NEW
YORK
|
11-2160665
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer identification No.)
|
89
Arkay Drive, Hauppauge, New York
|
11788
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Common
Stock, Par Value $.01
|
American
Stock Exchange
|
(Title
of class)
|
(Name
of each exchange on which
registered)
|
Quarter
Ended
|
High
|
Low
|
||||||
Fiscal
2007
|
||||||||
December
|
3.90 | 3.07 | ||||||
March
|
11.50 | 3.35 | ||||||
June
|
13.69 | 7.87 | ||||||
September
|
15.88 | 10.05 | ||||||
Fiscal
2006
|
||||||||
December
|
3.68 | 2.63 | ||||||
March
|
3.47 | 2.82 | ||||||
June
|
3.39 | 2.60 | ||||||
September
|
3.65 | 2.80 |
FISCAL
YEAR
|
2007
|
2006
|
2005
|
2004
|
2003
|
|||||||||||||||
Net
sales
|
$ | 69,073 | $ | 56,279 | $ | 56,056 | $ | 53,533 | $ | 51,954 | ||||||||||
Gross
profit
|
29,386 | 22,094 | 20,996 | 19,711 | 19,091 | |||||||||||||||
Operating
income
(loss)
|
4,682 | (367 | ) | (2,931 | ) | (2,226 | ) | (1,677 | ) | |||||||||||
Income
(loss) before income
taxes
|
4,921 | (397 | ) | (3,069 | ) | (2,210 | ) | (1,739 | ) | |||||||||||
Net
income
(loss)
|
7,886 | (547 | ) | (2,885 | ) | (2,691 | ) | (4,874 | ) | |||||||||||
Net
income (loss) per
share:
|
||||||||||||||||||||
Basic
|
1.67 | (.12 | ) | (.63 | ) | (.59 | ) | (1.05 | ) | |||||||||||
Diluted
|
1.59 | (.12 | ) | (.63 | ) | (.59 | ) | (1.05 | ) | |||||||||||
Total
assets
|
45,034 | 35,955 | 34,192 | 38,867 | 41,893 | |||||||||||||||
Long-term
debt
|
- | 1,740 | 2,062 | 2,410 | 2,732 | |||||||||||||||
Working
capital
|
26,041 | 20,181 | 19,713 | 22,793 | 25,333 | |||||||||||||||
Property,
plant and equipment
(net)
|
5,762 | 6,229 | 6,616 | 7,090 | 7,286 |
Payments
Due
|
Debt
|
Lease
|
||||||||||
By
Period
|
Repayments
|
Commitments
|
Total
|
|||||||||
Less
than 1
year
|
$ | 1,748,000 | $ | 611,000 | $ | 2,359,000 | ||||||
1-3
years
|
- | 323,000 | 323,000 | |||||||||
Totals
|
$ | 1,748,000 | $ | 934,000 | $ | 2,682,000 | ||||||
Name
|
Age
|
Position
|
|||
Kenneth
M.
Darby
|
61
|
Chairman
of the Board, President
and
|
|||
Chief
Executive Officer
|
|||||
John
M.
Badke
|
48
|
Senior
Vice President, Finance
and
|
|||
Chief
Financial Officer
|
|||||
Peter
A.
Horn
|
52
|
Vice
President,
Operations
|
|||
Bret
M.
McGowan
|
42
|
Vice
President, U.S. Sales and
Marketing
|
|||
Yacov
A.
Pshtissky
|
56
|
Vice
President, Technology and
Development
|
|||
Joan
L.
Wolf
|
53
|
Executive
Administrator
and
|
|||
Corporate
Secretary
|
|||||
Christopher
J.
Wall
|
54
|
Managing
Director, Vicon
Industries Ltd.
|
|||
Yigal
Abiri
|
58
|
General
Manager, Vicon Systems
Ltd.
|
|||
Clifton
H.W.
Maloney
|
70
|
Director
|
|||
Peter
F.
Neumann
|
73
|
Director
|
|||
W.
Gregory
Robertson
|
64
|
Director
|
|||
Arthur
D.
Roche
|
69
|
Director
|
Name
|
Title
|
2007
Base
Salary ($)
|
2008
Base
Salary ($)
|
||||||
John
M. Badke
|
Senior
Vice President and Chief Financial Officer
|
$ | 180,000 | $ | 190,000 | ||||
Christopher
J. Wall
|
Managing
Director of Vicon Industries, Ltd. (Europe)
|
$ | 200,000 | $ | 210,000 | ||||
Peter
A. Horn
|
Vice
President, Operations
|
$ | 163,000 | $ | 168,000 | ||||
Bret
M. McGowan
|
Vice
President, U.S. Sales and Marketing
|
$ | 170,000 | $ | 180,000 |
Name
and Principal
Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Stock
Awards
($)
|
Option
Awards
($)(1)
|
Non-Equity
Incentive
Plan
Compen-
sation
($)(3)
|
Change
in Pension Value and Nonqualified Deferred Compensation ($)
|
All
Other Compen-sation
($)(2)
|
Total
($)
|
||||||||||||||||||||||||
Kenneth
M. Darby
|
2007
|
$ | 325,000 | - | - | $ | 27,495 | (1) | $ | 346,711 | (3) | $ | 852,429 | (4) | $ | 22,324 | (2) | $ | 1,573,959 | ||||||||||||||
Chairman
and Chief
|
|||||||||||||||||||||||||||||||||
Executive
Officer
|
|||||||||||||||||||||||||||||||||
John
M. Badke
|
2007
|
$ | 180,000 | - | - | $ | 17,252 | (1) | $ | 173,355 | (3) | - | $ | 7,152 | (2) | $ | 377,759 | ||||||||||||||||
Senior
Vice President and
|
|||||||||||||||||||||||||||||||||
Chief
Financial Officer
|
|||||||||||||||||||||||||||||||||
Christopher
J. Wall
|
2007
|
$ | 200,000 | - | - | $ | 11,263 | (1) | $ | 188,490 | (5) | - | $ | 25,014 | (2) | $ | 424,767 | ||||||||||||||||
Managing
Director
|
|||||||||||||||||||||||||||||||||
Vicon
Industries, Ltd.
|
|||||||||||||||||||||||||||||||||
Peter
A. Horn
|
2007
|
$ | 163,000 | - | - | $ | 8,375 | (1) | $ | 115,570 | (3) | - | $ | 7,244 | (2) | $ | 294,189 | ||||||||||||||||
Vice
President, Operations
|
|||||||||||||||||||||||||||||||||
Bret
M. McGowan
|
2007
|
$ | 170,000 | - | - | $ | 12,856 | (1) | $ | 60,641 | (6) | - | $ | 6,000 | (2) | $ | 249,497 | ||||||||||||||||
Vice
President, U.S.
|
|||||||||||||||||||||||||||||||||
Sales
and Marketing
|
(1)
|
Represents
the compensation costs recognized for financial statement reporting
purposes in fiscal 2007 for the fair value of stock options in accordance
with Statement of Financial Accounting Standards No. 123R, rather
than an amount paid to or realized by the named executive officer.
(See "Note 1" under the caption "Accounting for Stock-Based Compensation"
to the accompanying financial
statements).
|
(2)
|
All
Other Compensation in fiscal 2007 represents: (a) Automobile expense
of
$11,857, $7,152, $15,380, $7,244 and $6,000, paid by the company
for
Messrs. Darby, Badke, Wall, Horn and McGowan, respectively, (b) Country
club membership of $8,257 and long-term disability insurance of $2,210
paid by the Company for Mr. Darby and (c) Supplemental retirement
contributions of $9,634 for Mr.
Wall.
|
(3)
|
Represents
cash awards under the Company’s 2007 performance based bonus plan. These
amounts were earned in fiscal 2007 and paid in fiscal
2008.
|
(4)
|
Represents
the distribution of a $620,000 severance/retirement benefit and 70,647
shares of the Company’s common stock with a market value of $232,429 upon
the expiration of Mr. Darby’s previous employment agreement on September
30, 2006. Such amounts were earned by Mr. Darby over his thirty
years of service with the Company and charged to expense over prior
year
periods.
|
(5)
|
Represents
cash award under Mr. Wall’s performance based bonus
plan.
|
(6)
|
Represents
sales commissions earned in fiscal
2007.
|
Estimated
Future Payouts Under Non-Equity Incentive Plan Awards
|
|||||||||||||||||||
Name
|
Grant
Date
|
Threshold
($)
|
Target ($)
|
Maximum
($)
|
All
Other Option Awards: Number of Shares of Stock or Units (#)(3)
|
Exercise
or Base Price of Option Awards
($/Sh)
|
Grant
Date Fair Value of Stock Option Awards ($)(4)
|
||||||||||||
Kenneth
M. Darby
|
2007
|
-
|
$ | 175,000 | (1) |
-
|
|
||||||||||||
Chairman
and Chief
|
10/25/06
|
10,000 | $ | 3.59 | $ | 20,300 | |||||||||||||
Executive
Officer
|
|||||||||||||||||||
John
M. Badke
|
2007
|
-
|
$ | 72,000 | (1) |
-
|
|||||||||||||
Senior
Vice President
|
10/25/06
|
15,000 | $ | 3.59 | $ | 30,450 | |||||||||||||
and
Chief Financial Officer
|
|||||||||||||||||||
Christopher
J. Wall
|
2007
|
-
|
$ | 44,620 | (2) |
-
|
|||||||||||||
Managing
Director
|
10/25/06
|
5,000 | $ | 3.59 | $ | 10,150 | |||||||||||||
Vicon
Industries, Ltd.
|
|||||||||||||||||||
|
|||||||||||||||||||
Perter
A. Horn
|
2007
|
-
|
$ | 48,000 | (1) |
-
|
|||||||||||||
Vice
President, Operations
|
10/25/06
|
3,500 | $ | 3.59 | $ | 7,105 | |||||||||||||
Bret
M. McGowan
|
2007
|
-
|
$ | 52,500 | (3) |
-
|
|||||||||||||
Vice
President,
|
10/25/06
|
13,500 | $ | 3.59 | $ | 27,405 | |||||||||||||
U.S.
Sales and Marketing
|
(1)
|
The
amounts shown reflect targeted cash payments for achievement of
a certain
minimum annual pretax profit target as defined by the Company’s Board of
Directors under the Company’s 2007 performance based bonus
plan.
|
(2)
|
Amount
represents targeted cash payment for achievement of budgeted pretax
operating profits, as defined, of the Company’s Europe based subsidiaries
under his performance based bonus
plan.
|
(3)
|
Amount
represents targeted cash payment for achievement of U.S. domestic
sales
quota.
|
(4)
|
The
amounts represent the full grant date fair value of stock options
granted
in 2007 in accordance with Statement of Financial Accounting Standards
No. 123R, which will be expensed in the Company’s financial
statements over the awards’ vesting period. (See “Note 1”
under
the caption “Accounting for Stock-Based Compensation” to the accompanying
financial statements.)
|
Name
|
Number
of Securities Underlying Unexercised Options (#) Exercisable
|
Number
of Securities Underlying Unexercised Options (#) Unexercisable
|
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised
Unearned Options (#)
|
Option
Exercise Price ($)
|
Option
Expiration Date
|
||||||||||||
Kenneth
M. Darby
|
16,129 | (1) | - | - | $ | 3.95 |
08/12/09
|
||||||||||
Chairman
and Chief
|
- | 10,000 | (1) | - | $ | 3.59 |
10/25/12
|
||||||||||
Executive
Officer
|
|||||||||||||||||
John
M. Badke
|
3,500 | (1) | - | - | $ | 3.05 |
11/15/07
|
||||||||||
Senior
Vice President
|
15,000 | (1) | - | - | $ | 2.80 |
11/04/08
|
||||||||||
and
Chief Financial
|
10,000 | (1) | - | - | $ | 3.95 |
08/12/09
|
||||||||||
Officer
|
1,500 | (1) | 3,500 | (1) | - | $ | 3.00 |
05/27/11
|
|||||||||
3,000 | (2) | 2,000 | (2) | - | $ | 3.17 |
12/09/10
|
||||||||||
- | 15,000 | (1) | - | $ | 3.59 |
10/25/12
|
|||||||||||
Christopher
J. Wall
|
10,000 | (1) | - | - | $ | 2.80 |
11/04/08
|
||||||||||
Managing
Director
|
10,000 | (1) | - | - | $ | 3.95 |
08/12/09
|
||||||||||
Vicon
Industries, Ltd.
|
1,501 | (1) | 3,499 | (1) | - | $ | 3.00 |
05/27/11
|
|||||||||
- | 5,000 | (1) | - | $ | 3.17 |
12/09/11
|
|||||||||||
- | 5,000 | (1) | - | $ | 3.59 |
10/25/12
|
|||||||||||
Peter
A. Horn
|
3,500 | (1) | - | - | $ | 3.05 |
11/15/07
|
||||||||||
Vice
President, Operations
|
10,000 | (1) | - | - | $ | 2.80 |
11/04/08
|
||||||||||
5,000 | (1) | - | - | $ | 3.95 |
08/12/09
|
|||||||||||
1,500 | (1) | 3,500 | (1) | - | $ | 3.00 |
05/27/11
|
||||||||||
- | 5,000 | (1) | - | $ | 3.17 |
12/09/11
|
|||||||||||
- | 3,500 | (1) | - | $ | 3.59 |
10/25/12
|
|||||||||||
Bret
M. McGowan
|
3,500 | (1) | - | - | $ | 3.05 |
11/15/07
|
||||||||||
Vice
President
|
7,500 | (1) | - | - | $ | 2.80 |
11/04/08
|
||||||||||
U.S.
Sales and Marketing
|
5,000 | (1) | - | - | $ | 3.95 |
08/12/09
|
||||||||||
1,500 | (1) | 3,500 | (1) | - | $ | 3.00 |
05/27/11
|
||||||||||
1,154 | (2) | 770 | (2) | - | $ | 3.17 |
12/09/10
|
||||||||||
- | 3,076 | (1) | - | $ | 3.17 |
12/09/10
|
|||||||||||
- | 13,500 | (1) | - | $ | 3.59 |
10/25/12
|
|||||||||||
(1)
|
Options
vest over a four year period at 30% of the shares on the first anniversary
of the grant date, 30% of the shares on the second anniversary of
the
grant date and the remaining 40% of the shares on the third anniversary
of
the grant date. Options expire after the sixth anniversary of the
grant
date.
|
(2)
|
Options
vest over a three year period at 30% of the shares on the grant date,
30%
of the shares on the first anniversary of the grant date and the
remaining
40% of the shares on the second anniversary of the grant date. Options
expire after the fifth anniversary of the grant
date.
|
Option
Awards
|
||||||||
Name
|
Number
of Shares
Acquired
on
Exercise
(#)
|
Value
Realized
on
Exercise ($)
|
||||||
Kenneth
M.
Darby
|
50,000 | $ | 248,500 | (1) | ||||
Chairman and Chief Executive Officer | 33,871 | $ | 129,387 | (2) | ||||
John
M.
Badke
|
12,500 | $ | 6,750 | (3) | ||||
Senior Vice President and Chief Financial Officer |
(1)
|
Represents
the difference between the closing price of the Company’s common stock of
$7.77 on February 23, 2007, the date of exercise, and the exercise
price
of $2.80, multiplied by 50,000
shares.
|
(2)
|
Represents
the difference between the closing price of the Company’s common stock of
$7.77 on February 23, 2007, the date of exercise, and the exercise
price
of $3.95, multiplied by 33,871
shares.
|
(3)
|
Represents
the difference between the closing price of the Company’s common stock of
$3.59 on November 14, 2006, the date of exercise, and the exercise
price
of $3.05, multiplied by 12,500
shares.
|
Name
|
Change
in Control
($)
|
Employment
Termination by Company under Certain
Circumstances ($)
|
||||||
Kenneth
M. Darby
|
||||||||
Salary
|
$ | 400,000 | (2) | $ | 400,000 | (2) | ||
John
M. Badke
|
||||||||
Salary
|
$ | 488,354 | (1) | $ | 350,000 | (3) | ||
Deferred
Compensation Shares
|
$ | 76,632 | (4) | $ | 76,632 | (4) | ||
Total
|
$ | 564,986 | $ | 426,632 | ||||
Christopher
J. Wall
|
||||||||
Salary
|
- | $ | 200,000 | (3) | ||||
Peter
A. Horn
|
||||||||
Salary
|
$ | 452,354 | (1) | $ | 316,000 | (3) | ||
Deferred
Compensation Shares
|
$ | 113,985 | (5) | $ | 113,985 | (5) | ||
Total
|
$ | 566,339 | $ | 429,985 | ||||
Bret
McGowan
|
||||||||
Salary
|
$ | 401,754 | (1) | $ | 290,000 | (3) |
(1)
|
Represents
obligation in the event of a change in control of the Company (as
defined)
without Board of Director approval calculated at three times the
average
annual base salary of the officer for the five year period preceding
the
Change of Control payable in either a present value lump sum or in
equal
monthly installments over a three year period as assumed in this
computation.
|
(2)
|
Mr.
Darby has the right to terminate his agreement upon a change in control
with or without the Board of Directors approval and receive the balance
owing under his agreement.
|
(3)
|
Specified
amounts are payable in equal monthly payments over a twenty four
(24)
month period. Certain Agreements contain a provision that allows
for the
deferral of such payments due within the first six month period if
not
exempted from Section 409A of the Internal Revenue Code.
|
(4)
|
Represents
6,561 shares of the Company’s common stock due Mr. Badke upon employment
termination valued at the closing market price of the Company’s common
stock at September 30, 2007, excluding any market discount due to
the
restricted stock designation on the shares.
|
(5)
|
Represents
9,759 shares of the Company’s common stock due Mr. Horn upon employment
termination valued at the closing market price of the Company’s common
stock at September 30, 2007, excluding any market discount due to
the
restricted stock designation on the shares.
|
Name
|
Fees
Earned or Paid in Cash
($)(1)
|
Stock
Awards
($)
|
Option
Awards
($)(2)(3)
|
All
Other
Compensation
($)
|
Total ($)
|
|||||||||||||||
Clifton
H.W. Maloney
|
$ | 30,800 | - | $ | 9,109 | (2) | - | $ | 39,909 | |||||||||||
Peter
F. Neumann
|
$ | 30,800 | - | - | - | $ | 30,800 | |||||||||||||
W.
Gregory Robertson
|
$ | 29,600 | - | - | - | $ | 29,600 | |||||||||||||
Arthur
D. Roche
|
$ | 38,800 | - | - | - | $ | 38,800 | |||||||||||||
(1)
|
Directors
who are not employees of the Company receive an annual fee of $20,000
for
regular Board meetings and $1,200 per committee meeting attended
in person
or by teleconference. The Chairman of the Audit Committee also receives
an
additional annual retainer of
$8,000.
|
(2)
|
Represents
the compensation costs recognized for financial statement reporting
purposes in fiscal 2007 for the fair value of stock options in accordance
with Statement of Financial Accounting Standards No. 123R, rather
than an amount paid to or realized by the named director. (See "Note
1" under the caption "Accounting for Stock-Based Compensation" to
the
accompanying financial statements).
|
(3)
|
On
October 25, 2006, Mr. Maloney was granted 5,000 options to purchase
common
stock at the closing market price of $3.59 per share. As of
September 30, 2007, Messrs. Maloney, Robertson and Roche held 20,000,
20,000 and 15,569 stock options,
respectively.
|
AMEX
U.S.
|
AMEX
|
|||||||||||
Date
|
Vicon
Industries, Inc.
|
Market
Index
|
Technology
Index
|
|||||||||
10/01/02
|
100
|
100
|
100
|
|||||||||
10/01/03
|
134
|
128
|
144
|
|||||||||
10/01/04
|
152
|
149
|
166
|
|||||||||
10/01/05
|
99
|
176
|
170
|
|||||||||
10/01/06
|
106
|
190
|
185
|
|||||||||
10/01/07
|
377
|
224
|
263
|
Name
and
Address
|
Number
of
Shares
|
||||||||
of
Beneficial Owner
|
Beneficially
Owned
(1)
|
%
of
Class
|
|||||||
CBC
Co., Ltd. and
affiliates
|
|||||||||
2-15-13
Tsukishima,
Chuo-ku,
|
|||||||||
Tokyo,
Japan
104
|
543,715 | 10.8 | % | ||||||
Dimensional
Fund
Advisors
|
|||||||||
1299
Ocean
Avenue
|
|||||||||
Santa
Monica, CA
90401
|
392,758 | (2 | ) | 7.8 | % | ||||
Renaissance
Technologies,
Corp.
|
|||||||||
800
Third
Avenue
|
|||||||||
New
York, NY
10022
|
345,100 | (3 | ) | 6.8 | % | ||||
Bridgeway
Capital Management,
Inc.
|
|||||||||
5615
Kirby Drive, Suite
518
|
|||||||||
Houston,
TX
77005
|
264,682 | 5.2 | % | ||||||
C/O
Vicon Industries, Inc.
|
|||||||||
Kenneth
M.
Darby
|
335,502 | (4 | ) | 6.6 | % | ||||
Arthur
D.
Roche
|
84,654 | (5 | ) | 1.7 | % | ||||
Peter
A.
Horn
|
54,697 | (10 | ) | 1.1 | % | ||||
John
M.
Badke
|
48,319 | (6 | ) | * | |||||
Peter
F.
Neumann
|
37,072 | * | |||||||
Christopher
J.
Wall
|
35,301 | (7 | ) | * | |||||
W.
Gregory
Robertson
|
31,900 | (8 | ) | * | |||||
Bret
McGowan
|
20,347 | (9 | ) | * | |||||
Clifton
H.W.
Maloney
|
20,000 | (11 | ) | * | |||||
Total
all
Executive Officers and
|
|||||||||
Directors
as a group (12 persons)
|
705,685 | (12 | ) | 14.0 | % | ||||
*
Less than
1%
|
Number
of
securities
|
||||||
Number
of
securities
|
remaining
available
for
|
|||||
to
be issued
upon
|
Weighted
average
|
future
issuance
under
|
||||
exercise
of
|
exercise
price
of
|
equity
compensation
plans
|
||||
outstanding
options,
|
outstanding
options,
|
(excluding
securities
|
||||
warrants
and
rights
|
warrants
and
rights
|
reflected
in column
(a))
|
||||
Plan
category
|
(a)
|
(b)
|
(c)
|
|||
Equity
compensation
plans
|
||||||
approved
by security
holders
|
406,681
|
$3.45
|
507,933
|
|||
Equity
compensation plans
not
|
||||||
approved
by security
holders
|
-
|
-
|
-
|
|||
Total
|
406,681
|
$3.45
|
507,933
|
2007
|
2006
|
|||||||
Audit fees | $ | 231,000 | $ | 171,000 | ||||
Audit related fees | $ | 5,000 | $ | 4,000 | ||||
Tax fees | $ | 35,000 | $ | 39,000 | ||||
Number
|
Description
|
3.1
|
Articles
of Incorporation and By-Laws, as amended (Incorporated by reference
to the
1985 Annual Report on Form 10-K; Form S-2 filed in Registration Statement
No. 33-10435 and Exhibit A, B and C of the 1987 Proxy
Statement)
|
3.2
|
Amendment
of the Company’s By-Laws effective January 1, 2008
|
3.3
|
Amendment
of the Certificate of Incorporation dated May 7, 2002 (Incorporated
by
reference to the 2002 Annual Report on Form 10-K)
|
4
|
Rights
Agreement dated December 4, 2001 between the Registrant and Computershare
Investor Services (Incorporated by reference to the 2001 Annual Report
on
Form 10-K)
|
10.1
|
Employment
Agreement effective as of October 1, 2007 between the Registrant
and
Kenneth M. Darby (Incorporated by reference to the Current Report
on Form
8-K dated September 7, 2007)
|
10.2
|
Common
Stock Lock-up Agreement dated November 10, 2006 between the Registrant
and
Kenneth M. Darby (Incorporated by reference to the Current Report
on Form
8-K dated November 16, 2006)
|
10.3
|
1994
Non-Qualified Stock Option Plan for Outside Directors (Incorporated
by
reference to the 1994 Annual Report on Form 10-K)
|
10.4
|
1996
Incentive Stock Option Plan (Incorporated by reference to the 1997
Annual
Report on Form 10-K)
|
10.5
|
1996
Non-Qualified Stock Option Plan for Outside Directors (Incorporated
by
reference to the 1997 Annual Report on Form 10-K)
|
10.6
|
Loan
Agreement between the Registrant and The Dime Savings Bank of New
York,
FSB dated January 29, 1998 (Incorporated by reference to the December
31,
1997 filing on Form 10-Q)
|
10.7
|
Mortgage
Note between the Registrant and The Dime Savings Bank of New York,
FSB
dated January 29, 1998 (Incorporated by reference to the December
31, 1997
filing on Form 10-Q)
|
10.8
|
Mortgage
and Security Agreement in the amount of $2,512,000 between the Registrant
and The Dime Savings Bank of New York, FSB dated January 29, 1998
(Incorporated by reference to the December 31, 1997 filing on Form
10-Q)
|
10.9
|
Interest
rate master swap agreement between the Registrant and KeyBank National
Association dated December 11, 1997 (Incorporated by reference to
the
December 31, 1997 filing on Form 10-Q)
|
10.10
|
Schedule
to the master agreement between the Registrant and KeyBank National
Association dated December 11, 1997 (Incorporated by reference to
the
December 31, 1997 filing on Form 10-Q
|
10.11
|
Swap
transaction confirmation with a notional amount of $2,512,000 between
the
Registrant and KeyBank National Association dated December 30, 1997
(Incorporated reference to the December 31, 1997 filing on Form
10-Q)
|
10.12
|
Advice
of borrowing terms between the Registrant and National Westminster
Bank
PLC dated March 6, 2006 (Incorporated by reference to the March 31,
2006
filing on Form 10-Q)
|
10.13
|
Loan
Agreement between the Registrant and The Dime Savings Bank of New
York,
FSB dated October 12, 1999 (Incorporated by reference to the 1999
Annual
Report on Form 10-K)
|
10.14
|
Mortgage
Note between the Registrant and The Dime Savings Bank of New York,
FSB
dated October 12, 1999 (Incorporated by reference to the 1999 Annual
Report on Form 10-K)
|
10.15
|
Mortgage
and Security Agreement in the amount of $1,200,000 between the Registrant
and The Dime Savings Bank of New York, FSB dated October 12, 1999
(Incorporated by reference to the 1999 Annual Report on Form
10-K)
|
10.16
|
1999
Incentive Stock Option Plan (Incorporated by reference to the 1999
Annual
Report on Form 10-K)
|
10.17
|
1999
Non-Qualified Stock Option Plan (Incorporated by reference to the
1999
Annual Report on Form 10-K)
|
10.18
|
2002
Incentive Stock Option Plan (Incorporated by reference to the 2002
Annual
Report on Form 10-K)
|
10.19
|
2002
Non-Qualified Stock Option Plan (Incorporated by reference to the
2002
Annual Report on Form 10-K)
|
10.20
|
Employment
and Deferred Compensation Agreement dated January 1, 2006 between
the
Registrant and John M. Badke (Incorporated by reference to the Current
Report on Form 8-K dated March 6, 2006)
|
10.21
|
Amendment
1 to the Employment and Deferred Compensation Agreement dated November
13,
2006 between the Registrant and John M. Badke (Incorporated by reference
to the Current Report on Form 8-K dated November 16,
2006)
|
10.22
|
Employment
Agreement dated August 7, 2006 between the Registrant and Bret M.
McGowan
(Incorporated by reference to the 2006 Annual Report on Form
10-K)
|
10.23
|
Employment
Agreement dated November 1, 2006 between the Registrant and Christopher
J.
Wall (Incorporated by reference to the Current Report on Form
8-K dated November 16, 2006)
|
10.24
|
Amendment
1 to the Employment Agreement dated November 1, 2006 between the
Registrant and Christopher J. Wall
|
10.25
|
2007
Stock Incentive Plan (Incorporated by reference to the Proxy Statement
filed on April 27, 2007)
|
10.26
|
Side
letter dated November 14, 2007 between the Registrant and Christopher
J.
Wall.
|
21
|
Subsidiaries
of the Registrant (Incorporated by reference to the Notes to the
Consolidated Financial Statements)
|
23
|
Consent
of BDO Seidman, LLP
|
Rule
13a-14(a)/15d-14(a)
Certifications
|
|
31.1
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
31.2
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
Section
1350
Certifications
|
|
32.1
|
Certification
of Chief Executive Officer pursuant to 18 U.S.C. Section 1350,
as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
32.2
|
Certification
of Chief Financial Officer pursuant to 18 U.S.C. Section 1350,
as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
2007
|
2006
|
2005
|
||||||||||
Net
sales
|
$ | 69,072,613 | $ | 56,278,971 | $ | 56,055,715 | ||||||
Cost
of
sales
|
39,686,486 | 34,184,675 | 35,060,060 | |||||||||
Gross
profit
|
29,386,127 | 22,094,296 | 20,995,655 | |||||||||
Operating
expenses:
|
||||||||||||
Selling,
general
and
|
||||||||||||
administrative
expense
|
19,527,713 | 17,930,872 | 19,152,692 | |||||||||
Engineering
and
development expense
|
5,175,948 | 4,530,806 | 4,773,516 | |||||||||
24,703,661 | 22,461,678 | 23,926,208 | ||||||||||
Operating
income (loss)
|
4,682,466 | (367,382 | ) | (2,930,553 | ) | |||||||
Other
expense
(income):
|
||||||||||||
Interest
expense
|
141,507 | 164,827 | 181,126 | |||||||||
Interest
and
other income
|
(379,750 | ) | (135,654 | ) | (88,026 | ) | ||||||
Loss
on sale of
marketable securities
|
- | - | 44,936 | |||||||||
Income
(loss) before income taxes
|
4,920,709 | (396,555 | ) | (3,068,589 | ) | |||||||
Income
tax expense
(benefit)
|
(2,965,573 | ) | 150,000 | 27,000 | ||||||||
Income
(loss) before extraordinary gain
|
7,886,282 | (546,555 | ) | (3,095,589 | ) | |||||||
Extraordinary
gain (Note
14)
|
- | - | 210,968 | |||||||||
Net
income (loss)
|
$ | 7,886,282 | $ | (546,555 | ) | $ | (2,884,621 | ) | ||||
Basic
income (loss) per share:
|
||||||||||||
Income
(loss) before extraordinary
gain
|
$ | 1.67 | $ | (.12 | ) | $ | (.68 | ) | ||||
Extraordinary
gain
|
- | - | .05 | |||||||||
Net
income (loss)
|
$ | 1.67 | $ | (.12 | ) | $ | (.63 | ) | ||||
Diluted
income (loss) per share:
|
||||||||||||
Income
(loss) before extraordinary
gain
|
$ | 1.59 | $ | (.12 | ) | $ | (.68 | ) | ||||
Extraordinary
gain
|
- | - | .05 | |||||||||
Net
income (loss)
|
$ | 1.59 | $ | (.12 | ) | $ | (.63 | ) | ||||
See
accompanying notes to
consolidated financial statements.
|
ASSETS
|
2007
|
2006
|
||||||
Current
Assets:
|
||||||||
Cash
and cash
equivalents
|
$ | 8,808,110 | $ | 5,639,334 | ||||
Marketable
securities
|
229,668 | 126,697 | ||||||
Accounts
receivable
(less allowance of
|
||||||||
$962,000
in 2007
and $1,325,000 in 2006)
|
12,995,595 | 11,269,529 | ||||||
Inventories:
|
||||||||
Parts,
components and materials
|
3,768,972 | 2,809,152 | ||||||
Work-in-process
|
2,274,661 | 2,347,354 | ||||||
Finished
products
|
6,951,619 | 6,812,732 | ||||||
12,995,252 | 11,969,238 | |||||||
Deferred
income
taxes
|
1,472,551 | - | ||||||
Prepaid
expenses and
other current assets
|
596,145 | 484,713 | ||||||
Total
current assets
|
37,097,321 | 29,489,511 | ||||||
Property,
plant and
equipment:
|
||||||||
Land
|
1,268,880 | 1,235,950 | ||||||
Buildings
and
improvements
|
5,978,758 | 5,844,093 | ||||||
Machinery,
equipment
and vehicles
|
5,959,272 | 5,970,168 | ||||||
13,206,910 | 13,050,211 | |||||||
Less
accumulated
depreciation and amortization
|
7,445,405 | 6,821,126 | ||||||
5,761,505 | 6,229,085 | |||||||
Deferred
income
taxes
|
2,058,177 | - | ||||||
Other
assets
|
117,442 | 236,521 | ||||||
TOTAL
ASSETS
|
$ | 45,034,445 | $ | 35,955,117 | ||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
Current
Liabilities:
|
||||||||
Current
maturities of
long-term debt
|
$ | 1,747,744 | $ | 331,830 | ||||
Accounts
payable
|
3,397,562 | 4,162,263 | ||||||
Accrued
compensation
and employee benefits
|
2,856,921 | 2,427,525 | ||||||
Accrued
expenses
|
1,806,989 | 1,429,566 | ||||||
Unearned
revenue
|
830,901 | 806,142 | ||||||
Income
taxes
payable
|
416,655 | 151,323 | ||||||
Total
current liabilities
|
11,056,772 | 9,308,649 | ||||||
Long-term
debt
|
- | 1,740,335 | ||||||
Unearned
revenue
|
408,229 | 457,474 | ||||||
Other
long-term
liabilities
|
516,088 | 429,818 | ||||||
Commitments
and contingencies -
Note 11
|
||||||||
Shareholders'
equity:
|
||||||||
Common
stock, par
value $.01 per share
|
||||||||
authorized
- 25,000,000 shares
|
||||||||
issued
-
5,053,503 and 4,860,901 shares
|
50,535 | 48,609 | ||||||
Capital
in excess of
par value
|
22,874,285 | 22,562,126 | ||||||
Retained
earnings
|
9,620,772 | 1,734,490 | ||||||
32,545,592 | 24,345,225 | |||||||
Treasury
stock at
cost, 263,027 shares
|
||||||||
in
2007
and 287,817 shares in 2006
|
(1,139,728 | ) | (1,299,999 | ) | ||||
Accumulated
other
comprehensive income
|
1,647,492 | 973,615 | ||||||
Total
shareholders' equity
|
33,053,356 | 24,018,841 | ||||||
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 45,034,445 | $ | 35,955,117 | ||||
See
accompanying notes to
consolidated financial statements.
|
Accumulated
|
Total
|
||||||||||||||||||||||
Capital
in
|
other
|
share-
|
|||||||||||||||||||||
Common
|
excess
of
|
Retained
|
Treasury
|
comprehensive
|
holders'
|
||||||||||||||||||
Shares
|
Stock
|
par
value
|
earnings
|
Stock
|
income
|
equity
|
|||||||||||||||||
Balance
September 30,
2004
|
4,849,046 | 48,490 | 22,360,834 | 5,165,666 | (1,278,884 | ) | 617,239 | 26,913,345 | |||||||||||||||
Comprehensive
income
(loss):
|
|||||||||||||||||||||||
Net
loss
|
- | - | - | (2,884,621 | ) | - | - | (2,884,621 | ) | ||||||||||||||
Foreign
currency
|
|||||||||||||||||||||||
translation
adjustment
|
- | - | - | - | - | (201,918 | ) | (201,918 | ) | ||||||||||||||
Unrealized
gain on derivatives
|
- | - | - | - | - | 95,198 | 95,198 | ||||||||||||||||
Change
in unrealized loss on
|
|||||||||||||||||||||||
marketable
securities
|
- | - | - | - | - | 46,526 | 46,526 | ||||||||||||||||
Total
comprehensive income
(loss)
|
- | - | - | - | - | - | (2,944,815 | ) | |||||||||||||||
Repurchases
of common
stock
|
- | - | - | - | (21,115 | ) | - | (21,115 | ) | ||||||||||||||
Exercise
of stock
options
|
8,355 | 84 | 22,096 | - | - | - | 22,180 | ||||||||||||||||
Stock-based
compensation
|
- | - | (67,718 | ) | - | - | - | (67,718 | ) | ||||||||||||||
Deferred
compensation
amortization
|
- | - | 76,603 | - | - | - | 76,603 | ||||||||||||||||
Balance
September 30,
2005
|
4,857,401 | 48,574 | 22,391,815 | 2,281,045 | (1,299,999 | ) | 557,045 | 23,978,480 | |||||||||||||||
Comprehensive
income
(loss):
|
|||||||||||||||||||||||
Net
loss
|
- | - | - | (546,555 | ) | - | - | (546,555 | ) | ||||||||||||||
Foreign
currency
|
|||||||||||||||||||||||
translation
adjustment
|
- | - | - | - | - | 425,286 | 425,286 | ||||||||||||||||
Unrealized
loss on derivatives
|
- | - | - | - | - | (8,091 | ) | (8,091 | ) | ||||||||||||||
Change
in unrealized loss on
|
|||||||||||||||||||||||
marketable
securities
|
- | - | - | - | - | (625 | ) | (625 | ) | ||||||||||||||
Total
comprehensive income
(loss)
|
- | - | - | - | - | - | (129,985 | ) | |||||||||||||||
Exercise
of stock
options
|
3,500 | 35 | 7,665 | - | - | - | 7,700 | ||||||||||||||||
Stock-based
compensation
|
- | - | 152,413 | - | - | - | 152,413 | ||||||||||||||||
Deferred
compensation
amortization
|
- | - | 10,233 | - | - | - | 10,233 | ||||||||||||||||
Balance
September 30,
2006
|
4,860,901 | $ | 48,609 | $ | 22,562,126 | $ | 1,734,490 | $ | (1,299,999 | ) | $ | 973,615 | $ | 24,018,841 | |||||||||
Comprehensive
income
(loss):
|
|||||||||||||||||||||||
Net
income
|
- | - | - | 7,886,282 | - | - | 7,886,282 | ||||||||||||||||
Foreign
currency
|
|||||||||||||||||||||||
translation
adjustment
|
- | - | - | - | - | 689,151 | 689,151 | ||||||||||||||||
Unrealized
loss on derivatives, net of tax
|
- | - | - | - | - | (16,566 | ) | (16,566 | ) | ||||||||||||||
Change
in unrealized loss on
|
|||||||||||||||||||||||
marketable
securities, net of tax
|
- | - | - | - | - | 1,292 | 1,292 | ||||||||||||||||
Total
comprehensive income
(loss)
|
- | - | - | - | - | - | 8,560,159 | ||||||||||||||||
Distribution
of deferred comp.
shares
|
- | - | (472,187 | ) | - | 472,187 | - | - | |||||||||||||||
Exercise
of stock
options
|
192,602 | 1,926 | 594,738 | - | (311,916 | ) | - | 284,748 | |||||||||||||||
Stock-based
compensation
|
- | - | 168,671 | - | - | - | 168,671 | ||||||||||||||||
Tax
benefit from exercise of stock
options
|
- | - | 10,327 | - | - | - | 10,327 | ||||||||||||||||
Deferred
compensation
amortization
|
- | - | 10,610 | - | - | - | 10,610 | ||||||||||||||||
Balance
September 30,
2007
|
5,053,503 | $ | 50,535 | $ | 22,874,285 | $ | 9,620,772 | $ | (1,139,728 | ) | $ | 1,647,492 | $ | 33,053,356 | |||||||||
See
accompanying notes to
consolidated financial statements.
|
2007
|
2006
|
2005
|
||||||||||
Cash
flows from operating
activities:
|
||||||||||||
Net
income
(loss)
|
$ | 7,886,282 | $ | (546,555 | ) | $ | (2,884,621 | ) | ||||
Adjustments
to reconcile net
income (loss) to net
|
||||||||||||
cash
provided by
(used in) operating activities:
|
||||||||||||
Deferred
income taxes
|
(3,497,576 | ) | - | - | ||||||||
Depreciation
and amortization
|
892,534 | 973,535 | 999,942 | |||||||||
Amortization
of deferred compensation
|
10,611 | 10,233 | 76,603 | |||||||||
Stock
compensation expense
|
168,671 | 152,413 | (67,718 | ) | ||||||||
Extraordinary
gain on acquisition
|
- | - | (210,968 | ) | ||||||||
Loss
on sale of marketable securities
|
- | - | 44,936 | |||||||||
Change
in assets and
liabilities:
|
||||||||||||
Accounts
receivable,
net
|
(1,224,166 | ) | (871,872 | ) | 133,959 | |||||||
Inventories
|
(753,723 | ) | (1,357,802 | ) | 2,605,961 | |||||||
Recoverable
income
taxes
|
- | - | 239,402 | |||||||||
Prepaid
expenses and
other current assets
|
(84,724 | ) | (52,070 | ) | (36,549 | ) | ||||||
Other
assets
|
122,350 | 390,364 | 6,434 | |||||||||
Accounts
payable
|
(903,577 | ) | 1,641,824 | (847,762 | ) | |||||||
Accrued
compensation
and employee benefits
|
393,240 | 57,959 | 277,966 | |||||||||
Accrued
expenses
|
349,128 | 13,761 | (137,935 | ) | ||||||||
Unearned
revenue
|
(24,486 | ) | 114,872 | (48,048 | ) | |||||||
Income
taxes
payable
|
249,190 | 102,964 | (299,358 | ) | ||||||||
Other
liabilities
|
49,919 | 92,774 | (366,684 | ) | ||||||||
Net
cash provided by (used in) operating activities
|
3,633,673 | 722,400 | (514,440 | ) | ||||||||
Cash
flows from investing
activities:
|
||||||||||||
Capital
expenditures
|
(296,332 | ) | (510,375 | ) | (556,643 | ) | ||||||
Acquisition,
net of
cash acquired
|
- | - | (868,000 | ) | ||||||||
Net
decrease
(increase) in marketable securities
|
(102,392 | ) | (5,492 | ) | 1,998,458 | |||||||
Net
cash provided by (used in) investing activities
|
(398,724 | ) | (515,867 | ) | 573,815 | |||||||
Cash
flows from financing
activities:
|
||||||||||||
Repayments
of
long-term debt
|
(327,309 | ) | (403,419 | ) | (286,470 | ) | ||||||
Proceeds
from exercise
of stock options
|
284,748 | 7,700 | 22,180 | |||||||||
Repurchases
of common
stock
|
- | - | (21,115 | ) | ||||||||
Net
cash used in financing activities
|
(42,561 | ) | (395,719 | ) | (285,405 | ) | ||||||
Effect
of exchange rate changes on
cash
|
(23,612 | ) | 10,342 | (18,990 | ) | |||||||
Net
increase (decrease) in
cash
|
3,168,776 | (178,844 | ) | (245,020 | ) | |||||||
Cash
at beginning of
year
|
5,639,334 | 5,818,178 | 6,063,198 | |||||||||
Cash
at end of
year
|
$ | 8,808,110 | $ | 5,639,334 | $ | 5,818,178 | ||||||
Cash
paid during the fiscal year
for:
|
||||||||||||
Income
taxes
|
$ | 217,873 | $ | 35,802 | $ | 345,396 | ||||||
Interest
|
$ | 143,159 | $ | 169,356 | $ | 176,435 | ||||||
See
accompanying notes to
consolidated financial statements.
|
2005
|
||||
Reported
net
loss
|
$ | (2,884,621 | ) | |
Stock-based
compensation cost, net
of tax
|
(194,935 | ) | ||
Pro
forma net
loss
|
$ | (3,079,556 | ) | |
Reported
basic and diluted
EPS
|
$ | (.63 | ) | |
Pro
forma basic and diluted
EPS
|
$ | (.67 | ) |
2007
|
2006
|
2005
|
||||||||||
Risk-free interest rate | 4.8 | % | 4.4 | % | 3.8 | % | ||||||
Dividend yield | 0.0 | % | 0.0 | % | 0.0 | % | ||||||
Volatility factor | 61.52 | % | 75.9 | % | 62.2 | % | ||||||
Weighted average expected life |
5
years
|
5
years
|
4
years
|
Balance as of September 30, 2005 | $ | 452,000 | ||
Deduct: Expenditures | (268,000 | ) | ||
Add: Provision | 218,000 | |||
Balance as of September 30, 2006 | $ | 402,000 | ||
Deduct: Expenditures | (267,000 | ) | ||
Add: Provision | 267,000 | |||
Balance as of September 30, 2007 | $ | 402,000 |
2007
|
2006
|
2005
|
||||||||||
Current:
|
||||||||||||
Federal
|
$ | 85,327 | $ | - | $ | - | ||||||
State
|
- | - | 8,805 | |||||||||
Foreign
|
459,330 | 150,000 | 18,195 | |||||||||
544,657 | 150,000 | 27,000 | ||||||||||
Deferred:
|
||||||||||||
Federal
|
(3,151,837 | ) | - | - | ||||||||
State
|
(298,063 | ) | - | - | ||||||||
Foreign
|
(60,330 | ) | - | - | ||||||||
(3,510,230 | ) | - | - | |||||||||
Total
|
$ | (2,965,573 | ) | $ | 150,000 | $ | 27,000 | |||||
2007
|
2006
|
2005
|
||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
U.S.
statutory
tax
|
$ | 1,673,000 | 34.0 | % | $ | (135,000 | ) | (34.0 | )% | $ | (972,000 | ) | (34.0 | )% | ||||||||||
Increase
(decrease)
in
|
||||||||||||||||||||||||
valuation
allowance
|
(4,739,000 | ) | (96.3 | ) | 423,000 | 106.5 | 1,019,000 | 35.6 | ||||||||||||||||
Unrecognized
prior
year
|
||||||||||||||||||||||||
foreign
operating
|
||||||||||||||||||||||||
losses
|
- | - | (121,000 | ) | (30.6 | ) | - | - | ||||||||||||||||
Foreign
tax
rate
|
||||||||||||||||||||||||
difference
|
51,000 | 1.0 | 42,000 | 10.6 | - | - | ||||||||||||||||||
Permanent
differences
|
(46,000 | ) | (0.9 | ) | (41,000 | ) | (10.2 | ) | - | - | ||||||||||||||
State
tax, net
of
|
||||||||||||||||||||||||
federal
benefit
|
- | - | - | - | 6,000 | 0.2 | ||||||||||||||||||
Other,
net
|
95,000 | 1.9 | (18,000 | ) | (4.5 | ) | (26,000 | ) | (0.9 | ) | ||||||||||||||
Effective
tax
rate
|
$ | (2,966,000 | ) | (60.3 | )% | $ | 150,000 | 37.8 | % | $ | 27,000 | 0.9 | % | |||||||||||
2007
|
2006
|
|||||||
Deferred
tax
assets:
|
||||||||
Inventories
|
$ | 683,000 | $ | 619,000 | ||||
Accrued
compensation
|
430,000 | 666,000 | ||||||
Warranty
accrual
|
149,000 | 147,000 | ||||||
Depreciation
|
450,000 | 394,000 | ||||||
Allowance
for doubtful
accounts receivable
|
325,000 | 421,000 | ||||||
Unearned
revenue
|
458,000 | 378,000 | ||||||
U.S.
net operating
loss carryforwards
|
902,000 | 2,372,000 | ||||||
Foreign
net operating
loss carryforwards
|
547,000 | 300,000 | ||||||
AMT
credit
carryforward
|
75,000 | - | ||||||
U.S.
capital loss
carryforward
|
15,000 | 17,000 | ||||||
Unrealized
loss on
derivatives
|
22,000 | 8,000 | ||||||
Other
|
59,000 | 1,000 | ||||||
Gross
deferred tax assets
|
4,115,000 | 5,323,000 | ||||||
Deferred
tax
liabilities:
|
||||||||
Other
|
37,000 | 37,000 | ||||||
Gross
deferred tax liabilities
|
37,000 | 37,000 | ||||||
Total
deferred tax assets and liabilities
|
4,078,000 | 5,286,000 | ||||||
Less
valuation allowance
|
(547,000 | ) | (5,286,000 | ) | ||||
Net
deferred tax assets and liabilities
|
$ | 3,531,000 | $ | - | ||||
2007
|
2006
|
|||||||
U.S.
bank mortgage
loans
|
$ | 1,740,335 | $ | 2,010,201 | ||||
U.K.
bank term
loan
|
- | 54,540 | ||||||
Other
|
7,409 | 7,424 | ||||||
1,747,744 | 2,072,165 | |||||||
Less
current
maturities
|
1,747,744 | 331,830 | ||||||
$ | - | $ | 1,740,335 | |||||
2007
|
2006
|
|||||||
Foreign
currency translation
adjustment
|
$ | 1,687,283 | $ | 998,132 | ||||
Unrealized
loss on derivatives,
net of tax
|
(38,407 | ) | (21,841 | ) | ||||
Unrealized
loss on marketable
securities, net of tax
|
(1,384 | ) | (2,676 | ) | ||||
Accumulated
other comprehensive
income
|
$ | 1,647,492 | $ | 973,615 |
2007
|
2006
|
2005
|
||||||||||
Net
sales
|
||||||||||||
U.S.
|
$ | 42,752,000 | $ | 35,358,000 | $ | 36,035,000 | ||||||
Foreign
|
26,321,000 | 20,921,000 | 20,021,000 | |||||||||
Total
|
$ | 69,073,000 | $ | 56,279,000 | $ | 56,056,000 | ||||||
Long-lived
assets
|
||||||||||||
U.S.
|
$ | 4,129,000 | $ | 4,518,000 | $ | 4,710,000 | ||||||
Foreign
|
1,633,000 | 1,711,000 | 1,906,000 | |||||||||
Total
|
$ | 5,762,000 | $ | 6,229,000 | $ | 6,616,000 |
Weighted
|
||||||||||
Average
|
||||||||||
Weighted
|
Remaining
|
|||||||||
Average
|
Contractual
|
Aggregate
|
||||||||
Number
|
Exercise
|
Term
|
Instrinsic
|
|||||||
of
Options
|
Price
|
(in
years)
|
Value
|
|||||||
Balance
- September 30,
2004
|
555,320 | $ | 3.50 | |||||||
Options
granted
|
86,000 | $ | 3.00 | |||||||
Options
exercised
|
(8,355 | ) | $ | 2.65 | ||||||
Options
forfeited
|
(50,224 | ) | $ | 4.58 | ||||||
Balance
- September 30,
2005
|
582,741 | $ | 3.35 | |||||||
Options
granted
|
39,975 | $ | 3.17 | |||||||
Options
exercised
|
(3,500 | ) | $ | 2.20 | ||||||
Options
forfeited
|
(73,933 | ) | $ | 3.79 | ||||||
Balance
- September 30,
2006
|
545,283 | $ | 3.28 | |||||||
Options
granted
|
77,000 | $ | 3.59 | |||||||
Options
exercised
|
(192,602 | ) | $ | 3.10 | ||||||
Options
forfeited
|
(23,000 | ) | $ | 3.00 | ||||||
Balance
- September 30,
2007
|
406,681 | $ | 3.45 |
2.8
|
$ 3,348,674
|
|||||
Exercisable
at September 30,
2007
|
247,761 | $ | 3.53 |
1.7
|
$ 2,019,918
|
Weighted
|
||||||||
Average
|
||||||||
Number
|
Grant-Date
|
|||||||
of
Options
|
Fair
Value
|
|||||||
Nonvested
at September 30,
2005
|
294,253 | $ | 1.79 | |||||
Granted
|
39,975 | $ | 2.05 | |||||
Vested
|
(88,372 | ) | $ | 1.79 | ||||
Forfeited
|
(33,500 | ) | $ | 2.40 | ||||
Nonvested
at September 30,
2006
|
212,356 | $ | 1.74 | |||||
Granted
|
77,000 | $ | 2.03 | |||||
Vested
|
(128,336 | ) | $ | 1.75 | ||||
Forfeited
|
(2,100 | ) | $ | 1.52 | ||||
Nonvested
at September 30,
2007
|
158,920 | $ | 1.87 |
2007
|
2006
|
2005
|
||||||||||
Basic
EPS Computation
|
||||||||||||
Net
income
(loss)
|
$ | 7,886,282 | $ | (546,555 | ) | $ | (2,884,621 | ) | ||||
Weighted
average shares
outstanding
|
4,719,444 | 4,571,905 | 4,566,621 | |||||||||
Basic
income (loss) per
share
|
$ | 1.67 | $ | (.12 | ) | $ | (.63 | ) | ||||
Basic
and Diluted EPS Computation
|
||||||||||||
Net
income
(loss)
|
$ | 7,886,282 | $ | (546,555 | ) | $ | (2,884,621 | ) | ||||
Weighted
average shares
outstanding
|
4,719,444 | 4,571,905 | 4,566,621 | |||||||||
Stock
options
|
202,658 | - | - | |||||||||
Stock
compensation
arrangements
|
31,156 | - | - | |||||||||
Diluted
shares
outstanding
|
4,953,258 | 4,571,905 | 4,566,621 | |||||||||
Diluted
income (loss) per
share
|
$ | 1.59 | $ | (.12 | ) | $ | (.63 | ) |
Earnings
(Loss)
|
||||||||||||||||||||
Net
|
Per
Share
|
|||||||||||||||||||
Quarter
|
Income
|
|||||||||||||||||||
Ended
|
Net
Sales
|
Gross
Profit
|
(Loss)
|
Basic
|
Diluted
|
|||||||||||||||
Fiscal
2007
|
||||||||||||||||||||
December
|
$ | 17,883,000 | $ | 7,202,000 | $ | 1,115,000 | $ | .24 | $ | .24 | ||||||||||
March
|
16,892,000 | 7,148,000 | 802,000 | .17 | .16 | |||||||||||||||
June
|
17,140,000 | 7,218,000 | 1,035,000 | .22 | .20 | |||||||||||||||
September
|
17,158,000 | 7,818,000 | 4,934,000 | 1.03 | .97 | |||||||||||||||
Total
|
$ | 69,073,000 | $ | 29,386,000 | $ | 7,886,000 | $ | 1.67 | $ | 1.59 | ||||||||||
Fiscal
2006
|
||||||||||||||||||||
December
|
$ | 14,259,000 | $ | 5,636,000 | $ | 147,000 | $ | .03 | $ | .03 | ||||||||||
March
|
12,223,000 | 4,578,000 | (848,000 | ) | (.19 | ) | (.19 | ) | ||||||||||||
June
|
14,675,000 | 5,914,000 | 37,000 | .01 | .01 | |||||||||||||||
September
|
15,122,000 | 5,966,000 | 117,000 | .03 | .03 | |||||||||||||||
Total
|
$ | 56,279,000 | $ | 22,094,000 | $ | (547,000 | ) | $ | (.12 | ) | $ | (.12 | ) |
Balance
at
|
Charged
to
|
Balance
|
||||||||||||||
beginning
|
costs
and
|
at
end
|
||||||||||||||
Description
|
of
period
|
expenses
|
Deductions
|
of
period
|
||||||||||||
Allowance for uncollectible accounts: | ||||||||||||||||
September 30, 2007 | $ | 1,325,000 | $ | 37,000 | $ | 400,000 | $ | 962,000 | ||||||||
September 30, 2006 | $ | 1,297,000 | $ | 48,000 | $ | 20,000 | $ | 1,325,000 | ||||||||
September 30, 2005 | $ | 1,162,000 | $ | 198,000 | $ | 63,000 | $ | 1,297,000 | ||||||||
Deferred income tax valuation allowance: | ||||||||||||||||
September 30, 2007 | $ | 5,286,000 | $ | - | $ | 4,739,000 | $ | 547,000 | ||||||||
September 30, 2006 | $ | 4,863,000 | $ | 423,000 | $ | - | $ | 5,286,000 | ||||||||
September 30, 2005 | $ | 3,844,000 | $ | 1,019,000 | $ | - | $ | 4,863,000 |
By
/s/
Kenneth M.
Darby
|
By
/s/
John M.
Badke
|
Kenneth
M. Darby
|
John
M. Badke
|
Chairman
and
|
Senior
Vice President, Finance
|
Chief
Executive Officer
|
and
Chief Financial Officer
|
/s/
Kenneth M.
Darby
|
January
15,
2007
|
|
Kenneth
M. Darby
|
Chairman
and CEO
|
Date
|
/s/
Clifton H.W.
Maloney
|
January
15,
2007
|
|
Clifton
H.W. Maloney
|
Director
|
Date
|
/s/
Peter F.
Neumann
|
January
15,
2007
|
|
Peter
F. Neumann
|
Director
|
Date
|
/s/
W. Gregory
Robertson
|
January
15,
2007
|
|
W.
Gregory Robertson
|
Director
|
Date
|
/s/
Arthur D.
Roche
|
January
15,
2007
|
|
Arthur
D. Roche
|
Director
|
Date
|