Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2019 | May 07, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | NAPCO SECURITY TECHNOLOGIES, INC | |
Entity Central Index Key | 0000069633 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | NSSC | |
Entity Common Stock, Shares Outstanding | 18,474,879 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 5,499 | $ 5,308 |
Accounts receivable, net of allowance for doubtful accounts of $117 and $195 at March 31, 2019 and June 30, 2018, respectively | 22,369 | 22,738 |
Inventories | 28,699 | 24,533 |
Prepaid expenses and other current assets | 1,892 | 1,124 |
Total Current Assets | 58,459 | 53,703 |
Inventories - non-current | 5,875 | 4,401 |
Deferred income taxes | 82 | 564 |
Property, plant and equipment, net | 7,602 | 6,791 |
Intangible assets, net | 7,310 | 7,545 |
Other assets | 267 | 265 |
TOTAL ASSETS | 79,595 | 73,269 |
CURRENT LIABILITIES | ||
Accounts payable | 4,856 | 4,807 |
Accrued expenses | 5,298 | 2,112 |
Accrued salaries and wages | 2,072 | 2,190 |
Accrued income taxes | 548 | 293 |
Total Current Liabilities | 12,774 | 9,402 |
Accrued income taxes | 414 | 414 |
Total Liabilities | 13,188 | 9,816 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common Stock, par value $0.01 per share; 40,000,000 shares authorized; 21,224,189 and 21,204,327 shares issued; and 18,474,879 and 18,729,082 shares outstanding, respectively | 212 | 212 |
Additional paid-in capital | 17,066 | 16,890 |
Retained earnings | 66,196 | 59,420 |
Less: Treasury Stock, at cost (2,749,310 and 2,475,245 shares, respectively) | (17,067) | (13,069) |
TOTAL STOCKHOLDERS' EQUITY | 66,407 | 63,453 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 79,595 | $ 73,269 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Allowance for Doubtful Accounts Receivable | $ 117 | $ 195 |
Common Stock, Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 40,000,000 | 40,000,000 |
Common Stock, shares issued | 21,224,189 | 21,204,327 |
Common Stock, shares outstanding | 18,474,879 | 18,729,082 |
Treasury Stock, shares | 2,749,310 | 2,475,245 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Net sales: | |||||
Equipment revenues | $ 20,597 | $ 19,042 | $ 60,872 | $ 55,926 | |
Service revenues | 4,546 | 3,158 | 12,476 | 8,560 | |
Net sales | [1] | 25,143 | 22,200 | 73,348 | 64,486 |
Cost of sales: | |||||
Equipment related expenses | 13,471 | 12,557 | 39,681 | 36,580 | |
Service related expenses | 943 | 751 | 2,708 | 2,049 | |
Cost of sales | 14,414 | 13,308 | 42,389 | 38,629 | |
Gross Profit | 10,729 | 8,892 | 30,959 | 25,857 | |
Research and development | 1,851 | 1,669 | 5,358 | 4,915 | |
Selling, general, and administrative expenses | 5,231 | 5,311 | 16,901 | 16,805 | |
Operating expenses | 7,082 | 6,980 | 22,259 | 21,720 | |
Operating Income | 3,647 | 1,912 | 8,700 | 4,137 | |
Interest expense, net | 5 | 19 | 18 | 67 | |
Income before Provision for Income Taxes | 3,642 | 1,893 | 8,682 | 4,070 | |
Provision for Income Taxes | 520 | 64 | 1,187 | 118 | |
Net Income | $ 3,122 | $ 1,829 | $ 7,495 | $ 3,952 | |
Income per share: | |||||
Basic | $ 0.17 | $ 0.10 | $ 0.40 | $ 0.21 | |
Diluted | $ 0.17 | $ 0.10 | $ 0.40 | $ 0.21 | |
Weighted average number of shares outstanding: | |||||
Basic | 18,489,000 | 18,737,000 | 18,607,000 | 18,811,000 | |
Diluted | 18,533,000 | 18,772,000 | 18,654,000 | 18,845,000 | |
[1] | All of the Company's sales originate in the United States and are shipped primarily from the Company's facilities in the United States. There were no sales into any one foreign country in excess of 10% of total Net Sales. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 7,495 | $ 3,952 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,032 | 1,026 |
Provision for doubtful accounts | 3 | 25 |
Deferred income taxes | 673 | (449) |
Non-cash stock based compensation expense | 152 | 141 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,131 | 2,193 |
Inventories | (5,999) | (241) |
Prepaid expenses and other current assets | 307 | 160 |
Other assets | (11) | (151) |
Accounts payable, accrued expenses, accrued salaries and wages, accrued income taxes | (20) | (1,969) |
Net Cash Provided by Operating Activities | 5,763 | 4,687 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant, and equipment | (1,598) | (1,018) |
Net Cash Used in Investing Activities | (1,598) | (1,018) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal payments on long-term debt | 0 | (1,500) |
Proceeds from stock option exercises | 24 | 61 |
Cash paid for purchase of treasury stock | (3,998) | (1,337) |
Net Cash Used in Financing Activities | (3,974) | (2,776) |
Net Change in Cash and Cash Equivalents | 191 | 893 |
CASH AND CASH EQUIVALENTS - Beginning | 5,308 | 3,454 |
CASH AND CASH EQUIVALENTS - Ending | 5,499 | 4,347 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Interest paid, net | 18 | 63 |
Income taxes paid | 258 | 184 |
Surrender of Common Shares | $ 8 | $ 7 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | NOTE 1 - Nature of Business and Summary of Significant Accounting Policies Nature of Business Napco Security Technologies, Inc. and Subsidiaries (the "Company" or “Napco”) is a diversified manufacturer of security products, encompassing access control systems, door security products, intrusion and fire alarm systems, alarm communication services, and video surveillance products for commercial and residential use. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. The Company's fiscal year begins on July 1 and ends on June 30. Historically, the end users of Napco's products want to install its products prior to the summer; therefore sales of its products historically peak in the period April 1 through June 30, the Company's fiscal fourth quarter, and are reduced in the period July 1 through September 30, the Company's fiscal first quarter. In addition, demand is affected by the housing and construction markets. Deterioration of the current economic conditions may also affect this trend. Significant Accounting Policies Principles of Consolidation The unaudited condensed consolidated financial statements of the Company, including these notes, have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the rules and regulations promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been omitted or condensed. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended June 30, 2018 and the notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on September 13, 2018. Results of consolidated operations for the interim periods are not necessarily indicative of a full year’s operating results. The unaudited condensed consolidated financial statements include the accounts of Napco Security Technologies, Inc. and all of its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation . Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical estimates include management's judgments associated with reserves for sales returns and allowances, concentration of credit risk, inventory reserves, intangible assets and income taxes. Actual results could differ from those estimates . Fair Value of Financial Instruments The methods and assumptions used to estimate the fair value of the following classes of financial instruments were: Current Assets and Current Liabilities - The carrying amount of cash and cash equivalents, certificates of deposits, current receivables and payables and certain other short-term financial instruments approximate their fair value as of March 31, 2019 and June 30, 2018 due to their short-term maturities. Cash and Cash Equivalents Cash and cash equivalents include approximately $460,000 of short-term time deposits at March 31, 2019 and June 30, 2018. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company has cash balances in banks in excess of the maximum amount insured by the FDIC and other international agencies as of March 31, 2019 and June 30, 2018. The Company has not historically experienced any credit losses with balances in excess of FDIC limits. Accounts Receivable Accounts receivable is stated net of the reserves for doubtful accounts of $117,000 and $195,000 as of March 31, 2019 and June 30, 2018, respectively. Our reserves for doubtful accounts are subjective critical estimates that have a direct impact on reported net earnings. These reserves are based upon the evaluation of our accounts receivable aging, specific exposures, sales levels and historical trends. Inventories Inventories are valued at the lower of cost or net realizable value, with cost being determined on the first-in, first-out (FIFO) method. The reported net value of inventory includes finished saleable products, work-in-process and raw materials that will be sold or used in future periods. Inventory costs include raw materials, direct labor and overhead. The Company’s overhead expenses are applied based, in part, upon estimates of the proportion of those expenses that are related to procuring and storing raw materials as compared to the manufacture and assembly of finished products. These proportions, the method of their application, and the resulting overhead included in ending inventory, are based in part on subjective estimates and actual results could differ from those estimates. In addition, the Company records an inventory obsolescence reserve, which represents any excess of the cost of the inventory over its estimated market value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, requirements to support forecasted sales, and the ability to find alternate applications of its raw materials and to convert finished product into alternate versions of the same product to better match customer demand. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. There is inherent professional judgment and subjectivity made by both production and engineering members of management in determining the estimated obsolescence percentage. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current. Property, Plant, and Equipment Property, plant, and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred; costs of major renewals and improvements are capitalized. At the time property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and accumulated depreciation accounts and the profit or loss on such disposition is reflected in income. Depreciation is recorded over the estimated service lives of the related assets using primarily the straight-line method. Amortization of leasehold improvements is calculated by using the straight-line method over the estimated useful life of the asset or lease term, whichever is shorter. Intangible Assets Intangible assets determined to have indefinite lives are not amortized but are tested for impairment at least annually. Intangible assets with definite lives are amortized over their useful lives. Infinite-lived intangible assets are reviewed for impairment at least annually at the Company’s fiscal year end of June 30 or more often whenever there is an indication that the carrying amount may not be recovered. The Company’s acquisition of substantially all of the assets and certain liabilities of G. Marks Hardware, Inc. (“Marks”) in August 2008 included intangible assets recorded at fair value on the date of acquisition. The customer relationships are amortized over their estimated useful lives of twenty years. The Marks trade name was deemed to have an indefinite life. Changes in intangible assets are as follows (in thousands): March 31, 2019 June 30, 2018 Cost Accumulated amortization Net book value Cost Accumulated amortization Net book value Customer relationships $ 9,800 $ (8,390 ) $ 1,410 $ 9,800 $ (8,155 ) $ 1,645 Trade name 5,900 — 5,900 5,900 — 5,900 $ 15,700 $ (8,390 ) $ 7,310 $ 15,700 $ (8,155 ) $ 7,545 Amortization expense for intangible assets subject to amortization was approximately $78,000 and $93,000 for the three months ended March 31, 2019 and 2018, respectively. Amortization expense for intangible assets subject to amortization was approximately $235,000 and $278,000 for the nine months ended March 31, 2019 and 2018, respectively. Amortization expense for each of the next five fiscal years is estimated to be as follows: 2019 - $313,000; 2020 -$264,000; 2021 - $223,000; 2022 - $188,000; and 2023 - $159,000. The weighted average amortization period for intangible assets was 9.4 years and 10.4 years at March 31, 2019 and 2018, respectively. Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets in question may not be recoverable. Impairment would be recorded in circumstances where undiscounted cash flows expected to be generated by an asset are less than the carrying value of that asset. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”), Topic 606, Revenue from Contracts with Customers , which the Company adopted effective July 1, 2018. Accordingly, the Company recognizes revenue when its customers obtain control of its products or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods and services. See Note 2 – Revenue Recognition for additional accounting policies and transition disclosures. Advertising and Promotional Costs Advertising and promotional costs are included in "Selling, General and Administrative" expenses in the consolidated statements of income and are expensed as incurred. Advertising expense for the three months ended March 31, 2019 and 2018 was $190,000 and $171,000, respectively. Advertising expense for the nine months ended March 31, 2019 and 2018 was $1,275,000 and $1,274,000, respectively. Research and Development Costs Research and development costs incurred by the Company are charged to expense as incurred and are included in operating expenses in the consolidated statements of operations. Company-sponsored research and development expense for the three months ended March 31, 2019 and 2018 was $1,851,000 and $1,669,000, respectively. Company-sponsored research and development expense for the nine months ended March 31, 2019 and 2018 was $5,358,000 and $4,915,000, respectively. These amounts, previously recorded in cost of sales have been reclassified to research and development to conform with the current period presentation. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company measures and recognizes the tax implications of positions taken or expected to be taken in its tax returns on an ongoing basis. Net Income Per Share Basic net income per common share (Basic EPS) is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per common share (Diluted EPS) is computed by dividing net income by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. The following provides a reconciliation of information used in calculating the per share amounts for the three months ended March 31 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2019 2018 2019 2018 2019 2018 Basic EPS $ 3,122 $ 1,829 18,489 18,737 $ 0.17 $ 0.10 Effect of Dilutive Securities: Stock Options — — 44 35 — — Diluted EPS $ 3,122 $ 1,829 18,533 18,772 $ 0.17 $ 0.10 No options to purchase shares of common stock were excluded for the three months ended March 31, 2019 and 2018. The following provides a reconciliation of information used in calculating the per share amounts for the nine months ended March 31 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2019 2018 2019 2018 2019 2018 Basic EPS $ 7,495 $ 3,952 18,607 18,811 $ 0.40 $ 0.21 Effect of Dilutive Securities: Stock Options — — 47 34 — — Diluted EPS $ 7,495 $ 3,952 18,654 18,845 $ 0.40 $ 0.21 Options to purchase 3,942 and 290 shares of common stock were excluded for the nine months ended March 31, 2019 and 2018, respectively, and were not included in the computation of Diluted EPS because their inclusion would be anti-dilutive. These options were still outstanding at the end of the respective periods. Stock-Based Compensation The Company has established three share incentive programs as discussed in Note 8. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the vesting period. Determining the fair value of share-based awards at the grant date requires assumptions and judgments about expected volatility and forfeiture rates, among other factors. Stock-based compensation costs of $0 and $5,000 were recognized for the three months ended March 31, 2019 and 2018, respectively. Stock-based compensation costs of $152,000 and $141,000 were recognized for the nine months ended March 31, 2019 and 2018, respectively. Foreign Currency The Company has determined the functional currency of all foreign subsidiaries is the U.S Dollar. All foreign operations are considered a direct and integral part or extension of the Company's operations. The day-to-day operations of all foreign subsidiaries are dependent on the economic environment of the U.S Dollar. Therefore, no realized and unrealized gains and losses associated with foreign currency translation is recorded for the three and nine months ended March 31, 2019 or 2018. Comprehensive Income For the three and nine months ended March 31, 2019 and 2018, the Company's operations did not give rise to material items includable in comprehensive income, which were not already included in net income. Accordingly, the Company's comprehensive income approximates its net income for all periods presented. Segment Reporting The Company’s reportable operating segments are determined based on the Company's management approach. The management approach is based on the way that the chief operating decision maker organizes the segments within an enterprise for making operating decisions and assessing performance. The Company's results of operations are reviewed by the chief operating decision maker on a consolidated basis and the Company operates in only one segment. The Company has presented required geographical data in Note 12. Shipping and Handling Revenues and Costs The Company records the amount billed to customers for shipping and handling in net sales ($109,000 and $105,000 in the three months ended March 31, 2019 and 2018, respectively and $313,000 and $352,000 in the nine months ended March 31, 2019 and 2018, respectively) and classifies the costs associated with these revenues in cost of sales ($280,000 and $247,000 in the three months ended March 31, 2019 and 2018, respectively and $827,000 and $706,000 in the nine months ended March 31, 2019 and 2018, respectively). Recently Issued and Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amended the accounting standards for revenue recognition. This standard superseded all prior revenue recognition standards and requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this ASU effective July 1, 2018. See Note 2, Revenue Recognition for additional accounting policy and transition disclosures. In February 2016, the FASB issued authoritative guidance that requires lessees to account for most leases on their balance sheets with the liability being equal to the present value of the lease payments. The right-of-use asset will be based on the lease liability adjusted for certain costs such as direct costs. Lease expense will be recognized similar to current accounting guidance with operating leases resulting in a straight-line expense and financing leases resulting in a front-loaded expense similar to the current accounting for capital leases. This guidance becomes effective for the Company’s fiscal 2020 first quarter, with early adoption permitted. This guidance must be adopted using a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and provides for certain practical expedients. The Company is currently evaluating the timing, impact and method of applying this guidance on its consolidated financial statements. |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 9 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | NOTE 2 – Revenue Recognition and Contracts with Customers Adoption On July 1, 2018, the Company adopted new guidance on revenue from contracts with customers using the modified retrospective method applied to contracts that were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance. The Company recorded a net decrease to opening retained earnings of approximately $720,000 (net of tax benefit of $191,000) as of July 1, 2018, for the cumulative impact of adopting the new guidance. The impact primarily related to the change in the recognition and measurement of certain types of variable consideration, which resulted in the increase in sales allowance reserves (i.e. refund liabilities) by a net of $1,627,000 and increased other assets (i.e. return related assets) by approximately $716,000. Also, due to the adoption of the new standard, the Company classified certain reserves in respect of refund liabilities that were previously presented as a reduction from receivables, to current liabilities amounting to approximately $3,203,000 as of March 31, 2019. Further, amounts related to promotion payments to customers are now classified as a reduction of sales. The impact of applying this ASU for the three and nine months ended March 31, 2019 resulted in an immaterial change in product sales. Net Sales The Company is engaged in one major line of business: the development, manufacture, and distribution of security products, encompassing access control systems, door security products, intrusion and fire alarm systems, alarm communication services, and video surveillance products for commercial and residential use. The Company also provides wireless communication service for intrusion and fire alarm systems on a monthly basis. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. Sales to unaffiliated customers are primarily shipped from the United States. The Company has customers worldwide with major concentrations in North America. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. For product sales the Company typically transfers control at a point in time upon shipment or delivery of the product. For monthly communication services the Company satisfies its performance obligation as the services are rendered and therefore recognizes revenue over the monthly period. Typically timing of revenue recognition coincides with the timing of invoicing to the customers, at which time the Company has an unconditional right to consideration. As such, the Company typically records a receivable when revenue is recognized. The contract with the customer states the final terms of the sale, including the description, quantity, and price of each product purchased. Payment for product sales is typically due within 30 and 180 days of the delivery date. Payment for monthly communication services is billed on a monthly basis and is typically due at the beginning of the month of service. The Company provides limited standard warranty for defective products, usually for a period of 24 to 36 months. The Company accepts returns for such defective products as well as for other limited circumstances. The Company also provides rebates to customers for meeting specified purchasing targets and other coupons or credits in limited circumstances. The Company establishes reserves for the estimated returns, rebates and credits and measures such variable consideration based on the expected value method using an analysis of historical data. Changes to the estimated variable consideration in subsequent periods are not material. The Company analyzes sales returns and is able to make reasonable and reliable estimates of product returns based on the Company’s past history. Estimates for sales returns are based on several factors including actual returns and based on expected return data communicated to it by its customers. Accordingly, the Company believes that its historical returns analysis is an accurate basis for its allowance for sales returns. Actual results could differ from those estimates. As a percentage of gross sales, sales returns, rebates and allowances were 8% and 7% for the three months ended March 31, 2019 and 2018, respectively. As a percentage of gross sales, sales returns, rebates and allowances were 7% and 8% for the nine months ended March 31, 2019 and 2018, respectively. In accordance with ASC 606-10-50, the Company disaggregates revenue from contracts with customers into major product lines. The Company determines that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. As noted in the accounting policy footnote, the Company’s business consists of one operating segment. Following is the disaggregation of revenues based on major product lines (in thousands): Three months ended March 31, Nine months ended March 31, 2019 2018 2019 2018 Major Product Lines: Intrusion and access alarm products $ 8,113 $ 6,859 $ 22,928 $ 20,011 Door locking devices 12,484 12,183 37,944 35,915 Services 4,546 3,158 12,476 8,560 Total Revenues $ 25,143 $ 22,200 $ 73,348 $ 64,486 |
Business and Credit Concentrati
Business and Credit Concentrations | 9 Months Ended |
Mar. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Business and Credit Concentrations | NOTE 3 - Business and Credit Concentrations An entity is more vulnerable to concentrations of credit risk if it is exposed to risk of loss greater than it would have had if it mitigated its risk through diversification of customers. Such risks of loss manifest themselves differently, depending on the nature of the concentration, and vary in significance. The Company had one customer with an accounts receivable balance that comprised 26% and 22% 14% and 12% 10% 12% and 11% |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 4 - Inventories Inventories, net of reserves are valued at lower of cost (first-in, first-out method) or net realizable value. The Company regularly reviews parts and finished goods inventories on hand and, when necessary, records a provision for excess or obsolete inventories. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current. Inventories, net of reserves consist of the following (in thousands): March 31, 2019 June 30, 2018 Component parts $ 19,710 $ 16,495 Work-in-process 5,367 4,491 Finished product 9,497 7,948 $ 34,574 $ 28,934 Classification of inventories, net of reserves (in thousands): Current $ 28,699 $ 24,533 Non-current 5,875 4,401 $ 34,574 $ 28,934 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment | NOTE 5 – Property, Plant and Equipment Property, plant and equipment consist of the following (in thousands): March 31, 2019 June 30, 2018 Useful Life in Years Land $ 904 $ 904 — Buildings 8,911 8,911 30 to 40 Molds and dies 7,326 7,275 3 to 5 Furniture and fixtures 2,656 2,599 5 to 10 Machinery and equipment 23,651 22,996 7 to 10 Leasehold improvements 1,541 706 Shorter of the lease term or life of asset 44,989 43,391 Less: accumulated depreciation and amortization (37,387 ) (36,600 ) $ 7,602 $ 6,791 Depreciation and amortization expense on property, plant, and equipment was approximately $281,000 and $259,000 for the three months ended March 31, 2019 and 2018, respectively. Depreciation and amortization expense on property, plant, and equipment was approximately $787,000 and $743,000 for the nine months ended March 31, 2019 and 2018, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 6 - Income Taxes The provision for income taxes represents Federal, foreign, and state and local income taxes. The effective rate differs from statutory rates due to the effect of state and local income taxes, tax rates in foreign jurisdictions, global intangible low-taxed income (“GILTI”), tax benefit of R&D credits and certain nondeductible expenses. Our effective tax rate will change from quarter to quarter based on recurring and non-recurring factors including, but not limited to, the geographical mix of earnings, enacted tax legislation, and state and local income taxes. In addition, changes in judgment from the evaluation of new information resulting in the recognition, de-recognition or re-measurement of a tax position taken in a prior annual period is recognized separately in the quarter of the change. On December 22, 2017, the U.S. government passed the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act is comprehensive tax legislation effective January 1, 2018 that implements complex changes to the U.S. tax code including, but not limited to, the reduction of the corporate tax rate from 35% to 21% $381,000 For the nine months ended March 31, 2019, the Company recognized a net income tax expense of $1,187,000. During the nine months ended March 31, 2019, the Company increased its reserve for uncertain income tax positions by $35,000. The Company’s practice is to recognize interest and penalties related to income tax matters in income tax expense and accrued income taxes. As of March 31, 2019, the Company had accrued interest totaling $0 and $256,000 of unrecognized net tax benefits that, if recognized, would favorably affect the Company’s effective i The Company does not expect that our unrecognized tax benefits will significantly change within the next twelve months. We file a consolidated U.S. income tax return and tax returns in certain state and local and foreign jurisdictions. As of March 31, 2019 we remain subject to examination in all tax jurisdictions for all relevant jurisdictional statutes for fiscal years 2016 and thereafter. In November 2018, the Company received a Notice of Proposed Adjustment ("NOPA") from the Internal Revenue Service (“IRS”) proposing an adjustment to income for the fiscal 2016 tax year regarding deemed dividends based on its interpretation under Internal Revenue Code (“IRC”) Section 956 arising from the intercompany balances on the books of the Company. The incremental tax liability associated with the income adjustment proposed in the NOPA would be approximately $1.8 million, excluding any interest and penalties. The Company strongly believes that the position of the IRS with regard to this matter is inconsistent with the provisions of the IRC Section 956 and management believes that the Company will prevail, and that the tax originally paid in fiscal 2016 is correct, as such no additional reserve for this tax uncertainty has been recognized. However, there can be no assurance that this matter will ultimately be resolved in the Company's favor. The Company has identified its U.S. Federal income tax return and its State return in New York as its major tax jurisdictions. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 7 - Long-Term Debt As of March 31, 2019, long-term debt consisted of a revolving line of credit of $11,000,000 (“Agreement”) which expires in June 2021. There were no outstanding borrowings under the revolving line of credit at March 31, 2019 or June 30, 2018. The Agreement provides for a LIBOR-based interest rate option of LIBOR plus 1.15% to 2.00%, depending on the ratio of outstanding debt to EBITDA, which is to be measured and adjusted quarterly, a prime rate-based option of the prime rate plus 0.25% and other terms and conditions as more fully described in the Agreement. In addition, the Agreement provides for availability to be limited to the lesser of $11,000,000 or the result of a borrowing base formula based upon the Company’s Accounts Receivables and Inventory values net of certain deductions. The Company’s obligations under the Agreement continue to be secured by all of its assets, including but not limited to, deposit accounts, accounts receivable, inventory, and the Company’s corporate headquarters in Amityville, NY, equipment and fixtures and intangible assets. In addition, the Company’s wholly-owned subsidiaries, with the exception of the Company’s foreign subsidiaries, have issued guarantees and pledges of all of their assets to secure the Company’s obligations under the Agreement. All of the outstanding common stock of the Company’s domestic subsidiaries and 65% of the common stock of the Company’s foreign subsidiaries has been pledged to secure the Company’s obligations under the Agreement. The Agreement contains various restrictions and covenants including, among others, restrictions on payment of dividends, restrictions on borrowings and compliance with certain financial ratios, as defined in the Agreement. |
Stock Options
Stock Options | 9 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options | NOTE 8 - Stock Options The Company follows ASC 718 “Share-Based Payment”, which requires that all share based payments to employees, including stock options, be recognized as compensation expense in the consolidated financial statements based on their fair values and over the requisite service period. The Company recorded non-cash compensation expense relating to stock-based compensation of $0 and $5,000 for the three months ended March 31, 2019 and 2018, respectively ($0.00 per basic and diluted share for each period) and $152,000 and $141,000 for the nine months ended March 31, 2019 and 2018, 2012 Employee Stock Option Plan In December 2012, the stockholders approved the 2012 Employee Stock Option Plan (the “2012 Employee Plan”). The 2012 Employee Plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 950,000 shares of the Company's common stock to be acquired by the holders of such awards. Under this plan, the Company may grant stock options, which are intended to qualify as incentive stock options (“ISOs”), to valued employees. Any plan participant who is granted ISOs and possesses more than 10% of the voting rights of the Company's outstanding common stock must be granted an option with a price of at least 110% of the fair market value on the date of grant. Under the 2012 Employee Plan, stock options may be granted to valued employees with a term of up to 10 years at an exercise price equal to or greater than the fair market value on the date of grant and are exercisable, in whole or in part, at 20% per year beginning on the date of grant. An option granted under this plan shall vest in full upon a “change in control” as defined in the plan. At March 31, 2019, 68,000 stock options were outstanding, 33,300 stock options were exercisable and 797,900 stock options were available for grant under this plan The fair value of each option granted during the nine months ended March 31, 2019 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2019 Risk-free interest rates 3.1 % Expected lives 10 years Expected volatility 52 % Expected dividend yields 0 % The following table reflects activity under the 2012 Employee Plan for the nine months ended March 31,: 2019 2018 Options Weighted average exercise price Options Weighted average exercise price Outstanding, beginning of year 57,200 $ 7.09 70,600 $ 5.84 Granted 24,000 15.28 25,000 9.01 Terminated/Lapsed -- -- -- -- Exercised (13,200 ) 6.43 (20,600 ) 5.55 Outstanding, end of period 68,000 $ 10.11 75,000 $ 6.97 Exercisable, end of period 33,300 $ 7.84 43,200 $ 6.34 Weighted average fair value at grant date of options granted $ 8.76 $ 5.61 Total intrinsic value of options exercised $ 150,000 $ 84,000 Total intrinsic value of options outstanding $ 723,000 $ 292,000 Total intrinsic value of options exercisable $ 430,000 $ 218,000 3,700 and 18,100 stock options were exercised during the three months ended March 31, 2019 and 2018, respectively. $3,000 and $45,000 of cash was received from option exercises during the three months ended March 31, 2019 and 2018, respectively, and the actual tax benefit realized for the tax deductions from option exercises was $3,000 and $0, respectively. 13,200 and 20,600 stock options were exercised during the nine months ended March 31, 2019 and 2018, respectively. $27,000 and $61,000 of cash was received from option exercises during the nine months ended March 31, 2019 and 2018, respectively, and the actual tax benefit realized for the tax deductions from option exercises was $7,000 and $0, respectively. The following table summarizes information about stock options outstanding under the 2012 Employee Plan at March 31, 2019: Options outstanding Options exercisable Range of exercise prices Number outstanding Weighted average remaining contractual life Weighted average exercise price Number exercisable Weighted average exercise price $4.88-$16.16 68,000 7.7 $ 10.11 33,300 $ 7.84 68,000 7.7 $ 10.11 33,300 $ 7.84 As of March 31, 2019, there was $253,000 o 24,000 and 25,000 $86,000 and $84,000, respectively. 2012 Non-Employee Stock Option Plan In December 2012, the stockholders approved the 2012 Non-Employee Stock Option Plan (the “2012 Non-Employee Plan”). This plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 50,000 shares of the Company's common stock to be acquired by the holders of such awards. Under this plan, the Company may grant stock options to non-employee directors and consultants to the Company and its subsidiaries. Under the 2012 Non-Employee Plan, stock options may be granted with a term of up to 10 years at an exercise price equal to or greater than the fair market value on the date of grant and are exercisable in whole or in part at 20% per year beginning on the date of grant. An option granted under this plan shall vest in full upon a “change in control” as defined in the plan. At March 31, 2019, 13,200 stock options were outstanding, 4,200 stock options were exercisable and no further stock options were available for grant under this plan. The following table reflects activity under the 2012 Non-Employee Plan for the nine months ended March 31,: 2019 2018 Options Weighted average exercise price Options Weighted average exercise price Outstanding, beginning of year 27,800 $ 6.85 14,200 $ 4.69 Granted — — 15,000 8.70 Terminated/Lapsed — — — — Exercised (14,600 ) 5.68 — — Outstanding, end of period 13,200 $ 8.15 29,200 $ 6.75 Exercisable, end of period 4,200 $ 6.97 15,200 $ 5.53 Weighted average fair value at grant date of options granted n/a $ 8.70 Total intrinsic value of options exercised $ 167,000 n/a Total intrinsic value of options outstanding $ 166,000 $ 86,000 Total intrinsic value of options exercisable $ 58,000 $ 63,000 3,600 and 0 stock options were exercised during the three months ended March 31, 2019 and 2018, respectively. No cash was received from option exercises during either of the three months ended March 31, 2019 or 2018 and the actual tax benefit realized for the tax deductions from option exercises was $10,000 and $0, respectively. 14,600 and 0 stock options were exercised during the nine months ended March 31, 2019 and 2018, respectively. No cash was received from option exercises during either of the nine months ended March 31, 2019 or 2018 and the actual tax benefit realized for the tax deductions from option exercises was $35,000 and $0, respectively. The following table summarizes information about stock options outstanding under the 2012 Non-Employee Plan at March 31, 2019: Options outstanding Options exercisable Range of exercise prices Number outstanding Weighted average remaining contractual life Weighted average exercise price Number exercisable Weighted average exercise price $4.37 - $8.70 13,200 8.2 $ 8.15 4,200 $ 6.97 13,200 8.2 $ 8.15 4,200 $ 6.97 As of March 31, 2019, there was $50,000 of unearned stock-based compensation cost related to share-based compensation arrangements granted under the 2012 Non-Employee Plan. No options were granted during either of the three months ended March 31, 2019 or 2018. 0 and 15,000 options were granted during the nine months ended March 31, 2019 and 2018, respectively. No options vested during either of the three months ended March 31, 2019 or 2018. No options vested during either of the nine months ended March 31, 2019 or 2018. 2018 Non-Employee Stock Option Plan In December 2018, the stockholders approved the 2018 Non-Employee Stock Option Plan (the “2018 Non-Employee Plan”). This plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 50,000 shares of the Company's common stock to be acquired by the holders of such awards. Under this plan, the Company may grant stock options to non-employee directors and consultants to the Company and its subsidiaries. Under the 2018 Non-Employee Plan, stock options may be granted with a term of up to 10 years at an exercise price equal to or greater than the fair market value on the date of grant and are exercisable in whole or in part at 20% per year beginning on the date of grant. An option granted under this plan shall vest in full upon a “change in control” as defined in the plan. At March 31, 2019, 20,000 stock options were outstanding, 4,000 stock options were exercisable and 30,000 stock options were available for grant under this plan. The fair value of each option granted during the nine months ended March 31, 2019 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2019 Risk-free interest rates 2.9 % Expected lives 10 years Expected volatility 50 % Expected dividend yields 0 % The following table reflects activity under the 2018 Non-Employee Plan for the nine months ended March 31,: 2019 2018 Options Weighted average exercise price Options Weighted average exercise price Outstanding, beginning of year — $ — — $ — Granted 20,000 16.20 — — Terminated/Lapsed — — — — Exercised — — — — Outstanding, end of period 20,000 $ 16.20 — $ — Exercisable, end of period 4,000 $ 16.20 — $ — Weighted average fair value at grant date of options granted $ 10.24 n/a Total intrinsic value of options exercised n/a n/a Total intrinsic value of options outstanding $ 91,000 n/a Total intrinsic value of options exercisable $ 18,000 n/a No stock options were exercised during the three months ended March 31, 2019 or 2018. No stock options were exercised during the nine months ended March 31, 2019 or 2018. No cash was received from option exercises during either of the three or nine months ended March 31, 2019 or 2018 and the actual tax benefit realized for the tax deductions from option exercises was $0 for each of these periods. The following table summarizes information about stock options outstanding under the 2018 Non-Employee Plan at March 31, 2019: Options outstanding Options exercisable Range of exercise prices Number outstanding Weighted average remaining contractual life Weighted average exercise price Number exercisable Weighted average exercise price $16.20-$16.20 20,000 9.7 $ 16.20 4,000 $ 16.20 20,000 9.7 $ 16.20 4,000 $ 16.20 As of March 31, 2019, there was $164,000 of unearned stock-based compensation cost related to share-based compensation arrangements granted under the 2018 Non-Employee Plan. No options were granted during the three months ended March 31, 2019 or 2018. 20,000 and 0 options were granted during the nine months ended March 31, 2019 and 2018, respectively. No options vested during either of the three months ended March 31, 2019 or 2018. The total fair value of the options vesting during the nine months ended March 31, 2019 and 2018 under this plan was $41,000 and $0, respectively. 2002 Employee Stock Option Plan In December 2002, the stockholders approved the 2002 Employee Stock Option Plan (the “2002 Employee Plan”). This plan expired in October 2012. This plan authorized the granting of awards, the exercise of which would allow up to an aggregate of 1,836,000 shares of the Company's common stock to be acquired by the holders of such awards. Under this plan, the Company may have granted stock options, which were intended to qualify as incentive stock options (ISOs), to key employees. Any plan participant who was granted ISOs and possessed more than 10% of the voting rights of the Company's outstanding common stock must have been granted an option with a price of at least 110% of the fair market value on the date of grant. Under the 2002 Employee Plan, stock options have been granted to key employees with a term of 10 years at an exercise price equal to the fair market value on the date of grant and are exercisable in whole or in part at 20% per year from the date of grant. At March 31, 2019, no stock options were outstanding or exercisable and no further stock options were available for grant under this plan after the plan expired in October 2012. No options were exercised during either of the three months ended March 31, 2019 or 2018. 0 and 5,000 stock options were exercised during the nine months ended March 31, 2019 and 2018, respectively. The 5,000 exercises were settled in cashless exercises by exchanging 2,815 shares of the Company’s common stock which were retired and returned to unissued status. No cash was received from option exercises during either of the three or nine months ended March 31, 2019 and 2018 and the actual tax benefit realized for the tax deductions from option exercises was $0 for each of these periods. |
Stockholders' Equity Transactio
Stockholders' Equity Transactions | 9 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity Transactions | NOTE 9 – Stockholders’ Equity Transactions On September 16, 2014 the Company’s board of directors authorized the repurchase of up to 1 million of the approximately 19.4 million shares of the Company’s common stock then outstanding. On December 21, 2018 the Company’s board of directors authorized the repurchase of up to an additional 500,000 shares. As of March 31, 2019 there was an aggregate 434,725 shares that may yet be purchased under the two repurchase plans. The repurchases will be made from time to time in the open market or in privately negotiated transactions subject to market conditions and the market price of the common stock. The Company repurchased 274,065 shares at a weighted average price of $14.59 under these plans during the nine months ended March 31, 2019. Shares repurchased through March 31, 2019 are included in the Company’s Treasury Stock as of March 31, 2019. |
401(k) Plan
401(k) Plan | 9 Months Ended |
Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
401(k) Plan | NOTE 10 - 401(k) Plan The Company maintains a 401(k) plan (“the Plan”) that covers all U.S. non-union employees with one or more years of service and is qualified under Sections 401(a) and 401(k) of the Internal Revenue Code. Company contributions to this plan are discretionary and totaled $34,000 and $35,000 for the three months ended March 31, 2019 and 2018, respectively, and $99,000 and $99,000 for the nine months ended March 31, 2019 and 2018, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11 - Commitments and Contingencies Leases The Company is committed under various operating leases, not including the land lease discussed below, which do not extend beyond fiscal 2023 . Rent expense, with the exception of the land lease referred to below, totaled approximately $12,000 and $11,000 for the three months ended March 31, 2019 and 2018, respectively and $34,000 and $24,000 for the nine months ended March 31, 2019 and 2018, respectively. Land Lease On April 26, 1993, one of the Company's foreign subsidiaries entered into a 99 year lease, expiring in 2092, for approximately four acres of land in the Dominican Republic at an annual cost of $288,000, on which the Company's principal production facility is located. Litigation In the normal course of business, the Company is a party to claims and/or litigation. Management believes that the settlement of such claims and/or litigation, considered in the aggregate, will not have a material adverse effect on the Company's financial position and results of operations. Employment Agreements As of March 31, 2019, the Company was obligated under three employment agreements and one severance agreement. The employment agreements are with the Company’s CEO, Senior Vice President of Sales and Marketing (“the SVP of Sales”) and the Senior Vice President of Engineering (“the SVP of Engineering”). The employment agreement with the CEO provides for an annual salary of $752,000, as adjusted for inflation; incentive compensation as may be approved by the Board of Directors from time to time and a termination payment in an amount up to 299% of the average of the prior five calendar year's compensation, subject to certain limitations, as defined in the agreement. The employment agreement renews annually in August unless either party gives the other notice of non-renewal at least six months prior to the end of the applicable term. The employment agreement with the SVP of Sales expires in October 2020 and provides for an annual salary of $334,000, a bonus arrangement for fiscal 2019 and, if terminated by the Company without cause, severance of nine months’ salary and continued company-sponsored health insurance for six months from the date of termination. The employment agreement with the SVP of Engineering expires in August 2020 and provides for an annual salary of $302,000, a bonus arrangement for fiscal 2019 and, if terminated by the Company without cause, severance of nine month’s salary and continued company-sponsored health insurance for six months from the date of termination. The severance agreement is with the Senior Vice President of Operations and Finance and provides for, if terminated by the Company without cause or within three months of a change in corporate control of the Registrant, severance of nine month’s salary, continued company-sponsored health insurance for six months from the date of termination and certain non-compete and other restrictive provisions. |
Geographical Data
Geographical Data | 9 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Geographical Data | Note 12 – Geographical Data The Company is engaged in one major line of business: the development, manufacture, and distribution of security products, encompassing access control systems, door security products, intrusion and fire alarm systems, alarm communication services, and video surveillance products for commercial and residential use. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. Sales to unaffiliated customers are primarily shipped from the United States. The Company has customers worldwide with major concentrations in North America. Financial Information Relating to Domestic and Foreign Operations (in thousands) Three months ended March 31, Nine months ended March 31, Sales to external customers(1): 2019 2018 2019 2018 Domestic $ 24,763 $ 21,659 $ 71,649 $ 62,762 Foreign 380 541 1,699 1,724 Total Net Sales $ 25,143 $ 22,200 $ 73,348 $ 64,486 Identifiable assets: March 31, 2019 June 30, 2018 United States $ 53,299 $ 52,928 Dominican Republic (2) 26,296 20,341 Total Identifiable Assets $ 79,595 $ 73,269 (1) All of the Company's sales originate in the United States and are shipped primarily from the Company's facilities in the United States. There were no sales into any one foreign country in excess of 10% of total Net Sales. (2) Consists primarily of inventories (March 31, 2019 = $22,630, June 30, 2018 = $16,592) and long-lived assets (March 31, 2019 = $3,411, June 30, 2018 = $3,462) located at the Company's principal manufacturing facility in the Dominican Republic. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business Napco Security Technologies, Inc. and Subsidiaries (the "Company" or “Napco”) is a diversified manufacturer of security products, encompassing access control systems, door security products, intrusion and fire alarm systems, alarm communication services, and video surveillance products for commercial and residential use. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. The Company's fiscal year begins on July 1 and ends on June 30. Historically, the end users of Napco's products want to install its products prior to the summer; therefore sales of its products historically peak in the period April 1 through June 30, the Company's fiscal fourth quarter, and are reduced in the period July 1 through September 30, the Company's fiscal first quarter. In addition, demand is affected by the housing and construction markets. Deterioration of the current economic conditions may also affect this trend. |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements of the Company, including these notes, have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the rules and regulations promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been omitted or condensed. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended June 30, 2018 and the notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on September 13, 2018. Results of consolidated operations for the interim periods are not necessarily indicative of a full year’s operating results. The unaudited condensed consolidated financial statements include the accounts of Napco Security Technologies, Inc. and all of its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation . |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical estimates include management's judgments associated with reserves for sales returns and allowances, concentration of credit risk, inventory reserves, intangible assets and income taxes. Actual results could differ from those estimates . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The methods and assumptions used to estimate the fair value of the following classes of financial instruments were: Current Assets and Current Liabilities - The carrying amount of cash and cash equivalents, certificates of deposits, current receivables and payables and certain other short-term financial instruments approximate their fair value as of March 31, 2019 and June 30, 2018 due to their short-term maturities. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include approximately $460,000 of short-term time deposits at March 31, 2019 and June 30, 2018. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company has cash balances in banks in excess of the maximum amount insured by the FDIC and other international agencies as of March 31, 2019 and June 30, 2018. The Company has not historically experienced any credit losses with balances in excess of FDIC limits. |
Accounts Receivable | Accounts Receivable Accounts receivable is stated net of the reserves for doubtful accounts of $117,000 and $195,000 as of March 31, 2019 and June 30, 2018, respectively. Our reserves for doubtful accounts are subjective critical estimates that have a direct impact on reported net earnings. These reserves are based upon the evaluation of our accounts receivable aging, specific exposures, sales levels and historical trends. |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value, with cost being determined on the first-in, first-out (FIFO) method. The reported net value of inventory includes finished saleable products, work-in-process and raw materials that will be sold or used in future periods. Inventory costs include raw materials, direct labor and overhead. The Company’s overhead expenses are applied based, in part, upon estimates of the proportion of those expenses that are related to procuring and storing raw materials as compared to the manufacture and assembly of finished products. These proportions, the method of their application, and the resulting overhead included in ending inventory, are based in part on subjective estimates and actual results could differ from those estimates. In addition, the Company records an inventory obsolescence reserve, which represents any excess of the cost of the inventory over its estimated market value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, requirements to support forecasted sales, and the ability to find alternate applications of its raw materials and to convert finished product into alternate versions of the same product to better match customer demand. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. There is inherent professional judgment and subjectivity made by both production and engineering members of management in determining the estimated obsolescence percentage. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred; costs of major renewals and improvements are capitalized. At the time property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and accumulated depreciation accounts and the profit or loss on such disposition is reflected in income. Depreciation is recorded over the estimated service lives of the related assets using primarily the straight-line method. Amortization of leasehold improvements is calculated by using the straight-line method over the estimated useful life of the asset or lease term, whichever is shorter. |
Intangible Assets | Intangible Assets Intangible assets determined to have indefinite lives are not amortized but are tested for impairment at least annually. Intangible assets with definite lives are amortized over their useful lives. Infinite-lived intangible assets are reviewed for impairment at least annually at the Company’s fiscal year end of June 30 or more often whenever there is an indication that the carrying amount may not be recovered. The Company’s acquisition of substantially all of the assets and certain liabilities of G. Marks Hardware, Inc. (“Marks”) in August 2008 included intangible assets recorded at fair value on the date of acquisition. The customer relationships are amortized over their estimated useful lives of twenty years. The Marks trade name was deemed to have an indefinite life. Changes in intangible assets are as follows (in thousands): March 31, 2019 June 30, 2018 Cost Accumulated amortization Net book value Cost Accumulated amortization Net book value Customer relationships $ 9,800 $ (8,390 ) $ 1,410 $ 9,800 $ (8,155 ) $ 1,645 Trade name 5,900 — 5,900 5,900 — 5,900 $ 15,700 $ (8,390 ) $ 7,310 $ 15,700 $ (8,155 ) $ 7,545 Amortization expense for intangible assets subject to amortization was approximately $78,000 and $93,000 for the three months ended March 31, 2019 and 2018, respectively. Amortization expense for intangible assets subject to amortization was approximately $235,000 and $278,000 for the nine months ended March 31, 2019 and 2018, respectively. Amortization expense for each of the next five fiscal years is estimated to be as follows: 2019 - $313,000; 2020 -$264,000; 2021 - $223,000; 2022 - $188,000; and 2023 - $159,000. The weighted average amortization period for intangible assets was 9.4 years and 10.4 years at March 31, 2019 and 2018, respectively. |
Long-Lived Assets | Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets in question may not be recoverable. Impairment would be recorded in circumstances where undiscounted cash flows expected to be generated by an asset are less than the carrying value of that asset. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”), Topic 606, Revenue from Contracts with Customers , which the Company adopted effective July 1, 2018. Accordingly, the Company recognizes revenue when its customers obtain control of its products or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods and services. See Note 2 – Revenue Recognition for additional accounting policies and transition disclosures. |
Advertising and Promotional Costs | Advertising and Promotional Costs Advertising and promotional costs are included in "Selling, General and Administrative" expenses in the consolidated statements of income and are expensed as incurred. Advertising expense for the three months ended March 31, 2019 and 2018 was $190,000 and $171,000, respectively. Advertising expense for the nine months ended March 31, 2019 and 2018 was $1,275,000 and $1,274,000, respectively. |
Research and Development Costs | Research and Development Costs Research and development costs incurred by the Company are charged to expense as incurred and are included in operating expenses in the consolidated statements of operations. Company-sponsored research and development expense for the three months ended March 31, 2019 and 2018 was $1,851,000 and $1,669,000, respectively. Company-sponsored research and development expense for the nine months ended March 31, 2019 and 2018 was $5,358,000 and $4,915,000, respectively. These amounts, previously recorded in cost of sales have been reclassified to research and development to conform with the current period presentation. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company measures and recognizes the tax implications of positions taken or expected to be taken in its tax returns on an ongoing basis. |
Net Income Per Share | Net Income Per Share Basic net income per common share (Basic EPS) is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per common share (Diluted EPS) is computed by dividing net income by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. The following provides a reconciliation of information used in calculating the per share amounts for the three months ended March 31 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2019 2018 2019 2018 2019 2018 Basic EPS $ 3,122 $ 1,829 18,489 18,737 $ 0.17 $ 0.10 Effect of Dilutive Securities: Stock Options — — 44 35 — — Diluted EPS $ 3,122 $ 1,829 18,533 18,772 $ 0.17 $ 0.10 No options to purchase shares of common stock were excluded for the three months ended March 31, 2019 and 2018. The following provides a reconciliation of information used in calculating the per share amounts for the nine months ended March 31 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2019 2018 2019 2018 2019 2018 Basic EPS $ 7,495 $ 3,952 18,607 18,811 $ 0.40 $ 0.21 Effect of Dilutive Securities: Stock Options — — 47 34 — — Diluted EPS $ 7,495 $ 3,952 18,654 18,845 $ 0.40 $ 0.21 Options to purchase 3,942 and 290 shares of common stock were excluded for the nine months ended March 31, 2019 and 2018, respectively, and were not included in the computation of Diluted EPS because their inclusion would be anti-dilutive. These options were still outstanding at the end of the respective periods. |
Stock-Based Compensation | Stock-Based Compensation The Company has established three share incentive programs as discussed in Note 8. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the vesting period. Determining the fair value of share-based awards at the grant date requires assumptions and judgments about expected volatility and forfeiture rates, among other factors. Stock-based compensation costs of $0 and $5,000 were recognized for the three months ended March 31, 2019 and 2018, respectively. Stock-based compensation costs of $152,000 and $141,000 were recognized for the nine months ended March 31, 2019 and 2018, respectively. |
Foreign Currency | Foreign Currency The Company has determined the functional currency of all foreign subsidiaries is the U.S Dollar. All foreign operations are considered a direct and integral part or extension of the Company's operations. The day-to-day operations of all foreign subsidiaries are dependent on the economic environment of the U.S Dollar. Therefore, no realized and unrealized gains and losses associated with foreign currency translation is recorded for the three and nine months ended March 31, 2019 or 2018. |
Comprehensive Income | Comprehensive Income For the three and nine months ended March 31, 2019 and 2018, the Company's operations did not give rise to material items includable in comprehensive income, which were not already included in net income. Accordingly, the Company's comprehensive income approximates its net income for all periods presented. |
Segment Reporting | Segment Reporting The Company’s reportable operating segments are determined based on the Company's management approach. The management approach is based on the way that the chief operating decision maker organizes the segments within an enterprise for making operating decisions and assessing performance. The Company's results of operations are reviewed by the chief operating decision maker on a consolidated basis and the Company operates in only one segment. The Company has presented required geographical data in Note 12. |
Shipping and Handling Revenues and Costs | Shipping and Handling Revenues and Costs The Company records the amount billed to customers for shipping and handling in net sales ($109,000 and $105,000 in the three months ended March 31, 2019 and 2018, respectively and $313,000 and $352,000 in the nine months ended March 31, 2019 and 2018, respectively) and classifies the costs associated with these revenues in cost of sales ($280,000 and $247,000 in the three months ended March 31, 2019 and 2018, respectively and $827,000 and $706,000 in the nine months ended March 31, 2019 and 2018, respectively). |
Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amended the accounting standards for revenue recognition. This standard superseded all prior revenue recognition standards and requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this ASU effective July 1, 2018. See Note 2, Revenue Recognition for additional accounting policy and transition disclosures. In February 2016, the FASB issued authoritative guidance that requires lessees to account for most leases on their balance sheets with the liability being equal to the present value of the lease payments. The right-of-use asset will be based on the lease liability adjusted for certain costs such as direct costs. Lease expense will be recognized similar to current accounting guidance with operating leases resulting in a straight-line expense and financing leases resulting in a front-loaded expense similar to the current accounting for capital leases. This guidance becomes effective for the Company’s fiscal 2020 first quarter, with early adoption permitted. This guidance must be adopted using a modified retrospective transition approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and provides for certain practical expedients. The Company is currently evaluating the timing, impact and method of applying this guidance on its consolidated financial statements. |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of intangible assets | Changes in intangible assets are as follows (in thousands): March 31, 2019 June 30, 2018 Cost Accumulated amortization Net book value Cost Accumulated amortization Net book value Customer relationships $ 9,800 $ (8,390 ) $ 1,410 $ 9,800 $ (8,155 ) $ 1,645 Trade name 5,900 — 5,900 5,900 — 5,900 $ 15,700 $ (8,390 ) $ 7,310 $ 15,700 $ (8,155 ) $ 7,545 |
Schedule of Earnings Per Share Reconciliation | The following provides a reconciliation of information used in calculating the per share amounts for the three months ended March 31 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2019 2018 2019 2018 2019 2018 Basic EPS $ 3,122 $ 1,829 18,489 18,737 $ 0.17 $ 0.10 Effect of Dilutive Securities: Stock Options — — 44 35 — — Diluted EPS $ 3,122 $ 1,829 18,533 18,772 $ 0.17 $ 0.10 The following provides a reconciliation of information used in calculating the per share amounts for the nine months ended March 31 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2019 2018 2019 2018 2019 2018 Basic EPS $ 7,495 $ 3,952 18,607 18,811 $ 0.40 $ 0.21 Effect of Dilutive Securities: Stock Options — — 47 34 — — Diluted EPS $ 7,495 $ 3,952 18,654 18,845 $ 0.40 $ 0.21 |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition and Contracts with Customers | Following is the disaggregation of revenues based on major product lines (in thousands): Three months ended March 31, Nine months ended March 31, 2019 2018 2019 2018 Major Product Lines: Intrusion and access alarm products $ 8,113 $ 6,859 $ 22,928 $ 20,011 Door locking devices 12,484 12,183 37,944 35,915 Services 4,546 3,158 12,476 8,560 Total Revenues $ 25,143 $ 22,200 $ 73,348 $ 64,486 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventories, net of reserves consist of the following (in thousands): March 31, 2019 June 30, 2018 Component parts $ 19,710 $ 16,495 Work-in-process 5,367 4,491 Finished product 9,497 7,948 $ 34,574 $ 28,934 Classification of inventories, net of reserves (in thousands): Current $ 28,699 $ 24,533 Non-current 5,875 4,401 $ 34,574 $ 28,934 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consist of the following (in thousands): March 31, 2019 June 30, 2018 Useful Life in Years Land $ 904 $ 904 — Buildings 8,911 8,911 30 to 40 Molds and dies 7,326 7,275 3 to 5 Furniture and fixtures 2,656 2,599 5 to 10 Machinery and equipment 23,651 22,996 7 to 10 Leasehold improvements 1,541 706 Shorter of the lease term or life of asset 44,989 43,391 Less: accumulated depreciation and amortization (37,387 ) (36,600 ) $ 7,602 $ 6,791 |
Stock Options (Tables)
Stock Options (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
2012 Employee Stock Option Plan [Member] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each option granted during the nine months ended March 31, 2019 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2019 Risk-free interest rates 3.1 % Expected lives 10 years Expected volatility 52 % Expected dividend yields 0 % |
Schedule of Share-based Compensation, Stock Options, Activity | The following table reflects activity under the 2012 Employee Plan for the nine months ended March 31,: 2019 2018 Options Weighted average exercise price Options Weighted average exercise price Outstanding, beginning of year 57,200 $ 7.09 70,600 $ 5.84 Granted 24,000 15.28 25,000 9.01 Terminated/Lapsed -- -- -- -- Exercised (13,200 ) 6.43 (20,600 ) 5.55 Outstanding, end of period 68,000 $ 10.11 75,000 $ 6.97 Exercisable, end of period 33,300 $ 7.84 43,200 $ 6.34 Weighted average fair value at grant date of options granted $ 8.76 $ 5.61 Total intrinsic value of options exercised $ 150,000 $ 84,000 Total intrinsic value of options outstanding $ 723,000 $ 292,000 Total intrinsic value of options exercisable $ 430,000 $ 218,000 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding under the 2012 Employee Plan at March 31, 2019: Options outstanding Options exercisable Range of exercise prices Number outstanding Weighted average remaining contractual life Weighted average exercise price Number exercisable Weighted average exercise price $4.88-$16.16 68,000 7.7 $ 10.11 33,300 $ 7.84 68,000 7.7 $ 10.11 33,300 $ 7.84 |
2012 Non-Employee Stock Option Plan [Member] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table reflects activity under the 2012 Non-Employee Plan for the nine months ended March 31,: 2019 2018 Options Weighted average exercise price Options Weighted average exercise price Outstanding, beginning of year 27,800 $ 6.85 14,200 $ 4.69 Granted — — 15,000 8.70 Terminated/Lapsed — — — — Exercised (14,600 ) 5.68 — — Outstanding, end of period 13,200 $ 8.15 29,200 $ 6.75 Exercisable, end of period 4,200 $ 6.97 15,200 $ 5.53 Weighted average fair value at grant date of options granted n/a $ 8.70 Total intrinsic value of options exercised $ 167,000 n/a Total intrinsic value of options outstanding $ 166,000 $ 86,000 Total intrinsic value of options exercisable $ 58,000 $ 63,000 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding under the 2012 Non-Employee Plan at March 31, 2019: Options outstanding Options exercisable Range of exercise prices Number outstanding Weighted average remaining contractual life Weighted average exercise price Number exercisable Weighted average exercise price $4.37 - $8.70 13,200 8.2 $ 8.15 4,200 $ 6.97 13,200 8.2 $ 8.15 4,200 $ 6.97 |
2018 Non-Employee Stock Option Plan [Member] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each option granted during the nine months ended March 31, 2019 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2019 Risk-free interest rates 2.9 % Expected lives 10 years Expected volatility 50 % Expected dividend yields 0 % |
Schedule of Share-based Compensation, Stock Options, Activity | The following table reflects activity under the 2018 Non-Employee Plan for the nine months ended March 31,: 2019 2018 Options Weighted average exercise price Options Weighted average exercise price Outstanding, beginning of year — $ — — $ — Granted 20,000 16.20 — — Terminated/Lapsed — — — — Exercised — — — — Outstanding, end of period 20,000 $ 16.20 — $ — Exercisable, end of period 4,000 $ 16.20 — $ — Weighted average fair value at grant date of options granted $ 10.24 n/a Total intrinsic value of options exercised n/a n/a Total intrinsic value of options outstanding $ 91,000 n/a Total intrinsic value of options exercisable $ 18,000 n/a |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding under the 2018 Non-Employee Plan at March 31, 2019: Options outstanding Options exercisable Range of exercise prices Number outstanding Weighted average remaining contractual life Weighted average exercise price Number exercisable Weighted average exercise price $16.20-$16.20 20,000 9.7 $ 16.20 4,000 $ 16.20 20,000 9.7 $ 16.20 4,000 $ 16.20 |
Geographical Data (Tables)
Geographical Data (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule Of Revenue From External Customers And Identifiable Assets By Geographical Areas | Financial Information Relating to Domestic and Foreign Operations (in thousands) Three months ended March 31, Nine months ended March 31, Sales to external customers(1): 2019 2018 2019 2018 Domestic $ 24,763 $ 21,659 $ 71,649 $ 62,762 Foreign 380 541 1,699 1,724 Total Net Sales $ 25,143 $ 22,200 $ 73,348 $ 64,486 Identifiable assets: March 31, 2019 June 30, 2018 United States $ 53,299 $ 52,928 Dominican Republic (2) 26,296 20,341 Total Identifiable Assets $ 79,595 $ 73,269 (1) All of the Company's sales originate in the United States and are shipped primarily from the Company's facilities in the United States. There were no sales into any one foreign country in excess of 10% of total Net Sales. (2) Consists primarily of inventories (March 31, 2019 = $22,630, June 30, 2018 = $16,592) and long-lived assets (March 31, 2019 = $3,411, June 30, 2018 = $3,462) located at the Company's principal manufacturing facility in the Dominican Republic. |
Nature of Business and Summar_4
Nature of Business and Summary of Significant Accounting Policies - Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Intangible Assets by Major Class [Line Items] | ||
Finite-lived intangible assets, Cost | $ 15,700 | $ 15,700 |
Finite-lived intangible assets, Accumulated amortization | (8,390) | (8,155) |
Finite-lived intangible assets, Net book value | 7,310 | 7,545 |
Customer Relationships [Member] | ||
Intangible Assets by Major Class [Line Items] | ||
Finite-lived intangible assets, Cost | 9,800 | 9,800 |
Finite-lived intangible assets, Accumulated amortization | (8,390) | (8,155) |
Finite-lived intangible assets, Net book value | 1,410 | 1,645 |
Trade name [Member] | ||
Intangible Assets by Major Class [Line Items] | ||
Finite-lived intangible assets, Cost | 5,900 | 5,900 |
Finite-lived intangible assets, Accumulated amortization | 0 | 0 |
Finite-lived intangible assets, Net book value | $ 5,900 | $ 5,900 |
Nature of Business and Summar_5
Nature of Business and Summary of Significant Accounting Policies - Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Weighted Average Number of Diluted Shares Outstanding [Line Items] | ||||
Net Income, Basic EPS | $ 3,122 | $ 1,829 | $ 7,495 | $ 3,952 |
Net Income, Diluted EPS | $ 3,122 | $ 1,829 | $ 7,495 | $ 3,952 |
Weighted Average Shares, Basic EPS | 18,489,000 | 18,737,000 | 18,607,000 | 18,811,000 |
Weighted Average Shares, Stock Options | 44,000 | 35,000 | 47,000 | 34,000 |
Weighted Average Shares, Diluted EPS | 18,533,000 | 18,772,000 | 18,654,000 | 18,845,000 |
Net Income Per Share, Basic | $ 0.17 | $ 0.10 | $ 0.40 | $ 0.21 |
Net Income Per Share, Diluted | $ 0.17 | $ 0.10 | $ 0.40 | $ 0.21 |
Nature of Business and Summar_6
Nature of Business and Summary of Significant Accounting Policies (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Significant Accounting Policies [Line Items] | |||||
Short-term time deposits | $ 460,000 | $ 460,000 | |||
Intangible assets amortization expense | 78,000 | $ 93,000 | 235,000 | $ 278,000 | |
Estimated amortization expense-2019 | 313,000 | 313,000 | |||
Estimated amortization expense-2020 | 264,000 | 264,000 | |||
Estimated amortization expense-2021 | 223,000 | 223,000 | |||
Estimated amortization expense-2022 | 188,000 | 188,000 | |||
Estimated amortization expense-2023 | 159,000 | $ 159,000 | |||
Weighted average amortization period for acquired intangible assets | 9 years 4 months 24 days | 10 years 4 months 24 days | |||
Research and development costs | 1,851,000 | 1,669,000 | $ 5,358,000 | $ 4,915,000 | |
Antidilutive options outstanding excluded from diluted EPS computations | 3,942 | 290 | |||
Stock-based compensation costs | 0 | 5,000,000 | $ 152,000 | $ 141,000 | |
Cost of Goods and Services Sold | 14,414,000 | 13,308,000 | 42,389,000 | 38,629,000 | |
Selling, General and Administrative Expenses [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Advertising and promotion costs | 190,000 | 171,000 | 1,275,000 | 1,274,000 | |
Sales revenue, net [Member] | Shipping and Handling [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Cost of Goods and Services Sold | 280,000 | 247,000 | 827,000 | 706,000 | |
Cost of sales [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Research and development costs | 1,851,000 | 1,669,000 | 5,358,000 | 4,915,000 | |
Cost of sales [Member] | Shipping and Handling [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Cost of Goods and Services Sold | 109,000 | $ 105,000 | 313,000 | $ 352,000 | |
Allowance for doubtful accounts current [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Valuation allowances and reserves, balance | $ 117,000 | $ 117,000 | $ 195,000 |
Revenue Recognition and Contr_3
Revenue Recognition and Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Major Product Lines: | |||||
Equipment Revenues | $ 20,597 | $ 19,042 | $ 60,872 | $ 55,926 | |
Services | 4,546 | 3,158 | 12,476 | 8,560 | |
Total Revenues | [1] | 25,143 | 22,200 | 73,348 | 64,486 |
Intrusion and access alarm products [Member] | |||||
Major Product Lines: | |||||
Equipment Revenues | 8,113 | 6,859 | 22,928 | 20,011 | |
Door locking devices [Member] | |||||
Major Product Lines: | |||||
Equipment Revenues | $ 12,484 | $ 12,183 | $ 37,944 | $ 35,915 | |
[1] | All of the Company's sales originate in the United States and are shipped primarily from the Company's facilities in the United States. There were no sales into any one foreign country in excess of 10% of total Net Sales. |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers (Details Textual) - USD ($) | Jul. 01, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 720,000 | ||||
New Accounting Pronouncement or Change in Accounting Principle Income Tax Expense Benefit | 191,000 | ||||
New Accounting Pronouncement or Change in Accounting Principle Effect of Change In Other Assets | 716,000 | ||||
New Accounting Pronouncement or Change in Accounting Principle Effect of Change on Receivables | $ 3,203,000 | ||||
New Accounting Pronouncement or Change in Accounting Principle Effect of Change on Refund Liabilities | $ 1,627,000 | ||||
Sales Returns and Allowances [Member] | |||||
Concentration Risk, Percentage | 7.00% | 8.00% | |||
Sales Revenue, Product Line [Member] | |||||
Concentration Risk, Percentage | 8.00% | 7.00% |
Business and Credit Concentra_2
Business and Credit Concentrations (Narrative) (Detail) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Concentration Risk [Line Items] | |||||
Percentage Of Single Significant Customer Balance To Total Accounts Receivables | 26.00% | 26.00% | 22.00% | ||
Percentage Of Another Significant Customer Balance To Total Accounts Receivable | 12.00% | 12.00% | 11.00% | ||
Sales Revenue, Net [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 14.00% | 10.00% | 12.00% | 10.00% |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jun. 30, 2018 |
Inventory [Line Items] | ||
Component parts | $ 19,710 | $ 16,495 |
Work-in-process | 5,367 | 4,491 |
Finished product | 9,497 | 7,948 |
Total Inventory | 34,574 | 28,934 |
Current | 28,699 | 24,533 |
Non-current | 5,875 | 4,401 |
Total Inventory | $ 34,574 | $ 28,934 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 44,989 | $ 43,391 |
Less: accumulated depreciation and amortization | (37,387) | (36,600) |
Property, plant and equipment, net | $ 7,602 | 6,791 |
Property, plant and equipment, useful life | 30 years | |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 904 | 904 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 8,911 | 8,911 |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 40 years | |
Molds and dies [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 7,326 | 7,275 |
Molds and dies [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Molds and dies [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,656 | 2,599 |
Furniture and fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | |
Furniture and fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 10 years | |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 23,651 | 22,996 |
Machinery and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 7 years | |
Machinery and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 10 years | |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,541 | $ 706 |
Property, plant and equipment, useful life | Shorter of the lease term or life of asset |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | $ 281,000 | $ 259,000 | $ 787,000 | $ 743,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes [Line Items] | ||||||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 0 | $ 0 | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 381,000 | |||||
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 35,000 | |||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 256,000 | $ 256,000 | ||||
Income Tax Expense (Benefit) | 520,000 | $ 64,000 | 1,187,000 | $ 118,000 | ||
Deferred Tax Liabilities, Tax Deferred Income | 1,800,000 | 1,800,000 | ||||
Deferred Tax Liabilities | $ 442,000 | $ 442,000 | ||||
Deferred Income Tax Liability Payable period | 8 years | |||||
Scenario, Forecast [Member] | ||||||
Income Taxes [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Detail) - USD ($) | 9 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2018 | |
Debt Instrument [Line Items] | ||
Long-term Line of Credit | $ 0 | $ 0 |
Revolving line of credit expiring June 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit loan facility, maximum borrowing capacity | $ 11,000,000 | |
Third Amended and Restated Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of common stock of foreign subsidiaries pledged as collateral | 65.00% | |
Third Amended and Restated Credit Agreement [Member] | Variable Interest Rate Option One [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate over the reference rate | 1.15% | |
Third Amended and Restated Credit Agreement [Member] | Variable Interest Rate Option One [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate over the reference rate | 2.00% | |
Third Amended and Restated Credit Agreement [Member] | Variable Interest Rate Option Two [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate over the reference rate | 0.25% |
Stock Options - Weighted Averag
Stock Options - Weighted Average Assumptions of Black-Scholes Option Pricing Model to Estimate Fair Value of Options Granted (Detail) | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee 2012 Stock Option Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rates | 3.10% | |
Expected lives | 10 years | |
Expected volatility | 52.00% | |
Expected dividend yields | 0.00% | |
2018 Non-Employee Stock Option Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rates | 2.90% | |
Expected lives | 10 years | |
Expected volatility | 50.00% | |
Expected dividend yields | 0.00% |
Stock Options (Detail)
Stock Options (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
2012 Employee Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, beginning of year | 57,200 | 70,600 | ||
Granted | 0 | 5,000 | 24,000 | 25,000 |
Terminated/Lapsed | 0 | 0 | ||
Exercised | (13,200) | (20,600) | ||
Outstanding, end of period | 68,000 | 75,000 | 68,000 | 75,000 |
Exercisable, end of period | 33,300 | 43,200 | 33,300 | 43,200 |
Weighted average fair value at grant date of options granted | $ 8.76 | $ 5.61 | ||
Total intrinsic value of options exercised | $ 150,000 | $ 84,000 | ||
Total intrinsic value of options outstanding | $ 723,000 | $ 292,000 | 723,000 | 292,000 |
Total intrinsic value of options exercisable | $ 430,000 | $ 218,000 | $ 430,000 | $ 218,000 |
Outstanding, beginning of year, weighted average exercise price | $ 7.09 | $ 5.84 | ||
Granted, weighted average exercise price | 15.28 | 9.01 | ||
Terminated/Lapsed, weighted average exercise price | 0 | 0 | ||
Exercised, weighted average exercise price | 6.43 | 5.55 | ||
Outstanding, end of period, weighted average exercise price | $ 10.11 | $ 6.97 | 10.11 | 6.97 |
Exercisable, end of period, weighted average exercise price | $ 7.84 | $ 6.34 | $ 7.84 | $ 6.34 |
2012 Non-Employee Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, beginning of year | 27,800 | 14,200 | ||
Granted | 0 | 15,000 | ||
Terminated/Lapsed | 0 | 0 | ||
Exercised | (14,600) | 0 | ||
Outstanding, end of period | 13,200 | 29,200 | 13,200 | 29,200 |
Exercisable, end of period | 4,200 | 15,200 | 4,200 | 15,200 |
Weighted average fair value at grant date of options granted | $ 8.70 | |||
Total intrinsic value of options exercised | $ 167,000 | |||
Total intrinsic value of options outstanding | $ 166,000 | $ 86,000 | 166,000 | 86,000 |
Total intrinsic value of options exercisable | $ 58,000 | $ 63,000 | $ 58,000 | $ 63,000 |
Outstanding, beginning of year, weighted average exercise price | $ 6.85 | $ 4.69 | ||
Granted, weighted average exercise price | 0 | 8.70 | ||
Terminated/Lapsed, weighted average exercise price | 0 | 0 | ||
Exercised, weighted average exercise price | 5.68 | 0 | ||
Outstanding, end of period, weighted average exercise price | $ 8.15 | $ 6.75 | 8.15 | 6.75 |
Exercisable, end of period, weighted average exercise price | $ 6.97 | $ 5.53 | $ 6.97 | $ 5.53 |
2018 Non-Employee Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, beginning of year | 0 | 0 | ||
Granted | 20,000 | 0 | ||
Terminated/Lapsed | 0 | 0 | ||
Exercised | 0 | 0 | 0 | 0 |
Outstanding, end of period | 20,000 | 0 | 20,000 | 0 |
Exercisable, end of period | 4,000 | 0 | 4,000 | 0 |
Weighted average fair value at grant date of options granted | $ 10.24 | |||
Total intrinsic value of options outstanding | $ 91,000 | $ 91,000 | ||
Total intrinsic value of options exercisable | $ 18,000 | $ 18,000 | ||
Outstanding, beginning of year, weighted average exercise price | $ 0 | $ 0 | ||
Granted, weighted average exercise price | 16.20 | 0 | ||
Terminated/Lapsed, weighted average exercise price | 0 | 0 | ||
Exercised, weighted average exercise price | 0 | 0 | ||
Outstanding, end of period, weighted average exercise price | $ 16.20 | $ 0 | 16.20 | 0 |
Exercisable, end of period, weighted average exercise price | $ 16.20 | $ 0 | $ 16.20 | $ 0 |
Stock Options by Range of Exerc
Stock Options by Range of Exercise Prices (Detail) | 9 Months Ended |
Mar. 31, 2019$ / sharesshares | |
2012 Employee Stock Option Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, Number outstanding | shares | 68,000 |
Options outstanding, Weighted average remaining contractual life | 7 years 8 months 12 days |
Options outstanding, Weighted average exercise price | $ / shares | $ 10.11 |
Options exercisable, Number exercisable | shares | 33,300 |
Options exercisable, Weighted average exercise price | $ / shares | $ 7.84 |
2012 Employee Stock Option Plan [Member] | Exercise price range $ 4.29 - $ 15.30 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, Number outstanding | shares | 68,000 |
Options outstanding, Weighted average remaining contractual life | 7 years 8 months 12 days |
Options outstanding, Weighted average exercise price | $ / shares | $ 10.11 |
Options exercisable, Number exercisable | shares | 33,300 |
Options exercisable, Weighted average exercise price | $ / shares | $ 7.84 |
2012 Non-Employee Stock Option Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, Number outstanding | shares | 13,200 |
Options outstanding, Weighted average remaining contractual life | 8 years 2 months 12 days |
Options outstanding, Weighted average exercise price | $ / shares | $ 8.15 |
Options exercisable, Number exercisable | shares | 4,200 |
Options exercisable, Weighted average exercise price | $ / shares | $ 6.97 |
2012 Non-Employee Stock Option Plan [Member] | Exercise price range $4.37 - $8.70 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, Number outstanding | shares | 13,200 |
Options outstanding, Weighted average remaining contractual life | 8 years 2 months 12 days |
Options outstanding, Weighted average exercise price | $ / shares | $ 8.15 |
Options exercisable, Number exercisable | shares | 4,200 |
Options exercisable, Weighted average exercise price | $ / shares | $ 6.97 |
2018 Non-Employee Stock Option Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, Number outstanding | shares | 20,000 |
Options outstanding, Weighted average remaining contractual life | 9 years 8 months 12 days |
Options outstanding, Weighted average exercise price | $ / shares | $ 16.20 |
Options exercisable, Number exercisable | shares | 4,000 |
Options exercisable, Weighted average exercise price | $ / shares | $ 16.20 |
2018 Non-Employee Stock Option Plan [Member] | Excercise price range $16.20 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, Number outstanding | shares | 20,000 |
Options outstanding, Weighted average remaining contractual life | 9 years 8 months 12 days |
Options outstanding, Weighted average exercise price | $ / shares | $ 16.20 |
Options exercisable, Number exercisable | shares | 4,000 |
Options exercisable, Weighted average exercise price | $ / shares | $ 16.20 |
Stock Options (Narrative) (Deta
Stock Options (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Tax benefit from ISO option exercise | $ 3,000 | $ 0 | |||||
Allocated Share Based Compensation Expense | $ 0 | $ 5,000 | $ 152,000 | $ 141,000 | |||
Share based Compensation Cost Effect On Earnings Per Share Basic And Diluted | $ 0 | $ 0 | $ 0.01 | $ 0.01 | |||
Proceeds From Stock Options Exercised | $ 24,000 | $ 61,000 | |||||
2012 Employee Stock Option Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for issuance under the plan | 950,000 | 950,000 | |||||
Percentage Applied To Market Price To Set Grant Price For Grantee Owning Ten Percent Or More Of Entity Common Stock Outstanding | 110.00% | ||||||
Term of stock option awards | 10 years | ||||||
Annual rate at which share-based compensation awards vest | 20.00% | ||||||
Number of stock options, exercisable | 33,300 | 43,200 | 33,300 | 43,200 | |||
Number of stock options available for grant | 797,900 | 797,900 | |||||
Unearned stock-based compensation cost related to non-vested awards | $ 253,000 | $ 253,000 | |||||
Fair value of stock options that vested during the period | $ 0 | $ 1,000 | 86,000 | $ 84,000 | |||
Tax benefit from ISO option exercise | $ 7,000 | $ 0 | |||||
Number of shares outstanding, end of period | 68,000 | 75,000 | 68,000 | 75,000 | 57,200 | 70,600 | |
Stock Issued During Period, Shares, New Issues | 3,700 | 18,100 | |||||
Common Stock, Voting Rights | Any plan participant who is granted ISOs and possesses more than 10% of the voting rights of the Company's outstanding common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (13,200) | (20,600) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 5,000 | 24,000 | 25,000 | |||
Proceeds From Stock Options Exercised | $ 3,000 | $ 45,000 | $ 27,000 | $ 61,000 | |||
2012 Non-Employee Stock Option Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for issuance under the plan | 50,000 | 50,000 | |||||
Term of stock option awards | 10 years | ||||||
Annual rate at which share-based compensation awards vest | 20.00% | ||||||
Number of stock options, exercisable | 4,200 | 15,200 | 4,200 | 15,200 | |||
Unearned stock-based compensation cost related to non-vested awards | $ 50,000 | $ 50,000 | |||||
Fair value of stock options that vested during the period | 0 | $ 0 | |||||
Tax benefit from ISO option exercise | $ 10,000 | $ 0 | $ 35,000 | $ 0 | |||
Number of shares outstanding, end of period | 13,200 | 29,200 | 13,200 | 29,200 | 27,800 | 14,200 | |
Stock Issued During Period, Shares, New Issues | 3,600 | 0 | 14,600 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (14,600) | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 15,000 | |||||
Proceeds From Stock Options Exercised | $ 0 | $ 0 | $ 0 | $ 0 | |||
2002 Employee Stock Option Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for issuance under the plan | 1,836,000 | 1,836,000 | |||||
Percentage Applied To Market Price To Set Grant Price For Grantee Owning Ten Percent Or More Of Entity Common Stock Outstanding | 110.00% | ||||||
Term of stock option awards | 10 years | ||||||
Annual rate at which share-based compensation awards vest | 20.00% | ||||||
Tax benefit from ISO option exercise | $ 0 | 0 | |||||
Conversion of Stock, Shares Issued | 2,815 | ||||||
Common Stock, Voting Rights | Any plan participant who was granted ISOs and possessed more than 10% of the voting rights of the Company's outstanding common stock | ||||||
Conversion of Stock, Shares Converted | 5,000 | ||||||
Proceeds From Stock Options Exercised | $ 0 | $ 0 | $ 0 | $ 0 | |||
2018 Non-Employee Stock Option Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized for issuance under the plan | 50,000 | ||||||
Term of stock option awards | 10 years | ||||||
Annual rate at which share-based compensation awards vest | 20.00% | ||||||
Number of stock options, exercisable | 4,000 | 0 | 4,000 | 0 | |||
Number of stock options available for grant | 30,000 | 30,000 | |||||
Unearned stock-based compensation cost related to non-vested awards | $ 164,000 | $ 164,000 | |||||
Fair value of stock options that vested during the period | 41,000 | $ 0 | |||||
Tax benefit from ISO option exercise | $ 0 | $ 0 | |||||
Number of shares outstanding, end of period | 20,000 | 0 | 20,000 | 0 | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | 0 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 20,000 | 0 | |||||
Proceeds From Stock Options Exercised | $ 0 | $ 0 | $ 0 | $ 0 |
Stockholders' Equity Transact_2
Stockholders' Equity Transactions (Narrative) (Detail) - $ / shares | 9 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2018 | Sep. 16, 2014 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 434,725 | 1,000,000 | |
Common Stock Shares Outstanding | 18,474,879 | 18,729,082 | 19,400,000 |
Stock Repurchased During Period, Shares | 500,000 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 14.59 | ||
Treasury Stock [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Stock, Shares, Acquired | 274,065 |
401(k) Plan (Narrative) (Detail
401(k) Plan (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Napco Technologies 401 k Plan [Member] | ||||
Schedule of Deferred Compensation Plans [Line Items] | ||||
Deferred compensation plan expense | $ 34,000 | $ 35,000 | $ 99,000 | $ 99,000 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Employment Contracts [Member] | Chief executive officer [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Annual salary commitment | $ 752,000 | |||
Termination pay commitment rate applied to the average of the prior five calendar years compensation | 299.00% | |||
Employment Contracts [Member] | Senior Vice President of Sales and Marketing [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Expiration Year | 2019 | |||
Annual salary commitment | $ 334,000 | |||
Employment Contracts [Member] | Senior Vice President of Engineering [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Expiration Year | 2019 | |||
Annual salary commitment | $ 302,000 | |||
Land lease in Dominican Republic expiring 2092 [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Expiration Year | 2092 | |||
Annual minimum rent | $ 288,000 | $ 288,000 | ||
Lessee, Operating Lease, Term of Contract | 99 years | 99 years | ||
Leased property and equipment, excluding foreign land [Member] | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Rent expense | $ 12,000 | $ 11,000 | $ 34,000 | $ 24,000 |
Geographical Data (Detail)
Geographical Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total Net Sales | [1] | $ 25,143 | $ 22,200 | $ 73,348 | $ 64,486 | |
Total Identifiable Assets | 79,595 | 79,595 | $ 73,269 | |||
Domestic [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total Net Sales | [1] | 24,763 | 21,659 | 71,649 | 62,762 | |
Foreign [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total Net Sales | [1] | 380 | $ 541 | 1,699 | $ 1,724 | |
United States [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total Identifiable Assets | 53,299 | 53,299 | 52,928 | |||
Dominican Republic [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Total Identifiable Assets | [2] | $ 26,296 | $ 26,296 | $ 20,341 | ||
[1] | All of the Company's sales originate in the United States and are shipped primarily from the Company's facilities in the United States. There were no sales into any one foreign country in excess of 10% of total Net Sales. | |||||
[2] | Consists primarily of inventories (March 31, 2019 = $22,630, June 30, 2018 = $16,592) and long-lived assets (March 31, 2019 = $3,411, June 30, 2018 = $3,462) located at the Company's principal manufacturing facility in the Dominican Republic. |
Geographical Data (Parenthetica
Geographical Data (Parenthetical) (Detail) - USD ($) | Mar. 31, 2019 | Jun. 30, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Inventories | $ 28,699,000 | $ 24,533,000 |
Fixed assets | 7,602,000 | 6,791,000 |
Dominican Republic [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Inventories | 22,630 | 16,592 |
Fixed assets | $ 3,411 | $ 3,462 |