59M $15.50M
YoY Change -34.31% 57.04% 60.96%
Gross Profit Margin 24.72% 35.83% 32.46%
Selling, General & Admin $6.775M -$640.0K $10.11M
YoY Change -32.97% -106.24% 16.65%
% of Gross Profit 66.53% -3.27% 65.2%
Research & Development $582.0K $1.774M
YoY Change -67.19% -14.63%
% of Gross Profit 5.72% 11.44%
Depreciation & Amortization $700.0K $620.0K $610.0K
YoY Change 14.75% 51.22% -40.78%
% of Gross Profit 6.87% 3.16% 3.93%
Operating Expenses $7.357M -$2.490M $11.88M
YoY Change -38.08% -120.33% 10.6%
Operating Profit $2.826M $8.034M $3.971M
YoY Change -28.83% 3454.87% -759.63%
Interest Expense $640.0K $310.0K -$140.0K
YoY Change -557.14% 244.44% -80.28%
% of Operating Profit 22.65% 3.86% -3.53%
Other Income/Expense, Net $410.0K -$34.00K
YoY Change -1305.88% -87.17%
Pretax Income $6.351M $1.560M $3.827M
YoY Change 65.95% 387.5% -391.91%
Income Tax $1.372M $474.0K $986.0K
% Of Pretax Income 21.6% 30.38% 25.76%
Net Earnings $4.971M $7.317M $3.287M
YoY Change 51.23% -2667.37% -371.88%
Net Earnings / Revenue 12.07% 13.38% 6.88%
Basic Earnings Per Share $0.33 $0.53 $0.25
Diluted Earnings Per Share $0.33 $0.51 $0.25
COMMON SHARES
Basic Shares Outstanding 14.93M 13.90M shares 13.24M shares
Diluted Shares Outstanding 15.09M 14.29M shares 13.40M shares

Balance Sheet

Concept 2018 Q2 2017 Q3 2017 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $48.70M $51.10M $39.20M
YoY Change 24.23% 84.48% 38.52%
Cash & Equivalents $48.73M $51.12M $39.16M
Short-Term Investments
Other Short-Term Assets $2.688M $2.542M $2.954M
YoY Change -9.0% -4.26% -32.82%
Inventory $22.59M $30.21M $23.19M
Prepaid Expenses
Receivables $27.63M $22.52M $24.69M
Other Receivables $5.700M $0.00 $0.00
Total Short-Term Assets $130.8M $157.1M $114.4M
YoY Change 14.29% 89.47% 26.74%
LONG-TERM ASSETS
Property, Plant & Equipment $16.31M $15.79M $15.08M
YoY Change 8.18% -1.05% -5.74%
Goodwill $11.34M $11.41M $11.22M
YoY Change 1.09% 2.57% 1.37%
Intangibles $3.039M $3.495M $3.643M
YoY Change -16.58% -14.76% -14.96%
Long-Term Investments $0.00 $2.615M $2.831M
YoY Change -100.0% -13.75% -4.36%
Other Assets $948.0K $1.003M $1.026M
YoY Change -7.6% -8.4% -9.04%
Total Long-Term Assets $31.64M $34.51M $34.00M
YoY Change -6.93% -2.81% -5.21%
TOTAL ASSETS
Total Short-Term Assets $130.8M $157.1M $114.4M
Total Long-Term Assets $31.64M $34.51M $34.00M
Total Assets $162.4M $191.6M $148.4M
YoY Change 9.43% 61.8% 17.66%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $12.58M $21.56M $22.48M
YoY Change -44.05% 39.99% 22.12%
Accrued Expenses $3.077M $2.056M $1.863M
YoY Change 65.16% -4.99% -10.0%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $371.0K $361.0K $817.0K
YoY Change -54.59% -68.17% 13.0%
Total Short-Term Liabilities $44.66M $85.97M $64.09M
YoY Change -30.32% 125.85% 42.92%
LONG-TERM LIABILITIES
Long-Term Debt $8.028M $8.134M $9.732M
YoY Change -17.51% -10.59% 1.1%
Other Long-Term Liabilities $3.300M $7.000M $6.500M
YoY Change -49.23% 18.64% 8.33%
Total Long-Term Liabilities $8.028M $8.134M $9.732M
YoY Change -17.51% -10.59% 1.1%
TOTAL LIABILITIES
Total Short-Term Liabilities $44.66M $85.97M $64.09M
Total Long-Term Liabilities $8.028M $8.134M $9.732M
Total Liabilities $56.02M $101.1M $80.34M
YoY Change -30.27% 90.5% 32.93%
SHAREHOLDERS EQUITY
Retained Earnings -$12.44M -$26.70M -$34.02M
YoY Change -63.43% -25.48% -4.29%
Common Stock $150.0K $147.0K $133.0K
YoY Change 12.78% 11.36% 0.76%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $106.4M $90.48M $70.78M
YoY Change
Total Liabilities & Shareholders Equity $162.4M $191.6M $148.4M
YoY Change 9.43% 61.8% 17.66%

Cashflow Statement

Concept 2018 Q2 2017 Q3 2017 Q2
OPERATING ACTIVITIES
Net Income $4.971M $7.317M $3.287M
YoY Change 51.23% -2667.37% -371.88%
Depreciation, Depletion And Amortization $700.0K $620.0K $610.0K
YoY Change 14.75% 51.22% -40.78%
Cash From Operating Activities -$3.080M $23.11M -$650.0K
YoY Change 373.85% -46320.0% -80.0%
INVESTING ACTIVITIES
Capital Expenditures -$160.0K -$900.0K -$150.0K
YoY Change 6.67% 66.67% -40.0%
Acquisitions
YoY Change
Other Investing Activities -$10.00K $0.00 $10.00K
YoY Change -200.0% -100.0%
Cash From Investing Activities -$170.0K -$900.0K -$140.0K
YoY Change 21.43% 221.43% -44.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 450.0K 11.91M 880.0K
YoY Change -48.86% -7105.88% 2833.33%
NET CHANGE
Cash From Operating Activities -3.080M 23.11M -650.0K
Cash From Investing Activities -170.0K -900.0K -140.0K
Cash From Financing Activities 450.0K 11.91M 880.0K
Net Change In Cash -2.800M 34.12M 90.00K
YoY Change -3211.11% -6924.0% -102.59%
FREE CASH FLOW
Cash From Operating Activities -$3.080M $23.11M -$650.0K
Capital Expenditures -$160.0K -$900.0K -$150.0K
Free Cash Flow -$2.920M $24.01M -$500.0K
YoY Change 484.0% 4800.0% -83.33%

Facts In Submission

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us-gaap Net Income Loss
NetIncomeLoss
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NetIncomeLoss
4971000 USD
us-gaap Net Income Loss
NetIncomeLoss
14258000 USD
CY2017Q2 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
-446000 USD
us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
-1045000 USD
CY2018Q2 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
0 USD
us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
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0 USD
us-gaap Noncash Or Part Noncash Divestiture Amount Of Consideration Received1
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5738000 USD
CY2017Q3 us-gaap Notes And Loans Receivable Net Current
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0 USD
CY2018Q2 us-gaap Notes And Loans Receivable Net Current
NotesAndLoansReceivableNetCurrent
5738000 USD
us-gaap Number Of Operating Segments
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3 segment
CY2017Q2 us-gaap Operating Income Loss
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3971000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
2388000 USD
CY2018Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
2936000 USD
us-gaap Operating Income Loss
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CY2017Q3 us-gaap Other Assets Current
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CY2018Q2 us-gaap Other Assets Current
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CY2017Q3 us-gaap Other Assets Noncurrent
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1003000 USD
CY2018Q2 us-gaap Other Assets Noncurrent
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948000 USD
CY2017Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
740000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
118000 USD
CY2018Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-2181000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-844000 USD
CY2017Q3 us-gaap Other Deferred Credits Current
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4081000 USD
CY2018Q2 us-gaap Other Deferred Credits Current
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3560000 USD
CY2017Q2 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-34000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-151000 USD
CY2018Q2 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
310000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
224000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
355000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
845000 USD
CY2017Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
100000000 shares
CY2018Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
100000000 shares
CY2017Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2018Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q3 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2018Q2 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
894000 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
1889000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
384000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
0 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
39000 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
64000 USD
CY2017Q3 us-gaap Product Warranty Accrual Classified Current
ProductWarrantyAccrualClassifiedCurrent
1254000 USD
CY2018Q2 us-gaap Product Warranty Accrual Classified Current
ProductWarrantyAccrualClassifiedCurrent
1223000 USD
CY2017Q2 us-gaap Profit Loss
ProfitLoss
2841000 USD
us-gaap Profit Loss
ProfitLoss
767000 USD
CY2018Q2 us-gaap Profit Loss
ProfitLoss
4971000 USD
us-gaap Profit Loss
ProfitLoss
14258000 USD
CY2017Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
15792000 USD
CY2018Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
16314000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
-898000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
64000 USD
CY2017Q3 us-gaap Purchase Obligation
PurchaseObligation
34400000 USD
CY2018Q2 us-gaap Purchase Obligation
PurchaseObligation
14600000 USD
CY2017Q3 us-gaap Receivables Long Term Contracts Or Programs
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14275000 USD
CY2018Q2 us-gaap Receivables Long Term Contracts Or Programs
ReceivablesLongTermContractsOrPrograms
14748000 USD
us-gaap Repayments Of Long Term Debt
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485000 USD
us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
275000 USD
CY2017Q2 us-gaap Research And Development Arrangement With Federal Government Customer Funding To Offset Costs Incurred
ResearchAndDevelopmentArrangementWithFederalGovernmentCustomerFundingToOffsetCostsIncurred
351000 USD
us-gaap Research And Development Arrangement With Federal Government Customer Funding To Offset Costs Incurred
ResearchAndDevelopmentArrangementWithFederalGovernmentCustomerFundingToOffsetCostsIncurred
961000 USD
CY2018Q2 us-gaap Research And Development Arrangement With Federal Government Customer Funding To Offset Costs Incurred
ResearchAndDevelopmentArrangementWithFederalGovernmentCustomerFundingToOffsetCostsIncurred
162000 USD
us-gaap Research And Development Arrangement With Federal Government Customer Funding To Offset Costs Incurred
ResearchAndDevelopmentArrangementWithFederalGovernmentCustomerFundingToOffsetCostsIncurred
807000 USD
CY2017Q2 us-gaap Research And Development Expense
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us-gaap Research And Development Expense
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ResearchAndDevelopmentExpense
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us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
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CY2017Q3 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
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CY2018Q2 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
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CY2017Q2 us-gaap Revenue From Contract With Customer Including Assessed Tax
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us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
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CY2018Q2 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
41200000 USD
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
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us-gaap Share Based Compensation
ShareBasedCompensation
978000 USD
CY2018Q2 us-gaap Share Based Compensation
ShareBasedCompensation
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us-gaap Share Based Compensation
ShareBasedCompensation
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us-gaap Share Based Compensation
ShareBasedCompensation
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
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CY2018Q2 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
9541000 USD
us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
29599000 USD
CY2017Q2 us-gaap Share Based Compensation
ShareBasedCompensation
400000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
1000000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.5876
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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0.0289
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y
CY2018Q1 us-gaap Stock Repurchase Program Authorized Amount1
StockRepurchaseProgramAuthorizedAmount1
4000000 USD
CY2018Q1 us-gaap Stock Repurchase Program Period In Force1
StockRepurchaseProgramPeriodInForce1
P1Y
CY2017Q3 us-gaap Stockholders Equity
StockholdersEquity
90483000 USD
CY2018Q2 us-gaap Stockholders Equity
StockholdersEquity
106419000 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
CY2018Q2 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
CY2018Q2 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
1200000 USD
CY2017Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
156000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
85000 shares
CY2018Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
166000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
314000 shares
CY2017Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
13398000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
13288000 shares
CY2018Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
15091000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
15181000 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
13242000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
13203000 shares
CY2018Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
14925000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
14867000 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;">June&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">, two customers individually represented </font><font style="font-family:inherit;font-size:10pt;">23%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">14%</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;">60%</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;">June&#160;30, 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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